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Audited results of Mediclinic International Limited and declaration of cash dividend
MEDICLINIC INTERNATIONAL LIMITED
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")
AUDITED RESULTS OF MEDICLINIC INTERNATIONAL LIMITED AND ITS SUBSIDIARIES FOR THE
FINANCIAL YEAR ENDED 31 MARCH 2013 AND DECLARATION OF CASH DIVIDEND
SALIENT FEATURES
- Strong performance by all three operating platforms
- Group refinancing and R5 billion rights offer successfully concluded
- Buy-out of Emirates Healthcare minorities
- Normalised group EBITDA margin increased from 21.2% to 21.8%
- Basic normalised headline earnings per share increased by 53% to 273.2 cents
- Final dividend per ordinary share increased to 60.5 cents (2012: 55.0 cents)
Danie Meintjes, CEO of Mediclinic International commented:
We are delighted to report that all our operations delivered thoroughly
satisfactory performances. This was supported by increased patient admissions
and bed-days sold combined with an increased average income per stay.
The positive leveraging impact of the Groups capital structure and the buy-out
of minorities in Emirates Healthcare contributed to our strong financial
performance judged on a normalised basis after one-off items.
Meeting the needs of our patients in the most cost-effective way remains a key
priority for us and we will continue to invest in better facilities and
processes to improve the patient experience across our Group. Despite regulatory
uncertainties, we remain optimistic about our role in delivering quality care in
the markets we serve, as confirmed by the substantial capital investments we are
making in Southern Africa, Switzerland and the United Arab Emirates."
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
TRADING RESULTS
We are pleased to report that the Mediclinic Group has maintained its consistent
growth pattern.
Group normalised revenue increased by 12% to R24 713m (2012: R21 986m) for the
year under review. Normalised operating profit before interest, tax, depreciation
and amortisation (normalised EBITDA) was 15% higher at R5 379m (2012: R4 659m).
The leveraging effect of the capital structure of the Group enhanced financial
performance and resulted in basic normalised headline earnings per share growth
of 53% to 273.2 cents (2012: 178.3 cents) compared to the normalised EBITDA growth
of 15%. The Groups normalised EBITDA margin increased from 21.2% to 21.8% at year
end. An adjustment was made to the prior years earnings per share in terms of IFRS
(International Financial Reporting Standards) as detailed in the paragraph
Weighted average number of shares adjustment.
As reported in the interim results announcement on 6 November 2012, a number of
one-off items relating to the refinancing of the Groups debt occurred. Details of
a number of corporate activities were released on SENS during the year and a
summarised SENS announcement was released on 17 October 2012. The announcements
reported on the successful elective refinancing of the Groups debt and the
successful conclusion of a R5 billion rights offer, as well as the conclusion of
the buy-out of the minority interest in Emirates Healthcare (which has subsequently
been rebranded to Mediclinic and is referred to as Mediclinic Middle East hereinafter).
The one-off charges amount to R3 215m (R2 946m after tax) and comprise of the following:
- the derecognition of the mark-to-market liability relating to the Mediclinic
Switzerland interest rate swap of R3 531m (R3 311m after tax);
- accelerated amortisation charges of capitalised financing expenses of R163m (R129m
after tax);
- loan breakage charges of R54m (R39m after tax) relating to existing South African
debt;
- Swiss stamp duty of R41m (R41m after tax), partially offset by a realised gain of
R574m (R574m after tax) on foreign exchange forward contracts.
In addition, the Group results also include the following one-off items:
- a pre-acquisition Swiss tariff provision charge of R151m (R115m after tax); and
- a past service cost credit of R35m (R27m after tax) due at one of the Groups pension
funds.
Including the one-off items, headline earnings declined by 182% to a loss of R1 007m
(2012: profit of R1 222m) and basic headline earnings per ordinary share decreased by
175% to a loss of 135.6 cents (2012: profit of 179.9 cents).
The average ZAR/Swiss franc (CHF) exchange rate was R9.05 compared to R8.45 for the
comparative period and the average UAE dirham (AED) was R2.32 compared to R2.03 for the
comparative period. These movements in the exchange rates had a positive effect on the
reported results, as detailed under Hirslandens and Mediclinic Middle Easts financial
performance sections.
