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Earnings Release • Apr 30, 2012

News Details

Ad-hoc | 30 April 2012 07:20

Genolier Swiss Medical Network (GSMN): 2011 Results: Increase in Turnover and Profit – EBITDA and Operating profits strongly increased due to organic growth

Genolier Swiss Medical Network (GSMN) / Key word(s): Final Results/Final Results

30.04.2012 07:20

Release of an ad hoc announcement pursuant to Art. 53 KR

Genolier Swiss Medical Network (GSMN) today published its 2011 Annual
Report. Consolidated turnover increased by 6.43% to CHF 200.8 million (CHF
188.7m). EBITDA increased by 58.6% to CHF 24.03 million (CHF 15.2m) and
profit from operating activities increased six-fold to CHF 8.25 million
(CHF 1.4m). These results reflect a strong improvement in the operational
profit and an increase in turnover due essentially to organic growth. In
spite of non-recurring expenses related to the introduction of Swiss
Diagnosis Related Groups (SwissDRGs), this year GSMN displays a net profit
of CHF 0.54 million versus a loss of CHF 7.1 million in 2010. GSMN is the
only group of private clinics in the three linguistic regions of
Switzerland, and it expects revenues in excess of CHF 300 million in 2012.

GSMN, the national group of private clinics, achieved a turnover of CHF
200.8 million in 2011, an increase of 6.43% compared to 2010. EBITDA
increased by 58.6% to CHF 24.03 million, reflecting an improvement in
profitability following rationalisation efforts. Profit from operating
activities was CHF 8.25 million. The low net result of CHF 0.54 million is
due to non-recurring expenses related to the introduction of Swiss DRGs.
Operating cash flow grew by 53% to CHF 17.9 million. Costs associated with
the management of the network remained stable compared to 2010 at 4.1% of
turnover. However, the integration of three new clinics acquired in 2012
will not necessitate an increase in resources, reducing overhead to less
than 3% in 2012. These clinics were acquired following an increase in
capital in December 2011 that strengthened the equity of the Group.

All entities increased in 2011, within a range of 3.5% to 22%, with the
exception of Bethanien, where business was affected by construction work on
the car park. The smaller entities such as the Centre médico-chirurgical
des Eaux-Vives and Clinique Valmont achieved the highest growth. The Group
still has important expansion capacity for organic growth and is putting
the emphasis on hiring new certified doctors and on preventive medicine.
With the recent acquisitions in early 2012 of the Obach, Ars Medica and
Sant'Anna clinics, GSMN is now the only group of clinics established in the
three linguistic regions of Switzerland. With its partners and the cantonal
healthcare authorities, GSMN has been striving to find sustainable and
well-balanced solutions to keep costs under control while maintaining an
impeccable level of quality.

With these new acquisitions, the Group aims for a turnover in excess of CHF
300 million in 2012. Important medical and economic synergies are expected
and the position of the GSMN clinics will become stronger. As these clinics
mature, the profitability of GSMN will approach that of other actors in the
field by 2014. In the first trimester of 2012 business is in line with the
road map and confirms the positive trend of last year. All the
establishments experienced a considerable boost in activity and have
aligned their billing procedures with the new cantonal systems. The Group
is continuing its growth strategy based on the acquisition of clinics and
the restructuring of their operations. Other acquisitions are being
studied, and discussions with the Hôpital de la Providence in Neuchâtel are
ongoing.

The Group's management team, consisting of Raymond Loretan, Executive
Chairman, Antoine Hubert, Managing Director, Beat Röthlisberger, CEO,
Valérie Dubois-Hequet, General Manager and Guy Reynard, CSO, was reinforced
on January 1, 2012 with the nomination of Romain Boichat as COO. Mr Ayhan
Güzelgün, CFO of GSMN, decided to pursue a new professional opportunity and
has left the group. He will be replaced as of May 1st, 2012 by Mr Gilles
Frachon. Since 1997, Mr Gilles Frachon has been CFO of Maragest SA, a
holding company of Michel Reybier. He was Financial Director of Groupe
Aoste and General Director of Fournier Holding, founder of the Carrefour
supermarkets. GSMN will benefit from Gilles Frachon's industry and
financial experience to carry out its vision.

The 2011 Annual Report is available on the following link:

http://ir.gsmn.ch/genolierswiss/pdf/GSMN_AR_2011.pdf

Genolier Swiss Medical Network SA (GSMN) is the second largest network of
private clinics in Switzerland. Its growth strategy focuses on the creation
of a national network through the acquisition of clinics and the
restructuring of their operations. GSMN's main objective is to offer first
class hospital care to Swiss and foreign patients. The distinctive features
of GSMN include its high quality services, its brand value, a pleasant
working environment and an experienced management team with an
entrepreneurial approach. GSMN operates 10 private establishments in
Switzerland (Clinique de Genolier, Clinique de Montchoisi, Clinique
Valmont, Clinique Générale, Centre médico-chirurgical des Eaux-Vives, Ars
Medica Clinic, Clinica Sant'Anna, Privatklinik Bethanien, Privatklinik
Lindberg and Privatklinik Obach), with around 1'000 admitting physicians
and 2'000 employees. The Group is listed on the Domestic Standard of the
SIX Swiss Exchange (GSMN:SW).

For further information:
Séverine Van der Schueren
Secretary General
Tel. +41 22 366 99 87
svanderschueren@gsmn.ch

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