Cegedim Sa · EURONEXT:ALCGM
Cegedim Sa — H1 2022 Earnings Presentation
36 slides from Cegedim Sa's earnings presentation, Sep 21, 2022
Slide 1: First half 2022 Earnings
First half 2022 Earnings SFAF meeting September 21, 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: 1H 2022 key figures
1H 2022 key figures Consolidated net Revenue Recurring operating income(1) profit, Group share €267.6m €6.8m €(4.9)m +6.5% | +€16.4m reported (39.7)% | €(4.5)m €(11.3)m vs. 1H 2021 vs 1H 2021 +6.1% LFL(1) Operating FCF(1) Net debt(1)(2) Headcount €(33.0)m €155.0m 5,942 €(56.5)m €(10.0)m +7.7% vs. 1H
Slide 4: 1H 2022 highlights
1H 2022 highlights Strong commercial momentum Cegedim Santé Favorable market trends – All operating divisions contributed to growth – Capital increased – Digitalization – Revenue growth picked up speed in 2Q – Strategic partnership – Regulation – Covid-19 – SaaS / Cloud Negative impact on recurring
Slide 5: Group Business review
Group Business review First half 2022 © Cegedim 2022 5
Slide 6: Strong commercial momentum
Strong commercial momentum Organic revenue growth Strong commercial momentum ― All operating divisions +5.0% contributed to 1H organic growth 1Q 2022 +6.1% ― All activities turned in solid performances except the UK 1H 2022 +7.0% healthcare professional business 2Q 2022 © Cegedim 2022 6
Slide 7: Investing in innovation
Investing in innovation R&D headcount Capitalized R&D €27.6m 1,480 €23.5m 1,379 Jun. 30, 2021 Jun. 30, 2022 Jun. 30, 2021 Jun. 30, 2022 +101 people| +7.3% +€4.1m| +17.5% vs 1H 2021 vs 1H 2021 © Cegedim 2022 7
Slide 8: Investing in talent
Investing in talent Headcount trend Offshore trend Headcount trend 22.5% 25.2% +127 | +2.3% Jun. 30 Jun. 30 2H 2021 2021 2022 +299 | +5.3% % of employees offshore 1H 2022 Offshore Onshore +426 | +7.7% vs 1H 2021 © Cegedim 2022 8
Slide 9: Accelerate Cegedim Santé growth
Accelerate Cegedim Santé growth Deal completed in May 2022 Network strength Key metrics – Reserved capital increase of €65 million for 18% of Cegedim Santé 100,000 €360.9m HCP users Cegedim Santé post – Industrial partnership: Improving patient pathways Cegedim Santé deal valuation – Deal to play ma
Slide 10: 2022 acquisitions YTD
2022 acquisitions YTD May 2022 June 2022 July 2022 July 2022 Mesdocteurs Laponi SEDIA Clinityx A leader in telehealth and An innovative SaaS Tracking software for Innovative models for a pioneer in 24/7 solution for managing medical instrumentation health data valorization; telemedicine absenteeism
Slide 11: A dynamic market driven by digitalization
A dynamic market driven by digitalization Strategy Growth drivers Digitalization Growth Regulation Maximize business synergies Covid-19 Optimize our operating model SaaS / Cloud Sustainability BPO © Cegedim 2022 11
Slide 12: Strong regulatory market drivers
Strong regulatory market drivers Government Covid-specific Health Insurance eHealth programs measures regulation – Ma Santé 2022 – New role for pharmacists – PSC (Protection Social Complementaire) 2025 – Ségur de la Santé – Social measures for following ANI and 100% employees and companies Santé Fin
Slide 13: Sustainability
Sustainability ESG Publication ESG Rating ESG Committee – DPEF 2021 (SNFP 2021) – SFDR: integrated into our – Set up on October 2021 includes Taxonomy: ESG roadmap – 2 meetings in 1H 2022 released in 1Q 2022 – Gaia and CDP – Also implemented at the – First year of response management level with an –
Slide 14: Cegedim is confident in its future growth potential
Cegedim is confident in its future growth potential – Solid business model – Strong market position – Strengthening the synergies – Innovation is our Motto – Strong recurring revenue between our various offerings – Entrepreneurial culture base – Operational and financial – Stable customer base disci
Slide 15: Analysis of results
Analysis of results First half 2022 © Cegedim 2022 15
Slide 16: Consolidated net profit impacted by investments
Consolidated net profit impacted by investments Summary income statement in € million 1H 2021 1H 2022 % change €m change Revenue 251.2 267.6 +6.5% +16.4 Payroll cost (139.4) (149.4) +7.2% +10.0 External expenses (49.8) (58,2) +16.9% +8.4 Purchases used (13.0) (13.5) +4.0% +0.5 Others (5.9) (4.7) (19
Slide 17: 1H 2022 revenue up 6.1% LFL
1H 2022 revenue up 6.1% LFL Organic revenue growth by quarter Revenue growth 7.0% 6.1% +6.1% +0.2% +0.2% 5.0% Q1 2022 Q2 2022 1H 2022 1H 2022 organic revenue growth by division Organic Structure Currency +3.0% +8.2% +11.8% +10.8% +€4.2m +€3.4m +€5.3m +€2.5m +€16.4m | +6.5% vs 1H 2021 Software Flow D
Slide 18: Recurring operating income analysis (1/2)
Recurring operating income analysis (1/2) Payroll cost External expenses D&A €(149.4)m €(58.2)m €(34.8)m +€10.0m | +7.2% +€8.4m | +16.9% +€3.0m | +9.5% 34.8 – Full year impact of hiring done – Approximately half of this 31.8 in 1H 2021 increase is due to the increased +1.0 8.2 7.2 – Impact from hiri
Slide 19: Recurring operating income analysis (2/2)
