Korian: Decision relating to the termination benefit of Yann Coléou

Regulatory News:

Korian (Paris:KORI):

Pursuant to the opinion of the Appointments and Compensation Committee, the Board of Directors of 18 November 2015, having terminated Yann Coléou's term as Chief Executive Officer, ascertained that the performance conditions governing the granting of a termination benefit to Yann Coléou had been met, such benefit being equal to twelve months' gross fixed and variable compensation increased by 25% per year of service, without exceeding twenty-four months' compensation (i.e. in the case at hand, twenty-one months' compensation). The Board of Directors accordingly authorised the payment of the termination benefit, amounting to €1,837,500.

As a reminder, this termination benefit was authorised by the Board of Directors of 21 March 2012 and approved by the Shareholders' General Meeting of 20 June 2013. Its payment was subject to the following performance conditions:

• the cumulative EBITDA recorded for the 12 months preceding his departure is equal to at least the yearly EBITDA recorded at 31 December of the year preceding his departure and to a minimum of €123.1 million; achievement of this criterion entitles him to 70% of the benefit;
• the average occupation rate of facilities in France over the 12 months preceding his departure reaches a minimum of 95.6%; achievement of this criterion entitles him to 30% of the benefit.

The variable compensation due to Yann Coléou for 2015, amounting to a maximum of €500,000, will be determined by the Board of Directors, upon proposal from the Appointments and Compensation Committee, upon closing of the 2015 financial year, in March 2016, on the basis of the quantitative and qualitative criteria set by the Board of Directors of 25 March 2015.

It is further specified that, over the period starting on 1 January and ending on 18 November 2015, Yann Coléou has, as Korian’s Chief Executive Officer, received a fixed compensation of €485,833 as well as his 2014 variable compensation of €500,000.

It is also recalled that, as a result of the acquisition of the 2013 performance units, Yann Coléou has received €1,050,000.

As a result of his departure, Yann Coléou will no longer benefit from the acquisition of the 2014 performance units (valued at €880,950) as well as from the free share plans adopted by the Board of Directors on 10 September 2014 (valued at €574,853) and on 16 September 2015 (valued at €561,268), because these components of remuneration are conditioned upon the beneficiary’s presence.

Finally, Yann Coléou is not subject to a non-compete clause and does not benefit from a supplementary retirement plan.

ABOUT KORIAN

Korian, Europe’s leading Ageing Well specialist, founded in 2003, has the capacity to accommodate some 60,000 residents and patients in Europe (France, Germany, Italy and Belgium) and employs around 40,000 people. The Group manages over 600 facilities in four business lines: long-term care nursing homes, post-acute and rehabilitation care clinics, assisted living facilities and home-care services.

For more information, please visit the website: www.korian.com

Korian is listed on Euronext Paris Compartment A 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

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