2020 annual results information meeting of 29 march 2021

FINANCE

2020 Annual Results Information meeting of 29 March 2021

2020 ANNUAL RESULTS – Web Conference - 29 March 2021 2

Contents

1. Introduction

Thierry CHAPUSOT

2. Solid performances during an unprecedented crisis

Thierry CHAPUSOT

3. 2020 Annual Results

Jean-Yves SAMSON

4. Business developments & Outlook

Dominique PAUTRAT

5. Conclusion

Thierry CHAPUSOT


Qualities revealed by the crisis: agility, responsiveness and the strength of the business model

Financial strength:

• A high level for Recurrent Revenue (66%) and the Gross Margin (68%).

• Diversity of the portfolio of health-related activities.

• An excellent balance sheet structure: €104m in cash at 31/12/2020.

• Current bank credit facilities available: €26m.

The Group’s ability to manage situations of crisis:

• Anticipation and responsiveness in deploying new secure remote access and video-

conferencing solutions.

• Optimization of Human Resources: taking vacation days and other form of leave available to

remain as operational as possible during the reopening face.

• Optimization of General Expenses: cancellation of events, postponement of advertising

campaigns, reducing activities and travels.

• Inventory Management: anticipating procurement needs, prioritizing deliveries.


The priority: ensuring the health and safety of our employees, "Corporate Citizens in the Service

of Health and Well-Being".

An efficient and highly productive organization:

• Business continuity during the lockdown phases:

Deployment of secure remote access: continuing support services to professionals.

Maintaining service to healthcare professional intervening in the field.

Customer protection solutions (OffiTeleconsult, PharmaProtect…).

• Very strong dedication of all teams throughout the year both remotely and in the field:

Commercial momentum to support the launch of new offerings.

Fulfilment of postponed deliveries.

Qualities revealed by the crisis: a high level of employee commitment combined with exceptional performances

Annual Revenue

€171.75m (+8.32% vs. 2019)*

Performance Current Operating

margin

27.16% (25.76% in 2019)

Current Operating Income

€46.65m (+14.20% vs. 2019)

Stable sales (+0.49%)

like-for-like


Significant strategic acquisitions: positive contribution of €12.77m to 2020 revenue

• Integration and 100% controlling interest acquired in ICT Group.

• Creation of MALTA BELGIUM.

• Acquisition of a majority stake (56.27%) in PANDALAB.

• Acquisition of ASCA INFORMATIQUE.

Pursuing the external growth strategy

For information, European developments in October 2019:

• Acquisition of a majority stake (80%) in SVEMU in Italy.

• Acquisition of a majority stake (60%) in the German distributor I-MEDS.


Continuing investments in innovation :

• R&D investments up 2.7% vs. 2019.

• Continuing development of the Digital Healthcare Platform (DHP): driven by the development of

the Digital Healthcare Platform, Pharmagest Group 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).

Continuing investments in R&D

2018 2019 2020

R&D INVESTMENTS - € THOUSANDS) 7,537 7,831 8,044


Recognized financial performance: integration of the share in the MSCI GLOBAL SMALL CAP index

PHARMAGEST INTERACTIVE share included in the MSCI GLOBAL SMALL CAP index since 30

November 2020.

• A benchmark for global large and mid caps.

• Highlighting the share’s attractiveness for investors

Thierry CHAPUSOT

Chairman of the Board of Directors of PHARMAGEST

Reflecting all our efforts, our “Patient-Centred” strategy, our

efficient business model and our improved financial profile,

today we have reached a market capitalization of more than

€1.5 billion. Having in this way advanced to the level of large

international groups, we are determined to remain on this path

and maintain our competitive lead.

We are honoured and proud to have to be included in this

prestigious index which highlights the attractiveness of our share for investors.


2020 Annual Results Jean-Yves SAMSON


2020 key figures

27.04 30.36

32.67

2018 2019 2020

Net profit (€m)

+7.59%

148.48 158.57

171.75

2018 2019 2020

Revenue (€m)

+8.32%

25.43 28.40 30.71

2018 2019 2020

Net profit attributable to equity

holders of the parent (€m)

+8.14%

1.70 1.89 2.04

2018 2019 2020

Basic earnings per share (In €)

+7.82%

38.89 40.85 46.65

2018 2019 2020

Current Operating income (€m)

+14.20%

27.04 28.97 32.67

2018 2019 2020

Net profit from continuing

operations (€m)

+12.75%


2020 revenue

€171.75m, up +8.32%

Pharmagest Group confirms the strength of its business model.

