Korian

Revenue up 8.4% in Q3 2019

Regulatory News:

Korian (Paris:KORI):

• Strong quarterly growth in all geographies

- A continuously improved network due to renovations and innovations

- Rapid expansion of the service offer in each living area

- Dynamic local acquisition strategy

• Revenue of €2,677.6 million in the first 9 months

- 8.2% increase, of which 3.8% is organic growth

- Significant contribution of companies acquired over the last 12 months

- 4,042 new beds, bringing the total number of beds to 82,189

• Objectives for financial year 2019 confirmed

- Revenue growth above or equal to 8%

- EBITDA margin above or equal to 14.5%

Revenue in Q3 2019 and the first 9 months of 2019

Revenue in Q3 2019 increased 8.4% to €910.3 million, of which 3.8% was organic growth. This strong growth confirms the healthy development momentum in the various territories driven by the optimisation of the network and the expansion of the service offer, and driven by the active deployment of the local acquisition strategy over the last twelve months. The integration of Stepping Stones (Netherlands) and Grupo 5 (Spain) during the quarter¹ provides additional diversification and supplements the Group’s customer offering.

• In France, revenue was up sharply by 6.5%² (versus 3.6% in Q3 2018), of which 2.8% was organic growth (versus 2.6% in the same period in 2018), thereby confirming the positive impacts of the transformation and specialisation of the Healthcare division, the continued expansion and upgrading of the range of offers in the Seniors division. The new activities of Petits-fils (homecare) and Ages&Vie (shared housing for seniors), which were acquired in 2018, are well oriented and are progressing favorably.

• In Germany, revenue was up 5.5% (versus 3.8% in the same period in 2018), driven by an acceleration of organic growth of 4.7% (versus 3.7% in Q3 2018) as a result of the ramp-up of recently opened facilities, control of the care mix and improved revenue management.

• Benelux³ now includes the activities of Belgium and the business of Stepping Stones in the Netherlands. Revenue in this zone increased by 22.3%, of which 6.9% was organic growth. Belgium is benefiting from the favourable impacts of extensions and relocations and from the opening of flagship facilities.

• In Italy, revenue rose by 8.2%, of which 2.7% organic growth, driven primarily by acquisitions made over the past year which have enabled the business mix to diversify (e.g. Sanem Group in June 2019: outpatient care).

In the first nine months of the year, revenue totalled €2,677.6 million, up 8.2%, of which 3.8% was organic growth.