Full-Year Financial Information as of December 31, 2015 IFRS -
Regulated Information - Audited
Cegedim: Successful strategic refocus and
return to positive net income in 2015
Cegelease's
activities restated according to the IAS 17 standard
Positive
earnings per share
Cegedim
debt refinanced
Robust
investment program maintained for 2016
EBITDA
expected to be stable in 2016
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 2014 figures published in
the 2014 Reference Document filed with the AMF on March 31, 2015,
and the 2015 revenue figure published on January 28, 2015. Readers
should refer to the last annex of this press release for full
details of the adjustments. All of the figures in this press
release reflect the adjustments.
Cegedim, an innovative technology and services company, generated
consolidated 2015 revenues from continuing activities of €426.2
million, up 0.2% like for like and 3.4% on a reported basis
compared with the same period in 2014. A like-for-like decline in
Healthcare professionals revenues was offset by growth at the
Health Insurance, HR and e-services division. The Health Insurance,
HR and e-services division made a significant recovery despite the
ongoing migration of clients to SaaS / Cloud formats.
EBITDA came to €78.5 million in 2015, up 0.7%
compared with the same period in 2014. The improvement was chiefly
due to the increase in Health Insurance, HR and e-services division
and the cost cutting in the Activities not allocated division,
which were partly offset by the decline at the Healthcare
professionals division. EBITDA margin amounted to 18.4% in 2015,
compared with 18.9% a year earlier.
Robust demand among Cegedim's clients for the
Group's cloud-based solutions and new Business Process Outsourcing
(BPO) products and services fully validates the decision management
made in mid-2015 to speed up the shift to cloud-based software
offerings and rapidly roll out Cegedim's new BPO range. During this
transitional period, revenues and profitability have taken a hit
from the significant investments the Group has had to make in human
resources and innovation, and from the switch to a new method of
cost and revenue recognition. Even so, the numerous innovations the
Group brought to market in 2015 enabled it to maintain a stable
level of like-for-like revenues. For 2016, as it announced on
January 28, Cegedim confirms that it expects stable revenues from
continuing activities and stable EBITDA.
Further out, Cegedim will 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
In January 2016, the Group took out a new
five-year Revolving Credit Facility (RCF) of €200 million. This
facility, combined with the proceeds of the deal with IMS Health,
will allow the Group to redeem the entire 6.75% 2020 bond issue on
April 1, 2016, if market conditions permit. Following the
redemption, the Group's pro forma financial charges (excluding the
early bond redemption premium) will decrease by around
nine-fold.
- Simplified income statement
|
2015 |
2014 |
Change in % |
€M |
% |
€M |
% |
Revenue |
426.2 |
100% |
412.2 |
100% |
+3.4% |
EBITDA |
78.5 |
18.4% |
78.0 |
18.9% |
+0.7% |
Depreciation |
(30.4) |
- |
(26.3) |
- |
+15.5% |
Operating income before special items |
48.1 |
11.3% |
51.6 |
12.5% |
(6.9)% |
Special items |
(6.7) |
- |
(11.0) |
- |
(39.6)% |
Operating income |
41.4 |
9.7% |
40.6 |
9.8% |
+2.0% |
Cost of net financial
debt |
(40.8) |
- |
(47.7) |
- |
(14.5)% |
Tax expenses |
17.6 |
- |
(1.6) |
- |
n.m. |
Consolidated profit from continuing activities |
19.5 |
4.6% |
(7.5) |
(1.8% |
n.m. |
Net earnings from
activities sold and held for sale |
47.5 |
|
(192.2) |
- |
n.m. |
Consolidated profit (loss) Group Share |
67.0 |
15.7% |
(199.7) |
(48.4%) |
n.m. |
Earnings per share |
4.8 |
|
(14.3) |
|
n.m. |
Cegelease's business has evolved since its
creation in 2001, leading to its lease contracts being reclassified
as financial lease contracts in accordance with IAS 17. As a
result, Cegedim's 2014 financial statements and 2015 revenues have
been restated. The full details of the restatements are provided in
the appendix. Moreover, as Cegelease now represents less than 10%
of Group revenues and consolidated EBITDA, it has been transferred
back to the Health Professionals division. Finally, in March 2015,
Cegedim Kadrige was classified as an activity held for sale. Thus,
the impact of this activity is presented in separate lines of the
income statement and the consolidated balance sheet in accordance
with IFRS 5.
In 2015, Cegedim posted consolidated revenues
from continuing activities of €426.2 million, up 2.4% on a reported
basis. Excluding a favorable currency translation effect of 2.2%
and a 0.9% boost from acquisitions, revenues rose 0.2%.
In like-for-like terms, the drop at the
Healthcare professionals division was offset by growth at the
Health Insurance, HR and e-services and Activities not allocated
divisions.
