The Korian Group Reports Strong Growth in the First Half of 2013

Regulatory News:

The Korian Group (Paris:KORI) reports strong growth in the first half of 2013:

• Revenues totalled €663.1 million (up 21%), driven by organic growth of 3.4% (4.5% for Q2 2013) and the integration of Curanum on 1 March 2013.
• International business represents close to 50% of the Group’s activities and confirms its role as a driver of growth, with an increase of 88.4%.

In addition, the Group is continuing to implement its strategic plan, Korian First, though its four drivers:

1. The Performance Driver: Korian First’s action plans and processes are delivering the desired results. In addition, Korian is nearing the completion of its realignment towards its most strategic assets with the sale of five psychiatric clinics under the transfer agreement signed with INCIEA and a nursing home in Pau on 30 June. The two remaining psychiatric clinics will be sold off before the end of the year,
2. The Development Driver: following the success of the Curanum acquisition, integration is progressing according to plan with the contribution of Phönix’s shares to Curanum scheduled for 1 September, which will in turn allow the first German synergies to be established,
3. The Innovation Driver: on 2 July, the committee of Korian’s Institut du Bien Vieillir [institute for healthy ageing] held its first meeting. The committee brings together the complementary expertise of its distinguished members and represents a fantastic resource for the Group that will enable it to enhance its work in Innovation,
4. The Humans/Teams Driver: the first opinion poll of employees in France was launched in June with a great success. Furthermore, Korian is the first company in the sector to have negotiated a Generation contract agreement with the aim of promoting the recruitment of young people, with around 550 job opportunities opened up each year, while also maintaining the proportion of staff aged 57 or over.

Yann Coléou, CEO of Korian:

"The first half of the year marks an important stage in Korian’s transformation. We have laid the foundations of our Korian First business plan by creating a group that is the joint-leader in Europe and the leader in Germany, homogenising our key processes to improve our performance, refocusing on our strategic activities following the sale of the psychiatry division, and establishing the Korian Institut du Bien Vieillir.

Because the transformation of the Group is taking place within our facilities and support from the managers is fundamental, we wanted to launch Korian First face-to-face to almost 1,000 managers, who were invited to find out about and work on the project with the Executive Management for a day.

The positive results achieved over the first half of the year confirm our outlook for 2013, as stated at the beginning of the year, namely revenues in excess of €1.3 billion, increased profitability with a target EBITDAR margin of over 26%, and stable financial leverage.”

About Korian

The Korian Group, founded in 2001, is one of the European market leaders in comprehensive care. Korian has the facilities to accommodate more than 34,000 residents and patients in Europe (France, Germany and Italy) and employs over 26,000 staff. The group manages 270 nursing homes and 50 specialist follow-up care and rehabilitation clinics, has over 2,200 beds in assisted living facilities and provides homecare services for over 9,000 people.

The company has been listed on Euronext Paris Eurolist Compartment B since November 2006.

Next announcement: 12 September 2013 before start of trading
2013 half-year results

Korian - 32, rue Guersant - 75017 Paris - France – Tel: +33 (0)1 55 37 52 00 – Fax: +33 (0)1 55 37 52 01

For more information, please visit our website: www.groupe-korian.com