BEE structure enhancement
An agreement was reached with one of our empowerment partners, Phodiso, to extend their
lock-in period by two years to the end of 2018. The transaction involved the refinancing
of existing third party bank facilities and a cash distribution to Phodiso arising from
the sale of rights offer entitlements on the October 2012 rights issue. The transaction
was supported by the substantial value that exists in the applicable BEE structure.
Finance cost
Finance cost includes the following items:
- R3 531m (2012: Rnil) derecognition of the Swiss interest rate swap;
- R163m (2012: Rnil) accelerated recognition of capitalised financing expenses; and
- R89m (2012: R81m) amortisation of capitalised financing expenses.
The capitalised financing expenses 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 Groups cash flow continued to be strong. The Group converted 104% (2012: 92%)
of normalised EBITDA into cash generated from operations. Cash and cash equivalents
increased from R2 099m at 31 March 2012 to R2 705m at year end.
Interest-bearing borrowings
Interest-bearing borrowings increased from R24 794m at 31 March 2012 to R26 370m at
year end, mainly as a result of the change in the closing ZAR/CHF exchange rate. The
closing ZAR/CHF exchange rate moved from R8.50 at 31 March 2012 to R9.69 at year end.
It is important to note that the foreign debt of the Groups Swiss and Middle Eastern
operations, amounting to R20 553m, is matched with foreign assets in the same
currencies. The foreign debt has no recourse to the Southern African operations
assets.
Assets
Property, equipment and vehicles increased from R34 808m at 31 March 2012 to R40 233m
at year end and intangible assets increased from R6 350m at 31 March 2012 to R7 279m at
year end. These increases are mainly as a result of the change in the closing ZAR/CHF
and the ZAR/AED exchange rates, as mentioned above.
Other investments and loans decreased from R790m at 31 March 2012 to R17m at year end,
mainly due to the sale of most of the investment grade bond portfolio. The investment
in money market funds was converted to cash.
Dividend
The final dividend per share is 60.5 cents (2012: 55.0 cents). The total dividend per
share for the period under review is 85.8 cents (2012: 78.0 cents).
Weighted average number of shares adjustment
In terms with IAS 33 paragraph 26, an adjustment to the weighted average number of shares
in issue for the period under review and the prior year is required, since the rights
offer share price of R28.63 per share was less than the market value on the last day to
trade in shares in order to participate in the rights offer. Consequently, the basic
headline earnings per share for the prior year decreased by 15.0 cents and basic
normalised headline earnings per share for prior year decreased by 14.7 cents.
Normalised non-IFRS financial measures
The Group uses normalised revenue, normalised EBITDA, normalised headline earnings
and normalised basic 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 basic
headline earnings per share in terms of accounting standards, excluding one-off items,
as detailed above.
OPERATIONS IN SOUTHERN AFRICA
MEDICLINIC SOUTHERN AFRICA
Financial performance
Mediclinic Southern Africas normalised revenue increased by 8% to R10 185m (2012:
R9 423m) for the year under review. Normalised EBITDA was 11% higher at R2 169m
(2012: R1 957m).
After incurring depreciation charges of R282m (2012: R256m), net finance charges of
R369m (2012: R328m), taxation of R442m (2012: R434m) and deducting the interest of
minority shareholders in the attributable income of the Southern African group
amounting to R170m (2012: R152m), the Southern African operations contributed R906m
(2012: R787m) to the normalised attributable income of the Group.
Business performance
The 8% revenue growth was achieved through a 3.5% increase in bed-days sold and a
4.6% 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
2.4%, while the average length of stay increased by 1.1%.
The normalised EBITDA margin of the Southern African operations increased from 20.8%
to 21.3%.
Mediclinic Southern Africas cash flow continued to be strong as it converted 113%
(2012: 97%) of normalised EBITDA into cash generated from operations.
Cash and cash equivalents increased from R821m at 31 March 2012 to R1 305m at year end.
Interest-bearing borrowings increased from R3 631m at 31 March 2012 to R5 817m at
year end as part of the refinancing of the Groups debt.
