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Assemblée annuelle des actionnaires. Le 10 février 2012. 1. Forward-Looking Statement. - PowerPoint PPT Presentation
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TSX :OMG
Assemblée annuelle des actionnairesLe 10 février 2012
1
Forward-Looking Statement
Certain statements included in this PowerPoint presentation constitute “forward looking” statements, including those identified by the expressions “will”, “continue”, “predict”, “may”, “would”, “could” “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend” and similar expressions, to the extent they relate to OPMEDIC Group Inc. (“OPMEDIC” or the “Corporation”) or its Management. The forward looking statements are not historical facts but reflect Management’s current expectations regarding future results or events. These forward looking statements are subject to a number of assumptions, risks, uncertainties and other factors, such as business and economic conditions; market competition; changes in government regulations; the ability of the Corporation to secure and maintain all required licenses, permits and certifications to provide its services in the jurisdictions where the Corporation is currently doing business or intends to do business in the implementation of its business plan; risk associated with third-party service providers; the ability for the Corporation to establish and develop new relationships and to build on existing relationships with clients; the ability of the Corporation to recruit and retain the services of its key personnel; the ability of the Corporation to obtain additional financing on reasonable terms or at all; and the ability of the Corporation to market its services, that could cause actual results, performance, achievements, industry results or events to differ materially from current expectations.
These forward looking statements are made as of the date of this PowerPoint presentation and OPMEDIC does not intend, and does not assume any obligation, to update or revise them to reflect new events or circumstances, unless otherwise required by law. Prospective investors are cautioned not to place undue reliance on forward looking statements.
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Investment Highlights
Leading provider of professional services and facilities in the healthcare industry, with a focus on fertility, genetic, endoscopic and surgical services
Strong macro trends and positive fiscal & regulatory environment
Well-positioned in a fragmented industry offering growth and acquisition opportunities
Solid financial performance, stable & recurring revenues with strong margins and cash flows generation
Experienced management team with aligned interests and a proven track-record of execution
3
OverviewOPMEDIC is a provider of a wide range of professional fertility and genetic services, sperm banking services and surgical and endoscopic services and facilities for patients and surgeons
LTM Stock Price Performance
Corporate Profile
4
Corporate Profile
Capital Markets Highlights
Financial Highlights (August 31, 2011)
Revenue $22.3MGross Profit $13.3MGross Margin 59.5%EBITDA $8.9MEBITDA Margin 40.1%Net Income $5.4MNet Margin 24.0%EPS $0.312008-2011 Revenue CAGR 24.7%2008-2011 EBITDA CAGR 43.6%2008-2011 Net Income CAGR 60.8%Cash $9.9MBonds $1.3MTotal Debt $2.9M
Share Price (February 8, 2012) $3.80
Shares Outstanding 17.3M
Market Capitalization $65.6M
Enterprise Value $58.6M
EV/EBITDA 6.6x
P/E 12.3x
Dividend Yield 2.6%
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Organization
OPMEDIC
Surgical Facilities and Services
PROCREA Clinics
Fertility ClinicsDiagnostic Lab, Prenatal
Screening, Fetal Ultrasound
PROCREA Cryopreservation
Center
Sperm Banking
Surgical and endoscopic services and facilities
One site for surgery, three sites for endoscopy(Laval, Quebec city and South Shore of Montreal)
Fertility treatments, laboratory analysis, imaging and diagnostic proceduresTwo sites and three satellites in QuebecOne site opened in in Toronto in 2011in Toronto in 2011
Donor sperm banking and sperm preservation services
One of the larger donor sperm banks in Canada
6
Management and Board of Directors
Solid Board of Directors and management team with significant experiencein the healthcare industry
Name Position with OPMEDIC Group Principal occupation / Experience
Dr. Pierre St-Michel Director, President and CEOFounder
Extensive experience in both medicine and corporate management, Medical Director of the ART Medical Board Canadian Fertility and Andrology Society, former Chief of Surgery at Hôpital Fleury in Montreal
Jean-Marc Lachance CFO Over a decade of experience in financial management, former administrative director of the Quebec Order of Pharmacists
Dr. Marc Villeneuve Director, Medical Director Founder
Nearly 20 years of experience in Obstetrics, Gynaecology, and Reproductive Endocrinology
Jacques Landreville Chairman of the Board Director of Colabor Group Inc., GLV Inc., Lassonde Industries Inc., and Camoplast Solideal Inc.
