Cegedim Sa · EURONEXT:ALCGM

Cegedim Sa — Investor Day (December 2016)

182 slides from Cegedim Sa's investor day presentation, Dec 14, 2016

Slide 1: The ongoing business model transformation
inventor The ongoing business model transformation:
Slide 6: Cegedim: the ongoing business model transformation is on track
Cegedim: the ongoing business model transformation is on track Laurent Labrune Managing Director © Cegedim 2016
Slide 8: 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 9: Agenda
AGENDA 05 The Cloud transition of CHS 06 Finance: It is all about performance 07 Cegedim and the financial market 08 Final remarks © Cegedim 2016
Slide 11: Cegedim at a glance
Cegedim at a glance Jan Eryk Umiastowski Chief Investment Officer & Head of Investor Relation (CIO & HIR) © Cegedim 2016
Slide 12: An innovative technology and services company
Founded in 1969 An innovative technology and services company in the field of digital data flow management for healthcare ecosystems and B2B, and a business software Cegedim publisher for healthcare and insurance professionals A global company with headquarter in France and a local presence in 11 co
Slide 14: Cegedim: Key Figures
€426m Revenue FY 2015 €79m €216m Cegedim: Key Figures EBITDA FY 2015 Net Debt Sep. 2016 11 countries 3,995 Workforce Sept. 2016 │14│ © Cegedim 2016
Slide 28: Do you know?
Business model Significant growth transformation opportunities • SaaS / Cloud • Saas migration • BPO • Value expansion via Digital services (BPO…) Do you • • New users know? Operational highlights Financial highlights People R&D people Revenue EBITDA margin 426bps +426 +158 +4.0% 3,995 753 €306.9m 1
Slide 30: Our R&D
ie Revenue on Capitalized Capitalized R&D R&D Ratio €18.7m 8.7% as of June 2016 as of June 2016
Slide 34: Business Momentum
Business Momentum MOMENTUM OPPORTUNITY STRATEGY • Clients are ready • Market leadership • Cegedim is ready • Significant market • Innovation opportunities in all of • Transformation well • Revenue up by 4.0% our business under way on L-f-L over the first • Based on willingness • SaaS offering 9 mont
Slide 36: Business model transformation progress
2018 Full benefit of Group transformation Well positioned for coming years Business model transformation progress 2016 – 2017 Group transformation 2015 Beginning of Cegedim strategic repositioning │36│ © Cegedim 2016
Slide 38: 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 • Drive more recurring revenue • Saas
Slide 40: A sustainable business model
Global Macro Trend A sustainable business Cegedim • E-health model contributes • Interconnectivity to developed • Digitalization business • Outsourcing Demand for Cegedim’s products and services │40│ © Cegedim 2016
Slide 42: Drivers
Regulatory Economy Drivers Demography Consumer Technology Improve Population Health, focus on cost and quality © Cegedim 2016
Slide 44: 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 47: Insurance market trends and innovative solutions
Insurance market trends and innovative solutions Philippe Simon President Cegedim Insurance Solutions Pierre-Henri Comble VP Strategic Marketing Cegedim Insurance Solutions © Cegedim 2016
Slide 48: Goals
» Our vision for the market in 2034 Video » The factors driving market GOALS transformation » Our development: some material accomplishments » Our ambitions © Cegedim 2016
Slide 50: Our vision for the market in 2034
Our vision for the » https://youtu.be/iSI4FPlgh8U market in 2034 © Cegedim 2016
Slide 52: Agenda
AGENDA 01 / Market transformation / • • Regulatory changes New practices 02 / Our development / 03 / Our ambitions / © Cegedim 2016
Slide 54: Our market: Regulatory impacts
Rules on the scope of supplemental health insurance policies • For working age individuals, with the adoption of ANI, ACS, and the development of “responsible” policies • For retirees, possibly in 2017? • For students, at some point? Our market Impacts for our Development Regulatory clients opportun
Slide 56: Our market: Regulatory impacts
Greater volatility in policies (e.g. notably under the Hamon law) Impacts for our Opportunity clients for us Higher turnover and client Help expand cross-selling, notably by acquisition costs, lower bundling Personal Protection and profitability Health • Market not yet saturated in France, Our marke
Slide 58: Our market: New Practices
