MEDICLIN AG — Earnings Release 2004

Feb 23, 2005

News Details

Ad-hoc | 23 February 2005 18:14

DGAP-Ad hoc:MediClin AG reports preliminary figures for financial year 2004

Ad hoc announcement §15 WpHG Preliminary figures financial year 2004 MediClin AG reports preliminary figures for financial year 2004 Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ – Group result minus Euro 13.6 million after being minus Euro 16.8 million in the previous year – Operating result improved by Euro 1.8 million – Three year rent reduction negotiated – Balanced group result aimed at for 2005 Frankfurt am Main, 23 February, 2005 – MediClin AG, one of the large private clinic operators, earned sales revenues including inventory changes to the amount of Euro 357.9 million in financial year 2004, a 0.6 percent decline in comparison with the previous year. At Euro 92.1 million, sales were strong in the fourth quarter. The preliminary operating result is minus Euro 7.8 million after being minus Euro 9.6 million in the previous year. Cost of materials was down by Euro 2.3 million and personnel costs were approximately Euro 4.1 million down from the previous year. Depreciation and amortization are higher than in the previous year. Depreciation includes exceptional depreciation of approximately Euro 0.8 million from the amortization of goodwill and depreciation of Euro 0.7 million concerning the new Nursing Care segment. Other operating expenses fell slightly in a year-on-year comparison. Other operating expenses include one- off costs to the amount Euro 2.1 million relating to the build-up of the Nursing Care segment, about Euro 1 million for severance payments and the closing of the Frankfurt office. In 2004, the preliminary group result improved by 19.0 percent from minus Euro 16.8 million in the previous year to minus Euro 13.6 million in 2004. Earnings per share are minus Euro 0.43 (PY: minus Euro 0.53). Easing in 2005 due to rent reduction of Euro 11.4 million When taking over the Hurrle-Clinic-Group, the real estate of 21 clinics was transferred to a real estate investment trust in 1999. The annual rental obligations amount to approximately Euro 36,3 million. MediClin has now negotiated with the fund shareholders on a rent reduction of Euro 21 million for three years. Irrespective of the payment flow the total amount will be income statement-related within the period under consideration (2005 – 2007) in the amount of approximately Euro 7 Million per year. As from financial year 2008, a conditional repayment will come into effect which is dependent on the achievement of profitability parameters generated by the fund clinics. The potential maximum retransfer amount is limited to the rent reduction volume. The rental contracts were extended for three years. The Board aims at a balanced Group result for 2005 The Board assumes that the income situation will improve perceptible in financial year 2005 as a consequence of the defined foreseeable cost reduction potential and the measures taken at the clinics to increase profitability and efficiency. The final annual financial statements for 2004 will be published on 23 March 2005. As from that date, the Annual Report 2004 will be available at http://www.mediclin.de and in a printed version. MediClin AG Wilhelm-Leuschner-Straße 9-11 60329 Frankfurt am Main Deutschland ISIN: DE0006595101 WKN: 659510 Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg und Stuttgart End of ad hoc announcement (c)DGAP 23.02.2005 231814 Feb 05