DGAP-News: Asklepios Kliniken GmbH: Positive growth and special items shape first half-year 2011

DGAP-News: Asklepios Kliniken GmbH / Key word(s): Half Year Results
Asklepios Kliniken GmbH: Positive growth and special items shape first
half-year 2011

31.08.2011 / 06:57

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Press Alert

Interim financial report for the first half-year of 2011

Positive growth and special items shape first half-year 2011 
Consolidated earnings come under pressure from Greek write-down

Hamburg, August 31, 2011. In its first half-year 2011 results, Asklepios
reported a sharp improvement in the number of treated patients which rose a
strong 6.1 percent to over 857,000. Revenues also rose 6.0 percent over the
same period to EUR 1,188.2 million (H1/2010: EUR 1,139.3 million). The
income side was nevertheless offset by higher material costs and a
non-cash-effective special effect which placed the group's half-year
results under considerable pressure, causing an extraordinary fall in
profits to EUR 6.8 million (H1/2010 EUR 53.7 million).

'Despite the remarkable and pleasing growth in the number of patients
treated, economic developments over the first half-year 2011 were a
challenge for us, both from an operating perspective as well as in regard
to out holdings in Athens Medical Center,' said Group  CFO, Stephan
Leonhard. 'We are countering the disproportional rise in material costs -
caused by price increases for medical supplies and a sharp increase in the
number of freelance workers in rural areas, among others  - by
systematically ramping up our group-wide cost management efforts.'

First half-year earnings before interest, tax, depreciation and
amortization (EBITDA) of EUR 100.4 million were slightly lower than for the
same period last year (H1/2010: EUR 106.2 million). Regulatory, collective
bargaining-related and inflationary pressures which could not be fully
compensated for resulted in a lower operating margin of 8.5 percent.
Half-year net income was EUR 6.8 million or EUR 44.3 million after
adjustment for the special effect (H1/2010: EUR 53.7 million). The
normalized return of sales was 3.7 percent or 0.6 percent before
adjustment.

'Our EUR 37.5 million Greek write down has - in view of the significant
deterioration in the country specific risk - a valuing background. The
valuation of the Greek holding is thus set at a very low level, currently
at just ca. 11% of the book value. Beyond this extraordinary step, however,
the bigger picture paints Asklepios as an extremely healthy company in
terms of its debt, equity ratio and financial reserves. We are optimally
positioned to react to the recent increase in acquisition opportunities
coming onto the market in Germany in recent times,' Stephan Leonhard
continues.

Disparate operating developments in the individual clusters and regions in
Germany

Asklepios Kliniken in Hamburg also made a significant contribution to
earnings with a 6.2 percent rise in first half-year revenues, a 9.3 percent
increase in EBITDA and an EBIDTA margin of 9.8 percent. This contrasts,
however, with a lower EBITDA for the post-acute business due to current
approval restrictions imposed by the German Statutory Pension Insurance
Scheme.

In the first half-year 2011, Asklepios generated an operating net cash flow
of EUR 74.8 million which was primarily used for repaying financial
liabilities and investments - especially in medical treatment and in
enlarging the group's stakeholdings in Germany.

Net debt at the end of the quarter was EUR 463.6 million, of which EUR
203.4 million was attributable to subordinated capital. Excluding the
subordinated capital, group indebtedness was 1.2 times EBITDA, compared to
0.9 times EBITDA per 31.12.2010.

The group has an equity capital ratio of 31.7 percent, rising to 42.1
percent if its subordinated capital is also taken into account. At the end
of June 2011, the group had liquid funds and untapped credit lines of over
EUR 550 million at its disposal for further growth and investment.

MediClin AG takeover bid completed

In the course of public takeover bid for MediClin AG conducted in the
second quarter, the associated off-market purchase of 2 million shares and
their posting in the framework of the takeover bid resulted in the group
enlarging its holding in MediClin AG to approximately 34.7 percent. The
original goals of the takeover bid have thus been fulfilled.

- - -

With a ca. 20% market share, the Asklepios Kliniken GmbH healthcare group
is one of the Top 3 operators of private hospitals and healthcare
facilities in Germany. The clinic group pursues a responsible, sustainable,
quality- and innovation-centric growth strategy. Since its formation over a
quarter of a century ago, Asklepios's faithfulness to these principles has
rewarded it with dynamic growth. The group currently has 68 clinics with
around 18,500 beds and ca. 35,000 employees across Germany. In FY 2010,
over 1.6 million patients were treated at Asklepios establishments.

Contact:
Dr. Kai Gregor Klinger
Group Director Investor Relations, Financial Communication & Financing 
Asklepios Kliniken GmbH
Tel.: +49 (6174) 90 1192 - Fax: +49 (6174) 90 1110
Email: k.klinger@asklepios.com  - www.asklepios.com


End of Corporate News

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31.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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137586 31.08.2011