2011 / 06

Transkript

2011 / 06

Ac badem Sa k Hizmetleri ve
Ticaret Anonim irketi
and
Its Subsidiaries
Convenience Translation into
English of Condensed Consolidated
Financial Statements as at and
for the Six-Month Period Ended 30
June 2011
With Independent Auditors’ Review
Report Thereon
Convenience Translation of the Independent Auditor’s Review Report
As at 30 June 2011 Originally Prepared and Issued in Turkish
To the Board of Directors of Ac badem Sa
k Hizmetleri ve Ticaret A. . and its subsidiaries,
Introduction
We have reviewed the accompanying condensed consolidated statement of financial position of
Ac badem Sa k Hizmetleri ve Ticaret A. . and its subsidiaries (“the Group”) as at 30 June
2011, and the condensed comprehensive income statement, condensed consolidated statement of
changes in shareholders’ equity, condensed consolidated statement of cash flows for the six
month period ended, and a summary of significant accounting policies and other explanatory
notes. The Group’s management is responsible for the preparation and the fair presentation of
these condensed consolidated interim financial statements in accordance with the financial
reporting standards of Capital Market Board of Turkey. Our responsibility is to express a
conclusion on these consolidated interim financial statements based on our review.
Scope of Review
We conducted our review in accordance with the auditing standards promulgated by Capital
Market Board of Turkey. A review of condensed consolidated interim financial statements
consists of making inquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in
scope than an audit conducted in accordance with the auditing standards promulgated by Capital
Market Board of Turkey and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
condensed consolidated interim financial statements do not give a true and fair view of the
financial position of Ac badem Sa k Hizmetleri ve Ticaret A. . and its subsidiaries as at 30
June 2011, and of its financial performance and its cash flows for the six month period then
ended in accordance with the financial reporting standards of Capital Market Board of Turkey.
stanbul, 25 August 2011
Akis Ba ms z Denetim ve Serbest Muhasebeci Mali Mü avirlik A
Özkan Genç
stanbul, Turkey
Additional paragraph for convenience translation to English:
The accompanying financial statements are not intended to present the financial position and
results of its operations in accordance with accounting principles and practices generally
accepted in countries and jurisdictions other than Turkey.
Ac badem Sa
k Hizmetleri ve Ticaret Anonim irketi and Its
Subsidiaries
Table of Contents
Independent Auditors Review Report
Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Comprehensive Income
Condensed Consoldiated Statement of Changes in Equity
Condensed Consolidated Statement of Cash Flows
Notes to Condensed Consolidated Financial Statements
TABLE OF CONTENTS
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS’ EQUITY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
1
2
3
4
5-55
PAGE
Organization and nature of business
5
Basis of presentation of the condensed consolidated financial statements
7
Business combination
12
Segment reporting
12
Tangible assets
15
Intangible assets
17
Goodwill
18
Financial liabilities
19
Provisions, contingent assets and liabilities
27
Commitments
28
Equity
30
Financial income
33
Financial expenses
34
Related parties
34
Earnings per share
40
Nature and level of risks arising from financial instruments
40
Financial Instruments fair value disclosures
52
Subsequent events
54
Other matters that significantly affect the financial statements or make the financial statements clear,
interpretable, and understandable
54
Ac badem Sa k Hizmetleri ve Ticaret Anonim irketi and Its Subsidiaries
Notes to the Condensed Consolidated Financial Statements
As at and for the Six Month Period Ended 30 June 2011
Amounts expressed in Turkish Lira (“TL”) unless otherwise stated
1
Organization and Nature of Business
Ac badem Sa k Hizmetleri ve Ticaret A. . (“the Company”) was incorporated in 1991 in stanbul, The
Company provides health services in thirteen general hospitals (Kad köy, Bak rköy, Kozyata , Fulya,
Eski ehir, Bursa, Kocaeli, Maslak, Kayseri, Adana, International Hospital, John F. Kennedy and Göztepe
afak) and eight medical centers (Ata ehir, Beylikdüzü, Ba dat, International Etiler, Ac badem Etiler, Uluda
Poliklini i, Konur Sa k and Gemt p), center laboratories (Labmed Klinik laboratuarlar , Merkez Patoloji
laboratuar , Genetik Tan ve Hücre Tedavi Merkezi, Labvital G da Kontrol Laboratuvar ). In addition to its
core business in health care, the Company organizes courses and seminars about first aid, diabetics, smokeless
living and infant care.
The Company also applies “Joint Commission International” accredition standards and ISO 9001 Quality
Management System standards in its services in order to provide better quality care and security for the
patients.
Ac badem Sa k Hizmetleri ve Ticaret A. . is subject to Capital Market Board (“CMB”) regulations and its
shares have been traded on the stanbul Stock Exchange (“ISE”) since 15 June 2000.
The head office is located at Fahrettin Kerim Gökay Caddesi, Altunizade Mahallesi, No: 49, Üsküdar- stanbul.
As at 30 June 2011 and 31 December 2010 shareholder structure of the Company is as follows:
30 June 2011
Share(%)
0.40
0.00
57.90
34.07
1.00
1.00
0.00
3.52
2.11
100.00
Shareholder’s Name
Mehmet Ali Ayd nlar
Hatice Seher Ayd nlar
Almond Holding Anonim irketi
Almond Holding Anonim irketi (Publicly traded)
Arma an Özel
Yunus Ergüz
Osman Morgül
Other Individuals
Other Public Shares
5
31 December 2010
Share(%)
0.40
0.00
57.90
34.07
1.00
1.00
0.00
3.52
2.11
100.00
1
Organization and Nature of Business (continued)
As at 30 June 2011 consolidated subsidiaries comprised the following:
- Ac badem Poliklinikleri Anonim irketi (“Ac badem Poliklinikleri”)
- Ac badem Labmed Sa k Hizmetleri Anonim irketi (“Ac badem Labmed”)
- International Hospital stanbul Anonim irketi (“International Hospital”)
- International Hospital Sa k Yat mlar Anonim irketi (“International Hospital Sa
- Ac badem Kayseri Hastanesi Anonim irketi (“Ac badem Kayseri”)
- Yeni Sa k Hizmetleri ve Ticaret Anonim irketi (“Yeni Sa k”)
- Konur Sa k Hizmetleri Anonim irketi (“Konur Sa k”)
- Gemt p Özel Sa k Hizmetleri Sanayi ve Ticaret Limited irketi (“Gemt p”)
- Ac badem Mobil Sa k Hizmetleri Anonim irketi (“Ac badem Mobil”)
k Yat mlar ”)
Aç klama [o1]: Yeni Sa k n
buraya eklenmesi gerekiyor
As at 31 December 2010 consolidated subsidiaries comprised the following:
- Ac badem Poliklinikleri Anonim irketi (“Ac badem Poliklinikleri”)
- Ac badem Labmed Sa k Hizmetleri Anonim irketi (“Ac badem Labmed”)
- International Hospital stanbul Anonim irketi (“International Hospital”)
- International Hospital Sa k Yat mlar Anonim irketi (“International Hospital Sa
- Ac badem Kayseri Hastanesi Anonim irketi (“Ac badem Kayseri”)
- Konur Sa k Hizmetleri Anonim irketi (“Konur Sa k”)
- Ac badem Mobil Sa k Hizmetleri Anonim irketi (“Ac badem Mobil”)
k Yat mlar ”)
Ac badem Sa k Hizmetleri ve Ticaret Anonim irketi and consolidated subsidiaries are collectively named
as “Group”.
Related parties of the Group are listed as following:
- Ac badem Holding Anonim irketi (“Ac badem Holding”)
- Ac badem Sa k ve Hayat Sigorta Anonim irketi (“Ac badem Sigorta”)
- Ac badem Proje Yönetimi Anonim irketi (“Ac badem Proje”)
- Aplus Hastane ve Otelcilik Hizmetleri Anonim irketi (“Aplus Otelcilik”)
- Ac badem Sa k Yat mlar Holding Anonim irketi (“Ac badem Yat m”)
- Almond Holding Anonim irketi (“Almond Holding”)
- Abraaj Capital Limited (“Abraaj Capital”)
- Akademia Sa k Hizmet ve Sistemleri Yönetim ve Dan manl k Anonim irketi (“Akademia”)
- Çaml ca Turizm ve Yatç k Anonim irketi (“Çaml ca Turizm”)
- Ac badem Di Sa
Hizmetleri Anonim irketi (“Ac badem Di ”)
- Ac badem E itim ve Sa k Vakf (“Ac badem Vakf ”)
- Telepati Tan m Hizmetleri Anonim irketi (“Telepati Tan m”)
- Çukurova Bilim Laboratuarlar Anonim irketi (“Çukurova Bilim”)
- Ac badem Üniversitesi (“Ac badem Üniversite”)
- Kerem Ayd nlar Vakf (“Kerem Ayd nlar”)
- Ayd nlar Sa k Hizmetleri Limited irketi (“Ayd nlar Sa k”)
- BLAB Laboratuvar Hizmetleri Anonim irketi (“BLAB”)
Since these organizations are not in relation with the capital of Group, they are not consolidated.
6
2
Basis of presentation of the condensed consolidated financial statements
2.1
Basis of presentation
2.1.1
Statement of compliance
The Group maintains its book of accounts and prepares its statutory financial statements in TL in accordance
with the Turkish Uniform Chart of Accounts promulgated by Capital Markets Board of Turkey (“CMB”),
Turkish Commercial Code and Turkish Tax Code. Subsidiaries maintain their records and prepare their
statutory financial statements in accordance with the generally accepted accounting principles and the related
legislation applicable in the countries they operate
The accompanying condensed consolidated financial statements of the Group have been prepared in
accordance with the accounting and reporting principles issued by CMB (“CMB Financial Reporting
Standards”). CMB published Communiqué No: XI-29 “Basis for Financial Reporting in the Capital Markets”
(“Communiqué No: XI-29”). In Communiqué No: XI-29, CMB determines the principles, procedures and
basis for composing financial reports. Communiqué No: XI-29 is effective from the first interim period
reporting after 1 January 2008 which supersedes Communiqué No: XI-25 “The Accounting Standards in
Capital Markets” (“Communiqué No: XI-25”). In accordance with Communiqué No: XI-29, the companies are
required to prepare their financial statements in accordance with the International Financial Reporting
Standards as accepted the European Union (“EU GAAP”). However, until Turkish Accounting Standards
Board (“TASB”) publishes the differences between the European Union accepted International Accounting
Standards (“IAS”) and International Financial Reporting Standards (“IFRS”) issued by International
Accounting Standards Board (“IASB”), IAS/IFRS has to be applied by the companies. Within the above
mentioned scope, Turkish Financial Reporting Standards (“TFRS”) issued by TASB will be applied if there is
not inconsistency in the standards applied.
As at the date of this report, the differences between EUGAAP and IFRS issued by IASB have not been issued
by TASB, the accompanying financial statements have been prepared in accordance with TFRS which are
identical to IAS/IFRS to conform with Communiqué No: XI-29. The financial statements and notes to the
financial statements have been presented in accordance with the amendments to Communiqué XI- 29 issued
by CMB on 17 April 2008 and 9 January 2010, which advises the templates to be used for financial statements
and notes to the financial statements.
CMB allows the companies to present their interim financial statements in accordance with IAS 34 “Interim
Financial Statements”. As at 30 June 2011, the interim condensed consolidated financial statements of the
Group are prepared and presented as condensed financial statements.
Notes to financial statements to be prepared in accordance with Communiqué No: XI-29 are summarized or
not presented in accordance with IAS 34. The accompanying condensed consolidated financial statements
should be taken into consideration together with the consolidated financial statements and accompanying notes
for the year ended 31 December 2010. Interim financial results do not solely represent the year end financial
results.
The Group continued to apply the accounting policies and accounting estimates presented in the consolidated
financial statements as at 31 December 2010, except reclassifications stated below:
Changes presented under the debt provision section in the cash flow statement dated 30 June 2010 related to
the forward transaction amounted TL 688,617 and swap transaction amounted TL 246,452 have been
classified to other financial liabilities.
