ANNUAL REPORT OF THE MEDORT GROUP

ANNUAL REPORT
OF THE MEDORT GROUP
2013
CONTENTS
1. KEY FIGURES OF THE MEDORT GROUP
2. ON OUR WAY TO THE FUTURE
3. MEDORT’S MISSION
4. DETERMINANTS OF GROWTH IN THE MEDICAL MARKET
5. ABOUT MEDORT
6. LOCATION OF COMPANIES AND KEY MARKETS
7. OUR PRODUCT BRANDS
8. INNOVATIONS IN THE MEDORT GROUP
9. HISTORY
10. MEDORT DEVELOPMENT STRATEGY
11. MANAGEMENT BOARD, SUPERVISORY BOARD
12. CONSOLIDATED STATEMENT OF FINANCIAL POSITION IN 2013
1. KEY FIGURES OF THE MEDORT GROUP
Brands
EBITDA [PLN]
Sales [PLN]
14 %
9.4m
124m
7.7m
90m
5.1m
79m
61m
86 %
3.1m
Own brands
2010
2011
2012
2013
Sales to external clients in 2013
51.43 %
2010
2011
Sales by category in 2013
20.02 %
Own brands (Q1 2014)
10.5 %
14 %
16.77 %
Hungary
External brands
22 %
63 %
Poland
2013
2012
12.6 %
68.4 %
11.77 %
Meyra
Germany (since
the Meyra-Ortopedia acquisition,
dated November 2013)
Rehabilitation
Viteacare
Memo
Orthopedics
Rehab
Kropla Zdrowia
Russia
Health products
Qmed
Inflex
3
2. “ON OUR WAY TO THE FUTURE”
Dear All,
the year 2013 in the Medort Group abounded in many important events which allowed our organization to develop with resilience
and reinforce its position on the medical equipment market.
The purchase of the organized division of the German company Meyra-Ortopedia GmbH – the leading producer of rehabilitation
products in Germany – has been the most important of all the last year’s events. In consequence of this movement, we have
finalized further acquisitions in the first months of 2014, including the takeover of Meyra-Ortpedia Kft in Hungary, MEYRA RU in
Russia, MEYRA ČR s.r.o.w in the Czech Republic, and Meyra Ortopedia Danmark K/S in Denmark.
At the same time, that year was a special one for our organization since we celebrated the 25th anniversary of the Medort company. The anniversary celebrations were dedicated to the founders of the company – Barbara and Tomasz Perner – as well as
to our employees, whose commitment allowed us to reach the ambitious goals we had been after.
In 2013, the Medort Group also completed the construction of a new active wheelchair manufacturing plant in Poland, where in
March 2013, our subsidiary – the Mtb Poland company – started production of the new AVIATOR and TORNADO wheelchairs
that superbly complemented the offer of our group.
These achievements make us proud of the work we have done together. We are also delighted that we have a chance to work for
the organization which helps many disabled across the entire Central Europe every day. Thanks to our products we can improve
their mobility, help them recover after injuries, and provide preventive healthcare for entire families.
Our success would not be possible without passion and commitment that we employed in order to aid people in tackling their
health problems every day.
Mariusz Smela
President of the Management Board of Medort S.A.
4
3. MEDORT’S MISSION
The Medort Group provides people with comprehensive help
in recovering or improving their mobility by supplying them with
innovative technologies in the field of orthotics, rehabilitation
products, home care products, and the support equipment.
MISSION
Our mission is to create a group of companies interacting in corporate synergy in order to restore everyday fitness of people and
transform their satisfaction into benefits for our shareholders.
AIM
Medort’s aim is to become the leading supplier of rehabilitation
and orthotic equipment in Europe as well as the significant distributor on the global market.
VALUE
Our value is the provision of harmony between the interests of
our clients, employees and proprietors through uniting all entities
within our Group.
INNOVATION
EFFICIENCY
GROWTH
5
4. D
ETERMINANTS OF GROWTH
IN THE MEDICAL MARKET
•The medical equipment market
includes, among others, products for: surgery, the circulatory
system, home care, orthotics
and rehabilitation.
•According to Espicom Business
Intelligence, the global medical equipment market reached
a value of 232 billion EUR in
2012 and the 3-5% growth
tendency will last at least until
2016.
•It is estimated there are 650
million disabled which makes
ca. 10% of the total world population.
•The rehabilitation and orthotic
equipment market falls into the
medical equipment market and
includes products that aid regaining the physical mobility.
•The Medort Group operates in
the following fields of the rehabilitation and orthotic market:
•non-invasive orthotic equipment,
•rehabilitation products,
•orthotic shoes,
•support equipment.
•Favorable prospects for the rehabilitation and orthotic market
growth, resulting chiefly from
the factors such as:
•aging population,
•changing structure of illness rates, increasing number of injuries,
•changing lifestyle, growing physical
activity of the population,
•increasing level of health awareness,
•growing wealth of the population.
Main factors deciding about the growth of
the rehabilitation and orthotic market include:
Aging population
•Twofold increase in population over 65
from 87.5 million in 2010 to 152.6 million
in 2060, which will make 30% of the total
world population.
•Increase in the number of injuries and
disorders will create higher demand for
rehabilitation and orthotic products.