EBITDA rose €0.5 million, or 0.7%, to €78.5
million. The margin dropped marginally, from 18.9% in 2014 to 18.4%
in 2015. The drop in the Healthcare professionals division's EBITDA
was offset by substantial growth at the Health Insurance, HR and
e-services and Activities not allocated divisions.
Depreciation charges rose €4.1 million, from
€26.3 million in 2014 to €30.4 million in 2015.Exceptional items
amounted to a €6.7 million charge in 2015 compared with an €11.0
million charge a year earlier. The lion's share of these charges
were linked to reorganization costs at the doctor computerization
activity in the UK and fees related to the sale of the CRM and
strategic data division to IMS Health.
EBIT before special items fell €3.6 million year
on year, or 6.9%, to €51.6 million. The margin declined from 12.5%
in 2014 to 11.3% in 2015.
The cost of financial debt fell by €6.9 million,
from €47.7 million at December 31, 2014, to €40.8 million at
December 31, 2015.This decline mainly reflects gains on financial
investments and the positive impact of restructuring the Group's
bond debt in 2014 and 2015.
The tax charge went from an expense of €1.6
million in 2014 to a credit of €17.6 million in 2015. This change
is chiefly attributable to the booking of a deferred tax asset at
the end of December 2015 in the amount of €20 million,
corresponding to a projected tax credit over four years linked to
the sale of the CRM and strategic data division to IMS Health.
Thus, the consolidated net result from
continuing activities came to a profit of €19.5 million at
end-December 2015, compared with a loss of €192.2 million over
year-earlier period. Earnings per share from continuing activities
before exceptional items amounted to a profit of €1.6 at
end-September 2015, compared with a loss of €0.2 at end-September
2014. The Group share of consolidated net result was a profit of
€67.0 million at end-September 2015, compared with a loss of €199.7
million at end-September 2014.This profit was the result of an
adjustment to the proceeds of the divestment (see note 3.3 in the
appendix to the consolidated financial statements). Earnings per
share were a profit of €4.8 in 2015 compared with a €14.3 loss a
year earlier.
Analysis of business trends by division
|
|
Revenue |
|
EBIT before special items |
|
EBITDA |
in €
million |
|
2015 |
2014 |
|
2015 |
2014 |
|
2015 |
2014 |
Health Insurance, HR and e-services |
|
234.7 |
221.2 |
|
30.5 |
28.7 |
|
46.5 |
43.7 |
Healthcare professionals |
|
187.2 |
187.1 |
|
30.0 |
39.1 |
|
18.7 |
29.1 |
Cegelease |
|
4.2 |
3.9 |
|
(1.1) |
-6.1 |
|
2.0 |
(4.8) |
Activities not allocated |
|
426.2 |
412.2 |
|
48.1 |
51.6 |
|
78.5 |
78.0 |
Cegedim |
|
234.7 |
221.2 |
|
30.5 |
28.7 |
|
46.5 |
43.7 |
- Health Insurance, HR and e-services
The division's 2015 revenues came to €234.7
million, up 6.1% on a reported basis. The July 2015 acquisition of
Activus in the UK made a positive contribution of 1.7%. Currencies
had virtually no impact. Like-for-like revenues rose 4.4% over the
period.
The Health insurance, HR and e-services division
represented 55.1% of consolidated revenues from continuing
activities, compared with 53.7% over the same period a year
earlier.
EBITDA came to €46.5 million in 2015, an
increase of €2.8 million or 6.4%. The EBITDA margin was stable year
on year at 19.8%.
The increase in EBITDA was mainly attributable
to:
- Cegedim Insurance Solutions, which despite the negative
short-term impact of shifting part of its offering to a cloud
format, benefitted from a good showing by the business that manages
third-party payment flows. This division was also bolstered by the
acquisition of Activus last July.
- RNP, the specialist in traditional and digital displays for
pharmacy windows in France, which improved its profitability by
successfully navigating the transition to digital.
This improvement was offset by a temporary
decline in profitability at Cegedim SRH owing to the start of
operations with new BPO clients.
The division's 2015 revenues came to €187.2
million, up 0.1% on a reported basis. Currency effects made a
positive contribution of 4.9%. There was virtually no impact from
acquisitions or divestments. Like-for-like revenues fell 4.8% over
the period.
The Healthcare professionals division
represented 43.8% of consolidated revenues from continuing
activities, compared with 45.4% over the same period a year
earlier.
EBITDA came to €30.0 million in 2015, down €9.0
million or 23.1% compared with the same period in 2014. The EBITDA
margin came to 16.0%, vs. 20.9% 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:
- The UK, where it aims to have a cloud-based offering for UK
doctors by the end of the year;
- The US, where it plans to roll out a Revenue Cycle Management
(RCM) offering that will allow it to handle the process of
obtaining reimbursement from the various US insurance companies on
behalf of doctors. The RCM offering is a BPO-type offering, and so
requires human resources investments when a new client comes on
board.
