DIAGNOSTIC & THERAPEUTIC CENTER OF ATHENS HYGEIA
Presentation of D.T.C.A. HYGEIA S.A.
Today May 9th, 2008 at the offices of the Association of Greek Institutional Investors in Athens was conducted the presentation of "D.T.C.A. HYGEIA S.A." on the back of the annual briefing of the Equity Analysts. The presentation has been uploaded in the Company's website
www.hygeia.gr.
The Company's management thoroughly presented the financial statements of the fiscal year 2007, the prospects and the strategic targets of the Group. 2007 results of the Group and the parent Company are characterized by continuous growth compared to 2006, due to the restructuring that followed after the acquisition from "MARFIN INVESTMENT GROUP" (ΜΙG) and the change of the management team.
Specifically, the Group's revenues reached EUR 130.3m, increasing by 37.8% y-o-y versus EUR 94.6m in 2006. Group EBITDA soared by 107% reaching EUR 24m versus EUR 11.6m the same period in 2006. 2007 group EBITDA margin improved by 6.13p.p. (or 613bps) compared to the last year?s period, on the back of the group restructuring that led to the drastic reduction of the operating expenses. Group net income skyrocketed to EUR 12.3m, increasing by 1096%y-o-y, versus EUR 1.03m in 2006.
2007 Group financial results are not directly comparable with the same period last year, since on 2007 "HYGEIA" fully-consolidated the Group "ΜITERA S.A." for two months. If the Group "ΜITERA S.A." was fully consolidated from the beginning of the fiscal year then the Pro-Forma Group revenues would reached EUR 210.2m, EBITDA would reach EUR 42.8m and earnings after tax would reach EUR 23.2m.
Operating Cash-flow (before working capital needs) increased by 43.6% to EUR 23.5m. Operating Cash-flow post working capital needs increased by 14.7%y-o-y to EUR 12.7m, due to the increase of long-term receivables that include EUR 7.04m, which concern the down payment for the acquisition of the 56.7% stake of "ACHILLION" Hospital in Limassol, Cyprus. The acquisition was completed on January 18, 2008.
On a parent level 2007 revenues increased by 15%y-o-y and stood at EUR 107.7m versus EUR 93.6m in 2006, 2007 EBITDA reached EUR 19.45m compared to EUR 10.99m, increasing by 77% y-o-y, whilst the EBITDA margin improved by 633bps. Parent company net income reached EUR 10.5m, compared to losses of EUR 1.03m in 2006.
Based on the very positive results, the Board of Directors will propose to the Annual General Meeting of the Company's Shareholders the distribution of EUR 0.16 per share through dividend distribution of a EUR 0.08 per share and a EUR 0.08 per share cash capital return (constructive dividend), based on the Company's policy to distribute significant returns to the long-term shareholders of the Company.
During 2007 a number of serious strategic investment initiatives were taken with main target the improvement of the Group?s position in Greece, Cyprus and Southeastern Europe. The major strategic movements are:
1. The positive fulfilment of Hygeia's Share Capital Increase with contribution in kind "MITERA S.A" shares.
2. The issuance of a EUR 300m Convertible Bond Loan, in order to finance the Group's investments to companies of the Healthcare sector in the Southeastern Europe and the organic growth of "HYGEIA". Recall that the General Meeting of "HYGEIA" has approved the issuance a EUR 200m common bond loan that the management of the Company is able to activate based on the Group's investment needs.
3. Establishment of the company "HYGEIA HOSPITAL - TIRANA Sh.A" in Tirana that will construct and operate the first private hospital in Albania with 160 beds capacity.
4. Agreement for the acquisition of 56.7% of the "Chrisafiliotissa Public Ltd" that owns the "ACHILLION" private hospital in Limassol, Cyprus with 86 beds capacity.
5. Establishment of the company "Y-PHARMA S.A" that will supply pharmaceuticals and related general medicine products initially the Greek market and latter will expand its operations abroad.
