Korian : Annual Results 2021Korian places its ESG commitments at the heart of its strategy and furthers its transformation to be a European, Mission-led company

PRESSE RELEASE

Annual Results 2021

Korian places its ESG commitments at the heart of its strategy and furthers its transformation to be a European, Mission-led company

Paris, 23rd February 2022 - Korian, the leading European care and support services group for the elderly and fragile, announces its Q4 revenue and its 2021 results.

Sophie Boissard, CEO of Korian Group:

"Following two years fighting the Covid-19 pandemic and whilst the nursing home model comes under scrutiny in France, the Korian community has remained more than ever committed to providing high quality care and support to the elderly and fragile in our society, through its three activities, long term elderly care, post-acute healthcare and community care.

I would like to pay tribute to the unwavering commitment and professionalism of the Korian teams across Europe, that has enabled us to progress significantly in our environmental and social objectives, particularly focused on employment and qualifying training.

I would like to thank all our stakeholders, and in particular our residents, patients, clients and their families for their trust and the quality of our dialogue in all of the communities where we are present. We are determined to build with our stakeholders the solutions and the infrastructure to accompany and care for the elderly and vulnerable with dignity. Thus contributing to solving the societal challenges posed by ageing and chronic diseases across Europe. It's with this aim in mind that we are starting our transformation to become a European, Mission-led company."

***

1

PRESSE RELEASE

• Committed to quality of care and quality of work
• • 240 facilities certified ISO 9001 (29% of network versus 11% in 2020),
  • Net Promoter Score from family, residents and patients of 34, well above the average of BtoC services sector of 231
  • 5,302 employees involved in a qualifying education programme: 9.7% of the Group's staff compared to 8% in 2020 and close to target of 10% for 2023
  • Average tenure of staff 7.4 years (up 0.5 year on 2020)
  • Pioneering Health and Safety at Work for the sector: Agreement signed by trade unions in France and a European Health & Safety Protocole with the European Works Council
• Strengthening the sustainable business model through significant investment
• • Investment in employees:

1. Increase in the percentage of revenue spent on staff (59% in 2021 versus 52% in 2016)

• • 1. Launch of first European Employee Shareholding Ownership Plan
  • Investment in the network: €409m invested to improve and extend services
  • Acceleration of outpatient and homecare: +50% outpatient care capacity and +20% in residential care (200 co-living and assisted living facilities)
• Performance in line with objectives
• • Revenue of € 4,311 million: +11.3% growth of which +5.9% organic, reflecting activity normalisation
  • EBITDA (pre IFRS16) of € 597.2 million with a margin rate of 13.9%
  • Net profit at €117.3 million, 2.7% of revenue, remaining down compared to 2019
  • FCF prior to investment of € 230 million
  • Net income Group share € 94.6 €million or 2.2% of revenue
• Solid balance sheet and reinforced liquidity
• • Stable operational leverage at 3.1x
  • Real Estate portfolio valued at € 3.2 billion with a stable Loan to Value of 55%
  • Average maturity of the net debt extended to c.6 years and reduction of average cost to 2%
  • Liquidity of € 1.7 billion
• 2022 financial guidance
• • Continued growth momentum in all three segments with an organic contribution above 4%
  • Continued normalization of EBITDA margin and FCF
• Next steps for the governance: transformation into a European company and the launch of the transformation to be a Mission Led company
• • Publication of the resolutions to the AGM on 18th May 2022
  • AGM to be convened on 22th June 2022

1 European survey carried out by IPSOS with 52,368 respondants (Nursing Homes, Assisted Living and clinics)

2

PRESSE RELEASE

FINANCIAL INFORMATION

The consolidated financial statements for 2021 were approved by the Board of Directors at its meeting of 23th February 2022.

The Statutory Auditors are In the process of issuing a report with an unqualified opinion. The consolidated financial statements were prepared in accordance with the IFRS 16 standard. For purposes of comparability, the financial information below is presented excluding the application of IFRS 16.