Continuous development of multichannel and multimedia Impacts for our clients / us A rising share of management activity can be delegated to the policyholder The same services must be available through multiple channels (health professional software, online portal, smartphone, tablet, etc.), and sma
Slide 60: Our market: New Practices
Market maturity in BPO, amid increased pressure on management costs • Increased interest from the market’s major players • “Decoupling” of policy and benefits management Impacts for our clients / us Likely commoditization of services Our market New Practices From BI to Big Data • Access, utilize and
Slide 62: Our development
• Some key figures: » CETIP (third-party payments) now manages third-party payments for more than 20 million beneficiaries » iGestion (Health and Personal Protection BPO) doubled in size in 2016, and now manages more than 500,000 beneficiaries • Transforming the publisher model to strengthen investm
Slide 66: New offerings, developed in-house in 2016
New offerings, developed in-house in 2016 • Comprehensive support for beneficiaries: from cure to care Our • Provide beneficiaries and companies with reports ambitions that include aggregated, anonymized data Spotlight on Prevention • Respect security and data protection standards: Cegedim has recei
Slide 74: Putting numerous sources of data to good use
Putting numerous sources of data to good use Our ambitions Spotlight on Take Connected Big Data Invoices charge devices Healthcare │74│ Institutions Professionals © Cegedim 2016
Slide 76: Using data to offer new services
Using data to offer new services at every stage of the beneficiary’s healthcare experience Our ambitions Spotlight on Big Data │76│ © Cegedim 2016
Slide 78: Some examples of new offerings
Some examples of new offerings: • Enhanced award of benefits Our ambitions • Early detection (i.e. before payment) of unusual situations and anti-fraud measures Spotlight on Big Data • Enhanced business line controls of the most costly segments, for example hospitals • Proposals of additional covera
Slide 80: Expand our presence internationally
• Activus acquired in July 2015 • Less than a year later, the first client signed up to the core Act-isure solution for the IPMI market: MSH International • 4 sites in France, North America, APAC, Middle East Our ambitions • Central to our R&D investments: Expand our • Digitalization of services (on
Slide 83: Meeting the challenge of new medical practices
Meeting the challenge of new medical practices Dr. Eric Jarousse Vice-President of Healthcare Software © Cegedim 2016
Slide 84: Contents
CONTENTS 01 / Young doctors in 2016 / 02 / The challenge of new practices at multidisciplinary health facilities / 03 / Cegedim at the 2016 Entretiens de Bichat gathering / 04 / Cegedim sponsors the e-Pocrate Challenge / © Cegedim 2016
Slide 86: The Medical Profession
January 2016 CNOM (national council of physicians) report: • Young doctors: General practitioner The Medical 3,894 Positions opened up in 2015 to participants taking the Examens Classants Nationaux national qualifying exams, compared with 3,200 in 2008 Profession 9% of new CNOM members in 2015 want
Slide 88: The challenge of new practices at multidisciplinary health facilities
The challenge of new practices at multidisciplinary health facilities © Cegedim 2016
Slide 90: Coordination of care: different tools for different cultures
In a multidisciplinary health facility, healthcare professionals cooperate in a variety of ways*. • “Informal” cooperation involves simple processes that have not been formally documented, but which help prevent disruptions to the patient’s course of care. The tools most widely Coordination used to
Slide 92: Measuring efficacy
According to a recent study by IRDES, general practitioners at health facilities, clinics and centers have a higher quality of practice […] for virtually every indicator we considered”*. €6,756/year/GP on €50,000/year for the Measuring average in 2015) MSP efficacy It is fundamental for every MSP to
Slide 94: Cegedim at the 2016 Entretiens de Bichat gathering
Cegedim At the 2016 Entretiens de Bichat gathering © Cegedim 2016
Slide 96: Entretiens de Bichat: Cegedim Symposium
Entretiens de Bichat: Cegedim Symposium , October 8, 2016 │96│ © Cegedim 2016
Slide 98: A scenario to demonstrate the tools available with Solution MSP