Swap expense accrual amounting to 4,299,190 as at 30 June 2010 has been classified to other financial
liabilities in the financial position table.
The accompanying condensed consolidated financial statements of the Group have been approved by the
board of directors of the Group on 25 August 2011. The general assembly of the shareholders and legal
authorities have authority to change the accompanying condensed consolidated financial statements.
7
2
Basis of presentation of the condensed consolidated financial statements (continued)
2.1
Basis of presentation (continued)
2.1.2
Basis of consolidation
As at 30 June 2011, the condensed consolidated financial statements comprised the accounts of Ac badem
Sa k Hizmetleri ve Ticaret Anonim irketi and its subsidiaries.
(i)
Subsidiaries
The condensed consolidated financial statements include the financial statements of the Company and entities
controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern
the financial and operating policies of an entity so as to obtain benefits from its activities by.
(a) having a power over 50% of the voting rights acquired through shareholding interest held either
directly or indirectly;
(b) or having a power and authority to govern the financial and operating policies of the entity, so as to
obtain benefits from its activities, although not having more than 50% of the voting rights.
This power to control is evidenced when the Group is able to govern the financial and operating policies of an
enterprise so as to benefit from its activities. Subsidiaries are consolidated from the date on which control is
transferred to the Group and cease to be consolidated from the date on which control is transferred out of the
Group.
As at 30 June 2011 and 31 December 2010, the subsidiaries in which the Group owns direct or indirect
controls their operations and the shareholding interests are given below:
Subsidiary
Ac badem Polyclinics
Ac badem Labmed
International Hospital
International Hospital Sa
Ac badem Kayseri
Yeni Sa k
Konur Sa k
Gemt p
Ac badem Mobil
Capital share ratio (%)
30 June 2011
31 December 2010
99.99
99.99
49.99
49.99
90.00
90.00
99.99
99.99
99.99
99.99
99.90
-85.00
50.00
58.00
-99.99
99.99
k Yat mlar
As at 30 June 2011 and 31 December 2010, ‘‘full consolidation method’’ is used to consolidate the financial
statements of these subsidiaries.
(ii)
Transaction eliminated on consolidation
The balance sheets and income statements of subsidiaries are consolidated by using the full consolidation
method and investments in subsidiaries and related share capital reflected in the equity are eliminated. Net
assets of the subsidiaries which are not directly and /or indirect under the control of the parent company are
reflected as "Non-controlling interest" line of the balance sheet, and the net profit or loss which is not under
the control of the parent company, is reflected as ‘Non-controlling interests’ line in the income statement.
Transactions and balances between consolidated companies are eliminated during consolidation. Profit and
loss occurred transactions of participation, main partnership and consolidated subsidiaries, were classified/
arranged in accordance with share of main partnership in participation. However, if losses after all these
transactions showed the decline of value, then classification/arrangement did not exercise.
8
2
2.1
2.1.3
New standards and interpretations adopted in 2011 that have no effect on the Group’s financial statements
As of June 30, 2011, IASB ("International Accounting Standards Committee") of IAS1 "Presentation of
Financial Statements" published in the two changes.
The first change is related to change fixed date of 1 January 2004 and first transition date to IFRS. It
eliminates the necessity of implementing derecognition of transactions for the companies that apply IFRS for
the first time, before the date of transition to IFRS. Amendment will be effective for financial
statements prepared after 1 January 2011 and will have no effect on the Group's financial statements. The
second change is described in “standards and interpretations were not in effect in 2011section .”
IFRS 7 “Financial Instruments” is amended to add an explicit statement that the interaction between
qualitative and quantitative disclosures better enables users to evaluate an entity’s exposure to risks arising
from financial instruments. The amendment is effective for annual periods beginning on or after 1 January
2011 and it is not expected impact on the financial statements.
IFRIC 13 “Customer Loyalty Programmes - Fair Value of Award Credit” amended to state that the fair value
of award credits takes into account the amount of discounts or incentives that otherwise would be offered to
customers that have not earned the award credits. The amendment is effective for annual periods beginning on
or after 1 January 2011 and it is not expected to impact on the financial statements.
IAS 34 “Interim Financial Reporting - Significant Events and Transactions” A number of examples have been
added to the list of events or transactions that require disclosure under IAS 34. The amendment is effective for
annual periods beginning on or after 1 January 2011 and it is not expected impact on the financial statements.
The revised IAS 24 “Related Party Disclosures” amends the definition of a related party and modifies certain
related party disclosure requirements government-related entities. The main changes to IAS 24 are:
A partial exemption from the disclosure requirements for transactions between a governmentcontrolled reporting entity and that government or other entities controlled by that government; and
Amendments to the definition of a related party.
IASB agreed that the partial exemption from the disclosure requirements should be required to be made
retrospectively, because this should result in a reduction of 'clutter' in the footnotes and an identification of
better information about the nature and extent of significant transactions with the government.
In addition, IASB agreed that the definition of a related party should also be applied retrospectively from the
effective date. In addition, the Board agreed that an entity should be permitted to adopt the partial exemption
for government-controlled entities before the effective date even if it does not adopt the amended definition of
related party until a later date.
IAS 27 “Consolidated and Separate Financial Statements – Transition requirements for amendments made as
a result of IAS 27 (2008) to IAS 21, IAS 28 and IAS 31” Consequential amendments to IAS 21 The Effects of
Changes in Foreign Exchange Rates, IAS 28 Investments in Associates and IAS 31 Interests in Joint Ventures
(as a result of prior amendments to IAS 27) to be applied prospectively, except for the amendments to IAS 28
and IAS 31 that solely are the result of renumbering in IAS 27 (2008). The amendment is effective for annual
periods beginning on or after 1 January 2011 and it is not expected to have any impact on the financial
statements.
9
2
2.1
2.1.4
New standards and interpretations not yet adopted as at 30 June 2011
The Company has applied all the standards issued by IASB and all the interpretations issued by IASB’s
International Financial Reporting Interpretation Committee (“IFRIC”) which are effective as at 30 June 2011.
Some new standards, amendments to standards and interpretations which are not effective as at 30 June 2011
have not been applied during the preparation of the accompanying condensed consolidated financial
statements.
As at 20 December 2010, the International Accounting Standards Board (IASB) issued two narrow
amendments to IFRS 1. The first amendment is disclosed in “New standards and interpretations adopted in
2011 that have no effect on the Company’s financials”.
The second amendment provides guidance on how an entity should resume presenting financial statements in
accordance with IFRSs after a period when the entity was unable to comply with IFRSs because its functional
currency was subject to severe hyperinflation. The amendment is effective for annual periods beginning on or
after 1 July 2011 and it is not expected to have any impact on the financial statements.
IFRS 7 “Financial Instruments” is amended to will allow users of financial statements to improve their
understanding of transfer transactions of financial assets (for example, securitisations), including
understanding the possible effects of any risks that may remain with the entity that transferred the assets. The
amendments also require additional disclosures if a disproportionate amount of transfer transactions are
undertaken around the end of a reporting period. The amendment is effective for annual periods beginning on
or after 1 July 2011 and it is not expected to have any impact on the financial statements. The amendment is
effective for annual periods beginning on or after 1 July 2011 and it is not expected to have any impact on the
financial statements.
IFRS 9 “Financial Instruments” has been issued on November 2009, by the IASB as the first step in its
project to replace IAS 39 “Financial Instruments: Recognition and Measurement”. IFRS 9 retains but
simplifies the mixed measurement model and establishes two primary measurement categories for financial
assets: amortized cost and fair value. The basis of classification depends on the entity’s business model and the
contractual cash flow characteristics of the financial asset. The guidance in IAS 39 on impairment of financial
assets and hedge accounting continues to apply. The amendment is effective for annual periods beginning on
or after 1 January 2013 although entities are permitted to adopt them earlier prior periods need not be restated
if an entity adopts the standard for reporting periods beginning before 1 January 2013.
The International Accounting Standards Board (IASB) has issued amendments to IAS 12 “Income Taxes” as at
31 December 2010. The amendments set out in Deferred Tax: Recovery of Underlying Assets, result from
proposals published for public comment in an exposure draft in September.
IAS 12 requires an entity to measure the deferred tax relating to an asset depending on whether the entity
expects to recover the carrying amount of the asset through use or sale. It can be difficult and subjective to
assess whether recovery will be through use or through sale when the asset is measured using the fair value
model in IAS 40 “Investment Property”. The amendment provides a practical solution to the problem by
introducing a presumption that recovery of the carrying amount will, normally be through sale.
As a result of the amendments, SIC-21 Income Taxes—Recovery of Revalued Non-Depreciable Assets would
no longer apply to investment properties carried at fair value. The amendments also incorporate into IAS 12
the remaining guidance previously contained in SIC-21, which is accordingly withdrawn. The amendment is
effective for annual periods beginning on or after 1 January 2012 and it is not expected to have any impact on
the financial statements. IFRS 10 “Consolidated Financial Statements” standard is effective for annual
periods beginning on or after 1 January 2013 and are applied on a modified retrospective basis. This new
Standard may be adopted early, but IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other
Entities should be also adopted early.
IFRS 11 “Joint Arrangements” standard is effective for annual periods beginning on or after 1 January 2013
and are applied on a modified retrospective basis. This new Standard may be adopted early, but IFRS 10
10
2
2.1
2.1.4
New standards and interpretations not yet adopted as at 30 June 2011 (continued)
“Consolidated Financial Statements” and IFRS 12 “Disclosure of Interests in Other Entities” should be also
adopted early. The standard describes the accounting for joint ventures and joint operations with joint control.
Among other changes introduced, under the new standard, proportionate consolidation is not permitted for
joint ventures. The Company does not expect that this standard will have a significant impact on the financial
position or performance of the Company.
IFRS 12 “Disclosure of Interests in Other Entities” standard is effective for annual periods beginning on or
after 1 January 2013 and are applied on a modified retrospective basis. This new Standard may be adopted
early, but IFRS 10 Consolidated Financial Statements and IFRS 11 Joint Arrangements should be also adopted
early.
IFRS 12 includes all of the disclosures that were previously in IAS 27 “Consolidated and Separate Financial
Statements” related to consolidated financial statements, as well as all of the disclosures that were previously
included in IAS 31 “Interests in Joint Ventures” and IAS 28 “Investment in Associates”. These disclosures
relate to an entity‘s interests in subsidiaries, joint arrangements, associates and structured entities. Under the
new standard it is expected that more comprehensive disclosures will be given for interests in other entities.
Revised IFRS 13 “Fair Value Measurement” provides guidance on how to measure fair value under IFRS but
does not change when an entity is required to use fair value. It is a single source of guidance under IFRS for
all fair value measurements. The new standard also brings new disclosure requirements for fair value
measurements. IFRS 13 is effective for annual periods beginning on or after 1 January 2013 and will be
adopted prospectively. Early application is permitted. The new disclosures are only required for periods
beginning after IFRS 13 is adopted — that is, comparative disclosures for prior periods are not required. The
Company is in the process of assessing the impact of the new standard on the financial position or
performance of the Company.
IFRS 10 replaces the portion of IAS 27 “Consolidated and Separate Financial Statements” that addresses the
accounting for consolidated financial statements. A new definition of control is introduced, which is used to
determine which entities are consolidated. This is a principle based standard and require preparers of financial
statements to exercise significant judgment. The Company does not expect that this standard will have a
significant impact on the financial position or performance of the Company. It will be effective from 1 January
2013 or for annual periods beginning after that date.
Amended IAS 19 “Employee Benefits” standard is effective for annual periods beginning on or after 1 January
2013, with earlier application permitted. With very few exceptions retrospective application is required.
Numerous changes or clarifications are made under the amended standard. Among there numerous
amendments, the most important changes are removing the corridor mechanism and making the distinction
between short-term and other long-term employee benefits based on expected timing of settlement rather than
employee entitlement. The Company is in the process of assessing the impact of the new standard on the
financial position or performance of the Company.
