Should there be an employee's fortune

Result. Financial metrics. Sales. Investments. Employee. Wealth and capital. Occupancy

Transcript

1 Earnings Earnings before taxes in EUR million 0.001 0.945 1.606 1.804 Net income for the year in EUR -0,201 0.573 1.331 1.505 Earnings per share in EUR -0.05 0.21 0.48 0.45 Dividend per share in EUR 0.08 0 .05 0.15 0.15 Financial key figures EBITDA in EUR million 3.246 3.520 4.049 4.445 Cash flow in EUR million 2.377 2.251 2.484 4.463 Cash flow rate (total) in% 5.68 5.46 6.15 10.82 Equity ratio in% 35.62 40.29 48.22 45.08 Eifelhöhen-Klinik AG equity ratio in% 66.10 71.15 79.21 75.13 Sales Group sales in EUR million 39.33 38.98 38.41 39.33 Investments Investments in EUR million 8.77 5.03 0.68 0.52 Depreciation in EUR million 2.06 1.74 1.62 1.69 Full-time employees, annual average Personnel expenses per capita output in EUR 24. 32 23.17 23.03 22.99 in EUR Assets and capital Tangible assets in EUR million 39.81 33.15 29.87 30.82 Equity in EUR million 16.98 17.27 18.25 17.32 Balance sheet total in EUR million 47.67 42.88 37.86 38.42 Occupancy of care days Case number

2 Eifelhöhen-Klinik Dr.-Konrad-Adenauer-Str Nettersheim-Marmagen Telephone Telefax Aatalklinik Wünnenberg In den Erlen Bad Wünnenberg Telephone Telefax Graurheindorfer Str Bonn Telephone Telefax Kaiser-Karl-Klinik Graurheindorfer Str Bonn Telephone Telefax Mönchengladbach Herzpark Herzpark Mönchengladbach Louise-Gueury-Str Mönchengladbach Telephone Fax

3 Company profile of the Eifelhöhen-Klinik Group 2 Foreword by the Management Board 3 The committees of Eifelhöhen-Klinik AG 5 Report of the Supervisory Board 6 The management report 8 A. Economic report 8 a) General economic and sector-specific conditions 8 b) Business development 13 c) Earnings position 14 d) Financial position 15 e) Assets position 16 B. Supplementary report 16 C. Forecast, opportunity and risk report 16 D. Internal control and risk management system with regard to 20 the accounting process E. Basic features of the remuneration system for the group of people 20 in accordance with 285 sentence 1 no. 9 HGB F. Information in accordance with 315 (4) HGB 21 G. Declaration on corporate governance in accordance with 289a HGB 22 Annual financial statements Consolidated income statement 28 Consolidated balance sheet 29 Consolidated statement of comprehensive income 30 Consolidated cash flow statement 31 Consolidated statement of changes in equity 32 Notes to the consolidated financial statements 33 Responsibility statement 71 Auditor's report of the auditor 72 Table of contents 1

4 of the Eifelhöhen-Klinik Group Eifelhöhen-Klinik AG (based in Bonn operates facilities for rehabilitation, geriatric care and outpatient medical care. The listed Eifelhöhen-Klinik AG focuses on the high quality of the services it provides for patients and payers The Eifelhöhen-Klinik AG in the Rhineland includes the Eifelhöhen-Klinik Marmagen GmbH in Nettersheim-Marmagen (Eifel), a specialist clinic for rehabilitation medicine with the departments of internal medicine, orthopedics / traumatology, and neurology, and the Kaiser-Karl-Klinik GmbH in Bonn, a specialist clinic for rehabilitation Medicine with the departments of orthopedics, geriatrics, internal medicine and Chinese medicine (TCM) the Herzpark Mönchengladbach GmbH in Mönchengladbach Specialist clinic for outpatient cardiological rehabilitation a 6% stake in the Geriatric Center Zülpich GmbH Since 2002 the Eifelhöhen-Klinik AG has 70% of the Aatalklinik Wünnenberg GmbH in Bad Wünnen berg involved. In entrepreneurial cooperation with Kurverwaltung Wünnenberg GmbH (shareholders: Paderborn district and Bad Wünnenberg city), the company operates a modern specialist clinic specializing in neurology and orthopedics, as well as a care facility with 39 beds and a medical care center at the same location. The proportion of neurological beds in the total number of rehab beds set up in the Eifelhöhen Clinic Group is around 50%. History The Eifelhöhen-Klinik AG was founded in 1970 as Eifelhöhen-Sanatorium GmbH & Co. KG. In 1976, one year after the clinic in Nettersheim-Marmagen was put into operation, the name was changed to Eifelhöhen-Klinik GmbH & Co. KG and it was converted into a stock corporation. The approximately 400 limited partners of the GmbH & Co. KG took over the shares in the course of the conversion. During the long-term listing of Eifelhöhen-Klinik AG on the stock exchange, capital was increased several times, most recently in 1994 to the current level of TEUR. On January 29, 1999, the conversion to no-par shares with a simultaneous share split at a ratio of 1:10 took place. 2 company profile

5 Dear shareholders, The 2013 financial year of Eifelhöhen-Klinik AG closed with a result of EUR k. This means that the company's long-term, solid and economic development was successfully continued in 2013. The good quality of the services provided for the patients and the associated competitiveness of the Eifelhöhen-Klinik AG clinics compensated for the ongoing cost pressure in the rehabilitation market in 2013 and enabled further investments in innovative, future-oriented business models in the rehabilitation market. The 2013 consolidated result of EUR -201 thousand reflects the one-off up-front costs of establishing a new and innovative clinic location in Mönchengladbach. In the year under review, Eifelhöhen-Klinik AG implemented further important milestones in its medium-term business strategy. - With the extension of the Kaiser-Karl-Klinik, which has meanwhile been completed, and which can be used in both inpatient and outpatient settings, the rehabilitation services offered by the Kaiser-Karl-Klinik in Bonn have been further strengthened in terms of quantity and quality. Due to the demographic development and pension policy, older rehabilitation patients will also have to work longer lives in the future. Specialized medical institutions must have appropriate offers for this. An important element here is, inter alia. the combination of outpatient and inpatient rehabilitation in the treatment of orthopedic diseases. The social and medical challenges in shaping the working life that will be necessary in the future can be clearly demonstrated by the pension insurance figures forecast for this. Without labor policy measures, the number of people in employment will decrease by around 4 million by mid-2020. This is associated with a dramatic increase in the age structure of those in employment over 55 years of age. A further demand for specialized rehabilitation offers is to be expected increasingly to avoid or reduce the need for care. In particular, the therapy options for geriatric and dementia patients as well as medical competence through the involvement of geriatric specialists are required. With the structural and structural conditions now created for the Kaiser Karl Clinic and the orthopedics and geriatrics indications, the clinic in Bonn is flexible and future-oriented for these tasks for the next few years. The extension building was put into operation in the fourth quarter. The total investment made amounts to approx. EUR 4 million. - By establishing another city clinic in Mönchengladbach in 2014, in connection with an outpatient day clinic for cardiological rehabilitation, which has been operating since 2013, the business policy of Eifelhöhen-Klinik AG also takes into account the medical development in the cardiology indication. The concept of integrated care implemented in Mönchengladbach through networked outpatient and inpatient cardiac rehabilitation at one location meets the future requirements of modern cardiac rehabilitation medicine. The current developments in cardiac surgery (e.g. artificial hearts) and invasive cardiology increasingly require highly specialized aftercare and rehabilitation. The necessary prerequisites for this include: intensive external networking and coordination with the cardiological and cardiac surgical acuity centers in the geographical area of ​​a rehab clinic. The possibility of an internal combined rehabilitation, i. H. a flexible and individually tailored to the patient outpatient and inpatient rehabilitation. Foreword by the Board of Management 3

