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Unaudited interim group results for the six months ended 30 September 2013 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")
UNAUDITED INTERIM GROUP RESULTS OF MEDICLINIC INTERNATIONAL LIMITED AND ITS SUBSIDIARIES FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013
AND DECLARATION OF CASH DIVIDEND
SALIENT FEATURES
- Strong growth in patient admissions and bed-days sold
- Positive effects of Group refinancing as well as acquisition of minority interests in Mediclinic Middle East completed in October 2012
- Basic normalised headline earnings per share increased by 58% to 152.0 cents
- Interim dividend per ordinary share increased to 28.0 cents (2012: 25.3 cents)
Danie Meintjes, CEO of Mediclinic International commented:
"We note continued positive contributions from all our operating platforms during the six months under review. Our steady earnings
momentum is supported by general increases in bed-days sold, average income per bed-day, number of patients admitted and the average length
of stay, as acuity levels continue to rise.
We have benefited from our refinanced capital structure and the acquisition of minorities in Mediclinic Middle East, as we continue to grow
our business. Hirslanden has made a particularly pleasing contribution in this period and provides further testimony to the resilience of our
revenue and earnings streams across our diverse platforms in Southern Africa, Switzerland and the United Arab Emirates."
Enquiries:
Mediclinic International: T +27 21 809 6500
Danie Meintjes, CEO
Craig Tingle, CFO
Gert Hattingh, Company Secretary
CapitalVoice: T +27 82 921 9110
Johannes van Niekerk
TRADING RESULTS
We are pleased to report that the Group has maintained its consistent growth pattern.
Group normalised revenue increased by 21% to R14 128m (2012: R11 672m) for the period under review. Normalised operating profit before
interest, tax, depreciation and amortisation ("normalised EBITDA") is 17% higher at R2 829m (2012: R2 418m). The leveraging effect of the
Groups capital structure, together with the positive effects of the Group refinancing and acquisition of the minority interests in
Mediclinic Middle East completed in October 2012, augmented the Groups financial performance and resulted in basic normalised headline
earnings per share growth of 58% to 152.0 cents (2012: 96.1 cents).
The Groups normalised EBITDA margin decreased from 20.7% to 20.0% for the period under review.
The current Group results include a one-off past-service cost credit of R215m (R172m after tax) arising in the main Hirslanden pension
fund. The comparative results included a one-off net unrealised gain of R185m on foreign exchange forward contracts reported under Other
gains and losses in the consolidated income statement.
Including these one-off items, headline earnings increased by 67% to R1 401m (2012: R840m) and basic headline earnings per ordinary share
increased by 40% to 173.2 cents (2012: 123.3 cents).
The average ZAR/Swiss franc (CHF) exchange rate was R10.40 compared to R8.63 for the comparative period and the average ZAR/UAE dirham (AED)
exchange rate was R2.65 compared to R2.23 for the comparative period. These movements in the exchange rates had a significant positive
effect on the reported results, as detailed under Hirslandens and Mediclinic Middle Easts financial performance sections.
Finance cost
Finance cost includes amortisation of capitalised financing expenses of R63m (2012: R32m).
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 107% (2012: 105%) of normalised EBITDA into cash generated from operations.
Cash and cash equivalents decreased from R2 705m at 31 March 2013 to R2 633m at 30 September 2013.
Interest-bearing borrowings
Interest-bearing borrowings increased from R26 362m at 31 March 2013 to R28 675m at 30 September 2013, mainly as a result of the change in
the closing ZAR/CHF exchange rate. The closing ZAR/CHF exchange rate moved from R9.69 at 31 March 2013 to R11.12 at 30 September 2013. It is
important to note that the foreign debt of the Groups Swiss and Middle Eastern operations, amounting to R22 887m, 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 R40 137m at 31 March 2013 to R45 941m at 30 September 2013 and intangible assets increased
from R7 279m at 31 March 2013 to R8 307m at 30 September 2013. These increases are mainly as a result of the change in the closing ZAR/CHF
and the ZAR/AED exchange rates, as mentioned above.
