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MEDICLINIC INTERNATIONAL LIMITED - Unaudited interim group results of Mediclinic International Limited and its subsidiaries for the six months ended

Release Date: 06/11/2012 14:54
Code(s): MDC     PDF:  
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Unaudited interim group results of Mediclinic International Limited and its subsidiaries for the six months ended


MEDICLINIC INTERNATIONAL LIMITED

UNAUDITED INTERIM GROUP RESULTS OF MEDICLINIC INTERNATIONAL LIMITED AND ITS SUBSIDIARIES FOR THE 
SIX MONTHS ENDED 30 SEPTEMBER 2012 AND DECLARATION OF CASH DIVIDEND


Incorporated in the Republic of South Africa
Reg. No. 1983/010725/06
Share code: MDC
ISIN code: ZAE000074142
Income tax no: 9950122714
("Mediclinic" or "the Company")


·      Group revenue increased by 12% to R11 734m

·      Group normalised EBITDA 14% higher at R2 486m

·      Group normalised EBITDA margin increased from 20.8% to 21.2%

·      Normalised headline earnings per share increased by 45% to 112.1 cents

·      Converted 102% of normalised EBITDA into cash

·      Interim dividend per ordinary share increased to 25.3 cents (2011: 23.0 cents)

Danie Meintjes, CEO of Mediclinic International commented:

"The Group's continued investment to improve and expand facilities in Southern Africa, Switzerland and the United Arab 
Emirates ("UAE") combined with increased patient admissions, often with more serious conditions, contributed to more bed 
days occupied and an increase in the average income per bed day. All three operating platforms contributed to this strong 
performance with an excellent contribution from the UAE. The average length of stay increased in Southern Africa and the UAE, 
with a slight decrease in Switzerland.

Although regulatory matters, particularly in Switzerland, create some uncertainty, we are positive about the future of our 
businesses. The benefit of our refinanced balance sheet places us in a favourable position to invest further in attractive 
growth and development opportunities across our operations."

Enquiries:
Mediclinic International: T +27 21 809 6500
Danie Meintjes, CEO
Craig Tingle, CFO
Corné Heyns, Investor Relations
 
CapitalVoice: T +27 82 921 9110
Johannes van Niekerk 
  

GROUP OVERVIEW

Mediclinic is a respected international hospital group providing comprehensive, cost-effective, high-quality hospital services in 
Southern Africa, Switzerland and the UAE. Its vision is to be respected internationally and preferred locally. 

We are pleased to report that the Mediclinic Group ("the Group") has maintained its consistent growth pattern.

Group revenue increased by 12% to R11 734m (2011: R10 467m) for the six months under review. Normalised operating income 
before interest, tax, depreciation and amortisation ("normalised EBITDA") was 14% higher at R2 486m (2011:R2 179m). 
The leveraging effect of the capital structure of the Group as well as the termination of Secondary Tax on Companies
resulted in higher normalised headline earnings per share growth of 45% to 112.1 cents (2011: 77.2 cents) compared to 
the normalised EBITDA growth of 14%.

The Group results include a one-off net unrealised gain of R185m on foreign exchange forward contracts reported under
other gains and losses in the consolidated income statement. These foreign exchange forward contracts were entered into 
to fix the exchange rate at which funds raised in South Africa were converted into foreign exchange to partially refinance
the Swiss debt and to partially fund the acquisition of the minority interest in Emirates Healthcare.

Including this one-off item headline earnings rose by 84% to R891m (2011: R484m) and headline earnings per ordinary 
share increased by 83% to 141.5 cents (2011: 77.2 cents).

The average rand/Swiss franc (CHF) exchange rate was R8.63 compared to R8.25 and the average UAE dirham (AED) was R2.23 
compared to R1.90 for the comparative period. These movements in the exchange rates had a positive effect on the reported
results, as detailed under Hirslanden's and Emirates Healthcare's financial performance sections.

Finance cost

Included in the finance cost is an amount of R32m (2011: R40m), which is the current period's amortisation in respect of
raising fees paid on the Group's local and offshore debt. These amounts are amortised over the terms of the relevant loans
in line with future cash payments as prescribed in IAS 39 Financial Instruments.

