Slide 1: FY 2021 Earnings
FY 2021 Earnings March 25,2022
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be
Slide 3: Back to strong momentum in 2021
Back to strong momentum in 2021 Jean-Claude Labrune Chairman & CEO © Cegedim 2022 3
Slide 4: A solid foundation for future success
A solid foundation for future success © Cegedim 2022 4
Slide 5: Business Group review
Business Group review Laurent Labrune Managing Director © Cegedim 2022 5
Slide 6: Revenue €524.7m, Net Profit, Net Debt, Employees
Revenue Net Profit Net Debt Employees Offshoring excl. IFRS 16 €524.7m €26.3m 5,643 €165.0m +5.6% +5.0% +6.3% +322 23% 26% reported Lfl x 2.4 +€15.4m +0.5% +€0.8m 2020 2021 © Cegedim 2022 6
Slide 7: Cegedim: A strong European presence
Cegedim: A strong European presence © Cegedim 2022 7
Slide 8: Breakdown of business by activity
Breakdown of business by activity 56% 16% Software & services +5.4% Flow +6.1% Cegedim Santé – solutions for HCP in France including Digitalization of contract to pay process Maiia HCP booking platform – Healthcare in France, third party payement CHS – Solutions for HCP in Europe – All sectors in Fr
Slide 9: Strong regulatory market drivers
Strong regulatory market drivers Government eHealth Programs Finance Law – Ma Santé 2022 – Mandatory e-invoicing by 2024/2026 in major EU countries – Ségur de la Santé – Trend toward VAT Clearance (Italian model, EU scheme under preparation) Covid-specific measures Health Insurance regulation – PSC
Slide 10: Software & services
Software 56% +5.4% & services of 2021 Group revenue FY 2021 Revenue reported growth Cegedim Santé – solutions for HCP in France including Maiia HCP booking platform CHS – Solution for HCP in Europe Cegedim Insurance – Solutions for Health Insurers Cegedim SRH – HCM Suite © Cegedim 2022 10
Slide 11: Software & services: Cegedim Santé
Software & services: Cegedim Santé Our mission: Help healthcare professionals focus on patients care and patient pathway © Cegedim 2022 11
Slide 12: Software & services: Cegedim Santé
Software & services: Cegedim Santé 100,000 The deal HCP users – Reserved capital increase of €65 million for 18% of Cegedim Santé equity Cegedim Santé – Industrial partnership: Improving patient pathway – Accelerate Cegedim Santé growth – Cegedim Santé to simultaneously acquire MesDocteurs (Groupe V
Slide 13: Creating a unique healthcare ecosystem
Creating a unique healthcare ecosystem © Cegedim 2022 13
Slide 14: Healthcare
Healthcare – Maiia doubling its revenue – Maiia Gestion Kiné (>2,000 clients in 1 year) – dentist and doctor versions to follow mid 2022 – Cegedim RX UK: Award-winning Pharmacy – Smart RX NeV: next-generation solution launched product of the year – >30 pharmacy groups signed Smart 360 BI solution –
Slide 15: Cegedim Insurance
Cegedim Insurance 43 million beneficiaries managed on our solutions – Beyond: First customer signed on our new cloud solution – “Easy Collectif” new module under deployment for 2 large customers to address the reform of the Supplementary social protection (PSC) for civil servants – Several delegated
Slide 16: Data & marketing
Data & 19% +12.1% marketing of 2021 Group revenue FY 2021 Revenue reported growth Real World database (France, the UK, Romania, Spain, Italy and Germany) and Sales Audit Digital and print marketing at pharmacies in France Digital marketing for French and Belgium doctors 16
Slide 17: Creating a unique healthcare ecosystem
Creating a unique healthcare ecosystem © Cegedim 2022 17
Slide 18: DATA
DATA GERS THIN RWE – Revenue doubled in 5 years – THIN now available in Italy in addition to FR, UK, SP, BE – Increasing need for data linked to Covid – Germany planned end-2022 – Future development of GMS & – 5-year EMA contract e-commerce – Algorithms for rare disease detection © Cegedim 2022 18
