LIMES Schlosskliniken : Half-year Report 2022

Half-Year Report 2022

LIMES SchlossklinikenHalf-Year Report 20222

LIMES Schlosskliniken			AT A GLANCE
			January - June		January June**	Change
Group performance indicators	2022	2021
Revenues			13,394 kEUR		8,303 kEUR	61.3%
Patient days			17,116		15,525		10.2%
Gross earnings (EBITDA)			4,131 kEUR		2,278 kEUR	81.3%
EBITDA Margin			30.8%		27.4%		12.4%
Amortisation			1,154 kEUR		603 kEUR	91.4%
Operating result (EBIT)	2,977 kEUR		1,675 kEUR	77.7%
EBIT Margin	22.2%	20.2%		10.0%

Financial result

Earnings before taxes

Result for shareholders of the parent company during the period

-179 kEUR		-102 kEUR	75.7%
2,798 KEUR		1,573 kEUR		> 100.0%
1,911 kEUR		1,552 kEUR	23.1%

Long-term assets			12,060 kEUR			7,067 kEUR	70.7%
Short-term assets		13,342 kEUR			3,057 kEUR		336.4%
Balance sheet total		28,406 kEUR			12,722 kEUR		> 100,%
Equity		8,672 kEUR			4,231 kEUR	> 100,%
Equity ratio				30.5%			33.3%		-8.2%
Equity-like instruments / partner				5,898 kEUR			3,175 kEUR		85.8%
loans
Expanded equity ratio				51.3%			58.2%		-11.9%
Liquid assets		12,614 kEUR			3,003 kEUR		> 100,%
Result per share as per DVFA*
(German Association for Financial		6.52 kEUR			5.29 EUR	23.1%
Analysis and Asset Management)
Employees at end of period		159		138	15.1%
No-par shares				293,192		293,192	0.0%
* based on number of no-par value shares in				293,192			293,192		0.0%
circulatio

** PRC / SCG not consolidated as at 30.06.2021

LIMES Schlosskliniken

Half-Year Report 2022

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Business performance from 1 January to 30 June 2022

• Revenue 13.4 million EUR +61.3 %
• Gross earnings in the period (EBITDA) +4.131 kEUR +81.3 %
• Operating result (EBIT) +2,977 KEUR +77.7 %
• Result for shareholders during the period +1.911 kEUR +23.1 %
• Result per share +6.52 EUR +23.1 %
• Liquid assets 12.6 Mio. EUR
• Capacities doubled at PRC Zurich
• Start of the clinic in Lindlar postponed from 1 September 2022 to 1 November 2022
• Strong third quarter expected, operating result in July and August each over 1 million EUR (EBITDA)

Dear Shareholders in LIMES Schlosskliniken and other interested parties,

we have made great progress in the first six months of the current financial year. All three clinics were well received by patients with the range of services offered. Due to the positive patient feedback, we were able to increase our occupancy rate in all three clinics significantly. This led to higher revenues and earnings compared to the previous year. All three clinics made roughly the same contribution to the overall result.

Due to good occupancy in the months of July and August, we expect the strongest third quarter so far. For further expansion, we were able to raise a tranche of debt capital in the amount of 6 million EUR at attractive conditions. As of 30 June 2022, the company has liquid assets of 12.6 million EUR.

The new LIMES team for the Lindlar site has been in the familiarisation phase since 1 August 2022. Due to various supply problems, the general contractor has postponed the handover of the clinic to 1 November 2022.

We are pleased that the LIMES brand as a service provider stands for a high-quality psychiatric offer in the range of stress-related illness, depression, trauma and personality disorder and is increasingly finding positive resonance in the market.

LIMES Schlosskliniken

Half-Year Report 2022

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Revenue

Across the group, we were able to achieve a turnover of 13.3 million EUR and total revenues of 13.4 million EUR in the first half year of 2022. The strong revenue growth of +62.5% was positively influenced by the organic growth of the clinic in Mecklenburg Switzerland, the Fürstenhof clinic in Bad Brückenau and the good development of clinic occupancy at PRC in Zurich. The number of patient days increased by +10.2% to a total of 17,116.