6 This model will be implemented at the Mönchengladbach location from mid-2014. Another focus of the rehabilitation offer in the Heart Park Mönchengladbach will include also be the treatment of patients with artificial hearts or cardiac support systems. As planned, the Eifelhöhen-Klinik AG, in addition to its AHB offers in Marmagen and Bad Wünnenberg, is also established with its rehabilitation in the Rhineland with a focus on the city and residential area, and is thus also future-oriented for current developments. After the investment years 2013/2014, a clearly positive earnings development is also aimed for in the group result. Bonn in April 2014 The board of directors Dr. med. Markus-Michael Küthmann 4 Foreword by the Board of Management

7 of the Eifelhöhen-Klinik AG from left: Karsten Leue, Birgit Wöstemeyer, Sigurd Roch, Markus-Michael Küthmann The Supervisory Board Dipl.-Oec. Karsten Leue The Executive Board Dr. med. Markus-Michael Küthmann (chairman) Birgit Wöstemeyer (deputy chairwoman / employee representative) Dipl.-Oec., Ing.Sigurd Roch The committees 5

8 The Supervisory Board performed the duties incumbent on it according to the law and the Articles of Association in the 2013 financial year, advised the Management Board on the management of the corporate group and monitored the company's management. In the 2013 financial year, the Supervisory Board held a total of five meetings. The Supervisory Board was involved in all decisions that were of fundamental importance to the company. The Management Board also provided the Supervisory Board with periodic information about current developments, key issues relating to corporate governance and the direction of the corporate group, and was involved in the selection of managers. In addition to the discussion about the level of dividends and dividend policy, the 2013 Annual General Meeting was particularly shaped by the expansion at the Mönchengladbach location. The interest in information related to the project in general and the expected effects on the future debt structure and EBITDA. As in the previous year, the focus of the Supervisory Board meetings was still on the development of the new location in Mönchengladbach. After the renovation and expansion of the existing clinic building, a modern cardiological center for outpatient and inpatient rehabilitation is being built on the site near the city, whereby the outpatient area was already successfully put into operation in the year under review. Another focus was the economic development of the Aatalklinik and the effects on the existing lease. The investment measures in the Marmagen clinics (renovation of the existing building) and Bonn (extension) were discussed in detail at each meeting. As in the previous year, the Group's liquidity position and financing structure are in order. The Supervisory Board approves the proposal of the Management Board to use the 2013 net profit to pay a dividend of EUR 0.08 per share and to transfer EUR 50 to other revenue reserves. In 2013, the Supervisory Board also dealt with the further development of the German Corporate Governance Code. The required declaration of conformity was published in December 2013. Reference is made to further information in the company's management report. The Management Board prepared the company's annual financial statements and the management report for the 2013 financial year in accordance with the provisions of the German Commercial Code, as well as the consolidated financial statements and the group management report for the 2013 financial year in accordance with the principles of the International Financial Reporting Standards (IFRS). The annual financial statements and the management report for the 2013 financial year as well as the consolidated financial statements and the group management report for the 2013 financial year were audited by the Cologne auditors and tax consultants Kurt Heller GmbH, Wirtschaftsprüfungsgesellschaft / Steuerberatungsgesellschaft, Cologne. The examination did not reveal any objections. The unqualified auditor's report was issued. The annual financial statements and the management report of the company, the consolidated financial statements and the group management report, as well as the auditor's reports, were forwarded to the members of the Supervisory Board together with the Management Board's proposal for the appropriation of profits. The documents were checked by the Supervisory Board and discussed with the auditors. In its meeting, the Supervisory Board reviewed the annual financial statements and consolidated financial statements prepared by the Management Board. 6 Report of the Supervisory Board

9 Society approved. The annual financial statements and the consolidated financial statements of the company are thus adopted. We would like to take this opportunity to express our thanks to all those involved and employees as well as the board of directors. The Supervisory Board April 24, 2014 The Supervisory Board Karsten Leue Chairman Report of the Supervisory Board 7

10 of the Eifelhöhen-Klinik Group for the 2013 financial year A. Economic report Eifelhöhen-Klinik AG, based in Bonn, operates facilities for rehabilitation, care for the elderly and outpatient medical care. The listed Eifelhöhen-Klinik AG places the high quality of the services provided for patients and payers at the center of its work. Eifelhöhen-Klinik AG in the Rhineland - the Eifelhöhen-Klinik Marmagen GmbH in Nettersheim-Marmagen (Eifel), a specialist clinic for rehabilitation medicine with the departments of internal medicine, orthopedics / traumatology, and neurology - the Kaiser-Karl-Klinik GmbH in Bonn, a specialist clinic for rehabilitation Medicine with the departments of orthopedics, geriatrics, internal medicine and Chinese medicine (TCM) - the Herzpark Mönchengladbach GmbH in Mönchengladbach specialist clinic for outpatient cardiological rehabilitation - a 6% stake in the Geriatric Center Zülpich GmbH Since 2002 the Eifelhöhen-Klinik AG has held 70% involved in the Aatalklinik Wünnenberg GmbH in Bad Wünnenberg. In entrepreneurial cooperation with Kurverwaltung Wünnenberg GmbH (shareholders: Paderborn district and Bad Wünnenberg city), the company operates a modern specialist clinic specializing in neurology and orthopedics, as well as a care facility with 39 beds and a medical care center at the same location. a) Macroeconomic and industry-related framework conditions Based on the positive economic development in Germany in 2013, the outlook for 2014 continues to show a positive development. In 2013 an overall growth of 0.5% was achieved. Due to a stable labor market with an increase in wages of around 3%, there was increasing domestic demand, while German EU exports decreased, mainly due to the recession in the southern European countries and France. As a result of this development, private consumption is expected to continue to be an important pillar of growth in 2014. The slight increase in unemployment that tended to be recorded in 2013 will probably be more than offset by increased growth in 2014. It remains to be seen, however, whether and to what extent the interventions currently planned by the government in the regulation of the labor market will trigger negative impulses. It also remains to be seen whether the rising costs associated in particular with the energy transition will continue to burden or restrict the economy in Germany. Despite the positive development of public finances in recent years due to high tax revenues, structural risks are still evident, which are due to the overindebted budgets of the euro countries and the foreseeable demographic developments in the economically important core states of Europe. These factors are still to be assessed as a structural risk factor for the macroeconomic stability of Germany. 8 The management report