European Union
Hungary
Poland
Czech Republic
Romania
30%
4. D
ETERMINANTS OF GROWTH
IN THE MEDICAL MARKET
Changes in the refund policy
•Introduction of the partial refund for the
rehabilitation and orthotic products will
improve consumer awareness and result in selecting affordable, high quality
equipment more frequently.
•The significantly lower refund level for
the rehabilitation and orthotic products
in East-Central Europe in comparison to
Western Europe suggests high potential
for growth on the market of the former.
European Union
Hungary
Poland
Czech Republic
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2015
2020
2025
2030
2035
Public healthcare spending as % od GDP
Source: The 2012 Ageing Report, Eurostat
20%
15%
10%
5%
0%
2010
2015
2020
2025
2030
2035
2040
Elderly population (65 and over) as % of total population
Source: The 2012 Ageing Report, Eurostat
6
•Positive correlation between the
growth of the income of the population and expenses on the rehabilitation and orthotic products.
•The increase in GDP is expected to stimulate further growth of
health care expenses.
•Bridging the gap between the
regions of East-Central Europe
and Western Europe in terms of
expenses on the rehabilitation
and orthotic products.
European Union
Hungary
Poland
Czech Republic
Romania
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
2010
2015
2020
2025
2030
2035
2040
GDP per capita in 2010 prices [EUR thousand]
Source: The 2012 Ageing Report, Eurostat
EUR 0
50
100
150
200
Change of lifestyle
2010
25%
Romania
Growing wealth of the
population
2040
•The increasing rate of the diseases of affluence will create
higher demand for rehabilitation
and orthotic products.
•At the same time, the growth
of the physical activity is observable, which results in the
increase of the number of injuries, thus creating higher demand for the therapeutic as well
as rehabilitation and orthotic
equipment.
•The rise of awareness among
patients and doctors positively
influences the use of high-tech
products.
215
Germany
158
France
107
United Kingdom
100
Czech Republic
48
Hungary
44
Poland
Croatia
37
Lithuania
36
29
Russia
Bulgaria
21
Expenditures on medical equipment and supplies
per capita in selected European countries in 2012
Source: EBI, Note: Translated at the fixed FX rate EUR/USD =1.3
7
5. ABOUT MEDORT
Our medical company was
founded in 1988 by Doctor Tomasz Perner and at that time,
it produced orthoses. Currently, the Medort Group has been
transformed into a group of companies that focus on home care
products, rehabilitation products,
6. LOCATION OF COMPANIES
AND KEY MARKETS
and the non-invasive orthotic equipment
offered mostly to clients in Western Europe, East-Central Europe and the Russian Federation. Today, our products are
exported to 65 countries. There are 12
companies within the Medort Group with
the total number of employees exceeding
550.
8
Awards and distinctions
In 2012, the Medort Group became one
of the finalists of the prestigious European
Business Award program, which assembles most innovative, ethical and dynamically developing companies from Europe.
Medort was awarded with the prize which
is used to honor a company for exceptional financial results, being a leader in its
industry as well as for flexibility and ethics
in business.
The management board of the
Medort company is headquartered in Łódź, Poland. There are
also key functional departments
of the company, i.e. the accounting and legal services, controlling,
IT, and marketing, which also provide services to other companies
within the group.
Western Europe
The Meyra GmbH company, located in the northwestern Germany, plays a vital role for the
Medort Group in developing
sales on the European markets.
The modern Kalletal plant manufactures the most advanced
rehabilitation products. Meyra,
with its 10% market share, is the
leader in the sales of the rehabilitation equipment on the German
market. At the same time, its
products are exported to the majority of countries within the EU
and 62 countries in total. Meyra’s
offer includes a variety of wheelchairs (active, sports, or classic,
dedicated to different groups of
users), electric wheelchairs and
scooters, accessory rehabilitation equipment, and brand-name
orthopedic products.
Domestic
Export
Production
plants
1×PP
Kalldorf (GER)
2×PP
Łódź (PL)
Medort in Łódź, Poland
Meyra company in Germany
9
6. LOCATION OF COMPANIES
AND KEY MARKETS
Central Europe
In Poland, the tasks of manufacturing the rehabilitation and orthotic products and distributing
them in wholesale are executed
by the MDH company, located
in the Special Economic Zone
(SEZ) in Łódź. The Group supplies its products through the
wholesale distribution channel to
more than 1000 external medical
shops in Poland. The production
takes place in two plants, both
located in Łódź. One of them operates in the SEZ and manufactures MEMO corrective shoes for
children, orthotic equipment, and
rehabilitation products. The other
plant specializes in the production of lightweight wheelchairs for
active users. It is located in the
southern part of Łódź and managed by the MTB Poland subsidiary company. All production
plants meet quality standards,
such as ISO 9001:2008, ISO
13485:2003, ISO 14001:2004,
and PN-N-18001: 2004.
6. LOCATION OF COMPANIES
AND KEY MARKETS
the name of Kropla Zdrowia. Today, these
products are available not only in medical
shops but also in selected pharmacies,
drugstores and natural products shops.
10.7 %
89.3 %
89.3 %
35 %
65 %
10.7
65 %
35 %
Retail distribution in Poland takes place in
50 controlled shops operating under the
“LIFE+” brand. This provides the Medort
Group with the biggest retail chain in Poland, with the ca. 10.5% of market share.