These investments were partly offset by EBITDA
growth in the segments of computerization for nurses and physical
therapists in France, and at the medication database (Base Claude
Bernard).
The division's 2015 revenues came to €4.2
million, up 7.8% on a reported basis and like for like. There were
no currency effects and no acquisitions or divestments.
The Activities not allocated division
represented 1.0% of consolidated revenues from continuing
activities, compared with 0.9% over the same period a year
earlier.
EBITDA improved by €6.8 million to a profit of
€2.0 million, compared with a year-earlier loss of €4.8 million.
This brought the margin to 47.4% at end-September 2015.
The favorable EBITDA trend reflects the impact
of cost reduction efforts and the invoice of IT services to IMS
Health.
Financial resources
At December 31, 2015, Cegedim's total balance
sheet amounted to €864.3 million.
Acquisition goodwill represented €188.5 million
at December 31, 2015, compared with €175.4 million at end-2014.The
increase of €13.2 million is mainly attributable to the Activus
acquisition in July 2015 in the UK, and to the appreciation of
certain currencies against the euro - most significantly the
British Pound - for €1.9 million. Acquisition goodwill
represented 21.8% of the total balance sheet at December 31, 2015,
compared with 14.9% on December 31, 2014.
Cash and equivalents came to €231.3 million at
December 31, 2015, an increase of €187.3 million compared with
December 31, 2014.The increase was principally due to the reception
of the proceeds from the sale of CRM and strategic data to IMS
Health, minus the cash held by the divested activities, totaling
€339 million. This was partly offset by the redemption on the
market of the 6.75% 2020 bond for a total cost of €93.7 million,
and an increase in the working capital requirement.
Shareholders' equity increased by €11.3 million
to €228.1 million at December 31, 2015, compared with €216.8
million at December 31, 2014. The change was chiefly attributable
to a smaller translation difference due to the change in scope
related to the divestment of the CRM and strategic data business to
IMS Health, offset by an increase in the Group result.
Shareholders' equity represented 18.5% of the total balance sheet
at end-December 2014, compared with 26.4% at end-September
2015.
Net financial debt amounted to €167.6 million at
end-December 2015, down €336.5 million compared with a year
earlier. It represented 73.5% of Group shareholders' equity at
December 31, 2015.
Before the cost of net financial debt and taxes,
cash flow was €76.0 million at December 31, 2015 compared with
€130.3 million at December 31, 2014.
Period highlights
- Sale of the CRM and strategic data division to IMS
Health
On April 1, 2015, Cegedim announced the
completion of the sale of its CRM and strategic data division to
IMS Health. The definitive sale price came to €410.5 million and
was entirely paid in 2015.
- Redemption of the 7.0% 2015 bond
Cegedim redeemed the full €62.6 million
amount of the 7.0% 2015 bond remaining in circulation upon maturity
on July 27, 2015 (ISIN: FR0010925172).
- Cancellation of factoring agreements
In the first half of 2014, the Group cancelled
factoring agreements covering the divestment of client receivables,
with no possibility of recourse, for a total of €38.0 million.
These agreements amounted to €14.2 million at end-December
2014. The agreements dealt chiefly with companies sold to IMS
Health.
- Redemption of Cegedim Bonds
Between May 6, 2015, and December 31, 2015,
Cegedim redeemed on the market its 6.75% bond, maturing April 1,
2020, ISIN code XS0906984272, for a total principal amount of
€84,904,000. The company is in the process of cancelling these
bonds. As a result, a total principal amount of €340,096,000.00
remains in circulation.
- Acquisition in the UK of Activus
On July 20, 2015, Cegedim announced the acquisition of 100% of
Activus, one of the UK's leading suppliers of health and protection
insurance software. This deal gives Cegedim Health Insurance access
to new markets (UK, US, Middle East, APAC, Africa, etc.) and
strengthens its software offering for international clients.
Activus generated revenue of around €7 million in 2014.
This move is part of the Group's strategy of making bolt-on
acquisitions to expand its international positions. The deal was
financed with internal financing. It began contributing to
Cegedim's consolidated results starting from the acquisition
date.
- Favorable exchange rate movements
At end-December, movements in exchange rates were positive,
contributing €9.2 million to consolidated 2015 revenues from
continuing activities.
On September 24, 2015, the Paris Court of Appeal rejected
Cegedim's request and upheld the Competition Authority decision of
July 8, 2014. Because the fine was paid in full in September 2014,
this decision has no impact on Cegedim's accounts. Cegedim has
appealed this decision to the Court of Cassation.
- Acquisition of Nightingale's US assets
In early October 2015, Cegedim announced that
its US subsidiary, Pulse Systems, Inc., had acquired the US
healthcare management activities of Nightingale Informatix
Corporation.
Pulse will now be able to offer its clients
healthcare and EHR management products in client-server and cloud
formats.
