Information meeting 3 April 2018 2017 ANNUAL RESULTS 1 3 April - - PowerPoint PPT Presentation

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3 April 2018 2017 ANNUAL RESULTS

2017 Annual Results

Information meeting 3 April 2018

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3 April 2018 2017 ANNUAL RESULTS

• 1. Introduction

Thierry Chapusot

• 2. 2017 financial results

Jean-Yves Samson

• 3. Business developments & Outlook

Dominique Pautrat

• 4. Conclusion

Thierry Chapusot

Table of contents

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3 April 2018 2017 ANNUAL RESULTS

In France and Europe

Comparable trends throughout Europe

• Population aging :

 growth in healthcare demand,  without an increase in the number of doctors.

• Ensuring continuity in care across the patient pathway:

 managing the patient care process is a major healthcare priority.  to ensure this coordination and traceability the information flow must be

• ptimised between the different healthcare stakeholders, for both the

non-hospital and hospital segments

• New technologies are providing highly efficient solutions to address

these issues: with the growth in patient-related data, market players must

• ffer innovative solutions for organising and processing collected data.
• And while technology is indispensable to effectively integrate the human

dimension, the pharmacist in Europe is becoming THE coordinator of

• health. Their proximity to patients means they are more accessible and more
• ften consulted. For that reason, they are destined to assume an increasingly

active role in the patient care management process.

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Our global vision of healthcare

Pharmagest Group has been anticipating these trends for more than 5 years

• Offering a solution for the shortage of doctors: actively engaged in

research and development for telemedicine solutions.

• The priority of continuity in care for the patient pathway:

AXIGATE's acquisition contributes to continuity of care and improved information flows across both non-hospital and hospital segments.

Pharmagest is the only player offering a solution for structuring healthcare coordination across non-hospital and hospital segments to be rolled out in 2019.

• Organisational innovation: the Group has been working for several years
• n building its patient-centred technology infrastructure and services, a

dedicated global ecosystem where the pharmacist can legitimately be considered to fulfil a role as primary care provider and coordinator.

Pharmagest is the first company to propose a global "patient- centred" ecosystem through a healthcare platform to date unique in Europe.

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Our global vision of healthcare

A broad strategic vision for Europe

All of Pharmagest Group's acquisitions are focused on this ambition to become a key contributor to the transformation of the healthcare in France and Europe:

• SABCO
• SAILENDRA
• CAREMEDS / MULTIMEDS
• AXIGATE
• MACROSOFT

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Financial results 2017

2017 Annual Results

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2017 financial highlights

2017 Annual Results

113,5 128,4 146,8 2015 2016 2017

Revenue (€m)

18,8 20,6 23,1

2015 2016 2017

Net profit attributable to equity holders of the Parent

(€m)

+ 12.5 %

19 21,5 24,3

2015 2016 2017

Net profit (€m)

+ 13 % + 14.35 %

1,25 1,37 1,55

2015 2016 2017

Basic earnings per share (in €)

+ 12.7 %

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2017 revenue

2017 Annual Results

(€m)

2017 2016 Change Q1 35.42 30.46 + 16.30 % Q2 36.60 33.07 + 10.69 % Q3 35.24 30.00 + 8.46 % Q4 42.24 34.86 + 21.19 %

Annual Revenue

146.81 128.38 + 14.35 %

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Financial results

Profit and loss statement

(€m)

2017 2016 Change REVENUE 146.81 128.38 + 14.35 % OPERATING PROFIT 34.52 31.39 + 10 % NET PROFIT 24.25 21.46 + 13 % NET PROFIT ATTRIBUTABLE TO THE PARENT 23.13 20.57 + 12.5 % BASIC EARNINGS PER SHARE (en €) 1.55 1.37 + 12.7 %

2017 Annual Results

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2017 financial highlights by Division