Projects and capital expenditure
During the reporting period the Southern African operations spent R445m (2012: R293m)
on capital projects and new equipment to enhance its business, as well as R249m
(2012: R230m) on the replacement of existing equipment. In addition, R282m
(2012: R274m) was spent on the repair and maintenance of property and equipment,
charged through the income statement. For the next financial year, R765m is budgeted
for capital projects and new equipment to enhance its business, R276m for the
replacement of existing equipment and R279m for repairs and maintenance. Incremental
EBITDA resulting from capital projects in progress or approved is budgeted to amount
to R42m and R83m in 2014 and 2015 respectively.
The number of licensed hospital beds increased from 7 378 to 7 436 during the year
under review.
During the past year a number of building projects were completed at various hospitals,
creating 58 additional beds as well as new consulting rooms and involving a number of
facility upgrades.
Building projects in progress, which should be completed during the next financial year,
will add 139 additional beds as well as new consulting rooms, a cardiology unit and a
number of facility upgrades.
The number of licensed beds is expected to increase from 7 436 to 7 575 during the
next financial year.
Several building projects in progress should be completed during the 2015 financial
year, of which the establishment of the new Mediclinic Centurion (174 beds) is the
most significant development.
Regulatory environment
Within the broader health sector context, the government maintains its commitment to
achieve universal coverage through a National Health Insurance (NHI) system. A White
Paper on the NHI is expected to be published during the year ahead and Mediclinic
will continue to engage with both government and other relevant stakeholders on the
most appropriate design and mechanisms to pursue universal coverage within the South
African context.
The Competition Commission is set to initiate an inquiry into the private healthcare
sector within the year. Mediclinic is engaging with the Commissions representatives
and the draft. Terms of Reference and the envisaged process have been discussed. The
Commission stated that it wishes to finalise the inquiry by December 2014.
OPERATIONS IN SWITZERLAND
HIRSLANDEN
Financial performance
Hirslandens normalised revenue increased by 12% (5% at constant foreign exchange
rates) to R12 043m (CHF1 330m) (2012: R10 732m (CHF1 270m)) for the year under
review. Normalised EBITDA was 16% higher (8% higher at constant foreign exchange
rates) at R2 716m (CHF300m) (2012: R2 350m (CHF278m)).
After incurring depreciation charges of R604m (CHF67m) (2012: R556m (CHF66m)), net
finance charges of R1 014m (CHF112m) (2012: R1 239m (CHF147m)), tax of R297m (CHF33m)
(2012: R260m (CHF31m)) and income from associate of R2m (CHF0.2m) (2012: R1m
(CHF0.1m), Hirslanden contributed R803m (CHF88m) (2012: R296m (CHF34m)) to the
attributable income of the Group.
Business performance
The 5% normalised revenue growth was achieved through inpatient admissions increasing
by 2.6% during the reporting period, while the average length of stay decreased
slightly and the average revenue per case increased by 2.0%, due to higher acuity
levels.
The normalised EBITDA margin of Hirslanden increased from 21.9% to 22.6%.
Hirslanden converted 93% (2012: 84%) of normalised EBITDA into cash generated from
operations.
Cash and cash equivalents decreased from R588m (CHF69m) at 31 March 2012 to R536m
(CHF55m) at year end.
Interest-bearing borrowings decreased from R20 723m (CHF2 438m) at 31 March 2012 to
R18 997m (CHF1 960m) at year end, mainly due to the refinancing of Swiss debt,
counteracted by the increase in the closing ZAR/CHF exchange rate.
Projects and capital expenditure
During the reporting period Hirslanden invested R741m (CHF82m) (2012: R456m (CHF54m))
in capital projects and new equipment to enhance its business, as well as R498m (CHF55m)
(2012: R413m (CHF49m)) in the replacement of existing equipment. In addition, R317m
(CHF35m) (2012: R292m (CHF35m)) was spent on the repair and maintenance of property and
equipment, charged through the income statement. For the current financial year CHF58m
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 CHF13m
in 2014 and 2015 respectively.
The number of fully operational inpatient beds increased to 1 487 (2012: 1 479) during
the period under review, mainly due to an additional 8 inpatient beds that were opened
at Klinik St. Anna in early 2013.