11 Industry development On the basis of the figures and comments published by the Federal Ministry of Health on the financial development of statutory health insurances (GKV), the statutory health insurances achieved a total surplus of 1.2 billion in 2013. The health fund showed a surplus of 510 at the end of 2013 Million from. This increases the financial reserves of the health insurances when considering the financial results and the income of the health fund to a total of around 30.3 billion. The expenditure in 2013 shows an increase of 4.9% per insured person. It should also be noted that in the comparison period, the benefit expenditure increased by 5.1% and the administrative costs by around 2.6% per insured person. A dynamic increase has been recorded again in pharmaceutical expenditure, mainly due to volume and structural effects. However, this was partially reduced to 2.4% through discount agreements between health insurers and pharmaceutical companies. It should also be noted that the abolition of the practice fee for doctors and dentists as well as fee adjustments have resulted in an increase of around 10.6% per insured person in the expenses of the health insurance companies for outpatient medical treatment. There was an increase of around 3.7% per insured person in terms of expenses for hospital treatment. The expenditures of the health insurances for prevention services with an increase of approx. 8.2% and a total expenditure volume of approx. 260 million in total are considerably below the financing conditions actually required.Broken down according to the individual areas, the health insurance funds provide funding of 2.53 per insured person for primary prevention, 80 cents per insured person for company health promotion and 40 cents per insured person for general prevention. In 2013, a total of 2.56 billion was spent on rehabilitation services for the segment that is important for Eifelhöhen-Klinik AG. This corresponds to an increase of 0.08 billion compared to the previous year. On the basis of the general economic conditions recorded in 2013 and the forecasts for 2014, it can be assumed that in 2014 as well, taking into account the subsidies from the health fund, the expenditure of the statutory health insurance and the benefits of the pension insurance for rehabilitation measures will largely remain at the previous year's level . Thus, on the basis of the data currently available, stable conditions in the financing of the social security systems with regard to preventive and rehabilitation benefits can still be assumed in 2014. The management report 9

12 Financial development in statutory health insurance including agricultural health insurance 1) in the 1st to 4th quarter of 2013 Rate of change per insured person compared to 1st to 4th quarter 2012 in v. H. GKV AOK BKK IKK KBS EK LKK Medical treatment 2) 10.6 9.6 10.2 15.3 9.7 11.1 10.2 Treatment by dentists without dentures 8.5 12.4 9.0 13, 6 12.5 4.1 10.2 Total dentures -0.6 0.1-1.5 3.6-4.9-1.3-0.8 Medicines and bandages in total 2.4 1.8 2 , 4 4.9 1.1 2.6 5.2 Total aids 5.5 4.4 6.1 9.9 5.6 5.9 0.9 Total remedies 4.8 3.2 4.6 8, 7 6.7 5.4 6.8 Total hospital treatment with inpatient delivery 3.7 3.1 4.1 5.6 1.7 4.1 5.6 Sick pay 6.1 9.2 5.0 7.8- 1.2 4.3 8.2 Travel costs 7.8 7.1 8.6 8.7 5.5 8.9 8.1 Preventive and rehabilitation measures 3.0 2.7 3.7 7.5 7, 8 1.9 2.0 Social services / prevention / self-help / vacc. -3.6-3.2-3.4-6.1-6.0-2.9-23.7 Early detection measures 2.1 1.7 2.3 6.9 2.6 1.2 6.3 Benefits for pregnancy and maternity without inpatient delivery 8.6 10.8 4.3 3.7 16.6 10.2 7.9 Treatment care / home nursing 10.5 9.7 8.9 14.4 7.6 12, 5 10.1 Expenditures for services in total 5.1 4.6 5.1 7.8 4.6 5.1 5.8 Net administrative costs 2.6 4.7 4.3 3.1 7.8-0, 9 13.5 Total expenditure 4.9 4.6 5.1 7.5 4.7 4.8 6.2 Surplus of income or expenditure in absolute terms in EUR million Total expenditure Allocations from the health fund 3) Premium income 4) Other income 5) Total income surplus / deficit (-) GESUNDHEITSFONDS surplus of income or expenditure and change from 1st to 4th quarter 2012 in EUR million Change from 1st to 4th quarter 2012 in v. H. Total expenditure for the 1st to 4th quarter of 2013, 50 of which: Allocations to the health insurance funds 6), 50 payments to others for administrative purposes (mini-job headquarters) 36 Administrative costs of the health fund in accordance with 271 (6) SGB V 11 Income for the 1st to 4th quarter 2013 in total, 8 of which: premium income including claims, 40 federal subsidies, 8 other income 4 surplus / deficits (-) 510 1) The agricultural health insurance funds (LKK) do not participate in the health fund introduced. 2) including treatment by attending physicians in hospitals, medical advice and treatment for contraception, sterilization, abortion and without dialysis material costs and without additional payments made by the insured 3) Allocations shown by the health insurance companies for the reporting period including claims and obligations 4) The value of agricultural Health insurance refers to the premium income for the reporting period. The premium income of the other types of health insurance (health insurance companies participating in the health fund) is in particular contributions up to (GKV-wide RD 109 million euros), which the health insurance companies have only now become aware of 5) in the case of the LKK n in particular federal subsidies for the agricultural retirement dividers as well as reimbursements from third parties and investment income in particular from all health insurers 6) Allocations paid out by the Federal Insurance Office for the reporting period Source: GKV Statistics BMG, form KV The management report

13 Expenditures of the statutory health insurance in billion EUR absolute difference 1st to 4th quarter to 4th medical treatment within the framework of integrated care), treatment by attending doctors in hospitals, medical advice and treatment for contraception, sterilization, abortion, early diagnosis, maternity care as well as dialysis material costs. The practice fee no longer applies with effect from. 2) Without inpatient delivery and medical services The management report 11

14 The Eifelhöhen-Klinik share Highest price, 83 EUR () Lowest price, 33 EUR () Closing price at .75 EUR stock exchange turnover Frankfurt Stock exchange turnover previous year Units Units You can find our current stock exchange price for example. B. under = Developments in 2013 Eifelhöhen-Klinik AG DAX Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sources: comdirect bank AG 12 The management report

15 b) Business development Sales development in EUR thousand In the 2013 financial year, sales increased by EUR 349 ​​thousand, mainly due to the higher occupancy rate in the Kaiser Karl Clinic in Bonn and the increase in revenues in the Herzpark Clinic in Mönchengladbach through outpatient rehabilitation. Location-related inpatient care days in the Eifelhöhen Clinic Group Eifelhöhen Clinic Kaiser-Karl Clinic Aatalklinik Wünnenberg Aatalklinik Wünnenberg Nursing 0 The management report 13

