2016 Half-Year Results Information meeting, 12 September 2016 - - PowerPoint PPT Presentation

2016 Half-Year Results

Information meeting, 12 September 2016

• 1. H1 2016 Results

Jean-Yves SAMSON

• 2. The market in second-half 2016

Thierry CHAPUSOT

• 3. H2 2016 Outlook

Dominique PAUTRAT

• 4. Conclusion

Thierry CHAPUSOT

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Table of contents

12 September 2016 2016 HALF-YEAR RESULTS

Financial results as at 30 June 2016

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2016 Half-Year Results

12 September 2016 2016 HALF-YEAR RESULTS

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2016 key figures

Financial results

58.3 56.2 63.5 2014 2015 2016

Turnover (in €M)

+13.1%

8.7 9.3 10.5 2014 2015 2016

Net profit (in €M)

+12.5%

8.7 9.3 10 2014 2015 2016

Net profit attributable to equity holders of the parent

(in €M)

+8%

0.57 0.62 0.67 2014 2015 2016

Net earnings per share

Proforma following the share split by 5

+8%

€ millions

2016 2015 Change Q1 30.46 27.04 +12.65% Q2 33.07 29.15 +13.45%

Total first half

63.53 56.19 +13.07%

Financial results H1 2016 turnover

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78% 7.9% 7.4% 6.7%

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Financial results Financial results

Contribution to turnover Contribution to operating profit

76% 11.9% 11.3% Solutions for Pharmacy Division - Europe Solutions for medico-social establishments Division Solutions for e-Health Division FinTech Division

The performance of our growth drivers, namely the Solutions for sanitary and medico- social establishments and Solutions for e-Health Divisions, confirms the suitability of the PHARMAGEST Group’s diversification strategy.

Financial results Financial results Income statement

In € millions

H1 2016 H1 2015 Change TURNOVER 63.53 56.19 +13.1% OPERATING PROFIT 15.61 14.04 +11.2% NET PROFIT 10.45 9.29 +12.5% NET PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT 10.01 9.26 +8% NET EARNINGS PER SHARE

(in €)

0.67 0.62 +8%

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In € millions June 2016

• Dec. 2015

June 2016

• Dec. 2015

NON-CURRENT ASSETS 50.16 46.41 EQUITY CAPITAL 92.77 91.56 R&D 8.72 8.25 Of which group share 91.39 90.65 Goodwill 30.25 27.74 Other non-current assets 11.19 10.42 NON-CURRENT LIABILITIES 7.84 5.24 LT debts 3.78 1.10 Other non-current liabilities 4.06 4.14 CURRENT ASSETS 89.82 77.57 Accounts receivable 20.48 15.99 CURRENT LIABILITIES 39.37 27.19 Other current assets 7.09 6.45 ST debts 1.19 0.48 Cash 20.60 13.95 Trade accounts payable 8.62 6.70 Securities available for sale* 41.65 41.18 Other current liabilities 29.56 20.01

TOTAL 139.98 123.98 TOTAL 139.98 123.98

* And other financial assets

Financial results Financial results Balance sheet

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(*) of which R&D at €1,466 K (**) of which securities available for sale

€ millions

Net cash 31/12/2015 (**) 54.89

Net cash provided by operating activities +11.81 Change in WCR +5.67 Operating investment (*)

• 2.20

Financial investments

• 2.71

Dividends

• 9.10

Loans +2.87 Other financial operations +0.48

Net cash 30/06/2016 (**) 61.71

Financial results Summary cash flow table

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Source: Boursorama

Stock market information

Market capitalisation was €360.08 million on 23 March 2016. It was €409.70 million on 5 September 2016.

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Pharmacy France

Although turnover fell by a slight 1% relative to the same period in 2015, driven down by the negative stage of the rental contracts cycle in the first half, recurrent turnover was up 2.7%.

H1 2016 turnover: down 1% to €49.57 million Accounts for 78% of the Group's total turnover

Solutions for Pharmacy Division - Europe - H1 2016

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Care Homes

Solutions for sanitary and medico-social establishments

• H1 2016

H1 2016 turnover: €4.99 million, 52.96% growth Accounts for 7.85% of the Group's total turnover

• The number of customer sites rose (our installed base now totals 1,475 care

homes), including 136 new customers added in the first half, an increase of 26% year-on-year.

