2020 First Half Results Information Meeting of 28 ...€¦ · Focus: the Health and Social Care...

FINANCE

2020 First Half Results Information Meeting of 28 September 2020

H1 2020 RESULTS – 28 September 2020 2

Contents

1. Introduction Thierry CHAPUSOT

2. Focus: the Health and Social Care Facilities (HSCF) Solutions Division Thierry CHAPUSOT

3. H1 2020 results Jean-Yves SAMSON

4. Business developments & outlook Dominique PAUTRAT

5. Conclusion Thierry CHAPUSOT


Financial strength: A high level for recurrent revenue (66%) and the gross margin (68%). An excellent balance sheet structure (gross cash of €97.59m at 30/06/2020). A very diverse portfolio of health-related activities.

Optimised management: Staff costs: taking vacation days and other form of leave available to remain as operational

as possible during the reopening face. General expenses: cancellation of events, postponement of advertising campaigns,

reducing activities and travel. Inventory management: anticipating procurement needs.

Reinforcing IT procedures for ensuring business continuity: Secure remote access procedures. Implementing solutions for virtual meetings. Maintaining the level of support services for Pharmagest Group customers.

Major strengths mitigating the health crisis’ impact


Employees: “Citizens in the Service of Health and Well-Being” Teams fully focused during the lockdown on ensuring their vital mission supporting health professionals: PHARMAGEST: maintaining support to pharmacies, installing plexiglass barriers in pharmacies, an

offering for pharmacies for communicating with their patients.

MALTA, DICSIT and AXIGATE: Special Covid-19 modules for managing public hospital ICU beds, implementing solutions for remote medical consultations and maintaining social ties at senior homes.

An approach shared by all subsidiaries of the parent company, La Coopérative WELCOOP.

Since the reopening, the upturn in business has been accelerating: Commercial teams deployed in the field to support customers and patients and also

installers, technicians and instructors. For the remaining teams, applying the key principles of safety for a quick return to

worksites to rapidly resume a collective and collaborative working organisation.


Market positions in H1 improved by significant acquisitions, partially offsetting the impact of the crisis: Creation of MALTA BELGIUM: the Health and Social Care Facilities (HSCF) Solutions Division is

continuing to develop in Europe and expanding into Belgium by acquiring the activities for developing software solutions for nursing homes and specialised establishments of the Belgian company, CARE SOLUTIONS.

Acquisition of a majority stake in PANDALAB: the HSCF Solutions Division has strengthened its offering to provide a better coordination of the patient care pathway by means of this multi-functional platform integrating secure, confidential and instantaneous messaging capabilities between healthcare professionals.

Acquisition of ASCA INFORMATIQUE: by this operation, Pharmagest Group and ASCA INFORMATIQUE become the French leaders in digital labelling for pharmacies.

Maintaining business development targets


The share remains resilient in 2020 (02/01/2020 to 31/08/2020 – Source: Boursorama)

Pharmagest Group included in the new Euronext European Rising Tech label, recognising the best-performing and emblematic growth SMEs listed on Euronext in Amsterdam, Brussels, Lisbon and Paris. The Euronext committee identified and recognised in this way PHARMAGEST’s solid economic and stock market performances.

at 02/01/2020: share price of €61.20

at 31/08/2020: share price of €79.80

+ 30.4% CAC Mid&Small

Market Cap. at 31/08/2020:

€1.211bn


FOCUS: The Health and Social Care Facilities (HSCF) Solutions Division


Grégoire de ROTALIER joins Pharmagest Group’s Executive Management team In 2015, Grégoire de ROTALIER was appointed to the management of the Health and Social Care Facilities (HSCF) Solutions Division, in conjunction with Denis SUPPLISSON, head of the Pharmacy - Europe Solutions Division. In 2020, Grégoire de ROTALIER was: appointed Deputy Managing Director (Directeur Général Délégué) and Director, and joined the Finance and Personnel Management Committee of Pharmagest Group. As Deputy Managing Director, Grégoire de ROTALIER’s responsibilities cover notably: spearheading the ongoing development of his Division, and continuing to contribute to the Group’s cross corporate projects.


The HSCF Solutions Division Building a genuine ecosystem MALTA INFORMATIQUE: senior homes / ALFs for the elderly and persons with disabilities /

specialised care homes / day-care centres.

2016 - DICSIT INFORMATIQUE: hospital-at-home programmes / in-home nursing care / specialised Alzheimer's teams / local information and coordination centres for seniors.