16 Distribution of inpatient treatment revenues by specialist departments in 2013 Nursing 3% Internal medicine 22% Neurology 46% Orthopedics / traumatology 29% Other operating income rose by EUR 676 thousand. This increase is mainly due to a reclassification from sales, which was made for the sake of clarity. The group result in 2013 was strongly influenced by the start-up costs of the newly established location in Mönchengladbach. Business operations there began at the end of 2012 with cardiological outpatient rehabilitation. As planned, the expenses for this in 2013 were still significantly higher than the income. For this reason, a consolidated net loss of EUR -201 thousand is reported. After a withdrawal from the revenue reserves in the amount of EUR 378 thousand, a consolidated balance sheet profit of EUR 787 thousand remains. c) Earnings position Change Change KEUR KEUR KEUR% Total output, 7 Operating expenses, 8 Operating result, 6 Interest result (balance), 2 Ordinary company result> -100.0 Neutral result, 1 Earnings before taxes, 9 Income taxes, 7 Consolidated net loss / surplus> -100.0 In 2013, the total output increased by EUR 690 thousand to EUR thousand, mainly due to the higher occupancy rate in the Kaiser Karl Clinic in Bonn and the income from outpatient rehabilitation in the Herzpark Clinic in Mönchengladbach. The operating expenses required for this rose disproportionately by EUR thousand. Significant increases in expenses can be seen in personnel expenses (TEUR) as well as purchased services (+292 TEUR). The increase in personnel expenses is due in particular to the increase in staff at the clinic in Mönchengladbach (+623 kEUR). The increase in purchased services is mainly due to increased expenses for additional patient travel expenses (+107 kEUR) as well as increased expenses for third-party services (+187 kEUR). The financial result decreased due to the increased need for funds for the extensive renovation and expansion

17 construction measures in the group and amounted to EUR k in 2013 (previous year EUR -773 k). The neutral result improved by EUR 219 thousand. Due to fire damage in the Aatalklinik Wünnenberg, income from damage cases increased by EUR 254 thousand. As part of the commercial caution, a review of the value of the tangible assets of the Aatalklinik Wünnenberg was carried out. The impairment test carried out on the basis of the value in use led to an impairment loss of EUR 200 thousand for the assets recognized. The result from ordinary business activities fell by EUR 944 thousand to EUR 1 thousand. After deducting the tax expense, the result is a consolidated net loss of EUR -201 thousand. The EBITDA therefore decreased from KEUR in 2012 to KEUR in 2013, i.e. H. from 8.5% to 7.7% of the total output in the year d) Financial position KEUR KEUR Cash flow from operating activities Net cash flow from operating activities (I.) Cash flow from investing activities (II.) Cash flow from financing activities (III.) (distribution and Loan repayment) Change in financial resources (total I. + II. + III.) The cash flow from operating activities increased from EUR thousand to EUR thousand. The main causes are higher depreciation on property, plant and equipment and the change in liabilities (+522 kEUR). The decisive changes in the cash flow from investing activities by TEUR compared to the previous year result primarily from the extensive renovation and expansion measures in the group. In 2013, the company was able to continue to repay its existing short-term and long-term financial liabilities as planned. In addition to the funds available on the reporting date in the amount of TEUR, the group has unused credit lines of TEUR. Taking into account the dividend payment to the shareholders in the amount of EUR 151 thousand and the net addition of loans of EUR thousand, the total change in financial resources is EUR thousand compared to the previous year. The company's ability to meet its payment obligations at all times was unrestricted in 2013. The management report 15

18 e) Asset situation KEUR KEUR KEUR KEUR Tangible assets Equity medium and long-term borrowed capital Short-term borrowed capital Balance sheet total Tangible assets rose from EUR thousand to EUR thousand. The additions mainly relate to investments in the clinic building in Mönchengladbach and the extension to the Kaiser Karl Clinic in Bonn. The equity ratio as of the reporting date was 6% (previous year 40.3%). The previous long-term and short-term debts were continuously reduced in 2013 as well. Due to the financing of the new investments in 2013, the long-term and short-term debts have increased overall. The Group's asset and capital structure continues to be assessed as solid. B. Supplementary report No special events occurred after the end of the financial year. C. Forecast, opportunities and risk report As in previous years, there are signs of a restrictive stance on the part of the cost bearers in 2014 when taking into account the actual cost increases of the clinics. Any nominal increases in nursing care rates during the year are likely to be within the range or below the development of the basic wage bill, as in previous years. At the same time, due to the regional competitive situation, it may still be necessary to adapt to the nursing care rates actually paid or the flat rate per case. In the medium-term financing of the social security systems, due to economic and structural changes and risks in the state budgets, further restrictive and quality-oriented changes in remuneration by the legislature and the cost bearers are to be expected in the next few years. The Management Board therefore intends to continue the tried and tested business policy with the company's focus on the rehabilitation market by further strengthening the recognized, very high quality level of the clinics and their specialization in the core business. In addition, the clinical offering is geared to the future demographic and medical challenges in the rehabilitation market, including: by offering outpatient and inpatient therapy offers in Bonn and at the new clinic location in Mönchengladbach. In addition, there is a continuous review of growth opportunities, e. B. through the acquisition of further clinic locations. Due to the general framework of the financing of the health system, despite the medium-term expected positive economic development of the company, a deterioration in the assets and earnings position of the Eifelhöhen-Klinik Group cannot be ruled out with certainty in the long term. The 2014 operating result is expected to develop similarly to 2013, provided that the medium-term framework conditions for the allocation of patients to the companies of Eifelhöhen-Klinik AG by the insurance providers do not change significantly. 16 The management report

19 Risk report General The risk management system of the Eifelhöhen-Klinik Group is based on an IT-supported analysis program in which the risk description is broken down according to the individual company companies in order to be able to carry out an improved specific risk assessment for the individual company parts. In this system, the operational risks are scaled according to the extent of damage and the probability of occurrence on the basis of specified insurance algorithms. The content of all known risks is checked at least once a year in accordance with the established individual monitoring intervals; if necessary, necessary control measures are initiated. The insurance area is an essential part of risk management, through which significant risks such as fire, business interruption, liability and claims for damages are described, monitored and centrally safeguarded. The monitoring and general responsibilities as well as the content description and assessment of the risks are assigned to the legal representatives of the individual companies; If there are several representatives, the name of the representative responsible for the preparation is specified. The general risks for the operation of rehabilitation clinics, nursing homes and outpatient facilities of the company continue to exist due to the high level of dependence on health policy decisions and the possibility of short-term redirection of financial resources by the payers to other sectors of the health market. In addition, there is a significant operational risk, particularly in the case of rehabilitation clinics, in the fact that, in contrast to acute clinics, the capital cost share for building investments has to be financed and thus, including the personnel costs, there is a considerable fixed cost risk in the total costs. In the event of declining occupancies due to changes in the organization of health services, significant reductions in revenue and losses can arise in the short term, as the reduction in personnel and material costs can only be done with a time delay and to a limited extent due to general contractual, legal and collective bargaining provisions in the companies concerned. The probability of externally induced fluctuations in occupancy and the risk of price changes include: has remained largely the same as in previous years due to the ongoing merger processes of the statutory health insurance. There is still a clear cost pressure due to the requirements of the statutory health insurance and pension insurances and the structural financing problems of the social security systems. Due to the demographic development in the Federal Republic of Germany and the general economic conditions resulting from the global economic and financial crisis, there are also foreseeable considerable risks for the social security system. However, a detailed quantification of these risks is not possible due to the many influencing factors and the complexity of the financial and health system at company level. In general, the default risk of claims from the companies of the Eifelhöhen-Klinik Group is rather low, as the main claims of the companies from clinical services mainly exist from statutory and private health and pension insurance companies. At national and international banks, there is still an increased risk that the financing banks will cede their loan portfolios to third parties. The management report 17