The amendments to IAS 1 “Presentation of Financial Statements” are effective for annual periods beginning
on or after 1 July 2012. The amendments to IAS 1 change only the grouping of items presented in other
comprehensive income. Items that could be reclassified to profit or loss at a future point in time would be
presented separately from items which will never be reclassified.
IAS 28 Investments in Associates and Joint Ventures (2011) has taken place of IAS 28 (2008) and it will be
effective on 1 January 2013 or for annual periods beginningafter that date.
11
3
Business combinations
Konur Sa
k
One of the Group’s subsidiaries Ac badem Poliklinikleri acquired over 35% of the shares of Konur Sa k
from other third party shareholders based on the board of directors decision dated 9 March 2011 and has
increased its shares to 85%. The agreed amount to be paid for this acquisition is amounting to USD 945,000.
Goodwill arising on the acquisition of shares is presented in the retained earnings/ (accumulated loss) in
accordance with revised IFRS 3. (Note:7)
Yeni Sa
k
Based on the board of directors decision taken at 28 April 2011, 99.90% of the shares of Yeni Sa k, which
owns and operates Göztepe afak Hospital in Göztepe ditrict of stanbul John F. Kennedy Hospital (“JFK”) in
Bahçelievler district of stanbul has been acquired. The agreed amount for the acquisition of these shares is
amounting to USD 28,239,250 and the payments will be done from the end of the 11st month following the
the actual share transfer with the installments of USD 1,000,000. The price has been determined with the
mutual discussions and negotiations. Goodwill arising from the acquisition of shares are shown in the note 7.
Gemt p
Konur Sa k, which is subsidiary of Ac badem Poliklinikleri has acquired 58% shares of Gemt p Özel Sa k
Hizmetleri which operates in Gemlik/Bursa district for outpatient. The amount paid for the acquisition is
amounting to TL 14,500. Since the amount is negligible for the condensed consolidated financial statements,
no goodwill amount has been booked. The condensed consolidated financial statements of Ac badem
Poliklinikleri as at 30 June 2011, which are consolidated to accompanying condensed consolidated financial
statements of the Group, include the condensed consolidated financial statements of Konur Sa k and Gemt p.
4
Segment reporting
The Group’s main business activity consists of inpatient, outpatient and emergency care services. The Group
sales are allocated as inpatients, outpatients and hospital branches. All Group sales have been realized in
domestic basis; accordingly no geographical classification has been presented.
As at 30 June 2011, composition of sales and cost of sales of the Group is as follows:
According to the type of treatment
1 January - 30 June 2011
Type of Treatment
Inpatients
Outpatients
Number
of Patient
Net
Revenue
Revenue
Ratio (%)
Cost of
Revenue
Gross
Profit
87,482
1,249,390
1,336,872
289,658,257
203,970,104
493,628,361
59
41
100
(227,374,407)
(155,275,353)
(382,649,760)
62,283,850
48,694,751
110,978,601
Number
of Patient
Net
Revenue
Revenue
Ratio (%)
Cost of
Revenue
Gross Profit
45,090
616,838
661,928
150,611,862
97,670,644
248,282,506
61
39
100
(120,359,638)
(74,378,124)
(194,737,762)
30,252,224
23,292,520
53,544,744
1 April - 30 June 2011
Type of Treatment
Inpatients
Outpatients
12
4
Segment Reporting (continued)
According to the type of treatment (continued)
Type of Treatment
Number
of Patient
Revenue
Revenue
Ratio (%)
Cost of
Revenue
Gross
Profit
46,727
1,011,665
1,058,392
205,342,773
158,446,775
363,789,548
56
44
100
(162,453,016)
(121,615,061)
(284,068,077)
42,889,757
36,831,714
79,721,471
Number
of Patient
Revenue
Revenue
Ratio (%)
Cost of
Revenue
Gross
Profit
24,265
542,950
567,215
105,358,434
80,401,743
185,760,177
57
43
100
(84,768,927)
(62,076,996)
(146,845,923)
20,589,507
18,324,747
38,914,254
Inpatients
Outpatients
Type of Treatment
Inpatients
Outpatients
According to the hospital locations
Revenues
Cost of revenue (-)
Gross Profit / (Loss)
Operating expenses
Other operating income/expense (net)
Financial income/expense (net)
Tax expense
Net profit / (Loss) for the period
stanbul
Other than
Istanbul
365,058,123
(261,150,727)
103,907,396
128,570,238
(121,499,033)
7,071,205
13
Total
493,628,361
(382,649,760)
110,978,601
(46,419,621)
1,102,788
(46,808,581)
(6,116,018)
12,737,169
4
Segment Reporting (continued)
According to the hospital location (continued)
Revenues
Cost of revenue (-)
Operating expenses
Tax expense
Istanbul
Other than
Istanbul
182,041,241
(131,645,585)
50,395,656
66,241,265
(63,092,177)
3,149,088
Istanbul
Other than
Istanbul
280,857,006
(200,129,817)
80,727,189
82,932,542
(83,938,260)
(1,005,718)
Istanbul
Other than
Istanbul
141,612,257
(102,014,667)
39,597,590
44,147,920
(44,831,256)
(683,336)
Total
248,282,506
(194,737,762)
53,544,744
(27,167,301)
(1,673,904)
(39,678,562)
1,784,362
(13,190,661)
Revenues
Cost of revenue (-)
Operating expenses
Tax expense
Total
363,789,548
(284,068,077)
79,721,471
(41,449,264)
1,754,847
(24,764,580)
(3,546,635)
11,715,839
Revenues
Cost of revenue (-)
Operating expenses
Tax expense
Net profit/ (Loss) for the period
14
Total
185,760,177
(146,845,923)
38,914,254
(25,579,041)
1,321,909
(18,242,644)
(1,968,711)
(5,554,233)
5
Tangible assets
For the six months perioed ended 30 June 2011, movement in the tangible assets is as follows:
Cost
Balances at 1 January 2011
Additions
Additions from acquisition of a
new subsidiary
Disposals
As at 30 June 2011
Land
Buildings
Machinery
and
equipment
Motor
vehicles
Furniture
and fixtures
Financial
leased tangible
assets
Leasehold
improvements
Other
tangible
assets
Construction
in progress
Total
31,645,702
2,134,795
181,523,816
541,692
294,741,728
8,014,022
4,388,225
197,561
77,213,252
3,073,585
117,483,640
3,181,935
202,253,250
6,199,773
563,536
--
2,249,366
5,646,424
912,062,515
28,989,787
---
---
7,462,493
(676,516)
-(293,536)
---
2,276,109
(15,896,639)
---
-(26,746)
12,173,032
(17,380,377)
33,780,497
182,065,508
309,541,727
4,292,250
82,234,327
120,665,575
194,832,493
563,536
7,869,044
935,844,957
---
20,841,603
2,084,465
215,476,593
12,058,901
2,373,310
366,007
48,112,446
4,083,056
36,076,951
10,702,101
62,016,019
8,707,076
78,917
10,181
---
384,975,839
38,011,787
---
---
107,103
(489,760)
-(209,854)
30,403
(482,684)
---
9,494
(3,097,903)
---
---
147,000
(4,280,201)
--
22,926,068
227,152,837
2,529,463
51,743,221
46,779,052
67,634,686
89,098
--
418,854,425
2,434,430
(486,940)
Accumulated depreciation
1 January 2011
Charge for the period
new subsidiary
Disposals
Closing balance as at 30 June
2011
Net book value as at 30 June
2011
516,990,532
As at 30 June 2011, tangible assets have been insured to the extent of TL 873,789,468 (31 December 2010: TL 848,276,863).
As at 30 June 2011, tangible assets are pledged to the extent of TL 268,762,923 (31 December 2010: TL 254,881,290).
As at 30 June 2011 and 31 December 2010, the Company utilizes tangible assets which have nil net book value on its accounts. (30 June 2011 Cost: TL 206,253,587 , Accumulated
Depreciation: TL 206,253,587; 31 December 2010 Cost: TL 184,658,966; Accumulated Depreciation: TL 184,658,966).
15
5
Tangible assets (continued)
For the year ended 31 December 2010, the movement in tangible assets is as follows:
Land
Buildings
Machinery
and
equipment
19,766,070
179,814,683
284,811,244
3,118,203
68,284,501
81,499,234
161,167,019
563,536
25,930,838
824,955,328
Transfer (*)
-11,879,632
---
-1,709,133
---
339,368
6,344,514
(2,463,145)
5,709,747
77,301
1,238,025
(98,432)
53,128
705,917
4,717,402
(99,266)
3,604,697
-17,771,669
(627,478)
18,840,215
543,244
14,897,262
(2,291,552)
27,937,277
-----
-32,845,645
(280,630)
(56,246,487)
1,665,830
91,403,282
(5,860,503)
(101,423)
As at 31 December 2010
31,645,702
181,523,816
294,741,728
4,388,225
77,213,252
117,483,640
202,253,250
563,536
2,249,366
912,062,514
--
16,687,419
192,580,106
1,797,643
39,861,937
19,165,151
45,861,195
57,881
--
316,011,332
----
-4,154,184
--
12,548
25,273,572
(2,389,633)
25,683
572,295
(22,311)
443,838
7,887,346
(80,675)
-17,392,554
(480,754)
223,214
15,977,811
(46,201)
-21,036
--
----
705,283
71,278,798
(3,019,574)
--
20,841,603
215,476,593
2,373,310
48,112,446
36,076,951
62,016,019
78,917
--
384,975,839
Cost
Balances at 1 January 2010
new subsidiary
Additions
Disposals
Motor
vehicles
Furniture
and fixtures
Financial
leased tangible
assets
Leasehold
improvements
Other
tangible
assets
Construction
in progress
Total
Accumulated depreciation
Balances at 1 Jan ary 2010
new subsidiary
Disposals
Closing balance as at 31
December 2010
Net book value as at 31
December 2010
527,086,675
(*)Tangible assets amounting to TL 101,423 has been transferred to other intangible assets.
16
Amounts are expressed in Turkish Lira(“TL”) unless otherwise stated
5
Tangible assets (continued)
Construction in progress
30 June 2011
Project
Ac badem Ankara Hospital
Ac badem Bodrum Hospital
Expenditure Amount
3,559,126
4,309,918
7,869,044
Total Cost of Project
20,000,000
20,000,000
40,000,000
Ac badem Ankara Hospital
According to the agreement dated July 23, 2010, Group has a project located in Ankara, Cankaya,
Dikmen district which is an hospital project on approximately 10,000 m2 covered area with 16 floors. The
Company will acquire medical device and equipment and the construction of the building will be
completed by subcontractor firms. The hospital is expected to accept its patients in 2012.
Ac badem Bodrum Hospital
Group has a hospital project on 11,500 m 2 closed area in Ortakent district located in Bodrum, Mu la. This
hospital is expected to accept its patients in 2012.
6
Intangible assets
For the six-months period ended 30 June 2011, movement in the intangible assets is as follows:
Cost
1 January 2011
Additions from acquisition of a new
subsidiary
Additions
Disposals
As at 30 June 2011
Accumulated Amortization
1 January 2011
subsidiary
Disposals
Rights
Other intangible
assets
Total
2,428,831
5,424,893
7,853,724
199,411
2,610,200
(800)
5,237,642
208,696
158,200
-5,791,789
408,107
2,768,400
(800)
11,029,431
1,353,963
3,455,903
4,809,866
10,876
108,847
(44)
1,473,642
879
148,737
11,755
257,584
(44)
5,079,161
5,950,270
Net book value as at 30 June 2011
17
3,605,519
6
Intangible Assets (continued)
For the year ended 31 December 2010, movement in the intangible assets is as follows:
Cost
1 January 2010
Additions
subsidiary
Transfer
Closing balance as at 31 December
2010
Accumulated Amortization
1 January 2010
subsidiary
Net book value as at 31 December 2010
Rights
Other intangible
fixed assets
Total
2,041,462
315,502
4,737,282
594,752
6,778,744
910,254
61,058
10,809
2,245
90,614
63,303
101,423
2,428,831
5,424,893
7,853,724
1,173,011
146,654
3,146,573
308,867
4,319,584
455,521
34,298
1,353,963
1,074,868
463
3,455,903
1,968,990
34,761
4,809,866
3,043,858
At 30 June 2011 and 31 December 2010, the Company has intangible assets in use which have nil net
book value on its accounts. (30 June 2011 Cost: TL 4,027,103, Accumulated Amortization: TL
4,027,103, 31 December 2010 Cost: TL 3,900,693, Accumulated Amortization: TL 3,900,693).
