Information on KORIAN performance units granted to the Chief Executive Officer

Regulatory News:

In accordance with the recommendations of the AFEP-MEDEF corporate governance code, KORIAN (Paris:KORI) is disclosing below information about the performance units granted to Mrs Sophie Boissard, the Chief Executive Officer.

Pursuant to the recommendations of the Compensation and Appointments Committee, at its meeting of 14 September 2016, KORIAN’s Board of Directors voted to set up a long-term variable remuneration system that grants performance units and aims to remunerate performance as measured against the objectives of the five-year strategic plan.

In connection with this grant to senior management, 18,684 performance units were granted to the Chief Executive Officer.

The main features of this performance units plan are:

• The number of performance units that will be ultimately granted on 30 June 2019 will depend on the level at which three separate performance targets are met (each of which confers the right to one-third of the total grant), and which are based on the level at which the revenue objective and the EBITDA objective of the five-year strategic plan are attained as at 31 December 2018, as well as the performance of the KORIAN share price compared to the performance of the SBF 120 index between 14 September 2016 and 30 June 2019¹:
  • If the revenue objective or the EBITDA objective of the five-year strategic plan is not attained, no performance units shall be earned under such objective. The achievement of each of these objectives will only give right to part of the performance units attributable under such objective.
  • In addition, it is only if between 14 September 2016 and 30 June 2019 the KORIAN share price outperforms the SBF 120 index that part of the performance units attributable under this objective will be earned.
  • 100% of the performance units will be earned only in case of outperformance for each of the three objectives.
• The benefit and payment of the performance units earned are conditioned on the corporate officer still being with the company on 30 June 2019 (except in the event of death and disability).
• The value of a performance unit will be equal to the average closing price of the KORIAN share during the 20 trading days prior to 30 June 2019.
• After 30 June 2019, the performance units will be paid half in KORIAN shares and half in cash. However, the Board of Directors reserves the right to revise this allocation.
• The KORIAN shares received as payment for performance units will be freely negotiable, provided the Chief Executive Officer retains 25% of the KORIAN shares received as payment.

¹ The required level of achievement of the objectives has been determined precisely but is not publicly disclosed for confidentiality reasons.

The gross remuneration paid pursuant to the performance units granted to the Chief Executive Officer may not exceed 100% of her annual gross fixed and variable remuneration.

Lastly, the Chief Executive Officer has made a separate formal undertaking not to use instruments to hedge her risk in connection with this grant.

ABOUT KORIAN

Korian, Europe’s leading Ageing Well specialist, founded in 2003, has the capacity to accommodate more than 71,500 residents and patients in Europe (France, Germany, Italy and Belgium) and employs around 45,000 staff members. The Group manages more than 710 facilities in four business lines: nursing homes, post-acute and rehabilitation care clinics, assisted living facilities and hospital care and home-care services.

For more information, please visit the website: www.korian.com

Korian is listed on Euronext Paris Compartment A and is included in the following indices: SBF 120, CAC Health Care, CAC Mid 60, CAC Mid & Small and MSCI Global Small Cap

Euronext ticker: KORI - ISIN: FR0010386334 – Reuters: KORI.PA – Bloomberg: KORI.FP

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