2017 Annual Results

In € thousands

Revenue Operating profit Operating margin (%) Pharmacy Europe 101,953 23,999 23.54% Health and Social Care Facilities 14,863 6,578 44.26% Other e-Health & Fintech 29,990 3,942 13.14%

Total

146,806 34,519 23.51%

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Financial highlights by Division (IFRS 15)

2017 Annual Results

In € thousands

Revenue Operating profit Operating margin (%) in IFRS 15 Pharmacy Europe 101,731 23,879 23.47% Health and Social Care Facilities 14,863 6,578 44.26% Other e-Health & Fintech 12,986 3,847 29.63%

Total

129,580 34,304 26.47%

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3 April 2018 2017 ANNUAL RESULTS (€m)

• Dec. 2017
• Dec. 2016
• Dec. 2017
• Dec. 2016

NON-CURRENT ASSETS 84.37 66.75 SHAREHOLDERS' EQUITY 115.83 103.65 R&D 13.60 10.07 Attributable to the Parent 113.25 101.96 Goodwill 38.82 30.45 Non-current financial assets 19.08 15.04 NON-CURRENT LIABILITIES 21.96 8.18 Other non-current assets 12.87 11.19 Long-term debt 14.20 3.44 Other non-current liabilities 7.75 4.74 CURRENT ASSETS 90.16 83.94 Trade receivables 22.94 20.25 CURRENT LIABILITIES 36.74 38.87 Other current assets 11.51 8.53 Short-term debt 2.68 6.96 Cash & cash equivalents 27.58 27.57 Trade payables 9.56 8.20 Available-for-sale securities* 28.13 27.59 Other current liabilities 24.50 23.71

TOTAL 174.53 150.70 TOTAL 174.53 150.70

* and other financial assets

Financial results

Balance sheet

2017 Annual Results

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(€m)

Net cash at 31/12/2016 (**) 63.72

Cash flow + 28.57 Change in WCR

• 1.09

Operating investments (*)

• 7.94

Financial investments

• 10.54

Dividends

• 10.04

Borrowings + 9.64 Other financing activities + 0.36

Net cash at 31/12/2017 (**) 72.68

Cash flow highlights

2017 Annual Results

(*) Of which €5,864,000 for R&D (**) Of which available-for-sale securities (€28.13m) + non-current financial assets (€18.46 m) = €46.59m

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Capital expenditures for R&D

2017 Annual Results

In € thousands

2017 2016 Pharmacy Europe 2,868 1,993 Health and Social Care Facilities 752 231 e-Health Solutions 1,662 1,008 & Fintech 582 596

Total

5,864 3,828

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Ratios

2017 Annual Results

2015 2016 2017 Cash Flow €21.1m €23.96m €28.57m GEARING (*)

• 58.48 %
• 57.34 %
• 49.45%

ROE 21% 20.2% 20.4%

(*) net debt including available-for-sale securities and other financial assets

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2017 Annual Results

at 03/04/2017: share price of €33.76

Share price trends over the year

03.04.2017 => 26.03.2018 - Source - BOURSORAMA at 26/03/2018 : share price of €53.50 +58.47%

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Pharmacy France

• Good growth for equipment sales

and market share gains.

• Growth of recurrent revenue.
• Success
• f
• ur

comprehensive pharmacy management package (LMO).

• The "Patient-Centred" strategy has

started to deliver results.

• An excellent business performance

in Belgium, with two major contracts with the MULTIPHARMA and COOP networks.

2017 revenue: +3.9% to €101.95m Representing 69.5%

• f total Group revenue

Solutions for Pharmacy Division Europe - 2017

2017 operating profit: €23.999m + 1.13% / 2016

• The slower rise in profit for this

Division reflects the reorganisation and restructuring costs linked to the Group's international development.

• The

profit margin registered further gains in line with growth in sales.

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Retirement Homes

Health and Social Care Facilities Solutions Division - 2017

• The acquisition of AXIGATE: a

French Hospital Information Systems leader.

