h1 2015 results - pharmagest · radical changes are taking place in the health universe. artificial...

H1 2015

RESULTS

Information meeting,

22 September 2015

1

1. Online healthcare – Thierry Chapusot

2. Financial results on 30 June, 2015 – Jean-Yves Samson

3. Business H1 2015 and Outlook for H2 –

Dominique Pautrat

4. Conclusion – Thierry Chapusot

22 September 2015 H1 2015 RESULTS 2

Table of contents

Major change in the health sector:

what it means for the future of

the PHARMAGEST Group

3

The online healthcare

revolution

4

Online healthcare

Radical change in the health system and the health economy involving all

stakeholders:

Healthcare professionals

Industry

Software developers

Finance bodies

CNOM White Paper, January 2015

Telehealth Online health services, information, training, social networks

Robotics

E-Health Health information systems (IS) Telemedicine

m-health

Connected objects, smart fabric

sensors…

Home automation tele-

monitoring, connected house, care in the home

technologies…

New technologies and digital

5

E-Health Online healthcare

A global issue

A global issue

In figures…

Number of connected objects

across the globe of French people

use connected

objects

of French are hoping to see

the development of connected

objects in items

of health

of invests in connected objects in 2013

concerning the health sector

In figures…

15 billion

9 billion

80 billion

6

Online healthcare

Radical changes are taking place in the health universe. Artificial intelligence will

play a major and decisive role in this new environment.

Leading pharmaceutical and digital technology companies are coming

together to pool their expertise and know-how.

One example is the strategic partnership between Sanofi and Google to improve

diabetes care.

The development of robotics in medical assistance and tele-surgery is

confirmed (remote surgery).

For example, on 6 July 2015 a patient with mitral valve insufficiency was operated on in

Rennes University hospital using a surgery robot. A first in France.

A global issue

It is excellent to see

groupings working in

online healthcare as it is

a field with huge

potential for therapeutic

monitoring and health

education, amongst

others" Le Moniteur des Pharmacies – May 2015

Isabelle ADENOT Chair of the Chamber of

Pharmacists (Ordre National des

Pharmaciens)

I am convinced that

France must embrace

technological innovation to

improve quality of life for

patients. This is the

challenge of developing

medical connected

objects. Speech during the symposium on "Compliance, autonomy and responsibility", 3 June 2015

Marisol TOURAINE Minister for Social Affairs, Health

and Women's Rights.

Online healthcare

2015 in France: increased awareness of online healthcare importance at all levels

The emergence of so

many digital tools and

connected objects is

also a potentially

profitable source of

innovation for

pharmacies. Les Échos – April 2015

Xavier PAVIE Director of the Institute for

Strategic Innovation and Services

at ESSEC Business School

7

Moniteur – May 2015

Online healthcare

Online healthcare makes headlines – Summer 2015

8

9

Online healthcare

CNOM White Paper, January 2015

Telehealth Online health services, information, training, social networks

Robotics

E-Health Health Information systems (IS)

Telemedicine

m-health

Connected objects, smart fabric

sensors

Home automation tele-monitoring,

connected house, care in the home technologies

PHARMAGEST Group innovation sectors

10

The PHARMAGEST Group's strategy for the past four years: be

positioned as a key player in this market

Online healthcare

The Group anticipated this change and is now in a position to respond to the

challenges of the market, having made the necessary investments:

• Development of predictive expert systems (artificial intelligence) to monitor

changes in patient health, through the DIATELIC subsidiary.

• Monitoring treatment compliance and increasing overall safety of

medication, with the DO-Pill SecuR™ smart pill dispenser (connected

object).

• Satebox (medical box) and connected objects through its KAPELSE

subsidiary.

• Ensuring the secure processing and confidentiality of personal health data

through its Datacenter and the hosting of health data (HHD) accreditations

granted in 2012 by the French Minister of Social Affairs and Health.

11

The Group's recognised expertise

Online healthcare

Project extending length of time people can be cared for at home

("36 mois de plus à domicile")

The PHARMAGEST Group was selected by the Lorraine region under the Pacte

Lorraine as an e-Health partner for this innovative programme, with other

companies in the industry (SMEs and start-ups), academics, stakeholders from the

medical world and local authorities.

Goal: Delay by 36 months an individual's transfer to an elderly care facility and

promote early detection of loss of independence.

The Lorraine Regional Council and the European Regional Development Fund

(ERDF) is providing a subsidy of €751,471 each (giving a total subsidy of

€1,502,942) to PHARMAGEST INTERACTIVE and its subsidiaries.

