Year-end report 2011: Changed market factors - powerful actions taken

Year-end report 2011: Changed market factors - powerful actions taken

FOURTH QUARTER 2011

  · In December Gildhøj Privathospital, an orthopaedic clinic outside
Copenhagen, was acquired. Gildhøj Privathospital will be consolidated from
February 1, 2012.
  · Continued high demand from patients in our clinics within Service Line Spine
and Orthopaedics.
  · Successful restructuring of the ownership in our clinic in Prague. This will
have a positive effect on the result and cash flow from 2012.
  · Further efforts completed within Service line Dental including new
management and new structure, which is expected to have positive impact on
future profitability and efficiency. Due to the lack of historic profitability,
a write-down of goodwill amounting to SEK 30.0 million has been taken into
account and is reflected in the results below.
  · Sales revenues increased by 5 percent to SEK 186.8 million (177.6).
  · The operating result before goodwill write-downs amounted to SEK 3.5 million
(12.5). The operating result after goodwill write-downs amounted to SEK -26.5
million.
  · The result before tax amounted to SEK -27.7 million (12.8).
  · The result after tax amounted to SEK -29.4 million (12.6).
  · The result per share amounted to SEK -0.46 (0.13).
  · Organic growth of -3 percent (10).

WHOLE YEAR 2011

  · Revenues increased by 15 percent to SEK 675.2 million (585.5).
  · The operating result before goodwill write-downs amounted to SEK 15.2
million (28.4). The operating result after goodwill write-downs amounted to SEK
-14.8 million.
  · The result before tax amounted to SEK -18.7 million (29.3).
  · The result after tax amounted to SEK -28.6 million (20.1).
  · The result per share amounted to SEK -0.51 (0.15).
  · Organic growth of 6 percent (12).

THE CEO’S COMMENTS
Market conditions within above all Bariatrics (obesity surgery) and the Dental
area (specialist dentistry) continued to be difficult during the fourth quarter.
The positive development trend of the Bariatric clinics, which had lasted for
quite a long period of time, was broken during the end of the second quarter,
primarily due to worse inclusion criteria (Denmark), greatly reduced
remuneration levels (Sweden, Denmark and the Czech Republic), and cautious
private demand (Sweden, Finland). It is true that referral volumes and private
demand for complex treatments within dentistry, primarily implants, bottomed out
and increased slightly during the fourth quarter, but they are still 20-25%
under the level for 2009. Our three clinics continue to take market shares.

The result for the fourth quarter is thus unsatisfactory, as is the result for
the whole of 2011. The constant positive development of results that GHP has
displayed was broken in the third quarter and the negative trend was further
strengthened during the fourth quarter. Measures have been taken to turn this
development around and will give the intended effects during the coming half
year in 2012. These are among other measures, primarily cost-reducing measures
and adaptation of capacity. The ownership of the unprofitable Bariatrics clinic
in Prague have been complemented with an actor that has significant contacts
with local insurance companies. We are also constantly taking measures to
increase revenues. A review and a broadening of the range of services and
products offered is ongoing. Strengthened market communication, primarily
through social media, has been begun with good results.

Despite the partly temporary deterioration in market conditions and thereby the
results for 2011, we have reason to be optimistic about the outcome for 2012. We
have a very strong development in demand within the other specialities, Spine,
Ortho, Arrhythmia and Gastro. We have also further strengthened our position as
the leading supplier to the Swedish insurance companies and are now making
efforts to achieve the same position in Denmark.

We completed our second Danish acquisition in December, the leading
spine/orthopaedic clinic in Själland, Gildhøj Privathospital in Copenhagen.
Gildhøj Privathospital only conducts treatment of insurance patients and has a
very strong professional brand name. We have thus acquired two of the three
clinics that were at the top of our priority list without taking part in
competitive bidding.

24 February 2012
Gothenburg
Global Health Partner AB (publ)

The Board

Queries should be addressed to:
Per Båtelson, CEO, phone: 46 705 95 57 00
Tobias Linebäck, CFO and Head of Investor Relations, phone: 46 708 55 37 19