Apart from the items cited above, 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
- Redemption of Cegedim Bonds
Since January 1, 2016, Cegedim redeemed on the
market its 6.75% bond, maturing April 1, 2020, ISIN code
XS0906984272, for a total principal amount of €24,682,000.00. The
company is canceling these bonds. As a result, a total principal
amount of €315,414,000.00 remains in circulation as of January 28,
2016.
In January 2016, the Group took out a new
five-year revolving credit facility (RCF) of €200 million. This
facility, combined with the proceeds of the deal with IMS Health,
will allow the Group to redeem the entire 6.75% 2020 bond issue
before June 30, 2016. Following the redemption, the pro forma
financial charges (excluding the early bond redemption premium)
will decrease by around nine-fold.
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.
Outlook
Owing to the Group transformation, rapid
development of BPO offerings and the ongoing transition of software
products from a perpetual license model to an SaaS/cloud model,
which requires significant investments in R&D, Cegedim expects
2016 to be a major transitional year, resulting in stable revenues
and EBITDA.
The Group does not anticipate any significant
acquisitions for 2016 and does not disclose profit projections or
estimates.
Financial calendar
The Group will hold a conference call today, March 23,
2016, 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 Results will
also be available on the website:
http://www.cegedim.com/finance/documentation/Pages/presentations.aspx |
Contact numbers: |
France: +33 1 70 77 09 44
US: +1 866 907 5928
UK and others: +44 (0)20 3367 9453 |
No access code required |
May 26, 2016
after market closing |
|
Q1 2016 Earnings |
July 26, 2016 after
market closing |
|
Q2 2016 Revenue |
September 15, 2016
after market closing |
|
2016 Half-year
Earnings |
September 16,
2016 at 10am CET |
|
Analyst meeting (SFAF
meeting) |
November 29,
2016 after market closing |
|
Q3 2016 Earnings |
Additional Information
The Audit Committee met on March 21, 2016. The
Board of Directors met on March 23, 2016, to review the 2015 first
nine months consolidated financial statements.
The 2016 Registration Document, will be
available next week, in French and in English, in the Finance
section of Cegedim's website:
- In French:
http://www.cegedim.fr/finance/documentation/Pages/rapports.aspx
- In
English:http://www.cegedim.com/finance/documentation/Pages/reports.aspx
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.
Appendices
- Balance sheet as of December 31, 2015
Assets
In thousands of euros |
12/31/2015 |
12/31/2014 (1) |
Goodwill on acquisition |
188 548 |
175 389 |
Development costs |
16 923 |
12 059 |
Other intangible fixed assets |
108 166 |
92
979 |
Intangible fixed assets |
125 089 |
105 038 |
Property |
459 |
389 |
Buildings |
5 021 |
3 637 |
Other tangible fixed assets |
16 574 |
16 006 |
Construction work in progress |
51 |
697 |
Tangible fixed assets |
22 107 |
20 727 |
Equity investments |
1 098 |
704 |
Loans |
3 146 |
2 684 |
Other long-term investments |
5 730 |
8
834 |
Long-term investments - excluding equity shares in equity method
companies |
9
973 |
12 222 |
Equity shares in equity method companies |
10 105 |
8 819 |
Government - Deferred tax |
28 722 |
11 372 |
Accounts receivable: Long-term portion |
26 544 |
25 373 |
Other receivables: Long-term portion |
1 132 |
1
812 |
Non-current assets |
412 219 |
360 751 |
Goods |
8 978 |
8 563 |
Advances and deposits received on orders |
218 |
77 |
Accounts receivable: Short-term portion |
161 923 |
140 299 |
Other receivables: Short-term portion |
32 209 |
21 931 |
Cash equivalents |
153 001 |
2 416 |
Cash |
78 298 |
41 619 |
Prepaid expenses |
16 666 |
12
708 |
Current assets |
451 293 |
227
614 |
Assets of activities held for sale |
768 |
584
857 |
Total assets |
864 280 |
1 173
222 |
- Restated following the reclassification of Cegelease contracts
as finance leases
Liabilities as of December 31, 2015
In thousands of euros |
12/31/2015 |
12/31/2014 (1) |
Share capital |
13 337 |
13
337 |
Group reserves |
139 287 |
339
513 |
Group exchange gains/losses |
8 469 |
63
577 |
Group earnings |
66 957 |
-199
724 |
Shareholders' equity, Group share |
228 051 |
216 703 |
Minority interests (reserves) |
39 |
118 |
Minority interests (earnings) |
41 |
24 |
Minority interests |
79 |
142 |
Shareholders' equity |
228 130 |
216
845 |
Long-term financial liabilities |
51 723 |
476
024 |
Long-term financial instruments |
3 877 |
8
094 |
Deferred tax liabilities |
6 731 |
7
620 |
Non-current provisions |
19 307 |
18
680 |
Other non-current liabilities |
14 376 |
14 017 |
Non-current liabilities |
96 014 |
524
435 |
Short-term financial liabilities |
347 213 |
72
192 |
Short-term financial instruments |
5 |
8 |
Accounts payable and related accounts |
54 470 |
47
166 |
