2017 First Half Results - Pharmagest€¦ · H1 2017 key figures H1 2017 Results 9.2956.19 10.45 11.05 2015 2016 2017 Net profit (€m) + 5.73 % 9.26 10.01 10.55 2015 2016 2017 Net

1 25 September 2017 2017 HALF-YEAR RESULTS

2017

First Half

Results

Information meeting of

25 September 2017


1. Introduction Thierry Chapusot

2. 2017 half-year results Jean-Yves Samson

3. Business developments & outlook Dominique Pautrat

4. Conclusion Thierry Chapusot

Table of contents


The New French Presidency has identified three crucial issues

facing the healthcare system:

1. Prevention

2. Access to healthcare

3. Financial sustainability

Future healthcare system reforms: very positive for

PHARMAGEST Group


The French government, notably through the Minister of Solidarity

and Health, has confirmed this new momentum:

Succeeding the shift to prevention.

Tomorrow, we will invest more in

prevention than in healing!

The challenge is maintaining proximity with patients while offering

graduated levels of care based on different levels of intervention.


PHARMAGEST Group


PHARMAGEST Group's vision is in this way fully aligned with

these new governmental directives.

PHARMAGEST Group, at the forefront of these issues for more than 30 years,

has developed with a strategy built upon two pillars:

Taking better care of ourselves

Prevention and predictive systems

A twofold ambition for PHARMAGEST:

• improving patient health

• and making our healthcare system more efficient


PHARMAGEST Group


Market developments

In addition, in July 2017

Signature of Amendment #11 to the pharmaceutical industry agreement

Nicolas REVEL, Managing Director of the French National Health Insurance Fund (CNAMTS)

and Gilles BONNEFOND, Chairman of the French Union of Retail Pharmacies (USPO)

Major new developments in the

area of the remuneration of

pharmacists confirm their role as

healthcare coordinators in line

with practices prevailing in other

European democracies


Financial results

as at 30 June 2017

H1 2017 Results

8 25 September 2017 2017 HALF-YEAR RESULTS 8

H1 2017 key figures

H1 2017 Results

9.29

10.45

11.05

2015 2016 2017

Net profit (€m)

+ 5.73 %

9.26

10.01 10.55

2015 2016 2017

Net Profit attributable to the parent (€m)

+ 5.41 %

0.62

0.67 0.70

2015 2016 2017

Basic earnings per share (€)

+ 5.41 %

56.19

63.53

72.03

2015 2016 2017

Revenue (€m)

+ 13.38 %


(€m) 2017 2016 Change

Q1 35.42 30.46 + 16.30 %

Q2 36.60 33.07 + 10.69 %

Total H1 72.03 63.53 + 13.38 %

H1 2017 revenue

H1 2017 Results


Financial results

Profit and loss statement

(€m) H1 2017 H1 2016 Change

REVENUE 72.03 63.53 + 13.38 %

OPERATING PROFIT 16.60 15.61 + 6.35 %

PROFIT FOR THE PERIOD 11.05 10.45 + 5.73 %

NET PROFIT ATTRIBUTABLE TO

EQUITY HOLDERS OF THE PARENT 10.55 10.01 + 5.41 %

BASIC EARNINGS PER SHARE

(in €) 0.70 0.67 + 5.41 %

H1 2017 Results


(€m) ASSETS Jun. 2017 Dec. 2016 (€m) EQUITY AND LIABILITIES Jun. 2017 Dec. 2016

NON-CURRENT ASSETS 73.36 66.75 SHAREHOLDERS' EQUITY 103.35 103.65

R&D 11.83 10.07 Attributable to the Parent 101.39 101.96

Goodwill 31.78 30.45

Non-current financial assets 18.60 15.04 NON-CURRENT LIABILITIES 10.58 8.18

Other non-current assets 11.15 11.19 Long-term debt 5.10 3.44

Other non-current liabilities 5.48 4.74

CURRENT ASSETS 90.23 83.94

Trade receivables 20.63 20.25 CURRENT LIABILITIES 49.65 38.87

Other current assets 8.12 8.53 Short-term debt 10.61 6.96

Cash & cash equivalents 33.62 27.57 Trade payables 8.26 8.20

Available-for-sale securities* 27.86 27.59 Other current liabilities 30.78 23.71

TOTAL 163.58 150.70 TOTAL 163.58 150.70

* and other financial assets

Financial results

Balance sheet

H1 2017 Results


(€m)

