1. GLOBAL HEALTH PARTNER
Q4 REPORT
26 FEB 2013
Marianne Dicander Alexandersson, CEO
Tobias Linebäck, CFO

2. Agenda
• Q4 performance and actions taken
• 2012 performance
• Market trends and opportunities
Figures and graphs:
• Revenue Q4 and 2012
• Result Q4 and 2012
• Performance/Service Line
• Summary
2

3. Encouraging financial performance in Q4
• Revenues all time high • EBIT 10 million (4)
206 MSEK • EBITDA 17 MSEK (11)
• Growth 10% of which 2%
was organic
• Increased focus behind improvement
• Despite continued tough market situation in Sweden and
Denmark with intense competition and depressed prices
3

4. Weak result 2012 due to weak Q2 and Q3
• Revenues amounted to • EBIT -4 million (15)
723 MSEK
• EBITDA 30 MSEK (42)
• 7% growth of which
0% was organic
Weak performance in Q2 and Q3 due to Bariatrics and
lost contracts in VGR together with high price pressure
4

5. Vulnerability in tenders decreased due to diversified
revenue sources
Insurance companies
The public patients
from VGR tender at
Spine Center Göteborg Free choice patients within VGR
has successfully been
replaced by patients from:
Patients from other county councils
5

6. Private
Revenues from insurance companies becoming Insurance companies
County councils
increasingly important
Revenue distribution
100%
17 15 13
90% 21 20
80%
17 20
70% 16 32 35
60%
50%
40%
30% 63 63 63
53 52
20%
10%
0%
2009 2010 2011 2012 2012 Q4
6

7. Greater focus will increase profitability
FROM… …TO
Focus on
• Growth in selected • Growth in Nordic region
markets
• Core business
Process
More
Improve-
patients
ment
7

8. Actions taken
Focus on core business and the Nordic region
DIVESTMENTS INVESTMENTS
• Bariatric Center Copenhagen (Q2) • Acquisition of Gildhöj privathospital (Q1)
• Bodylift center (Q3) • Opening of Gastro Center Göteborg (Q2)
• Nacka property (Q3)
• Bariatric Center Cairo (Q4) • Acquisition of Odenplan (Q4)
• Q4
• Clinics in Bergen (Jan 2013)
Prague clinic (Jan 2013) Q4
• Opening of Orthocenter Skåne
in Malmö (Q4)
8

9. Market trends and opportunities in Sweden
• Continued strong political focus on profits
POLITICS/MEDIA
• Quality, openness and long-term perspective
• Increasing patient power –
PATIENT TRENDS Patientmaktsutredningen (SOU 2013:2)
• Patient free choice and insurance companies
PUBLIC • High focus on price
REIMBURSEMENT • New Karolinska, opportunities for elective care
SYSTEMS through free choice system
9

10. Continued price pressure and consolidation in Denmark
• Changed regulations have increased waiting
POLITICS/MEDIA times
• Up to 5% insurance cost from first of July
• Consolidation and reduction of smaller providers
MARKET TRENDS • Price pressure from insurance companies
• Accreditation requirement increases barriers
QUALITY TRENDS
for new entrance
10

11. UAE
• RCDR (GHP´s Diabetes centre in Ajman)
QUALITY
elected as reference center in GCC
OPERATIONAL
• 2nd year anniversary with Emirate royal
participation on international diabetes day
• Stockholm´s Läns Landsting visited RCDR
MARKET
• Several business development opportunities
11

12. Q4 – All time high for revenues
SEK millions
Revenue – Q4
• 10 % (5 %) growth - revenue increased from 206
187 to 206 187
• 2 % organic growth
• Growth in areas where there is high patient
power
• Increased capacity in Stockholm and high
patient pressure in Västra Götaland
• Long Christmas holidays impacted end of period
• Very good production in especially Spine/Ortho
and Gastro
2011 2012
12

13. Q4 – Improved result from operations
SEK millions
Operating profit – Q4 EBITA
• EBIT amounted to SEK 10 million (4) and EBITDA
10
to SEK 17 million (10)
• Improved performance from operations is 15 million,
from -8 to 7 million before one-off income
• Spine/Orthopaedics and Bariatrics (before one-off
income 2011) improved significantly in Q4 2012
• Market still characterized by tough conditions, but 4
strong measures during the entire 2012 is starting
to pay off
• Central costs have been reduced during 2012
and amounted to -5,6 million (-6,9) for Q4
2011 2012
13

14. Full year growth lowered by slow performance in Q2 and Q3
SEK millions
Revenue – Full year
• 7 % (15 %) full year growth – revenue increased
from 675 to 723
• 0 percent organic growth 723
800 646 675 696
• Growth in areas where there is high patient 700 586
600 666 689 704
power 500 559 624
400
• Full year growth impacted by 300
200
100
• Lost VGR contracts 0
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
• Continued high competition and price
2010 2010 2011 2011 2011 2011 2012 2012 2012 2012
pressure
14