The Group reported annual revenue of €171.75m for the period ended 31 December 2019, a

8.32% increase in relation to 2019 (+0.49% like-for-like).

All Divisions contributed to this performance.

* +0.49% like for like excluding the disposal of INTECUM and excluding acquisitions of MALTA

BELGIUM, ICT, SVEMU, I-MEDS, PANDALAB, ASCA INFORMATIQUE.

IN €M 2020 2019 Change

Q1 39.00 38.15 + 2.23%

Q2 38.93 38.73 + 0.52%

Q3 44.34 35.28 + 25.70%

Q4 49.48 46.40 + 6.61%

ANNUAL REVENUE 171.75 158.57 + 8.32% *


2020 income statement highlights

IN €M 2020 2019 Change

REVENUE 171.75 158.57 + 8.32 %

CURRENT OPERATING INCOME 46.65 40.85 + 14.20 %

OPERATING PROFIT 46.13 * 40.85 + 12.94 %

NET PROFIT 32.67 30.36 ** + 7.59 %

NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 30.71 28.40 + 8.14 %

Basic earnings per share (in €) 2.04 1.89 + 7.82 %

* Operating Profit up €46.13m, including a €515,000 impairment charge for BELUX goodwill

** Recognition of the disposal of the subsidiary INTECUM to PHARMATHEK (€1.4m)

Growth in profitability within an unprecedented environment:

Current operating income: €46.65m, +14.20%


2020 financial highlights by Division

IN €M Revenue

Current

operating

income

Current operating margin (%)

PHARMACY EUROPE 127.31 30.05 23.61%

HEALTH AND SOCIAL CARE FACILITIES 26.19 9.72 37.12%

OTHERS (E-HEALTH & FINTECH) 18.25 6.87 37.65%

TOTAL 171.75 46.65 27.16%


Balance sheet

€m Dec. 2020 Dec. 2019 Dec. 2020 Dec. 2019

NON-CURRENT ASSETS 184.90 160.53 SHAREHOLDERS' EQUITY 148.95 131.91

R&D 30.12 24.86 Attributable to the Parent 143.26 127.61

Goodwill 65.55 49.79

Non-current financial assets 44.50 50.72 NON-CURRENT LIABILITIES 66.44 54.04

Other non-current assets 44.66 35.16 Long-term debt 55.99 47.48

Other non-current liabilities 10.45 6.56

CURRENT ASSETS 110.87 97.57

Trade receivables 31.77 34.57 CURRENT LIABILITIES 80.39 72.15

Other current assets 15.82 12.40 Short-term debt 15.82 10.00

Cash & cash equivalents 33.63 21.37 Trade payables 14.21 13.36

Available-for-sale securities* 29.65 29.24 Other current liabilities 50.35 48.79

TOTAL 295.78 258.10 TOTAL 295.78 258.10

* and other financial assets


Cash flow highlights

(€m)

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

Cash flow 42.03

Change in WCR 5.18

Operating investments (*) - 19.61

Financial investments - 19.83

Dividends - 14.50

Borrowings 10.59

Other financing activities 2.57

Gross cash at 31/12/2020 (**) 104.09

(*) Of which €8,044,000 for R&D

(**) Of which available-for-sale securities (€29.65m) + non-current

financial assets (€41.22m) = €70.87m


Capital expenditures for R&D

IN € THOUSANDS 2020 2019

PHARMACY EUROPE 2,908 3,132

HEALTH AND SOCIAL CARE FACILITIES 1,866 1,440

E-HEALTH SOLUTIONS 2,620 2,534

FINTECH 650 723

TOTAL 8,044 7,831


Ratios

2018 2019 2020

Cash Flow €33.05m €35.76m €42.03m

Gearing (*) -44.68 % -34.94 % -24.15 %

ROE 22.3 % 22.3 % 21.4 %

(*) net debt including available-for-

sale securities and other financial

assets


Change in share price in 2020 (from 02/01/2020 to 31/12/2020 - Source Boursorama)

at 02/01/2020:

share price of €61.20

at 31/12/2020: share price of €111.40

Market Cap. At 31/12/2020 :

€1.690bn

82.03% CAC Mid&Small


Pharmacy - Europe Solutions Division – 2020

Maintaining a level of growth in line with 2019, with the integration of ASCA/SEAA in H2.

Like-for-like, annual sales stable at €120.3m (-0.4%).

In France: good performances by the FMD Module, OffiLocker, OffiTag, PHARMATHEK orders.

Health crisis impacts:

In Italy: business development activity was limited to the Pharmacy sector though the

Wholesalers-Distributors BU was active.