Building projects completed during the period under review were:
- The Groups largest construction project, the new wing (Enzenbühl Trakt) at Klinik
Hirslanden in Zurich, was substantially completed during the period under review,
and formally opened during May 2013. With a total area of around 16 710 square
metres, the wing will house doctors practices, specialised centres of medical
competence, a modern intensive care unit, operating theatres and an additional 72
inpatient beds and 8 ICU beds. A whole floor will be dedicated to Hirslanden Privé
(the private insurance service offering). The new wing is state-of-the-art in terms
of comfort and care, and also, with the integration of a whole range of centres of
medical competence and inter-disciplinary teams, well positions Klinik Hirslanden
towards becoming even more of a private hospital with the character of a traditional
Swiss university hospital.
- At Klinik Stephanshorn, the health centre was opened as planned in September 2012.
The centre consists of five doctor practices and a walk-in emergency centre.
The major ongoing expansion projects are as follows:
- Klinik Stephanshorn will open its new intensive care unit (ICU) during July 2013.
The creation of an ICU is especially important for the hospital to obtain the
inclusion of certain medical services on the canton of St. Gallens hospital list,
expected to become effective at the beginning of 2014.
- A new centre at Berne main station, offering basic medical care, specialist and
emergency consultation and other services, will be opened in August 2013.
Hirslanden is also investing in structural maintenance and innovative medical
technology:
- At Klinik St. Anna in Lucerne, around 70 rooms have been renovated in the last three
years. All of the hospitals wards will have been brought up to the newest standards
by 2015.
- For the treatment of tumours, TrueBeam linear accelerators were installed at the
radiotherapy unit at Klinik Hirslanden in Zurich, and the radio-oncology unit at
Clinique Bois-Cerf in Lausanne. This cutting-edge technology device enables both
conventional radiation and stereotactical radiotherapy, with a precision of less than
one millimetre.
- A Da-Vinci robot, a system for minimally invasive surgical treatment, was brought
into service at Klinik Beau-Site in Berne in February 2013. It is now the third unit
of this type in the Hirslanden group.
The number of licensed beds is expected to increase from 1 487 to 1 561 during the next
financial year.
Regulatory environment
The year under review was the first full 12 months regulated by the revised Swiss Health
Insurance Act (KVG) introducing fundamental changes in the Swiss health sector not seen
since the KVGs establishment in 1996, and presenting numerous legal and political
uncertainties. As reported before, the changes involved: (i) the introduction of fixed
fees for inpatient services based on the new Swiss Diagnosis Related Grouping (DRG); (ii)
a new hospital financing system which redefines the funding ratios of the cantons versus
the health insurance companies; and (iii) the revision of the hospital planning that led
to new hospital lists, defining those hospitals that are eligible to treat generally
insured patients. Many rules were introduced provisionally or at very short notice, some
even with backdated effect. Hirslanden succeeded in meeting the challenge of interpreting
these rules appropriate from both a strategic and operational point of view, while
simultaneously contributing to the groups growth strategy.
As previously reported, despite the fact that the new system is operational a number of
areas that have not been finalised and remain uncertain including:
- the applicable base rate per canton of the DRG pricing;
- hospital lists in some cantons are still under debate or being legally challenged;
- restrictions in cantonal legislation could impact on the business;
- highly specialised medicine (HSM) developments can have an impact on the future patient
profile of some hospitals; and
- cantons subsidising public hospitals.
OPERATIONS IN UNITED ARAB EMIRATES
MEDICLINIC MIDDLE EAST
Financial performance
Mediclinic Middle Easts normalised revenue increased by 36% (19% at constant foreign
exchange rates) to R2 485m (AED1 072m) (2012: R1 831m (AED902m)) for the year under
review. Normalised EBITDA increased by 41% (23% at constant exchange rates) to R495m
(AED214m) (2012: R352m (AED174m)).
After incurring depreciation charges of R113m (AED49m) (2012: R98m (AED48m)), net
finance charges of R63m (AED27m) (2012: R27m (AED14m)) and the sharing of minority
shareholders in the attributable income of Mediclinic Middle East amounting to R87m
(AED38m) (2012: R113m (AED56m)), Mediclinic Middle East contributed R232m (AED100m)
(2012: R114m (AED56m)) to the attributable income of the Group.