Others
Medort Group
Others
Medort Group
Others
Medort Group
Others
Medort Group
Rehabilitation and orthotics market in Poland
Rehabilitation
and orthotics market
in Poland
Rehabilitation
market in Hungary (2013)
(2013), including rehabilitation
and orthotic
Rehabilitation
market in Hungary (2013)
including
and orthotic
Expenses
on medical equipment
(per capita)
products – basic activity of(2013),
the Medort
Grouprehabilitation
Expenses on medical equipment (per capita)
products – basic activity of the Medort Group
Source: The Company
Source: The Company, National Health Fund
Source: The Company, National Health Fund
Source: The Company
High storage warehouse in Szentendre, Hungary
Sales in 2013 by countries
(Sales to external clients)
Region
Concurrently, the Medort Group
decided to develop natural cosmetics based on nano silver, kaolin and argan, distributed under
10
Total in million PLN
Poland – wholesale
30,54
Poland – retail
28,35
Hungary
Germany (since
November 2013)
Russia
22,92
19,20
13,48
In Hungary, Medort operates
through the Rehab Zrt. company, a wholesale market leader,
with more than 35% of market
share. It is also a recognizable
brand of the rehabilitation and
orthotic equipment that dates
back to 1915. After the acquisition of Meyra Ortopedia GmbH,
the market share will increase
in the following years thanks to
trading operations executed on
this market by the Meyra-Ortopedia Kft company. Currently,
products of the Rehab brand are
distributed through wholesale distribution channels and the franchising chain
of 35 shops. The brand mostly includes
rehabilitation products. At the moment,
its product range is being gradually expanded to other product categories. The
company uses an advanced high storage
warehouse, with the area of 1500 square
meters, which is located in Szentendre on
the outskirts of Budapest.
11
Eastern Europe
Sales in the Russian Federation are operated by wholesale companies: Medort
Ru and Medort Eurazja. They are specialized in supplying products manufactured
in Poland. The verticalizing products,
known under the Parapodium brand, are
especially popular on this market. In Russia, the Meyra company also marked its
presence (“МАЙРА-КРЕСЛА-КОЛЯСКИ
И СРЕДСТВА РЕАБИЛИТАЦИИ”) by
being a significant market share holder
in terms of distributing a wide range of
wheelchairs.
7. OUR PRODUCT BRANDS
7. OUR PRODUCT BRANDS
Rehabilitation
Orthotics
Health products
Qmed – a brand which offers
comprehensive orthotic solutions to people with dysfunctions
of locomotor organs, including
orthoses for the spinal cord,
trunk and upper and lower limbs.
Qmed products effectively support treatment and rehabilitation
of the variety of dysfunctions of
locomotor organs.
Memo – a patented, dynamic diagnostic
system for foot disorders in children. It
consists of a wide range of shoes with diagnostic soles and corrective inserts.
ViteaCare – a range of rehabilitation and
accessory products that includes: products for prevention and treatment of bedsores, wheelchairs with a high standard of
functionality (dedicated to various groups
of users), bathroom and support equipment as well as products for children.
Meyra – a brand of rehabilitation
products serving the broadly defined rehabilitation needs, both
functional and social, that are
created for those with the limited
mobility. These high quality products are designed with the touch
of modernity and they incorporate the most advanced solutions
and material technology. The
range of the rehabilitation and
accessory equipment includes:
wheelchairs with a high standard
of functionality, electric wheelchairs and scooters, and accessory equipment.
Rehab – a recognizable brand of the
Hungarian producer of the rehabilitation and orthotics equipment. Its beginnings date back to 1915. The Rehab
products are distributed through wholesale distribution channels and the franchising retail chain. The
brand includes rehabilitation
and support equipment.
12
Meyra Medical – these products
meet all the criteria for orthotic
solutions. They are extremely
comfortable and functional in the
process of treatment.
Qmed – a brand under which we offer
products for preventive healthcare, mainly everyday products that improve sleep
quality, functioning at home, at school or
at work, and the overall physical condition. This group of products includes therapeutic pillows and mattresses as well as
exercise and massage products.
13
Inflex – a group of technologically advanced foot care products that serve
a variety of functions, such as: supporting
proper feet development, treating feet deformities, providing everyday comfort and
hygiene, protecting feet against bedsores,
corns, abrasions and injuries.
Kropla Zdrowia – a group of products
that are based on natural ingredients with
nano silver, kaolin and argan as their main
AIs. This range of products is designed for
personal hygiene and everyday care of
the entire body. Thanks to its unique formula, they reduce inflammation, nourish
and regenerate the
skin. They are soothing and lenitive and
they mineralize the
skin, improving the
natural skin barrier.
8. INNOVATIONS IN THE MEDORT GROUP
– In order to meet the increasing
demand for the technologically
advanced mobility support equipment, the Group started the MTB
project. In the new production
plant, the MTB Poland company
launched the production of lightweight wheelchairs for active
users. New products are based
on our own solutions and incorporate unique technology in their
construction.