Net cash at 31/12/2016 (**) 63.72

Cash flow + 13.19

Change in WCR + 7.17

Operating investments (*) - 3.34

Financial investments - 1.05

Dividends - 10.04

Borrowings - 0.32

Other financing activities + 0.30

Net cash at 30/06/2017 (**) 69.63

Cash flow highlights

12

H1 2017 Results

(*) Of which €2,577,000 for R&D

(**) Of which available-for-sale securities (€46.10m)


H1 2017 business Division

highlights

H1 2017 Results


Pharmacy France

• Confirmation of the success of "new products" launched at the end of

2016.

H1 2017 revenue: + 3.45% to €51.28m

(71.2% of total Group revenue)

Solutions for Pharmacy Division Europe - H1 2017

• 80 pharmacies are currently equipped with

OFFITOUCH, the digital retail display, which

contributed 1% in revenue in the first half and offers

considerable potential based on the enthusiasm

generated by this new sales tool.


Solutions for Pharmacy Division Europe - H1 2017

01/2017: signature of the contract for the provision of equipment with

MULTIPHARMA cooperative pharmaceutical network - 300 PHARMACIES

• Contract with a 5-year term.

• Supply of equipment and maintenance for member pharmacies.

"New" pharmacies will be automatically integrated into the project.

• Deployment of the SABCO ULTIMATE software standard and development of

modules specifically adapted to their business (SAP interface, loyalty card,

pricing management…).

• After the preparatory phase for analysis and integration, launch in October 2017

for the training and deployment phase in pharmacies.

04/2017: signature of a contract to supply equipment (software and

hardware) with the COOP pharmacy network - 40 PHARMACIES

Excellent momentum for business development in Belgium


Retirement Homes Solutions for health and medical-social facilities Division -

H1 2017

H1 2017 revenue: + 26.07% to €6.29m

(8.73% of total Group revenue)

• This revenue growth reflects notably DICSIT INFORMATIQUE's

contribution for the entire 2017 first half (€993,000).

• On a like-for-like-basis, this Division continues to offer good visibility

with recurring revenue up 28.6%.

• In July, PHARMAGEST Group announced the acquisition of AXIGATE

which was integrated into this Division.


• An offering addressing the needs of

regional hospital networks, a market

undergoing major transformations.

• Providing complete and innovative

functional coverage

• Electronic Medical Records (EMR)

• Through a Web and Mobile-based

technology platform Hosting

Mobility (tablet, smartphone)

Application Generator (AXIGATE

STUDIO)

AXIGATE is developing a 100% Cloud-based solution for patient

care management for hospitals

Solutions for health and medical-social facilities Division -

H1 2017


AXIGATE: opportunities

• Market share gains An obsolete competing offering (technology and architecture)

Calls for tender: recent and in progress

• Proposing a Comprehensive Healthcare Offering Hospitals, regional hospital groups, elderly residential care facilities,

Hospital at Home programmes, private practice physicians

For all healthcare professions (physicians, pharmacies, caregivers)

Health Data (Big Data)

• Develop the French public-sector hospital purchasing group

channel (UniHA) AXIGATE is the UniHA contractor (EMR segment)

• Marketing the solution in other countries Patient care process identical in all countries

Few 100% web solutions available on the international market

Solutions for health and medical-social facilities Division -

H1 2017


Pharmaceutical

companies Solutions for e-Health Division - H1 2017

H1 2017 revenue: + 12.92% to €5.32m

(7.39 % of total Group revenue)

• This included the positive impact in H1 2017 (€435,000) of the Group's

most recent acquisitions: SAILENDRA (on 1 January) and CAREMEDS /

MULTIMEDS (on 1 February).

• With the integration of CAREMEDS/MULTIMEDS, the Solutions for e-

Health Division completes its patient medication compliance offering with a

manual dispensing solution.

• The organization of this Division is evolving and highlights PHARMAGEST

Group's commitment to facilitating interconnections among healthcare

professionals. The Division is forming up a single Business Development

Department to promote its offering and has created a Compliance

Programme Department.


