LNA Sante : 2022 Q3 revenue

Press Release

Nantes, 8 November 2022 at 6pm

Third quarter 2022

9-month operating revenue: €504.3m

Organic growth resilient at +5.3% in the third quarter and +6.6% in the first nine months

Outlook confirmed

Annual organic operating growth of +6.0

Annual operating revenue over €675m

"In a demanding environment, the consolidation of the occupancy rate of our establishments at a high level contributes to the network's business dynamics and testifies to the real attractiveness of our healthcare offerings. The achievement of sustained organic growth in all business lines during the third quarter of 2022 at +5.3% reflects the solidity of the company's project and its strong anchoring in the heart of the territories. This milestone, which is in line with our forecast, allows us to confirm our 2022 annual business and operating performance objectives, in a context of active co-construction of the next 2023-2027 strategic project with all our stakeholders."

Jean-Paul Siret - Chairman

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					9	9
In millions of euros	Q3 2022	Q3 2021	Var.		months	months	Var.
					2022	2021
Operating turnover	169.7	160.1	+ 6.0%		504.3	469.9	+ 7.3%
Organic growth			+ 5.3%				+ 6.6%
Medical and Social Sector France *	67.0	63.8	+ 5.0%	199.6	190.5	+ 4.7%
of turnover Operating	39%	40%		40%	41%
Sanitary Sector France **	93.0	88.4	+ 5.2%	276.8	256.3	+ 8.0%
of turnover Operating	55%	55%		55%	55%
Sector International Business line	8.5	7.0	+ 22.6%	24.1	20.2	+ 19.0%
of turnover Operating	5%	4%		5%	4%
Other sectors Operations	1.2	0.9	N/S	3.8	2.8	N/S
Real Estate Turnover	9.3	8.6	+ 8.5%		34.7	36.9	- 6.2%
Total	179.0	168.6	+ 6.2%		538.9	506.8	+ 6.3%

Data not audited by the auditors * Medico-SocialFrance: EHPAD in France

• Sanitaire France: Medical and Rehabilitation Care (SMR), Psychiatric Clinics, Surgery and AHH in France
• • International Business Line: MRPA in Belgium and clinics in Poland

Occupancy rate on the rise

In the 3rd quarter of 2022, the average occupancy rate now represents 95% of the capacity in EHPAD, with an increase in occupancy in the two hotel ranges compared to the 2nd quarter of 2022. In the Elegance range, the occupancy rate exceeds 94% thanks to the marketing actions carried out in the PACA and Ile- de-France regions, where the recovery in occupancy rates since the health crisis has nevertheless been more gradual than in other regions due to the density of supply. In the Comfort range, the occupancy rate is over 98%, proof of the continued attractiveness of the service offer.

In rehabilitation (SMR) and psychiatry in France, occupancy stabilised over the Q3 at a high level, above 95%. It was slightly lower than in the second quarter, due to the summer period, which is traditionally marked by a slowdown in activity in certain clinics, and a context of strong tension surrounding medical resources.

In hospital at home, the activity maintains its dynamic offer with 746 patient stays taken in care over the 3rd quarter 2022, up by 2.5% compared to the 2nd quarter 2022. It benefits from the expertise of the medical services provided as close as possible to the needs of the health regions.

In Belgium, the occupancy rate of the MRPAs remained close to 90% over the quarter, slightly down compared to the second quarter for the Brussels establishments, due to a still very tight competitive environment in the region.

The occupancy rate of the facilities at cruising speed, excluding home hospitalization, was 95% in the 3rd quarter of 2022, slightly lower than in the 2nd quarter of 2022, due to the temporary slowdown in admissions to SMR clinics.

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Good growth in the Operations business

At the end of the first nine months of the 2022 financial year, LNA Santé's operating revenue amounted to €504.3 million, up 7.3% compared to the same period in 2021, including 6.6% organic growth.

