First half 2024 on track – 2024 guidance confirmed

• Revenue increased by 6.8% in organic terms in the first half of 2024, supported by all businesses and re-gions with notably a nursing home occupancy rate at 90.5% in June 2024, up from 88.3% in June 2023. Over the first half as a whole, the average occupancy rate was 89.5% (excluding the United Kingdom), compared with 87.9% in the first half of 2023.
• EBITDA, excluding IFRS 16 and disposals, rose 3.5%. As anticipated, the margin was down only slightly due to the strong reduction of the real estate development business. Excluding this effect, the margin would be up by 75 basis points, reflecting the tight grip on operating costs and the initial effects of the recovery in Germany. EBITDA including IFRS16 is up 7,5%, on a published basis, compared with the first half of 2023.
• The Group made a net loss of €3 million from continuing operations excluding IFRS 16, including notably the impact of the interim financing costs put in place in anticipation of the capital increase and disposals in the first half; net profit, Group share excluding IFRS 16, at -€28m, includes the loss on the disposal of the serviced residence business in France in June 2024.
• Operating free cash flow excluding IFRS 16 rose sharply to €74 million, versus €45 million in the first half of 2023.
• The Group made good progress with its plan to strengthen its financial position:
  • Successful capital increases raising a total gross amount of €329 million, with the rights issue being 168% oversubscribed.
  • Disposal programme well underway with around 40% of the total amount secured during the period out of an expected total of €1 billion to be raised by 2025.
• The financial leverage ratio improved by 50 basis points, falling to 3.6x* versus 4.1x at 30 June 2023, and 3.8x at 31 December 2023, and the LTV was 63% versus 58% at 30 June 2023 and 61% at 31 December 2023; this transitory increase in the LTV is due to the low level of debt in the portfolios sold (mix effect) and due to higher capitalisation rates.
• The Group reached new milestones in terms of achieving its ESG roadmap targets, including validation of its greenhouse gas reduction trajectory by the SBTi.
• The Group is confirming its 2024 objectives: organic revenue growth of over 5% and EBITDA at least stable excluding IFRS 16 and disposals.

Sophie Boissard, CEO of Clariane, said: “Through the dedication of all Clariane employees, for which I am grateful, and the relevance of our business model based on a diversified portfolio of businesses and geographical markets, Clariane achieved a solid performance in the first half, particularly in Germany, where we are seeing the initial impact of our plan to restore margins.
More than ever, we remain focused on fulfilling our mission of caring for fragile people and on implementing our non-financial commitments, both social and climate-related. The SBTi has validated our greenhouse gas reduction targets and we are having regular constructive discussions with our Mission Committee, which published its first report on its work in April.
I am delighted that we have already been able to complete three of the four key components of our plan to strengthen our financial position, which we began on 14 November 2023. In particular, the capital increases we carried out in June have bolstered our shareholder group, with the arrival of HLD Groupe and increased stakes for Flat Footed and Leima Valeurs, alongside our long-standing shareholder Crédit Agricole Assurances. We are actively working on completing our €1 billion asset disposal plan, of which we secured 40% in the first half of 2024. This final component of the plan will enable us to hit our 2025 debt reduction targets.
Buoyed by our achievements and the momentum resulting from our ‘At Your Side’ corporate project, we are looking ahead to the second half of 2024 with confidence and determination.”