Half-Year Financial Information as of June 30, 2016 IFRS -
Regulated Information - Audited
Cegedim: a mixed first-half 2016 marked by revenue growth and
margins temporarily pinched by investments and the start of
business with new clients
- Interest expense fell considerably in Q2 2016
- Continuing activities returned to positive earnings in Q2
2016
- Robust investment program had an impact
- 2016 revenue target revised upward, but EBITDA expectations
revised lower
|
PRESS RELEASE |
|
Disclaimer: Pursuant to IAS
17 as it applies to Cegelease's activities, leases are now
classified as financial leases, resulting in an adjustment to the
Q1, Q2 and Half-year 2015 figures published in 2015. Readers should
refer to the last annexe of this press release for full details of
the adjustments. All of the figures in this press release reflect
the adjustments. |
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Boulogne-Billancourt, September 15, 2016
Cegedim , an innovative technology and
services company, posted consolidated H1 2016 revenues from
continuing activities of €215.5 million, up 4.3% on a reported
basis and 3.6% like for like compared with the same period in 2015.
EBITDA came to €25.7 million in the first half, down 26.9% year on
year.
Like-for-like growth at the Health insurance, HR
and e-services division picked up in the second quarter relative to
the first despite the ongoing migration of clients over to
SaaS/cloud offerings. EBITDA declined at all of the Group's
operational divisions as a result of the investments being made in
human resources and innovation in order to speed up the transition
of software products to cloud-based formats and swiftly roll out
the Group's new BPO offerings. Profitability has been negatively
affected during this business model transition. Cegedim expects to
begin seeing the initial positive impact of its investments,
reorganizations and transformations in 2017, with a full impact in
2018.
As proof that its clients see the relevance of
its new strategy, Cegedim is revising upward its target for 2016
revenues. However, as this is a pivotal year in the Group's
transformation, Cegedim is also lowering its EBITDA target for
2016.
This new business model will enable Cegedim to
enjoy greater customer loyalty, closer client relationships,
simpler operating processes, more robust offerings and stronger
geographic positions. The changes now under way will also boost the
share of recurring revenues, improve sales growth and
predictability, and enhance the Group's profitability.
Simplified income statement
|
H1 2016 |
H1 2015 |
Chg. |
|
In €m |
In % |
In €m |
In % |
In % |
Revenue |
215.5 |
100% |
206.7 |
100% |
+4.3% |
EBITDA |
25.7 |
11.9% |
35.1 |
17.0% |
(26.9)% |
Depreciation |
(16.4) |
- |
(14.8) |
- |
+10.8% |
EBIT
before special items |
9.2 |
4.3% |
20.3 |
9.8% |
(54.4)% |
Special
items |
(3.7) |
- |
(4.2) |
- |
(10.1)% |
EBIT |
5.5 |
2.6% |
16.1 |
7.8% |
(65.8)% |
Cost of
net financial debt |
(23.9) |
- |
(23.2) |
- |
+2.6% |
Tax
expenses |
(1.7) |
- |
(2.1) |
- |
(18.9)% |
Consolidated profit from continuing activities |
(19.0) |
(8.8)% |
(8.3) |
(4.0% |
+128.7% |
Net
earnings from activities held for sale |
(0.8) |
|
32.5 |
- |
n.m. |
Profit
attributable to the owners of the parent |
(19.8) |
(9.2)% |
24.2 |
11.7% |
n.m. |
EPS before special items |
(1.1) |
|
(0.3) |
|
+267.9% |
In the second quarter of 2016, Cegedim posted
consolidated revenues from continuing activities of €109.3 million,
up 2.9% on a reported basis. Excluding an unfavorable currency
translation effect of 1.3% and a 1.9% boost from acquisitions,
revenues rose 2.4%. In like-for-like terms the Health
Insurance, HR and e-services division's revenues rose by 10.3%,
whereas the Healthcare professionals division's revenues fell by
6.3%.
In first half 2016, Cegedim posted consolidated
revenues from continuing activities of €215.5 million, up 4.3% on a
reported basis. Excluding an unfavorable currency translation
effect of 0.9% and a 1.6% boost from acquisitions, revenues rose
3.6%. In like-for-like terms the Health Insurance, HR and
e-services division's revenues rose by 9.6%, whereas the Healthcare
professionals division's revenues fell by 3.0%.
