Quarterly Report • Oct 7, 2021
Quarterly Report
Open in ViewerOpens in native device viewer
As an investment company, the strategic focus of MPH Health Care AG's activities is on companies from the high-growth segments of the health care market and the real estate industry. The health care market includes both the segment financed by health insurance companies ("first health care market") and the privately financed segment (so-called "second health care market"). Considering the demographic development in Germany and Europe, we assume that the first and second health care markets will continue to grow in the coming years. A society that is getting older due to increasing life expectancy needs a stable supply of medication over a longer period of time. In addition, health and body awareness and the demand for medical-aesthetic services are increasing in old age. MPH wants to exploit the resulting potential by working in partnership with its portfolio companies.
The aim is to generate profitable growth in the companies through active further development, thereby increasing the value of the respective portfolio company itself and the enterprise value of MPH Health Care AG. However, MPH Health Care AG is not exclusively focused on the health care and real estate markets. There are also investment opportunities in other high-growth sectors, we would like to exploit and expand upon.
| Letter to the shareholders 4 |
|---|
| Net Asset Value of MPH Health Care AG 6 |
| MPH on the capital market 7 |
| Short profile of of investments 8 |
| M1 Kliniken AG8 |
| HAEMATO AG .10 |
| CR Capital AG12 |
| Interim Group Management Report 15 |
| 1. Business model of the company 16 |
| 2. Economic report 16 |
| 3. Business development and position of the company 21 |
| 4. Forecast report 23 |
| IFRS Interim Financial Statement 25 |
| IFRS Shortened Annex (notes) 31 |
| Further information 35 |
Despite the ongoing restrictions caused by the coronavirus pandemic, MPH Health Care AG benefited from the recovery of the share prices of its listed investments in the first half of 2021. The company achieved a profit after tax (in accordance with IFRS accounting) of EUR 23.5 million. This compares to a loss after tax of EUR 32.7 million for the same period in the previous year. In the first six months of 2021, operating income increased significantly from EUR 5.8 million to EUR 24.5 million.
Equity increased by 11.7% to EUR 224.7 million compared to December 31, 2020 (EUR 201.3 million). The Net Asset Value (NAV) per share increased respectively from EUR 47.01 to EUR 52.49. The equity ratio as of June 30, 2021 increased to 97.2% (December 31, 2020: 95.5%).
As a result of the increased valuations of the portfolio companies, the (reporting date-related) fair value measurements of the financial assets of MPH AG also improved, which led to an increase in earnings per share to EUR 52.49 (previous year EUR -7.62 per share). The previous year's earnings per share already took into account the capital reduction in a ratio of 10:1, which was resolved at the Annual General Meeting on 22 July.
Due to the current uncertainties associated with the Corona pandemic, our listed subsidiary M1 Kliniken AG decided at its Annual General Meeting in July 2021 not to pay a dividend in order to strengthen liquidity. The Annual General Meeting of the second listed investment CR Capital AG took place on 19 August 2021. At its general meeting, CR Capital AG decided to distribute a dividend of EUR 1.50 per share. In order to have sufficient financial flexibility for further growth and expansion of the investments, the Annual General Meeting of MPH Health Care AG on July 15, 2021 agreed not to pay a dividend and to carry forward the results of the 2020 financial year in full to new account.
Following the implementation of a strict hygiene concept in the specialist centres and clinics of M1 Med Beauty, the practices and clinics in Germany as well as abroad were able to operate without restrictions for the most part (exception: Great Britain and Australia). There was a certain normalisation in the utilisation of the locations from March/April 2021 onwards. However, the ongoing vaccination campaign in the target age groups of M1 has led to some postponements. This is due to the intervals required between vaccination and treatment. Fortunately, however, it proved that Corona and all related measures do not have a lasting negative impact on the field of beauty medicine. Thus, M1 was able to increase the number of treatments performed in the first half of 2021 by almost 40% to 163,000 compared to the previous year.
In the meantime, M1 Kliniken AG also regained its well-known growth momentum and opened four new locations in Germany in the first half of 2021 (Kiel, Erfurt, Karlsruhe, Freiburg). Further locations in Germany and abroad will follow. Thus, by the end of the year, specialist centres are to be opened in the UK (Glasgow), Australia (Brisbane) and the Netherlands (The Hague). This places M1 within reach of the target issued for the end of 2021 of operating 50 locations in its practice network.
Comparing the key financial figures for the first half of 2021 with those of the previous year is complex, as the first-time full consolidation of HAEMATO AG has added significant new revenue figures. In addition, M1 also consolidated its foreign M1 subsidiaries for the first time since the 2020 annual financial statements.
The IFRS consolidated financial statements of M1 Kliniken AG in the first half of 2021 totalled EUR 164.9 million. This compares with EUR 31.7 million in the first half of 2020. The Beauty segment accounted for EUR 22.0 million of this - an increase of around 40% compared with the previous year's figure. Equity increased from EUR 115.3 million on December 31, 2020 to EUR 136.4 million on June 30, 2021. The equity ratio is 69.7% (December 31, 2020: 61.1%).
With effect from July 1, 2020, MPH Health Care AG contributed all shares held in HAEMATO AG to M1 Kliniken AG as part of a capital increase through contributions in kind. The main purpose of this is to intensify the private label business in both companies. By joining forces in an entrepreneurial alliance, both companies will benefit even more from each other. HAEMATO AG thus represents an indirect shareholding (via M1 Kliniken AG).
HAEMATO AG continued its successful growth course in the first half of 2021. In the first six months of 2021, sales increased by EUR 35.7 million to EUR 151.5 million, which corresponds to growth of around 31%. The renewed sales growth was achieved primarily through a focus on special pharmaceuticals for chronic diseases and products related to aesthetic medicine. It also included the sale of medical COVID-19 testing products from the "diagnostics" segment.
The result from ordinary activities (EBITDA) for the first half of 2021 increased from EUR 2.1 million to EUR 8.0 million. The EBITDA margin rose disproportionately from 2.0% to 6.7%. The operating result (EBIT) increased significantly from EUR 1.2 million to EUR 7.2 million.
