CGM Investor & Analyst Conference MEDICA 2013, Dsseldorf

Software for pharmacies the CGM blueprint Lars Henze, Director of Pharmacies & Dental Benedikt Brckle, Country Manager Italy 20 November, 2013

Synchronizing Healthcare

Berenberg Bank & Goldman Sachs German Corporate Conference, Munich Christian B. Teig, CFO 24 September, 2013

Software for pharmacies

CGM entered the market for pharmacy software by acquiring one of the German market leaders in June 2011 LAUER-FISCHER has been the innovation leader in pharmacy software for more than 6 decades

Company name Products

LAUER-FISCHER GmbH Development and distribution of software and online drug database for pharmacies Head office: Frth, Germany Approx. 4,000 pharmacies. (20% market share)

Location Customers

11/20/2013

MEDICA 2013 | Software for pharmacies

LAUER-FISCHER overview 2011

IFRS pro-forma

million Revenue of which recurring

% recurring

2007
48.8 34.4
70%

2008
48.0 34.7
72%

2009
48.6 35.8
74%

2010
51.8 36.9
71%

Total expenses of which personnel EBITDA %

44.2 22.8 4.6 10%

44.2 22.8 3.8 8%

43.1 23.8 5.5 12%

45.5 24.0 6.3 13%

11/20/2013

MEDICA 2013 | Software for pharmacies

Planned cost synergies

+ 360 degree customer care. + Optimization. + EUR 4 million per year. =

Integration.
4
11/20/2013 MEDICA 2013 | Software for pharmacies

Sales, marketing, logistics and general administration moved from Frth and integrated with the existing CompuGroup organization in Koblenz.

360 degree customer care was introduced in the branch network. This new concept led to the closure of the old central service center in Haan.

Other functions of the organization were also to be optimized.

All together, these cost synergies were expected to amount to approx. EUR 4 million per year when fully effective.

Development under CGM ownership

Reported IFRS

million Revenue of which recurring

% recurring

2011
52.0

2012
53.0 40.4
76%

2013E
53.0 41.1
78%

Total expenses of which personnel EBITDA %

41.6 21.8 11.4 21%

40.7 20.7 12.3 23%

The operational targets have been reached The planned cost synergies have been realized

11/20/2013

MEDICA 2013 | Software for pharmacies

LAUER-FISCHER innovations 2013

11/20/2013

MEDICA 2013 | Software for pharmacies

Prescription scanner
WINAPO RezeptScan The ideal solution for prescription scanning Reduced workload Considerable time saving Even more security Prescription scanning and checking within only 5 seconds Compact dimensions fitting even below a keyboard

1,000 RezeptScans sold in 4 months

7
11/20/2013 MEDICA 2013 | Software for pharmacies

Hardware is the new sexy!

WINAPO One perfect terminals in function & design Compact, space-saving, integrated All-in-One PC solution. State-of-the-art for pharmacy and back-office Fully touch-enabled display Elegant design with various functions Numerous hardware components, such as wireless keyboard and mouse, bar code scan and WINAPO RezeptScan CGM has exclusive rights in the health markets in Germany and Italy

11/20/2013

MEDICA 2013 | Software for pharmacies

Modern media for in-store advertising

WINAPO tv for increased OTC product sales

11/20/2013

MEDICA 2013 | Software for pharmacies

Networking solutions for branches and partners

WINAPO Connect Premium. The premium solution for branch networks and cooperation partners Shorter access times Maximum data security Customized Connectivity packages: article information, reservation, ordering and stock optimization Data traffic remains in own pharmacy network

10

11/20/2013

MEDICA 2013 | Software for pharmacies

Add-on modules from the CGM parts bin

CGM Documents TV certified, tamper proof document archive All tax relevant documents can be archived Time savings through quick data access Maximum security as the only TV certified medical document archive solution CGM Task Organizer Perfectly organized task management Maximum security through predefined tasks covering regulatory requirements Every employee has an individual overview of open tasks Time and cost savings by quick distribution of new documents and regulations

11

11/20/2013

MEDICA 2013 | Software for pharmacies

meineApotheke: mobile pharmacy app

Advantages for the pharmacist Concept of local pharmacy with individual services Patients orders are sent to local pharmacy and automatically appear in WINAPO64 task bar Pharmacy can realize its competitive advantage through local same day delivery offers

Advantages for the end customer Contains all German pharmacies including contact data, opening hours and services offered Online database containing all drugs and package insert information Administration of personal medication Direct order possibility with local pharmacy

12

11/20/2013

MEDICA 2013 | Software for pharmacies

EXPOPHARM 2013

EXPOPHARM is the No 1 pharmaceuticals trade show in Europe 50 years tradition More than 500 exhibitors and 27,000 visitors in September 2013 Important platform for pharmacy software suppliers German Pharmacists' Congress (Deutscher Apothekertag) takes place parallel to the Trade Fair