EBITDA declined by €9.4 million, a drop
of 26.9%, to €25.7 million. The first-half margin fell to 11.9%
from 17.0% a year earlier. The EBITDA trend was attributable to all
of the Group's operational divisions and stemmed from investments
made in human resources and innovation in order to speed up the
transition of software products to cloud-based formats and swiftly
roll out the Group's new BPO offerings. Of all the hiring done over
the past 12 months, 89% of new contracts started between June 2015
and March 2016.
Depreciation charges rose €1.6 million,
from €14.8 million in H1 2015 to €16.4 million in H1 2016.
EBIT from recurring operations fell €11.0
million in the first half of 2016, or 54.4%, to €9.2 million. The
margin fell from 9.8% in the first half of 2015 to 4.3% in the
first half of 2016.
Special items amounted to a €3.7 million
charge in H1 2016 compared with a €4.2 million charge a year
earlier. The drop was chiefly due to the booking in 2015 of fees
related to the sale of the CRM and strategic data division to IMS
Health.
The net cost of financial debt rose by
€0.6 million, from €23.2 million in the first six months of 2015 to
€23.9 million in the first six months of 2016. The increase
reflects the payment of an early reimbursement premium on the 2020
bond amounting to €15.9 million in Q1 2016, which was almost
entirely offset by the decrease in interest paid in Q2 2016 owing
to the debt restructuring the Group performed in January 2016.
Tax fell from a charge of €2.1 million at
June 30, 2015, to a charge of €1.7 million at June 30, 2016, mainly
due to deferred tax assets.
Thus, the consolidated net result from
continuing activities came to a loss of €19.0 million at
end-June 2016, compared with a loss of €8.3 million in the
year-earlier period. The Group share of consolidated net
result was a loss of €19.8 million at end-June 2016, compared
with a profit of €24.2 million at end-June 2015.
Earnings per share before special items
came to €1.1 in the first half of 2016, compared with a €0.3 loss a
year earlier. Note that Earnings per share before special items
came to €0.3 profit in the second quarter, compared with a €0.3
loss a year earlier.
Analysis of business trends by division
|
|
Revenue |
|
EBIT before special items |
|
EBITDA |
In
€m |
|
H1 2016 |
H1 2015 |
|
H1 2016 |
H1 2015 |
|
H1 2016 |
H1 2015 |
Health Insurance, HR and
e-services |
|
124.6 |
110.7 |
|
10.5 |
12.8 |
|
17.8 |
20.7 |
Healthcare
Professionals |
|
89.4 |
94.0 |
|
1.0 |
8.5 |
|
7.4 |
14.2 |
Activities not
allocated |
|
1.6 |
1.9 |
|
(2.2) |
(1.1) |
|
0.5 |
0.2 |
Cegedim |
|
215.5 |
206.7 |
|
9.2 |
20.3 |
|
25.7 |
35.1 |
- Health insurance, HR and e-services
The division's H1 2016 revenues came to
€124.6 million, up 12.5% on a reported basis. The July 2015
acquisition of Activus in the UK made a positive contribution of
3.0%. Currencies had virtually no impact. Like-for-like revenues
rose 9.6% over the period. The Health insurance, HR
and e-services division represented 57.8% of consolidated
revenues from continuing activities, compared with 53.6% over the
same period a year earlier. The division's Q2 2016 revenues
came to €64.8 million, up 13.8% on a reported basis. The July 2015
acquisition of Activus in the UK made a positive contribution of
3.5%. Currencies had virtually no impact. Like-for-like revenues
rose 10.3% over the period:
This significant H1 2016 revenue growth was
chiefly attributable to:
- Cegedim Insurance Solutions, bolstered by robust growth in the
business of managing third-party payment flows and by its software
and services ranges for personal insurance companies, following the
start of operation with new clients which more than offset the
negative impact of switching its offering to a cloud format. BPO
activities for health insurance, with iGestion, posted double-digit
revenue growth. This division was also bolstered by the acquisition
of Activus in July 2015.
- Double-digit growth at Cegedim e-business following the start
of operations with new clients on its Global Invoice Services SaaS
platform for digital data exchanges, including payment
platforms.
- The start of operations with numerous clients on the Cegedim
SRH SaaS platform for human resources management, resulting in
double-digit revenue growth.
In the first half of 2016, division EBITDA
fell €2.9 million, or 14.0%, to €17.8 million. The EBITDA margin
came to 14.3%, vs. 18.7% a year earlier. In the second
quarter of 2016, division EBITDA fell €1.5 million, or 12.2%, to
€10.7 million. The EBITDA margin came to 16.5%, vs. 21.4% a year
earlier.