12

Online healthcare

Project extending length of time people can be cared for at home

("36 mois de plus à domicile")

Social networks

Pharmacist

Nurse

Biologist

Physiotherapist

Home carer services

Services

Coordination

Health

Care

Coordination

13

Online healthcare

The pharmacist's role: nurture human relations

In an environment where technology is increasingly important and building on their

close proximity to patients and easy access to them, pharmacists are ideally

positioned to support patients in their treatment path and coordinate relations with

other healthcare professionals, while nurturing the relation with the patient.

PHARMAGEST supplies pharmacists with the tools to:

• Save time on day-to-day management tasks in the pharmacy to be able to

devote more time to patients (LGPI®, My Pilot®, Sellen);

• Support patients (DO-Pill SecuR™, Compliance monitoring software, Ma

Pharmacie Mobile® (My Mobile Pharmacy app) / Marque Verte Mobile).

Financial results

on 30 June 2015

14

15

New configuration

• Solutions for Pharmacy Division – Europe which includes the Pharmacy

France and Pharmacy Belgium and Luxembourg Business Lines;

• Solutions for sanitary and medico-social establishments (encompassing

the Care Homes business operated by its subsidiary, MALTA

INFORMATIQUE);

• Solutions for e-Health Division, which includes the e-Pharma, e-Patients

and e-Connect Business Lines (the latter two were formerly within the scope

of the e-Health business line);

• Fintech Division. This new equipment leasing division has just been

established and aims to gain market share in financing sales of equipment

and services. It takes in the activities of the new subsidiary, NANCEO.

22 September 2015 H1 2015 RESULTS

16

H1 2015 key figures

FINANCIAL RESULTS

59.1

58.3

56.2

2013 2014 2015

Turnover (€m)

8.1

8.7

9.3

2013 2014 2015

Net profit (€m)

+7%

2.65 2.87

3.09

2013 2014 2015

Net earnings per share (in euros)

+8%

8 8.7 9.3

2013 2014 2015

Net profit attributable to equity holders

of the parent (€m)

+7%

*+4.5% restated for

Communication

Services

-4%*

17

€ millions H1 2015 H1 2014 Change Restated change*

Q1 27.04 28.82 - 6.2% + 5.3%

Q2 29.15 29.49 -1.2% + 3.8%

H1 2015 56.19 58.31 -3.6% + 4.5%

*Turnover restated for the "Communication Services" business

FINANCIAL RESULTS

H1 2015 turnover

89,1%

5.8%5.0%

Pharmacy Europe And. Sanitary e-Health

Contribution to turnover by business H1 2015

18

Financial results FINANCIAL RESULTS

Income statement

19

Financial results

In € millions H1 2015 H1 2014 CHANGE

TURNOVER 56.19 58.31 - 4%

OPERATING PROFIT 14.04 13.32 + 5%

NET PROFIT 9.29 8.68 + 7%

NET PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT 9.26 8.72 + 7%

NET EARNINGS PER SHARE 3.09 2.87 + 8%

FINANCIAL RESULTS

Balance Sheet In €M June 2015 Dec. 2014 June 2015 Dec. 2014

NON-CURRENT ASSETS 45.67 44.87 EQUITY CAPITAL 82.13 81.69

R&D 7.85 7.06 Of which group share 81.91 81.34

Goodwill 27.74 27.74

Other non-current assets 10.08 10.07 NON-CURRENT LIABILITIES 4.52 3.41

LT debts 0.34 1.04

Other non-current liabilities 4.18 2.38

CURRENT ASSETS 75.91 68.68

Accounts receivable 16.82 15.28 CURRENT LIABILITIES 34.93 28.44

Other current assets 6.42 5.69 ST debts 1.15 0.54

Cash 11.95 12.48 Trade accounts payable 6.47 6.30

Securities available for sale* 40.72 35.24 Other non-current liabilities 27.30 21.60

TOTAL 121.58 113.55 TOTAL 121.58 113.55

20

* And other financial assets

Financial results FINANCIAL RESULTS

(*) of which R&D €1,551 K

(**) of which Securities available for sale

Summary cash flow table

€ millions

Net cash 31/12/2014 (**) 47.51

Net cash provided by operating activities + 10.75

Change in WCR + 4.89

Investments (*) - 1.97

Dividends - 8.98

Loans - 0.49

Other financial operations +0.64

Net cash 30/06/2015 (**) 52.35

21

FINANCIAL RESULTS

On 30/06/2015, market capitalisation was €317 million.

On 15/09/2015, it stood at €348 million.

22

Market Capitalisation

Source : Boursorama

STOCK MARKET INFORMATION

23

Market capitalisation

The first 40 innovative European SMEs listed on the markets covered by

EnterNext were selected for this new label on the basis of their business,

financial and stock market performance.