Weighted average number of shares adjustment
The weighted average number of shares was adjusted in accordance with IAS 33 paragraph 26 as a result of the rights issue completed in
October 2012.
Restatement of comparative numbers
The impacts of the application of the revised IAS 19 standard and the new IFRS 11 standard are as follows:
- The revised IAS 19 standard deals with the accounting for defined benefit obligations and plan assets. Previously the net interest income
on Hirslandens plan assets was recognised in profit or loss based on the expected return on plan assets. The net interest rate on plan
assets is no longer calculated based on expected return but rather equal to the discount rate used for determining retirement benefit
obligations.
- The new IFRS 11 standard deals with the accounting of joint ventures. Previously Wits University Donald Gordon Medical Centre (Pty) Ltd
was proportionately consolidated whereas, under IFRS 11, the company is now equity accounted.
Refer to Changes to accounting policy note for details of the restated comparative numbers.
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 11% to R5 638m (2012: R5 068m) for the period under review. Normalised EBITDA
was 12% higher at R1 214m (2012: R1 085m).
After incurring depreciation charges of R151m (2012: R128m), net finance charges of R219m (2012: R151m), taxation of R253m (2012: R222m)
and deducting the interest of minority shareholders in the attributable income of the Southern African group amounting to R101m (2012: R82m),
the Southern African operations contributed R490m (2012: R502m) to the normalised attributable income of the Group.
Business performance
The 11% revenue growth was driven by a 5.8% increase in bed-days sold and a 5.1% increase in the average income per bed-day. The number of
patients admitted increased by 4.3%, while the average length of stay increased by 1.4%.
The normalised EBITDA margin of the Southern African operations increased from 21.4% to 21.5%.
Mediclinic Southern Africas cash flow continued to be strong as it converted 109% (2012: 112%) of normalised EBITDA into cash generated
from operations.
Cash and cash equivalents decreased from R1 305m at 31 March 2013 to R1 159m at 30 September 2013.
Interest-bearing borrowings decreased from R5 809m at 31 March 2013 to R5 789m at 30 September 2013.
Projects and capital expenditure
During the reporting period the Southern African operations spent R326m (2012: R242m) on capital projects and new equipment to enhance its
business and R117m (2012: R124m) on the replacement of existing equipment. In addition, R149m (2012: R134m) was spent on the repair
and maintenance of property and equipment, charged through the income statement. For the current 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 7 436 to 7 493 during the period under review.
During the past six months a number of building projects were completed at various hospitals, creating 57 additional beds as well as new
consulting rooms, a cardiology unit and involving a number of facility upgrades.
Building projects in progress, which should be completed during the next six months, will add 107 additional beds as well as new consulting
rooms and a number of facility upgrades.
The number of licensed beds is expected to increase from 7 493 to 7 600 during the next six months.
Several building projects in progress should be completed during the 2015 financial year of which the establishment of the new Mediclinic
Centurion (176 beds) is the most significant development.
Regulatory environment
Within the broader health sector context, the government remains committed to achieving universal coverage through a National Health
Insurance (NHI) system. Mediclinic will engage with both government and other stakeholders on the most appropriate mechanisms to pursue
universal coverage in the South African context, once the White Paper on the NHI is published by government.
The Competition Commission is set to initiate an inquiry into the private healthcare sector within the next few months. Mediclinic has met
with the Commissions representatives and provided input on the draft Terms of Reference. We await the final terms.
OPERATIONS IN SWITZERLAND
HIRSLANDEN
Financial performance
Hirslandens normalised revenue increased by 29% (7% at constant foreign exchange rates) to R7 025m (CHF675m) (2012: R5 446m (CHF631m))
for the period under review. Normalised EBITDA was 25% higher (4% higher at constant foreign exchange rates) at R1 360m (CHF131m)
(2012: R1 088m (CHF126m)).