In Belux: very complex situation where commercial activity was severely impacted (-20.6%).

2020 revenue: +5.05% to €127.31m

(74.1% of Group revenue)

2020 Operating Profit: €30.05m

23.61% / revenue vs. 23.35%

Profitability maintained at a good level by the Group’s responsiveness in adapting the operational organization:

Implementation of telework.

A high level of internal mobilisation.

Limiting travel and use of videoconference solutions.

Cancellation of professional events.

This Division is continuing to focus on:

R&D investments in different countries = pooling resources.

Continuing international development.


Health and Social Care Facilities Solutions Division – 2020

+6.66% like-for-like with positive momentum by all the Divisions business lines: senior homes, home-based nursing services, hospital-at-home programmes, hospitals, private practice physicians.

Expansion into Belgium with MALTA BELGIUM and its solution dedicated to senior homes and specialised establishments.

Acquisition of a majority stake in PANDALAB, a provider of a secure instantaneous messaging solution.

2020 revenue: +34.27% to €26.19m



37.12% / revenue vs. 37.72%

Turnaround of Operating Profit in relation to H1 (34.65%) from the Hospital and the Office-Based Private Practice Business Units.

The other Business Units have maintained their level of profitability.

Maintaining R&D investments with innovative and cross-cutting projects with Group Divisions.


e-Health Division Solutions & Fintech – 2020

After a good H1, H2 was mixed with growth reduced to 1.46% notably as card readers

remained unsold in distributers’ inventories.

The Digital Communication Range confirmed the relevance of its offering a year-end.

The launch of the NOVIACARE offering had to be postponed.

2020 revenue:

+1.97% to €16.44m



37.65% / revenue vs. 29.09%

The margins of both these Divisions

improved significantly.

A favourable business mix: a recurrent sales model for the e-Connect Business Unit.

Integration of a distributor

generating a margin effect: I-MEDS.

Reduction in expenses: post-ponement of product launch campaigns.

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

After a promising start of the year, investing activity in business flows was considerably reduced from 03/ to 08/2020.

A good recovery in H2 contributed to a 15.6% increase.

Development of the Nancéo-Channel activity (network of professional business

introducers).

2020 revenue:

+3.75% to €1.81m


e-Health Solutions Fintech Global performance


H1 2021 Outlook Dominique PAUTRAT


Pharmacy - Europe Solutions Division - H1 2021 Outlook

Pooling R&D resources for France / Italy/ BeLux & ramping up the European expansion of new

solutions notably OffiCentral, OffiLocker, OffiTag, OffiCash.

In France, expansion into new territories and business applications:

Strengthening the Group’s presence in Ile-de-France: ADI fully integrated into our distribution

network => offering pharmacist customers and prospects in the Paris region the complete range

of Group solutions.

The electronic labelling activity, ASCA / PHARMAGEST: optimisation of purchasing with an industry exclusive contract with one of the world's leading ESL manufacturers, a new commercial charter

for the ASCA / PHARMAGEST sales forces.

A retail equipment offering (SEAA subsidiary): expansion of our range for securing commercial

premises (for pharmacies and other business sectors).

Italy:

Pharmacies: comprehensive planning for installations => creation of our technical subsidiary

PHARMAGEST SERVIZI for the deployment of configurations.

Wholesalers: strong interest by our main customers for the Check&Trace offering (tractability of deliveries), end of the CEF deployment.

Belgium:

Strengthening the sales team: 4 people incl. 2 business developers for Wallonia and Flanders.

PAYCONIQ commercial agreement (a digital payment system).


Management of in-pharmacy appointments: a new service to reach the general public

Launch of PandaLab agenda

for pharmacists

A professional COVID-19 vaccination pharmacy appointment management service

• A free service in 2021 then €10 / month (DHP’s application)

• Simplified management integrated in the pharmacy

management suite

• A secure service

• 4,500 pharmacies already registered since the launch

• Many structural developments to come

Launch of the B2C application

PandaLab Ma Santé • Through this app, any patient can make a COVID

vaccination appointment in the nearest pharmacy of his or

her choice offering this service.

• Available since 15 March on Apple Store and Google Play.


TITAN LINK:

An innovative, web-designed, multilingual, multi-establishment, multi-country solution for

addressing the entire European market with a single solution.

‐ Renewal for customer users of TITAN in France and CARE SOLUTIONS in Belgium: 2,830

establishments.

‐ A new alternative for prospects.

Successful installation for COLISEE pilot sites => deployment at 100 sites in 2021.

