Slide 1: 2024 First Half Results
2024 First Half Results August 6, 2024 Sophie Boissard, CEO Philippe Garin, CFO
Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements that involve risks and uncertainties, including those included or incorporated by reference, concerning the Group's future growth and profitability that could cause actual results to differ materially from those indicated in the forward-lo
Slide 3: Agenda
Agenda ■ 01 Highlights of the First Half ■ 04 Balance Sheet ■ 02 Income Statement ■ 05 Outlook ■ 03 Cash Flow Statement Page 3 2024 H1 Results
Slide 4: Highlights of First Half
1 Highlights of First Half 05. 08. 24
Slide 5: H1 results key highlights
H1 results key highlights: Dynamic H1 Revenue Increase in EBITDA excl. IFRS 16 Positive developments in Germany, post 2023 margin squeeze Refinancing plan on track Strengthened balance sheet 2024 Outlook confirmed Page 5 2024 H1 Results
Slide 6: H1 2024 Key Figures: a solid performance
H1 2024 KEY FIGURES* : a solid performance Supported by a well-balanced portfolio of geographies and activities REVENUE €2,636m OPERATING FREE CASH FLOW €74m +6.8% VS €45M IN H1 2023 ORGANIC GROWTH EBITDA €290m NET DEBT -€500m vs. Jun 2023 +3.5% GROWTH PROFORMA OF 3,5BN JUN 2024, INCL. CAPITAL INCRE
Slide 7: ESG milestones achieved in H1 2024
ESG milestones achieved in H1 2024 SOCIAL ■ Clariane received Top Employer Europe 2024 certification from the Top Employers Institute ▪ Clariane is the first company in the health and medico-social sector to be certified at the level European ■ Signature with the European Society Committee (EC-SE) a
Slide 8: Group's financial structure strengthening plan on track
Group’s financial structure strengthening plan on track Announced on 14 November 2023 THE FOUR PARTS of our financial structure strenghtening to : ▪ Strengthen Clariane’s liquidity and financial structure ▪ Enabling the Group to successfully pursue its mission in the new economic environment 1 2 3 4
Slide 9: Asset disposals program
Asset disposals program: 1bn of targeted disposals and partnerships by 2025, c.40% already committed ■ Adapted to the Group's strategy: ▪ 4 key geographies ▪ 3 complementary segments : Long term Care, Specialty Care, Community Care ■ Ensure focus on scaled platforms to capture growth ■ Ensure long t
Slide 10: Reinforced governance reflecting adjusted capital structure
Reinforced governance reflecting adjusted capital structure Shareholding structure post capital increases Changes in the Board reflecting the new shareholding (3 July, 2024) As % of share capital structure Predica 26.0% 31.9% HLD Flat Footed Leima Valeurs 0.1% Treasury shares 5.5% 25.2% Free float 1
Slide 11: Income statement
2 Income statement 05. 08. 24
Slide 12: Solid growth in all activities, thanks to a balanced portfolio
Solid growth in all activities, thanks to a balanced portfolio GROWTH BY ACTIVITY H1 2023 H1 2024 Share of Reported Organic Revenue Revenue revenue growth growth (€m) (€m) Long Term 1,540 1,618 61% +5.1% +7.2% Care Specialized 659 680 26% +3.3% +3.5% care Community 287 338 13% +17.8% +12.6% Care Tot
Slide 13: Long Term Care: steady occupancy rate increases
Long Term Care : steady occupancy rate increases 89.6% 89.5% 89.2% 89.1% 88.2% H1 2024 87.6% 87.7% 89.5% 87.1% H1 2023 H1 2023 86.0% 87.9% 87.9% 85.6% H1 2022 H1 2022 85.8% 85.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 • H1 average occupancy rate @ 89.5% : up 1.6 pts vs. H1 2023 (87.9%) with a
Slide 14: All geographies growing well
All geographies growing well H1 24 Reported H1 24 Organic growth growth France +7.0% +5.9% Germany +7.8% +8.3% Benelux +4.8% +7.2% Italy +2.7% +3.6% Spain, UK +2.6% +15.1% Total +6.1% +6.8% Page 14 2024 H1 Results
Slide 15: Bridge Revenue
Bridge Revenue Volume increase (net of financing) Revenue Revenue growth Long-term care: +€42m from OR +€79m +3.2% increase/greenfields, o/w +€14m in BNL, +6.1% reported growth +€10m in Germany and +€8m in France Medical care: +€17m from activity increase +6.8% organic growth o/w +€9m Spain and +€9m
Slide 16: EBITDAR performance by geographies
EBITDAR performance by geographies EBITDAR Margin: • 21.3% vs. 21.7% H1 2023 H1 24 growth H1 2023 H1 2024 Margin • Margin up 88 bps excl. contribution (published) Margin Margin Variations from RE development activities -220 bps supported by : France -2.7% 24.3% 22.1% +80 bps excl. RE • Activity grow
Slide 17: Bridge EBITDA
EBITDA EBITDA Bridge EBITDA Volume increase margin +€24m +50 bps Long-term care: +€22m, o/w mainly +€9m from Germany, +€7m from Italy and +€5m from France +10 bps Medical care: +€3m, mainly from Germany (+M€ 4) +50 bps +320 bps -310 bps -0 bps -110 bps Community care: -€1m 92 Price increase (net of
