RHÖN-KLINIKUM AG | 07/19/2005

Press Release Annual General Meeting 2005


Revenue € 1,044.8 million / net consolidated profit € 76.4 million /

Investment € 100.6 million / operating cash flow € 137.8 million / earnings per ordinary share € 2.94, per non-voting preference share € 2.96 / 3 new hospitals consolidated in 2004 / 598,485 patients treated / 14,977 employees / dividend € 0.78 per ordinary share, € 0.80 per non-voting preference share


Nine additional new hospitals consolidated in the first half of 2005 / revenues of € 688.3 million and net consolidated profit of € 44.4 million in line with targets / operating cash flow € 74.5 million / earnings per share € 1.63 / 487,835 patients treated / 20,361 employees


Earnings forecast raised for full-year 2005 (by + € 2 million) to € 86.0 million with revenues expected to remain stable at € 1.4 billion without taking into account possible further takeovers 


The text of the speech by the chairman of the Board of Management – as well as additional supplemental information – can be obtained after conclusion of the Annual General Meeting from the company’s website under / The information on the voting results for the most important agenda items will be published in a separate press release following the Annual General Meeting (early evening) 

Bad Neustadt a.d. Saale/Frankfurt am Main, 20 July 2005 ----- At today’s Ordinary General Meeting of the listed hospital group Rhön-Klinikum, the figures of the past financial year played only a subordinate role: the most important key figures were already presented and discussed at the end of April at this year’s Results Press Conference; the printed issues of the Annual Report have been distributed, and the pdf. version is also available from the Group’s website. On the whole the Board of Management was pleased with the results for 2004. “In financial year 2004 acquisition-driven growth amounted to only € 63 million. A major move for growth was our acquisition and conclusion of purchase agreements for nine hospitals with 2,625 beds, integrated from 1 January 2005”, said Eugen Münch+, chairman of the Board of Management of RHÖN-KLINIKUM AG. 

Performance in H1 2005 in line with expectations 

As in previous years RHÖN-KLINIKUM AG presented to the Annual General Meeting its half-year report for 2005. With the first-time consolidation of nine further hospitals, the Group counted a total of 39 hospitals going into the new year. Due to the disputed prohibition by the German Cartel Office, the scope of consolidation does not include the hospitals in Eisenhüttenstadt, Bad Neustadt and Mellrichstadt. With effect from 1 July 2005 we will consolidate the hospitals from the district of Miltenberg in Erlenbach and Miltenberg, for which Cartel Office approval has been given. This will bring the number of Group hospitals to 41.

The first-time consolidation of the newly added hospitals brought a jump in revenues in the first half of 2005 to € 688 million. This is a 38% rise compared with the same period last year. Net consolidated profit rose 14.1% to reach € 44.4 million. Earnings per share stood at € 1.63 (after € 1.43 in the previous year). “Revenues and net consolidated profit are in line with our expectations”, Münch said.

Compared with the same period last year, EBITDA* recorded a 13.7% rise to € 98.7 million (previous year: € 86. 8 million). EBIT** stood at € 68.8 million, topping the half-year figure for 2004 (€ 60.1 million) by nearly 14.5%. EBT*** reached € 60.9 million (previous year: € 53.8 million) (+ 13.2%). Our business model for hospital takeovers provides for the integration of uneconomic units with a view to gradually bringing out their rationalisation reserves. This means that high growth initially squeezes margins but creates considerable scope for rationalisation later on. 

In the first half of 2005 investment totalled € 199 million (€ 157.8 million of which went for hospital takeovers). Of this investment volume, € 74.5 million was financed from the operating cash flow, € 112.1 million from an increase in net debt to banks, and the remainder from interest-free short- and long-term loan capital. As in the past, the Group continues to enjoy stable and sound financial structures overall.

An additional 207,108 patients brought the total number of patients treated in the Group’s hospitals to 487,835 in the first half. At 30 June 2005, the Group employed 20,361 persons (up from 14,977 as at 31 December 2004).


“We will continue our strategy of qualitative growth. The development of the past months, despite the uncertain planning horizon with the introduction of case flat rates (DRGs), has prompted us to raise our forecast for net consolidated profit by € 2.0 million to € 86 million. We leave our revenue expectations unchanged at € 1.4 billion”, explained Eugen Münch.


+ Note: 

Eugen Münch took over management of the predecessor company in 1974, is the founding board chairman of the stock corporation (1988), oversaw the IPO of the company (1989) and is today handing over chairmanship of the Board to Wolfgang Pföhler.


* Earnings before depreciation, interest and earnings taxes

* Earnings before interest and earnings taxes = operating result