H1 2015 results

EuroBusiness Media (EBM): Korian, the European leader in the field of Ageing Well, is announcing its results for the first half of 2015. I have the pleasure of discussing those results with the Group’s CEO, Yann Coléou. Hello, you are announcing first of all an important increase in the group’s turnover. What’s behind it? Yann Coléou: Well in fact this increase of the turnover is a combination of organic growth and acquisition. The 32% increase in revenues for the first semester is mainly due to two big acquisitions we made last year. The first one is Curanum in Germany, the second one is Medica. And Medica has had an impact in Belgium, France and Italy. This is the main explanation for this increase in turnover. EBM: The company’s profitability has also improved… Yann Coléou: We have an increase in our profitability of 40 basis points, mainly due to the international activity and in the international activity, mainly due to the German and the Belgian activity. So we have a good profitability in these two businesses, especially because of the organic growth of these two countries. EBM: The semester has been marked by both organic and external growth for the group. How do you intend to continue with that growth dynamic? Yann Coléou: We will focus on the four countries where we are and it will be a combination of organic growth and acquisitions. Targeted acquisitions. For the organic growth, the main potential is in Germany. We know that because of the demography they will have to create 200,000 beds within the ten coming years and clearly we are leader in Germany and we will be one of the actors to capture this growth. Our objective is clearly to deliver € 3bn of turnover in 2017. EBM: If we look now at the market on which you operate, it is one that has a huge growth potential. How do you intend to continue capturing that growth potential over the coming years? Yann Coléou: Today you have 1 billion elderly people on earth and this 1 billion will double in the 35 coming years. So it’s a huge potential and clearly we want to capture a part of this huge potential with our four business lines; nursing homes, assisted living, post-acute care and home services. EBM: Yann Coléou, thank you. Yann Coléou: thank you very much.