SOURCE: CEGEDIM

September 17, 2008 17:15 ET

Cegedim Confirms Its Guidance for 2008

PARIS--(Marketwire - September 17, 2008) - Cegedim, the world leader in CRM for the pharmaceuticals industry, announces first-half 2008 revenues of EUR 414m, up 28%, a growing ordinary EBITDA of EUR 76m (18.4% of total revenues), an operating margin excluding exceptional charges and restructuring and integration costs of EUR 48m (11.4% of total revenues) and an ordinary operating margin of EUR 43m (10.4% of total revenues) in line with its expectations.As a result, the Group confirms that Dendrite's integration has been a success and that all Group's businesses are strongly growing.

Financials and first-half 2008 results

First-half 2008 saw the continued implementation of the restructuring plan initiated following the acquisition of Dendrite in 2007.

Restructuring in the "CRM and strategic data" sector, which is dedicated to pharmaceutical industries, is advancing nicely, permitting strong business growth in the second quarter. As expected in the US subsidiary, the decrease of the operating margin would be softened with this positive trend.

Activities in the "Healthcare professionals" sector confirmed their momentum. The fact that Cegelease is included in this sector partly explains the growth of revenues. However, the profitability in software activities was somewhat undermined.

The "Insurances and services" sector confirmed its return to a margin more in line with historical performances on the back of relevant investments and external growth.

Net debt trends are in line with the forecasts made when Dendrite was acquired in May 2007.

With the positive trend during the second quarter, strong backlog and a favorable seasonal second-half effect, Cegedim Group is maintaining its 2008 guidance:

- Revenues between EUR 840m and EUR 850m

- Operating margin, excluding exceptional charges (IFRS) and restructuring and integration costs in line with 2007.

First-half 2008 consolidated results (not audited)

+-------------------------+------------+------------+-----------+
|EUR thousands            |  30/06/2008|  30/06/2007|  Variation|
+-------------------------+------------+------------+-----------+
|Revenues                 |     413,988|     323,416|       +28%|
+-------------------------+------------+------------+-----------+
|Ordinary EBITDA          |      76,321|      56,286|       +36%|
+-------------------------+------------+------------+-----------+
|Ordinary operating profit|      43,060|      42,450|      +1.4%|
+-------------------------+------------+------------+-----------+
|Ordinary operating margin|       10.4%|       13.1%|           |
+-------------------------+------------+------------+-----------+
|Net cost of financial    |     -23,035|     -14,772|       +56%|
|debt                     |            |            |           |
+-------------------------+------------+------------+-----------+
|Tax                      |      -4,284|      -9,545|       -55%|
+-------------------------+------------+------------+-----------+
|Share of the net profit  |        -214|        -175|           |
|of equity-accounted      |            |            |           |
|affiliates               |            |            |           |
+-------------------------+------------+------------+-----------+
|Profit before tax of     |      -1,434|        -131|           |
|businesses to be sold    |            |            |           |
+-------------------------+------------+------------+-----------+
|Consolidated net profit  |       8,575|      17,827|       -52%|
+-------------------------+------------+------------+-----------+
|Group share              |       8,451|      17,755|           |
+-------------------------+------------+------------+-----------+
|Minorities               |         124|          72|           |
+-------------------------+------------+------------+-----------+
|Earnings per share       |         0.9|         1.9|           |
+-------------------------+------------+------------+-----------+
Restructuring and integration costs restated:
+-------------------------+------------+------------+-----------+
|EUR thousands            |  30/06/2008|  30/06/2007|  Variation|
+-------------------------+------------+------------+-----------+
|Revenues                 |     413,988|     323,416|       +28%|
+-------------------------+------------+------------+-----------+
|Ordinary operating profit|      43,060|      42,450|      +1.4%|
+-------------------------+------------+------------+-----------+
|Other restructuring and  |       4,671|            |           |
|integration costs        |            |            |           |
+-------------------------+------------+------------+-----------+
|Operating profit restated|      47,731|      42,450|       +12%|
+-------------------------+------------+------------+-----------+
|Operating margin restated|       11.5%|       13.1%|           |
+-------------------------+------------+------------+-----------+
Following the sale of activities to Tessi in 2007, and in order to show its refocusing on core businesses, the Group decided to simplify the organization of its sectors, dividing up its "Technology and services" activities among the other business sectors as a function of their clientele.
+-------------------------+----------------+--------------------+
|EUR thousands            |  Sales 30/06/08|EBIT margin 30/06/08|
|                         |                |                    |
+-------------------------+----------------+--------------------+
|CRM and strategic data   |             237|                9.2%|
+-------------------------+----------------+--------------------+
| Healthcare professionals|             125|               14.5%|
+-------------------------+----------------+--------------------+
|Insurances and services  |              53|                5.9%|
+-------------------------+----------------+--------------------+
|Total                    |             414|               10.4%|
+-------------------------+----------------+--------------------+

+-------------------------+--------------------+----------------+
|EUR thousands            |EBIT margin restated|  Sales 30/06/07|
|                         |* 30/06/08          |                |
+-------------------------+--------------------+----------------+
|CRM and strategic data   |               10.9%|             180|
+-------------------------+--------------------+----------------+
| Healthcare professionals|               14.9%|              94|
+-------------------------+--------------------+----------------+
|Insurances and services  |                  6%|              49|
+-------------------------+--------------------+----------------+
|Total                    |               11.5%|             323|
+-------------------------+--------------------+----------------+

+-------------------------+--------------------+
|EUR thousands            |EBIT margin 30/06/07|
|                         |                    |
+-------------------------+--------------------+
|CRM and strategic data   |               14.4%|
+-------------------------+--------------------+
| Healthcare professionals|               16.1%|
+-------------------------+--------------------+
|Insurances and services  |                2.8%|
+-------------------------+--------------------+
|Total                    |               13.1%|
+-------------------------+--------------------+
* Operating profit restated with exceptional charges and restructuring and integration costs.

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 nearly 8,000 people in 80 countries and generated revenue of EUR 753 million in 2007.

To learn more, please see our website: www.cegedim.com

This information is provided by HUGIN

Contact Information