Our second direct listed investment, CR Capital AG, also continued its successful course in the first half of 2021. It was almost unaffected by the COVID-19 pandemic and continued to grow profitably. CR Capital invests in holdings along the real estate value chain which offer affordable housing and attractive investment opportunities. In the first half of 2021, CR Capital increased its total operating performance (including income from investments) by more than 50% from EUR 40.1 million to EUR 63.5 million. The result from ordinary activities (EBITDA) rose disproportionately from EUR 37.9 million to EUR 62.4 million. Equity increased from EUR 178.0 million on December 31, 2020 to EUR 238.3 million on June 30, 2021. This corresponds to an increase of around 34%. The equity ratio is 97.8% (31.12.2020: 94.4%).
The first half of 2021 has been positive for our investments and they are developing steadily. The two segments "Health Care" and "Real Estate" have proven to be crisis-resistant and generated further growth even during the crisis. By taking the right investment focus, MPH has diversified its risk in two growth markets. I am convinced that this will also have a positive effect on MPH's share price in the future. I would like to express my sincere thanks for the commitment of the employees of the MPH Group and wish everyone involved continued good health. I would also like to thank the Supervisory Board for this constructive cooperation during the reporting period.
Berlin, August 2021
Patrick Brenske (Management Board)
| Net Asset Value | 30.06.2021 in EUR | 30.06.2020 in EUR |
|---|---|---|
| Equity | 224,720,188.26 | 238,985,777.33 |
| Equity per share | 52.49 | 55.82 1) |
| MPH | Number of stocks / shares |
Share price 2) 30.06.2020 |
Market value |
Fair value |
|---|---|---|---|---|
| as of 30.06.2021 | pieces | in EUR | in EUR | in EUR |
| M1 Kliniken AG | 12,310,482 | 10,70 | 131,722,157 | |
| HAEMATO AG | 0 | 0 | 0 | |
| CR Capital AG | 2,192,455 | 33,10 | 72,570,261 | |
| TOTAL Market price of valued shares |
204,292,418 | 204,292,418 | ||
| Unlisted companies shareholdings |
23,661,907 | |||
| TOTAL Fair Value valued shares |
227,954,324 | |||
| Liquid funds | 901,841 | |||
| Other assets | 2,402,342 | |||
| Application of funds (assets) | 231,258,508 | |||
| Equity | 224,720,188 | |||
| Interest-bearing liabilities | 3,000,000 | |||
| Other liabilities | 3,538,319 | |||
| Source of funds (liabilities) | 231,258,508 |
| 01.01. - 30.06.2021 in kEUR | 01.01. - 30.06.2020 in kEUR | |||
|---|---|---|---|---|
| Sales | EBITDA | Sales | EBITDA | |
| M1 Kliniken AG | 164,880 | 9,866 | 31,700 | 1,712 |
| HAEMATO AG | 151,525 | 7,986 | 115,808 | 2,066 |
| CR Capital AG | 63,530 3) | 62,417 | 40,108 | 37,941 |
1) converted to current share capital, initially EUR 5.58; 2) Xetra closing price; 3) Total income including income from participations
| Class of shares | Bearer shares |
|---|---|
| Number of shares | 4,281,384 |
| WKN / ISIN | A289V0 / DE000A289V03 |
| Ticker symbol | 93M1 |
| Market places | Xetra, Frankfurt, Stuttgart, Dusseldorf, Berlin, Munich, Tradegate |
| Market segments | Open Market - Frankfurt Stock Exchange |
| Designated Sponsor, Listing Partner | Oddo Seydler Bank AG |
| Market capitalization | EUR 126.3 million (as of 30.06.2021 - Xetra) |
| Coverage | GBC AG, First Berlin Equity Research GmbH |
Despite ongoing supply shortages, the recovery of the global economy continues at a solid pace. The Purchasing Managers' Index for June indicates a historically high level overall for the second quarter of 2021. Regardless of the increasing difficulties due to supply shortages, trade in goods continues to develop strongly. The pandemic continues to be a factor of uncertainty for the recovery of the global economy. As a result, growth paths in individual countries could become increasingly uneven. Global real GDP growth (excluding the Eurozone) increased by 0.9% in the first quarter of 2021 compared to the previous quarter. Stable growth momentum is also expected in the second quarter. Industrialised and emerging economies will continue to accelerate their economies, regardless of the different pandemic developments.1
Business activity in Germany is also picking up speed again. Although the resurgence of the Corona pandemic brought the economic recovery to a standstill in the winter half-year, overall economic production will expand at a high rate in the further course of the year. Its pre-crisis level will be exceeded once again. Thus, trade and contact-intensive services in particular should benefit from the rebound in private household consumption expenditure. All in all, GDP is expected to grow by 3.9% this year and by 4.8% in 2022. Consumer prices will rise at a much faster rate of probably 2.6% this year. The increase in value-added tax and the climate package will also have a price-increasing effect. Next year, inflation will probably be around 2%.2
The Xetra closing price of the MPH share rose from EUR 28.80 on July 1, 2020 to EUR 29.50 on June 30, 2021; this corresponds to an increase of 2.4% in one year.
The Net Asset Value (NAV) of MPH Health Care AG was EUR 52.49 per share as of June 30, 2021 (previous year a converted value of EUR 55.82 per share); this corresponds to a reduction of 6.0% resulting from the fair value measurement of the share prices of the listed investments as at the reporting date on June 30, 2021. Despite the current decline in the share price, MPH's future prospects are still considered good. This is also reflected in the current rating of the analyst agencies. For example, the analysts at First Berlin Equity Research GmbH stated a target price of EUR 75.00 for MPH on June 11, 2021.
M1 Kliniken AG is the leading provider of health services in the field of beauty medicine in Germany. In the aesthetic and surgical areas, the group of companies offers products and services with the highest quality standards. Under the brand name "M1 Med Beauty", aesthetic medical treatments are currently offered in more than 40 specialist centres. The M1 Schlossklinik for plastic and aesthetic surgery in Berlin, equipped with six operating theatres and 35 beds, is one of the largest and most modern facilities of its kind in Europe.
Since the end of 2018, M1 has been pushing ahead with its international expansion and is currently also operating in Austria, Switzerland, the Netherlands, Great Britain, Croatia and Australia. With its investment in HAEMATO AG, since the middle of 2020, M1 Kliniken AG is also in a position to exploit sales and earnings potential of treatment products in the medical-aesthetic field.