7
Goodwill
As at 30 June 2011 and 31 December 2010 the goodwill comprised the acquisitions shown below:
30 June
2011
46,417,257
39,292,955
6,234,605
1,547,107
93,491,924
Yeni Sa k
Ac badem Policlinics
Konur Sa k
18
31 December
2010
-39,292,955
6,234,605
1,547,107
47,074,667
7
Goodwill (continued)
Konur Sa
k
One of the Group’s subsidiaries Ac badem Poliklinikleri has acquired 35% of the shares of Konur Sa k
from other third party shareholders based on the board of directors decision dated 9 March 2011 and has
increased its shares to 85%. The agreed amount to be paid for this acquisition is amounting to USD
945,000. Goodwill arising on the acquisition of shares is presented in the retained earnings/ (accumulated
loss) in accordance with revised IFRS 3.
30 June 2011
1,493,100
(534,782)
958,318
958,318
Acquisition cost
Subsidiaries equity (additional 35.00%)
Goodwill (9 March 2011)
Goodwill net book value
Yeni Sa
k
Based on the board of directors decision taken at 28 April 2011, 99.90% of the shares of Yeni Sa k
which owns and operates Göztepe afak Hospital in Göztepe district of stanbul and John F. Kennedy
Hospital (“JFK”) in Bahçelievler district of stanbul has been acquired. The agreed amount for the
acquisition of these shares is amounting to USD 28,239,250 and the payments will be done from the end
of the 11st month following the the actual share transfer with the installments of USD 1,000,000. The
price has been determined with the mutual discussions and negotiations. Goodwill arising from the
acquisition of shares are shown in the following table.
30 June 2011
47,823,972
(1,406,715)
46,417,257
46,417,257
Acquisition cost
Subsidiaries equity ( 99,90%)
Goodwill (31 May 2011)
Goodwill net book value
Gemt p
Konur Sa k which is a subsidiary of Ac badem Poliklinikleri has acquired 58% shares of Gemt p Özel
Sa k Hizmetleri which operates in Gemlik/Bursa district for outpatient. The amount paid for the
acquisition is amounting to TL 14,500. Since the amount is negligible for the condensed consolidated
financial statements, no goodwill amount had been booked . The condensed consolidated financial
statements of Ac badem Poliklinikleri as at 30 June 2011, which are consolidated to accompanying
condensed consolidated financial statements of the Group, include the condensed consolidated financial
statements of Konur Sa k and Gemt p.
8
As at 30 June 2011 and 31 December 2010, short term financial liabilities comprised the following:
Short term bank borrowings and short term portion of long term
bank borrowings
Financial lease liabilities (net)
19
30 June
2011
31 December
2010
78,582,848
18,758,817
97,341,665
77,722,338
14,080,748
91,803,086
8
Financial liabilities (continued)
As at 30 June 2011 and 31 December 2010, long term financial liabilities comprised the following:
30 June
2011
285,914,769
89,703,941
375,618,710
Long term bank borrowings
Financial lease liabilities (net)
31 December
2010
296,198,560
83,729,844
379,928,404
Bank borrowings
As at 30 June 2011, the details of short term bank borrowings comprised the following:
Type
Curreny type
Original
currency
Interest rate (%)
30 June
2011
Garanti Bankas
Garanti Bankas
Bankas
Bankas
Operations
Tax
Operations
Operations
TL
TL
TL
TL
16,636,000
3,033,805
3,000,000
344,850
13.00
-10.00
10.00
16,636,000
3,033,805
3,000,000
344,850
Garanti Bankas
Garanti Bankas
Tax
Operations
TL
TL
327,610
320,000
-10.00
327,610
320,000
Garanti Bankas
Tax
TL
292,311
--
292,311
Garanti Bankas
Vak fbank
Garanti Bankas
Garanti Bankas
Garanti Bankas
Bankas
Denizbank
TEB
Bankas
Operations
Tax
Tax
Tax
Tax
Operations
Operations
Vehicle Loan
Investment
TL
TL
TL
TL
TL
TL
TL
TL
USD
280,000
242,607
231,279
182,395
159,185
90,171
7,820
6,027
2,043,233
13.00
----10.00
10.00
11.50
3.30
280,000
242,607
231,279
182,395
159,185
90,171
7,820
6,028
3,330,879
28,484,940
Bank name
Short term portion of long term bank borrowings
Original
currency
amount
Interest
rate(%)
30 June 2011
Bank name
Currency type
Collateral
Garanti Bankas
USD
Yes
25,943,351
Libor + 3.9
42,292,851
Bayerische
Hypovereinsbank AG
EURO
Yes
1,577,063
Euribor+
0.625
3,704,838
Vak fbank
USD
Yes
2,515,163
Libor +4.25
20
4,100,219
50,097,908
78,582,848
8
As at 30 June 2011 the details of long term bank borrowings comprised the following:
Bank name
Type
Currency
type
Collateral
Original
currency
amount
Interest
rate(%)
30 June
2011
273,873,600
Garanti Bankas
Investment
Yes
USD
168,000,000
Vak fbank
Investment
Yes
USD
6,250,000
Libor + 3.9
Libor
+4.25
Bayerische
Hypovereinsbank
AG
Hermes
Yes
EURO
788,532
Euribor
+0.625
As at 30 June 2011, the long term bank borrowings repayment schedule of the Group is as follows:
Years
2012
2013
2014
2015
2016
2017
2018
2012
Currency
Type
USD
Dolar
USD
USD
USD
USD
USD
USD
EURO
Original Currency
Amount
15,250,000
30,500,000
30,500,000
28,000,000
28,000,000
28,000,000
14,000,000
788,532
TL Amount
24,860,550
49,721,100
49,721,100
45,645,600
45,645,600
45,645,600
22,822,800
1,852,419
285,914,769
As at 30 June 2011, the maturities of bank borrowings are as follows:
30 June 2011
0 - 3 months
3 months – 1 year
1 - 5 years
5 years and more
25,063,890
53,518,958
194,623,569
91,291,200
364,497,617
21
10,188,750
1,852,419
285,914,769
8
As at 30 June 2011, the guarantees given related to the bank borrowings are as follows:
Type of Guarantee
Mortgage
Commercial Pledge
Blocked Deposit (*)
30 June 2011
Original Currency
Amount
164,865,000
--164,865,000
Currency
Type
USD
TL
TL
TL Amount
268,762,923
600,000,000
19,648,834
888,411,757
(*) 30 June 2010: TL 10,431,229 Reserve Deposit
As explained in detail in Note 10, as of 30 June 2011 and 31 December 2010, Garanti Bankas has 1st and
2nd degree of pledges on the shares of the Company owned by Almond Holding A. . and the 1st degree
of pledges on the Company’s shares at the subsidiaries.
As at 31 December 2010, short term bank borrowings comprised the following:
Bank name
Garanti Bankas A. .
Denizbank
Türkiye Bankas Anonim irketi (“
Bankas ”)
Garanti Bankas A. .
Garanti Bankas A. .
Garanti Bankas A. .
Garanti Bankas A. .
Türkiye Bankas Anonim irketi (“
Bankas ”)
T. Vak flar Bankas A. .
Garanti Bankas A. .
Garanti Bankas A. .
Garanti Bankas A. .
TEB
Denizbank
Yap ve Kredi Bankas Anonim irketi
Bankas Bahreyn
Type
Operating
Operating
Currency
type
TL
TL
Original
currency
amount
18,676,000
10,700,000
Interest
rate(%)
7.50
7.35
31 December 2010
18,676,000
10,700,000
Operating
Tax
Operating
Tax
Operating
TL
TL
TL
TL
TL
3,000,000
2,882,686
2,400,534
285,219
250,053
7.60
-7.60
-7.50
3,000,000
2,882,686
2,400,534
285,219
250,053
Operating
Tax
Tax
Tax
Operating
Vehicle
Loan
Operating
Tax
Operating
TL
TL
TL
TL
TL
210,996
200,442
191,778
153,989
79,300
7.50
---7.50
210,996
200,442
191,778
153,989
79,300
TL
TL
TL
USD
40,908
29,368
6,705
2,011,183
11.50
7.60
-3.30
40,908
29,368
6,705
3,109,289
42,217,267
As at 31 December 2010, the details of short term portion of long term bank borrowings are as follows:
Bank Name
Garanti Bankas
Türkiye Vak flar Bankas
T.A.O (“Vak fbank”)
Bayerische Hypovereinsbank
AG
Currency
type
Original Currency
Amount
Interest
Rate(%)
31 December
2010
USD
18,339,657
Libor + 3.9
28,353,109
USD
2,518,917
Libor +4.25
3,894,246
EURO
1,589,828
Euribor 0.625
3,257,716
35,505,071
77,722,338
22
8
As at 31 December 2010, long term bank borrowings comprised the following:
Currency
type
Original
Currency
Amount
Interest Rate(%)
31 December
2010
Bank Name
Type
Garanti Bankas
Investment
USD
182,000,000
Libor + 3.9
281,372,000
Vak fbank
Bayerische
Hypovereinsbank
AG
Investment
USD
7,500,000
Libor +4.25
11,595,000
EURO
1,577,063
Euribor +0.625
3,231,560
296,198,560
Hermes
As at 31 December 2010, the long term bank borrowings repayment schedule of the Group is as follows:
Years
2012
2013
2014
2015
2016
2017
2018
2012
Currency
type
USD
USD
USD
USD
USD
USD
USD
EURO
Original currency
amount
30,500,000
30,500,000
30,500,000
28,000,000
28,000,000
28,000,000
14,000,000
1,577,063
TL Amount
47,153,000
47,153,000
47,153,000
43,288,000
43,288,000
43,288,000
21,644,000
3,231,560
296,198,560
As at 31 December 2010, the maturities of bank borrowings are as follows:
0 – 3 months
3 months – 1 year
1 - 5 years
5 years and more
31 December 2010
38,826,706
38,895,632
187,978,560
108,220,000
373,920,898
23
8
As at 31 December 2010, the guarantees given related to the bank borrowings are as follows:
Type of guarantee
Mortgage
Commercial Pledge
Blocked Deposit
31 December 2010
Original currency
amount
164,865,000
--164,865,000
Currency type
USD
TL
TL
TL Amount
254,881,290
600,000,000
16,512,214
871,393,504
According to the agreement signed with the Garanti Bank upon the USD 200,000,000 loan limit, the
Group has to comply with certain ratios. As at 30 June 2011 and 31 December 2011, the Group provides
all of the requirements of these ratios.
