Rhön-Klinikum AG — Earnings Release 2004

Nov 16, 2004

News Details

Corporate | 16 November 2004 15:00

RHÖN-KLINIKUM AG, Bad Neustadt/Saale – Analyst Conference – 16/11/2004

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– RHÖN-KLINIKUM AG, Bad Neustadt/Saale – Analyst Conference – 16/11/2004 – Analyst conference in Frankfurt/Main – Results for the first nine months of 2003 (already published) explained – Group’s strategy amid instable healthcare policy – Trend result tentative for 2005 Bad Neustadt / Saale, 16 November 2004 —– At Rhön-Klinikum AG’s analyst conference held today in Frankfurt/Main, the Group’s results for the first nine months of 2004 (already published on 9 November 2004) were explained and the parameters underpinning the expected result discussed. For the first nine months of 2004 the Group reports revenues of EUR 774 million (previous year: EUR 710 million / + 9%). Consolidated Q3 revenues reached EUR275.4 million, up 12.8% from the same period in the previous year (EUR244.2 million). In the first nine months of 2004 the Group posted net consolidated profit of EUR 56.5 million (previous year: EUR 55.1 million / + 2.5%). This corresponds to earnings per share of EUR 2.18 (previous year: EUR 2.13). The Management informed of the complete lack of clarity prevailing with regard to the introduction of DRGs, and stated that the current debate on the reform of the health insurance funds had so far failed to come up with any answer as to how the inexorably rising healthcare demands of an ageing population will be covered in future. The strategy developed by the Company puts it in an excellent position to reap the benefits of a working and viable reform, and in the event of insufficient reform measures would enable it to develop and implement new models of healthcare delivery working together with flexible health insurance funds. Today’s performance strengths have to be mobilised for comprehensive and generalised healthcare delivery in future, and the basis for this – also in size terms – is the high but qualified growth targeted by the Company in the coming years. To further improve its position heading into the period “post reform” – or in the period “without reform” – the Group in addition to acquisitions is forging ahead with the following: 1. Development of the electronic files for patients as a means of organising processes in a network 2. Realisation of day-case care structures 3. Establishment of medical care centres at all hospitals 4. Development in fields of cutting-edge medicine 5. Implementation of teleportal clinic concept at all locations Currently, a number of facilities are looking to privatise, and this trend is gathering pace. In 2004 RHÖN-KLINIKUM AG already acquired seven hospitals. Of these, four were already consolidated in the third quarter of 2004, and three – Hildesheim, Gifhorn, Wittingen – will be consolidated as of 1 January 2005. Others can be expected to follow before the year closes. “The future belongs to solutions in which the rationalisation reserves can be offered in such a way that gains in performance, i.e. more patients at a lower price, are achieved while preserving the highest quality standards, and it is only in this way that, little by little, we become more independent from the imponderables of healthcare policy.”, said Eugen Münch, chairman of the Board of Management of RHÖN-KLINIKUM AG. “We have work enough. What we’ve got to do is make that work affordable. If we achieve this, we’ll have every desirable success. We’re sparing no efforts to this end.” Amid political uncertainty, only target values can be determined for 2005. These are for revenues of EUR1.23 billion and a net consolidated profit of EUR 80 million taking into account the hospitals definitively acquired. The tentative character of these figures stems from the fact that negotiations on further hospital takeovers are under way but are being slowed by explanations required by the German Cartel Office, something that presumably can be resolved but will take time. end of message, (c)DGAP 16.11.2004 ——————————————————————————– WKN: 704233; ISIN: DE0007042335; Index: MDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 161500 Nov 04