Cegedim SA (ALCGM) Earnings Call Transcript & Summary

Welcome to our first-ever virtual Capital Market Day. My name is Jan Eryk Umiastowski. I am Chief Investment Officer and Head of Investor Relations at Cegedim. And I have the pleasure to welcome you today to this event, and I will be hosting this event for you. Before we begin, I would like to offer you a virtual coffee. Of course, I would prefer to meet you face to face and to have a real coffee with you. However, due to the pandemic, we have to make it virtual. We know that virtual event can be hard to follow. This is why we have made a mix of prerecorded and live content and the Q&A session at the end. Before we begin, I would like to remind you that there are some -- that this presentation and webcast may contain forward-looking statements. These forward-looking statements may include comments about our guidance, our expectation, our prospect and are based on our view as of today, December 15, 2020. For additional information concerning important factors that may cause our results to differ materially from expectations and underlying assumption, please refer to our universal registration document, specifically Chapter 7 on risk management. Cegedim has no intention and assume no obligation to update this forward-looking statement. The slides that will be presented today during this webcast and the replay of this event will be posted on our website a few hours later after the event. Having said that, we have a fantastic lineup for you today. And let's have a look at what's going on. Following a brief presentation and overview of Cegedim in 2020, I will have the privilege of interviewing Laurent Labrune, our Managing Director, that will tell us about the drivers of creating value by innovation. This is very interesting, and I hope that you will learn a lot about this interview. And then we'll move to the how innovation and innovative usage of data help us to track what happened on COVID-19, and we'll have then some concrete example of innovation at Cegedim, a very concrete example and some presentation on fantastic software. Innovation is essential on ongoing success story and profitable growth, but sustainability is increasingly essential in today's world. After that, I will present to you, so I would spend some time on sustainability. Then we'll move to something that is a mainstay on all market capital day, which is the financial strategy, financial policy, even if this is virtual or not. And after the around 1.5 hours, 2 hours of presentation, I will recap what we have heard, and then we'll move to a live Q&A session. And we'll have the privilege to have Laurent Labrune, Managing Director; Laurent Savelli, Head of Product Development for Maiia Gestion; and Arnault Billy, Head of Maiia Teleconsultation. For the Q&A session, you will be able to use the Q&A box, but you can also use the raise hand button if you want to ask a question in person. If you want to ask a question in person, please turn on your camera. It is more engaging having someone face to face than just the voice. You can always ask a question during the event using the Q&A box, and we will reply immediately or during the presentation or during the Q&A session or afterward via an e-mail in the remaining 24 hours. And you can also ask a question via e-mails if you prefer. So what is the goal of today's event? What do we want to achieve today with that? I would like to show you that our goal is supported by 4 different points: first, mega trends that affected all of our activity and businesses. And one of the most important is the digitalization of the economy and more specifically of the health care sector. And this gives a big opportunity for Cegedim to develop our activity and to grow in this because we have a unique ecosystem in the health care space. The second one is innovation. This is one of the main component of Cegedim business model. And we'll show how this is the main component of our business model and how this translates on new products that are ready for the market, the new-generation product on the market already. And innovation is supported by talented people. We have something like 5,200 people working at Cegedim, and 27% of them are dedicated to R&D. And the last point is that we have a clear financial strategy that is really focused on free cash flow generation. And we'll pursue also small bolt-on acquisition, and we'll come on this at the end of this event. So all of this is important, but any growth is underpinned, all of it, by sustainability policy and objectives that will be presented also during that. With that in mind and before we dive into innovation, let's have a look on what -- on Cegedim in 2020. So as you have seen in the film a few minutes ago, is that we have 5,000 people at Cegedim that came every day to improve the health care of thousands of people every minute. This means that every minute, I'd say, you can reach Cegedim. You use the Cegedim product every time you are -- every day. So when you go to the doctor, when you go to the pharmacist, when you see a nurse, when you see [ chiro ] practice, when you get reimbursed by insurance companies, everything, every time you are in contact with Cegedim even if you don't notice. This is true in France. This is true in U.K. This is also true in Spain, if you go to the medical sectors. In top of that, also you are in contact with Cegedim if you get your payslip paid by company because we're making payroll when we do also electronic invoicing. So what we can say is that more than 1,000 people every day are in contact with Cegedim, and we help so thousands of people improve their health using our software, our solution, our data. This is an important point, having said that. So Cegedim in 2020, 3 pillars, it's innovation, financial discipline, M&A. What we want is really addressing the challenges of the health care evolution. We are well positioned to benefit from the acceleration of digitalization of the economy and more specifically, of the health care sectors. All of our products are on cloud and SaaS. It's something very important, as you will see. We have strong growth in the data business. We have decades of experience, and we have our own network and 5 data centers. In turn, we have a leading position. We are a leader in most of our activity. We have a large footprint in the health care ecosystem, and we have recurring revenue. A significant part of our activity are recurring revenue. So revenue, more than EUR 500 million, 20% EBITDA margin, 5,200 employees at Cegedim in more than 10 countries and 84% of our revenue are generated in the health care space. And we have a strong presence in Europe. As you may see on this chart, you'll see our different localization, so in France, in Switzerland, Germany, Belgium, United Kingdom, Spain, Chile. We have also some R&D center in Egypt, Morocco, in France, in Romania. We have the BPO center in Morocco, in Romania. So really, we are present in Europe, Continental Europe and U.K. for our activity with R&D center in France but also some offshore centers and BPO activity in France and offshore center on this. I will not spend time explaining all the numbers that you may see right now on the slide, just to see that we have massive footprint in the health care segment. You'll see that we have 152,000 care providers, 60,000 pharmacist, 26,000 physiotherapists. We're dealing with 8 million payslip per year, and we are making more than 900 million electronic flows by Cegedim e-business and 66 million pieces of anonymized data. So it's just to say that we have a real footprint in health care, a real footprint in the payroll activity and a real footprint in the electronic invoicing business. And I will leave you time to see all of this. The same for our offering, I will not spend time explaining exactly each one. What we do, just to remember that we provide software services and data in all the player in the health care field. So for medical, this can be one doctor, this can be 2 doctors, this can be a lot of doctors together. They can be care centers. They can be midwives. They can be specialists. What we provide is a complete solution, from taking an appointment with a doctor, going to see a doctor so practice management solution, EHR solution. Then we help doctors make diagnosis. We help doctor make prescription, electronic prescription and connection to the reimbursement system. And we provide this in France, in Spain, in Italy, in Belgium, in U.K. and in Romania. Then the pharmacies business, we provide a practice management solution for pharmacists, for unique pharmacies, so individual pharmacies like in France or chain of pharmacy, like in the U.K. And for example, in the U.K., we deal with Boots Pharmacy. Then we have the care business. This is for nurses, [ chiro ] practice, pathologists, speech teachers, et cetera. We provide solution to help them, the practice management solution on tablets and computers and our emulators on those computers. For the payers, we deal with the claims, all the claim management system. We provide the complete solution for that, including software and services because we also provide them BPO activity for doing that. And very strong position in France on the claim management solution, collecting premium, making sure that you get reimbursed. We can make electronic reimbursement automatic or we can do it also by paper. So this is for the payers. Then we have the data part. The data part is very important. It doesn't start today saying that we get the data. This part was the initial part of development of Cegedim. So we're in the data business for more than 50 years right now. 50, it's 5-0. And we provide real-time -- real-world evidence, analytics tools, patient management solution, artificial intelligence, sales data, et cetera, et cetera. And then we have 2 activities that are not in the health care space only. The first one is the payers -- the payroll activity, so for all kind of company, large one and very small one of 1 or 2 employees. We get like [ Nagaty ] as a client or any big name like that, and we make the payroll for that and with that, the second activity, that is the digitalization of processes and electronic invoicing. And we have also big names, like Saint-Gobain. We have [ Lafarge ], Air France, et cetera. So a very strong position on that. Coming back to the health care, it's really to show that we address the needs of most of the player in the health care field. As you may see, if we start from the right side, we see that we get the right -- the care providers, the researchers, the pharmacies, the nurses, the [ chiro ]practice, the payers, then the pharma company, hospital, health authorities and government. And by doing that, we are in contact with the patient. So it's very important. And this is why in the first video that you have seen at the beginning of this meeting is that we are in touch with thousands of patients every minute with our activity by making payment, claims, medication databases, software, procedure, EHR, agenda, diagnosis, teleconsultation, prescription exchanges and a lot of more things. So we have a big footprint in the health care space by providing really piece of software, data and services, all of this, of course, interconnected. So this means we can connect, of course, pharmacists with the patient, patient with the care providers or the patients with the pharma company, the payers and the payers with also the care providers. So all the connection between that can be done. So this is where we are, but what's the future? The future is that we get real mega trends that's creating strong tailwinds for the technology spending. Why? First is -- I will not take all of this. We can simplify this just by saying aging population and chronic disease. There is more and more people on Earth, so number of people increase and more studies show that we see more and more chronic disease. This means that we need to provide care to more and more people by providing care. We have a real shift toward outcome-based care and ambulatory care just as people try to stay at home instead of going to hospitals. So we provide them with solution. And to do that, we have fragmented care, we have the patient engagement, we have cost pressure, staff shortage, more regulation and digitalization of all of this. This means what? This means that this mega trend can be summarized by saying just by we -- there is more digitalization on mega trends. So you need more software, you need more information to take the right decision to be connected with the people. Why? To be [ dualistic ], to be more efficient and to reduce the cost of all the treatment. Chronic disease is very expensive, so you need to reduce the cost of that. People need to stay at home, so you need to provide care. Home -- you need to follow them. You need to have access to data everywhere. And COVID-19 is just an acceleration of the digitalization of the segment. And even -- if we look broadly, it's -- COVID-19 is acceleration of digitalization of all processes. So this include also our Cegedim e-business activity and SRH. So on the next 2 slides, you just get some details about this trend and how this affect activity, but you know all of this. Just to say that we have an increasing demand for health care. More chronic disease, more people that need to have access to doctors. We have a shortage of doctors. Doctors need to be paid not because they see patient, but because they are efficient, are dealing with care and providing care to the patient. Fragmented care, this means they need more communication between the different players in the system. The patients want to have more information about disease and what kind of drug he's taking, et cetera, and we get more and more regulation. This is very important point, more and more regulation. First, you need to implement in the software a lot of regulation. The second is now that the software also begin -- become medical devices. So in the past, you get the software, you provide software to doctors and the doctors use software. Now you need to get a certified software because software that help make diagnosis, prescription, et cetera, it's