2017 - AXIGATE: public health facilities (CHU / CHG / CHS / SSR).

2019 - ICT: health centres / health hubs / doctors / healthcare assistants.

2020 - MALTA BELGIUM: nursing homes in Belgium. PANDALAB: secure messaging and health sector apps.


The HSCF Solutions Division – Key figures

Workforce: 200 people including 150 in R&D in Customer Service.

Revenue: In 2019 = €19.51m or 12.3% of Group revenue. In H1 2020 = €12.49m (of which €2.89m from the latest acquisitions: ICT Group,

MALTA BELGIUM, PANDALAB) or 16.03% of Group revenue.

2019 operating profit: €7.36m or 37.72% in relation to revenue.

+ 3,000 establishments equipped: Market share 2,150 senior homes 28% 630 senior homes in Belgium 30% 400 in-home nursing care 20% 140 hospital-at-home programmes 43% 50 hospitals and university hospitals + 3 regional hospital groups 5% 170 multi-professional health centres 23% + 2,500 doctors and healthcare assistants

Instantaneous and secure messaging:

- 4,500 accounts - 100,000 messages / month


The HSCF Solutions Division – Strategic vision The recent Ségur healthcare system reforms adopted in France expanded the major priorities of the strategy defined in the “Ma santé 2022” law, highlighting the large-scale investment plan for public and private institutions and assisted living facilities for dependent seniors (EHPAD).

The major role of the HSCF Solutions Division in: improving the quality of patient

care, from the home to residential health and social care facilities.

and building a patient care pathway spanning the office-based private practice and hospital spectrum.


H1 2020 results Jean-Yves SAMSON


H1 2020 financial highlights

12.15

14.59 13.50

2018 2019 2020

Net profit (€m)

-7.50%

+1.37%

11.41

13.70 12.63

2018 2019 2020

Net profit attributable to equity holders of the parent

(€m)

-7.80% 0.76

0.91 0.84

2018 2019 2020

Basic earnings per share (In €)

-8%

17.37 18.65 20.22

2018 2019 2020

Operating profit (€m)

+8.41%

12.15 13.19 13.50

2018 2019 2020

Net profit from continuing operations (€m)

+2.35%

72.15 76.88 77.93

2018 2019 2020

Revenue (€m)

+1.37%


H1 2020 revenue + 1.37% to €77.93m

IN €M 2020 2019 Change

Q1 39.00 38.15 + 2.23%

Q2 38.93 38.73 + 0.52%

TOTAL 77.93 76.88 + 1.37%*

The strength of the Group’s business model helped mitigate the shock of the health crisis and achieve growth in revenue in H1 2020 of 1.37% to €77.93m. Revenue trends varying by Division.

Positive contributions from acquisitions: SVEMU, I-MEDS, ICT Group, MALTA BELGIUM, PANDALAB to Group growth: +4.44% in H1 2020. And contributing significantly to the HSCF Solutions Division, with revenue up 37%.

The impact of the epidemic on H1 2020 revenue is estimated at €6m. Excluding Covid-19, revenue in H1 2020 would have been up 9.20% in relation to the same period in 2019.

* Like-for-like (excluding the disposal of INTECUM and the acquisitions of ICT Group, SVEMU, I-MEDS, CARE SOLUTIONS/ MALTA BELGIUM and PANDALAB), revenue contracted 2.48%.


H1 2020 income statement highlights

IN €m H1 2020 H1 2019 Change

REVENUE 77.93 76.88 + 1.37 %

OPERATING PROFIT 20.22 18.65 + 8.4 %

NET PROFIT FROM CONTINUING OPERATIONS 13.50 13.18 + 2.3 %

NET PROFIT 13.50 14.59 - 7.5 %


Income statement analysis: Operating Profit =>Net Profit from Continuing Operations

One-off impact of medium-term investments: AXA unit-linked funds Value at 12/2019: €26.44m. Value at 06/2020: €25.53m. Value at 09/2020: €25.71m. AXA announces flat 2019 returns at 12/2020 or an adjusted Net Profit from Continuing Operations of +9.2%.

A base effect: INTECUM sale to PHARMATHEK in H1 2019 (€1.40m)

or a Net Profit adjusted to eliminate the base effect of +9.2%.

