January 31, 2018

Al Hammadi Company for Development and Investment announces the commercial run of AlHammadi Hospital Nuzha Branch in Riyadh

Following AlHammadi Company for Development and Investment announcement at Tadawul website on Sunday 14/06/1438H corresponding to 13/03/2017G regarding the commencement of Al Hammadi Hospital Nuzha Branch test run. The company announces receipt Ministry of Health approval on Wednesday 14/05/1439H corresponding to 31/01/2018G to commence the commercial run of the hospital.

Whereas, all required medical and construction systems tests were successfully completed, and all required medical and administrative staff have been provided.
Accordingly, the Company announces that AlHammadi Hospital Nuzha Branch shall start accepting patients on Tuesday 27/05/1439H corresponding to 13/02/2018G. It is worth noting that the Company will start operating 120 beds and will gradually increase the number of utilized beds.
The Management expects the financial impact of the operation of AlHammadi Hospital Nuzha Branch during the year 2018G to be as follows:
1. Increase in number of outpatient clinics from 138 clinic to 202 clinic.
2. Increase in beds capacity from 728 bed to 1378 bed.
3. Full financial impact shall start in Q1 2018.
4. Growth in total revenue by 10%.
5. Estimated negative EBITDA (operating losses before depreciation and amortization) amounting to SAR 18 million for Al Hammadi Hospital Nuzha Branch, with an expected breakeven in Q4 2019.
All developments on the Company financial results will be disclosed through the quarterly announcements.