6. Establishment of the company "STEM-HEALTH S.A" that will develop a stem-cell bank network in Europe and the Middle East.
7. Agreement with "ETHNIKI INSURANCE". The agreement concerns the direct coverage of all insured persons who "ETHNIKI INSURANCE" represents for hospitalization at "HYGEIA" under special conditions with regard to both doctors' fees and hospital charges. With the aforementioned agreement, HYGEIA's Management successfully concluded its efforts to establish a new framework within which insurance companies and private hospitals shall collaborate reliably. "HYGEIA" has already concluded similar agreements with ING, INTERAMERICAN and ALLIANZ, with very positive results.
2007 results, the various corporate actions and the investment movements indicate that the Restructuring and Expansion Program of the Group continues successfully.
2008 finds "HYGEIA" holding a leading position in the healthcare sector in Greece, whilst "HYGEIA" is one of the fastest growing group's in the South-Eastern Europe.
In the context of its dynamic expansion «HYGEIA? announced the acquisition of a 50% stake of the share capital of "SAFAK GROUP" ("Safak"), a privately owned healthcare group in Turkey for a consideration of USD48m. Moreover, "HYGEIA" will have the majority of "SAFAK GROUP" BoD. "SAFAK GROUP" is one of the top three hospital groups in Istanbul, consists of four hospitals in the Istanbul metropolitan area with 470 total beds capacity. Moreover, the Company announced the acquisition of "EVANGELISMOS Hospital" in Paphos, Cyprus with 71 total beds capacity, for EUR 7.6m. The abovementioned acquisitions are subject to the satisfactory completion of financial and legal due diligence.
Following the completion of the aforementioned acquisitions "HYGEIA GROUP" will control 9 hospitals in Greece, Turkey and Cyprus of total 1,547 beds capacity. Furthermore, the Group is expanding in the stem-cell banking sector, whilst the Group's commercial companies that supply consumables, implantable devices, pharmaceuticals and related general medicine products give the opportunity to expand in the supply of private and public hospitals.
The management's vision is to create the largest group of integrated Healthcare services in the region of Southeastern Europe, Mediterranean and the Middle East.
The Company's management thoroughly presented the financial statements of the fiscal year 2007, the prospects and the strategic targets of the Group. 2007 results of the Group and the parent Company are characterized by continuous growth compared to 2006, due to the restructuring that followed after the acquisition from "MARFIN INVESTMENT GROUP" (ΜΙG) and the change of the management team.
Specifically, the Group's revenues reached EUR 130.3m, increasing by 37.8% y-o-y versus EUR 94.6m in 2006. Group EBITDA soared by 107% reaching EUR 24m versus EUR 11.6m the same period in 2006. 2007 group EBITDA margin improved by 6.13p.p. (or 613bps) compared to the last year?s period, on the back of the group restructuring that led to the drastic reduction of the operating expenses. Group net income skyrocketed to EUR 12.3m, increasing by 1096%y-o-y, versus EUR 1.03m in 2006.
2007 Group financial results are not directly comparable with the same period last year, since on 2007 "HYGEIA" fully-consolidated the Group "ΜITERA S.A." for two months. If the Group "ΜITERA S.A." was fully consolidated from the beginning of the fiscal year then the Pro-Forma Group revenues would reached EUR 210.2m, EBITDA would reach EUR 42.8m and earnings after tax would reach EUR 23.2m.
Operating Cash-flow (before working capital needs) increased by 43.6% to EUR 23.5m. Operating Cash-flow post working capital needs increased by 14.7%y-o-y to EUR 12.7m, due to the increase of long-term receivables that include EUR 7.04m, which concern the down payment for the acquisition of the 56.7% stake of "ACHILLION" Hospital in Limassol, Cyprus. The acquisition was completed on January 18, 2008.