13

11/20/2013

MEDICA 2013 | Software for pharmacies

Lauer-Fischer @ EXPOPHARM
EXPOPHARM 2013 in figures Stand size 400 m Qualified contacts New customers Order value

850 20 3,800,000 (+6%)

14

11/20/2013

MEDICA 2013 | Software for pharmacies

Cooperation CGM Dentalsysteme LAUER-FISCHER

CGM Dentalsysteme

LAUER-FISCHER ApothekenService
(14 subsidiaries)

Sales hard- & software Technical service Software hotline 1st/2nd level Order processing Cooperation contract

Technical service Support hardware & software installation Procurement Warehouse & logistics

15

11/20/2013

MEDICA 2013 | Software for pharmacies

Local service makes the difference

LAUER-FISCHER service network basis for CGM Dentalsysteme direct distribution Maximum customer proximity with 14 subsidiaries in Germany Quick reaction time and personal contact Comprehensive service with many components, such as
Local hardware and software service Comprehensive instruction Advanced training offers Telephone hotline with 3 Service numbers

16

11/20/2013

MEDICA 2013 | Software for pharmacies

MediPlanOnline medication management

Process optimization in medication management between PHYSICIAN HOME

PHARMACY

17

11/20/2013

MEDICA 2013 | Software for pharmacies

Secure medication management by CGM

Increased prescription safety through: Online readable solution (no fax) Clear medication and dosage Traceability Identical data information for all healthcare professionals Up-to-date prescriptions Avoidance of mistakes

18

11/20/2013

MEDICA 2013 | Software for pharmacies

MediPlanOnline: data entry process

Multi-stage data entry process with time savings for all partners
Data entry (Home/Physician) Approval (Physician) Activation (Pharmacy)

19

11/20/2013

MEDICA 2013 | Software for pharmacies

Summary Lauer Fischer

Lauer Fischer has been successfully integrated into CGM by doubling the EBITDA Several software and hardware innovations build the basis for future growth

Time to go Global!

20

11/20/2013

MEDICA 2013 | Software for pharmacies

Market entry Italy 2013

In July 2013, CGM acquired the Italian market leader for pharmacy software Studiofarma S.r.l. and its largest sales partner, Qualit in Farmacia S.r.l. Over 7,000 customers with a total market share of approximately 33% More than 60% of revenue is recurring Low customer churn rate: ~1%

21

11/20/2013

MEDICA 2013 | Feature Presentation

Starting point Italy

Complete separation between product and service delivery Indirect distribution model with independent dealers and service partners Dealer and service partner are competing and overlapping Hardware is sold and not leased to the customer
Consolidated

million Revenue of which recurring

% recurring

2011 16.1 8.0

50%

2012 17.2 9.6

56%

2013E 17.7 10.6

60%

Total expenses of which personnel EBITDA %

9.4 6.0 0.7

4%

9.8 6.4 1.0

6%

9.8 6.5 1.4

8%

22

11/20/2013

MEDICA 2013 | Feature Presentation

Implementing the CGM blueprint 2013 - 2014

+ 360 customer care + Optimization + E-Health Leader in Italy =

Integration
23
11/20/2013 MEDICA 2013 | Feature Presentation

Sales, marketing, logistics and general administration move into an unified organization for Italy to leverage synergies in all operations.

Further insourcing/consolidation of dealer network to create one single integrated product and service company providing best care from one hand

Optimize processes and introduce innovative products to not only strengthen the output margin, but also yield cross-selling/marketing potentials

All together will lead to a structure which is not only the e-Health Leader in Italy, but also delivers double digit high margin growth

Opportunities for Growth

The Pharmacy market in Italy is changing with decreasing revenues for the pharmacists Studiofarma invested in developing a complete product suite to cover current and future needs of Pharmacies: Integrated e-marketing suite Communication: paper, video, internet Promotion management Web and e-commerce Integrates CRM and Loyalty System e-Fidelity

24

11/20/2013

MEDICA 2013 | Feature Presentation

E-Marketing
Print + Multimedia

25

11/20/2013

MEDICA 2013 | Feature Presentation

E-Fidelity

26

11/20/2013

MEDICA 2013 | Feature Presentation

End-to-end regional projects

CGM Italia provides software for 23,000 doctors (44% market share) CGM provides software for 7,000 pharmacies (30 % market share) CGM developed the regional infrastructure for two regional infrastructural eHealth projects MEDIR (Sardinia) SIST (Puglia) Combining sender and receiver (doctor & pharmacy) CGM will be the key for further connectivity solutions (such as electronic prescription).

27

11/20/2013

MEDICA 2013 | Feature Presentation

European leader in doctor software Softwaremarket for pharmacies!

28

28