DIGITAL

COMMUNICATION

FOR PHARMACIES

TELEMEDECINE

Remote monitoring PATIENT

COMPLIANCE

FRAIL INDIVIDUALS

• 135,000 patients are or have been monitored on our platform with our

applications.

• 2 accreditations as a Personal Medical Data Hosting Services Provider;

+ 72 active weeks of

use of the DO-Pill

within the framework

of projects

98% compliance rate

with DO-Pill

4,000 pharmacies

using the compliance

monitoring software

(LSO)

300,000 downloads of

the Ma Pharmacie

Mobile® application

80 pharmaceutical

company partnerships 850 patients

monitored in

connection with the e-

Nephro study between

now and 2019

50 residential

facilities equipped by

the end of 2017

3 Fimbacte 2016

Gold Awards

Solutions for e-Health Division - H1 2017

Our strategy in selected figures


Fintech Division - H1 2017

H1 2017 revenue: + 114.69% to €9.13m

(12.68 % of total Group revenue)

• The Division has confirmed the trend of growing business volume and

an improved filed acceptance rate.

• The integration of a new lender also highlights the recognition and

performance of the online platform in the market for equipment financing

solutions and services.

• Diversification of resources through integration with the lenders make it

possible to finance other assets (savings of energy / connection

resources…)


H1 2017 Results

Outlook


Our strategy, our goals

Our strategic vision

Creating a "Patient-Centred" technology platform

European-wide

multi-Healthcare Professionals

With two major goals

Improving coordination of across patient care pathways

and increasing efficiency of the healthcare system


A unique ecosystem

Active stakeholders contributing to the modernization of

a "patient-centred" healthcare system in France and

Europe

Pharmaceuticals

Hospital

Nurse

Pharmacist

Caregivers

General

practitioners

Patient

associations

Specialist


A unique ecosystem

The construction of our "patient-centred" platform and

ecosystem is accelerating

Physician

Pharmacy

Hospitals and Healthcare

Establishments

Hospital

at Home

Programmes

Elderly

residential care facilities

At home


Solutions for Pharmacy

Division - Europe


Our integrated software solution for pharmacies fully aligned with

the pharmacists' new missions

Amendment #11 to the pharmaceutical industry agreement

Outlook - Solutions for Pharmacy Division – Europe

Medication assessments

€60 / patient eligible in 1st year

(then €30 or €20

thereafter)

In-pharmacy patient interviews

Change in the

sequencing of

remuneration

€50 in the 1st year

for three interviews

(then €30 for 2)

MSS (Secure health

data messaging)

& LAD

Compensation

in the amount of €200

per year

Updating health insurance

cards

250 / card reader

(within the limit of

4), €689 / 1

terminal , €939 / 1

terminal + 1 reader

, €1,189 / 1

terminal+ 2 readers

Medication dispensing application

benefits

anticipated with the

introduction of the

"rules of good

practice"

Healthcare teams

Participating in a

team of primary

health care

providers paid

€280 in 2018, €420

starting in 2019

All tools implemented as

part of the all-in-one

pharmacy software

package (MSSanté, LSO,

marketing of the

Caremeds/Multimeds

dispensing offering, e-

Health solutions such as

DO-Pill and Ma Pharmacie

Mobile) largely address the

issues raised by this

industry development.

These innovative tools

are now operational for

pharmacies.


Consolidation of the relationship with the pharmacist

• Action plans: "Digital medication compliance services" Adding to the catalogue the consulting offering of Digital Diagnostic

Solutions for Compliance will strengthen the patient/pharmacist

relationship within the dispensing and care pathways.

• New features of the comprehensive pharmacy software package

A genuine authentication system, My Personal Account, will provide the

pharmacists access to all their PHARMAGEST applications from a

single logon page.



• With the signature of the MULTIPHARMA and COOP contracts,

PHARMAGEST Group's customer base in Belgium grew 65% in 2017

with 850 sites to be equipped soon with Group solutions for a market

share of 4,900 pharmacies, or a market share of more than 17%.

PHARMAGEST Group becomes the third-largest specialized

independent software vendor for pharmacies.

• The industry-specific solutions for pharmacies as well as services for

pharmacy networks representing 2,000 pharmacies in Belgium reaffirm

the differentiation of our solutions in the Belgian market and set the

stage for a promising outlook in H2 2017 and 2018.



