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Year-end report 2011: Changed market factors - powerful actions taken

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FOURTH QUARTER 2011

  • In December Gildhøj Privathospital, an orthopaedic clinic outside Copenhagen, was acquired. Gildhøj Privathospital will be consolidated from February 1, 2012.
  • Continued high demand from patients in our clinics within Service Line Spine and Orthopaedics.
  • Successful restructuring of the ownership in our clinic in Prague. This will have a positive effect on the result and cash flow from 2012.
  • Further efforts completed within Service line Dental including new management and new structure, which is expected to have positive impact on future profitability and efficiency. Due to the lack of historic profitability, a write-down of goodwill amounting to SEK 30.0 million has been taken into account and is reflected in the results below.
  • Sales revenues increased by 5 percent to SEK 186.8 million (177.6).
  • The operating result before goodwill write-downs amounted to SEK 3.5 million (12.5). The operating result after goodwill write-downs amounted to SEK -26.5 million.
  • The result before tax amounted to SEK -27.7 million (12.8).
  • The result after tax amounted to SEK -29.4 million (12.6).
  • The result per share amounted to SEK -0.46 (0.13).
  • Organic growth of -3 percent (10).

WHOLE YEAR 2011

  • Revenues increased by 15 percent to SEK 675.2 million (585.5).
  • The operating result before goodwill write-downs amounted to SEK 15.2 million (28.4). The operating result after goodwill write-downs amounted to SEK -14.8 million.
  • The result before tax amounted to SEK -18.7 million (29.3).
  • The result after tax amounted to SEK -28.6 million (20.1).
  • The result per share amounted to SEK -0.51 (0.15).
  • Organic growth of 6 percent (12).

THE CEO’S COMMENTS
Market conditions within above all Bariatrics (obesity surgery) and the Dental area (specialist dentistry) continued to be difficult during the fourth quarter. The positive development trend of the Bariatric clinics, which had lasted for quite a long period of time, was broken during the end of the second quarter, primarily due to worse inclusion criteria (Denmark), greatly reduced remuneration levels (Sweden, Denmark and the Czech Republic), and cautious private demand (Sweden, Finland). It is true that referral volumes and private demand for complex treatments within dentistry, primarily implants, bottomed out and increased slightly during the fourth quarter, but they are still 20-25% under the level for 2009. Our three clinics continue to take market shares.

The result for the fourth quarter is thus unsatisfactory, as is the result for the whole of 2011. The constant positive development of results that GHP has displayed was broken in the third quarter and the negative trend was further strengthened during the fourth quarter. Measures have been taken to turn this development around and will give the intended effects during the coming half year in 2012. These are among other measures, primarily cost-reducing measures and adaptation of capacity. The ownership of the unprofitable Bariatrics clinic in Prague have been complemented with an actor that has significant contacts with local insurance companies. We are also constantly taking measures to increase revenues. A review and a broadening of the range of services and products offered is ongoing. Strengthened market communication, primarily through social media, has been begun with good results.

Despite the partly temporary deterioration in market conditions and thereby the results for 2011, we have reason to be optimistic about the outcome for 2012. We have a very strong development in demand within the other specialities, Spine, Ortho, Arrhythmia and Gastro. We have also further strengthened our position as the leading supplier to the Swedish insurance companies and are now making efforts to achieve the same position in Denmark.

We completed our second Danish acquisition in December, the leading spine/orthopaedic clinic in Själland, Gildhøj Privathospital in Copenhagen. Gildhøj Privathospital only conducts treatment of insurance patients and has a very strong professional brand name. We have thus acquired two of the three clinics that were at the top of our priority list without taking part in competitive bidding.

24 February 2012
Gothenburg
Global Health Partner AB (publ)

The Board

Queries should be addressed to:
Per Båtelson, CEO, phone: 46 705 95 57 00
Tobias Linebäck, CFO and Head of Investor Relations, phone: 46 708 55 37 19

Global Health Partner is an internationally active healthcare provider that operates specialist clinics in a select number of treatment areas through the application of a business model that is unique in the healthcare industry, where leading doctors become partners and shareholders. Multiple clinics with high patient volumes within the same area of treatment produce increased efficiency and higher quality, which is the cornerstone of Global Health Partner's business philosophy – ”Quality through Specialisation”. Global Health Partner’s shares are traded on the Small Cap list at NASDAQ OMX Stockholm under the abbreviation “GHP.”

Global Health Partner AB (publ) | www.globalhealthpartner.com
Corp. ID No. 556757-1103 | Östra Hamngatan 26-28 | SE-411 09 Gothenburg | Sweden
Tel 46-31 712 53 00 | Fax 46-31 313 13 21

Global Health Partner AB is required to publish the information herein according to the Swedish Securities Market Act. This information was published on 24 February 2012 at 7.00 a.m. CET.

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

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Global Health Partner ghp healthcare provider specialist clinics quality through specialisation Year-end report 2011

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