Cash flow

The Group's cash flow continued to be strong. The Group converted 102% (2011: 88%) of normalised EBITDA into cash
generated from operations. Cash and cash equivalents increased from R2 099m at 31 March 2012 to R3 191m at 
30 September 2012.

Interest-bearing borrowings

Interest-bearing borrowings ("debt") increased from R24 794m at 31 March 2012 to R25 146m at 30 September 2012, mainly as
a result of the change in the closing rand/CHF exchange rate. The closing rand/CHF exchange rate moved from R8.50 at 
31 March 2012 to R8.85 at 30 September 2012. It is important to note that the foreign debt of the Group's Swiss and 
Middle Eastern operations, amounting to R21 605m, is matched with foreign assets in the same currencies. The foreign debt
also has no recourse to the Southern African operations' assets, as stipulated by the South African Reserve Bank, as well
as applicable financing arrangements.

Assets

Property, equipment and vehicles increased from R34 808m at 31 March 2012 to R36 484m at 30 September 2012 and intangible 
assets increased from R6 350m at 31 March 2012 to R6 614m at 30 September 2012. These increases are mainly a result of the 
change in the closing rand/CHF and the rand/AED exchange rate, as mentioned above.

Other investments and loans decreased from R790m at 31 March 2012 to R43m at 30 September 2012, mainly due to the sale of 
most of the investment grade bond portfolio. The investment in money market funds was converted to cash.

Dividend

As indicated previously, the Group is moving towards a targeted dividend cover of three times based on Group headline
earnings over time. The interim dividend per share is 25.3 cents (2011: 23.0 cents) and the Board will review the final
dividend based on the Group's results of the full financial year.

Normalised non-IFRS financial measures

The Group uses normalised EBITDA, normalised headline earnings and normalised headline earnings per share as non-IFRS 
measures in evaluating performance and as a method to provide shareholders with clear and consistent reporting. These 
non-IFRS measures are defined as reportable EBITDA, headline earnings and headline earnings per share in terms of accounting
standards, excluding one-off items.


OPERATIONS IN SOUTHERN AFRICA

MEDICLINIC SOUTHERN AFRICA

Financial performance

The Southern African group revenue increased by 9% to R5 130m (2011: R4 695m) for the six months under review. Normalised 
EBITDA was 10% higher at R1 089m (2011: R989m).

After incurring depreciation charges of R131m (2011: R123m), net finance charges of R152m (2011: R166m), taxation of R222m 
(2011: R230m) and deducting the interest of minority shareholders in the attributable income of the Southern African 
group amounting to R82m (2011: R76m), the Southern African operations contributed R502m (2011: R394m) to the normalised 
attributable income of the Group.

Business performance

The 9% revenue growth was achieved through a 4.1% increase in bed-days sold and a 5.2% increase in the average income per 
bed-day. Medical cases continued increasing at a higher rate than surgical cases. The number of patients admitted increased 
by 2.9%, while the average length of stay increased by 1.2%.

The Southern African operations' EBITDA margin increased slightly from 21.1% at 30 September 2011 to 21.2% at 30 September 2012.

The Southern African operations' cash flow continued to be strong as it converted 112% (2011: 96%) of EBITDA into cash 
generated from operations.

Cash and cash equivalents increased from R821m at 31 March 2012 to R893m at 30 September 2012.

Interest-bearing borrowings decreased from R3 631m at 31 March 2012 to R3 541m at 30 September 2012.

Projects and capital expenditure

During the reporting period the Southern African operations invested R246m (2011: R145m) in capital projects and new equipment
to enhance its business, as well as R124m (2011: R139m) in the replacement of existing equipment. In addition, R134m 
(2011: R125m) was spent on the repair and maintenance of property and equipment, charged through the income statement. For
the current financial year, R651m is budgeted for capital projects and new equipment to enhance its business, R250m for 
the replacement of existing equipment and R274m for repairs and maintenance. Incremental EBITDA resulting from capital 
projects in progress or approved is budgeted to amount to R64m and R65m in 2013 and 2014 respectively.

The number of licensed hospital beds increased from 7 378 to 7 408 during the six months under review.

During the past six months building projects were completed at:

·   Mediclinic Muelmed (30 additional beds), and

·   Mediclinic Legae (new emergency centre).