Hani Basile Director (Chairman Audit Committee)
President, Juvenile Group of Dorel Industries Inc.
Jean Larivée Director (Chairman Governance Committee)
Chairman of Ballater Capital Inc.
Ken Newport Director (Chairman HR & Compensation Committee)
Entrepreneur and life sciences business executive, director of Nordion Inc.
Jacques Lemieux Corporate Secretary Partner at the law firm Norton Rose Canada LLP
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Business Strategy & Objectives
Build on our current platform to consolidate our position as a leading provider of fertility and genetic services in Québec
Expand our presence in the fields of endoscopic and surgical services and consider new segments of the healthcare industry
Enter new geographic markets, organically and through accretive acquisitions
Leverage the scope, scale and reputation of our existing operations to broaden our presence in the Canadian healthcare industry
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OPMEDIC Group
Services Offering
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PROCREA - Fertility
MissionHelp individuals conceive children using leading-edge biotechnology.Assist in the diagnosis, treatment and prevention of diseases related to reproductive medicine.
Services Offering In vitro fertilization Diagnostic laboratory services Prenatal screening Foetal ultrasounds
Solid reputation and track-record as a provider of fertility treatments & services
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PROCREA - Fertility
One of the largest fertility service providers in Canada.
Two locations in the Province of Quebec: Montreal & Quebec City
One newly opened location in Toronto (Vaughan)
Medical team has increased to : 13 gynaecologists2 endocrinologists3 urologists
Three satellites location in the Province of Quebec: Sherbrooke, Chicoutimi and South Shore of Montreal
Regional platform providing sound basis for expansion in new markets, organically and through accretive acquisitions
11
Regulatory Catalyst
BILL 26 – NEW LEGISLATION IN FORCE SINCE AUGUST 5TH, 2010
Quebec Health Insurance Board pays for three in-vitro fertilization treatments Reimbursement for IVF as decreased from $6,975 to $4,600 in January 2012.Increased reimbursement for Frozen Embryos Transfers (FET) with significant increase in volume.All other covered services are paid the same amount.
Quebec government estimates that the number of IVF cycles done in Quebec could increase between 8000 and 10,000 cycles by 2014Approximately 4,800 IVF cycles were performed in Quebec last year.
OPMEDIC currently performs over 30% of all IVF cycles in QuebecCurrently, OPMEDIC has the capacity to increase the number of its IVF treatments.The company has virtually no private competition in Quebec outside the Montreal area.Competition from public hospitals to come.
Well positioned to capitalize on Quebec’s new legislation relating to fertility treatments
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OPMEDIC - Surgery
MissionProvide surgeons in private practice with access to state-of-the-art surgical facilities and related services.Enable timely access to elective surgical procedures for patients.
Services Offering General surgery Plastic surgery Gynaecology Head and neck surgery
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OPMEDIC - Endoscopy
MissionProvide patients with diagnostic and operative endoscopic procedures
Quebec CityOpened June 20081 operating room, 3 surgeons, 4 gastroenterologists
Endoscopic Center Laval Opened January 20082 operating rooms, 6 surgeons, 2 gastroenterologists
South Shore of Montreal Opened October 20113 operating rooms, 6 surgeons, 4 gastroenterologists
Quebec’s new prevention policy in colo-rectal cancerShould increase the demandDiscussions by the RAMQ to cover the ancillary costs
New Quebec government prevention policy is expected to increase the demand
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PROCREA Cryopreservation Center
MissionOffer short and long term sperm storage services.Support fertility operations through sperm auto preservation & sperm donation.Eventually offer ovocyte banking for donor cycles.
