Cegedim SA (ALCGM) Earnings Call Transcript & Summary

Good morning, and good evening, everyone. Thank you for joining us to discuss Cegedim full year 2021 earnings. Before we begin, I would like to remind you that this presentation and conference call may constitute forward-looking statements. These forward-looking statements and comments about our guidance, our expectation and our prospects and -- are based on our view as of today, March 24, 2021. Additional information concerning important factors that may cause our results to differ materially from expectation and underlying assumption, please refer to our universal registration document, specifically Chapter 7 on risk management. With this in mind, please turn on Page 3 of this presentation. I'm Jan Umiastowski, Chief Investment Officer and Head of Investor Relations at Cegedim. And this evening, it's my pleasure to provide you some colors and explain you our figures for 2021. So first, we'll start with a business group overview, see exactly what happened in the different activities of the group, and then we move to the financial part, and then moving to the outlook and at the end the Q&A session will be opened. So day after day our more than 5,600 great employees work hard to improve the health of thousands of people every minute. In 2021, revenue came to EUR 524.7 million, up 5.6% on a reported basis. This is an increase of 5% on a like-for-like basis, excluding currency and acquisition impact. Net profit came to EUR 26.2 million. So we multiply our profit by 2.5 -- 2.4 compared last year, it is an increase of EUR 15.4 million. Net debt remain quite flat compared to last year, EUR 165 million. We have now 5,643 employees at end of December, which is an increase of 6.3%. And the part of the new employees is increasing mostly on offshore compared to inshore. You see that the portion of offshore, it's higher in 2021 than in 2023, and I will be back on this later in this presentation. So we are still really focused on -- with a strong European presence. One important point is to see that we have no exposure to Russia or to Ukraine as it stands and we have also no assets or clients on this region. You will know that now we present our activities by our big businesses and not the client. So the first division, Software & Services, this is Software & Services for our clients in the health care segment, but also for the HR department. So 56% of revenue, up by 5.4%. We have on the segment Cegedim Santé. We have a solution also for health care professional in Europe, U.K., Spain, Belgium, Italy, Romania. We have Cegedim Insurance, solution for health insurance companies in France and U.K. and we have [indiscernible] solution, mostly in France, small presence in Switzerland. The flow activity, 16% of revenue, up by 6.1%. This is -- but we can say two part on it, digitalization of contract-to-pay processes, electronic invoicing. So we do this for third-party payment in France in the health care field. So payment directly between insurance companies and pharmacists or doctors of patients. And the second part, we also do this for all kind of sectors in France, U.K. and Germany. Then having software and flows, we're able to collect the data and having this data to do some marketing. So on the data side, this is 19% of the revenue increased by 12.1%. We are the real-world databases in France, U.K., Romania, Spain, Italy and Germany, and sales audit most in France. We also do some advertisement with digital and front-end marketing at French pharmacists and digital marketing for doctors in France and Morocco. And then the last segment is BPO, business process outsourcing, 9% of revenue decreased by 3.3%. Health insurance companies -- mostly for health insurance companies managing claims and a small part of it is for HR department with offshore centers in Romania and Morocco. So all divisions are up, excluding BPO, that is a little bit down by 3.3%. I will come back later in this presentation, when we look at the figures to explain why we are down by 3.3%. I will not focus too much during this group review on the segment as there will be some news on this segment about client probably or something like that later in this year. So let's focus on the first 3 division this evening. So first what is important, very strong regulatory changes in the market, and there are very strong drivers. So in France, for example, we get the government health program with Ma Santé or Ségur de la Santé. We have financial law also that make that it's mandatory to have electronic invoicing in most of the European countries. And the goal, of course, is to avoid any further on VAT. Then we have health insurance regulation that's also changing, we'll come in this later in this presentation, and we have some COVID-specific measure that make the pharmacist have some new rules, like vaccination or like testing that make that role of pharmacists is a little bit changing and need new tools to do that. And also due to the COVID, they have some impact on social measures for employees and company that is mostly affecting our HR