Download - 2nd quarter 2016 –Conference Call
2nd quarter 2016 – Conference Call 04 August, 2016 ‐ Christian B. Teig, CFO
CompuGroup Medical SE – Synchronizing Healthcare
Key figures second quarter 2016
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€ M Q2 16 Q2 15 Change 2015
Revenue 135.6 138.1 ‐2% 543.1
EBITDA 29.9 29.7 +/‐ 112.3
EBIT 18.0 19.2 67.8
EBT 18.7 11.3 62.2
Net income 12.6 4.1 38.6
EPS (€) 0.25 0.08 0.77
Cash net income* 21.7 11.7 72.9
Cash net income per share (€) 0.44 0.24 1.47
*Net income before minority interest plus amortization of intangible assets less amortization on in‐house capitalized software
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2010 – 2016 per quarter
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Revenue (€ M) / profitability (EBITDA%)
0%
5%
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40
60
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COGS and gross margin
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Cost of goods sold and gross margin (€ ’000 / percent)
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100%
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COGS Gross margin
Personnel expenses
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€ ’000
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30.000
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Other expenses
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0%
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5000
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Other expenses (€ ‘000) / percent of personnel expenses
Operating cash flow
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‐20000
‐10000
0
10000
20000
30000
40000
50000
60000
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€ ‘000
Capital expenditure
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€ M Q2 2016
Company acquisitions 0.0
Purchase of minority interest and past acquisitions 0.4
Capitalized in‐house services and other intangible assets 3.7
Office buildings and property 0.1
Other property and equipment 9.7
Sum 13.9
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The investment in other property and equipment includes the purchase of a new corporate aircraft for EUR 8.2 million as well as the disposal of the previous corporate aircraft for EUR 2.0 million
CGM also invested EUR 1.6 million in a data center renewal in Austria during the second quarter to continue to provide outsourced data center services for a large hospital customer
0
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31.03.2016 30.06.2016
Cash and cashequivalents
Other currentassets
Non‐currentassets
Statement of financial position
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€ M
0
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31.03.2016 30.06.2016
Otherliabilities
Debt
Shareholdersequity
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Doctor software development
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AIS revenue Q2 2016100% = 80.8 € M
Flat organic revenue development at constant currency
For software maintenance and other recurring service fees, year‐on‐year organic growth at constant currency is 4 percent
Lower than normal public sector spending in Sweden and Italy as well as delayed market launch of certain add‐on modules in Germany lowers other revenue streams
€ M %
Revenue Q2 2015 80.5
Acquisitions 1.0 1%
Organic growth ‐0.7 ‐1%
Revenue Q2 2016 80.8 +/‐
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The project customer (gematik) haspublished a status report as of 30 June 2016and is committed to provide status updatesat regular intervals going forwardThe status report restates all milestones in theeHealth law without further commentIt is confirmed that the testing in the project canbe done with existing card readers with a software updateThe status of both Konnektors (both test regions) is listed as “undergoing the approval test by gematik and the evaluation process for certification by the Federal Office for Information Security (BSI)” All other components of the Telematik Infrastructure are listed as either being finished or undergoing the approval test by gematik
Telematik Infrastructure pilot project
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Pharmacy software development
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Similar to the doctor and dental software business, the pharmacy software business continued the year with a flat revenue development in the second quarter
It is again revenue from low margin hardware sales and professional services falling behind whereas software maintenance and other recurring service fees are growing steadily as planned
€ M %
Revenue Q2 2015 22.8
Acquisitions 0.0
Organic growth ‐0.1
Revenue Q2 2016 22.7 +/‐
PCS revenue Q2 2016100% = 22.7 € M
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Hospital software development
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The markets in Austria, Switzerland and Germany are performing well based on a good backlog of already contracted project revenue
Developments in Eastern Europe, Turkey and the Middle‐East are exceptionally weak, and together constitute more than the entire organic revenue decline
The biggest impact comes from Poland where basically all government and EU‐sponsored projects have been discontinued
€ M %
Revenue Q2 2015 19.8
Acquisitions 0.5 2%
Organic growth ‐3.4 ‐17%
Revenue Q2 2016 16.9 ‐15%
HIS revenue Q2 2016100% = 16.9 € M
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6,4 6,47,7 7,7
6,35,0
6,8
4,4 4,2 4,35,5
3,8 3,7 3,54,5 3,9 3,8 3,6
5,94,6
3,5
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Other
Germany
Communication & Data development
Communication & Data revenue (€ M)
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‐9%
After a strong first quarter with 14 percent organic growth, the second quarter in the Communication & Data business reversed some of these gains
These are normal quarterly fluctuations for this business segment
For the first six months of 2016 together, the Communication & Data business has developed as expected with positive organic growth
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4,8 4,5 4,9 5,54,8 4,6 6,8 5,6
3,94,5
5,2 5,3 4,9 4,6 4,8 4,5 4,6
6,0 6,1 6,1 5,7
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Other
Germany
Workflow & decision support development
Workflow & decision support revenue (€ M)
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+15%
The workflow & decision support business follows up from the strong start to 2016 with 15 percent organic revenue growth in the second quarter
This revenue step‐up predominantly comes from new CardTrust contracts with statutory health insurance companies in Germany and revenue from the new Joint Venture with AXA Group
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CGM delivered lower than anticipated revenue for the first six months of 2016
Software maintenance and other recurring services have grown with 4 percent at constant exchange rates, and the revenue shortfall is entirely in the short‐term, sales driven part of the business model
To compensate for this, CGM has launched several new initiatives and campaigns to stimulate revenue from hardware, software and services in the second half of 2016
In addition, the seasonality is expected to be different in 2016 compared to 2015 due to special negative effects on second‐half revenue in 2015 which are not expected to repeat this year
With this improvement projected over the remaining six months of 2016, CGM reaffirms the outlook presented in the 2015 Annual Report published 31 March 2016
Expected developments
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CGM reaffirms guidance for 2016:Revenue is expected to be in the range of EUR 560 million to EUR 570 millionOperating income (EBITDA) is expected to be in the range of EUR 125 million to EUR 133 million
The guidance includes all expected additional expenses during 2016 to prepare CGM for the beginning of the nation‐wide roll‐out of the Telematics Infrastructure in Germany
The guidance does not take into account potential revenue related to the Telematics Infrastructure roll‐out
The guidance does not include revenue and costs associated with potential and currently undetermined further acquisitions during 2016
Guidance 2016 reaffirmed
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Financial calendar 2016
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Date Event
May 4, 2016 Interim Report Q1 2016
May 18, 2016 Annual General Shareholder Meeting 2016
August 4, 2016 Interim Report Q2 2016
October 13, 2016 Investor and Analyst Conference
November 9, 2016 Interim Report Q3 2016
Q&A session
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If you would like to raise questions, please press *1 on your telephone
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CompuGroup Medical SE Investor RelationsMaria Trost 2156070 Koblenz Germanywww.cgm.com
Phone: +49 (0) 261 8000‐6200Email: [email protected]
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