Year-end report 2015: A quarter of investments and development for the future

• GHP International won a large procurement process in the United Arab Emirates
• Strong organic growth of approximately 10 percent in the fourth quarter (full year 7 percent)
• Investments in integrated care solutions in collaboration with insurance companies
• Continued focus on work on profitability and efficiency out in the clinics

Important events after closing day

• As part of the process of strengthening and broadening GHP’s position in Stockholm, GHP acquires 70 percent of Urologcentrum

Fourth quarter 2015

• Sales revenues increased to SEK 229.9 million (209.9) and organic growth amounted to 10 percent (1)
• EBITDA amounted to SEK 13.7 million (18.0)
• EBITDA margin amounted to 6.0 percent (8.6)
• Result after tax (EAT) was SEK 13.0 million (16.4)
• Result per share amounted to SEK 0.19 (0.20)

Full year 2015

• Sales revenues increased to SEK 820.0 million (767.6) and organic growth amounted to 7 percent (4)
• EBITDA amounted to SEK 52.5 million (60.3)
• EBITDA margin amounted to 6.4 percent (7.9)
• Result after tax (EAT) was SEK 27.3 million (31.6)
• Result per share amounted to SEK 0.33 (0.36)

CEO’s comments
GHP’s strong organic growth continues. Growth of as much as 10 percent in the fourth quarter shows how very attractive our business is. We also incurred costs of approximately SEK 6 million during the fourth quarter in two areas which I am convinced will be important for GHP’s future development – integrated care solutions with insurance companies and GHP International. These investments have been very well received and it is assessed that they have great growth and profitability potential. We continued our work on profitability and efficiency out in the clinics during the quarter.

Integrated care solutions with insurance companies are our undertaking to develop new health care flows and reimbursement structures in partnership with our customers. Procurement processes today are based on reimbursement per measure taken, without any consideration of what actually benefits the patient. Through closer collaboration with our customers we can find new solutions, with a more efficient use of resources and where patients receive faster and more effective care. I am convinced that this is the direction in which health care will move in the future and GHP has a very strong position here through our focus on specialised clinics with well-thought-out health care flows. For GHP this means securer revenues and more attractive workplaces where each employee can work on what is of real benefit. This also leads to further strengthening of the company’s market position.

GHP International is our undertaking in the Middle East where we mainly work on a management contract basis. We have run a diabetes clinic in the United Arab Emirates for seven years. Now that we have won a considerably larger contract to also run two accident and emergency hospitals, our revenues from the region will increase considerably. We will also have the presence needed to further grow in the region. The aim is that GHP International will become a relatively independent operation which is an expert in winning and running management contracts in the region. GHP International will be a good addition to our Nordic business and here our Nordic way of thinking and reputation will be of great benefit.

We have continued to develop our work on efficiency. It is crucial that we can manage the fall in prices that we have seen in most markets and can develop our efficiency faster than prices fall. One of our main strategies is the “task force” group that we have built up centrally. These are experts at supporting our personnel in the clinics: they leave no stone unturned and draw up development plans. This is something we have become very good at and over the past six months we have drawn up plans for several clinics which are now being implemented. Ortho Center Skåne is the business operation that has had the greatest losses in recent years. We have now re-negotiated our agreements, which means that we will save a number of million kronor annually.

As the Swedish government abolished the so-called “queue billion” paid out to County Councils at the beginning of the year, there is a risk that this will lead to some County Councils placing patients in increasingly long queues and that they will put in orders to purchase health care more sporadically. This particularly affects weaker patient groups such as patients in need of obesity surgery, which hit GHP Bariatric Center Stockholm hard in the fourth quarter. Developments are by and large going our way, however. Patients are being given greater and greater opportunities to choose care provider, not least due to the new Patient Act, and demand for health care is increasing. With our focus on integrated care solutions with insurance companies, a successful start for GHP International as well as our efficiency work with the clinics, I am convinced that GHP has favourable conditions to develop strongly during the next few years. In addition, we are also looking at profitable acquisitions that can be developed, such as Urologcentrum, which was acquired at the beginning of 2016.

24 February 2016
Gothenburg
GHP Specialty Care AB (publ)

The Board

Queries should be addressed to:
Daniel Öhman, CEO, Tel: +46 708 55 37 07
Susanna Laursen, Acting CFO, Tel: +46 709 61 64 64

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 (publ) is required to publish the information herein according to the Swedish Securities Market Act. This information was published on 24 February 2016 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 Year-end report. When in doubt, the Swedish wording prevails.

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