department -- our HR asset solutions. So if we look on Software & Services, 56% of revenue, the biggest division, up by 4 point -- 5.4%. Our mission in this is to help health care professionals to focus on patient care and not on any administrative task or whatever, and on the patient pathway. So the way the patient will go to see -- the journey of the patient to see all the health care professional and different health care providers in this segment. So what happened, and you probably all know, it's on March 1, we have released a big deal for Cegedim Santé that we are doing a reserved capital increase of EUR 65 million or 18% of Cegedim Santé equity. There will be 3 partners that are Malakoff Humanis, VYV, PRO BTP, that are private health insurance companies in France, and it is also an industrial partnership. And the goal is to improve the pathway of the patient and accelerate Cegedim Santé growth. At the same time, we'll make acquisition of MesDocteurs. Key metrics on that, it's seeing something 12% of full year 2021 revenue, 5% of operating income and this value -- this part of Cegedim up EUR 361 million post operation. Again, this is some financial figures, but they are more important than some metrics that we have at Cegedim Santé 100,000 health care professional. That means we can address a huge amount of health care profession. And the second is that Malakoff Humanis, VYV, PRO BTP, have access to and cover 25 million people in France. This means that we have access to 25 million patients in France with this deal. So when you combine this 25 million patients in one hand, 100,000 health care professional users of Cegedim Santé solution, this make a great deal and this is what we'll see right now. So this deal makes something that we're waiting for a long time. It should combine all of our expertise in different activities in health care together to provide unique solutions and not perhaps some silos. So it's combined care providers, pharmacists, allied health professional payers with teleconsultation with the payment altogether combined and exchange of information, referral, EHR and prescription, and we can also have medication at the base. So this is really the big part and this will really help us to improve the head for the patient. For example, we'll be able -- when you will use the Maiia application, the website for booking and appointment with -- we have a doctor to automatically see how much you will be reimbursed by your private insurance companies to be able to see all the things the insurance company is providing you. So all the benefits that you may have and are not aware because for the insurance companies, they are complicated to communicate for the beneficiary. So by having this, Maiia will really become the digital hub to connect the patient with the insurance company with the doctor for taking appointment, but also for payment to say exactly how much you will need, you will have to pay for the doctor. If you go to see the doctor, maybe you will have to pay less, et cetera. Some insurance companies have also a network of doctors for chiropractors or nurses. We can imagine that some of them can be -- you can use our solution to improve the delivery of care to the patient. So Cegedim Santé, if we look now at just the French activity, so the leadership is on a Maiia, Maiia is a platform. It's an appointing platform, but also this will be the new software for health care professionals, all of them. So Maiia doubled the revenue from 2020 to 2021 only for teleconsultation and appointment. With Maiia Gestion Kiné already 2,000 clients in 1 year, with quite an impressive chunk in terms of clients, and will release during the year the solution for dentists and for doctors, GPs. Then they will follow for specialists, et cetera, et cetera. And this is really the new framework for all our software for doctors. Then when we move to the French pharmacists and Smart Rx, we have launched our new next-generation solution with mobile terminal for payment. So you no longer have to go to the desk to pay for drugs that you have taken or something that you find in the pharmacy. This can be done at every point in the pharmacy. So there are a lot of people, pharmacists can go around to pharmacy for payment, et cetera. And we already have more than 30 pharmacy that have signed for this new solution. And also, if we look on multidisciplinary health centers that is where you have different doctors and different expertise in the unique place. We are rich in 2021 that we have a market share over 50%. So more than 1 of 2 health center in France are using our solution. Now we should move to international. So first, in the U.K., Cegedim Rx U.K., our award-winning pharmacy product of the year, so these have been the specialist press and user defined as the best product on the market in the U.K. and we are very proud of this. This recognizes the quality and the innovation of our product. And another recognition will really get this recognition in France to Cegedim Santé that the fact that 3 biggest insurance companies in France have decided to invest in