CEGEDIM
SA au capital de 13 336 506,43 euros R. C. S. Nanterre B 350 422 622 www.cegedim.com
PRESS RELEASE
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Quarterly Financial Information as of March 31, 2015
IFRS - Regulated Information - Not Audited
Reported growth of 7.0% and like-for-like growth of 4.8%
FY 2015 revenue growth outlook revised upward
S&P rating for Cegedim upgraded to BB-, positive outlook
Paris, April 28, 2015 - Cegedim, a technology and services company committed to innovation, posted consolidated first quarter 2015 revenues excluding activities held for sale of €119.3 million, up 7.0% on a reported basis and 4.8% like-for-like compared with the same period in 2014. All divisions contributed positively to the reported growth.
Cegedim announced on April 1, 2015, the completion of the disposal of its CRM and Strategic Data division to IMS Health for a selling price of €396 million1. Consequently, the first quarter 2015 Financial Statements are reported in compliance with IFRS 5 that separately classifies - Non-current Assets Held for Sale and Discontinued Operations.
Following this disposal, in order to provide more relevant information on its divisions that more closely reflects its new internal reporting, Cegedim will now report financial information for the following divisions: Technologies, Healthcare Professionals, Cegelease, and Reconciliation.
The main changes are the following:
• The Cegelease activity has been separated out to reflect its specific business model;
• The digital promotional activities have been transferred from the Healthcare Professionals division to the Technologies division, and the former Insurance and services division is now folded into the Technologies division;
• Finally, the Reconciliation division now encompasses only the activities the Group performs as the parent company of a listed entity, as well as the support it provides to the three operating divisions. The GERS activities have been transferred in to the Technologies division.
Rating agency S&P upgraded its rating for Cegedim on April 13, 2015, to BB- with a positive outlook.
As of its first quarter 2015 revenue release, Cegedim now expects consolidated revenue from continuing activities to grow by 2.5% like-for-like, against 1.0% previously.
1 This estimated amount is subject to joint review on the basis of the accounts at March 31, 2015, to be prepared within 90 business days.
PRESS RELEASE
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• The change in revenues per division for the 1st quarter is as follows:€ thousands | Q1 2015 | Q1 2014 | Q1 2015/2014 change | |
Reported | Like-for-like | |||
Technologies | 53,847 | 49,592 | +8.6% | +8.5% |
Healthcare Professionals | 36,139 | 36,041 | +0.3% | (6.3)% |
Cegelease | 28,950 | 25,533 | +13.4% | +13.4% |
Reconciliation | 335 | 304 | +10.3% | +10.3% |
Total from continuing activities | 119,271 | 111,469 | +7.0% | +4.8% |
Activities held for sale | 103,688 | 92,581 | +12.0% | +7.0% |
IFRS 5 Restatements | 2,038 | 1,900 | +7.3% | +7.3% |
Total Cegedim | 224,997 | 205,951 | +9.2% | +5.8% |
In the first quarter of 2015, revenues from continuing activities came to €119.3 million, up 4.8% on a like-for- like basis compared with the year-earlier period. Acquisitions had virtually no impact and currencies had a positive impact of 2.1%, thus revenue increased by 7.0% on a reported basis. Group revenue including activities held for sale amounted to €225.0 million, up 9.2% on a reported basis and 5.8% like-for-like.
The like-for-like decline at the Healthcare Professionals division was more than offset by an increase at the
Technologies and Cegelease divisions.
Analysis of business trends by division
• Technologies
The division's first-quarter 2015 revenues came to €53.8 million, up 8.6% on a reported basis and 8.5% like- for-like. Currencies had virtually no impact and there were no acquisitions or divestments.
The Technologies division represented 45.1% of the Group's consolidated revenues from continuing activities, compared with 44.5% a year earlier.
This increase was chiefly attributable to double-digit growth at RNP, the specialist in window dressing for French pharmacists; at Cegedim SRH, provider of human resources management solutions, which continues to record many commercial successes; and in the third-party payer data processing segment of Cegedim Assurances.
Finally, the electronic invoicing activity of the Cegedim e-business entity continues to grow, driven among other things by the rebound of the Cegedim Global Payments activity, which was penalized last year by the transition from a perpetual license offer to an SaaS offering.
• Healthcare Professionals
In the first quarter of 2015, the division's revenues amounted to €36.1 million, up 0.3% on a reported basis. The SoCall acquisition and currencies had positive impacts of respectively 0.1% and 6.5%. Like-for-like revenues were down 6.3% over the period.
The Healthcare Professionals division represented 30.3% of the Group's consolidated revenues from continuing activities, compared with 32.3% in the year-earlier period.
