Transcript Slide 1

Annual Meeting
of Shareholders
January 11th , 2013
TSX :
OMG
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Forward-Looking Statement
Certain statements included in this PowerPoint presentation constitute “forward
looking” statements, including those identified by the expressions “will”, “continue”,
“predict”, “may”, “would”, “could” “anticipate”, “believe”, “plan”, “estimate”, “expect”,
“intend” and similar expressions, to the extent they relate to OPMEDIC Group Inc.
(“OPMEDIC” or the “Corporation”) or its Management. The forward looking statements
are not historical facts but reflect Management’s current expectations regarding future
results or events. These forward looking statements are subject to a number of
assumptions, risks, uncertainties and other factors, such as business and economic
conditions; market competition; changes in government regulations; the ability of the
Corporation to secure and maintain all required licenses, permits and certifications to
provide its services in the jurisdictions where the Corporation is currently doing
business or intends to do business in the implementation of its business plan; risk
associated with third-party service providers; the ability for the Corporation to establish
and develop new relationships and to build on existing relationships with clients; the
ability of the Corporation to recruit and retain the services of its key personnel; the
ability of the Corporation to obtain additional financing on reasonable terms or at all;
and the ability of the Corporation to market its services, that could cause actual
results, performance, achievements, industry results or events to differ materially from
current expectations.
These forward looking statements are made as of the date of this PowerPoint
presentation and OPMEDIC does not intend, and does not assume any obligation, to
update or revise them to reflect new events or circumstances, unless otherwise
required by law. Prospective investors are cautioned not to place undue reliance on
forward looking statements.
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Investment Highlights
Leading provider of professional services and facilities in the
healthcare industry, with a focus on fertility, genetic, endoscopic
and surgical services
Strong macro trends and positive fiscal & regulatory
environment
Well-positioned in a fragmented industry offering growth and
acquisition opportunities
Solid financial performance, stable & recurring revenues with
strong margins and cash flows generation
Experienced management team with aligned interests and a
proven track-record of execution
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Corporate Profile
Overview
OPMEDIC is a provider of a wide range of professional fertility
and genetic services, sperm banking services and surgical and
endoscopic services and facilities for patients and surgeons
LTM Stock Price Performance
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Corporate Profile
Capital Markets Highlights
Share Price (January 1, 2013 )
$2.70
Shares Outstanding
17.3M
Market Capitalization
$46.7M
Enterprise Value
$42.5M
EV/EBITDA
7.1x
P/E
15.7x
Dividend Yield
3.0%
Financial Highlights
Revenue
Gross Profit
Gross Margin
EBITDA
EBITDA Margin
Net Income
Net Margin
EPS
2009-2012 Revenue CAGR
2009-2012 EBITDA CAGR
2009-2012 Net Income CAGR
Cash
Bonds
Total Debt
(August 31, 2012)
$19.8M
$10.3M
52%
$5.9M
30%
$3.0M
15%
$0.17
13.9%
17.2%
20.8%
$7.1M
$1.4M
$2.9M
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Organization
PROCREA
Clinics
OPMEDIC
Surgical Facilities and
Services
Surgical and endoscopic
services and facilities
One site for surgery,
three sites for endoscopy
(Laval, Quebec city and
South Shore of Montreal)
Fertility Clinics
Diagnostic Lab, Prenatal
Screening, Fetal
Ultrasound
PROCREA
Cryopreservation
Center
Sperm Banking
Fertility treatments, laboratory analysis, imaging and diagnostic
procedures
Donor sperm banking and
sperm preservation services
Two sites and four satellites in Quebec
One of the largest donor
sperm banks in Canada
One site and one satellite in North of Toronto
Eventually ovocyte bank
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Management and Board of Directors
Name
Position with OPMEDIC Group
Principal occupation / Experience
Dr. Pierre St-Michel
Director, President and CEO
Founder
Extensive experience in both medicine and corporate
management, Medical Director of the ART Medical Board
Canadian Fertility and Andrology Society, former chief of
Gynaecology at Maisonneuve Rosemont hospital and former
Chief of Surgery at Hôpital Fleury in Montreal
Jean-Marc Lachance
CFO
Over a decade of experience in financial management, former
administrative director of the Quebec Order of Pharmacists
Dr. Marc Villeneuve
Director, Medical Director
Founder
Nearly 20 years of experience in Obstetrics, Gynaecology,
and Reproductive Endocrinology
Jacques Landreville
Chairman of the Board
Director of Colabor Group Inc., GLV Inc. and Lassonde
Industries Inc.
