Cegedim Sa · EURONEXT:ALCGM
Cegedim Sa — H1 2012 Earnings Presentation
48 slides from Cegedim Sa's earnings presentation, Sep 20, 2012
Slide 1: September 20, 2012
september 20", 2012 | = | — id.
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation contains forward-looking statements (made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995). 1995) By their nature, nature forward-looking statements involve risk and uncertainty. Forward-looking statements repre
Slide 3: Cegedim key figures
= cegedim Cegedim [Sej‘eh.deem] €911m 2011 Revenue 8,200 2011 Headcount 65% Recurring business €23/7mM Market Capitalization hG 20103 as of August 31, 2012 Makes healthcare business run simply and more efficiently
Slide 4: Key H1 2012 Figures
Key H1 2012 Figures | > Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 4 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 5: Cegedim Profile
Cegedim Profile Makes healthcare business run simply and more efficiently Global technology and services company specialized in healthcare Global leader in a dynamic environment ¼ Customers: all players in the healthcare world Pharmaceutical and Life-Sciences companies Doctors Pharmacists and pa
Slide 6: Creating Value at the Heart of the Healthcare System
Creating g Value at the Heart of the Healthcare System | > Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 6 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 7: Cegedim serves all the Healthcare Value Chain
Cegedim serves all the Healthcare Value Ch i Chain (FY 2011 figures) | > Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 7 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 8: Competitive Strengths
Competitive Strengths ¼ Shareholder support ¼ Strong and experienced senior management team and qualified personnel ¼ Portfolio of innovative and integrated products and services ¼ High barriers to entry ¼ Leading market positions in each of our divisions ¼ Strong customer base with recurring revenu
Slide 9: Strong and stable shareholder base
Strong and stable shareholder base Shareholder base as of end of July 2012 Board of directors Corporate governance Compliance with the recommendation of the AFEP-MEDEF AFEP MEDEF code Audit, Strategy, Nomination and Compensation committees | Group | CRM & Strategic Data | Healthcare Professional
Slide 10: Well balanced and diversified revenue mix
Well balanced and diversified revenue mix Well-balanced Revenue breakdown (as of June 2012) Revenue Visibility Low customer concentration as of December 2011 Strong recurring revenue model First client: 4.5 % of Group revenue Multi-year contracts Top 5 client: 12.5 % of Group revenue High
Slide 11: Cegedim offers a comprehensive set of solutions
Cegedim g offers a comprehensive set of solutions Integrated solutions ¼ Competitor solutions are siloed and focus on specific segments key to addressing Unique presence in the healthcare industry issues of quality, Superior insights and understanding of the environment access and cost Signifi
Slide 12: CRM & Strategic Data: Comprehensive Solutions for Life Sciences Companies
CRM & Strategic Data Comprehensive Solutions for Life Sciences Companies 4 ale Services 80 countries Others ©63m 25% xP. Cegedim 493m 498m 527m 511m = 6m 51m : 37% os CRM €34m 9% ¢ _— — 29% ¥ , Others 56% | 56% Be 2011 Group revenue | 40% | Eg «201: Group EBIT 18% Cegedim . 4A% bs 12.7% #3 12 . 19%
Slide 13: How to improve the productivity of sales and marketing resources
How to improve the productivity y of sales and marketing resources | Group | > CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 13 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 14: Various Sources of Growth
Various Sources of Growth ¼ New Pharmaceutical landscape From blockbuster to specialties, Increasing complexity of therapies Generics ¼ More regulation Compliance Safety “Real Life” Studies ¼ Significant g sales growth g in emerging g g market New market for Pharmaceutical companies Ch
Slide 15: CRM & Strategic Data
CRM & Strategic Data H1 2012 The CRM solution users decrease during H1 2011 creates an unfavorable base effect, The situation in Southern European countries (11% of sector revenue), remains difficult Emerging countries are still rapidly expanding with a notable ramp-up in China Positive im
Slide 16: Healthcare Professionals
Physicians Belgium, United Kingdom, France, Italy, Spain, Romania, USA. Paramedics France Pharmacists France, United Kingdom, Romania, Tunisia. Cegelease & RNP France 8 Revenue breakdown by geography A France 8 EMEAex France C Amerca D WAG © 25% of 2011 Group revenue EBIT margin