3

PRESSE RELEASE

Group Income Statement

			IFRS 16	2
€M		FY 2021	FY 2021	FY 2020	FY 2019
	Incl. IFRS 16	adjustments	Excl. IFRS 16	Excl. IFRS 16	Excl. IFRS 16
Revenue		4 310,8	-	4 310,8	3 874,0	3 612,5
Staff costs	(2 532,8)	-	(2 532,8)	(2 243,9)	(2 005,3)
% of revenue		58,8%	-	58,8%	57,9%	55,5%
Other costs	(704,5)	7,9	(696,6)	(681,9)	(659,1)
% of revenue		16,3%	-	16,2%	17,6%	18,2%
EBITDAR	1 073,6	7,9	1 081,5	948,3	948,1
% of revenue		24,9%	-	25,1%	24,5%	26,2%
External rents	(63,8)	(420,6)	(484,4)	(450,0)	(413,0)
% of revenue		1,5%	-	11,2%	11,6%	11,4%
EBITDA	1 009,8	(412,7)	597,2	498,2	535,1
% of revenue		23,4%	-	13,9%	12,9%	14,8%
Amortisation & Depreciations	(602,6)	371,9	(230,7)	(201,6)	(178,3)
Provisions	(23,7)	-	(23,7)	(25,3)	(19,1)
EBIT	383,6	(40,8)	342,8	271,3	337,7
% of revenue		8,9%	-	8,0%	7,0%	9,3%
Non current expenses	(41,7)	-	(41,7)	(38,5)	(15,7)
Operating income	341,9	(40,8)	301,1	232,8	322,1
% of revenue		7,9%	-	7,0%	6,0%	8,9%
Financial result	(210,0)	70,0	(140,0)	(138,7)	(119,9)
Net income before tax	131,9	29,2	161,1	94,1	202,2
Income tax	(13,5)	(6,5)	(20,0)	(25,8)	(64,7)
Tax rate		10,2%	22,3%	12,4%	27,4%	32,0%
Income from equity method	(2,0)		(2,0)	(0,8)	-
Minority Interests	(21,8)	-	(21,8)	(2,7)	(1,5)
Net profit - Group share	94,6	22,7	117,3	64,9	136,0
% of revenue		2,2%	-	2,7%	1,7%	3,8%

4

PRESSE RELEASE

Balance Sheet

in M€	31.12.2021	31.12.2020
Goodwill	3 214	2 906
Intangible assets	2 191	2 158
Property, plant and equipment	3 078	2 645
Rights of use	3 469	3 457
Financial assets	43	65
Equity-accounted investments	19	5
Deferred tax assets	95	79
Non-current assets	12 110	11 315
Inventories	28	36
Trade receivables and related accounts	365	315
Other receivables and currents assets	453	336
Current tax receivables	60	34
Financial instruments - assets	7	2
Cash and cash equivalents	1 215	1 159
Current assets	2 128	1 883
Assets held for sale	77
TOTAL ASSETS	14 315	13 197
In M€	31.12.2021	31.12.2020
Share capital	528	525
Premiums	1 196	1 183
Reserves and consolidated results	1 776	1 449
Equity attributable to owners of the Group	3 500	3 157
Non-controlling interests	271	166
Total shareholder's equity	3 771	3 323
Provisions for pensions	99	100
Deferred tax liabilities	584	605
Other provisions	50	62
Loans and financial liabilities	3 761	3 047
Non-current lease liabilities	3 425	3 351
Other non-current liabilities	173	96
Non-current liabilities	8 093	7 261
Provisions for current liabilities	16	10
Trade payables and related accounts	500	454
Other payables and accruals	761	770
Dettes d'impôt courant	69	29
Borrowings due within one year and bank overdrafts	681	952
Current lease liabilities	360	362
Financial instruments - Liabilities	21	38
Current liabilities	2 407	2 614
Liabilities held for sale	44
TOTAL LIABILITIES	14 315	13 197

5