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TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

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Page 1: TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

TSX: OMG

Le 10 Février 2012

Assemblée annuelle des actionnaires

Page 2: TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

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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.

Forward-Looking Statements

Page 3: TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

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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

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Corporate Profile

Overview OPMEDIC 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 Financial Highlights (August 31, 2011)Revenue $22.3M

Gross Profit $13.3M

Gross Margin 59.5%

EBITDA $8.9M

EBITDA Margin 40.1%

Net Income $5.4M

Net Margin 24.0%

EPS $0.31

2008-2011 Revenue CAGR 24.7%

2008-2011 EBITDA CAGR 43.6%

2008-2011 Net Income CAGR 60.8%

Cash $9.9M

Bonds $1.3M

Total Debt $2.9M

Capital Markets HighlightsShare 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

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 procedures

Two sites and three satellites in Quebec

One site opened in Toronto in 2011

Donor sperm banking and sperm preservation services

One of the larger donor sperm banks in Canada

OPMEDIC PROCREA ClinicsPROCREA

Cryopreservation Center

Surgical Facilities and Services

Fertility Clinics

Diagnostic Lab, Prenatal

Screening, Fetal Ultrasound

Sperm Banking

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Management and Board of Directors

Solid Board of Directors and management team with significant experience in the healthcare industry

Name Position With OPMEDIC Principal Occupation / Experience

Dr. Pierre St-Michel Director, President and CEO Extensive experience in both medicine and corporate Founder 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 Nearly 20 years of experience in Obstetrics, Founder 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 Com) Chairman of Ballater Capital Inc.

Ken Newport Director ( Chairman HR & Entrepreneur and life sciences business Compensation Committee) 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

Page 8: TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

OPMEDIC GroupServices Offering

Page 9: TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

PROCREA – Fertility

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Mission Help 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

Fetal ultrasounds

Solid reputation and track-record as a provider of fertility treatments & services

Page 10: TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

PROCREA – Fertility

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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 gynaecologists

2 endocrinologists

3 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

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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 2014

• Approximately 4,800 IVF cycles were performed in Quebec last year

OPMEDIC currently performs over 30% of all IVF cycles in Quebec• Currently, 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

Mission Provide 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

Mission Provide patients with diagnostic and operative endoscopic procedures

Quebec City Opened June 2008

1 operating room, 3 surgeons, 4 gastroenterologists

Endoscopic Center Laval Opened January 2008

2 operating rooms, 6 surgeons, 2 gastroenterologists

South Shore of Montreal Opened October 2011

3 operating rooms, 6 surgeons, 4 gastroenterologists

Quebec’s new prevention policy in colo-rectal cancer Should increase the demand

Discussions 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

Mission Offer short and long term sperm storage services

Support fertility operations through sperm auto preservation & sperm donation

Eventually offer ovocyte banking for donor cycles

Services 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

Page 15: TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

OPMEDIC GroupSelected Financial Information

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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

Strong balance sheet - well positioned to fund organic growth and take advantage of strategic acquisition opportunities

Summary Balance Sheet

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

FY 201131-August-2011

FY 201031-August-2010In $000s, Canadian GAAP

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Significant ramp up in 2011 revenues and significant improvement in margins

Solid performance 2011YTD, as we register the impact of the new government policy

Income Statement Highlights

Revenue ∆↑ 55% 22,297 14,348Gross Profit 13,267 7,932Gross Margin - % 60% 55%EBITDA ∆↑ 123% 8,933 3,999EBITDA Margin - % 40% 28%Net Income ∆↑ 185% 5,355 1,877Net Margin - % 24% 13%

  EPS (Basic and Diluted) $0.31 $0.11 Dividend per Share $0.085 $0.05

Return on assets 24% 12%Return on equity 33% 15%

FY 201131-August-2011

FY 201031-August-2010

In $000s (except EPS), Canadian GAAP

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2011 YTD Revenues 2010 YTD Revenues

Revenue by Division

Enhanced stability of operations through diversification of its revenues

Cryopreservation7%

Fertility42%Surgeries

16%

Labs, Ul-trasounds & Prenatal

35%

Cryopreservation5%

Fertility61%

Surgeries13%

Labs, Ul-trasounds & Prenatal

21%

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Strong growth in revenue, EBITDA and net income

Historical Performance

$1,3 $1,7 $1,9

$5,4

$3,0$3,7 $4,0

$8,9

$11,5

$13,4$14,3

$22,3

$0,0

$5,0

$10,0

$15,0

$20,0

$25,0

2008 2009 2010 2011

Net Income EBITDA Revenue

2008-2011 Revenue CAGR = 24.7%2008-2011 EBITDA CAGR = 43.6%2008-2011 Net Income CAGR = 60.8%

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Strong operating leverage resulting in significant improvements in operating margins

YoY Margin Improvement

2008 2009 2010 20110%

10%

20%

30%

40%

50%

60%

70%

54% 54% 55%

60%

26%28% 28%

40%

11% 13% 13%

24%

Gross Margin - % EBITDA Margin - % Net Income Margin - %

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Good performance, even if Quebec clinic didn’t have any IVF for two months

First Quarter Highlights

Revenue 5,390 5,443Gross Profit 3,232 3,413Gross Margin - % 60% 63%EBITDA 2,127 2,346EBITDA Margin - % 39% 43%Net Income 1,247 1,397Net Margin - % 23% 26%

  EPS (Basic and Diluted) $0.07 $0.08 Dividend per Share $0.025 $0.01

Q1 201130-Novembre-2011

Q1 201030-Novembre-2010

In $000s (except EPS), IFRS standards

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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%

Page 23: TSX: OMG Le 10 Février 2012 Assemblée annuelle des actionnaires

TSX : OMG17,274,867 shares outstanding

36,919 options outstanding

1361, Beaumont Ave, Office 301, Mont-Royal

www.opmedicgroup.com