MEDICA : - Business review for the six months ended 30 June 2012

• Solid growth in business in first-half 2012
  • Revenue up 16.1% to ?349 million
  • Sustained 9.8% organic growth
• 2012 guidance confirmed

Regulatory News:

MEDICA (Paris:MDCA), a leading provider of long and short-term dependency care in France, has released its business review for the six months ended 30 June 2012.

		First Half								Second Quarter
REVENUE BY SECTOR - ?M		2012		2011		Reported growth		Organic growth		2012		2011		Reported growth		Organic growth
Long-term care - France % of revenue		221.0 63.3%		182.8 60.8%		+20.9%		+11.3%		112.9 63.6%		94.2 60.9%		+19.9%		+12.1%
Post-acute and psychiatric care - France % of revenue		89.5 25.6%		79.8 26.5%		+12.2%		+11.2%		45.5 25.6%		41.3 26.7%		+10.1%		+8.2%
Italy % of revenue		38.4 11.0%		38.1 12.7%		+0.9%		-0.3%		19.0 10.7%		19.2 12.4%		-0.8%		-1.0%
TOTAL		349.0		300.7		+16.1%		+9.8%		177.5		154.7		+14.7%		+9.4%

Unaudited figures

"In first-half 2012, MEDICA once again reported sustained growth in revenue," said Jacques Bailet, Chairman and Chief Executive Officer. "We drove strong organic growth, led by the ramp-up of recent openings and successfully restructured facilities in our two sectors. These first months of the year have validated the effectiveness of our strategy of disciplined, profitable growth. They have strengthened our confidence in the Group's ability to meet the objectives announced for full-year 2012."

REVENUE

Consolidated revenue amounted to ?349.0 million in the first half of 2012, representing a 16.1% increase over the first six months of 2011. Organic growth stood at 9.8%, up sharply from the 6.8% reported a year earlier.

Both the Long-Term Care and Post-Acute and Psychiatric Care sectors in France delivered solid gains over the period, Italian business being flat.

• Revenue from long-term care facilities in France rose by nearly 21% year-on-year to ?221.0 million. This sharp increase was led by the consolidation of facilities acquired over the past 12 months and by the solid 11.3% organic growth driven by the ramp-up of facilities opened in 2011 and the impact of rate increases. During the first half, MEDICA acquired two facilities totalling 120 beds and opened around 600 beds.
• Revenue from post-acute and psychiatric care facilities in France came to ?89.5 million, versus 79.8 million in first-half 2011. This represented an increase of 12.2% as reported and of 11.2% on an organic basis. The good performance reflected the strong demand in the sector over the period, higher rates at the more specialised facilities and a broader range of related services. A 94-bed facility was acquired during the period.
• Revenue from operations in Italy, which accounted for 11% of the consolidated total, came to ?38.4 million, unchanged from the prior-year period. There were no changes in the scope of consolidation over the first six months.

The average occupancy rate* remained stable, at a high 96.5% as of 30 June 2012.

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

OPERATED PORTFOLIO AT 30 JUNE 2012

As of 30 June 2012, MEDICA operated a portfolio of 16,215 beds in 213 facilities:

• Long-term care - France: 11,493 beds and 148 facilities
• Post-acute and psychiatric care - France: 2,617 beds and 38 facilities
• Italy: 2,105 beds and 27 facilities

ORGANIC GROWTH PIPELINE

To support its future expansion plan, MEDICA has an organic growth pipeline representing, as of 1 January 2012, 3,122 beds, as follows:

• 1,776 beds being built, of which:
  • 606 came on stream in first-half 2012 and are now in the ramp-up phase
  • 1,170 will be gradually integrated through 2014
• 1,346 beds being restructured, of which:
  • 249 were delivered in first-half 2012
  • 1,097 will be gradually delivered through 2015

This pipeline offers MEDICA clear visibility over its organic growth potential for the next three years.

OUTLOOK

Based on its first-half revenue performance and growth pipeline, MEDICA confirms its revenue growth target of at least 13% for full-year 2012, of which 8% from organic growth, and is confident in its ability to maintain its solid EBITDAR margin.

INVESTOR CALENDAR

First-half 2012 results: Tuesday, 11 September 2012 before start of trading.

Third-quarter 2012 revenue: Tuesday, 16 October 2012 before start of trading.

A conference call for analysts and investors will be held this morning at 9:30 am CEST.

ABOUT MEDICA

Created in 1968, MEDICA is a leading provider of long and short-term dependency care in France. It operates in both the long-term care sector, with nursing homes in France and Italy, and in the post-acute and psychiatric care sector. In these two sectors, the MEDICA Group operated a total of 16,215 beds and employed close to 9,150 people as of 30 June 2012.

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

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

MDCA - ISIN: FR0010372581 - Reuters: MDCA PA - Bloomberg: MDCA FP

Website: www.groupmedica.com

APPENDIX - QUARTERLY REVENUE

		First Quarter				Second Quarter
REVENUE BY SECTOR - ?M		2012		2011		2012		2011
Long-term care - France % of revenue		108.1 63.0%		88.7 60.7%		112.9 63.6%		94.2 60.9%
Post-acute and psychiatric care - France % of revenue		44.0 25.7%		38.4 26.3%		45.5 25.6%		41.3 26.7%
Italy % of revenue		19.4 11.3%		18.9 12.9%		19.0 10.7%		19.2 12.4%
TOTAL		171.5		146.0		177.5		154.7

Unaudited figures

INVESTOR RELATIONS
MEDICA
Christine Jeandel, + 33 (0) 1 41 09 95 20
Deputy Chief Executive Officer
christine.jeandel@medica.fr
or
Mathieu Fabre, + 33 (0) 1 41 09 95 20
Chief Financial Officer
mathieu.fabre@medica.fr
or
MEDIA RELATIONS
Eudoxie PR
Agnès Gilbert, + 33 (0) 1 70 38 25 54
a.gilbert@eudoxie-pr.com
or
LT Value
Nancy Levain, + 33 (0) 1 44 50 39 30
LTvalue@LTvalue.com

Partner Area