The drop in EBITDA was mainly due to:
- A temporary decrease in the profitability of the iGestion and
Cegedim e-business activities due to the start of operations with
numerous BPO clients;
- Cegedim Insurance Solutions offerings, due to switching the
core products over to SaaS format, the start of operations with
numerous new clients, and the start of new projects for existing
clients;
- RNP, the specialist in traditional and digital displays for
pharmacy windows in France, which suffered from a change in the
timing of promotional campaigns between 2015 and 2016;
This was partly offset by the good performances
of:
- The business of managing third-party payment flows;
- Cegedim SRH, despite the start of business with numerous BPO
clients.
The division's H1 2016 revenues came to €89.4
million, down 5.0% on a reported basis. Currency effects made a
negative contribution of 2.0%. There was no impact from
acquisitions or divestments. Like-for-like revenues fell 3.0% over
the period. The Healthcare professionals
division represented 41.5% of consolidated revenues from
continuing activities, compared with 45.5% over the same period a
year earlier. The division's Q2 2016 revenues came to €43.7
million, down 9.2% on a reported basis. Currency effects made a
negative contribution of 2.9%. There was no impact from
acquisitions or divestments. Like-for-like revenues fell 6.3% over
the period.
The decline in first-half and second-quarter
2016 revenues was chiefly attributable to:
- Weaker activity in the computerization of UK doctors, as the
market is now moving predominantly to cloud-based offerings. The
investments now being made in Cegedim's own cloud offering are
expected to result in renewed sales growth starting in 2017.
- The negative short-term impact of switching Belgian doctors
over to SaaS format.
- The second-quarter impact of the low level of order intake in
the pharmacy segment in France in late 2015. The order book
weakness has since been reversed, starting in May with the release
of the new Smart Rx offering - a comprehensive pharmacy management
solution built around a hybrid architecture that combines local and
cloud-based computing. The new solution will allow networks amongst
individual pharmacies and links with healthcare professionals.
Thus, revenues are likely to resume their growth in the next few
months.
These performances were partially offset by:
- Double-digit growth at Pulse in the first half, despite a
contraction in June owing to the postponement of certain projects,
mainly related to the unit's RCM offerings. The Group also set up a
new, more nimble organization in response to a growing and rapidly
changing market, particularly in BPO. For example, some changes
were made to the local management team, and cloud offerings from
Nightingale, acquired in late 2015, are currently being integrated
and first modules should be available in a few months and the
complete offer in September 2015. These investments efforts will
weigh on profitability in the short term, but they will ensure
profitable growth over the long run.
- Significant growth in solutions for physical therapists and
nurses in the second quarter, which more than made up for the
shortfall in the first quarter.
In the first half of 2016, division EBITDA
fell €6.7 million, or 47.5%, to €7.4 million. The EBITDA margin
came to 8.3%, vs. 15.1% a year earlier. In the second
quarter of 2016, division EBITDA fell €5.3 million, or 68.3%, to
€2.5 million. The EBITDA margin came to 5.7%, vs. 16.2% a year
earlier.
The decline in EBITDA was chiefly attributable
to investments made to ensure future growth. The Group was
penalized by the investments it made in:
- France, to develop the new hybrid offering for pharmacies,
which it launched in May 2016;
- The US, focusing on Revenue Cycle Management (RCM) activities
and SaaS electronic health records (EHR);
- The UK, where it aims to have a cloud-based offering for UK
doctors in 2017;
EBITDA felt a pinch in the short term from
efforts in the second quarter to switch Belgian doctors over to
SaaS format and investments done in the US.
The division's H1 2016 revenues came to €1.6
million, down 18.4% on a reported basis and like for like. There
were no currency effects and no acquisitions or
divestments.
The Activities not allocated
division represented 0.7% of consolidated revenues from
continuing activities, compared with 0.9% over the same period a
year earlier.
The division's Q2 2016 revenues came to €0.8
million, down 29.2% on a reported basis and like for like. There
were no currency effects and no acquisitions or
divestments.
This trend reflects the return to a normal level
of billing.
In the first half of 2016, division EBITDA
rose €0.2 million year on year to €0.5 million. In the second
quarter of 2016, division EBITDA rose €1.0 million year on year to
€1.4 million.
Financial resources
Cegedim's consolidated total balance
sheet amounted to €666.3 million, at June 30, 2016,
Acquisition goodwill represented €189.5
million at June 30, 2016, compared with €188.5 million at end-2015.
The €0.9 million increase, equal to 0.5%, was mainly attributable
to the restatement of expected future earn-out payments on the
Activus and Nightingale acquisitions, totaling €4.7 million; these
were partly offset by the euro's appreciation against certain
foreign currencies, chiefly the British pound, for a total of €3.7
million. Acquisition goodwill represented 28.4% of the total
balance sheet at June 30, 2016, compared with 21.8% on December 31,
2015.