Tax and social liabilities |
70 632 |
69
188 |
Provisions |
2 333 |
2
615 |
Other current liabilities |
61 657 |
60 124 |
Current liabilities |
536 311 |
251 293 |
Liabilities of activities held for sale |
3 823 |
180 649 |
Total Liabilities |
864 280 |
1 173 222 |
- Restated following the reclassification of Cegelease contracts
as finance leases
Income statement as of December 31, 2015
In thousands of euros |
12/31/2015 |
12/31/2014 (1) |
Revenue |
426
158 |
412 246 |
Other operating activities revenue |
|
|
Purchases used |
(39 787) |
(36 036) |
External expenses |
(109 142) |
(111 263) |
Taxes |
(8 856) |
(10 253) |
Payroll costs |
(187 021) |
(171 636) |
Allocations to and reversals of provisions |
(3 415) |
(4 523 |
Change in inventories of products in progress and finished
products |
|
0 |
Other operating income and expenses |
577 |
(563 |
EBITDA |
78
513 |
77 973 |
Depreciation expenses |
(30 438) |
(26
344 |
Operating income from recurring operations |
48
075 |
51 629 |
Depreciation of
goodwill |
|
0 |
Non-recurrent income and
expenses |
(6 673) |
(11 045) |
Other exceptional operating income and expenses |
(6 673) |
(11 045) |
Operating income |
41
402 |
40 585 |
Income from cash and cash equivalents |
1 369 |
426 |
Gross cost of financial debt |
(36 342) |
(47 909) |
Other financial income and expenses |
(5 809) |
(189 |
Cost of net financial debt |
(40 782) |
(47 672) |
Income taxes |
(2 383) |
(6 160) |
Deferred taxes |
19 996 |
4
567 |
Total taxes |
17
612 |
(1 593) |
Share of profit (loss) for the period of equity method
companies |
1 305 |
1 194 |
Profit (loss) for the period from continuing activities |
19
538 |
(7 486) |
Profit (loss) for the period discontinued activities |
47
460 |
(192 214) |
Consolidated profit (loss) for the period |
66 998 |
(199 700) |
Group share |
66
957 |
(199 724) |
Minority interests |
41 |
24 |
Average number of shares excluding treasury stock |
13 922 687 |
13 962
873 |
Current Earnings Per Share (in euros) |
1.6 |
(0.2) |
Earnings Per Share (in euros) |
4.8 |
(14.3) |
Dilutive instruments |
néant |
Néant |
Earning for recurring operation per share (in euros) |
4.8 |
(14.3) |
- Restated following the reclassification of Cegelease contracts
as finance leases
Consolidated cash flow statement as of December 31,
2015
In thousands of euros |
12/31/2015 |
12/31/2014 (1) |
Consolidated profit (loss) for the period |
66
998 |
(199 700) |
Share of earnings from equity method companies |
(1 348) |
(1 265) |
Depreciation and provisions |
31
546 |
267 750 |
Capital gains or losses on disposals |
(46 857) |
2
241 |
Cash flow after cost of net financial debt and taxes |
50
339 |
69 026 |
Cost of net financial debt |
40
120 |
48 854 |
Tax expenses |
(14 431) |
12
447 |
Operating cash flow before cost of net financial debt and
taxes |
76
028 |
130 327 |
Tax paid |
(12 127) |
(13 676) |
Change in working capital requirements for operations:
requirement |
(24 072) |
- |
Change in working capital requirements for operations: surplus |
- |
10 504 |
Cash flow generated from operating activities after tax paid and
change in working capital requirements (A) |
39 829 |
127
155 |
of which net cash flows from operating activities of discontinued
operations |
6 419 |
82 100 |
Acquisitions of intangible assets |
(51 229) |
(52 043) |
Acquisitions of tangible assets |
(10 231) |
(11 461) |
Acquisitions of long-term investments |
- |
(1 405) |
Disposals of tangible and intangible assets |
1 416 |
960 |
Disposals of long-term investments |
927 |
- |
Impact of changes in consolidation scope (1) |
336
347 |
(595) |
Dividends received from equity method companies |
81 |
941 |
Net cash flows generated by investment operations (B) |
277
311 |
(63 602) |
Of which net cash flows connected to investment operations of
discontinued operations |
(7 482) |
(28 985) |
Dividends paid to parent company shareholders |
- |
- |
Dividends paid to the minority interests of consolidated
companies |
(69) |
(74) |
Capital increase through cash contribution |
- |
(53) |
Loans issued |
- |
125 000 |
Loans repaid |
(147 563) |
(107 197) |
Interest paid on loans |
(42 681) |
(39 396) |
Other financial income and expenses paid or received |
(1 130) |
(4 310) |
Net cash flows generated by financing operations (C) |
(191 443) |
(26 030) |
Of which net cash flow related to financing operations of
discontinued operations |
(852) |
(1 307) |
Change In Cash without impact of change in foreign currency
exchange rates (A + B + C) |
125
698 |
37 522 |
Impact of changes in foreign currency exchange rates |
2 707 |
7 966 |
Change in cash |
128
405 |
45 488 |
Opening cash |
99
715 |
54 227 |
Closing cash |
228 120 |
99
714 |
- Restated following the reclassification of Cegelease contracts
as finance leases
- 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 according to
the following three categories, which implied accounting
corrections.
