DGAP-News: Expedeon AG: Expedeon Reports Financial Results for Fiscal Year 2018 - Financial Guidance Met

Press release
25 April 2019

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Expedeon Reports Financial Results for Fiscal Year 2018 -
Financial Guidance Met

Conference call to be held today, 25 April 2019, 3:00pm CET/2:00pm BST

- Expedeon meets full year financial guidance:

- Revenues for 2018 of EUR13.1 million up 68% versus 2017

- First ever positive EBITDA posted of EUR1.8 million (2017: -EUR2.9 million), adjusted EBITDA EUR1.0 million

- Successful acquisition and integration of TGR Biosciences contributing strongly to results

- Net loss of EUR301 thousand in 2018 compared to EUR3.7 million in 2017

- Commitment to ongoing R&D expenditure to exploit exciting proprietary technologies including cross-platform development opportunities with TruePrime(TM) and Lightning-Link^(R)

- 2019 financial guidance: More than double adjusted EBITDA to over EUR2 million built on continued revenue growth

Heidelberg, Germany and Cambridge, UK, 25 April 2019 - Expedeon AG (Frankfurt: EXN; ISIN: DE000A1RFM03; Prime Standard) today reported results for the fiscal year ending December 31, 2018.

"2018 has been a watershed year for the company. We have financially and operationally transformed Expedeon over the past three years and created a strong foundation off which to drive profitability and shareholder value. The portfolio of technologies we have assembled, along with our ongoing commitment to R&D means we are extremely well placed to bring exciting and valuable products to market over the next two years which we believe will present another transformational step for the business, said Dr. Heikki Lanckriet, CEO and CSO of Expedeon AG. "Achieving the strong growth and overall positive EBITDA in 2018 reaffirms our conviction in the strategy. Our continued success is based on the continued commercialization of products our customers need and this remains a primary focus of the organization. Our aim is to further develop Expedeon into a valuable and highly profitable life sciences business."

2018 operational highlights:

- February 2018: Extension of OEM agreement with leading global research tools provider

- March 2018: Successful completion of acquired companies' products and services under Expedeon brand name

- March 2018: Completion of Sales and Marketing team restructuring to support continued strong revenue growth

- March 2018: Private placement with proceeds of approximately EUR4.2 million

- May 2018: Debt financing with proceeds of EUR2 million

- May 2018: Acquisition of TGR Biosciences completed

- May 2018: Introduction of 2view^TM unique Western blot detection technology

- July 2018: Completion of change of name to Expedeon AG

- August 2018: Debt financing with proceeds of GBP 5 million

- September 2018: Completion of two commercial-use and supply licences with Reszon Diagnostics and PaxGenBio of proprietary technology in diagnostic assay

- October 2018: Supply and license agreement with Quanterix Corporation for access to proprietary immunoassay technology CaptSure^(R)

Operational highlights after the reporting period:

- January 2019: Expedeon AG licenses Lightning-Link^(R) Rapid Biotinylation technology to Cell Guidance Systems in supply agreement

David Roth, Chief Financial Officer, said: "The financial year 2018 has been very successful for Expedeon with continued growth, both organically and through acquisition, driving profound improvement in our bottom line performance with our first ever positive EBITDA. This is a highly significant milestone for Expedeon and creates a strong baseline for 2019. We are focussed on driving ongoing profitability with our objective of more than doubling adjusted EBITDA off the back of ongoing double-digit revenue growth in 2019."

2018 Financial Results:

Revenues in fiscal year 2018 amounted to EUR13.1 million (2017: EUR7.8 million) ahead of the original forecast for the year and in line with the forecast prepared at the time of the TGR Biosciences acquisition in May 2018. The growth in revenues arose from a combination of acquisitive and organic growth and includes the revenues of TGR Biosciences from the date of acquisition. Revenues included in the 2018 results grew by 68% from 2017.

Total net operating expenses increased to EUR13.7 million in 2018 (2017: EUR12.3 million) with the expansion of the Group. This included other operating income of EUR1.0 million (2017: EUR0) from a revaluation of acquisition earn outs at year end. Excluding this income, the increase in operating expenses of EUR2.6 million was mainly driven by increasing business scale.

Reported EBITDA was EUR1.8 million for the year (2017: -EUR2.9 million). Adjusted EBITDA for the year was EUR1.0 million (2017: -EUR2.1 million). The Company considers adjusted EBITDA to be a key metric. This excludes non-cash charges and income relating to depreciation, amortisation and acquisition accounting as well as equity settled share compensation.

Loss before taxes (EBT) in 2018 was EUR503 thousand (2017: EUR4.7 million). The reported net loss for 2018 was EUR301 thousand (2017: EUR3.7 million).

Non-current assets at EUR51.5 million were higher than in the previous year (EUR43.7 million) and reflect goodwill and other intangible assets recognised following the acquisition of TGR Biosciences. Current assets more than doubled to EUR12.4 million compared with EUR5.8 million in 2017. This comprises a EUR1.1 million increase in trade receivables as well as a EUR4.3 million increase in cash and cash equivalents, driven primarily by the proceeds from loans and the April 2018 capital increase.

Underlying net cash outflows from operating activities further improved from EUR2.9 million in 2017 to EUR158 thousand in 2018. Cash outflow from investing activities amounted to EUR6.7 million, compared to EUR9.3 million in the previous year. Cash inflow from financing activities improved to EUR11.2 million, compared to EUR10.4 million in the year 2017.

Outlook 2019

Expedeon regards innovation based on strong R&D as a key driver of value creation, by acting as a market differentiator enabling the commercialisation of novel, high added value products for life science and diagnostic research. The company focuses on rapidly growing market segments such as NGS and immunology and leverages its proprietary technology to achieve both revenue growth and increasing profitability. By continuing to scale the now vertically integrated Group, the longer-term objective is to achieve a strong flow of revenues with sector conventional profitability margins. The Company thus reasonably expects its profile on the capital markets and associated shareholder value to benefit.

R&D investment continues to have a strong focus on the TruePrime(TM) technology with its potential in oncology as well as the technology's additional potential in other diagnostic and therapeutic areas. Expedeon is currently engaging in a proof of concept research programme to advance this further. Additionally, cross-platform development opportunities with TruePrime(TM) and Lightning-Link^(R) technology are expected to result in a new product family with both research-based and diagnostic-based applications. The Company's R&D activity is expected to yield an exciting stream of new and disruptive products thereby supporting long-term sustainable revenue growth.

As a result of continued strong growth, the Company expects ongoing double-digit revenue growth supported by new product launches. Expedeon expects its revenue growth to translate into improving profitability with the Management Board expecting adjusted EBITDA to exceed EUR2 million for 2019.

Conference call details:

Expedeon will host a conference call (conducted in English) today, 25 April 2019, at 3:00pm CET/2:00pm BST to discuss the consolidated financial statements and important developments during the reporting period and to provide a strategic update and financial outlook.

Interested parties can access the conference call via the following telephone numbers:

- From Germany: +49 (0) 69 7104 45598

- From Spain: +34 91 787 0777

- From the U.S.: +1 212 999 6659

- From UK and all other countries: +44 (0) 20 3003 2666

When prompted, please provide the password, "Expedeon".

The conference call, which is also being webcast, will be accompanied by a slide presentation which can be accessed during the call here.

Please dial in 5 minutes before the beginning of the event.

A conference call recording will be available in the "Investors" section of the Company's website at www.expedeon.com.

Consolidated Financial Statements (IFRS):

The Company's 2018 Annual Report will be available online in the Expedeon website investors' section from April 30, 2019.
For further information, please contact:

Expedeon AG
Dr. Heikki Lanckriet
CEO
Phone: +44 1223 873 364
Email: heikki.lanckriet@expedeon.com

MC Services AG (Investor Relations and International Media Relations)
Raimund Gabriel
Managing Partner
Phone: +49 89 210228 0
Email: expedeon@mc-services.eu

About Expedeon AG: www.expedeon.com
Expedeon is an enabler of exciting advances in medical science and patient care. The Company's core technologies, innovative products and services are used in research laboratories around the world, enabling scientists to push the boundaries of research and product development, and play an integral part in new diagnostic tools being brought to market. With applications spanning the entire workflows in genomics, proteomics and immunology, Expedeon's technologies both accelerate and simplify research and make new and cost-effective processes available to biopharmaceutical and diagnostic organisations alike, thereby underpinning its customers' development and commercialisation objectives. Expedeon's products are sold through a direct sales force and several distribution partners in Europe, the USA and Asia. Expedeon AG has offices in Germany, Spain, UK, USA and Singapore. The Company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (Ticker: EXN; ISIN: DE000A1RFM03).

# # # This publication is intended for information only and constitutes neither an offer to sell nor an invitation to buy securities. Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of Expedeon AG may deviate greatly from the established conclusions or implied predictions contained in such statements. Expedeon does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. # # #^[1] IAS 8 correction subsequent to ZfgK 71(21. Nov. 2018): 33