Cegedim Sa · EURONEXT:ALCGM
Cegedim Sa — Q3 2016 Earnings Presentation
36 slides from Cegedim Sa's earnings presentation, Nov 29, 2016
Slide 1: Q3 2016 Earnings Conference Call
Q3 2016 EARNINGS* Conference Call November 29 at 6:15pm CET * Not audited
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements (made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995). By their nature, forward-looking statements involve risk and uncertainty. Forward-looking statements represent the compa
Slide 3: An innovative technology and services company
me cegedim An innovative technology and services company In 2015 BELGIUM HOME Cagedin FX SAH / NPS / Web RITE €42 6 m UNITED STATES FRANCE aes ROMANIA Pulse : , z Segedir of revenue 1228 ; ; 3,600 employees nM G® 1 countries ions
Slide 4: Our Clients
Our Clients 4
Slide 5: Our business
x Our business x 220,000 7%, Se cH ? - Software a - Database 5 r - Services - Payrol 83,000 « ey 41,000 « a4 -TAM - Software - Database - Software - Services - Database - Supply chain - Services - Digital media _ we N Vi Healthcare All industries x Vis SS rol" Via » Pan ak 40 mil jion’é all major*¢_
Slide 6: Our divisions
< Our divisions ~< Health Insurance, H.R. & e-services Healthcare Professionals ] aw a | Hospitals y Physicians y aR Paramedics, a over 200} SRH 4 7, Pharmacists ¢ e-business Revenue Revenue €234.7m 55.1% FY 2015
Slide 7: Our R&D
< OurR&D x NO a 7 Revenue on Capitalized Capitalized R&D R&D Ratio Vo LoN €29.8m 9.4% as of Sep 2016 as of Sep 2016 +52% +296 bps change between Sep 2015 and Sep 2016 change between Sep 2015 and Sep 2016
Slide 8: Our Positions
< Our Positions < NF Cegedim Insurance Solutions SooN a a #1 #1 Sofware and IT Third-Party Payment in France in France N74 Cegedim e-business SoN a =F #1 +300 million in 2015 Electronic Documents exchanged per year European Network X74 Cegedim SRH SN = Sj #2 +40,000 in 2013 in France +50,000 in 2014
Slide 9: Our Strengths
x Our Strengths x \ 4 Leading market positions i in each of our divisions - \ 7 é= Stable, well-balanced y and diversified revenue mix Lo’ 4s \ 4 \ 4 . . Unique presence High bomlerslocoiy, ! in the Healthcare Ecosystem — — \ 4 NO 4 Recognized portfolio of innovative and integrated solutions Long-st
Slide 10: Roadmap for Profitable and Sustainable Growth
Roadmap for Profitable and Sustainable Growth 2018 • Full benefit of Group transformation • Well positioned for 2016 - 2017 coming years • Group Transformation 2015 - Management • Disposal of the CRM evolution and Strategic Data - Organization change division - Change in business • Acquisition of Ac
Slide 11: Cegedim Investments
Cegedim Investments Product Update SaaS / Cloud BPO • Upgrades to reflect • All new solutions will • Process efficiency market changes be Cloud based • Flexibility in scaling • Introduce new • Will reduce cost of • Trends toward more development, outsourcing offering maintenance and production • Dri
Slide 12: 9M-2016 Financial Situation
9M-2016 Financial Situation
Slide 13: 9M 2016 Key Takeaway
9M 2016 Key Takeaway Key Figures Key Points Outlook Revenue Group offerings For the full year 2016 €318.3m shifting to the cloud Cegedim expects: +3.7% reported +4.0% L-f-L BPO offerings a success Revenue EBITDA up 4.0% L-f-L €40.6m Margin impacted revised upward (22.4)% By BPO and R&D EBITDA EPS be
