Capio AB (publ) Interim Report January – June 2015

April – June 2015

  · Net sales was MSEK 3,441 (3,357). Organic sales growth was 3.5% (4.1) and
total sales growth was 2.5% (6.9)
  · Operating result (EBITDA) was MSEK 237 (223)1 with an operating margin of
6.9% (6.7)1. EBITDA increased by 6.3% on an adjusted basis
  · Operating result (EBITA) was MSEK 136 (115)1 with an operating margin of
4.0% (3.5)1. EBITA increased by 18.3% on an adjusted basis
  · Earnings per share SEK -0.25 (0.50)2 and adjusted earnings per share SEK
0.47 (0.28)2

January – June 2015

  · ŸNet sales was MSEK 6,919 (6,728). Organic sales growth was 3.2% (4.4) and
total sales growth was 2.8% (6.7)
  · Operating result (EBITDA) was MSEK 528 (495)1 with an operating margin of
7.6% (7.4)1. EBITDA increased by 6.7% on an adjusted basis
  · Operating result (EBITA) was MSEK 327 (284)1 with an operating margin of
4.7% (4.2)1. EBITA increased by 15.1% on an adjusted basis
  · Earnings per share SEK 0.33 (0.86)2 and adjusted earnings per share SEK 1.22
(0.93)2

1   For reported numbers for 2014 refer to page 4. Refer to page 27 for
definitions of EBITDA and EBITA.
2   Earnings per share and adjusted earnings per share before and after
dilution. Refer to note 2 for calculations of earnings per share.

CEO comments:
“Our medical strategy continues to deliver stable improvements in sales growth
and operating results in all segments.”

We have a clear strategy and focus: In continental Europe, Modern Medicine is
driving Rapid Recovery with shorter treatment times and a higher proportion of
outpatient treat-ments. In the Nordics, Modern Management will increase the
direct patient time for medical staff thus driving higher productivity through
empowered people.
In financial terms this translates for the Group into 3.2% organic sales growth
in the first six months (3.5% in the quarter) and an improvement in adjusted
operating result (EBITA) of 15.1% (18.3% in the quarter).
In the Nordics the focus is on more patient time for doctors and nurses through
less administrative duties. Several projects will be implemented during 2015 to
speed up this development.
Organic sales growth was for the first six months 5.1% (4.8% in the quarter) and
adjusted operating result (EBITA) was up 21.1% (17.2% in the quarter). There was
good sales growth and positive development of operating results in Capio St
Göran’s hospital, Specialist Clinics and Norway. Proximity Care has limited
growth and no result improvements and thus has struggled to outperform last
year. In order to improve the development in Proximity Care, there is a very
strong focus on increasing the time for patients through more doctor visits per
day among other actions.
In France the number of patients operated on increased by 2.1%, including 6.6%
outpatient growth and a -6.2% inpatient decrease in the first six months. This
means that we are successful in Rapid Recovery moving patients from in- to
outpatient treatments in line with our strategy. The share of outpatients
operated on has increased by 3 p.p. to 67% out of the total number of patients
operated on in the first six months compared to last year. We have also seen the
average length of stay (AVLOS) continuing to shorten. During the first half of
2015 we have performed in total 3,465 (3,287) hip and knee replacements, of
which 226 (34) in day surgery.
With the French Government’s ambition to push for shorter stays and more
outpatient treatments, prices have been decreased from March 1, 2015 with a
negative effect on prices with -2.5%. The organic sales growth of 1.2% (1.8% in
the quarter) includes the effect of the price reduction as well as the effect
from a doctors’ strike, opposing new regulation, in January in certain
hospitals. Capio France has put a program in place to speed up implementation of
Modern Medicine to compensate for this price decrease. The program is not yet
fully up to speed. However, considering the lower prices from March and the
doctors’ strike effect in January the result development is positive in the
first six months.
In Germany the organic sales growth was 1.1% (2.6% in the quarter) and operating
result (EBITA) was up with 11.1%, reflecting an improved performance in the
general hospitals (mainly the hospital in Dannenberg).
*
This is the first financial report made public after the listing of Capio on
Nasdaq Stockholm on June 30, 2015. Through the listing, Capio gains long term
ownership, further increased transparency and access to capital for expansion. A
new era starts for Capio with the long term ambition to further contribute to
the renewal of European healthcare implementing Modern Medicine and Modern
Management.

Thomas Berglund
President and CEO

Presentation of the interim report

Investors, analysts and media are invited to participate in a telephone
conference on July 21, 2015 at 9.30 am (CET). President and CEO Thomas Berglund
and CFO Olof Bengtsson will present the report and answer questions. The
telephone conference will be audio casted live on www.capio.com. To participate
in the telephone conference, please register at www.capio.com and dial in five
minutes prior to the start of the conference call.

Sweden: + 46 8 566 426 63
UK: + 44 20 342 814 16
US: +1 855 753 22 35
Finland: +358 981710491
France (toll free): 0805980143

Prior to the start of the telephone conference, presentation slides will be
available at www.capio.com.

A recorded version of the audio cast will be available at www.capio.com during
the afternoon (CET).

For further information

Thomas Berglund, President and CEO
Telephone: +46 733 88 86 00
E-mail: thomas.berglund@capio.com

Olof Bengtsson, CFO
Telephone: +46 761 18 74 69
E-mail: olof.bengtsson@capio.com

Henrik Brehmer, SVP Corporate Communications and Public Affairs
Telephone: +46 761 11 34 14
E-mail: henrik.brehmer@capio.com

For further information regarding Capio’s IR activities, refer to
www.capio.com/investors (http://www.capio.com/investorrelations)

Capio AB (publ) discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 08.00 (CET) on July 21, 2015.
About Capio
Capio AB (publ) is a leading, pan-European healthcare provider offering a broad
range of high quality medical, surgical and psychiatric healthcare services in
four countries through its hospitals, specialist clinics and primary care units.
In 2014, Capio’s 12,357 employees provided healthcare services during 4.6
million patient visits across the Group’s facilities in Sweden, Norway, France
and Germany, generating net sales of MSEK 13,200. Capio operates across three
geographic segments: Nordic (54 percent of Group net sales 2014), France (37
percent of Group net sales 2014) and Germany (9 percent of Group net sales
2014). For more information about Capio, please see www.capio.com.