Clariane Se · EURONEXT:CLARI
Clariane — H1 2023 Earnings Presentation
33 slides from Clariane's earnings presentation, Jul 27, 2023
Slide 1: 2023 Half-Year Results Presentation
2023 Half-Year Results Presentation 27 July 2023
Slide 2: Agenda
Agenda 01 Sophie Boissard – Chief Executive Officer 02 Philippe Garin - Chief Financial Officer 03 Sophie Boissard – Chief Executive Officer Page 2
Slide 3: Activity Report
01 Activity Report Sophie Boissard, Chief Executive Officer
Slide 4: Key highlights
Key highlights • Purpose driven company status approved and ESG 2019-2023 roadmap on track • Continued long term care occupancy normalisation, at 89.2% end of July • Resilient operating performance despite high inflation environment, demonstrating the value of our diversified model • Major refinanci
Slide 5: Half-year 2023 key figures
Half-year 2023 key figures OPERATIONS ESG FINANCIALS PEOPLE SUPPORTED ISO 9001 CERTIFICATION ORGANIC GROWTH 545 000 On-track for 100% +9.3% +c.15% VS H1 2022 end of 2023 VS 5.3% IN H1 2022 NURSING HOMES OCCUPANCY EMPLOYEES IN GRADUATING EBITDA MARGIN TRAINING PROGRAMMES (EXCL. IFRS 16) 89.2% July 20
Slide 6: Transformation into a purpose-driven company effective since June 2023
Transformation into a purpose-driven company effective since June 2023 ■ A new purpose for our community supported by 5 commitments « TAKE CARE OF EACH PERSON’S HUMANITY IN TIMES OF VULNERABILITY» Take CARE of each person’s ■ 10 tangibles initiatives HUMANITY in times of VULNERABILITY ■ Enhanced gov
Slide 7: Initiatives already materialising
Initiatives already materialising Mission Successful launch of Research projects with Commitment to SBT Committee Clariane University partner academic initiative signed appointed and July 2023 institutions April 2023 already fully at First initiative to put into Continued deployment of Commitment to
Slide 8: All our activities present strong organic growth
All our activities present strong organic growth GROWTH BY ACTIVITY Reported Organic Revenue (€m) growth growth Long Term 1,540 9.1% 9.3% Care Healthcare 659 17.5% 6.0% Community 287 17.7% 16.7% Care Total 2,485 12.2% 9.3% Page 8
Slide 9: Long Term Care – further normalisation of activity
Long Term Care – further normalisation of activity H1 2023 A NETWORK CONTINUED POSITIVE TREND ADAPTED TO PROGRESS ON ON “KORIAN” €1,539.6m revenue HIGH OCCUPANCY REPUTATION 9.1% reported growth DEPENDENCY “Korian image 23 refurbishment / 89.2% barometer” 62% of new build projects end July 2023 June
Slide 10: Healthcare – dynamic growth momentum fuelled by outpatient in post acute and mental health
Healthcare – dynamic growth momentum fuelled by outpatient in post acute and mental health H1 2023 €658.6m revenue CONTINUED ADAPTATION SCALING UP MENTAL HEALTH OF POST-ACUTE NETWORK NETWORK 17.5% reported growth 108 facilities in France, Italy and 166 facilities in France, Italy and Spain 27% of Sp
Slide 11: Community Care – continued strong growth in very dynamic markets