Despite the Corona-related restrictions, M1 Kliniken AG was able to continue its growth course in the first half of 2021. It opened four new specialist centres in Germany. Further sites in Germany and abroad are planned for the second half of 2021. Significant sales growth is still expected for the following years. Growth-related economies of scale and synergies in the value chain will sustainably ensure M1's price leadership.
In the first half of 2021, Group sales (including the full consolidation of HAEMATO AG) increased from EUR 31.7 million to EUR 164.9 million. The result from ordinary activities (EBITDA) increased from EUR 1.7 million to EUR 9.9 million. The price of the M1 Kliniken share on June 30, 2021 was EUR 10.70, 3.6% lower compared to the previous year.
| COMPANY KEY FIGURES | as of 30.06.2021 |
|---|---|
| Class of shares | Bearer shares |
| Number of shares | 19.643.403 |
| WKN / ISIN | A0STSQ / DE000A0STSQ8 |
| Ticker symbol | M12 |
| Market places | Frankfurt, Xetra, Dusseldorf, Stuttgart, Berlin, Hannover, Hamburg, Munich, Tradegate |
| Market segments | Open Market - Frankfurt Stock Exchange |
| Designated Sponsor, Listing Partner | Kepler Cheuvreux |
| Coverage | Bankhaus Metzler, Berenberg Bank, Commerzbank AG, Hauck & Aufhäuser, Kepler Cheuvreux |
| Market capitalization | EUR 210.18 million (as of 30.06.2021 - Xetra) |
HAEMATO AG is a listed pharmaceutical company (with a wholesale and manufacturing licence). The company focuses on the growth markets of high-priced special pharmaceuticals from the indication areas of oncology and HIV as well as rheumatism, neurology and ophthalmology. With direct access to around 7,000 pharmacies in Germany and Austria, HAEMATO contributes towards enabling every patient to benefit from the latest, innovative therapies. As a result of the Corona pandemic, business activities were expanded to the area of medical products. Here, the focus was on COVID-19 diagnostics (PCR and antigen rapid tests).
With effect from July 1, 2020, MPH Health Care AG contributed its entire shareholding in HAEMATO AG to M1 Kliniken AG as part of a capital increase through contributions in kind. The main purpose of this is to promote the high-margin private label business in both companies.
In the first half of 2021, Group sales increased by around 31% to EUR 151.5 million. The operating result (EBIT) increased from EUR 1.2 million to EUR 7.2 million. As of June 30, 2021, the share price of the HAEMATO was EUR 26.90, 4.3% lower compared to the same time last year.
| COMPANY KEY FIGURES | as of 30.06.2021 | as of 31.12.2020 | |
|---|---|---|---|
| Class of shares | Bearer shares o. N. | Bearer shares o. N. | |
| Number of shares | 5,229,307 | 4,753,916 | |
| WKN / ISIN | A289VV / DE000A289VV1 | ||
| Ticker symbol | HAEK | ||
| Market places | Xetra, Frankfurt, Stuttgart, Hamburg, Berlin, Munich, Tradegate, Dusseldorf |
||
| Market segments | Open Market - Frankfurt Stock Exchange | ||
| Designated Sponsor, Listing Partner | ICF Kursmakler AG | ||
| Coverage | GBC AG, First Berlin Equity Research GmbH, Warburg Research | ||
| Market capitalization | EUR 140.67 million (as of 30.06.2021 – Xetra) |
CR Capital is an integrated investment manager with an innovative portfolio of companies along the real estate value chain. With its holdings "TERRABAU GmbH", "CR Global Care GmbH" and "CR Financial Services", CR Capital creates an integrated investment concept with added value for its shareholders. The focus of the business activities lies in the creation of high-quality residential properties in solid construction at affordable prices. The company's clients include both private owners and institutional clients. Currently, the investment focus is on the suburbs of Berlin and Leipzig. In the first three months, CR Capital was able to notarially sell 161 residential units. The sales volume of the Rousseau Park project in Berlin's suburbs and the Leipzig - Schkeuditz project was approximately EUR 54 million.
In the first half of 2021, the result from ordinary activities (EBITDA) increased by around 64% to EUR 62.4 million. The share price of CR Capital was EUR 33.10 on June 30, 2021, 2.6% lower than the previous year.
The "CR Financial Services" unit lowers the entry barriers and the investment process in the "real estate asset class" is slimmed down. As a result, there is direct and straightforward access to real estate investments.
In addition to real estate, the investments also offer opportunities to invest in lucrative capital investment products and opportunities through various vehicles.
| COMPANY KEY FIGURES | as of 30.06.2021 | as of 30.12.2020 | |
|---|---|---|---|
| Class of shares | Bearer shares | Bearer shares | |
| Number of shares | 3,811,370 | 3,756,754 | |
| WKN / ISIN | A2GS62 / DE000A2GS625 | ||
| Ticker symbol | CRZK | ||
| Market places | Xetra, Frankfurt, Tradegate, Dusseldorf, Stuttgart, Munich, Berlin |
||
| Market segments | Open Market - Frankfurt Stock Exchange | ||
| Designated Sponsor, Listing Partner | Oddo Seydler Bank AG | ||
| Coverage | GBC AG, First Berlin Equity Research GmbH | ||
| Market capitalization | EUR 126.16 million (as of 30.06.2021 - Xetra) |
| 1. Business model of the company 16 | |
|---|---|
| 2. Economic report 16 | |
| 2.1 Global economic environment 16 2.2 Economic forecast for Germany 17 2.3 Health care and pharmaceutical market in Germany 19 2.4 Real estate industry in Germany 21 |
|
| 3. Business development and position of the company 21 | |
| 3.1 Business development 21 3.2 Earnings situation of the MPH Group (IFRS) 21 |
|
| 3.3 Financial position of the MPH Group (IFRS) 22 3.4 Net assets of the MPH Group (IFRS) 23 |
|
| 4. Forecast report 23 |
MPH Health Care AG is a Berlin-based investment and holding company listed on the Frankfurt Stock Exchange (Basic Board). Its business activity consists of investing in companies with the aim of long-term asset growth.