– The “New Orthopedics” project is about designing the orthopedic surgeries from scratch and
creating for this purpose completely new products that will be
innovative both in terms of functionality and design. All products
reflect global trends in orthoses that become inspired by other areas of life (e.g.
automotive industry). The diagnostic knee
joint orthoses is one of the first products
designed within the “New Orthopedics”
project. The new buckle will enable perfect adjustment to the patient’s body and
will be equipped with the electronic device
to stimulate the injured area.
– The Group intends to refresh and
strengthen the image of the Memo
brand. Therefore, it is planning to introduce the new, original design of the Memo
shoes in cooperation with the renowned
designer Kobi Levi.
The product range development is also
supported by introducing new products
from external manufacturers. In 20112013, more than 35 such products joined
our product range.
14
In recent years, the Group has filed patent
applications for the following technological solutions:
•dynamic corset,
•center of gravity adjustment mechanism
for wheelchairs,
•safety lock for the rehabilitation products,
•production routing of the orthosis buckle,
•production routing of the orthotic device,
especially to be employed in the rigid elements for the active stimulation of the
injured area,
•electronic system for controlling the
treatment progress in orthoses,
•pneumatic system for controlling pressure in foot-shin orthoses.
The Group invests
in the Marmed retail
company, which later
becomes, along with
the SSO Medort, the
main entity forming
the network of Life+
medical shops.
Medort starts
production of Dynamic Parapodium
which remains one
of the main export
products of the
Group until this
day.
Patent pending
Development of new products
and product innovation are the
important factors of the Medort
Group’s success. The organization has its own R&D department
which introduced over 30 new
products in 2011-2013.
The Group is strongly committed
to designing innovative aspects
of its products, i.e. functionality, material quality, and the advanced construction.
9. HISTORY
Medort company,
an orthotic equipment manufacturer, is founded
as the first private
company in this
industry in Poland.
1988
1991
The group of companies including SSO
Medort, MDH and
Medort S.A. is established.
1996
1997
Medort
opens its
first orthopedic shop,
the germ of
the future
network of
shops.
1998
The distributing
company Medort
Eurazja is established
in the district of Niżnij
Nowgorod. The Orthopedica company
incorporates its shops
into the Life+ chain.
2000
2003
The Group starts manufacturing the MEMO shoes and
rehabilitation equipment in
the Special Economic Zone in
Łódź. Medort attracts the financial investor from Sweden, the
Lindengruppen AB company,
which takes up 40% of shares.
Medort
transforms
into jointstock company.
Medisoft, the rehabilitation and
orthotics equipment retailer, operating in central and
eastern Poland, is acquired.
The Mtb Poland subsidiary
company launches production
of active wheelchairs in the
new production plant.
2007
2008
2013
2013
Medort purchases 100% of
shares in the Rehab company, the leader in Hungary with
nearly a century-long tradition. The Medort RU company
is established in Russia and
starts distribution within the
Russian Federation.
The Avallon MBO fund
repurchases 40% of shares
from the former financial
investor Lindengruppen AB.
The first company within the
Group is established in Russia. Medort invests in the
Rehmed retail company.
15
2011
In November, Medort
acquires the Meyra
Ortopedia company,
the leader on the rehabilitation market in
Germany, and several
other Meyra’s companies in Europe.
10. MEDORT DEVELOPMENT STRATEGY
11. MANAGEMENT BOARD
Mariusz Smela
•Position: President of the Management
Board
•In Medort since 1996
•Experience: Many years of experience
in the rehabilitation and orthotic equipment market on the managerial posi-
Our aim for the near future is to
maintain the dynamic development of sales on the existing and
new markets. The outlined development strategy shall aid us in
reaching the following goals:
•becoming the global leader in
distribution and production of
the rehabilitation and orthotic
equipment;
•obtaining the necessary certificates for the selected products of the MDH product-based
company in Russia and Western Europe;
•further developing and expanding into new regions of Europe
and Russia.
The Group intends to reach the
above-mentioned strategic goals
through:
•developing the organization by
acquiring companies on new
markets;
•increasing the sales of Meyra
brand products in Germany and
on export markets;
•further reinforcing the leading
position in the field of producing the special rehabilitation
and orthotic equipment and its
distribution (both wholesale and
retail) in Poland;
•increasing the sales of the orthotic and
commercial products and maintaining
the dominant market position in Hungary;
•strengthening and developing the competitive position in distribution the rehabilitation and orthotic equipment in the
Russian Federation, especially in wholesale;
•increasing market share in Denmark and
the Czech Republic through the Medort
Group companies.
The development strategy has been outlined on the basis of the division of the
Group’s business activity into crucial, in
terms of development, functional and geographical areas. The accepted directions
of development shall provide the Group
with the further increase of profitability,
while the anticipated activity on foreign
markets shall contribute to strengthening
the Group’s position in the CEE region
and serve as a springboard for the further
expansion into highly profitable markets of
Western Europe, Asia and the USA.
The long-range goal of the Medort Group
is the considerable diversification of markets as well as the increase in significance of the export. The Group sets the
target for the export at no less than 50%
in relation to the overall sales in 2016. Furthermore, the Medort Group shall strive
to reach at least 50% share of the most
16
tions; since 2009 President of the Management Board of Medort S.A.
•Main responsibilities: Strategic management, supervising the Medort’s activity, especially the retail sales and the
development on foreign markets.
