European Medical Center

THE EUROPEAN MEDICAL CENTER (EMS) is a multidisciplinary clinic. EMC works across the medical spectrum, offering patients a personalized, comprehensive approach to 360-degree health care and access to innovative diagnostic and treatment techniques.

Aktivs

2023: EMS has 8 medical centers in Moscow and the Moscow Region

As of October 2023, the EMS covers 8 medical centers in Moscow and the Moscow region. In clinics, over 600 doctors provide medical services of any complexity in 57 specializations.

Performance indicators

2023: Profit growth of 131.4% to €270.5 million

Consolidated revenue of United Medical Group (MKPAO UMG, operating under the European Medical Center brand) in 2023 reached 270.5 million euros, which is 17.1% less than a year earlier. The company's net profit in comparison with the same segments of time increased by 131.4% and reached 104.2 million euros.

According to TASS, citing EMS materials, the group's annual revenue decreased due to the end of the construction contract and the lack of recognized construction revenue in 2023, as well as optimization of the business of the geriatric center and the business of selling reagents and laboratory equipment. And the growth in net profit is due to the effect of revaluation of hedging instruments, reduction in financial and other expenses, the EMS said in its statements.

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It also follows from it that in 2023 the network's revenues from polyclinic services and home assistance turned out to be equal to 140.2 million euros, having decreased by 5.6% on an annualized basis. Revenue from hospital services decreased by 13.5%, to 102.6 million euros.

EBITDA The group's indicator for 2023 reached 115.9 million euros, which is 4.2% more than a year earlier. The rise was due to measures to control expenses, growth in operating profit, as well as the stabilization of the exchange rate. EBITDA margin in 2023 was 42.8%, exceeding the 2022 level (36.2% in 2022), which remains an industry record.

EMC's net debt as of 31 December 2023 was €93 million, up from €165.7 million a year earlier. Debts decreased due to the repayment of part of debt obligations. The ratio of net debt to EBITDA by the end of 2023 was 0.80x against 1.49x in December 2022.

Capital expenditures EMS in 2023 decreased by 73.5% compared to the previous year - to 16.4 million euros.^[1]

2020

In 2020, the company's revenue amounted to 20.7 billion rubles, an increase of 26%.

Number of patients:^[2]

History

2024: European Medical Center CEO hands over his stake in the company to a relative

Andrey Yanovsky, General Director of United Medical Group of the European Medical Center (EMS), transferred his stake in the company to a relative. Since June 5, 2024, 24.24% of the company's shares are now owned by Anna Yanovskaya through Resource LLC, which she owns 100%. Previously, this LLC belonged to Andrei Yanovsky, through which he also owned the specified EMS package.

Andrei Yanovsky became a co-owner of EMS in February 2024, when the company's largest shareholder Igor Shilov and other shareholders sold a controlling stake. Yanovsky, along with other top managers, received a significant stake in the shares. The transfer of shares to a relative occurred as part of the redistribution of corporate assets within the family.

According to the press service of the YUMG EMS, MKPAO, it was registered in December 2023 in a special administrative district (SAR) on Oktyabrsky Island in the Kaliningrad Region. This registration took place as part of the company's redomicitation from Cyprus to Russia, which was a significant step in adapting to changes in the international corporate structure.

The European Medical Center (EMS) is a network of private medical clinics. By June 2024, the network includes seven multidisciplinary medical centers, a maternity hospital, a rehabilitation center and three geriatric centers located in Moscow and the Moscow region. The authorized capital of UMG MKPAO is 3.349 million rubles and consists of 90 million ordinary shares with a par value of 0.03721404 rubles each.

According to EMS representatives, the transfer of shares will not affect the operational management and strategic development of the company. Management continues to implement plans to expand and modernize health centers, implementing modern technologies and improving the quality of patient care.^[3]

2023

Start of network of analysis sampling points

The European Medical Center (EMS) launched an independent Lab360 diagnostics service in December 2023, opening the first test collection point. The decision to develop this industry was made after the acquisition in 2022 of the distributor of equipment for laboratories and medical consumables Astra-77. Read more here.

Sale of a stake in the Senior Group network of boarding houses

The European Medical Center (EMS) sold its stake in the Senior Group network of boarding houses from its founder. This became known in August 2023. Read more here.

SM-Klinik bought a EMS medical center in Moscow

On May 31, 2023, it became known that the SM-Clinic holding was acquiring one of the institutions owned by the European Medical Center (EMS). Read more here.

