11/2020 Company Presentation k - Synchronizing healthcare - cgm.com
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11/2020
Company Presentation
k
Michael Rauch, CFO
Claudia Thomé, Head of IR
Synchronizing
healthcare
Disclaimer
The information provided in this presentation pertaining to CompuGroup Medical SE & Co. KGaA (the "Company"), comprise the
written materials/slides for presentations or discussions on the occasion of an investor conference, meeting or conference call
(“Meeting"). Whilst all reasonable care has been taken to ensure that the information and facts stated herein as well as oral
statements made in the Meeting are accurate and that the opinions and expectations contained herein and orally received during
the Meeting are fair and reasonable, no representation or warranty, express or implied, is given by or on behalf of the Company,
any of its board members, or any other person as to the accuracy or completeness of the information and/or opinions and no
liability as to the accuracy of such information and/or opinions is accepted. The information provided in this presentation as well
as during the Meeting contain forward looking statements which involve risks and uncertainties. These forward-looking
statements speak only as of the date of the documents and are based on numerous assumptions which may or may not prove to
be correct. The actual performance and results of the business of the Company could differ materially from the performance and
results discussed in this document or in any other information received during the Meeting. Except as required by law, the
Company undertakes no obligation to update or revise publicly any forward-looking statements or other information contained
herein or received during the Meeting whether as a result of new information, future events or otherwise, after the date on which
the statements are made or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance
on forward-looking statements or financial projections. The information contained in this presentation and/or received during the
Meeting does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase
or subscribe for, any shares in the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be
relied on in connection with, any contract or investment decision in relation thereto.
2 November 2020 Company presentation
Our vision
Nobody should suffer or die
because at some point
medical information was missing.
3 November 2020 Company presentation
The life-saving capabilities of connecting and synchronizing
CGM is providing
information systems & services, ~30,000
connectivity products
to doctors, hospitals, pharmacies, patients …
DEATHS PER YEAR
due to adverse drug
reactions in Germany
4 November 2020 Company presentation
More than 1.5 million professional users of our products worldwide
Hospitals
Labs
Patients
Payers Our unique Revenues (2019)
Physicians
Pharmacists
eHealth
customer
base
€746m
EBITDA (2019)
€178m
Dentists
Rehab & Care
EBITDA pro forma (2019)
Industry
Institutions €198m
Employees (July 2020)
Locations in 18 countries
>6,100
Products in 56 countries
5 November 2020 Company presentation
Our segments cover essential parts of the patient journey
AMBULATORY PHARMACY
INFORMATION INFORMATION
SYSTEMS SYSTEMS
Data available anytime for Enabling responsible
a better and quicker consultations,
overview, resulting in optimal processes and
more time for the patients economic success
MISSION
“More time for
HOSPITAL what is important:
CONSUMER & HEALTH
INFORMATION the patient.” MANAGEMENT
SYSTEMS INFORMATION
Intelligent management
for quality, efficiency and
SYSTEMS
growth Smart solutions for patient empowerment
based on personal health record platform
Paperless data management and immediate access to important information for with high data security
smooth workflows resulting in more time for employees
6 November 2020 Company presentation
Successfully steering through the COVID-19 pandemic
• #1 priority: Health & safety of CGM
employees and of our customers
• Full service support to our customers
(doctors, pharmacies, hospitals)
• Extensive hotline support and field service
• New products and services
7 November 2020 Company presentation
Benefitting from forward looking R&D in previous years during COVID-19
Mobile practice management Telemonitoring Video consultation
Offering TELEMED Mobile Praxis Relieving hospitals with telesystems Massive increase in demand with
Center solution free of charge until for monitoring patients with infection ~90,000 registrations for CLICKDOC
end of June in home quarantine after inpatient video consultation within weeks
treatment
Enabling practice teams to carry out Protecting doctors, practice teams
admin tasks from home, i.e. Protecting medical and nursing staff and other patients from risk of
reimbursement & accounting infection by patients suspected of
Recording vital parameters being infected with COVID-19
Accessing practice IT system via wirelessly, transmitting to
Mobile Praxis Center meets highest practitioners and immediately
data protection standards alerting in case of emergency
8 November 2020 Company presentation
Telematics Infrastructure – The next level in German healthcare digitization
99.9% 1st >6,000 1st
Stable and resilient mover orders in KIM
TI connector e-Health connector pharmacy segment provider
99.9% of CGM TI connectors CGM connector approved by 1st mover in TI for pharmacies. CGM KIM (secure TI email)
stayed connected during the TI gematik in July. Upgrade available Rollout started in July. approved as 1st provider by
outage in May. for all ~56k customers. > 6k orders received by CGM Lauer gematik in June. Rollout has
and reseller partners by now. started.