After incurring depreciation charges of R357m (CHF34m) (2012: R285m (CHF33m)), net finance charges of R397m (CHF38m) (2012: R625m (CHF72m))
and tax of R97m (CHF9m) (2012: R122m (CHF14m)), Hirslanden contributed R509m (CHF50m) (2012: R56m (CHF7m)) to the attributable income of
the Group.
Business performance
The 7% normalised revenue growth was driven by inpatient admissions increasing by 5.4%, while the average length of stay increased slightly
and the average revenue per case increased by 2.0%, mainly due to higher acuity levels.
The normalised EBITDA margin of Hirslanden decreased from 20.0% to 19.4%.
Hirslanden converted 115% (2012: 99%) of normalised EBITDA into cash generated from operations.
Cash and cash equivalents increased from R536m (CHF55m) at 31 March 2013 to R611m (CHF55m) at 30 September 2013, due to the increase in the
closing ZAR/CHF exchange rate.
Interest-bearing borrowings reported in ZAR increased from R18 997m (CHF1 960m) at 31 March 2013 to R21 330m (CHF1 918m) at 30 September 2013,
due to the increase in the closing ZAR/CHF exchange rate.
Projects and capital expenditure
During the reporting period Hirslanden invested R397m (CHF38m) (2012: R243m (CHF28m)) in capital projects and new equipment to enhance its
business and R283m (CHF27m) (2012: R160m (CHF19m)) on the replacement of existing equipment. In addition, R184m (CHF18m)
(2012: R138m (CHF16m)) 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 from 1 487 to 1 509 during the period under review, mainly as a result of the
partial opening of the new wing at Klinik Hirslanden.
Building projects completed during the period under review were:
- The new wing at Klinik Hirslanden in Zurich formally opened during May 2013. The additional beds will be commissioned in a phased approach
in order to balance supply and demand over time. It is planned that all additional beds will be in operation at financial year end.
- In August 2013 Klinik Stephanshorn completed the expansion of the intensive care unit (ICU) and Klinik Beau-Site opened its health centre
at the train station in Berne.
Investments in medical technology during the period under review were:
- In July 2013 a cardiac centre, together with a hybrid operating theatre, was commissioned at Klinik Hirslanden.
- At Salem Spital, Clinique Cecil, Klinik Im Park and Klinik Stephanshorn new MRI machines were installed.
- At Klinik Aarau and Klinik Im Park new CT scanners were installed.
The major ongoing expansion projects are as follows:
- The radiotherapy department at Spital Männedorf is expected to be commissioned in early 2014.
- An additional cardiac catheterisation laboratory will be operational in November 2014 at Klinik Beau Site.
The number of operational beds is expected to increase from 1 509 to 1 536 during the next six months.
Regulatory environment
From 1 July 2013 the cantons have the discretion to reintroduce the moratorium on the licensing of doctors in the outpatient sector.
This moratorium will apply to 30 June 2016 and is not expected to have a major impact on Hirslanden.
Developments in regulations pertaining to the provision of highly specialised medicine are carefully monitored and appropriate steps will
be taken to protect our position.
OPERATIONS IN UNITED ARAB EMIRATES
MEDICLINIC MIDDLE EAST
Financial performance
Mediclinic Middle Easts normalised revenue increased by 27% (6% at constant foreign exchange rates) to R1 465m (AED553m) (2012: R1 158m
(AED519m)) for the period under review. Normalised EBITDA increased by 4% (decreased by 13% at constant exchange rates) to R255m (AED96m)
(2012: R245m (AED110m)).
After incurring depreciation charges of R67m (AED25m) (2012: R52m (AED23m)), net finance charges of R48m (AED18m) (2012: R17m (AED7m)) and
the sharing of minority shareholders in the attributable income of Mediclinic Middle East in the comparative period of R87m (AED39m),
Mediclinic Middle East contributed R140m (AED53m) (2012: R89m (AED41m)) to the attributable income of the Group.