• It is important to note the conclusion at the start of the year of two major

hospital contracts for facilities with 500+ beds (in the gerontology and elderly residential care homes sector). The successful completion of these projects demonstrates our expertise and capacity to deliver complex projects.

Pharmaceutical companies

H1 2016 turnover: €4.71 million, 66.84% growth Accounts for 7.42% of the Group's total turnover

Solutions for e-Health Division - H1 2016

This Division's expertise breaks down into four areas:

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Collaborative Web applications for patient follow-up Hosting of Health Data Expert systems Internet of Things

Health software Creator of patient solutions

Fintech Division - H1 2016

H1 2016 turnover: €4.25 million Accounts for 6.70% of the Group's total turnover

Established in 2015, this Division includes the activities of our NANCEO subsidiary. After an encouraging first quarter (€1.68 million in turnover), Q2 confirms the Fintech Division's excellent performance with turnover totalling €2.58 million. This new Division aims to quickly offer the use of its marketplace for the funding of goods and services beyond France, while at the same time developing international partnerships.

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Outlook

12 September 2016 2016 HALF-YEAR RESULTS

Market outlook in H2 2016

Market context

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Consultation on the future of the profession

Altogether now

The French Pharmaceutical Unions Federation, the Fédération des Syndicats Pharmaceutiques de France, and the French Pharmaceutical Union have called on pharmacists to take part in a consultation on the future of their profession. The consultation was launched on 28 July.

Action relayed

• n the LGPI portal

with the agreement of the Presidents

• f both Unions

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Consultation on the future of the profession

Making the future

The consultation aims to gather pharmacists' views on six key topics.

18 12 September 2016 2016 HALF-YEAR RESULTS New technologies in the pharmacy Health insurance and supplementary health insurance agreement Network organisation Pharmacist’s role Pharmacy team education and training

E-health, telemedicine, connected objects, Internet, etc Consultations in the pharmacy, support, services, PDA, delivery, compliance, therapeutic patient education, length of care, etc French national third-party payer agreement, prescription drugs, simplification of administrative procedures, etc Initial qualification and continous professional development (CDP), university degree, etc Set-up and hygiene rules, grouping, closure, transfer, etc

Pharmacy business financials

Margin, fees, payments based on public health objectives (ROSP), consultations in the pharmacy, etc

Consultation on the future of the profession

Making the future

At the same time and given the position of pharmacies as key players in the healthcare chain, pharmacists have the opportunity to freely and

• penly express their views, make suggestions, and share their vision for

the future of the sector.

10 practical suggestions from the pharmacists' union, the USPO

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Consultation on the future of the profession

Secure a commitment from the French government and the health insurance system to reform pharmacies over the term of the agreement to:

• Change the method of paying pharmacists to include the

dispensing fee as part of a stepped negotiated budget according to margin;

• Strengthen the pharmacy network to prevent lack of coverage

in some areas;

• Enable the development of biosimilar and generic products by

pharmacies;

• Extend in-pharmacy consultations and payments based on

public health objectives. REGULATORY / POLICY

1

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Consultation on the future of the profession

Improve coordination between the members of the care team and the pharmacist, in collaboration with other health professionals.

E-NEPHRO renal screening

2011 2015 2015 2016 2013 2013

2

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to come

MSS operator

(secure health messaging system)

Consultation on the future of the profession

Organise relations between the city council and the hospital and plan discharge with the patient's chosen pharmacy.

E-NEPHRO renal screening

2013 2013

3

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Consultation on the future of the profession

Set up consultations and services to be offered by pharmacies, particularly for vulnerable patients at home, meet a three-fold challenge: an ageing population, the shift towards ambulatory care, and the increase in chronic conditions.

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E-NEPHRO renal screening

Patient follow-up programmes, advice sheets Interactive service, SST Posonet

2005 2008 2010 2013 2016 2015 2011 2013 "36 more months at home"

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Consultation on the future of the profession

Prevention and screening: include pharmacies, especially in vaccination, anti-smoking and addiction policy.

