Cegedim Sa · EURONEXT:ALCGM
Cegedim Sa — H1 2017 Earnings Presentation
46 slides from Cegedim Sa's earnings presentation, September 2017
Slide 1: Cegedim
am cegedim
Slide 2: © Cegedim 2017
© Cegedim 2017
Slide 3: © Cegedim 2017
© Cegedim 2017
Slide 4: 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- looking statements involve risk and uncertainty. For
Slide 5: Cegedim at a glance
» Cegedim at a glance «K
Slide 6: Founded in 1969
Founded in 1969 An innovative technology and services company in the field of digital data flow management for healthcare ecosystems and B2B, and a business software publisher for Cegedim healthcare and insurance professionals in A global company with headquarter France and a local presence in 11 co
Slide 7: Shareholder Structure as of June 2017
Others 4% Shareholder BPI USA France 29% 34% Structure as 15.0% of June 2017 Free float UK 33% 32.2% FCB 52.7% Source: IPREO Data on Sept. 26, 2016 Cegedim 0.2% │7│ © Cegedim 2017
Slide 8: Cegedim: Our divisions, our clients
Cegedim: Our divisions Our Clients │8│ Proportional to FY 2016 Revenue © Cegedim 2017
Slide 9: Cegedim Strategy
» Cegedim Strategy <<
Slide 10: Our Playbook: Planning
Our Playbook Planning │10│ © Cegedim 2017
Slide 11: Our Playbook
Our Playbook │11│ © Cegedim 2017
Slide 12: Our Playbook: Portfolio Management
Our Playbook: Portfolio Management │12│ © Cegedim 2017
Slide 13: Divestments and acquisitions
Divestments April 2015 » CRM and Strategic Data Our » Cegelease* 2017 Playbook: Proceed used to pay back debt Portfolio * The Group consider to sell its Cegelease and Eurofarmat Business Management Acquisitions » Activus (Cegedim Insurance Solutions) Jul.15 » Nightingale (CHS) Oct.15 » Futuramedia (
Slide 14: Cegelease activity: leasing contracts for pharmacies and professionals
Offering leasing contracts chiefly to pharmacies and healthcare professionals in France The company has evolved from a reseller of products developed exclusively by the Group into a Cegelease broker offering multi-solution financing Activity contracts to a wide variety of clients Today, Cegedim acco
Slide 15: Cegelease Disposal
As part of the business model transformation plan Cegedim is contemplating divestment of its Cegelease and Eurofarmat subsidiaries These subsidiaries - Operate principally in the financial domain, Cegelease - Are highly valued, Disposal - Require additional resources to continue pursuing and acceler
Slide 16: Cegelease disposal timing
If the Group receives satisfactory offers and is able to obtain the necessary approvals, it plans to close the deal in the second half of 2017 Cegelease Disposal A successful sale would give the Group a portfolio of businesses that fit well together and generate strong synergies. Cegedim is not plan
Slide 17: Our Playbook
Our Playbook │17│ © Cegedim 2017
Slide 18: Our Playbook: Investing in Innovation
Capitalized R&D for HY 17 €22.5m +20.6% Percentage increase Our Playbook: For the 6 first months of 2017 compare to a year ago Investing in €21.7m Innovation For the second half of 2016 Capitalized R&D on Revenue ratio 9.8% For the first 6 months of 2017 +110bps Percentage increase compare to a year
Slide 19: Launch of numerous new products
Launch of numerous new products Pulse Cloud Practice Management for US GP’s Vision Anywhere for UK GP’s SaaS Our Playbook: Smart RX for French Pharmacists Digital Investing in MonLogicielMedical.com for French GP’s Innovation Launch of numerous new products Docavenue French platform Cegedim e-busine
Slide 20: Our Playbook
Our Playbook │20│ © Cegedim 2017