Business performance
The 6% revenue growth was driven by inpatient hospital admissions increasing by 1%, while hospital outpatient consultations and visits to
the emergency units increased by 1%. Clinic outpatient consultations increased by 3%.
The normalised EBITDA margin of Mediclinic Middle East decreased from 21.2% to 17.4%, mainly due to the temporary revenue impact of doctor
turnover at Mediclinic Welcare Hospital and the start-up costs of the new clinic.
Mediclinic Middle East converted 50% (2012: 99%) of normalised EBITDA into cash generated from operations, impacted by teething problems
with the recent introduction of the national e-claims system.
Cash and cash equivalents decreased from R629m (AED250m) at 31 March 2013 to R586m (AED214m) at 30 September 2013. Compared to 31 March 2013,
the reported interest-bearing borrowings balance of R1 556m (AED568m) (2012: AED 619m) remained consistent, mainly because of the increase
in the closing ZAR/AED exchange rate.
Projects and capital expenditure
During the reporting period Mediclinic Middle East invested R14m (AED5m) (2012: R21m (AED9m)) in capital projects and new equipment to
enhance its business, apart from R27m (AED10m) (2012: R15m (AED7m)) on the replacement of existing equipment. In addition, R21m (AED8m)
(2012: R17m (AED8m)) was spent on the repair and maintenance of property and equipment, charged through the income statement. For the current
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 remained at 382, which includes 27 day beds available at the clinics.
Ongoing capital projects:
- The expected completion date of the North Wing expansion project of Mediclinic City Hospital is in the second quarter of 2015. As previously
reported, this project will include a state-of-the-art oncology unit developed in association with Hirslanden and create capacity for the
extension of Mediclinic City Hospital facilities.
- Mediclinic Middle Easts first clinic in Abu Dhabi, Mediclinic Corniche, is expected to open in February 2014.
CHANGES TO THE BOARD OF DIRECTORS
During the period under review, Mr Pieter Uys, an Investment Manager at Remgro, was appointed as a non-executive director of the Company with
effect from 1 April 2013, as previously reported.
PROSPECTS
We continue to invest for growth in anticipation of the continuing increase in demand for cost-effective quality healthcare.
BASIS OF PREPARATION
The accounting policies applied in the preparation of these summarised 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 financial statements for the year ended 31 March 2013, except for the adoption of the new and revised standards. The adoption
of the IFRS 11 Joint Arrangements and the revised IAS 19 Employee Benefits required a restatement of the comparative figures. Refer to the
section Restatement of comparative numbers and the Changes in accounting policy note for further detail. The summarised 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, as amended, and the Listings Requirements of the JSE Limited. The preparation of the summarised Group interim financial statements
was supervised by the Chief Financial Officer, Mr CI Tingle (CA(SA)).
CASH DIVIDEND TO SHAREHOLDERS
Notice is hereby given that the directors have declared an interim gross cash dividend in respect of the period under review of 28.0 cents
(2012: 25.3 cents) (23.80 cents (2012: 21.5050 cents) net of dividend withholding tax) per ordinary share. The dividend declared increased
by 11% 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 Friday, 29 November 2013
First date of trading ex dividend Monday, 2 December 2013
Record date Friday, 6 December 2013
Payment date Monday, 9 December 2013
Share certificates may not be dematerialised or rematerialised from Monday, 2 December 2013 to Friday, 6 December 2013, both days inclusive.