Finance lease liabilities:
As at 30 June 2011 and 31 December 2010, short term finance lease liabilities are as follows:
30 June 2011
24,545,995
(5,787,178)
18,758,817
Financial lease liabilities
Deferred financial lease liabilities (-)
31 December 2010
21,763,748
(7,683,000)
14,080,748
As at 30 June 2011 and 31 December 2010, long term finance lease liabilities are as follows:
30 June 2011
102,738,227
(13,034,286)
89,703,941
Deferred financial lease liabilities(-)
24
31 December 2010
107,639,335
(23,909,491)
83,729,844
8
As at 30 June 2011, long term financial lease liabilities repayment schedule of the Group is as follows:
Original currency
Years
Currency type
TL Amount
amount
EURO
2012
1,611,010
3,784,586
EURO
2013
3,222,022
7,569,173
EURO
2014
2,888,162
6,784,871
2015
EURO
2,516,481
5,911,717
2016
EURO
2,077,671
4,880,864
2017
EURO
569,179
1,337,115
2018
EURO
3
6
2012
USD
1,507,405
2,457,372
2013
USD
1,696,070
2,764,933
USD
2014
914,685
1,491,120
2015
USD
887,612
1,446,985
2016
USD
836,894
1,364,305
USD
2017
175,767
286,536
USD
2018
1,003
1,635
CHF
2012
2,817,212
5,507,367
CHF
2013
5,572,349
10,893,385
CHF
2014
5,572,349
10,893,385
CHF
2015
5,572,349
10,893,385
CHF
2016
5,572,349
10,893,385
CHF
2017
5,876,363
11,487,702
TL
2012
-370,077
TL
2013
758,567
-TL
2014
758,567
-TL
2015
201,189
-102,738,227
25
8
As at 31 December 2010, long term financial lease liabilities repayment schedule of the Group is as
follows:
Original currency
Years
amount
Currency type
TL Amount
EURO
2012
3,241,915
6,643,008
EURO
2013
3,198,677
6,554,410
EURO
2014
2,864,818
5,870,298
EURO
2015
2,493,137
5,108,686
EURO
2016
2,054,326
4,209,520
EURO
2017
563,332
1,154,324
EURO
2018
3
5
2012
USD
2,964,635
4,583,326
2013
USD
1,646,673
2,545,756
2014
USD
867,403
1,341,005
USD
2015
856,057
1,323,464
USD
2016
805,439
1,245,208
2017
USD
144,310
223,103
2018
USD
4
6
CHF
2012
6,721,862
11,049,397
CHF
2013
6,721,862
11,049,397
CHF
2014
6,721,862
11,049,397
CHF
2015
6,721,862
11,049,397
CHF
2016
6,721,862
11,049,397
CHF
2017
7,050,876
11,590,231
107,639,335
As at 30 June 2011 and 31 December 2010, the maturities of finance lease liabilities are as follows:
30 June
2011
4,242,129
20,303,866
81,556,014
21,182,213
127,284,222
0 – 3 months
3 months - 1 year
1 – 5 years
5 years and more
26
31 December
2010
2,934,926
18,828,820
94,671,664
12,967,673
129,403,083
9
Provisions, contingent assets and liabilities
As at 30 June 2011 and 31 December 2010, short-term provisions comprised the following:
30 June
2011
15,875,472
4,065,015
519,501
183,777
--215,421
20,859,186
Doctor payments expense provisions
Lawsuit provisions
Provisions for invoices returned from related institutions
Provision for deductions from SSI receivables
Provisions for unbilled miscellaneous expenses
Advisory commission expense
Others
31 December
2010
13,564,343
3,677,494
326,491
286,608
264,311
669,953
1,042,134
19,831,334
There are 78 lawsuits (31 December 2010: 72) against the Group totally amounting to TL 16,097,129 (31
December 2010: TL 15,132,129 TL). In addition there are 78 lawsuits related with termination and
notification indemnities by former employees (31 December 2010: 118) against the Group and the
provision amounting to TL 853,934 (31 December 2010: TL 706,034) is provided for these lawsuits in
the accompanying condensed consolidated financial statements.
The movement of provisions for the six month period 30 June 2011 is as follows:
Doctor payments expense
provisions
Lawsuit provisions
Provisions for invoices
returned from related
institutions
Provision for deductions
from SSI receivables
Provisions for unbilled
miscellaneous expenses
Provision for advisory
commission expense
Others
1 January
2011
Additions
Payments
Reversals
30 June
2011
13,564,343
3,677,494
15,875,472
387,780
(13,564,343)
(259)
---
15,875,472
4,065,015
326,491
193,010
--
--
519,501
286,608
183,777
(286,608)
--
183,777
264,311
--
(264,311)
--
--
669,953
837,982
19,831,334
-48,928
(669,953)
(837,982)
---
-48,928
20,859,186
27
10
Commitments
According to the decision of CMB on 29 September 2009 related to the commitments of publicly owned
companies given to the guarantee third party’s debts;
The commitments given;
i) For their own corporate identities,
ii) In favor of consolidated subsidiaries,
iii) In favor of third parties to continue their operations will not be limited.
After the decision is published at the Platform of Public Enlightenment, publicly owned companies will
not give commitments to real people or corporations other than mentioned at the bullets (i) and (ii) above
or to third parties other than mentioned at the bullet (iii). If any commitments are already given it will be
reduced to nil until 31 December 2014.
At 30 June 2011 and 31 December 2010, commitments given are as follows:
30 June 2011
A Commitments given in the name of
own corporate identities
B Commitments given in favor of
consolidated subsidiaries
C Commitments given in favor of
third parties to continue its operations
D Other commitments given
- in favor of parent company
- in favor of group companies other
than mentioned in bullets B and C
- in favor of third parties other than
mentioned in bullet iii)
Total
TL Equivalent
TL
USD
804,045,821
606,098,786
121,425,000
62,385,555
38,542,250
14,626,000
-1,551,510
--
-1,470,000
--
-50,000
--
1,551,510
1,470,000
50,000
-867,982,886
-646,111,036
-136,101,000
At 30 June 2011, the percentage of other Commitments to Company’s equity is 1.09%. (31 December 2010: 2.38%)
A Commitments given in the name of
own corporate identities
B Commitments given in favor of
consolidated subsidiaries
C Commitments given in favor of third
parties to continue its operations
D Other commitments given
- in favor of parent company
- in favor of group companies other
than mentioned in bullets B and C
- in favor of third parties other than
mentioned in bullet iii)
Total
TL Equivalent
31 December 2010
TL
USD
792,036,316
606,725,026
119,865,000
46,919,316
22,769,250
15,621,000
-3,120,000
--
-3,120,000
--
3,120,000
3,120,000
------
-842,075,632
-632,614,276
-135,486,000
28
10
Commitments (continued)
Pledges
The Group has ceded 80% of account receivable and blockage on the bank deposit amounting to TL
19,648,834 related with the bank borrowing from Garanti Bankas . The shares of the Company owned by
Almond Holding, which constitute 91.79% of the Company’s capital has been pledged at first and second
degrees. 90% share of the Company in International Hospital, 72.42% share of the Company in Ac badem
Kayseri, 49.99% share of the Company in Ac badem Labmed and 99.99% share of the Company in
Ac badem Poliklinikleri has been pledged at first degree.
Annotations
There is a decision which was given by the Bak rköy Municipality to demolish the supplement of
International Hospital building. On the same property there are two annotations of 99 yearly rent
statements in favour of Turkish Electricity Administration (“TEK”) and in favour of Turkish Electricity
Distribution Administration (“TEDA ”). Additionally, there are two annotations of 99 yearly rent
statements in favour of Istanbul Public Transportation Administration (“IETT”) and also two annotations
in favour of Avc lar Municipality on the Avc lar land.
Mortgages
Collateral Type
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Duration
Mortgage 1st
degree
Mortgage 1st
degree
Reason for granting collateral / Bank
Name
VUL*
Loan Collateral – Garanti Bankas
VUL
VUL
Mortgage Location
30 June 2011
(USD)
77,000,000
Ac badem Bursa Hospital
Ac badem Küçükyal
building
Ac badem Kozyata
warehouse
VUL
Ac badem Adana Hospital
24,000,000
VUL
Cumhuriyetköy Ac badem
1,350,000
VUL
VUL
Erkan Apt. miscelaneus
flats and apartment
buildings
VUL
Manolya Apt. No: 2-3
VUL
Loan Collateral – Türkiye Vak flar Bankas
Ac badem Kayseri Hospital
12,000,000
2,000,000
32,000,000
1,820,000
1,695,000
13,000,000
164,865,000
*VUL: Valid until lifted
29
10
Commitments (continued)
Collateral Type
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Mortgage 1st
degree
Duration
Reason for granting collateral / Bank
Name
VUL
VUL
VUL
31 December
2010 (USD)
Mortgage Location
77,000,000
Ac badem Bursa Hospital
Ac badem Küçükyal
building
Ac badem Kozyata
warehouse
VUL
Ac badem Adana Hospital
24,000,000
VUL
Cumhuriyetköy Ac badem
1,350,000
VUL
VUL
Erkan Apt. miscelaneus
flats and apartment
buildings
VUL
Manolya Apt. No: 2-3
VUL
Loan Collateral – Türkiye Vak flar Bankas
Ac badem Kayseri Hospital
12,000,000
2,000,000
32,000,000
1,820,000
1,695,000
13,000,000
164,865,000
11
Equity
Paid in capital
As at 30 June 2011 paid-in capital of the Group is TL 100,000,000 (31 December 2010: TL 100,000,000),
made up of 100.000.000 shares with a par value of TL 1,00 each. As at 30 June 2011 and 31 December
2010, the composition of shareholders and their respective percentage of ownership are summarized as
follows:
Shareholder’s name
Mehmet Ali Ayd nlar
Almond Holding A. .
Almond Holding A. .- (publicly
traded)
Arma an Özel
Yunus Ergüz
Osman Morgül
Other individuals
Other publicly traded shares
30 June 2011
Share (%)
Amount
0.40
0.00
57.90
31 December 2010
Share (%)
Amount
395,826
1
57,897,946
0.40
0.00
57.90
395,826
1
57,897,946
34.07 34,071,176
1.00
998,314
1.00
1,000,000
0.00
1
3,522,958
3.52
2.11
2,113,778
100.00 100,000,000
34.07
1.00
1.00
0.00
3.52
2.11
100.00
34,071,176
998,314
1,000,000
1
3,522,958
2,113,778
100,000,0000
Mehmet Ali Ayd nlar and Hatice Seher Ayd nlar are also the 50% shareholders of Almond Holding,
indirectly. Abraaj Capital Limited is the 50% shareholders of Almond Holding indirectly. Furthermore,
Mehmet Ali Ayd nlar is executive director and the chairman of the board of directors of Almond Holding.
30
11
Equity (continued)
30 June 2011
Series
Type
Registered/Bearer
3. 4. 5
3. 4. 5
A
B
Registered
(Almond Holding A. .)
Bearer
Nominal Value (TL)
4,249,973
95,750,027
Privilege
Right to nominate
boardmembers, right to vote
31 December 2010
Series
Type
3. 4. 5
3. 4. 5
A
B
Registered/Bearer
Registered
(Almond Holding A. .)
Bearer
Nominal Value (TL)
4,249,973
95,750,027
Privilege
Right to nominate
boardmembers, right to vote
The favorable vote of Group A shares is required in order to decide an increase in share capital. Group A
shareholder has the right to nominate four out of five board members, and Group B shareholders has the
right to nominate one out of five board members. Each Group A share has 100 votes against one vote of
Group B shareholders.
The registered share capital of the Company is TL 250,000,000. Capital Market Board approved the
registered share capital system with the permission dated 9 August 2001 and numbered 37/1033.
Pledges on shares:
According to the Share Pledge Agreements which is signed on10 January 2008 and additional
amendments of the agreement which are signed on 6 February 2008 and 6 August 2008, Almond Holding
Inc. has 1st and 2nd degree of pledge shares on the parent Company’s capital on behalf of T. Garanti
Bankas as the guarantee of the loan, that used by the Group amounted as USD 200,000,000 and taken
from the T. Garanti Bank,
Restricted reserves
Legal reserves:
According to the Turkish Commercial Code (“TCC”), legal reserves are comprised first and legal
reserves. The first legal reserves are generated by annual appropriations amounting to 5 percent of income
disclosed in the Company’s statutory accounts until it reaches 20 percent of paid-in share capital. If the
dividend distribution is made in accordance with Communiqué XI-29, a further 1/10 of dividend
distributions, in excess of 5 percent of paid-in capital is to be appropriated to increase second legal
reserves. If the dividend distribution is made in accordance with statutory records, a further 1/11 of
dividend distributions, in excess of 5 percent of paid-in capitals are to be appropriated to increase second
legal reserves. Under the TCC, the legal reserves can be used only to offset losses and are not available
for any other usage unless they exceed 50 percent of paid-in capital. At 30 June 2011, legal reserves of
the Company amount to TL 7,079,766 (31 December 2010: TL 7,079,766).
31
11
Equity (continued)
Dividend
Based on the annual general assembly held on 29 July 2011 it was decided not to distribute any dividend
from the net profit of the year 2010. That amount is decided to be transferred to retained earnings.
