Korian — Capital/Financing Update 2020

Jun 19, 2020

PRESS RELEASE

Paris, 19 June 2020

Marking a new milestone in its commitment to social and environmental responsibility, Korian has issued €173 million of 8-year notes through its first Sustainability Linked Euro Private Placement

Korian, the leading European care and support services group for elderly and fragile people, has successfully issued its first Sustainability Linked Euro PP, amounting to €173 million of 8-year notes.

When publishing its annual results on 28 February 2020, Korian presented 15 quantitative and measurable ESG¹ commitments in line with the main aspects of its "In Caring Hands" corporate project (Autonomy of elderly and vulnerable people - Quality at work - Making a positive contribution to ageing well - Engaging in local communities - Reducing carbon footprint), thereby showing its dedication to its customers, employees and all stakeholders.

In line with that approach, Korian decided to carry out a Sustainability Linked Euro PP, which links part of its long-term financing with the fulfilment of three of those key commitments between now and 2023:

• Achieving ISO 9001 certification across all its facilities in Europe,
• Doubling the proportion of staff members participating in qualifying training programs,
• Reducing its direct and indirect CO² emissions.

Depending on the extent to which each of those targets are met, the interest rate on the notes may be increased or reduced by up to 20bp. If the interest rate is increased, half of the increase will be allocated to internal compensatory measures and/or paid to one or more external partners (such as associations or NGOs), with the other half being paid to investors. Korian's fulfilment of the commitments concerned will be checked annually by an independent third party when the Group's Statement of Extra-Financial Performance is reviewed.

The funds raised in the placement will be used for the Korian's general funding purposes. The notes, which have been bought by renowned institutional investors, extend the average maturity of Korian's debt and diversify its funding sources. They also show the market's confidence in the Group's credit quality and in its ambitious social and environmental responsibility strategy.

¹ ESG : Environmental-Social-Governance

PRESS RELEASE

The amount raised is the largest ever for a Sustainability Linked Euro PP, confirming investors' support for Korian's ESG commitments.

It was also the first Sustainability Linked Euro PP to be carried out following the publication of the Sustainability-Linked Bond Principles² by ICMA (International Capital Market Association) in early June 2020, and the placement was structured in line with those principles.

The notes will be listed on Euronext Access and settlement is scheduled to take place on 29 June 2020.

Société Générale was the Global Co-ordinator, Sustainability Structurer and Joint Arranger of the transaction, and CIC Market Solutions was the other Joint Arranger.

White & Case advised Korian and CMS Francis Lefebvre Avocats advised the arrangers.

Next event

22 June 2020 Annual General Meeting (closed-door session)

Next publication

30 July 2020: first-half 2020 revenue and earnings (after the market close)

² https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/June-2020/Sustainability-Linked-Bond-PrinciplesJune-2020-090620.pdf

PRESS RELEASE

About Korian

Korian is the leading European care and support services group for elderly and fragile people. www.korian.com

Korian has been listed on Euronext Paris Section A since November 2006 and is included in the following indices: SBF 120, CAC Health Care, CAC Mid 60, CAC Mid & Small and MSCI Global Small Cap

Euronext ticker: KORI - ISIN: FR0010386334 – Reuters: KORI.PA – Bloomberg: KORI.FP

INVESTOR RELATIONS PRESS CONTACT

Sarah Mingham VP Investor Relations and Financing sarah.mingham@korian.com Tel: +33 (0)1 55 37 53 55

Carole Alexandre Deputy Head of Investor Relations carole.alexandre@korian.com Tel: +33 (0)7 64 65 22 44

Marjorie Castoriadis Head of Media Relations

marjorie.castoriadis@korian.fr Tel: +33 (0)7 63 59 88 81