High investments and a focus on areas with strong growth will secure solid growth of Mediclin in the years to come – integrated medical care is still an importart issue of the company‘s strategy

Offenburg, March 22, 2013 – The Members of the Management Board of MEDICLIN Aktiengesellschaft (MediClin) presented a split picture at this year’s balance sheet press conference: Significantly higher Group sales and a Group result which could not benefit from this sales increase. “The development of MediClin in the 2012 financial year very clearly highlights the demand situation on the health care market and the repercussions of the statutory regulations which aim also to keep the cost increases in the health care sector within a manageable framework”, said Frank Abele, CEO of MediClin. He pointed out that in 2013 MediClin will continue to invest in modification, extension und modernisation to be able to offer services that do justice to demand. And he added: “In 2013 some of the measures and expansions implemented in 2012 in medical, therapeutic and nursing care areas with strong growth will have a positive impact on sales and earnings in the current financial year”.

MediClin rigorously pursues its corporate strategy – the provision of cross-sector integrated medical services – by expanding its spectrum of integrated medical services in the years ahead. The expansion of the range of services also embraces the development of new medical, therapeutic and nursing care concepts, which enjoy broad acceptance at cost providers and at the market.

Summary of the Group and segment development
In 2012 Group sales amounted to EUR 509.7 mill. and were EUR 16.1 mill., or 3.3 %, higher compared to previous year’s figure. The increase was achieved by the post-acute segment and the nursing care business area. The Group operating result was EUR 4.3 mill., EUR 8.3 mill. below last year’s value. It was burdened in 2012 by higher other operating expenses, special items and one-time effects towards the end of the year in the range of EUR 2.8 million and higher staff costs. The Group result accounts for EUR -1.5 mill. (2011: EUR 3.1 mill.).

In 2012 the rise in sales in the post-acute segment and in the nursing care business area can be attributed to a significant increase in occupancy compared with the previous year and to the broader range of medical and nursing care services. In the acute segment, sales in the 2012 financial year were lower than in the previous year in spite of the increase in cases and the greater number of nursing days. One of the reasons was the shift in the product mix, and another reason was the restructuring measures to introduce new treatment concepts in a number of hospitals which adversely affected sales. The available capacities could not be fully exhausted in 2012. Sales from outpatient healthcare services, including services of the medical care centres, increased in 2012. Their share in Group sales is 3.3 % (previous year: 3.2 %).

The result in the post-acute segment declined by EUR 0.2 mill. to EUR 2.6 mill. despite the positive sales development due to higher costs. The acute segment result fell during the reporting year by EUR 8.3 mill. to EUR 7.2 mill. In the course of the financial year, bed capacity in the acute segment was raised in a total of four facilities. The newly created capacities are being successively occupied. In the years ahead, the occupancy rate of these additional capacities is expected to rise.

In 2012 about 2.6 million nursing days were provided and 121 thousand cases were treated. The occupancy in the Group was 86.3 %, significantly above previous year’s value (2011: 84.8%).

The average number of employees in 2012, calculated on the basis of full-time staff, was 6,256 (previous year: 6,099 full-time staff).

A total of EUR 27.3 mill. were invested (2011: EUR 29.9 mill.). Cash and cash equivalents amounted to EUR 16.2 mill. (2011: EUR 15.6 mill.).

Capacity expansions will be pushed in areas of strong demand
The capacity expansion proposed or already realized primarily concerns the medical specialist fields of psychiatry, psychosomatics and neurology. But growth potential can also be noted in the orthopaedics and nursing care areas as well as in specialist themes. Therefore, in the fiscal year 2013, MediClin will also focus on transforming and expanding existing capacities. By making this capital expenditure, MediClin aims to bolster the significance of its hospitals at their particular locations and to generate internal growth. Market potential exists for this.

A further important area of activity in 2013 will be the continuous assessment of medical and therapeutic workflow and operating processes. In the meantime, MediClin has achieved a high standard of measurability and verifiability in terms of the quality of its results. MediClin keeps to the goal of translating the insight thus derived into better and more innovative treatment and therapy concepts.

Outlook
The Management Board forecasts a slight sales gain in 2013 and expects a group operating result, excluding one-off and special effects, at the same level as the previous year’s result – provided there is no material change in the referral behaviour of the coverage providers in 2013 and the situation of the industry is not adversely affected by new statutory regulations.

Key figures – yoy comparison and quarterly development of the Group and the segments

About MediClin AG (Ticker: MED; WKN: 659 510)
MediClin AG is a nation-wide clinic operator and large provider of services in the area of Psycho- and Neuro-sciences as well as Orthopaedic. With 34 clinics and 7 nursing care facilities and 11 Medizinische Versorgungszentren (medical care units) in 11 federal states MediClin has a total capacity of approximately 8,100 beds. MediClins’ facilities include acute care clinics, i.e., general hospitals, special treatment facilities, specialised hospitals and clinics for post-acute treatment and medical rehabilitation. MediClin has approximately 8,500 employees.

Important notice:
This press release includes future-oriented statements which are based on assumptions and estimates. While MediClin AG is of the opinion that these assumptions and estimates are correct, the actual future developments and actual future results may deviate from these assumptions and estimates due to the impact of various factors such as changes in the economic conditions in Germany, legal changes concerning the health system, changes relating to cost providers’ expense behaviour. MediClin does not assume liability and gives no warranty that future developments and the income actually achieved in the future will comply with the assumptions and estimates stated in this press release.