Business performance
The 19% revenue growth was achieved through inpatient hospital admissions increasing
by 13%, while hospital outpatient consultations and visits to the emergency units
increased by 8%. Clinic outpatient consultations increased by 14%.
The normalised EBITDA margin of Mediclinic Middle East increased from 19.2% to 19.9%.
Mediclinic Middle East converted 125% (2012: 119%) of normalised EBITDA into cash
generated from operations.
Cash and cash equivalents increased from R325m (AED155m) at 31 March 2012 to R629m
(AED250m) at year end. Interest-bearing borrowings increased from R440m (AED210m) at
31 March 2012 to R1 556m (AED619m) at year end, mainly because of the refinancing and
the buy-out of Mediclinic Middle Easts minority interests.
Projects and capital expenditure
During the reporting period Mediclinic Middle East invested R62m (AED27m) (2012: R26m
(AED13m)) in capital projects and new equipment to enhance its business as well as
R45m (AED19m) (2012: R25m (AED12m)) in the replacement of existing equipment. In
addition, R43m (AED19m) (2012: R35m (AED17m)) was spent on the repair and maintenance
of property and equipment, charged through the income statement. For the next financial
year, AED88m is budgeted for capital projects and new equipment to enhance its business
in the longer term, AED8m for the replacement of existing equipment and AED17m for
repairs and maintenance.
The number of licensed beds is 382, which includes 27 day beds available at the clinics.
Building projects completed during the period under review:
- Following the closure of Emirates Diagnostic Clinic, Mediclinic Middle East launched a
new clinic, Mediclinic Beach Road. The new clinic significantly expands the primary
healthcare offering of the group. Mediclinic Beach Road opened in December 2012.
- Mediclinic City Hospital opened its second floor as a dedicated outpatient department
and the remaining corporate staff members were relocated from the 7th floor of
Mediclinic City Hospital to Mediclinic Dubai Mall, allowing for 30 additional beds,
increasing the operational bed capacity of the hospital by 15%.
Ongoing capital projects:
- The land exchange of the Creek plot for the vacant plot adjacent to Mediclinic City
Hospital was approved by Dubai Healthcare City. It is planned to develop the adjacent
plot as an extension to the hospital at an estimated cost of AED213m, which will
include a state-of-the-art oncology unit developed in association with Hirslanden, an
expanded reference laboratory servicing the entire Mediclinic Middle East, a day
surgery unit, a rehabilitation centre and Mediclinic Middle Easts corporate offices,
which will relocate from Mediclinic Dubai Mall, freeing up additional clinical space
there. The expected completion date of the project is in the second quarter of 2015
(calendar year).
- The development of Mediclinic Middle Easts first clinic in Abu Dhabi, Mediclinic
Corniche, is ongoing and should open in the last quarter of 2013 (calendar year),
providing a platform for future growth in this emirate.
CHANGES TO THE BOARD OF DIRECTORS
During the period under review, the following changes to the Board were approved, as
previously announced.
Following the tragic passing away of Mr Thys Visser on 26 April 2012, Mr Jannie Durand,
Chief Executive Officer of Remgro, was appointed as a non-executive director of the
Company with effect from 7 June 2012.
Mr Joseph Cohen, Ms Zodwa Manase, Dr Mamphela Ramphele and Prof Wynand van der Merwe
retired as directors of the Company at the annual general meeting on 26 July 2012. Mr
Chris van den Heever also resigned as a director on 1 February 2013. The Board is
thankful to them for the significant contribution they have made over a long period to
the Group.
Dr Edwin Hertzog retired from his executive role with effect from 31 August 2012, but
remains on the Board as a non-executive chairman.
Mr Alan Grieve, Ms Nandi Mandela and Mr Trevor Petersen were appointed as independent
non-executive directors of the Company with effect from 13 September 2012. Subsequent
to year end, Mr Pieter Uys, an Investment Manager at Remgro, was appointed as a non-
executive director of the Company with effect from 1 April 2013.