CONSOLIDATED ABRIDGED STATEMENT OF FINANCIAL POSITION
Unaudited Audited
Unaudited as at as at
as at 30/9/2012 31/3/2013
30/9/2013 (restated) (restated)
R'm R'm R'm
ASSETS
Non-current assets 54 876 43 367 47 885
Property, equipment and vehicles 45 941 36 400 40 137
Intangible assets 8 307 6 613 7 279
Investments in associates 3 2
Investments in joint venture 67 59 65
Retirement benefit assets 25
Other investments and loans 65 61 63
Derivative financial instruments 235 100
Deferred income tax assets 233 234 239
Current assets 9 142 9 150 8 857
Inventories 803 608 681
Trade and other receivables 5 670 5 130 5 427
Current income tax assets 36 15 44
Derivative financial instruments 185
Other investments and loans 28
Cash and cash equivalents 2 633 3 184 2 705
Total assets 64 018 52 517 56 742
EQUITY AND LIABILITIES
Total equity 22 026 12 372 18 002
Share capital and reserves 21 208 11 060 17 206
Non-controlling interests 818 1 312 796
LIABILITIES
Non-current liabilities 35 239 33 814 32 692
Borrowings 27 135 23 231 25 351
Deferred income tax liabilities 7 233 5 523 6 182
Retirement benefit obligations 329 981 709
Provisions 479 265 365
Derivative financial instruments 63 3 814 85
Current liabilities 6 753 6 331 6 048
Trade and other payables 4 370 3 789 4 121
Borrowings 1 540 1 911 1 011
Provisions 288 170 322
Derivative financial instruments 16 66 65
Current income tax liabilities 539 395 529
Total liabilities 41 992 40 145 38 740
Total equity and liabilities 64 018 52 517 56 742
Net asset value per ordinary share cents 2 619.9 1 754.7 2 129.8
CONSOLIDATED ABRIDGED INCOME STATEMENT
Unaudited Audited
Unaudited 6 months to Year to
6 months to 30/9/2012 31/3/2013
30/9/2013 Change (restated) (restated)
Notes R'm % R'm R'm
Revenue 1 14 128 21% 11 672 24 436
Cost of sales (8 050) (6 742) (13 881)
Administration and other operating expenses (3 034) (2 512) (5 428)
Operating profit before depreciation (EBITDA) 2 3 044 26% 2 418 5 127
Depreciation and amortisation (574) (465) (994)
Operating profit 2 470 1 953 4 133
Other gains and losses 3 183 531
Income from associates 2
Income from joint venture 3
Finance income 4 38 42 69
Finance cost (610) (820) (5 166)
Profit before tax 1 898 1 358 (428)
Income tax expense (393) (345) (418)
Profit/(loss) for the period 1 505 1 013 (846)
Attributable to:
Equity holders of the Company 1 404 843 (1 105)
Non-controlling interests 101 170 259
1 505 1 013 (846)
PER SHARE PERFORMANCE Number Number Number
000 000 000
Weighted average number of shares
Before rights offer n/a 629 296 714 856
Adjustment for rights offer (IAS 33 para 26) n/a 51 872 27 002
Weighted average number of ordinary shares in issue 808 868 681 168 741 858
Diluted weighted average number of shares
Before rights offer n/a 651 986 735 860
Adjustment for rights offer (IAS 33 para 26) n/a 51 872 27 002
Diluted weighted average number of ordinary shares in issue 826 957 703 858 762 862
Earnings per ordinary share cents cents cents
Basic earnings/(loss) basis 173.5 40% 123.7 (148.9)
Diluted earnings/(loss) basis 169.7 119.8 (144.8)
Basic headline earnings/(loss) basis 173.2 40% 123.3 (149.5)
Diluted headline earnings/(loss) basis 169.4 119.3 (145.4)
Basic normalised headline earnings basis 152.0 58% 96.1 259.3
Normalised diluted headline earnings basis 148.6 93.0 252.2
Dividends per ordinary share
interim 28.0 25.3 25.3
final n/a n/a 60.5
85.8
EARNINGS RECONCILIATION R'm R'm R'm
Profit attributable to shareholders 1 404 843 (1 105)