The strategic focus of its activities lies on the acquisition and development of companies and company shares, particularly in growth segments of the health care market and the pharmaceutical industry. This includes both insurance-financed ("first" health care market) and privately financed segments (so-called "second" health care market). In addition, MPH also exploits potential from other high-growth sectors outside these markets, such as the real estate industry. The aim is to generate profitable growth in the portfolio companies through active further development, thus promoting MPH's corporate value.
In the first half of 2021, MPH Health Care AG held direct investments in two listed companies (M1 Kliniken AG and CR Capital AG). The shares in the listed investment HAEMATO AG were contributed to M1 Kliniken AG with effect from July 1, 2020 as part of a capital increase through contributions in kind. As a result, MPH AG now holds 67.2% of the shares in HAEMATO AG. Consequently, HAEMATO AG now represents an indirect shareholding. Compared to the previous year, the stock market value of the investments as of June 30, 2021 decreased by EUR 22.9 million to EUR 204.3 million. This is due to the fair value measurement of the share prices of these investments as of the reporting date.
Because of the Corona pandemic-related restrictions and continuing uncertainties about the further course of the pandemic, the investment M1 Kliniken AG has decided not to distribute a dividend this year. Instead, for reasons of prudence, it has decided to carry forward the full amount of the result for the financial year 2020 to new account in order to strengthen liquidity and be able to finance further growth. At the annual general meeting on August 19, 2021, CR Capital AG resolved to distribute a dividend of EUR 1.50 per share.
Following strategic decisions, MPH Health Care AG also decided at its Annual General Meeting on July 15, 2021 to carry forward its net profit for the 2020 financial year in full to new account and not to distribute a dividend.
The global economy remained on an upward trend in the first months of 2021 despite renewed pandemic-related restrictions. The impact of the pandemic was mostly limited to the service sectors and industrial production. World trade also continued to expand strongly until the spring. However, shortages in supply and logistical problems have slowed down their upswing. The tensions in the global economic structure are reflected in strong price increases for raw materials, intermediate goods and transport services, which have already contributed to a noticeable rise in consumer prices. A continuing expansive monetary policy and considerable impulses from fiscal policy in the United States, also in the Eurozone, are driving the economy in the forecast period. The Kiel Institute for the World Economy (IfW) expects global output (measured on a purchasing power parity basis) to increase by 6.7% in 2021. Global economic activity is also expected to increase by 4.8% in 2022, which is stronger than the medium-term trend. Due to the high economic momentum and higher inflation risks, the Kiel Institute expects the US Federal Reserve to tighten monetary policy earlier than previously expected. This is associated with the risk that financing conditions on the international capital markets will already deteriorate significantly in the forecast period.3
Global industrial production continued to grow strongly. The IfW indicator for global economic activity, calculated on the basis of sentiment indicators from 42 countries and based primarily on surveys for the manufacturing sector, climbed to a very high level. Regionally, the development was very uneven. While the gross domestic product in the United Kingdom and Japan declined significantly, growth in China slowed down noticeably. Economic momentum in the rest of Asia remained high and increased slightly in the USA. The development in the European Union was also very mixed, with an overall decline in economic performance of 0.3% in the individual member countries. Whereas Portugal and Germany, for example, recorded significant declines in production, Ireland and some Eastern European countries experienced strong growth.4
For the spring, there are signs of a renewed increase in global economic expansion. While the infection figures in most countries were still high at the beginning of the second quarter, they have declined significantly in many places in recent weeks. This has been supported by progress in vaccination in many countries, which has made it possible to ease pandemic-related restrictions. The upswing in industrial production and world trade was recently slowed by supply shortages and logistical problems. Global goods production had already returned to its pre-crisis level towards the end of last year and exceeded it by around 2.5% in March 2021, according to figures from the Dutch CPB institute.5
Survey data suggest that capacity utilisation in industry worldwide has now returned to normal levels. As a result of the rebound in industrial activity and reduced supply, commodity prices have increased broadly. The HWWI commodity price index has more than doubled within a year. The increase in the second half of last year was mainly due to a recovery in oil prices, but in the first months of this year, prices for industrial raw materials in particular, but also for some types of food, have risen sharply.6
After the global economy in 2020 was largely shaped by the development of the Corona pandemic, the situation in the first half of 2021 was divided. Industrial activity was comparatively stable while services continued to be constrained by the pandemic measures. Even though industrial output fell slightly in the first quarter, the reasons are related to shortages in supply in parts of industry rather than a lack of demand. There are high incoming orders and a positive development in exports, especially in the second quarter of 2021.7 German economic activity is recovering in the second half of 2021, driven in particular by private and government consumer spending. Due to the easing of measures against the Corona pandemic, consumption was significantly higher in the second quarter than at the beginning of this year or the end of last year.8
Economic recovery in Germany has slowed down due to the resurgence of the Corona pandemic during the winter half-year. In the further course of 2021, overall economic production will probably expand at a high pace and regain its pre-crisis level. With the lifting of the pandemic-related restrictions, activity will resume rapidly, especially in those sectors that were previously particularly affected. Trade and contact-intensive services are likely to benefit from the rebound in private household consumption. However, the recovery will delay in the industrial sector for the time being. The strong global recovery has brought along multi-layered supply shortages that are noticeably slowing down the production of many companies. With the frictions on the production side, the pressure on prices has also increased, especially since the economic dynamics are high worldwide. Thus, prices for raw materials, intermediate goods and transport services have recently been on a broad upward trend. Consumer prices will rise at a much faster pace this year, probably by 2.6%, especially since the increase in VAT and the climate package are also driving up prices. Next year, inflation will probably be around 2%.9According to the DIW forecast on gross domestic product in Germany, GDP is expected to grow by 3.2% this year and by 4.3% in 2022.10
Manufacturing has not been able to keep up with the strong increase in demand since the middle of last year, which is already reflected in significant price increases in new business. This is mainly due to worldwide supply shortages - also as a result of transport problems - which are restricting the increase in production. Finally, despite the incipient recovery, fiscal policy in Germany - and in important consumer countries - remains very expansionary. This is also due to the fact that structural additional spending, which was decided during the crisis, is now gradually coming into effect. All this is accompanied by a continued very expansive monetary policy. All in all, the signs are pointing to strong expansion, which is driving up prices as a result of the fact that the corresponding production capacities cannot yet keep up with the higher demand.11
Source: Statistisches Bundesamt, DIW Berlin, *forecast
In foreign trade, prices are rising significantly. Imports became more expensive in the first quarter. This was due to further increases in commodity prices and a noticeable rise in the prices of imported intermediate goods, partly as a result of supply shortages. At the same time, export prices also rose noticeably, so that the terms of trade hardly deteriorated. The drastic rise in freight rates for maritime transport also contributed to the increase.12
The risks lie in an unfavourable development of the pandemic. Such a scenario would threaten the economy with new setbacks. The strong upswing in the current year is the reaction to the fact that the measures taken to protect against infection are gradually being withdrawn. The main reason for this is the continuously increasing vaccination programme. By autumn at the latest, it should have progressed to such an extent that from then on infection control will no longer require any interventions that could significantly affect economic activity. However, should complications arise - such as new virus variants that are not protected against by the currently available vaccines infection protection measures would be tightened again. This would lead to another economic setback. Contact-intensive sectors of the economy would be affected the most. The sentiment, which is currently brightened by the foreseeable end of the pandemic situation, would then also change for the worse.13
In the past financial year, Germany was the core market for the business activities of M1 Kliniken AG and HAEMATO AG. The health care sector continues to be one of the most important markets of the future, which will further be shaped by global trends. These include, among other factors, demographic developments (increasing life expectancy), rising demand for health products and health services, etc. In addition to rising income and medical advances, the ageing of society is a major reason for the increase in health expenditure. This boosts the health industry's contribution to the gross domestic product.
