ORPEA: Strong Sales Growth in Q1 2014: Up 11.3% to €428.1 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 first quarter to 31^st March, 2014.

* For remember, 3 facilities were closed in Spain.

First-quarter sales did not include any contribution from Senevita in Switzerland, which will be consolidated from 1 April, or from Silver Care in Germany, which will be consolidated from 1 July.

Yves Le Masne, ORPEA's Chief Executive Officer, commented: "ORPEA posted another upbeat quarter with brisk sales growth of 11.3%, exceeding the level of full-year growth initially forecast ahead of the acquisitions (10%).

This performance was driven by selective acquisitions and strong organic growth running at 6.7%, generated by the appeal of ORPEA facilities, as demonstrated by the rapid ramp-up in facilities opened over the past 12 months. In line with its programme, ORPEA opened six new facilities during the first quarter alone, adding 614 high-quality beds.

In addition, since the beginning of the year, ORPEA also accelerated its growth momentum outside France, by making two strategically important acquisitions: Senevita in Switzerland and Silver Care in Germany representing a total of 8,250 additional beds. These deals will significantly enhance top-line growth in 2014 and also boost the Group’s expansion potential outside France without any compromise on its profitability targets.

Thanks to this fresh impetus, ORPEA expects growth of 20% in its 2014 sales to €1,930 million, combined with healthy margins and a tightly controlled debt burden.”

Next press release: H1 2014 sales
16 July 2014 before the market opens

About ORPEA (www.orpea-corp.com)

Listed on Euronext Paris since April 2002 and a member of the Deferred Settlement Service, ORPEA is a European leader in integrated Long-Term Care and Post-Acute Care. The Group had a unique network of 521 healthcare facilities, with 51,259 beds (42,630 of them operational), including:

• 31,871 beds in France at (3,979 beds under refurbishment or construction) at 345 facilities
• 19,388 beds in the rest of Europe (Germany, Spain, Belgium, Italy and Switzerland) at 176 facilities (4,650 beds under refurbishment or construction)

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.