Cegedim SA: A Robust Growth Of 4.3% In 2009

PARIS--(Marketwire - February 11, 2010) -

Information on Full-Year Revenues at December 31, 2009

(IFRS - Regulated Information - Not Audited)

A robust growth of 4.3% in 2009

Cegedim, a global technology and services company specializing in the healthcare field, generated consolidated FY 2009 revenues of EUR 874 million, giving organic growth* of 4.3% compared with 2008 and a 3.0% increase on a reported basis.

+-------------------------+---------+---------+--------------------+------+ |€ thousands | 2009 | 2008 | Change 2009 / 2008| | +-------------------------+---------+---------+--------------------+------+ |Reported | Organic*| | | | +-------------------------+---------+---------+--------------------+------+ |CRM and strategic data | 487,002| 492,620| -1.1%| -0.1%| +-------------------------+---------+---------+--------------------+------+ | Healthcare professionals| 271,053| 250,214| 8.3%| 10.7%| +-------------------------+---------+---------+--------------------+------+ |Assurances and services | 116,017| 105,743| 9.7%| 9.7%| +-------------------------+---------+---------+--------------------+------+ |Group | 874,072| 848,577| 3.0%| 4.3%| +-------------------------+---------+---------+--------------------+------+ +-------------------------+---------+---------+--------------------+------+ 

* comparable structure and exchange rates

The Group’s fundamentals remain solid despite the crisis and a negative exchange rate impact of EUR 7.9 million. The focus on and renewed vitality of healthcare industries, strongly recurring revenues and complementary regional positions add up to a sustainable vision in the near future. The quality of Cegedim’s R&D and the new impetus given by the Dendrite acquisition also help ensure positive momentum for the future. From 2009 onwards, the Group is confident that these qualities will allow it to consolidate its operating margin.

Breakdown of 2009 revenues by currency

+-------------------------+-----+-----------+------------+----------+-----+ |% | Euro| Pound | Europe | Dollar US| RoW| +-------------------------+-----+-----------+------------+----------+-----+ | | €| Sterling £| ex. £ and €| $| | +-------------------------+-----+-----------+------------+----------+-----+ |CRM and strategic data | 51%| 4%| 9%| 24%| 12%| +-------------------------+-----+-----------+------------+----------+-----+ | Healthcare professionals| 79%| 21%| 0%| 0%| 0%| +-------------------------+-----+-----------+------------+----------+-----+ |Assurances and services | 99%| 0%| 1%| 0%| 0%| +-------------------------+-----+-----------+------------+----------+-----+ |Group | 66%| 9%| 5%| 13%| 7%| +-------------------------+-----+-----------+------------+----------+-----+ +-------------------------+-----+-----------+------------+----------+-----+ 

Fourth-quarter sales amounted to EUR 242 million, giving organic growth* of 2.5% and 0.2% growth on a reported basis.

CRM and strategic data

FY 2009 revenues came to EUR 487 million, stable on an organic* basis and a 1.1% drop on a reported basis. Exchange rates, principally the EUR/USD and EUR/GBP, had a negative impact of EUR 1.6 million.

Unlike in previous years, December did not see a surge in orders at the “strategic data” division, despite an impressive late-summer rebound. Sector revenues thus fell short of Group forecasts, including a 1.1% organic* decline in the fourth quarter.

Overall, 2009 saw a number of successes. The successful integration of Dendrite came to a close and the final stage of synergies, along with the R&D optimization. Two and a half years after this major acquisition, the Group maintains its market share in the USA, its long-standing leadership in Europe, and posts very robust growth in the emerging regions that hold the most promise for the future, i.e. Eastern Europe, Turkey, Asia and Latin America.

Firm in the belief that constant innovation is the only way to anticipate its customer needs, the Group continues to develop its product portfolio. Some examples include a ramp-up of efforts in counterfeit drug detection in the USA and new offerings in Europe in the pharmaceutical sector’s rapidly growing OTC segment. This continuous renewal has also produced the new 5.0 version of CRM Mobile Intelligence and a version for BlackBerry®, both of which have been particularly well received.

Healthcare professionals

FY 2009 revenues amounted to EUR 271 million, a 10.7% organic increase* and a 8.3% reported increase. Exchange rates had a negative impact of EUR 6.3 million, due notably to the euro’s appreciation against sterling.

Fourth-quarter sales rose 1.7% in organic* terms and 0.9% on a reported basis, wrapping up a brilliant performance in 2009. The accomplishment owed much to strong sales at the doctor and paramedical software businesses in France, pharmacist and doctor software in the UK and an expansion of the Banque Claude Bernard database for assistance in prescribing and administering drugs.

Throughout 2009 the Group continued to strengthen international synergies among the various entities in this sector, particularly at the technical level, in order to maintain its technological lead and service quality.

This sector’s performance was also driven by Cegelease and its effective policy of divesting contracts which exceptionally increased sales, without damaging the Group’s balance sheet.

Assurances and services

FY 2009 revenues rose 9.7% in both organic terms* and reported basis to ÂEUR 116 million.

Following a summer lull in license sales, fourth-quarter revenues shot up 22% in both organic* and reported terms. The Group generated strong growth in software sales for the insurance and mutual insurance markets in the fourth quarter with the success of its new “Activ’Infinite” offering.

The division’s hugely successful flow management platforms are also growing more and more popular.

It is also worth noting the strong development of the Cegedim SRH business - the payroll and HR outsourcing services specialist - which grew by around 29% over the full year.

