Genolier Swiss Medical Network (GSMN): Ordinary profit of CHF 2.2 million (CHF 0.9m) for the first half-year 2011

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

18.08.2011 18:20

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

A 46.8% increase in EBITDA to CHF 11.05 million

The Group of private clinics Genolier Swiss Medical Network (GSMN.SW) has
achieved soaring profits for the first half-year of 2011. For a turnover of
CHF 100.6 million, up by 3% (CHF 97.8m), the Group's EBITDA was CHF 11.05
million (CHF 7.5m) and the ordinary result CHF 2.2 million (CHF 0.9m).
After extraordinary expenses, in particular the costs associated with
recourse taken by shareholders against the takeover bid by M.R.S.I., net
earnings were CHF 1.42 million (CHF 0.49m). The improved earnings are the
result of considerable investments made in the Group's corporate units and
a particular focus on controlling costs. The current GSMN structure will
make it possible to integrate new facilities without any increase in costs.

All facilities, with the exception of the Clinique Générale in Fribourg
(-1% to CHF 14.4m) and Privatklinik Bethanien in Zurich (-12% to CHF 23.9m,
due to major works) have seen their turnover increase. Montchoisi, with its
new radiology centre and improved access, saw an increase of 7% to CHF
10.6m (CHF 9.9m); Genolier, despite major disruptions caused by works on
the operating theatre, grew by 8% to CHF 38.4m (CHF 35.5m); Valmont saw a
10% increase to CHF 6 million; and the Centre médico-chirurgical des
Eaux-Vives achieved CHF 4.7 million, 25% more than for the first half-year
of 2010. The medical residence Les Hauts de Genolier, which was opened in
2010, saw the greatest increase (77%), with total turnover of CHF 2.2
million (CHF 1.25m). The overall growth in turnover, considered on a
like-for-like basis, and the various rationalisations have resulted in a
growth in EBITDA of 46.8% to CHF 11.05 million.

The commissioning of the new operating theatre at Clinique de Genolier in
July 2011 represents the end point of a considerable investment programme
since the takeover of the different entities. At the acquisition of each
facility, after an initial phase of analysis and observation, Genolier
Swiss Medical Network introduces a specific programme of investments
designed to ensure that each facility meets exacting standards of quality
in terms of medical and accommodation infrastructures. GSMN's goal is to
provide an environment that allows the practice of state-of-the-art
medicine by independent physicians throughout its network. The large-scale
and continued pursuit of this strategy, applied by the Group since its
inception, encourages sustainable development rather than an immediate
return on investment, so as to ensure the long-term existence of the Group
and the continued quality of the services it provides.

Genolier Swiss Medical Network, the second-largest group of private clinics
in Switzerland, chose to acquire minority shareholdings in the 2nd
half-year in Klinik Lindberg in Winterthur (49%) and Klinik Pyramide am See
in Zurich (20%). These clinics will not be consolidated but synergies will
be developed between these two facilities and the Group's Zurich clinic,
Privatklinik Bethanien. GSMN is thus continuing its development strategy
through collaborations, purchases of shareholdings and acquisitions, with
the aim of becoming a standard-setter in Switzerland. Rapid consolidation
of the sector is needed to guarantee the continued existence of a
high-quality private offering that will allow insured patients to freely
choose their service providers and independent physicians and to address
the uncertainties and challenges associated with the introduction of the
provisions of LaMal 2012. GSMN also signed a convention with the
shareholders of Centre Suisse de Prévention du Vieillissement SA in order
to increase its participation from 13.33% to 33.33%.

The Half-Yearly Report is accessible on the website at the
following link:

Genolier Swiss Medical Network SA (GSMN) is the second largest 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 seven private establishments in
Switzerland (Clinique de Genolier, Clinique de Montchoisi, Clinique
Valmont, Clinique Générale, Centre médico-chirurgical des Eaux-Vives,
Privatklinik Bethanien and Klinik Lindberg), with more than 660 practising
physicians and 1'000 employees. The Group is listed on the Domestic
Standard of the SIX Swiss Exchange (GSMN:SW).

For more information: 
Séverine Van der Schueren 
Secretary General 
Tel. 022 366 99 87 

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