EMEIS PURSUES ITS REFOUNDATION

2023 Consolidated Financial Results of ORPEA S.A. - Seite 3

Operating profitability continued to be affected by the newly implemented care and support measures, persistently high inflation in 2023 that could not be passed on through pricing changes, and an occupancy rate in French nursing homes that remained below its normative level. EBITDAR came to €696 million over the year, compared with €780 million in 2022. The EBITDAR margin stood at 13.4%, with the margin for the second half up 0.4 percentage points on the first half.

Recurring operating expense amounted to €16 million, compared with €49 million in 2022.

The operating loss came to €919 million, after taking into account non-recurring items totalling €903 million, mainly comprising:

1. Charges resulting from asset impairment tests in accordance with IAS 36 amounting to €830 million, including €438 million in respect of IFRS 16 right-of-use assets. For the impairment tests under IAS 36, in 2023 the Group adapted its method in order to move towards a post-IFRS 16 approach. It should be noted that impairment of right-of-use assets under IFRS 16 does not change the value of real estate assets held by the Company, but results in a reduction in the value of the corresponding right-of-use assets under IFRS 16, which are presented discretely in the balance sheet.
2. Non-recurring expenses related to the management of the crisis, for €74 million. This amount includes financial restructuring costs not allocated to additional paid-in capital.

Reported profit before tax came to €1,400 million, after taking into account net financial income of €2,319 million.

This includes an extraordinary financial income (with no cash and no tax impact) of +€2,850 million relating to the conversion of ORPEA S.A.'s unsecured debt for 3.8 billion euros, implemented as part of the financial restructuring.

Attributable net profit for the year came out at €1,355 million.

3- Valuation of the real estate portfolio

As of December 31^st, 2023, the estimated value of the real estate portfolio was €6.3 billion. This amount includes €5.3 billion in assets valued by the independent appraisers⁴, covering a total of 414 sites, most of which are located in France. The appraisals were based on an average real estate asset yield of 5.6%, versus 5.1% at end-2022, reflecting current conditions in the healthcare real estate market.