Roll-out in other European countries: Belgium, Spain, Italy in 2021 and 2022.

Development of synergies within the Division and Group:

Gradual integration of PANDALAB PRO - instantaneous messaging - into hospital solutions

(AXIGATE), senior homes (MALTA), HAD (DICSIT) and pharmacies (PHARMAGEST).

eORDO service launch.

ICT CHORUS : strengthening the sales organization with 3 sales engineers devoted to health centres

grouping multiple professionals and territorial health professional communities.

AXIGATE: confirmation of the strategy for deployment in regional hospital networks, and in particular

the Provence regional hospital network around the Marseille Public Hospital, and diversification into

psychiatric hospital centres.

Health and Social Care Facilities (HSCF) Solutions Division – H1 2021 Outlook


eORDO service launch

A new service for the electronic transmission of subscriptions between senior homes equipped

with TITAN to pharmacies with the pharmacy management suite.

• Time savings.

• Security.

• Traceability.

• Quality.

500,000 patient files

monitored by our applications

1,000 subscriptions / yr.

on average processed

by a nursing home


Telemedecine - Patient Monitoring: development of synergies with the Group.

E-NEPHRO - Pre-Transplant Module: initiative with AXIGATE to build a white label offer destined for hospitals.

ETP-PILOT: imitative with ICT for the integration of technological building blocks for health centres.

Prevention - Vulnerable persons

NOVIACARE:

LOGIREP (81 housing units) : commencement of construction => launch of installations.

Reorganisation of the sales team: In France and Europe.

CARELIB:

Synergy with MALTA for senior homes : development of the CARELIB by MALTA offering, patient

call solution integrated into TITAN.

Digital Communication: marketing of new offerings for pharmaceutical companies and

manufacturers.

SMS Conseils: a patient care pathway assistance tool for pharmacists.

SAILSENSE : predictive marketing in the strategy of pharmaceutical companies to better

understand the purchasing behaviour of customers (IA’s application from SAILENDRA).

e-Health Solutions Division - H1 2021 Outlook


Strengthening of management: Arrival of Tristan DEBOVE

Director of Operations DIGITAL HEALTHCARE PLATFORM

and PATIENT PORTAIL

Background

• 30 years of experience exercising responsibilities in general

management, business development and marketing among key

players in the IT sector.

• Manager of the French subsidiary of InterSystems, the US software

systems vendor, and development of the healthcare software sector.

• Head of the Healthcare and Social Welfare Division of Gfi Progiciels.

At PHARMAGEST in charge of:

The territorial development and monetization of the Digital Healthcare Platform (DHP).

Reinforcing the patient-centred service approach by developing synergies between the

Group’s different subsidiaries.


• Sale of 30% of the capital to operational members to incentivize their continuing contribution

to developing the activity and business volume both in France and international markets.

Continuing to develop the leasing activity:

Creation of financing captives under a white label platform.

Developing a software development offering in the form of licences:

Financial targets: banks and finance companies.

Resumption of rollout in the United Kingdom.

Fintech Division - H1 2021 Outlook


Conclusion Thierry CHAPUSOT


Change in shareholder structure

A dynamic shareholder relations policy: proposal for a dividend of €0.95 per share, +5.5% vs

dividend paid in 2020 for FY 2019.

Breakdown of share capital at 12/31/2020


2021 Outlook

• Healthcare market in 2021 : acceleration in investments for digitizing the

health and social care sectors. cf. the "SEGUR DE LA SANTE“ press kit – March 2021

« €19bn to boost investments in health »

• Accelerating the development of services around the Digital Healthcare Platform (DHP):

Existing services : eORDO, PandaLab Ma Santé.

Future services : telecare solutions connecting patients and pharmacists.

Opening the Digital Healthcare Platform: strategic partnerships with manufacturers and

hospitals (public and private establishments).

• Several targeted European acquisition projects in the pipeline.

https://solidarites-sante.gouv.fr/IMG/pdf/09.03.2021_-_dp_-_segur_de_la_sante_-_relancer_les_investissements_en_sante.pdf


Calendar / Contacts


Financial Calendar

Financial publications::

• 2020 Universal Registration Document: end of April 2021

• 12 May 2021: Publication of Q1 2021 sales

• 4 August 2021: Publication of H1 2021 sales

Investor events:

• 1 April 2021: PORTZAMPARC Conference

• 11 & 12 May 2021: MIDCAP PARTNERS Conference

• 20 May 2021: CM-CIC Market Forum

• 29 June 2021: Annual General Meeting, Nancy


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

2020 annual results information meeting of 29 march 2021

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