2016 FULL-YEAR RESULTS - Korian Groupe...of greenfields & relocation ≈50+ projectsin the next 3...
Transcript of 2016 FULL-YEAR RESULTS - Korian Groupe...of greenfields & relocation ≈50+ projectsin the next 3...
2016FULL-YEARRESULTS
March 16ᵗʰ, 2017
2016OVERVIEW
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS
2016: A NEW STEP IN KORIAN INTERNATIONAL EXPANSION
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REVENUE (€M)
478 520 608781 851 923 1,015 1,108
1,356
2,2222,579
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Casa Reha
IPO
Segesta
Phönix Curanum
MedicaSenior Living Group
Foyer de Lork
Medidep
2,987
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March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 4
A PERFORMING EUROPEAN LEADER IN THE SENIOR CARE AND SERVICE MARKET
4 BUSINESS LINES
VALUE CREATION THROUGH A JOINED-UP APPROACH
• Deploying enriched client paths
• Leveraging our strong asset base and interconnecting business
≈72,000 beds
715 facilities
International business
47% of revenue
4 countries with #1 or #2 market positions
€2,987 M revenue# IN THE PRIVATE NURSING HOME SECTOR
4 countriesrepresentingmore than 50%of the EU population >75
#1
#1
#2
#2Nursing Homes
Service Flats
Home Care
Post AcuteClinics
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2016: A YEAR OF STABILISATION AND RECOVERY
Strong focus
on “basics” to make
the company fit
for the future
Solid financial performance in line with objectives
EBITDA margin in line
with target
14.1%vs 13.3% published in 2015
Above restated guidance
of 14.0% (Sept. 2016)
Top Line objective
achieved
≈€3 BnSales growth: +15.8%
including +3.8% organic
Strong international organic
growth dynamic: +6.7%
2016 ACHIEVEMENTS
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2016 TOP ACHIEVEMENTS
STABILISE & CONSOLIDATE
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Stabilise and reinforce Korian management team
Improve monitoring & control, performance management and IT
Start portfolio optimization
Stabilise German business and launch Casa Rehaintegration
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2
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4
Design 5-year strategic plan “Korian 2020”
Secure financing for the next 5 years
Deliver value creative Bolt-On operations
Revisit Korian Real Estate strategy
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PREPARE FOR THE FUTURE
A STABILISED AND REINFORCED MANAGEMENT TEAM
Group Management Board Renewed Group Management
Board
Reinforced country
management teams
on key positions (Operations,
HR, Sales and Marketing)
Creation of a “top 50”
community
CEO
FINANCE
L.Lemaire
HR
R.Boyer
MEDICAL & QUALITY
D.Armaingaud
MARKETING COM.
C.Jolly
REAL ESTATE
F.Durousseau
FRANCE “SENIOR”
CA.Pinel
FRANCE “SANTE”
N.Merigot
GERMANY
R.Stiller
ITALY
M.Rossini
BELGIUM
B.Bots
S.Boissard
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STABILISE & CONSOLIDATE
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An organization promoting
decentralization and
empowerment of the network
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ACTION PLAN TO CONSOLIDATE MONITORING & CONTROL, PERFORMANCE MANAGEMENT AND IT
MONITORING & CONTROLPERFORMANCE
MANAGEMENTIT
Comprehensive monthly reporting review (including cash performance & reforecast process)
New internal control Group rules framework deployed
Purchasing actions (first European categories…) and efficiency initiatives (energy & fluids, maintenance…)
Synergies over delivered on Korian/Medica merger(15M initially planned by end 2016)
Stabilisation of critical situations (France and Germany)
Catch up and upgrading
• CRM (France Italy Belgium)• New platform for operations
(Italy and France Santé)
STABILISE & CONSOLIDATE
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FIRST PORTFOLIO OPTIMIZATION ACTIONS