Important transactions and events in the fourth quarter of 2009 and post closing events

On December 15, 2009, the Group successfully completed the EUR 180.5 million capital increase with preferential subscription rights. The rights issue was 129% subscribed. The funds raised and the addition of the FSI as a 15% shareholder give Cegedim considerable resources to reinvigorate its opportunistic external growth strategy while at the same time significantly reinforcing its capital base.

The Group plans to carry out a series of medium-sized acquisitions aimed, in particular, at bolstering its position in its first two sectors of activity.

To this end, the Group acquired pharmacy management software publisher Pharmacie Gestion Informatique (PGI) on October 30, 2009. A family company founded in 1993, PGI has a complete range of products for French pharmacies and a strong presence in Brittany. The acquired businesses generate annual revenues of over EUR 1 million. They will be consolidated over two months in 2009. The transaction was finalized by internal financing.

Moreover, the Group acquired on January 7, 2010 the leading US healthcare data provider SK&A Information Services, Inc. (SK&A). This acquisition complements and strengthens its Cegedim Dendrite Business Unit existing US OneKey offerings. Founded twenty-six years ago, SK&A researches and maintains contact profiling information for over two million healthcare practitioners, including 800,000-plus prescribers. SK&A offers the only database of 100% telephone-verified email addresses for US prescribers and professionals working at an active healthcare business site. The acquired businesses generate annual revenues of about $15 million. The transaction was finalized by internal financing.

According to the agreements signed by the parties, in both of these deals, all other terms remain confidential.

Financial position

Key financial ratios show a sound financial position that will enable the Group to respect its covenants as of December 31, 2009 and to meet its upcoming partial debt repayment deadlines of EUR 29.5 million and $17 million per half-year. Furthermore, owing to the EUR 180.5 million capital increase, the Group can confidently envisage a series of targeted acquisitions in its core businesses while simultaneously reinforcing its capital base.

2009 profitability

Even though revenues were just shy of estimates, the Group is maintaining its 2009 target for operating margin consolidation as a result of recent and ongoing reorganization efforts.

2010 outlook

Because of its highly recurring revenues, dynamic sales teams and increasingly comprehensive range of services, Cegedim expects a slight organic* increase in 2010 revenues.

Furthermore, the cost-cutting policies implemented in 2008 and extended into 2009 are likely to have a positive impact on 2010 margins.

Calendar

April 13, 2010 after the market closes: full-year 2009 results

April 14, 2010 at 11:30 a.m.: SFAF analyst meeting at Cegedim’s corporate offices

May 6, 2010 after the market closes: Q1 2010 revenues

August 5, 2010 after the market closes: Q2 2010 revenues

September 23, 2010 after the market closes: H1 2010 results

September 24, 2010: SFAF analyst meeting

November 15, 2010 after the market closes: Q3 2010 revenues

For more information, please visit www.cegedim.fr/finance

APPENDICES

Breakdown of revenues by sector and by quarter

FY 2009

+----------------+------------------+------------------+------------------+ | € thousands |CRM and strategic |Healthcare |Assurances and | | |data |professionals |services | +----------------+------------------+------------------+------------------+ | First quarter | 115,568| 66,137| 26,957| +----------------+------------------+------------------+------------------+ | Second quarter| 119,579| 74,625| 31,041| +----------------+------------------+------------------+------------------+ | Third quarter | 115,972| 59,216| 22,829| +----------------+------------------+------------------+------------------+ | Fourth quarter| 135,883| 71,075| 35,190| +----------------+------------------+------------------+------------------+ | Total | 487,002| 271,053| 116,017| +----------------+------------------+------------------+------------------+ +----------------+-------------+ | € thousands | Total Group| | | | +----------------+-------------+ | First quarter | 208,662| +----------------+-------------+ | Second quarter| 225,244| +----------------+-------------+ | Third quarter | 198,018| +----------------+-------------+ | Fourth quarter| 242,148| +----------------+-------------+ | Total | 874,072| +----------------+-------------+ 

FY 2008

+----------------+------------------+------------------+------------------+ | € thousands |CRM and strategic |Healthcare |Assurances and | | |data |professionals |services | +----------------+------------------+------------------+------------------+ | First quarter | 115,764| 48,684| 25,379| +----------------+------------------+------------------+------------------+ | Second quarter| 120,816| 76,111| 27,234| +----------------+------------------+------------------+------------------+ | Third quarter | 113,660| 55,000| 24,333| +----------------+------------------+------------------+------------------+ | Fourth quarter| 142,380| 70,419| 28,797| +----------------+------------------+------------------+------------------+ | Total | 492,620| 250,214| 105,743| +----------------+------------------+------------------+------------------+ +----------------+-------------+ | € thousands | Total Group| | | | +----------------+-------------+ | First quarter | 189,827| +----------------+-------------+ | Second quarter| 224,161| +----------------+-------------+ | Third quarter | 192,993| +----------------+-------------+ | Fourth quarter| 241,596| +----------------+-------------+ | Total | 848,577| +----------------+-------------+ 

About Cegedim: Founded in 1969, Cegedim is a global technology and services company specializing in the healthcare field. Cegedim supplies services, technological tools, specialized software, data flow management services and databases. Its offerings are targeted notably at healthcare industries, life sciences companies, healthcare professionals and insurance companies. The world leader in life sciences CRM, Cegedim is also one of the leading suppliers of strategic healthcare industry data. Cegedim employs 8,600 people in more than 80 countries and generated revenue of EUR 874 million in 2009. Cegedim SA is listed in Paris (EURONEXT: CGM). To learn more, please visit: www.cegedim.com

This information is provided by HUGIN