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Cegedim

Earnings Release Jan 27, 2022

1189_iss_2022-01-27_6d491233-fe95-4b56-b744-cef654e924d1.pdf

Earnings Release

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PRESS RELEASE

Quarterly financial information as of December 31, 2021 IFRS - Regulated information - Not audited

Cegedim: Steady revenue growth in 2021

  • Like-for-like (1) revenue growth of 5.0% to €525m in 2021
  • 2021 revenues at the top of the Group's estimated range

Boulogne-Billancourt, France, January 27, 2022, after the market close

Cegedim generated consolidated 4Q 2021 revenues of €148.7 million, an increase of 4.9% as reported and 3.9% like for like (1) compared with the same period in 2020. Over the full year, consolidated revenues of €524.7 million represented year-on-year growth of 5.6% as reported and 5.0% like for like (1).

"The Group's fourth-quarter revenue growth of 4.9% allowed it to achieve full-year revenue of €525 million in 2021 even though the pandemic ramped up late in the year. Owing to successful vaccination campaigns and the discovery of new medicines, we could see a gradual lessening of the public health crisis in 2022. We are confident that we can continue to grow sustainably while strengthening our ESG strategy, notably by following through on investments that respond to the growing need for digitalization in healthcare and business processes." Laurent Labrune – Cegedim Deputy Managing Director

Revenue

__________

12 months Change FY 2021 / 2020
in € millions 2021 2020 Reported Lfl (2)
Software & Services 292.0 277.2 +5.4% +4.4%
Flow 84.2 79.4 +6.1% +6.0%
Data & Marketing 98.4 87.8 +12.1% +12.1%
BPO 47.3 48.9 (3.3)% (3.3)%
Corporate and others 2.7 3.6 (24.8)% (24.8)%
Cegedim 524.7 496.9 +5.6% +5.0%

The Audit Committee, the ESG Committee and the Board of Directors met on January 27, 2022.

(2) At constant scope and exchange rates. The positive currency impact of 0.3% was mainly due to the pound sterling. The positive scope effect of 0.3% was attributable to the first-time consolidation of new acquisitions Médimust and Kobus Tech.

Cegedim 137 rue d'Aguesseau, 92100 Boulogne-Billancourt Tel: +33 (0)1 49 09 22 00 www.cegedim.com

(1) At constant scope and exchange rates.

Analysis of business trends by division

Software & Services

Over the full year 2021, revenues rose 4.4% like for like(1) compared with 2020 to €292.0 million, despite a challenging comparison in the fourth quarter.

Revenues got a boost from stronger growth in computerization activities for health insurers—bolstered by the resumption of project-based business, among other factors—and from an excellent performance in HR management outsourcing activities. Growth was also driven by trading operations in the fourth quarter.

Commercial trends at Cegedim Santé are robust despite the Covid flare-up late in the year, which curtailed sales efforts targeting healthcare professionals. Maiia, which specializes in appointment scheduling—particularly for vaccination appointments—and teleconsultation, doubled its revenues in 2021 compared with 2020, as predicted.

Flow

2021 revenues rose 6.0% like for like (1) compared with 2020 to €84.2 million.

The process digitalization and digital data flow business grew despite slowing somewhat in the fourth quarter due to the resurgence of the Covid-19 pandemic.

People in France reduced their use of the healthcare system because of public health restrictions, which put a crimp on healthcare flow business related to reimbursements. The negative impact was chiefly evident in the first and fourth quarters.

Data & Marketing

2021 revenues rose 12.1% like for like (1) compared with 2020 to €98.4 million.

Data activities experienced strong growth against the backdrop of the pandemic and had their strongest quarter of the year in Q4 despite a demanding comparison.

Digital displays in pharmacies experienced substantial growth over the year but ran into a challenging comparison in Q4, as the business had rebounded strongly in the fourth quarter of 2020. Futuramedia, a digital communication solutions expert for pharmacies, continues to roll out its offering in the UK.

BPO

2021 division revenues came to €47.3 million, down 3.3% like for like (1) compared with the same period in 2020. The fourth quarter benefited from an undemanding comparison.

This business, which largely involves managing services on behalf of insurance companies and mutual health insurers, was hurt by a decrease in unit prices now that the implementation phase is complete, and by less so-called overflow business. On the other hand, the division got a boost in Q4 from strong demand for BPO services from HR departments.

Corporate and others

2021 division revenues came to €2.7 million, down 24.8% like for like (1) compared with the same period in 2020.

Highlights

To the best of the company's knowledge, apart from the item mentioned below there were no events or changes during the fourth quarter of 2021 that would materially alter the Group's financial situation.

Euris litigation

Cegedim, jointly with IQVIA (formerly IMS Health), is being sued by Euris for unfair competition. Cegedim has asked the court to dismiss the case against the Group. On December 17, 2018, the Paris Commercial Court granted Cegedim's request, which IQVIA then appealed. On December 8, 2021, the Court of Appeals upheld the judgement in favor of Cegedim.

After consulting its external legal counsel, the Group had decided not to set aside any provisions.

Significant transactions and events post December 31, 2021

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.

Outlook

__________

With respect to 2021, trading operations carried out in the fourth quarter by the Software and services division are very likely to negatively affect recurring operating income (2) growth.

Based on currently available information and 2021 estimates, the Group expects 2022 revenue growth on a par with 2021 growth.

The Group does not expect to make any significant acquisitions in 2022. And lastly, the group does not provide earnings estimates or forecasts.