Slide 17: Various Sources of Growth
Various Sources of Growth ¼ States willingness to improve the efficiency of healthcare system Performance-based pay is gaining popularity around the world ¼ Dematerialization of patient data ¼ Interoperability between electronic patients’ healthcare records ¼ Need for communication and exchange wi
Slide 18: Healthcare Professionals
Healthcare Professionals ¼ H1 2012 Renewed growth in Cegelease’s activity continue in Q2 following a strong Q1 RNP: Difficult advertising market Fine performance from Cegedim Healthcare Software driven principally by the computerization of Pharmacists in France and the UK Doctor in France
Slide 19: IT for Healthcare Insurers
IT for Healthcare Insurers (in terms of people covered) BE 1 2011 croup revenue BE ot 2011 croup esr -B ; 20 45 A9 14.9% 1s 11.8% ~-t——_+ 10 ail + Renee broahven Electronic Reimbursement Platform ean EBIT margin A France 99% 5 BEWEA@x. France i (in terms of people covered) € America 1% D APAC 0%
Slide 20: Various Sources of Growth
Various Sources of Growth ¼ A market increasingly attractive and a growing competition Need for productivity gains N d ffor diff Need differentiation ti ti ¼ Heavy y regulatory g y burden Concentration among players Potential for outsourcing and development of new services ¼ The creation of
Slide 21: Insurance & Services
Insurance & Services ¼ H1 2012 Personal insurance companies’ hesitancy in the second quarter Positive impact from favorable developments in online third-party payer management services ª Future growth will be fuelled by expanding these offerings Strong growth in payroll and HR outsourcing solu
Slide 22: Finance June 30, 2012
Finance June 30, 2012 7,350,046 52.51 % 12,215,883 2,102,061 15.02 % 2,102,061 11.17% 0:33 % 14.25% 0.00% 100.00 4% 100.00 % P&L Cash Flow Statement Debt J Revenue €458.6m6453.3m e4saaeee am 1.2% €453.3m €68.3m €47/1.2m
Slide 23: A resilient top line performance
A resilient top line performance (in million of euros) H1-2012 Consolidated Group Revenue Business stabilizing following the sharp decline in mid 2011 H1 2012 is on a par with H2 2011 despite negative seasonal impact Satisfactory Q1. Q2 was hit by weaker economic conditions in many developed c
Slide 24: CRM & Strategic Data revenue commentary
The situation in Southern European countries (11% of sector revenue), remains difficult Emerging countries are still rapidly expanding with a notable ramp-up in China Positive impact starting in H2 2012 of contracts signed in 2011 Cegedim continues to deliver a steady stream of innovation (C
Slide 25: Healthcare Professionals revenue commentary
Renewed growth in Cegelease’s activity continue in Q2 RNP: Difficult ff advertising market. Fine performance from Cegedim Healthcare Software, driven principally by the computerization of Pharmacists in the UK Doctors in France Cegedim should continue to benefit from the development of p
Slide 26: Insurance & Services revenue commentary
Personal insurance companies’ hesitancy in the second quarter due to the French election and the weaker economic conditions conditions. Positive impact from favorable developments in online third-party payer management services Future growth will be fuelled by expanding these offerings Stron
Slide 27: Consolidated P&L
Consolidated P&L From revenue to operating profit (in million of euros) in € millions H1 2012 H1 2011 Δ Revenue 453.3 458.6 ‐1.2% Capitalized production 24.8 22.5 +10.1% Investment in R&D Purchases used ‐52.1 ‐49.0 +6.4% maintained External expenses ‐119.2 ‐121.6 ‐2.0% Payroll costs ‐228.8 ‐225.8 +1
Slide 28: Profit by semester
Profit by semester (as a % of sales) EBITDA 2009 2010 2011 2012 st 1 Half H lf 19.6% 19 6% 18.7% 18 7% 16.4% 16 4% 15.1% 15 1% nd 2 Half 21.0% 19.0% 16.5% n.a. Full Year 20.3% 18.8% 16.5% na. EBIT 2009 2010 2011 2012 1st Half 12.5% 11.3% 9.0% 8.3% 2nd Half 13.1% 12.0% 9.3% n.a. Full Year 12 8% 12.8%
Slide 29: Profit by sector
Profit by sector (as a % of sales) EBIDTA margin per Sector EBITDA H1 2011 H2 2011 2011 H1 2012 CRM & Strategic Data 8.2% 15.3% 11.8% 7.6% Healthcare Professionals 28.5% 15.7% 22.6% 24.2% Insurance & Services 21 8% 21.8% 22 6% 22.6% 22 2% 22.2% 21 6% 21.6% Cegedim 16.4% 16.6% 16.5% 15.1% EBIT* margi
Slide 30: Performance Improvement Program
Performance Improvement Program Cost-cutting efforts in order to keep step with the secular trends in global market ¼ €8 millions of restructuring g cost taken in 2011 with €5 millions in H1 2012 ¼ The plan is extended into the second half of the year ¼ Confidence to maintain fix cost constant with
Slide 31: Consolidated H1 2012 P&L
