EMC announces operating results for the FY’2021

Cyprus, 31 January 2022. 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 the results of operating activities and key financial indicators according to the unaudited financial statements for the FY’2021.

Key operating results for FY’2021

• The number of outpatient clinic visits amounted to 590,759 (an increase of 12.7% y/y), due to the growth in the areas of therapy, emergency care, physiotherapy, ophthalmology, psychiatric help, and radiotherapy.
• The average purchase amount for outpatient services amounted to EUR 262 (a decrease of 0.6% y/y), stable level supported by an increase in the average check in the areas of radionuclide diagnostics, neurosurgery, and emergency care.
• The number of hospital admissions amounted to 24,843 (an increase of 82.8% y/y), primarily in the areas of oncology (chemotherapy) and radiotherapy, as well as new services in the areas of radionuclide diagnostics and therapy. The first two directions showed a more than three- and two-fold increase in hospitalizations, respectively.
• Excluding day clinic (where chemotherapy services are mainly provided) the number of hospital admissions amounted to 9,229 (an increase of 5.5% y/y). The growth is in the specializations of orthopedics, traumatology, rehabilitation, ophthalmology and plastic surgery.
• The average purchase amount for hospital services amounted to EUR 4,908 (a decrease of 25.9% y/y). The dynamics of the average check is due to the increased share of chemotherapy procedures which have a lower average check compared to more complex and high-tech treatment. This dynamics were fully offset by a sharp increase in the number of hospital admissions, as well as an overall increase in the turnover of beds and a significant reduction in the average time of stay.
• The average purchase amount for hospital services, excluding day clinic, amounted to EUR 7,664 (an increase of 10.2% y/y). The main contribution to the increase was made by the ward department, dermatology, mammology and cosmetology.

Key financial indicators for FY’2021

• The Group's adjusted consolidated revenue in 2021 amounted to EUR 288.75 million (an increase of 19.7% y/y). The main drivers of the growth were procedures and manipulations, PET diagnostics, laboratory tests and diagnostic programs. Such dynamics reflect the development of preventive medicine trends in health care.
• The Group's adjusted consolidated revenue converted into rubles  amounted to RUB 25,105.66 million (an increase of 26.3% y/y). An additional support was provided by the stable growth of the euro exchange rate, which confirms the advantage of nominating revenue in hard currency.
• Revenue from outpatient and home care services in 2021 amounted to EUR 154.63 million (an increase of 12.0% y/y) due to an increase in the number of patient inquiries.
• Hospital revenues in 2021 amounted to EUR 121.92 million (+35.4% y/y) as a result of a sharp increase in the number of chemotherapy procedures within the day clinic.

EMC CEO Andrey Yanovsky noted in his comment on the results of the full year 2021:

"EMC has completed its first year as a public company, and we can now summarize the preliminary results. During the year, the pandemic still exerted significant pressure on the market of planned medical services, investments of the public and private sectors were closely associated with COVID-19. We are confident that such a one-sided approach carries unjustified risks for development in the future and have focused our efforts on regular business - the provision of planned medical care in more than 50 medical specializations. I would like to note that the company has achieved all its goals and in this difficult situation, the revenue growth for the 2021 overpassed analysts' expectations and the growth rate of the medical services market as a whole. The great results prove the correctness of our long-term strategy for strong continued growth and build-up of a joint center of medical expertise. At the same time, the growth in the number of customers is the best confirmation of our commitment to the highest quality services using the latest tech and knowledge.

The second important factor is that we have fulfilled all the promises we made to investors before the placement of our shares. In 2021, the company paid 114.5 million euros to investors for 2020 and the first half of 2021, which fully corresponds with the approved dividend policy for the payment of up to 100% of net profit. We plan to keep this practice in 2022. Outstripping revenue growth in rubles and dividends in hard currency act as a natural hedge for investors – in conditions of volatility in financial markets, EMC shares are a protective instrument combining stable growth and high dividend yield.

Separately, it should be noted that the company maintains its leading positions in oncology, offering the most modern and high-tech methods of diagnosis and treatment available to patients under mandatory health insurance programs. Oncology remains one of the most acute problems of society, in this regard, in 2022 we plan to launch a new clinic on the basis of the Moscow Regional Clinical Research Institute named after M. F. Vladimirsky (MONIKI). This will be the third public-private partnership project for EMC.  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.

In conclusion, I would like to add that in 2021 we have started a new chapter in the history of the company's development, which would not have been possible without the trust and support of our team, customers, partners and investors. We intend to continue progressive development, meeting the expectations of all stakeholders of the company."

Оperating results for FY’2021

• Excluding day clinic (where chemotherapy services are mainly provided) the number of hospital admissions amounted to 9,229 (an increase of 5.5% y/y).
• The average purchase amount for hospital services, excluding day clinic, amounted to EUR 7,664 (an increase of 10.2% y/y).

Financial summary for FY’ 2021

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.