Services Offering Donor sperm banking
(Samples distributed to major fertility clinics throughout Quebec)
Sperm preservation services for short or long periods of time for men undergoing certain medical treatments (chemotherapy, radiotherapy or surgery)
One of the larger donor sperm banks in Canada
15
Selected Financial Information
OPMEDIC Group
16
Summary Balance Sheet
Strong balance sheet - well positioned to fund organic growth and take advantage of strategic acquisition opportunities
As of August 31, 2011, OPMEDIC had a cash of $9.9 million (57¢/share), total debt of $2.6 million and bond investments of $1.3 million
In $000s, Canadian GAAP FY 201131-August-2011
FY 201031-August-2010
Cash $9,898 38% $6,581 36%
Current Assets $12,650 49% $8,052 44%
Total Assets $26,049 100% $18,135 100%
Current Liabilities $4,996 19% $2,516 14%
Long-Term Debt $2,630 10% $1,381 8%
Shareholders' Equity $18,232 70% $14,015 77%
Total Liabilities & Shareholder’s Equity $26,049 100% $18,135 100%
Working Capital $7,654 $5,536
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Income Statement Highlights
Solid performance 2011YTD, as we register the impact of the new government policy
Significant ramp up in 2011 revenues and significant improvement in margins
In $000s (except EPS), Canadian GAAP
FY 201131-August-2011
FY 201031-August-2010
Revenue ∆↑ 55% 22,297 14,348Gross Profit 13,267 7,932
Gross Margin - % 60% 55%
EBITDA ∆↑ 123% 8,933 3,999EBITDA Margin - % 40% 28%
Net Income ∆↑ 185% 5,355 1,877
Net Margin - % 24% 13%
EPS (Basic and Diluted) $0.31 $0.11Dividend per Share $0.085 $0.05
Return on assets 24% 12%
Return on equity 33% 15%
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Revenue by division
2011 YTD Revenues 2010 YTD Revenues
Enhanced stability of operations through diversification of its revenues
Fertiliy Surgeries
Labs, Ultrasounds & Prenatal Cryopreservation
Fertiliy Surgeries
Labs, Ultrasounds & Prenatal Cryopreservation
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2008 2009 2010 2011 $ -
$ 5.0
$ 10.0
$ 15.0
$ 20.0
$ 25.0
$ 1.3 $ 1.7 $ 1.9
$ 5.4
$ 3.0 $ 3.7 $ 4.0
$ 8.9
$11.5
$13.4 $14.3
$22.3
Net Income EBITDA Revenue
Historical Performance
Strong growth in revenue, EBITDA and net income
2008-2011 Revenue CAGR = 24.7%
2008-2011EBITDA CAGR = 43.6%
2008-2011Net Income CAGR = 60.8%
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YoY Margin Improvement
Strong operating leverage resulting in significant improvements in operating margins
2008 2009 2010 20110%
10%
20%
30%
40%
50%
60%
70%
11%13% 13%
24%
26%28% 28%
40%
Gross Margin - % EBITDA Margin - % Net Income Margin - %
21
First Quarter Highlights
Good performance, even if Quebec clinic didn’t have any IVF for two months
In $000s (except EPS), Canadian GAAP
Q1 201130-Novembre-2011
Q1 201030-Novembre-2010
Revenue 5,390 5,443
Gross Profit 3,232 3,413
Gross Margin - % 60% 63%
EBITDA 2,127 2,346
EBITDA Margin - % 39% 43%
Net Income 1,247 1,397
Net Margin - % 23% 26%
EPS (Basic and Diluted) $0.07 $0.08
Dividend per Share $0.025 $0.01
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Financial Markets Highlights
Share Price (February 8, 2012) $3.80
Shares Outstanding 17.3M
Market Capitalization $65.6M
Enterprise Value $58.6M
EV/EBITDA 6.6x
P/E 12.3x
Dividend Yield 2.6%
Major Shareholders (% of Basic Shares Outstanding):Two principal shareholders (physicians) 57.4%
Other officers & directors 0.5%
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TSX :OMG
17,274,867 shares outstanding36,919 options outstanding
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