This like-for-like decrease mainly reflects the changes in sales model used for offers aimed at French pharmacists. Indeed, the rental model, under which revenues are recognized at Cegelease, is now favored over direct license sales, under which revenues are recognized at Alliadis (Healthcare Professionals division). We also note a cyclical effect on offers to US physicians and a temporary delay in the billing of UK physicians.
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As in the fourth quarter of 2014, this decline was partially offset by growth in the computerization of doctors in France, Belgium, Spain and Romania, and of pharmacies in the UK, as well as at drug database operations in France and the UK. Lastly, the computerization of nurses and physical therapists in France continued its double-digit growth.
• Cegelease
The division's first-quarter 2015 revenues came to €28.9 million, up 13.4% both on a reported basis and like for like. There were no acquisitions or divestments and no currencies impact.
The Cegelease division represented 24.3% of the Group's consolidated revenues from continuing activities, compared with 22.9% a year earlier.
This increase mainly reflects the significant recovery in the computerization of French pharmacies and the positive impact from the initial sales involving new partners in optics and in dental in the second half of 2014.
• Reconciliation
The division's first-quarter 2015 revenues came to €0.3 million, up 10.3% both on a reported basis and like-
for-like. Currencies had virtually no impact and there were no acquisitions or divestments.
The Reconciliation division represented 0.3% of the Group's consolidated revenues from continuing activities, as of a year earlier.
• Activities held for sale (division "CRM and Strategic Data")
In the first quarter of 2015, the division's revenues came to €103.7 million, up 12.0% on a reported basis. Currencies had a positive impact of 5.0%. There were no acquisitions or divestments. Like-for-like revenues increased 7.0% over the period.
1st quarter highlights
To the best of the company's knowledge, there were no events or changes during the period that would materially alter the Group's financial situation.
Significant post-closing transactions and events
• Disposal of the "CRM and Strategic Data" division to IMS Health
On April 1, 2015, Cegedim announced the completion of the disposal of its CRM and Strategic Data division to IMS Health. The estimated selling price, determined in accordance with October 2014 agreements, amounts to €396 million. This estimated amount is subject to joint review on the basis of the accounts at March 31, 2015, to be prepared within 90 business days.
• S&P has upgraded Cegedim's rating to BB- with positive outlook
Following the announcement of the transaction, rating agency Standard and Poor's upgraded Cegedim's rating to BB-, with positive outlook, on April 13, 2015.
Apart from the items cited above, to the best of the company's knowledge, there were no post-closing events or changes that would materially alter the Group's financial situation.
PRESS RELEASE
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Outlook
For 2015, Cegedim now expects consolidated revenue from continuing activities to record like-for-like growth of 2.5%, compared with a 1.0% increase before. The Group will adjust its forecast growth rate for EBIT before special items from continuing activities after the first-quarter earnings release on May 27, 2015. Please note that the Group currently anticipates growth in consolidated EBIT before special items from continuing activities of more than 5%.
The Group does not anticipate any significant acquisitions for 2015 and does not disclose profit projections or estimates.
Financial calendar
The Group will hold a conference call on April 28, 2015, at 6:15 pm in English (Paris time). The call will be hosted by Jan Eryk Umiastowski, Cegedim Chief Investment Officer and Head of Investor Relations.
A presentation of Cegedim 2015 Q1 Revenue will also be available on the website:
http://www.cegedim.com/finance/documentation/Pages/presentations.aspx
Contact numbers: France: +33 1 70 77 09 42
US : +1 866 907 5928
UK and others: +44 (0)20 3367 9457
No Access code required
May 27, 2015 (after the stock market closes) Q1 2015 Results announcement July 28, 2015 (after the stock market closes)Q2 2015 Revenue announcement
September 21, 2015 (after the stock market closes) H1 2015 Results announcement September 22, 2015SFAF meeting
October 27, 2015 (after the stock market closes) Q3 2015 Revenue announcement November 26, 2015 (after the stock market closes)Q3 2015 Results announcement
Additional Information
Complete financial information and a presentation on Cegedim's first quarter revenues are available on our website: www.cegedim.com/finance.
This information is also available on Cegedim IR, the Group's financial communications app for smartphones and iOS and Android tablets. To download the app, visit: http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx.
PRESS RELEASE
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Appendices
• Revenues by division and by quarter: Year 2015
€ thousands Q1 Q2 Q3 Q4 Total
Technologies 53,847 Healthcare Professionals 36,136 Cegelease 28,950 Reconciliation 335 Total from continuing activities 119,271 Activities held for sale 103,688 IFRS 5 Restatements 2,038 | 53,847 36,136 28,950 335 119,271 103,688 2,038 |
Total Cegedim 224,997 | 224,997 |
€ thousands Q1 Q2 Q3 Q4 Total
Technologies 49,592 Healthcare Professionals 36,041 Cegelease 25,533 Reconciliation 304 Total from continuing activities 111,469 Activities held for sale 92,581 IFRS 5 Restatements 1,900 | 49,592 36,041 25,533 304 111,469 92,581 1,900 |
Total Cegedim 205,951 | 205,951 |
• Revenues from continuing activities, breakdown by geographic zone as of Q1 2015
France EMEA ex.
