Clariane Strengthens Its Financial Structure to Overcome a Sharply Deteriorated Access to Financing - Seite 2

Philippe Dumont, Chief Executive Officer of Crédit Agricole Assurances, the Clariane Group's largest shareholder, said: "Crédit Agricole Assurances, a long-term shareholder in Clariane, has confirmed its confidence in Clariane's strategic plan adapted to its current financing conditions and actively supports the Group's action plan, enabling it to regain the required room for manoeuvre to reinforce its value creation path and regain the confidence of its investors and all its financial partners.

1. Despite the Group's strong operating and extra-financial performance, access to financing has deteriorated sharply

1.1 Clariane's operating and extra-financial performance to 30 September 2023:

As a reminder, the revenue figures for the 3rd quarter of 2023 published on 24 October 2023 confirmed the resilience of the Group's operating business across its various geographies, marked in particular by solid growth in Group revenue over the first nine months of 2023 (+9.0% on an organic basis), a continued rise in the occupancy rate of nursing homes to 88.9% and the delivery of 58 new or renovated establishments with a total of 1,200 beds.

In the first half of 2023, Clariane's operational resilience was reflected in the stability of EBITDAR at 538.3 million euros (+2.9%) and EBITDA at 285.3 million euros (+0.1%). Despite major changes in the applicable regulatory framework in Germany, the Group generated operating free cash flow of €45 million.

The Group has confirmed its revenue and operating profit objectives for 2023. In addition, the various non-financial indicators, such as the roll-out of quality certification programmes for establishments in each country, the results of patient and resident satisfaction surveys and HR quality indicators (average length of service of employees, implementation of training programmes leading to qualifications, occupational health and safety indicators) are trending favourably, in line with the objectives set for the financial year.

Lastly, the Group has begun to roll out the first initiatives announced as part of the adoption of the status as a purpose-driven company last June, starting with the creation of its corporate university, the setting up of solidarity funds to help employees facing emergency situations and Fil Clariane, a helpline and advice line for carers.

1.2 Recent and significant deterioration in Clariane's access to financing:

Following the publication on 24 October 2023 of the press release on revenue for the 3^rd quarter of 2023, the sharp fall in the share price, relating to the downgrade of its leverage target from 3.5x to 3.8x, raised the concerns of certain financial partners, compromising the finalisation of the two real-estate partnership projects under negotiation and scheduled to be completed by the end of 2023.