The ORPEA Group: Message from Philippe Charrier, Chairman and CEO, to Residents, Patients, Their Families and to Employees

Rhea-AI Summary

The ORPEA Group reported a revenue of €4,285 million for FY2021, a 9.2% increase compared to 2020. In Q4 2021, revenues reached €1,105 million, reflecting an 8.8% rise. The group is undergoing administrative inspections and independent evaluations in response to recent allegations, with reports expected by mid-March 2022. CEO Philippe Charrier reassured stakeholders of the company's commitment to quality care and transparency. Despite challenges, early 2022 shows promising recovery in occupancy rates.

Positive

• FY2021 revenue increased to €4,285 million, a 9.2% growth from 2020.
• Q4 2021 revenue at €1,105 million, up 8.8%.
• Recovery in occupancy rates observed in early 2022.
• Acquisitions in Ireland and Switzerland contributed to revenue growth.

Negative

• Ongoing administrative inspections and external evaluations due to allegations.
• CEO acknowledges challenges to the company's quality requirement.

Launch of Administrative inspections and independent external evaluation missions

2021 activity in line with objectives 

• Q4 2021 revenue at €1,105 million
• 2021 revenue at €4,285 million

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

The ORPEA Group (Paris:ORP), a world leader in Dependency care (nursing homes, assisted living, post-acute and rehabilitation hospitals, mental health hospitals, home care services), today announces its revenue for the FY2021 (12 months to 31 December 2021) and provides an update on recent events related to the allegations made against the Group.

Philippe Charrier, Chairman and CEO of ORPEA addresses the Residents, Patients, Families and Employees

“Having read the serious allegations contained in the book published on 26 January 2022, I am fully aware of the concern, incomprehension and doubt felt by residents, patients and their families. I am also thinking of the 70,000 employees of the Group who, within our facilities, demonstrate an outstanding commitment to accompanying and caring for more than 250,000 patients or residents per year in the best possible conditions.

In carrying out this mission, the requirement for quality has always been an essential and paramount dimension. This requirement is at the heart of ORPEA's identity and development model. Today, however, it is being seriously challenged.

The objective that guides each of my decisions is to ensure, under the control of the Board of Directors and relying in particular on the independent external evaluation assignments that have already begun, that best practices are applied and monitored throughout the company.

ORPEA wishes to be able to play its full part in supporting and implementing any new measures that may be decided upon to improve the conditions for the care of dependent persons.”

Launch of administrative inspections and independent external evaluation missions

The government has ordered two investigations, one by the General Inspectorate of Social Affairs (Igas) and the other by the General Inspectorate of Finance (Igf), whose final report is expected mid-March, based on the public information available to date.

For its part, ORPEA's Board of Directors announced on 1 February that it was mandating two independent firms, Alvarez & Marsal and Grant Thornton, which have already begun their work.

The complementarity of these two internationally renowned firms guarantees the effectiveness and comprehensiveness of the assessment. Both firms will have access to all the information of ORPEA and its subsidiaries that they deem necessary. The ORPEA Group's Board of Directors is directly monitoring these two assignments. The conclusions of Alvarez & Marsal and Grant Thornton will be made available to the competent authorities and will be the subject of a specific communication.

2021 activity in line with objectives

In €m		Quarterly
		Q4 2021	Q4 2020	Total change	Organic growth1
France Benelux		669.7	625.1	+7.1%	+3.1%
Central Europe		287.5	254.1	+13.1%	+6.5%
Eastern Europe		102.1	95.6	+6.9%	+6.0%
Iberian Peninsula and Latam		45.2	40.7	+11.1%	+8.9%
Other countries		0.9	0.8	NS	NS
Total revenue		1,105.4	1,016.3	+8.8%	+4.5%

Composition of the geographical regions: France Benelux (France, Belgium, Netherlands, Ireland, United Kingdom), Central Europe (Germany, Italy and Switzerland), Eastern Europe (Austria, Poland, the Czech Republic, Slovenia, Latvia, Croatia), Iberian Peninsula and Latam (Spain, Portugal, Brazil, Uruguay, Mexico, Colombia, Chile), Other countries (China).

