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TSX: OMG
Le 10 Février 2012
Assemblée annuelle des actionnaires
2
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
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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
4
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
6
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
OPMEDIC GroupServices Offering
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
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
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%
TSX : OMG17,274,867 shares outstanding
36,919 options outstanding
1361, Beaumont Ave, Office 301, Mont-Royal
www.opmedicgroup.com