France Americas APAC
Technologies 98.7% 1.3% - - Healthcare Professionals 46.3% 45.7% 8.0% - Cegelease 100.0% - - - Reconciliation 89.0% 11.0% - --
Total from continuing activities 83.1% 14.5% 2.4% -
• Revenue from continuing activities, breakdown by currency as of Q1 2015
Euro USD GBP Others
Technologies 98.7% - - 1.3% Healthcare Professionals 50.0% 7.9% 40.8% 1.4% Cegelease 100.0% - - - Reconciliation 100.0% 0.0% - 0.0% Total from continuing activities 84.2% 2.4% 12.4% 1.0%
PRESS RELEASE
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• Glossary
Reconciliation: this division encompasses the activities the Group performs as the parent company of a listed entity, as well as the support it provides to the three operating divisions. EPS: Earnings Per Share is a specific financial indicator defined by the Group as the net profit (loss) for the period divided by the weighted average of the number of shares in circulation. Operating expenses: defined as purchases used, external expenses and payroll costs. Revenue at constant exchange rate: when changes in revenue at constant exchange rate are referred to, it means that the impact of exchange rate fluctuations has been excluded. The term "at constant exchange rate" covers the fluctuation resulting from applying the exchange rates for the preceding period to the current fiscal year, all other factors remaining equal. Revenue on a like-for-like basis: the effect of changes in scope is corrected by restating the sales for the previous period as follows:• by removing the portion of sales originating in the entity or
the rights acquired for a period identical to the period during which they were held to the current period;
• similarly, when an entity is transferred, the sales for the portion in question in the previous period are eliminated.
Life-for-like data: at constant scope and exchange rates. Internal growth: internal growth covers growth resulting from the development of an existing contract, particularly due to an increase in rates and/or the volumes distributed or processed, new contracts, acquisitions of assets allocated to a contract or a specific project. External growth: external growth covers acquisitions during the current fiscal year, as well as those which have had a partial impact on the previous fiscal year, net of sales of entities and/or assets. EBIT: Earnings Before Interest and Taxes. EBIT corresponds to net revenue minus operating expenses (such as salaries, social charges, materials, energy, research, services, external services, advertising, etc.). It is the operating income for the Cegedim Group. EBIT from recurring operations: this is EBIT restated to take account of non-current items, such as losses on tangible and intangible assets, restructuring, etc. It corresponds to the operating income from recurring operations for the Cegedim Group. EBITDA: Earnings before interest, taxes, depreciation and amortization. EBITDA is the term used when amortization or depreciation and revaluations are not taken into account. "D" stands for depreciation of tangible assets (such as buildings, machines or vehicles), while "A" stands for amortization of intangible assets (such as patents, licenses and goodwill). EBITDA is restated to take account of non-current items, such as losses on tangible and intangible assets, restructuring, etc. It corresponds to the gross operating earnings from recurring operations for the Cegedim Group. Net Financial Debt: this represents the Company's net debt (non- current and current financial debt, bank loans, debt restated at amortized cost and interest on loans) net of cash and cash equivalents and excluding revaluation of debt derivatives. Free cash flow: free cash flow is cash generated, net of the cash part of the following items: (i) changes in working capital requirements, (ii) transactions on equity (changes in capital, dividends paid and received), (iii) capital expenditure net of transfers, (iv) net financial interest paid and (v) taxes paid. Operating margin: defined as the ratio of EBIT/revenue. Operating margin from recurring operations: defined as the ratio of EBIT from recurring operations/revenue. Net cash: defined as cash and cash equivalent minus overdraft.About Cegedim : Founded in 1969, Cegedim is a technology and services company committed to innovation. Cegedim supplies services, technological tools, specialized software, data flow management services and databases. Its offerings are targeted notably at healthcare professionals, healthcare industries, life science companies, and health insurance companies. Cegedim employs almost 3,500 people in 11 countries and generated revenue from continuing activities of €494 million in 2014. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup
Contacts : Aude BALLEYDIER
Cegedim
Media Relations
Tel.: +33 (0)1 49 09 68 81 aude.balleydier@cegedim.fr
Jan Eryk UMIASTOWSKICegedim
Chief investment Officer
Investor Relations
Tel.: +33 (0)1 49 09 33 36 investor.relations@cegedim.fr
Guillaume DE CHAMISSOPRPA Agency
Press Relations
Tel.: +33 (0)1 77 35 60 99 guillaume.dechamisso@prpa.fr
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