In 2021, revenue benefited from the gradual recovery in occupancy rates, driven primarily by the Covid-19 vaccination campaign as well as the engagement of ORPEA's teams who remained fully committed to providing a safe environment for residents and patients. Moreover, revenue growth benefited from the contribution of acquisitions realized, notably in Ireland and Switzerland (First Care, Belmont, Brindley and Sensato).

In €m		12 months (to 31.12.2021)
		2021	2020	Total change	Organic growth
France Benelux		2,629.1	2,363.9	+11.2%	+6.7%
Central Europe		1,086.3	1,010.7	+7.5%	+2.3%
Eastern Europe		395.5	365.6	+8.2%	+7.3%
Iberian Peninsula and Latam		170.7	179.0	-4.6%	-2.9%
Other countries		3.2	3.2	NA	NA
Total revenue		4,284.8	3,922.4	+9.2%	+5.1%

Composition of the geographical regions: France Benelux (France, Belgium, Netherlands, Ireland, United Kingdom), Central Europe (Germany, Italy and Switzerland), Eastern Europe (Austria, Poland, the Czech Republic, Slovenia, Latvia, Croatia), Iberian Peninsula and Latam (Spain, Portugal, Brazil, Uruguay, Mexico, Colombia, Chile), Other countries (China).

Activity to date

The Group is showing solid momentum at the beginning of 2022. Despite the health context, clinics have seen a rapid recovery in activity following the end-of-year holidays. Occupancy rates in nursing homes are up slightly compared to the fourth quarter of 2021, particularly in French “EHPADs”, which account for less than 25% of the Group's revenue.

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 favor, in the coming period, public communication over any other form of communication.

2022 financial calendar

The following dates are indicative and subject to change. Press releases will be published after the market closes.

Event	Date
Full-year 2021 results	Tuesday 15 March 2022
First-quarter 2022 revenue	Tuesday 3 May 2022

About ORPEA (www.orpea-corp.com)

Founded in 1989, ORPEA is one of the major world leaders in comprehensive long-term care, with a network as of 30 June 2021, of 1,156 facilities comprising 116,514 beds (26,359 of which are under construction) across 23 countries, which are divided into five geographical regions:

• France Benelux: 586 facilities / 49,207 beds (5,672 of which are under construction)
• Central Europe: 268 facilities / 28,419 beds (5,828 of which are under construction)
• Eastern Europe: 142 facilities / 15,255 beds (4,101 of which are under construction)
• Iberian Peninsula and Latam: 158 facilities / 23,108 beds (10,373 of which are under construction)
• Rest of the world: 2 facilities / 525 beds (385 of which are under construction)

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.

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¹ Organic growth of Group revenue reflects the following factors: 1. The year-on-year change in the revenue of existing facilities as a result of changes in their occupancy rates and per diem rates; 2. The year-on-year change in the revenue of redeveloped facilities or those where capacity has been increased in the current or year-earlier period; 3. Revenue generated in the current period by facilities created during the year or year-earlier period, and the change in revenue of recently acquired facilities by comparison with the previous equivalent period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220208006025/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: The ORPEA Group

FAQ

What is ORPEA's revenue for FY2021?

ORPEA reported a revenue of €4,285 million for FY2021, a 9.2% increase from 2020.

What was the Q4 2021 revenue for ORPEA?

In Q4 2021, ORPEA's revenue reached €1,105 million, reflecting an 8.8% rise.

What investigations is ORPEA undergoing?

ORPEA is undergoing administrative inspections and independent evaluations due to recent allegations.

What does the CEO of ORPEA say about the company's situation?

CEO Philippe Charrier emphasized the commitment to quality care while acknowledging challenges.

How is ORPEA performing in early 2022?

Early 2022 shows a promising recovery in occupancy rates for ORPEA's facilities.