This is attributable to our Upgrade enables Installations picking up at KIM is mandatory for the digital
intensive R&D efforts & thorough Value added TI services increasing speed. transfer of relevant patient
testing of our connector hard- and TI for pharmacies documents like the future e-sick
software. notice.
9 November 2020 Company presentation
Excellent start for major HIS transaction with synergies above expectations
2 in Germany
in DACH
in public HIS Spain
CGM HIS 2019 Medico/SHA Selene 2019 pro-forma combined
#hospitals* Spain #hospitals #hospitals*
71 ≈15% 237 308
≈70%
DACH
+ ≈85%
= ≈75%
DACH
Germany
Revenues EBITDA Revenues EBITDA Revenues EBITDA
(€m) 136 margin 14% (€m) 74 margin 18% (€m) 210 margin 15%
Q3/20 first fully consolidated quarter with revenues of €21m well above synergy plan
*German HIS portfolio includes 71 acute clinics & 483 rehab clinics.
10 November 2020 Company presentationStepping up digital initiatives across the group in Q3/2020
AIS PCS
CLICKDOC video consultations Digitizing the patient journey
• Converting registrations into active users and turning • Cooperation between CLICKDOC and
active users into paying customers IhreApotheken.de, representing > 7k pharmacies
• > 8k paying healthcare providers • Creating open and connected healthcare eco-system
• Expected revenue run-rate (2022ff): low double-digit • Patients redeem prescriptions in selected pharmacy
million-euro via CLICKDOC app within a few hours
HIS CHS
Hospital Future Act Digital health apps
• > 4bn government package to drive digitization in • Government intiative to include digital health apps in
German hospitals approved standard collective healthcare
• Focus on electronic medication, patient portals, • CGM early mover with prescription assistance for
decision support systems, speech recognition, doctors to find the right app for their patients
emergency departments and IT security • CLICKDOC to become the default patient destination
• CGM HIS operations in prime position to benefit from for digital healthcare
mid-2021 onwards post-closing of major transaction • Increased investments for integrated health platform
11 November 2020 Company presentationGROUP
FINANCIALS
12Record quarter fueled by TI rollout and HIS acquisition
€231m €135m €67m 29% €0.71 €31.8m
(+30%yoy) (+16%yoy) (+42%yoy) (+2ppt) (PY: €0.51) (>+100%yoy)
Revenue Recurring EBITDA Margin EPS FCF
Revenue
Outstanding quarterly performance on all dimensions
EBITDA, EPS and FCF adjusted, EPS diluted
13 November 2020 Company presentationOrganic revenue growth of 17% due to TI rollout
250 +30%
Total
€231m
200
Q3/20
+16%
€178m Organic
150 +17%
growth
58% Organic
100 66% growth +1%
ex TI
50
Thereof
recurring
0
Q3/19 Q3/20
14 November 2020 Company presentationRecord revenues and EBITDA boost
€m
€4m €231m
€21m
€27m
€178m
EBITDA +42%, margin at 29% (up 2ppts)
• Excellent start of HIS acquisition, realizing first revenue synergies
• TI rollout fully on track
15 November 2020 Company presentationExcellent cashflow and low leverage post share placement and HIS acquisition
FCF well on track towards FY guidance Net debt significantly reduced
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Q1/20 Q2/20 Q3/20 9M/20 FY/19 9M/20
Leverage1) 2.4x 1.3x
1) Leverage = Net debt (liabilities to banks and financial liabilities (incl. leasing liabilities according to IFRS 16) ./. cash and cash equivalents (with the exception of accounts under third-party management)) / EBITDA
