MPH Health Care AG: Preliminary IFRS result 2020

Equity (net asset value) amounts to 201.3 million euros, which corresponds to 47.0 euros per share.

Berlin, 28 April 2021: MPH Health Care AG (ISIN: DE000A289V03) reports the preliminary IFRS consolidated result for the 2020 financial year. Preliminary equity decreased from 271.6 million euros to 201.3 million euros. The net asset value (NAV) per share as of 31 December 2020 is 47.0 euros (previous year: equivalent to 63.5 euros), following a capital reduction in a ratio of 10:1 in July 2020. In the 2020 financial year, the preliminary IFRS net loss for the year as at the reporting date amounted to 70.4 million euros (previous year: net profit of 11.1 million euros). Liabilities were reduced from 21.5 million euros by 12.1 million euros (this corresponds to 56.1%) to 9.4 million euros. The equity ratio increased from 92.7% to 95.5% as of 31.12.2020.

MPH AG is an investment company. Holdings are reported as financial assets under the balance sheet item "Financial assets" and are valued "at fair value through profit or loss" as at the balance sheet date of 31.12. The deficit results primarily from unrealised and non-cash losses from the fair value measurement of the investments as at the balance sheet date, which result primarily from the lower stock market prices of the investments compared to the previous year's balance sheet date.

The investments listed on the Frankfurt Stock Exchange, M1 Kliniken AG, HAEMATO AG and CR Capital AG, were operationally successful in the pandemic year 2020, even if this is not reflected in the stock market prices as at the reporting date of 31 December 2020.

M1 Kliniken AG performed over 270,000 medical treatments in the past financial year. The market leadership in the German home market was further expanded. In the coming years, expansion is to be driven forward with the aim of operating a total of 100 specialist centres by the end of 2024. The first interim goal is to have a total of 50 specialist centres by the end of 2021.

In the 2020 financial year, the M1 Group was able to increase its consolidated group revenues by more than 100% to 159.6 million euros (previous year: 77.2 million euros). This includes sales of HAEMATO AG for the period August to December 2020 in the amount of 102.8 million euros. Earnings before taxes fell from 12.7 million euros to 8.8 million euros. The consolidated net income for the year fell to 7.4 million euros (previous year: 9.7 million euros), significantly influenced by a two-month pandemic-related lockdown in spring 2020 in the German market and in some cases even longer lockdowns in foreign markets.

M1 Kliniken AG has acquired ca. 48% of the share capital of HAEMATO AG with effect from 1 July 2020. MPH assumes that the combination of the expansion of the clinic locations of M1 Kliniken AG with the specialised product business of HAEMATO AG offers significantly higher value-added potential for both companies in the future and thus also for MPH AG as a whole. Subsequently, both companies concentrated on their respective core competencies of beauty and products/trade. In the future, M1 will concentrate exclusively on the operation of the specialist centres and clinics and the further growth of the international network. HAEMATO AG will focus even more on the area of drug and medical product trade as well as the development of private-label brands in the self-pay sector. The M1 share price decreased from 14.30 euros on 31.12.2019 to 9.24 euros on 31.12.2020. At the end of the quarter 31.03.2021, the share price was 10.85 euros.

According to the preliminary IFRS financial statements for the 2020 financial year, HAEMATO AG was able to increase its revenue by 20.5% to EUR 238.3 million and its EBITDA by 74.8% to EUR 3.3 million. The operating result (EBIT) rose from TEUR -19 to EUR 1.6 million. The equity ratio increased from 56.2% (previous year) to 74.2%.

In July 2020, a capital reduction in a ratio of 10:1 was decided. The share price of HAEMATO AG decreased from (converted) EUR 29.40 on 31 December 2019 to EUR 23.00 on 31 December 2020. At the end of the quarter 31.03.2021, the share price was 33.20 euros.

On 23.03.2021, the company received special approval from the Federal Institute for Drugs and Medical Devices (BfArM) for a rapid antigen test for self-administration by laypersons. This will further strengthen the "Medical Devices/Covid-19 Diagnostics" business area, which was already identified as promising and was established in the 2020 financial year in the wake of the Corona pandemic.

CR Capital AG (formerly CR Capital Real Estate AG) was able to stay on its successful path in 2020, almost unaffected by the COVID-19 pandemic, and continued to grow profitably. According to preliminary, unaudited figures, the company achieved a net profit of EUR 45 million. The equity ratio is expected to exceed 90%. As of February 2021, approx. 600 units were in the construction phase or about to be built. The share price of CR Capital AG has decreased from EUR 32.00 on 31.12.2019 to EUR 30.50 on 31.12.2020. At the end of the quarter 31.03.2021, the share price was 32.90 euros.

The development in 2021 depends largely on the further development of the Covid-19 pandemic. The current strategy of the German government placed "vaccinate and test" in the foreground. So far all M1 clinics and specialist centres in Germany are able to maintain their operations in 2021. Since 12 April 2021 all specialist centres abroad have now been reopened to the public. HAEMATO AG is making an important contribution to diagnostics in the Corona pandemic by distributing medical products (especially the Covid-19 rapid tests for lay people). MPH can also systematically benefit from this.

"Regarding the distribution of a dividend for the 2020 financial year, the Management Board and Supervisory Board will propose to the shareholders that no dividend be distributed to have sufficient financial sources for the expansion of the investments," comments Patrick Brenske, MPH Management Board member.

In the past financial year, a mail-order pharmacy was founded and put into operation in the Netherlands within the "Ventures" business area of MPH. The focus is on the sale of medicines and medical products for aesthetic medicine.

The annual report of MPH Health Care AG will be published on 28 May 2021.

About MPH Health Care AG:

MPH Health Care AG is an investment company with a strategic focus on the purchase, development and sale of companies and company shares, especially in growth segments of the healthcare market. This includes both insurance-financed and privately financed segments. However, MPH also exploits potentials outside the healthcare market from high-growth and high-yield sectors.

MPH Health Care AG is listed on the Basic Board (Open Market) of the Frankfurt Stock Exchange.

Key figures of the MPH Health Care AG share:

Subscribed capital: EUR 4,281,384
Listed class of shares: ordinary bearer shares
ISIN: DE000A289V03
WKN: A289V0
Ticker symbol: 93M1