aap annual financial statements for 2012: Successful 2012 - positive Outlook 2013 2012 sales EUR 36.4 million (+25%), operative EBITDA EUR +49%

ID: 1211701
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(Thomson Reuters ONE) -
aap Implantate AG /
aap annual financial statements for 2012: Successful 2012 - positive Outlook
2013 2012 sales EUR 36.4 million (+25%), operative EBITDA EUR +49%
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.

aap Implantate AG (XETRA: AAQ.DE), a global medical device company focussed on
innovative trauma products and biomaterials for the orthopaedic market, achieved
the following core results in the financial year 2012:

+---------------------+------+------+--------+
| In Mio. EUR | 2012 | 2011 | Change |
+---------------------+------+------+--------+
| Sales | 36.4 | 29.2 | +25% |
+---------------------+------+------+--------+
| Product sales | 33.8 | 29.2 | +16% |
+---------------------+------+------+--------+
| Operative EBITDA[1] | 6.1 | 4.1 | +49% |
+---------------------+------+------+--------+
| Operative EBIT[2] | 3.0 | 1.2 | >100% |
+---------------------+------+------+--------+
| Operative Cash-Flow | 7.1 | 3.2 | >100% |
+---------------------+------+------+--------+
| ROCE[3] (%) | 5.0 | 1.8 | >100% |
+---------------------+------+------+--------+


Results of the Management Agenda 2012

+------------------------------------------------------------------------------+
| Customer |
+------------------------+-------------------------------+---------------------+
|Goals of the Management | Results of the Management | Goal achieved? |
| Agenda 2012 | Agenda 2012 | |
+------------------------+-------------------------------+---------------------+
|LOQTEQ® sales in the|LOQTEQ® sales reached EUR 2.0 | |


|financial year 2012 >|million. Although below the| |
|EUR 2.4 million |target, we received orders for| Order volume |
| |over EUR 2.4 million which| achieved, revenue |
| |could not yet be fulfilled| delayed due to |
| |because of delays in| registration delays |
| |registration processes in| |
| |various countries. | |
+------------------------+-------------------------------+---------------------+
|After full FDA approval|We completed the registration| |
|appointment of a US|of the LOQTEQ® plates in the| Yes, but slightly |
|distributor for LOQTEQ®|USA. Signed a pilotmarketing| delayed |
|in third quarter |agreement for the US market in| |
| |the fourth quarter. | |
+------------------------+-------------------------------+---------------------+
|Appointing distributors|We have appointed distributors| |
|in the UK, Spain, Italy|in Spain and Italy, other EU| |
|and France, preferably|distributors were appointed in| |
|before the end of the|Turkey, Czech Republic and| |
|second quarter |Portugal. We continue to work| Signed with many |
| |towards appointing distributors| countries; continue |
| |in the UK and France. Outside| to work on UK and |
| |the EU we were successful in| France |
| |appointing distributors in| |
| |Egypt and in growth markets in| |
| |the Americas, such as: Mexico,| |
| |Argentina, Brazil, Colombia,| |
| |Costa Rica and Puerto Rico. | |
+------------------------+-------------------------------+---------------------+
|Renew OEM contracts with|We have successfully extended| |
|existing customers |supply agreements with a global| Yes |
| |medtech company for various| |
| |biomaterials. | |
+------------------------+-------------------------------+---------------------+
|EMCM: Secure new| * EMCM signed the following | |
|customers for| agreements with: | |
|aseptic/sterile medical| * a US government related | |
|products | customer | |
| | * a German based medtech | |
| | company for the | |
| | development/supply of | |
| | sterile, inflammable | Yes |
| | products | |
| | * a Japanese company for a | |
| | sterile recombinant peptide| |
| | product and | |
| | *  an Israeli company for a | |
| | drug releasing medical | |
| | device. | |
+------------------------+-------------------------------+---------------------+


