LIMES Schlosskliniken : Half-year Report 2021

2021 Half-year Report

Consolidated

LIMES Schlosskliniken2021 Half-year Report2

LIMES Schlosskliniken AG

AT A GLANCE

Group performance indicators

Revenues

Patient days

Gross earnings (EBITDA)

EBITDA margin

Amortisation

Operating result (EBIT)

EBIT margin

Financial result

Earnings after taxes (EAT)

Long-term assets

Short-term assets

Balance sheet total

Equity

Equity ratio

Equity-like instruments / partner loans

Expanded equity ratio

Liquid assets

Result per share as per DVFA* (German Association for Financial Analysis and Asset Management)

Employees at end of period

Revenue per employee

No-par value shares

• based on number of no-par value shares in circulation

January - June 2021

8,170 kEUR

15,525

2,278 kEUR

27.9 %

603 kEUR

1,675 kEUR

20.5 %

- 102 kEUR

1,552 kEUR

7,067 kEUR

5,655 kEUR

12,722 kEUR

4,231 kEUR

33.5 %

3,100 kEUR

57.6 %

3,003 kEUR

5.29 EUR

138

59 kEUR

293,192

293,192

January - June 2020

4,578 kEUR

9,721

15 kEUR

0.3 %

524 kEUR

• 509 kEUR - 11.1%
• 136 kEUR
• 645 kEUR

7,912 kEUR

4,564 kEUR

12,476 kEUR

2,728 kEUR

21.9 %

5,125 kEUR

62.9 %

3,131 kEUR

- 2.20 EUR

124

37 kEUR

293,192

293,192

Change

+78.5 %

+59.7 %

> 100 %

n.a.

+15.1 %

n.a.

n.a.

-25.0 %

n.a.

-10.7 %

+16.6 %

+2.0 %

+55.1 %

+53.0 %

-39.5 %

-8.4 %

+1.0%

n.a.

+11,3 %

+60,4 %

0 %

0 %

LIMES Schlosskliniken

2021 Half-year Report

3

Business performance from 1 January to 30 June 2021

• Revenue 8.2 million EUR (PY: 4.6 million EUR) +78.5 %
• Gross earnings in the period (EBITDA) +2,278 kEUR (PY: +15 kEUR)
• Operating result (EBIT) +1,675 kEUR (PY: -509 kEUR)
• Result for shareholders during the period +1,552 kEUR (PY: -645 kEUR)
• Result per share +5.29 EUR (PY: -2.20 EUR)
• Positive trend expected to continue in 2HY; sound financial footing

Dear Shareholders in LIMES Schlosskliniken and other interested parties,

The LIMES Schlosskliniken Group performed very strongly in the first six months of the year. The fact that both hospitals had good occupancy rates contributed to the success of the reported results. The positive feedback we received led to a marked increase in the number of patients treated.

Despite the difficult background of Covid-19, our clinic in Mecklenburg Switzerland was able to increase revenue once again in 1HY 2021, this time by +11 % to reach a total of 5 million EUR. We expect to see this trend continuing in 2HY.

Our new second site in Bad Brückenau was already able to generate revenue of 3.2 million EUR in 1HY. Occupancy rates are proceeding according to plan.

Our project team is currently preparing to open the third LIMES Schlossklinik in the Bergisches Land region near Cologne. We aim to open our doors in Q2 2022. We have already given the green light to architectural plans for a fourth hospital.

We are delighted to note that the LIMES brand has established a profile as a provider of high-quality psychiatric services within the spectrum of stress-related illnesses, depression, trauma and personality disorders, and is building an increasingly strong reputation in the market.

LIMES Schlosskliniken

2021 Half-year Report

4

Revenue

Across the Group, we were able to generate revenue of 8.2 million EUR in 1HY 2021. This impressive increase of +78.5 % was achieved partly through organic growth, but mainly because of the contribution made by the second hospital site. The number of patient days rose by +59.7 % to reach a total of 15,525.

Earnings performance

For the first time, the reported performance indicators reflect our operational results, which no longer had to include the start-up losses reported in the previous-year period. This meant that cash flow from business operations at group level was able to be increased significantly. In terms of EBITDA, we were able to generate earnings of 2.3 million EUR in the first six months of the current financial year. We expect the equivalent earnings in 2HY to at least match those of 1HY.

Amortisation costs increased in the first six months by +15.1 % to 603 kEUR because of the investments made and the costs associated with getting the hospital operation up and running.

The operating result (EBIT) at group level was +1,675 kEUR (PY: -509 kEUR). The financial

result improved slightly, at -102 kEUR (PY: -136 kEUR).

The consolidated earnings for the period, i.e. the result for shareholders of the parent company during the period was +1,552 kEUR (PY: -645 kEUR) for the first six months of the current financial year. Both hospitals were able to end the period in a very healthy position. We continue to record a sustained level of strong patient demand at both sites, and are optimistic that the positive trends of 1HY will continue in the six months ahead.

Assets and financial position

LIMES Schlosskliniken is on a sound financial footing. With a balance sheet total of

1. million EUR, the company's equity capital including partner loans is 57.6 % (PY:

1. %).

At the end of 1HY, the company has liquid assets of 3.0 million EUR (PY: 3.1 million EUR). Against this background and the free cash flow we have generated, we therefore have reason to feel confident about our future.

Long-term assets are reported as 7,067 kEUR (PY: 7,912 kEUR). This mainly represents goodwill amounting to 4,033 kEUR from the initial consolidation of the hospital in Mecklenburg Switzerland. The goodwill will be amortised over a period of ten years. 2,946 kEUR (PY: 3,169 kEUR) is tied up in fixed assets. Short-term assets rose to 5,655 kEUR (PY: 4,564 kEUR).

LIMES Schlosskliniken

2021 Half-year Report

5

AGM

Because of factors related to the coronavirus, the AGM of LIMES Schlosskliniken AG had to take place virtually from 10.30 am to 12.15 pm on 11 June 2021 at the ecos office center in Frankfurt.

All items on the agenda were discussed and approved by our shareholders.

Employees

On 30 June 2021, LIMES Schlosskliniken employed a total of 138 staff (PY: 124).

Risks and opportunities

The risks and opportunities to which the business activities of our company are exposed are described in detail in the Group Status Report, which we published alongside our Consolidated Financial Statements for 2020. These Consolidated Financial Statements can be accessed on the company website (www.limes-schlosskliniken.de). The risks and opportunities described there remained essentially unchanged during the reporting period.

Miscellaneous

On 11 August 2021, Chelverton Asset Management Ltd., Bath, Great Britain notified us that it holds 3.7 % of the shares in LIMES Schlosskliniken AG.

Outlook

We expect our previous growth in occupancy rates to continue throughout the remainder of the financial year, resulting in higher utilisation of our hospital capacity. The preparations for our third hospital will not represent a burden in any meaningful way during the rest of this year.

Meanwhile, we have been able to develop well-qualified and highly motivated management and employee teams at both hospital sites. We can therefore look forward to being able to offer our patients optimum conditions for treatment at specially-chosen locations as part of our Healing Environment approach.

Cologne, 20 September 2021

Dr. Gert Frank / Board Member