Q4 2024 Emeis SA Corporate Sales Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Constantin Gumenita - Kaiz Capital - Analyst : Hi, good good morning. Good morning, Laura Jean Marc. Thank you for the presentation. A few questions from my side. One, on staff costs, could you please comment on labor cost inflation for 2025 and your target staff ratios? Secondly, on disposals, could you confirm over the 166 and the 171 that haven't been closed yet, those will, when those will come? And maybe if you can give a bit more color on the 600 to go, perhaps on your confidence level or what assets you're looking to sort of dispose of. And then lastly, in terms of 2025, if you could expand a little bit more on the guidance for occupancy CapEx as well as non-recurring costs, please. Laurent Guillot - Emeis SA - Group Chief Executive Officer, CEO France, in charge of Germany, Belgium, Luxembourg, Spain, Portugal and The Netherlands Okay, I take the one on the staff cost and the, staff cost ratio on inflation, as you may, know and understand it, it's really country related. We are very, strict on the negotiations, but some countries, for example, like Germany, have, salary increases that are discussed outside of our company. And in that case we take, the salary increase, but we have discussions with our employee to know how we implement them and the timing of implementation that would lead us to continue to go to keep the the pricing, of. The staff well under control in France, clearly there will be no short term discussions of of of salary increase. The last discussion has been concluding positively for us in October October last year. On the staff ratio, clearly, as Jean Marc said a little bit earlier, we continue to keep our costs well under control, meaning we've made the investment in '23. Largely in the second half of '23 concerning the resttaffing of our facilities in France, and the reason why that to continue to, I mean boost the reputation of the company and go back to a level of quality that gives confidence to our residents and and patients and clearly we do not anticipate any increase of head count. In France, meaning that all the, occupancy rate improvement will be absorbed with the current staffing, and that is, basically what has started to happen in the second half of the year and that we expect that to continue in the second half of the year Jean Marc you want to, comment on disposals.

Question: Constantin Gumenita - Kaiz Capital - Analyst : Understood. Thank you very much. Laurent Guillot - Emeis SA - Group Chief Executive Officer, CEO France, in charge of Germany, Belgium, Luxembourg, Spain, Portugal and The Netherlands Thank you, Constantin.

Question: Constantin Gumenita - Kaiz Capital - Analyst : Hi, two quick follow-up questions from my side, please. On page 16, you've helpfully outlined the occupancy rates for Germany. Could you perhaps, give a little bit more color? I think we have a good picture for France, but for Germany, what is driving the recovery and occupancy? 1 and 2, what sort of target levels do you have in mind? Perhaps what occupancy levels did that business have pre-COVID? And the second question is, are you able to provide the EBA, split, for France and Germany? Laurent Guillot - Emeis SA - Group Chief Executive Officer, CEO France, in charge of Germany, Belgium, Luxembourg, Spain, Portugal and The Netherlands The, on the first question, clearly, what's, well, 85%, occupancy rate in Germany is quite a low level. It's not, standard, and it's not the level at which we should lend over time. It's a combination of 22 factors. First factor in the past we've been investing a lot in Germany, so we have still a lot of new facilities that are opening that are waiting on the, on the average occupancy rate. And second, we are still partly in a post-COVID recovery where the occupancy rate after 2020 went down significantly. And so the dynamic is because we have a good marketing policy, a good dynamic. The teams in the different regions of Germany are working very hard to improve these numbers. I have no doubt that this will continue in in. 202,025 face may be slightly different, but the trend is definitely good and because we are slowing down progressively also the new openings in in Germany we this number will have we go positively as long as as soon as we load the the the the new the new facility. So good trend in the last year. With a very dynamic team and commercial and regional team in Germany and and I I expect that to continue, we have not communicated this time, and in this communication, the numbers, region by region, country by country, and, we will do it, for our final communication of the of the final numbers, in April if I'm not wrong.