20 Companies and participations Eifelhöhen-Klinik AG On the other hand, the clinic operations in Marmagen were transferred to a group subsidiary, the Eifelhöhen-Klinik Marmagen GmbH, by transferring the assets and liabilities to be allocated to the clinic operations. Land and the clinic real estate were not transferred. The amount of the guarantee from Eifelhöhen-Klinik AG for the conversion of the previous support fund of Eifelhöhen-Klinik AG into a group support fund together with Eifelhöhen-Klinik Marmagen GmbH amounts to KEUR. As of 2014, the essential benefits of the relief fund must be provided from the economic results of the Eifelhöhen-Klinik AG. At Eifelhöhen-Klinik AG, the excess liability, based on the existing pension fund assets, is only permitted to be noted in the notes and is not shown as a liability item in the balance sheet. On the one hand, this excess liability, calculated using the PUC method, with an interest rate of 4.88% (previous year: 5.04%) is EUR thousand. In the event of a negative overall economic development in Germany with a possibly increasing risk of insolvency, there is a risk of having to pay increased contributions to the pension insurance association. As a result of the ongoing price pressure exerted by the cost bearers on the nursing care rates and flat-rate per case, there is a fundamental risk of gradual substance depletion for the clinic locations of the subsidiaries.The main risks of Eifelhöhen-Klinik AG from subsidiaries and investments are as follows: Eifelhöhen-Klinik Marmagen GmbH There is still a location risk at Eifelhöhen-Klinik Marmagen GmbH. The clinic is located in the catchment area of ​​three university clinics, but the micro-location without connection to the infrastructure of a traditional health resort is not very attractive. Additional rehabilitation offers are being created in the surrounding urban centers. Changes in the legal framework (e.g. local and outpatient rehabilitation) and new care offers (e.g. geriatrics), some of which overlap with the previous rehabilitation offers of Eifelhöhen-Klinik Marmagen GmbH, are increasing competition on the regional market. Due to a largely capped or, in some cases, falling remuneration for the nursing care rates and generally rising costs, there is a latent risk that the Eifelhöhen-Klinik Marmagen GmbH, among others, In the medium term, it is no longer able to adequately service the necessary investments of a structural and general nature from the existing cash flow or through loans. Likewise, any existing remuneration agreements with the cost bearers must be adapted to the regional competitive situation with the risk of revenue reduction. Another operational risk of the Eifelhöhen-Klinik Marmagen GmbH lies in the indirect obligations from the company benevolent fund. In addition, the number of pension recipients in the provident fund will gradually increase over the next few years due to the company's retiring employees. At Eifelhöhen-Klinik Marmagen GmbH, this obligation, minus the existing support fund assets, is permitted only in the notes and not shown as a liability item in the balance sheet. On the one hand, this excess liability, calculated using the PUC method, with an interest rate of 4.88% (previous year: 5.04%) is EUR thousand. 18 The management report

21 Aatalklinik Wünnenberg GmbH and subsidiaries With the 70% stake in Aatalklinik Wünnenberg GmbH, it should be noted that the portion of the lease to be earned by the clinic is relatively high in relation to the total turnover. The competitive advantages of a modern and good building structure are thereby largely outweighed with largely capped or falling remuneration of the cost bearers in the revenues to be achieved per case and the possible overall economic result. It should also be noted that investment and maintenance costs will increase over the next few years. The indirectly existing loan obligations from the lease agreement of Aatalklinik Wünnenberg GmbH (capital service guarantee) are for the most part fixed for the next few years by means of corresponding fixed interest periods. At the Aatalklinik, there is also a significantly increased risk in the last two years with the average occupancy that has been continuously achieved up to now and the associated revenue potential. Due to the regional competition that has arisen in the meantime with other providers, including in the neurological early rehabilitation segment, there is still considerable pressure on the care rates to be achieved and the occupancy. The increasing transport and treatment costs for seriously ill patients are also increasing the economic burden on the company. There are also revenue risks from changes made to the State Aid Ordinance for Private Patients at the state or federal level. In the Medical Care Center Bad Wünnenberg / Südkreis Paderborn GmbH (MVZ) and the Gesellschaft für Schlaganfall- und Gesundheitsforschung mbh with a focus on outpatient medical care, there are significantly increased risks in terms of profitability due to the framework conditions of the applicable remuneration system and the number of cases to be achieved. Likewise, meaningful opportunities for cooperation with external doctors / practices were restricted by the applicable regulations. In this way, economically sensible cooperation and inter alia. the continuous staffing of specialist doctor's offices is made much more difficult and possibly a new company law organization of the above Societies needed. At Aatalklinik Wünnenberg Pflege GmbH, there are the usual risks from operating care facilities under otherwise stable economic conditions. Kaiser-Karl-Klinik GmbH At the Kaiser-Karl-Klinik GmbH, the share of the operating lease expenses in the ongoing operating costs is very high. The advantages of a modern and attractive building fabric are partially outweighed by the rent to be paid with the remuneration of the cost bearers largely capped in the revenues to be achieved per case. Furthermore, the Kaiser-Karl-Klinik in Bonn will continue to face considerable revenue risks in the future due to the disproportionate share of private and aid patients due to the existing aid provisions and due to seasonal or competition-related changes in the occupancy of referrals by pretreating acute clinics. GlobalMed GmbH GlobalMed GmbH is economically fully dependent on the lease payments from Kaiser-Karl-Klinik GmbH. It should also be noted that expired warranty obligations of construction companies will result in increased investment and maintenance costs in the future. In addition, further necessary investments due to future requirements cannot be ruled out for reasons of improved and, if applicable, legally prescribed energy efficiency. Herzpark Mönchengladbach GmbH With this company, there are the usual risks involved in the planning and commissioning of a clinic with outpatient and inpatient treatment places at a new location. Particular mention should be made of the usual risks involved in recruiting staff and the acceptance of the new clinic by cost bearers and referring institutions. The management report 19