adjusted/pro forma (LTM) plus pro rata EBITDA of newly acquired companies
16 November 2020 Company presentationPreparing for further growth ambitions
Favourable funding conditions Successful share placement New legal form
Average 5y Investment Grade Yield
2%
New 5y
10% placement June 2020 Shareholders / AGM
facility
Jan 2020 9% treasury shares CompuGroup
Medical
1% 1% capital increase Management SE
CompuGroup
Cash proceeds €340m Medical SE & Co. KGaA
0%
Jan 2019 Sept 2020 AIS PCS HIS CHS others
► Additional headroom for further strategic steps
€400m €1000m ► Improved financial position – equity ratio now >40%
► Preserving the entrepreneurial culture and perspective
17 November 2020 Company presentationBuilding on fast deleveraging competence
Recent larger acquisitions Leverage
4x
QUALIZORG 2019 | ~€10m 3.5x
3x 2.7x
MEDISTAR
DISTRIBUTORS 2019 | ~€25m
2x 1.7x
EPSILOG,
H&S
2019 | ~€80m 1.3x
1x
0.6x
MEDICO, SHA,
SELENE 2020 | ~€200m
0x
2014 2016 2018 Jun 20 Sep 20
post incl.
placement largest
acquisition
18 November 2020 Company presentationGUIDANCE 19
Guidance unchanged versus increase as of August 2020
Updated guidance Updated guidance
€m (Aug 6, 2020) (Aug 6, 2020)
Group AIS
revenues 820 – 860 revenues 470 – 490
Adj. PCS
EBITDA
205 – 220 revenues
124 – 134
Segments
Organic growth
(group revenues in %) 2–6 HIS
Recurring revenue revenues 180 – 188
(in % of total revenues) > 60
Adj. EPS
(diluted, in €) 1.75 – 1.95 CHS
46 – 48
revenues
CAPEX
(in €m) 65 – 75
Adj. FCF*
(in €m) > 85
Guidance reflects management‘s best estimate based on the currently available information, particularly with regard to COVID-19 and the further rollout of Telematics Infrastructure.
*Adjusted FCF: Operating cashflow incl. interest less capex, adjusted for M&A, restructuring, option programs and other non-operative major one-off effects; updated guidance including dilution following share placement and capital increase in June
20 November 2020 Company presentationNext events 2021
FY 2020 Q1 2021 Q2 2021
Preliminary Financials Financials
Financials
March 25 May 19
2021
Feb 4 Annual May 6 AGM August 5
Report
FY 2020
21 November 2020 Company presentationCompuGroup Medical pole positioned to drive further digitization in healthcare
► Strong market positions across businesses & regions
NOBODY SHOULD ► Proven crisis-resilience with >60% of revenues recurring
SUFFER OR DIE ► Continuously investing in customer benefits (R&D spend)
BECAUSE
► Sustainable EBITDA growth with strong cash flow profile
AT SOME POINT
MEDICAL INFORMATION ► Excellent track record in value enhancing M&A
WAS MISSING ► Increased flexibility following successful share placement
► Further enhancing value generation & shareholder return
22 November 2020 Company presentationAPPENDIX 23
Managing Directors
Frank Gotthardt Frank Brecher Dr. Ralph Körfgen
Founder, Chairman & CEO Chief Technology Officer Ambulatory & Pharmacy
Information Systems
Dr. Eckart Pech Michael Rauch Hannes Reichl
Consumer & Health Chief Financial Officer Hospital Information
Information Systems Systems
24 November 2020 Company presentationCOVID-19 with diverse impact on our different HIS customers
ACUTE POST ACUTE MEDICAL LABS
Acute clinics Rehab clinics Private labs
University hospitals Social care facilities Laboratory chains