• On this basis, Pharmagest Group is

able to propose an original and exclusive solution covering both the health and social care facilities and non-hospital care pathway.

• Operating

Profit boosted by acquisitions, AXIGATE (07/2017) and DICSIT (03/2016).

• These entities market exclusively

high added-value services.

• On a pro forma basis, Operating

Profit was up 14.64%.

2017 revenue: +44.5% to €14.86m Representing 10.1%

• f total Group revenue

2017 operating profit: €6.578m + 64% / 2016

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Retirement Homes

AXIGATE FOCUS - With Vincent LECLERC - AXIGATE CHAIR-CEO

AXIGATE facilitates the shift away from a "hospital-centric" approach by integrating the hospital environment within a "patient- centred" paradigm.

• Providing

complete functional coverage: AXIGATE provides a comprehensive solution for managing hospital-based patient care.

• The only "Web Responsive" solution guaranteeing complete mobility for the

application on all devices (tablets, smartphones).

• A multi-establishment solution capable of managing through a single

database the patient pathway across the different hospital establishments at the territorial, and as applicable, the national level.

• With Pharmagest Group's backing, AXIGATE benefits from major financial
• support. It will be able to carry out the improvements of its offering, and notably

interconnecting all participants in the healthcare chain and developing a dedicated portal for patient allowing them to access their medical file in both non-hospital and hospital environments.

• Strong international potential: the global management capabilities of this

system (soon available in English), particularly for EMR will interest industrialised countries that are universally concerned by the healthcare economy challenges.

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e-Health Division Solutions & Fintech - 2017

• Positive

impacts from newly added companies:

 NOVIATEK,

innovative systems for home-based healthcare

 SAILENDRA,

artificial intelligence

 CAREMEDS/MULTIMEDS,

innovative solutions for medication compliance

2017 revenue: +16.3% to €11.58m Representing 7.9%

• f total Group revenue

2017 operating profit: €3.942m + 8.1% / 2016

• These Divisions are

in the launch phase for their

• fferings,

with at this stage a less favourable Product Mix (Fintech effect).

• Innovation

expenditures reducing profitably in the short term.

• An increase in the number
• f lease financing

providers connected to the NANCEO financing platform.

• A constantly growing

service offering combined with even better financial terms.

2017 revenue: +83.8% to €18.41m Representing 12.5%

• f total Group revenue

e-Health Solutions Fintech Global performance

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Outlook

Outlook H1 2018

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Pharmacy Europe Solutions Division

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Outlook - Pharmacy Europe Solutions Division

• Creation of a new sales force: Business Development Manager, Customer

Portfolio Manager, Consultants and Digital Equipment Manager => new recruitments in H1 2018.

• A new breakdown of solutions and services.
• Objectives:

 making the offering easier to understand and renewing promotional initiatives.  achieving competitive differentiation.  developing Pharmacy Europe's sales.

Bolstering business momentum.

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• The Italian leader in IT equipment and services for pharmacy wholesalers-

distributors.

• MACROSOFT recently rolled out an innovative software solution for Italian

pharmacies.

• Creation of Pharmagest Italia, the new subsidiary of the Pharmacy

Division - Europe Solutions.

• Objective: equip 20% of the Italian pharmacy market within five years.
• An acquisition in line with the Group's strategy for building a dedicated

global ecosystem at the European level.

FOCUS: Pharmagest is continuing its European development and has entered Italy => acquisition of a 60% majority stake in the capital of MACROSOFT Holding.

Outlook - Pharmacy Europe Solutions Division

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Outlook - Pharmacy Europe Solutions Division

FOCUS: the creation of Pharmagest Italia

• Contributing its expertise and experience in marketing information

management solutions to pharmacies.

• Supporting Pharmagest Italia in creating a network of agencies capable
• f adapting to the scalability of its economic model.
• Sharing this vision of a "patient-centred" solution to address an emerging

need of Italian pharmacies. Synergy with the Pharmagest Group in market with strong growth potential

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Health and Social Care Facilities Solutions Division

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Outlook - Health and Social Care Facilities Solutions Division

• This patient-centred solution helps networks consolidate their information

more effectively.