22 Gesundheitspark Hardterwald Immobilien GmbH With this company there is the risk that this company is essentially dependent on the lease payments to be expected from Herzpark Mönchengladbach GmbH. Furthermore, cost increases during the renovation and construction phase that are above the investment plans cannot be ruled out due to circumstances that cannot be foreseen at the moment. These correspond to the usual risks of such project developments and construction projects. Geriatrisches Zentrum Zülpich GmbH (GZZ) With the 6% stake in the GZZ, there has been an increased risk since 2007 due to the establishment of a medical care center and the associated indirect guarantee obligation of the company. D. Internal control and risk management system with regard to the accounting process The aim of the internal control system (ICS) for the accounting process is to implement controls to ensure that annual financial statements are drawn up that comply with the statutory and statutory provisions. Eifelhöhen-Klinik AG prepares the consolidated financial statements for the individual holdings and subsidiaries. Upstream of this process is the financial reporting of the group companies included in the consolidated financial statements. Both processes are monitored by a control system, which ensures both the correctness of the accounting and compliance with the relevant legal provisions. Essential regulations and instruments are the - application of the statutory accounting guidelines both at group level and in the individual group companies - clearly defined separation of tasks and assignment of responsibilities between the areas or employees involved in the accounting process - involvement of external experts, if necessary, e.g. B. for the evaluation of pension obligations - use of suitable IT systems - consideration of risks recorded and assessed in risk management in the annual financial statements, insofar as this is required by existing accounting regulations. All structures and processes relevant to the annual financial statements are subject to the annual review by the respective commissioned auditor as part of the statutory audit. E. Basic features of the remuneration system for the group of people in accordance with 285 sentence 1 no. 9 HGB Dr. med. Markus-Michael Küthmann was the sole director of Eifelhöhen-Klinik AG in 2013. The remuneration of the Board of Management consists of a base salary and a bonus of 3% of the consolidated net income. When determining the assessment basis for the 2013 financial year, the results of Herzpark Mönchengladbach GmbH and Gesundheitspark Hardterwald Immobilien GmbH are not taken into account. The Management Board salary of Dr. Küthmann is offset against the remuneration that he receives as managing director of the Aatalklinik Wünnenberg GmbH. Beyond this, no benefits, in particular pension commitments, stock options or loans are made by the company to the Management Board member. 20 The management report

23 F. Information in accordance with 315 (4) HGB 1) The subscribed capital of EUR is divided into no-par shares. The nominal capital per share is EUR 2.56. The shares are made out to the bearer. Each share grants one vote. 2) On the balance sheet date, the company holds own shares that are not entitled to dividends or voting. 3) The company is aware of direct or indirect stakes in the capital of more than 10% up to the end of the preparation phase of the management report as follows: Direct share of the indirect share of the name / company Voting rights in% Voting rights in% SPG Senioren- und Pflegeheim Betriebs-GmbH & Co. Strandperle KG, Graal-Müritz 14.70 Graaler Care GmbH, Graal-Müritz 14.70 AKG Reha-Zentrum GmbH & Co. KG, Graal-Müritz 13.90 Graaler Management GmbH, Graal-Müritz 13.90 4) There are no holders of shares with special rights. 5) The employees involved in the capital exercise their control rights directly. 6) The statutory provisions for the appointment and dismissal of members of the Management Board (84, 85 AktG) as well as for amendments to the Articles of Association (133, 179 AktG) apply. 7) The Management Board is authorized to increase the company's share capital by, with the consent of the Supervisory Board, by issuing new bearer shares against cash and / or contributions in kind once or several times, but in total by a maximum of a nominal amount of up to EUR by issuing up to to increase bearer shares. The shareholders are to be granted subscription rights. The Management Board is authorized, with the consent of the Supervisory Board, to fully or partially exclude shareholders' subscription rights in the following cases: a) to compensate for fractional amounts b) in the case of a capital increase against contribution in kind, insofar as the new shares are acquired in the context of the acquisition of companies, parts of companies or interests in Companies or other assets are issued c) in the event of a capital increase against cash contribution, if the issue price of the new shares is not significantly below the stock exchange price of the company's already listed shares at the time the issue price is finally determined. However, this authorization only applies with the proviso that the shares issued using this authorization with the exclusion of subscription rights may not exceed a total of 10% of the share capital, neither at the time this authorization becomes effective nor at the time this authorization is exercised. Those shares are to be counted towards this limit, which are sold during the term of this authorization within the scope of the authorization to buy back own shares and their use under exclusion of the subscription right according to 186 para. 3 sentence 4 AktG. At the Annual General Meeting on July 14, 2010, the Management Board was authorized in accordance with 71 (1) No. 8 AktG to acquire treasury shares up to 10% of the share capital of EUR up to July 13, 2015, with the approval of the Supervisory Board. 8) There is no material agreement at the company that is subject to a change of control as a result of a takeover offer. 9) The company has not entered into any compensation agreement with the management board or employees in the event of a takeover bid. The management report 21

24 G. Declaration on corporate governance in accordance with 289a HGB Efficient cooperation between the board of directors and the supervisory board, respect for shareholders' interests, and openness and transparency in corporate communication are essential aspects of good corporate governance. The Executive Board and the Supervisory Board report on corporate governance at Eifelhöhen-Klinik AG in accordance with Section 3.10 of the German Corporate Governance Code in the version dated and in accordance with 289a HGB on corporate management at Eifelhöhen-Klinik AG. Shareholders and the general meeting The shareholders exercise their rights at the annual general meeting. Every shareholder is entitled to participate in the general meeting. The general assembly decides on all tasks assigned to it by law. Shareholders who do not wish to attend the Annual General Meeting in person can also have their voting rights exercised by proxy. Proxies appointed by Eifelhöhen-Klinik AG as well as credit institutions and shareholders' associations are available for this purpose. Eifelhöhen-Klinik AG provides all relevant reports and documents on its website at. The documents can also be sent on request. Cooperation between the Management Board and the Supervisory Board As a German stock corporation, Eifelhöhen-Klinik AG is subject to German stock corporation law and thus has a dual management and control system. The management board takes over the management of the company, the supervisory board is responsible for the monitoring and advisory function. The board of directors and the supervisory board work closely together for the benefit of the company. For transactions of fundamental importance, the articles of association of Eifelhöhen-Klinik AG stipulate reservations of approval in favor of the supervisory board. The Management Board informs the Supervisory Board regularly, promptly and comprehensively about all issues of strategy, planning, business development, the risk situation and risk management that are relevant to the company. In particular, the supervisory board examines the diligence of the management board's decision-making. Board of Directors The Board of Directors is responsible for managing the company. In doing so, it is bound by the company's interests and committed to increasing the company's sustainable value. The board of directors has to ensure compliance with the legal provisions and the corporate guidelines. He is responsible for appropriate risk management and controlling in the company. The management board of Eifelhöhen-Klinik AG consists of one member of the management board. Due to the size and organizational structure of the company, the Supervisory Board currently considers one member of the Management Board to be sufficient. Supervisory board The task of the supervisory board is to regularly advise and monitor the management board on the management of the company. The chairman of the supervisory board is in regular contact with the management board in order to discuss the company's strategy, business development and risk management. The Supervisory Board has established rules of procedure for its work. He appoints and dismisses the members of the Board of Directors. 22 The management report