The following building projects in progress should be completed during the next six months:

·   Mediclinic Limpopo (15 additional beds and upgrade),

·   Mediclinic Nelspruit (2 theatres and upgrade),

·   Mediclinic Swakopmund (14 additional beds and upgrade),

·   Mediclinic Louis Leipoldt (upgrade),

·   Mediclinic Hoogland (4 additional beds, new doctors consulting block and upgrade),

·   Mediclinic Milnerton (10 additional beds),

·   Mediclinic Otjiwarongo (2 additional beds), and

·   Mediclinic Kloof (additional consulting rooms).


The following building projects in progress should be completed during the 2014 financial year:

·   Mediclinic Pietermaritzburg (new cardiology unit, 80 additional beds, consulting rooms and upgrade),

·   Mediclinic Windhoek (27 additional beds and consulting rooms),

·   Mediclinic Stellenbosch (upgrade),

·   Mediclinic Newcastle (10 additional beds),

·   Mediclinic Victoria (14 additional beds and consulting rooms), and

·   Wits Donald Gordon Medical Centre (upgrade).


Furthermore, the following approved projects will start during the next 12 months:

·   New hospital in Centurion (174 beds),

·   Mediclinic Howick (22 additional beds and upgrade), and

·   Marapong Private Hospital (relocating hospital).

The number of licensed beds is expected to increase from 7 408 to 7 489 during the next six months.

Regulatory environment
Mediclinic continues to engage with all stakeholders on the most appropriate mechanisms for achieving universalcoverage 
and promoting access to affordable high-quality healthcare with regard to the proposed National Health Insurance (NHI) scheme.

The Department of Health has announced a tender process for projecting the costs of fully implementing the first 10 NHI
pilot sites. The pilot sites are aimed at improving primary healthcare at the district level and were initiated by a 
R1bn conditional grant from Treasury. It is anticipated that the results from this costing model will provide pragmatic 
estimates of the likely costs of providing primary care in the future.


OPERATIONS IN SWITZERLAND

HIRSLANDEN

Financial performance

Hirslanden's revenue increased by 9% (4% at constant foreign exchange rates) to R5 446m (CHF631m) (2011: R5 001m (CHF606m))
for the six months under review. Normalised EBITDA was 8% higher (3% higher at constant foreign exchange rates) at 
R1 152m (CHF133m) (2011: R1 070m (CHF129m)).

After incurring depreciation charges of R285m (CHF33m) (2011: R268m (CHF33m)), net finance charges of R625m (CHF72m) 
(2011: R605m (CHF73m)) and tax of R135m (CHF16m) (2011: R128m (CHF15m)), Hirslanden contributed R107m (CHF12m) 
(2011: R69m (CHF8m)) to the attributable income of the Group.

Business performance

Inpatient admissions increased by 2.9% during the reporting period, while the average length of stay decreased slightly 
and the average income per bed-day increased by 2.5%.

Corrective action in the Berne hospitals has delivered improved results in line with expectations.

The normalised EBITDA margin of the group decreased slightly from 21.4% at 30 September 2011 to 21.2% at 30 September 2012.

Hirslanden converted 94% (2011: 79%) of normalised EBITDA into cash generated from operations.

Cash and cash equivalents increased from R588m (CHF69m) at 31 March 2012 to R773m (CHF87m) at 30 September 2012.

Interest-bearing borrowings increased from R20 722m (CHF2 438m) at 31 March 2012 to R21 461m (CHF2 425m) at 30 September 2012, 
mainly because of the increase in the closing rate of the rand/CHF exchange rate.

Projects and capital expenditure

During the reporting period Hirslanden invested R243m (CHF28m) (2011: R136m (CHF16m)) in capital projects and new equipment 
to enhance its business, as well as R160m (CHF19m) (2011: R99m (CHF12m)) in the replacement of existing equipment. In 
addition, R138m (CHF16m) (2011: R132m (CHF16m)) was spent on the repair and maintenance of property and equipment, charged
through the income statement. For the current financial year CHF73m is budgeted for capital projects and new equipment, CHF52m 
for the replacement of existing equipment and CHF34m for repairs and maintenance. Incremental EBITDA resulting from capital projects
in progress or approved is budgeted to amount to CHF6m and CHF12m in 2013 and 2014 respectively.