Cash and equivalents came to €10.8
million at June 30, 2016, a decrease of €220.5 million compared
with December 31, 2015. The drop was principally due to the early
redemption of the 2020 bond for a nominal value of €340.1 million,
payment of a €15.9 million early redemption premium, and an €10.6
million deterioration in WCR, partly offset by drawing €169.0
million from the €200 million revolving credit facility. Cash and
equivalents represented 1.6% of the total balance sheet at June 30,
2016, compared with 26.8% at December 31, 2015.
Shareholders' equity fell by €29.7
million, i.e. 13.0%, to €198.4 million at June 30, 2016, compared
with €228.1 million at December 31, 2015. Shareholders' equity
represented 29.8% of the total balance sheet at end-June 2016,
compared with 26.4% at end-December 2015.
Net financial debt amounted to €216.6
million at end-June 2016, up €48.9 million compared with
end-December 2015. It represented 109.1% of Group shareholders'
equity at June 30, 2016.
Before the net cost of financial debt and
taxes, cash flow was €29.2 million at June 30, 2016, compared
with €35.3 million at June 30, 2015
Highlights
Apart from the items cited below, 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.
In January 2016, the Group took out a new
five-year revolving credit facility (RCF) of €200 million. The
applicable interest rate for this credit facility is Euribor plus a
margin. The Euribor rate can be the 1-, 3- or 6- month rate; if
Euribor is below zero, it will be deemed to be equal to zero. The
margin can range from 0.70% to 1.40% depending on the leverage
ratio calculated semi-annually in June and December (Refer to point
2.4.1.1 on page 13 of the Q2-2016 Quarterly Financial Report).
- Exercise of the call option on the entire 2020 bond
On April 1, 2016, Cegedim exercised its call
option on the entire 6.75% 2020 bond with ISIN code XS0906984272
and XS0906984355, for a total principal amount of €314,814,000.00
and a price of 105.0625%, i.e. a total premium of €15,937,458.75.
The company then cancelled these securities. The transaction was
financed by drawing a portion of the RCF obtained in January 2016
and using the proceeds of the sale to IMS Health. Following this
transaction, the Group's debt comprised the €45.1 million FCB
subordinated loan, the partially drawn €200 million RCF, and
overdraft facilities.
- S&P has raised Cegedim's rating to BB with positive
outlook
After Cegedim announced that it would redeem the
entire 6.75% 2020 bond, rating agency Standard and Poor's raised
the company's rating on April 28, 2016, to BB with a positive
outlook.
Apart from the items cited above, to the best of
the company's knowledge, there were no events or changes after the
accounts were closed that would materially alter the Group's
financial situation.
Significant post-closing transactions and events
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.
Outlook
Despite economic uncertainty and a challenging
geopolitical environment, Cegedim is revising its target for 2016
revenues upward. As it indicated in July, the Group is lowering its
EBITDA outlook. For the full year 2016, Cegedim expects:
- Like-for-like revenue growth of at least 3% from continuing
activities.
- A €10 million decrease in EBITDA compared with 2015. The vast
majority of this year-on-year decline occurred in the first half of
2016.
Cegedim expects to begin seeing the initial
positive impact of its investments, reorganizations and
transformations in 2017, with a full impact in 2018.
The Group does not expect any significant
acquisitions in 2016 and does not disclose profit projections or
estimates.
In 2015, the UK accounted for 15.1% of
consolidated Group revenues and 19.2% of consolidated Group
EBIT.
Cegedim deals in local currency in the UK, as it
does in every country where it is present. Thus, Brexit is unlikely
to have a material impact on Group EBIT.
The figures cited above include guidance on
Cegedim's future financial performances. This forward-looking
information is based on the opinions and assumptions of the Group's
senior management at the time this press release is issued and
naturally entails risks and uncertainty. For more information on
the risks facing Cegedim, please refer to points 2.4, "Risk factors
and insurance", and 3.7, "Outlook", of the 2015 Registration
Document filed with the AMF on March 31, 2016, as well as point
2.4, "Risk factors", of the Interim Financial Report of Q1
2016.