« Self-financed contracts »: The Cegedim
Group buys the equipment and leases it to the client.
Accounting treatment
These contracts are finance leases, according to
the IAS 17 accounting standard, since all the risks and rewards of
ownership of the financed assets are transferred. Paragraph § 37 of
IAS 17 states that the lease payment receivable is treated as
repayment of principal and as finance income to reward the finance
service.
- In the balance sheet
- Fixed assets are replaced by a receivable which accounts for
the present value of the lease payments.
- This receivable is classified as an operating cash flow item,
considering that the finance lease business is prolonging the usual
operations of the Healthcare professionals sector of the
Group.
- In the profit and loss statement
- The financial income which rewards the finance service is
accounted for over the lease duration. This income is recognized
based on the difference between the amortization charges (which are
neutralized as are the fixed assets in the balance sheet) and the
lease payments received (which are withdrawn from the consolidated
revenue) according to IAS 17.
- This financial income is classified as consolidated revenue,
considering that the finance lease business is part of the
operating business of the Group.
- Moreover, when the lease contract relates to an equipment
manufactured by a Cegedim Group entity, the consolidated revenue
includes the value of the outright sale of the leased equipment at
the normal selling price (IAS 17 § 43 (b)).
Correction implied on the 2014 financial
statements and 2015 revenue formerly published
- The balance sheet was already aligned with IAS 17.
- Only the P&L was corrected. The correction has no impact on
EBIT, but the aggregates composing EBIT varied: revenue was
corrected downward as well as operating expenses including
amortization charges (thus impacting EBITDA) compared to formerly
published figures.
« Lease contracts sold except process
management »: The Cegedim Group buys the equipment and leases
it, and then sells the lease agreement to a bank. The bank entitles
the Group to manage the process of collecting the lease payments on
its behalf.
Accounting treatment
According to the IAS 39 accounting standard
these contracts are treated as a financial asset transfer
qualifying for derecognition, since all the risks of ownership are
transferred to the bank institution.
- In the balance sheet
- The balance sheet is not impacted by these transactions since
the lease setup and the lease transfer occur simultaneously, and
also because the lease transfer qualifies for derecognition.
- In the profit and loss statement
- The financial income which rewards the finance service is
accounted for over the lease duration. This income is recognized
based on the difference between the lease payments paid to the bank
(withdrawn from the operating expenses) and the lease payments
received from the clients (withdrawn from the consolidated revenue)
according to IAS 17.
- This financial income is classified as consolidated revenue,
considering that the finance lease business is part of the
operating business of the Group.
- Moreover, when the lease contract relates to an equipment
manufactured by a Cegedim Group entity, the consolidated revenue
includes the value of the outright sale of the leased equipment at
the normal selling price (IAS 17 § 43 (b)).
Correction implied on the 2014 financial
statements and 2015 revenue formerly published
- This type of lease was reflected in consolidation similarly as
in individual financial statements. The correction consists of
applying the accounting treatments as described above.
- The correction has no impact on EBIT (nor on EBITDA), but the
aggregates composing EBIT (consolidated revenue and operating
expenses) vary.
« Contracts backed against a bank » :
Cegelease buys the equipment and sells it to a bank (selling
transaction). The bank then leases the equipment to Cegelease
who sub-leases this equipment to the client (lease and sub-lease
transactions).
Accounting treatment
According to the IAS 39 accounting standard
these contracts are treated as a financial asset transfer
not-qualifying for derecognition, since all the risks of ownership
remain with the Cegedim Group.
- In the balance sheet
- A receivable (asset) and a payable (debt) are recognized in the
balance sheet, and respectively account for the present value of
the lease payments to collect from the clients or to pay to the
bank. These receivable and payable are classified as operating cash
flow items, considering that the finance lease business is
prolonging the usual operations of the Healthcare professionals
sector of the Group.
- In the profit and loss statement
The flows of income or expenses relating to
these contracts are accounted for over the lease duration, and are
included in the operating income, considering that the finance
lease business is part of the operating business of the Group.
- Income flows are recognized as consolidated revenue and are
calculated based on the difference between the lease payments
collected and the variation of the asset receivable over the
year.
- Expense flows are recognized as operating expenses and are
calculated based on the difference between the lease payments to
pay to the bank and the variation of the debt payable over the
year.
