ORPEA: 2021 financial indicators | business thread

PUTEAUX, France–(BUSINESS WIRE)–Regulatory news:

Philippe Charrier, CEO of ORPEA (Paris:ORP)issued the following statement:

“Above all, I want to express my full support to the residents, patients and their families. I appreciate how they must feel about the allegations against the Group and the ongoing discussions around the care of the elderly. I want to reassure them that we have done everything to shed light on what we are accused of and that we owe this transparency to all of our stakeholders, and first and foremost to residents and their families.

This is also why the Board of Directors immediately created an ad hoc committee and appointed Grant Thornton and Alvarez & Marsal to carry out independent external evaluation missions. All our teams cooperate fully in order to facilitate their work.

Since the end of January, approximately 150 Group establishments in France have undergone administrative checks, which the teams have received with professionalism. I promise to ensure that all observations are considered with the utmost seriousness and that recommendations are implemented as soon as possible. As part of the finalization phase of the IGF and IGAS investigations1we are working on the answers to be provided.

ORPEA fully supports the announcements made in recent days by the public authorities in France, with the aim of guaranteeing more control, quality and transparency in EHPADs and strengthening the confidence of families in the sector as a whole. The company undertakes to deploy these measures with the greatest diligence in its facilities, with certain measures being part of the continuity of actions or reflections already undertaken.

Finally, more than ever, I would like to warmly thank our 70,000 employees for their unwavering commitment to residents, patients and families. I appreciate the total dedication they bring to the job on a daily basis and know how much this situation has affected them. I want to reiterate the confidence I have in them.”

In accordance with the press release of February 23, 2022, ORPEA publishes a first selection of key financial indicators for the financial year ended December 31, 2021. The audited accounts will be published after the publication of the various reports and first conclusions of the administrative investigations (IGF, meaning: General Inspectorate of Finance — Inspectorate General of Finance – and IGAS, for: General Inspectorate of Social Affairs — General Inspectorate of Social Affairs) and independent external audits (Grant Thornton and Alvarez & Marsal), scheduled for mid-March and mid-April respectively. If the content of the reports and the initial findings identify new elements, the Company may be required to take them into account in the financial statements, depending on their materiality.

The audit of the financial statements is in progress.

The publication of these financial indicators was approved by the Board of Directors on March 11, 2022.

2021 Key Results Indicators

The 2021 results are presented in accordance with IFRS accounting standards, including IFRS 16, and in accordance with applicable regulations and recommendations.

In millions of euros (IFRS) — audit in progress

2021

2020

Change

Income

4,285

3,922

+9.2%

EBITDAR (EBITDA before rental charges)

1,068

963

+10.9%

EBITDAR margin

24.9%

24.6%

EBITDA

1,037

926

+12.0%

2021 turnover amounted to 4,285 million euros, up +9.2% (including +5.1% organic growth). This change reflects the contributions of new establishments opened in 2021, the acquisitions made (including First Care, Belmont and Brindley in Ireland and Sensato in Switzerland) and the increase in the level of activity.

EBITDAR (EBITDA before rental charges) amounted to 1,068 million euros, i.e. a margin of 24.9% on revenue for the 2021 financial year.

Financial debts and rental commitments as of 12/31/2021

In millions of euros (IFRS) — audit in progress

2021

2020

Net debt

7,767

6,653

Gross debt

8,809

7,542

Cash

1,042

889

Lease commitments (IFRS 16)

3,229

2,987

Amount of property rental charges (1)

383

354

(1) It should be noted, where applicable, that property rental charges are not deducted from EBITDA in accordance with IFRS 16

Net financial debt amounted to 7,767 million euros. The increase observed is mainly due to investments made in construction projects and external growth in 2021.

At the end of 2021, cash stood at €1,042 million.

Update on the planned acquisition of Hestia Alliance

ORPEA announces that the acquisition of the Spanish group Hestia Alliance has not been finalized, certain essential conditions precedent having not been fulfilled before the long deadline.

Financial calendar

The Company will publish its financial statements for the year ended December 31, 2021 and will hold its analyst meeting before the end of April 2022. The exact date will be communicated in due course.

Communication

The company will continue to ensure that all shareholders are fully informed of the next actions to be taken, in full transparency and in compliance with stock market regulations. With regard to shareholders and investors, the company will give preference, in the coming period, to public communication over any other form of communication.

About ORPEA (www.orpea-corp.com)

Founded in 1989, ORPEA is one of the world leaders in dependency care (EHPAD, EHPAD, Aftercare and Rehabilitation Hospitals, Mental Health Hospitals, Home Services)

ORPEA is listed on Euronext Paris (ISIN code: FR0000184798) and is part of the SBF 120, STOXX 600 Europe, MSCI Small Cap Europe and CAC Mid 60 indices.

1 IGF: General Inspectorate of Finance — General Inspectorate of Finance – and IGAS: General Inspectorate of Social Affairs General Inspectorate of Social Affairs

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