rd quarter 2016 – conference call

3rd quarter 2016 – Conference Call 09 November, 2016 - Christian B. Teig, CFO

CompuGroup Medical SE – Synchronizing Healthcare

Key figures third quarter 2016

2

€ M Q3 16 Q3 15 Change 2015

Revenue 135.7 125.7 8% 543.1

EBITDA 28.3 20.8 36% 112.3

EBIT 19.4 10.6 67.8

EBT 15.8 6.0 62.2

Net income 9.6 4.9 38.6

EPS (€) 0.19 0.10 0.77

Cash net income* 15.4 13.0 72.9

Cash net income per share (€) 0.31 0.26 1.47

* Net income before minority interest plus amortization of intangible assets less amortization on in-house capitalized software

09/11/2016 Q3 2016 Conference Call

2010 – 2016 per quarter

3

Revenue (€ M) / profitability (EBITDA%)

0%

5%

10%

15%

20%

25%

30%

0

20

40

60

80

100

120

140

160


COGS and gross margin

4 09/11/2016 Q3 2016 Conference Call

Cost of goods sold and gross margin (€ ’000 / percent)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

5.000

10.000

15.000

20.000

25.000

30.000

COGS Gross margin

Personnel expenses

5

€ ’000

0

10.000

20.000

30.000

40.000

50.000

60.000


Other expenses

6

0%

10%

20%

30%

40%

50%

60%

0

5000

10000

15000

20000

25000

30000

35000


Other expenses (€ ‘000) / percent of personnel expenses

Operating cash flow

7

-20000

-10000

0

10000

20000

30000

40000

50000

60000


€ ‘000

Capital expenditure

8

€ M Q3 2016

Company acquisitions 4.9

Purchase of minority interest and past acquisitions 0.0

Capitalized in-house services and other intangible assets 3.7

Cash outflow for capital expenditure in joint ventures 1.5

Office buildings and property 0.0

Other property and equipment 3.1

Sum 13.2


Company acquisitions are payments for the acquisition of 75 percent of the shares in VEGA Informatica e Farmacia S.r.l. in Italy and for 100 percent of the shares in Micromedic GmbH in Germany (AIS dealer)

0

100

200

300

400

500

600

700

800

30.06.2016 30.09.2016

Cash and cashequivalents

Other currentassets

Non-currentassets

Statement of financial position

9

€ M

0

100

200

300

400

500

600

700

800

30.06.2016 30.09.2016

Otherliabilities

Debt

Shareholdersequity


Software for doctors

09/11/2016 Q3 2016 Conference Call 10

Doctor software development

78%

22%

Recurring service fees Non-recurring sales

11

AIS revenue Q3 2016 100% = 77.5 € M

Outside Gematik project, revenue development corresponds to 1 percent organic growth.

For software maintenance and other recurring service fees, year-on-year organic growth at constant currency is 4 percent

Effects from initiatives to accelerate growth are expected to come in the fourth quarter.

€ M %

Revenue Q3 2015 75.1

Acquisitions 0.3

Organic growth 2.1 3%

Revenue Q3 2016 77.5 3%


Significant progress during the third quarter, official testing phase expected to start in November. The Konnektor was approved from Federal Office for Information Security (BSI) for pre-piloting up to 30 providers. Formal security certification for the test phase is expected in November. It is confirmed that the testing in the project can be done with existing card readers with a software update. All other components are ready to begin trials, including 506 contracted pilot users in region North-West.

Telematik Infrastructure pilot project


13

European market leader in doctor software

13

Software for pharmacies


Pharmacy software development

71%

29%


14

The pharmacy software business had a strong third quarter and already recovered from the relatively slow start to the year.

Growth initiatives had a significant positive impact over the summer period and revenue from hardware, software and services rebounded strongly.

€ M %


Acquisitions 0.5 2%


Revenue Q3 2016 24.3 12%

PCS revenue Q3 2016 100% = 24.3 € M


15

Software for hospitals

Hospital software development

16

Austria, Switzerland and Germany are performing well based on a good backlog of already contracted project revenue.

Special effects last year related to specific projects and markets in Eastern Europe, Turkey and the Middle-East lead to the exceptional year-on-year growth this quarter

€ M %


Acquisitions 0.5 4%


Revenue Q3 2016 18.7 30%

HIS revenue Q3 2016 100% = 18.7 € M

55%

45%



6,47,7 7,7

6,35,0

6,2

6,8 4,2 4,35,5

3,8 3,7 3,54,5 3,9 3,8 3,6

5,94,6

3,5 4,0

0123456789

10

Other

Germany

Communication & Data development

Communication & Data revenue (€ M)

17

6%

The positive development in the Communication & Data business continues in the third quarter with positive organic growth

The different growth rates in each quarter are normal fluctuations for this business segment as the business model is not based on any recurring revenue


4,9 5,54,8 4,6 5,0

5,6

6,84,5

5,2 5,3 4,9 4,6 4,8 4,5 4,6

6,0 6,1 6,1 5,7 5,56,1

0123456789

OtherGermany

Workflow & decision support development

Workflow & decision support revenue (€ M)

18

-3 %

After a strong first half with 20 percent organic growth, the third quarter in the Workflow & Decision Support business reversed some of these gains

These are normal quarterly fluctuations for this business segment.


CGM reaffirms guidance for 2016: Revenue is expected to be in the range of EUR 560 million to EUR 570 million Operating 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


Financial calendar 2016 / 2017


Date Event

November 9, 2016 Interim report Q3 2016

February 3, 2017 Preliminary Q4/Full Year Report 2016

March 31, 2017 Annual Report 2016

May 4, 2017 Interim Report Q1 2017

May 10, 2017 Annual General Shareholder Meeting

August 3, 2017 Interim Report Q2 2017

October 12, 2017 Investor- and Analyst Conference

November 9, 2017 Interim Report Q3 2017

Q&A session

21

If you would like to raise questions, please press *1 on your telephone


CompuGroup Medical SE Investor Relations Maria Trost 21 56070 Koblenz Germany www.cgm.com Phone: +49 (0) 261 8000-6200 Email: [email protected]


rd quarter 2016 – conference call

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