- Moreover, when the lease contract relates to an equipment
manufactured by a Cegedim Group entity, the consolidated revenue
includes the value of the outright sale of the leased equipment at
the normal selling price (IAS 17 § 43 (b)).
Correction implied on the 2014 financial
statements and 2015 revenue formerly published
- This type of lease was reflected in consolidation similarly as
in individual financial statements. The correction consists of
applying the accounting treatments as described above.
- The correction has no impact on EBIT (nor on EBITDA), but the
aggregates composing EBIT (consolidated revenue and operating
expenses) vary.
Impacts on numbers as formerly published within
the 2014 consolidated financial statements and 2015 consolidated
revenue, are described below:
2014 Balance sheet
In € million |
|
12/31/2014 reported |
|
Cegelease Correction |
12/31/2014 restated |
Non-current assets |
|
349 793 |
|
10 958 |
360 751 |
Of which differed taxes |
|
10 625 |
|
747 |
11 672 |
Of which accounts receivables
portion due in more than one year |
|
15 162 |
|
10 211 |
25 373 |
Current assets |
|
214 579 |
|
13 035 |
227 615 |
Of which accounts receivables
portion due in less than one year |
|
127 264 |
|
13 035 |
127 264 |
Total assets |
|
1 149 229 |
|
23
993 |
1 173 222 |
In € million |
|
12/31/2014 reported |
|
Cegelease Correction |
12/31/2014 restated |
Shareholders' equity, group
share) |
|
217 921 |
|
-1 218 |
216 703 |
Non-current liabilities |
|
511 541 |
|
12 895 |
524 435 |
Of which other non-current
liabilities |
|
1 123 |
|
12 895 |
14 017 |
Current liabilities |
|
238 976 |
|
12 316 |
251 293 |
Of which other
liabilities |
|
47 808 |
|
12 316 |
60 124 |
Total liabilities |
|
1 149 229 |
|
23
993 |
1 173 222 |
2014 Profit and Loss Statement
In € million |
12/31/2014 reported |
Cegelease Correction |
12/31/2014 restated |
Revenue |
492
522 |
-80
276 |
412
246 |
Other operating
activities revenue |
- |
- |
- |
Purchases used |
-91 431 |
55 395 |
-36 036 |
External expenses |
-125 129 |
13 866 |
-111 263 |
Taxes |
-10 253 |
- |
-10 253 |
Payroll costs |
-171 636 |
- |
-171 636 |
Allocations to and
reversals of provisions |
-4 523 |
- |
-4 523 |
Change in inventories
of products in progress and finished products |
- |
- |
- |
Other operating income
and expenses |
-563 |
- |
-563 |
EBITDA |
88
989 |
-11 014 |
77
974 |
Depreciation
expenses |
-37 411 |
11 067 |
-26 344 |
Operating income from recurring operations |
51
577 |
53 |
51
630 |
Depreciation of goodwill |
- |
- |
- |
Non-recurrent income and expenses |
-11 045 |
- |
-11 045 |
Other exceptional
operating income and expenses |
-11
045 |
- |
-11
045 |
Operating income |
40
532 |
53 |
40
585 |
Income from cash and
cash equivalents |
426 |
- |
426 |
Gross cost of financial
debt |
-47 909 |
- |
-47 909 |
Other financial income
and expenses |
-189 |
- |
-189 |
Cost
of net financial debt |
-47
672 |
- |
-47
672 |
Income taxes |
-6 160 |
- |
-6 160 |
Deferred taxes |
4 587 |
-20 |
4 567 |
Total
taxes |
-1
573 |
-20 |
-1
593 |
Share of profit (loss)
for the period of equity method companies |
1 194 |
- |
1 194 |
Profit (loss) for the
period from continuing activities |
-7 518 |
33 |
-7 486 |
Profit (loss) for the
period discontinued activities |
-192 214 |
- |
-192 214 |
Consolidated profit
(loss) for the period |
-199 732 |
33 |
-199 700 |
Group
share |
-199
756 |
33 |
-199
723 |
Minority interests |
24 |
- |
24 |
2014 Cash Flows Statement
In € million |
12/31/2014 reported |
Cegelease Correction |
12/31/2014 restated |
Consolidated profit
(loss) for the period |
-199 733 |
33 |
-199 700 |
Share of earnings from
equity method companies |
-1 265 |
|
-1 265 |
Depreciation and
provisions |
278 817 |
-11 067 |
267 750 |
Capital gains or losses
on disposals |
2 241 |
|
2 241 |
Cash flow after cost
of net financial debt and taxes |
80 060 |
-11 034 |
69 026 |
Cost of net financial
debt |
48 854 |
|
48 854 |
Tax expenses |
12 427 |
20 |
12 447 |
Operating cash flow
before cost of net financial debt and taxes |
141 341 |
-11 034 |
130 327 |
Tax paid |
-13 676 |
|
-13 676 |
Change in working
capital requirements for operations: requirement |
|
|
0 |
Change in working
capital requirements for operations: surplus |