25 The supervisory board of Eifelhöhen-Klinik AG consists of three members. It is composed of two shareholder representatives and one employee representative. A member can be classified as independent. The term of office for all members of the Supervisory Board is 3 years. The election of the shareholder representatives takes place in the form of individual elections. There are currently no age limits for the Supervisory Board. Due to the size of the company and the number of Supervisory Board members and their composition, it is not possible to form additional committees. The remuneration of the members of the supervisory board is determined by resolution of the general meeting. The members of the Supervisory Board receive a fixed remuneration. D&O insurance Eifelhöhen-Klinik AG has taken out financial loss liability insurance (D&O insurance) with no deductible for all members of the Supervisory Board. Remuneration of the management board and supervisory board Eifelhöhen-Klinik AG complies with the recommendations of the German Corporate Governance Code to disclose the remuneration for the management board and the supervisory board on an individual basis. The main features of the remuneration systems and the remuneration are presented in the remuneration report, which is part of the management report. Risk management Dealing responsibly with business risks is one of the principles of good corporate governance. The Management Board regularly informs the Supervisory Board about existing risks and their development. Details on risk management in the Eifelhöhen-Klinik Group are presented in the risk report. The risk management system is checked by an independent auditing company as part of the annual audit. Transparency and communication All interested parties, shareholders, financial analysts or comparable addressees can obtain timely information on current developments in the Group via the Internet. All reports are published on the company's website. The planned dates of the major recurring events and publications are compiled in a financial calendar, which is published on the Eifelhöhen-Klinik AG website with sufficient time in advance.According to 15a WpHG, the members of the management board and the supervisory board of Eifelhöhen-Klinik AG as well as certain employees with managerial tasks and persons closely related to them must disclose the acquisition and sale of Eifelhöhen-Klinik shares. The Eifelhöhen-Klinik AG has not received any reports until. The Management Board indirectly holds 2.85% of the company's shares, the Supervisory Board directly holds 0.06% and indirectly 1.04%. Accounting and financial statements The consolidated financial statements of Eifelhöhen-Klinik AG were adopted on the basis of 315a HGB in accordance with the International Financial Reporting Standards (IFRS) and the interpretations of the International Accounting Standards Board (IASB), as adopted by the European Union (EU), set up. During the financial year, shareholders and third parties are also informed through the half-yearly financial report as well as in the first and The management report 23

26 informed by interim reports in the second half of the year. There are no stock option programs or similar securities-based incentive systems. The shareholdings are listed in the consolidated financial statements. For the 2013 financial year, the Supervisory Board appointed Cologne auditors and tax consultants Kurt Heller GmbH, Wirtschaftsprüfungsgesellschaft / Steuerberatungsgesellschaft, Cologne, as auditor and group auditor. With the auditor, Eifelhöhen-Klinik AG has made the agreements required by the German Corporate Governance Code to carry out the audit. Declaration on the Corporate Governance Code The Board of Management and the Supervisory Board issued an updated declaration of compliance in accordance with 161 AktG on. The declaration was made permanently available to the public on the website of Eifelhöhen-Klinik AG: Declaration of compliance with the recommendations of the Government Commission on the German Corporate Governance Code in the version of the Management Board and Supervisory Board of Eifelhöhen-Klinik AG declare in the version of that they comply with the recommendations of Government Commission of the German Corporate Governance Code in accordance with 161 AktG. The following recommendations were not and will not be applied: 1. D&O insurance deductible (Section 3.8) A corresponding deductible should be agreed in a D&O insurance for the Supervisory Board. The 2013 version of the Code recommends agreeing a deductible for D&O insurance for members of the Supervisory Board, while the deductible is required by law for members of the Management Board when D&O insurance is taken out. In the opinion of the company, agreeing a deductible is not suitable for improving the motivation and responsibility with which the members of the Management Board and the Supervisory Board perform the tasks and functions assigned to them. The existing D&O insurance for the members of the Supervisory Board therefore does not provide for a deductible, in deviation from Section 3.8 of the Code. For the reasons mentioned above, the company will not agree to a deductible for the D&O insurance of supervisory boards in the future either. 2. Composition of the board of directors (section 4.2.1) The board of directors should consist of several people and have a chairman or spokesman. Due to the size and organizational structure of the company, the Supervisory Board currently considers one member of the Management Board to be sufficient. 24 The management report

27 3. Remuneration of the Board of Management (Section 4.2.3) The total remuneration and its variable remuneration components should be capped in terms of amount. The current legally binding executive board contract provides for variable remuneration without limitation. If this contract is extended or a new contract is concluded, the Supervisory Board will agree on a corresponding maximum limit. 4. Formation of committees in the supervisory board (Section 5.3) The German Corporate Governance Code recommends that the supervisory board should form professionally qualified committees as well as an audit and a nomination committee. Due to the size of the company and the number of Supervisory Board members and their composition (three members), it is not possible to form additional committees. 5. Objectives for the composition and an age limit for the supervisory board (Section 5.4.1) The German Corporate Governance Code recommends that the supervisory board name specific objectives for its composition and set an age limit for members of the supervisory board. Due to the number of members of the Supervisory Board and their composition (three members, one of whom is an employee representative), it is currently not necessary to set specific targets for the composition. There is no maximum age for membership in the Supervisory Board. The competent advice of our experienced supervisory board members should continue to have a positive influence on the development of the company in the future, regardless of their age. An age limit is currently not considered opportune, taking into account the prohibition of discrimination. 6. Sufficient number of independent members on the supervisory board (Section 5.4.2) The supervisory board should have what it considers to be an appropriate number of independent members. In the sense of this recommendation, a member of the supervisory board is not to be regarded as independent if he or she has a personal or business relationship with the company, its executive bodies, a controlling shareholder or a company affiliated with it, which creates a material and not just temporary conflict of interest can. Due to the number of Supervisory Board members and their composition (three members), only one member can be classified as independent. 7. Proposals for candidates for the chairmanship of the supervisory board (Section 5.4.3) Proposals for candidates for the chairmanship of the supervisory board should be made known to the shareholders. Due to the number of members of the Supervisory Board and their composition (three members), disclosure is not necessary. The management report 25

28 8. Publication of the annual financial statements (Section 7.1.2) The consolidated financial statements should be publicly accessible within 90 days of the end of the financial year, the interim reports within 45 days of the end of the reporting period. The annual financial statements for the company and the group are published within four months of the end of the financial year. The half-yearly financial report is published no later than two months after the end of the reporting period. The Eifelhöhen-Klinik AG thus follows the statutory provisions of the Securities Trading Act. Bonn, Eifelhöhen-Klinik AG The board of directors Dr. med. Markus-Michael Küthmann The Supervisory Board Dipl.-Oec. Karsten Leue (Chairman) / Birgit Wöstemeyer / Dipl.-Oec., Ing.Sigurd Roch 26 The management report