Michał Perner
•Position: Vice-President of the Management Board
•In Medort since 1996
•Experience: Many years of experience
in the rehabilitation and orthotic equipment market on the managerial positions, including Managing Director of
profitable internal brands and exclusive
external brands sales in the total sales
revenue.
The strategy of development projects the
reinforcement of the established position
on the Polish market, among others, by
consolidating activities within the industry.
The sales development on European markets shall be enabled through the active
extension of consumer groups in the most
attractive segments, the increase of Meyra’s sales in Germany and on export markets, and acquisitions in Europe and other
regions. These operations shall help us
execute our strategic plan.
Doktor Perner (now MDH) and Ortocentrum.
•Main responsibilities: Outlining, implementing and executing the Group’s strategy, maintaining international relationships, marketing and foreign markets.
Paweł Robak
•Position: Chief Financial Officer, Member of the Board
•In Medort since 2009
•Experience: Many years of experience
in the rehabilitation and orthotic equipment market on the managerial posi-
tions, including CFO of large companies
in energy, construction, metallurgy and
furniture industries.
•Main responsibilities: Finance, bookkeeping, maintaining relationships with
financial institutions, retail sales activity.
Piotr Baczyński
•Position: President of the Management
Board of MDH Sp. z o.o.
•In Medort since 2000
•Experience: Many years of experience
in the rehabilitation and orthotic equipment market on the managerial positions, including Sales Director and Managing Director.
17
•Main responsibilities: Executing the
Group’s strategy, especially the wholesale in Poland and abroad, supervising
the wholesale– and product-based companies.
11. SUPERVISORY BOARD
Members of the Supervisory
Board
Robert Więcławski
A Partner of AVALLON MBO
FUND. The Vice-President of the
Management Board of AVALLON
Sp. z o.o. - a company administering private equity funds - since
2006; a Member of the Management Board of AVALLON MBO
S.A. – a company investing in
management buyouts; a Member
of the Investment Committee of
AVALLON MBO FUND. A graduate
of the University of Lodz, Faculty
of Economy and Sociology; the
holder of an MBA (Leon Kozminski University in Warsaw – 2001)
and a stockbroker license. Robert
Więcławski worked as a stockbroker for the Powszechny Bank
Gospodarczy Brokerage House in
Lodz and for BRE Brokers Bank
Rozwoju Eksportu S.A. in Warsaw.
In 2001-2007, he consulted numerous management buyout transactions supervised by AVALLON.
Since 1997, he has been sitting in
the Supervisory Boards of many
companies, including those quoted
on the stock exchange as well as
portfolio companies – AVALLON
MBO S.A. and AVALLON MBO
FUND.
Tomasz Stamirowski
A Senior Partner of AVALLON MBO FUND.
The President of the Management Board of
AVALLON Sp. z o.o. – a company administering private equity funds - since 2001; since
2004 – the President of the Management
Board of AVALLON MBO S.A. – an investment fund. A graduate of the Faculty of Foreign Trade at the University of Lodz and the
Faculty of Management at the University of
Grenoble (France); has extensive experience
in working in financial institutions as well as
thorough knowledge of the corporate market,
structural financing areas, mergers and acquisitions. Tomasz Stamirowski started working in 1993 in the Restructuring Department
of Powszechny Bank Gospodarczy in Lodz;
in 1995, he was appointed a member of the
management of the PBG Investment Fund
(since 1998 – Pekao Capital Fund), operating
within bank structures. A member of the supervisory boards of many companies (including those quoted on the stock exchange).
Piotr Miller
A partner at AVALLON MBO; a graduate of
the Faculty of Law at the University of Lodz;
a lawyer. In 1995-1999, Piotr Miller worked
as an attorney for Grupa Zarządzająca Łódź
– a PBG Bank S.A. investment company. He
18
acquired his experience on the private
equity market at Copernicus Capital
Partners – a company administering
private equity funds in Poland and in the
Balkans, as well as NFI Octavia and Piast funds. He was the President of the
management board of NFI Piast S.A.
12. CONSOLIDATED STATEMENT
OF FINANCIAL POSITION IN 2013
Dear All,
2013 was another year of systematic execution of the development strategy of the Medort Group. We aim to maintain permanent
growth of value for our shareholders and satisfaction for our stakeholders, i.e. clients, patients, employees, and commercial partners, through the creation of the comprehensive, integrated and unique offer on the rehabilitation and orthotic equipment market.
Barbara Perner
Member of the Supervisory Board Medort
SA, shareholder. Graduated from Lodz
Institute of Technology, at Land Construction. In 1988 founded Medort together with
husband Dr. Ryszard Tomasz Perner. Until January 2009 CEO of Medort S.A.
The purchase of the organized division of the German Meyra-Ortopedia GmbH company – an icon of the rehabilitation industry
that is recognizable across Europe and on the global markets – provides new prospects for development, especially the opportunity to introduce the “premium” products to the biggest European market in Germany as well as the access to the new distribution
channel in Europe.
Thanks to the systematically executed strategy and dynamically growing financial results, investor confidence rate is gradually
increasing. In 2013, we sold the B series bonds at subscription (with total nominal value of 25 880 000 PLN) which were quite
rapidly placed on the Catalyst bond market. Furthermore, the Medort’s equity was raised to the level exceeding 25 million PLN.