Cegedim Santé. And this is another recognition in the U.K. market. Then in Spain, we have reached more than 40,000 users. We have won 2 more regions and also we are equipped for more hospital. In Romania and Belgium, we'll have a cloud solution ready to roll out on the market at end of 2022. Now if we move to Cegedim Insurance, 43 million beneficiary managed by our solution, where in 2021, we get our first customer with this new cloud solution. So we are developing now this cloud solution, and now we see that already we just came to the market we're able to gain time from that. I will have new models ready to address the reform of the supplementary social protection for civilian servants. This is very French specific, that civilian servant will change the way they are protected on the health [ insurance ]. And we have already the new modules to manage this. So we're already on the market. On delegated management, so this is mostly for the Flow business or the BPO business, we have signed some contracts. This will be -- it's improved the position of that. And we have also a new product in the market, TP Santé. It's a basket of care items that are not reimbursed by social security. And if you go to the pharmacy, this can be directly used by the third-party payment [ insurance ]. So you have nothing to pay upfront. You can -- you will be aware mostly by using the Maiia platform that you have this -- that you have access to the basket of products that are not reimbursed by the social security. And having this not reimbursed by the social security, you will be able to pay nothing because there will be a direct payment from the insurance company to the pharmacists. And we get our first client on that. And then we have an acceleration of deployment of our third-party payment at hospitals. Sorry for the French text on the slide. Now moving to the data and marketing part, so while it's connected, it's still the patient with the pharmacy, the research of the care provider. We can have data and medication database and this gives access to health authorities and pharma companies that are our customers. So the first part is GERS in France. So revenue doubled over the next -- the past 5 years, so very impressive increase. So the increase in needs came from the COVID -- part of it came from the COVID pandemic, of course, but not only. And we have some development for electronic sales from pharmacists. So we are able to manage this new channel of sales that are buying to pharmacists or they are going to supermarket and we'll collect also this information. On the real-world data evidence, this means that we collect information from the market to really follow the patient over a period of 5 or 10 years to see really what happened to the patient if you take these drugs or another one, et cetera. So it's very important for a pharma company. And now our database is run Italy in France, in U.K., in Spain and in Belgium, and we have more than 69 million patients [indiscernible]. And we plan to open Germany at the end of 2022. And we have -- this also helped us to develop algorithms for our disease detections. And having the data, we give access to researcher, the data scientists to doctors, et cetera, and they can manage this and find algorithm and artificial intelligence that we'll be able to really make a diagnosis for the patient in state of waiting probably 4 to 5 years to have the identification of the scrum disease, we can shorten the time for that to something like 24, 18 months -- between 18 and 24 months by having this algorithm included in all of our software. So we collect data from our users, and we can resell it to pharma company or government but we can also take this data, put it on our software to improve the way we deliver care to patients by having that, and this is something quite unique because we have the data at the group. Another thing is now digital advertisement. So you'll see this photo of a small window of the pharmacies in Marseille. This is the kind of new window that we're putting really pharmacists won't -- don't just have a TV in front of the window. They really want that people be attract and theatricalization of the fact that putting advertisement. We have now 3,100 partners -- pharmacy partners, an increase of 19% compared to 2020. This is more pharmacists that 1 that we manage all of the covering inside and outside for the pharmacists. And on this business, we get a very nice recovery after 2020 public health crises that make that activity completely stopped in April 2020 and as we'll see later in the slide show, this is one of the most profitable year for C-Media. Futuramedia, that's more dedicated to TV screen in front of the pharmacy -- window of the pharmacist, we'll develop this activity in U.K. So we're starting this activity in U.K., just after -- the last quarter of 2021 in the U.K. to very good success at this stage. Then the last part of it, it's TeamsRH. So we're making payroll for some big company, not only in the health care segment, but also for the banks, for retails, for transport, for luxury companies. We have in 