Retained Earnings / (Accumulated Losses)
30 June 2011
49,302,822
(31,630,259)
17,672,563
Extraordinary Reserves
Prior years’ profit / (loss)
31 December 2010
49,302,324
(42,125,717)
7,176,607
In accordance with IAS 29, while calculating the influation correction, it is essential to take into account
the amount emerged after offsetting the financial statements and recorded in the ‘ retained losses’ as a
deductable discount factor while computing the profit distribution after influation correction of financial
statements. Furthermore, the amount which is traced under ‘retained losses’, if exists ‘net profit’ and the
remaining loss amount can be set off as extraordinary reserves, legal reserves and shareholders’ equity
inflation adjustment respectively.
The movement of retained earnings / (accumulated losses) is as follows:
30 June 2011
7,176,607
(957,443)
11,453,399
17,672,563
Beginning balance
Change in non-controlling interests
Transfer of period profit to retained earnings
31 December 2010
(4,411,276)
(5,511,742)
17,099,625
7,176,607
Non-Controlling Interests
For the six-months period ended 30 June 2011, the movement in non-controlling interest is as follows:
Share Capital
Legal reserves
Extraordinary reserves
Inflation restatement
difference
Retained Earnings /
(Accumulated Losses)
Net profit/(loss) for the
period
Transfer
----
Acquisition
of a new
subsidiary
(548,456)
(3,500)
--
30 June
2011
1,984,732
151,729
11,839
--
--
--
2,130,837
123,334
(875)
660,670
26,532
809,661
660,670
5,613,910
302,818
303,130
(660,670)
--
31,405
(494,019)
334,223
5,423,021
31 December
2010
2,532,001
155,229
11,839
Change in
minority
1,187
---
2,130,837
32
11
Equity (continued)
For the year ended 31 December 2010, the movement in non-controlling interest is as follows:
Share Capital
Premium in access of par
Legal reserves
Extraordinary reserves
Inflation restatement
difference
Retained Earnings /
(Accumulated Losses)
Net profit/(loss) for the
period
12
Transfer
-----
Acquisition
of a new
subsidiary
798,507
-5,000
--
31
December
2010
2,532,001
-155,229
11,839
(1,437)
--
--
2,130,837
(977,974)
3,177,429
(1,909,800)
(166,321)
123,334
(1,909,800)
9,032,217
533,883
(4,182,280)
1,909,800
--
126,787
763,973
660,670
5,613,910
31 December
2009
7,970,444
1,660,868
143,713
12,692
Change in
minority
(6,236,950)
(1,660,868)
6,516
(853)
2,132,274
Financial income
For the six and three-month periods ended 30 June, financial income is as follows:
Foreign exchange gain
Finance income related to credit
purchases
Income accrual related to forward
transaction
Interest income on time deposit
Income accrual related to swap
transaction
Other financial income
1 January - 30
June 2011
3,525,806
1 April - 30
June 2011
600,501
1 January - 30
June 2010
8,623,155
1 April- 30
June 2010
3,819,350
3,171,580
959,822
2,711,060
1,017,275
1,573,966
1,073,944
460,300
1,573,966
1,073,944
332,678
688,617
-114,144
688,617
-(31,943)
-3,827
9,809,423
-2,249
4,543,160
246,452
5,592
12,389,020
246,452
2,861
5,742,612
33
13
Financial expenses
For the six and three- month periods ended 30 June, financial expenses are as follows:
Foreign exchange loss
Interest expense on bank loans
Finance lease interest expense
Credit card comission
Expense accrual related to swap
transaction
Interest expense on credit sales
Expense accrual related to
forward transaction
Letter of credit and other bank
commission expenses
Other
14
1 January - 30
June 2011
38,459,783
9,314,977
3,687,759
2,653,612
1 April - 30
June 2011
31,725,709
8,360,392
2,829,908
1,339,423
1 January -30
June 2009
20,661,233
8,977,815
2,937,658
2,810,354
1 April- 30
June 2010
16,027,797
3,224,822
2,225,077
1,427,290
1,131,588
910,767
614,243
(518,010)
-1,373,697
761,604
296,011
--
(400,893)
--
(603,369)
358,844
100,674
56,618,004
209,459
61,491
44,221,722
314,372
78,471
37,153,600
154,019
472,005
23,985,256
Related parties
As at 30 June 2011 and 31 December 2010, short-term trade receivables from related parties as follow:
30 June 2011
8,790,263
(59,176)
918,599
9,649,686
Trade receivables
Finance expense accrual
Other non-trade receivables
31 December 2010
8,724,460
(68,717)
36,867
8,692,610
As at 30 June 2011 and 31 December 2010, short-term trade payables from related parties as follow:
30 June 2011
14,525,965
(57,326)
311,475
14,780,114
Trade payables
Financing income accrual
Other non-trade payables
34
31 December 2010
9,658,830
(86,937)
503,601
10,075,494
14
Related parties (continued)
Due from related parties
30 June 2011
Trade
Other
Receivable
Receivable
Shareholders
Mehmet Ali Ayd nlar
Group Companies
Ac badem Sigorta
Ac badem Di
Ac badem Proje
Ac badem Holding
Akademia
Çukurova Bilim
Ayd nlar Sa k Hizmetleri
A plus
Telepati Tan m
Ac badem Üniversitesi
Other
31 December 2010
Trade
Other
Receivable
Receivable
--
149
--
149
8,521,749
131,088
64,751
52,515
6,773
6,501
3,905
1,494
--1,487
8,790,263
877,140
2,913
-15
517
1,033
-34,025
2,315
-492
918,599
7,527,102
185,569
-24,988
17,342
939,510
24,637
--5,312
-8,724,460
735
13,068
1,668
-882
17,692
2,141
-532
36,867
Due to related parties
30 June 2011
Trade
Other
Receivable
Receivable
Shareholders
Mehmet Ali Ayd nlar
Said Haifawi
Other
Group Companies
Aplus
Ac badem Proje
Ac badem Sigorta
Ac badem Di
Telepati Tan m
Ac badem Holding
Akademia
Ac badem Vakf
31 December 2010
Trade
Other
Receivable
Receivable
-----
16,302
1,630
17,513
197,429
-----
15,461
1,546
36,070
1,755
8,312,586
2,931,585
2,868,240
303,024
74,917
33,253
2,360
--14,525,965
-54,546
529
20,165
-438
-1,958
965
311,475
6,454,852
1,460,349
278,768
440,519
912,545
111,737
-60
-9,658,830
-38,277
332,536
77,503
-437
--16
503,601
35
14
Related party transactions (Sales)
For the six and three-month periods ended 30 June, sales to related parties are as follows:
1 January-30 June 2011
Service
Other
32,571,263
252,525
18,881
2,346,921
16,279
65,100
348
18,712
-132,501
-32,400
-3,240
-3,240
-1,800
32,606,771
2,856,439
2,856,439
Ac badem Sigorta
Aplus
Ac badem Proje
Ac badem Di
Ac badem Holding
Telepati Tan m Hizmetleri
Ac badem Yat m
Almond Holding
Çukurova Bilim
1 April-30 June 2011
Service
Other
16,287,998
124,762
9,720
1,176,597
5,221
31,935
307
9,356
-66,694
-900
16,303,246
1,410,244
Ac badem Sigorta
Aplus
Ac badem Proje
Ac badem Di
Ac badem Holding
Çukurova Bilim
Sevice
26,681,813
99,228
39,262
24,157
2,739
128
----26,847,327
Ac badem Sigorta
Ac badem Holding
Aplus
Ac badem Di
Ac badem Proje
Akademia
Telepati Tan m
Ac badem Yat m
Almond Holding
Çukurova Bilim
36
Other
248,102
-281,175
-103,459
-30,000
2,904
2,904
1,800
670,344
14
Related party transactions (Sales)
Sevice
14,085,423
39,443
31,096
10,491
2,648
128
--14,169,229
Ac badem Sigorta
Ac badem Holding
Aplus
Ac badem Di
Ac badem Proje
Akademia
Telepati Tan m
Çukurova Bilim
Other
124,475
-148,966
-54,689
-15,000
900
344,030
Related party transactions (Purchases)
For the six and three-month periods ended 30 June, purchases from related parties are as follows:
Aplus
Ac badem Sigorta
Ac badem Proje
Telepati Tan m
Ac badem Di
Akademia
Service
21,699,753
10,180,511
9,496,895
3,000,000
599,175
244,527
2,500
45,223,361
Fixed Asset
Other
-117,785
-36,011
654,988
---------654,988
153,796
Aplus
Ac badem Proje
Ac badem Sigorta
Ac badem Di
Telepati Tan m
Service
11,818,214
5,909,694
4,098,024
3,000,000
143,807
96,272
25,066,011
Fixed Asset
Other
-117,785
654,988
--36,011
------654,988
153,796
37
14
Related party transactions (Purchases)
Aplus
Ac badem Proje
Ac badem Sigorta
Telepati Tan m
Ac badem Di
Almond Holding
Ac badem Holding
Aplus
Ac badem Proje
Telepati Tan m
Ac badem Sigorta
Ac badem Di
Almond Holding
Ac badem Holding
Fixed Asset
Service
16,113,880
-13,535,832
5,405
5,343,651
-2,954,665
-385,315
-284,080
-1,379
---38,618,802
5,405
Other
-------61,676
61,676
Service
Fixed Asset
9,094,238
-6,488,484
5,405
1,525,820
-400,020
-385,315
-113,565
-1,379
---18,008,821
5,405
Other
-------61,676
61,676
Guarantees and similar obligations given on behalf of related parties
As at 30 June 2011, the details of the guarantees given as security for the credits used by the subsidiaries
which are included in consolidation and by the other related parties are shown in Note 10.
As at 30 June 2011, Ac badem Polyclinics, consolidated subsidary has given guarantees on behalf of
Ac badem Holding A. , one of the other related parties, regarding to cash credit line up to TL 2,850,000
from Bankas , on behalf of International Hospital regarding to cash credit line up to TL 4,089,858 and
cash credit line up to USD 2,000,000 from Bankas and on behalf of Ac badem Kayseri to cash credit
line up to TL 3,024,000 from Vak flar Bankas , which are available for use in the future.
As at 30 June 2011, Mehmet Ali Ayd nlar, shareholder of the Company and Ac badem Polyclinics,
consolidated subsidiary gave guarantees on behalf of the Company regarding to the cash credit line up to
TL 1,760,181 and non-cash credit line up to USD 7,887,794 (Letter of credit) from Bankas which are
available for use in the future.
38
14
Guarantees and similar obligations given on behalf of related parties (continued)
Date
Bank Name
Currency
Type
Original
Amount
15.03.2008
28.04.2008
18.09.2008
22.10.2009
14.07.2009
11.11.2009
18.01.2005
04.08.2005
26.12.2006
10.12.2010
27.01.2011
09.10.2008
21.01.2009
03.06.2009
14.07.2009
02.06.2010
25.11.2010
08.02.2010
10.06.2011
27.06.2011
31.05.2005
15.10.2007
04.11.2004
05.10.2006
09.03.2011
20.09.2006
06.09.2007
05.10.2007
12.02.2008
14.04.2006
31.08.2009
22.10.2009
27.01.2005
28.12.2005
12.07.2011
Garanti Bankas
Garanti Bankas
Garanti Bankas
Tekstilbank
Bankas
Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Bankas
Garanti Bankas
Garanti Bankas
Tekstilbank
Garanti Bankas
Garanti Bankas
Bankas
Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
Garanti Bankas
USD
USD
USD
---USD
USD
---------------------USD
-USD
USD
---
200,000
421,000
5,000,000
---5,000
1,000,000
---------------------6,000,000
-2,000,000
50,000
---
Guarantees Given on Behalf of
Ac badem Kayseri
Ac badem Kayseri
Ac badem Kayseri
Ac badem Kayseri
Ac badem Kayseri
Ac badem Kayseri
Ac badem Labmed
Ac badem Labmed
Ac badem Labmed
Ac badem Labmed
Ac badem Labmed
Ac badem Mobil
Ac badem Mobil
Ac badem Mobil
Ac badem Mobil
Ac badem Mobil
Ac badem Mobil
Ac badem Mobil
Ac badem Mobil
Ac badem Mobil
Ac badem Poliklinikleri
Aplus
Aplus
Aplus
Aplus
Internat onal Hosp tal
Ac badem Proje
Ac badem Proje
Yeni Sa k
TL Amount
326,040
686,314
8,151,000
10,000,000
3,024,000
3,024,000
8,151
1,630,200
995,000
850,000
350,000
70,000
215,000
15,000
400,000
300,000
500,000
5,000,000
300,000
750,000
2,000,000
869,250
950,000
500,000
710,000
150,000
420,000
200,000
500,000
9,781,200
6,100,000
3,260,400
81,510
200,000
1,620,000
63,937,065
Key management compensation
For the six and three month- periods ended 30 June 2011, sum of the compensation to key management is
TL 3,967,566 (30 June 2010: TL 3,475,565) and TL 1,881,339 ( for the last three months TL 1,823,279).