considered as medical devices. So you have the same regulation as the medical devices. This is what we call in France [Foreign Language] And then we have, of course, the shift to ambulatory care. We prefer to have people at home than staying at hospitals. So the GP is also more engaged, the patient is also more engaged, and you need to provide more information. And this means that you need to have access to data everywhere, every time. So this is why the best solution to respond to all this mega trend is to move to cloud, as we'll see in a few seconds. So all of these key market trends have an implication that is real-time data. We need -- if I go to see a patient at home, I need to have access to all the information about the patient. If I'm staying at home and the patient calls me, I need to have access to the information about the patient. So real-time data everywhere, every time, access to that. We need to exchange information between health care professionals. So if I'm sending someone to see a specialist, I need to exchange information between the GP and the specialist, I need to exchange the information between the GP and the insurance company and the patient, et cetera, et cetera. This needs to be on-the-go accessibility. I want -- I have normally a smartphone with me. So you have a smartphone every time on you, and you have to -- you have different apps, et cetera. You have access real time to information on your bank accounts, et cetera. You also want to have access on your health. And the doctor want to have access to all the information about his patient, et cetera. And an HR manager want to have access to all information about the employees, et cetera. Of course, you have -- you need to be compliant, and this is where regulation is very important. You need to be compliant with all your solution and to be up to date about regulation and regulation change every time and very quickly. At Cegedim, we can say that roughly half of our staff are dedicated to deal with regulation. So it's very important part of our business. And the only way to be every time updated, et cetera, is to have a cloud and SaaS solution for that. Of course, you need to improve the administrative system, so you take appointment by Internet. That needs to be really integrated in your software. You do not need to have different pieces of software and to try to go from one to another one, et cetera. And of course, doctors need decision support and interface with the patient. So if you have listened carefully at what I have said, is that cloud adoption provide a market opportunity for Cegedim. Why? Because we are multidisciplinary between care providers and all stakeholder in the health care solutions. So the best way to actually information is to have a cloud/SaaS solution. You can't do this with a license model. You need to exchange information between patient, clinical, administrative, and data need to be available every time and everywhere. Regulatory requirements, as I explained, are very important. So if you buy your software, how you can ensure that your software is up to date with regulation, et cetera, if it's not in cloud. And of course, the connected patient. So I don't see how you can be serious in this business if you do not have a SaaS/cloud solution. So the only way to improve health, to be more efficient, to reduce cost and to be efficient on that is to have a SaaS/cloud solution for doctors, nurses, insurance companies, all stake player in the health care field. And we have this. So we have all of our product today in cloud and SaaS solutions. So we spent a lot of time -- beginning in 2015, we spent a lot of money on that. We're spending something like EUR 100 million per year on R&D. But now all of our products are on SaaS. It's very important. What -- how did we do this? We have software factory. So we have a very agile R&D organization. We try to industrialize most of the part of the software and the way of developing software. Another important part is that we have talented people. And we do this in France. We do this in different countries, but we also have offshore platform to speed up the process and to reduce the cost of that. Of course, by doing this on SaaS, we have -- quality and compliance is very important. So we are certified HDS for high security about the health data on our data centers. This is our own data centers. So we really know where are our information. They are stored on our computers, in our data centers located in France, in other countries. So all of them are in different centers. And we are certified ISO. So you see all the certification that we may have. And of course, we respect all regulation in every country related to data, to software development or certification of software, et cetera. And very important thing is that our software and development of services in all of our business are driven by the customer needs. So we're not developing software that we think, "Oh, maybe the customer would like this and we want to do this." No, we really deal with the customer, we discuss with the customer, and we handcraft a solution with them that really match their real need and their work flow. And you will see this later in the presentation of Laurent Savelli, how we have developed Maiia Gestion that really responds to the needs of [ chiro ] practice by talking with [ chiro ] practice to really understand the business and what really they expect from the software. And of course, the last point is that we have the technology platform. So all of our solutions are cloud, web and mobile, and we have our own data center, as I already explained. So I already said it, but we have 1,400 people working directly or not on R&D product. And we are spending in total, including everything, around EUR 100 million per year on this development on innovation. So the 3 pillars today on Cegedim are innovation, financial discipline and M&A. We have been very active on M&A. We'll continue. We have financial discipline. And now we are really focused on our core market. We have the right companies. We have the right portfolio of core product on our core countries with the right companies. And we have completely renewed our business model with the BPO, cloud, SaaS digital, data and BPO offering. So this is Cegedim in 2020. But you know that in 2020, something very strange happened that nobody expected, even Nostradamus. Nobody has seen that coming. It's COVID-19 pandemic. So our priority during this pandemic was employee safety, first; second, business continuity; and third, maintaining the high customer service level that customer may expect from Cegedim. And before going forward, I would like to say that we would like to thank the health care heroes and the full support to our customers that have very worked hard during this time and continue to do that. And they always smile doing this during this period. So again, thank you, health care heroes. So how we got through the crisis. So first, regarding people. Of course, we implement very quickly telework. So having deployed in all countries during the lockdown, in each country, roughly in 1 or 2 days, we have been able to put every people on telework. We have a limited recourse to partial unemployment. So this comes from very small part of our activity, mainly the advertisement business at pharmacy, we can say, during the first lockdown. And of course, the hiring has been postponed when possible also during that. We have a very robust IT infrastructure with our own data centers, robust networks that make telework absolutely not an issue. And we have been able to continue to provide SaaS solutions and services to our clients without any problems. During this lockdown, we -- the first one and the second one, we have decided to continue to invest on innovation. So we have not postponed any project. We have released new products. We have continued to develop projects during this lockdown. This had absolutely not affected the innovation process. From the financial cost point of view, of course, we have prudent cost management. Travel, reception, marketing have been reduced. We postponed some rent and social payment. But we have a robust financial situation, reasonable leverage, no debt maturing before October 2024. We have EUR 65 million RCF absolutely undrawn. And roughly, we have the majority of overdraft facilities that are unused. And now our business model is very simple, 84% coming from the health care sector. That is not really completely affected by the COVID-19. And we have the recurring revenue, very high market -- part of recurring revenue. You may ask me what kind of percentage we get on recurring revenue. It's very complicated, depending on how you calculate it. You may say that a SaaS solution, if the client sign for 3 years, is recurring or not. You may say that maintenance is recurring or not. You may say that taking from databases, et cetera, can be recurring or not. But depending on how you calculate this, we can be on the range between, say, 70 -- 85% to 95% of recurring revenue, so between 85% to 95% of recurring revenue depending on how you calculate your recurring revenue. So of course, we are not immune from the COVID-19. We have been affected like all companies. So negative impact, first, of course, new projects have been delayed due to the COVID-19. So new project can be a real completely new project to the company, more complicated to get a contract or we're already signed with a company for a new project and we're just waiting for implementation and the implementation have just been postponed until the end of lockdown. The second impact is on the third-party payment and outsourced management business because we get paid for volume, and what's happened, people get less see doctors -- during the first lockdown, people get less to hospital, get less to pharmacy, have seen less doctors, dentists, opticians, et cetera. It's not really true during the second lockdown that started in end of October. But during the first lockdown, we may say that's roughly 25% decrease in volume on reimbursement and claim management. And during the second one, this level is much lower. So people continued to see doctors, dentists, et cetera. And we get on that the support from the government saying that you need to continue to get health [ care ]. The third segment affected by the lockdown have been Cegedim-Media, providing advertisement at pharmacies. Of course, if you do not go to the pharmacies -- at the pharmacy, you will not see advertisement. So I will not provide any advertisement campaign. However, as soon as the lockdown has ended, we have seen that the activity resumed. And during the second lockdown, activity continued at Cegedim Maiia. And for software for doctor, we just see some postponement on the calendar launch for new offering from the government. We also get some positive news. So you need to read over there positive and not negative. So we get positive news from Cegedim e-business. All companies realized that they need electronic invoicing, so they all rushed to get an electronic invoicing system. We also see a rush on Cegedim SRH. Why? Because implementing partial unemployment, so you need advice, you need how to do that. So we provide this information. Cegedim Health Data, we see that government, insurance companies, health authorities needed information about data, what happened on COVID, how patients react, when are they buying drug, what kind of drugs, et cetera. So we provide this information, and we'll see this in a few minutes how we track COVID-19 with our data. CLM, our software for doctors in France, provide 4 COVID-19 emergency centers in less than 24 hours, completely [ web-based ], permitting communication between all of this. And at the end, of course, Maiia Gestion teleconsultation have seen a strong increase even in the second quarter. We do not charge for that, but this increase that we have seen during the first lockdown continue after that. And we see a rebound during the second lockdown, and Arnault Billy will present more details about teleconsultation and that the market is really taking off right now for teleconsultation. So COVID-19 has just created long-term opportunities and accelerated digitalization of the sector. In terms of revenue, the rebound started right after the first lockdown. You see that at the end of the second quarter, we've been down by 2.5%. And at the end of the third quarter, we've already seen an increase of revenue, and our revenue has been down only by 1.1%. After that, in the fourth quarter, of course, from end of October to December, we are still in lockdown, so we'll be affected in one way or another. We'll see later how. So we have multi strategy to continue to increase our revenue and profitability. First, on our installed base, we continue the SaaS transition, so existing clients from legacy system to SaaS, continue to upsell more system to them, more modules, new products. And the mega trend help us sell them more things and more medical solution, more data, more software. We can also attract new customers, gain market share and launch new product. And with this new product, we attract new customers. And of course, continue M&A. M&A can be for technology, to acquire some technology, for developing new geography or get new product. So Cegedim is confident in its future growth potential. We have a very -- markets with solid growth prospect despite some short-term uncertainty related mostly to COVID-19. We are very well positioned for market and grow -- margin expansion. We have leadership position, a unique value proposition. And our comprehensive solution and intimate understanding of the market help us -- give unique perspective to develop unique product. And we can still use our innovation capacity, and you will see some innovative product that will help us gain market share, increase revenue and increase profit. And all of this is supported by operational and financial discipline. Having said that, I will have now the chance to turn -- to have an interview with Laurent Labrune. So now it's time to meet our Managing Director, Laurent Labrune. Hi, Laurent. Thank you for taking time to join our Capital Market Day.