2021 issued 200,000 more new payslips. So it's quite impressive. We also move into the public sector now, and we have signed 10 contracts in 2021. We have a new version of MyTeamsRH with 10 customers that already jumped on it. And we have chartered accountants that are also using our solution now. And you see that we cover all of the need of the HR department with our solution. This is the picture that you see on the left side. Then if we move to the Flow business, we have the contract to pay and what we -- is also in that because digitization of key company processes and it's exactly as doing the third-party management for insurance company, we can do this for all kind of companies. So we have -- we expect to handle in 2022 1 billion transactions, and this is a direct consequence of our network effects. So when you get a lot of clients, you get a lot of suppliers. So if you get a new client, you already have most of the suppliers in our network and is growing quite fast, and we can attract more and more people. This segment has been affected by the COVID-19 pandemia, specifically in U.K. and Germany. However, we have a strong increase in new orders, so a 30% increase compared to 2020. So a strong demand and very high rate of new contracts signed in 2021 that some of them will be deployed in 2022. And another thing important is that our larger customers are already investing and preparing for new mandatory invoicing law. This means that we are already aware of what's happening and how this be, et cetera. And this clearly gives us an advantage, a competitive advantage to some of the competitor that do not understand our clients and it's more complicated for them to assess how company will manage this transition. So to conclude my business review, today on this is Cegedim is confident in the future growth potential, a market of solid growth prospect despite some short-term uncertainty. We are well positioned in business with possibility to expand our margin. We are driving innovation, and we are forming some partnerships, specifically with insurance companies. And this is all backed by operational for discipline. This is the foundation of the group. Now moving to the finance part. So roughly the same figures, but revenue came up by 5% on organic, amount to EUR 524.7 million. Recurring operating income is down by 4.4% to EUR 39.9 million. I will come in this in 2 minutes. But one of the explanation is exceptional items. We have a charge of EUR 19.9 million in 2020. And in 2021, we get an income of EUR 3.8 million, this mean that our operating income is doubling to EUR 43.7 million, that is an increase of EUR 21.9 million. So our operating income is up by 100% to EUR 43.7 million. Net profit came to EUR 26.2 million, but between operating income and net profit we have net taxes and interest payment only. Operating free cash flow is EUR 31.9 million. It's down by EUR 15 million. However, in 2020, we have postponed some social charges from 2020 to 2021. This means that in 2020, we have paid EUR 14 million less of charges. And in 2021, we've paid the charges for 2001 plus EUR 14 million. So if we exclude the swing of social charges in 2020 and '21 operating free cash flow have been -- will have be flat compared to last year, which is in the coming slide. And net debt is flat. But really, that decrease because, again, we have this impact from postponement of software charges. So very quickly on revenue, up by 5%. You see that quarter after quarter, we've been up by 4% around. A big jump in the second quarter due to the base effect just that fact in the second quarter of 2020 will be down due to the pandemic and the first quarter have been quite strong before the pandemic in 2020, so we've been just up by 1%. But at the end of the year, it's 5% increase, very recurring part of the -- very high share of recurring revenue. And 90% of our revenue generated in euro, this explains why the currency impact is quite small of 0.3% only, and we have done an acquisition of Medimust and Kobus in the second quarter of 2021. So coming to the fact that recurring operating income decreased while the first impact of the payroll increased by 8.8% to EUR 22.6 million because our head count increased by 6.3%. You see that most of it increased in the offshore compared to onshore, that's only 77. This means that the part of offshore in our total employee headcount, it's been at 23% in 2020. It's now at 26%. The reason why the payroll increase also by 8.8% is due to the capitalization of R&D. Capitalization of R&D decreased by 3.6% by EUR 1.8 million. This doesn't mean that we are investing less in 2021 compared to 2020. This simply means that we capitalize less product. Why? Because some development is quite small or we do not have any longer big project, et cetera. This means that we capitalize a bit less, there are very strict rules to make capitalization. And so we capitalize less. The second effect is coming from D&A. D&A reached EUR 64.8 million compared to EUR 62.5 million last year. This is an increase of 3.8% or $2.3 million. But the biggest increase came to