Business development of Vita 34 gains significant momentum again in the second quarter

• Revenues up again significantly compared with the previous quarter
• EBITDA margin increases to 29.3 percent in the second quarter
• Good cash flow development allows cash and cash equivalents to rise significantly to EUR 9.9 million

Leipzig, 27 August 2020 - The business development of Vita 34 AG (ISIN: DE000A0BL849; WKN: A0BL84), one of the largest cell banks in Europe, has largely returned to normal despite the adverse economic environment. Compared to the weaker start to the year, revenues increased significantly in the second quarter, with a simultaneous recovery of the EBITDA margin to 29.3 percent. Overall, the market environment began to brighten up at the beginning of the second quarter, which is reflected in an increase in stored units, particularly at the end of the second quarter, and a sustained increase in incoming orders.

Compared with the previous year, revenues in the first half of the year were down by only 1.7 percent to EUR 9.6 million (H1 2019: EUR 9.8 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 2.6 million in the first half of the year were slightly lower than in the same period last year (H1 2019: EUR 2.8 million) due to the sales trend as well as higher marketing and sales expenses, especially in the first quarter. In the second quarter, the company returned to the previous year's level with an EBITDA of EUR 1.4 million and an EBITDA margin of 29.3 percent, despite one-off extraordinary expenses in connection with the takeover bid.

"All in all, it is clear that COVID-19 has at times hindered the marketing opportunities of our product range and thus has not left Vita 34 unaffected," explains Dr. Wolfgang Knirsch, CEO of Vita 34 AG. "However, we have adapted to the new circumstances and have thus succeeded in quickly picking up speed again even in this changed environment. In particular through optimized online marketing and web-based events, we are able to convince parents-to-be of our offer even more directly and personally than before."

The key figures for the business development are as follows:

The limited but noticeable impact of the COVID-19 pandemic on the course of business becomes apparent when looking at the regional development of sales. While there was almost no clouding of business in the core markets of the DACH region, this was more evident in the regions in Southern Europe that were more strongly influenced by COVID-19.

Thanks to the good earnings performance, Vita 34 was able to generate an operating cash flow of EUR 1.8 million in the first half of 2020, which was below the previous year's figure of EUR 2.4 million, but nevertheless underlines the company's high internal financing power. The main reasons for the decline were higher stockpiling as a precautionary measure in the wake of the COVID-19 pandemic, increased receivables due to the new PUR contract model and higher income tax payments due to the profitability achieved. The cash flow from investing and financing activities also developed positively, resulting in a further overall increase in cash & cash equivalents of 9.2 percent to EUR 9.9 million (31.12.2019: EUR 9.1 million).

"The second quarter shows us that we are coping well with the current situation," says CFO Falk Neukirch confidently. "Our business performance is good, as the circumstances dictate, and our finances remain extremely sound. We are still on schedule with the development of the immune cell product, although the general environment in the current phase of partner search limits the possibilities for intensive talks."

Against the background of the good development in the first half of the year and the course of business in the third quarter so far, the Management Board confirms the outlook for the full year 2020. Accordingly, revenues of between EUR 19.0 and 21.0 million and EBITDA of between EUR 4.8 and 5.8 million are still anticipated.

Contact:
Ingo Middelmenne
Investor Relations
Vita 34 AG
Phone: +49 (0341) 48792 - 0
Mobile: +49 (0174) 9091190
Email: ingo.middelmenne@vita34.de

Company profile
Vita 34 was founded in Leipzig in 1997 and is today one of the leading cell banks in Europe. As the first private umbilical cord blood bank in Europe and a pioneer in cell banking, the company has been offering collection logistics, preparation and storage of stem cells from umbilical cord blood and umbilical cord tissue as a full-service provider for cryopreservation ever since. Based on the expansion of the business model in 2019, Vita 34 also intends to offer the storage of immune cells from peripheral blood and stem cells from the body's own fat in the future. The body's own cells are a valuable starting material for medical cell therapy and are kept alive at temperatures around minus 200 degrees Celsius so that they can be used for treatment if necessary. More than 237,000 customers from more than 20 countries have already provided for the health of their families with a cell depot at Vita 34.