Earnings performance

Based on the higher occupancy rates at the clinic sites, the earnings situation was significantly increased. All three operationally active hospitals are showing a positive development.

At the group level, the cash flow from operating activities increased significantly. In terms of EBITDA, we were able to generate earnings of 4.1 million EUR in the first six months of the current business year. It currently looks like we will be able to increase the earnings at EBITDA level again in the second half of the year.

Amortisation costs increased by +91.4% to 1,154 kEUR in the first six months due to the investments made and the costs associated with getting the hospital operation up and running as well as the amortisation of goodwill from the acquisition.

The operating result (EBIT) at Group level amounted to +2,977 kEUR (p.y. 1,675 kEUR), an increase of 77.7 %. The financial result is more burdened by interest for the acquisition of the new clinic location in Zurich at -179 kEUR (p.y. -102 kEUR).

The consolidated earnings for the period respectively the result for shareholders of the parent company during the period was +1,911 kEUR (p.y. -1,552 kEUR) for the first six months of the current financial year. All clinics of the LIMES Group were able to end the period with a clearly positive result.

The cash flow from operating activities was 5,498 kEUR (p.y. 1,663 kEUR) in the first half of the year.

The cash flow from investing activities was -760 kEUR (p.y. -197 kEUR).

The cash flow from financing activities was 5,393 kEUR (p.y. -1,154 kEUR).

Assets and financial position

LIMES Schlosskliniken has a solid financial base. With a balance sheet total of 28.4 million EUR, equity including shareholder loans amounts to 51.3% (p.y. 58.2%).

At the end of the first half of the year, the company had liquid funds of EUR 12.6 million (p.y.: EUR 3.0 million). Against this background and the free cash flow, we are well positioned for further growth.

LIMES Schlosskliniken

Half-Year Report 2022

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Long-term assets are reported as 12,060 kEUR (p.y. 7,067 kEUR). This item consists mainly of goodwill of 9,023 kEUR from the initial consolidation of the clinic Mecklenburgische Schweiz and goodwill from the acquisition of the Swiss PRC Group. The goodwill is amortised over a period of 10 years. Tangible assets include 2,934 kEUR (p.y. 2,946 kEUR). Short-term assets increased to 16,346 kEUR (previous year: 5,655 kEUR). This is mainly due to the fact that we took out a tranche of debt in the amount of 6 million EUR at attractive conditions because of our credit rating.

AGM

Due to reasons related to the coronavirus pandemic, the Annual General Meeting (AMG) of LIMES Schlosskliniken AG was once again held virtually on 27 June 2022 from 1.00 p.m. to

2.02 p.m. at the premises of the re:mynd agency, Hanauer Landstr. 154, 60314 Frankfurt am Main.

All items on the agenda were discussed and approved by our shareholders.

Employees

On 30 June 2022, LIMES Schlosskliniken had a total of 159 employees (p.y. 138).

Risks and opportunities

The risks and opportunities to which our company's business activities are exposed are described in detail in the Group Status Report, which we have published alongside our Consolidated Financial Statements for 2021. These Consolidated Financial Statements are available on the company's website (www.limes-schlosskliniken.de). In the reporting period, there were no significant changes to the opportunities and risks described in this report.

Miscellaneous

After reviewing the financial ratios and the development of the company, the Deutsche Bundesbank informed us on 20 July 2022 that LIMES Schlosskliniken AG is eligible for refinancing with immediate effect.

Outlook

In the first half of the year, we doubled the capacity of the PRC Clinic in Zurich. The higher capacity has already been utilised since June 2022. The two clinics Mecklenburgische Schweiz and Fürstenhof have also had good patient occupancy rates in recent months, so that we expect a positive business trend in the second half of 2022 and will achieve our targets for 2022.

Outside our influence was the postponement of the start of the project for the new clinic in Lindlar from 1 September 2022 to 1 November 2022. We are still in the process of evaluating new attractive locations for the LIMES Group.