PROSPECTS
Affordability of healthcare remains a global concern and we can expect continuous focus
from regulatory authorities to ensure access to healthcare by the broader population.
The private healthcare industry has a key role to play in the delivery of healthcare,
supplementary to that provided by governments.
Despite regulatory uncertainties, we are optimistic about our future role in delivering
cost effective quality care in the markets that we serve, as confirmed by the substantial
new capital investments we are making in Southern Africa, Switzerland and the United Arab Emirates.
Meeting the needs of our patients in the most cost-effective way remains a key priority
for Mediclinic and the Group will continue investing in better facilities and processes
to improve the patient experience across the Group.
REPORTS OF THE INDEPENDENT AUDITOR
The annual financial statements have been audited by PricewaterhouseCoopers Inc. and
their unqualified audit reports on the comprehensive annual financial statements and
the abridged annual financial statements are available for inspection at the
registered office of the Company.
The auditors report does not necessarily cover all of the information contained in
this announcement. Shareholders are therefore advised that in order to obtain a full
understanding of the nature of the auditors work they should obtain a copy of that
report together with the accompanying financial information from the registered office
of the company after they have been released on or before 30 June 2013.
BASIS OF PREPARATION
The accounting policies applied in the preparation of these summarised group annual
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 prior year with the exception of the change in segmental
reporting. The segmental report was changed after the composition of the Groups
reportable segments was reconsidered. The summarised group annual 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, as amended, 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 a final gross cash dividend
in respect of the year under review of 60.5 cents (2012: 55.0 cents) (51.4250 cents
(2012: 46.7500 cents) net of dividend withholding tax) per ordinary share. The
dividend declared increased by 10% compared to the comparative period. 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 Companys 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 Thursday, 13 June 2013
First date of trading ex dividend Friday, 14 June 2013
Record date Friday, 21 June 2013
Payment date Monday, 24 June 2013
Share certificates may not be dematerialised or rematerialised from Friday, 14 June 2013
to Friday, 21 June 2013, both days inclusive.
CONSOLIDATED INCOME STATEMENT
for the year ended 31 March
Notes 2013 change 2012
R'm % R'm
Revenue 1 24 562 12% 21 986
Cost of sales (13 845) (12 314)
Administration and other operating expenses (5 454) (5 003)
Operating profit before depreciation (EBITDA) 2 5 263 13% 4 669
Depreciation and amortisation (999) (910)
Operating profit 4 264 3 759
Other gains and losses 3 531 (26)
Income from associates 2 1
Finance income 68 85
Finance cost 4 (5 166) (1 642)
(Loss)/profit before tax (301) 2 177
Income tax expense (442) (693)
(Loss)/profit for the year (743) 1 484
Attributable to:
Equity holders of the Company (1 002) 1 221
Non-controlling interests 259 263
(743) 1 484
PER SHARE PERFORMANCE No. ('000) No. ('000)
Weighted average number of shares
Before rights offer 714 856 627 280
Adjustment for rights offer (IAS 33 para 26) 27 002 51 872
Weighted average number of ordinary shares in issue 741 858 679 152
Diluted weighted average number of shares
Before rights offer 735 860 651 779
Adjustment for rights offer (IAS 33 para 26) 27 002 51 872
Diluted weighted average number of ordinary shares
in issue 762 862 703 651
Earnings per ordinary share cents cents
- Basic (loss)/earnings basis (135.0) (175%) 179.8
- Diluted (loss)/earnings basis (131.3) 173.5
- Basic headline (loss)/earnings basis (135.6) (175%) 179.9
- Diluted headline (loss)/earnings basis (131.9) 173.7