Slide 21: Business Model Transformation
Business Model Transformation │21│ Align organization and resources to our best opportunities © Cegedim 2017
Slide 22: BPO: Full Service Model
Software Extending the range of opportunities BPO: Full Service Model Software & Full Services Model + • US GP’s with RCM • HR Department (FNAC) • Health Insurance Companies (Klesia, YSTIA) Creating new opportunities with customers and expanding the value of Cegedim’s offer │22│ © Cegedim 2017
Slide 23: Operational Excellence
Simplify and optimize process Increase R&D productivity Software Factory Operational Excellence Reduce cost of services Industrialization New Head of HR New local management team Building employee engagement Recrut’lab │23│ © Cegedim 2017
Slide 24: 4 Growth Engines
4 Growth Engines │24│ © Cegedim 2017
Slide 25: Clear vision for our future
We have a clear vision for our future and are strongly positioned in key Cegedim’s global market Transformation Our playbook is underway and starting to deliver benefits The business model transformation that began in fall 2015 is starting to pay off │25│ © Cegedim 2017
Slide 26: Cegedim Analysis of Results HY 2017 Earnings
Cegedim Analysis of Results HY 2017 Earnings
Slide 27: HY 2017 Results
HY 2017 Results 3.5% Group Revenue +7.0% 13.5% Americas EMEA excl. France +7.1% +7,0% 83.0% €230.6m €230.6m France €113.7m 116.9m +7.0% reported +6.4% L-f-L Q1 17 Q2 17 … H1 17 14.4% Group EBITDA €26.8m +€6.3m €33.2m +193bps The business model 12.5% transformation initiated in fall 2015 is €33.2m be
Slide 28: HY17 Revenue Growth
+6.4% (1.2)% +1.8% €230.6m €215.5m HY17 Revenue Growth +7.0% reported H1 16 L-f-L Forex Structure H1 17 │28│ © Cegedim 2017
Slide 29: Revenue Quarterly Organic Growth
Group Revenue +6.9% +6.4% +4.8% +4.9% +5.4% +2.4% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Revenue Health Insurance, HR & e-services Revenue Quarterly +12.5% Organic +13.0% +10.3% +9.5% +8.7% Growth +7.3% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Healthcare Professionals Revenue +0.5% +3.8% (0.7)% (0.9)% (4.2)
Slide 30: Revenue Half Year Organic Growth
Group Revenue +6.4% +4.4% +3.6% FY 16 … H1 16 H1 17 Revenue Health Insurance, HR Half Year & e-services Revenue Organic +10.5% Growth +9.6% +9.8% FY16 … H1 16 H1 17 Healthcare Professionals Revenue +1.4% │30│ (2.8)% (3.0)% FY 16 … H1 16 H1 17 © Cegedim 2017
Slide 31: HY 17 EBITDA Trend
€15.1m €0.4m €(3.1)m €(6.1)m €0.1m €33.2m €26.8m HY 16 Revenue Purchases External Payroll Others HY 17 HY 17 used expenses used EBITDA Trend EBITDA Trend 4,251 RCM Pulse €16.4m SRH BPO +33% +189 BPO Insurance €12.4m 4,062 +31% €9.4m +176 3,886 Jun. 16 Dec. 16 Jun.17 H1 15 H1 16 H1 17 │31│ Net hiring
Slide 32: HY EBITDA by Division and Bridge
HY 17 Reported EBITDA In € million Change EBITDA Change Margin Health Insurance, HR & e-services 18.1 +1.4% 12.9% (142)bps Healthcare Professionals 15.4 +80.2% 17.4% +784bps EBITDA Trend Activities not allocated (0.3) n.m. (15.4)% n.m. Group (33.2) +23.6% 14.4% +193bps by Division +€6.8m €(0.8)m €33
Slide 33: Health Insurance, HR & e-services Revenue
+3.1% €140.3m +9.8% €124.6m (0.3)% 60.8% +12.6% reported H1-16 L-f-L Forex Structure H1-17 Health H1 17 Revenue growth Insurance, HR % of H1-17 Consolidated revenue & e-services Revenue +12.6% €140.3m €124.5m EMEA exc. France €64.8m €71.7m 3.1% France 96.9% €68.6m €59.7m │33│ H1 16 - H1 17 Quarterly
Slide 34: Health Insurance, HR & e-services P&L
