Cegedim Sa · EURONEXT:ALCGM
Cegedim Sa — FY2010 Earnings Presentation
41 slides from Cegedim Sa's earnings presentation, Apr 14, 2011
Slide 1: 2010 Results, 2011 Outlook
2010 Results 2011 Outlook April 14th 2011
Slide 2: Cegedim profile
Cegedim profile | > Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 2 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 3: Cegedim in 2010
Cegedim in 2010 Key figures 2010 Highlights Revenue Numerous commercial successes in € millions S brought on by significant innovations 2010 926.7 2009 874.1 6.0% Recurring EBITDA Promising acquisitions in € millions T 2010 174,0 2009 177.9 ‐2.2% Successful launch of a €300 million Recurring E
Slide 4: Cegedim activities focus on healthcare
Cegedim activities focus on healthcare | > Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 4 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 5: No direct competitor covers the entire value chain
No direct competitor covers the entire value chain | > Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 5 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 6: Key drivers and outlook
Key drivers and outlook | > Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 6 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 7: CRM & Strategic data
CRM & Strategic data | Group | > CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 7 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 8: Activities
Activities OneKey €93m CRM tools €211m Strategic data €144m €55m 69 countries covered Worldwide leader 36 years’ experience Constantly updated More than 200,000 users Over 50 global pharmaceutical companies as clients More than 6 million registered Present in more than 80 countries h
Slide 9: Two main factors impact the CRM business
Two main factors impact the CRM business ¼ Decrease in number of medical reps France Impact only our CRM 2010 software activity Germany 2010 # of Medical Reps. 17.717 # of Medical Reps. 17.018 T = in % versus 2009 ‐4.5% in % versus 2009 +0.6% Doctors per Reps 10.3 Doctors per Reps 13.4 % Generic *
Slide 10: OneKey database
OneKey database Highlights g g and outlook ¼ Successful acquisition of SK&A in the US Contract signed with the government agency in charge of leading efforts to encourage the use of electronic health record in the US ¼ Expansion China definitively launched with more than 30 cities covered Japa
Slide 11: CRM tools
CRM tools Highlights g g and outlook ¼ Launch of the global Organization Manager offer Product for the management and optimization of pharmacy companies’ global resources Software the global management, country by country, products by products, of the allocation of the sales force and related ma
Slide 12: Healthcare Professionals
Healthcare Professionals | Group | CRM & Strategic Data | > Healthcare Professionals | Insurance & Services | Finance 12 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 13: Activities
Activities Physicians Pharmacists Paramedics Cegelease ¼ Practice ¼ Practice ¼ Practice ¼ Financial leasing management management management software software software Retail pharmacies ¼ Medication ¼ E-prescriptions ¼ Medication database database Healthcare professionals ¼ E-prescriptions ¼ E-p
Slide 14: Global presence
Global presence | Group | CRM & Strategic Data | > Healthcare Professionals | Insurance & Services | Finance 14 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 15: Highlights and outlook
Highlights and outlook ¼ Physicians Acquisition of Pulse Systems, Inc in the USA 2011: Launch of new web-based doctor’s software. Products developed in Spain for all our affiliates Excellent 2010 year during which the net balance of new versus retired doctors has become very positive Mon Log
Slide 16: Focus on US market
Focus on US market EHR market opportunity Ambulatory market potential (source: SK&A) 625,000 physicians Practice size Total # of EHR # of p physicians y p pratctices penetration p 13% - 33% current EHR penetration 1‐3 163,000 ∼13% 4‐9 27,000 ∼22% HITECH act - $44K to $64k per physician for cer
Slide 17: Insurance & Services
Insurance & Services | Group | CRM & Strategic data | Healthcare professionals | > Insurance & Services | Finance 17 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 18: Activities
Activities | Group | CRM & Strategic data | Healthcare professionals | > Insurance & Services | Finance 18 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 19: Highlights and outlook
Highlights and outlook The creation of increasingly more complex, complementary products, is forcing Industry in turmoil following healthcare professionals to seek online services ensuring reimbursement in the arrival of accordance with the specific rights of the insured new players The revolution o
Slide 20: Highlights and outlook
Highlights and outlook ¼ Cegedim SRH Robust trend in the sales of services associated with outsourcing payroll and HR management with of new clients signing ¼ Cegedim e-business Success of our dematerialization offer and successful integration of Deskom Expectancy p y on our SEPA developments,
Slide 21: Finance
Finance 02 21 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 22: 2011 consolidated revenue
2011 consolidated revenue Sector development in % versus 2009 In millions of euros 2010 2009 Organic Structure Currency Reported CRM & Strategic data 526.5 498.3 ‐0.5% +2.8% +3.4% +5.7% Healthcare professionals 271.0 264.3 ‐0.2% +1.9% +0.8% +2.6% Insurance & Services 129.2 111.5 +9.2% +6.5% +0.1% +1
Slide 23: Well-balanced and diversified revenue mix
Well-balanced and diversified revenue mix 5% APAC 14% Insurance & Services 13% RoW 14% Americas 9% GBP 29% Healthcare Professionals 12% USD 27% EMEA excl. France 22% 15% 66% EUR 57% CRM & Strategic Data Top 10 clients 54% France Top 5 clients 5% Top client Highly diversified operations Good revenue
Slide 24: Higher year-end seasonal effect
Higher year-end seasonal effect Traditionally higher sales of software at the end of the year Spending of remaining operating budget More use of data and market research in Q4 due to reorganization of sales forces, organization of new campaign, annual reporting … | Group | CRM & Strategic Data
Slide 25: 2010 summarized income statement
2011 summarized income statement in € millions 2010 2009 Δ Margin Revenue 926.7 874.1 +6.0% Capitalized production 40.2 32.6 +23.2% Revenue in € millions S Purchases P h consumed d ‐110.9 110 9 ‐104.6 104 6 +6.0% 6 0% 2010 926.7 External expenses ‐225.6 ‐208.6 +8.1% 2009 874.1 +6.0% Taxes ‐14.7 ‐12.