STABILISE & CONSOLIDATE
Disposal
of the French
loss-making facility
(CHC) finalized
Operations
discontinued
in 5 non performing
facilities in
Italy and Germany
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GERMANY: STRATEGIC MARKET FOR KORIAN
HIGH GROWTH POTENTIAL MARKET
• Largest senior market in Europe (9 M people > 75 years) with the most robust economy
• Very favourable demographics: > 75 Y: +3%/year + People requiring care: +4.5%/year
• Sound and growing financing for Dependency (32 bn public funding +20% vs 2016)
• Opportunity to deploy new business models combining Dependency & Healthcare financing
KORIAN GERMANY WELL POSITIONED
• Korian by far #1 on the private senior market (>1.5 x # 2)
• Already a broad portfolio of activities: nursing homes + service flats + home care and a large network of 222 facilities to leverage
• A strong growth potential over the next 5 years
STABILISE & CONSOLIDATE
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GERMANY: ADAPT OUR BUSINESS TO NEW REGULATIONS
PRICING &
STAFF KEYS
REAL ESTATE
PSG II & III (new dependency classification and new rate scheme starting 1/1/2017)
• Rate renegotiation completed by Dec.2016 for all facilities
• Price effect in 2017 : +2.0% to 2.5% (partly offset by increased staff keys for higher dependency level)
LHG (new rules relative to real estate and comfort & equipment standards)
Bavaria• Starting 2017 for new facilities; progressive application over the next 5 years
for existing facilities• No business impact foreseen in 2017
NRW• Starting mid 2018• 28 facilities to be adapted with some transitory business impact in 2017
Bade-Wurtemberg• Starting 2019• 11 facilities to be adapted with some transitory business impact in 2018
Total Capex required
≈€15 Mover 3 years
Total estimated net impact
≈-300 to -800 beds
STABILISE & CONSOLIDATE
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PERFORMANCE
MANAGEMENT
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GERMANY: “SUCCESS 2020” EFFICIENCY PLAN STARTEDWITH FIRST FINANCIAL BENEFITS IN H2
INTEGRATION PROCESS
IT platform stabilized and ready for migration start
Global integration roadmap designed (organization, headquarter, key positions, IT, SG&A reduction…) for the next two years
Occupancy rate progressing
in 2016 on mature scope
on both entities
Significant interim reduction
at Curanum: H2 2016 divided by 2 vs H2 2015
Purchasing action plan
Specific plan implemented
for the less performing facilities
STABILISE & CONSOLIDATE
First financial benefits in H2:
EBITDA margin H2 2016 >H2 2015
SUCCESS 2020 = A COMPREHENSIVE EFFICIENCY PLAN ENCOMPASSING
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DESIGN “KORIAN 2020” 5-YEAR STRATEGIC PLAN
PREPARE FOR THE FUTURE
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FINANCING SECURED & HEDGED FOR THE NEXT 5 YEARS
New credit facility
signed for
€1,300 M until July 2021
New Euro Commercial
Paper program of
€300 M
Solid interest rates
hedging strategy
implemented in H2
PREPARE FOR THE FUTURE
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Strengthening market position in Belgium from #3 to #2
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DELIVER VALUE CREATIVE BOLT-ON ACQUISITION
PREPARE FOR THE FUTURE
18 new facilities + Home Care business entry
Innovative “integrated concept” to be replicated:
Nursing Home + Service Flats + Home Care pilot concept
for the rest of the Group
Robust pipe-line for the years to come (1,400 beds)
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Acquisition of
“FOYER DE LORK
+ OTV” in Belgium
KORIAN REAL ESTATE PORTFOLIO
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Ownership: 14%of operating assets
GEOGRAPHICAL SPLIT OF OWNERSHIP(IN €M)
77%
11%
11% 1%
NB: All figures as of 30th June 2016
437,000 sqm /
98 buildings
GEOGRAPHICAL SPLIT OF RENTS(IN SQM)