Solutions for health

and social care facilities

Division


• The Division which develops and distributes software solutions for

Health and Social Care Facilities expanded its scope with the addition of

more than 120 employees and an installed base of 2,500

establishments: with more than 1,700 elderly residential care facilities,

130 Hospital at Home programmes, 400 home-based nursing

programmes and 50 hospitals equipped.

• Based on the complementary fit of the offerings, it is now possible to

propose a unique and exclusive solution covering both health and

social care facilities and non-hospital care within newly formed

regional hospital networks and considerably enhancing value in

use. This new multi-pathway solution will also be of great interest to

health and social care facilities already equipped with our solutions, thus

offering a point-in-time snapshot of patient user events and care.

• The Division has integrated strong new synergies in the area of

product engineering, marketing and communications and the network of

commercial coverage further strengthening the effectiveness and

relevance in the market of our offerings.

Outlook - Solutions for health and social care facilities

Division


Solutions for e-Health

Division


Improving patient care pathways in Europe

= A modular approach to health

Outlook - Solutions for e-Health Division

Patient monitoring is today a major public health priority.

Our objective:

• improving care pathways of Europeans

• supporting a responsible and sustainable economic model.

We have already created the tools that will be integrated within the care

pathways of European patients:

• both at the organizational

• and technological levels.

DIGITAL

COMMUNICATION

FOR PHARMACIES

TELEMEDECINE

Remote monitoring PATIENT

COMPLIANCE FRAIL INDIVIDUALS



Patient Medication Compliance: a European-line strategic issue

Creation of a Compliance Programme Department

• To support the development of

PHARMAGEST Group's Compliance

range, and notably the medication

adherence monitoring application, the

dispensing application based on

different solutions…

Today these solutions are used by 1,600 Care Homes and 26,000

patients in Europe. To support this Division's development goals,

creation of a Compliance business development team to

supplement the network of distributors in Europe.

• To ensure the deployment of PHARMAGEST Group's "Patient-Centred"

approach;

• To strengthen the alignment of the different offerings for both elderly care

facilities and the non-hospital market.


The markets for medication dispensing solutions in France


Non-Hospital/Private Practice market

• 950 million prescriptions/year

• 90 million “complex” prescriptions

• Of which 1.6 million dependent elderly

persons at home

• Of which 82% request a secure

dispensing device, connected or not

(IFOP survey, 2014)

Elderly Care Facility market

• 7,752 elderly care facilities

• 592,500 residents

• Only 20% equipped with secure

dispensing devices (or envelopes)

ensuring complete traceability

• 2,400 pharmacies to provide dispensing

solutions for elderly care facilities (source:

Usine Digitale, Jan. 2017)

• Approximately 400 pharmacies equipped

with a robot


Fintech Division


• Strengthening the sales organization.

• Development of an inbound tool under the responsibility of a

Community Manager.

• Development of new versions of our platform with the integration in

particular of CM-CIC, Lixxbail, Leasecom ARKEA.

Outlook - Fintech Division


H1 2017 Results

Conclusion


Conclusion

PHARMAGEST Group, moving forward with confidence to develop

its business in line with its targets, outlines its outlook for

European growth.

Our European customer base

10,000 pharmacies

3,600 care homes

900 homecare healthcare

professionals

more than 40 hospitals

currently equipped with

the AXIGATE solution


Next key dates

Financial publications:

• 17 November 2017: Publication of Q3 revenue

• 15 February 2018: Publication of 2017 annual revenue

Investor events:

• 4 & 5 October 2017: MIDCAP Events Paris


Chief Executive Officer

Dominique PAUTRAT

[email protected]

Shareholder and Investor Relations

Jean-Yves SAMSON

Tel.: +33 (0)3 83 15 90 67 - [email protected]

Media Relations:

FIN’EXTENSO

Isabelle APRILE

Tel.: +33 (0)1 39 97 61 22 - [email protected]

Contacts

mailto:[email protected]








Documents

2017 First Half Results - Pharmagest€¦ · H1 2017 key figures H1 2017 Results 9.2956.19 10.45 11.05 2015 2016 2017 Net profit (€m) + 5.73 % 9.26 10.01 10.55 2015 2016 2017 Net