Ambulances Community & school doctors Clinical labs
Clinical logistics centers Mobile care providers
Clinical pharmacies Smart home providers
Patients & relatives
IMPACT
COVID
revenues
in % of
65% 20% 15%
25 November 2020 Company presentationSEGMENTS 26
Q3/20 – All segments with excellent performance
Ambulatory Pharmacy Hospital Consumer & Health
Information Information Information Management Information
Group Systems Systems Systems Systems
Revenue 56 % 15 % 24 % 5%
Share
Q3/20 yoy Q3/20 yoy Q3/20 yoy Q3/20 yoy Q3/20 yoy
Revenue 231.3 +30% 128.7 +19% 34.9 +26% 56.1 +80% 11.6 +5%
(€m)
EBITDA
adjusted 67.1 +42% 60.2 +53% 8.6 +30% 7.7 >+100% 1.9 -51%
(€m)
Margin 29% +2ppt 47% +10ppt 25% +1ppt 14% +4ppt 16% -19ppt
27 November 2020 Company presentationAMBULATORY
INFORMATION
SYSTEMS
28AIS P&L
Segment Q3/20 yoy Q3/20 yoy
financials Revenue
128.7 +19% • Excellent organic revenue growth +17% driven
(€m)
by completed TI software upgrade
EBITDA • Organic revenue ex TI -3%, versus strong PY
adjusted 60.2 +53%
(€m) (Win 10 & ELGA) and COVID-19 (US & dental)
• Recurring revenues +4%, representing 63% of
Margin 47% +10ppt
total revenues
• Adjusted EBITDA +53% yoy and margin up
10ppts due to higher return of TI upgrade
+4%
63% yoy
Recurring revenue Recurring
revenue
29 November 2020 Company presentationPHARMACY
INFORMATION
SYSTEMS
30PCS P&L
Segment Q3/20 yoy Q3/20 yoy
financials Revenue Strong organic revenue growth of +26%,
(€m)
34.9 +26% •
supported by first time pharmacy TI rollout
EBITDA • Org. revenue growth ex TI of +6% reflects
adjusted 8.6 +30%
(€m) strength of underlying biz despite pandemic
• Adjusted EBITDA in line with TI growth
Margin 25% +1ppt
Recurring
revenue
53% +6%
yoy
Recurring
revenue
31 November 2020 Company presentationHOSPITAL
INFORMATION
SYSTEMS
32 Company presentationHIS P&L
Segment Q3/20 yoy Q3/20 yoy
financials Revenue First time consolidation of largest acquisition
(€m) 56.1 +80% •
leads to +80% revenue jump
EBITDA • Excellent rebound post softer Q2 with +10%
adjusted 7.7 >100%
(€m) organic revenue growth
• Acquisition of Cerner assets with €21m
Margin 14% +4ppt
revenue well above synergy plan
• Adjusted EBITDA up significantly yoy and
margin up 4ppts
+69%
60% yoy
Recurring revenue Recurring
revenue
33 November 2020 Company presentationCONSUMER &
HEALTH
MANAGEMENT
INFORMATION
SYSTEMS
34CHS P&L
Segment Q3/20 yoy Q3/20 yoy
financials Revenue
+5% Organic revenue growth of 10% mainly
11.6 •
(€m)
driven by German Intermedix business
EBITDA • First proof point for consumerization with
adjusted 1.9 -51%
(€m) launch of digital health apps platform
• Adjusted EBITDA impacted mainly by
Margin 16% -19ppt increased R&D investments
+20%
13% yoy
Recurring Recurring
revenue revenue
35 November 2020 Company presentationFurther increasing transparency from 2021 onwards
AIS
TI
Consumerization
Bundling TI
business
Datafication CHS
IT security
PCS
TI
• Further aligning management responsibility and reporting
• Increasing visibility of AIS and PCS underlying core business for investors
36 November 2020 Company presentationTHANK YOU
Claudia Thomé
Head of Investor Relations
T: +49 (0) 261 8000-7030
claudia.thome@cgm.com
CompuGroup Medical SE & Co. KGaA
Maria Trost 21 ISIN DE000A288904
56070 Koblenz WKN A28890
Germany Frankfurt Stock Exchange
E-Mail: investor@cgm.com MDAX / TecDAXYou can also read