IN €m H1 2020 Change

OPERATING PROFIT 20.22 + 8.4 %

NET PROFIT FROM CONTINUING OPERATIONS 13.50 + 2.3 %

NET PROFIT 13.50 - 7.5 %


H1 2020 highlights by Division

IN €M Revenue Current

operating income (EBIT)

Current operating

margin (%)

PHARMACY EUROPE 56.71 13.29 23.43%

HEALTH AND SOCIAL CARE FACILITIES 12.49 4.33 34.65%

OTHERS (E-HEALTH & FINTECH) 8.72 3.12 35.73%

TOTAL 77.93 20.74 26.61%


Balance sheet (€m) June 2020 Dec. 2019 June 2020 Dec. 2019

NON-CURRENT ASSETS 178.68 160.53 SHAREHOLDERS' EQUITY 130.38 131.91

R&D 27.88 24.86 Attributable to the Parent 126.42 127.61

Goodwill 65.51 49.79

Non-current financial assets 46.44 50.72 NON-CURRENT LIABILITIES 69.00 54.04

Other non-current assets 38.84 35.16 Long-term debt 58.71 47.48

Other non-current liabilities 10.29 6.56

CURRENT ASSETS 116.20 97.57

Trade receivables 33.01 34.57 CURRENT LIABILITIES 95.50 72.15

Other current assets 18.57 12.40 Short-term debt 22.00 10.00

Cash & cash equivalents 35.19 21.37 Trade payables 11.73 13.36

Available-for-sale securities* 29.43 29.24 Other current liabilities 61.77 48.79

TOTAL 294.88 258.10 TOTAL 294.88 258.10

* and other financial assets


Cash flow highlights (€m)

Gross cash at 31/12/2019 (**) 97.66

Cash flow 18.80

Change in WCR 9.85

Operating investments (*) - 10.48

Financial investments - 19.81

Dividends - 14.50

Borrowings 14.78

Other financing activities 1.29

Gross cash at 30/06/2020 (**) 97.59

(*) Of which €3,897,000 for R&D (**) Of which available-for-sale securities (€29.43m) + financial assets

non-current excluding security interests (€43.03m) = €72.46m


Capital expenditures for R&D

IN € THOUSANDS 2020 (€6m) 2019 (€6m)

PHARMACY EUROPE 1,441 1,588

HEALTH AND SOCIAL CARE FACILITIES 903 742

E-HEALTH SOLUTIONS 1,189 1,323

FINTECH 364 396

TOTAL 3,897 4,048


Pharmacy - Europe Solutions Division - H1 2020

As of June, for the Pharmacy France Business Unit: Strong growth in orders. The delay in deliveries made up (€5m). The recovery in Rent Pharm renewals.

A difficult resumption in activities for the Pharmacy Belux and Pharmacy Italy business units that were more severely impacted by the lockdown measures.

Like-for-like (excluding the disposal of INTECUM and the integration of SVEMU), a decline in H1 2020 revenue of 3.98%.

2020 revenue: -4.11% to €56.71m (72.7% of Group revenue)

2020 operating profit: €13.29m 23.43% / revenue vs. 21.87%

A significant improvement in profitability driven mainly by cost controls (staff and general expenses) during the lockdown period.

A favourable product mix: a resilient business model.

This Division is continuing to focus on: R&D investments in France, Belgium and Italy. Synergies between Divisions (Digital

Healthcare Platform). Continuing international development.


Health and Social Care Facilities Solutions Division - H1 2020

“Significant” impact of acquisitions (ICT Group, MALTA BELGIUM, PANDALAB): €2.89m out of the Division’s total revenue.

Good momentum with a marginal impact by the lockdown measures, with the exception of AXIGATE’s activities in the hospital sector.

Like-for-like, growth in revenue in H1 2020 of 5.34%.

2020 revenue: +37% to €12.49m (16% of Group revenue)


The decline in the operating margin reflecting the recent acquisitions whose integration according to the Group format is in progress.

The other Business Units have maintained their level of profitability.

This Division has continued to develop its R&D with innovative projects in coordination with other Divisions of the Group in connection with the Digital Healthcare Platform.


e-Health Solutions & Fintech Divisions - H1 2020

Significant contribution of I-MEDS (integrated on 1 January) to revenue growth: €154,000 Like-for-like, growth of 0.54% of Division revenue.

Growth in the Telemedicine and Medication Compliance but slowdown in Digital Communications notably due to the postponement of certain projects by pharmaceutical companies.

2020 revenue: +2.5% to €8.04m

( 10.3% of Group revenue)


The profitability of the Divisions increased significantly.

A favourable product mix: Recurrent e-Connect and Telemedicine projects combined with the containment of general expenses.