39%
42%
8%
11%
Real Estate portfolio valuation :
€980 M
Rentals: 86%of operating assets
80% of rented assets owned by institutionalinvestors
3.3 million sqm /
614 buildings
Length of rentals:
9 to 27 years
OWNERSHIP RENTS
France
Germany
Italy
Belgium
France
Germany
Italy
Belgium
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REVISIT KORIAN REAL ESTATE STRATEGY
KEY PRIORITIES ACTION TO COME
PREPARE FOR THE FUTURE
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• Regain control over the “development phase” of greenfields & relocation
≈50+ projects in the next 3 years
• Be “asset smart” rather than “asset light”:Owning quality asset when gap between yield
and fixed interest rate > 300-350 bpFavoring active portfolio management
to speed up brownfield reconfiguration
• Up to €500 M to be invested in real estate in the next 3 years (subject to market conditions)
ownership rate increase from ≈14% up to ≈20%
• Financed through Real Estate Debt (€900 M permitted vs €370 M utilized end 2016)
very limited impact on adjusted leverage
• Creation of a dedicated asset vehicle by country enabling future partnership and arbitration under
optimized conditions
• Rents renegotiation action plan defined on a first set
of ≈150 buildings 5% savings expected by 2021
2016 FINANCIALS
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REVENUE BY COUNTRY
Network increased by 12.926 beds of which 10.182 beds from Casa Reha acquisition
In France, organic growth driven by the nursing home segment. Flat rehab clinic segment revenue due to regulatory pricing decrease
In Germany and Belgium, organic growth is driven by ramp up of new facilities and improved occupancy rate on mature facilities
In Italy, revenue evolution driven by portfolio optimization actions (-4 facilities)
REVENUE
2015(€M)
2016(€M)
Growth(%)
OrganicGrowth
(%)
France 1,535.9 1,572.5 2.4% 1.9%
International 1,043.4 1,414.4 35.5% 6.7%
Germany 519.0 852.3 64.2% 8.4%
Italy 306.1 302.7 -1.1% 1.8%
Belgium 218.3 259.4 18.8% 9.1%
Total 2,579.3 2,986.9 15.8% 3.8%
* See definitions
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 21
EBITDAR PERFORMANCE BY COUNTRY
Solid progression in France (+ 50 bp)strongly supported by efficient purchasing actions
Very strong progression in Belgium (+140 bp) thanks to ramp up acceleration and very efficient cost management
Italy grew by +50 bp excluding the opening impact of Brescia facility
Excluding Germany, EBITDAR progressing +50 bp
In Germany, situation has improved in H2 2016: +180 bp vs H2 2015 / -350 bp in H1 2016 vs H1 2015
EBITDAR value EBITDAR % of sales
2015(€M)
2016(€M)
Growth(%)
2015(% of sales)
2016(% of sales)
Change
France 410.1 482.0 4.4% 26.7% 27.2% 0.5%
International 270.1 369.2 36.7% 25.9% 26.1% 0.2%
Germany 144.2 230.2 59.7% 27.8% 27.0% -0.8%
Italy 70.6 69.5 -1.5% 23.1% 23.0% -0.1%
Belgium 55.4 69.5 25.5% 25.4% 26.8% 1.4%
Total 680.2 797.2 17.2% 26.4% 26.7% 0.3%
* See definitions
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 22
OPERATING PERFORMANCE
* See definitions
Excluding Germany, staff costs grew by 30 bpstable in France / declining in Belgium /
progressing in Italy because more internal staff in 2016 vs externalized (stable on a global basis)
Staff costs in Germany stabilized: flat in H2 2016 vs H2 2015 to be compared with an increase of +440 bp in H1 2016 vs H1 2015
Other charges: improvement of 140 bp (120 bp excluding €7M favorable non recurring effects)
External rents:• minored by €5 M non recurring favorable
effect• Do not include rental recurrently reclassified
under IAS 17 for Casa Reha
Excluding the +€12 M (€7 M + €5 M) non-recurring items, underlying EBITDA margin is 13.7%
2015(€M)
2016(€M)
Change(%)
Revenue* 2,579.3 2,986.9 15.8%
Personnel costs
% of sales
(1,319.6) (1,561.0) 18.3%
51.2% 52.3% 1.1%
Other charges% of sales
(579.5) (628.7) 8.5%
