Cegedim: 2012: An Improvement Relative to 2011

Cegedim: 2012: An Improvement Relative to 2011

Growth in the Second Half

  • CRM and Strategic Data Margin Maintained
  • Robust Growth in the Healthcare Professionals and Insurance and Services Sectors Continued R&D Efforts

PARIS--(BUSINESS WIRE)-- Regulatory News:

Cegedim, a global technology and services company specializing in the healthcare field, posted consolidated 2012 revenues of €921.8 million, up 1.1% on a reported basis, and operating income from continuing operations of €90.1 million, up 7.4%. Operating margin was 9.8%, up from 9.2% a year earlier.

The second half was more favorable, with reported revenues up 3.4% and a 23.6% increase in operating income from continuing operations compared with the second half of 2011.

As a result, the CRM and strategic data margin was stable over the full year despite a drop in revenues, whereas the Healthcare professionals margin rose and the Insurance and services margin dipped slightly.

Continued sales momentum, ongoing R&D efforts, innovative new product launches and the effects of the Performance Improvement Plan will all boost Group revenues and operating income from continuing operations in 2013.





  • Simplified income statement










EBITDA from continuing operations153.616.7%150.416.5%+2.2
Operating income from continuing operations90.19.8%83.99.2%+7.4
Exceptional operating income / expenses-9.9-8.0+23.8
Impairment of goodwill on acquisition-124.9
Operating income-34.8-3.8%75.98.3% 
Net cost of financial debt-44.1-37.7+17
Tax expenses-7.6-6.6+15.1
Share of earnings in equity-accounted affiliates1.21.0
Consolidated profit-85.3-9.3%32.73.6% 
Profit attributable to the owners of the parent-85.4-9.3%32.63.6% 

* at constant scope and exchange rates


Cegedim generated 2012 revenues of €921.8 million, up 1.1% on a reported basis and down 1.0% in organic terms relative to 2011. The net effect of acquisitions and divestments was neutral, and currencies provided a 2.1% boost.

Operating income from continuing operations was €90.1 million, up 7.4% year on year. This increase was chiefly the result of stronger operating income from continuing operations in the Healthcare professionals and Insurance and services sectors, offset by a marginal decline in the CRM and strategic data sector.

Weak activity in the CRM and strategic data sector in the first half 2012 led the Group to record a goodwill impairment of €115 million at end-June 2012. As a result, operating income for the full year was a loss of €34.8 million.

Interest expense rose from €37.7 million to €44.1 million, or 17.1%, principally due to non-cash items.

The consolidated loss attributable to the owners of the parent came to €85.4 million, and earnings per share were €2.7 compared with €2.8 a year earlier.

Analysis of business trends by sector

  • CRM and strategic data

Sector revenue for 2012 was €488.1 million, down 4.4% on a reported basis. Perimeter effect had a negative impact on revenue growth of 0.8% thus currencies had a positive impact on revenues of 2.7%. As a result, 2012 like-for-like* revenue was down by 6.4% relative to December 2011.

This decrease was primarily due to a decrease in the number of medical sales representatives and a reduction in other marketing expenditures by some pharmaceutical companies in mature countries. On the other hand, the increase in the number of medical sales representatives in certain emerging countries and of revenue from our OneKey database and compliance offer partially offset this decrease.

While the revenue in this sector decrease by €22.5 millions of euros, the operating income from recurring operations decrease only by 0.9 millions of euros partly thanks to the implementation of our Performance Improvement Plan.

It should be emphasized the improved EBIT margin in the second half, which stood at 12.4% against 11.8% in the second half of 2011. For the year 2012 the EBIT margin was 6.7% against 6.6% in 2011.

  • Healthcare professionals

2012 revenues came to €282.6 million, up 8.8% on a reported basis compared with end-2012. Currency effects and acquisitions boosted revenues by respectively 1.7% and 1.9%. On a like-for Like basis revenue increased by 5.2%. This increase was mainly due to better performance on the three main areas of this sector and among other things to the continued computerization of healthcare professionals in the United Kingdom and France.

Operating income from continuing operations came to €35.2 million, a 20.0% increase over the year-earlier period. As a result, the margin from continuing operations was 12.4%, compared with 11.3% a year earlier.

  • Insurance and services

2012 revenues came to €151.0 million, up 7.1% on a reported and on a Like-for-Like basis compared with end-2012. There were no disposals or acquisitions and there was minimal impact from foreign currency translations.

Operating income from continuing operations came to €22.3 million, a 6.1% increase over the year-earlier period. As a result, the margin from continuing operations was 14.7%, compared with 14.9% a year earlier.

This increase was primarily due to the growth in online third-party payer management services, e-business activities and Cegedim SRH, a system which provides outsourcing of payroll and human resources management.

Financial resources

Cegedim's total consolidated balance sheet at December 31, 2012, was €1.288 billion, down slightly from the end of 2011. The dip is chiefly attributable to a €115 million depreciation of goodwill in CRM and strategic data activities during the first half of 2012.

Share capital decreased by €91.0 million and now represents 33% of total assets.

Following an impairment, goodwill amounts to €613.7 million, compared with €725.1 million at end-2011, representing 47.6% of total assets.

Cash and equivalents come to €43.5 million.

Net financial debt comes to €475.6 million, compared with €453.3 million at end-2011. This €22.3 million increase is the result of earn-out payments made en 2012.

The Group was in compliance with all of its bank covenants at end-2012.

Before the cost of net financial debt and taxes, cash flow was €141 million, compared with €140.1 million at end-2011. The level of gearing improved from 0.9 at end-2011 to 1.1 at end 2012.

