Laurent Guillot Appointed as CEO of the Group

PUTEAUX, France--(BUSINESS WIRE)--Regulatory News:

ORPEA (Paris:ORP):

Appointment of Laurent Guillot

ORPEA's Board of Directors has appointed Mr. Laurent Guillot as Chief Executive Officer of ORPEA, effective July 1st. He will be responsible for developing and implementing the improvement and transformation plan to build the New ORPEA. His appointment to the Board of Directors will be proposed to the General Meeting scheduled for July 28. Laurent Guillot will act as advisor to the Chairman and CEO until he takes up his position.

Philippe Charrier, Chairman and Chief Executive Officer said:

“The appointment of Laurent Guillot as Chief Executive Officer will enable the Group to begin a new stage and launch the in-depth transformation process that will lay the foundations for the New ORPEA. This will allow it to respond better than ever to the current and future challenges in supporting elderly and long-term care. As I promised, ORPEA has done its utmost—in full transparency—to shed light on the allegations brought against it and to put in place the corrective measures that are required as quickly as possible.

Other changes in the Group's governance

The appointment of at least three new directors will be proposed to the General Meeting.

The Board of Directors has also started to consider the transformation of ORPEA into a “entreprise à mission”.

Continuation of the independent investigation led by Grant Thornton and Alvarez & Marsal and initial corrective measures

Following the IGAS-IGF report, the independent investigation that was begun at the request of the Board of Directors will continue its investigations. The progress report published on 26 April 2022, after three months of in-depth investigations, shows that no organised system to mistreat residents exists but the report does raise some failures that require changes.

The Group has already implemented initial corrective measures, such as establishing a listening unit for families and a mediation unit, as well as strengthening the whistleblowing system for employees.

Following the signing of an international agreement on employment ethics, dialogue, collective bargaining and union rights with UNI Global Union, the Group has started negotiations to improve labour relations and to build closer relationships with facility staff representative bodies.

“Etats Généraux du Grand Age”

As announced, the organisation of roundtable talks on the elderly throughout France from mid-May 2022 will allow the doors of our facilities to be opened to all stakeholders, fostering reflection on accommodation and care of residents and on the nursing homes of tomorrow.

Filing of a complaint against X

ORPEA has filed a complaint with the public prosecutor against unnamed persons for past events and operations that are unrelated to accommodation and care conditions for residents but that are likely to raise questions with regard to ORPEA's social interest and were discovered as a result of internal investigations.

Several people have already left the company; investigations are continuing and may lead to further departures.

Laurent Guillot, Biography

Laurent Guillot started his career within the government as a technical advisor in the office of the Minister for Equipment, Transport and Housing. In 2002, he joined Compagnie de Saint-Gobain, where he managed various activities in France and internationally until 2009. Following this, he became Group Chief Financial Officer and then Deputy CEO. In 2016, he was made CEO of High-Performance Materials and then CEO of High-Performance Solutions. He is an independent Director and Chair of the Audit and Risk Committee at Safran.

About ORPEA (www.orpea-corp.com)

Founded in 1989, ORPEA is one of the world leaders in Dependency care (nursing homes, assisted living, post-acute and rehabilitation hospitals, mental health hospitals, home care services)

ORPEA is listed on Euronext Paris (ISIN code: FR0000184798) and is a member of the SBF 120, STOXX 600 Europe, MSCI Small Cap Europe and CAC Mid 60 indices.