A scenario to demonstrate the tools available with Solution MSP: our ecosystem is one of the market’s most comprehensive │98│ © Cegedim 2016
Slide 100: A scenario to demonstrate the tools
Monitoring chronically ill patients and coordinating care: • Core tools: » Forms » Messaging (internal + MSS system) » DMP patient medical records » Reimbursement history • Mobility tools: » MLM mobile edition A scenario to » Simply-Vitale demonstrate the tools • Coordination between pharmacists and
Slide 106: e-Pocrate Challenge
The second annual E-pocrate challenge focused on using new technologies to improve patients’ course of care. Four companies awarded Prizes to the top submissions in their chosen field: • The Cegedim Prize for observing and monitoring chronically ill patients  We chose to mentor the following teams:
Slide 109: The Cloud transition of Cegedim Healthcare Software
The Cloud transition of Cegedim Healthcare Software Stefan Janssens President of Cegedim Healthcare Software © Cegedim 2016
Slide 110: Q1: Who is Stefan Janssens?
Experience: Belgian Nationality, based in Paris since 2007 Experience: KPMG (4Y), Alvey Europe (1Y), CellPro (2Y) Q1: Services to June 1995 : Walsh, IMS, Synavant, Dendrite, Who is Stefan Healthcare: Cegedim, IMS Janssens? GM in various countries, VP Strategic Solutions, Key roles: Cegedim President
Slide 112: Q2: Any major organisational changes and investments?
• New Management Team in US Q2: • New CEO Cegedim Rx • Increased investment in team and solutions for Latam Any major organisational • Opened offices in Russia/Ukraine changes and • Rebranding Alliadis to Smart Rx investments? • Spain : Split Software Factory from the Local Business • Headcount R&D
Slide 114: Q3: What is Cegedim R&D Strategy?
All new of future solutions developed by Cegedim will be Cloud based Q3: Reduce cost of • Build a SaaS platform shared across Cegedim BU’s What is development, • Promote best practices of DevOps Cegedim maintenance • SaaS Maturity Plan program R&D and production Strategy? Provide added value to • Ac
Slide 116: Our strengths to make it a success
Talented and motivated Our people Our vision strengths Experience To make it a of SaaS success Robust IT Cloud infrastructure © Cegedim 2016
Slide 120: Q4: Any major solution milestones?
» Pulse Cloud Practice Management: up and running in 14 sites (video) https://youtu.be/fN-LUM7TTkw Q4: Any major solution milestones? │120│ © Cegedim 2016
Slide 122: Q4: Any major solution milestones?
» Pulse Cloud Practice Management: up and running in 14 sites (video) » Recent launch Smart Rx (demo) » Demo by Virginie Molle Boissier Q4: Any major solution milestones? │122│ © Cegedim 2016
Slide 124: Smart Rx has the tools to stay in step with pharmacists' needs
Smart Rx has • The backing of the Cegedim Group the tools to stay in step • Expertise in the French pharmaceutical market with pharmacists’ • The boost of a cutting-edge solution designed needs to drive performance through technological innovation │124│ © Cegedim 2016
Slide 126: The market's first PaaS solution
CLOUD • Controls & Management • Loyalty Management • Purchases • Patient intake The market’s • Medication & Personal first paas Care database DASHBOARD solution: simple, yet modern • Control PHARMACY • Mobility • Data sharing • Dispensing │126│ • Invoicing • Inventories © Cegedim 2016
Slide 128: Q4: Any major solution milestones?
» Pulse Cloud Practice Management: up and running in 14 sites (video) » Recent launch Smart Rx (demo) » INPS: Vision Anywhere  350 practices use extensively (video) Q4: Any major https://youtu.be/sRKxdhDNOM0 solution milestones? │128│ © Cegedim 2016
Slide 130: Q4: Any major solution milestones?
» Pulse Cloud Practice Management: up and running in 14 sites (video) » Recent launch Smart Rx (demo) » INPS: Vision Anywhere  350 practices use extensively (video) Q4: Any major » Business Plan and Roadmap for Healthi Dispenser solution (end 2017) milestones? » Docavenue (3,000 clients) » BCB: Tun
Slide 133: Finance: It is all about performance
Finance: It is all about performance Jan Eryk Umiastowski CIO & HIR © Cegedim 2016
Slide 134: P&L Review: Robust revenue growth
Revenue EBITDA Robust revenue growth D&A on l-f-l on 2016 P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │134│ © Cegedim 2016
Slide 136: P&L Review: Well diversified revenue sources
Revenue EBITDA Well diversified D&A revenue sources P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │136│ © Cegedim 2016