39
15
Earnings per share
The calculation of basic earnings per share was calculated by dividing the the income attributable to
ordinary shareholders in consolidated statement of comprehensive income of this report to the weighted
average number of ordinary shares outstanding:.
Net income/ (loss)for the period
Weighted average number of
shares
1 January – 30
June 2011
12,392,400
1 April – 30
June 2011
(13,124,264)
1 January –
30 June 2010
12,946,901
1 April – 30
June 2010
(4,760,912)
100,000,000
100,000,000
100,000,000
100,000,000
123.92
(131.24)
129.47
(47.61)
Earnings per 1.000 shares
16
Nature and level of risks arising from financial instruments
Financial Risk Management Policies
The main financial instruments of the Group are bank loans, cash and short term bank deposit. The main
reason for the usage of these financial instruments is providing funds for the Group’s activities. The
Group also has trade receivables and trade payables that directly occur during the main activities.
The financial risks are currency risk, interest risk, credit risk and liquidity risk. The Group management
manages these risks as explained below:
Capital Risk Management
The primary objective of the Group is ensuring the continuity of operations while increasing profitability
by using the balance between liabilities and equity in a most effective way. The capital structure of the
Group is consists of the items which include the liabilities, cash and cash equivalents, paid-in capital,
capital reserves and profit reserves.
The cost of capital and the risks associated with each share capital component are evaluated by the key
management of the Group. During these evaluations, if the acceptance of Board of Directors is needed,
the key management represents the evaluation to the Board of Directors for their evaluation.
The general policy and procedure of the Group is not different from the previous periods.
Credit Risk
Credit risk is the risk of handling a financial loss which is caused by counter party by not fulfilling the
obligations regarding to a financial instrument.
Having the financial instruments gives the risk of not fulfilling the requirements of the agreement by the
other parties. The collection risk of the Group is mainly caused from its trade receivables. Trade
receivables are evaluated by management according to the Group’s procedure and policies and are carried
in the balance sheet as the net of impairment provision.
40
16
Nature and level of risks arising from financial instruments (continued)
Credit risk (continued)
As at 30 June 2011 and 31 December 2010, credit risk details are as below:
Receivables
Trade receivables
Related
Other
party
party
30 June 2011
Maximum exposure to credit risk at the
reporting date (A+B+C+D+E)
- Secured portion of maximum credit risk with
collateral
A. Carrying amount of financial assets that are
not overdue and not impaired
B. Carrying amount of financial assets whose
terms were renegotiated, otherwise are
overdue and impaired
C. Carrying amount of assets that are overdue
but not impaired
8,731,087 93,130,178
Other receivables
Related
Other
party
party
Bank
deposits
Other
918,599
1,218,661
27,001,923
--
--
--
--
--
--
8,491,711 85,043,659
918,599
1,218,661
27,001,923
--
--
--
--
--
--
--
239,376
8,086,519
--
--
--
--
- Carrying amount secured with collateral
--
--
--
--
--
--
D. Carrying amount of assets that are impaired
--
--
--
--
--
--
- Overdue (gross carrying amount)
--
7,429,507
--
--
--
--
- Impairment (-)
- Carrying amount secured with
collateral
-- (7,429,507)
--
--
--
--
--
--
--
--
--
--
- Not overdue (gross carrying amount
--
--
--
--
--
--
- Impairment (-)
collateral
E. Factors that include off balance sheet credit
risks
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
41
16
Credit risk (continued)
Receivables
Trade receivables
Related
Other
party
party
31 December 2010
Maximum exposure to credit risk at the
reporting date (A+B+C+D+E)
- Secured portion of maximum credit risk with
collateral
A. Carrying amount of financial assets that are
not overdue and not impaired
B. Carrying amount of financial assets whose
terms were renegotiated, otherwise are
overdue and impaired
8,655,743 69,570,714
Other receivables
Related
Other
party
party
Bank
deposits
Other
36,867
455,601
23,235,328
--
--
--
--
--
--
8,655,743 60,015,507
36,867
455,601
23,235,328
--
--
--
--
--
--
--
--
C. Carrying amount of assets that are overdue
but not impaired
--
9,555,207
--
--
--
--
- Carrying amount secured with collateral
--
--
--
--
--
--
D. Carrying amount of assets that are impaired
--
--
--
--
--
--
- Overdue (gross carrying amount)
--
5,473,602
--
--
--
--
- Impairment (-)
collateral
-- (5,473,602)
--
--
--
--
--
--
- Not overdue (gross carrying amount
--
--
--
--
--
--
- Impairment (-)
collateral
E. Factors that include off balance sheet credit
risks
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Liquidity Risk
The Group manages its liquidity needs by regularly planning its cash flows or by maintaining sufficient
funds and borrowing sources by matching the maturities of liabilities and assets.
Liquidity risk is probability of not fullfill fund obligations of the Group. Prudent liquidity risk
management implies maintaining sufficient cash, securing availability of funding through an adequate
amount of committed credit facilities and the ability to close out market positions. The Group manages its
present and future funding risk by maintaining a balance between continuity and availability of funding
through the use of bank loans and other borrowing sources from high quality lenders.
42
16
Liquidity risk (continued)
The tables listed below are representing the maturities of non-derivative financial liabilities.
As at 30 June 2011, maturities of non-derivative financial liabilities are as follows:
Contractual maturities
Non-derivative financial liabilities
Expected maturities
Trade payables
Other payables
Carrying
value
364,497,617
108,462,758
Carrying
value
105,005,749
78,872,214
Total cash
outflow per
agreement
(=I+II+III+IV)
423,989,351
127,284,222
Expected total
cash out flow
(=I+II+III+IV)
105,005,749
78,872,214
Less than 3
months(I)
31,545,412
4,242,129
Less than 3
months (I)
93,545,842
69,091,014
43
Between 3-12
months (II)
61,894,492
20,303,867
Between 3-12
months (II)
11,459,907
9,781,200
Between 1-5
years (III)
235,049,862
81,556,014
Between 1-5
years (III)
---
Over 5 years
(IV)
On
demand
95,499,585
21,182,212
Over 5 years
(IV)
---
---
On
demand
---
16
Liquidity risk (continued)
As at 31 December 2010, maturities of non-derivative financial liabilities are as follows:
Contractual maturities
Expected maturities
Trade payables
Other payables
Carrying
value
373,920,898
97,810,592
Carrying
value
88,639,626
21,030,901
Total cash
outflow per
agreement
(=I+II+III+IV)
443,382,126
129,403,083
Expected total
cash out flow
(=I+II+III+IV)
89,327,745
21,030,901
Less than 3
months (I)
46,029,958
2,934,928
Less than 3
months (I)
70,679,528
21,030,901
44
Between 3-12
months (II)
47,167,258
18,828,820
Between 3-12
months (II)
11,922,326
--
Between 1-5
years (III)
238,740,015
94,671,662
Between 1-5
years (III)
6,725,891
--
Over 5 years
(IV)
On
demand
111,444,895
12,967,673
Over 5 years
(IV)
---
---
On
demand
---
16
Market risk
The Group is exposed to market risk arising from changes in interest rates, foreign currency or in the
fair value of financial assets and other financial contracts that may affect the Group adversely. The
major risks for the Group are currency risk and interest rate risk, which result from operating activities.
Foreign currency risk and related sensitivity analysis
Foreign exchange risk of Group mainly results from that the Group has liabilities denominated in USD
and Euro.
Additionally, the Group has foreign exchange risk resulting from the transactions it makes. These risks
are derived from purchases and sales and use of credit in foreign currency which is different from the
Group’s functional currency.
As at 30 June 2011 and 31 December 2010, the net foreign currency position of the Group is TL
441,195,200 (short) and TL 451,099,396 (short) position, respectively
30 June 2011
Foreign currency denominated assets
31 December 2010
2,977,991
3,642,949
Foreign currency denominated liabilities
(524,052,991)
(521,075,000)
(471,122,122)
(467,479,173)
Hedged foreign currency denominated liabilities
Net foreign currency position- (short)
79,879,800
(441,195,200)
16,379,777
(451,099,396)
45
16
Market risk (continued)
FOREIGN CURRENCY POSITION
30 June 2011
TL Equivalent
(Functional
currency)
USD
Euro
JPY
GBP
CHF
Other
--
--
--
--
--
--
--
2,977,991
---
466,629
---
939,646
--
----
3,782
---
----
----
2,977,991
-----2,977,991
466,629
-----466,629
939,646
-----939,646
--------
3,782
-----3,782
--------
--------
10. Trade payables
11,922,418
2,639,597
3,242,772
--
547
--
--
11. Financial liabilities
71,775,005
33,005,704
4,296,576
--
--
4,028,640
--
12a. Other monetary liabilities
11,411,400
7,000,000
--
--
--
--
--
CONSOLIDATED
1. Trade receivables
2a.Monetary financial assets (include cash and bank
deposit)
2b. Non-monetary financial assets
3. Other
4. Current Assets (1+2+3)
6a. Monetary financial assets
7. Other
8. Non Current Assets (5+6+7)
9. Total Assets (4+8)
12b. Other non-monetary liabilities
13. Current Liabilities (10+11+12)
14. Trade payables
--
--
--
--
--
--
--
95,108,823
42,645,301
7,539,348
--
547
4,028,640
--
9,308,021
3,376,000
1,619,473
--
--
--
--
375,230,720
179,876,726
12,144,820
--
-- 27,349,260
--
44,405,427
27,239,251
--
--
--
--
--
--
--
--
--
--
--
--
46
16
17. Non-Current Liabilities (14+15+16)
428,944,168
210,491,977
13,764,294
--
--
27,349,260
--
18. Total Liabilities (13+17)
524,052,991
253,137,278
21,303,641
--
547
31,377,900
--
79,879,800
49,000,000
--
--
--
--
--
79,879,800
49,000,000
--
--
--
--
--
--
--
--
--
--
--
--
20. Net foreign currency denominated assets
/(liabilities) position (9-18+19)
(441,195,200) (203,670,649)
(20,363,996)
--
3,235 (31,377,900)
--
21. Monetary accounts net foreign currency
denominated assets /(liabilities) position
(=1+2a+5+6a-10-11-12a-14-15-16a)
(521,075,000) (252,670,649)
(20,363,996)
--
3,235 (31,377,900)
--
19. Off balance sheet foreign currency
denominated derivatives
net assets/liabilities position (19a-19b)
19a. Off balance sheet foreign currency
denominated derivatives assets amount
19b. Off balance sheet foreign currency
denominated derivatives liabilities amount
--
--
--
--
--
--
--
--
--
--
--
--
--
--
liabilities
--
--
--
--
--
--
--
25. Export
--
--
--
--
--
--
--
26. Import
--
--
--
--
--
--
--
22. Fair value of hedging financial instruments
23. Hedged foreign currency denominated assets
24. Hedged foreign currency denominated
47
16
FOREIGN CURRENCY POSITION
31 December 2010
CONSOLIDATED
2a.Monetary financial assets (include cash and bank deposit)
3. Other
4. Current Assets (1+2+3)
TL Equivalent
(Functional currency)
USD
Euro
JPY
GBP
CHF
Other
287
186
--
2,904,708
774,977
829,344
--
2,673
487
--
--
--
--
--
--
--
--
1,218
--
829,344
--
2,673
1,705
--
2,002
--
2,906,997
775,163
--
--
--
--
--
--
737,954
--
360,136
--
--
--
--
--
--
--
--
--
--
--
7. Other
--
--
--
--
--
--
--
6a. Monetary financial assets
8. Non Current Assets (5+6+7)
9. Total Assets (4+8)
737,954
--
360,136
--
--
--
--
3,644,951
775,163
1,189,480
--
2,673
1,705
--
10. Trade payables
10,452,615
3,077,757
2,778,340
--
547
--
--
55,830,853
25,546,360
4,144,047
--
--
4,772,243
--
18,552,000
12,000,000
--
--
--
--
--
--
--
--
--
--
--
--
84,835,468
40,624,117
6,922,387
--
547
4,772,243
--
6,310,079
3,500,000
438,767
--
--
--
--
379,928,405
195,992,096
14,072,921
--
--
29,254,048
--
13. Current Liabilities (10+11+12)
14. Trade payables
48
16
--
--
--
--
--
--
--
--
--
--
--
--
--
--
17. Long term liabilities (14+15+16)
386,238,484
199,492,096
14,511,688
--
--
29,254,048
--
18. Total Liabilities (13+17)
471,073,952
240,116,213
21,434,075
--
547
34,026,291
--
16,379,777
10,594,940
--
--
--
--
--
152,736,977
98,794,940
--
--
--
--
--
136,357,200
88,200,000
--
--
--
--
--
20. Net foreign currency denominated assets
/(liabilities) position (9-18+19)
(451,049,224) (228,746,110)
(20,244,595)
--
2,126
(34,024,586)
--
21. Monetary accounts net foreign currency
denominated assets /(liabilities) position (=1+2a+5+6a10-11-12a-14-15-16a)
(467,431,003) (239,341,050)
(20,244,596)
--
2,126
(34,025,804)
--
19. Off balance sheet foreign currency
denominated derivatives
net assets/liabilities position (19a-19b)
19a. Off balance sheet foreign currency
denominated derivatives assets amount
19b. Off balance sheet foreign currency
denominated derivatives liabilities amount
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Liabilities
--
--
--
--
--
--
--
25. Export
--
--
--
--
--
--
--
26. Import
--
--
--
--
--
--
--
22. Fair value of hedging financial instruments
23. Hedged foreign currency denominated assets
24. Hedged foreign currency denominated
49
16
The foreign currency risk of the Group is related to the bank loans borrowed and financial lease obligations.