22.5% 21.0% -1.4%
EBITDAR% of sales
680.2 797.2 17.2%
26.4% 26.7% 0.3%
External rents
% of sales
(338.2) (375.0) 10.9%
13.1% 12.6% -0.6%
EBITDA% of sales
342.0 422.2 23.5%
13.3% 14.1% 0.9%
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 23
2016 EBITDA MARGIN BRIDGE
13.2%
14.1%
≈+0.4%ONE-OFF GAINS
As Reported2016 FY
Underlyingperformance 2016 FY
2016 FY initial roadmap*
14.0%
Last September 2016 FY revised roadmap
13.7%Same impact as in H1
≈+0.4% EXTRA IAS17 IMPACT VS MARCH 2016 HYPOTHESES
≈+0.1% FROM OPERATIONS
Mainly events from H1
* On the basis of 2016 yearly Group expectations from March 2016
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PROFIT & LOSS
Depreciation & P. evolution mainly linked to consolidation of German acquisitions and IAS17 accounting rules
Other net operating charges includes non recurring items related to the French loss-making facility disposed, complementary provisions on German HR past events and Germanreorganization costs eligible for booking in 2016
Financial result evolution is predominantly driven by:• German acquisitions (≈€40 M), which includes
significant financial charges related to IAS17 real estate debt
• Exceptional charges for €17 M mainly non cash
Income tax includes the one-time net favorable impact (+€72 M) of the voted change in the French income tax rate (28,9% by 2020) on our net differed tax liabilities (no cash impact)
IAS17 unfavorable impact on net profit: -€5 M (no cash impact)
Net Profit restated from tax impact & IAS17: €65 M, +10% vs 2015
2015(€M)
2016(€M)
Change(%)
Revenue* 2,579.3 2,986.9 15.8%
EBITDA 342.0 422.2 23.5%
Depreciation & Provisions (123.8) (156.0) 26.0%
EBIT
% of sales
218.2 266.3 22.0%
8.5% 8.9% 0.5%
Other net operating charges (39.2) (25.4) -35.4%
Operating income
% of sales
179.0 240.9 34.6%
6.9% 8.1% 1.1%
Financial result (65.0) (123.3) 89.9%
Income Tax (53.0) 15.6 -129.4%
Minority interests (2.3) (1.9) -18.2%
Net profit Group share 58.7 131.3 123.7%
* See definitions
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 25
CHANGE IN NET DEBT
Change in WCR: positive evolution despite French negative regulatory impact
Operating Capex = 2.3% of revenue
Development Capex & Bolt On include Foyer de Lork operation
Real Estate Investments corresponds to an acceleration in the detention with 6 key operations mainly realised in France
Strategic acquisitions mainly correspond to scope evolutions in Germany
Change in perimeter is mainly linked to Casa Reha consolidation and IAS17new debt
2016(€M)
Cash flow after cost of financial debt 206.1
Change in WCR 4.2
Operating Capex (maintenance…) (69.8)
Free Cash Flow 140.5
Development Capex & Bolt Ons (87.4)
Net Free Cash Flow 53.0
Dividends paid (28.7)
Real Estate Investments (52.0)
Strategic acquisitions (366.8)
Net debt impact of change in perimeter & others (276.0)
Change in Total Net Debt (670.5)
Opening Total Net Debt 1,644.9
Closing Total Net Debt 2,315.4
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 26
FINANCIAL POSITION AS OF 31 DECEMBER 2016
Syndicated loan increase related to the term loan of new credit facility signed in July 2016
Decrease in cash and cash equivalent is mainly due to Casa Reha acquisitioncashing out
Increase in Real Estate Debtis driven by accounting impact of acquisition of Casa Reha under IAS17 rules (€240 M)
Group Real Estate Debt is €370 M excluding IAS 17 operating leases
Average cost of Financial debt + Real Estate Debt (excl. IAS 17) ≈ 3.0%
Restated leverage*: 3.9x (covenant max: 4.5x)
31/12/2015(€M)
31/12/2016(€M)
Change(€M)
Syndicated loan 550.0 650.0 100.0
Bonds & bilateral debt 998.2 1,075.9 77.7
Revolving credit facility - - -
Treasurery loans, bank overdraft & others
18.1 61.5 43.4
Gross Financial debt 1,566.3 1,787.4 221.1
Cash & cash equivalent 518.8 309.9 (208.9)
Net Financial debt 1,047.5 1,477.5 430.0