• 100% cloud-based and responsive, this solution contributes to a smoother

patient management process between establishments. => A selling point for larger retirement home networks, and, even more so for public facilities attached to hospitals.

Deploying AXIGATE's significant expertise for solutions for elderly residential care facilities Developing in the connected objects sector

• Developing a special monitoring application for elderly residential care

facilities => this unique offering creates a competitive edge that will ensure substantial business for 2018.

• In line with this strategy, confirmation of the development of connected
• bjects for Hospital-at-Home programmes.

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SOIN ORDO ORDO ORDO ATCD PATHO

FOCUS: opportunities with regional hospital groups

Outlook - Health and Social Care Facilities Solutions Division

The Government requires all regional Hospital groups to adopt common reporting formats => a good opportunity for AXIGATE.

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e-Health Solutions Division

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Outlook - e-Health Solutions Division

• Supporting the development of medication dispensing applications in

Europe:

 accelerating synergies with CAREMEDS/MULTIMEDS.  optimising the deployment of medication dispensing application solutions

by creating a dedicated sales force (8 people).

 supporting the technological developments by integrating the robot of the

Japanese company YUYAMA.

• Within the framework of the Fragile Individuals programme (36 more

months at home):

 finalise the development of new NOVIACARE and CARELIB technological

solutions to market, these offerings starting in H1 2018

 support initiatives addressing social housing organisations and senior

housing operators for equipping living units.

DIGITAL COMMUNICATIONS FOR PHARMACIES

TELEMEDECINE Remote monitoring PATIENT COMPLIANCE FRAIL INDIVIDUALS

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Fintech Division

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• Accelerating business development by creating a channel of independents

using the Leasa by Nanceo platform.

• Continuation of studying European development projects.

Reinforcing the business momentum.

Outlook - Fintech Division

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Outlook

FOCUS ON OUR INTERNATIONAL DEVELOPMENT

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Our international development

Healthcare challenges in Europe:

• promoting good health for patients and people.
• supporting dynamic, efficient and profitable health systems.

Our "patient centred" approach for developing a coordinated ecosystem is making inroads in all European countries.

• the technology and innovation of our solutions ensures that all participants

in the healthcare chain are interconnected and can share patient information: greater efficiency for improving patient well-being and health.

• continuity in care spanning the non-hospital and hospital pathways

facilitates the patient care process while contributing to a global economic management of the healthcare system.

• the pharmacists' role in coordinating shared information guarantees greater

efficiency in the healthcare system.

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2017 Annual Results

Conclusion

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3 April 2018 2017 ANNUAL RESULTS

Conclusion

http://www.connexion.pharmagest.com/actualites/age nda-r16/Agenda-c5-r16/le-projet-e-nephro-de- pharmagest,-au-jt-de-france-2-x1-y303.html

The development of our "patient-centred" platform Today, this platform exists and functions.

• Possessing structured patient data, to safely and efficiently ensure an

improved patient management process.

• Giving and sharing the right information about the patient to all

healthcare professionals in a manner that is fully integrated with their work practices.

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Next key dates

Financial publications:

• Release of the 2017 Registration Document: end of April 2018
• 16 May 2018: Publication of Q1 revenue
• 9 August 2018: Publication of H1 revenue

Investor events:

• 28 June 2018: Annual General Meeting, Head Office

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Chief Executive Officer Dominique PAUTRAT dominique.pautrat@lacooperativewelcoop.com Shareholder and Investor Relations Jean-Yves SAMSON Tel.: +33 (0)3 83 15 90 67 - jean-yves.samson@lacooperativewelcoop.com Press Relations FIN’EXTENSO Isabelle APRILE Tel.: +33 (0)1 39 97 61 22 - i.aprile@finextenso.fr

Contacts

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