The Group has been dynamically growing in the recent years. In 2014, it is anticipated to exceed 300 million PLN of consolidated
revenue, thus amounting to almost 143% increase in consolidated sales in comparison to the last year.
Mariusz Stępień
Member of the Supervisory Board Medort SA. CEO of Marmed hearing care
and Marmed Healthcare Sp. z o.o . He
is former owner and CEO of Marmed
Sp. z o.o and currently a shareholder
of Medort SA. In 1989, the founder and
owner of Marmed that after five years,
becoming the largest chain of medical
stores in Southern Poland. When connected to the SSO Medort Sp. z o.o.,
Chairman of the Board, shareholder
and member of the Supervisory Board
of the Life Plus medical stores.
On behalf of the entire Medort Group, we would like to extend our thanks to the Shareholders and Bondholders for the confidence they placed in us and those who really enabled the company to succeed – Employees, Collaborators and Commercial
Partners of the Medort Group.
Yours faithfully,
President of the Board
Mariusz Smela
Vice-President of the Board
Michał Perner
Board Member
Paweł Robak
19
Board Member
Tadeusz Baczyński
CONSOLIDATED INCOME STATEMENTS 2013 AND 2012
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
in PLN 2013
2012
in PLN
31.12.2013
31.12.2012
Fixed assets
Continuing operations
Sales revenues
123 634 631
90 317 008
Operating expenses
115 566 400
83 944 170
Profit/loss from sales
8 068 231
6 372 838
Other operating revenues
3 034 880
1 617 763
Other operating expenses
4 115 856
1 512 495
22 674 633
323 323
164 514
6 951 747
4 896 944
Other intangibles
12 561 362
1 455 749
Deferred income tax assets
821 069
681 265
Long-term investments
250 665
2 011 322
Other assets
576 484
674 093
Fixed assets
44 159 283
18 331 747
Inventory
36 451 437
16 807 302
Trade and other receivables
22 209 827
16 443 220
Receivables from tax, customs and social security
566 345
643 429
Tangible assets
Completed development expenses
Goodwill
8 447 860
Profit/loss from operating activities
6 987 255
6 478 106
Financial revenues
1 376 441
338 017
Financial expenses
7 009 354
2 318 039
Profit/loss before deducting taxes
1 354 342
4 498 084
Income tax
1 804 213
760 633
Other statutory reductions of profit
–
290 122
Short-term investments
600 628
1 086 076
Cash and cash equivalents
15 059 205
6 216 129
Minority profit/loss
110 316
283 682
Profit/loss from continuing operations
-560 187
3 163 647
Net profit/loss
-560 187
3 163 647
Total revenue
-560 187
3 163 647
Attributable to dominant shareholders
-670 503
2 879 965
Attributable to minority shareholders
110 316
283 682
– dominant shareholders
-670 503
2 879 965
– minority shareholders
110 316
283 682
Current assets
Other assets
1 039 323
348 498
Current assets
75 926 765
41 544 654
Total assets
120 086 048
59 876 401
Total revenue attributable to shareholders
20
21
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED PROFIT AND LOSS ACCOUNT
LIABILITIES AND EQUITY
in PLN 31.12.2013
in PLN 2013
31.12.2012
Equity
2012
Continuing operations
Primary capital
1 789 617
1 270 886
Capital reserve
57 841 224
30 481 545
Other capital
1 850 340
1 850 340
Exchange differences
-705 589
-61 049
Retained earnings
Capital attributable to minority shareholders
-10 915 258
497 752
-6 862 864
879 896
Equity
50 358 086
27 558 754
Long-term loans and credits
3 660 091
777 784
Other financial liabilities
770 530
1 101 679
Pension liabilities
61 281
47 388
Debt securities liabilities
25 940 946
–
Deferred tax liability
Total long-term liabilities
882 467
31 315 315
LIABILITIES Long-term liabilities
673 365
2 600 216
LIABILITIES Short-term liabilities
Trade and other liabilities
17 208 606
9 295 328
Short-term loans and credits
14 685 477
14 512 186
Other financial liabilities
1 011 118
598 987
Tax, customs and social security liabilities
2 355 819
2 256 037
Pension liabilities
196 346
240 677
Deferred revenues
607 595
815 340
Other liabilities
1 547 799
1 743 385
Accruals
799 887
255 491
Total short-term liabilities
38 412 647
29 717 431
Total liabilities
69 727 962
32 317 647
Total liabilities and equity
120 086 048
59 876 401
22
Net sales revenues
123 634 631
90 317 008
Net revenues from sales of products
19 197 995
9 308 895
Change in the balance of products
8 863 715
5 720 485
Manufacturing cost of products for internal purposes
273 295
663 894
Net revenues from sales of goods and materials
95 299 626
74 623 734
Operating expenses
115 566 400
83 944 170
Profit/loss on sales
8 068 231
6 372 838
Other operating revenues
3 034 880
1 617 763
Other operating expenses