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E-NEPHRO

renal screening

Patient follow-up programmes, advice sheets Screening and vaccination information campaign Partnerships with patient groups

2007 2005 2008 2010 2016 2013

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Consultation on the future of the profession

Expand e-health initiatives in the pharmacy: share all health data in personal medical records, develop secure messaging system and approved connected objects in pharmacies.

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E-NEPHRO renal screening

2013 2013 2011 2012 2015

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to come

MSS operator

(secure health messaging system) 2016

Consultation on the future of the profession

Publish best practices on the preparation of doses to be administered (PDA) for all patients (at home and in elderly residential care homes), extend the position

• f

lead pharmacists in all care homes and get satisfactory payment for all these solutions.

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TITAN PHARMA

(pharmaceutical validation)

2007 2014

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Consultation on the future of the profession

Boost the safety and use of over-the-counter medications by including them in the care pathway.

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E-NEPHRO renal screening

2011 2015 2016 2013 2013

Advice sheets, interactive services and SST, Posonet

Consultation on the future of the profession

Allow the industry to negotiate reasonable prices for products with pharma companies through all its procurement structures to benefit the majority of pharmacies.

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2007 2014

Consultation on the future of the profession

Adapt the content of pharmacy and pharmacy assistant courses.

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Virtual pharmacy programme: LGPI showroom in pharmacy departments in universities Thesis prize

2012

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Outlook for the PHARMAGEST Group in H2 2016

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Outlook

12 September 2016 2016 HALF-YEAR RESULTS

Solutions for Pharmacy Division - Europe

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Solutions for Pharmacy Division - Europe – Outlook

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An innovative, ultra-modern system ensuring the pharmacy stands out from the competition.

OFFITOUCH aims to supplement/replace physical display space with a large touch screen. It is aimed at pharmacy customers and promises a distinctive buying experience that is independent, seamless and enjoyable, as well as

• ffering fast access to promotions.

Digital retail display space: more and better communication

Revolutionising the customer experience

Solutions for Pharmacy Division - Europe – Outlook

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OFFITOUCH, the most advanced and feature-rich digital retail device for pharmacies

Customers can click on any of the product pages on the screen, find information on specific products, and put items in their e-basket for collection at the counter. Product information E-basket Collection at the counter Product pages

Solutions for Pharmacy Division - Europe – Outlook

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Stand-out features:

Promotion lever: pharmacists have a range

• f customised materials, and can display and

track the results of the promotion. Merchandising lever: pharmacists audit stock using alerts for over- or under- stocking

• f items by category, display space or display
• unit. They receive recommendations and

draw on specific expertise.

Seamless use: "I advertise, I measure, and I compare"

4 action levers 4 analysis levers

MY PILOT is responsive and optimised for tablet

Pharmacy BeLux

Solutions for Pharmacy Division - Europe – Outlook

Development of secure health messaging system (MSS): a priority for health authorities at the highest level

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The French Minister of Health launched the project to develop an electronic messaging system specifically for health professionals. ASIP Santé (the French government agency charged with developing secure sharing of electronic health data) has stepped up its efforts to accelerate roll-out

• f the system during 2016. ASIP is currently helping 1,500 hospitals and care

homes to deploy secure messaging for healthcare professionals in the next six months. The project has the support of the healthcare professional associations.

Pharmacy BeLux

Solutions for Pharmacy Division - Europe – Outlook

The project has the support of the healthcare professional associations.

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"The key to ensuring personal health data is shared in patients’ interests to coordinate treatment and promote cooperation between professionals from different disciplines"

French Chamber of Pharmacists (ONP) - Press release, 26/04/2013

Simplify data exchange and improve care coordination Guarantee the confidentiality of the health data Save time

Solutions for Pharmacy Division - Europe – Outlook

PHARMAGEST is developing OFFIMSS (the secure health messaging system) for pharmacists

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Installed in the hosting of health data infrastructure and integrated into the new LGPI portal

Solutions for sanitary and medico-social establishments Division

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MALTA INFORMATIQUE has successfully integrated its DICSIT INFORMATIQUE subsidiary and confidently looks forward to the remainder of the year

Solutions for sanitary and medico-social establishments Division - Outlook

• Acquisition of DICSIT INFORMATIQUE:

 The integration of DICSIT, acquired in March 2016, is complete and will generate

commercial, industrial and operating synergies.

