ORPEA: Sharp Rise in 2015 Revenues Ahead of Guidance, up 22.8% to €2,393 Million

Regulatory News:

ORPEA (Paris:ORP), a leading European player in Long-Term Care (nursing homes), Post-Acute Care and Psychiatric Care, has today announced its sales for the fourth quarter and for the 2015 financial year ended on 31 December.

Full-year 2015 revenues ahead of guidance

SeneCura in Austria has been consolidated since 1 April 2015, Celenus Kliniken since 1 July 2015 and Residenz Gruppe Bremen since 1 September 2015.

¹ Organic revenue growth 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 daily rates, 2. the year-on-year change in the revenue of refurbished facilities or those where capacity has been increased in the current or year-earlier period, and 3. revenue generated in the current period by facilities created in the current or year-earlier period. Organic growth includes the improvement in revenue at recently acquired facilities by comparison with the previous equivalent period.

Further acceleration in growth in 2015, with revenues rising 22.8%

Commenting on the figures, Yves Le Masne, ORPEA’s Chief Executive Officer, said: "In 2015, our revenue growth accelerated again, with the top line rising by 22.8% to €2,393 million. This beat our guidance, which we have already raised during the year.

In just four years (2011-2015), our revenues have doubled, largely thanks to the impetus provided by expansion outside France, with international revenues growing more than fivefold. As a result, revenues generated outside France have gone up from 11% in 2011 to 33% in 2015.

The remarkable growth we achieved in 2015 was the product of careful execution of our historical strategy:

• robust organic growth of 5.4% – equivalent to over €100 million for the first time – driven by the location, appeal and good reputation of our facilities and the opening of 2,050 beds (through construction or restructuring) during the year, over 60% in international markets;
• strong external growth in international markets, with the contribution from the acquisitions made in 2015 – SeneCura in Austria, and Celenus Kliniken and Residenz Gruppe Bremen in Germany.

In a year of very strong international expansion, this top-line growth was achieved together with solid and carefully controlled margins, in keeping with our longstanding strategy.”

3,000 new beds to open and 1,500 jobs to be created in 2016

With a footprint now in ten countries, ORPEA is set to accelerate the pace of new openings in 2016. A total of 3,000 new beds will be added in 30 new facilities, with around two-thirds of these located in international markets, including Belgium, Germany, Switzerland and Italy. In addition, the pilot Nanjing project in China is due to open in the coming weeks. These new facilities will meet the highest quality standards, and most of them will be located in high-potential regions, such as the 15^th arrondissement of Paris, Knokke-Le-Zoute, Antwerp, Berlin, Zurich and Prague.

ORPEA will also continue to strengthen its management teams, both in countries where it has operated for two years and at its head office. The aim of this is to increase coordination and tighten control over the various platforms.

In 2016, ORPEA is set to help generate new employment. Over 1,500 direct jobs will be created in Europe, plus all the related positions in the building sector linked to construction of the 10,000 beds currently in the growth pipeline.

With its workforce in Europe now over 40,000 employees, training and internal promotion remain at the heart of the its global labour policy so that the Group can safeguard high-quality care standards for residents and patients everywhere it operates.

Outlook for 2016: revenue growth of close to 14% already secured

In 2016, ORPEA now securely forecasts revenues of €2,720 million. This represents a brisk increase of 13.7% (rise of €327 million) driven by consistently solid organic growth and a contribution from the acquisitions in Germany (Residenz Gruppe Bremen, Celenus Kliniken) and MEDI-System in Poland.

As it stands, this revenue projection does not factor in any other developments.

Dr Jean-Claude Marian, ORPEA’s Chairman, added:

"Since 2008 and the beginning of the economic crisis, ORPEA’s top-line growth has averaged 19% p.a., demonstrating the strong resilience to the economic and financial environment of our business model and our sector of activity, which is driven primarily by the general phenomenon of population ageing.

The development policy will remain at the heart of the Group’s strategy, combining the creation of new facilities in countries where there is a tremendous shortage of high-quality beds with an ongoing quest for selective and value-creating acquisitions.

It is also worth noting that ORPEA regularly ranks among the top performers in this expanding sector thanks to the tremendous work done by its development, quality control, and resident and patient care teams.

These powerful foundations and effective organisation make us highly confident that we will be able to continue delivering profitable growth in 2016 and future years.”

Financial reporting schedule for 2016

The following dates are subject to change. Press releases will be published before the market opens.

About ORPEA (www.orpea-corp.com)

Founded in 1989, and listed on Euronext Paris since April 2002, ORPEA is a European leader in integrated Long-Term Care and Post-Acute Care. The Group has a unique network of 697 healthcare facilities, with 68,691 beds (10,439 of them under refurbishment or construction), including:

• 32,743 beds in France at (3,349 beds under refurbishment or construction) at 354 facilities;
• 35,948 beds in the rest of Europe (Germany, Austria, Belgium, Spain, Italy, Czech Republic, Poland and Switzerland) at 343 facilities (7,090 beds under refurbishment or construction).

Listed in Euronext Paris Compartment A, a Euronext Group market
Member of the SBF 120, STOXX Europe 600, MSCI Small Cap Europe and CAC Mid 60 indices - ISIN: FR0000184798- Reuters: ORP.PA - Bloomberg: ORP FP

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