|
September 16, 2016, at 10am
CET November 29, 2016, after market closing December 14,
2016, at 1:30pm |
Analyst meeting (SFAF meeting) Q3
2016 earnings 7th Investor Day |
Financial calendar
September 15,
2016, at 6:15pm (Paris time) |
The Group will hold a conference call hosted by Jan Eryk
Umiastowski, Cegedim Chief Investment Officer and Head of Investor
Relations. The H1 2016 revenue presentation is available at: The
website:
http://www.cegedim.fr/finance/documentation/Pages/presentations.aspx
The Group's financial communications app, Cegedim IR. To download
the app, visit:
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx |
Contact
numbers: |
France: +33 1 70 77 09 44 United States: +1
866 907 5928 UK and others: +44 (0)20 3367 9453 |
No
access code required |
Informations additionnelles
The
Audit Committee met on September 13, 2016, and the Board of
Directors met on September 15, 2016, to review the first half of
2016 consolidated financial statements. |
|
The interim financial report
for the first half of 2016 is available: on our website In French:
http://www.cegedim.fr/finance/documentation/Pages/rapports.aspx In
English:
http://www.cegedim.com/finance/documentation/Pages/reports.aspx on
Cegedim IR, the Group's financial communications app To download
the app, visit
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx. |
Appendices
Balance sheet as June 30, 2016
- Assets as of June 30, 2016
In thousands of euros |
06.30.2016 |
12.31.2015(1) |
Goodwill on acquisition |
189,473 |
188,548 |
Development costs |
28,101 |
16,923 |
Other intangible fixed assets |
102,106 |
108,166 |
Intangible fixed assets |
130,208 |
125,089 |
Property |
459 |
459 |
Buildings |
4,907 |
5,021 |
Other tangible fixed assets |
17,634 |
16,574 |
Construction work in progress |
1,149 |
51 |
Tangible fixed assets |
24,149 |
22,107 |
Equity investments |
1,098 |
1,098 |
Loans |
3,138 |
3,146 |
Other long-term investments |
7,584 |
5,730 |
Long-term invetsments - excluding equity shares in equity method
companies |
11,820 |
9,973 |
Equity shares in equity method companies |
9,258 |
10,105 |
Government - Deferred tax |
27,274 |
28,722 |
Accounts receivable: Long-term portion |
26,945 |
26,544 |
Other receivables: Long-term portion |
609 |
1,132 |
Non-current assets |
419,736 |
412,219 |
Services in progress |
0 |
0 |
Goods |
9,484 |
8,978 |
Advances and deposits received on orders |
620 |
218 |
Accounts receivables: Short-term portion |
162,431 |
161,923 |
Other receivables: Short-term portion |
45,179 |
32,209 |
Cash
equivalents |
8,000 |
153,001 |
Cash |
2,765 |
78,298 |
Prepaid expenses |
16,500 |
16,666 |
Current Assets |
244,980 |
451,293 |
Assets of activities held for sale |
1,563 |
768 |
Total Assets |
666,280 |
864,280 |
- Restated see note "Correction of the accounting treatment of
the finance lease business in the group consolidated financial
statement.
- Liabilities and shareholders' equity as of June 31, 2016
In thousands of euros |
06.30.2016 |
12.31.2015(1) |
Share capital |
13,337 |
13,337 |
Group reserves |
205,317 |
139,287 |
Group exchange gains/losses |
(433) |
8,469 |
Group earnings |
(19,775) |
66,957 |
Shareholders' equity, Group share |
198,445 |
228,051 |
Minority interests (reserves) |
9 |
39 |
Minority interests (earnings) |
(26) |
41 |
Minority interests |
(17) |
79 |
Shareholders' equity |
198,429 |
228,130 |
Long-term financial liabilities |
223,000 |
51,723 |
Long-term financial intruments |
3,052 |
3,877 |
Deferred tax liabilities |
6,322 |
6,731 |
Non-current provisions |
20,451 |
19,307 |
Other non-current liabilities |
13,595 |
14,376 |
Non-current liabilities |
266,422 |
96,014 |
Short-term financial liabilities |
4,335 |
347,213 |
Short-term financial instruments |
5 |
5 |
Accounts payable and related accounts |
54,295 |
54,470 |
Tax
and social liabilities |
66,823 |
70,632 |
Provisions |
2,953 |
2,333 |
Other current liabilities |
72,422 |
61,657 |
Current liabilities |
200,832 |
536,311 |
Liabilities of activities held for sale |
597 |
3,823 |
Total Liabilities |
666,280 |
864,280 |
(1) Restated see note "Correction of
the accounting treatment of the finance lease business in the group
consolidated financial statement".
