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2020 financial statements: visible results under restructuring with significantly improved Recurring EBITDA (+28%) in challenging times of COVID-19 pandemic

DGAP-News: aap Implantate AG / Key word(s): Annual Results/Annual Report
30.04.2021 / 17:33
The issuer is solely responsible for the content of this announcement.

aap Implantate AG ("aap" or the "Company") achieved sales of EUR 9.3 million (FY/2019: EUR 11.7 million) in a financial year 2020 marked by COVID-19 and thus a figure in the upper half of the guidance of EUR 8.0 million to EUR 10.0 million. Furthermore, despite COVID-19 and extensive restructuring expenses, the Company realized an improved EBITDA of EUR -4.8 million (FY/2019: EUR -5.1 million), which was also in the upper half of the guidance of EUR -5.9 million to EUR -4.5 million raised in October 2020. Excluding one-time effects, Recurring EBITDA improved significantly by +28% to EUR -3.4 million in financial year 2020 (FY/2019: EUR -4.8 million), reflecting the visible results in restructuring despite the massive COVID-19-related sales decline.

2020 - Key results and progress

- Sales by region: Sales development in Germany (-21%) and in international business (-39%) significantly impacted by COVID-19

- USA: Dynamic sales growth (+41%) through expansion of customer base and contracts concluded with US-wide purchasing associations and networks

- Earnings: EBITDA improved to EUR -4.8 million (FY/2019: EUR -5.1 million) despite significant one-time effects from restructuring, refinancing and revision of QM system, particularly due to cost reduction; Recurring EBITDA improved significantly by +28% to EUR -3.4 million (FY/2019: EUR -4.8 million)

- Gross margin and costs: Improvement of gross margin to 84% (FY/2019: 80%) due to increased share of high-margin US sales in total sales and discontinuation of standard trauma portfolio; massive cost reduction due to significant decrease in personnel expenses (EUR -1.7 million) and other operating expenses (EUR -1.6 million)

- Cash flow and balance sheet: Improved EBITDA and positive working capital effects reduce operating financing requirement to EUR -3.7 million (FY/2019: EUR -5.8 million); balance sheet restructuring within equity with capital reduction and offsetting against accumulated deficit

- Refinancing: First two steps successfully implemented in 2020 with capital reduction and convertible bond; sale of excess capacity in machinery reduces repayment burden in coming years; granting of shareholder loan shows confidence in the path taken; Management Board confident of implementing further measures in 2021, which, if successfully completed, will secure aap's financing

- LOQTEQ(R): Fundamental revision of quality management with focus on conversion of processes and documentation to meet increased regulatory requirements; successful recertification under still valid MDD standard until 2024

- Silver coating technology: All regulatory requirements for start of human clinical study in Germany fulfilled; test coatings performed for potential first joint development projects to be completed; ongoing discussions with global medical device companies on potential co-funding of study and further collaboration opportunities

- Resorbable magnesium implant technology: Confirmation by FDA of probable classification as particularly innovative "Novel" technology and qualification for faster "De Novo" approval pathway; results of pilot animal study with Colorado State University show controllable degradation process, planned bone healing and thus overall "proof of concept" of the technology; promising discussions underway with technology-savvy investors to finance joint further development of the technology

For a detailed evaluation of the Management Agenda 2020, aap refers to the Consolidated Annual Financial Report 2020 published today.

2020 - Key financial figures


in KEUR FY/2020 FY/2019[1] Change
USA Distributors
USA Global partners

International (without USA)
Europe (without Germany)
BRICS countries
RoW (Rest of World)



Sales 9,326 11,739 -21%
[1] Other sales, which were still reported in the previous year, are no longer shown and are now allocated to the individual regions.

A look at the development of sales in the individual regions shows that, with the exception of the USA, all of aap's main markets were affected by the COVID-19 pandemic in financial year 2020. Accordingly, the Company recorded a significant year-on-year decline in sales both in Germany (-21%) and in its international business (excluding the USA; -39%). The pandemic-related impairments were particularly noticeable regarding the international business, which is very important for aap (excluding the USA; around 58% of total sales in financial year 2019 with the largest customers from Spain, South Africa, Brazil and Mexico).

In the USA, on the other hand, aap is on a dynamic growth course and was able to significantly increase sales in financial year 2020 (+41%) year-on-year. This sales increase is primarily based on a massive expansion of the customer base and the contracts concluded with US-wide purchasing associations and networks. Overall, the positive sales development in the USA mitigated the COVID-19-related sales declines in the other markets.


in KEUR FY/2020 FY/2019 Change
EBITDA -4,765 -5,142 +7%
One-time effects 1,322 335 >+100%
Recurring EBITDA -3,443 -4,807 +28%

aap continues to be in a comprehensive restructuring and refinancing process in order to secure further financing and thus the Company's continued existence. In this context, aap was already able to make tangible progress in financial year 2020 in the restructuring process, which is reflected in the following developments, among others, despite the enormous challenges posed by the COVID-19 pandemic:

- Increase in gross margin to 84% (FY/2019: 80%) due to improved product, customer and price mix with lower material expenses, positively impacted by increased share of high-margin US sales in total sales and discontinuation of standard trauma portfolio at the end of FY/2019

- Significant decrease in personnel expenses (EUR -1.7 million) primarily due to headcount reduction implemented in Q1/2020 (headcount -30% as of Dec. 31, 2020 vs. Dec. 31, 2019)

- Significant reduction in other operating expenses (EUR -1.6 million) primarily in direct response to the COVID-19 pandemic in advertising and travel costs, but also in consulting and premises costs

In addition, earnings in the 2020 financial year were significantly impacted by one-time effects from the ongoing restructuring and refinancing (EUR 0.9 million) and the revision of the quality management system (EUR 0.8 million).