In the third quarter of 2022, LNA Santé's operating revenue amounted to €169.7 million, up 6.0% compared to the same period last year, of which 5.3% was organic growth and 0.7% external growth.

• Revenue from nursing homes in France came to €67.0m in the first three months of 2022, up 5.0% year-on-year on an organic basis and accelerating in the third quarter due to the expected increase in occupancy. It can be analysed as follows:
• • Elegance nursing home activity, at €55.6 million, grew by 5.4% compared with the third quarter of 2021, thanks to improved occupancy rates in the PACA and Ile-de-France regions,
  • Comfort nursing homes, with limited accommodation prices, reported revenues of €11.4 million, up 3.0%,
• The Sanitaryware France business grew by 5.2% to €93.0m in the third quarter of 2022. Organic growth accounted for 5.0% of this increase. It resulted from the following contributions:
• • Medical and Rehabilitation Care (MRC) generated €74.4m in revenue in the quarter, up 2.3% on the third quarter of 2021, including 2.2% organic growth,
  • Hospitalisation A Domicile (HAD) facilities generated €18.6m of activity in the 3rd quarter of 2022, up 19.0% compared to the same period a year earlier, of which 18.1% was organic,
• The International Business segment posted a level of activity of €8.5m in the 3rd quarter of 2022, up 22.6% (including 8.2% organic growth) compared to the 3rd quarter of 2021, which breaks down as follows
• • Nursing homes in Belgium generated €7.5 million in business over the quarter, up 8.2% on the same period last year,
  • The Polish clinics, acquired at the end of February 2022, generated €1.0m in revenue during the quarter. They contributed 14.4% to the external growth of the International Business segment.

Real Estate Activity

Real estate revenues amounted to €34.7 million in the first nine months of 2022 (including €9.3 million in the third quarter), due to the progress of projects during the period, mainly the construction of a health centre, a nursing home and the extension of a psychiatric clinic.

Outlook confirmed

With an authorised stock of 9,982 beds, of which 9,335 are in operation, of which 8,301 are fully mature, the Group has a base of 1,681 beds, the upgrading of which to LNA Santé standards constitutes a major vector of embedded growth, excluding new external growth.

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In the shorter term, the Group's growth momentum will continue in all business lines during the fourth quarter. In particular, growth in the French nursing home sector is expected to accelerate thanks to the increase in occupancy rates and the pricing measures included in the Social Security budget (PLFSS). The French healthcare sector should follow the same trend thanks to the dynamic performance of home hospitalization structures and the expected strengthening of SMR and psychiatric clinic activity.

Thus, based on the achievements of the first nine months of 2022 and the outlook for the fourth quarter, LNA Santé confirms its forecast of annual organic growth of 6.0% for operating revenue in excess of €675 million.

Next publication:

The 2022 annual turnover will be published on 2 February 2023 at market close.

About LNA Santé: With 30 years of experience, LNA Santé is involved at the heart of health territories to improve the quality of life of temporarily or permanently frail people in a welcoming and caring environment, adapted to each person and to all ages.

LNA Santé shares are listed in compartment B of Euronext Paris.

ISIN code: FR0004170017.

Contacts :

		Financial communication
Damien Billard		J. Gacoin / V. Boivin
Deputy DG for Finance	[phone]
[phone]	92	[e-mail]

[e-mail]

Shareholder Line (Tuesday and Thursday from 2pm to 4pm): 0 811 04 59 21

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Glossary

The cruising regime corresponds to beds that comply with LNA Santé's operating plan (quality of care, target size of the establishment, new condition of the real estate, trained and involved management, efficient organisation).

Organic growth in turnover corresponds to the change in turnover:

• between N-1 and N of establishments existing in N-1,
• between N-1 and N of establishments opened in N-1 or in N,
• between N-1 and N of establishments restructured in accordance with the LNA Santé specifications or whose capacity increased in N-1 or N,
• in N compared to the equivalent period in N-1 of establishments acquired in N-1.

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