Slide 138: P&L Review: Margin improved in Q3-16
Revenue Margin improved in Q3-16 EBITDA D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │138│ © Cegedim 2016
Slide 140: P&L Review: EBITDA bridge over first 9M of 2016
Revenue EBITDA bridge over EBITDA first 9M of 2016 D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │140│ © Cegedim 2016
Slide 142: P&L Review: Amortization of R&D increased
Revenue Amortization of R&D EBITDA increased by €2.9m D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │142│ © Cegedim 2016
Slide 144: P&L Review: Impact from EBITDA and D&A
Revenue Impact from EBITDA EBITDA and D&A D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │144│ © Cegedim 2016
Slide 146: P&L Review: Increase in restructuring costs
Revenue Increased mainly due to the EBITDA increase in restructuring costs D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │146│ © Cegedim 2016
Slide 148: P&L Review: Impact from EBITDA, D&A and special items
Revenue Impact from EBITDA, EBITDA D&A and special items D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │148│ © Cegedim 2016
Slide 150: P&L Review: Cost of net debt fell considerably
Revenue Cost of net debt EBITDA fell considerably D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │150│ © Cegedim 2016
Slide 152: P&L Review: Impact from deferred taxes
Revenue Impact from EBITDA deferred taxes D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │152│ © Cegedim 2016
Slide 154: P&L Review: Impact from taxes and activities sold
Revenue Impact from taxes and EBITDA activities sold D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │154│ © Cegedim 2016
Slide 156: P&L Review: Negative EPS from cost of net debt
Revenue Negative EPS from cost of EBITDA net debt D&A P&L EBIT b.s.i. Review Special items EBIT Cost of debt Total Taxes Net earnings Earnings per share │156│ © Cegedim 2016
Slide 158: 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 160: Net Debt Situation
Net Debt Situation │160│ (1) Expected earn-out on Activus, Nightingales and Webstar (2) Paid for the total redemption of the 6.75% bond maturing in 2020 © Cegedim 2016
Slide 162: 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 │162│ • Shareholder Loan: €45m due 2021 © Cegedim 2016
Slide 164: Clear Capital Allocation Principals
As of September 30, 2016 Clear Capital €43.7m Maintenance Capex R&D capitalization Allocation ≈€20m Principals Bolt-on acquisition €0.0 Dividends │164│ © Cegedim 2016
Slide 166: 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 168: Outlook
Cegedim, expects(1) for the full year 2016, despite economic uncertainty and a challenging geopolitical environment: +4.0% Revenue from continuing activities As of December 14, 2016 Outlook Down EBITDA relative to 2015 However some BPO €10m • However some BPO impacts can be expected in 2016 impacts
Slide 171: Cegedim and the financial market
Cegedim and the financial market Jan Eryk Umiastowski CIO & HIR © Cegedim 2016
Slide 172: 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 566.3 558.5 544.7* 500 Net debt 400 Market 300 Capitalization 200 100 0 Sep. Dec. Mar. Jun.
Slide 174: Shareholder Structure as of Nov. 2016
Others 4% Shareholder BPI USA France 29% 34% Structure as 15.0% of Nov. 2016 Free float UK 33% 32.3% FCB 52.7% Source: IPREO Data on Sept. 26, 2016 │174│ © Cegedim 2016
Slide 176: Events 2017
EVENTS 2017 26 22 23 January March March 2015 Revenue 2015 Earnings Analyst meeting 27 27 20 April July September Q1-17 Revenue HY-17 Revenue HY-17 Earnings © Cegedim 2016
Slide 178: Well-positioned businesses with margin expansion opportunities
» Leadership positions across broad diversified portfolio drive steady long-term growth Well- » Unique value propositions enable us to create positioned unmatched customer offerings businesses with margin » Our comprehensive solutions and intimate understanding of the market give is a unique expansi
Slide 180: We are driving our business for long-term sustainable profitable growth
We are driving our MOMENTUM OPPORTUNITY STRATEGY business for • Robust sales • Release of new • Innovation long-term momentum products and • Business model Client and Cegedim services transformation sustainable • are ready • Digital and back- profitable office waves growth Operating Revenue Costs pr
Slide 182: 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 2016