Hello, Jan Eryk. Hello, everyone. It's always great to talk to the financial community. Thank you very much for attending our virtual event.

As you know, this year's event is entirely digital due to COVID-19, and our focus is how Cegedim drives value through innovation. Before we dive into innovation, I would like to ask you how Cegedim has performed over the last months.

Well, we are not immune to the pandemic. But as we are mainly in the health care sector, we have been less affected than others. Even though a significant share of our revenue is recurring, our revenue was down by single digit during the first lockdown. And then we nearly recovered in the third quarter. The second lockdown that started in October seems to have affected us less than the first one. However, December is always the strongest month at Cegedim, so we'll have to wait until the end of December to really get the full picture.

Thank you, Laurent, for this update. I would like to remind you that the full year 2020 revenue will be released on January 26, after the market close. Let us now turn to the main subject, innovation. Innovation is entrenched in the group culture, and I will let Laurent elaborate about it.

Thank you, Jan Eryk. Strategy is important. Innovation is vital. Innovation is a subtle alchemy between organizational process and informal discussion between our employees that we strive to entertain. This day-to-day entrepreneurial spirit drive most of the smaller, often largely nonconscious decision that [ predate ] innovation. Yes, innovation is our motto, and it requires many effort and long-term investment to foster it and to continue to make part of the group's culture.

So culture is a key element. What else makes Cegedim an innovative company?

Of course, talented people represent our key assets. Their skills, their knowledge, combined with our cutting-edge technology, our powerful data insight and our unique ecosystem of customers inside health care organization, health care professionals, health insurers, researchers and outside health care as well puts Cegedim at the crossroad of many business and many opportunities. Our proximity to clients and our ability to understand and analyze their issues and challenge and our sense of services have helped us tremendously to innovate and capture those opportunities for more than 50 years now. The 2 other pillars of our business model, which are financial discipline and acquisitions, are also critical in the innovation process. You need an organization that enables an idea to be turned into a real solution and business value by devoting time and money to it.

When you say that innovation needs time and money, how many people work in R&D?

We invest significantly in R&D with 4 main center of excellence. More than 1,400 people are dedicated to it, and we spend around EUR 100 million per year on innovation, regulatory work and product development in general.

Wow, we invest twice as much as our French competitors. Some investors tell me that Cegedim should invest less to get a higher valuation.

Well, this is a very important point. Continuing our investment strategy today is the key to unlock postcrisis growth. By investing today, we will generate sustainable and profitable growth in the future. All our products are Software-as-a-Service and have been completely redesigned, as you will see from some example later today. We are unlocking the massive potential of the group by creating synergies between our different offerings. All of this make a clear difference and does not justify, from my perspective, a lower valuation than our peers.

You just said we are unlocking the massive potential of the group by creating synergies. Could you give us some examples?

Sure. Let me share 3 quick examples. The first one is in the pharma space, where we help pharma and cosmetic companies better plan and target their advertising campaign using our sales statistics. But not only that, we offer them to leverage our network of more than [ 70 ] big screens in pharmacies to run their campaign and also elaborate call-to-action programs within our 6,000 pharmacies using our dispensing software. Then we provide them with real-time sales monitoring tools, enabling them to redefine and refine immediately their marketing campaign and sales effort on the field. We can also accompany them to manage automatic stock refill at pharmacy level with our call center and supply chain technology to prevent any out-of-stock situation and make the campaign a great success. The second example touch medical decision support tools. Researchers can access our THIN real-world patient database and build algorithms that are embedded into our medical software. Those algorithms provide medical decision support alerts to facilitate some certain rare disease detection programs, for example. Last but not least, the third example is the extension of Maiia agenda and Maiia teleconsultation with Maiia Gestion creating the next-generation EHR and practice management solution, as you will see later in Laurent Savelli's presentation.

This is very interesting, and we could spend hours on this subject. However, I still have a lot of questions. But before we move to the next one, clearly, this diversified exposure to many health segments imply substantial resilience as well as massive synergy potential compared to more specialized competitors. As you state, another way of developing new technology is by making acquisitions. And you mentioned that it is one of the growth pillars.

Absolutely. Acquisition is 1 of our 3 pillars, as I mentioned earlier. We make acquisition to get market share, to expand into a new region, to get adjacent business or for technology reasons. For example, we acquired Ximantix in Germany to open the German market for Cegedim e-business procure-to-pay solution. Same strategy in the U.K. with the acquisition of NetEDI, the objective being to reach a stronger European presence. We also acquired Cosytec for its constraint programming technology for Cegedim SRH time management solution. And more recently, we've made a minority investment in SSP to gain access to innovative new payment solution that we will integrate in most of our products in the future.

Will Cegedim continue to make acquisitions in the future?

Yes, we will continue to make acquisition, and we will favor small bolt-on acquisitions.

Good. 2020 has been a year of innovation across Cegedim. What is your favorite example of innovation at Cegedim?

Good question. Well, all of them because they all help our clients to be more efficient and run their businesses more simply. However, if we just take the last couple of months, I would say Maiia suite is a great candidate. Maiia Gestion is a game-changer on the paramedics software market, and I expect us to regain our #1 position in no time. We already have signed 159 contracts after 1 week of commercialization, and this is really exciting and great. The Maiia suite really respond to the needs of patient and health care professionals. I believe that it's the most complete and scalable ER solution on the market. However, we invest everywhere. I could have mentioned our new SaaS solution for health insurers, our new products for French and U.K. pharmacies, our new platform and apps for U.K. doctors, the new module for our HR and payroll solution and not forgetting our new platform for the digitalization of processes and invoices from Cegedim e-business.

I can't wait to see, Laurent, the emulator one. But before that, when I listen to you, it seems that you are very confident about the future prospect of Cegedim. What makes you so confident?

Well, we know how to operate in constantly evolving markets and strong regulation. We are a trusted and recognized player with strong roots in health care and recognized expertise in complex regulation. We have a long-term vision and commitment to our businesses. We have a balanced portfolio of complementary offerings, diversified customer base. We have wide geographical coverage and the power of being an integrated group with a strong financial discipline. All this should drive long-term value creation through revenue and earning growth.

The year 2020 has transformed the health care industry forever with a sharp rise in demand for innovative virtual health technologies.

The promise of teleconsultation has been around for years. It's now a reality. Like many parts of the health care system that have responded to COVID-19, telemedicine has never been more compelling. And I believe that Cegedim is uniquely positioned to drive digitalization of the health care space. And more broadly, Cegedim want to play a significant role in the digitalization of the economy with its different businesses.

Innovation is a key driver.

Yes, innovation is vital. We'll continue to bring innovation to our customers that will help them to run their business more simply and more efficiently. And by doing that and expanding our unique ecosystem, I'm confident that our revenue will increase alongside with profitability.

Real clear vision. And again, Laurent, thank you for your time, and I think that our investors will appreciate.

It's my pleasure, Jan Eryk. And to all our participants, please enjoy our different presentations. Thank you.

Thank you, Laurent, for this very clear presentation of your vision, your innovation and how innovation drive Cegedim and help us be on -- ahead of the pack and create value. During the next hour, we'll be looking at multiple example on how innovation create value by helping us give our customer the best solution and make health care businesses run simply and more efficiently. So let's start with the COVID-19 pandemics and the key facts. The COVID-19 pandemic had underscored the increased importance of providing a more complete picture and insight into patient care. Cegedim not only provide large amount of data, it also make it possible to use the data to help solve those challenges health care is facing. When the pandemic hit, we put our data, experience and technology into action to provide real-time, fact-based, data-driven decision support for all stakeholders. Real-time metrics become more important than ever because feeling the pulse is more important than taking a snapshot. I have invited Branger Lekens to share some facts about COVID-19.

Hello. I will give you an overview of Cegedim Health Data, and especially to the epidemiology tool. So Cegedim Health Data is a web platform, which give access to our user to statistics and analytics from data coming from THIN database. The main user are pharma company, health care authorities and public research. Let's have a look at the COVID situation. Now you have a view of the daily case of COVID-19 in France. If we analyze from a specific region, for example, over [indiscernible], you can see that the second wave is higher than the first one, and the peak was reached beginning of November. The situation is different in Paris. For example, you can see that the 2 wave are quite similar. We can also apply a filter on patient profile, which are suffering from COVID-19. For example, in children, you can see that just after the summer break, we can see an increasing of number case of COVID-19. From people who were older, you can see that they suffer from COVID-19 from the first wave and the second one. What about the other disease? For example, I want to have a look at gastroenteritis situation. We can see that the crisis, the lockdown, had an impact, a direct impact of this such disease. This is a normal situation just before the lockdown. Since the lockdown, the number of gastroenteritis is very lower and remains stable. If we compare this situation with last year, you will see that the red curve is quite lower than the blue one. Thank you.

Thank you, Branger, for providing this insight. This is an updated chart that we get just Sunday evening to present to you more things. So we can't -- we see that the curve continue to decline. This is the comparison of suspect new case depending on the lockdown, the first one and the second one, as Branger expect, and we see that this continue to decline. And even if we should take an average on -- moving average on 7 days, we see that the decline continue compared to the peak of end of October. So it's really reassuring. And you see that using the data to drive health transformation is nothing new for Cegedim. We started doing it in 1969. So more than 50 years ago. Cegedim Health Data support pharmaceutical company, research organization, academic institutions and health authorities with access to over 57 million anonymized patient records across Europe. And of course, we respect all the regulation regarding anonymization of patient record. THIN has more than 9 million active patients per year and has been used in over 1,300 publication, significant publication. As such, it is recognized as one of the most relevant data sources for anonymized patient data in Europe. Two weeks ago, we added the Spanish market, which mean we added 2.9 million patient, 300 health institution and more than 4,400 GPs and specialists to the THIN database for the benefit of patient and health care players. Cegedim Health Data provide a complete data-driven solution covering Phase II to commercialization of drugs. For example, in Phase II studies, we identify the patient segment with highest potential. In Phase III, we estimate cost of disease for pricing and defined eligible population for reimbursement. And later, we measure the effectiveness of new treatment. We have also based on this data a developer module included now a software for doctor to help them detect around disease, cardiovascular risk. As you may see, data is one of our key asset. And we'll continue to innovate in data-driven solutions. Let's now move to the CHS. This business unit represents 32% of the total group consolidated revenue and it's present in Continental Europe and U.K. CHS addresses the needs of health care providers and health professional, pharmaceutical -- pharmacists with a complete range of product and services, including practice management software, medical software, medical databases, e-prescription, teleconsultation and various value-added services. CHS is a significantly invest innovation in the past 10 years and are now resulting in some exciting new products. Before we take a closer look at all of these new products and innovation coming from CHS, let's discuss about innovation with Stefan Janssens, President of CHS. Hi, Stefan, thank you for joining our Virtual Capital Market Day. Could you tell us a bit about yourself?

Thank you, Jan Eryk. I'm very happy with that question for a very simple reason. I have been 12 years a competitor to Cegedim, and I'm now working with Cegedim. So finally, the balance starts to be positive. In 2007, when Cegedim bought Dendrite, Jean-Claude and Laurent asked me to manage the CRM business for the EMEA region. And I've been doing that until 2014; also, the APAC region after a while until the business was sold to IMS. But shortly after, they've given the opportunity to manage Cegedim Healthcare Software, and I'm very pleased that I'm doing this now for 5 years.

What an impressive career. As you know, this year, our event is entirely digital due to the COVID-19. And our focus is how Cegedim drive value through innovation. So my first question for you is, what does innovation means for CHS? And how do you encourage it?

