Asklepios Kliniken GmbH: Sustainable growth in first nine months of 2015

The Asklepios Group continued to grow in the third quarter and over the first nine months of the year. In addition, Asklepios took advantage of the favourable interest rate environment to successfully place a promissory note loan of EUR 580 million.

Sales increased by 2.2% year-on-year to EUR 2,312.3 million in the period from January to September (previous year: EUR 2,263.3 million). The main reason for this was the increase in the number of both inpatients and, in particular, outpatients. The hospitals and medical facilities cared for a total of 1,723,270 patients in the reporting period.

“The growing number of patients proves that our strategy of specialised clinics is the right one. Thanks to the highly specialised expertise of our doctors and employees, we offer the best possible medical care at our facilities, which are being sought out by more and more patients,” said Dr Ulrich Wandschneider, CEO of Asklepios Kliniken GmbH. “Overall we have created a solid foundation from which to successfully tackle the challenges of the Hospital Structure Act.”

Lower rise in cost ratios increases consolidated net income

Operating EBITDA climbed by 12.9% to EUR 265.7 million in the first nine months of 2015 (previous year: EUR 235.4 million). This resulted in an EBITDA margin of 11.5% (previous year: 10.4%) and an increase of 1.1 percentage points. Cost items that increased at a lower rate than revenue had a particularly positive effect.

The cost of materials ratio fell 0.4 percentage points year-on-year to 22.1% (previous year: 22.5%). This was mainly due to the significant decline in energy expenses. The energy model established by Asklepios throughout the Group and the supply of several hospitals with their own combined heat and power units are continuously reducing expenses related to energy. The staff costs ratio declined slightly by 0.6 percentage points to 63.8% of sales.

In total, consolidated interim income climbed by 23.0% to EUR 135.1 million in the first nine months (previous year: EUR 109.8 million). This corresponds to a return on sales of 5.8% (previous year: 4.9%).

The net cash flow totalled EUR 234.7 million in the first nine months. Investments amounted to EUR 138.5 million in the reporting period. The proportion of own funds was 75.2% and thus once again higher than in the previous year (65.0%).

Successful promissory note placement ensures long-term growth financing

In August 2015, Asklepios Kliniken GmbH successfully placed a promissory note loan with a volume of EUR 580 million. Due to the high demand, the issue was many times oversubscribed.

Stephan Leonhard, CFO and Deputy Chairman, emphasises: “The Asklepios Group thereby concluded one of the largest promissory note issues in the healthcare sector. The favourable conditions strengthen our earnings power and secure further financing for the company. With an average term for the promissory note loan of 8 years, we further optimised the maturity profile of liabilities.”

Following the promissory note placement, total assets increased from EUR 2,863.4 million (31 December 2014) to EUR 3,484.2 million as at 30 September 2015. Equity increased by EUR 140.4 million or 14.0% compared to 31 December 2014 to EUR 1,142.1 million. The debt ratio improved on the previous year (31 December 2014: 1.8x) to 1.6 times EBITDA. The interest coverage ratio increased to 10.2 times EBITDA compared to 9.6x in the same period of the previous year.

Cash and cash equivalents amounted to EUR 606.3 million as at 30 September 2015. Together with the unutilised credit facilities, these ensure a persistently high level of reserves available at short notice.

Asklepios Kliniken GmbH confirms outlook for year as a whole

On the basis of the positive business development in the first nine months of 2015, the Group’s management is also optimistic for the year as a whole and is confirming its outlook. The business goals for 2015 include organic revenue growth in a range of around 2% to 4% and a slight but sustainable increase in EBIT and EBITDA compared to the previous year.

Asklepios will be publishing its consolidated interim report as at 30 September 2015 today in the Investor Relations section of the Asklepios website (www.asklepios.com).

About Asklepios

The healthcare group Asklepios Kliniken GmbH is one of the leading private operators of hospitals and healthcare facilities in Germany. The clinic group stands for highly professional care of its patients with a clear commitment to medical quality, innovation and social responsibility. Asklepios has been performing dynamically on this basis since it was founded 30 years ago. The Group currently has around 150 healthcare facilities throughout Germany and employs more than 45,000 people. Approximately 2.2 million patients were treated in Asklepios Group facilities in the 2014 financial year.