EMC announces operating results for 9M 2021

Cyprus, 28 October 2021. United Medical Group CY PLC (hereinafter referred to as "the Company", together with its subsidiaries, "the Group" or "EMC", MOEX ticker: GEMC), a leading provider of comprehensive premium medical services in Russia, operating under the brand "European Medical Center", hereby reports on operating and unaudited financial results for the first nine months of 2021.

Key operating results for 9M 2021

  • The number of outpatient clinic visits rose 17.9% year-on-year to reach 440,455 in the first nine months of 2021. The visits were primarily for general treatment, emergencies, physiotherapy, ophthalmology and psychiatric help.
  • The average purchase amount for outpatient services amounted to EUR 261 (-0.6%), due to accelerated growth of medical services with a lower average check, including telemedicine services.
  • The number of hospital admissions amounted to 16,433 (+49.2%) primarily for oncology, rehabilitation, ophthalmology and radiotherapy. This strong growth comes on the back of rising numbers of chemotherapy procedures both as paid services and under mandatory health insurance programs.
  • The average purchase amount for hospital services amounted to EUR 4,988 (-19.9%), due to the increased share of chemotherapy procedures which have a lower average check compared to more complex and high-tech treatment.

Key financial indicators for 9M 2021

  • The Group's adjusted consolidated revenue in the first nine months of 2021 amounted to EUR 205.79 mln (16.5% y/y). The main drivers of the growth were oncology, emergency care, ophthalmology, pediatrics, radiotherapy and rehabilitation.
  • The Group's adjusted consolidated revenue converted into rubles amounted to RUB 18,203.08 million (+29.7% y/y) due to a stable euro in Q3 2021.
  • In the first nine months of 2021, revenues from outpatient and home care services amounted to EUR 114.98 mln (+18.2% y/y), primarily due to the significant increase in the number of patient inquiries.
  • Hospital revenues in the first nine months of 2021 amounted to EUR 81.97 mln (+19.5% y/y) due to the expansion of hospital services as well as the number of hospitals under mandatory health insurance programs.

EMC CEO Andrey Yanovsky noted in his comment on the results of the first nine months of 2021:

“EMC’s long-term development strategy is about strong continued growth, and that is what makes us different not only from other players in Russia, but also globally. Our continued positive dynamics is evidence that the company is on the right path, and its team is demonstrating efficient hard work. The number of outpatient clinic visits grew 17.9% in the first nine months of this year, while the number of patients admitted to hospitals increased 1.5-fold. The Company has demonstrated growth not only in its leading areas, but also for outpatient clinic services in most specializations. I would like to pay special attention to the fact that the share of modern and high-tech treatment methods is increasing. All this has helped EMC’s revenue grow 16.5% in the first nine months of the year.

One of the Company’s priorities is to become a single center of medical expertise, providing the highest quality services using the latest tech and knowledge. I am happy to see the praise that our services and attention to every EMC patient are getting, while our results are acknowledged internationally. This fall we became the first clinic in the world to receive the Luxury Lifestyle Awards commending companies across various sectors for exceptional achievements and flawless service. We also prioritize digital solutions which we have been developing consistently over the past several years, while the pandemic has served to prove the importance of remote services for our patients. Here are a few facts and figures for you: telehealth services in the post-COVID period have grown around 860%, with more than 50,000 people downloading EMC’s mobile app. When it comes to processing inquiries, we employ neural network and AI solutions on our high-tech platform, and we are planning to use these technologies elsewhere in our business processes. Our digital achievements have also been noted – at a recent forum titled “Quality of service and consumer rights” in Istanbul our mobile app and customer profile area won awards in the Healthcare category.

In September we also began designing a new clinic in partnership with the Moscow Regional Clinical Research Institute named after M.F. Vladimirsky (MONIKI). The clinic will be providing oncology treatment under mandatory health insurance programs to patients living in the Moscow Region. Investment in the project is worth an estimated RUB800-1,000 mln. This will be our second joint project of this kind – last year EMC launched a 1,900 sq. m. oncology center together with a clinic in Kolomna and the Moscow Region authorities.

I would also like to add that we are committed to take all necessary measures to protect our employees as well as our patients in the light of the recent worsening of the pandemic situation in Russia. Our work will continue despite the lockdown measures.”

Оperating results for 9M 2021

Parameter

9M of 2021

9M 2020

Change

Outpatient clinic

 

 

 

Visits, number

440,455

373,553

17.9%

Average purchase amount, EUR

261

263

-0.6%

Hospital

 

 

 

Hospital admissions, number

16,433

11,013

49.2%

Average purchase amount, EUR

4,988

6,226

-19.9%

Financial summary for 9M 2021

Parameter

9M 2021

9M 2020

Change

Adjusted revenue, EUR mln

205.79

176.62

16.5%

Adjusted revenue, RUB mln

18,203.08

14,032.81

29.7%

 

 

 

 

Revenue from medical servicesEUR mln, incl.

196.96

166.64

18.2%

Outpatient and home care

114.98

98.07

17.2%

Hospital

81.97

68.57

19.5%

About the company

EMC is a leading multidisciplinary provider of premium healthcare services in Russia with the longest track record of any major private healthcare business in this market. EMC is a fully integrated healthcare services provider offering a comprehensive range of diversified medical services, and has advanced capabilities in more than 57 specialisations, differentiating it from the competition in Russia. The company utilises a patient-centric approach to its healthcare services offering, which allows it to provide patients with a full range of diagnostics and treatment services as well as offer tailor-made medical care.

EMC also is a leading Russian provider of cancer treatment with extensive expertise in a full range of modern oncology treatment methods, state-of-the-art facilities and equipment as well as renowned experts with international experience.

EMC’s network comprises seven multidisciplinary medical centres, one maternity centre and one rehabilitation centre (with a total built-up area of approximately 87 thousand square metres), as well as three geriatric centres (with a total built-up area of approximately 14 thousand square metres). As at 30 June 2021, the Group had 2,593 employees, comprising 752 physicians, 1,472 nurses and other medical staff and 369 administrative and support staff.

Company’s depository receipts have traded on Moscow Exchange since July 15, 2021, under the ticker “GEMC”.

Contacts
Investor relations
EMC

Dmitriy Ivanov
Head of Investor Relations

ir@emc-investors.com
https://emc-investor.com
https://t.me/emcinvestor

Media relations
UMG PR

pr@emcmos.ru

EM

Dmitriy Zhadan
zhadan@em-comms.com

Ekaterina Shatalova
shatalova@em-comms.com

Important Note

NEITHER THIS ANNOUNCEMENT NOR THE INFORMATION CONTAINED HEREIN IS FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR TO ANY PERSON IN ANY OF THOSE JURISDICTIONS OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE LAWS OF SUCH JURISDICTION.

These materials are not intended to and do not constitute investment advice. These materials do not constitute or form any part of and should not be constructed as an offer or commitment to sell or issue, a solicitation, recommendation, commitment or invitation to subscribe for, underwrite or otherwise acquire, and should not be construed as an advertisement for, any securities of United Medical Group CY PLC or any member of its group in any jurisdiction or an inducement to enter into investment activity in any jurisdiction.

These materials have been prepared on the basis of the Group’s management accounts. These materials do not contain sufficient information to constitute a full set of financial statements. The numbers presented in this statement have not been audited.