Slide 19: DATA: Cycling approach for rare disease detection
DATA: Cycling approach for rare disease detection 1. Find Algorithm diagnosed AI patients’ cohort into THIN® Gaucher Disease Angelman 31 disease patients 64 patients GP Research of Von patients through Colic Willebrand angiodysplasia diagnostic label disease 72 patients 88 patients in France Gastro
Slide 20: Digital advertising
Digital advertising – Launching Futuramedia in the UK – Nice recovery after 2020 public health crisis – Trend toward point of sale theatralisation – 3,100 pharmacy partners +19% vs. 2020 © Cegedim 2022 20
Slide 21: Digitalization of key company processes
Digitalization of key company processes Human Capital Management (SRH) – New deals for a total of 200,000 employees to manage – Public sector opening up: +10 contracts signed in 2021 – New cloud version of MyTeamsRH launched 10 customers in production – CPAs adopting Rue de La Paie, powered by Teams
Slide 22: Digitalization of key company processes
Digitalization of key company processes Contract to Pay (SY) – Expecting to handle 1 billion transactions in 2022 – International Network effect – Slower growth than expected during H1 2021 linked to Covid pandemic in the UK & Germany – Strong increase of new orders: +30% vs 2020 – Hospitalis : expa
Slide 23: Cegedim is confident in its future growth potential
Cegedim is confident in its future growth potential Our markets have solid growth prospects Our well-positioned businesses despite short-term uncertainties are expanding margins We are driving innovation We are forming strong partnerships Operational and financial discipline form the foundation © Ce
Slide 24: Finance
Finance Pierre Marucchi Managing Director © Cegedim 2022 24
Slide 25: FY2021 The big picture
FY2021 The big picture Revenue ROI* Exceptional Operating €524.7m €39.9m items* income +5.6% +5.0% (4.4)% €(1.8)m €(19.9)m €3.8m reported LFL * Recurring operating income 2020 2021 €43.7m 2021 revenues at the top +100.2% +€21.9m * Other non-recurring operating of the Group’s estimated income and exp
Slide 26: FY2021: Accelerating top line
FY2021: Accelerating top line Revenue Quarterly revenue change Comments – High share of recurring revenue – 90.4% generated in euros – Acquisition of Medimust and Kobus in Q2 2021 © Cegedim 2022 26
Slide 27: FY2021: Payroll costs
FY2021: Payroll costs Payroll costs Headcount Offshore trend Onshore Offshore +77 5,643 +8.8% 5,311 +255 +€22.6m €256.2m €278.8m +6.3% 4,101 4,178 +332 77% 74% 1,465 1,210 23% 26% FY 2020 Offshore* Onshore* FY 2021 FY 2020 FY 2021 * Net change FY 2020 FY 2021 © Cegedim 2022 27
Slide 28: Significant R&D investment impacts the P&L
Significant R&D investment impacts the P&L Capitalized R&D D&A R&D Impact on recurring +3.8% IFRS16 operating income (3.6)% +€2.3m Others €(1.8)m Capitalized R&D €(1.8)m €62.5m €64.8m €50.8m €49.0m D&A of R&D +€2.7m €30.6m €33.3m Net negative impact on €(4.5)m recurring operating income €15.9m €16.5
Slide 29: FY 2021 P&L: Reflects continued investments
FY 2021 P&L: Reflects continued investments P&L in € million FY 2020 FY 2021 % change €m change Revenue 496.9 524.7 +5.6% +27.8 EBITDA 104.2 104.7 +0.5% +0.5 Margin 21.0% 20.0% (101) bps D&A (62.5) (64.8) +3.8% +2.3 Recurring operating income 41.7 39.9 (4.4)% (1.8) Margin 8.4% 7.6% (79) Other non-re
Slide 30: Software & services
Software 56% €292.0m +5.4% €12.8m (46.1)% & services of 2021 Group revenue Revenue Recurring Operating Income Revenue Recurring operating income (46.1)% €23.8m €(11.0)m 8.6% margin €12.8m 4.4% margin – “Project-based” business recovering, mainly in the health FY 2020 FY 2021 insurance segment – Recu
Slide 31: Flow
