Glossary

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CEGEDIM - 2021-12-06 17:35:14 - Last 22.500 EUR -0.66 %

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28 OCT 2021Q3 2021 Revenues

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27 JAN 2022FY 2021 Revenue announcement

Financial Glossary

BPO (Business Process Outsourcing)

BPO is the contracting of non-core business activities and functions to a third-party provider. Cegedim provides BPO services for human resources, Revenue Cycle Management in the US and management services for insurance companies, provident institutions and mutual insurers.

Business model transformation

Cegedim decided in fall 2015 to switch all of its offerings over to SaaS format, to develop a complete BPO offering, and to materially increase its R&D efforts. This is reflected in the Group’s revamped business model. The change has altered the Group's revenue recognition and negatively affected short-term profitability

Corporate and others

This division encompasses the activities the Group performs as the parent company of a listed entity, as well as the support it provides to the three operating divisions.

EBIT From recurring operations

Earnings Before Interest and Taxes. EBIT corresponds to net revenue minus operating expenses (such as salaries, social charges, materials, energy, research, services, external services, advertising, etc.). It is the operating income for the Cegedim Group.

EBIT

This is EBIT restated to take account of non-current items, such as losses on tangible and intangible assets, restructuring, etc. It corresponds to the operating income from recurring operations for the Cegedim Group.

EBITDA

Earnings before interest, taxes, depreciation and amortization. EBITDA is the term used when amortization or depreciation and revaluations are not taken into account. “D” stands for depreciation of tangible assets (such as buildings, machines or vehicles), while “A” stands for amortization of intangible assets (such as patents, licenses and goodwill). EBITDA is restated to take account of non-current items, such as losses on tangible and intangible assets, restructuring, etc. It corresponds to the gross operating earnings from recurring operations for the Cegedim Group

EPS

Earnings Per Share is a specific financial indicator defined by the Group as the net profit (loss) for the period divided by the weighted average of the number of shares in circulation.

External growth

External growth covers acquisitions during the current fiscal year, as well as those which have had a partial impact on the previous fiscal year, net of sales of entities and/or assets.

Free Cash Flow

Free cash flow is cash generated, net of the cash part of the following items: (i) changes in working capital requirements, (ii) transactions on equity (changes in capital, dividends paid and received), (iii) capital expenditure net of transfers, (iv) net financial interest paid and (v) taxes paid

Internal growth

Internal growth covers growth resulting from the development of an existing contract, particularly due to an increase in rates and/or the volumes distributed or processed, new contracts, acquisitions of assets allocated to a contract or a specific project.

Life-for-like data

At constant scope and exchange rates.

Net cash

Defined as cash and cash equivalent minus overdraft.

Net financial debt

This represents the Company’s net debt (non-current and current financial debt, bank loans, debt restated at amortized cost and interest on loans) net of cash and cash equivalents and excluding revaluation of debt derivatives.

Operating expenses

Defined as purchases used, external expenses and payroll costs.

Operating margin from recurring operations

Defined as the ratio of EBIT from recurring operations/revenue.

Operating margin

Defined as the ratio of EBIT/revenue.

Revenue at constant exchange rate

The effect of changes in scope is corrected by restating the sales for the previous period as follows: • by removing the portion of sales originating in the entity or the rights acquired for a period identical to the period during which they were held to the current period; • similarly, when an entity is transferred, the sales for the portion in question in the previous period are eliminated.

Revenue on a like-for-like basis

When changes in revenue at constant exchange rate are referred to, it means that the impact of exchange rate fluctuations has been excluded. The term “at constant exchange rate” covers the fluctuation resulting from applying the exchange rates for the preceding period to the current fiscal year, all other factors remaining equal.

Financial Department

Jan Eryk Umiastowski
Chief Investor Relations & Chief Investment Officer
+33(0)1 49 09 33 36
investor.relations@cegedim.com