Earnings Release • Jan 28, 2009
Earnings Release
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ORPEA, a leading player in Long-Term Care (nursing homes), Post-Acute Care and Psychiatric Care, today announced its full-year 2008 sales which ended 31st December.
| Annual | Quarterly | |||||
|---|---|---|---|---|---|---|
| In €m IFRS |
2008 | 2007 | ∆ | Q4 2008 | Q4 2007 | ∆ |
| France | 613.0 | 493.6 | +24.2% | 162.4 | 135.1 | +20.2% |
| % of total sales | 87% | 91% | 86% | 89% | ||
| International | 88.4 | 51.1 | +72.8% | 27.4 | 17.4 | +57.5% |
| % of total sales | 13% | 10% | 14% | 11% | ||
| Belgium | 37.3 | 12.0 | 13.3 | 4.9 | ||
| Spain | 26.8 | 23.6 | 7.0 | 6.4 | ||
| Italy | 15.9 | 9.6 | 4.8 | 4.6 | ||
| Switzerland | 8.3 | 5.9 | 2.3 | 1.5 | ||
| Total sales | 701.4 | 544.8 | +28.7% | 189.8 | 152.5 | +24.5% |
| Organic growth | +13.4% | +15.0% |
Yves Le Masne, Chief Operating Officer, commented: "The momentum of our activity continued at a particularly dynamic rate during the 4th quarter of 2008, notably with organic growth of +15%. This remarkable performance is the result of an occupancy rate that remains very high in all mature facilities combined with the rapid and buoyant growth of facilities currently being opened.
Yet again, the 4th quarter's growth confirms the independence of ORPEA's activity vis-à-vis the economic and financial environment, partly because of this sector's trends, but also because of the strategic locations of the Group's facilities and a meticulous and proactive Quality policy.
Hence, over FY 2008, ORPEA reported record sales of €701m, €36m above its initial guidance, within a context of ongoing solid profitability."
The annual satisfaction survey, an independent study anonymously carried out amongst residents and their families in late 2008, shows a further increase in the rate of overall satisfaction: 91.6% of residents and families are satisfied or very satisfied by the quality of life and the services in ORPEA's facilities (vs. 90.9% in 2007), both in terms of lifestyle and surroundings and in terms of care, as well as the attention paid to residents by staff. This survey also reveals the percentage of residents and families who would recommend ORPEA facilities to others: 93.6% (vs. 92.9% in 2007).
Within the framework of the pursuance of an optimisation strategy for our numerous facilities, ORPEA sold, over recent months, €70m of property in conditions close to those seen historically, despite the current economic and financial context. These operations were facilitated, on the one hand, by the substantial durability of the rents offered by ORPEA and, on the other hand, by the decrease in borrowing rates that is enabling investors to have access to attractive financing.
These sales confirm the appeal, for a certain type of long-term investor, of the investment profile offered by ORPEA: modern buildings in strategic locations, high visibility in terms of the continuity of tenants over tens of years and a guarantee of the optimum maintenance of buildings.
On top of these direct divestments, ORPEA has set up an OPCI property fund. Following the granting of an AMF visa in December, this structure has been legally operational since 21st January 2009.
The some twenty ongoing construction projects, which will enable the opening of new facilities from 2009, represent:
In accordance with its practices, on 24th March 2009 ORPEA will issue an update on the developments achieved since 30th September 2008 and will announce its FY 2009 sales guidance. However, in a high-visibility sector, the Group can already confidently state that it expects satisfactory increases in sales and profitability over FY 2009.
Furthermore, the Group is serenely reaffirming its 2011 sales target of over a billion euros emanating from its current network of facilities and its growth reservoir of over 7,600 beds under construction or being renovated.
Chairman and Chief Executive Officer Dr Jean-Claude Marian concluded: "In 2008, ORPEA maintained a buoyant growth momentum, independently of the evolution of the economic context, thanks to the solid pillars of its business model:
In 2009, the Group will pursue this same cautious and meticulous development, profitable growth and job creating strategy whilst prioritising the Quality of the care provided to its residents and patients."
The dates given below are indicative only. Press releases will be published before the market opens.
| Event | Date | ||
|---|---|---|---|
| Update on development and 2009 sales target | Tuesday 24th March 2009 | ||
| 2008 Full-year results | Tuesday 28th April 2009 | ||
| 2009 Q1 sales | Wednesday 6th May 2009 | ||
| 2009 H1 sales | Wednesday 15th July 2009 | ||
| 2009 Half-year results | Tuesday 8th September 2009 | ||
| Update on development | Tuesday 13th October 2009 | ||
| 2009 Q3 sales | Tuesday 27th October 2009 |
About ORPEA (www.orpea.com): Listed on Euronext Paris since April 2002 and elected to the Deferred Settlement Service, the ORPEA group is a leading player in the Long-Term Care and Post-Acute Care sectors. As of 30th September 2008, the Group has a unique European network of healthcare facilities, with 23,656 beds (19,147 of them operational) across 251 sites, including:
18,595 beds in France: 15,081 operational (including 2,504 being renovated) + 3,514 under construction, spread across 204 sites.
5,061 beds in Europe (Spain, Belgium, Italy and Switzerland): 4,066 operational (including 635 being renovated) + 995 under construction, spread across 47 sites.
Listed on Euronext Paris Compartment B of NYSE Euronext - ISIN: FR0000184798 Member of the SBF 120 index and SRD Reuters: ORP.PA - Bloomberg: ORP FP
NewCap. ORPEA Emmanuel Huynh/Steve Grobet Yves Le Masne Tel: +33 (0)1 44 71 94 94 COO [email protected] Tel: +33 (0)1 47 75 78 07
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