aap Implantate AG closes financial year 2024 successfully - positive developments despite challenging environment

aap Implantate AG ("aap " or "Company") informs:

• Publishes on its website the individual HGB financial statements 2024 with an unqualified auditor's opinion;
• Publishes the preliminary, unaudited figures of the consolidated financial statements on its website;
• Strong improvement in Group EBITDA from EUR -3.4 million to EUR -0.85 million

Despite a challenging economic environment, the company was able to achieve significant milestones and further strengthen its position in the field of innovative implant solutions with LOQTEQ® and open up new markets, which should generate initial sales in financial year 2025.

In 2024, aap recorded sales growth of 6%, which amounted to EUR 12.2 million. With overall growth of 6%, the company was in line with the trauma market average. After a strong first half-year with 14% growth, momentum slowed in the second half of the year due to market factors. Despite this slowdown, significant progress was made in terms of sustainable customer business, which will form the basis for future growth. This increase demonstrates the continued demand for the high-quality products and the successful implementation of the strategic growth initiatives.

2024/2023 - Turnover

The EMEA region remains the company's largest sales region, accounting for around 52% of sales, and achieved growth of +16% compared to the previous year. The home market of Germany remained just below the previous year's level, which can be regarded as solid against the backdrop of the Hospital Structure Reform Act, a slowdown in hospital conversions and the increasing number of hospitals shielding procedures. aap was able to secure contracts with all major hospital groups and purchasing groups for the coming year and is positioning itself as a reliable regional partner on the ground, also in view of ongoing supply chain challenges.

In addition to the home market of Germany, Spain/Portugal and South Africa developed into key markets with exceptional growth rates. Spain/Portugal achieved growth of 32% compared to the previous year, while South Africa impressed with 51% growth. This was primarily driven by investments made by distributors in LOQTEQ® sets (instrument sets) in H1 2025 due to the acquisition of new customers and the expansion of existing customers.

Another important milestone was the implementation of the distribution agreement with a leading global spine and orthopedics company announced in January. Sales of the LOQTEQ® VA Radius System in France were successfully launched and the jointly set targets for the first 12 months were achieved.

In the LATAM region, with growth of around 22%, the two core markets of Mexico and Brazil were particularly impressive with double-digit growth rates. Mexico achieved solid growth of 13% compared to the previous year, while Brazil recorded a strong increase of 35% thanks to distributor investments in new customer equipment with sets - further proof of the importance of these strategic partner investments for sustainable market expansion.

Smaller markets also showed pleasing developments: Chile and Peru both achieved around 50% year-on-year growth, underlining the region's potential even in smaller markets.

The company is well represented in all major markets in the LATAM region, with a few exceptions that are mainly due to the economic situation in individual countries. Overall, the region is showing sustained growth and financial stability, which provides a solid basis for the company's ongoing efforts to further strengthen and expand the region.

The APAC region continued to be driven mainly by the Thailand business, which showed a strong performance with 43% year-on-year growth and proved resilient to cheaper suppliers.

The company gained further new customers in Taiwan, Malaysia and South Korea. The newly developed markets are driving the continuous expansion of the region and represent an essential component of aap 's sales strategy - especially in view of the above-average regional growth rates in traumatology, which are well above the global market average of 5-6% CAGR.

Key financial figures for the full year 2024 aap Group (unaudited)

*(Gross margin = sales revenue +/- changes in inventories - cost of materials / sales revenue)

The Group's EBITDA improved massively to EUR -854 thousand, which is attributable to targeted cost control and investments in future growth. The Trauma division's EBITDA was balanced; excluding one-off effects, it achieved a positive EBITDA of around EUR 650 thousand.

In the human clinical trial with antibacterial implants, the positive outcome made it possible to shorten the inclusion phase and reduce the number of patients to be included. As a result, the follow-up phase can also be completed earlier, which can save costs. The follow-up phase will be completed in August 2025 with the last follow-up examination. The results will then be evaluated and the final clinical report prepared. At the same time, the activities for approval will be driven forward.

The German Federal Ministry of Education and Research ("BMBF") is funding the clinical study. The grant awarded to the company (funding codes 13GW0313A+B, 13GW0449A+B) is part of the BMBF's "Healthcare industry in the healthcare research framework program" (= funding body). According to the BMBF, funding is provided for projects on the topic of "Transferring medical technology solutions to patient care - proving clinical evidence without delay". For further information, please refer to the relevant guidelines on the BMBF website: https://www.bmbf.de/foerderungen/bekanntmachung-1376.html."

A significant achievement last year was the company's successful MDR certification and the certification of a first file. These certifications strengthen the company's market position in Europe and open up new sales opportunities. In addition, aap was able to settle a long-standing legal dispute with the landlord, which further increases operational stability.

At an international level, the company achieved an important approval in the USA: the HBS screw system was successfully approved for the US market.

In 2024, several equity measures were also implemented to sustainably strengthen the balance sheet. Equity was increased to 66% of total assets, further strengthening the company's financial stability. Interest-bearing liabilities were reduced to EUR 233 thousand because of these measures.

Outlook for 2025

The 2025 financial year has got off to a promising start. With the activities for the approval of antibacterial-coated implants, aap is entering uncharted territory and will have to provide corresponding funds for approval in the coming years. To this end, the company will actively approach industry partners in order to generate the necessary funds. The Management Board forecasts sales of between EUR 12.0 million and EUR 14.0 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of between EUR -1.0 million and +1.0 million for the financial year 2025.

aap Implantate AG looks back on a successful year 2024 and is well positioned for the coming months. With innovative products and a clear growth strategy, the company is ideally equipped to continue its success in a challenging market environment.

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

About aap Implantate AG

aap Implantate AG is a globally active medical technology company based in Berlin, Germany. The company develops, produces and markets products for traumatology. The IP-protected portfolio includes the innovative anatomical plate system LOQTEQ® and a wide range of cannulated screws. In addition, aap Implantate AG has an innovation pipeline with promising development projects such as antibacterial silver coating technology and magnesium-based implants. These technologies address critical problems in traumatology that have not yet been adequately solved. In Germany, aap Implantate AG sells its products directly to hospitals, purchasing groups and group clinics, while internationally it primarily uses a broad network of distributors in around 25 countries. In the United States, the company and its subsidiary aap Implants Inc. rely on a sales strategy via distribution agents and selective direct sales. The aap Implantate AG share is listed in the General Standard of the Frankfurt Stock Exchange (XETRA: AAQ.DE). Further information can be found on our website at www.aap .de.

The figures presented in this press release may contain technical rounding differences that do not affect the overall statement.

Forward-looking statements

This release may contain forward-looking statements based on the current expectations, assumptions and forecasts of the Management Board and information currently available to it. The forward-looking statements are not to be understood as guarantees of the future developments and results mentioned therein. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual results, financial situation, development or performance of the company and the estimates given here. These factors include those that aap has described in published reports. Forward-looking statements therefore speak only as of the date on which they are made. We assume no obligation to update the forward-looking statements made in this release or to conform them to future events or developments.

If you have any questions, please contact: aap Implantate AG; Rubino Di Girolamo; Chairman of the Management Board/ CEO; Lorenzweg 5; 12099 Berlin

Phone: +49 (0)30 75019 - 141; Fax: +49 (0)30 75019 - 170; Email: r.digirolamo@aap .de