These Divisions continue to invest in R&D in order to support their goals for national and international development.

Activity significantly reduced during the lockdown period (mainly the office automation and medical equipment sectors impacted).

A moderate recovery in terms of financing.

Growth in the portfolio of agreements confirmed with new supplier-partners.

2020 revenue: -11.32% to €0.68m

( 0.9% of Group revenue)

e-Health Solutions Fintech Global performance


H2 2020 outlook Dominique PAUTRAT


Fulfilment of deliveries delayed during the lockdown period. Marketing and deployment of the "Serialisation" or "FMD“ management modules in

pharmacies starting in September.

Pharmacy France Business Unit

Pharmacy - Europe Solutions Division H2 2020 outlook

Launch of new products: EASYQ: pharmacy waiting line management (solutions developed by SVEMU). SOPHIA UP: mobile application for real-time reporting. MIATERAPIA: patient retrieval of electronic prescriptions for transmission to their

pharmacists. Exclusive agreement with DMO: equipping 67 parapharmacies with the SOPHIA pharmacy

management suite - DIFARM (warehouse management) – PHARE (hospital group management).

Finalisation of the SAP RETAIL project for the MULTIPHARMA network (260 connected pharmacies).

Pharmacy Belux Business Unit

Pharmacy Italy Business Unit


Pharmacy - Europe Solutions Division: the new leader of digital pharmacy labelling Pharmagest Group and ASCA INFORMATIQUE today equip nearly 2,000 pharmacies in France

and Europe.

A technological and functional advance: a complete and fully configurable range => collaboration between R&D teams to ensure a better integration in the pharmacy management suite and all pharmacy applications.

More than

5,000,000 labels installed

Configurations for 400 to 25,000 labels

(average of 2,500 labels per pharmacy in France)

Optimisation of resources, assigning the commercial and operational teams to fulfil deliveries delayed as a result of the lockdown.

A strong uptick in orders since June with record signatures in French overseas departments.

A complementary business of the subsidiary SEAA, a reference in securing points of sale (store entrance anti-theft security, video surveillance, customer traffic counters, metal detectors, alarms).


The Armor Regional Hospital Group After laying the foundations for a territorial information system in November 2019, and launching the pilot service in January 2020, the Armor regional hospital network rolled out the AXIGATE EMR system at the territory’s different establishments. Its functional scope will be extended in the coming months with the deployment of the medication pathway, the programme for medicalization of information systems, the obstetric file and emergency services.

CH Gisors and CH Andelys of the Eure-Seine Regional Hospital Group the Gisors hospital (464 hospital beds) and the Saint Jacques hospital in Andelys (230 beds for medium and long-term stays) of the Eure-Seine regional hospital network selected the AXIGATE EMR to equip a total of 7 hospitals of the department around the support structure of Evreux.

Arles Hospital Centre

AXIGATE was selected by the Arles hospital (650 hospital beds) for the digitization of its care processes. This initiative, which follows that of the Marseille Public University Hospital (AP-HM) and the Aubagne hospital centre, is part of the process for implementing a regional EMR system within the Hôpitaux de Provence regional hospital network.

HSCF Solutions Division signature by AXIGATE of 3 new hospital


HSCF Solutions Division launch of TITAN WEB A common multi-lingual and multi-establishment technical platform, able

to be adapted in all countries.

Pilots: In France: COLISEE (Europe's fourth-largest provider with 238 specialised

facilities serving more than 24,000 residents).

In Belgium: ARMONEA (subsidiary of COLISEE, 2nd largest player in the country with more than 80 establishments).

Outlook in Italy and Spain.

Quality certifications obtained: ISO 9001, ISO 13485 - Medical Devices - Digital Hospital Quality

enabling MALTA INFORMATIQUE customers to qualify for financing from the French Ministry of Health “HOPEN”).


DICSIT INFORMATIQUE: Commercial transformation for hospital-at-home customers of all PANDALAB messaging

services.

PANDALAB: Introduction of an offering for pharmacies, doctors and private practice nurses.

AXIGATE:

Continuing technological and functional investments. ICT:

Launch of a Teleconsultation payment module. Strengthening of management.

HSCF Solutions Division - H2 2020 outlook


TELEMEDICINE - PATIENT MONITORING eNephro

→ The e-Nephro system available free of charge at start of the health crisis (Lille University Hospital). → Delivery of the pre-transplant module.