PHARMAGEST INTERACTIVE SELECTED FOR TECH 40 LABEL

AND JOINS THE NEW ENTERNEXT TECH 40 EUROPEAN STOCK INDEX

A new index exclusively for Tech 40 companies that have distinguished

themselves through their technological, financial and stock-market success.

PHARMAGEST is now one

of the BioTech, Medtech

stocks.

24

Market capitalisation

Source: Euronext

5 August 2015: 5-for-1 stock split that reduces the share price from €1 to

€0.20.

The share capital is now divided into 15,174,125 shares at €0.20 each,

instead of the current 3,034,825 at €1 each.

New ISIN Code: FR 0012882389.

Note: stock split


Business H1 2015

and Outlook

25

26 26

Pharmacy France

Turnover rose 0.7%, on:

• Configuration Sales + 4.0%;

• Recurring revenue +2.7%;

• Products developed (licences and satellite offers) declined 20.9%

H1 2015 turnover: + 0.7% to €50.1 million

Accounts for 89.1% of the overall Group turnover

Solutions for Pharmacy Division – Europe

27

Patient focus:

Start of the roll-out phase for the Compliance monitoring

software (LSO)

• Goal: Roll-out to 100% of

customers by 31/12/2015;

• Integration of connected objects

offered by the Solutions for e-

Health Division;

Definitively positions PHARMAGEST INTERACTIVE as

the only software company

with the ability to offer a dedicated

Pharmacy software suite to pharmacists.

PHARMACY FRANCE BUSINESS LINE - Highlights Solutions for Pharmacy Division – Europe – Highlights

28

Pharmacy France = the Group's backbone to

• Generate synergies with the Group's other business lines and subsidiaries

• Ensure consistency with the capital expenditure of the other subsidiaries

DOMEDIC EUROPE and the DO-Pill SecuR™ smart pill dispenser, which is marketed to pharmacies by the Pharmacy business line's sales team;

MALTA INFORMATIQUE and Offidose 2.0: software to manage and schedule PDA (Preparation of Doses to be Administered) for 500 large pharmacies in France equipped with a pharmacy robot.

Pharmacy BeLux, which now distributes the mobile app, Ma Pharmacie Mobile (My Mobile Pharmacy app) / Marque Verte Mobile to its customers;

KAPELSE and SESAM-Vitale card readers, together with the Kap&Care terminal to update the cards;

Solutions for Pharmacy Division – Europe – Highlights

29

Pharmacy BeLux

• Development of the unit pricing module for residents of care homes, mandatory as of 1

September 2015.

• Roll-out of AssurPharma in 2015, with compliance certification for SABCO solutions to

send detailed receipt data electronically and securely to the patient's supplementary

insurance provider.

H1 characterised by the development and roll-out of

new features and new modules in Belgium and

Luxembourg

Belgium

• Development of Officine 2016, the new version of Officine II, delivering more

performance and connectivity with brand new features and modules: integrated

mobile apps, statistics, care home management, preparation of individual medicines,

supplier relations and patient monitoring…

Luxembourg

Solutions for Pharmacy Division – Europe – Highlights

30

New functions to streamline pharmacists' tasks

Tool for remote pharmacy management using

management dashboards update on a daily

basis.

Mobile version

Sellen Twist, the first robot between back and

front office.

Allows pharmacies to keep their counter space

and, with a minimum of set-up, to leverage all the

advantages of Sellen:

• save at least 15 sq. m of space,

• save time,

• improve service to customers.

Solutions for Pharmacy Division – Europe – Outlook

Consolidation of the innovative products offering:

• Roll-out of Farmamobile on the markets in Belgium and Luxembourg,

• Launch of Offiboard, a new application for mobiles and tablets to look up key

pharmacy data in real time,

• Introduction of Vitalink to share medication schedules between pharmacies and care

homes,

Objectives: to accelerate the acquisition of new customers and

establish the growing reputation of Sabco and the image of a

professional company serving pharmacists

• Commercial launch in the Grand Duchy of Luxembourg of Officine 2016, the new

version of Officine II, delivering more performance and connectivity with brand new

features and modules: integrated mobile apps, statistics, care home management,

preparation of individual medicines, supplier relations and patient monitoring...

Target: all Luxembourg customers (SABCO currently has a 44% market share)

31

Solutions for Pharmacy Division – Europe – Outlook

32

Care Homes

Significant organic growth and excellent sales momentum:

• Developed products (licenses and satellite offers) up 5.9%

• Recurring revenues to increase 42.5%.