29 CONSOLIDATED FINANCIAL STATEMENTS 2013 Consolidated income statement 28 Consolidated balance sheet 29 Consolidated statement of comprehensive income 30 Consolidated cash flow statement 31 Consolidated statement of changes in equity 32 Notes to the consolidated financial statements 33 I. General information 33 II. Scope of consolidation 33 III. Consolidation principles 33 IV. Accounting and valuation methods 35 V. Notes on the income statement Sales revenues Other operating income Material expenses Personnel expenses Depreciation Other operating expenses Finance income and expenses Income taxes Non-controlling interests Earnings per share 48 VI. Notes to the balance sheet Intangible assets Tangible assets Display of shareholdings Financial assets Other assets Deferred tax assets / deferred tax liabilities Inventories Receivables from deliveries and services Current income tax assets Cash and payment equivalents Subscribed capital and treasury shares Distributed and proposed dividends Reserves Non-controlling interests Provisions (long-term) Financial liabilities Other financial liabilities Liabilities Deferred government grants Current income tax liabilities Trade accounts payable Other current liabilities 61 VII. Other explanations and information Notes to the cash flow statement Segment reporting Contingent liabilities Other financial obligations Capital management Management of financial risks Additional information on financial instruments Information on related companies and persons in the balance sheet Management and Supervisory Board employees Fee for the auditor Declaration on the Corporate Governance Code Information according to WpHG Exemption rights according to 264 (3) HGB Events after the reporting period 70 Assurance by the legal representatives 71 Auditor's report 72 Consolidated financial statements

30 CONSOLIDATED INCOME STATEMENT for the period from January 1 to December 31, 2013 Notes EUR EUR EUR 1. Sales (1),, 37 2. Other operating income (2),, 87 3. Cost of materials (3) a) Expenses for raw materials and supplies and purchased goods, 43 b) Expenses for purchased services,,, 81 4. Personnel expenses (4) a) Wages and salaries, 42 b) Social security contributions and expenses for pensions and support ,,, 84 5. Depreciation (5) - on intangible assets and property, plant and equipment,, 92 6. Other operating expenses (6),, 12 7. Other interest and similar financial income (7),, 39 8. Interest and similar Financial expenses (7),, 76 9. Earnings before taxes 709,, Income taxes (8),, Consolidated net loss / surplus,, Loss attributable to other shareholders (9),, Consolidated loss / profit,, Profit carried forward from the previous year,, Distribution ,, Allocations to retained earnings 0,, Withdrawal from retained earnings, 47 0, consolidated net profit,. 28 Earnings per share (10) undiluted -0.05 0.21 diluted -0.05 0.21 28 Income statement

31 CONSOLIDATED BALANCE SHEET as at December 31, 2013 Assets Side Liabilities Notes Notes EUR EUR EUR EUR EUR A. Non-current assets A. Equity 1. Intangible assets (11),, 00 1. Subscribed capital (21),, 00 2. Property, plant and equipment (12) ,, 46 2. Reserves 3. Financial assets (14) 502.00 502.00 a) Capital reserve (23),, 40 4. Deferred tax assets (16),, 66 b) Statutory reserve (23),, 79 Total long-term Assets,, 12 c) Other revenue reserves (23),, 52 d) Reserve for cash flow hedges (23),, 00 3. Consolidated retained earnings (22),, 28 4. Treasury shares (21),, 46 B. Current assets 5. Non-controlling interests (24),, 31 1. Inventories (17),, 61 Total equity,, 84 2. Trade accounts receivable (18),, 91 3. Current income tax claims (19),, 76 B. Long-term liabilities 4. Cash and cash equivalents (20),, 61 1. Provisions (25),, 00 5. Other assets (15),, 84 2. Financial v liabilities (26),, 33 Total current assets,, 73 3. Other financial liabilities (27),, 00 4. Deferred government grants (28),, 00 5. Deferred tax liabilities (16),, 97 Total long-term liabilities ,, 30 C. Current liabilities 1. Current income tax liabilities (29),, 00 2. Financial liabilities (26),, 53 3. Trade accounts payable (30),, 89 4. Other liabilities (31),, 29 Total current liabilities,, 71 BALANCE SHEET TOTAL,, 85 BALANCE SHEET TOTAL,, 85 Consolidated balance sheet 29

32 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME from January 1 to December 31

33 CONSOLIDATED CASH FLOW STATEMENT from January 1 to December 31, 2013 Notes to the financial statements EUR EUR k Consolidated earnings before minority interests Depreciation of tangible assets (12) Depreciation and impairment of intangible assets (11) Result from the disposal of fixed assets / - change in inventories (17) Change in Receivables (15) (16) (18) (19) / - Change in liabilities (28) (29) (30) (31) (16) Change in provisions (23) (25) (27) Finance income (7) Finance expenses (7) = Cash flow from operating activities Interest received (7) Interest paid (7) = Net cash flow from operating activities (I.) Proceeds from the sale of property, plant and equipment Investments in intangible assets (11) Investments in property, plant and equipment (12) = cash flow from investing activities (II.) Payment to company owners (22) Change in financial debts (26) Acquisition of treasury shares (21) = Cash flow from financing activities (III.) Change in finan ttelfonds (total I. + II. + III.) Financial resources at the beginning of the period Financial resources at the end of the period The composition of the financial resources and their changes are shown in the following overview: Change in EUR thousand EUR thousand in liquid funds (note 20) Bank overdrafts (note 26) Cash and cash equivalents Group cash flow statement 31

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35 Notes to the consolidated financial statements for the 2013 financial year I. General information The business activities of Eifelhöhen-Klinik AG (EHK AG), based in Bonn, consist of building, operating and advising hospitals, spa, diagnostic and therapeutic facilities of all kinds, as well as associated Facilities, participation in the above-mentioned facilities, property management and the manufacture of medical devices and pharmaceuticals, as well as participation in companies that operate this. The consolidated financial statements of the listed Eifelhöhen-Klinik AG as of December 31, 2013 were prepared on the basis of 315a HGB in accordance with the International Financial Reporting Standards (IFRS) and the interpretations of the International Accounting Standards Board (IASB), as used by the European Union (EU ) taken over, set up. With the exception of the revaluation of financial instruments, the consolidated financial statements were prepared on the basis of historical acquisition or production costs. These are generally based on the fair value of the consideration paid in exchange for the asset. For accounting, valuation and reporting in the 2013 consolidated financial statements, we applied the International Financial Reporting Standards (IFRS), which were mandatory on the balance sheet date, and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in full and without restriction. In accordance with 315a (1) HGB, the supplementary notes in accordance with 313, 314 HGB were made. II. Scope of consolidation The group parent company is Eifelhöhen-Klinik AG, based in Bonn, entered in the commercial register of the Bonn District Court under HRB No. In addition to Eifelhöhen-Klinik AG, the subsidiaries Eifelhöhen-Klinik Marmagen GmbH, GlobalMed GmbH, Kaiser-Karl-Klinik GmbH, GlobalMANAGEMENT GmbH, Gesundheitspark Hardterwald Immobilien GmbH, Herzpark Mönchengladbach GmbH, Herznetz Rheinland non-profit GmbH and Aatalklinik Wünnenberg GmbH with three subsidiaries included in the consolidated financial statements unchanged from the previous year as part of the full consolidation. In the case of the fully consolidated companies, the facts are met that the parent company directly or indirectly holds the majority of the voting rights. Information on shareholdings is given in the notes (note 13). III. Consolidation principles Eifelhöhen-Klinik AG prepares its consolidated financial statements in euros (EUR). Unless otherwise stated, all values ​​are rounded up or down to the nearest thousand (EUR k) in accordance with commercial rounding. The consolidation of a subsidiary begins on the day on which the group has control over the subsidiary

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