Health care management is made up of many areas. The core area, also called the first health care market, includes the area of "classic" health care. It is largely financed by statutory health insurance (SHI) and private health insurance (PHI), including long-term care insurance. The second health care market refers to all privately financed health-related products and services; it essentially includes non-prescription medicines and individual health care services (incl. outpatient and inpatient medical interventions. Fitness and wellness, health tourism and - in part - the areas of sport/leisure, nutrition and housing are also included.14
As one of the largest German economic sectors, the health industry is a leading market of the German economy. With the help of its services and products, people live longer and healthier, as well as more self-determined lives. As the Federal Statistical Office (Destatis) announced in April 2021, health expenditure in Germany rose by EUR 19.3 bn or 4.9% in 2019 - more recent data were not yet available when this report was prepared. Compared to 2018, this was the first time it exceeded the EUR 400 bn mark. This follows the EUR 300 bn mark first passed in 2012 and the EUR 200 bn mark in 1998. The interval before the next 100 billion mark is reached has thus been halved since 1998 from 14 to 7 years. The share of health expenditure in gross domestic product was 11.9% in 2019. This was 0.2 percentage points higher than in 2018. In 2019, EUR 410.8 bn was spent on health care in Germany. This corresponded to EUR 4,944 per citizen.15
The pharmaceutical industry is of great importance for growth, employment and innovation effects in Germany. The development of the German pharmaceutical market (pharmacies and clinics) was also influenced by the COVID-19 pandemic in 2021. This caused a high degree of volatility, particularly in monthly comparisons. In the first half of 2021, sales of medicinal drugs in the pharmaceutical market rose by 5.7% to EUR 25.6 bn.16
Likewise, the market for medical aesthetic treatments (as part of the second health care market), in which our investment M1 Kliniken AG is active, continues to be a growing market, especially due to the increased social desire to maintain the natural appearance and performance of the body into old age. According to the International Society for Aesthetic Plastic Surgery (ISAPS) figures on aesthetic/ cosmetic procedures in 2019, there was a 7.4% increase in treatments completed in 2019. This is higher than the previous year (2018: 5.6%). Both surgical and non-surgical procedures increased in 2019 (7.1% and 7.6% respectively). Despite a 3.6% decrease in the number of procedures last year, breast augmentation remains the most common cosmetic surgical procedure, accounting for 15.8% of all procedures. The five most popular surgical procedures remain: Breast augmentation, liposuction, eyelid surgery, tummy tuck and rhinoplasty. The two most important non-surgical procedures remained aesthetic treatments with botulinum toxin and hyaluronic acid.17
During the Corona crisis, beauty treatments have become very trendy. Attitudes towards beauty treatments are changing. With masks being worn, the focus is now more on the eyes, which increases the desire for a firmer eye area. Likewise, the mouth is initially easy to hide after a treatment with fillers. Through self-observation during video conferences, people become more preoccupied with their appearance. This reinforces the desire for self-improvement. So in times of contact restrictions and home office, interventions with downtime were hardly noticeable. Even bruises, swelling, redness, which are common after minimally invasive treatments, can be easily concealed with less effort than usual.18
The core market of CR Capital AG's business activities in the past financial year was the German real estate market. Similar to the overall economic recovery trend, the German real estate market is also showing an upward trend. However, statistics show a transaction volume of EUR 34.1 bn at the end of the half-year, which corresponds to a decline of around 20% compared to 2020. Thus, the transaction volume in 2021 as a whole is expected to be below the results of the years 2018 to 2020.19
For the period between 2021 and 2025, the Institute of the German Economy assumes an annual demand of 260,200 flats due to a declining demographic development. This results in a total number of 1.98 million housing units needed in Germany by 2025. However, following the trend of the past seven years, only 1.76 million flats will be completed by 2025. Consequently, a decline in real estate prices in Germany is unlikely. The construction boom in the private real estate sector remains unbroken.20
As an investment company, the strategic focus of our activities is on companies in high-growth sectors of the health care market. This includes both insurance-financed and privately financed sectors.
In accordance with IFRS 10.27, MPH Health Care AG is an investment company that does not have to consolidate its subsidiaries (investments). All investments were measured at fair value through profit or loss in accordance with IFRS 9.
In the first half of 2021 no investment earnings were generated. Due to the continuing uncertain situation with regard to the development of the Corona pandemic and the associated risks, M1 Kliniken AG decided at its Annual General Meeting on July 14, 2021 not to pay a dividend and to carry forward the balance sheet profit for the 2020 financial year in full. CR Capital AG, whose business segment is hardly affected by the current situation, is expected to distribute part of its profits as it did last year. The annual general meeting of CR Capital AG will take place on August 19, 2021.
Generally, an investment entity does not consolidate its subsidiaries or applies IFRS 3 when it obtains control of another entity. According to IFRS 9, an investment entity must instead measure the shares in a subsidiary at fair value through profit or loss.