The number of fully operational inpatient beds remained constant at 1 479 during the period under review.

The major new building at Klinik Hirslanden has been under construction in Zurich since November 2010. During the reporting 
period the building project was running on schedule. It is expected that the commissioning of the new building (with an 
additional 72 inpatient beds and 8 ICU beds) will take place in 2013 during the European Spring.

Regulatory environment
The implementation of the revised Swiss Health Insurance Act (KVG), as of 1 January 2012, introduced Diagnosis
Related Grouping ("DRG") based reimburse-ment, revised funding rules and new cantonal hospital lists.
Thirteen of the fourteen Hirslanden hospitals achieved the declared aim of being listed in their home canton. The
exception, Klinik Im Park, continues to operate successfully in the private and semi-private patient market.

Regarding DRG-based reimbursement, base rates are still preliminary and may ultimately be fixed at a lower value.
Some cantonal regulations that listed hospitals have to comply with, have not been enacted yet which may have a limiting
effect on the business activities of Hirslanden.


OPERATIONS IN UNITED ARAB EMIRATES

EMIRATES HEALTHCARE

Financial performance

Revenue increased by 50% (28% at constant foreign exchange rates) to R1 158m (AED519m) (2011: R771m (AED406m)) for the six 
months under review. Normalised EBITDA increased by 104% (74% at constant exchange rates) to R245m (AED110m) 
(2011: R120m (AED63m)) and the EBITDA margin increased from 15.6% to 21.2%.

After incurring depreciation charges of R52m (AED23m) (2011: R45m (AED24m)), net finance charges of R17m (AED7m) 
(2011: R14m (AED8m)) and the sharing of minority shareholders in the attributable income of EmiratesHealthcare 
amounting to R87m (AED39m) (2011: R30m (AED15m)), Emirates Healthcare contributed R89m (AED41m) (2011: R31m (AED16m)) 
to the attributable income of the Group.

Business performance

During the reporting period excellent growth was achieved by all business units. Inpatient hospital admissions increased
by 17% (2011: 25%), while hospital outpatient consultations and visits to the emergency units increased by 11% (2011:15%). 
Clinic outpatient consultations increased by 22% (2011: 87%).

The number of licensed hospital beds remained constant at 336 beds during the period under review.

Emirates Healthcare converted 99% (2011: 97%) of EBITDA into cash generated from operations.

Cash and cash equivalents decreased from R325m (AED155m) at 31 March 2012 to R117m (AED52m) at 30 September 2012, mainly
as a result of interest-bearing borrowings which decreased from R439m (AED210m) at 31 March 2012 to R319m (AED141m) 
at 30 September 2012.

Projects and capital expenditure

During the reporting period Emirates Healthcare invested R21m (AED9m) (2011: R8m (AED4m)) in capital projects and new 
equipment to enhance its business as well as R15m (AED7m) (2011: R6m (AED3m)) in the replacement of existing equipment. 
In addition, R17m (AED8m) (2011: R15m (AED8m)) was spent on the repair and maintenance of property and equipment, charged
through the income statement. For the next six months, AED14m is budgeted for capital projects and new equipment to enhance 
its business, AED33m for the replacement of existing equipment and AED18m for repairs and maintenance.


EVENTS AFTER THE REPORTING PERIOD AND TRADING STATEMENT

Significant events occurred between 30 September 2012 and 6 November 2012 which are not reflected in the condensed group 
interim financial statements. Details of a number of corporate activities were released on SENS over the past number of 
months and a summarised SENS announcement released on 17 October 2012. The announcements reported on:

· the successful completion of the comprehensive, elective refinancing of the Group's debt with new long-term, committed 
  debt facilities across the Group's platforms and the successful conclusion of a R5 billion rights offer, and

· the conclusion of the acquisition of the minority interest in Emirates Healthcare.