2022: Fine of 109 million rubles to the compulsory medical insurance fund due to the transfer of money into dollars

As it became known at the end of April 2022, the court ordered the European Medical Center to return 109 million rubles to the fund COMPULSORY HEALTH INSURANCE due to the transfer of money into dollars. The company was unable to challenge Moscow the claim of the local city compulsory health insurance fund by the City Arbitration Court.

As follows from the case file, in 2021, MGFOMS checked the spending of funds sent by EMS for the provision of medical care in 2018-2019. The conversions that happened at the end of 2018 attracted the attention of inspectors - 66 million rubles and 33 million rubles were transferred to US dollars and placed in the company's account. In the fall of 2021, the fund demanded that EMC return this money to the budget. The clinic decided to challenge this order in the Moscow Arbitration Court.

As it became known at the end of April 2022, the court ordered the European Medical Center to return 109 million rubles to the compulsory medical insurance fund due to the transfer of money to dollars.

The company's financial transactions were explained by the depreciation of the ruble in 2018: in order to reduce currency risks in the fulfillment of future obligations to medical equipment suppliers, part of the funds was stored in foreign currency. The presence of foreign currency, including those purchased with compulsory medical insurance funds, allowed EMS to mitigate the risk of increasing the cost of equipment in rubles. Another part of the funds was intended by Siemens Healthcare LLC for the supply and maintenance of medical equipment. The contract in the amount of $14.7 million assumed the presence of at least $2 million in EMS foreign exchange account.

The court pointed out that during the audit and consideration of the objection, the need for transfers of compulsory medical insurance funds to ensure the activities of the medical organization was not confirmed. A EMS application was denied. The company can challenge this decision in the Ninth Arbitration Court of Appeal.

The demand of MGFOMS to return over 99 million rubles with the payment of a 10% fine from the amount of funds used inappropriately in the amount of 9.9 million rubles remains in force^[4]

2021

Revenue growth by 26.3% to 25.11 billion rubles

According to the results of work in 2021, the European Medical Center (EMS) increased revenue by 19.7% compared to 2020 - to 288.75 million euros from 241.33 million euros in 2020. In Russian currency, revenues increased by 26.3%, to 25.11 billion rubles.

The number of polyclinic visits in 2021 in EMS amounted to 590,759 (an increase of 12.7% against 2020), due to the growth in the areas of therapy, emergency care, physiotherapy, ophthalmology, psychiatry, radiation therapy and the development of a new direction of radionuclide therapy.

"European Medical Center" increased annual revenue by 26.3%

The average check for the services of the clinic was 262 euros (a decrease of 0.6% against 2020). Stable level, supported by the growth of the average check in the areas of radionuclide diagnostics, neurosurgery, emergency and emergency care. The number of hospital admissions amounted to 24,843 (an increase of 82.8% against 2020), primarily in the areas of oncology (chemotherapy) and radiation therapy, as well as new services for the hospital in the directions.

Excluding the services of a day hospital, within which chemotherapy services are mainly provided, the number of hospitalizations amounted to 9,229 (an increase of 5.5% against 2020). The largest growth in the specializations of orthopedics, traumatology, rehabilitation, ophthalmology and plastic surgery.

The average check for hospital services amounted to 4,908 euros (a decrease of 25.9% against 2020). The dynamics of the average check was influenced by an increase in the availability of radiation and chemotherapy procedures, which is generally fully compensated by a sharp increase in the number of hospitalizations, as well as an overall increase in bed turnover and a significant reduction in the average time spent by patients in hospital.

The average check for hospital services excluding day hospital services amounted to 7,664 euros (an increase of 10.2% against 2020). The main contribution to the increase in the average check was made by the directions of the ward department, dermatology, mammology and cosmetology, the press service of the EMS said.^[5]

EMC - 9 clinics

As of November 2021, EMC has 9 clinics.

Access to the Moscow Stock Exchange

On July 15, 2021, the European Medical Center (EMS) entered the Moscow Stock Exchange under the ticker symbol GEMC. As part of the IPO, investors were offered 40 million global depositary receipts (GDRs; each such paper certifies the right to one ordinary share of the company) at a price of $12.5 apiece.

Taking this price into account, EMS market capitalization amounted to $1.125 billion. The structure of the transaction provides for a stabilization option in the amount of up to 15% or 6 million securities of the total number of GDRs sold as part of the IPO. If it is not implemented, after the placement, approximately 44% of the company's securities will be in free circulation, and control over EMC (55.1%) will be retained by its main shareholder Igor Shilov through the investment structure of INS Holdings Limited.

European Medical Center went public at an estimate of $1.1 billion

Provided that the option to buy out the GDRs is not exercised, the share of the company's securities in free circulation will be approximately 44%, Igor Shilov will retain about 55.1%.