Real Estate Debt 597.4 837.9 240.5
Total net debt 1,644.9 2,315.4 670.5
* See definitions
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 27
SECURED & WELL HEDGED FINANCING
• A new Syndicated loan of €1,300 M maturing July 2021 implemented in July 2016
• €650 M of undrawn committed RCF line end 2016
• €300 M of Euro Commercial Paper program
of which €250 M undrawn
• No major repayment before 2021
• Authorized Real Estate Debt = €900 M
€370 M drawn
€530 M available for new operations
Secured Financing Well hedged Financing
• Additional interest rates hedging implemented in October 2016 at very favorable conditions
• If interest rates increase 115 bp by 2021,
the Group financing rate would remain below
the level anticipated for 2017 (≈3%)
(based on the debt profile of the “plan K 2020”)
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 28
GROUP DEBT MATURITY PROFILE
AVERAGE MATURITY ≈5 YEARS
NO MAJOR REPAYMENT BEFORE 2021
Other debt Syndicated loan Euro PP 2015 SSD 2015
0
200
400
600
800
1 000
2017 2018 2019 2020 2021 2022 2023 2024 2025
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 29
BALANCE SHEET
Major changes in Goodwill,tangible fixed assets, provisions and Net financial debt are mainly driven by Casa Rehaand to a lower extent Foyer de Lork consolidation
31/12/2015(€M)
31/12/2016(€M)
Change(€M)
Goodwill 1,707.3 2,175.4 468.1Intangible fixed assets 1,701.0 1,717.6 16.7Property, plant & equipment 1,295.6 1,670.2 374.7Long-term financial assets 31.2 32.6 1.4Non-current Assets 4,735.0 5,595.9 860.8Deferred tax assets (541.9) (490.6) 51.3Working capital requirement (463.2) (526.0) (62.8)Assets held for sale 0.1 1.9 1.8Total Assets 3,730.1 4,581.2 851.1
Total shareholder's equity 1,933.9 2,036.9 103.0Provisions for pensions 49.6 58.6 8.9Other provisions 82.0 153.8 71.8Financial instruments 19.7 16.6 (3.1)Total Net debt 1,644.9 2,315.4 670.5Total liabilities 3,730.1 4,581.2 851.1
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 30
DIVIDEND PROPOSED FOR 2016
€0.60 / per share
with a share payment option
OUTLOOK 2017
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS
FOCUS ON
“STABILISATION & RECOVERY”
2017: BUILDING THE NEW KORIAN
2016
START BUILDING THE NEW KORIAN
1st YEAR OF KORIAN 2020
5-YEAR PLAN
2017
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• Strong focus on organic growth in France and Italy with dedicated 3-year action plan
• Accelerate Home Care business development: +50% (mainly in Germany and Belgium)
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2017 KEY PRIORITIES
BOOST VALUE-ADDED GROWTH
IMPROVE OPERATING PERFORMANCE
OPTIMIZE REAL ESTATE MANAGEMENT
INVEST IN OUR PEOPLE
FOCUS INNOVATION ON MEDICAL CARE AND DIGITAL
• Pursue rental renegotiation (new set of ≈50 buildings)
• Increase owned portfolio (10-15 potential acquisitions)
• Structure dedicated asset vehicles
• Germany: implement Success 2020 performance plan• Purchasing action plan: in line with K2020 roadmap• IT: pursue catch up actions to improve productivity
• “Positive Care by Korian” to be deployed in 150 facilities
• “Korian Generation” App to be deployed in all French NH by Q1
• Train: E-learning program throughout the company / Training
and development program for facility managers / Apprenticeship
• Retain: Building professional communities (physicians, nurses, cooks…)
France Senior France Santé
Double French organic growth momentum to reach
4% within 3 years
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 34
REVITALISE ORGANIC GROWTH: FOCUS IN FRANCE
OUR GOAL
SPECIFIC PLAN DESIGNED
BY BUSINESS SEGMENT
FRANCE SENIOR
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 36
KORIAN FRANCE SENIOR : 1ST NURSING HOME NETWORK IN FRANCE
≈24,000 beds
294 Nursing Homes of which 60% in cities >100k inhabitants
Broad range of complementary offer and services
