MPH Health Care : Interim Report 2023

Health

Care AG

INTERIM REPORT

2023

2

Health

Care AG

Guiding principle

As an investment company, the strategic focus of MPH Health Care AG's activities is on companies in the high-growth segments of the healthcare market and the real estate industry. The healthcare market served by MPH's investments includes both the segments financed by health insurance companies ("first healthcare market") and the privately financed segments (so-called "second health- care market"). Against the background of demographic developments in Germany and Europe, we expect the first and second healthcare markets to continue to grow in the coming years. A society that is growing older due to increasing life expectancy requires a stable supply of medicines over a longer period of time ("first healthcare market" segment). In addition, health and body awareness and demand for medical-aesthetic services are increasing in old age ("second healthcare market" segment).

MPH aims to exploit the resulting potential. In doing so, MPH works in partnership with the portfolio companies. The aim is to generate profitable growth in the companies through active further development, thereby increasing not only the value of the respective portfolio company itself, but also the enterprise value of MPH Health Care AG. However, MPH Health Care AG is not exclusively focused on the healthcare and real estate markets. There are also investment opportunities in other high-growth sectors, whose successes we would like to exploit and expand.

KEY AREAS OF MPH HEALTH CARE AG

LISTED

			Health
SEGMENTS			Care AG
BEAUTY	PHARMA	REAL ESTATE
COMPANIES	M1 KLINIKEN AG		CR ENERGY AG
		HAEMATO AG
AREAS	Plastic and	Medical products	Integrated real estate
aesthetic	and medical devices	investment manager
treatments	in the areas:	Renewable Energies
BUSINESS	and surgery	"Specialty Pharma" and	Project Development
Trade	"Lifestyle & Aesthetics"	New residential
		construction/
			Private homes

UNLISTED

VENTURES

Cytostatic solutions for cancer therapies

European pharmacy distribution

Incubator for new ideas and business models (telemedicine, diagnostics, etc.)

3

Content

1.	Letter to the shareholders	5
2. Net Asset Value of MPH Health Care AG	7
3. MPH on the capital market	8
4.	Short profile of of investments	9
	M1 Kliniken AG	9
	HAEMATOAG	11
	CR Energy AG	13
5. Interim Group Management Report	15
	5.1 Business model of the company	16
	5.2	Economic report	16
	5.3	Business development and position of the company	21
	5.4	Forecast report	22
	5.5	Economic outlook	23
6.	IFRS Interim Financial Statement	26
7. IFRS Shortened Annex (notes)	32
8.	Further information	35

XETRA

Development

of MPH Health Care AG share

as of

30.06.2023

(Xetra)

EUR 16.00

EUR

22.50

20.00

17.60 €

17.50

15.00

12.50

10.00

7.50

5.00

07

08

09

10

11

12

01

02

03

04

05

06

07

08

2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2023 2023

4

16.85 €

(31.08.23)

KEY FIGURES FOR THE SHARE

Number of shares as of 31.12.

WKN / ISIN

Ticker symbol

Class of shares

Market places

Market segments

Designated Sponsor, Listing Partner

Coverage

Market capitalization

as of 30.06.2023

4,281,384

A289V0 / DE000A289V03

93M1

Bearer shares

Xetra, Frankfurt, Stuttgart, Dusseldorf, Berlin, Munich,

Hamburg, Tradegate

Open Market - Frankfurt Stock Exchange

ODDO BHF

First Berlin Equity Research, GBC Research

EUR 68.5 mn (as of 30.06.2023 -Xetra, prev. year 30.06.2022: EUR 74.5 mn)

5

Brief an die Aktionäre

Dear Shareholders,

Ladies and Gentlemen

According to the ifo economic forecast from the end of June 2023, different forces are shaping economic development in Germany: Inflation is slowly easing - but the economy is still "stuttering". The high upward pressure on prices once again reduced households' real incomes and thus consumption in the spring. It will not be until the second half of the year that incomes are expected to rise more strongly than prices again and private consumption to pick up. Construction activity will cool throughout the forecast period. According to the ifo, gross domestic product will decline by 0.4% this year and increase by 1.5% next year. Inflation rates are expected to fall further in the coming months (starting from a high level).

Although our listed shareholdings achieved very good operating results in the fiscal year 2022 and the first half of 2023, this has not yet been fully reflected in the stock market prices of these shareholdings. Due to the (non-cash) fair value measurement of the investments as of the reporting date of 30 June 2023, MPH recorded a net loss after tax (in accordance with IFRS accounting) of EUR 15.4 mn (first half of 2022: net loss of EUR 36.0 mn). In the fiscal year 2022, a surplus of 29.1 mn euros was generated (on an annual basis).

In the first six months of 2023, operating income increased slightly from EUR 0.27 mn to EUR 0.35 mn. Operating expenses were reduced significantly from EUR -36.8 mn to EUR -15.9 mn.

Equity decreased by 7% to EUR 206.0 mn compared with 31 December 2022. However, the net asset value (NAV) per share increased significantly year-over-year from EUR 36.51 (30 June 2022) to EUR 48.12 as of 30 June 2023. The equity ratio of 93.3% as of 30 June 2023 is almost unchanged compared to 31 December 2022 (93.4%) and reflects the healthy capital structure of MPH.

Due to the current uncertainties caused by the ongoing Ukraine crisis and a high level of inflation, our listed investment M1 Kliniken AG decided at its Annual General Meeting on 19 July 2023 not to pay a dividend in order to strengthen liquidity and expansion. The Annual General Meeting of the second listed subsidiary CR Energy AG was held on 14 July 2023. There, an (unchanged) dividend of EUR

2.50 per dividend-bearing share was approved as a result of the once again pleasing business and earnings performance in 2022. As in the previous year, the dividend could be received either in cash or in the form of shares in the company.

In order to have sufficient financial room for manoeuvre further growth and expansion of the investments, it was decided at the Annual General Meeting of MPH Health Care AG on 20 July 2023, not to distribute a dividend and to carry forward the net profit for the fiscal year 2022 in full to new account.

The operational development of our two listed investments is pleasing and in line with expectations.