Re-measurements for headline earnings (4) (4) (6)
Profit on sale of property, equipment and vehicles (4) (4) (6)
Income tax effects 1 1 1
Headline earnings/(loss) 1 401 67% 840 (1 110)
Re-measurements for normalised headline earnings (215) (185) 3 331
Group one-off refinancing charges (185) 3 215
Pre-acquisition tariff provision 151
Past service cost (215) (35)
Income tax effects 43 (297)
Normalised headline earnings 1 229 88% 655 1 924
CONSOLIDATED ABRIDGED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Audited
Unaudited 6 months to Year to
6 months to 30/9/2012 31/3/2013
30/9/2013 Change (restated) (restated)
R'm % R'm R'm
Profit/(loss) for the period 1 505 49% 1 013 (846)
Other comprehensive income
Items that may be reclassified to the income statement
Currency translation differences 2 712 469 1 699
Fair value adjustment to cash flow hedges (net of tax) 139 12 3 203
Items that may not be reclassified to the income statement
Actuarial gains and losses (net of tax) 201 (170) 54
Other comprehensive income, net of tax 3 052 311 4 956
Total comprehensive income for the period 4 557 1 324 4 110
Attributable to:
Equity holders of the Company 4 455 1 112 3 808
Non-controlling interests 102 212 302
4 557 1 324 4 110
CONSOLIDATED ABRIDGED STATEMENT OF CHANGES IN EQUITY
Unaudited Audited
Unaudited 6 months to Year to
6 months to 30/9/2012 31/3/2013
30/9/2013 (restated) (restated)
R'm R'm R'm
Opening balance 18 002 11 487 11 487
Shares issued 5 000
Share issue costs (104)
Movement in shares held in treasury 3 9 13
Movement in share-based payment reserve 10 3 5
Non-controlling interests acquired by the Group (9) (588)
Total comprehensive income for the period 4 557 1 324 4 110
Transactions with non-controlling shareholders (16) (1 268)
Gain on sale of nil-paid letters of allocation 42 41
Distributed to shareholders (467) (288) (488)
Distributed to non-controlling interests (79) (180) (206)
Closing balance 22 026 12 372 18 002
Comprising
Share capital 11 027 65 11 027
Share premium 6 066
Treasury shares (253) (261) (256)
Share-based payment reserve 150 138 140
Foreign currency translation reserve 7 539 3 598 4 827
Hedge reserve 119 (3 211) (20)
Retained earnings 2 626 4 665 1 488
Shareholders equity 21 208 11 060 17 206
Non-controlling interests 818 1 312 796
Total equity 22 026 12 372 18 002
CONSOLIDATED ABRIDGED STATEMENT OF CASH FLOWS
Unaudited Audited
Unaudited 6 months to Year to
6 months to 30/9/2012 31/3/2013
30/9/2013 (restated) (restated)
R'm R'm R'm
Cash flow from operating activities 2 134 1 501 3 549
Cash generated from operations 3 024 2 536 5 571
Net finance cost (494) (757) (1 508)
Taxation paid (396) (278) (514)
Cash flow from investment activities (1 148) 554 (527)
Investment to maintain operations (426) (299) (792)
Investment to expand operations (737) (508) (1 230)
Proceeds on disposal of property, equipment and vehicles 17 8 52
Proceeds from derivative financial instruments 24 25
Proceeds from other investments and loans 4 4
Investment in joint venture (2) (6) (8)
Amounts advanced to joint venture (1)
Proceeds from FVTPL financial assets 802 868
Proceeds from money market funds 1 144 1 200
Purchases of money market funds (627) (657)
Interest received 12 12
Cash flow from financing activities (1 225) (983) (2 837)
Proceeds from shares issued 5 000
Share issue costs (104)
Distributions to shareholders (467) (288) (488)
Distributions to non-controlling interests (79) (180) (206)
Proceeds from borrowings 206 21 996