IPO is an important and logical step in the development of the Company, which has demonstrated progressive growth over the years, occupies a leading position in the market and has a strong recognizable brand that customers trust. The deal is a significant event for the entire market of private medical services in Russia, since it became the first in the sector in almost 10 years, - said EMS CEO Andrei Yanovsky.

EMC shareholders sold their securities:

• INS Holdings Limited (beneficial owner - Igor Shilov), which owns a stake of 71.2%;
• Hierot Holdings Limited (beneficial owner - Yegor Kulkov), share - 20.8%;
• Greenleas International Holdings (beneficial owner - Roman Abramovich), share - 6.9%.

Citigroup Global Markets, J.P. Morgan AG and VTB Capital acted as joint global coordinators and joint bookrunners as part of the IPO.^[6]

Investment of 1 billion rubles for the modernization of MONICA

In mid-July 2021, it became known about the plans of the European Medical Center (EMS) to invest 1 billion rubles in the modernization of one of the oldest clinics in the Russian capital - the Moscow Regional Research Clinical Institute. M.F. Vladimirsky (MONICA). Read more here.

EMC includes 7 medical centers in Moscow and the Moscow region

As of May 2021, EMC included 7 medical centers in Moscow and the Moscow Region with a total area of ​ ​ more than 41,000 square meters. m.

2020

Cost of initial GP appointment

For 2020, the cost of the initial appointment of a therapist is 13,834 rubles.

Top 5 private clinics in Russia increased revenue by 19% to 88.9 billion rubles

The total revenue of the five largest private clinics in Russia - Medsi, EMC, Mother and Child, Medinvestgroup and SM-Klinik - reached 88.9 billion rubles by the end of 2020, which is 18.6% more than a year earlier. These companies accounted for about 13% of the paid medical services market. Read more here.

Medinvestgroup buys 27.78% of the company from Baring Vostok

Medical investment groups The "main owner" group Pharmstandard Viktor Kharitonin bought Baring Vostok out a stake in the European medical Center (EMC) from the funds.

Medinvestgroup Group acquired 27.78% of EMC from Baring Vostok funds, which have been shareholders of the company since 2012. The parties to the deal announced this on February 14, 2020. The cost of the share in the message was not disclosed. The main shareholder of EMC remains Igor Shilov, who owns 68.75% of the company.

As noted by EMC CEO Andrei Yanovsky, attracting an investor specializing in medicine will allow the company to achieve a synergistic effect in the implementation of joint projects, including in the regions.

EMC includes 7 medical centers in Moscow and the Moscow Region

As of February 2020, EMC includes seven medical centers in Moscow and the Moscow Region with a total area of ​ ​ more than 41 thousand square meters. m. EMC employs more than 600 physicians, including those from France, Spain, Japan, the United States, and Israel. The center also has its own complex for the production of drugs.

2019

Revenue - 16 billion rubles

In 2019, the company's revenue was 16 billion rubles, EBITDA - 6.1 billion rubles, the report said. In 2019, more than 88 thousand people became patients of EMC clinics. According to Forbes, EMC ranks third in the ranking of the largest private medical centers in Russia.

EMC includes 5 medical centers in Moscow

In 2019, EMC includes 5 medical centers in Moscow:

• multidisciplinary hospital on Shchepkina Street,
• multidisciplinary medical centers in Spiridonyevsky and Oryol lanes,
• Children's clinic on Trifonovskaya street,
• Perinatal center on Pravda Street, as well as
• Medical rehabilitation center located on Rublevo-Uspenskoe highway in the village of Zhukovka.

EMC works across the medical spectrum, offering patients a personalized, comprehensive 360-degree approach and access to innovative diagnostic techniques.

2017

In 2017, EMC has an international team of more than 600 doctors from Western Europe, the USA, Israel, Japan and Russia. The EMC Clinic (35 Shchepkina) is internationally accredited by JCI.

2012: Baring Vostok acquires blocking package

In 2012, Baring Vostok became the owner of the blocking package.

2006: Acquisition by Pharmacy Chain 36.6

In 2006, the company was bought by Pharmacy Chain 36.6, two years later it sold it for $110 million to the former owners of the Nidan juice company led by Igor Shilov.

2001: Opening of a multidisciplinary clinic in Spiridonyevsky Lane

In 2001, a multidisciplinary clinic was opened in Spiridonevsky Lane.

1989: Establishing a Company

Several medical care rooms for foreigners living in Moscow were opened in 1989 with the participation of the French Europ Assistance

Notes