15. Weak Q2 and Q3 followed by comeback in Q4
SEK millions
Operating profit – Full year
• EBIT amounted to SEK -4 million (15) and
EBITDA to SEK 30 million (42)
• When eliminating one-off income in Q4 2011,
2012 was only marginally behind 2011
• Disappointing full year performance, however the EBITDA
56
trend is positive as Q4 is much better than 2011 60 50
50 49 57 42 38
40 30
24 23
• Market was characterized by tough conditions 30
throughout the year, but strong measures during 20
the entire 2012 is starting to pay off 10
0
• Full year central costs amounted to -28,6 (-29,2), Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
but was reduced in Q4 following a down-size 2010 2011 2011 2011 2011 2012 2012 2012 2012
during the year
15

16. Q4 2012
Positive cash flow in Q4 Q4 2011
SEK millions
Comments 20
• Strong operating cash flow in the fourth 10
quarter due to enhanced performance
0
in the clinics
-10
• Cash flow from investing activities
-20
mainly consists of investments in health
care equipment -30
• Cash flow from financing activities -40
include new loans as well as some Operations Investments Financing Total cash
flow
loan repayments
• Total cash flow has improved mainly due
to increased operating performance
16

17. Q4 2012
Full year cash flow affected by Q2 and Q3 performance Q4 2011
SEK millions
Comments
20
• Positive working capital changes have
10
improved cash flow from operations for
2012 compared to 2011 0
-10
• Cash flow from investing activities
mainly consists of investments in health -20
care equipment and sale of property -30
in Nacka -40
• Cash flow from financing activities Operations Investments Financing Total cash
flow
include new loans as well as some
loan repayments
• Total cash flow is enhanced by sale of
property in Q3.
17

18. Promising Q4 for Service Line Ortho/Spine
• Very strong provider of orthopaedic and spine treatments in Sweden
• Increased capacity in Stockholm
• Patient free choice continues to be very important.
• Lost VGR contracts affected full year profitability
• Price reductions must be met through increased efficiency and patient flows
• Price reductions in Denmark following tenders by insurance companies, but performance in Q4
under control
Whole Whole
Q4 Q4 Change year year Change
SEK millions 2012 2011 % 2012 2011 %
Revenues 131.8 113.7 16 450.9 379.6 19
Operating result* 12.4 6.8 18.5 35.3
Operating margin, % 9 6 4 9
* Excluding goodwill write-down of 7 MSEK in OPA in Q3 2012
18

19. Weak second half year for Service Line Dental
• Poor patient generation in Q3 and Q4
• Reduced profitability due to lighter treatments
• Also changed dynamics between referral dentists and specialists
• Continued strong marketing efforts
Whole Whole
Q4 Q4 Change year year Change
SEK millions 2012 2011 % 2012 2011 %
Revenues 22.3 27.8 -20 88.9 92.3 -4
Operating result* 1.3 1.9 13.7 6.5
Operating margin, %* 6 7 15 7
* Including profit from sale of property in Q3 but excluding write down of goodwill in full year 2011 and Q3 2012
19

20. Cost cuts are paying off for Service Line Bariatrics
• Heavy cost cuts during earlier part of 2012 have paid off
• Q4 numbers for 2011 were affected by one-off items of +12,4 million, therefore improvement
from operations is 11,3 million
• Bariatric market is still very tough and is characterized by low prices
• Gastro clinics have a strong market position
• During 2012, efforts to focus business around core areas been executed
• Bariatrics clinic in Copenhagen was closed during Q2
• Reconstructive plastic surgery clinic was sold during Q3
• Bariatrics clinic in Cairo was sold during Q4
• Bariatrics clinic in Prague was sold during Q1 2013
• Bariatric clinic in Bergen was sold during Q1 2013
Whole Whole
Q4 Q4 Change year year Change
SEK millions 2012 2011 % 2012 2011 %
Revenues 44.2 38.0 16 154.6 174.7 -12
Operating result* 0.6 1.8 -10.3 -0.2
Operating margin, % 1 5 -7 0
20

21. Solid performance in Service Line Arrhythmia
• Stable profitability
• Increased patient flow from many counties outside Stockholm
• High quality and short waiting lines stimulate patient genration
• Patient flow is looking stable when going into 2013
Whole Whole
Q4 Q4 Change year year Change
SEK millions 2012 2011 % 2012 2011 %
Revenues 7.5 7.3 3 28.9 28.6 1
Operating result 0.8 -0.1 2.7 2.8
Operating margin, % 11 -1 9 10
21

22. Summary Global Health Partner in 2012
Focus on More Patients and Process Improvement
First signs of effect in Q4
Two main causes for EBITDA decline in Q2 and Q3
Bariatrics market declined
1 → GHP restructured the operation to improved results
Lost VGR tenders
2 → Success in attracting other patients, decreased vulnerability
Two main causes for improved result in Q4
1 Stronger revenue due to more patients
2 Several actions taken to reduce cost and increase efficiency
WELL PREPARED FOR 2013!
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23. www.globalhealthpartner.com
Twitter: @ghpartner
Contact:
Marianne Dicander Alexandersson, CEO, +46 (0)705-62 85 55 marianne.dicander@ghpartner.com
Tobias Linebäck, CFO and IR, +46 (0)708-55 37 19, tobias.lineback@ghpartner.com
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