+------------------------------------------------------------------------------+
| Innovation |
+----------------------------------+-------------------------+-----------------+
| Goals of the Management |Results of the Management| Goal achieved? |
| Agenda 2012 | Agenda 2012 | |
+----------------------------------+-------------------------+-----------------+
|Silver coating technology |We made substantial| |
|(Trauma/Orthopaedics: successful |progress with the| |
|conclusion of animal tests in the |development of our silver| |
|fourth quarter |coating technology. The| |
| |start of the in vivo| |
| |studies was delayed until| |
| |the first quarter of| |
| |2013 for reasons beyond|Progress achieved|
| |our control. We have| |
| |initiated consultations| |
| |with the regulatory body| |
| |for how to apply for a CE| |
| |certificate for the novel| |
| |product, a hybrid of a| |
| |trauma- and a biomaterial| |
| |product. | |
+----------------------------------+-------------------------+-----------------+
|Freshness Index >17 % |The Freshness index ended| |
| |at 15%, an improvement| |
| |compared to 2010 and| |
| |2011 but our target of| No |
| |17% was missed. With the| |
| |planned growth of LOQTEQ®| |
| |during 2013 we will show| |
| |further improvement. | |
+----------------------------------+-------------------------+-----------------+
|Finish clinical study of silver |The clinical study for| |
|cement before end of second |silver cement was| |
|quarter |completed in the first| |
| |half of 2012. The results| |
| |of the study are under| Yes |
| |evaluation, with| |
| |potential next steps of| |
| |filing for regulatory| |
| |approval or conducting| |
| |additional studies. | |
+----------------------------------+-------------------------+-----------------+
|Sign a further development |We have signed a| |
|agreement on a bone cement and/or |development agreement for| |
|a cementing application |human bone cement with a| |
| |global medtech company.| |
| |Closing of the agreement| Yes |
| |is subject to certain| |
| |audit results. Closing of| |
| |the deal is expected in| |
| |2013. | |
+----------------------------------+-------------------------+-----------------+
|EMCM: Launch a new treatment |EMCM has developed its| |
|method for allografts and generate|scCO2 technology and has| |
|initial sales revenue: B2B model |signed a supply agreement| |
|with EU bone banks such as Sanquin|with the bone bank| |
|and others |Sanquin from the| |
| |Netherlands. Together| |
| |with its US partners,| Yes |
| |EMCM has also hosted a| |
| |scientific symposium| |
| |around the subject of| |
| |allograft and the scCO2| |
| |technology for cleaning| |
| |and sterilization of| |
| |human bone. | |
+----------------------------------+-------------------------+-----------------+




+------------------------------------------------------------------------------+
| Financials |
+-------------------------------+-------------------------------+--------------+
| Goals of the Management | Results of the Management |Goal achieved?|
| Agenda 2012 | Agenda 2012 | |
+-------------------------------+-------------------------------+--------------+
|10% sales growth |Sales growth was 25%, well| Yes |
| |above the target of 10%. | |
+-------------------------------+-------------------------------+--------------+
|Cash EBIT: improve to at least |Cash-EBIT target of EUR 1 | |
|EUR 1.0 million |million was delivered, and on| Yes |
| |product level for the first| |
| |time positive | |
+-------------------------------+-------------------------------+--------------+
|DCR < 2.5 and ICR > 6 (Basis: |Goal achieved: DCR 0,8 (2011:| |
|Operative EBITDA) |1,7); | Yes |
| |ICR 11,8 (2011: 6,8) | |
+-------------------------------+-------------------------------+--------------+
|Stabilise company financing |Company financing was improved.| |
| |Net debt was lowered from EUR| |
| |6.9 million (2011) to EUR 4.5 | |
| |million (2012). High interest| Yes |
| |bearing shareholder loans were| |
| |almost completely replaced by| |
| |bank loans with a much lower| |
| |interest | |
+-------------------------------+-------------------------------+--------------+
|Continued profitable growth |EBITDA growth of 50% was well| |
| |above the sales growth of 25%, | Yes |
| |delivering another year of| |
| |profitable growth | |
+-------------------------------+-------------------------------+--------------+


+------------------------------------------------------------------------------+
| Organisation/IT |
+------------------------------+-----------------------------+-----------------+
| Goals of the Management | Results of the Management | Goal achieved? |
| Agenda 2012 | Agenda 2012 | |
+------------------------------+-----------------------------+-----------------+
|IT infrastructure: test |We studied various different| |
|outsourcing for risk and |outsourcing alternatives. At| |
|quality management |the moment we are of the| |
| |opinion that there is no| Yes |
| |need, so we are not planning| |
| |to outsource the IT| |
| |infrastructure. | |
+------------------------------+-----------------------------+-----------------+
|Adopt Code of Conduct |During the year, we have| |
| |adopted various projects,| |
| |such as advanced Data| |
| |protection measures, employee| |
| |invention policies and|Progress achieved|
| |procedures to improve the| |
| |contract management. A full| |
| |code of conduct has not been| |
| |published yet. | |
+------------------------------+-----------------------------+-----------------+




