MD Medical Group IPJSC ("MD Medical", "Group" or the "Company"; MOEX: MDMG), a leading Russian private healthcare provider, announces audited consolidated financial results for 6M ended 30 June 2024 under IFRS.

Key financial highlights for H1 2024:

• Total revenue increased by 22.6% year-on-year (y-o-y) to RUB 15,760 million mainly thanks to a hike in revenue from in-patient and out-patient treatments and a substantial improvement of performance in deliveries

• EBITDA went up by 23.5% y-o-y to RUB 5,061 million. EBITDA margin rose by 0.2 p.p. y-o-y to 32.1%

• Net profit grew by 45.1% to RUB 4,886 million. Net profit margin rose by 4.8 p.p. y-o-y to 31.0%

• Operating cash flow increased by 19.6% y-o-y to RUB 5,222 million

• Capex totalled RUB 946 million, down 51.5% due to investments in the hospital on Moscow’s Michurinsky Avenue in H1 2023

• As at 30 June 2024, the Group’s net cash position stood at RUB 13,328 million. Net cash position / LTM EBITDA ratio was 1.3x

Key operational highlights for H1 2024[1]:

• Total in-patient treatments rose by 6.8% y-o-y to 75,518

• Total out-patient treatments increased by 19.3% y-o-y to 1,183,219

• Total deliveries increased by 20.0% y-o-y to 5,402

• Total IVF punctures went up by 3.8% to 9,704

Key events during H1 2024 and after the reporting period:

• H1 2024 Dividends announcement. At the meeting held on 28 August 2024, the Company’s Board of Directors decided in addition to the interim dividends already paid for 3M 2024 to distribute dividends for 6M 2024 in the amount of RUB 1.7 billion, or RUB 22 per ordinary share, representing a cumulative payout of 61% of the Group's IFRS consolidated net profit for 6M 2024. Dividend payments are scheduled to be made before mid-September

• 3M 2024 record-breaking dividends payment. In July 2024, dividends were paid based on the results of 3M 2024 on ordinary shares of MD Medical Group IPJSC in the amount of
  c. RUB 10.6 billion, or RUB 141 per ordinary share, including the use of retained earnings from previous years

• New clinic in Lipetsk launch. In August 2024 the Group opened its clinic in Lipetsk. The new 450 sq m clinic has a capacity sufficient to perform 800 IVF cycles, including those covered by mandatory health insurance, and to accommodate 18,000 outpatient visits annually.  Total investments in the project came in at RUB 103 million.

• New medical center in Anapa launch. In August 2024 MD Medical opened its new two-storey family-oriented medical centre MD Group Anapa which spans 2,754 sq m on the premises of the Volleygrad sports and recreation family resort. The state-of-the-art healthcare facility boasts advanced medical equipment for clinical, diagnostic, and rehabilitation services, and was built in 2024 with no investment made by the Company in its development. The Company will operate the centre based on the lease agreement for the premises and equipment. The medical centre has a total capacity of up to 96,000 appointments per year.

• Expanding operations to a new region – Republic of Komi. In June this year MD Medical acquired RGS-Med clinic in Syktyvkar, the capital of the Republic of Komi,   is one of the largest private multifunctional medical centres in the Republic of Komi providing comprehensive consultative, diagnostic, therapeutic and preventive healthcare services for adults and children across a wide range of medical disciplines since 2024. The total cost of the deal is RUB 25 million paid from the Group's own funds. The Company plans to upgrade the clinic, among other things, by enhancing its competencies with in-house solutions in such popular area as infertility treatment and IVF. Further investments in the project will come close to RUB 80 million.

• Start of trading in shares of MD Medical Group IPJSC. Due to completion of automatic conversion of securities after the Company's redomiciliation, trading in ordinary shares of MD Medical Group IPJSC (ticker: MDMG, ISIN: RU000A108KL3) commenced on the Moscow Exchange on 17 June 2024.

• State registration of MD Medical Group IPJSC in Russia. Оn 28 May 2024 the Company has finalized its state registration in the Special Administrative Region on Oktyabrsky Island in Russia's Kaliningrad Region as an International Public Joint-Stock Company MD Medical Group Investments (the short name: MD Medical Group IPJSC). The process is regulated by the Federal Law "On International Companies". At the beginning of July the Company has received from the Cyprus Registrar a Certificate of Striking from 28 May 2024 MD MEDICAL GROUP INVESTMENTS PLC off the register of companies of the Registrar of Companies in accordance with the Cyprus Companies Law, because it is continuing under the legal regime of another country of jurisdiction.

• MD Group Zilart multifunctional family clinic in Moscow launched. In January 2024, the Group opened a new 452 sq m multifunctional medical centre with an annual capacity of over 50,000 out-patient treatments. Total investments in the project exceeded RUB 81 million.

MD Medical CEO Mark Kurtser said:

“We are delighted about the Company's strong operating and financial performance in H1 2024. The Group posted 23% growth in both revenue and EBITDA, while maintaining a solid EBITDA margin of 32%. Excellent results were driven by the commendable operating performance of our medical centres across Russia. Our Moscow and regional hospitals saw demand for deliveries soar in the reporting period, with the number of deliveries up 20%, high bed occupancy and strong demand for out-patient care in both multifunctional, women's and children's healthcare. These achievements predominantly underscore the high quality and widespread accessibility of our medical care.

For years, we have shared our successes with our shareholders. Today’s dynamic profit growth (up 45% in H1), coupled with a manageable level of capital expenditure, enables us to pay dividends exceeding 60% of the period's profit for the second time this year. Following the decision made by the Company's Board of Directors yesterday, an additional RUB 1.7 billion will be distributed as H1 2024 dividends in September, complementing the dividends already paid for 3M 2024.

This autumn marks the opening of several new clinics for us. We remain committed to expanding and consolidating our presence in Moscow and other regions, granting an increasing proportion of Russia's population access to state-of-the-art medical care.”

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[1] For more details on operational highlights, see our press release dated 31 July 2024

Notes:
1.     Data is based on management accounts
2.     Minor variations in calculation of totals, subtotals and/or percentage change are due to rounding of decimals
3.     1H 2024 results materials incl. consolidated financial statements are available on the Group’s website: www.mcclinics.com/investors/financial-reports/

Analyst and investor conference call:

Date: 29 August 2024
Time: 12.00 PM Moscow
Event Language:  Russian
Speakers:   

• Mark Kurtser, CEO
• Iya Lukianova, CFO
• Olesya Lapina , IR Director

Registration for the call is available following the link: https://us02web.zoom.us/webinar/register/WN_1u8oRZRLTvGkjG0UU4bVNw#/registration
A replay of the call will be available on the Company’s website shortly after the end of the live event.

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About MD Medical Group

MD Medical Group is a leading provider in the highly attractive Russian private healthcare service market. Today, the Company manages 58 state-of-the-art healthcare facilities, including 11 multidisciplinary hospitals and 47 out-patient clinics in 29 regions of the Russian Federation. In 2023, MD Medical Group's revenue amounted to RUB 27.6 bln while EBITDA was RUB 9.2 bln. The Company's ordinary shares are traded on Moscow Exchange (MOEX: MDMG).