The Group's results for the year ending 31 March 2013 will show a reduction of more than 20% in earnings and headline
earnings per share compared to those reported for the year ended 31 March 2012, due to one-off charges relating to the
refinancing of the Swiss and South African debt which occurred in October 2012 and thus in terms of section 3.4(b) of the
JSE Listings Requirements the Group is required to issue a trading statement. The following one-off items will be
excluded in calculating normalised headline earnings and normalised headline earnings per share:

·   derecognition of the mark-to-market liability relating to the Swiss interest rate swap of CHF418m,

·   accelerated amortisation charges of Swiss capitalised financing expenses of CHF18m,

·   breakage charges of R55m relating to existing South African debt, and

·   realised gain of R574m on foreign exchange forward contracts.

However, as it is quite early in the annual reporting period, the Group cannot, with reasonable certainty accurately
quantify its results for the year ending 31 March 2013. A further trading statement for the year ending 31 March 2013 
will be issued in April or May 2013. The forecasted financial information on which this trading statement is based has 
not been reviewed or reported on by the Company's external auditors.


CHANGES TO THE BOARD OF DIRECTORS

The following changes to the Board of Mediclinic occurred during the reporting period, as previously announced:

· Mr Jannie Durand, Chief Executive Officer of Remgro, was appointed as a non-executive director with effect from 
  7 June 2012 in the place of Mr Thys Visser who tragically passed away on 26 April 2012.

· Ms Zodwa Manase and Prof. Wynand van der Merwe (both independent non-executive directors), as well as Mr Joe Cohen and 
  Dr Mamphela Ramphele (both non-executive directors) retired as directors of the Company at the annual general meeting 
  on 26 July 2012. These vacancies have been filled with the appointment of Mr Alan Grieve and Ms Nandi Mandela (both 
  independent non-executive directors), as well as Mr Trevor Petersen (non-executive director) as directors of the Company
  with effect from 13 September 2012. Mr Petersen is currently not regarded as independent in terms of the   JSE Listings 
  Requirements due to him being a partner of the Company's external auditors, PwC, within the last three years. 
  This three-year period will expire at the end of December 2012, whereafter Mr Petersen will be regarded as independent.

· Dr Edwin Hertzog retired as an executive director with effect from 31 August 2012, but he remains on the Board of
  Mediclinic as non-executive Chairman.


PROSPECTS

Mediclinic is uniquely positioned in Southern Africa, Switzerland and the UAE to participate in the growth of quality 
healthcare with market leading facilities and services in strong market share positions.

The Group's refinanced balance sheet places it in a favourable position to invest further in attractive growth and
development opportunities across the its operations.


BASIS OF PREPARATION

The accounting policies applied in the preparation of these condensed group interim financial statements, which are based 
on reasonable judgements and estimates, are in accordance with International Financial Reporting Standards (IFRS) and are 
consistent with those applied in the audited annual financial statements for the year ended 31 March 2012, with the 
exception of the change in segmental reporting. The segmental report was changed after the composition of the Group's 
reportable segments was reconsidered. The condensed group interim financial statements have been prepared in terms of 
IAS 34 Interim Financial Reporting as well as in compliance with the Companies Act 71 of 2008 and the Listings Requirements 
of the JSE Limited. The preparation of the condensed group interim financial statements was supervised by the Chief Financial
Officer, Mr CI Tingle (CA(SA)).


DIVIDEND TO SHAREHOLDERS

Notice is hereby given that the directors have declared an interim gross cash dividend of 25.3 cents (21.505 cents net of
dividend withholding tax) per ordinary share. The dividend has been declared from income reserves and no secondary tax on 
companies credits have been utilised. A dividend withholding tax of 15% will be applicable to all shareholders who are not
exempt therefrom. The Company's issued share capital at the declaration date is 826 957 325 ordinary shares.

The salient dates for the dividend will be as follows:

                                               
Last date to trade cum dividend                 Friday, 30 November 2012

First date of trading ex dividend               Monday, 3 December 2012

Record date                                     Friday, 7 December 2012

Payment date                                    Monday, 10 December 2012


Share certificates may not be dematerialised or rematerialised from Monday, 3 December 2012 to Friday, 7 December 2012, 
both days inclusive



CONSOLIDATED INCOME STATEMENT


                                                                  Unaudited                      Unaudited           Audited
                                                                6 months to                    6 months to           Year to
                                                                  30/9/2012      Increase         30/9/2011        31/3/2012
                                                                        R'm             %              R'm               R'm

Revenue                                                              11 734           12%           10 467            21 986

Cost of sales                                                        (6 724)                        (5 968)          (12 314)

