Interim report January-June 2015: Continuing good organic growth

• 6 percent organic growth during the quarter
• New business model started to develop integrated health care solutions together with our customers. An example of this is our new agreement with Skandia
• Action programmes for financially underachieving clinics continue and are intensified

Second quarter 2015

• Sales revenues increased to SEK 212.1 million (200.9) and organic growth amounted to 6 percent (3)
• EBITDA amounted to SEK 17.8 million (18.2)
• EBITDA margin amounted to 8.4 percent (9.1)
• Result after tax (EAT) amounted to SEK 8.6 million (9.3)
• Result per share amounted to SEK 0.10 (0.11)

First half year 2015

• Sales revenues increased to SEK 429.7 million (407.5) and organic growth amounted to 5 percent (5)
• EBITDA amounted to SEK 37.7 million (41.1)
• EBITDA margin amounted to 8.8 percent (10.1)
• Result after tax (EAT) amounted to SEK 18.9 million (22.1)
• Result per share amounted to SEK 0.21 (0.26)

The CEO’s comments
We are pleased that the good organic growth is continuing. It is above all our clinics in Stockholm that are driving the growth. We have good demand there and have agreements with both the County Council and insurance companies that allow us to grow and help all the patients who want to have our health care. The clinics in Skåne also had good growth during the quarter, above all on the insurance side.

In Västra Götaland, however, we have had a more challenging start to the year. Our agreements there are drawn up in such a way that the County Council chooses when they want to make use of our services. Demand from patients was there all spring but the County Council made use of our services spasmodically. This meant that Ortho Center Göteborg in particular at times had far too few patients this spring at the same time as we even had to turn patients away towards the end of spring. We continue to work on decreasing the effects from this.

The second challenge we have is that operations have decreased in frequency. We have seen this for some time in both Sweden and Denmark, which is mainly due to the fact that people are seeking health care for somewhat more minor injuries as well. This is basically a positive trend, as people can be helped at an earlier stage and they avoid aggravating their injuries. However, we need to adapt our structures so that we use our fixed costs efficiently and have sufficient availability.

The business basically possesses good scalability, so that organic growth contributes to better margins. However, growth in this quarter was in clinics that already had good capacity utilization. This has meant that it has been necessary to employ new staff at the same time as some clinics, for the reasons stated above, have lost volume and thus experienced reduced margins.

In spite of these challenges we continue to have a positive view of the full year. Most clinics have good demand and profitability. In other parts of the business, the action programmes are continuing, and even if many measures do not have an immediate effect, we see that we are on the right track.

During the past quarter we entered into many exciting agreements with collaboration partners such as Skandia and the Swedish Olympic Committee. We are convinced that closer collaboration with our customers enables development towards higher quality and efficiency where we can optimise the total package offered. The agreement with Skandia means that we have overall responsibility for their Stockholm customers’ health as regards their spine, hips and shoulders. During the quarter we started a new business model to develop this type of integrated health care solutions.

It became clear during the second quarter that there is a political majority in the Swedish Riksdag for freedom of choice regarding health care. The Riksdag has issued a recommendation urging the Government to change the focus of the inquiry into profits in welfare from the form of ownership to quality and content. We welcome a broader discussion where the focus is on what quality and availability we get for the money we pay in taxes

We look forward to holding a Capital Markets Day on September 3, when we will discuss our businesses and future plans at a deeper level than what we are usually able to do. Furthermore, we will come out with more and better information through our brand new website.

14 July 2015
Gothenburg
GHP Specialty Care AB (publ)

The Board and CEO

Queries should be addressed to:
Daniel Öhman, CEO, Tel: +6 708 55 37 07
Tobias Linebäck, CFO and Head of Investor Relations, Tel: +46 708 55 37 19

GHP is an internationally active health care provider that operates specialist clinics in a select number of diagnostic areas through the application of a business model that is unique in the health care industry, where leading doctors become partners and shareholders. Each clinic specialises in a particular patient group, and this leads to increased efficiency and higher quality. This is the cornerstone of GHP’s business philosophy – “Quality through specialisation”. GHP shares are traded on the Small Cap list of Nasdaq Stockholm under the ticker symbol “GHP”.

GHP Specialty Care AB (publ) | Corp. ID No. 556757-1103
Södra Hamngatan 45 | SE-411 06 Gothenburg | Sweden
Tel 46-31 712 53 00 | Fax 46-31 313 13 21 | www.ghp.se

GHP Specialty Care AB is required to publish the information herein according to the Swedish Securities Market Act. This information was published on 14 July 2015 at 8:00 a.m. CET.

This report has not been the subject of review by the company’s auditor.

This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.

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