EBITDA was up by 73% from EUR 4.1 million to EUR 7.1 million and EBIT rose from
EUR 1.2 million to EUR 3.2 million. The main reasons for this strong increase
were, in addition to higher sales, the two license and supply agreements signed
in the first and fourth quarters with an EBITDA/EBIT effect of EUR 1.2 million,
the EUR 0.8 million effect of the sale of 50% of the shares in aap BM
productions GmbH, newly founded in the financial year, and the EUR 1.0 million
write-up of assets stated under other operating income. Disregarding the effects
of the asset value write-up and the extraordinary depreciation, like-for-like
2012 operative EBITDA would be EUR 6.1 million and like-for-like 2012 operative
EBIT would be EUR 3.0 million).


Outlook for 2013

For the financial year 2013 the further transformation of aap into a focussed
medical device company delivering profitable sales growth continues to be the
cornerstone of aap's corporate strategy. The main sales growth is expected to be
in the trauma segment with a focus on the LOQTEQ® product family. LOQTEQ® sales
are to be increased to over EUR 5.0 million and a further six plates are to be
added to the portfolio. Additional sales growth is to be achieved in the bone
cement and cementing techniques segment by means of further license and supply
agreements.

For 2013 the Management Board has set itself the following main targets:

* Profitable growth with an increase in sales of at least 10% and EBITDA
growth of 15%
* Achievement of positive economic profit
* Improvement of the Freshness Index to at least 20% by launching new products
or launching existing products in new markets
* Improvement of the operating working capital ratio to > 2.2 (in relation to
sales revenue)



aap's principal long-term objective is to increase enterprise value for the
company and its shareholders. Added value is defined as positive economic profit
(EP) with the return on capital employed (ROCE) in operating business generating
more income than the average capital costs.

In view of the attractiveness of aap's product portfolio in our core markets
(the US and the BRIC and SMIT countries) and of upcoming new product launches we
consider a CAGR[4] of 10% of sales growth and a corresponding Cash-EBIT CAGR of
at least 15% to be achievable. We aim to achieve these targets on an annual
basis; a quarterly fluctuation in growth and profitability is to be expected in
view of the product and project sales mix, with project sales less predictable
from one quarter to the next.

aap Implantate AG's full consolidated financial statements for 2012 are
available to download at  www.aap.de. The Q1 2013 report is scheduled for
publication on May 15, 2013.








This release contains 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.

--------------------------------------------------------------------------------

[1] EBITDA EUR 7,1 million minus reversal of assets EUR 1,0 million
[2] EBIT EUR 3,2 million minus reversal of assets EUR 1,0 million and
extraordinary depreciation on development projects EUR 0,8 million)
[3] Return on Capital Employed
[4] CAGR = compound annual growth rate


______________________________________________________
aap Implantate AG (ISIN DE0005066609)
- Prime Standard/Regulated Market - All German stock markets -

aap is a global medical device company headquartered in Berlin, Germany that
develops, manufactures and markets innovative biomaterials and implants that are
used in orthopedic procedures. The Company's products, which include a full line
of plating systems, cannulated screws and bone cement products, are primarily
used in the orthopedic specialty areas of trauma and spine repair. The Company's
products are sold through its direct sales force, distribution partners and
license agreements with OEM partners. aap's stock is listed in the Prime
Standard segment of the Frankfurt Stock Exchange. For more information, please
visit www.aap.de, or download the Company's investor relations app from the
Apple's App Store or Google Play.

For inquiries please contact:
aap Implantate AG, Marc Heydrich, Investor Relations, Lorenzweg 5, 12099 Berlin,
Germany
Tel.: +49 30 7501 9-134, fax: +49 30 7501 9-290, m.heydrich(at)aap.de


Press Release plus Annex:
http://hugin.info/130121/R/1688869/554212.pdf



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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: aap Implantate AG via Thomson Reuters ONE
[HUG#1688869]






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Date: 03/28/2013 - 10:55
Language: English
News-ID 1211701
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