Repayment of borrowings (888) (540) (24 939)
Settlement of interest rate swap (1 633)
Proceeds from disposal of treasury shares 3 65 27
Treasury shares purchased (14) (16)
Acquisition of non-controlling interests (26) (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 (239) 1 072 185
Opening balance of cash, cash equivalents and bank overdrafts 2 705 1 979 1 979
Exchange rate fluctuations on foreign cash 167 46 541
Closing balance of cash, cash equivalents and bank overdrafts 2 633 3 097 2 705
Cash and cash equivalents 2 633 3 184 2 705
Bank overdrafts (87)
2 633 3 097 2 705
ABRIDGED SEGMENTAL REPORT
Unaudited Audited
Unaudited 6 months to Year to
6 months to 30/9/2012 31/3/2013
30/9/2013 (restated) (restated)
R'm R'm R'm
Revenue
Southern Africa 5 638 5 068 10 059
Middle East 1 465 1 158 2 485
Switzerland 7 025 5 446 11 892
14 128 11 672 24 436
EBITDA
Southern Africa 1 214 1 085 2 163
Middle East 255 245 495
Switzerland 1 575 1 088 2 469
3 044 2 418 5 127
Operating profit
Southern Africa 1 063 957 1 886
Middle East 188 193 382
Switzerland 1 219 803 1 865
2 470 1 953 4 133
NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
Unaudited Audited
Unaudited 6 months to Year to
6 months to 30/9/2012 31/3/2013
30/9/2013 Change (restated) (restated)
R'm % R'm R'm
1 REVENUE RECONCILIATION
Revenue 14 128 11 672 24 436
Adjusted for:
Pre-acquisition tariff provision 151
Normalised revenue 14 128 21% 11 672 24 587
2 EBITDA RECONCILIATION
Operating profit before depreciation (EBITDA) 3 044 2 418 5 127
Adjusted for:
Past service cost (215) (40)
Pre-acquisition tariff provision 173
Normalised EBITDA 2 829 17% 2 418 5 260
3 OTHER GAINS AND LOSSES
Realised gains on forward contracts 574
Unrealised gains on forward contracts 185
Stamp duty (41)
Other (2) (2)
183 531
4 FINANCE COST
Interest 496 (38%) 803 1 301
Amortisation of capitalised financing fees 63 32 89
Loan breakage charges 54
Preference share dividend 62 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 (11) (15) (31)
610 820 5 166
5 COMMITMENTS
Capital commitments 2 067 1 698 2 766
Southern Africa 1 640 1 086 2 050
Middle East 17 31 27
Switzerland 410 581 689
6 EXCHANGE RATES R R R
Average Swiss franc (ZAR/CHF) 10.40 8.63 9.05
Closing Swiss franc (ZAR/CHF) 11.12 8.85 9.69
Average UAE dirham (ZAR/AED) 2.65 2.23 2.32
Closing UAE dirham (ZAR/AED) 2.74 2.26 2.51
7 NUMBER OF SHARES ISSUED Number Number Number
'000 '000 '000
Ordinary shares in issue 826 957 652 315 826 957
Ordinary shares held in treasury (17 474) (22 023) (19 078)
Ordinary shares in issue net of treasury shares 809 483 630 292 807 879
CHANGES IN ACCOUNTING POLICY
Impact on profit/(loss) for the period of the application of new and revised standards
For the
period For the
ended period
30/9/2012 ended
as previously IFRS 11 IAS 19 30/9/2012
reported adjustments adjustments (restated)
R'm R'm R'm R'm
Revenue 11 734 (62) - 11 672
Cost of sales (6 724) 30 (48) (6 742)
Administration and other operating expenses (2 524) 28 (16) (2 512)
Depreciation and amortisation (468) 3 - (465)
Income from joint venture - -
Finance income 41 1 - 42
Income tax expense (358) - 13 (345)
Profit for the year 1 064 (51) 1 013
Decrease in profit for the year attributable to:
Equity holders of the Company 894 (51) 843
Impact on other comprehensive income for the period of the
application of the new and revised standards
Actuarial gains and losses (255) 85 (170)
Currency translation differences 465 4 469
