MEDICLIN AG — Earnings Release 2008

Mar 25, 2009

News Details

Corporate | 25 March 2009 12:19

Management Board of Mediclin presents Annual Report 2008

MediClin AG / Final Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Frankfurt am Main, 25 March 2009 - The Management Board of MEDICLIN
Aktiengesellschaft (MediClin) said at this year's balance sheet press
conference. that he is satisfied with the results of the year 2008.
'Despite the financial crisis and its initial impact on the German economy,
our business activity remained stable. It certainly helped that the health
care sector is less cyclical in nature than other industries', said Dr.
Ulrich Wandschneider, CEO of MediClin.

In 2008 external and internal growth − proposal of a dividend
payment.
In the 2008 financial year, MediClin recorded sales of EUR 456.8 mill. This
is an increase of EUR 64.8 mill. compared to the previous year, whereby EUR
51.7 mill. is attributable to the Kraichgau-Klinik Group. An operating
result of EUR 15.8 mill. was achieved while this is EUR 3.1 mill. less than
in the previous year, it contains approximately EUR 8 mill. higher rental
expenses for real estate. The result attributable to shareholders totals
EUR 7.1 mill.
Based on the satisfactory development in 2008 and the over all ordinary
outlooks for MediClin the Management Board and the Supervisory Board will
propose a dividend of EUR 0.05 per share for the 2008 financial year at the
Annual General Meeting on 27 May 2009.

Success factors in 2008
The Kraichgau-Klinik Group was completely integrated into the Group. This
includes the Herzzentrum in Lahr as well as the post-acute clinics, whose
offerings were optimised according to our regional concept.
MediClin has introduced the online reservation system of the Deutsche
Rentenversicherung (German Pension Fund) almost nationwide and thus
simplifies the registration process for both sides and speeds up the
admission of patients.
The results of the medical services were made measurable through the
support of electronic techniques and thus more transparent. The
self-control of medical and therapeutic services and performance
measurement are absolute requirements for the continuous delivery of
high-quality medical care in the facilities.
The service companies have almost reached their goals like increased
efficiency, the standardisation of offerings and cost reductions to the
extent targeted.

Number of nursing days and number of cases increased further
The number of nursing days increased in 2008 Group-wide by 8.4% to
2,459,236 nursing days (2007: 2,268,797 nursing days), thereof 5.7% is
attributable to the Kraichgau-Klinik Group. The number of cases rose by
10.7% up to 120.698 cases (2007: 108.994 cases) without the
Kraichgau-Klinik Group it would have raised by 2.9%. In the nursing care
segment no case numbers are defined.

Very good occupancy rate in the segments but results were influenced by
higher costs
The occupancy rate in the post-acute segment was 87.0% (2007: 84.8%). The
result was influenced by about EUR 8.0 mill. of higher rent for real estate
but still a slightly positive result of EUR 0.2 mill. (2007: EUR 3.2 mill.)
could be achieved. The occupancy rate in the acute segment was 81.5% (2007:
80.0%). In 2008 the segment result was burdened by EUR 0.5 mill. mainly due
to nonrecurring personnel expenses, whereby the result was EUR 0.5 mill.
below the previous year's figure despite significantly increased sales
(2008: EUR 15.6 mill.; 2007: EUR 16,1 mill.). The nursing care segment
shows a break-even result, thus EUR 0.4 mill. above the previous year's
value (2007: -0.4 Mio. Euro) and an occupancy rate of 90.5% (2007: 88.5%).

Cash flow und cash and cash equivalents are clearly above previous years'
figures
In all expense items one part of the increase is due to acquisition. In
2008 material expenses increased to EUR 105.6 to mill. (2007: EUR 84.4
mill.). The material expense ratio was 23.1% (2007: 21.5%). Personnel
expenses increased to EUR 249.3 mill. (2007: EUR 217.6 mill.); the staff
expense ratio decreased to 54.6% (2007: 55.5%) due to increased sales.
In 2008, on average, the number of staff accounted in full-time employees
was 5,816 (2007: 5,277 full-time employees). Other operating expenses were
up to EUR 83.4 mill. (2007: EUR 68.6 mill.) mainly in consequence of higher
rent and acquisition. The cash flow from operating activities was EUR 21.5
mill (2006: EUR 11.3 mill), cash and cash equivalents at end of period
increased to EUR 57.4 mill. (2007: EUR 21.4 mill.), predominantly as a
result of the capital increase.
In 2008 investments (gross additions to property, plant and equipment)
amounted to EUR 18.0 mill. (2007: EUR 27,6 mill.). They apply to the new
construction of the MediClin Müritz-Klinikums in Waren as well as
renovation, maintenance and reconstruction measures in other facilities,
medical devices and equipment and IT and telecommunication equipment.

No precise forecast possible for 2009
It is currently impossible to predict reliably to what extent the economic
slump and the worsening of the labour market situation will impact the
German health care sector and its care facilities. At the present, it is
also impossible to estimate to what extent a decline in employment levels
will impact the budgets of coverage providers and their tendering
practices. However, it is clear that the financial situation of public
authorities will significantly worsen, which will again accelerate the
privatisation process in the hospital sector.
For the 2009 financial year, Management Board anticipates sales on the
previous year's level. A decrease in the third and fourth quarter of 2009
is not to be excluded in case of a continuing economic slowdown. It is
intended to achieve a result comparable with the previous year, mainly
through efficiency gains and stringent cost management. Related to external
growth acquisition efforts in the acute sector are the main focus.

The annual report 2008 is available under www.mediclin.de in German und
Englisch.

About MediClin AG (Ticker: MED; WKN: 659 510)
MediClin AG is a nation-wide clinic operator and large provider of services
in the area of Psycho- and Neurosciences as well as Orthopaedic. With 33
clinics and 8 nursing care facilities and 3 Medizinische Versorgungszentren
(medical care units) in 11 federal states MediClin at the year end of 2008
it has a total capacity of approximately 7,900 beds. MediClin's facilities
include acute care clinics, i.e., general hospitals, special treatment
facilities, specialised hospitals and clinics for post-acute treatment and
medical rehabilitation. MediClin has approximately 7,800 employees.

Important notice:
This press release includes future-oriented statements which are based on
assumptions and estimates. While MediClin AG is of the opinion that these
assumptions and estimates are correct, the actual future developments and
actual future results may deviate from these assumptions and estimates due
to the impact of various factors such as changes in the economic conditions
in Germany, legal changes concerning the health system, changes relating to
cost providers' expense behaviour. MediClin does not assume liability and
gives no warranty that future developments and the income actually achieved
in the future will comply with the assumptions and estimates stated in this
press release.
25.03.2009 Financial News transmitted by DGAP

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Language: English
Issuer: MediClin AG
Westhafenplatz 1
60327 Frankfurt
Deutschland
Phone: +49 (0)781 488-189
Fax: +49 (0)781 488-184
E-mail: alexandra.muehr@mediclin.de
Internet: www.mediclin.de
ISIN: DE0006595101
WKN: 659510
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

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