Recurring operating income analysis (2/2) Recurring operating Change by division Margin trend by division income in € million €6.8m 1H 2021 Group 11.3 1H 21 1H 22 Software & Services (9.6) Software & Services 1.4% (5.2)% €(4.5)m | (39.7)% Flow +1.9 Flow 10.5% 14.0% Data & Marketing +0.8 Data & Marke
Slide 20: Division highlights: Software & Services
Division highlights Revenue Recurring operating income +3.8% €(7.6)m (5.2)% €145.6m reported 1H 2022 margin €(9.6)m +€5.4m +3.0% n.m.% 1.4% 54.4% LFL 1H 2021 of 1H 2022 Group revenue All of the division’s activities turned in Recurring operating income was hurt Cegedim Santé: Solutions for solid per
Slide 21: Division highlights: Flow
Division highlights Revenue Recurring operating income +8.3% €6.3m 14.0% €45.2m reported 1H 2022 margin +€1.9m +€3.5m +8.2% 10.5% 16.9% LFL +43.8% 1H 2021 of 1H 2022 ― The process digitalization and digital ― Healthcare flow and Cegedim Group revenue Digitalization of contract-to- data flow business
Slide 22: Division highlights: Data & Marketing
Division highlights Revenue Recurring operating income +11.8% €6.1m 12.1% €50.0m reported 1H 2022 +€0.8m margin +€5.3m +11.8% +14.9% 11.8% 18.7% LFL 1H 2021 of 1H 2022 Group revenue Data and digital communication Digital communication activities in Real World database (France, solutions for French p
Slide 23: Division highlights: BPO
Division highlights Revenue Recurring operating income +10.8% €1.0m 4.0% €25.4m reported 1H 2022 margin +€2.7m +€2.5m +10.8% n.m.% (7.2)% 9.5% LFL 1H 2021 of 1H 2022 Group revenue ― The business of providing services for ― The increase in revenues and process Business process outsourcing insurance c
Slide 24: Operating income analysis
Operating income analysis Recurring operating Other non-recurring income income and expenses Operating income 0.9% €6.8m €2.5m €(4.4)m 1H 2022 margin €(4.5)m | (39.7)% +€8.5m €(12.9)m 6.1% (84.0)% 1H 2021 – Impact from increase in payroll – In 1H 2021: income of €4.1m , cost and in external expenses
Slide 25: Net profit analysis
Net profit analysis Summary income statement in € million 1H 2021 1H 2022 % change €m change Operating income 15.4 2.5 (84.0)% (12.9) Financial result (5.5) (4.4) (19.3)% (1.1) Total tax (2.8) (3.5) +23.7% +0.7 Consolidated net profit 6.5 (6.1) n.m. (12.6) Non-controlling interest 0.0 (1.3) n.m. (1.
Slide 26: Free cash flow from operations
Free cash flow from operations Free cash flow from operation in € million 1H 2021 1H 2022 1 - In 1H 2021 working Cash flow before taxes and interest 47.0 37.4 capital was positively impacted by the Change in working capital 9.0 (18.5) 1 postponement of €9m of social charges to 2H 2021 Corporate tax
Slide 27: Net debt bridge
Dec. 2021 * Excluding IFRS 16 debt FCF from operations Acquisitions Cegedim Santé capital increase Repayment of leases liabilities © Cegedim 2022 Net debt* bridge Interest paid & capitalized Acq. Of treasury shares Net debt* decreased by €10.0m Others Jun. 2022 27
Slide 28: Financing: No debt repayment before October 2024
Financing: No debt repayment before October 2024 Principal financing Debt covenant Status Amount Maturity Statuts Limit Euro PP - €135.0m October 2025 Leverage 1.19 < 2.50 Shareholder loan - €45.1m November 2025 Interest cover 16.84 > 4.50 RCF Undrawn €65.0m October 2024 as of end-June 2022 Overdraf
Slide 29: Sound financial structure
Sound financial structure Assets Equity & liabilities In € million 12/31/2021 06/30/2022 In € million 12/31/2021 06/30/2022 Goodwill 187.1 189.9 Shareholders’ equity 232.4 288.5 Intangible assets 179.9 192.1 Long-term financial debt 186.6 188.8 Tangible assets 121.7 116.8 Other non-current liabiliti
Slide 30: Dividend approved on June 17, paid on July 1st
Dividend approved on June 17, paid on July 1st 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 approved at the June 17, 2022, General Meeting (2) Based on FY 2021 earnings © Cegedim 2022 30
Slide 31: Disciplined capital allocation
Disciplined capital allocation Maintain a solid Return capital to Invest in growth balance sheet shareholders – Strategy-led investment in – Ample liquidity – Dividend of €0.50 per share paid innovation and the sales force – Financial flexibility on July 1st – Bolt-on acquisition to add – Shares rep
Slide 32: Outlook
Outlook Disclosure: Based on currently available information. The Group does not expect to make any significant acquisitions in 2022. The Group does not provide earnings estimates or forecasts. FY 2022 Outlook Revenue Recurring operating income (1) + 5 % LFL The percentage decline in 2022 recurring
Slide 33: 1H 2022 summary
1H 2022 summary 1H 2022 results Cegedim Santé FY 2022 Outlook – Strong commercial momentum - Strategic partnership with 3 social protection groups representing 25 +5.0% million beneficiaries in France FY 2022 LFL revenue – Revenue increased by €16.4m or 6.1% LFL increase – Recurring operating income
Slide 34: Q&A session
Q&A session © Cegedim 2022 34
Slide 35: 2022 Financial agenda
2022 Financial agenda © Cegedim 2022 35
Slide 36: Thank you for your attention
Thank you for your attention For any additional information janeryk.umiastowski@cegedim.com