Financial Figures 2014

• Roughly 1.22 million patients treated
• Revenues amount to EUR 1.51 billion
• EBITDA stands at EUR 1.41 billion due to sales transaction
• Net consolidated profit amounts to EUR 1.23 billion
• Dividend proposal of EUR 0.80 per share

Results for 1st Quarter 2015

• 191,730 patients treated
• Revenues amount to EUR 276,1 million
• EBITDA stands at EUR 49.7 million
• Outlook for 2015: Revenues between EUR 1.08 billion and EUR 1.12 billion,
  EBITDA between EUR 145 million and EUR 155 million

“RHÖN-KLINIKUM AG has both maintained and expanded its market position as a strong healthcare provider. The greater emphasis on innovation and treatment excellence represents what we practise, our objectives and the reality of our strategy in equal measure. We treat our patients using state-of-the-art medical technology and applying the latest diagnostic and therapeutic methods based on science. We are also well aware of the fact that it is not only medical technology which offers successful treatment in the long-term; the best possible nursing care is equally important. These services work together hand in hand at our hospitals,” the Chairman of the Board of Management, Dr. Martin Siebert, explained at the Company’s AGM in Frankfurt today. The self-image of the Group will also remain characterised by affordable high-quality medical care in the future. Ethical responsibility, patient well-being and state-of-the-art healthcare do not contradict each other. They are conditional on each other as the prerequisite and result of economically sound corporate management. “With this combination we shall continue to fulfil our claim to be a major pioneer in innovative development and a decisive driving force in the healthcare economy.”

The process of fundamental change which was initiated by last year’s transaction with Fresenius / Helios strongly influenced the financial figures of the Company. The figures of 2014 are therefore only comparable with those of previous years to a very limited extent. Against this background the ten clinics of RHÖN-KLINIKUM AG treated roughly 1.22 million patients in 2014. Revenues are at € 1.51 billion and earnings before interest, taxes, depreciation and amortisation (EBITDA) stand at € 1.41 billion. This unusual revenues/earnings ratio results from the proceeds from selling the hospitals. Net consolidated profit amounts accordingly to € 1.23 billion. “Taking into account the extraordinary situation due to the sales transaction the result we achieved in financial year 2014 is more than satisfactory,“ Siebert explained.

For the current financial year the Company expects revenues of € 1.08 billion to € 1.12 billion and EBITDA (earnings before interest, taxes, depreciation and amortisation) of between € 145 million and € 155 million.

Proposal: Dividend of € 0.80 per share, Possibly another Share Repurchase Scheme

The Board of Management and Supervisory Board proposed to this year’s AGM the distribution of the net consolidated profit in the form of a dividend in the amount of € 0.80 per share. This is an ambitious distribution ratio in comparison with other MDAX companies. RHÖN-KLINIKUM AG also wishes the shareholders to be able to participate extensively in subsequent years in the future success of the Company and can therefore be recommended as a share with an attractive dividend.

Furthermore the Board of Management will discuss the idea of using the remaining financial year to carry out another share repurchase scheme with a volume of roughly 10 % of the current share capital. The AGM had already given the corresponding authorisation last year. The Board of Management and the Supervisory Board which was newly elected by the AGM will decide on the actual method, precise time period and the economic parameters of the repurchase in due course.

Positive Developments at our Hospitals

Siebert stated that all five corporate locations are developing in a positive manner. Significant investments were also made in construction and medical quality in 2014. Major projects include the plan to rebuild the hospital campus in Bad Neustadt by 2018 and the particle therapy unit in Marburg, a world-class facility, which is envisaged to start functioning at the end of the year.

The consolidation of the largest component in the corporate portfolio, the university hospitals in Giessen and Marburg (UKGM), is also making progress, Siebert said. “We are continuing to further develop the hospitals in Giessen and Marburg as a network of two strong, even if different, university hospitals. We shall also continue to pursue our objectives of consolidating the hospitals with the measures which are both necessary and appropriate as well as improving medical performance and economic efficiency.” Ultimately it is a question of identifying and implementing individual long-term strategic prospects for the development of each separate location.

Corporate Re-Orientation as the Answer to a Challenging Market Environment

Siebert pointed out that the trend will continue to move towards increasing specialisation. The strategic principle to concentrate the corporate services on maximum and cutting-edge medical care takes account of this modified market environment. “We have the right market position for the future. We shall also continue to raise efficiency levels in an appreciable manner in the future without reducing the quality of treatment. That is the precondition for satisfactory financial figures and the basis for the successful treatment of our patients,” emphasised the Chairman of the Board of Management. With its already high level of treatment quality RHÖN-KLINIKUM AG will benefit if the planned hospital reform introduces fees for medical services based on quality as is currently being discussed. Further expansion of the network medicine concept will also play a decisive role in further increasing efficiency and optimising patient care.