On a parent level 2007 revenues increased by 15%y-o-y and stood at EUR 107.7m versus EUR 93.6m in 2006, 2007 EBITDA reached EUR 19.45m compared to EUR 10.99m, increasing by 77% y-o-y, whilst the EBITDA margin improved by 633bps. Parent company net income reached EUR 10.5m, compared to losses of EUR 1.03m in 2006.
Based on the very positive results, the Board of Directors will propose to the Annual General Meeting of the Company's Shareholders the distribution of EUR 0.16 per share through dividend distribution of a EUR 0.08 per share and a EUR 0.08 per share cash capital return (constructive dividend), based on the Company's policy to distribute significant returns to the long-term shareholders of the Company.
During 2007 a number of serious strategic investment initiatives were taken with main target the improvement of the Group?s position in Greece, Cyprus and Southeastern Europe. The major strategic movements are:
1. The positive fulfilment of Hygeia's Share Capital Increase with contribution in kind "MITERA S.A" shares.
2. The issuance of a EUR 300m Convertible Bond Loan, in order to finance the Group's investments to companies of the Healthcare sector in the Southeastern Europe and the organic growth of "HYGEIA". Recall that the General Meeting of "HYGEIA" has approved the issuance a EUR 200m common bond loan that the management of the Company is able to activate based on the Group's investment needs.
3. Establishment of the company "HYGEIA HOSPITAL - TIRANA Sh.A" in Tirana that will construct and operate the first private hospital in Albania with 160 beds capacity.
4. Agreement for the acquisition of 56.7% of the "Chrisafiliotissa Public Ltd" that owns the "ACHILLION" private hospital in Limassol, Cyprus with 86 beds capacity.
5. Establishment of the company "Y-PHARMA S.A" that will supply pharmaceuticals and related general medicine products initially the Greek market and latter will expand its operations abroad.
6. Establishment of the company "STEM-HEALTH S.A" that will develop a stem-cell bank network in Europe and the Middle East.
7. Agreement with "ETHNIKI INSURANCE". The agreement concerns the direct coverage of all insured persons who "ETHNIKI INSURANCE" represents for hospitalization at "HYGEIA" under special conditions with regard to both doctors' fees and hospital charges. With the aforementioned agreement, HYGEIA's Management successfully concluded its efforts to establish a new framework within which insurance companies and private hospitals shall collaborate reliably. "HYGEIA" has already concluded similar agreements with ING, INTERAMERICAN and ALLIANZ, with very positive results.
2007 results, the various corporate actions and the investment movements indicate that the Restructuring and Expansion Program of the Group continues successfully.
2008 finds "HYGEIA" holding a leading position in the healthcare sector in Greece, whilst "HYGEIA" is one of the fastest growing group's in the South-Eastern Europe.
In the context of its dynamic expansion «HYGEIA? announced the acquisition of a 50% stake of the share capital of "SAFAK GROUP" ("Safak"), a privately owned healthcare group in Turkey for a consideration of USD48m. Moreover, "HYGEIA" will have the majority of "SAFAK GROUP" BoD. "SAFAK GROUP" is one of the top three hospital groups in Istanbul, consists of four hospitals in the Istanbul metropolitan area with 470 total beds capacity. Moreover, the Company announced the acquisition of "EVANGELISMOS Hospital" in Paphos, Cyprus with 71 total beds capacity, for EUR 7.6m. The abovementioned acquisitions are subject to the satisfactory completion of financial and legal due diligence.
Following the completion of the aforementioned acquisitions "HYGEIA GROUP" will control 9 hospitals in Greece, Turkey and Cyprus of total 1,547 beds capacity. Furthermore, the Group is expanding in the stem-cell banking sector, whilst the Group's commercial companies that supply consumables, implantable devices, pharmaceuticals and related general medicine products give the opportunity to expand in the supply of private and public hospitals.
The management's vision is to create the largest group of integrated Healthcare services in the region of Southeastern Europe, Mediterranean and the Middle East.