SOURCE: CEGEDIM

November 13, 2009 13:16 ET

CEGEDIM : Q3 revenues 2009

PARIS--(Marketwire - November 13, 2009) - Quarterly Financial Information at 30 September 2009

(not audited)

Favorable trends continue in Q3

Target of 6% revenue growth in 2009 confirmed

Cegedim, the world leader in Customer Relationship Management (CRM) for the pharmaceutical sector, generated consolidated revenues of EUR 632 million in the first nine months of 2009, a 5.1% like-for-like (L-f-L)* increase over a year ago and a 4.1% increase on a reported basis.

There was a notable improvement in the third-quarter performances of the CRM and strategic data sector, particularly due to the early stages of recovery at the strategic data division and the positive impact of Dendrite's successful integration.

+-------------------------+--------+--------+--------------------+-------+
|   EUR  thousands        |9M 2009 |9M 2008 |Change 9M 2009 / 9M |       |
|                         |        |        |2008                |       |
+-------------------------+--------+--------+--------------------+-------+
|                         |        |        |Reported            |L-f-L* |
+-------------------------+--------+--------+--------------------+-------+
|CRM and strategic data   |351,119 |350,240 |0.3 %               | 0.3 % |
+-------------------------+--------+--------+--------------------+-------+
|Healthcare professionals |199,978 |179,795 |11.2 %              |14.3 % |
+-------------------------+--------+--------+--------------------+-------+
|Insurances and services  | 80,827 | 76,946 |5.0 %               | 5.0 % |
+-------------------------+--------+--------+--------------------+-------+
|Group                    |631,924 |606,980 |4.1 %               | 5.1 % |
+-------------------------+--------+--------+--------------------+-------+
* comparable structure and exchange rates

Good revenue diversification by region, by client and by business, combined with a high level of recurring sales, ensured sustained growth despite a negative currency impact of EUR 1.9 million.

Breakdown of 9M 2009 revenues by currency

+-------------------------+-----+-----------+------------+----------+----+
|           %             |Euro |  Pound    |  Europe    |US Dollar |ROW |
+-------------------------+-----+-----------+------------+----------+----+
|                         |EUR  |sterling £ |ex.£ and EUR|        $ |    |
+-------------------------+-----+-----------+------------+----------+----+
|CRM and strategic data   | 50% |        5% |         9% |      24% |12% |
+-------------------------+-----+-----------+------------+----------+----+
|Healthcare professionals | 78% |       22% |         0% |       0% | 0% |
+-------------------------+-----+-----------+------------+----------+----+
|Insurances and services  | 99% |        0% |         1% |       0% | 0% |
+-------------------------+-----+-----------+------------+----------+----+
|Group                    | 65% |        9% |         5% |      14% | 7% |
+-------------------------+-----+-----------+------------+----------+----+

Third-quarter revenues came to EUR 198 million, up 5.5% L-f-L* and 2.6% on a reported basis.

CRM and strategic data

Revenues for the first nine months of 2009 came to EUR 351 million, a 0.3% increase on both a L-F-L* and reported basis. Currencies had a positive net impact of EUR 3.7 million related to the EUR/USD trend, which was partly offset by the euro's gains against sterling.

The third quarter saw a clear improvement in trends compared with the early part of the year. Revenues rose 4.9% L-F-L* and 2.0% on a reported basis. The CRM and strategic data sector benefited from the nascent recovery of the strategic data division's business, which began late in the summer and is the beginning of the end of order postponement issues that affected the activity in the first half.

The growth momentum of the CRM activity is likely to continue given the market's very enthusiastic response to version 5.0 of Mobile Intelligence and the release of a Blackberry® version.

The restructuring and integration plans adopted for Dendrite since 2007 are now virtually complete, with the exception of the R&D optimization plan. This confirms the success of the company's integration within the Group.

Healthcare professionals

Revenues for the first nine months of 2009 came to EUR 200 million, an increase of 14.3% L-F-L* and 11.2% on a reported basis. Currencies had a negative impact of EUR 5.6 million, notably due to euro strength against the British pound.

Third-quarter revenues rose 11.8% L-F-L* and 7.7% on a reported basis. Growth momentum at the doctor, pharmacist and paramedic software publishing business remains strong.

To maintain its technological lead and the service quality of its software packages dedicated to healthcare professionals, the Group is working to unlock synergies between its various entities, in particular at the technical level.

This sector's performance was also driven by Cegelease, which continued to grow vigorously over the period but is no longer a drag on the Group's balance sheet. Around three-quarters of the contracts it signs are now sold to partner banks within two months.

Insurances and services

Revenues over the first nine months of 2009 came to EUR 81 million, a L-F-L* and reported increase of 5%.