As of June 30, 2021, net income amounts to kEUR 23,457 (previous year's result: kEUR -32,656). This essentially includes the results from the valuation of the investments as well as the income from the acquisition and disposal of participations. Particularly in the first quarter of 2021, there was a noticeable recovery on the stock markets and thus also in the valuation of the listed investments.
The financial situation can be described as very stable. MPH's financial management is geared towards always settling liabilities within the payment period and collecting receivables within the payment terms.
Our capital structure is good. Equity rose from kEUR 201,263 as of December 31, 2020 to kEUR 224,720 as of June 30, 2021. Compared to the previous year, the equity ratio increased to 97.2% (previous year: 95.5%).
Cash and cash equivalents amount to kEUR 902 (previous year: kEUR 369). Other short-term assets amount to kEUR 1,930 (previous year: kEUR 305).
Other short-term financial liabilities decreased from kEUR 4,609 to kEUR 1,402 compared to December 31, 2020. This is mainly due to the repayment of short-term liabilities to banks.
Long-term financial liabilities represent 1.3% of the balance sheet total. MPH utilises the credit lines granted by various banks to promote business success. The credit lines granted to our participations are higher than the average credit lines used.
Trade account payables can always be settled within the payment targets.
Long-term investments are 98.6% covered by our equity.
The liquidity situation is satisfactory.
MPH invested kEUR 1,161 in the acquisition of investments in the first half of 2021. CR Capital AG has offered its dividend declared in 2020 partly as a stock dividend. MPH accepted this offer. These shares were then transferred to our company in January 2021. The proceeds from the sale of investments for this period amount to kEUR 3,994. There were no significant investments in tangible assets and there are no plans to do so in the short term.
The financial development of the MPH Investment Company in the reporting period is as follows, based on the cash flow statement with indirect calculation of cash flows from operating activities:
| Cashflows from: | 01.01. - 30.06.2021 kEUR |
01.01. - 30.06.2020 kEUR |
|---|---|---|
| Operating activities | -616 | -2,171 |
| Investment | 4,464 | 7,676 |
| Financing activity | -107 | -7,255 |
| Total cash flow | 3,740 | -1,751 |
| Liabilities due at any time ( ) |
-3,207 | 354 |
The net asset position of MPH is good. It is characterised by increased financial assets (other longterm assets), which have increased from kEUR 206,346 as of December 31, 2020 to kEUR 227,954 as of June 30, 2021. Other short-term financial assets decreased slightly from kEUR 3,865 as of December 31, 2020 to kEUR 2,296 as of June 30, 2021. Cash and cash equivalents have increased from kEUR 369 in the previous year (December 31, 2020) to kEUR 902 as of June 30, 2021. Overall, our economic situation is good.
We evaluate the medium-term development of MPH Health Care AG as positive.
Market segments involving our portfolio companies continue to offer great potential for growth. The demand for off-patent and patent-protected drugs and the production of medications for therapies for cancer, HIV and other chronic diseases is continuously increasing due to the rising age structure of the population.
MPH benefits from this indirectly through M1 Kliniken AG's majority shareholding in HAEMATO AG. Beauty lifestyle services for private payers continue to be in demand and are becoming more and more popular.
Demand for affordable housing has exceeded supply for years. Subsidy measures, such as KfW and housing funding, will further strengthen this trend.
Despite the continuing uncertainty of the Corona pandemic, we expect our investments' sales and business development to increase in the 2021 financial year. At the moment, however, we are not yet able to predict the development of the valuation of the companies on the capital market. It is not possible to adequately assess the risks in all areas associated with the COVID-19 virus. We assume that the valuations still have a considerable catch-up potential. This will also be reflected in the share prices of our investments in the medium term.
We will always be in a position to meet our payment obligations on time in the future.
| IFRS Balance sheet - Assets 26 | |
|---|---|
| IFRS Balance sheet - Liabilities 27 | |
| IFRS Profit and loss statement 28 | |
| IFRS Cash flow statement 29 | |
| IFRS Statement of changes in equity 30 |
| e30.06.2021 | e31.12.2020 | |
|---|---|---|
| EUR | EUR | |
| Liquid funds | 901,841 | 368,658 |
| Inventories | 1,710 | 0 |
| Other short-term financial assets | 2,296,080 | 3,864,893 |
| Other short-term assets | 66,867 | 46,181 |
| Income tax receivables | 0 | 38,439 |
| Short-term assets | 3,266,497 | 4,318,172 |
| Intangible assets | 4 | 4 |
|---|---|---|
| Fixed assets | 37,682 | 43,807 |
| Financial assets | 227,954,324 | 206,346,157 |
| Long-term assets | 227,992,011 | 206,389,968 |
| �TOTAL ASSETS | 231,258,508 | 210,708,140 |
|---|---|---|
| e30.06.2021 | e31.12.2020 | |
|---|---|---|
| EUR | EUR | |
| Accruals | 53,543 | 73,543 |
| Liabilities from deliveries and services | 28,355 | 36,351 |
| Short-term leasing liabilities | 4,012 | 3,955 |
| Other short-term financial liabilities | 1,401,893 | 4,608,722 |
| Other short-term liabilities | 18,539 | 18,959 |
| Short-term liabilities | 1,506,342 | 4,741,530 |
| Liabilities to banks | 3,000,000 | 3,000,000 |
| Deferred tax liabilities | 2,030,614 | 1,700,425 |
| Long-term leasing liabilities | 1,363 | 3,384 |
| Long-term liabilities | 5,031,977 | 4,703,809 |
| Subscribed capital | 4,281,384 | 4,281,384 |
| Capital reserve | 41,220,633 | 41,220,633 |
| Retained earnings | 179,218,171 | 155,760,784 |
| Equity | 224,720,188 | 201,262,801 |
| �TOTAL LIABILITIES | 231,258,508 | 210,708,140 |
| e01.01.- 30.06.2021 EUR |
e01.01.- 30.06.2020 EUR |
|
|---|---|---|
| Operating income | 24,458,407 | 5,826,291 |
