ORPEA: Solid Sales Growth in H1 2013: up 14.3% to €782.7 Million

Regulatory News:

ORPEA (Paris:ORP), the leading European player in Long-Term Care (nursing homes), Post-Acute Care and Psychiatric Care, has today announced its sales for the second quarter and the first half of 2013 to 30^th June.

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¹ Organic growth reflects the following factors: 1. the growth in sales (in period n vs. period n-1) of existing facilities as a result of changes in their occupancy rates and daily rates, 2. the growth in sales (in period n vs. period n-1) of restructured facilities or those with capacity increased during period n or n-1, and 3. sales generated in period n by facilities set up in period n or n-1. Organic growth includes the improvement in sales recorded at recently-acquired facilities by comparison with the previous equivalent period.

Yves Le Masne, ORPEA’s Chief Executive Officer, commented: "In second quarter 2013, ORPEA continued to report significant sales growth of 14.4%, after an increase of 14.2% in the first quarter.
In the first half, ORPEA again demonstrated the quality and the efficiency of its business model, with strong sales growth of 14.3% to €782.7 million, surpassing its full-year target of 12%.

This performance can be attributed to the combination of a rigorous, value-creating acquisition policy and robust organic growth of 7.1%.
The occupancy rate of mature facilities remained very high in all of the countries where ORPEA operates, while the ramping up of recent openings is proceeding faster than expected.

ORPEA opened 540 beds (new construction and restructuring) in France and internationally in the second quarter, bringing the total for the first-half to nearly 1,200 beds, all in modern facilities in strategic locations. This strategy of new openings, we have once again been able to create more than 600 stable jobs.

International business reported strong growth of 57.7% and now contributes 17% of consolidated sales. In keeping with its development strategy, ORPEA’s goal is to significantly increase the share of revenues generated internationally in the years ahead through selective developments:

• in European countries that continue to face the daunting challenges of an ageing population,
• in Chine, which must also face now the challenges of an ageing population.

On the strength of its excellent first-half performances and favourable development prospects, ORPEA confidently reiterates its full-year target of 12% sales growth, to €1,600 million, in 2013, along with solid operating profitability and tight control of debt.”

Next press release: results for the 1^st half of 2013,
11 September 2013 before market opens

About ORPEA (www.orpea-corp.com)

Listed on Euronext Paris since April 2002 and a member of the Deferred Settlement Service, the ORPEA group is the leading European player in the Long-Term Care and Post-Acute Care sectors.
At 1^st March 2013, the Group had a unique European network of 431 healthcare facilities with 40,374 beds (34,972 of them operational), including:

• 29,477 beds in France: 26,488 operational (including 2,334 being renovated) + 2,989 under construction, at 339 facilities,
• 10,897 beds in Europe (Spain, Belgium, Italy and Switzerland): 8,484 operational (including 912 being renovated) + 2,413 under construction, at 92 facilities.