amortization of R&D coming -- moving from EUR 30.6 million to EUR 33.3 million. And this increase on amortization or depreciation of -- and it's coming only from the fact that we -- in the past, we capitalized more. So now we need to make depreciation. So every year, we depreciate more and more R&D. And of course, this had an impact, direct impact on our recurring operating income. So recurring operating income have been affected by less capitalization of EUR 1.8 million, more D&A due to the R&D, EUR 2.7 million. So this means that our recurring operating income has been affected by EUR 4.5 million. So if we get in 2021, exactly the same like in 2020, our recurring operating income will have been up because it's down by EUR 1.8 million. But on this, we have EUR 4.5 million, that is negative impact from R&D. And then if we look on operating income, it's strongly increased. And if we look on the past figures, we see that we're moving from EUR 16.1 million to EUR 43.7 million and that the margin moved from 3.2% to 8.3%. The biggest contributors to the performance of it is Software & Services. Data & Marketing, Flow and BPO also contributed to that and Corporate & other, it's -- the impact is coming from the fact that we have reduced our special items. We have a charge of EUR 2.3 million last year and we have a profit of $4.5 million this year. So EBITDA quite flat. Recurring operating income decreased by EUR 1.8 million and operating income increased by EUR 21.9 million because special items came to a profit of EUR 3.8 million compared to an expense of EUR 20 million last year. And this profit of EUR 3.8 million is mostly the results of the special payment done of EUR 4.7 million by a client that have decided to make an early termination of the contract. And that is supposed to be until 2027 and to pay the total present value of the amount in 2021 for the remaining part of the contract and now it's terminated. And in 2020, the EUR 20 million charges was mostly related to the impairment of an intangible asset related to software business in U.K. and Belgium. So if you look on the P&L, revenue, EBITDA, D&A, so be that operating income EUR 43.7 million margin moving from 4.4% to 8.3%. Then we have the financial results. A small increase. This is -- the gross amount on the interest pay on debt remained quite flat compared to last year because most of our debt are on a fixed rate, the increase is only related to the fact that we have some impact -- exchange rate impact from the sterling. Total taxes increased a little bit because we make more of -- year after year, more profit year after year. So net earnings came to 26.3% -- EUR 26.3 million and earnings per share moving from EUR 0.8 per share to EUR 1.9 per share. This is an increase by EUR 1.1. If we look division after division on Software & Services, 56% of revenue, revenue came to 292% (sic) [ EUR 292 million ]. This is an increase of 4.4% on organic growth and the rebound came mainly from health insurance segment due to the fact that we have a rebound on project-based businesses. We also get a very strong performance at the HR management solution for Cegedim, the contribution of Maiia doubled its revenue, and we have some trading activities, trading activities that we have done in the last quarter of 2021 of course, negatively impacted a bit on our margin on this division. We get also the negative impact from U.K. We have developed a new software for the U.K. market. However, the NHS have decided to postpone, the fact that we've been able to sell this product until 2022. So we have all the cost of development, et cetera, in 2020, 2021, and we will be able to sell it only in 2022. And on Cegedim Santé, we're making quite significant investment on hiring more people on the commercial side, but also in R&D. And we have, of course, the losses at Maiia. On Flow business, excellent performance despite the pandemic impact, so increased by 6%. The increase should have been quite higher if we have not been affected by the COVID-19, especially in U.K. and Germany that have a little bit hit to margin at this division. However, the French activity has a significant increase in margin and also the third-party management margin have been a little bit affected by COVID-19. So at end, the margin is quite stable compared between 2021 and 2020. On Data & Marketing, strong increase on the data business, but also on the marketing activities, revenue came up by 12.1%. And you see that also recurring operating income increased by roughly 40%, moving from a margin of 11.9% to a margin of 14.8%. Profitability increase on the French data activity and also on C-Media, this is advertisement of front pharmacists, and this is one of the most profitable year on this activity. On the BPO business, so a decrease of 3.3%, mostly because now all the contracts have been implemented. So of course, once the implementation is done, you have no more the implementation cost with a charge for the business or just make a little bit decrease due to the pricing effect. And we have less overflow business on this activity due to [ how