Cegedim Sa · EURONEXT:ALCGM
Cegedim Sa — Non-Deal Roadshow (February 2017)
55 slides from Cegedim Sa's roadshow presentation, Feb 21, 2017
Slide 1: Revenue FY 2016 Roadshow London
ig Revenue Roadshow London
Slide 2: 2016 USA Roadshow
2016 » USA Roadshow <4
Slide 3: Agenda and Safe Harbor Statement
AGENDA 01 SAFE HARBOR STATEMENT ---------- This presentation contains forward- looking statements (made pursuant Cegedim at a glance to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995). By their nature, forward- 02 looking statements involve risk and uncertainty.
Slide 4: Cegedim at a glance
Cegedim mi, cegedim
Slide 5: An innovative technology and services company in digital data flow
» Founded in 1969 » An innovative technology and services company in the field of digital data flow management for healthcare ecosystems and B2B, and a Cegedim business software publisher for healthcare and insurance professionals » A global company with headquarter in France and a local presence in
Slide 6: Cegedim: Key Figures
€441m Revenue FY 2016 €79m €216m Cegedim: Key Figures EBITDA FY 2015 Net Debt Sep. 2016 11 Countries +4,000 Workforce Dec. 2016 │6│ © Cegedim 2017
Slide 7: Our Presence
Our Presence │7│ © Cegedim 2017
Slide 8: Our Clients
Our Clients │8│ © Cegedim 2017
Slide 9: Our Business
Our Business │9│ © Cegedim 2017
Slide 10: Our divisions
Our divisions │10│ © Cegedim 2017
Slide 11: Our Positions
Our Positions │11│ © Cegedim 2017
Slide 12: Our Strengths
Our Strengths │12│ © Cegedim 2017
Slide 13: Our R&D
Cegedim Revenue. ~ Revenue on Capitalized Capitalized R&D R&D Ratio
Slide 14: Cegedim Strategy
Cegedim mi, cegedim
Slide 15: Business Model Transformation
2018 Full benefit of Group transformation Well-positioned for the coming years Business Model Transformation 2016 – 2017 Group transformation 2015 Beginning of Cegedim strategic │15│ repositioning © Cegedim 2017
Slide 16: Business Model Transformation
• Disposal • Robust IT infrastructure • Debt management • Experience of SaaS, BPO • Restatement of financial leases and Digital • Bolt-on acquisition • Talented and motived people • Management changes • Financial flexibility Business Model Transformation • Cloud • Drives more recurring revenue • Saa
Slide 17: Business Momentum
Business Momentum Business Model Market Financial Policy Transformation Opportunities • SaaS / Cloud Significant market Expand operating • BPO opportunities in all margin with strong • Digital of our business financial disciplines Transformation Pursuing market │17│ well under way leadership Revenue
Slide 18: Business Model Transformation Progress
• New Management Team at Healthcare Professionals in US, UK and France » Increased investment in R&D allowed to launch, Business Model among others: Transformation » Pulse Cloud Practice Management for US doctors » Smart Rx for French pharmacists, Progress » Vision Anywhere for UK doctors » Cegedim
Slide 19: Update on Global Headcount
Update on Global Headcount │19│ © Cegedim 2017
Slide 20: A sustainable business model
Global Macro Trend A sustainable business Cegedim • E-health model contributes • Interconnectivity to develop • Digitalization business • Outsourcing Demand for Cegedim’s products and services │20│ © Cegedim 2017
Slide 21: Drivers
Regulatory Economy Drivers Demography Consumer Technology Improve Population Health, focus on cost and quality © Cegedim 2017
Slide 22: Majority of the portfolio is aimed at growth
Insurance Solutions Cegedim ebusiness Cegedim SRH • Regulation • Digital • SaaS • BPO, Digital • Regulation • BPO Majority of the portfolio Digital media Data Pharmacists is aimed at Real world growth • Digital • evidence • SaaS • Acquisition • Innovation in real time Cegelease Paramedics GPs • Sign