Cegedim — Investor Day (December 2016) on 6ix

Cegedim Sa — Investor Day (December 2016)

Slide 1: The ongoing business model transformation

Slide 2: © Cegedim 2016

Slide 3: © Cegedim 2016

Slide 4: © Cegedim 2016

Slide 5: Notes

Slide 6: Cegedim: the ongoing business model transformation is on track

Slide 7: Notes

Slide 8: Agenda and safe harbor statement

Slide 9: Agenda

Slide 10: © Cegedim 2016

Slide 11: Cegedim at a glance

Slide 12: An innovative technology and services company

Slide 13: Notes

Slide 14: Cegedim: Key Figures

Slide 15: Notes

Slide 16: Our Presence

Slide 17: Notes

Slide 18: Our Clients

Slide 19: Notes

Slide 20: Our Business

Slide 21: Notes

Slide 22: Our divisions

Slide 23: Notes

Slide 24: Our Positions

Slide 25: Notes

Slide 26: Our Strengths

Slide 27: Notes

Slide 28: Do you know?

Slide 29: Notes

Slide 30: Our R&D

Slide 31: Notes

Slide 32: © Cegedim 2016

Slide 33: Cegedim Strategy

Slide 34: Business Momentum

Slide 35: Notes

Slide 36: Business model transformation progress

Slide 37: Notes

Slide 38: Business model transformation

Slide 39: Notes

Slide 40: A sustainable business model

Slide 41: Notes

Slide 42: Drivers

Slide 43: Notes

Slide 44: Majority of the portfolio is aimed at growth

Slide 45: Notes

Slide 46: © Cegedim 2016

Slide 47: Insurance market trends and innovative solutions

Slide 48: Goals

Slide 49: Notes

Slide 50: Our vision for the market in 2034

Slide 51: Notes

Slide 52: Agenda

Slide 53: Notes

Slide 54: Our market: Regulatory impacts

Slide 55: Notes

Slide 56: Our market: Regulatory impacts

Slide 57: Notes

Slide 58: Our market: New Practices

Slide 59: Notes

Slide 60: Our market: New Practices

Slide 61: Notes

Slide 62: Our development

Slide 63: Notes

Slide 64: Our ambitions: Spotlight on Prevention

Slide 65: Notes

Slide 66: New offerings, developed in-house in 2016

Slide 67: Notes

Slide 68: Prior to hospitalization

Slide 69: Notes

Slide 70: During hospitalization

Slide 71: Notes

Slide 72: After hospitalization

Slide 73: Notes

Slide 74: Putting numerous sources of data to good use

Slide 75: Notes

Slide 76: Using data to offer new services

Slide 77: Notes

Slide 78: Some examples of new offerings

Slide 79: Notes