TPE PILOT → Marketing of the new MOUV PILOT module for the management of the Adapted Physical

Education starting in September for Sports and Health Centres. → Deployment on several healthcare networks in the Grand Est and Ile-de-France regions (AVRS,

DIABLIN, ROMDES notably).

PREVENTION - VULNERABLE PERSONS NOVIACARE

→ Lessors: strengthening the partnership with BOUYGUES and signature of the first residential housing unit complex (44) with LOGIREP (subsidiary of POLYLOGIS).

→ Launch of a new application for caregivers and caregiver communities. → Launch of a new multi-media campaign targeting the general public.

CARELIB → Development of an offering for senior homes.

DIGITAL COMMUNICATIONS → Commercial initiatives to reinforce business growth. → Consolidation of predictive and relational marketing offerings (SMS push notifications and patient

experience).

e-Health Solutions Division - H2 2020 outlook


Developing the leasing activity Creation of financing captives under a white label platform.

Developing a software development offering in the form of licences:

First projects in the finalisation phase (early H2 2020). Financial targets: banks and finance companies. Internationalisation in the United Kingdom delayed as a result of Covid-19.

Fintech Division - H2 2020 outlook


Conclusion Thierry CHAPUSOT


2020 outlook

Developing solutions for the challenges of tomorrow more than ever promising market opportunities for the Group.

Strong recovery in business since early June. Significant rise in orders since June, with offerings specifically designed to

address the challenges of the current crisis (PACK COMMUNICANT, OFFITELECONSULT, PHARMAPROTECT…).

The Group maintains its medium-term targets, particular for earnings, based on a favourable business mix in the first half contributing to better margins.


2020 outlook

The current health crisis has highlighted the need for the digital transformation and computerisation of the healthcare system. Pharmagest Group has developed the most effective solutions in the market to support all activities of the healthcare universe: pharmacies, senior homes, home-based nursing services, hospital-at-home programmes and also office-based private practitioners. With its Digital Healthcare Platform in the process of being deployed within the Marseille Public University Hospital network, Pharmagest Group also proposes a solution that is already operational, capable of structuring the healthcare offering and coordinating its delivery across the office-based private practice and hospital pathways.

"MORE TECHNOLOGY FOR MORE HUMANITY"


New engagement for the Pharmagest Group’s healthcare platform Pharmagest Group has announced the implementation of a new experiment, the “Interoperability Hub” in the Grand Est Region in partnership with the PULSY public interest group (GIP) and the Nancy Regional and University Hospital (CHRU). The technological solutions developed through this programme are destined to facilitate the flow of information among the different business line information systems of healthcare professionals in the private practice sector, healthcare establishments and regional coordinators.

GIP PULSY (a regional public interest group supporting the development of e-Health)

+114,000 stakeholders listed in the Grand Est region directory

+75,000 patients received care +304,000 secured exchanges per month

Nancy Regional and University Hospital (CHRU) France's 8rd largest regional

teaching hospital 9,000 professionals 700,000 patients per year 480,000 consultations 136,000 hospitalisations 80,000 emergency room visits


The news channel of La Coopérative WELCOOP A monthly broadcast.

Interviews (pharmacists, patients, doctors), news stories, sharing knowledge and experience.

Launch of the WELCOOP Channel

Special guests to address current developments and also to promote the key role of pharmacists within the healthcare ecosystem.

First special guest, Professor Karine LACOMBE. https://www.youtube.com/watch?v=uGsy0IZsOqQ

https://www.youtube.com/watch?v=uGsy0IZsOqQ

https://www.youtube.com/watch?v=uGsy0IZsOqQ


Calendar / Contacts


Financial Calendar

Financial publications: • 18 November 2020: Publication of Q3 2020 sales • 4 February 2021: Publication of 2020 annual revenue Investor events: • 19 & 20 October 2020: Midcap Events Paris


Managing Director Dominique PAUTRAT [email protected] Shareholder and Investor Relations Jean-Yves SAMSON Tel.: +33 (0)3 83 15 90 67 - [email protected] Press Relations FIN’EXTENSO Isabelle APRILE Tel.: +33 (0)1 39 97 61 22 - [email protected]

Contacts

For all the latest news go to www.pharmagest.com

Follow Pharmagest on Twitter: @Pharmagest, LinkedIn and Facebook

http://www.pharmagest.com/

https://www.linkedin.com/company/pharmagest-interactive/

https://www.facebook.com/Pharmagest/?ref=br_rs

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2020 First Half Results Information Meeting of 28 ...€¦ · Focus: the Health and Social Care...

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