  • (1) At constant scope and exchange rates.
  • (2) See Universal Registration Document Chapter 4 "Consolidated Financial Statements" section 4.6 Note 2 on Alternative performance indicators

2022 Financial calendar

WEBCAST ON JANUARY 27, 2022 AT 6:15 PM (PARIS TIME)

The webcast is available at: www.cegedim.com/webcast

The FY 2021 revenues presentation is available:

2022 March 24, after the close FY 2021 results
April 28, after the close 1Q 2022 revenues
June 17 at 9:30 pm CET Shareholders' meeting
July 28 after the close 1H 2022 revenues
September 20 after the close 1H 2022 earnings

Disclaimer

This press release is available in French and in English. In the event of any difference between the two versions, the original French version takes precedence. It was sent to Cegedim's authorized distributor on January 27, 2022, no earlier than 5:45 pm Paris time.

The figures cited in this press release include guidance on Cegedim's future financial performance targets. 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 Chapter 7, "Risk management", section 7.2, "Risk factors and insurance", and Chapter 3, "Overview of the financial year", section 3.6, "Outlook", of the 2020 Universal Registration Document filled with the AMF on April 16, 2021 under number D.21-0320.

About Cegedim:

Founded in 1969, Cegedim is an innovative technology and services group 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 5,600 people in more than 10 countries and generated revenue of €525 million in 2021.

Cegedim SA is listed in Paris (EURONEXT: CGM).

To learn more, please visit: www.cegedim.fr

And follow Cegedim on Twitter: @CegedimGroup, LinkedIn and Facebook.

Aude BALLEYDIER Cegedim Media Relations

and Communications Manager Tél. : +33 (0)1 49 09 68 81 [email protected]

Cegedim Chief Investment and Investor Relations Officer

Jan Eryk UMIASTOWSKI

Tél. : +33 (0)1 49 09 33 36 [email protected] Céline PARDO suPR Media Relations

Tél. : +33 (0)6 52 08 13 66 [email protected] Follow Cegedim:

Annexes

Breakdown of revenue by quarter and division

Year 2021

in € thousands 1Q 2Q 3Q 4Q Total
Software & services 68.8 71.4 71.3 80.4 292.0
Flow 21.0 20.7 19.8 22.7 84.2
Data & Marketing 19.9 24.8 21.8 31.9 98.4
BPO 11.7 11.2 11.4 13.0 47.3
Corporate and others 1.0 0.5 0.5 0.7 2.7
Consolidated Group revenue 122.5 128.7 124.8 148.7 524.7

Year 2020

in € thousands 1Q 2Q 3Q 4Q Total
Software & services 69.1 64.4 68.0 75.5 277.2
Flow 20.4 18.0 19.0 22.0 79.4
Data & Marketing 18.9 19.6 19.0 30.3 87.8
BPO 12.3 11.6 12.0 13.0 48.9
Corporate and others 0.9 0.9 1.0 1.0 3.6
Consolidated Group revenue 121.5 114.7 118.9 141.8 496.9

Breakdown of revenue by geographic zone and division as of December 31, 2021

as a % of consolidated revenues France EMEA ex. France Americas
Software & services 81.5% 18.4% 0.1%
Flow 93.5% 6.5% 0.0%
Data & Marketing 97.4% 2.6% 0.0%
BPO 100.0% 0.0% 0.0%
Corporate and others 99.4% 0.6% 0.0%
Cegedim 88.2% 11.7% 0.1%

Breakdown of revenue by currency and division as of December 31, 2021

as a % of consolidated revenues Euro GBP Others
Software & services 84.5% 13.6% 1.9%
Flow 96.6% 3.4% 0.0%
Data & Marketing 97.4% 0.0% 2.6%
BPO 100.0% 0.0% 0.0%
Corporate and others 100.0% 0.0% 0.0%
Cegedim 90.4% 8.1% 1.6%

FY 2021 Revenue by sector

12 months
in € millions 2021 2020 LFL change(1) Reported chg.
Health insurance, HR and e-services 371.4 341.8 +8.5% +8.6%
Healthcare professionals 150.6 151.5 (2.1)% (0.6)%
Corporate and others 2.7 3.6 (24.8)% (24.8)%
Cegedim 524.7 496.9 +5.0% +5.6%

(1) At constant scope and exchange rates.

Sector / division comparison

FY 2021
in € millions Health insurance,
HR and e-services
Healthcare
professionals
Corporate and
others
Total
Software & services 141.4 150.6 - 292.0
Flow 84.2 - - 84.2
Data & Marketing 98.4 - - 98.4
BPO 47.3 - - 47.3
Corporate and others - - 2.7 2.7
Total 371.4 150.6 2.7 524.7

4Q 2021 Revenue by division

4Q Change 4Q 2021 / 2020
in € millions 2021 2020 Reported LFL(2)
Software & Services 80.4 75.5 +6.6% +4.8%
Flow 22.7 22.0 +3.2% +3.0%
Data & Marketing 31.9 30.3 +5.1% +5.1%
BPO 13.0 13.0 (0.4)% (0.4)%
Corporate and others 0.7 1.0 (27.4)% (27.4)%
Cegedim 148.7 141.8 +4.9% +3.9%

(2) At constant scope and exchange rates. The positive currency impact of 0.5% was mainly due to the pound sterling. The positive scope effect of 0.4% was attributable to the first-time consolidation of new acquisitions Médimust and Kobus Tech.

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