Innovation is much more than just software and technology. It's about processes, it's about organization, it's about partnerships, it's about data, it's about hardware. It's not about the big bang, actually. It's about doing things better than what you already do. But of course, if we can do more than just doing better, we will grab the opportunity. So how do we encourage this? We have different ways. Of course, we watch and observe customers. That's how Heinz invented the upside down bottle by watching their customers. And that's also what we did when we developed our solution for the physical therapists. Another way is, of course, watching or learning from difficulties and complaints. We're also combining our assets. We take our solutions, software, combine it with data. And we make algorithms and we integrate the whole thing. We look at stuff. We ask stuff. We look at social networks to find ideas. We work with partners. We collaborate with them. And of course, we watch competitors very carefully.

You say that innovation means much more than software, that it's also processes and business model. Could you give us some examples?

Yes. I'll give you an example. You may remember 2 years ago that we decided to in-source our Romanian reseller network, 13 resellers in total. We not only tripled our revenue, which is great news, of course, but today, we also provide a stable and high-quality customer experience, which was not the case before. We have a second example, but on a smaller scale. This year with paramedics, we also integrated their resellers. And I think today, we can honestly claim that we are the only company, 100%, dealing directly with its customers and providing a great customer experience.

Yes. I can confirm that we clearly stand out from competition in that respect. Coming back to the fact that innovation is much more than just software, you mentioned that you are involved in the data business.

Yes, Jan Eryk. We're on the data business. Data is wealth, and we are using it. We are collecting data for many years now, and it allows us to make algorithms and to integrate them in our software. And this is alerting health care professionals when they meet patients with certain criteria. We have alerts for cardiovascular risks, also for rare diseases. So you can see we are much more than just a software provider.

So you provide much more than just practice management software, you provide medical software with embedded algorithm to help software providers save time, to be more efficient, improve the quality of care and save lives.

Exactly.

Innovation can also, as you mentioned early, improve agility and organization.

Agility is essential. With the first lockdown, we mobilized the CLM and RM sales forces and trained them on our teleconsultation service. They complemented the Maiia Docavenue sales force. And despite the fact that we are organized in silos and with the lockdown, we saw a real team effort there. It was amazing. The market is changing rapidly with health care professionals getting together in building disciplinary structures. And I think as a result of that, we will see also our teams working more and more closely together.

Innovation to support market trends. You mentioned that innovation also came from partnerships.

Partnerships. You're aware of the pharmacist partnership. Within 1 night, we had 9,000 new customers on our BCB offering integrated in their solution. If you have that, you are a fan of partnerships. But there's another one, which is here in terms of hardware, and it's also kind of innovation. But I would like you to give the honor to reveal that later.

Thank you, Stefan, to letting me explaining what this is. But I will come to this in a few seconds. As you know, good things come to those who wait.

Thank you, Jan Eryk. Although there is one thing I would like to say as well. We are now the only provider that has an agreement with the 4 NHS bodies in U.K. So we are the only company that is allowed to enter all the countries with our solution, something we are really proud of.

Yes. You can be proud of it. And again, it's a claim our competitor cannot make. Having had a discussion a few days ago with some experts from NHS, I can tell you that the NHS really appreciate our collaboration and is very confident in our new offering.

Thank you, Jan Eryk.

Stefan, so now some of your colleagues are here to present more exciting stuff. And you're going to hear some customer testimonial as well, I think.

Some really exciting innovations, Jan Eryk. First, Arnault Billy will present you the teleconsultation solution. Then our U.K. team will show you the impressive pharmacy solution, which was launched last year. And then third, and this is an exclusive, Laurent Savelli will present our new solution for physical therapists. And what is very interesting when we launched it 2 weeks ago, Dr. [ Litt ] reached out to him to congratulate him with what he developed, he and his team, of course.

Wow. Thank you, Stefan, for sharing all of this great news with us today. Thank you, Stefan, for providing this very interesting point of view on innovation. And the key takeaway I think from this video is also that innovation is more than technology and software. As Stefan has already told us what to expect for the next 2 hours, let's turn to Maiia, the booking, appointment and scheduling and teleconsultation platform. Arnault Billy, General Manager at Maiia, will tell us more about Maiia, including some key metrics, and then show us a demo of how the system works for teleconsultation. Arnault, it's yours.

Good afternoon, Jan Eryk, and thanks for inviting me to bring you through today to the Maiia solution. My presentation will be in 2 parts. First, I will start with a few slides. And afterwards, I will end up with a nice demo, hopefully. So Maiia is our health care professional online appointment and teleconsultation platform. Basically, what it does is to provide booking services as well as teleconsultation between a patient and a physician, and it can either be autonomous directly between a patient and a physician or it can be assisted along with a retail pharmacist or a nurse. The way we have built up the solution is 100% compliant and in line with the French NHS regulation. Our goal is to reinforce the health care territorial network next to the patient everywhere in France. And one of the key differentiator we provide to our client, patient and health care professional is to have teleconsultation capabilities either upon appointment or instantly. Maiia in a few numbers. Number one, we have already signed, closed 20,000 teleconsulting physicians. In addition to that, we also provide services for accompanied teleconsultation for 1,800 retail pharmacists. We've already performed 2 million teleconsultation. And ultimately, we provide and equip 100,000 HCPs with calendar capabilities within their EHR software, so electronic health record software. To come back to one of the key differentiator of Maiia, the average waiting time into the virtual waiting room is 3 minutes only to get access to your physician. We also provide connected devices capabilities. We sent the Rx directly on to the secured patient access. And of course, we are able to monetize the physician time because, of course, time is money. One of the key elements also to come back to is to emphasize the fact that teleconsultation is not only for COVID. What we have been able to observe were the 2 million teleconsultations that we already performed is that only 20% of our teleconsultation were based upon COVID cases, COVID cases. All the rest is about frequent seasonal pathologies as well as chronic diseases follow-up. My last slide will be on the general practitioners' teleconsultations trend based upon the Index 100 in April 2020. What we are able to observe and what you will see onto the slide is that there has been a little down from April up to August. And then it grew up back in September as well as in October. So basically, what we can already affirm is that teleconsultation is really well installed into a physician mind as well as in patient use of medicine practice. So now let's go to the second part, the funniest one, the demonstration. I'm going to turn myself on to a physician. So I will be the Dr. Billy. And as you will see in my screen, I'm already onto the Maiia platform, I'm already logged on. And as you will see, I have a pretty packed schedule today, but I have some spare time here because one of my patient, unfortunately, didn't show up. So I'm going to be using that great feature I was talking to you about earlier on, which is the instant teleconsultation. So I will make myself visible and available online for patient onto maiia.com right now. It's done as a simple click. And I'm going to access to my virtual waiting room waiting for the next patient. It didn't last long. I see that Mr. Richard Peter, which is one of my patient, has some COVID symptoms. He's on my waiting room. So I will be opening the teleconsultation. Here we go. Good afternoon, Richard Peter. How are you today?

Hi, doctor. I'm calling you because I'm feeling a little dizzy this morning. And I think don't have taste anymore. So I'm a little worried.

Okay. It seems that you may have some COVID symptoms, right? So what I will do right away is I will prescribe you with a test and also with paracetamol because I assume that you have a little bit of fever. So let's generate already now an Rx, so a prescription, directly along with the BCB, which is our drug database. Here we go. I'm going to select COVID test. Okay. Plus, I will prescribe you some medicine to lower the fever with paracetamol. Okay. Here we go. Okay. I think the pathology is good, and we'll be along with 5 days. So I can directly share that prescription to you directly onto your secure access, which I will do right away. Okay. I will of course provide a signature, the very first time I'm using it. Here we go with your prescription that you may normally have already received onto your...

Okay.

Okay. We see the patient side. We see you now.

Okay. I can see my prescription, yes. Okay. So what can I do with that? I can share it with my pharmacy?

Yes. Indeed, you can -- if you have already filled in and registered your favorite pharmacy, it can directly be put from you, of course, to the pharmacy.

Oh, yes. I can see the button. Yes. Okay. I can see the share button. Okay. I've done it. Yes.

And it's done. The Rx is ready to your pharmacy, you will just need to pick and collect your drug. So last but not least, we're going to come back onto my screen. We'll go back onto the physician part. Last, but not least, we still need to charge you, of course, Richard Peter. So you've already filled in your credit card number. So I'm going to be able to charge you, but I'm a little bit in a rush now. So it will be done afterwards by my assistant. I will send her a message. Okay. Thanks a lot, Richard Peter. Talk to you soon and keep me posted about your test. Bye-bye.

Okay. Have a nice day.

Okay. It's done. And I'm happy with the teleconsultation. And here, you see this little button, which is an embedded chat within the solution. And I'm going to send a message to my assistant. Okay. "Can you manage billing for Peter?" It's done and I will play -- oh, I love to play a schizophrenic role, I will become my own assistant. So we're getting disconnected and becoming the assistant right now, which is there. Okay. I'm the assistant. And as you will see here, I've received a message from the Dr. Billy, which tells me to manage the billing for Richard Peter. So we'll go onto the teleconsultation dashboard. And I will see that indeed, Dr. -- Richard Peter is to be billed, which I will do right now for EUR 25, I'm going to charge. Done. So the demonstration is done. Thanks a lot for your attention, and I warmly welcome all of you to go on to the maiia.com to discover all our great services for patients. Thanks a lot.

Thank you very much, Arnault, for this engaging presentation and your patient -- passion about teleconsultation. The key takeaway, the strong position, the fact that Maiia is a health care digital assistant and the fact that you can take an appointment without -- you can make a teleconsultation without appointment. The most important is that the only offering doing this, and we can do this with assistant or without assistant. Teleconsultation between patient and the physician assisted by your retail pharmacy give a possibility to attract to teleconsultation people who are not smartphone-friendly. So this increase the addressable market for Cegedim. So you know about Maiia already, Maiia Agenda, Maiia Teleconsultation and what -- and now we have a newborn. It's called -- from November 26, it is called Maiia Gestion. Maiia Gestion address the need of physical therapists. On the day we launched the product, we have 7% of French therapists that have registered for the webinar presenting the product. So it's quite impressive, 7% of French therapists assist -- registered for the launch webinar. I don't think that someone else could achieve this thing. Maiia Gestion is a next-generation product, and it's already on the market. Let's let Laurent Savelli, Chief Product Officer, tell us a little bit more about Maiia Gestion and how they developed the software.