≈14,800 employees
Occupancy Rate >95%
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 37
3 KEY LEVERS TO BOOST ORGANIC GROWTH
Upgrade our Customer
Value Proposition
• Clarify and harmonize our offer
• Develop adapted services for
each target groups
• Improve “value for money” perception
• Leverage average price
through revenue management
approach
• Increase direct sales and build
a complete customer centric
approach
• Reconfiguration program with
some relocations on 50%
of the sites
• Leverage residual
constructability potential
to develop add. beds
and assisted living ≈1000 bed/unit openings
INNOVATION & DIGITAL
Increase Commercial
Performance
Fasten
Network Growth
Opportunities
of additional
organic growth55%
of additional
organic growth45%
38
FRANCE SANTE
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 39
KORIAN FRANCE SANTE
Geographic concentration: 50% of facilities are located
in three regions: PACA, Rhône-Alpes and Ile-de-France
Type of facility Number
Acute care and rehabilitation facilities 68
o/w specialised clinics 36
Psychiatry 7
Hospitalisation homecare 6
TOTAL 81
#2 operator in the commercial private sector
with 15% of the market by number of facilities
Specialised services focusing on geriatrics
and orthopaedics rehabilitation
In the last 3 years, decreasing rates and capacity limitation have constrained the revenue growth
Geographic distribution of Korian post acute and rehab. facilities
Comprehensive
Comp. - Geriatrics
Other
Comp. - Neurology
Neuro + Musculo-Skeletal
Hospitalisation homecare
≈5,200 employees
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 40
GROWTH OPPORTUNITIES
Increasing demandfor services
Development of out-patient care
Demand for higher quality
Activity based charging (DMA)
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 41
4 KEY LEVERS TO BOOST ORGANIC GROWTH
Restructure
network
≈ 20 facilities
restructured supporting
case mix improvement
100% of facilities providing
out-patient care
Services to account for 20%
of total revenue
Develop out-patient
care services
Develop hospitality
services
90 % of facilities with HAS
A and B certification
Maintain
high-quality
Revenue Growth >5%
with H2 expected to be more dynamic than H1
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 42
2017 OBJECTIVES IN LINE WITH 5-YEAR PLAN ROADMAP
2017 EBITDA% aligned with K2020 plan
>2,500 new beds
• Greenfields mostly located in Germany and Belgium
• Most of them to be opened in H2
• Investments to support top line acceleration
• Greenfield opening costs and ramp up impact
(Belgium & Germany)
• Full impact of German “Success 2020” expected
from 2018
* As reported. For 2016 based on guidance on recurring as in H1
** For 2016 based on recurring margin expectation
as announced in H1 2016
EBITDA margin ≈13.7%
stable vs 2016 underlying performance
• Strong revenue increase (+15.8%) driven by international expansion and solid organic growth (3.8%)
• EBITDA margin of 14.1% with underlying performance at 13.7% vs 13.3% in 2015
• Solid free cash flow generation with working capital improvement and capex under control
• Group financing secured and well hedged
• Favourable demographics fostering high demand
• Need for enriched services and new approaches
• Leadership position on 4 key European countries
• Further consolidation opportunities
• Basics consolidated in 2016
• First benefits in 2nd half of ambitious efficiency plan deployed in Germany
• Investing on people, innovation and quality
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 43
CONCLUSION
Solid financial performance in 2016, in line with objectives
Korian well positioned to benefit from strong market potential in the next 3-5 years
… and deliver on strategic plan “Korian 2020”…
APPENDIX
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS
REVENUE: including other income.