The Group has a pricing policy that changes according to the deviations in the long term borrowings and
volatility of foreign exchange rates for minimizing this risk. Furthermore, the Company economically hedges
18 months portion of principles and the related interest payments related to the long term bank loans used
from Garanti Bankas ”. As a result of this forward transaction Group has the purchase right of USD
18,000,000 in total at the maturity dates in July 2011 at a rate of 1.6946, USD 18,500,000 in total at the
maturity dates in January 2012 at a rate of 1.6710 and USD 12,500,000 in total at the maturity dates in July
2012 at a rate of 1.6125.
The changes in foreign currency position of the Group as of the balance sheet date are as follows:
Foreign currency sensitivity analysis
30 June 2011
Profit/Loss
Equity
Increase of
Decrease of Increase of
foreign
foreign
foreign
currency
currency
currency
Change of USD exchange rate against TL by 10%:
Decrease of
foreign
currency
1- USD denominated net assets/liabilities
(33,202,389) 33,202,389
2- Hedged amount against USD Dollar risk
(-)
--3- Net effect of USD (1+2)
(33,202,389) 33,202,389
Change of Euro exchange rate against TL by 10%:
--
--
---
---
4- Euro denominated net assets/liabilities
(4,783,910)
4,783,910
5- Hedged amount against Euro
risk (-)
--6- Net effect of Euro (4+5)
(4,783,910)
4,783,910
Change of other currencies against TL by 10%:
--
--
---
---
7- Other foreign currency denominated net
assets/liabilities
8- Hedged amount against other foreign risk
(-)
9- Net effect of other foreign currency
(7+8)
TOTAL (3+6+9)
(6,133,221)
6,133,221
--
--
--
--
--
--
(6,133,221)
(44,119,520)
6,133,221
44,119,520
---
---
50
16
Market risk(continued)
Foreign currency sensitivity table
31 December 2010
Profit/Loss
Increase of
foreign
currency
Equity
Decrease of
foreign
currency
Increase of
foreign
currency
Decrease of
foreign
currency
Change of USD exchange rate against TL by 10%:
1- USD denominated net assets/liabilities
2- Hedged amount against USD Dollar risk
(-)
3- Net effect of USD (1+2)
(37,002,126)
37,002,126
--
--
-(37,002,126)
-37,002,126
---
---
Change of Euro exchange rate against TL by 10%:
4- Euro denominated net assets/liabilities
5- Hedged amount against Euro
risk (-)
6- Net effect of Euro (4+5)
(4,148,320)
4,148,320
--
--
(4,148,320)
-4,148,320
---
---
5,592,654
--
--
--
--
--
5,592,654
46,742,900
---
---
Change of other currencies against TL by 10%:
7- Other foreign currency denominated net
assets/liabilities
8- Hedged amount against other foreign risk
(-)
9- Net effect of other foreign currency
(7+8)
TOTAL (3+6+9)
(5,592,454)
(5,592,454)
(46,742,900)
51
16
Interest rate risk
The Group is exposed to interest rate risk arising from interest rate sensitive financial liabilities. As part of
its fund management policy, the interest risk of interest bearing assets is calculated by performing
sensitivity analysis. The sensitivity of interest sensitive assets in response to changes in market interest
rates is computed based on the average maturities and average interest sensitive assets; the interest rate risk
arising from the securities portfolio held as part of fund management function is monitored within
expectations of market rates by closely following the financial markets.
Additionally, as at 30 June 2011, the Company made swap transactions which are hedging USD 85,500,000
portion of outstanding USD 190,000,000 credit used from Garanti Bankas from the risk of interest rate
changes. The interest rate position table is as follows:
Interest rate position
Fixed interest bearing financial instruments
Financial assets Time deposits
Variable interest bearing financial instruments
Financial assets
30 June 2011
31 December 2010
23,956,068
136,947,698
18,249,666
140,027,859
-336,012,677
-331,703,631
As at 30 June 2011, the 1% of increase in the interest rates will affect the net profit, which is presented in
the condensed consolidated comprehensive income statement, to decrease TL 1,547,804 after deduction of
the effect of the swap of interest (31 December 2010: TL 2,181,351). 1% of decrease in the interest rates
will cause TL 604,721 increase of net profit which is presented in condansed consolidated comprehensive
income statement. ( 31 December 2010: TL 1,610,897)
17
Financial Instruments Fair Value Disclosures
As of 30 June 2011 and 31 December 2010 the fair values of financials assets and liabilities are as follows:
Note
Financial Assets
Cash and cash equivalents
Other trade receivables
Trade receivables from related
parties
Due from related parties
Other receivables
Financial investments
14
14
30 June 2011
Carrying
Market
Value
Value
31 December 2010
Carriying
Market
Value
Value
32,455,333
93,130,718
32,455,333
93,130,718
25,985,237
69,570,714
25,985,237
69,570,714
8,731,087
918,599
1,118,851
1,573,966
137,928,554
8,731,087
918,599
1,118,851
1,573,966
137,928,554
8,655,743
36,867
455,601
-104,704,162
8,655,743
36,867
455,601
-104,704,162
52
17
Financial Instruments Fair Value Disclosures (continued)
Financial Liabilities
Financial Liabilities
Other trade payables
Trade payables to related parties
Other payables to related parties
Other payables
Other Liabililities
Other financial liabilities
Note
8
14
14
30 June 2011
Registered
Market
Value
Value
472,960,375
472,960,375
79,934,189
79,934,189
14,468,639
14,468,639
311,475
311,475
33,909,383
33,909,383
12,261,105
12,261,105
5,430,778
5,430,778
619,275,944
619,275,944
31 December 2010
Registered
Market
Value
Value
471,731,490
471,731,490
79,067,733
79,067,733
9,571,893
9,571,893
503,601
503,601
18,590,729
18,590,729
12,925,746
12,925,746
4,299,190
4,299,190
596,690,382
596,690,382
Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable,
willing parties in an arm’s length transaction on the measurement date.
When available, the Group measures the fair value of an instrument using quoted prices in an active market
for that instrument. A market is regarded as active if quoted prices are readily and regularly available and
represent actual and regularly occurring market transactions on an arm’s length basis.
The carrying value of cash, banks and other monetary assets, other payables, other trade payables, and other
liabilities are accepted as fair value due to the their short term nature. Trade receivables and the provision
amouts for the unreceived parts of the trade receivables have been also accepted as fair value.
Due to the adopting the changes in market interest rates, the book value of Group’s financial liabilities with
variable interest rate is equal to the fair value carrying amount of the obligations.
Classification of the measurement of fair value:
The valuation method for the financial instruments carried at fair value are given in the table below.
Valuation methods according to the levels defined as follows:
Level 1: The quoted (or unadjusted) prices for the identical assets or liabilities in the active markets.
Level 2: The financial assets or liabilities other than quoted prices included in level 1 and the related data
which can be observed whether directly (in prices) or indirectly (derived from prices)
Level 3: The data related to assets or liabilities which are not based on observable market data (data is not
observable in market)
30 June 2011
Trading derivative financial assets
Total assets valued at fair value
Trading derivative financial liabilities
Total liabilities valued at fair value
31 December 2010
Financial investments
Level 1
---
Level 2
1,573,966
1,573,966
Level 3
---
---
(5,430,778)
(5,430,778)
(5.430.778)
Level 2
(4,299,190)
(4,299,190)
---
Level 1
---
53
Level 3
---
18
Subsequent events
On the annual general assembly of the shareholders’ meeting which is held on July 29, 2011, based on the
current investments being done and the Group’s dividend payment policy, it is decided not to pay any
dividend to its shareholders by taking into consideration continuning investment and previously declared
dividend policy. In this respect, it has been decided to transfer profit for the year to retained earnings after
allocation to legal reserves. Additionally, it has been resolved that the Group’s dividend policy for the next
three year starting from 2011 is to distiribute cash dividends by taking Group’s profitability and growth
intention into consideration.
On the same meeting referred above, it has been decided to approve merger treaty which stating that the
Company will merge its subsidiary namely Ac badem kayseri Hospital by acquiring all of its subsidiaries’
assets and liabilities, rights and duties in accordance with 146th, 151st and 451st articles of Turkish Commerce
Code, 19th and 20th articles of Corporate Tax Law and Serial 1 No:31 and No:41 Decrees of Capital Markets
Board.
In the extraordinary general assembly of shareholders’ meeting of International Hospital Health Investments
which is held on July 6, 2011, it has been decided to approve the merger treaty about unification by
completely transferring of the Company’s all rights and duties in accordance with 18th and following articles
of Corporate Tax Law and 451st and following articles of Turkish Commerce Code, and the balance sheet as
of 31 March 2011 which is based on unification and they have decided unification of company by
transferring all assets and liabilities to International Hospital Istanbul in accordance with related rules of
Turkish Commerce Code and Corporate Tax Law.
19
Other matters that significantly affect the financial statements or make the
financial statements clear, interpretable, and understandable
The Law numbered 6111 “Concerning the Restructuring of Certain Receivables, Social Security and the
Amendment of the General Health Law and Certain Other Laws and Decrees with the Force of Law” has
been put into effect following its promulgation in the Official Gazette on 25 February 2011. The Group
management has benefited and utilized the possibilities stated in the scope of the law within the application
period for some of its subsidiaries included in the consolidation with respect to the base increase of corporate
tax and VAT tax as well as the contentious issues. According to the law, no assessment will be made related
to the taxes and periods for which the tax bases will be increased, between the years of 2006 and 2009.
54

2011 / 06

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