Hi, everyone. My name is Laurent Savelli. I'm Chief Product Officer at Cegedim Healthcare Software. I'm very proud to show you today Maiia Gestion. Maiia Gestion is a new trend in practice management solution for the French ambulatory markets. Along with Maiia Agenda and Maiia Teleconsultation, Maiia Gestion is part of the suite of solutions called Maiia. Maiia Gestion naturally comes from the evolution of the health care professionals market. If we look at the official numbers, the average age for doctors should steadily go down from 51 years old to 45 years old until 2035. Also, more than 50% of medical doctors will be female as soon as 2021. And female will represent 60% of MDs in 2034. Last but not least, 61% of MDs worked in multi-specialty practices in 2019 compared to 54% in 2010. At Cegedim, we believed that we had to come up with a new EHR and practice management solution adapted to the needs of health care professionals who are getting younger and younger with the representation of female getting higher and higher and who tend to work more and more with other health care professionals. And we decided to ask HCPs themselves to create this solution with us. They have naturally created a web solution for EHR and practice management delivered in a SaaS mode and available on laptops, tablets and smartphones. This solution is Maiia Gestion. Maiia Gestion aims to cover the needs of all health care professionals within all types of ambulatory practices: Sonia, the physical therapist; Julian, the cardiologist; Saleem, the dentist; Mary, the orthodontist; Benjamin, the OB-GYN; Claire, the GP; Helen, the admin assistant; and Clyde, the dental assistant. We launched the first version of Maiia Gestion on November 26. The first version is dedicated to physical therapists, although we are already working on the version for medical doctors and dentists. We created a focus group with 10 PTs back in January 2019. We met every other week in our office for 2 hours. In addition, we made a tour across the entire country to meet with more than 150 PTs to share and challenge what we did with the focus group. And we started back from scratch. Our only source of design was their needs. The very first exercise that we did with the focus group is called the card sorting. We gave them 72 cards. Each card was referring to an action that they do every day, every week, every month. They had the mission to collectively classify the actions in specific baskets, such as patient chart or billing. In addition, they had to score each action. One star for a low-priority action versus 4 stars for a high-priority action. When we look at numbers, we saw that they classified 39 cards into the patient chart basket, 20 into appointment booking and 17 into billing. Also, when we looked at the average score they gave per card in each basket, we saw that card in the appointment booking basket scored at 6.5 average versus 6 for the billing basket and 5.8 for the patient chart basket. At the end of the first exercise, we could easily conclude that the expectations were all around appointment booking, patient chart and billing. Then we created user personas. Why? Because it is much easier to create something new for someone. We created Sonia, the physical therapist. Sonia has 1 goal, treating her patients. She wants to relieve the pain and help her patients recover an autonomous way of life. She is 30. She's engaged, and she has a kid. She lives and she works in France. She's extrovert, very analytical, adaptable and very active. In terms of design, she uses a lot of apps on her iPhone and iPad. She expects now the same type of user experience from the EHR and practice management solution that she uses every single day. In terms of subscription, she's used to pay a monthly subscription for Spotify, Netflix, Amazon Prime. She's completely ready to pay monthly subscription for Maiia Gestion. In terms of frustrations, she uses today's solution from the market, which is client server. Therefore, there is something physically installed on her desktop. And the desktop stays within the office at all time. Sonia is very frustrated not to access her patient files and billing information from anywhere at any time. Then we created Sonia's journey map to understand when and how she does each action during the day. We divided a typical day in her life into specific moments, the opening of the practice, the moment before the encounter, the moment during the encounter and so on and so forth. We distributed all 72 cards that we played with at the beginning across all moments of the day. This is all the yellow plastics on the slide. In blue, this is Sonia's feeling. In orange, we identified Sonia's challenges. And in green, how Maiia Gestion can help Sonia overcome such challenges. We did this for Sonia, the physical therapist; for Helen, her assistant; and for all other personas. From there, we matched the navigation stat of Maiia Gestion. The navigation stat of Maiia Gestion is based on the day of Sonia, Helen and all the other personas. The way we move from a screen to the next is solely based on the organization of their day. The only way to make a solution simple, clear and user-friendly is to minimize the number of screens. The only way to minimize the number of screens is to start back from the user needs. Maiia Gestion is about 2 main screens, the 360 view of My Activity and the 360 view of My Patient. I'll show you now how Maiia Gestion will help Sonia to better manage her time, her patient and her billing. Once logged into Maiia Gestion, I land on my dashboard. This is the 360 view of my activity. Sonia's first challenge is time management. Therefore, Maiia Gestion will always display the time line at any point in time. It is always in front of me, irrespective to what I am doing within the application. Maiia Gestion is natively integrated to Maiia Agenda, which is part of the same suite of solutions. Therefore, the time line is fed by appointments coming from Maiia Agenda automatically. The vertical dash that we see here reflects the current time. I start at 9:00 a.m. with Cami, then I meet Zoe at 9:45, Alfred at 10:30. To augment the time line, I see the list of the patients of the day right here. It gives me additional insights for each visit. For instance, I have a diagnosis to do on Cami. I have to invoice Zoe and to collect the payment, et cetera, et cetera. Here, on the right, this is all the KPIs that reflect the good health of my activity. KPIs about clip submission, denials, collection, et cetera, et cetera. For instance, I can bill 53 sessions across 11 care plans. Just by clicking on it, I have the list to the corresponding 11 care plans so that I can solve -- let's assume it is 9:00 a.m. I am meeting with Cami. I get to the patient chart just by clicking on the time line. This is the 360 view of my patient. Cami, she's 16, born on June 22, 2004. I can see her social security number, phone number, payment address. I get to the entire patient landing file just by clicking on the 3 dots. I can then view and edit the entire information. On the right, this is Cami's lifeline, all past and future events around Cami, such as appointments, encounters, treatments, notes, et cetera, et cetera, done by myself or my colleagues within the same practice. This is the tool that helps improve patient care coordination across HCPs within the same practice. Last but not least, right in the middle of the screen, the main reason why Cami is visiting me today. Cami is visiting me today because she has back issue, and she's been prescribed 25 sessions of physical therapy. This is the entire progress wheel. She's done well already, and I have invoiced 7 of them. Right there, I see the metrics and scores that I've been capturing and tracking since I started Cami's treatment. Today, I would like to generate a PT diagnosis to share with the prescriber who referred Cami to me. In one click, Maiia Gestion will collect and consolidate all the information it has to generate the documents such as the notes, the health factors and all the metrics. Now it's time to walk Cami to the gym that she can do some work out. I then grab my tablets, and I have access to all information and all the features of Maiia Gestion on my tablets in a responsive manner, optimized for the real estate of the tablet. Back to the office, it is now 9:45. Zoe is coming. Just by one click on the time line or one swipe on the tablet. "Hi, Zoe, how are you doing today?" I don't have to navigate back to the dashboard or to the list of appointments in my calendar. No. Just one click, one swipe, and I get to the next patient of the day. The way Maiia Gestion moves from a screen to the next is solely based on Sonia's schedule for the day. Let's consider now that the phone is ringing. The patient is coming. Her name is Emmanuel. She's an active patient at the practice. She has a very strong back pain today, and she's requesting to have an appointment in emergency. In one click, I switch to Maiia Agenda to schedule this appointment. Maiia Gestion and Maiia Agenda are natively integrated together. No more double entry. Patient information and appointments are shared across both solutions. I book this appointment at 4:45 today. I can see it here in my calendar. Let's consider now that this is the last patient of the day. The next swipe, the last one for today, will drive me the dashboard. The 360 view my activity has been updated based on all the activity I've done today in terms of encounters, invoicing and collection. At a glance here, I know what tomorrow will look like. Here is how Maiia Gestion will help Sonia better manage her time, her patient and her billing. Thank you very much.

Well, I don't know you, but for me, the time line is really amazing. And the multi-device aspect, the integration with Maiia Agenda and Maiia Teleconsultation and the flows of workflow, a state of the heart, clearly set us apart from any other software on the market right now. We're able to do it because Maiia Gestion was developed by users, for users. You're using the fantastic power of innovation that we have on our group and on our talented people. Cegedim also provides solution for pharmacists in France, in the U.K. and Romania. Smart Rx, it's a co-leader in France for pharmacy management software. It's also for real-time monitoring on key indicators and innovation patient support solution. The demo you will see in just a second will feature some major innovation for French pharmacies, such as OCR recognition on prescriptions, generic substitutions modules, assistance for that and new sales module and even more. And now just have a look on the French Smart Rx solution. [Presentation]

This is another innovation for French pharmacists. Now let's close the channel and see what's happening on the U.K. pharmacist market. Pharmacy Manager, our market leader solution for the U.K. market, offer a full suite of functionality to support pharmacy team in working smarter, driving efficiency and optimizing the patient experience. Let's have a look on Pharmacy Manager solution for U.K. [Presentation]

Another example on how we're developing solution for user at -- by -- user help us develop solution for them. So first, we get users. The second is the full integration of the NHS services that we can do this because we have a very close relationship with the NHS. And the last point is that we added automation and intelligent tools in our modules. So a very powerful thing. As Laurent told -- as Stefan told you earlier today, good things came to those who wait. This is now time to review the example on how CHS innovate in terms of hardware and partnership. They are right in front of me on this table. This is Twiin. What is Twiin? Twiin is a smart powerful, stylish computer in a small box, 15 centimeter by 15 centimeters, very light, oops, as you easy. Coming in lot of different colors: blue, white, red. This is the color of Maiia Gestion, you remember, very strange color. And you have 2 different colors for gray. And this one is completely wood on craft, so doing by hand and a very fantastic computer. Small computer, very powerful, that can be used for everything. The innovation on this is that you get 2 card readers on this. One for the professional health count. And the second for the patients, is on vital count. So you can just put this stick out. And the main fact is that many doctors face very difficult situation or many health care professional, very complicated situation, is disconnection of card during the billing process because this is connected by USB on this. This is fully integrated. You'll see connected with the Wifi. So very fantastic computers developed by a French company called Bleu Jour, and we have a partnership with them to develop this for the health care professional. However, if you want one, just switch me, and I will provide you one. Of course, you have to pay for that. So this is another way of developing a partnership, providing software dedicated for the health care, very stylish and powerful things. So now moving to another part of Cegedim because innovation is everywhere. As you may see, health care customers are very demanding in terms of liability and security. We believe that our expertise in this area, combined with our know-how, bring real value to customer outside the health care system with our SRH and e-business solution. And SRH and e-business are core activity to Cegedim. We are also developing -- as this is the core activity for Cegedim, we are also developing exciting products and new tools. Let them start with Cegedim e-business, innovation at Cegedim e-business. Cegedim e-business, it's a European leader in digitalization of processes and invoicing. Tristan de Foucher, Director of International Development at Cegedim e-business, will explain what they do and how they do this in a very short video. [Presentation]

One of the most promising affiliate of Cegedim e-business acquired last year is a U.K. company, leader in this market for electronic order and invoice solution, it's NetEDI. I have asked Andrew, Managing Director for the U.K. and Ireland business, why Cegedim acquired NetEDI, what is the growth strategy and how we are growing our platform. So let's listen to Andrew right now. [Presentation]