- Basic normalised headline earnings basis 273.2 53% 178.3
- Normalised diluted headline earnings basis 265.7 172.1
Dividends per ordinary share
- interim 25.3 23.0
- final 60.5 55.0
85.8 78.0
EARNINGS RECONCILIATION R'm R'm
(Loss)/profit attributable to shareholders (1 002) 1 221
Re-measurements for headline earnings (6) 1
Profit on sale of property, equipment and vehicles (6) (1)
Impairment of property and equipment - 2
Income tax effects 1 -
Headline (loss)/earnings (1 007) (182%) 1 222
Re-measurements for normalised headline earnings 3 331 (14)
Group one-off refinancing charges 3 215 -
Pre-acquisition tariff provision 151 -
Past service cost (35) (14)
Income tax effects (297) 3
Normalised headline earnings 2 027 67% 1 211
NOTES TO THE SUMMARISED FINANCIAL STATEMENTS
2013 change 2012
R'm % R'm
1. REVENUE RECONCILIATION
Revenue 24 562 21 986
Adjusted for:
Pre-acquisition tariff provision 151 -
Normalised revenue 24 713 12% 21 986
2. EBITDA RECONCILIATION
Operating profit before depreciation (EBITDA) 5 263 4 669
Adjusted for:
Past service cost (35) (14)
Impairment of property and equipment - 4
Pre-acquisition tariff provision 151 -
Normalised EBITDA 5 379 15% 4 659
3. OTHER GAINS AND LOSSES
Realised gains on forward contracts 574 24
Stamp duty (41) -
Other (2) (50)
531 (26)
4. FINANCE COST
Interest 1 301 (18%) 1 579
Amortisation of capitalised financing fees 89 81
Loan breakage charges 54 -
Preference share dividend 59 -
Accelerated recognition of capitalised financing fees 163 -
Derecognition of Swiss interest rate swap 3 531 -
Less: amounts included in the cost of qualifying assets (31) (18)
5 166 1 642
5. COMMITMENTS
Capital commitments 2 766 2 161
Southern Africa 2 050 1 427
Middle East 27 31
Switzerland 689 703
6. EXCHANGE RATES
R R
Average Swiss franc (ZAR/CHF) 9.05 8.45
Closing Swiss franc (ZAR/CHF) 9.69 8.50
Average UAE dirham (ZAR/AED) 2.32 2.03
Closing UAE dirham (ZAR/AED) 2.51 2.09
7. NUMBER OF SHARES ISSUED No. ('000) No. ('000)
Number of ordinary shares in issue 826 957 652 315
Number of ordinary shares held in treasury (21 281) (23 758)
Number of ordinary shares in issue net of
treasury shares 805 676 628 557
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March
2013 2012
R'm R'm
(Loss)/profit for the year (743) 1 484
Other comprehensive income
Items that may be reclassified to the income statement
Currency translation differences 1 705 1 405
Fair value adjustment to cash flow hedges (net of tax) 3 203 (1 126)
Items that may not be reclassified to the income statement
Actuarial gains and losses (net of tax) 201 (403)
Other comprehensive income/(loss), net of tax 5 109 (124)
Total comprehensive income for the year 4 366 1 360
Attributable to:
Equity holders of the Company 4 064 1 035
Non-controlling interests 302 325
4 366 1 360
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March
2013 2012
R'm R'm
ASSETS
Non-current assets 47 875 42 033
Property, equipment and vehicles 40 233 34 808
Intangible assets 7 279 6 350
Investments in associates 2 1
Other investments and loans 17 662
Derivative financial instruments 100 -
Deferred income tax assets 244 212
Current assets 8 899 8 162
Inventories 684 582
Trade and other receivables 5 466 4 815
Current income tax assets 44 4
Derivative financial instruments - 24
Other investments and loans - 128
Investment in money market funds - 510
Cash and cash equivalents 2 705 2 099
Total assets 56 774 50 195
EQUITY AND LIABILITIES
Total equity 18 175 11 404
Share capital and reserves 17 379 10 116
Non-controlling interests 796 1 288
LIABILITIES
Non-current liabilities 32 537 32 969
Borrowings 25 359 22 864
Deferred income tax liabilities 6 227 5 303
Retirement benefit obligations 501 823
Provisions 365 240
Derivative financial instruments 85 3 739
Current liabilities 6 062 5 822
Trade and other payables 4 135 3 460
Borrowings 1 011 1 930
Provisions 322 121
Derivative financial instruments 65 -
Current income tax liabilities 529 311
Total liabilities 38 599 38 791
Total equity and liabilities 56 774 50 195