4 115 856
1 512 495
Profit/loss from operating activities
6 987 255
6 478 106
Financial revenues
1 376 441
338 017
Financial expenses
7 009 354
2 318 039
Profit/loss before deducting taxes
1 354 342
4 498 084
Income tax
1 804 213
760 633
Other statutory reductions of profit
–
290 122
Minority profit/loss
110 316
283 682
Profit/loss from continuing operations
-560 187
3 163 647
Net profit/loss attributable to:
-560 187
3 163 647
– dominant shareholders
-670 503
2 879 965
– minority shareholders
110 316
283 682
23
CONSOLIDATED CASH FLOW STATEMENT
Cash flow from operating activities
Profit/loss before deducting taxes
Adjustments
Variation of the minority shareholders’ capital
Depreciation
Profit/loss from exchange
Interest and dividends
Profit/loss from investment activities
Change in provisions
Change in inventory
Change in receivables
Change in short-term liabilities excluding credits and loans
Change in prepayments and accruals
Other adjustments
Net cash resources from operating activities
Inflows from sales of intangible and tangible assets
Repayment of long-term loans
Received interest
Sale of financial assets
Outflows for purchase of intangible and tangible assets
Investments in real property and intangible assets
Purchase of financial assets
Granted long-term loans
Other long-term financial assets
Other investment expenses
Net cash resources from investment activities
Net inflows from issuance of shares
Inflows from credits and loans
Inflows from issuance of bonds
Repayment of credits and loans
Payment of liabilities arising from financial leases
Interest
Other financial expenses
Net cash resources from financial activities
Net change in cash and cash equivalents
Cash opening balance
Closing balance of cash
24
SHAREHOLDERS OF THE MEDORT
in PLN 2013
2012
-560 187
-9 453 282
-382 143
2 396 269
–
5 572 249
-42 485
1 101 862
-19 644 135
-5 689 523
6 923 365
-188 626
499 885
-10 013 469
42 485
1 016 055
–
1 244 602
-27 887 462
–
–
-292 333
–
–
-25 876 653
24 149 368
3 055 598
25 940 946
-5 572 249
-1 098 336
-1 268 300
-473 829
44 733 198
8 843 076
6 216 129
15 059 205
3 163 647
2 597 915
426 099
1 249 857
-41 344
-1 091 969
-163 330
-21 666
3 836 093
1 931 942
-1 796 742
-1 149 708
-581 317
5 761 562
44 260
260 523
653
–
-657 999
-61 450
-1 069 603
-1 086 076
-658 791
-600 827
-3 829 310
–
1 515 555
–
-1 566 548
-613 972
–
-1 211 394
-1 876 359
55 893
6 160 236
6 216 129
Shareholders of the Medort company as for 31st December 2013
Number of shares of a given type and their value
Shareholder’s name
Ordinary
Share in the capital
Nominal value
Coöperatief
Avallon MBO U.A
970 791
1 005 373.00
Michał Perner
250 000
Barbara Perner
25 000
Meditoa Assets LTD
21 911
Tadeusz Baczyński
10 250
Mariusz Stępień
Avallon Sp. z o.o.
Swiss based private inwestor
56.18 %
250 000.00
13.97 %
25 000.00
1.40 %
21 911.00
1.22 %
10 250.00
0.57 %
12 386
12 386.00
0.69 %
9 078
32 421.00
1.81 %
144 380
432 276.00
24.16 %
1 443 796
1 789 617.00
25
100.00%
EMPLOYMENT STRUCTURE
DETAILED DESCRIPTION OF CHANGES IN VALUE OF
THE GENERIC GROUPS OF FIXED ASSETS, INTANGIBLE
ASSETS AND LONG-TERM INVESTMENTS
The average number of employees within the Group for the
period of January-December 2013 ran at the following level
31.12.2013
31.12.2012
556
280
Average number of employees
The increase in the number of employees in 2013 resulted
from the acquisition of the following entities:
•Meyra Gmbh
•MTB Poland Sp. z o.o.
Completed
in PLN development
expenses
190
151
Opening gross value of intangible assets 1 483 846
Other
intangible
assets
Total
As for 31.12.2012
2 214 738 3 698 584 1 483 846
1 025 663 2509 509
a. increases
327 239
–
11 673 553 12 000 792 –
– – –
1 329 382 1 329 382
b. decreases
Closing gross value of intangible assets
1 811 085
13 950 291 15 761 376 1 483 846
2 214 738 3 698 584
Opening accumulated depreciation
1 319 332
758 989 2 078 321 1 246 700
563 510 1 810 229
567 940 72 612
195 479 168 430
736 370 140 307 140 307
268 091
Closing accumulated depreciation
1 487 762
1 326 929 2 814 691 1 319 332
758 989 2 078 321
Opening net value of intangible assets
164 514
1 455 749 1 620 263 237 126
462 153 Closing net value of intangible assets
323 323
12 561 362 12 884 685 164 514
1 455 749 1 620 263
15
Sales department workers
Production workers
Administrative workers
Management
Employment structure in 2013
26
Completed
Total development
expenses
As for 31.12.2013
a. depreciation for the period of
200
Other
intangible
assets
27
699 279
FIXED ASSETS
Lands
As for 31.12.2013
Opening gross value of fixed
assets
