EMEIS PURSUES ITS REFOUNDATION

2023 Consolidated Financial Results of ORPEA S.A.

Regulatory News:

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ORPEA (Paris:ORP) :

ORPEA SA publishes its consolidated results for the year ended 31 December 2023¹, which were adopted by the Board of Directors on 16 April 2024.

Revenue saw sustained growth in 2023 (+11% vs. 2022, of which 9.5% organic growth), driven by an overall improvement in the occupancy rate and the opening of 31 new facilities.

Operating profitability continued to be affected by the newly implemented care and support measures, persistently high inflation in 2023 which could not be passed on through pricing changes, and an occupancy rate in French nursing homes that remains below its normative level (despite improving slightly by 1.2 points in the second half of 2023 compared with the first six months of the year). EBITDAR came out at €696 million over the year.

Attributable net profit for 2023 amounted to €1,355 million, including an extraordinary financial income of €2,850 million from the Equitization Capital Increase finalised on December 3^rd, 2023, and a €830 million charge arising from impairment tests on property, plant and equipment and intangible assets in accordance with IAS 36. These two items have no impact on the Company's cash position.

1- Refoundation Plan facilitating progress, and a new identity and corporate purpose

In 2023, the Company pressed ahead with the Refoundation Plan, which is structured around actions resolutely focused on employees and residents, achieving a number of significant results², including:

• in terms of health and safety at work, the work-related accident frequency rate fell 8 points in 2023 compared with 2021;
• the stability of our teams improved, with an increase of 3 percentage points in the proportion of staff on fixed-term contracts and a reduction of 3 percentage points in the rate of staff turnover in France compared with 2022. To make further progress, the Company has set a Group-wide reduction target of 5 percentage points by 2025 of the rate of turnover (average Group level in 2023: 29.3%);
• emeis forged constructive labour relations with renewed employee representative bodies, based on progressive values that are more in touch with events on the ground and with employees' expectations;
• 84% of countries have implemented tools to improve outreach with families;
• 72% of facilities now have a trained ethics and positive treatment correspondent;
• satisfaction indicators are at levels that reflect the ongoing commitment of the teams and the additional resources allocated from 2022 to improve the quality of care and support (satisfaction rate in 2023: 92.5%).

All these actions and the corresponding outcomes result from the Company's transformation project launched in 2022. They will be consolidated in the coming months by both the transformation program “CREATE” (standing for its key principes : “Commitment, Respect, Empowerment, Accountability, Trust, Excellence”) and a CSR roadmap defined with the teams, aimed at structuring, and transforming the Company in the long term, while strengthening the many assets it has developed over the course of its 30-year history, namely the commitment of its teams, its medical expertise, its drive for innovation and portfolio of complementary activities.