16% €84.2m +6.1% €11.1m +4.4% Flow of 2021 Group revenue Revenue Recurring operating income Revenue Recurring operating income +4.4% +€0.5m €10.6m €11.1m 13.4% margin 13.2% margin FY 2020 FY 2021 – Recurring operating income margin virtually stable – Third-party payment management margin affected by
Slide 32: Data & marketing
Data & 19% €98.4m +12.1% €14.6m +39.5% marketing of 2021 Group revenue Revenue Recurring operating income Revenue Recurring operating income +39.5% +€4.1m €14.6m 14.8% margin €10.5m 11.9% margin FY 2020 FY 2021 – Data activities up strongly – Profitability increased at the French data activity – Sol
Slide 33: BPO
9% €47.3m (3.3)% €2.5m n.m. BPO of 2021 Group revenue Revenue Recurring operating income Revenue Recurring operating income +€2.7m €2.5m €(0.2)m 5.2% margin (0.5)% margin FY 2020 FY 2021 – This business, which largely involves managing services on behalf of – Recurring operating income now in positi
Slide 34: Free cash flow from operations
Free cash flow from operations FCF from operations In € million FY-2020 FY 2021 Cash flow before taxes and interest 98.2 105.2 Change in working capital 18.5 (5.1) 1 Working capital impacted by Corporate tax paid (6.3) (4.1) postponement of €14m of 2020 social charges to 2021 Net cash flow from oper
Slide 35: Net debt trend
Net debt trend €(14.0)m €45.9m €(5.0)m €(2.4)m €(3.4)m €(16.8)m €(5.1)m €178.2m Restated FCF from operation (2) Repayment of leases liabilities €164.2m Leverage Leverage x1.7 €165.0m x1.6 Leverage Acq. Treasury shares x1.6 Restatement (1) Interest paid Acquisitions Others Dec. 2020 Dec. 2020 Dec. 20
Slide 36: Financing
Financing Principal financing Debt covenant Status Amount Maturity Euro PP - €135.0m October 2025 Statut Limit Shareholder lan - €45.1m November 2025 Leverage 1.29 < 2.50 RCF Undrawn €65.0m October 2024 Interest cover 16.89 > 4.50 Overdraft Unused €24.0m - Cash & cash equivalents - €24.2m - as of De
Slide 37: Sound financial structure
Sound financial structure Assets In € million FY-2020 FY 2021 Shareholders equity & Liabilities Goodwill 186.0 187.1 Intangible assets 163.0 179.9 In € million FY-2020 FY 2021 Tangible assets 110.3 121.7 1 Shareholder equity 207.9 232.4 Financial assets 20.5 21.3 Long-term financial debt 186.3 186.6
Slide 38: Dividend
Dividend Dividend Dividend per share (1) €0.50 Dividend payout % of net income, Group share (2) c.26% % of free cash flow from operations (2) c.22% (1) Dividend proposed for shareholders’ approval at the June 17, 2022, General Meeting (2) Estimated as of March 24, 2022 © Cegedim 2022 38
Slide 39: M&A strategy
M&A strategy 2021 Acquisition Policy – Medimust (1) – Opportunistic approach – Kobus Tech (2) – Small bolt-on acquisitions – Complementary to our activities – Market share or technology (1) Initially consolidated on May 31, 2021 (2) Initially consolidated on June 30, 2021 2022 Operation 2022 Acquisi
Slide 40: Outlook
Outlook Cegedim’s 3 pillars Priorities for 2022 – Continue to reinforce Cegedim’s global leadership position – Continue R&D investment – Increase customer loyalty – Develop business synergies Innovation Financial Discipline M&A – Expand margins – Make small bolt-on acquisitions © Cegedim 2022 40
Slide 41: Outlook
Outlook Outlook 2022 Outlook – For 2022, the impacts of the Covid-19 pandemic are still difficult to assess – Despite the economic, geopolitical and monetary uncertainties around the world, the Group is confident it can achieve revenue growth and a stable recurring Revenue Recurring operating income
Slide 42: 2022 Financial agenda
2022 Financial agenda © Cegedim 2022 42
Slide 43: Q&A session
Q&A session Jean-Claude Laurent Pierre Labrune Labrune Marucchi © Cegedim 2022 43
Slide 44: Thank you for your attention
Thank you for your attention For any additional information: janeryk.umiastowski@cegedim.com