Slide 1: Oddo Forum January 2017
Slide 2: 2017 forum
2017. » forum «K
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 at a glance © Cegedim 2016
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
€426m Revenue FY 2015 €79m €216m Cegedim: Key Figures EBITDA FY 2015 Net Debt Sep. 2016 11 countries 3,995 Workforce Sept. 2016 │6│ © Cegedim 2016
Slide 7: Our Presence
Our Presence │7│ © Cegedim 2016
Slide 8: Our Clients
Our Clients │8│ © Cegedim 2016
Slide 9: Our Business
Our Business │9│ © Cegedim 2016
Slide 10: Our divisions
Our divisions │10│ © Cegedim 2016
Slide 11: Our Positions
Our Positions │11│ © Cegedim 2016
Slide 12: Our Strengths
Our Strengths │12│ © Cegedim 2016
Slide 13: 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 14: 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 15: Cegedim Strategy
Cegedim Strategy © Cegedim 2016
Slide 16: 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 17: 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 │17│ repositioning © Cegedim 2016
Slide 18: 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 19: 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 │19│ © Cegedim 2016
Slide 20: Drivers
Regulatory Economy Drivers Demography Consumer Technology Improve Population Health, focus on cost and quality © Cegedim 2016
Slide 21: 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 22: The Cloud transition of Cegedim Healthcare Software
The Cloud transition of Cegedim Healthcare Software © Cegedim 2016
Slide 23: Major organizational changes and investments
• New Management Team in US • New CEO Cegedim Rx Major • Increased investment in team and solutions for Latam organizational • Opened offices in Russia/Ukraine changes and • Rebranding Alliadis to Smart Rx investments • Spain : Split Software Factory from the Local Business • Headcount R&D between 2
Slide 24: Cegedim R&D Strategy
All new of future solutions developed by Cegedim will be Cloud based • Build a SaaS platform shared Cegedim Reduce cost of across Cegedim BU’s development, • Promote best practices of DevOps R&D maintenance • SaaS Maturity Plan program Strategy and production Provide added value to • Accelerate new
Slide 25: 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 26: Major solution milestones
» Pulse Cloud Practice Management: up and running in 14 sites » Recent launch Smart Rx » INPS: Vision Anywhere 350 practices use extensively Major solution » Business Plan and Roadmap for Healthy Dispenser (end 2017) milestones » Docavenue (3,000 clients) » BCB: Tunisia, Belgium, plan for Russia,
Slide 27: Finance: It is all about performance
Finance: It is all about performance © Cegedim 2016
Slide 28: 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 29: P&L Review: Revenue
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 │29│ © Cegedim 2016
Slide 30: P&L Review: Revenue sources
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 │30│ © Cegedim 2016
Slide 31: P&L Review: EBITDA margin
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 │31│ © Cegedim 2016
Slide 32: P&L Review: EBITDA bridge
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 │32│ © Cegedim 2016
Slide 33: P&L Review: D&A
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 │33│ © Cegedim 2016
Slide 34: P&L Review: EBIT before special items
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 │34│ © Cegedim 2016
Slide 35: P&L Review: Special items
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 │35│ © Cegedim 2016
Slide 36: P&L Review: EBIT
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 │36│ © Cegedim 2016
Slide 37: P&L Review: Cost of net debt
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 │37│ © Cegedim 2016
Slide 38: P&L Review: Total taxes
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 │38│ © Cegedim 2016
Slide 39: P&L Review: Net earnings
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 │39│ © Cegedim 2016
Slide 40: P&L Review: Earnings per share
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 │40│ © Cegedim 2016
Slide 41: 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 42: Net Debt Situation
Net Debt Situation │42│ (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 43: 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 │43│ • Shareholder Loan: €45m due 2021 © Cegedim 2016
Slide 44: Clear Capital Allocation Principles
As of September 30, 2016 Clear Capital €43.7m Maintenance Capex R&D capitalization Allocation ≈€20m Principals Bolt-on acquisition €0.0 Dividends │44│ © Cegedim 2016
Slide 45: 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 46: 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 47: Cegedim and the financial market
Cegedim and the financial market © Cegedim 2016
Slide 48: 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 49: 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 │49│ © Cegedim 2016
Slide 50: Events 2017
EVENTS 2017 26 22 23 January March March 2016 Revenue 2016 Earnings Analyst meeting 27 27 20 April July September Q1-17 Revenue HY-17 Revenue HY-17 Earnings © Cegedim 2016
Slide 51: 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 » Our comprehensive solutions and intimate with margin understanding of the market give is a unique expansi
Slide 52: 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 53: 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