El caso de Daniela: la ambivalencia del rol docente ante la violencia contra los NNA

EUR m 01.01–31.122015 01.01–31.122014 Change

Hospital Information Systems 72.8 79.8 -9%

Sales to third parties 72.8 79.8 -9%

Sales between segments 10.0 10.8

Segment sales 82.8 90.6

Growth from acquisitions and divestitures in HPS II resulted from the first-time consolidation/deconsolidation of the following entities:

EUR m revenue 2015First-time Segment

REWE/DMS (deconsolidation from 31.12.2014) -5.4 HPS 2

LMZ-Soft (consolidation from 01.11.2015) 0.4 HPS 2

Total -5.0

In the HCS segment, revenue was EUR 63.6 million compared to EUR 60.1 million in 2014. This represents an increase of approximately 6 percent, all of which is organic growth.

HCS revenue development (including currency effects):

EUR m 01.01–31.122015 01.01–31.122014 Change

Communication & Data 22.6 20.4 10%

Workflow & Decision Support 26.9 25.2 7%

Internet Service Provider 14.1 14.4 -2%

Sales to third parties 63.6 60.1 6%

Sales between segments 5.8 5.9

Segment sales 69.4 66.0 Profit

Consolidated EBITDA amounted to EUR 112.3 million compared to EUR 96.2 million in 2014. The corresponding operating margin (EBITDA margin) was 21 percent compared to 19 percent in 2014. In the HPS I-Segment, the EBITDA increased from EUR 96.1 million in 2014 to EUR 117.1 million in 2015. The higher EBITDA is a result from significant improvements in the core AIS business, in particular in France and the United States, balanced by losses recorded in the Gematik project in 2015. In the HPS II segment, the EBITDA was EUR 3.5 million in 2015, down from EUR 16.8 million in 2014. Poor results and loss provisions from specific projects drove profits lower in HPS II during 2015. Also, in 2014 there was a EUR 8.4 million one-time positive gain related to the asset sale of the REWE and DMS business in Germany which made the total segment profits higher in 2014. In the HCS segment, the EBITDA went from EUR 11.0 million last year to EUR 14.7 million in 2015 with operating margins going from 18 to 23 percent. The positive development in Communication & Data and Workflow & Decision Support is balanced by the losses from the Gematik project recorded under the ISP business.

The main developments in operating expenses in 2015 were:

– Expenses for goods and services purchased went from EUR 99.2 million to EUR 100.5 million, corresponding to an increase of 1 percent year-on-year. The gross margin is virtually unchanged at 81 percent compared to 2014.

– The increase in personnel expenses by EUR 2.3 million is driven by new employees in acquired companies balanced by a lower number of employees and more efficiency in the continuing business from 2014.

– Other expenses decreased from EUR 93.3 million in 2014 to EUR 93.1 million in 2015. The lower expense relative to revenue is mainly due to restructuring expenses incurred in 2014.

Depreciation of tangible fixed assets is unchanged between the two years at EUR 7.8 million. Amortization of intangible assets in 2015 in the amount of EUR 36.7 million is EUR 1.8 million higher than in 2014 mainly due to amortization of purchase price allocations from new acquisitions.

Financial income increased from EUR 13.0 million in 2014 to EUR 14.1 million this year due largely due to non-cash gains on non-EURO group internal debt. The financial expense decreased from EUR 22.4 million in 2014 to EUR 18.8 million in 2015. Interest expense on liabilities to banks decreased slightly from EUR 14.4 million in 2014 to EUR 13.2 million in 2015, whereas the other financial expenses are mostly non-cash items arising from changes in non-EURO group internal debt and changes to purchase price liabilities. For more information about financial income and expenses, see the Notes to the Consolidated Financial Statements section, Note 27.

The effective tax rate was in 2015 38 percent, down from 45 percent in 2014. The tax rate in 2014 was especially high due to tax

adjustments from prior years. After tax earnings came in at EUR 38.6 million in 2015, compared to EUR 23.8 million in 2014. This increase is predominantly driven by higher operating profit as well as the change in net financial result between the two years.

Financial position

Since the statement of financial position of 31 December 2014, total assets increased by EUR 54.1 million to EUR 791.7 million. Intangible assets represent the largest item of individual asset classes in terms of value and are EUR 544.0 million as of 31 December 2015 compared to EUR 517.5 million as of 31 December 2014. Their share of total assets was 68.7 percent (previous year: 70.2 percent). Intangible assets primarily originated from undisclosed reserves from company acquisitions uncovered during purchase price allocations. The uncovered intangible assets mainly pertain to customer relationships, order backlog, software, brand values, and "residual" goodwill. Under current assets, trade accounts receivable increased from EUR 96.8 million as at 31 December 2014 to EUR 111.2 million as at 31 December 2015. This is mainly due to trade receivables in new companies acquired as well as more receivables in Italy, The Netherlands, USA and Germany. For all other assets there are only minor changes during 2015.

After consolidating EUR 38.6 million in net profit for the period from 1 January to 31 December 2015, group equity was EUR 192.6 million as at 31 December 2015, up from EUR 175.6 million as at 31 December 2014. The increase in equity comes after the effect from a EUR 17.4 million dividend paid to the shareholders of CompuGroup Medical SE. In addition, the equity effect from changes in currency exchange rates amounted to EUR -3.3 million during 2015. The equity ratio increased from 23.81 percent as at 31 December 2014 to 24.33 percent as at 31 December 2015.

During the reporting period, a EUR 37.1 million change to total current and non-current liabilities occurred going from EUR 561.9 million as at 31 December 2014 to EUR 599.1 million as at 31 December 2015. The biggest changes to individual positions is an increase in other financial liabilities of EUR 16.7 million associated with financial leasing arrangements and a EUR 24.7 million increase in income tax liabilities. Long and short-term liabilities to banks decreased by EUR 4.3 million through the net repayment of debt.

Changes in currency exchange rates reduced the net assets of the Group by EUR 3.3 million during the reporting period (previous year: EUR 11.4 million).

Cash flow

Cash flow from operating activities during 2015 was EUR 73.2 million compared to EUR 31.9 million in 2014. The changes compared to 2014 mainly come from the following positions:

– Adjusted for non-cash earnings/expenditures and cash taxes, the gross cash flow from operations before change in working capital increased from EUR 47.8 million in 2014 to EUR 83.0 million in 2015. This increase is primarily driven by the higher net profit for the year as well as more provisions being made and more taxes being deferred in 2015.

– