MEDICA – Revenue to 30 September 2013

Regulatory News :

MEDICA (Paris:MDCA), a leading provider of long- and short-term dependency care, today announces its third quarter revenue to 30 September 2013.

Unaudited data

Jacques Bailet, Chairman and Chief Executive Officer, said: "With a total revenue growth over 9% for the first nine months of the year, of which 7.5% organic growth, MEDICA benefits from a solid basis for growth in its historical operating areas. The consolidation from 1 October 2013 of SLG, the leading player in Belgium, opens up new development prospects for MEDICA and makes us comfortable with targeted revenues exceeding €825 million in 2013.”

DYNAMIC GROWTH THANKS TO SOLID FOUNDATIONS

Thanks to robust business conditions during the past quarter, the consolidated revenue in the first nine months of 2013 amounted to €582.0 million, representing a rise of 9.2% compared to 2012 - including 7.5% organic growth - and exceeding Group's targets.

• The long-term care segment in France generated revenue of €379.1 million since the beginning of the year and recorded buoyant growth of 11.9% compared to the same period last year. Organic growth remained in excess of 10%, demonstrating MEDICA’s efficient management of its facilities and service offering.
• The revenue of the post-acute and psychiatric care segment in France amounted to €143.2 million, representing a rise of 5.4% compared to the same period in 2012.
• In Italy, growth was confirmed with revenue up 2.2% to €59.7 million in the first nine months of the year.

In France, the Group continued its selective growth policy with 204 beds added during the quarter, making a total of 749 beds added since the start of the year. As at 30 September, before the integration of SLG, MEDICA operated 17,336 beds across 229 facilities.

• Long-term care - France: 12,504 beds and 163 facilities
• Post-acute and psychiatric care - France: 2,727 beds and 39 facilities
• Italy: 2,105 beds and 27 facilities

As at 30 September 2013, the occupancy rate* stood at a high level of 96.6%.

MEDICA STRENGTHENED ITS GROWTH PIPELINE THANKS TO SLG

On 30 September 2013, MEDICA completed the acquisition of Senior Living Group, the leading private provider of long-term care in Belgium. The completion of this transaction marks a major step forward in MEDICA’s development in Europe. Since 1 October, MEDICA has been operating a portfolio of 22,817 beds and benefits from a strengthened organic growth pipeline with a portfolio of 3,448 beds being restructured or built.

Besides, MEDICA has recently finalised two deals in order to develop its European platforms, namely the acquisition of a long-term care facility in Florence (Italy) and the signing by SLG of a public-private partnership (PPP) in view of establishing a new site in Louvain, Flanders (Belgium).

CONTINUED RECOGNITION FOR MEDICA’S ESG COMMITMENT

For the fourth year in succession, MEDICA has been included among the 70 companies making up the GAIA SRI index**. MEDICA’s constant inclusion in the index since its IPO demonstrates the importance it attaches to meeting ESG (Environment, Social and Governance) criteria.

MEDICA’s commitment has also been highlighted in the rankings produced on the occasion of the first ‘Week for Professional Equality between Men and Women’. Placed under the aegis of the Ministry of Women’s Rights and organised by the Ethics and Board agency, this ranking awards the ‘Féminisation des instances dirigeantes’ prize to companies which give a concrete commitment in this respect. MEDICA ranked second among prestigious CAC 40 listed companies in this 2013 edition.

2013 REVENUE: OVER €825 MILLION EXPECTED

Following the completion of its acquisition of SLG, MEDICA confirms that it expects to generate full-year revenue in excess of €825 million in 2013, thanks to organic growth of at least 7% and the consolidation of SLG from 1 October 2013.

A conference call for analysts and investors
will be held this morning at 9:30 am (Paris time).

ABOUT MEDICA

Formed in 1968, MEDICA is a leading provider of long- and short-term dependency care. It operates both in the long-term care sector, with nursing homes in France, Belgium and Italy, and in the post-acute and psychiatric care sector. In these three geographies, the Group is now operating more than 22,800 beds in total and employs over 13,800 people.

MEDICA has been listed on the NYSE Euronext Paris stock exchange since February 2010 – Compartment B – Eligible for the Deferred Settlement Service, long only.

MEDICA is included in the SBF 120, Euronext CAC Healthcare, MSCI France Small Cap and Gaia indices.

Code: MDCA - ISIN: FR0010372581 - Reuters: MDCA PA - Bloomberg: MDCA FP
Website: www.groupemedica.com

* Occupancy rate: the number of days billed divided by the number of billable days for facilities that have been opened for more than 12 months.

** The GAIA SRI index, launched in October 2009 by IDMidCaps and EthiFinance with the support of SFAF and Middlenext, comprises 70 stocks selected from a total of more than 230 midcaps. It rates French midcaps on their commitment to meeting ESG criteria.