LNA Sante : Operating revenue 2022

Press Release

Nantes, 02 February 2023 at 6pm

Operating revenue 2022 : €680.5m

Dynamic organic growth of +6.3%. including a strong 4th quarter

"In a demanding year marked by the management of the risk of an epidemic, the multiple challenges of the attractiveness of the professions, the evolution of practices in the sector and the ecological transition, LNA Santé, with its singularities, shows the resilience of its model. Thus, while the turnaround in the occupancy rate of our establishments underlines the quality of our services, LNA Santé has seen the development of all of its businesses in all of its territories.

This great dynamic is supported by solid values and shared management principles, which have motivated our employees for 30 years and which will commit us to meeting the major challenges that will feed the new strategic plan drawn up by our teams for the next 5 years.

We are proud to carry out our professions which contribute to health issues and to do so within a committed professional community. Driven by our culture of care and global attention to our customers, our sense of belonging, and our demand to give the best of ourselves, I remain confident in our strengths and our collective imagination to always improve the support of patients, residents, and their family caregivers and, in doing so, boldly build the future of LNA Santé."

Willy Siret - Managing Director

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	In millions of euros		Q4 2022		Q4 2021		Var.				2022		2021		Var.
							cumulative		cumulative
	Operating turnover		176.2		165.6		+ 6.4%				680.5		635.5		+ 7.1%
	Organic growth					+ 5.5%							+ 6.3%
	Medical and Social Sector France *	70.2	65,3	+ 7.5%		269.7	255.8	+ 5.4%
	of turnover Operating	40%	39%				40%	40%
	Sanitary Sector France **	95.7	91.8	+ 4.2%		372.5	348.0	+ 7.0%
	of turnover Operating	54%	55%				55%	55%
	International Business Sector	9.1	7.5	+ 21.7%		33.2	27.7	+ 19.7%
	of turnover Operating	5%	5%				5%	4%
	Other sectors Operations	1.2	1.1		N/S	5.0	3.9		N/S
	Real Estate Revenue		13.1		17.1		- 23.3%				47.8		54.0		- 11.6%
	Total		189.3		182.7		+ 3.6%				728.2		689.5		+ 5.6%
												Data being audited by the auditors
											* Medico-Social France: EHPAD in France

• Sanitaire France: Medical and Rehabilitation Care (SMR), Psychiatric Clinics, Surgery and AHH in France
• • International Business Line: MRPA in Belgium and clinics in Poland

Continued increase in occupancy

In the 4th quarter of 2022, the average occupancy rate represented 94% of nursing home capacity, with an occupancy rate in the Elegance range of nearly 94% and in the Comfort range of nearly 97%. In the Elegance range, occupancy is up 1.2 points compared with the 4th quarter of 2021, while in the Comfort range, occupancy is temporarily down 1.7 points. In Belgium, occupancy remained stable at 90% over the quarter compared with last year. In rehabilitation and psychiatry, occupancy rose significantly by +6.3 points over the year, close to full capacity. In hospital at home, the number of patients cared for set a new high at 778 stays in the 4ème quarter of 2022 with a peak of more than 800 patients in December, an increase of +11% compared to the same period last year.

The occupancy rate of facilities at cruising speed in the 4th quarter of 2022, excluding home hospitalization, is 96%, an increase of 1.5 points compared to the 4th quarter of 2021.

Operating activity up in all business lines

In the 4th quarter of 2022, LNA Santé's operating revenue amounted to €176.2 million, up 6.4% compared to the same period last year, including 5.5% organic growth, a significant improvement of 20 basis points on the previous quarter.

For the 2022 financial year, LNA Santé's operating revenue amounted to € 680.5 million, up +7.1% year- on-year, driven by solid organic growth of +6.3%.

