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Structured Finance

Structured Finance. PFI Opportunities / Shares Update June 2007. PTCs (Proton Therapy Centers) new offering (EMEA) FinanceBuildOwnOperate long term contract (>25yr) proactive / no tender academic and operational uniqueness criteria Harvard/MGH/Ion Boston typical invest > 120 M€

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Structured Finance

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  1. Structured Finance PFI Opportunities / Shares Update June 2007

  2. PTCs (Proton Therapy Centers) new offering (EMEA) FinanceBuildOwnOperate long term contract (>25yr) proactive / no tender academic and operational uniqueness criteria Harvard/MGH/Ion Boston typical invest > 120 M€ typical annual cost >8 M€ University Hospitals currently public (Germany) FinanceBuildOwnOperate long term contract (25-30yr) proactive / no tender academic and operational uniqueness criteria JohnsHopkins / BaltimoreG typical invest >1 M€ typical annual cost > 100M€ Health Care PFI

  3. How to avoid Public Tender? • Public services would require EU tender under PPP structure conditions in most countries in EMEA • escape can be a „uniqueness criterium“ ,a service or solution that is so unique in structure that a public tender will not make any sense • another escape is the „proactive approach“ where a qualified investors/operators group offers a solution that has not been successful in tendering / is too big or too complex for tenders • success requires the full chain of decision makers involved and linked up positively (e.g. government/ academics/ insurance cos.) • simple investors approaches failed due to lack of academic credability • simple service provider (FM/construction/operation) failed due to missing uniqueness criteria (commodities)

  4. The Basic Concept • Inquire and identify reasons for previous failure or dissatisfaction • identify the structure and components to address the needs • create a proforma co including the various credible parties • introduce and lobby this solution through the various decision makers • identify the right time and tactics to bring this to market proactive • launch the solution

  5. #1 - PTC Concept • There are several suppliers for the cyclotrons (invest >80M€) on the market (IBA, Accel,Siemens,Hitachi), none is dominating, the demand is higher than their capacity; all supply technology but no operating experience (like a computer without software) • Harvard with their Massachusetts General Hospital (MGH) are the reference for many years of successful operation of such units and therefore own the operational know-how; • IonBoston Co. has secured this unique know-how for EMEA in a contract with Harvard • all respective public bodies(ministeries / academic hospitals) are very kean to get this know-how into their academic branch apart from the operational skills which will ensure a sustainable business • a public tender could not capture this scenario • the ministeries of finance have invited the group and will give this approach priority outside of a tender process

  6. Shares: Harvard 25% Alvares&Marsal 25% Winssinger 25% Dr.Kals 25% PTC Structure Ion Boston License SPV Harvard / MGH exclusivity Finance Partner MB Commercial Operator A&M Technical Operator JCI Academic Operator MGH PTC SPV Full Lease Contract 25 years University Hospital (Public)

  7. #2 - University Hospitals • There are several university hospitals bancrupt and supported by public money with 3 digit million€s annually • the public owners require solutions that include the criteria: • financing strength to stem > 1B€ invest • academic credability to ensure the teaching priority • sustainable hospital operator with proven track record to improve structure • the various approaches have not produced a solution that would fulfill all a.m. criteria • JohnsHopkins have demonstrated globally at several places already that they have the capability to improve and run hospitals profitably and with their academic reputation credably satisfy the a.m. need • a public tender could not capture this scenario • the ministeries of finance have invited the group and will give this approach priority outside of a tender process

  8. Shares: Johnshopkins 50% TBD 25% Winssinger 25% Dr.Kals 25% UH Structure Baltimore Group License SPV JohnsHopkins exclusivity Finance Partner MB Commercial Operator tbd Technical Operator tbd Academic Operator JohnsHopkins „JohnsHopkins Hospital Transformation“ SPV Full Lease Contract 25 years University Hospital (Public)

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