11 350 |
-846 |
10 504 |
Cash flow generated
from operating activities after tax paid and change in working
capital requirements (A) |
139 015 |
-11 861 |
127 154 |
of which net cash flows
from operating activities of discontinued operations |
-52 768 |
725 |
-52 043 |
Acquisitions of
intangible assets |
-22 596 |
11 135 |
-11 461 |
Acquisitions of
tangible assets |
-1 405 |
|
-1 405 |
Acquisitions of
long-term investments |
960 |
|
960 |
Disposals of tangible
and intangible assets |
0 |
|
0 |
Disposals of long-term
investments |
-595 |
|
-595 |
Impact of changes in
consolidation scope (1) |
941 |
|
941 |
Dividends received from
equity method companies |
-75 463 |
11 861 |
-63 602 |
Net cash flows
generated by investment operations (B) |
|
|
0 |
Of which net cash flows
connected to investment operations of discontinued operations |
-74 |
|
-74 |
Dividends paid to
parent company shareholders |
-53 |
|
-53 |
Dividends paid to the
minority interests of consolidated companies |
125 000 |
|
125 000 |
Capital increase
through cash contribution |
-107 197 |
|
-107 197 |
Loans issued |
-39 396 |
|
-39 396 |
Loans repaid |
-4 310 |
|
-4 310 |
Interest paid on
loans |
-26 030 |
0 |
-26 030 |
Other financial income
and expenses paid or received |
37 522 |
0 |
37 522 |
Net cash flows
generated by financing operations (C) |
7 966 |
|
7 966 |
Of which net cash flow
related to financing operations of discontinued operations |
45 488 |
0 |
45 488 |
Change In Cash
without impact of change in foreign currency exchange rates (A + B
+ C) |
54 227 |
|
54 227 |
Impact of
changes in foreign currency exchange rates |
99
714 |
|
99
714 |
2015 Revenue per division
In € million |
12.31.2014 reported (*) |
IFRS 5 impact from Cegedim Kadrige |
Cegelease Correction |
Division aggregation |
12.31.2015 restated |
|
|
(1) |
(2) |
(3) |
|
Health
Insurance H.R. & e-services |
236,5 |
-1,8 |
- |
- |
234,7 |
Healthcare Professionals |
152,1 |
- |
- |
35,1 |
187,2 |
Cegelease |
117,0 |
- |
-81.9 |
-35,1 |
- |
Activities not allocated |
4,2 |
- |
- |
- |
4,2 |
Group Cegedim |
509,9 |
-1,8 |
-81,9 |
0 |
426,2 |
(1): Subsequently to the financial press release
of the 2015 revenue (published on 28 January 2016), the Cegedim
Group decided to sell the Cegedim 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 82 M€
downward, compared to the initial press release dated 28 January
2016. (3): The consolidated revenue recognized for the finance
lease business amounts to 10 M€ and 25 M€ are added when the lease
contract relates to an equipment manufactured by a Cegedim Group
entity, ie: a total of 35 M€, sitting in the « Healthcare
professionals » division of the Group. 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.
2014 Revenue per division
In € million |
12.31.2014 reported (*) |
IFRS 5 impact from Cegedim Kadrige |
Cegelease Correction |
Division aggregation |
12.31.2015 restated |
Health Insurance H.R. &
e-services |
222,2 |
-1,0 |
|
|
221,2 |
Healthcare Professionals |
267,4 |
|
-80,3 |
|
187,1 |
Cegelease |
3,9 |
|
|
|
3,9 |
Activities not allocated |
493,5 |
-1,0 |
-80,3 |
0 |
412,2 |
(*) as indicated in the 2014 Registration Document filled with
the AMF on March 31, 2015 31.12.2014
2015 revenue growth
|
Reported |
Restated |
Health Insurance H.R. &
e-services |
+6,5% |
+6,1% |
Healthcare Professionals |
-0,1% |
+0,1% |
Cegelease |
+1,7% |
|
Activities not allocated |
+7,8% |
+7,8% |
Group Cegedim |
+3,3% |
+3,4% |
2015 organic growth
|
Reported |
Restated |
Health Insurance H.R. &
e-services |
+4,7% |
+4,4% |
Healthcare Professionals |
-6,1% |
-4,8% |
Cegelease |
+1,7% |
- |
Activities not allocated |
+7,8% |
+7,8% |
Group Cegedim |
+0,7% |
+0,2% |
Glossary
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 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 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 almost
3,500 people in 11 countries and generated revenue 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
UMIASTOWSKI Cegedim Chief investment Officer Investor Relations
Tel.: +33 (0)1 49 09 33 36 investor.relations@cegedim.fr |
Guillaume DE
CHAMISSO PRPA Agency Media Relations Tel: +33 (0)1 77 35
60 99 guillaume.dechamisso@prpa.fr |
|
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