PARIS--(BUSINESS WIRE)--Regulatory News:
- Ahead of its K-2020 five-year targets, Korian is now reaping the benefits of its resolute operational and financial discipline
- The growth rateacelerated to over 8%
- The operating margin is up 130 bps (between 2015 and June 2019)
- Operating free cash flow rose 36% between 2015 and 2018
- Strengthened financial structure with the restated debt ratio reduced to 3.2x in June 2019
- The property ownership rate increased to 21% in June 2019 (vs. 14% in 2016).
- After having already revised its growth and margin goals for 2021 upwards last March, Korian is significantly raising its cash generation objective for same period
- Target operating free cash flow increased to €300 million (vs. €225 million under the K-2020 plan)
- Target average revenue growth over 8% (vs. 5% under the K-2020 plan)
- Target EBITDA margin to be above 15.5% (vs. approx. 14.5% under the K-2020 plan), on the basis of a property ownership rate of around 25%
- Strong financial structure with the restated debt ratio maintained below 3.5x and a LTV of the real estate portfolio around 50%.
- Korian confirms its Asset Smart real estate strategy
- Continued investment in the Group’s real estate portfolio to provide support to the Group’s strategy based on community care and enriched offers
- Further gradual increase in the rate of property ownership with an objective of 25% in 2021, which could reach 30% by 2023.
- The Group launches an ambition for excellence and innovation through its “In Caring Hands” initiative
- HR Excellence: 8 employer commitments, particularly in the areas of training, internal promotion and well-being at work, in order to achieve Korian’s goal of becoming the preferred employer in its sector in Europe
- Excellence in quality: 1st European care network to be 100% ISO 9001-certified by 2023
- Innovation in the deployment of digital solutions in its facilities and in the home throughout its entire network.
- Corporate and social responsibility
- In line with Korian model of shared value-creation, dashboard to be set up and communicated starting 2020 to monitor progress in 5 key areas of priorities : employee well-being, quality of environment, contribution to senior autonomy of choice, contribution to Ageing Well, local involvement in communities.
- Goals for 2023
- Revenue over €5 billion driven by the community-based growth strategy in the Group’s six countries and by the diversification of its business lines
- Reinforced network with 1,500 establishments and physical facilities in at least 600 living areas in the six countries where the Group operates
Sophie Boissard, Chief Executive Officer of the Korian group, stated:
“We are convinced that meeting the challenge of longevity will require integrated care and service offers at a local level, able to meet a wide range of needs of the elderly and fragile both in our establishments and at home. Building integrated quality care pathways has been at the heart of our strategy for the last three years. I would like to thank the 54,000 employees of the Group for their commitment on a daily basis to this ambition.
On the basis of the successful delivery of the K-2020 plan, we intend more than ever to continue to build on our unique, agile and locally based development model so that, each patient, resident or carer can have a Korian solution available to them, regardless of their situation and level of dependency.
To support our ambition, we are launching “In Caring Hands”, as a bedrock for long term trust with our employees, clients and stakeholders, based on a requirement of excellence and innovation in line with our mission and values.”
Investors’ Day on 20 September 2019 at 8.30 a.m.
Presentation and webcast access
Q3 2019 revenue: 22 October 2019
Korian, an expert in care and support services for the elderly, manages Europe’s leading network of long-term care nursing homes, specialised clinics, assisted living facilities and shared housing for seniors, home care and hospital home care services.
For more information, please visit our website: 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