Community Care – continued strong growth in very dynamic markets H1 2023 ROLLING OUT ASSISTED RAPID HOME CARE €287m revenue LIVING CONCEPTS DEVELOPMENT 18% reported growth c.693 new beds in H1 2023 PETIT-FILS: #1 home care network in France 12% of Ages&Vie concept ramping up revenue 264 agencies as
Slide 12: All our geographies present strong organic growth
All our geographies present strong organic growth GROWTH BY COUNTRY Reported growth Organic growth France 7.0% 5.9% Germany 7.8% 13.0% Benelux 15.7% 15.9% Italy 13.9% 8.0% Spain, UK 101.2% 6.4% Total 12.2% 9.3% Page 12
Slide 13: Diversified models showing robust performance in inflationary environment
Diversified models showing robust performance in inflationary environment FRANCE* €m (excluding IFRS 16) H1 23 H1 22 Revenue growth REVENUE 1,096.0 1,024.4 • France: Organic growth driven by price and occupancy in nursing homes – still REPORTED GROWTH 7.0% -1.0% significant upside on occupancy ORGAN
Slide 14: Inflation time lag effect still affecting margins in long-term care countries
Inflation time lag effect still affecting margins in long-term care countries GERMANY • Mechanical impact from removal of covid-related €m (excluding IFRS 16) H1 23 H1 22 cost compensations REVENUE 573,0 531.6 • Significant cost pass-through effects from +c.25% REPORTED GROWTH 7.8% 1.1% for salaries
Slide 15: Spain and United Kingdom: successful ramp up
Spain and United Kingdom : successful ramp up Acquisition closed in SPAIN & UNITED KINGDOM* January 2023 €m (excluding IFRS 16) H1 23 H1 22 • High quality platform focused on mental REVENUE 136.4 67.8 health • Asset light model on the back of ambulatory REPORTED GROWTH 101.2% 142.2% and contract man
Slide 16: Financial Report H1 2023
02 Financial Report H1 2023 Philippe Garin, Chief Financial Officer
Slide 17: Half-year 2023 key figures
Half-year 2023 key figures REVENUE €2,485m OPERATING FREE CASH FLOW €45m +12.2% +9.3% vs €95m in H1 2022 REPORTED GROWTH ORGANIC GROWTH VS 5.5% IN H1 2022 VS 5.3% IN H1 2022 EBITDAR €538m LIQUIDITY €0.9bn vs €523m in H1 2022 with €500m undrawn RCF EBITDA €285m FINANCIAL LEVERAGE 4.1 x / 58% LTV vs €
Slide 18: Resilient EBITDA margin in a high inflation environment
Resilient EBITDA margin in a high inflation environment ∆ Tariffs increase covering only partially cost €m H1 2023 H1 2022 inflation (excluding IFRS 16) % Revenue 2,484.8 2,215.4 12.2% Staff costs (1,520.3) (1,329.7) 14.3% % of revenue -61.2% -60.0% -120 bps Staff costs reaching 61.2% of revenues Ot
Slide 19: EBITDA bridge – pre IFRS 16
EBITDA bridge – pre IFRS 16 Costs increase not entirely Accretive volume growth, compensated by tariffs fueled by all activities -€23m Pace of compensations decrease affecting margins 144 Portfolio management +€2m +€22m 35 12.9% 33 11.5% -33 -11 -167 285 285 EBITDA FY 2021 H12022 2022 Activity Compe
Slide 20: Group income statement
Group income statement €m (excluding IFRS 16) H1 23 H1 22 ∆% 1• Amortisations increase NET RESULT reflecting the VARIATION Revenue 2,484.8 2,215.4 12.2% high level of investments in previous EBITDAR 538.3 523.1 2.9% years EBITDA 285.3 284.9 0.1% Amt.Dep and Provisions 1 -148.6 -137.9 EBIT 136.7 147.
