RAMSAY GENERALE DE SANTE : Half-year Results at the end of December 2017

                                                                                                                  PRESS RELEASE

Paris, 27 February 2018

Half-year results at the end of December 2017

Declining results in a still very negative pricing environment

• Published half-year turnover down 1.1% to €1,066.4 million, stable on a like for like basis (+ 0.1%) with one fewer business day;
• Net loss attributable to the group of €22.1 million (versus a profit of €24.7 million at the end of December 2016) mainly due to exceptional restructuring charges;
• Decline in reported EBITDA by 11.7% to €103.7 million (down 9.2% on a like-for-like basis) and decrease in the margin rate from 10.9% to 9.7%;
• Deployment of the 2020 strategic plan in line with the objectives to transform, digitalize and restructure the company;
• Net financial debt decreased to €965.2 million at the end of December 2017 (compared with €977.9 million at the end of December 2016).

According to Pascal Roché, Group Chief Executive Officer:

"Despite a more difficult global environment in terms of volumes and ever-increasing pricing constraints, we have managed to maintain our turnover thanks to the diversity of our businesses (Medicine-Surgery-Obstetrics, Post-operative care and Rehabilitation and Mental Health) and by our presence in the heart of heavily populated areas. In addition, we continued to invest heavily in order to strengthen the efficiency of our organizations and to support the digitalization and transformation of our group; this explains the decline in the published EBITDA. These investments are essential if we are to continue to differentiate our business significantly in the sector in the long term."

The Board of Directors, meeting on 22 February, approved the consolidated financial statements for the year ended December 2017. The accounts were subject to a limited review by the Statutory Auditors.

Operations and turnover:

The Group's consolidated turnover for the six-month period ended December 2017 amounted to €1,066.4 million, compared with €1,077.8 million from 1 July 2016 to 31 December 2016. The fall of 1.1% was due to the exit from consolidation scope of the Etang de Berre and Sévigné clinics in 2016, the Herbert clinic in 2017, and despite the entry of the Private Hospital of East Lyonnais in 2017.

On a like-for-like basis, turnover nevertheless increased by 0.1%, despite one fewer business day.

At the end of December 2017, total activity (excluding emergencies) increased by 1.2% in volume. The breakdown by business segment is as follows:

• +1.0% in Medicine-Surgery-Obstetrics
• +1.0% sub-acute care and rehabilitation
• +3.8% in mental health

With regard to the public service tasks managed by the group, the number of emergencies increased strongly, up 6.5% over the past year with 280,000 cases registered by the emergency services of our facilities.

Results:

EBITDA for the half-year was €103.7 million, down 11.7% on a reported basis. At constant scope and accounting methods, EBITDA was down 9.2% over the period. The EBITDA margin, as a percentage of turnover, decreased from 10.9% to 9.7%.

Current operating profit for the period 1 July 2017 to 31 December 2017 was €37.2 million (or 3.5% of turnover), down 25.9% from the €50.2 million recorded for the period 1 July 2016 to 31 December 2016.

The other non-current income and expenses resulted in a net expense of €43.7 million for the year ended, consisting almost entirely of restructuring costs. From 1 July 2016 to 31 December 2016, other non-current income and expenses represented a net income of €10.8 million.

The cost of net financial debt amounted to €20.2 million for the six months ended 31 December 2017, compared with €20.5 million the previous year. This consists primarily of interest on senior debt.

In total, the Ramsay Générale de Santé Group recorded a net loss of €22.1 million at the end of December 2017, compared with a profit of €24.7 million for the period from 1 July 2016 to 31 December 2016.

Debts:

Net financial debt at 31 December 2017 decreased to €965.2 million compared to €977.9 million at 31 December 2016. This debt includes, in particular, €1,099.7 million in non-current borrowings and financial debt, €91.3 million in current financial debt and €180.3 million in cash.

Investor & Analyst Relations                                                                             Press Relations
Arnaud Jeudy                                                                                                     Caroline Desaegher
Tel.: + 33 (0)1 87 86 21 88                                                                                   Tel.: + 33 (0)1 87 86 22 11
a.jeudy@ramsaygds.fr                                                                                         c.desaegher@ramsaygds.fr

A conference call in English will be held today

at 7.30 p.m. (Paris time) - Dial-in at the following numbers

From France:                          +33 (0)1 76 77 22 61
From Great Britain:                 +44 (0)330 336 6025
From Australia:                       +61 (0)2 8524 5352

Access code: 465602

Glossary

Constant scope of consolidation

• The restatement of the scope of consolidation for incoming entities is as follows:
  
  • Entities entering the scope of consolidation in the current year must have the contribution from the acquired entity deducted from the performance indicators in the current year;
  • Entities entering the scope of consolidation in the previous year must have the contribution from the acquired entity deducted from the performance indicators of the previous month in the month of the acquisition
• The restatement of the scope of consolidation for outgoing entities is as follows:
  
  • For entities leaving the scope of consolidation in the current year, the contribution of the outgoing entity must be deducted in the previous year from the performance indicators as of the month that the entity leaves the scope of consolidation.
  • For entities leaving the scope of consolidation in the previous year, the contribution of the ongoing entity must be deducted for the full previous period.

Current operating profit is the operating profit before other non-current income or expenses, consisting of restructuring costs (expenses and provisions), gains or losses from disposal, or significant and non-recurring depreciation or amortisation of non-current assets, whether tangible or intangible; also, other operating expenses and income such as provisions relating to major litigation.

Gross operating surplus is the current operating profit before depreciation and amortisation (charges and provisions in the profit and loss account are grouped according to their nature).

Net financial debt consists of gross financial debt less net cash.

• Gross financial debt consists of:
  
  • bank loans, including incurred interest;
  • loans relating to finance leases including incurred interest;
  • fair value hedging instruments recognised in the balance sheet net of tax;
  • current receivables and financial debt in relation to current financial accounts with minority investors;
  • treasury shares held by the Group (considered as marketable securities).
• Net cash consists of:
  
  • cash and cash equivalents;
  • bank overdrafts.

Selected financial information

Attachment:

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