2012 highlights

  • Divestment
    Cegedim sold its Pharmapost subsidiary on April 30, 2012, one of France's leading printers of drug information sheets, to the Chesapeake group. Pharmapost contributed €5.9 million to Group consolidated revenues in 2011; its contribution to consolidated EBITDA was close to zero. Under the terms of the agreement between the two parties, all other details regarding the transaction are confidential.
  • Acquisition
    On July 3, 2012, Cegedim completed the acquisition of ASP Line, France's fourth-largest publisher of pharmacist software, Cegedim's leadership position in the pharmacy computerization market in France (see release sent on July 3, 2012). Financed by internal financing, these activities represent annual revenues of around €9 million and are part of the consolidation scope of Cegedim Group from July 1, 2012.
  • Award
    On September 26, Cegedim received the "Mid Cap Corporate Governance" award, sponsored by L'AGEFI, in recognition of the quality of the transparency and governance practices that the Group has adopted.
  • Readjustment of bank covenants
    On October 3, Cegedim obtained the consent of its banking partners under the credit facility to amend certain covenants thereunder. This consent signals the continued confidence of our banking partners in the Group.

Significant post-closing transactions and events

To the best of the company's knowledge, there have been no post-closing events or changes that would materially alter the Group's financial situation.


For 2013, barring any significant changes in market trends, the Group expects modest growth in consolidated revenues and a 50bps increase in the operating margin on continuing operations.

Financial calendar

The Group will hold a conference call today March 4th, 2013, at 6:15 pm in English (Paris time). The call will be hosted by Jan Eryk Umiastowski, Cegedim Chief Investment Officer and Head of Investor Relations.Cegedim's annual results presentation is available at:



Contact numbers:   France: +33(0)1 70 48 01 66   Access code:
USA: +1 646 254 3365


    UK and other: +44 (0)20 7784 1036    

March 5, 2013 - 11:30 am

  • SFAF meeting

May 6, 2013 (after the stock market closes)

  • 2013 Q1 Revenue announcement

July 30, 2013 (after the stock market closes)

  • 2013 Q2 Revenue announcement

September 19, 2013 (after the stock market closes)

  • 2013 H1 Results announcement

September 20, 2013

  • SFAF Meeting

November 7, 2013 (after the stock market closes)

  • 2013 Q3 Revenues announcement

Additional information

The Audit Committee met on March 1st, 2013. The Board of Directors and the Auditors met on March 4, 2013, to approve 2012 consolidated financial statements. Audit procedures have been performed and the 2012 Full-year statutory auditors' report on the financial statements is forthcoming.

The financial information presented in this press release comes from Cegedim Full-year consolidated financial statements and is fully available on the 2012 Reference Document at www.cegedim.com/finance as of March 5, 2013.

A presentation of Cegedim 2012 Full-year results will also be available on the website:


  • Balance sheet


In thousand of euros   12/31/2012   12/31/2011
Goodwill on acquisition   613,727   725,058
Development costs26,40824,446
Trademarks, patents--
Other intangible fixed assets   183,714   167,002
Intangible fixed assets210,122191,448
Other tangible fixed assets33,34335,958
Construction work in progress   2,192   2,594
Tangible fixed assets41,69044,108
Equity investments544443
Other long-term investments   11,445   9,637
Long-term investments - excluding equity shares in equity method companies13,90611,480
Equity shares in equity method companies8,1457,645
Government - Deferred tax57,85548,093
Accounts receivable : Long-term portion15,90914,498
Other receivables : Long-term portion   726   651
Non-current assets962,0781,042,982
Services in progress188305
Advances and deposits received on orders9711,151
Accounts receivable : Short-term portion215,223222,350
Unpaid, called-up capital--
Other receivables : Short-term portion38,69625,778
Cash equivalents3,86214,041
Prepaid expenses   16,881   17,347
Current assets   326,219   350,334
Total assets   1,288,297   1,393,316

Equity and Liabilities

In thousand of euros   12/31/2012   12/31/2011
Share capital   13,337   13,337
Issue premium185,561185,562
Group reserves297,712263,439
Group exchange reserves-238-238
Group exchange gains/losses13,73621,058
Group earnings-85,35132,580
Investment subsidies--
Regulated provisions   -   -
Shareholders' equity, Group share424,757515,737
Minority interests (reserves)418407
Minority interests (earnings)   89   90
Minority interests   507   497
Shareholders' equity425,263516,234
Long-term financial liabilities457,103483,744
Long-term financial instruments13,20714,094
Deferred tax liabilities13,61712,862
Non-current provisions29,61525,154
Other non-current liabilities   3,562   7,142
Non-current liabilities517,104542,996
Short-term financial liabilities72,60951,871
Short-term financial instruments1327
Accounts payable and related accounts91,09292,079
Tax and social liabilities123,872119,517
Other current liabilities   53,810   65,516
Current liabilities   345,930   334,085
Total Liabilities   1,288,297   1,393,316
  • Income statement


In thousand of euros   12/31/2012   12/31/2011
Revenue   921,773   911,463
Other operating activities revenue--
Capitalized production48,41947,137
Purchases used-111,513-105,648
External expenses-234,734-240,184
Payroll costs-449,821-442,231
Allocations to and reversals of provisions-5,424-3,886
Change in inventories of products in progress and finished products-125101
Other operating income and expenses   -276   -1,224
Depreciation expenses   -63,522   -66,523
Operating income from continuing operations90,12083,905
Impairment of goodwill-115,000-
Exceptional operating income and expenses   -9,886   -7,983
Other exceptional operating income and expenses   -124,886   -7,983
Operating income-34,76675,922
Income from cash and cash equivalents7275,487
Gross cost of financial debt-33,750-36,433
Other financial income and expenses   -11,096 
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