H1 2015 turnover: €3.26 million, 11.3% growth

Accounts for 5.8% of the overall Group turnover

Solutions for sanitary and medico-social establishments

33

The first half of 2015 confirmed MALTA INFORMATIQUE as a leader in

its market

• The number of new sites signed continues to rise significantly with 100 new customers at

30 June 2015

− Installed base of more than 1,200 establishments,

− Market share greater than 10%.

• The roll-out of several major Group contracts continued in very good conditions.

• Malta Informatique also decided on a methodical strategy for the intermediate care facilities

and specialist care facilities market. They provide care for the disabled and they have

similar needs to care homes. Our potential market would increase by more than 2,000

sites in France.

Solutions for sanitary and medico-social establishments -

Highlights

34

Care Homes Commercial success boosted by software upgrades:

• TITAN INTENDANCE: a new offering for managing orders for medical devices for

care homes. MALTA INFORMATIQUE is positioned as the only operator in the market to

offer a system to manage electronic supplier prices and orders, which facilitates relations

with suppliers of medical devices. This new service was up and running in 43 sites in the

first half and is expected to be a resounding success.

• New and improved mobile features with the new tablet TITAN NOMADE module,

providing a valuable addition to the existing barcode traceability solution, TITAN

ZAPETTE. The module was developed at the end of 2014 and has been on the market

since early-2015. The reception has been very positive and more than 150 licences were

sold in the first half of 2015.

• Roll-out of the new TITAN DMP (personal medical record) module at the first

clients who will now be able to register for the DMP system. Developed in 2014 and on

the market since early-2015, the module can be used to create, input and consult

residents' personal medical records. Supported by the regional health boards in France,

demand should be strong in the coming months.


Highlights

35

Care Homes - Outlook

• The context remains favourable: 1,000 or more facilities not equipped, an active

software upgrade market;

• Thanks to the group's numerous contracts and the maturity of the marketing team,

MALTA INFORMATIQUE benefits from excellent commercial visibility that should allow

it to maintain strong growth in 2015 ;

• MALTA INFORMATIQUE is working on developing a new module, TITAN WEB

ENTOURAGE, designed for the extended families and friends of residents, close family,

care assistants and their trusted contacts. It will allow care homes to keep relevant

people informed about care for residents. The module is in development and will

constitute a relevant response to a very marked prominent market need.

MALTA INFORMATIQUE is confident of maintaining a good level of

organic growth and recurring revenues.


Outlook

36

Pharmaceutical

Companies

H1 2015 turnover: €2.8 million, 158.3%* growth

Accounts for 5% of the overall Group turnover

Solutions for e-Health Division

Revenue for this Division breaks down into:

• Product sales (connected objects, including DO-Pill SecuR™, e-health box

and readers);

• Recurring revenue (subscriptions for personal health data hosting,

interactive terminal services, artificial intelligence and others);

*restated for the "Communication Services" business

E-PHARMA Business Line

• Communication products and services revamped in response to the minimum

security requirements dictated by the French National Authority for Health (HAS) for

certification of dispensing software;

• Sales teams are more oriented towards an advice and support role, reflecting our new

tagline: « vos besoins sont différents de ceux des autres, notre accompagnement

aussi » ;

• Our canvassing drive concentrates on advanced or restricted-prescription products

that call for advice from the pharmacist at the point of dispensing and longitudinal

patient monitoring.

Solutions for e-Health Division - Highlights

Line-up for Pharma Business tailored to the far-reaching regulatory

changes in the sector

37

38

Recognition: The PHARMAGEST Group wins the first Business

France Silver Economy Award

The PHARMAGEST Group won first prize at the Awards held in June 2015 for its

innovative line-up of solutions to improve treatment compliance, and particularly for the

DO-Pill SecuR™ smart pill dispenser.

Organised by Business France to

promote the national and international

silver economy to facilitate stakeholders

and to promote their know-how in the

world market.

The Group also joined Business France on its stand at the China International Senior

Services Expo (CISSE) in May 2015 to showcase DO-Pill SecuR™.


39

PHARMAGEST Group is taking part in a number of trials that are now in

the operational phase

SATELOR / 36 MOIS DE PLUS A DOMICILE Objective: To develop a solution to provide a secure care path for patients with multiple

pathologies and/or losing independence in their homes.

Phase: Laboratory roll-out.

E-CHRONIC/E-NEPHRO Objective: Care programme for chronic renal failure at all stages of the illness.

Phase: Authorisations granted by the French Data Protection Agency (CNIL) to start the

patient registration phase.

PAERPA (Elderly at risk of losing their independence) Objective: Coordination between different health sectors to avoid risks of disrupting the

care pathway

Phase: Coordination with other healthcare professionals.