Net asset value per ordinary share - cents 2 157.1 1 609.4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March
2013 2012
R'm R'm
Opening balance 11 404 10 560
Shares issued 5 000 -
Share issue costs (104) -
Movement in shares held in treasury 13 19
Movement in share-based payment reserve 5 6
Capital contributed by non-controlling interests - 3
Non-controlling interests acquired by the Group (588) -
Total comprehensive income for the period 4 366 1 360
Transactions with non-controlling shareholders (1 268) 3
Gain on sale of nil-paid letters of allocation 41 -
Distributed to shareholders (488) (436)
Distributed to non-controlling interests (206) (111)
Closing balance 18 175 11 404
Comprising
Share capital 11 027 65
Share premium* - 6 066
Treasury shares (256) (269)
Share-based payment reserve 140 135
Foreign currency translation reserve 4 833 3 171
Hedge reserve (20) (3 223)
Retained earnings 1 655 4 171
Shareholders' equity 17 379 10 116
Non-controlling interests 796 1 288
Total equity 18 175 11 404
*During the year the par value ordinary shares were converted into no par value ordinary
shares and consequently the share premium balance was transferred to the ordinary share
account as stated capital.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 March
2013 2012
R'm R'm
Cash flow from operating activities 3 554 2 216
Cash generated from operations 5 577 4 266
Net finance cost (1 509) (1 525)
Taxation paid (514) (525)
Cash flow from investment activities (537) (1 055)
Investment to maintain operations (792) (731)
Investment to expand operations (1 249) (742)
Proceeds on disposal of property, equipment and vehicles 52 23
Proceeds from derivative financial instruments 25 24
Insurance proceeds - 27
Proceeds from other investments and loans 4 5
Purchases of FVTPL financial assets - (144)
Proceeds from FVTPL financial assets 868 134
Proceeds from money market funds 1 200 823
Purchases of money market funds (657) (507)
Interest received 12 33
Cash flow from financing activities (2 839) (735)
Proceeds from shares issued 5 000 -
Share issue costs (104) -
Distributions to shareholders (488) (436)
Distributions to non-controlling interests (206) (111)
Proceeds from borrowings 21 996 (214)
Repayment of borrowings (24 941) -
Settlement of interest rate swap (1 633) -
Proceeds from disposal of treasury shares 27 28
Treasury shares purchased (16) (9)
Contributions by non-controlling interests - 7
Acquisition of non-controlling interests (1 971) -
Refinancing transaction costs (615) -
Proceeds on disposal of nil-paid letters of allocation 41 -
Proceeds on disposal of non-controlling interest 71 -
Net movement in cash, cash equivalents and bank overdrafts 178 426
Opening balance of cash, cash equivalents and bank overdrafts 1 981 1 447
Exchange rate fluctuations on foreign cash 541 108
Closing balance of cash, cash equivalents and bank overdrafts 2 700 1 981
Cash and cash equivalents 2 705 2 099
Bank overdrafts (5) (118)
2 700 1 981
SEGMENTAL REPORT
for the year ended 31 March
2013 2012
R'm R'm
Revenue
Southern Africa 10 185 9 423
Middle East 2 485 1 831
Switzerland 11 892 10 732
24 562 21 986
EBITDA
Southern Africa 2 169 1 957
Middle East 495 348
Switzerland 2 599 2 364
5 263 4 669
Operating profit
Southern Africa 1 887 1 701
Middle East 382 250
Switzerland 1 995 1 808
4 264 3 759
The consolidation of the governance functions within the Group has resulted in a change
in the composition of the reportable segments. The prior year has been restated
accordingly.
Signed on behalf of the board of directors:
E DE LA H HERTZOG D P MEINTJES
Chairman Chief Executive Officer
Stellenbosch, 22 May 2013
DIRECTORS
Dr E de la H Hertzog (Chairman), DP Meintjes (Chief Executive Officer),
CI Tingle (Chief Financial Officer), JJ Durand, JA Grieve (Scottish),
Prof Dr RE Leu (Swiss), Dr MK Makaba, N Mandela, TD Petersen,
KHS Pretorius, AA Raath, DK Smith, PJ Uys,
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)
Date: 22/05/2013 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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