Genolier Swiss Medical Network (GSMN): Contrasting half-yearly results – Half-yearly results boosted by the acquisition of Bethanien

Genolier Swiss Medical Network (GSMN) / Key word(s): Half Year Results/Half Year Results

15.10.2010 07:17

Release of an ad hoc announcement pursuant to Art. 72 KR

Genolier Swiss Medical Network today published its 2010 half-yearly report.
Both turnover (CHF 97.82m +37%) and EBITDA (CHF 7.53m +23%) are higher than
in 2009. These gains are mainly attributable to the acquisition of
Privatklinik Bethanien. Operating profit was down to CHF 1.90 million (CHF
2.18m), while net profit after tax stood at CHF 0.495 million. Some
activities in the development phase adversely affected the Group’s

GSMN’s results as at 30 June 2010 were up on the same period in 2009 thanks
to the acquisition of Privatklinik Bethanien in Zurich. Turnover in the
first half of 2010 reached CHF 97.82 million, 37% higher than in the same
period of 2009 (CHF 71.26m). EBITDA increased to CHF 7.53 million (CHF
6.14m, +23%). GSMN reported an operating profit of CHF 1.90 million (CHF
2.18m as at 30 June 2009) and operating cash flow of CHF 6.40 million (CHF

Turnover at Clinique de Genolier was down slightly (CHF 35.57m vs. CHF
37.87m), as was EBITDA (CHF 4.97m vs. CHF 5.83m). Complete refurbishment of
the operating theatres was begun, with the work scheduled to last 12 months
and be completed in spring 2011. This investment of just under CHF 12
million will endow Clinique de Genolier with latest-generation operating
facilities and enable the clinic to increase its capacity by 25%. The
Centre médico-chirurgical des Eaux-Vives in Geneva will be expanding its
oncology services with the arrival of several new specialists in 2010. Its
link with Clinique de Genolier gives it the benefit of more than 15 years’
experience in this field.

Clinique de Montchoisi has grown strongly with turnover at CHF 9.91m (CHF
8.71m) and EBITDA of CHF 2.04m (CHF 1.35m). This autumn, the inauguration
of a car park with 45 spaces and a first class radiology unit will further
support its development. With 14% growth in the first half, Montchoisi has
confirmed its leadership in ophthalmology, and the new radiology unit, to
be inaugurated in November 2010, will make the clinic yet more attractive
to orthopaedic surgeons.

Clinique Valmont ended its cardiac rehabilitation activity in October 2009
in order to focus on neurology and orthopaedics. This strategy has proved
successful, as EBITDA is slightly higher, despite a 22% decline in turnover
(CHF 5.46m vs. CHF 7.05m). The restructuring plan anticipates a return to
profitability in 2011.

In Fribourg, Clinique Générale has reached cruising speed with stable
turnover (CHF 14.61m vs. 14.49m) and EBITDA (CHF 2.18 vs. CHF 2.21m). The
refurbishment of an additional floor has enabled new private rooms to be
created, supplementing the existing offering. A gynaecology centre has been
opened where Clinique Générale will be developing a whole range of services
for women.

GSMN’s latest acquisition, Privatklinik Bethanien, has become the Group’s
most important centre in the German-speaking part of Switzerland. With
nearly 200 physicians, Bethanien achieved turnover of CHF 27.09 million in
the first half and has substantial growth potential. The Clinic reported
EBITDA of CHF 3.93 million. GSMN will be drawing on the expertise at
Bethanien to promote its development in the region.

Many contacts have been made with a view to acquisitions, cooperation and
the development of synergies. In the next 12 to 18 months, GSMN hopes to
make further acquisitions which will enable it to increase its geographical
coverage and size. Priority will be given to the German-speaking part of
Switzerland and Ticino in order to support the national strategy. In
French-speaking Switzerland, the presence in the Canton of Geneva will need
to be reinforced.

The Board of Directors is also assessing the extraordinary costs linked to
the events which occurred between the Ordinary General Meeting of 9 June
and the Extraordinary Meeting of 6 September 2010. The maximum risk is
currently estimated at CHF 4 million and the Group is looking into the
nature of these expenses and ways of minimizing their impact on the

The half-yearly report is available on the site

Genolier Swiss Medical Network SA (GSMN) is a major network of private
clinics in Switzerland. Its growth strategy focuses on the creation of a
national network through the acquisition of clinics and the restructuring
of their operations. GSMN’s main aim is to offer first class hospital care
to Swiss and foreign patients. The distinctive features of GSMN include its
high quality services, its brand value, a pleasant working environment and
an experienced management team with an entrepreneurial approach. GSMN
currently operates six private establishments in Switzerland (Clinique de
Genolier, Clinique Bethanien, Clinique Générale, Clinique de Montchoisi,
Clinique Valmont and Centre médico-chirurgical des Eaux-Vives) with more
than 550 practising physicians and a workforce of just under 1’000. The
Group is listed on the Domestic Standard of the SIX Swiss Exchange (GSMN:

Press Service GSMN SA
Séverine Van der Schueren
Tel. 022 366 99 87

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