Cegedim Sa · EURONEXT:ALCGM
Cegedim Sa — H1 2019 Earnings Presentation
42 slides from Cegedim Sa's earnings presentation, September 2019
Slide 1: First-Half Results 2019
Slide 2: 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 accurate. By their nature,
Slide 3: Business
Business Pierre Marucchi Vv) oi =) V) Lu ~
Slide 4: Cegedim at a glance
Bi cegedim Cegedim at a glance Cegedim: Data, Digital and SaaS Specialist in Healthcare & other industries 4,782 employees in +10 countries 3 business groups: + Health Insurance, HR & e-services + Healthcare Professionals + Corporate & Others
Slide 5: Cegedim at a glance
fw cegedim Cegedim at a glance CGM LISTED IN PARIS SHAREHOLDERS FCB 53% FREE FLOAT 46% CEGEDIM 1% August 31, 20/9
Slide 6: Unique Healthcare footprint
Unique Healthcare footprint 6
Slide 7: Cegedim: Business divisions
Cegedim: 2 Business divisions 7
Slide 8: HY 19 Financial Overview
Ba cegedim HY 19 Financial Overview in€m CEGEDIM GROUP HEALTH INSURANCE, HEALTHCARE HR & E-SERVICES PROFESSIONALS +8.0% +8.7% +7.1% REVENUE €245.8ml] 64%141 €162.5m]ico%r+1 €81.6m | 5 9%1-41 Recuring Operatin +€0.7m €(2.7)m +€3.8m ee P 2 €12.6m +5.8% el 0.7m (20.3)% €2.9m mn come Recuring Operating
Slide 9: Business reinforced by bolt-on acquisitions (H1-19)
Business reinforced by bolt-on acquisitions (H1-19) 9
Slide 10: Business reinforced by bolt-on acquisitions (post H1-19)
Business reinforced by bolt-on acquisitions (post H1-19) 10
Slide 11: Focus on European activities
Focus on European activities 11
Slide 12: Strong innovation capacity
Strong innovation capacity 12
Slide 13: Strong BPO trend
Strong BPO trend wn a =) wn Lu [a4 en @ €21.5m 5%* 6%* 7%* 8%* 9%* HY-2015, HY-2016 HY-2017 HY-2018 JUN.2015 DEC. 2015 DEC. 2016 = DEC. 2017_—s« DEC. 2018 * as of % of total consolidated Group Revenue 13
Slide 14: Docavenue Teleconsultation: Key achievements
Docavenue Teleconsultation: Key achievements 14
Slide 15: Conclusion: Cegedim's 3 pillars
Conclusion: Cegedim’s 3 pillars 15
Slide 16: Finance
Finance HY 2019 Results Vv) oi =) V) Lu ~
Slide 17: IFRS 16 Application
IFRS 16 Application Applied since January 1st, 2019 • Applied to leases involving fixed payments, mostly related to rents • Financial statements not restated as of December 31 and June 30, 2018, in accordance with the standard • Negligible impact on net profit (loss) • Impact on EBITDA: +€7.9 millio
Slide 18: Key Operating Performance
Key Operating Performance 18
Slide 19: HY-2019 Revenue Overview
HY-2019 Revenue Overview © cegedim 2019 19
Slide 20: Strong BPO trend
Ba cegedim Strong BPO trend BPO REVENUE 2a a = — —- HY-2015, HY-2016 HY-2017 HY-2018 HY-2019 * as of % of total consolidated Group Revenue 20
Slide 21: L-f-l HY-19 Revenue growth by business group
L-f-l HY-19 Revenue growth by business group 21
Slide 22: HY 2019 EBITDA Trend
me cegedim HY 2019 EBITDA Trend €45.5m MARGIN 18.5% €33.3m MARGIN 14.6% +8.7% — & ees ran) RESTATED IAST REVENUE PAYROLL EXTERNAL PURCHASES OTHERS IFRS 16 €37.6m COSTS EXPENSES USED FIRST 15.3% APPLICATION ciel HY 2018 HY 2019 22
Slide 23: Health Insurance HR & E-Services Division
Health Insurance HR & E-Services Division © cegedim 2019 23
Slide 24: Healthcare Professionals Division
Healthcare Professionals Division © cegedim 2019 24
Slide 25: HY 19: From EBITDA to Net Earnings
HY 19 : From EBITDA to Net Earnings 25
Slide 26: HY 2019 Financial Performance
HY 2019 Financial Performance In € million HY 18 HY 19 % change €245.8m REVENUE EBITDA 227.6 33.3 245.8 45.5 +8.0% +36.5% REVENUE Margin IFRS 16 14.6% 18.5% +386bps D&A (21.4) (32.8) +53.6% RECURRING OPERATING INCOME 11.9 12.6 +5.8% €45.5m Margin 5.2% 5.1% (10)bps Other non-recurring operating incom
Slide 27: FCF from operations
FCF from operations €(35.8)m In € million Cash flow before taxes and interests HY 18 28.3 HY 19 43.1 FCF from operations Change in working capital requirement +11.5 (47.6) ! Corporate tax paid (0.7) (0.5) €(59)m Net cash flow from operating activities 39.1 (4.9) Negative impact Acquisition of intang
Slide 28: Change in Net Financial Debt