EBITDAR: the interim performance indicator selected by the Korian group to monitor
the operating performance of its entities. It consists of gross operating surplus
of the operating sectors before leasing expenses.
EBITDA corresponds to the EBITDAR defined above minus rental expenses.
Current net profit/(loss) attributable to owners of the Group: it represents net profit/(loss) attributable
to owners of the Group - (other operating income and expenses + gains and losses on acquisitions
and disposals of subsidiaries)* (1 - standard corporate income tax of 34%), or net profit/(loss)
attributable to owners of the Group restated for non-recurring items.
RESTATED LEVERAGE: (Net debt – Real estate debt) / (EBITDA adj. – (6.5%* Real Estate Debt)).
March 16ᵗʰ, 20172016 FULL-YEAR RESULTS 45
DEFINITIONS
This document was prepared by Korian (the “Company”). The information contained in this document has not been independently verified.
No representation or warranty, express or implied, is made as to, and no reliance should be placed upon, the fairness, accuracy, completeness, or correctness of the informationor opinions contained in this document and the Company does not accept any liability or responsibility in this respect.
This document contains certain statements that are forward-looking. These statements refer in particular to the Company business strategies and growth of operations, future events,trends or objectives which are naturally subject to risks and contingencies that may lead to actual results materially differing from those explicitly or implicitly included in these statements.Such forward-looking statements are not guarantees of future performance and the Company expressly disclaims any liability whatsoever for such forward-looking statements.
Information relating to risks and contingencies relating to the Company are included in the documents filed by the Company with the Autorité des marchés financiers. The Company doesnot undertake to update or revise the forward-looking statements in this presentation to reflect new information, future events or for any reason and any opinion expressed in thispresentation is subject to change without notice.
A detailed description of the business and financial position of the Company as well as the risk factors related to the Company is included in the reference document of the Companyand its 2016 half-yearly financial report, which may be obtained on the website of the Company (www.korian.com). This presentation should be read in conjunction with such documents.
This document does not constitute an offer or invitation to sell or purchase, or any solicitation of any offer to purchase or subscribe for, any shares of the Company. Neither this document,nor any part of it, shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.
Neither this document, nor any copy of it, may be taken, transmitted or distributed, directly or indirectly, in the United States, Canada, Japan or Australia. The distribution of this documentin other jurisdictions may be restricted by law and persons into whose possession this document comes should make themselves aware of the existence of, and observe, any suchrestrictions.
The shares of the Company have not been, and will not be, registered under the Securities Act of 1933, as amended, (the “Securities Act”) and may not be offered or sold in the UnitedStates except pursuant to any exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Company does not intend to register any portionof the proposed offering in the United States, nor does the Company intend to conduct a public offering of its shares in the United States.
This document speaks as of 16 March 2017. Neither the delivery of this document nor any further discussions of the Company with any recipients thereof shall, under any circumstances,create any implication that there has been no change in the affairs of the Company since such date.
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DISCLAIMER