25 pill dispensers provided to elderly people approaching dependency.


40

KAPELSE, designer of innovative e-Health solutions

Telehealth

Medical tele-monitoring

Medical tele-assistance

Medico-social tele-assistance

Equipment of healthcare professionals

Digitisation and enhanced security of

administration.

Robust authentication to access tele-services

and shared records.

Patient follow-up.

Two target markets:

H1 2015: • June 2015 launch of eS-KAP-Ad: a new mobile terminal for medical auxiliaries;

• More than 12,000 SESAM-Vitale cards installed (bringing to 20,000 the number of

readers installed since the launch in May 2014);

• More than 3,500 subscriptions to interactive terminal services.


41

In a challenging environment, there are positive indicators for the e-Pharma

Business Line for this year-end:

• Combining the e-Pharma and e-Patients Business Lines under the banner of

the e-Health Division increases legibility and gives us the ability to offer more

cross-sector services to our pharmaceutical company clients;

• Roll-out of compliance monitoring software and the revamped treatment

follow-up service (medication reminders and text messages);

• The introduction of new, more high-tech treatments to the market require

advice and monitoring by a health professional to increase patient compliance;

• Increasingly frequent requests from pharmaceutical companies for our

"research and intelligence" activity.

Solutions for e-Health Division - Outlook

42

New artificial intelligence lab: Dialab

In view of:

• Favourable developments in trials involving the PHARMAGEST Group,

• The growing significance of connected health,

The PHARMAGEST Group will boost its expert system data analysis activity and

initiatives to generate predictive warnings for healthcare professionals, patients or their

carers.

Creation of a laboratory in DIATELIC,

the Group's specialist artificial intelligence subsidiary.


43

Continued expansion in the international market

In Asia (China and Japan) • We will consolidate the connections established during the CISSE Trade Fair;

• We are in discussions with Japanese companies regarding marketing DO-Pill

SecuR™.

In the United States • Participation in the 2015 MedStartUp programme organised by the Galien

Foundation and Business France. The initiative aims to establish long-term Franco-

American ties to reward innovative partnership projects in the pharmaceutical

industry, medical technology and e-Health.


44

H2 2015 projects:

• New Kap&Maj services for pharmacists,

• Launch of a new terminal for GPs, specialists and

midwives,

• 2 new development projects in telehealth.

Outlook:

• Maintain H1 growth levels,

• Address a new category of healthcare professionals,

• Be selected for a new telehealth project.

Maintain roll-out levels and market share gains for innovative solutions


45

Fintech Division – New expertise

With the formation in January 2015 of a new equipment leasing subsidiary, NANCEO, and a

number of other significant developments, the PHARMAGEST Group has gained a new

area of expertise:

• Giving it independence from other technology suppliers,

• Providing it with a margin on the provision of the technical services,

• Enabling the Group to propose the use of its technical infrastructure to other companies

as a white-label product.

Equipment financing market

The activity has yet to make any significant contribution to PHARMAGEST Group turnover.

NANCEO is now responsible for all sales by PHARMAGEST INTERACTIVE.

Conclusion

46

Conclusion

47

CONCLUSION

Management expects a positive outlook for PHARMAGEST Group through

• Acknowledging recent e-Health activity,

• Generating synergies between the different business lines for a return on

the investment made.

The Solutions for Pharmacy Division – Europe and Solutions for

sanitary and medico-social establishments management are confident

of H2 growth in line with that of H1.

The e-Health Division expects significant growth, especially its e-Connect

et e-Patients Business lines.

Regarding the Fintech Division, management expects an initial

contribution to the Group’s turnover in H2 2015.

Conclusion

48

The PHARMAGEST Group is maintaining its external growth policy by

exploring avenues – both in France and overseas – in the following

development areas:

• Services and technologies that it could offer to its pharmacist customers to

help them in their new advisory role;

• The technological areas that will enable the group to develop new products

or services to enhance the profitability of pharmacies and/or the efficiency

of health systems.

CONCLUSION

Upcoming dates

Financial publications:

12 November 2015: Q3 2015 turnover

49

Next key dates for investors:

7 and 8 October 2015: MidCap Event Paris

Managing Director

Dominique PAUTRAT

[email protected]

Analyst Investor Relations

Jean-Yves SAMSON

Tel.: 03 83 15 90 67 – [email protected]

Press Relations

FIN’EXTENSO

Isabelle APRILE

Tel. 01 39 97 61 22 - [email protected]

50

Contacts

mailto:[email protected]






h1 2015 results - pharmagest · radical changes are taking place in the health universe. artificial...

Documents