Other comprehensive income for the year, net of tax 222 89 311
Decrease in total comprehensive income for the year attributable to:
Equity holders of the Company 1 074 38 1 112
For the
year For the
ended year
31/3/2013 ended
as previously IFRS 11 IAS 19 31/3/2013
reported adjustments adjustments (restated)
R'm R'm R'm R'm
Revenue 24 562 (126) - 24 436
Cost of sales (13 845) 59 (95) (13 881)
Administration and other operating expenses (5 454) 61 (35) (5 428)
Depreciation and amortisation (999) 5 - (994)
Income from joint venture 3 - 3
Finance income 68 1 - 69
Income tax expense (442) (3) 27 (418)
Loss for the year (743) (103) (846)
Increase in loss for the year attributable to:
Equity holders of the Company (1 002) (103) (1 105)
Impact on other comprehensive income for the year of the
application of the new and revised standards
Actuarial gains and losses 201 (147) 54
Currency translation differences 1 705 (6) 1 699
Other comprehensive income for the year, net of tax 5 109 (153) 4 956
Decrease in total comprehensive income for the year attributable to:
Equity holders of the Company 4 064 (256) 3 808
As at
30/9/2012
as As at
previously IFRS 11 IAS 19 30/9/2012
Impact on assets, liabilities and equity on the application of the reported adjustments adjustments (restated)
new and revised standards R'm R'm R'm R'm
Property, equipment and vehicles 36 484 (84) - 36 400
Intangible assets 6 614 (1) - 6 613
Investment in joint venture 59 - 59
Other investments and loans 15 46 - 61
Deferred income tax assets 236 (2) - 234
Inventories 611 (3) - 608
Trade and other receivables 5 166 (36) - 5 130
Cash and cash equivalents 3 191 (7) - 3 184
Borrowings (non-current) (23 235) 4 - (23 231)
Deferred income tax liabilities (5 492) - (31) (5 523)
Retirement benefit obligations (1 143) 10 152 (981)
Trade and other payables (3 803) 14 - (3 789)
Total effect on net assets 18 644 121 18 765
Retained earnings (4 548) (4 548)
Opening balance adjustments (83) (83)
Adjustments for the period (34) (34)
(4 665)
Other reserves (Foreign currency translation reserve) (3 594) - (4) (3 598)
Total effect on equity (8 142) (121) (8 263)
As at
31/3/2013
as As at
previously IFRS 11 IAS 19 31/3/2013
Impact on assets, liabilities and equity as at 31 March 2013 reported adjustments adjustments (restated)
of the application of the new and revised standards R'm R'm R'm R'm
Property, equipment and vehicles 40 233 (96) - 40 137
Intangible assets 7 279 - 7 279
Investment in joint venture 65 - 65
Other investments and loans 17 46 - 63
Deferred income tax assets 244 (5) - 239
Inventories 684 (3) - 681
Trade and other receivables 5 466 (39) - 5 427
Borrowings (non-current) (25 359) 8 - (25 351)
Deferred income tax liabilities (6 227) - 45 (6 182)
Retirement benefit obligations (501) 10 (218) (709)
Trade and other payables (4 135) 14 (4 121)
Total effect on net assets 17 701 (173) 17 528
Retained earnings (1 655) (1 655)
Opening balance adjustments (83) (83)
Adjustments for the period 250 250
(1 488)
Other reserves (Foreign currency translation reserve) (4 833) - 6 (4 827)
Total effect on equity (6 488) 173 (6 315)
Signed on behalf of the board of directors:
E DE LA H HERTZOG DP MEINTJES
Chairman Chief Executive Officer
Stellenbosch
6 November 2013
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, 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: 06/11/2013 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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