CLÍNICA BAVIERA COMPANY DESCRIPTION KEY FINANCIALS

Transcription

1 47 COMPANY DESCRIPTION Clínica Baviera is the leading provider in Spain of ophthalmological services for the correction of eye conditions such as myopia, astigmatism or presbyopia. At 31 December 2008 Clínica Baviera had 54 eye care clinics and counselling centres, of which 39 were in Spain, 13 in Germany, Austria and the Netherlands (through the subsidiary Care Vision), and two in Italy; and a team of 135 ophthalmic surgeons. Clínica Baviera also offers aesthetic and cosmetic surgery services through Clínica Londres. At year-end 2008 Clínica Londres had 13 centres in Spain, at which it provides services including cosmetic medicine, plastic surgery and obesity treatment. In 2008 Clínica Baviera accelerated its international expansion through the acquisition of Care Vision (a company with eye care clinics in Germany, Netherlands and Austria) and the opening of a second eye care centre in Milan (Italy). The Company has been listed since 3 April KEY FINANCIALS in millions of euros unless otherwise indicated Sales EBITDA EBIT Net profit Earnings per share (euros Dividend per share (euros) ROE (%) Total assets Net financial debt 16 (3) (7) Shareholders equity Debt / Equity (%) 81.9 (13.6) (36.3) Note: In 2006 Clínica Baviera s financial year ended on 30 November. In 2007 the closing date was changed to 31 December.

2 48 SALES BY BUSINESS SEGMENT REVIEW OF THE COMPANY S OPERATIONS DURING In 2008 Clínica Baviera carried out more than 63,000 eye operations and attended to nearly 73,000 patients. It currently has an estimated market share of nearly 30% in laser eye surgery in Spain. In 2008 Clínica Baviera slightly reduced the rate of organic growth compared to recent years, opening four new eye care centres, three in Spain and one in Italy. In contrast, the acquisition of Care Vision entails a considerable leap in its international expansion strategy, bringing significant market share gains in key countries such as Germany and the Netherlands. The acquisition price was 8 million euros, plus future payments of up to 10 million euros, depending on the Company s performance. The economic crisis has affected Clínica Baviera through the decline in demand and the consequent decrease in sales and margins. Clínica Baviera s strategy for 2009 in ophthalmic services in Spain is focused on consolidating and increasing its market share, growing the business of laser vision correction for presbyopia and intraocular surgery, and maintaining margins through cost containment. Outside Spain, the Company s objectives in Care Vision are to complete the subsidiary s integration in the group and consolidate the new centres opened in In Italy the goal is to increase brand awareness and number of patients in order to improve profitability. During 2009 Clínica Baviera plans to open two new clinics in Spain and another five in the markets served by Care Vision. In the aesthetics business, Clínica Londres has significantly expanded its network of cosmetic and medical surgery and treatment centres in Spain, having opened three new clinics in 2008, bringing the total to 13 at the end of the year. Clínica Baviera s strategy for 2009 in the aesthetic medicine business is determined by the weakness of demand and is focused primarily on recovering margins and implementing efficient marketing policies, there being no plans to open new clinics. The long-term goal is to make Clínica Londres the leader in aesthetic medicine in Spain. CB Spain 74.3% CB London 17.6% Care Vision 7.6% CB Italy 0.5% EBITDA BY BUSINESS SEGMENT CB Spain 99.3% Care Vision 0.7% (*) Both Clínica Baviera Italia and Clínica Londres have negative EBIITDA as a result of the expansion process and the business slowdown.