Slide 14: 9M-2016 P&L
9M-2016 P&L In € million 9M-16 9M-15 % Change Revenue 318.3 306.9 +3.7% EBITDA 40.6 52.3 (22.4)% margin 12.7% 17.0% (426)bps 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)bps
Slide 15: 9M-16 Revenue Growth
9M-16 Revenue Growth Division 9M-15 L-f-L Structure Currency Reported 9M-16 Health Insurance H.R. & e-services 166.2 +9.5% +2.0% (0.1)% +11.4% 185.2 Healthcare Professionals 138.0 (2.3)% — (2.9)% (5.2)% 130.8 Activities not 2.8 (15.4)% — — (15.4)% 2.3 allocated Cegedim 306.9 +4.0% +1.1% (1.4)% +3.7%
Slide 16: Q3-16 Revenue Growth
Q3-16 Revenue Growth Division Q3-15 L-f-L Structure Currency Reported Q3-16 Health Insurance H.R. & e-services 55.5 +9.5% — (0.2)% +9.3% 60.6 Healthcare Professionals 43.9 (0.7)% — (4.9)% (5.6)% 41.5 Activities not 0.8 (8.7)% — — (8.7)% 0.8 allocated Cegedim 100.2 +4.9% — (2.3)% +2.6% 102.8 16
Slide 17: Well Diversified Revenue Sources
Well Diversified Revenue Sources 17
Slide 18: 9M-2016 EBITDA Trend
9M-2016 EBITDA TREND EBITDA Trend Miscellaneous Purchase ~ extemal Revenue WEE) xpenses . ~ ‘ayro! €1.9m_ €1.4m €12.3M Costs 20 Se 2015 a EBITDA Zoe NO 4 Workforce Trend Soo™N +426 «= 3995 +319 os an +116 Q2 2016 +152 2016 El: +43, 2016 3569 eves a Nightingale 2015 acquisition Se Se 2015 2016 Workfo
Slide 19: 9M P&L by Division
9M P&L by Division Health Insurance Healthcare Activities not H.R. & e-services Professionals allocated 9M 16 9M 15 Δ% 9M 16 9M 15 Δ% 9M 16 9M 15 Δ% Revenue 185.2 166.2 +11.4% 130.8 138.0 (5.2)% 2.3 2.8 n.m. EBITDA 26.8 29.9 (10.4)% 12.1 21.8 (44.3)% 1.6 0.6 n.m. D&A (11.4) (11.9) (4.3)% (9.8) (8.4)
Slide 20: Q3 P&L by Division
Q3 P&L by Division Health Insurance Healthcare Activities not H.R. & e-services Professionals allocated Q3 16 Q3 15 Δ% Q3 16 Q3 15 Δ% Q3 16 Q3 15 Δ% Revenue 60.6 55.5 +9.3% 41.5 43.9 (5.6)% 0.8 0.8 n.m. EBITDA 9.0 9.2 (2.1)% 4.7 7.6 (38.2)% 1.2 0.4 n.m. D&A (4.1) (4.0) 2.9% (3.3) (2.8) +18.7% (1.4)
Slide 21: Health Insurance, H.R. & e-services
Health Insurance, H.R. & e-services Revenue +9.5% l-f-l EBITDA (10.4)% 9M 2016 9M 2016 • Revenue growth despite the transition to • Decrease occur during the H1. EBITDA the SaaS/Cloud at Cegedim Insurance stable in Q3 Solutions • In H1, EBITDA decline at: • Double-digit Growth at: • iGestion and Ceg
Slide 22: Healthcare Professionals
Healthcare Professionals Revenue EBITDA (44.3)% 9M 2016 (2.3)% l-f-l 9M 2016 • Revenue decline by 0.7% in Q3-16 • Decline due to investment made in: • The decline was chiefly attributed to: • France: New hybrid offering for pharmacies • Slowdown in the UK doctor computerization business pending • US
Slide 23: Cost of net debt fell considerably
Cost of net debt fell considerably In € million Q1-2016 Q2-2016 Q3-2016 9M-2016 Interest expenses and others (7.2) (0.7) (1.4) (9.3) Premium paid(1) (15.9) — — (15.9) Cost of net financial debt (23.2) (0.7) (1.4) (25.2) (1) Premium paid for the total redemption of the 6.75% bond maturing in 2020 23
Slide 24: 9M 2016 Balance Sheet (in €m)
9M 2016 Balance Sheet (in €m) Assets Sep. 16 Dec. 15 Goodwill 183.8 188.5 Other non-current assets 237.7 223.7 Cash & cash equivalents 9.1 231.3 Other current assets 228.5 220.0 Assets held for sale 0.8 0.8 Shareholders Equity & Liabilities Shareholders Equity(1) 195.4 228.1 Other non-current liabil