Slide 23: Finance: It is all about performance
Finance: It is all about performance
Slide 24: FY 2016 Revenue
FY 2016 Revenue © Cegedim 2017
Slide 25: FY-16 Revenue Highlights
• The business model transformation initiated in fall 2015 is beginning to pay off • L-f-L revenue growth exceeds guidance • L-f-L growth at the Health insurance, HR and e-services division picked up yet again in Q4 • Healthcare Professionals division declined by 4.2% in Q4 +5.4%% Cegedim Group +4.8
Slide 26: Q4 2016 revenue growth by activity
+5.4% (2.6)% 0.0% €122.5m €119.3m Q4 15 L-f-L Forex Structure Q4 16 Revenue growth Q4 2016 revenue +12.5% (9.9)% n.s. €122.5m €119.3m 5.4% L-f-L Insurance , HR Activities not professionals & e-services 2.7% reported Healthcare allocated Q4 2016 revenue growth Q4 15 Health Q4 16 │26│ Growth by activi
Slide 27: FY 2016 revenue growth by activity
+4.4% (1.7)% 0.8% €440.8m €426.2m FY 15 L-f-L Forex Structure FY 16 Revenue growth FY 2016 revenue +11.8% (6.4)% n.s. €440.8m €426.2m Insurance , HR 4.4% L-f-L Activities not professionals & e-services Healthcare allocated 3.4% reported Health FY 2016 revenue growth FY 15 FY 16 │27│ Growth by activi
Slide 28: Health Insurance, HR & e-services Highlights
+1.4% €262.3m +10.5% EMEA (0.2)% exc. France €234.7m 3.7% France 96.3% FY 15 L-f-L Forex Structure FY 16 Health Revenue breakdown by geography Revenue growth Insurance, HR & e- +13.0% services +10.3% +9.5% Highlights +8.7% • Double-digit growth at BPO business for health insurance companies (iGestio
Slide 29: Healthcare Professionals Highlights
€187.2m (2.8)% Americas 8.6% (3.7)% France EMEA 58.9% 0.0% exc. France €175.2m 32.4% FY 15 L-f-L Forex Structure FY 16 Revenue breakdown by geography Revenue growth Healthcare Professionals Highlights +0.5% • Decline in revenue was due to (6.3)% (0.7)% (4.2)% • Transition to cloud-based offerings •
Slide 30: FY 2016 Outlook
FY 2016 Outlook © Cegedim 2017
Slide 31: Potential impact of Brexit
In 2015, the UK represented 15.1% Of consolidated Group revenue 19.2% Potential Of consolidated impact of Group EBIT Brexit • Cegedim operates in the UK in local currency, as it does in all the countries where it operates. • No major European health program at work in the UK. Thus, the impact on the
Slide 32: Explanation of the revision of 2016 EBITDA guidance
• Cegedim’s management has appointed a new CEO Explanation of in the US the revision of • Change its approach to two disputes with customers 2016 EBITDA in the US guidance • These changes resulted in the Group signing agreements that led to a conversion of receivables into a significant loss in 2016
Slide 33: Outlook
€60m FY 2016 EBITDA relative to 2015 As of January 26, 2017 • The business model transformation is well under way, so Outlook growth momentum is expected to pick up in 2017 and lead to improving profitability in the future • We expect to see the full impact of the transformation in 2018 • The Group
Slide 34: Historical Performance
Historical Performance © Cegedim 2017
Slide 35: P&L review
In € million Sep.16 Sep.15 % change Revenue 318.3 306.9 +3.7% EBITDA 40.6 52.3 (22.4)% Margin 12.7% 17.0% (426)bps P&L review D&A (25.3) (22.4) +12.7% EBIT before special items 15.3 29.9 (48.9)% Margin 4.8% 9.7% (493)bps Special items (5.7) (5.0) +14.3% EBIT 9.6 24.8 (61.6)% Margin 3.0% 8.1% (510)bp
Slide 36: P&L Review
P&L Review Revenue EBITDA Robust revenue growth D&A on l-f-l on 2016 EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │36│ © Cegedim 2017