 MALTA INFORMATIQUE's processes and methods are now up and running in

DICSIT and its line-up is offered by MALTA's nine-person sales team, ensuring it benefits from the sales opportunities provided by a combined customer base and

• ther local opportunities.
• DICSIT INFORMATIQUE's turnover and net profit will increase considerably

in 2016. It will have a staff of about 30.

.

The Group continues to add to its expert solution

Solutions for sanitary and medico-social establishments Division - Outlook

• MALTA INFORMATIQUE is set to finalise its all-new TITAN WEB

ENTOURAGE module, aimed at the family and friends of care home residents to share social, care and management information.

• We expect a very positive market response to the module.
• The first modules should be installed in 2016.
• DICSIT INFORMATIQUE continues to finalise its web-based range.
• The line-up will see the addition of a new module for lab test results,

developed based on the expertise available at MALTA INFORMATIQUE.

.

Solutions for e-Health Division

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Taking patient-centred services to the next level with NOVIATEK

Solutions for e-Health Division - Outlook

Its investment in the start-up NOVIATEK boosts the Group's range of patient- centred services, particularly in solutions designed to keep patients with specific needs in their homes as long as possible.

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NOVIACARE’s INTRODUCTORY RANGE

Room Hygiene Sleep Kitchen Panic Button Food Bathroom Box (living room)

Our "patient-centred" strategy

Solutions for e-Health Division - Outlook

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well-being

Assist patients in the care pathway Assist patients in the purchase pathway

Do-Pill

TPE software (therapeutic patient education)

Silver Economy

"36 more months at home"

HHD NODI platform Diatelic

LSO (compliance monitoring software) patient programme

Pursue the development of our e-health platform and e-health projects to secure the care path and the patient-relations continuum:

SATEBOX NOVIACARE Sensor

Fintech Division

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Fintech Division – New expertise

Outstanding performance…

• Partners remain loyal and volume is growing steadily
• New customers won over
• Addition of a new lessor

…which validates the PHARMAGEST Group's strategy and its international expansion aspirations.

Conclusion

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12 September 2016 2016 HALF-YEAR RESULTS

2016 Half-Year Results

Conclusion

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• The Group is continuing its strategy of innovation in the Solutions for

Pharmacy Division - Europe and offers three new ranges with the potential for significant recurring business;

• The Solutions for sanitary and medico-social establishments Division

will step up efforts to achieve industrial and operating synergies between its subsidiaries, MALTA and DICSIT;

• The Solutions for e-Health Division continues to accelerate its drive

to trial innovative solutions in patients' homes;

• The Fintech Division aims to steadily expand the scope of its

platform's users. The PHARMAGEST Group is maintaining its growth capabilities and confirms the rise in its growth drivers:

The PHARMAGEST Group is also pleased to announce that it has added to its external growth capabilities with the appointment on 1 July of Mark DE SIMONE as Head of International Development. Initial contacts have been made in Spain, Italy, United Kingdom. Lastly, the PHARMAGEST Group is maintaining its policy of developing solutions in health IT, computerised systems and home care technologies to meet the needs of healthcare professionals and patients and to enhance coordination between providers.

Conclusion

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Next key dates

Financial reports:

• 16 November 2016: Q3 sales
• 15 February 2017: 2016 annual turnover

Next key dates for investors:

• 5 and 6 October 2016: MidCap Event Paris

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Managing Director Dominique PAUTRAT dominique.pautrat@pharmagest.com Shareholder and Investor Relations Jean-Yves SAMSON Tel.: +33 (0)3 83 15 90 67 - jean-yves.samson@pharmagest.com Press Relations FIN’EXTENSO Isabelle APRILE

• Tel. +33 (0)1 39 97 61 22 - i.aprile@finextenso.fr

Contacts

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