The Medsi Group of Companies and its subsidiaries (“Medsi” or “the Group”), a leading national provider of medical and healthcare services in Moscow and other regions, has today published its unaudited consolidated US GAAP financial results for the year to 31 December 2011.

5 April 2011. Moscow, Russia.The Medsi Group of Companies and its subsidiaries (“Medsi” or “the Group”), a leading national provider of medical and healthcare services in Moscow and other regions, has today published its unaudited consolidated US GAAP financial results for the year to 31 December 2011.

Main financial results

• Revenues totaled US$199.0 million, up 27.2% year-on-year
• OIBDA equaled US$31.1 million, up 81.4% year-on-year
• The OIBDA margin was 15.6%, up 4.7 percentage points year-on-year
• The net profit was US$6.7 million, compared with a net loss of US$2.5 million in 2010

Main operating results

• The overall clinic area equaled 51,238 square meters, up 9.2% year-on-year
• The number of visits totaled 4,118,000, up 19.9% year-on-year
• The number of services provided came to 7,491,000, up 24.6% year-on-year
• The average ticket was US$48.3, up 6.1% year-on-year
• 40 new medical posts were opened in the regions
• The largest Medsi family clinic was opened in Moscow
• A new President was appointed

Commenting on the results, Medsi President Tatyana Sergeyeva said:

“As expected, in 2011, Medsi improved its key financial and operating results significantly, confirming our leading positions and high-quality management. Revenues rose by 27.2% year-on-year, driven by a rise of 19.9% in the number of visits and 24.6% in the amount of services provided. We attracted new customers to the clinics opened in 2010 and expanded the client base substantially during a marketing campaign in the autumn.

The launch of new facilities remains a key driver of the Group’s business. Last year, Medsi opened 40 new medical posts throughout Russia and its largest family clinic in Moscow to date. In addition, we continued our efforts to boost profitability at existing clinics.

In 2011, the average ticket rose by 6.1% year-on-year. The main focus of the Group’s extensive development drive was broadening the range of products and services, enhancing customer service and increasing operating efficiency.

Medsi delivered a net profit of US$6.7 million last year, compared with a net loss of US$2.5 million in 2010, thanks to improved operations. The main causes of the jump in profit were higher revenues and profitability.

I believe that the Group’s successes are directly linked to the professionalism and capabilities of our employees, both medical staff and managers. Medsi places great importance on gaining additional qualifications and conducts research actively. It has a Research Committee, which includes recognized leaders from Russia’s healthcare industry. The Group is an innovator of convenient and affordable products and services on the market. Thanks to its attention to quality management in clinics and prudent marketing campaign, Medsi strengthened its positions on Russia’s private healthcare market last year.”