MEDICLINIC INTERNATIONAL PLC - 2021 Half-Year Trading Update

2021 Half-Year Trading Update

Mediclinic International plc
(Incorporated in England and Wales)
Company Number: 08338604
LSE Share Code: MDC
JSE Share Code: MEI
NSX Share Code: MEP
LEI: 2138002S5BSBIZTD5I60
("Mediclinic", the "Company", or the "Group")

15 October 2020

2021 Half-Year Trading Update

Mediclinic International plc, the diversified international private healthcare services group,
provides the following trading update ahead of the publication of the Groups results for the six
months ended 30 September 2020 ("1H21"), currently scheduled for 12 November 2020.

   - Robust first-half operating performance despite, as previously reported,
     significant impact in April from COVID-19-related measures
   - Good rebound in trading from May onwards
   - Continued strong financial position and liquidity
   - Cautious on full impact of COVID-19 pandemic and its economic aftermath on
     second-half Group operating performance
   - Group remains focused on strategy execution, operational delivery and
     provision of critical healthcare services

Commenting today, Dr Ronnie van der Merwe, Group Chief Executive Officer, said:
"Mediclinic is expertly navigating one of the most challenging periods for healthcare globally. I
commend the dedication and commitment of our medical professionals and staff during this
extremely challenging period. Our skilled frontline teams have and continue to provide
uninterrupted critical care to the communities we serve and deserve all our gratitude.

The Group delivered a robust first-half operating performance maintaining operational agility
and financial strength while continuing to execute on our strategy. We have seen a good
rebound in trading since May 2020, particularly in Switzerland and the United Arab Emirates,
as the initial peak of the pandemic passed. However, we remain suitably cautious in the midst
of uncertainty as to the severity, duration and full impact of the continuing COVID-19 pandemic,
as well as its economic aftermath."

The information on which this update is based represents the Groups latest financial estimates
and has not been reviewed and reported on by Mediclinics external auditors. All financial
figures, unless explicitly stated, are adjusted1. The Group has adopted the IFRS 162 accounting
standard from 1 April 2019.

Group Overview
Mediclinic, as an international healthcare services provider, has been unwavering in providing
its support to and collaborating with the relevant health authorities in tackling the COVID-19
pandemic (the pandemic). The Group delivered a robust first-half operating performance,
underpinned by demand for its healthcare services and supplemented by an expanded offering
aimed at meeting patients needs and changing behaviours. The Group invested in a number
of initiatives to help its employees, supporting doctors and patients deal more effectively with                                                                                              
the crisis. In line with the Groups digital transformation strategy, all divisions advanced the use
of telemedicine technologies to support patients remote access to care.

As previously disclosed, revenue and profitability were significantly impacted in April 2020 by
the sudden onset of COVID-19-related lockdown measures and the suspension of non-urgent
elective surgical procedures, with the latter aimed at safeguarding hospital capacity and
resources. From May 2020 onwards, restrictions across Mediclinics markets eased, enabling
the safe reintroduction of the Groups diverse service offering. Given the underlying demand,
this resulted in a strong rebound in operating performance in Switzerland and the United Arab
Emirates ("UAE") as the initial peak of the pandemic passed, tempered by a slower recovery in
Southern Africa with the initial peak of the pandemic passing more recently.

The Group has continued to demonstrate operational and financial resilience. At the end of
September 2020, cash and available facilities remained strong at around #450m on a
comparable basis to #518m on 31 March 2020. All covenant test waivers remain in force up to
and including 31 March 2021 at Mediclinic Middle East and 30 June 2021 at Hirslanden and
Mediclinic Southern Africa.

Divisional Summary
In Switzerland and the UAE, the easing of restrictions on non-urgent elective surgical
procedures coincided with the initial peak of the pandemic passing and resulted in a strong
rebound in patient activity.

From June 2020 onwards, Mediclinic Middle East, and, to a lesser extent, Hirslanden benefited
from counter-seasonal holiday trends resulting from travel restrictions imposed and procedures
delayed as a consequence of the lockdown period. In addition to this, Mediclinic Middle East
benefited from rapidly deploying supplementary services aimed at meeting patients needs and
changing behaviour, including pharmacy home delivery, alternative interim facilities to admit
low-acuity or asymptomatic cases and two new laboratories to provide additional COVID-19
testing capacity.

