MEDICLIN AG — Board/Management Information 2004

Sep 10, 2004

News Details

Ad-hoc | 10 September 2004 08:51

MediClin AG: Continuation of Compac04 with organisational and personnel..

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Continuation of Compac04 with organisational and personnel changes decided ·Dr. Ulrich Wandschneider shall become the new Chairman of the Management Board ·Supervisory Board approves reorientation at loss-prone clinics – temporary relief from rental obligations being negotiated ·Implemented structures gain impetus: clear improvement in current earnings despite retrograde revenues Frankfurt am Main, September 10th, 2004 – The Supervisory Board of MediClin AG passed decisions about organisational, structural and personnel changes at its yesterday meeting. The key elements of this reorientation are a restructuring package aimed at a sustained turnaround at clinics with weak results, and additional new business activities. Business restructuring at clinics with weak results together with temporary relief from rental obligations In an overall difficult economic environment resulting in demand restraint, the restructuring measures implemented to date have not brought about the desired fast and sustained success at 9 out of 22 rehabilitation facilities. Despite partial progress, a turnaround can only be ensured based on long term oriented postponement of key business issues. A core element of further restructuring at clinics with weak results is focused orientation towards the regional medical health care network. This involves agreements to be concluded with regional service partners such as physicians, hospitals and out-patient therapeutic services on the one hand and with health insurance funds on the other in order to ensure integrated medical services for patients on the basis of co-ordinated treatment channels. Within the scope of such integrated health care models, the Management Board sees good opportunities for increasing occupancy and, thereby, expanding revenues in the coming years. In financial year 2004, 12 models have already been contractually agreed with health insurance funds. In addition, expansion of the new nursing care segment is being intensified and extended by selected locations. The facilities that have been in operation since April 2004 have achieved occupancy rates of about 40 % within a short start-up period. During this year, the Group plans to expand its nursing care capacities by 117 beds; an investment package amounting to Euro 1.8 million was approved for this purpose. In keeping with the positive start, nursing care’s contribution to revenues is expected to total Euro 8 million in 2005. The third element for stabilising and increasing demand is systematic expansion of the programmes MediClin developed for private patients, the so-called Plus-Programmes. Independent of the financing of rehabilitation measures by health insurance and pension insurance funds, the Board sees good medium to long-term opportunities to increase privately financed demand for medical services in rehabilitation and in medical preventive care. In the coming year, the Plus-Programmes are expected to contribute about Euro 2 million to revenues. In order to support business restructuring and re-orientation at the clinics with weak results, as accompanying measures during the process a substantial rental adjustment is being negotiated. In principle, the lessor has already agreed on this objective. The implementation is to be conducted within the next few months. Change to the Board The Chairman of the Management Board, Mr. Rainer J. Räsch, views the beginning of a further phase of the Compact04 measures and the initiation of the approved business restructuring as a good point in time to hand over office to an appropriate successor. He will be released from his duties as at October 31st, 2004. Mr. Räsch, who is a co-founder of MediClin, was active on the Management Board for eight years and was engaged in the Company’s successful stock market flotation. Mr. Räsch will remain actively associated with MediClin in the future. As successor of Mr. Räsch the Supervisory Board has argued for Dr. Ulrich Wandschneider (43). Dr. Wandschneider has earned a doctorate in economics and works as consultant since 17 years for well-known consulting companies, advising operational big organisations in the health care sector. Based on the new structure of the Management Board and its related reduction to two members, the Supervisory Board agreed to the wish of Mr. Gerhard Becker, Operational Member of the Board, to leave the Board. Despite retrograde revenues in the rehabilitation segment, a perceptible improvement in results The 2004 Interim Report already showed the positive development of the Group’s results. With retrograde six-month revenues to the amount of Euro 175 million ( PY: Euro 180 m.) the operative result rose by Euro 1.2 million in comparison to the same period in the previous year. Against the background of the current occupancy situation, the third quarter of 2004 will see a markedly positive operating result. The Management Board estimates that the traditionally weaker fourth quarter will be up operational on the same previous year’s quarter. However, the second six months’ results are not sufficient to compensate for the first half-year’s losses so that, overall, the Board of Management expects a loss for financial year 2004. Taking the approved measures into account, the Board expects a positive operating result and positive net income for the coming financial year. end of ad-hoc-announcement (c)DGAP 10.09.2004 ——————————————————————————– WKN: 659510; ISIN: DE0006595101; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg und Stuttgart 100851 Sep 04