In € million HY 16 HY 17 % change Revenue 124.6 140.3 +12.6% EBITDA 17.9 18.1 1.4% Margin 14.3% 12.9% (142)bps D&A (7.3) (9.3) +28.0% EBIT before special items 10.6 8.8 (16.8)% Margin 8.5% 6.3% (222)bps Health Insurance, HR Special items (0.3) (0.7) +160.6% & e-services P&L This significant revenue
Slide 35: Healthcare Professionals Revenue
+1.4% (2.5)% 38.3% €89.4m +0.0% €88.4m (1.1)% reported Healthcare H1-16 L-f-L Forex Structure H1-17 Professionals % of H1-17 Consolidated revenue H1 Revenue growth Revenue (1.1)% €89.4m €88.4m Americas €43.7m €44.3m 9.1% France EMEA 60.5% exc. France €45.7m €44.0m 30.4% │35│ H1 16 - H1 17 Quarterly
Slide 36: Healthcare Professionals P&L
In € million HY 16 HY 17 % change Revenue 89.4 88.4 (1.1)% EBITDA 8.5 15.4 80.2% Margin 9.5% 17.4% 784bps D&A (6.5) (7.4) +13.5% EBIT before special items 2.0 8.0 293.0% Healthcare Margin 2.3% 9.0% 677bps Professionals Special items (3.0) (9.7) +225.9% P&L This robust first-half performance was chie
Slide 37: From EBITDA to EBIT before special items
€6.3m €33.2m €26.8m HY 16 HY 17 EBITDA Trend +€3.1m €19.6m €16.4m €6.5m €5.6m Most of the increase From EBITDA to was due to the amortization of €2.1 EBIT before special items €10.8m €13.1m million of R&D expenses HY 16 HY 17 R&D Depreciation Depreciation Depreciation expenses €13.6m €3.2m €10.4m │3
Slide 38: Between EBIT before special items and Net Earnings
€11.7m +€8.0m Without the accelerated €8.1m €3.7m amortization, exceptional items at June 2017 would €3.7m €3.6m have been virtually the same HY 16 HY 17 as at June 2016 Allowance and Provision Other special items Special Items Between €23.9m EBIT before special items €(20.6)m Positive impact of 201
Slide 39: HY 17 P&L
In € million HY 16 HY 17 % change Revenue 215.5 230.6 +7.0% EBITDA 26.8 33.2 +23.6% Margin 12.5% 14.4% +193bps D&A (16.4) (19.6) +19.1% EBIT before special items 10.4 13.6 +30.6% HY 17 Margin 4.8% 5.9% +107bps P&L Special items (3.7) (11.7) +214.1% EBIT 6.7 1.9 (72.0)% Margin 3.1% 0.8% (228)bps Cost
Slide 40: Free Cash Flow from Operations and Net Debt Bridge
© Cegedi m 2017 Free Cash Flow from Operations In € million HY 16 HY 17 Cash flow before taxes and interests 29.2 34.1 Change in working capital requirement (10.6) +3.8 Corporate tax paid (2.3) (2.2) Net cash flow from operating activities 16.3 35.6 Acquisition of intangible assets (21.0) (23.9) HY
Slide 41: HY 17 Balance Sheet
In € million Dec. 16 Jun.17 Assets Goodwill 199.0 201.0 Intangible assets 139.4 138.2 Tangible assets 32.2 33.7 Financial assets 8.7 19.7 Other non-current assets 68.0 67.8 Cash & Cash equivalent 20.8 18.1 Trade receivables, short term portion 167.4 147.9 Other current assets 94.4 93.9 HY 17 Total a
Slide 42: 2017 Outlook
The business model transformation is well under way • Growth momentum is expected to continue and lead to improving profitability in the future • We expect to see the full impact of the Business model transformation in 2018 • H1 revenue growth was stronger than our current guidance • We expect FY 20
Slide 43: Potential impact of Brexit
12.7% UK revenue part of consolidated Group revenue Potential 14.8% impact of UK EBIT part of consolidated Brexit 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
Slide 44: Portfolio Management, Business Model Transformation, Investing in Innovation
Portfolio Management Business Model Transformation without Business Model Transformation eS = Investing in Innovation
Slide 45: Q&A Session
Q&A Session
Slide 46: Jan Eryk Umiastowski
Jan Eryk Umiastowski Chief Investment Officer – Head of Investor Relations [email protected] Tel: 00 33 1 49 09 33 36 – Mob: 00 33 6 73 25 96 34 © Cegedim 2017