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Cegedim: A return to growth in the third quarter of 2020

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Quarterly financial information at September 30, 2020
IFRS – Regulated information – Not auditedCegedim: A return to growth in the third quarter of 2020Like-for-like revenues grew 1.9% in the third quarter of 2020All divisions contributed to growthOwing to the spike in Covid-19 cases, we are unable to confirm our targets for revenues and for recurring operating income1 at this timeBoulogne-Billancourt, France, October 28, 2020, after the market closeCegedim, an innovative technology and services company, posted consolidated Q3 2020 revenues of €118.9 million, up 0.4 % on a reported basis and 1.9% like for like compared with the same period in 2019. Thus, after an increase in Q1 and a decrease in Q2, consolidated 9M 2020 revenues came to €355.1 million, down 2.5% on a reported basis and 1.1% like for like compared with the same period in 2019.Revenue trends by division·Third quarter 2020The €1.6 million hit from scope effects in Q3, or 1.4pp, was due to the sale of nearly all of the business activities of Pulse Systems Inc. in the US in August 2019.On a like-for-like basis, Health insurance, HR and e-services division revenues rose 1.6%, and those of the Healthcare professionals division, 2.1%.·First nine months of 2020
Over the first nine months of 2020, the €5.0 million hit from scope effects, or 1.4pp, was chiefly due to the sale of nearly all of the business activities of Pulse Systems Inc. in the US in August 2019, which was partly offset by the acquisitions of Cosytec in France in July 2019 and NetEDI in the UK in August 2019.Health insurance, HR and e-services division revenues fell 1.3% like for like, and those of the Healthcare professionals division, 0.8%.Analysis of business trends by division·Health insurance, HR and e-servicesThe division’s reported revenues rose 1.6% as reported and like for like in the third quarter of 2020, to €80.9 million. Acquisitions and divestments had virtually no impact.The third-quarter performance was primarily the result of growth at Cegedim Health Data (healthcare sector data and analytics), Cegedim e-business (document and process digitization), and Cegedim SRH (HR management solutions). Third-party payments activities in the insurance sector are back on a par with last year.Over the first nine months of 2020 the division’s revenues fell 0.4% as reported and 1.3% like for like to €241.2 million. The acquisitions of NetEDI and Cosytec made a positive contribution equivalent to 0.9% of consolidated revenues. Currencies had virtually no impact.·Healthcare professionalsThe division’s reported revenues fell 2.4% in the third quarter of 2020 to €37.1 million. Divestments had a negative impact of 4.3 percentage points. Like-for-like revenues grew by 2.1%.The third-quarter performance is chiefly the result of strong growth at Maiia (teleconsultation and online scheduling solutions). Other activities are back on a par with last year.Over the first nine months of 2020 the division’s revenues fell 7.0% as reported and 0.8% like for like to €111.3 million.The 4.3pp hit from scope effects in the third quarter, or €1.6 million, and the 6.0pp hit in the first nine months, or €7.2 million, was chiefly due to the sale of nearly all of the business activities of Pulse Systems Inc. in August 2019.·Corporate and othersQ3 2020 division revenues came to €1.0 million, up 14.7% on a reported basis and like for like. Currency translation, acquisitions and divestments had no impact.HighlightsWith the exception of the Covid-19 pandemic, whose impacts are presented in the Interim Financial Report in note 4 on pages 51 to 53, during the third quarter of 2020 and to the best of the company’s knowledge there were no events or changes that would materially alter the Group’s financial situation.Significant post September 30thtransactions and events·Acquisition of a minority stake in Clamae
Cegedim has acquired a minority stake of 34% in the Clamae Group via a €6 million reserved capital increase. Clamae has a subsidiary that specializes in innovative payment systems made possible under the EU’s PSD2 framework. The technologies Clamae has developed will be put to good use in nearly all of Cegedim Group’s products and services (health insurance products, data management and digitization, and apps for healthcare professionals).To the best of the company’s knowledge, except for the aforementioned, there were no events or changes after September 30th that would materially alter the Group’s financial situation.
OutlookThe coming announcement of a severe tightening of public health restrictions related to the Covid-19 pandemic has forced the Group to suspend its targets for revenues and recurring operating income2.The Group does not expect any material acquisitions in 2020 and does not provide earnings estimates or forecasts.Additional informationThird-quarter 2020 revenue figures have not been audited by the Statutory Auditors. The Audit Committee met on October 27, 2020, and the Board of Directors—chaired by Jean-Claude Labrune—met on October 28, 2020.2020-2021 Financial calendarThe third-quarter 2020 revenue presentation can be found:−      On the website: https://www.cegedim.fr/finance/documentation/Pages/presentations.aspx−      And on the Cegedim IR smartphone app: https://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx
AnnexesBreakdown of revenue by quarter and division·Fiscal year 2020·Fiscal year 2019Breakdown of revenue by geographic zone and division·As of June 30, 2020Breakdown of revenue by currency and division·As of June 30, 2020Breakdown of revenue  by division
Glossary

1Alternative performance indicators2Alternative performance indicatorsAttachmentCegedim_Revenue_3Q2020_ENG

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