· Income
statements as of June 30, 2016
In thousands of euros |
06.30.2016 |
06.30.2015(1) |
Revenue |
215,509 |
206,661 |
Other operating activities revenue |
- |
- |
Purchased used |
(16,966) |
(20,009) |
External expenses |
(63,290) |
(52,718) |
Taxes |
(3,684) |
(5,728) |
Payroll costs |
(103,670) |
(92,148) |
Allocations to and reversals of provisions |
(2,454) |
(1,529) |
Change in inventories of products in progress and finished
products |
- |
- |
Other operating income and expenses |
240 |
585 |
EBITDA |
25,685 |
35,115 |
Depreciation expenses |
(16,443) |
(14,845) |
Operating income from recurring operations |
9,243 |
20,270 |
Depreciation of goodwill |
- |
- |
Non-recurrent income and expenses |
(3,731) |
(4,152) |
Other exceptional operating income and expenses |
(3,731) |
(4,152) |
Operating income |
5,511 |
16,118 |
Income from cash and cash equivalents |
974 |
1,063 |
Gross cost of financial debt |
(25,458) |
(24,984) |
Other financial income and expenses |
634 |
674 |
Cost of net financial debt |
(23,851) |
(23,247) |
Income taxes |
(530) |
(1,635) |
Deferred taxes |
(1,187) |
(483) |
Total taxes |
(1,717) |
(2,119) |
Share of profit (loss) for the period of equity method
companies |
1,082 |
952 |
Profit (loss) for the period from continuing activities |
(18,974) |
(8,295) |
Profit (loss) for the period from discontinued activities |
(826) |
32,450 |
Consolidated profit (loss) for the period |
(19,801) |
24,155 |
Group share |
(19,775) |
24,164 |
Minority interests |
(26) |
(9) |
Average number of shares excluding treasury stock |
13,953,978 |
13,954,653 |
Current Earnings Per Share (in euros) |
(1.1) |
(0.3) |
Earnings Per Share (in euros) |
(1.4) |
1.7 |
Dilutive instruments |
None |
None |
Earning for recurring operation per share (in euros) |
(1.4) |
1.7 |
(1) Restated see note "Correction of
the accounting treatment of the finance lease business in the group
consolidated financial statement.
- Consolidated cash flow statement as of June 30, 2016
In thousands of euros |
06.30.2016 |
06.30.2015(1) |
Consolidated profit (loss) for the period |
(19,801 |
24,154 |
Share of earnings from equity method companies |
(1,082) |
(995) |
Depreciation and provisions |
24,511 |
14,987 |
Capital gains or losses on disposals |
(38) |
(30,792) |
Cash flow after cost of net financial debt and taxes |
3,591 |
7,354 |
Cost
of net financial debt |
23,854 |
22,585 |
Tax
expenses |
1,722 |
5,323 |
Operating cash flow before cost of net financial debt and
taxes |
29,167 |
35,262 |
Tax
paid |
(2,251) |
(8,682) |
Change in working capital requirements for operations:
requirement |
(10,638) |
(25,188) |
Change in working capital requirements for operations: surplus |
- |
- |
Cash flow generated from operating activities after tax paid and
change in working capital requirements (A) |
16,278 |
1,392 |
Of
which net cash flows from operating activities of held for
sales |
(224) |
4,830 |
Acquisitions of intangible assets |
(20,976) |
(22,749) |
Acquisitions of tangible assets |
(7,811) |
(6,139) |
Acquisitions of long-term investments |
- |
- |
Disposals of tangible and intangible assets |
492 |
1,389 |
Disposals of long-term investments |
(130) |
1,717 |
Impact of changes in consolidation scope |
(1,448) |
323,982 |
Dividends received from equity method companies |
- |
12 |
Net cash flows generated by investment operations (B) |
(29,872) |
298,212 |
Of
which net cash flows connected to investment operations of
activities held for sales |
(9) |
(7,482) |
Dividends paid to parent company shareholders |
- |
- |
Dividends paid to the minority interests of consolidated
companies |
(17) |
- |
Capital increase through cash contribution |
- |
- |
Loans issued |
169,000 |
- |
Loans repaid |
(340,262) |
(60,848) |
Interest paid on loans |
(30,491) |
(24,951) |
Other financial income and expenses paid or received |
(566) |
(467) |
Net cash flows generated by financing operations (C) |
(202,337) |
(86,266) |
Of
which net cash flows related to financing operations of activities
held for sales |
(2) |
(850) |
Change In Cash without impact of change in foreign currency
exchange rates (A + B + C) |
(215,930) |
213,338 |
Impact of changes in foreign currency exchange rates |
(845) |
2,947 |
Change in cash |
(216,775) |
216,285 |
Opening cash |
228,120 |
99,715 |
Closing cash |
11,345 |
316,000 |
(1) Restated see note "Correction of
the accounting treatment of the finance lease business in the group
consolidated financial statement"
- Correction of the accounting treatment of the finance lease
business in the group consolidated financial statement
Cegelease is a wholly owned subsidiary of
Cegedim which offers since 2001 financing options through a variety
of contracts dedicated to pharmacies and healthcare professionals
in France.