Slide 25: Net Debt Situation
Net Debt Situation (1) Expected earn-out on Activus, Nightingales and Webstar (2) Paid for the total redemption of the 6.75% bond maturing in 2020 25
Slide 26: Solid Capital Structure
Solid Capital Structure Credit Rating Corporate and capital structure Assessed on April 28, 2016 Maturity Profile This includes 0.2% of the shares of Cegedim S.A. held by Cegedim S.A. as of September 30, 2016 26
Slide 27: Potential impact of Brexit
Potential impact of Brexit In 2015, the UK represented 15.1% of consolidated Group revenue and 19.2% of Group EBIT 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 consolidated
Slide 28: Outlook
Outlook Cegedim is revising upward its target for 2016 revenues and maintained it 2016 EBITDA, despite economic uncertainty and a challenging geopolitical environment. Cegedim expects(1) for the full year 2016: Revenue from continuing activities up 4.0% L-f-L revised upward EBITDA down €10m. However
Slide 29: Appendix
Appendix
Slide 30: Cegelease activity has evolved
Cegelease activity has evolved: In 2001 In 2015 Exclusive reseller of Group’s products Broker of financial leases Cegedim: unique supplier Many different suppliers Financing solutions for all healthcare Payment solution for Pharmacist professionals and others professionals Majority of contract are r
Slide 31: Q1 2015 Revenue Restatement by Division
Q1 2015 Revenue Restatement by Division Reported Restatement Restated Q1-2015 Q1-2015 Health Insurance H.R. & e-services 54.0 (0,3)(1) 53.7 Healthcare Professionals 37.2 8.7 45.9 Cegelease 29.3 (29.3) — Activities not allocated 0.8 — 0.8 Cegedim 121.3 (20.9) 100.4 (1) Cegedim Kadrige restatement 31
Slide 32: Q2 2015 Revenue Restatement by Division
Q2 2015 Revenue Restatement by Division Reported Restatement Restated Q2-2015 Q2-2015 Health Insurance H.R. & e-services 57.5 (0.5)(1) 57.0 Healthcare Professionals 39.3 8.8 48.1 Cegelease 26.8 (26.8) — Activities not allocated 1.1 — 1.1 Cegedim 124.8 (18.6) 106.2 (1) Cegedim Kadrige restatement 32
Slide 33: Q3 2015 Revenue Restatement by Division
Q3 2015 Revenue Restatement by Division Reported Restatement Restated Q3-2015 Q3-2015 Health Insurance H.R. & e-services 56.0 (0.5)(1) 55.5 Healthcare Professionals 36.5 7.4 43.9 Cegelease 27.2 (27.2) — Activities not allocated 0.9 — 0.9 Cegedim 120.5 (20.3) 100.2 (1) Cegedim Kadrige restatement 33
Slide 34: 9M 2015 Revenue Restatement by Division
9M 2015 Revenue Restatement by Division Reported Restatement Restated 9M-2015 9M-2015 Health Insurance H.R. & e-services 167.5 (1.3)(1) 166.2 Healthcare Professionals 113.0 24.9 137.9 Cegelease 83.3 (83.3) — Activities not allocated 2.8 — 2.8 Cegedim 366.6 (59.7) 306.9 (1) Cegedim Kadrige restatemen
Slide 35: Cegelease's Restatement Impact
Cegelase’s Restatement Impact This leads to a restatement of Q1, Q2, Q3 and 9M 2015 accounts in accordance with IAS 17. Impact on Revenue, EBITDA but not on EBIT In € million H1 2015 Q3 2015 9M 2015 Revenue 245.3 206.7 120.0 100.2 365.3 306.9 EBITDA 41.5 35.1 20.6 17.2 62.1 52.3 EBIT 20.3 20.3 9.7 9
Slide 36: We welcome your questions and comments
We welcome your questions and comments 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