Administration and other operating expenses                          (2 524)                        (2 320)           (5 003)

Operating profit before depreciation (EBITDA)                         2 486           14%            2 179             4 669

Depreciation and amortisation                                          (468)                          (436)             (910)

Operating profit                                                      2 018                          1 743             3 759

Other gains and losses                                                  183                            (29)              (26)

Income from associates                                                    ­                             ­                  1

Finance income                                                           41                             43                85

Finance cost                                                           (820)                          (809)           (1 642)
    
Profit before tax                                                     1 422                            948             2 177

Income tax expense                                                     (358)                          (357)             (693)


Profit for the period                                                 1 064                            591             1 484



Attributable to:

Equity holders of the Company                                           894                            484             1 221

Non-controlling interests                                               170                            107               263

                                                                      1 064                            591             1 484



Earnings per ordinary share ­ cents

­ Basic                                                               142.0           84%             77.2             194.7

­ Diluted                                                             137.1                           74.2             187.3



Headline earnings per ordinary share ­ cents

­ Basic                                                               141.5           83%             77.2             194.9

­ Diluted                                                             136.6                           74.2             187.5



Normalised headline earnings per ordinary share ­ cents

­ Basic                                                               112.1           45%             77.2             193.0

­ Diluted                                                             108.2                           74.2             185.7



EBITDA RECONCILIATION:

Operating profit before depreciation (EBITDA)                         2 486                          2 179             4 669

Adjusted for:

   Past service cost                                                      ­                              ­               (14)

   Impairment of property and equipment                                   ­                              ­                 4

Normalised EBITDA                                                     2 486           14%            2 179             4 659


EARNINGS RECONCILIATION:

Profit attributable to shareholders                                     894                            484             1 221

   Re-measurements for headline earnings                                 (4)                             ­                 1
      
   Profit on sale of property, equipment and vehicles                    (4)                             ­                (1)

   Impairment of property and equipment                                   ­                              ­                 2

   Income tax effects                                                     1                              ­                 ­

Headline earnings                                                       891        84%                 484             1 222

   Re-measurements for normalised headline earnings                    (185)                             ­

   Unrealised gain on forward contracts                                (185)                             ­

   Past service cost                                                      ­                              ­               (14)

   Income tax effects                                                     ­                              ­                 3

Normalised headline earnings                                            706        46%                 484             1 211




CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


                                                                  Unaudited           Unaudited              Audited
                                                                6 months to         6 months to              Year to
                                                                  30/9/2012           30/9/2011            31/3/2012
                                                                        R'm                 R'm                  R'm

Profit for the period                                                 1 064                 591                1 484


Other comprehensive income

Currency translation differences                                        465               2 009                1 405
         
Fair value adjustment to cash flow hedges (net of tax)                   12              (1 029)              (1 126)

Actuarial gains and losses (net of tax)                                (255)               (179)                (403)

Other comprehensive income/(loss), net of tax                           222                 801                 (124)


Total comprehensive income for the period                             1 286               1 392                1 360


Attributable to:

Equity holders of the Company                                         1 074               1 195                1 035

Non-controlling interests                                               212                 197                  325

                                                                      1 286               1 392                1 360



CONSOLIDATED STATEMENT OF FINANCIAL POSITION


                                                                  Unaudited           Unaudited              Audited
                                                                6 months to         6 months to              Year to
                                                                  30/9/2012           30/9/2011            31/3/2012
                                                                        R'm                R'm                   R'm

ASSETS

Non-current assets                                                   43 349              43 830               42 033

   Property, equipment and vehicles                                  36 484              36 019               34 808
        
   Intangible assets                                                  6 614               6 684                6 350

   Investments in associates                                              ­                   5                    1

   Other investments and loans                                           15                 888                  662

   Deferred income tax assets                                           236                 234                  212



Current assets                                                        9 196               7 132                8 162

   Inventories                                                          611                 600                  582

   Trade and other receivables                                        5 166               4 037                4 815

   Current income tax assets                                             15                   ­                    4
   
   Derivative financial instruments                                     185                   ­                   24

   Other investments and loans                                           28                   ­                  128

   Investment in money market funds                                       ­                 860                  510

