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ORPEA

Legal Proceedings Report Nov 22, 2022

1578_iss_2022-11-22_7fadb5f9-ccdf-47b0-829e-c1297ba7aae1.pdf

Legal Proceedings Report

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Puteaux, 22 November 2022, 8:00 a.m.

WITHIN THE FRAMEWORK OF ITS TRANSFORMATION PLAN, ORPEA HAS DECIDED TO REPAY ALL OF THE SUMS CLAIMED BY THE CAISSE DE SOLIDARITÉ POUR L'AUTONOMIE (CNSA - THE INDEPENDENT-LIVING SUPPORT FUND) AND PROPOSES SOLUTIONS TO ADDRESS THE ISSUE OF STAFF "ACTING AS"

With the "With you and for you, changing ORPEA!" plan, presented on 15 November, Laurent Guillot, CEO, backed by his new management team, resolutely committed to transforming the company. This plan places at its core the care and assistance of our patients, residents, their families and our employees. It aims to rebuild an ethical and responsible company.

That is why, with a view to turning the page on errors of the past and returning to full cooperation with the authorities, ORPEA has decided to reimburse all of the sums due to the CNSA, amounting to 55.8 million euros1 based on currently available information, and to implement solutions to address the issue of assistants "acting as" professional caregivers.

As part of its transformation plan, ORPEA has in fact announced a switch to an ambitious Human Resources recruitment, retention and training policy for our employees.

First, to ensure better quality of care, notably with more continuous presence with our patients and residents, but also to reduce structural recourse to "acting as" staff, ORPEA is committed to a significant recruitment plan which is already reaping results. Indeed, since September, 800 recruitments on permanent contracts per month were carried out, significantly exceeding the commitment made of 550 recruitments per month. Furthermore, ORPEA has launched a global work/study recruitment initiative, to increase the number of apprentices recruited from 200 in 2022 to 1,000 in 2024.

Also, ORPEA has decided to make training and skills development one of its priorities and to ensure 80% participation in professional training from 2023.

Lastly, ORPEA will offer to all "acting as" staff, support and financial coverage of their qualifying training to become registered caregivers. As a result, by 2023, ORPEA will offer to 1,000 "acting as" assistants training to become professional caregivers via apprenticeships (PRO A) or Validation of Professional Experience (VAE).

1 Leading to an additional provision of €30.1 million in accounts closed 31 December 2022. The Company's prior stance is explained in the press releases dated August 2, August 30 and September 28, 2022, as well as in the 2021 Universal Registration Document and the 2022 Half Year Financial Report.

Longer-term and to limit as much as possible recourse to "acting as" positions, several avenues could be explored with all of the sector and with public authorities:

  • Simplification of files and the VAE process, notably with multiple VAE juries;
  • Shorter training courses giving the right to integration within a care section;
  • Definition, by Decree, of acts of the professional caregiver who could then delegate under supervision, to unqualified assistants.

These solutions and others which should be defined collectively by sector players and public authorities, should reduce the use of "acting as" staff by all players, either in private profitmaking entities or public not-for-profit organisations.

The decision to clear our balance and pay all of the sums due to the CNSA, the commitments assumed and the proposals made are part of the approach described by the ORPEA group in its transformation plan to carry out its missions within a serene and calm framework, via a spirit of constructive dialogue with all of our stakeholders.

About ORPEA

ORPEA is a leading global player, expert in the care of all types of frailty. The Group operates in 22 countries and covers three core businesses: care for the elderly (nursing homes, assisted living, home care), post-acute and rehabilitation care and mental health care (specialized clinics). It has more than 72,000 employees and welcomes more than 255,000 patients and residents each year.

https://www.orpea-group.com/ ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and is a member of the SBF 120, STOXX 600 Europe,

MSCI Small Cap Europe and CAC Mid 60 indices.

Media Relations

ORPEA Image 7 Isabelle Herrier-Naufle Charlotte Le Barbier Directrice Relations Presse Tel.: 06 78 37 27 60 Tél. : 07 70 29 53 74 [email protected] [email protected]

Laurence Heilbronn Tél. : 06 89 87 61 37 [email protected]

Investor Relations ORPEA NewCap

Benoit Lesieur Dusan Oresansky Tél. : 01 44 71 94 94

[email protected] [email protected]

Toll free tel. nb for shareholders: +33 (0) 805 480 480

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