Business development of MediClin in 2009

„The effects of the global financial and economic crisis were less severe on clinic operators than was originally assumed, allowing us to continue on our chosen path in a manner unaffected by the downturn“, said Dr. Ulrich Wandschneider, CEO of MediClin.

Group sales increased by 3.0% – proposal of a dividend payment

MediClin has achieved sales of EUR 470.6 million (2008: EUR 456.8 million) in the FY 2009. The Group operating result increased by 7.4 % or EUR 1.2 million to EUR 17.0 million (2008: EUR 15.8 million) and the result attributable to shareholders of MediClin AG was EUR 10.3 million, after EUR 7.1 million in the previous year.

Based on the satisfactory development in 2009 and relatively stable prospects for 2010 the Management Board and the Supervisory Board will propose a dividend of EUR 0.05 per share for the 2009 financial year at the Annual General Meeting on May 26, 2009.

The occupancy rate increased further in 2009

The occupancy rate of the Group rose from 86.2 % to 87.1 %. In total the number of cases decreased slightly to be seen alongside with an increase in nursing days. The occupancy rate in the post-acute segment went up to 87.5 % (2008: 87.0 %) and in the acute segment up to 83.7 % (2008: 81.5 %). Both segments increased sales as well as segment results. In the post-acute segment sales were raised by 3.2 % up to EUR 270.0 million (2008: EUR 261,6 million) and result by 20,7 % up to EUR 6.2 million (2008: EUR 5,1 million). In the acute segment sales increased by 2.5 % up to EUR 189.6 million (2008: EUR 185.0 million) and result by 9,0 % up to EUR 17.2 million (2008: 15,8 million). The share of sales contributed by the business field nursing care amounts to EUR 11,3 million (2008: EUR 11,1 million) thus being up 2.4 % against previous year.

Cash flow and cash and cash equivalents allow external growth

Cash flow from operating activities rose to EUR 32,3 million (2008: EUR 21,5 million) in 2009. Cash and cash equivalents amounted to EUR 58,5 million (31.12.2008: EUR 57.4 million) an the end of the reporting period.

In 2009 investments were made in conversion and expansion measures and modern medical equipment

In 2009 in addition to the three already operating medical care centres (MVZ) new medical care centres were established. Gross additions to property, plant and equipment totalling EUR 16.2 million mainly relate to conversion and expansion measures. A total of EUR 4.2 million was invested for modern medical equipment. Furthermore in the context of our long-term strategy to save energy we have invested in the new acquisition of block heat and power plant.

The number of employees (full-time employees) is slightly above the previous years figure

The average number of employees in 2009, calculated on the basis of full-time staff, was 5,834 (2008: 5,816 full-time staff).

For 2010 a stable development is expected

MediClin could increase its sales and results in 2009. In terms of the number of beds, the Group is one of the large providers of rehabilitation services, and an operator of acute care facilities in Germany. The medical service offer places emphasis on the neurology and psychological sciences, orthopaedics, and specialised hospitals such as heart centres, clinics for adiposity, diabetes or radiotherapy.

The ongoing financial crisis and the tense labour market, have had no negative impact on MediClin’s occupancy rates and business development in the first two months of 2010.

For the 2010 financial year, the Management Board anticipates sales on the previous year’s level, as long as framework conditions in the industry do not change drastically. Achieving a result comparable with the previous year is intended, mainly through efficiency gains and stringent cost management. In relation to external growth, acquisition efforts in the acute sector are the main focus.

The annual report 2009 is available under www.mediclin.de in German und English