Mediclinic Southern Africa has cared for a significant number of COVID-19 patients since the
start of the pandemic, fulfilling a vital role in South Africa and Namibias responses to the crisis.
The divisions operating performance was significantly impacted during 1H21 due to the volume
of COVID-19 admissions and the delayed initial peak of the pandemic compared with the
Groups experience in Switzerland and the UAE.

Mediclinic Southern Africa revenue fell to around 60% of prior year levels in April 2020 when
lockdown measures and operating restrictions were enforced while COVID-19 cases remained
low. COVID-19 hospital admissions rapidly increased from the end of May as the virus spread
across the region. This curtailed the divisions ability to return to offering its full range of services
despite the easing of lockdown measures and restrictions. With the initial peak of the pandemic
passing in early August 2020, surgical case volumes improved, driven by a return in demand
for elective procedures. This improving trend stabilised towards the end of September with Paid
Patient Days ("PPDs") recovering to around 90% of prior year levels. As a result, Mediclinic
Southern Africa revenue was down around 6% in September 2020 compared with the prior year

The pandemic has highlighted the global demand for quality healthcare services and the
integral role played by private providers in supporting national governments and healthcare
authorities. Ageing populations, a growing disease burden and digitalisation of healthcare are                                                                                                      
creating further opportunities for expansion and advancement across the continuum of care
with Mediclinic accelerating several strategic projects in response to the pandemic.

While Mediclinic delivered a robust first-half operating performance, with several identified
features contributing to revenue performance and patient activity in Switzerland and the UAE,
the Group remains cautious in the midst of uncertainty as to the full impact of the continuing
pandemic and its economic aftermath on second-half Group operating performance. Further
detail on the 1H21 performance, current trading and outlook will be provided with the half-year

Financial performance and key performance indicators
Note: All 1H21 movements are approximate and relative to the prior year period.
                                                               1H20                1H21
                                       Group (GBPm)
 Revenue (constant currency)                                   1 515              (5.0)%
 Revenue (reported)                                            1 515              (7.0)%
 EBITDA (constant currency)                                      252             (33.0)%
 EBITDA (reported)                                               252             (33.0)%
 Reported EBITDA margin                                        16.6%               12.0%
 Earnings per share (pence)                                     9.9p            positive
                                    Hirslanden (CHFm)
 Revenue                                                         871              (2.0)%
 EBITDA margin                                                 16.2%               13.5%
 Movement in inpatient admissions                               5.0%              (1.0)%
 GBP/CHF average FX rate                                        1.25                1.19
                        Mediclinic Southern Africa (ZARm)
 Revenue                                                       8 578             (19.0)%
 EBITDA margin                                                 20.8%                8.0%
 Movement in PPDs                                               2.7%             (25.0)%
 GBP/ZAR average FX rate                                       18.28               22.04
                              Mediclinic Middle East (AEDm)
 Revenue                                                       1 616                8.5%
 EBITDA margin                                                 12.6%               12.5%
 Movement in inpatient admissions and day cases                 9.2%              (3.5)%
 Movement in outpatient cases                                   5.5%             (14.5)%
 GBP/AED average FX rate                                        4.62                4.65
Spire Healthcare Group
Mediclinic holds a 29.9% investment in Spire Healthcare Group plc ("Spire") which is equity
accounted. Spire reported its half-year financial results for the period ended 30 June 2020 on
17 September 2020.
                               Spire                  Mediclinic (income from associates)
                 6 months ended    6 months ended
                   30 June 2019      30 June 2020            1H20                 1H21
 profit/(loss)            #7.1m         #(33.1)m3           #2.1m              #(9.9)m

1 The Group uses adjusted income statement reporting as non-IFRS measures in evaluating
performance and as a method to provide shareholders with clear and consistent reporting. The
Group's non-IFRS measures are intended to remove from reported earnings volatility
associated with defined one-off incomes and charges which were previously referred to as

2 IFRS 16 accounting standard: addressing the definition of a lease, recognising and measuring
leases and establishing principles for reporting useful information to users of financial
statements about the leasing activities of both lessees and lessors.

3 Spires reported loss was #233.1m which included an impairment charge of #200.0m. For
adjusted earnings, any impairment losses or reversal of impairment losses previous recognised
will be added back in accordance with Mediclinics adjusted non-IFRS financial measures.