Based on the developments described above, EBITDA improved to EUR -4.8 million in financial year 2020 (FY/2019: EUR -5.1 million). Excluding the one-time effects, recurring EBITDA improved significantly by 28% to EUR -3.4 million in the reporting period (FY/2019: EUR -4.8 million). Overall, this reflects the targeted development: focus on established markets with higher profit margins and sustainable streamlining of the cost structure to improve operating performance.

Outlook for 2021

In the first four months of financial year 2021, the focus was on securing aap's further financing. In this context, further measures were implemented to ensure the continuity of the Company and to finance the planned growth and further development of the key technologies. In this context, at the end of March 2021, aap signed a purchase agreement with a Berlin real estate company for the sale of a plot of land in Brandenburg and qualified for the first time to receive state Corona aid under the COVID-19 aid program "├ťberbr├╝ckungshilfe III". aap has already received funds of EUR 0.5 million from the aforementioned financing measures, and further funds of around EUR 0.4 million will flow to the Company in the short term if both financing measures are successfully completed. In addition, the Management Board is currently working on the implementation of further measures and is confident that it will be able to implement these successfully and thus secure aap's financing in line with current business planning. The Company also aims to continuously increase efficiency in the production process and thereby reduce manufacturing costs by a double-digit percentage. In addition, aap has continued to impose strict cost discipline throughout the Company.

Assuming an easing of the COVID-19 situation between the second and third quarter, aap aims to return to the growth path in financial year 2021. The Management Board expects sales between EUR 12.0 million and EUR 15.0 million, which corresponds to a significant growth rate of +29 to +61%. In this context, all markets are expected to contribute to the planned sales growth, with the USA acting as the main growth driver.

Regarding earnings, aap aims to achieve positive EBITDA in the operative trauma business for the first time in financial year 2021 if the development goes according to plan. Taking into account the full R&D project costs and before possible co-financing, the Management Board expects EBITDA of EUR -5.5 million to EUR -3.5 million for the current year.

In the area of its innovative silver coating technology, technology and product development for the human clinical study has been completed and all regulatory requirements (BfArM and ethics committee approvals) for the start of the study in Germany have been met. Against the backdrop of the still rampant COVID-19 pandemic, which is leading to a massive decline in trauma patients as a result of the lockdown measures, aap plans to start the study in financial year 2021, initially in individual clinical centers and then successively expand it to all participating clinics in Germany. The intended market approval of the silver coating technology in the USA will generate even significantly more effort. Due to the scarcity of resources, the Company intends to push forward the approval pathway for the human clinical study in the USA with the FDA in financial year 2021 and prepare the necessary documents for submission to the agency in order to be able to launch the study in the USA at a later date.

With the progress made to date in restructuring and refinancing, aap has laid a good and solid foundation for the new start. The Management Board is confident that, by joining forces, it will succeed in putting aap on track for sustainable success and transforming it into a financially sound and independent company.


Implantate AG (ISIN DE0005066609) - General Standard/Regulated Market - All German stock markets -

About aap Implantate AG
aap Implantate AG is a globally active medical technology company based in Berlin, Germany. The Company develops, manufactures and markets products for trauma. The IP-protected portfolio includes besides the innovative anatomical plating system LOQTEQ(R) a wide range of cannulated screws. In addition, aap Implantate AG has an innovation pipeline with promising development projects such as the antibacterial silver coating technology and magnesium-based implants. These technologies address critical and unmet needs in trauma. In Germany, aap Implantate AG sells its products directly to hospitals, purchasing groups, and hospital groups, while at international level it primarily uses a broad network of distributors in around 25 countries. In the US the Company pursues a hybrid distribution strategy with its subsidiary aap Implants Inc. Distribution is carried out both through distribution agents and partnerships with global orthopedic companies. aap Implantate AG's stock is listed in the General Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit our website at

Forward-looking statement
This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.


For queries, please contact:

aap Implantate AG; Fabian Franke; Head of Investor Relations; Lorenzweg 5; 12099 Berlin, Germany; Phone: +49 (0)30 75019 - 134; Fax: +49 (0)30 75019 - 290; Email:

30.04.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: aap Implantate AG
Lorenzweg 5
12099 Berlin
Phone: +49 (0) 30 75 01 90
Fax: +49 (0) 30 75 01 91 11
ISIN: DE000A3H2101
WKN: A3H210
Listed: Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1191383

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Last Updated: 30-Apr-2021