Slide 37: P&L Review
P&L Review Revenue EBITDA Well diversified revenue sources D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │37│ © Cegedim 2017
Slide 38: P&L Review
P&L Review Margin improved in Q3-16 Revenue EBITDA D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │38│ © Cegedim 2017
Slide 39: P&L Review
P&L Review EBITDA bridge over Revenue first 9M of 2016 EBITDA D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │39│ © Cegedim 2017
Slide 40: P&L Review
P&L Review Amortization of R&D Revenue increased by €2.9m EBITDA D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │40│ © Cegedim 2017
Slide 41: P&L Review
P&L Review Revenue Impact from EBITDA and D&A EBITDA D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │41│ © Cegedim 2017
Slide 42: P&L Review
P&L Review Revenue Increased mainly due to the increase in restructuring costs EBITDA D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │42│ © Cegedim 2017
Slide 43: P&L Review
P&L Review Revenue Impact from EBITDA, EBITDA D&A and special items D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │43│ © Cegedim 2017
Slide 44: P&L Review
P&L Review Revenue Cost of net debt EBITDA fell considerably D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │44│ © Cegedim 2017
Slide 45: P&L Review
P&L Review Revenue Impact from EBITDA deferred taxes D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │45│ © Cegedim 2017
Slide 46: P&L Review
P&L Review Impact from taxes and Revenue activities sold EBITDA D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │46│ © Cegedim 2017
Slide 47: P&L Review
P&L Review Revenue Negative EPS from cost of net debt EBITDA D&A EBIT b.s.i. Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │47│ © Cegedim 2017
Slide 48: 9M-16 Balance Sheet
In € million Sep.16 Dec.15 Assets Goodwill 183.8 188.5 9M-16 Other non-current assets Cash & Cash equivalent 237.7 9.1 223.7 231.3 Balance Other current assets Assets held for sale 228.5 0.8 220.0 0.8 Sheet 659.9 864.3 Total assets Shareholders equity & liabilities Shareholder equity 195.4 228.1 Oth
Slide 49: Net Debt Situation
Net Debt Situation │49│ (1) Expected earn-out on Activus, Nightingales and Webstar (2) Paid for the total redemption of the 6.75% bond maturing in 2020 © Cegedim 2017
Slide 50: Credit rating
Credit rating BB S&P Rating assessed on April 28, 2016 stable outlook Solide Capital Maturity profile Structure • RCF: €200m due 2021, €169m drawn at Sept 30, 2016 │50│ • Shareholder Loan: €45m due 2021 © Cegedim 2017
Slide 51: Cegedim and the financial market
Cegedim and the financial market
Slide 52: Cegedim: Enterprise value
Analyst coverage. • Kepler Cheuvreux Benjamin Terdjman • Gilbert Dupont Guillaume Cuvillier • Société Générale Patrick Jousseaume Entreprise value trend 800 Cegedim: 671.5 700 Entreprise 615.5 601.1 600 value 566.3 582.3* 558.5 500 Net debt 400 Market 300 Capitalization 200 100 0 Sep. Dec. Mar. Jun.
Slide 53: Shareholder Structure as of Dec. 2016
Others 4% Shareholder BPI USA France 29% 34% Structure as 15.0% of Dec. 2016 Free float UK 33% 32.2% FCB 52.7% Source: IPREO Data on Sept. 26, 2016 Cegedim 0.2% │53│ © Cegedim 2017
Slide 54: Events 2017
EVENTS 2017 22 23 27 March March April 2016 Earnings Analyst Meeting Q1-17 Revenue 27 20 26 July September October Q2-17 Revenue HY-17 Earnings Q3-17 Revenue © Cegedim 2017
Slide 55: Jan Eryk Umiastowski
Jan Eryk Umiastowski Chief Investment Officer – Head of Investor Relations janeryk.umiastowski@cegedim.com Tel: 00 33 1 49 09 33 36 – Mob: 00 33 6 73 25 96 34 © Cegedim 2017