   Cash and cash equivalents                                          3 191               1 635                2 099


Total assets                                                         52 545              50 962               50 195



EQUITY AND LIABILITIES

Total equity                                                         12 251              11 572               11 404

   Share capital and reserves                                        10 939              10 394               10 116
        
   Non-controlling interests                                          1 312               1 178                1 288



LIABILITIES

Non-current liabilities                                              33 949              35 750               32 969

   Borrowings                                                        23 235              25 485               22 864

   Deferred income tax liabilities                                    5 492               5 682                5 303

   Retirement benefit obligations                                     1 143                 595                  823

   Provisions                                                           265                 234                  240

   Derivative financial instruments                                   3 814               3 754                3 739



Current liabilities                                                   6 345               3 640                5 822

   Trade and other payables                                           3 803               2 711                3 460

   Borrowings                                                         1 911                 608                1 930

   Provisions                                                           170                 117                  121

   Derivative financial instruments                                      66                  16                    ­

   Current income tax liabilities                                       395                 188                  311


Total liabilities                                                    40 294              39 390               38 791


Total equity and liabilities                                         52 545              50 962               50 195



Net asset value per ordinary share ­ cents                          1 735.5             1 656.8              1 609.4


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                  Unaudited           Unaudited              Audited
                                                                6 months to         6 months to              Year to
                                                                  30/9/2012           30/9/2011            31/3/2012
                                                                        R'm                 R'm                  R'm

Opening balance                                                      11 404              10 560               10 560

Movement in shares held in treasury                                       9                   5                   19

Movement in share-based payment reserve                                   3                   3                    6

Non-controlling interests acquired by the Group                          (9)                  ­                    ­

Total comprehensive income for the period                             1 286               1 392                1 360

Transactions with non-controlling shareholders                          (16)                  ­                    3

Gain on sale of nil-paid letters of allocation                           42                   ­                    ­

Distributed to shareholders                                            (288)               (298)                (436)

Distributed to non-controlling interests                               (180)                (93)                (111)

Closing balance                                                      12 251              11 572               11 404



Comprising

Share capital                                                            65                  65                   65

Share premium                                                         6 066               6 066                6 066

Treasury shares                                                        (261)               (283)                (269)

Share-based payment reserve                                             138                 132                  135

Foreign currency translation reserve                                  3 594               3 747                3 171

Hedge reserve                                                        (3 211)             (3 126)              (3 223)

Retained earnings                                                     4 548               3 793                4 171

Shareholders' equity                                                 10 939              10 394               10 116

Non-controlling interests                                             1 312               1 178                1 288

Total equity                                                         12 251              11 572               11 404


CONSOLIDATED STATEMENT OF CASH FLOWS


                                                                  Unaudited           Unaudited              Audited
                                                                6 months to         6 months to              Year to
                                                                  30/9/2012           30/9/2011            31/3/2012
                                                                       R'm                  R'm                  R'm

Cash flow from operating activities                                   1 504                 858                2 216
                  
   Cash generated from operations                                     2 540               1 913                4 266

   Net finance cost                                                    (758)               (744)              (1 525)

   Taxation paid                                                       (278)               (311)                (525)



Cash flow from investment activities                                    557                (530)              (1 055)

   Investment to maintain operations                                   (299)               (245)                (731)

   Investment to expand operations                                     (511)               (318)                (742)

   Proceeds on disposal of property, equipment and vehicles               8                  11                   23

   Proceeds from derivative financial instruments                        24                   ­                   24

   Insurance proceeds                                                     ­                  20                   27

   Proceeds from other investments and loans                              4                   1                    5

   Purchases of FVTPL financial assets                                    ­                 (26)                (144)

   Proceeds from FVTPL financial assets                                 802                  18                  134
        
   Proceeds from money market funds                                   1 144                   ­                  823

   Purchases of money market funds                                     (627)                  ­                (507)

   Interest received                                                     12                   9                   33



Cash flow from financing activities                                    (984)               (491)                (735)

   Distributions to shareholders                                       (288)               (298)                (436)

   Distributions to non-controlling interests                          (180)                (98)                (111)

   Movement in borrowings                                              (541)               (102)                (214)

   Proceeds from disposal of treasury shares                             65                  14                   28

