Cegedim : Cedegim - Half Year 2020 Earnings presentation

This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. By their nature, forward-looking statements involve risk and uncertainty. Consequently the company cannot guarantee their accuracy and their completeness, and actual results may differ materially from those the company anticipated due to a number of uncertainties, many of which the company is not aware of.

For additional information concerning important factors that may cause the company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the company with the 'Autorité des Marchés Financiers'.

Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Cegedim

Cegedim

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Our offering

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A global presence

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A unique, diversified Group creating synergies and opportunities

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Business group review

The Big Picture

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Covid-19 and lockdown

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Disciplined financial management

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Impact on operation

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FY 2020 Outlook

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Finance

H1 2020

The big picture

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H1 2020 Revenue overview

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L-f-l revenue growth by business group

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Recurring Operating Income Trend

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Health Insurance, HR & E-Services Division Overview

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Healthcare Professionals Division Overview

H1 2020 Financial Performance

In € million

H1 2019		H1 2020		% change

	REVENUE	245.8	236.2	(3.9)%
	EBITDA	45.5	38.2	(15.9)%
	Margin	18.5%	16.2%		(231)bps
	D&A	(32.8)	(31.9)	(2.7)%
	RECURRING OPERATING INCOME			6.3	(50.1)%
		12.6
	Margin		5.1%	2.7%		(247)bps
	Other non-recurring operating income and expenses		(16.3)	(6.2)	(62.1)%
	Operating income		(3.6)	0.1		n.m.
		(1.5)%	0.1%		+154bps
	Margin
	Cost of net financial debt		(4.5)	(4.6)	+2.4%
	Total Taxes		(2.1)	(0.2)	(89.8)%
	NET EARNINGS		(10.2)		(4.6)		(54.5)%
	RECURRING EARNINGS PER SHARE		(0.4)		(0.2)		(49.0)%
	EARNINGS PER SHARE		(0.7)		(0.3)		(54.1)%

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June 2020 Balance Sheet Sound Financial Structure

In € million

ASSETS

Dec. 19 Jun. 20

Goodwill				192.7		186.0
Intangible assets				157.5		163.9
Tangible assets				99.2		102.7
Financial assets				19.8		22.0
Other non-current assets			47.6		48.4
Cash & cash equivalents			29.1		26.1	!	Includes sums managed on behalf of mutual insurers and insurance
Trade receivables, short-term portion			144.0		139.5	companies under the outsourced management contracts signed with the
Other current assets	!			118.7		181.2		Group in the amount of €137m at June 30, 2020 and €81m at December 31,
Total assets			808.6		870.0		2019.
SHAREHOLDERS EQUITY & LIABILITIES
Shareholder equity				201.2		191.0
Long-term financial debt			195.7		196.3
Other non-current liabilities			95.2		101.6
Short-term financial debt			14.0		6.0
Other current liabilities			302.6		375.2
Total equity and liabilities			808.6		870.0

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FCF from operations

In € million

June 2019

June 2020

Cash flow before taxes and interests	43.1	34.7		The improvement in WCR is attributable to:
Change in working capital requirement	(47.6)	+18.1	!
Corporate tax paid	(0.5)	(2.1)		• a €15 million boost from the postponement of social
Net cash flow from operating activities	4.9	50.7		charges and rent payments as a result of efforts to
	mitigate the impacts of the Covid-19 crisis,
Acquisition of intangible assets	(26.1)	(27.8)
	• the termination of non-recourse factoring
Acquisition of tangible assets	(4.9)	(5.0)
	agreements in December 2019 (€14.9 million impact
Disposals of tangible and intangible assets	0.1	0.3
	at June 30, 2019)
Free cash flow from operations	(35.8)	+18.1		• the fluctuation in advances paid by client at the

health Insurance BPO business

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Change in Net Financial Debt

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FY 2020 Financial Agenda

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Annexes

Alternative Performance Indicator

This financial performance indicator is equivalent to "operating profit from continuing activities" plus net depreciation and amortization expenses.

Operating profit from continuing activities is defined as the sum of « recurring operating income » and « other non-recurring operating income and expenses. »

Other non-recurringoperating income and expenses is defined as consists of unusual items, notably as concerns the nature or frequency, that could distort the assessment of Group entities' financial performance. Other non-recurring operating income and expenses may include impairment of tangible assets, goodwill, and other intangible assets, gains or losses on disposals of non-current assets, restructuring costs, and costs relating to workforce adaptation measures.

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Recurring operating income and EBITDA

in € million

In € million		H1 2019		H1 2020
Operating income (a)		(3.6)		0.1
Non-recurring operating income and expenses (b)		(13.8)		(6.2)
Amortization of goodwill (c)		(2.5)		(0.0)
Recurring operating income (REBIT) (d= a-b-c)		12.6		6.3
Depreciation and amortization expenses (e)		(32.8)		(31.9)
EBITDA (f=d-e)		45.5		38.2

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H1 2020 Revenue

In € thousands	Division 1	Division 2	Division 3	Group
2019 REVENUE (a)	162,498	81,572	1,724	245,795
Impact of disposals	0	(5,584)	0	(5,584)
2019 Revenue before impact of disposals	162,498	75,988	1,724	240,211
Currency impact	(11)	(69)	0	(79)
2019 Revenue at 2020 exchange rate (b)	162,488	75,920	1,724	240,131
2020 Revenue before impact of acquisitions (c)	158,097	74,147	1,730	233,973
Revenue from acquisitions	2,225	0	0	2,225
2020 Revenue	160,322	74,147	1,730	236,199
Organic growth ([c-b/a]	(2,7)%	(2.2)%	+0.3%	(2.5)%

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Recurring operating income and EBITDA IFRS 16 BRIDGE

In € million		H1 2020		IFRS 16		H1 2020
	Reported		Treatment		Adjusted
EBITDA		38.2		8.0		30.2
margin		16.2%		-		12.8%
D&A		(31.9)		(7.7)		(24.3)
RECURRING OPERATING INCOME		6.3		0.3		6.0
Margin		2.7%		-		2.5%
Other non-recurring operating income and expenses		(6.2)		-		(6.2)
Operating income		0.1		0.3		(0.2)
Margin		0.1%		-		(0.1)%
Cost of net financial debt		(4.6)		(0.7)		(3.9)
Total Taxes		(0.2)		0.1		(0.3)
Net earnings		(4.7)		(0.3)		(4.4)

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Thank you for your attention

Jan Eryk Umiastowski

Chief Investment Officer - Head of Investor Relations

[e-mail]

Tel: [phone] - Mob: [phone]

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