Initially, these solutions were aimed at serving
the pharmacists, who preferred leasing instead of paying up-front,
the pharmacies management system software that they bought from the
Cegedim group.
As time passed, Cegelease diversified its
activities. Starting as the exclusive finance lease provider for
Cegedim group products, Cegelease converted to a broker proposing a
variety of leasing solutions (for group products as well as
products developed by third parties) offered to a variety of
clients (including clients who are not already in business with
other group entities).
After the sale of its CRM and strategic data
business to IMS Health, Cegedim investigated in depth these
activities and found that they had to be reclassified pursuant to
IAS 17 on March 23, 2016 when the 2015 accounts were published.
All the impacts on previous accounts are
indicated in the 2015 Registration Document filled with the AMF on
March 31, 2016 in Chapter 4.4 point 1.3 on page 89 to 94, as well
as in the Q1 2016 Financial Interim Report in point 2.5.1 on page
17 to 19 and in the Q2 2016 Financial Interim Report in point 2.5.1
on page 17.
Impacts on H1 2015 consolidated financial
statements are described below:
- H1 2015 Profit and Loss Statement
In € million |
06.30.2015 reported(1) |
Correction of leases |
06.30.2015 restated |
Revenue |
245,311 |
(38,650) |
206,661 |
Other operating activities revenue |
- |
|
- |
Purchases used |
(45,302) |
25,293 |
(20,009) |
External expenses |
(59,701) |
6,983 |
(52,718) |
Taxes |
(5,728) |
|
(5,728) |
Payroll costs |
(92,148) |
|
(92,148) |
Allocations to and reversals of provisions |
(1,529) |
|
(1,529) |
Change in inventories of products in progress and finished
products |
- |
|
- |
Other operating income and expenses |
585 |
|
585 |
EBITDA |
41,489 |
(6,374) |
35,115 |
Depreciation expenses |
(21,175) |
6,330 |
(14,845) |
Operating income from recurring operations |
20,314 |
(44) |
20,270 |
Depreciation of goodwill |
- |
|
- |
Non-recurrent income and expenses |
(4,152) |
|
(4,152) |
Other exceptional operating income and expenses |
(4,152) |
|
(4,152) |
Operating income |
16,162 |
(44) |
16,118 |
Income from cash and cash equivalents |
1,063 |
|
1,063 |
Gross cost of financial debt |
(24,984) |
|
(24,984) |
Other financial income and expenses |
674 |
|
674 |
Cost of net financial debt |
(23,247) |
|
(23,247) |
Income taxes |
(1,635) |
|
(1,635) |
Deferred taxes |
(500) |
17 |
(483) |
Total taxes |
(2,135) |
17 |
(2,119) |
Share of profit (loss) for the period of equity method
companies |
952 |
|
952 |
Profit (loss) for the period from continuing activities |
(8,268) |
(27) |
(8,295) |
Profit (loss) for the period discontinued activities |
32,450 |
|
32,450 |
Consolidated profit (loss) for the period |
24,182 |
(27) |
24,155 |
Group share |
24,191 |
(27) |
24,164 |
Minority interests |
(9) |
|
(9) |
(1) The "Taxes" line was
restated pursuant to IFRIC 21 for €1,518 thousand.
