ORPEA: 2021 financial indicators

Rhea-AI Summary

ORPEA reports its 2021 results amid ongoing scrutiny regarding care quality. The company achieved a revenue of €4,285 million, reflecting a 9.2% increase from 2020, driven by new facilities and acquisitions. EBITDAR stood at €1,068 million, with a margin of 24.9%. The total net debt rose to €7,767 million, attributed to investments. However, the planned acquisition of Hestia Alliance was not completed due to unmet conditions. ORPEA is committed to addressing care quality and transparency following administrative inspections affecting around 150 facilities.

Positive

• Revenue increased by 9.2% to €4,285 million in 2021.
• EBITDAR rose to €1,068 million, with a margin of 24.9%.
• Successful integration of new facilities and acquisitions in 2021.

Negative

• Net debt increased to €7,767 million, raising concerns over financial leverage.
• The planned acquisition of Hestia Alliance was not completed.

PUTEAUX, France--(BUSINESS WIRE)-- Regulatory News:

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

"First and foremost, I wish to convey my full support to residents, patients and their families. I appreciate how they must feel in the face of the allegations against the Group and the ongoing discussions around care for the elderly. I wish to reassure them that we have been doing everything to shed light on what we are accused of. We owe this transparency to all of our stakeholders, and above all 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 perform independent external evaluation missions. All of our teams are fully cooperating in order to facilitate their work.

Since the end of January, around 150 of the Group's facilities in France have undergone administrative inspections, which the teams have welcomed with professionalism. I promise to ensure that all observations be considered with utmost seriousness and recommendations be implemented as quickly as possible. As part of the finalisation phase of the IGF and IGAS investigations¹, we are working on the responses to be provided.

ORPEA fully supports the announcements made in recent days by the public authorities in France, with the aim of guaranteeing greater control, quality and transparency in nursing homes and strengthening the confidence that families have in the sector as a whole. The company is committed to deploying these measures with the utmost diligence in its facilities, with some of the measures being a continuation of actions or reflections already initiated.

Finally, now more than ever, I would like to extend my heartfelt thanks to our 70,000 employees for their unwavering commitment to the residents, patients and families. I appreciate the total dedication that they bring to work every day and I know how much this situation has affected them. I wish to reiterate the trust that I have in them."

In accordance with the press release of 23 February 2022, ORPEA is publishing a preliminary selection of key financial indicators for the financial year ended 31 December 2021. The audited financial statements will be published after the release of the various reports and initial findings of administrative investigations (IGF, standing for: Inspection Générale des Finances — French inspectorate general for finance – and IGAS, standing for: Inspection Générale des Affaires Sociales — French inspectorate general for social affairs) and external independent audits (Grant Thornton and Alvarez & Marsal), scheduled for mid-March and mid-April respectively. Should the contents of the reports and initial findings identify new elements, the Company may need to reflect this 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 11 March 2022.

Key indicators for 2021 results

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

In € million (IFRS) — audit in progress		2021		2020		Change
Revenue		4,285		3,922		+9.2%
EBITDAR (EBITDA before rental expenses)		1,068		963		+10.9%
EBITDAR margin		24.9%		24.6%
EBITDA		1,037		926		+12.0%

2021 revenue stood at €4,285 million, up +9.2% (including +5.1% organic growth). This change reflects the contributions from new facilities opened in 2021, the acquisitions carried out (including First Care, Belmont and Brindley in Ireland and Sensato in Switzerland) and the rise in the level of activity.

EBITDAR (EBITDA before rental expenses) stood at €1,068 million, representing a margin of 24.9% on the FY2021 revenue.

Financial debt and rental commitments as at 31/12/2021

In € million (IFRS) — audit in progress				2021				2020
Net debt				7,767				6,653
Gross debt				8,809				7,542
Cash				1,042				889
Rental commitments (IFRS 16)				3,229				2,987
Amount of real-estate rental expenses (1)				383				354

(1) It should be noted, where necessary, that real-estate rental expenses are not deducted from EBITDA in accordance with IFRS 16

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

At end-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 eventually not been completed, due to certain key conditions precedent not being met before the long stop date.

Financial schedule

The Company will publish its financial statements for the financial year ended 31 December 2021 and 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 forthcoming actions to be undertaken, in full transparency and in compliance with stock market regulations. With respect to shareholders and investors, the company will favour, in the coming period, 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 (nursing homes, assisted living, post-acute and rehabilitation hospitals, mental health hospitals, home care services)

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

¹ IGF: Inspection Générale des Finances — French inspectorate general for finance – and IGAS: Inspection Générale des Affaires Sociales French inspectorate general for social affairs

View source version on businesswire.com: https://www.businesswire.com/news/home/20220311005421/en/

Investor Relations

ORPEA

Steve Grobet

EVP Communication and Investor Relations

s.grobet@orpea.net



Benoit Lesieur

Investor Relations Director

b.lesieur@orpea.net

Investor Relations

NewCap

Dusan Oresansky

Tel.: +33 (0)1 44 71 94 94

orpea@newcap.eu

Media Relations

Image 7

Laurence Heilbronn

Tel.: +33 (0)6 89 87 61 37

lheilbronn@image7.fr



Charlotte Le Barbier

Tel.: +33 (0)6 78 37 27 60

clebarbier@image7.fr

Source: ORPEA

FAQ

What were ORPEA's key financial indicators for 2021?

ORPEA reported a revenue of €4,285 million and EBITDAR of €1,068 million for 2021.

Why did ORPEA's planned acquisition of Hestia Alliance fail?

The acquisition was not completed due to certain key conditions not being met.

What is the current net debt of ORPEA?

As of December 31, 2021, ORPEA's net debt stood at €7,767 million.

How did ORPEA plan to improve care quality?

ORPEA has committed to implementing measures for greater control and transparency in nursing homes.

When will ORPEA publish its complete financial statements?

ORPEA is scheduled to release its financial statements by the end of April 2022.