Consolidated H1 2012 P&L From operating profit to net profit excluding non-recurring items (in million of euros) in € millions H1 2012 H1 2011 Δ EBIT before non‐recurring items 37.6 41.4 (9.2%) Related to the Performance Non‐recurring items (2.0) (2.7) n.s. Improvement Impairment of Goodwill (115.0)
Slide 32: A cash flow-generating model
A cash flow-generating flow generating model | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 32 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 33: H1 2012 Balance Sheet
H1 2012 Balance Sheet (in millions of euros) | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 33 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 34: H1 2012 Cash evolution
H1 2012 Cash evolution Classical negative seasonal impact on WCR in H1 vs H2 | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 34 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 35: Outlook
Outlook(1) ¼ Economic environment will remain tough in H2 2012 ¼ The Performance Improvement Program is extended into the H2 2012 ¼ No N plan l tto make k ffurther th acquisitions i iti b by th the end d off th the year ¼ 2012 Outlook(1) The target for 2012 is to achieve a slightly increase in rev
Slide 36: Acquisition & Disposal YTD
Acquisition & Disposal YTD Leading French manufacturer of pharmaceutical leaflets Disposal on April 30, 2012 2011 Revenue: €6,7m 2011 EBITDA: €73k France’s fourth-largest publisher of pharmacist software Acquisition on July 2012 2011 Revenue: €9m Profitable activity Will be part of
Slide 37: Cegedim has no refinancing pressure in medium term
Cegedim g has no refinancing g pressure in medium term (as of June. 30,2012) Net Debt Structure and Gearing Gross debt by source of financing in € millions Jun. 2012 Dec. 2011 Jun. 2011 Dec. 2010 Jun. 2010 Total Equity 430.9 516.2 449.0 480.3 559.8 Net Financial Debt 471.2 453.3 475.3 461.6 443.3 Ge
Slide 38: Significant Capital to execute Our Strategy
Significant g Capital to execute Our Strategy | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 38 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 39: Compliance with bank covenants
Compliance with bank covenants Bank Covenants Recent credit events In June 2011, successful refinancing of the syndicated loan Shareholder loan: maturity extension to June 2016 S&P’s rating : B, negative watch Leverage(1) ratio Coverage(1) ratio 7.3 6.4 x3.00 52 5.2 5.1 5.1 x4.50 2,7 2.6 2.98
Slide 40: A Resilient Core Business and a Solid Financial Profile
A Resilient Core Business and a Solid Financial Profile ¼ Steady Business Profile Recurring revenues relying mostly on a subscription based model (≈65% of revenue) Diversification (business (business, geography geography, customer) Critical size with strong market share in all business segment
Slide 41: Appendix
Appendix Hard copy only
Slide 42: An Award Winning Company
An Award Winning Company The Grand Prix for Financial Transparency ¼ Grand Prix of Transparency “The prize have been awarded in recognition for the best practices in regulated financial reporting. It pay tribute to the listed French companies that have demonstrated their ability to make use of the b
Slide 43: An Award Winning Company
An Award Winning Company IDC Ph Pharmaceutical ti l SFA MarketScape M k tS ¼ What IDC Says About Cegedim “Cegedim’s application ranks among the best available for breadth of functionality, user interface and functional flexibility…” “Cegedim offers a complete line of deployment options (on-premise,
Slide 44: Details of covenant calculation
Details of covenant calculation as of June 2012 Details of Adjusted Net Financial Debt Calculation In € thousands From July From Relevant 1st to January Ja ua y 1st Period e od December to 30th June 31th 2011 2012 Consolidated EBIT 37,249 (79,432) (42,183) Impairment of goodwill ‐ 115 000 115,000 11
Slide 45: Cegedim and the Financial Market
Cegedim and the Financial Market as of 09/19/2012 | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 45 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 46: Keep in Touch
Keep in Touch | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 46 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 47: 2012 Finance agenda
2012 Finance agenda 9 9 9 9 9 9 9 9 | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 47 This document should not be distributed without Cegedim authorization – Copyright 2012
Slide 48: We welcome your questions and comments
=i, cegedim We welcome your questions and comments Jan Eryk UMIASTOWSKI Chief Investment Officer Head of Investor Relations [email protected] www.cegedim.com/finance TEL: +33 (Q) 1 49 09 33 36