   Treasury shares purchased                                            (14)                 (9)                  (9)

   Acquisition of non-controlling interests                             (26)                  ­                    ­

   Proceeds on disposal of non-contolling interest                        ­                   2                    ­



Net movement in cash, cash equivalents
and bank overdrafts                                                   1 077                (163)                 426

Opening balance of cash, cash equivalents and bank overdrafts         1 981               1 447                1 447
                   
Exchange rate fluctuations on foreign cash                               46                 160                  108

Closing balance of cash, cash equivalents
and bank overdrafts                                                   3 104               1 444                1 981



Cash and cash equivalents                                             3 191               1 635                2 099

Bank overdrafts                                                         (87)               (191)                (118)

                                                                      3 104               1 444                1 981



SEGMENTAL REPORT


                                                                  Unaudited           Unaudited              Audited
                                                                6 months to         6 months to              Year to
                                                                  30/9/2012           30/9/2011            31/3/2012
                                                                        R'm                 R'm                  R'm

Revenue

Southern Africa                                                       5 130               4 695                9 423

Middle East                                                           1 158                 771                1 831

Switzerland                                                           5 446               5 001               10 732

                                                                     11 734              10 467               21 986



EBITDA

Southern Africa                                                       1 089                 989                1 957

Middle East                                                             245                 120                  348

Switzerland                                                           1 152               1 070                2 364

                                                                      2 486               2 179                4 669



Operating profit

Southern Africa                                                         958                 866                1 701

Middle East                                                             193                  75                  250

Switzerland                                                             867                 802                1 808

                                                                      2 018               1 743                3 759


ADDITIONAL INFORMATION       
     


                                                                  Unaudited           Unaudited              Audited
                                                                6 months to         6 months to              Year to
                                                                  30/9/2012           30/9/2011            31/3/2012
                                                                        R'm                 R'm                  R'm

Capital commitments

Southern Africa                                                       1 086               1 227                1 427

Middle East                                                              31                  15                   31

Switzerland                                                             581                 812                  703



Exchange rates                                                            R                   R                    R

Average Swiss franc (ZAR/CHF)                                          8.63                8.25                 8.45

Closing Swiss franc (ZAR/CHF)                                          8.85                8.96                 8.50

Average UAE dirham (ZAR/AED)                                           2.23                1.90                 2.03

Closing UAE dirham (ZAR/AED)                                           2.26                2.20                 2.09



                                                                     Number              Number               Number
Shares                                                                 '000                '000                 '000

Number of ordinary shares in issue                                  652 315             652 315              652 315

Number of ordinary shares held in treasury                         (22 023)             (24 956)             (23 758)

Number of ordinary shares in issue net of treasury shares           630 292             627 359              628 557



Weighted average number of ordinary shares
in issue                                                            629 296             626 921              627 280

Diluted weighted average number of ordinary shares in issue         651 986             651 921              651 921

In determining basic earnings per share and basic headline earnings per share, the weighted average number of ordinary
shares in issue were taken in to account.


Signed on behalf of the board of directors:

E DE LA H HERTZOG                                    D P MEINTJES
Chairman                                             Chief Executive Officer


Stellenbosch
6 November 2012

DIRECTORS:
Dr E de la H Hertzog (Chairman), DP Meintjes (Chief Executive Officer),
CI Tingle (Chief Financial Officer), JJ Durand, JA Grieve (British),
Prof Dr RE Leu (Swiss), Dr MK Makaba, N Mandela, TD Petersen,
KHS Pretorius, AA Raath, DK Smith, CM van den Heever,
Dr CA van der Merwe, Dr TO Wiesinger (German)

SECRETARY: GC Hattingh

REGISTERED ADDRESS:
Mediclinic Offices, Strand Road, Stellenbosch 7600, South Africa
PO Box 456, Stellenbosch 7599, South Africa
Tel +27 21 809 6500
Fax +27 21 886 4037
Ethics line: 0800 005 316

Website: www.mediclinic.com

TRANSFER SECRETARIES:

Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg 2001, South Africa
PO Box 61051, Marshalltown 2107, South Africa
Tel +27 11 370 5000
Fax +27 11 688 7716

SPONSOR:
Rand Merchant Bank (A division of FirstRand Bank Limited)

        
 


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