| Fair value profit from valuation of financial investments | 23,824,148 | 4,298,932 |
| Net profit from the sale of investments | 617,485 | 0 |
| Income from investments | 0 | 1,500,000 |
| Other operating income | 16,774 | 27,359 |
| Operating expenses | -597,515 | -38,733,128 |
| Fair value loss on valuation of financial investments | 0 | -36,933,960 |
| Financial expenses | -199,989 | -157,361 |
| Net loss on disposal of investments | 0 | -1,234,771 |
| Administrative expenses | -397,526 | -407,035 |
| Profit from ordinary activities EBITDA | 23,860,891 | -32,906,837 |
| Depreciation and amortisation | -7,866 | -8,798 |
| Operating result EBIT | 23,853,026 | -32,915,635 |
| Financial result | -65,450 | -265,388 |
| Other interest and similar income | 40,000 | 35,334 |
| Interest and similar expenses | -105,451 | -300,722 |
| Earnings before taxes EBT | 23,787,575 | -33,181,023 |
| Taxes on income and earnings | -330,188 | 525,517 |
| Result for the period | 23,457,387 | -32,655,506 |
| Earnings per share | 5.48 | -7.63 * |
| e01.01.- 30.06.2021 |
e01.01.- 30.06.2020 |
|
|---|---|---|
| EUR | EUR | |
| Result for the period/ net profit | 23,457,387 | -32,655,506 |
| Depreciation | 7,866 | 8,798 |
| Change in short-term accruals | -20,000 | -44,021 |
| Increase / decrease due to fair value measurement | -23,824,148 | 32,635,028 |
| Change in inventories | -1,710 | -1,912 |
| Change in trade account receivables and other assets | 1,548,128 | -1,642,577 |
| Change in trade account payables and other liabilities | -8,367 | 13,546 |
| Profit / loss on disposal of fixed assets | -617,485 | 1,234,771 |
| Interest expenses / income | 85,450 | 265,388 |
| Other investment income | -1,612,010 | -1,500,000 |
| Income tax expense / income | 330,188 | -525,517 |
| Income tax payments | 38,440 | 40,865 |
| Cash flow from operating activities | -616,260 | -2,171,136 |
| Payments for investments in tangible fixed assets | -1,741 | -4,378 |
| Proceeds from disposals of financial assets | 3,994,169 | 6,144,875 |
| Payments made for investments in financial assets | -1,160,703 | 0 |
| Interest received | 20,000 | 35,334 |
| Income from investments | 1,612,010 | 1,500,000 |
| Cash flow from investment activities | 4,463,735 | 7,675,831 |
| Interest paid | -105,362 | -253,347 |
| Change in liabilities to banks | 0 | -7,000,000 |
| Repayment of rights of use | -2,052 | -2,052 |
| Cash flow from financing activities | -107,414 | -7,255,399 |
| Net cash flow | 3,740,060 | -1,750,705 |
| Liquid funds at the beginning of the period | -4,228,431 | -2,695,391 |
| Liquid funds at the end of the period | -488,371 | -4,446,096 |
| Change in liquid funds | 3,740,060 | -1,750,705 |
| Liabilities due at any time at the beginning of the period | 4,597,089 | 4,491,837 |
| Liabilities due at any time at the end of the period | 1,390,212 | 4,845,482 |
| Change in liabilities due at any time | -3,206,878 | 353,645 |
| Cash and cash equivalents at the beginning of the period | 368,658 | 1,796,445 |
| Cash and cash equivalents at the end of the period | 901,841 | 399,386 |
| Change in cash and cash equivalents | 533,183 | -1,397,060 |
| EUR Subscribed capital |
Capital reserve EUR |
Retained earnings EUR |
Equity EUR |
|
|---|---|---|---|---|
| January 1, 2020 | 42,813,842 | 2,688,175 | 226,139,266 | 271,641,283 |
| Net profit for the year | 0 | 0 | -70,378,482 | -70,378,482 |
| Capital reduction | -38,532,458 | 2 | 0 | 0 |
| Transfer to reserves | 0 | 38,532,456 | 0 | 0 |
| Distributions | 0 | 0 | 0 | 0 |
| December 31, 2020 | 4,281,384 | 41,220,633 | 155,760,784 | 201,262,801 |
| January 1, 2021 | 4,281,384 | 41,220,633 | 155,760,784 | 201,262,801 |
| Profit for the period (H1/2021) | 0 | 0 | 23,457,387 | 23,457,387 |
| June 30, 2021 | 4,281,384 | 41,220,633 | 179,218,171 | 224,720,188 |
| 1. General information 32 | |
|---|---|
| 2. Scope of consolidation 32 | |
| 3. Selected information on the consolidated balance sheet and consolidated income statement 32 |
|
| 4. Dividends 33 | |
| 5. Contingent liabilities and other financial commitments 33 | |
| 6. Significant events after 30.06.2021 34 |
MPH Health Care AG was founded in the 2008. The company is registered in the Commercial Register of the Berlin-Charlottenburg District Court under HRB 116425 and has its registered office at Grünauer Straße 5, 12557 Berlin. MPH Health Care AG is an investment company within the scope of IFRS 10.27. Its business activity consists of investing in companies with the objective of capital growth.
The consolidated interim financial statements for the period from January 1 to June 30, 2021 of MPH Health Care AG were prepared voluntarily in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in compliance with IAS 34 "Interim Financial Reporting" as applicable in the European Union. The figures are unaudited.
With regard to the accounting, valuation and consolidation methods applied as well as the execution of the optional rights contained in the IFRS, we refer to the notes to the consolidated financial statements as of December 31, 2020.
There were no changes in the reporting period. In accordance with the regulations of IFRS 10.31, the subsidiaries are not consolidated, but measured at fair value through profit or loss in accordance with IFRS 9. We refer to our presentation in the consolidated financial statements as of December 31, 2020.
Cash and cash equivalents totalled kEUR 902 (31.12.2020: kEUR 369). They mainly comprise bank balances and are recognised at their nominal values.
Other short-term financial assets, which amount to kEUR 2,296 (December 31, 2020: kEUR 3,865), are mainly short-term receivables from affiliated companies.
Other long-term financial assets, which amount to kEUR 227,954 (December 31, 2020: kEUR 206,346), include equity instruments in listed companies and other investments. These financial assets are recognised at fair value both at the time of initial recognition and at subsequent measurement.
Other short-term financial liabilities include in particular short-term liabilities to banks. As of June 30, 2021, they amount to kEUR 1,402 ( December 31, 2020: kEUR 4,609).