many ] people use less health care systems. So there is less need for any overflow business by our client. However, we get some strong boost from the BPO activity. On recurring operating income, we have been flat for the first time last year, and now we are positive. We get a positive margin of 5.2%. So it's an increase of EUR 2.7 million on recurring operating income on that. So it's the first year of positive activity on the BPO business. Free cash flow from operation, nothing really changed, compared to [ last year ], the biggest change is on working capital. We have generated EUR 18.5 million, and we have a need for a requirement of EUR 5.1 million. However, we have the postponement of EUR 14 million social charges from 2020 to 2021. If we restate from that instead of having free cash flow from operation down by EUR 15 million, we'll have an increase of free cash flow from operation of EUR 13 million. This is the difference between the [ Blue ] and the Euro. So on the net debt, we've been at EUR 164 million, moved to EUR 165 million, so quite stable. However, if we restate for this social charges postponement, net debt would have been EUR 178 million, so a little bit decrease on net debt. And of course, we restate the free cash flow from operation. And then we have some charges, plant acquisition, repayment of lease liabilities, interest payment and we've also bought some share on the market for EUR 2.4 million. On the financing side, maturity, we have a new PP with a fixed rate of EUR 135 million with maturity on October '25. We have the shareholder loan of EUR 45 million, maturity on November '25 and the revolver that is completely drawn, maturity in October '24, and we have the overdraft facilities that are not used for EUR 24 million, and we have cash and cash equivalent of EUR 24 million. On the debt governance for Euro PP and RCF were at 1.29 compared to a limit of 2.5 and interest cover of 17 compared to 4.5. So there is absolutely no problem to that. On the balance sheet, nothing really changed on this balance sheet. We capitalize more R&D. So this affect, of course, the intangible assets. We have done some acquisitions also impacting a little bit intangible and tangible. On the intangible asset, the difference between 2020 and 2021, it's only related to the right of use of assets due to IFRS 16, and the second impact is on other current currency. So we managed some cash on behalf of mutual insurance companies. We have EUR 171 million in 2020. This is now just EUR 3 million. So you see this on opposite on the liabilities and other current liabilities. The reason for this decrease is that we collect some premium and made some payments in the past. We have in our balance sheet, the collection of premium in one line and in the other line, we have the cash that we pay for that and now we are able to compensate this. So the impact on the balance sheet is quite small, just EUR 3 million. So it's more positive and will make more sense. We have decided that the management will propose to the General Meeting to shareholders to approve a dividend payment of EUR 0.50 per share. This makes a dividend payout of 26% of our net income and 22% of our free cash flow from operation as of estimated today. Our M&A strategy is not really changing. We still have opportunistic approach, small bolt-on acquisition. No new businesses, only complementary to our activity and buying market share or technology. We have done 2 acquisitions in 2021, Medimust and Kobus, we'll do MesDocteurs in 2022. This is part of the deal with Cegedim Santé and Cegedim Santé is expected to be able to close at end of April 2022. Our 3 pillars are innovation, financial discipline, M&A. We'll continue to increase our leadership position, continue to invest on R&D, increase the customer royalty, develop business synergies, expand margin and make some small bolt-on acquisitions. And for 2022, the impact of the COVID-19 pandemic is still difficult to assess. However, things are moving in the right direction. However, we have some uncertainty in the world on economy, on geopolitics and inventory with inflation, war in Ukraine and some impact potentially in economic. However, we expect to see our revenue to increase 5% on a like-for-like basis in 2022 compared to 2021 and to see stable recurring operating income. The reason for the stable current operating income despite revenue increase is that for Cegedim Santé, we'll have to invest quite significantly on the commercial team to cover all the French market and to be able to go to see each health care professional to provide our solution and a little bit also on R&D to develop this interface between insurance companies and our minor solution. This concludes my presentation. The next event will be on April 28 with the release of the Q1 2022 revenue. And now I will be able to open the Q&A session.