Hani Basile
Director (Chairman Audit
Committee)
Businessman and director of Sanimax Industries Inc.
Jean Larivée
Director (Chairman Governance
Committee)
President and Chief Executive Officer of Prochaps
Corporation
Jacques Lemieux
Corporate Secretary
Partner at the law firm Norton Rose
Solid Board of Directors and management team with significant experience
in the healthcare industry
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Business Strategy & Objectives
Build on our current platform to consolidate our position as a
leading provider of fertility and genetic services in Québec
Expand our presence in the fields of fertility and
surgical/endoscopy services and consider new segments of the
healthcare industry
Enter new geographic markets, organically and through
accretive acquisitions
Leverage the scope, scale and reputation of our existing operations
to broaden our presence in the Canadian healthcare industry
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OPMEDIC Group
Services Offering
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PROCREA - Fertility
Mission
Help individuals conceive children using leading-edge
biotechnology.
Assist in the diagnosis, treatment and prevention of diseases
related to reproductive medicine.
Services Offering
 In vitro fertilization
 Diagnostic laboratory services
 Prenatal screening
 Foetal ultrasounds
 Related surgery: hysteroscopy
laparoscopy
colposcopy
Solid reputation and track-record
as a provider of fertility treatments & services
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PROCREA - Fertility
One of the largest fertility service providers in Canada.
 Two locations in the Province of Quebec:
Montreal & Quebec City
 One newly opened location in Toronto (Vaughan)
 Medical team has increased to :
14 gynaecologists
3 endocrinologists
3 urologists
 Four satellite locations in the Province of Quebec:
Sherbrooke, Chicoutimi, Laval and South Shore of Montreal
 One satellite in North of Toronto (New Market)
Regional platform providing sound basis for expansion
in new markets, organically and through accretive acquisitions
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Regulatory Catalyst
BILL 26 – NEW LEGISLATION IN FORCE SINCE AUGUST 5TH, 2010
Quebec Health Insurance Board pays for three in-vitro fertilization treatments
Reimbursement for IVF has decreased from $6,975 to $4,600 in January 2012.
Increased reimbursement for Frozen Embryos Transfers (FET) with significant increase in volume.
All other covered services are paid the same amount.
Quebec government estimates that the number of IVF cycles done in Quebec could
increase between 8000 and 10,000 cycles by 2014
Approximately 7,500 IVF cycles were performed in Quebec last year.
OPMEDIC currently performs over 30% of all IVF cycles in Quebec
Currently, OPMEDIC has the capacity to increase the number of its IVF treatments.
The company has virtually no private competition in Quebec outside the Montreal area.
Competition from public hospitals to come, but implantation is slower and smaller than
announced.
Well positioned to capitalize on Quebec’s new legislation relating to fertility treatments
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OPMEDIC - Surgery
Mission
Provide surgeons in private practice with access to state-of-theart surgical facilities and related services.
Enable timely access to elective surgical procedures for
patients.
Services Offering
 General surgery
 Plastic surgery
 Gynaecology
 Head and neck surgery
 Urology
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OPMEDIC - Endoscopy
Mission
Provide patients with diagnostic and operative endoscopic procedures
Quebec City
Opened June 2008
1 operating room, 3 surgeons, 4 gastroenterologists
Endoscopic Center Laval
Opened January 2008
2 operating rooms, 6 surgeons, 2 gastroenterologists
South Shore of Montreal
Opened October 2011
3 operating rooms, 6 surgeons, 5 gastroenterologists
Quebec’s new prevention policy in colo-rectal cancer
Should increase the demand
Discussions with the RAMQ to cover the ancillary costs
New Quebec government prevention policy is expected
to increase the demand
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PROCREA Cryopreservation Center
Mission
Offer short and long term sperm storage services.
Support fertility operations through sperm
auto preservation & sperm donation.
Eventually offer ovocyte banking for donor cycles.
Services Offering
 Donor sperm banking
(Samples distributed to major fertility clinics
throughout Quebec)
 Sperm preservation services for short or
long periods of time for men undergoing
certain medical treatments
(chemotherapy, radiotherapy or surgery)
One of the larger donor sperm banks in Canada
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OPMEDIC Group
Selected Financial Information
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Summary Balance Sheet
As of August 31, 2012, OPMEDIC had a cash of $7.0 million (41¢/share),
total debt of $2.9 million and bond investments of $1.4 million
In $000s, IFRS
FY 2012
31-August-2012
FY 2011
31-August-2011
Cash
$7,053
31%
$9,789
42%
Current Assets
$9,927
43%
$12,360
53%
Total Assets
$23,103
100%
$23,263
100%
Current Liabilities
$2,040
9%
$3,459
15%
Long-Term Debt
$2,676
12%
$2,939
13%
Shareholders' Equity
$18,151
79%
$16,613
71%
Total Liabilities & Shareholder’s Equity
$23,103
100%
$23,263
100%
Working Capital
$7,887
$8,901
Strong balance sheet - well positioned to fund organic growth and take advantage
of strategic acquisition opportunities
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Income Statement Highlights
Significant ramp up in 2011 revenues and significant improvement in margins
In $000s (except EPS), IFRS
Revenue
Gross Profit
FY 2012
31-August-2012
19,804
FY 2011
31-August-2011
22,215
10,259
12,860
Gross Margin - %
52%
58%
EBITDA
5,949
9,344
EBITDA Margin - %
30%
42%
Net Income
2,967
5,442
Net Margin - %
15%
24%
EPS (Basic and Diluted)
$0.17
$0.32
Dividend per Share
$0.085
$0.085
Return on assets
13%
26%
Return on equity
17%
38%
Solid performance since 2011, as we register the impact of the new government policy
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Revenue by division
2012 YTD Revenues
Enhanced stability of operations through diversification of its revenues
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Historical Performance
2009-2012
Revenue CAGR = 13.9%
2009-2012
EBITDA CAGR = 17.2%
2009-2012
Net Income CAGR = 20.8%
Note: Numbers in 2009 and 2010 in Canadian
GAAP. Numbers in 2011 and 2012 in IFRS.
Strong growth in revenue, EBITDA and net income
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YoY Margin Improvement
Strong operating leverage resulting in significant improvements in
operating margins
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First Quarter Highlights
Q1 2012
November, 30 2012
Q1 2011
November, 30 2011
Revenue
5,309
5,390
Gross Profit
2,713
3,038
Gross Margin - %
51%
56%
EBITDA
1,697
2,127
EBITDA Margin - %
32%
39%
Net Income
921
1,247
Net Margin - %
17%
23%
EPS (Basic and Diluted)
$0.05
$0.07
Dividend per Share
$0.02
$0.025
In $000s (except EPS), IFRS
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Financial Markets Highlights
Share Price (January 3, 2013)
$2.70
Shares Outstanding
17.3M
Market Capitalization
$46.7M
Enterprise Value
$42.5M
EV/EBITDA
7.1x
P/E
15.7x
Dividend Yield
3.0%
Major Shareholders (% of Basic Shares Outstanding):
Two principal shareholders (physicians)
Other officers & directors
57.4%
0.5%
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17,274,867 shares outstanding
69,441 options outstanding
TSX :
OMG
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