After an excellent second quarter in which revenues rose 14%, they slipped 6% in the third quarter on both a L-F-L* and a reported basis due to a summer lull in license sales. Nevertheless, sales growth over the first nine months of the year remains on track with Group expectations.

Cegedim SRH, the Group subsidiary specializing in payroll and HR outsourcing services, garnered numerous commercial successes and is generating year-on-year growth of over 20%.

Important transactions and events in the third quarter of 2009

As part of its efforts to strengthen its positions in CRM and strategic data, Cegedim acquired Nomi Group on July 1, 2009. Nomi is one of the leading suppliers of business intelligence and sales force optimization solutions to the pharmaceutical industry in Nordic countries. The company has nearly 200 clients, including the world's biggest pharmaceutical companies.

The acquired businesses generated revenues of close to SEK60 million in 2008 and will be part of the consolidation scope of Cegedim Group for H2 2009.

The Group also expanded its presence in the "strategic data" segment with the July 24 purchase of UK-based Hospital Marketing Services Ltd (HMSL), which specializes in analyzing patient data and hospital promotional efforts. This acquisition will enable the Group to extend its patient data analysis offering to both general practitioners and hospital specialists.

The acquired businesses represented revenues of approximately GBP 1 million in 2008 and will be part of the consolidation scope of Cegedim Group for H2 2009.

In accordance with the agreements signed by the parties, the terms of these transactions are confidential.

Financial position

Key financial ratios show a financial situation under control. As a result, the Group is confident that it will be able to respect its covenants at the December 31, 2009 mark, and that it will meet its upcoming partial debt repayment deadlines of EUR 29.5 million and $17 million per semester.

2009 outlook

Cegedim confirms its 2009 revenue growth target of approximately 6% on L-f-L basis. This prospect is strengthened by its strongly complementary activities, the incredibly successful integration of Dendrite, and the fact that the fourth quarter generally represents around 30% of full-year revenues.

Furthermore, the cost-cutting policies adopted in 2008 and continued in 2009 are likely to continue to have a positive impact on margins.

Calendar

The financial communications calendar will be updated in the coming weeks on our website: www.cegedim.com/finance

Full-year 2009 revenues will be released in February 2010.

APPENDICES

Breakdown of revenues by sector and by quarter

9M 2009

+---------------+-----------------+-----------------+--------------------+
| EUR  thousands|CRM and strategic|Healthcare       |Insurances and      |
|               |data             |professionals    |services            |
+---------------+-----------------+-----------------+--------------------+
|First quarter  |115,568          |66,137           |26,957              |
+---------------+-----------------+-----------------+--------------------+
|Second quarter |119,579          |74,625           |31,039              |
+---------------+-----------------+-----------------+--------------------+
|Third quarter  |115,972          |59,216           |22,831              |
+---------------+-----------------+-----------------+--------------------+
|Total          |351,119          |199,978          |80,827              |
+---------------+-----------------+-----------------+--------------------+

+---------------+------------+
|EUR  thousands |Total Group |
|               |            |
+---------------+------------+
|First quarter  |    208,662 |
+---------------+------------+
|Second quarter |    225,243 |
+---------------+------------+
|Third quarter  |    198,018 |
+---------------+------------+
|Total          |    631,924 |
+---------------+------------+

9M 2008

+---------------+-----------------+-----------------+--------------------+
|EUR  thousands |CRM and strategic|Healthcare       |Insurances and      |
|               |data             |professionals    |services            |
+---------------+-----------------+-----------------+--------------------+
|First quarter  |115,764          |48,684           |25,379              |
+---------------+-----------------+-----------------+--------------------+
|Second quarter |120,815          |76,111           |27,234              |
+---------------+-----------------+-----------------+--------------------+
|Third quarter  |113,660          |55,000           |24,333              |
+---------------+-----------------+-----------------+--------------------+
|Total          |350,24           |179,795          |76,946              |
+---------------+-----------------+-----------------+--------------------+

+---------------+------------+
|EUR  thousands |Total Group |
|               |            |
+---------------+------------+
|First quarter  |    189,827 |
+---------------+------------+
|Second quarter |    224,161 |
+---------------+------------+
|Third quarter  |    192,993 |
+---------------+------------+
|Total          |    606,980 |
+---------------+------------+

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, pharmaceutical companies, healthcare professionals and insurance companies.

The world leader in pharmaceutical CRM, Cegedim is also one of the leading suppliers of strategic healthcare industry data. Cegedim employs 8,200 people in more than 80 countries and generated revenue of EUR 849 million in 2008. To learn more, please visit our website: www.cegedim.com

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