[Audio Gap] representing why we make acquisition of NetEDI and how we grow our strategy on it. We now move to the next video of [ Mehdi ]. [ Mehdi ] is a senior developer at NetEDI, and I have asked [ Mehdi ] a few days ago how we stay innovative. So now the video of [ Mehdi ]. [Presentation]

Now what kind of offering offer SY? So we have digitalization of processes from contract to the pay process, we have electronic signature on all documents and we can create value with our data. So we use the data that is included in invoices to provide more information, more insight to the user of that. So now we see a small video very quick to see how SY flow can help you doing business. [Presentation]

So this was SY flow, and now you see that the Cegedim customer list is very impressive, a lot of difference. So you see that, not only on the health care space, but everywhere. We see Adecco. We can see Steria -- Sopra Steria. We see Easytrip. Michelin, Bosch, Lagardre, TFA, Thales, Bouygues, SNCF, Conforama, LVMH and automotive Staples, Kronenbourg. So you see a very, very -- a lot of segments, all sectors even chocolates for Christmas, Lindt. So we really have a lot of different offerings. So now we're moving innovation continue. We also have innovation in other sectors like SRH. So SRH provides payroll solution, offering cover wide range of functionality, payroll, personal administration, time management, HR indicators, monitoring, carrier and skill management, HR analytics and HR processes and document digitalization. All of this via a SaaS platform. It can be combined with capital processing or full business process outsourcing services providing either locally or offshore in Bucharest or Raba. SRH is completely digitalized onboarding process. Let's have a look on the onboarding process of our SRH. [Presentation]

As you may see, our offering really helps our clients navigate through the digital transformation, and we can do it. Why? Because we have a unique ecosystem that allow us to combine different kind of expertise. This is something unique to Cegedim. And now as we are back on stage, let's learn some of the exciting new products from Futuramedia. Futuramedia is a Cegedim group company specialized in digital out-of-home solution. The first new technology is the blowing effect of the hologram. I don't know how this came to the video. Sometimes it's complicated to capture the nature of the hologram on video. However, I can tell you that it's really a wow effect. It's like kids seeing Santa Claus for the first time. This product is connected to Wifi so that content can be updated online every time you need, and we provide with the databases of 3D different content. The device we draw attention from the customer and net pharmacists give maximum visibility on special offering. Next, have a look on digital touch screen. So on this touch screen, we have then going in advertisement and can select this by touching the screen, and I have selected drugs like Doliprane. This will just give me a small piece of paper. I just show it to the pharmacist, and the pharmacist will deliver drugs without any problem. Then we have hand sanitizer. And normally over there, you see an advertisement coming on, but we had a small issue on this. It's done. And now we have a digital floor. What is a digital floor? It's just -- you see this moving green cross. And when I will walk on it, it will move and open it like the sea and Moses. So that's coming on, and you see the red cross moving on, and I see a new logo over there. So I may have an advertisement, for example, for Doliprane, seeing that I can find it for EUR 1. And the second effect, you see that it's like walking on the water. It's really fantastic. I don't know if you see it, but it's like moving. And then after that, they will be again, covered by the green red cross. I love it. So you see, it's moving. Okay. So now we can move to the last part of this presentation, just on the acquisition that we have done in the -- just switch off all of this because the sound is just boring. Thank you. So Clamae Group is just a way to have a more effective way of making payment in state of credit cards. So in state of having credit cards, you may use the Clamae system, the SSP, SAFEDEBIT system, the new directive for European parliament that allow you to use a payment for making payments in state of credit card, so it's cheaper. And of course, we developed this. So how this is? You came to the store or online. You just check, you put everything on your basket, you are ready to pay. You just enter your information and your given account. SSP will score -- scoring algorithm that will prevent fraud and verify funds. So certain that you will have to pay something. And if this is approved, the client will receive SMS code to sign the transaction. So again, electronic signing. And the seller is guaranteed to get paid because we get authorization with our scoring -- with the scoring algorithm. And on other side, for the subsequent transaction, the client do not need to enter again information. So a very efficient way, very easy. Once it's done in the system, it's done. We can ensure that the seller will get paid. And second, it's much cheaper than using credit card. And of course, this technology will be implemented in most of our product in the coming months. So another chapter now is sustainability. Cegedim growth strategy is based on high standard of innovation, quality and investment and on a strong core value. Our value are -- and body in our man and woman who work in the group corporates ecosystem. This value our innovation, customer satisfaction, respect, ethics, synergy and personnel and professional development. They help us achieve one of our top goal: delivering added value to our clients, partners, shareholders and employees and the unit all of our stakeholders. If you want to learn more about sustainability, please see our Social Responsibility Report that you may find on our website and our code of ethics that can be downloaded, and you have the address on our website to download this. I'll remind you that this slide will be available on our website in a few minutes from now. And now since we are running out of time, let's go straight to our financial strategy. So the focus clearly is on the free cash flow and how we get the free cash flow and how we get cash on the company. First, we have a very high share of recurring revenue. I told you early today that we are between 85% and 95% of our revenues that are recurring. So this is recurring revenue that help us having this done. Then we have cash preservation. We already told about it. We don't present cash management due to the COVID situation, but not only due to this, we always have the cash -- prudent cash management. Our revenue count is primarily of sales of services, delivering using our software. Most of our clients are now in a SaaS solution. So there's subscription, so they pay a monthly fees for that. And they have access to our database, so they also pay fees for that. We can also, from time to time, sell some license. And to lesser extent, some hardware sales, like, again, I remind you, the string can be sold. Of course, this is a piece of hardware. On the first division, a kind of revenue we get consulting and technical engineering services, recurring services linked to our data flow business and exchange platform for the claims management, but also for the payroll and for the electronic invoicing and digitalization and sometimes some specific product. For the Healthcare professional division, we sell the package of software, including maintenance and assistance. But more and more, are they moving to SaaS, they are a subscription model and monthly bills for that to software on the SaaS on the monthly billing. Sometimes ad hoc license, we have subscription to databases annual sales and, of course, some installation depending of clients. Free cash flow from operations. So if you look on the free cash flow for the last 5 years, you'll see that this cash flow before tax and interest, quite stable. Corporate taxes, again, quite stable since 2016. Acquisition of intangible assets, a little bit increase but quite stable. Acquisition of tangible assets, quite stable and other also. What really changed is the change in working capital requirements. There are ups and down. You see the biggest one, it's in '18. We get plus 64 and minus 64 in 2019, and the reason for that is that we get a lot of different things happening to the working capital. The first one was the implementation in May 2017 of a nonrecourse factoring agreement. Then we cancel it in December '19. So we get the positive impact, the negative impact. So you see this happening over there, explaining part of this. The second thing is the fluctuation of advance paid by client on the BPO activity for health insurance. They give us some money. We use this money to pay for the claims, et cetera. And in the past, this money have been accounted in our accounts, so we consider this is our cash. Now we consider this is segregate to the cash, so it's put apart, so it's no longer affecting our working capital requirement. And of course, due to the COVID-19 crisis, we postponed some social charges and rent payment. So if you take a lot of this, if you exclude the COVID-19 crisis, some one-off impact, the fact that we have put nonrecourse factoring. Now it's canceled and we'll not put it again and the fact that we segregate cash from the BPO account normally starting from 2021, our working capital requirement should be stable over time and should be at 0. So the generation of free cash flow from operations will be more easy to read, and you will see that we generate some cash as this was the case in the first half of this year. We're going how we use our free cash flow, so the CapEx. We use it for innovation and acquisition. So we use it for, of course, maintenance CapEx. We use it for innovation and M&A. CapEx for innovation will roughly remain at the stable, which is EUR 45 million per year roughly. On acquisition, were designed to gain its use, as I mentioned, for gaining market share, expanding new region, adjacent business or for technology. We do not plan any disposal. We think we have the right portfolio of product and offering right now, and we'll do some selective bolt-on acquisition. And roughly, we'll spend on enterprise -- total enterprise value of acquisition, EUR 30 million year. Even if this year, we are close to only to EUR 6 million and probably end it at this level. We have a solid balance sheet with very reasonable leverage. This is a one-off impact in 2018 relating to the factoring, but as you see that our leverage came down from 4x to 2.1x and should remain at 2x over the next years. No debt maturing before October 24. EUR 65 million of RCF undrawn, and the majority part of our overdraft facility have been used. So if you summarize, we have business performance, cost and capital efficiency that we use for innovation, organic growth and M&A, and this will provide long-term cash flow generation. So it's time for wrap up. So you remember this slide, this was the first one we used at this time. This is the first slide that we have seen. So I think that better now, you understand that we have megatrends supporting the development and the fact that we have a clear and very good position to take a positive view from the digitalization of the economy, an innovative company with talented people and a clear financial strategy based on generating more free cash flow and using this free cash flow for acquisitions and innovation. We have the unique ecosystem with integrated player in the health care, EUR 500 million of revenue, 20% EBITDA margin in 10 countries, and 84% of our revenue are generated in the health care field, and that innovation is embedded in our G&A. Megatrends. Aging population, chronic disease, digitalization of economy, shift to an ambulatory care, shortages of staff that implied more telemedicine, more regulation that would -- that you need now that software are medical devices and greater patient engagement. So what is the equity story for Cegedim? Solid business model. Innovation is our motto, long-standing shareholder support. I remind you that FCB, the company from the founder on 54% of the company, and they are convinced to maintain this level and to have more than 50% of share and entrepreneur culture. Having that, we have completely refocused the group on Europe, on software for doctors, on data and on services. All of our product on SaaS right now, and I don't say how you can be on the business -- serious on the business without having SaaS version of your software, and we have a unique integrated health care ecosystem. Strong market position, strong recurring revenue base, stable customer base and focus on free cash flow. Yes, we are uniquely positioned to drive digitalization of the economy and specifically from the health care sectors, and we are locking the massive potential of the group by creating synergies between our different products. And I don't know if you have seen this, but I love the small logos. Just to add a financial agenda. So the next event is on January 26, we'll release our full year revenue for 2020. And then in March 18, we have our earnings for 2020. Analyst coverage, so we get covered from Socit Gnrale and Kepler Cheuvreux, and this have significantly increased in 2020 because now we have coverage with ODDO BHF since July, and Portzamparc since November.