Slide 26: Recurring EBITDA and EBIT per sector
Recurring EBITDA and EBIT per sector Recurring EBITDA EBITDA in € millions EBITDA margin 2010 2009 2010 2009 CRM and Strategic Data 76.1 88,0 14.4% 17.7% Healthcare Professionals 69.0 69.2 25.4% 26.2% Insurance & Services 29 0 29.0 20 6 20.6 22 4% 22.4% 18 5% 18.5% Recurring EBIT EBIT iin € millions
Slide 27: Non-recurring items
Non-recurring items in € millions 2010 2009 Δ Recurring EBIT 107.2 111.5 ‐3.9% Dendrite trademark waiver ‐104,0 104,0 0,0 nm Non‐current operating income and expenses ‐10.8 ‐11.7 ‐7.7% EBIT ‐7.6 99.8 nm Cancellation of the Dendrite brand 2007: "Dendrite" trademark is recognized as an asset as a co
Slide 28: Change in net earnings
Change in net earnings Net earnings Deferred income tax in € millions 2010 2009 Δ Reversal of deferred tax liability recognized EBIT ‐7.6 76 99 8 99.8 ‐107.6% 107 6% at the acquisition for the brand “Dendrite Dendrite " Income from cash and cash equivalents 1,0 1.4 ‐32.8% €41.5m impact Gross cos
Slide 29: 2010 summarized income statement
2010 summarized income statement | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 29 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 30: A cash flow-generating model
A cash flow-generating model 171 161 155 131 85 91 77 20% 18% 18% 17% 17% 17% 17% 2004 2005 2006 2007 2008 2009 2010 Operating cash flow before net financial debt expense and taxes in € millions % Cash flow margin | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > F
Slide 31: Cash flow in € millions
Cash flow in € millions €160.6m €11.5m €15.3m €40.2 m €15.4m €12.1m €56.3m €14.0m €102.3m €0.6m €18.7m €0.9m €78m Cash generated Change in Maintenance Loans issued and Interest paid on 2009 Cash Tax paid Capitalized R&D Cegelease Acquisitions* Dividends Other 2010 Cash by operations working capital
Slide 32: External growth
External growth Earn-out related to 2010 acquisitions are estimated to €15m, payable in 2012 Estimated budget for 2011 acquisitions: €10m | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 32 This document should not be distributed without Cegedim author
Slide 33: Sound financial position
Sound financial position Debt structure Ratios Gearing Leverage* in € millions 2010 2009 3,5 2.5 3.3 Net Financial debt* 416.5 350.0 3,0 Recurring EBITDA 174.0 177.9 2.4 2,5 0.9 1.0 Equity 480.3 466.0 2.0 2,0 1,5 Dec‐2008 D 2008 dé déc‐2008 janv.‐08 D Dec‐2009 2009 dé déc‐2009 janv.‐09 Dec‐2010 D 20
Slide 34: Dividend per share
Dividend per share Dividend policy Dividend per share The target is to distribute between 25% € 1.00 €1.00 (1) and 35% of distributable income € 0.90 0 90 € 0.80 € 0.00 2006 2007 2008 2009 2010 (1) Amount proposed to the June 8th, 2011, shareholders’ meeting Payout ratio in % 2006 2007 2008 2009 2
Slide 35: 2011 Financial outlook
2011 Financial outlook For 2011, the Group’s goal is to further strengthen the number and quality of products and services it offers to the world healthcare market, ¼ Revenue 2011 Outlook Excluding currency impacts and Estimated 2011 revenue growth* based on 2010 structure, 2011 CRM & Strategic Data
Slide 36: Strong and stable shareholder base
Strong and stable shareholder base Shareholder base as of end of December 2010 Board of directors Corporate governance Compliance with the recommendations of the AFEP-MEDEF code Creation of Audit, Audit Strategy, Strategy Nomination and Compensation committees. | Group | CRM & Strategic Data | H
Slide 37: Share ID
Share ID | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 37 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 38: 2011 Finance agenda
2011 Finance agenda | Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | > Finance 38 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 39: We welcome your questions and comments
=a 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 (0) 1 49 09 33 36
Slide 40: Additional information
Additional information 02 Hard copy only 40 This document should not be distributed without Cegedim authorization – Copyright 2011
Slide 41: Over 40 years of innovation
Over 40 years of innovation | > Group | CRM & Strategic Data | Healthcare Professionals | Insurance & Services | Finance 41 This document should not be distributed without Cegedim authorization – Copyright 2011