3 49 SHAREHOLDER STRUCTURE The ophthalmic surgery area accounts for the bulk of the Clínica Baviera group s turnover, with sales of 73 million euros in 2008, up 10.2% compared to the previous year, thanks to the integration of Care Vision and the first contributions from the Italian operations. If we consider Clínica Baviera España on its own, total revenues decreased 0.6% in 2008 to 65 million euros. This slight fall is due to the worse performance of the clinics in existence at the beginning of 2007 (like-for-like sales down 6.3%) which was almost completely offset by the income from the new clinics opened in 2007 and 2008, which contributed 8.5% of total 2008 sales. The EBITDA of the ophthalmic surgery area fell 21.1% in 2008 to 18 million euros under the impact of the 16.3% decline in Spain and the start-up losses in Italy, while the contribution of Care Vision to EBITDA this year was almost nil. Focusing on the activities in Spain, the EBITDA margin fell from 34.3% in 2007 to 28.9% in 2008 as a result of higher consumption due to the increase in intraocular surgery, which has a higher cost per lens, and higher staff costs associated with the more recent openings. The aesthetic surgery area is currently in a phase of consolidation, following the substantial increase in number of clinics since Revenues from this business increased 22.7% in 2008 to 15 million euros, thanks to the contribution of the newly opened clinics, despite a slight fall of 1.5% in like-for-like sales in the clinics already in existence in December The 2008 EBITDA is slightly negative, on account of the start-up costs of the new clinics. Overall, Clínica Baviera s sales were up 12.2% at 88 million euros, EBITDA up 23.8% at 17 million euros and net profit up 44.0% at 7 million euros. A total of 8 million euros was invested in organic growth in 2008, through the opening of new clinics (52.9% of the total) and new equipment and alterations to existing clinics (the remaining 47.1%). Some 79.2% of the investment went to ophthalmic services (65.8% in Spain and 13.4% in Care Vision) and the remaining 20.8% to the cosmetic surgery area. As already mentioned, the acquisition of Care Vision itself entailed an investment of 8 million euros. Clínica Baviera s high rate of cash generation allowed it to maintain a strong financial position, with net debt of 16 million euros at 31 December 2008, less than one times 2008 consolidated EBITDA, despite the investments made during the year and the payment of a dividend totalling more than 7 million euros out of 2007 earnings. On 25 March 2009 Clínica Baviera announced that the 2008 profit would be allocated to voluntary reserves to increase the Company s capital strength at a time of international expansion. In line with previous years, it is foreseeable that the Company would resume dividend payments if the 2009 budget is met. At 31 December 2008 Alba had a 16.36% interest in Clínica Baviera and was the second largest shareholder after Messrs. Julio and Eduardo Baviera. Alba is represented on Clínica Baviera s Board of Directors by Mr. Luis Lobón Gayoso. SHAREHOLDER STRUCTURE AT 31/12/ Investments Ballo Holdings 15.4% Inversiones Telesan 5.5% Alba 16.4% Inversiones Dario 3 9.3% South American Farming 5.0% Free-float 48.4% Source: CNMV.

4 50 SHARE PRICE PERFORMANCE The Clínica Baviera share started trading on 3 April 2007 at a price of euros. That same year the price rose 29.4% compared to the initial offering price. In 2008 the Clínica Baviera share price suffered a steep decline of 70.2%, ending the year at 7.10 euros per share. This substantial fall is attributable to the downward trend in the markets as a whole and the exposure of Clínica Baviera s businesses to the economic cycle and the reduction in discretionary consumption, leading to weak earnings performance in 2008 and high uncertainty regarding 2009 earnings. SHARE PRICE PERFORMANCE SINCE 31 DECEMBER 2007 Price Prece per share ( ) Ibex 35 (base CBAV) dec mar jun sep dec Source: Bloomberg.

5 51 HISTORICAL STOCK MARKET DATA Share price in euros per share (closing prices) High Low Close Number of shares in issue (thousands) 16,308 16,308 Stock market capitalisation at 31/12 (million euros) Volume traded Total number of shares (thousands) 8,474 22,259 Daily average: In thousands of shares As % of total shares in issue 0.21% 0.73% In thousands of euros 456 2,809 Dividend yield (on closing price for the year) 0.00% 1.97% P/E ratio (on closing price for the year) 16.5 x 32.2 x