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• The business of highly-medicalised retirement homes amounted to €269.7m for the year, up by 5.4% on a purely organic basis, accelerating in the 4th quarter (+7.5%) compared to the 3ème quarter
  (+5.0%). It can be analysed as follows:
• • Comfort nursing homes, with limited accommodation prices, reported revenue of €45.4m, up 3.4% organically,
  • Elegance nursing home activity, at €224.4 million, was up 5.9% year-on-year, mainly on an organic basis, reflecting the rebound in occupancy rates, particularly in the Paris region and the Provence-Alpes-Côte d'Azur region.
• The Sanitary sector delivered sustained growth of +7.0% over the year to €372.5m. This increase was mainly due to organic growth of 6.6%, with a slight slowdown in the 4th quarter to 3.9%. The health business was driven by the following contributions:
• • Medical and Rehabilitation Care will generate €298.0m of business over 2022, up 5.1%, including 4.9% organic growth,
  • Hospitalisation At Home facilities generated €74.5m of activity, up 15.7% over the year, including 14.4% organic growth.
• The International Business sector posted a level of activity of €33.2m for the 2022 financial year, up 19.7% (including 7.2% organic growth) compared to the previous year, broken down as follows
• • Nursing homes in Belgium generated €29.7m in revenue in the quarter, an organic rebound of 7.2% on the same period last year,
  • The Polish clinics acquired at the end of February 2022 generated €3.5m of business during the quarter. They contributed 12.5% to the external growth of the International Business segment.

Real Estate Activity

Real estate revenues amounted to €47.8m at 31 December 2022 (€13.1m in the fourth quarter), reflecting the progress of ongoing projects, mainly the construction of a specialised SMR in Meaux (77), an Elegance nursing home in Pessac (33) and the end of the marketing of the extension to a psychiatric clinic in Epinay- sur-Seine (93).

Strong prospects

Closing 2022 with the announced business momentum, with an expected maintenance of our operating performance and organic debt reduction which continued during the first half of 2022, LNA Santé opens the year 2023 with confidence and vigilance.

Confidence in its business compass and financial position.

With a total of 10,047 beds and places (of which 9,390 are in operation), including the rebasing of AHH patients due to the continued development of this offer, the Group has a stable base of 8,376 beds at cruising speed and a base of 1,671 non-mature beds (1,014 to be restructured and 657 to be set up), whose compliance with the quality criteria of LNA Santé is already a vector for growth.

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Thus, for the current year, LNA Santé expects organic growth to continue at a level close to +6%, for operating revenue of €725 million excluding external growth. In an inflationary environment that is putting pressure on operating margins, operating profit should remain stable. With a healthy financial situation, operating leverage will remain under control and should be at the lower end of the 2.0 - 2.5 range, excluding transforming acquisitions.

A tariff evolution and a reform of the SMR to follow

With regard to the pricing campaign for health care facilities (SMR, HAD and Surgery) scheduled for 1er March 2023, representing 55% of operating activity, and the implementation of the reform of the SMR pricing regime postponed to 1st July 2023, LNA Santé is adopting a cautious position. While underlining the uncertainties surrounding the concrete impacts of these measures, reflected in the growth forecast indicated, LNA Santé is confident in the strengths of the rehabilitation offer proposed in its specialty clinics.

New ambitions for Growing Together 2023-2027

While remaining true to its identity and strategic orientations, LNA Santé is developing its new roadmap to guide its action priorities for the next 5 years. Halfway through the year, the Group will communicate the main lines of this project and the ambitions attached to it. In this context, LNA Santé intends to pursue a proactive development policy.

Next publication:

The 2022 annual results will be published on 29 March 2023 at the close of trading.

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About LNA Santé: With 30 years of experience, LNA Santé is involved at the heart of health territories to improve the quality of life of temporarily or permanently frail people in a welcoming and caring environment, adapted to each person and to all ages.

LNA Santé shares are listed in compartment B of Euronext Paris.

ISIN code: FR0004170017.

Contacts :

		Financial communication
Damien Billard		J. Gacoin / V. Boivin
Deputy DG for Finance	[phone]
[phone]	92	[e-mail]

[e-mail]

Shareholder Line (Tuesday and Thursday from 2pm to 4pm): 0 811 04 59 21

Glossary

The cruising regime corresponds to beds that comply with LNA Santé's operating plan (quality of care, target size of the establishment, new state of the real estate, trained and involved management, efficient organisation).

Organic growth in turnover corresponds to the change in turnover:

• between N-1 and N of establishments existing in N-1,
• between N-1 and N of establishments opened in N-1 or in N,
• between N-1 and N of establishments restructured in accordance with the LNA Santé specifications or whose capacity increased in N-1 or N,
• in N compared to the equivalent period in N-1 of establishments acquired in N-1.

Operating leverage is the ratio of operating net financial debt to operating EBITDA before IFRS 16.

The net financial debt of Operations corresponds to the gross financial debt of Operations, excluding rental obligations introduced by IFRS 16, less cash and cash equivalents.

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