Change in Net Financial Debt Incorporating for the first time the effects of the application of IFRS 16 Leases ! DEC. DEC.2018 2018 Jun. 2019 JUN. Negative Impact: €14.9 million from factoring cancellations and €31.3 million from the negative trend in advances paid by clients at the health insurance
Slide 29: HY 2019 Balance Sheet: Sound Financial Structure
HY 2019 Balance Sheet Sound Financial Structure In € million Dec. 18 Jun. 19 As a liability: recognition of a lease liability (€67.5 million - ASSETS 1 €53.3 million non current portion and €14.2 million current portion-) , measured at the discounted present value of future Goodwill 173.0 180.5 paym
Slide 30: Outlook for FY 2019
Finance Outlook for FY 2019 Vv) oi =) V) Lu ~
Slide 31: Pulse contribution to P&L and BS
Pulse contribution to P&L and BS Contribution to consolidated Group: In € million H1-18 H2-18 FY-18 HY 19 REVENUE 5.8 5.5 11.3 5.6 EBITDA(1) (1.8) (1.4) (3.2) 0.0 DAP (2.3) (2.4) (4.7) (3.3) RECURRING OPERATING INCOME (4.1) (3.8) (7.9) (3.3) Operating income (7.0) (3.1) (10.1) (18.2) R&D CAPITALIZED
Slide 32: Potential Impact of Brexit
Potential Impact of Brexit 32
Slide 33: Outlook: Raised for 2019
Ba cegedim Outlook: Raised for 2019 2019 ONWARDS: ACCELERATE fence ANDGROW (Sweyy MAINTAINING STEADY, SUSTAINABLE, PROFITABLE GROWTH MOMENTUM FY 19 REVENUE FY 19 EBITDA These projections are publicy disclosed on September 19, 2019. The fact that Cegedim includes these projections in this presen- tat
Slide 34: Annexes
Annexes HY 2019 Results Vv) oi =) V) Lu ~
Slide 35: Recurring operating income (REBIT) and EBITDA
Recurring operating income (REBIT) and EBITDA in € million HY 18 HY 19 Reported Reported OPERATING INCOME (a) 2.3 (3.6) Other non-recurring operating income and expenses (b) (9.6) (13.8) Amortization of goodwill (c) 0.0 (2.5) RECURRING OPERATING INCOME (REBIT) (d= a-b-c) 11.9 12.6 Depreciation and a
Slide 36: H1-2019 Revenue
H1-2019 Revenue In € thousands Division 1 Division 2 Division 3 Group 2018 REVENUE (a) 149,537 76,162 1,936 227,634 Impact of disposals 0 0 0 0 2018 Revenue before impact of disposals 149,537 76,162 1,936 227,634 Currency impact 3 525 0 528 2018 Revenue at 2019 exchange rate (b) 149,540 76,687 1,936
Slide 37: HY 2019 P&L – IFRS 16 Bridge
HY 2019 P&L – IFRS 16 BRIDGE In € million HY 18 HY 19 % HY 19 IFRS 16 Reported IAS 17 change Reported Impact REVENUE 227.6 245.8 +8.0% 245.8 - EBITDA 33.3 37.6 +12.9% 45.5 +7.9 Margin 14.6% 15.3% +67 bps 18.5% D&A (21.4) (25.1) +17.4% (32.8) (7.8) RECURRING OPERATING INCOME 11.9 12.5 +5.0% 12.6 +0.1
Slide 38: HY 2019 P&L – IFRS 16 Bridge: Health insurance, HR and e-services
HY 2019 P&L – IFRS 16 BRIDGE in € million Health insurance, HR and e-services HY 18 HY 19 % HY 19 IFRS 16 Reported IAS 17 change Reported Impact REVENUE 149.5 162.5 +8.7% 162.5 - EBITDA 24.2 23.2 (4.1)% 26.7 +3.4 Margin 16.2% 14.3% -190 bps 16.4% D&A (10.8) (12.6) +16.9% (16.0) (3.3) RECURRING OPERA
Slide 39: HY 2019 P&L – IFRS 16 Bridge: Healthcare professionals
HY 2019 P&L – IFRS 16 BRIDGE in € million Healthcare professionals HY 18 HY 19 % HY 19 IFRS 16 Reported IAS 17 change Reported Impact REVENUE 76.2 81.6 +7.1% 81.6 - EBITDA 6.9 12.6 82.1% 14.9 +2.3 Margin 9.1% 15.4% +634 bps 18.3% D&A (7.8) (9.7) +24.1% (11.9) (2.3) RECURRING OPERATING INCOME (0.9) 2
Slide 40: HY 2019 P&L – IFRS 16 Bridge: Corporate and others
HY 2019 P&L – IFRS 16 BRIDGE in € million Corporate and others HY 18 HY 19 % HY 19 IFRS 16 Reported IAS 17 change Reported Impact REVENUE 1.9 1.7 (10.9)% 1.7 - EBITDA 2.2 1.8 (16.9)% 3.9 +2.1 Margin 113.7% 106.1% n.m. 226.9% D&A (2.8) (2.8) +0.1% (4.9) (2.1) RECURRING OPERATING INCOME (0.6) (0.9) +6
Slide 41: HY 2019 Balance Sheet – IFRS 16 Bridge
HY 2019 Balance Sheet – IFRS 16 BRIDGE In € million Dec. 18 Jun.19 %Change Jun. 19 IFRS 16 Reported IAS 17 IFRS 16 Impact ASSETS In €m Goodwill 173.0 180.5 +4.3% 180.5 - Intangible assets 156.7 151.3 (3.4)% 151.3 - Tangible assets 33.4 33.3 (0.2)% 100.2 +66.9 Financial assets 21.0 21.4 +2.0% 21.4 -
Slide 42: Thank you for your attention
Thank you for your attention 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 Design: Group Communication Service