And now we'll move to the Q&A session, and we'll have our presenter that will be ready for that. So I just remind you that you may ask a question on your Q&A box. They're just giving me questions. Thank you. We already have some questions on the paper, but you can also continue to use it on the Q&A box, or you can raise your hand and ask questions. Sorry. And you can also ask questions. If you ask questions, please turn on your camera, that is more convenient for us to see you. And you also can send [email protected], and I will try to respond to your question in the next 24 hours. So the first question is, do we have customer satisfaction? Have you done a survey which measures the level of customer satisfaction? Yes, we're doing this from time to time. We have some customer satisfaction. We'll do this on the Maiia Gestion. One thing, we have webinar. We have 7% of physiotherapies in France that connect -- that registers for the webinar. And we already, in the first week, signed 159 contracts, so I think that is the thing. But as we work very closely with customers, we, of course, have always the feedback from the customer on the survey. We -- most of our offering on SaaS, of course, from time to time, we're selling some licenses on specific things. What is our goal in terms of future sales grow, EBIT margin? Five years from now is very long term and very far from here. What we know is that the sales will continue to increase, that our -- if we increase sales, our EBIT margin will increase. And our target is to be close to our peers. There is no reason that our margin and sales growth will be lower than our peer in the coming years. I have on stage, Laurent Labrune, and Laurent Savelli; also. So you can -- and Arnault Billy. So Laurent Labrune, managing directors; Laurent Savelli, Chief Product Development for Maiia Gestion; and Arnault Billy is in charge of Maiia Teleconsultation. So do we have any other questions? We have one. So we have -- do we have plan to expand Maiia Gestion to other practitioners?

Definitely. So we launched Maiia Gestion for PTs, physical therapists, a few weeks ago. And we are already working with doctors, both GPs and specialists, and we're also working with dentists. So within the next coming months, we will keep launching new features, new modules for new specialties that we don't cover yet.

Thank you, Laurent. We have other questions coming in, just taking notes. As I mentioned, that revenue -- recurring revenue are in the range of 85% to 95% of our total revenue. This is a subscription-based as teleconsultation, Maiia Gestion. Most of our product on SaaS. This is a subscription client signed normally for a certain period of time, so we get clear visibility on that. And once you adopt one of these software, it's complicated to switch to another one. Maybe one of you may explain how the client is a little bit sticky when they chose one of our solutions.

Okay. Thank you, Jan. Well, in fact, I don't know if we can say but -- customer being sticky, but at least we try to maximize the use and the satisfaction of our customers. So when signing a customer based upon a subscription on a SaaS mode, what we ensure is once we have signed the customer, we want to ensure that he is well trained, well educated on how to use, for example, the teleconsultation service, so he's quite confident with presenting that to the patient. And once he gets used to it, once he is using it, along with their patients and the satisfaction is coming up and is starting to be sticky there.

We get to another question concerning return of capital. I don't think we have a clear target get about return of capital. It's more that we're looking for innovation. So we know that on the long term what we develop, this is developed with user for user. We know that the product will find the market, will have increased market share, that this market will be a clear leader on that, et cetera. So we don't really look purely on financial side to see what kind of return of equity we may have a return of investment on different products. We know that this market -- this product will have a market and that we'll be able to sell it because we discuss it the time with the user. Another way to say, we have a long-term view on our investment. It's not a short term that tomorrow, we need to have each person, it's very more on the long term. Of course, we calculate return of investment. When we do investments, we know exactly what kind of it will have. But sometimes, it makes sense to invest a little more because we can take the majority of the market share instead of just looking for a very precise number. What is the plan to reduce the valuation gap with peers like Pharmagest and CompuGroup? So first, Pharmagest and CompuGroup is competing us just on part of our business. Pharmagest is for the business for pharmacists in France. And CompuGroup is more software for GP, also in France. But we have all other services. So it's more complex group. I think that the kind of this Virtual Capital Market Day help you understanding our business, understanding our product to see that we have invested a lot of money in the past 4 years, and that makes sense for us to continue to invest and to have right product coming to the market. And normally, the gap should reduce by just a better understanding of what we do. What is the synergies between the payroll and other businesses? You already have seen that for the onboarding the employees, we use electronic signature, digitalization of processes, et cetera. How we do this, we use our Cegedim e-business services. So by having Cegedim e-business, we can offer digital onboarding for employees at SRH. This is the first thing. The second Cegedim e-business is an extension of our third-party payment for insurance. When we pay -- when the insurance company pay for the patient that pharmacy is invoicing transaction, it's exactly what do e-business, it's digitalization of processes also. So there is a synergy with that. You want to add something, maybe?

Yes. Also, one important strategy -- synergy in the future will be around BPO. When you look at the payroll business, BPO and also the BPO for health insurance companies, where you manage the personal insurance for the employees, there's obviously a synergy. And when you see what's happening across the Atlantic Ocean, of course, the administrative teams are not only looking at payroll management, but they also manage the health insurance for the employees. So this is a direction where we will go in the future for sure.

Thank you, Laurent. One other question was about SaaS. So actually, we may say that roughly half of our clients are on SaaS and the remaining on some legacy system depending on businesses, it's complicated. And we do not want to force someone to move from license to Saas. We just need to educate the client and customer. It makes sense to move from a license model to a Saas. And as you have seen in the presentation, it really makes sense with the big megatrends to have a SaaS solution, to have access anywhere, every time on all your sources and the data. Someone said that organic sales grow between 4% and 5%? Does it seem realistic? It's a on a long-term basis, on medium-term basis, yes, 4%, 5% per year makes sense. Of course, if we have like a crisis like COVID-19, a lockdown or something like that, this affects sometimes our business from time to time. But on the midterm, we can say that we should grow by 4%, 5% per year in our different businesses. Do we plan to modify our dividend policy after 2022? Okay, so '22. The company, 54% of the company, is owned by FCB. FCB is a family holding from the Labrune family, the founder of the company. There are a lot of challenges. They do not need dividends. So we do not have any reason at Cegedim to pay dividends to the main shareholder. So we can continue this way. We have cut the dividend in the past in order to invest more on innovation and new products. At some time, of course, dividend will return. This will be in 2022, '23, '24. We'll see, depending on market condition, on what's happening, new product, competitors, should we invest more or a little less. And we'll see, over time, we are very opportunistic on that. We'll see if we need to resume and to pay again dividend. If you pay dividend, it will be probably in the same range as in the past. So EUR 0.9 per share. What kind of leverage are your easy with? We are actually at leverage of 2.1x. So this includes all debt calculated on the net EBITDA. At 2.1x, I think we feel roughly comfortable with this level. So we should remain at this one as most of our free cash flow will be invested in innovation or in acquisition in the coming years. Of course, EBITDA will increase. So the leverage will decrease only because EBITDA will increase. So we get other questions. This is more for you. I will give you time to read it. What are the current price target from analysts at Cegedim? So you can see reports from Societe Generale, Kepler Cheuvreux, Portzamparc and ODDO BHF, but most of them are between EUR 32 and EUR 36 per share. We do not publish them on the website. We have some restriction to provide analyst report, but we may consider with our legal team to see if we can deliver this. Yes, we make a lot of acquisition. As Laurent mentioned early in the interview, this is one of our 3 pillars: innovation, financial discipline and M&A. But we have made some disposals. We have made disposal of half of the company, CMS Strategic Data in 2015. So I don't know a lot of manager that accepts to sell half of the company in order to get more power in the remaining one. So it's a very, very, very impressive move and very cool address move. And this is one thing. We have sold also CCG. We also exit from the U.S. market in August last year. So we also know that we need to sell sometimes depending on the market. But yes, we're making more acquisition. We say that on acquisition, I would target around EUR 30 million per year. That doesn't mean that our free cash flow will be at this level only. There was one question. Maybe you want to answer, Laurent.

So do you have specific targets in the organization for the sales level of your different products' groups? Is there an incentive system for your management to reach the target? Well, each division has its own business plan and own targets. So of course, when you're talking about data or you're talking about software or teleconsultation, targets are really, really different. But all of them are incentivized also on the overall group performance and the overall group development. Of course, they contribute to their level of profitability and growth. And each market is not equal also in terms of potential. So yes, there's specific targets in the organization for sales. Some of them are communicated globally. Some of them are more inside our different Sector 1 and Sector 2 that we don't communicate specifically on it. Do you want to add something?

No, thank you. Do you think that providing more granularity on the financial performance of our different businesses could help to close the gap between us and our competitor? First thing, providing more granularity on our different businesses is very interesting for our competitors. So I don't think that giving more information to our competitors will help us in many ways. So we provide you some granularity. We explained you that SRH will present this level of revenue. We tried to provide you a little bit more granularity in different businesses. But going too far, I think that at some stage, it's really profit to our competitors in different ways, and that giving real incentive for investors. So of course, we provide some granularity, but going too far, I don't think, is opportunistic. There was one question on SaaS, if someone want to answer. So yes, moving from a license model to a SaaS model at some stage and after a certain number of years, increase revenue and increase margin. Why it increased margin? Because if you develop on SaaS, you need to update the system. And after 5, 6 years, you're ending with 5 different operating systems, 6 different hardware, 20 different version of the software. And if something go wrong or something doesn't works, you have to fix it and it costs a lot of money. So people, when they're going to fix the problem on a license, there are books like that with different cases to find a solution for that. When this is on SaaS, this is on a unique hardware, unique operating system. It's the same version for all people. They use a standard navigators to connect to that. One of the best standard navigator is Chrome, and it's worked very well. And it's the way of first providing lower maintenance and it's reduced, so, the cost for us for developing and maintaining different solutions. So yes, it's increased margin. The second aspect is that upselling more modules to someone on a SaaS model, on the SaaS version is more easy than on the license. For example, on Maiia Gestion, if we develop something new or some -- an additional modules, we can just say you have to pay EUR 1 or EUR 2, EUR 3, EUR 4 per month more, and you have this and the clients sign for that. It's more easy than saying you need to update your software blah, blah, blah, et cetera. So yes, this is a way of increasing revenue and margin. Just need to find where are the question generated. It's already done. Can you give some idea of level of EBIT you -- in each division, in EDI world. So first, EDI world doesn't exist. It's always complicated. It's moving, et cetera. However, normally, they should have no difference between the first and the second division. Both divisions deliver data services, software. So roughly, the margin should be the same. On the one division, we're more individuals; in the second one, more big companies. So actually, for example, at EBITDA, we are at 20% marking, but normally, each division should contribute on the same level for each one. Providing specific numbers on EBIT, there was a lot of different things happening, et cetera. What we see is an expansion. We expect expansion of revenue and margin in the coming years, but we do not provide specific number. Do you see your position in order to compare with SPR Basware or other group? And so yes, electronic invoicing, electronic signature, it's a big market. There is a place for a lot of people. We try to provide more value-added in our services. We have a SaaS platform. We have data. We also provide data. It's completely integrated. We deal with big and small companies who are present everywhere in the value chain. They were very strong at the hospitals for refilling. And in the health care segment, yes, there is competitors. Electronic invoicing, this is requested by law in most of the country because this is one of the best way to reduce the fraud to the VAT. So a lot of people came on it, but you need expertise, you need how to do this. And one very important thing is that you need a network of suppliers. So when a company came to you and say, "I would like to have electronic invoicing," and you need to see each suppliers and ask them to migrate to your system, it takes time. Now if you already have a huge network of suppliers, and you can say to 1 client that you just remain 3% -- or 3% of your suppliers that are not on our ecosystem, so that the base effect, the fact that you are big, and this is why we move to U.K. and Germany, it's helping us to compete against Basware, Healthcare and others. You want to add something? This is done. So the same question, again, more granularity or change our reporting to provide more detail by division, sales margin, et cetera. As I mentioned, it's profit more to our competitors. However, you know that we -- software, you may imagine the level of margin we may achieve on software, specifically on SaaS, you may imagine that selling data is higher margin than software and the BPO activity are lower margin than software. So it's a mix of it. It's -- and -- but will not really change our reporting in the short term in this. So a lot of questions about the target for '21, '22, '23 on EBIT revenue and now corporate profit, net profit. We do not disclose long-term target. Of course, there is no reason to do not have the same level of margin growth rate, et cetera, that our competitor. Even in some markets, we may have higher growth rate because we have new products coming in, like Maiia Gestion or telemedicine -- teleconsultation, sorry, that -- and of course, on this one, we may have higher growth rate, and we're investing just mainly for that. Yes, of course, we expect to be back at higher margins than 10% on EBIT margin. This is the level that we get in the past. We have a lot -- we have made a lot of investment. And the goal, of course, is to be higher than the level that we get in the past. It's certain that if tomorrow we sell SRH, e-business or telecom -- throughput on an IPO on teleconsultation, or if we make an IPO of Maiia Gestion, or if you take our insurance business, or if you take different advertisement business, et cetera, and you put this in [ independent ], you will see that the sum of the part is much higher than the actual valuation of Cegedim. This is one thing. So yes, the group is undervalued. If you just take the value of independent businesses, the market do not put the value on all of our businesses, the potential of that. If you just take e-business, electronic invoicing and you take the multiple of healthcare, it's higher than the full value of actual Cegedim. If you take telemedicine and you look at some of our competitors, I don't remember the name of the competitor, but if you look at this, you will see that the valuation will be 4, 5, 10x higher than our actual valuation with the same growth rate or higher retention rate from the doctors and better integrated in our already existing software like Maiia Gestion, for example, but also one that it's one thing. We have other questions on R&D expenses. I will let you respond. If we will reduce or not our expense budget on R&D. And some question on BPO, maybe you answer all that.

