Asklepios: Continued growth in revenue and earnings in first half of 2016

The Asklepios Group further expanded its position as one of Germany’s leading private clinic operators in the first half of 2016. Compared to the previous year, the company improved all of the group’s key figures. The further increase in patient numbers made a particular contribution to this success. In the first six months of 2016, a total of 1.2 million patients were treated at one of its 150 healthcare facilities – a 4.2 % increase in comparison to the previous year.

Asklepios increases profitability again

The group’s revenue climbed by 4.5 % year on year to a total of EUR 1.6 billion (H1 2015: EUR 1.5 billion). Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 6.6 % to EUR 179.6 million (H1 2015: EUR 168.5 million), corresponding to an EBITDA margin of 11.1 % (H1 2015: 10.9 %). The increase in profitability is particularly attributable to a comparatively lower rise in the cost of materials ratio. As a result of efficiency enhancements, Asklepios was able to reduce this ratio by 0.5 percentage points to 21.4 % (H1 2015: 21.9 %). Consolidated interim income for the first half of 2016 totalled EUR 83.7 million (H1 2015: EUR 86.4 million). The return on sales of 5.2 % (H1 2015: 5.6 %) is down slightly on the previous year’s level due to the comparatively higher increase in interest expenses, which is attributable primarily to the EUR 580 million promissory note issue in the second half of 2015.

“Asklepios Kliniken can look back at rising revenue and patient numbers in almost all facilities in the first half of 2016. The steadily increasing influx of patients to our hospitals clearly demonstrates that the path we have taken is the right one. Our hospitals’ clear, future-oriented medical performance profiles, which are geared towards the highest quality standards, are more and more frequently attracting patients from outside the direct catchment area of our facilities, too. We will therefore press ahead with the expansion of our high-performance medical centres, known as Centres of Excellence,” comments Kai Hankeln, CEO.

Stable financial basis secures future development

Equity amounted to approximately EUR 1.2 billion as at 30 June 2016 (31 December 2015: EUR 1.2 billion). It thus provides a sound financial basis for further growth of the Asklepios Group. At 35.4 %, the equity ratio is higher than at the end of the financial year 2015 (31 December 2015: 34.7 %). The debt ratio improved to 1.4 times EBITDA (31 December 2015: 1.6x). Net debt as at the end of the reporting period amounted to EUR 529.8 million (31 December 2015: EUR 595.9 million).

In the first half of the year, the Asklepios Group invested a total of EUR 99.0 million. The share of investments made with the group’s own funds was financed entirely from cash flow from operating activities, which amounted to EUR 150.7 million as at 30 June 2016 (H1 2015: EUR 126.3 million). These funds were used in particular for measures to improve patient care and for the strategic expansion of the Centres of Excellence.

Financing measures successfully concluded

Asklepios used the last half of the year to implement various financing measures in the group as a whole. These included the successful restructuring of the syndicated loan in the form of ‘amend & extend’, with an increase in its volume to EUR 365 million and an extension of its term, as well as the refinancing of the syndicated loan to MediClin AG in the amount of EUR 60 million and the repayment of existing bilateral loans of EUR 100 million. “We have thereby implemented the goal of a clear and transparent financing structure in the group, harmonised loan documentation for the main financing instruments in the group as a whole, replaced structural subordination and optimised capital costs,” explains CFO Hafid Rifi.

Outlook confirmed

Based on the good business performance in the first half of 2016, the group management of the Asklepios Group is confirming its outlook for the current financial year 2016. It anticipates organic revenue growth of between 2 % and 3.5 % and a slight but sustainable increase in EBITDA compared to the previous year.

The consolidated interim report for the first half of 2016 is available at www.asklepios.com/ir.

Year-on-year comparison of group key figures

About Asklepios

The healthcare group Asklepios Kliniken GmbH is among the leading private operators of hospitals and healthcare facilities in Germany. The hospital group stands for highly professional care of its patients with a clear commitment to medical quality, innovation and social responsibility. On this basis, Asklepios has been developing dynamically ever since it was founded more than 30 years ago. The group currently has 150 healthcare facilities across Germany. Its facilities include acute hospitals providing all levels of care, specialist clinics, psychiatric and forensic facilities, rehabilitation clinics, nursing homes and medical centres. In the 2015 financial year, 2.3 million patients were treated in the Asklepios Group’s facilities. The company has approximately 46,000 employees.