Slide 21: H1 2023 cash flow
H1 2023 cash flow H1 23 H1 22 Reflecting Grupo 5 acquisition Development capex €(71)m €(86)m closing in January 2023, and earn- INVESTMENTS outs relative to 2022 acquisitions €(375)m M&A €(143)m €(138)m 50 real estate projects delivered during H1 2023 vs €(391)m in H1 22 Real Estate €(161)m €(166)m
Slide 22: Investment cycle achieved
Investment cycle achieved GROWTH CAPEX EVOLUTION SINCE 2019 (€m) 1,233 19-22 2023 ONWARDS INVESTMENT CYCLE LOW CAPEX SELF-FINANCED MODEL 883 831 A 4-year investment Grupo 5 acquisition, closed cycle to modernize and in H1 2023, achieving the future-proof the 633 investment cycle network c.430 200-30
Slide 23: Resilient real estate market value…
Resilient real estate market value… Portfolio value* increased despite c.€(82)m Reinforced asset portfolio quality impact from capitalisation rate variation >50% of currently owned facilities Portfolio scope adjusted to take into account Ages&Vie have been built or renovated since 2016 change of con
Slide 24: … to continue generate equity financing, supporting deleveraging policy
… to continue generate equity financing, supporting deleveraging policy A proven track-record of real estate Financing split of the real estate portfolio monetisation in line with independent as of June 2023 expert value EQUITY RAISED CLARIANE Dec. 2020 €330m EQUITY €0.9bn Dec. 2021 €100m €3.2bn PEN
Slide 25: Real estate development projects: prioritising equity partnerships
Real estate development projects: prioritising equity partnerships CLARIANE GREENFIELD PIPELINE AS OF JUNE 2023 # of beds Greenfield Disposals / # of beds New greenfield deliveries bolt-ons capacities Dec. 2022 H1 2023 June 2023 H2 2023 - 2027 France 32,974 667 - 33,642 2,706 Spain and UK 3,819 111
Slide 26: Balance sheet structure
Balance sheet structure LEVERAGE RATIO (excluding real estate debt) REAL ESTATE LOAN TO VALUE Covenant Covenant 4.5x 65% 4.1 €3,189m 3.7 +1% 3.6 vs 31.12.2022 c.3.5* €1,843m Dec-23 Jun-22 Dec-22 Jun-23 objective Portfolio value Real estate debt 58% LTV vs 55% as of 31.12.2022 NET DEBT STRUCTURE €m N
Slide 27: Credit financing milestones achieved in a tightening environment
Credit financing milestones achieved in a tightening environment Successful extension New sustainability- Continued roll-out of of Clariane’s linked private real estate financing unsecured credit placement with 2027 during H1 2023 facility, extending its maturity maturity to 2026 €505m €40m €150m Fi
Slide 28: Liquidity position and debt maturity schedule
Liquidity position and debt maturity schedule LIQUIDITY POSITION IN LINE WITH GROSS DEBT MATURITY PROFILE PRE-COVID LEVEL (AS OF 27 JULY 2023) €m €m €0.9bn Cash RCF liquidity 1 000 900 800 500 700 600 500 500 400 300 500 200 100 500 1,215 500 - 884 2023 2024 2025 2026 2027 2028 2029 >2029 645 Real E
Slide 29: Outlook
03 Outlook
Slide 30: Outlook 2023
OUTLOOK 2023 KEY FOCUS FOR H2 2023 2023 ORGANIC REVENUE GROWTH >8% Continued operations resilience Investments strongly reduced STABLE c.€50m expected in H2 2023 EBITDAR IN AMOUNT Operating free cash flow management EBITDA pre IFRS 16 STABLE IN AMOUNT Further real estate monetisation transactions c.
Slide 31: Appendix
01 Appendix
Slide 32: All our geographies and activities present strong organic growth
All our geographies and activities present strong organic growth GROWTH BY COUNTRY GROWTH BY ACTIVITY Reported Organic Revenue growth growth Reported growth Organic growth 2022 excl. comp. excl. Published and Published compensat Published excl. comp. excl. disposals* ions Published Published in m€ a
Slide 33: Group income statement – IFRS 16 bridge
Group income statement – IFRS 16 bridge H1 2023 excl. IFRS16 H1 2023 incl. H1 2022 incl. ∆% €m IFRS16 adjustments IFRS16 IFRS16 Revenue 2,484.8 2,484.8 2,215.4 12.2% EBITDAR 538.3 -18.1 520.2 521.1 -0.2% % revenue 21.7% 20.9% 23.5% -120bps External rents -253.0 214.8 -38.2 -34.4 10.8% EBITDA 285.3 1