Increases:
a. purchases
b. other
Decreases:
a. sales
b. other
Closing gross value of fixed
assets
Opening accumulated
depreciation of fixed assets
Depreciation for the period of
Closing accumulated
depreciation of fixed assets
Opening net value of fixed
assets
Closing net value of fixed assets
802 820 5 730 264 2 416 330 4 258 967
1 377 884
971 965
405 919
249 647
134 763
114 884
5 387 204
352 268 2 263 699 11 775 442
352 268 110 780 174 056
2 152 919 11 601 386
172 311 18 341
18 341
172 311
1 155 088 7 821 652 14 173 431
3 984 Tangible
assets in
production
1 506 737
176 281 152 911 23 375
48 806
48 806
1 634 216 Total
14 715 117
426 213 16 371 792
426 213 2 188 193
14 183 599
489 105
201 910
132 195
426 213 30 597 805
854 191 1 633 821 2 439 188
1 336 073
6 267 257
256 553 531 264 832 003
1 110 744 2 165 085 3 271 191
40 079
1 376 152
1 659 899
7 923 172
782 509 1 819 779
168 878
8 446 073
1 155 088 6 710 908 12 008 346 2 116 013
258 064 798 836 4 876 072 Lands
As for 31.12.2012
Opening gross value of fixed
assets
Increases:
a. transition to IFRS
b. purchases
c. other
Decreases:
a. sales
b. other
Closing gross value of fixed
assets
Opening accumulated
depreciation of fixed assets
Depreciation for the period of
Closing accumulated
depreciation of fixed assets
Opening net value of fixed
assets
Closing net value of fixed assets
Means of Other fixed
transportation
assets
Buildings Machinery
Buildings Machinery
Means of
transportation
Other fixed
assets
426 213 22 674 633
Tangible
assets in
production
Total
OTHER DATA
INFORMATION ABOUT THE MEDORT GROUP
Medort S.A. is the dominant entity within the Group. In accordance with the Polish Classification of Business Activity, the company’s scope of operations includes: activities of head offices, activities of financial holding companies, accounting and bookkeeping, tax consultancy. The Medort company operates chiefly to the benefit of its subsidiary entities. It is the Group’s managing
entity and establishes guidelines for the subsidiaries.
As for 31st December 2013, the following subsidiary companies comprised the Medort Group
Subsidiary’s name
Headquarters
Scope of operations
Equity share
Voting rights
on shares
Mdh Sp. z o.o.
ul. Tymienieckiego 22/24
90-349 Łódź
Manufacturing the medical and
surgical equipment and orthopedic
devices
Retailing the medical and orthotic
products
Retailing the medical and orthotic
products
Retailing the medical products,
including the orthotic equipment,
through the chain of specialized
shops
Retailing the medical products,
including the orthotic equipment,
through the chain of specialized shops
Retailing the medical and
pharmaceutical products
Manufacturing the medical and
surgical equipment and orthopedic
devices
Retailing and selling at wholesale
the medical products
Operating the comprehensive health
care systems and loyalty programs
Retailing and selling at wholesale
the medical products
100%
100%
100%
100%
100%
100%
95%
95%
99%
99%
99%
99%
100%
100%
100%
100%
50%
50%
100%
100%
Retailing and selling at wholesale
the medical products
60%
60%
Manufacturing the medical and
surgical equipment and orthopedic
devices
100%
100%
LIFE + Sp. z o.o.
ul. Sienkiewicza 36
38-300 Gorlice
Nasze Zdrowie GL + Sp. z o.o. ul. Grunwaldzka 165A
60-322 Poznań
LIFE CARE GL+ Sp. z o.o.
ul. Sienkiewicza 36
38-300 Gorlice
Ortomedic GL + Sp. z o.o.
ul. IX Wieków Kielc 2A/3
Kielce
ul. Piekary 6
61-823 Poznań
ul. Hanki Ordonówny 1
93-233 Łódź
495 443 3 903 481 2 098 028 4 573 270
1 404 606
12 474 827
PRO LIFE GL+ Sp. z o.o.
307 377 2 360 691 307 377 1 976 993
383 698 4 428 415
2 284 370
2 144 045
MTB Poland Sp. z o.o.
644 034 708 333
407 980
644 034 708 333
407 980
1 022 636
457 684
564 952
4 258 967
305 849
305 849
1 506 737
2 188 125
473 924
1 714 202
14 715 117
3 473 765 596 1 774 227 1 486 079
1 181 238
5 210 614
511 3 984 88 595 -140 406 953 109
854 191 1 633 821 2 439 188
154 833
1 336 073
1 056 642
6 267 257
533 909 325 732
16 240
533 909 309 492
802 820 5 730 264 2 416 330
799 346 5 114 878 315 498 1 975 982
153 527
8 359 231
798 836 4 876 072 782 509 1 819 779
170 664
8 447 860
28
REHAB ZRT
Szentendre ut 3
Kalaszi ut 3 2000 Węgry
Marmed Health Care Sp. z o.o. ul. Sienkiewicza 36
38-300 Gorlice
OOO Medort RU
607328 Nizhny Novgorod
Region Settlement Satis
Parkovaya St. 3
OOO Medorot Euroazja
607328 Nizhny Novgorod
Region Settlement Satis
Parkovaya St. 3
Meyra GmbH
Meyra-Ring 2
32689 Kalletal-Kalldorf
29
Medort S.A.
20 A. Struga St, 90-513 Łódź | Poland
phone: 42 664 38 51 | fax: 42 637 00 37
medort@medort.com.pl | www.medort.com.pl