The operating income mainly includes the profits of the financial assets valued at fair value through profit or loss on the reporting date as well as income from investments.
The fair value expenses for financial assets include the losses of the shares in financial assets valued at fair value through profit or loss as of the reporting date.
The net profit from investments represents the realised profit from the disposal of shares in financial assets. The profit is calculated on the basis of the difference between the financial assets valued at fair value on the previous balance sheet date and the proceeds from the sale of these shares.
The net loss from the sale of investments represents the loss realised from the disposal of shares in financial assets. The loss is calculated on the basis of the difference between the financial assets measured at fair value at the previous reporting date and the proceeds from the sale of these shares.
Sales provisions are recognised in financial expenses. Shares of the investments held by MPH in financial assets are purchased or disposed of on a situational basis. Expenses are recognised for the settlement with the service providers.
Administrative expenses, which totalled kEUR 398 (June 30, 2020: kEUR 407), include a large number of individual items such as advertising and travel expenses, legal and consulting costs, personnel expenses, external services, Supervisory Board fees, etc.
The financial result primarily reflects income and expenses from interest.
No dividends were distributed by MPH Health Care AG for the 2020 financial year up to the reporting date of 30 June 2021.
MPH Health Care AG is liable to HYPO NOE Gruppe Bank AG as a joint borrower with HAEMATO AG in connection with further promissory note loans of EUR 3.0 m. This loan was fully utilised by MPH Health Care AG as of the reporting date (long-term liabilities to banks).
We estimate the utilisation from contingent liabilities to be low due to the current creditworthiness and past payment practices of the beneficiaries. We have no recognisable indications that would require a different assessment.
Other financial obligations are within the scope of normal business transactions.
In accordance with the decision on the utilisation of the balance sheet profit 2020 made at the Annual General Meeting on July 13, 2021, no dividend was distributed for the 2020 financial year and the balance sheet profit was carried forward in full to new account.
In accordance with the decision regarding the appointment of the members of the Supervisory Board, Mr Uwe Zimdars was elected as a new member of the Supervisory Board with 93.86 % of the votes. The previous members Ms Andrea Grosse (Chairwoman) and Prof. Dr. Dr. Sabine Meck were re-elected with 93.89 % and 93.84 % of the votes respectively.
There were no other significant events after June 30, 2021.
Berlin, August 2021
Patrick Brenske (Management Board)
| 1. | Information about members 36 | |
|---|---|---|
| 2. | Glossary 37 | |
| 3. | Sources 38 | |
| 4. | Imprint 39 |
| Family name | First name | Profession | Power of representation |
|---|---|---|---|
| Brenske | Patrick | Merchant (Master of Banking & Finance) |
Sole power of representation |
| Family name | First name | Function | Profession |
|---|---|---|---|
| Grosse | Andrea | Chairwoman | Lawyer |
| Zimdars | Uwe | Deputy Chairman | Business consultant |
| Prof. Dr. Dr. Meck |
Sabine | Member | University lecturer and science journalist |
An economic measure that says something about a company's liquidity. Represents the inflow of liquid funds during a period.
Consolidation means the compilation of the net assets, financial position and results of operations of individual companies belonging to a group into consolidated financial statements.
The DAX is the most important German stock index. The 30 largest and highest-volume German shares are listed in this stock exchange directory.
The profit per share of a stock corporation that is distributed to the shareholders.
Earnings per share are calculated by dividing consolidated net income by the weighted average number of shares. This is calculated in accordance with IAS 33.
earnings before interest and taxes. Says something about a company's operating profit over a certain period of time.
Earnings before interest, taxes, depreciation and amortization: Earnings before interest and taxes are added to earnings before interest and taxes.
A method of accounting for certain long-term investments in the financial statements of a company that holds an interest in the voting capital of another company.
The nominal value or par value of a share is the value at which the share participates in the share capital. In the case of fixed-interest securities, the nominal value indicates the amount of debt to be interest-bearing.
Fair value is the amount for which knowledgeable and willing parties would be willing to exchange an asset or settle a liability under normal market conditions.
All fiscal policy measures taken by the state to steer economic development through public revenue and expenditure.
The Institute for the World Economy at the University of Kiel (IfW) in Kiel is a centre of global economic research. It is one of the six leading German economic research institutes.
The International Monetary Fund and the Organisation for Economic Cooperation and Development are international organisations committed to lending and monitoring monetary policy (IMF) and democracy and the market economy (OECD).
"Kreditanstalt für Wiederaufbau" (funding bank)
An official approval required to offer, distribute or supply an industrially manufactured, ready-to-use drug.
The net asset value is the value of all tangible and intangible assets of an enterprise less liabilities. This intrinsic value is intended to reflect the fundamental value of the company, but makes no statements about hidden reserves or future prospects of the company.
Balance of net income for the financial year, profit or loss carried forward and appropriation of earnings.
Science dealing with diseases of the nervous system / cancer and their medical treatment.
Patent free active ingredients are also called generics. A generic is a drug that is a copy of a drug already on the market under brand names with the same active ingredient. Generics are therapeutically equivalent to the original preparation.
Branded drugs, which are marketed by the patent holder on the one hand and which are purchased more cost-effectively within the EU member states as EU imported drugs based on the legal basis of import.
A rating is a systematic, qualitative assessment of economic entities or financial instruments with regard to their creditworthiness.
MPH Health Care AG Grünauer Straße 5 D-12557 Berlin
Tel: +49 (0) 30 863 21 45 – 60 Fax: +49 (0) 30 863 21 45 – 69
E-Mail: [email protected] Web: www.mph-ag.de
Patrick Brenske
Chairwoman: Andrea Grosse
Deputy chairman: Uwe Zimdars
Member: Prof. Dr. Dr. Sabine Meck
Registry court: Amtsgericht Charlottenburg Registry number: HRB 116425 B
Concept, design and realisation: MPH Health Care AG Investor Relations
Photos: MPH Health Care AG Getty Images Fotolia Adobe Stock
MPH Health Care AG Grünauer Str. 5 D-12557 Berlin
Tel: +49 (0) 30 863 21 45 – 60 Fax: +49 (0) 30 863 21 45 – 69
E-Mail: [email protected] Web: www.mph-ag.de
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.