Cautionary Statement
This announcement contains certain forward-looking statements relating to the business of the
Company and its subsidiaries, including with respect to the progress, timing and completion of
the Groups development; the Groups ability to treat, attract and retain patients and clients; its
ability to engage consultants and general practitioners and to operate its business and increase
referrals; the integration of prior acquisitions; the Groups estimates for future performance and
its estimates regarding anticipated operating results; future revenue; capital requirements;
shareholder structure; and financing. In addition, even if the Groups actual results or
development are consistent with the forward-looking statements contained in this
announcement, those results or developments may not be indicative of the Groups results or
developments in the future. In some cases, forward-looking statements can be identified by
words such as "could", "should", "may", "expects", "aims", "targets", "anticipates", "believes",
"intends", "estimates", or similar. These forward-looking statements are based largely on the
Groups current expectations as of the date of this announcement and are subject to a number
of known and unknown risks and uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any future results, performance or
achievement expressed or implied by these forward-looking statements. In particular, the
Groups expectations could be affected by, among other things, uncertainties involved in the
integration of acquisitions or new developments; changes in legislation or the regulatory regime
governing healthcare in Switzerland, South Africa, Namibia and the United Arab Emirates; poor
performance by healthcare practitioners who practise at its facilities; unexpected regulatory
actions or suspensions; competition in general; the impact of global economic changes; and
the Groups ability to obtain or maintain accreditation or approval for its facilities or service lines.
In light of these risks and uncertainties, there can be no assurance that the forward-looking
statements made in this announcement will in fact be realised and no representation or warranty
is given as to the completeness or accuracy of the forward-looking statements contained in this

The Group is providing the information in this announcement as of this date, and disclaims any
intention to, and make no undertaking to, publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.

About Mediclinic International plc
Mediclinic is a diversified international private healthcare services group, established in South
Africa in 1983, with divisions in Switzerland, Southern Africa (South Africa and Namibia) and
the UAE.

The Groups core purpose is to enhance the quality of life.

Its vision is to be the partner of choice that people trust for all their healthcare needs.
Mediclinic is focused on providing specialist-orientated, multi-disciplinary services across the
continuum of care in such a way that the Group will be regarded as the most respected and
trusted provider of healthcare services by patients, medical practitioners, funders and
regulators of healthcare in each of its markets.

At 1 September 2020, Mediclinic comprised 76 hospitals, eight sub-acute and specialised
hospitals, 17 day case clinics and 18 outpatient clinics. Hirslanden operated 17 hospitals and
four day case clinics in Switzerland with more than 1 800 inpatient beds; Mediclinic Southern
Africa operations included 52 hospitals (three of which in Namibia), eight sub-acute and
specialised hospitals and 11 day case clinics (four of which operated by Intercare) across South
Africa, and more than 8 700 inpatient beds; and Mediclinic Middle East operated seven
hospitals, two day case clinics and 18 outpatient clinics with more than 900 inpatient beds in
the UAE. In addition, under a management contract, Mediclinic Middle East will open a 200-
bed hospital in the Kingdom of Saudi Arabia in mid-2022 with the Al Murjan Group.

The divisions' contributions to Group revenue for the financial year ended 31 March 2020 were
47% by Hirslanden, 29% by Mediclinic Southern Africa and 24% by Mediclinic Middle East.

The Companys primary listing is on the London Stock Exchange ("LSE") in the United
Kingdom, with secondary listings on the JSE Ltd in South Africa and the Namibian Stock
Exchange in Namibia.

Mediclinic also holds a 29.9% interest in Spire Healthcare Group plc, a leading private
healthcare group based in the United Kingdom and listed on the LSE.

For further information, please contact:

Investor Relations, Mediclinic International plc
James Arnold, Head of Investor Relations
+44 (0)20 3786 8181

Media queries
FTI Consulting
Ben Atwell/Ciara Martin  UK
+44 (0)20 3727 1000
Sherryn Schooling  South Africa
+27 (0)21 487 9000

Registered address: 6th Floor, 65 Gresham Street, London, EC2V 7NQ, United Kingdom
Corporate broker: Morgan Stanley & Co International plc and UBS Investment Bank
JSE sponsor (South Africa): Rand Merchant Bank (A division of FirstRand Bank Ltd)
NSX sponsor (Namibia): Simonis Storm Securities (Pty)


Date: 15-10-2020 08:00:00
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