- H1 2015 Cash Flows Statement
In € million |
06.30.2015 reported(1) |
Correction of leases |
06.30.2015 restated |
Consolidated profit (loss) for the period |
24,181 |
(27) |
24,155 |
Share of earnings from equity method companies |
(995) |
|
(995) |
Depreciation and provisions |
21,317 |
(6,330) |
14,987 |
Capital gains or losses on disposals |
(30,792) |
|
(30,792) |
Cash flow after cost of net financial debt and taxes |
13,711 |
(6,357 |
7,354 |
Cost
of net financial debt |
22,585 |
|
22,585 |
Tax
expenses |
5,340 |
(17) |
5,323 |
Operating cash flow before cost of net financial debt and
taxes |
41,636 |
(6,374) |
35,262 |
Tax
paid |
(8,682) |
|
(8,682) |
Change in working capital requirements for operations:
requirement |
(23,073) |
(2,115) |
(25,188) |
Change in working capital requirements for operations: surplus |
- |
- |
- |
Cash flow generated from operating activities after tax paid and
change in working capital requirements (A) |
9,881 |
(8,489) |
1,392 |
Of
which net cash flows from operating activities of held for
sales |
4,830 |
|
4,830 |
Acquisitions of intangible assets |
(22,925) |
176 |
(22,749) |
Acquisitions of tangible assets |
(14,452) |
8,313 |
(6,139) |
Acquisitions of long-term investments |
- |
|
- |
Disposals of tangible and intangible assets |
1,389 |
|
1,389 |
Disposals of long-term investments |
1,717 |
|
1,717 |
Impact of changes in consolidation scope (1) |
323,982 |
|
323,982 |
Dividends received from equity method companies |
12 |
|
12 |
Net cash flows generated by investment operations (B) |
289,723 |
8,488 |
298,212 |
Of
which net cash flows connected to investment operations of
activities held for sales |
(7,482) |
|
(7,482) |
Dividends paid to parent company shareholders |
- |
|
- |
Dividends paid to the minority interests of consolidated
companies |
- |
|
- |
Capital increase through cash contribution |
- |
|
- |
Loans issued |
- |
|
- |
Loans repaid |
(60,848) |
|
(60,848) |
Interest paid on loans |
(24,951) |
|
(24,951) |
Other financial income and expenses paid or received |
(467) |
|
(467) |
Net cash flows generated by financing operations (C) |
(86,266) |
0 |
(86,266) |
Of which net cash flows related to financing operations of
activities held for sales |
(850) |
0 |
(850) |
Change In Cash without impact of change in foreign currency
exchange rates (A + B + C) |
213,338 |
0 |
213,338 |
Impact of changes in foreign currency exchange rates |
2,947 |
|
2,947 |
Change in cash |
216,285 |
|
216,285 |
Opening cash |
99,715 |
|
99,715 |
Closing cash |
316,000 |
0 |
316,000 |
(1) The "Taxes" line was
restated pursuant to IFRIC 21 for €1,518 thousand.
- Q1 2015 Revenue per division
In € million |
|
06.30.2015 reported |
IFRS 5 impact Cegedim Kadrige |
Correction of leases |
Divisions aggregation |
06.30.2015 restated |
|
|
|
(1) |
(2) |
(3) |
|
Health Insurance H.R. & e-services |
|
111.5 |
(0.8) |
- |
- |
110.7 |
Healthcare
Professionals |
|
76.5 |
- |
- |
17.5 |
94.0 |
Cegelease |
|
56.1 |
- |
(38.6) |
(17.5) |
- |
Activities not
allocated |
|
1.9 |
- |
- |
- |
1.9 |
Group Cegedim |
|
246.1 |
(0.8) |
(38.6) |
0 |
206.7 |
(1) The Cegedim Group
decided to sell the Kadrige activities. These activities are thus
isolated in separate lines of the profit and loss statement and
balance sheet, according to the IFRS 5 accounting standard.
(2) The correct accounting
treatment of the Cegelease finance lease business, for all types of
contracts (self-financed, sold except process management, or backed
against a bank) requires a correction of the consolidated revenue
of €38.6m downward..
(3) The finance lease
business accounts for less than 10% of the consolidated revenue or
EBITDA, and as such is not isolated anymore within the Group
internal reporting. These activities are reported into the «
Healthcare professionals » division, where they already belonged
until the 2014 annual closing.
Activities not allocated: 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 before special items: 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. EBIT margin: defined as the ratio of
EBIT/revenue. EBIT margin before special items:
defined as the ratio of EBIT before special items/revenue. Net
cash: defined as cash and cash equivalent minus overdraft.
|
Glossary
About Cegedim:Founded in 1969, Cegedim is 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 healthcare and insurance professionals.
Cegedim employs more than 3,600 people in 11 countries and
generated revenue of €426 million in 2015. Cegedim SA is listed in
Paris (EURONEXT: CGM). To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup and LinkedIn
|
Aude
BalleydierCegedim Communications Managerand Media
RelationsTel.: +33 (0)1 49 09 68 81aude.balleydier@cegedim.com |
Jan Eryk
UmiastowskiCegedimChief Investment Officerand Head of
Investor RelationsTel.: +33 (0)1 49 09 33
36janeryk.umiastowski@cegedim.com |
Guillaume de
ChamissoPRPA Agency Media RelationsTel.: +33 (0)1
77 35 60 99guillaume.dechamisso@prpa.fr |
Follow Cegedim:
|
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