Yes. I think I talked about that during the introduction. The R&D expense of EUR 100 million per year looks high. Could we expect to decrease it in the future with -- when the SaaS transition is done? I think we -- of course, we invest a lot, betting on the future. And if we are betting on the future, is -- it's also because we think that there is a significant market for us where we can play a strong role. So yes, in some businesses, we will decrease the investment. In others, we will continue to invest. I think that, of course, if we can decrease investment and we are ahead of competition, we will not hesitate to do it. And -- but at the moment, we think that it's important that we continue with this level of investment to make sure that we leapfrog the competition. So this is our objective as of today. Of course, we are evaluating every year, every time the investment we're making, and I think we are taking wise decision there.

Yes? Nothing too specific.

So a question about the dentist software. And the comment is that we were not present on this market. This is true. The goal for us is not to go specifically after dentists within private practices, but really to expand our footprint in health care center. In health care center in France, there are specialties, different specialties and health care providers from very various specialties, doctors, paramedics and also dentists. We were not present on the dentist segment within this type of target. And now we want to expand, and that's why we're investing with Maiia Gestion and the full fleet of Maiia solution to the dentist to be the single partner within the market to deliver all their needs for all their health care professionals within the same health care center.

People would like to get a little more color about the BPO activity, what we do and what we -- how the development will be in the future.

We have BPO services in 2 main areas in the payroll HR business and for our health insurance companies. And it's really a trend of the market. So many customers have asked us to go this route, and we believe that as we own the software, we are able to automate a lot of process to get a lot of value in the process management of some of those back-office functions. So this is why we are bringing those solutions to our customers. This is the main area where we want to operate in BPO, and it's a really important demand. Many -- and we are communicating on a nice growth on this space. Today, we have no intention to specifically go to other BPO services.

Why we don't list SRH business? The problem, if we list one of our subsidiary is that there will be always the fact that people will play Cegedim or SRH versus SRH or Cegedim. So I don't think that total valuation of the group will increase because we list one of our subsidiary on the market. One tiny question is that the people asking what kind of pharmaceutical database we use, do we use VIDAL in France? Maybe Laurent?

We provide our own product and medication database, which is called Base Claude Bernard, which is, I would say, main competitor of VIDAL. We have roughly 50% of market share in that area as VIDAL. Maybe we are less well known to the wide public, but we're working on it with Maiia, especially.

People think that we have too much different businesses, that we are too much diversified, and this is one of the reason of the discount compared to our peers. I think that we explained before that we can create synergies by having all of these businesses. So I think that normally, after this day, you have normally understood that we are unlocking the massive potential of synergy between these different businesses. And that if we just have one business, we can make synergies with what is normal. Someone proposed that we put some of these businesses on FCB instead of Cegedim to have a more pure company listed. I don't think that investors will be happy knowing that some activities are on top on the invested company and other are on the lower at Cegedim, and you'll never know how the cash is moving in, how kind of margin we've achieved. So all the profit will be at FCB and not at Cegedim, et cetera. Now I think it's more honest and more pure to have all the activity at the Cegedim level. So all this activity, yes, it's complex, it needs time to understand all of this. I hope that today, we get a better understanding of our different businesses and the fact that it really helped us to get synergies between that. And we get at the peak 107 person attending to this meeting, and we still have 72 people still connected for questions. So we should have maybe some other questions in a few minutes. Some question about cegedim.cloud. The -- so cegedim.cloud offer solutions for in-house solution, of course, but we also have external clients. Do you want to elaborate a little bit because people ask that Laurent respond to questions.

All right. Well, cegedim.cloud is our hosting and cloud platform for the group, of course. And as we have very large cloud organization, we wanted to put those offerings on the market and to leverage those skills and this internal knowledge onto the market. Specifically on the health sector, the HDS certification, specifically in France. And we -- it's also a way to benchmark our capacity and our private cloud capabilities. So building a public cloud solution or private cloud solution for customers is really important for us to make sure we are on the edge of technology, that we also diversify our business and leverage an asset that is probably undervalued and underused if we don't expand it outside of the group and for other companies.

Thank you, Laurent. We'll have other questions in a few minutes. Just time to put it on a paper. So you see it's quite an innovative way. We're doing this in a virtual way, very high level of technicity, and we use paper to get questions. So it's a mix of paper and technology. Just coming in, people need some time to write the question on paper. This is for you. Just before I have a question for Arnaud on -- I just forgot my question. So maybe you answer.

What are your relations with the IMS? I imagine it's IMS alpha or today, IQVIA. Well, we have -- they are, at the same time, a customer where we provide them with some data. We are a customer of IQVIA on some aspects. So we have -- and we are also competitors on other aspects. So not in many areas we compete, of course, on the data side. So we are simply a competitor, I would say. This is the right term. We have good relation with IQVIA, and -- but nothing specific to say on the subject more than that.

Arnaud, I remember my question. Is that the main booster for teleconsultation was COVID-19. However, it seems that most of the customer for telemedicine are not related to COVID-19.

That's correct. Jan, do you want me to elaborate? Yes, it was a clear booster when we started the first lockdown period. Obviously, when all the practice were locked as well, the patients need still to have teleconsultation act with their physician. So of course, I think that we gain, and not only us, but all the market gained clearly maybe 2 years compared in 2 months, 2 years of acceleration. That's number one. But indeed, as you mentioned, when you look about the diagnosis that we have performed during the COVID period, only 9% of them were based upon COVID symptoms. All the rest were about seasonal diseases as well as chronic diseases and chronic diseases concern about 10 million patients in France. So clearly, we see a bright future for the teleconsultation.

There is a question if we plan to make some share buyback to take advantage of low valuation of Cegedim. I will let Laurent answer, but I know that the family prefer to put money in innovation and acquisition instead of share buyback. However, FCB have done some acquisition of share in the past months when they consider that the price is too low. This is to Laurent, too. According to the synergy coming from our different activity, could we expect that Cegedim operating margin will exist competitors? If we have an advantage compared to competitors, this should, at some stage, reflect to the numbers at some time. So yes, at some moment, normally, we should have higher margin because we have the synergies and the opportunity to make these synergies.

So a question about pricing on Maiia Gestion and the prelaunching offer that we did 3 weeks ago. So first, the reason of this prelaunch offering is ready to accompany our clients in this very specific year, a year where they faced many challenges. So not only we deliver the best solution to the market to them in terms of SaaS platform to manage their appointment booking, their medical charts and their billing, but in addition, we want to really accompany them in this very specific year, and that's why we made this very aggressive offering during the launch. How long will it last? It's not a matter of months or time. It's really a matter of numbers, a number of physical therapists who will trust us from the beginning to join Maiia Gestion. We already have a couple of hundred of them who preordered Maiia Gestion, and we will start implementing these clients as soon as beginning of January next year, so within just 2 weeks. So -- and when we reach the right threshold in terms of PTs on the platform, obviously, we will stop this prelaunch offering. In terms of success for 2021, we are very confident that the feedback that we got right after the launch that we did end of November is extremely positive. We signed the first preorders just a couple of hours after the prelaunch webinar. So we are very confident to reach several thousands of PTs live on the platform within the next few months. And we will start doing the same with doctors, again. The first solution will come to the market within next year, and same for the dentists within the health care centers.

Thank you, Laurent, Laurent Savelli, because we get 2 Laurent on stage. I think that Laurent expressed his vision of the company in the future and the interview that we have done at the beginning of this presentation, so you can refer to this presentation. Most of the vision is related to the fact that we have 3 pillars. It's innovation, delivering the best product to the client and better by understanding very well the clients and having close relationships with clients to deliver the best offer; bringing more synergy between businesses, and this should increase the company and the size of the company over time. Without any specific goals, some goals are too low, some goals may be too high. So no goal, just developing the company year after year, month after month, day after day, as we're doing right now. And I think that we have no more question from the floor. So you can still ask a question by e-mail at question at cegedim.com, and we'll try to answer to all of them in the coming days. So thank you for your time. Thank you for your participation. Thank you, Laurent. Thank you, Laurent. Thank you, Arnaud, for giving us more time on this. And in I should in advance, we wish you a Merry Christmas and a Happy New Year. Thank you. Bye.

Thank you. Bye.

Thank you. Bye-bye.

Bye.