ORPEA: Strong Revenue Growth in Q3 2016: up 16.8% at €724.6 Million

Regulatory News:

The ORPEA group (Paris:ORP), one of the leading European providers of long- and medium-term care (nursing homes, post-acute and rehabilitation hospitals psychiatric hospitals, and homecare services), has today announced its revenue for the third quarter of 2016 to 30^th September.

SeneCura in Austria has been consolidated since 1 April 2015, Celenus Kliniken in Germany, since 1 July 2015, Residenz Gruppe Bremen in Germany since 1 October 2015, Medi-System in Poland and Vitalis in Germany since 1 January 2016, and Sanyres in Spain since 1 July 2016.

Commenting on the figures, Yves Le Masne, ORPEA’s Chief Executive Officer, said:

"Our value-creating growth momentum continued in the third quarter of 2016, with revenue rising sharply, by 16.8% to €724.6m. As in every quarter, growth was driven by the combination of bolt-on acquisitions (particularly Medi-System in Poland, Residenz Gruppe Bremen and Vitalis in Germany as well as Sanyres in Spain) with an ongoing rapid rate of organic growth.

Organic growth in Q3 was particularly strong at 6.3%, both in France and internationally. That excellent performance resulted from:

- good momentum in mature facilities with high occupancy rates;

- the faster-than-expected ramp-up of facilities that were opened in 2015, most of which are in attractive, high-income areas;

- the opening of 2,400 beds since the start of the year in newly built or redeveloped facilities, in all of the countries where we are implemented and in some prestigious cities.

Acquisitions and openings of new facilities meant that our international business grew 36% in Q3, and now accounts for 41% of ORPEA's total revenue.

In the first nine months of 2016, revenue increased by 20.8% to €2,105.2m, with over half of that growth taking place outside France. We are therefore very confident that we will now exceed our full-year revenue guidance of €2,810 million (+17.5%)."

Next press release: revenue for 2016 full-year
8 February 2017 before the market opens

About ORPEA (www.orpea-corp.com)

Founded in 1989, ORPEA is a European leader in integrated Long-Term Care and Post-Acute Care, with a network of 733 healthcare facilities, with 74,272 beds (9,041 of them under refurbishment or construction), including:

• 32,688 beds in France at 352 facilities (2,993 beds under refurbishment or construction);
• 41,584 beds in the rest of Europe (Germany, Austria, Belgium, Spain, Italy, Czech Republic, Poland and Switzerland) at 381 facilities (6,048 beds under refurbishment or construction).

ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and member of SBF 120, STOXX Europe 600, MSCI Small Cap Europe and CAC Mid 60 indices.

¹Organic growth reflects the following factors: 1. The year-on-year change in the revenues of existing facilities as a result of changes in their occupancy rates and daily rates; 2. The year-on-year change in the revenues of redeveloped facilities or those where capacity has been increased in the current or year-earlier period; 3. Revenues generated in the current period by facilities created in the current or year-earlier period, and the change in revenues at recently acquired facilities by comparison with the previous equivalent period.

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