Slide 18: From Revenue to EBITDA
From Revenue to EBITDA €m (excluding IFRS 16) H1 2023 H1 2024 ∆ published % EBITDAR up by +€22m (+€27m excl. UK disposal) Revenue 2,485 2,636 +6.1% • Efficient revenue management with pricing adjustment Staff costs (1,520) (1,577) • Staff costs ratio down -140 bps benefiting from steady occupancy re
Slide 19: Group H1 2024 P&L
Group H1 2024 P&L €m (excluding IFRS 16) H1 2023 H1 2024 Revenue 2,485 2,636 ∆ vs. EBITDAR 538 560 H1 2023 Amortisation and depreciations EBITDA 285 290 -€17m Increase reflecting the high level of investments in previous years Depreciation & Amort & Prov. (149) (166) EBIT 137 124 Non-current expense
Slide 20: Cash flow statement
3 Cash flow statement
Slide 21: H1 2024 Cash Flow
H1 2024 Cash Flow H1 2023 H1 2024 Development capex €(71)m €(60)m • Development / Real Estate capex reduced INVESTMENTS by -63% (€139m vs €375m in H1 2023) € (139)m M&A €(143)m €(37)m vs € (375)m in H1 2023 • No significant M&A investments Real Estate €(161)m €(42)m Discontinued & Others €(-37)m €(4
Slide 22: Focus on operating Free Cash Flow: conversion rate
Focus on operating Free Cash Flow : conversion rate OPFCF AND CONVERSION RATE (OPFCF / EBITDA SINCE 2017) 500 OPFCF Conversion 70.0% (€m) rate (%) 450 60.0% 400 350 50.0% 300 40.0% 33.5% 250 28.8% 200 25.4% 24.1% Average : 22% 25.6% 30.0% 19.2% 150 15.9% 20.0% 100 87 82 74 53 55 44 5.9% 45 10.0% 50
Slide 23: Balance sheet
L, Balance sheet
Slide 24: Bridge of the RE value between June 2024 and December 2023
Bridge of the RE value between June 2024 and December 2023 Decrease in Real Estate Portfolio value as June 30, 2024, of -€336m compared to December 31, 2023, due to: • Disposal: c. -€246m, mainly coming from UK and Aedifica disposals • Like-for-like impacts: c. -€129m: • Indexation for +€15m • Cap r
Slide 25: H1 2024 balance sheet structure
H1 2024 balance sheet structure Overall reduction of Net Financial Debt by c. €300m* vs. Dec 2023 €m Net financial debt incl. IAS17 4,503 4,332 4,238 4,004 IAS17 debt 566 - 14 552 - 12 540 - 540 Net Financial debt excl. RE 2,093 NET DEBT 1,943 2,019 -234 1,784 -150 +76 STRUCTURE RE debt owned assets
Slide 26: H1 2024 balance sheet structure
H1 2024 balance sheet structure LEVERAGE RATIO Covenant REAL ESTATE LOAN TO VALUE Covenant (excluding real estate debt) 4.5x €2,672m 65% Cap rate @ 6.3% 4.1 vs. 5.5% as of 30.06.2023 and 5.9% as of 31.12.2023 €1,680m 63% LTV due to 3.8 impact of disposals 3.7 3.6 3.6* and cap rate vs 58% as of 30.06
Slide 27: Outlook
5 Outlook 05. 08. 24
Slide 28: Outlook for 2024 and 2023-2026
Outlook for 2024 and 2023-2026 2024 2023-2026 ORGANIC REVENUE GROWTH >5% CAGR c.+5% At least stable in amount on a Margin up 100 bps to 150 bps in EBITDA Margin pre IFRS 16 proforma basis 2026 < x3 at end of 2025 LEVERAGE pre IFRS 16 LTV at 55% Maintain NPS of at least 40 Qualifying Path: above 7,00
Slide 29: Thank you
clariane THANK YOU TN
Slide 30: Update on the debt maturities
Update on the debt maturities 1,200 1,000 493 Of which €175m of bridge loan with CA-CIB repaid in July 800 following the capital increase 600 230 436 88 400 361 154 300 -- 568 16 200 119 41 191 252 7 100 277 193 175 128 75 83 - H2 2024 2025 2026 2027 2028 2029 2030 >2030 Syndicatel RCF Syndicated Te
Slide 31: Clariane: Network as of end of H1 2024
Clariane: Network as of end of H1 2024* # OF PATIENTS 566,000 # OF FACILITIES 1,217 # OF BEDS 90,000 Long-Term Care Specialty Care Community Care 669 care homes* 281 facilities 267 facilities 100,000 patients 402,000 patients 64,000 patients 61,600 beds 14,300 beds 14,800 beds 61% of H1 2024 revenu
Slide 32: Performance by geographies: France & Germany
Performance by geographies : France & Germany Occupation rate 89.0% Variation (%) 88.3% 88.3% 88.2% €m (excluding IFRS 16) H1 2023 H1 2024 88.0% Published Organic 87.5% 87.4% 87.1% REVENUE 1,096 1,173 +7.0% +5.9% 86.8% EBITDAR 267 260 -2.7% 86.0% EBITDAR margin 24.3% 22.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 33: Performance by geographies: Belgium and Netherlands
Performance by geographies : Belgium and Netherlands Variation (%) €m (excluding IFRS 16) H1 2023 H1 2024 Published Organic REVENUE 368 385 +4.8% +7.2% EBITDAR 79 83 +4.0% EBITDAR margin 21.5% 21.4% Occupation rate Occupation rate 91.6% 91.6% 91.0% 76.1% 76.9% 90.6% 75.1% 74.8% 74.4% 89.5% 89.4% 70.
Slide 34: Performance by geographies: Italy & Spain
Performance by geographies : Italy & Spain Occupation rate 96.7% 95.5% 95.4% 95.6% Variation (%) 94.2% €m (excluding IFRS 16) H1 2023 H1 2024 93.7% 93.4% Published Organic 92.1% REVENUE 311 320 +2.7% +3.6% 90.6% EBITDAR 65 70 +7.4% 88.5% EBITDAR margin 20.8% 21.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022