We have one question here. This means that Cegedim Santé, it's 12% of the group revenue and 5% of working income? So we'll see some increase of revenue on Cegedim Santé for 2022. However, there will probably be a little bit of decrease in operating income as we'll make more investment that will pay off in -- starting in 2023. So yes, so excluding Cegedim Santé, it's around EUR 462 million and EUR 38 million EBIT, operating -- recurring operating income. We do not have any specific plans to do the same kind of operation as we have done in Cegedim Santé for other activities like HR, software, data on the Flow business. We have no specific plan. However, you see that when we need to accelerate the growth of an activity or to be more efficient or to make more synergies, we are open to new solutions, new possibilities that have not been done by Cegedim before. So of course, we can do maybe something like that for other activity or something else. But the most important part is not doing this for doing this, it's doing this because there is a project. And the most important part is to have a project behind this. So the project on Cegedim Santé, it's really to connect insurance companies with the patient and the only way to improve care is through the patient. It's not going to doctors. It's not going to insurance company. It's not going to the payer or whatever. It's really through the patient why because the patient is more and more active, and if we offer more way -- to the patient to be more aware of the different benefits that he get from the insurance company to better interact with the doctor, et cetera, will improve the health care system and facilitate the fact that the doctor will be able to concentrate on providing care. So the BCB, the database about all the medication and drugs, et cetera. Yes, it's included in Cegedim Santé, so if we want to be more specific, Cegedim Santé include CLM, Cegedim Logiciels Médicaux, which is the software for doctors in France. We also have the former [indiscernible], that is software for chiropractors, nurses, physiologists, et cetera. We have Maiia appointment scheduling platform and now also the software. We get -- also the 2 acquisitions that we have done, Medimust and Kobus. And this is Cegedim Santé and then Cegedim Santé have one subsidiary owned at 100%, that is [indiscernible] and [indiscernible] is the BCB database. So Cegedim Santé is on your French business as I mentioned already. So it's only the activity for the French market. So this is why Cegedim Santé is on 12% of our revenue. Yes, we have released -- our guidance was a revenue increase between 3% and 5%, and we are at the top tranche of this with an increase of 5% on revenue. And recurring operating income, the guidance was an increase of around -- similar to the increase of revenue to around 4% and were down by 4.4%. And the only reason we're down on this is related to the R&D impact, as I mentioned already. Recurring operating income is down by 1.8%, and we have a negative impact from R&D of 4.5% -- EUR 4.5 million, so EUR 1.8 million negative impact. Down a negative impact of EUR 4.5 million. So it's difficult to assess exactly before we end the year on the impact of R&D for different reasons. First, on capitalization of R&D. Of course, as soon as we get the project or we'll get to team, et cetera, we are making more transition for that, et cetera. But it's complicated before the end of the year. And having reviewed this with all the auditors who know exactly the level, the exact level of the R&D that will be capitalized, and you see the difference is only EUR 1.8 million. Then on amortization, it's more easy. However, you know that we start amortization as soon as we get the plan for new software or new solutions that have been capitalized in the past. And sometimes, we get the new clients in December, really at the end of December, just means that we need to amortize. So yes, we should have been maybe more calculation. It's not always complicated to assess the exact impact of R&D on the recurring operating income. But the most important part is that the operating income have doubled compared to last year, and the net profit has also doubled compared to last year. This is also why we are cautious on recurring operating income for 2022, and we say that revenue will increase, but will be flat. Of course, we make investment on Cegedim Santé but also we, of course, have calculated for 2022, some negative impact from R&D. Is there no more question, we give you 5 minutes -- 1 or 2 minutes to ask any questions you would like. If there is no more questions, thank you for listening to the presentation. Just a quick reminder is that we have solid foundation that's based on a resilient business model with talented and motivated people. 2022 seems very promising. We have the recognition from the market on Cegedim Santé with the investment of the 3 insurance companies that -- with a value on 12% of the company that represent the full value of Cegedim and also recognition, for example, in the U.K. market that our software has been promoted for pharmacy as the best software for pharmacists in the U.K. So thank you very much for listening. And I open to any more questions you may have by email or phone call. You can reach me today or tomorrow. Thank you very much. Bye-bye. Thank you.