Cegedim (CGM) investor relations material

Executive summary

• Adjusted operating income rose 25.1% to €49.4M, with margin up to 7.6% from 6% year-over-year.

• Revenue was €649.2M, down 0.8% reported but up 1.1% like-for-like, mainly due to deconsolidation of InPractice Systems and currency effects.

• Net consolidated income reached €8.3M, reversing a €15.1M loss last year.

• Strong cost control, especially in payroll and external expenses, drove profitability.

• Operating cash flow surged to €152.2M, reducing net financial debt by 25% to €138.4M.

Financial highlights

• Adjusted EBITDA increased 9% to €134.6M, with margin up to 20.7%.

• Operating income nearly doubled to €30.2M, up 92% year-over-year.

• Payroll costs decreased 1.1% as headcount dropped 2.6%.

• Tax reimbursement of €11.1M from IP Box regime positively impacted net income.

• Cash & cash equivalents rose to €92.3M from €49.6M year-over-year.

Outlook and guidance

• Like-for-like revenue growth above 2% targeted for 2026, with improvement expected in adjusted EBIT margin.

• Recurring and adjusted operating income anticipated to continue substantial improvement.

• Guidance subject to revision if geopolitical, macroeconomic, or currency risks worsen.

• No direct impact from Middle East conflict, but indirect effects on client projects possible.

• AI integration ongoing, but no immediate reduction in OpEx or CapEx expected.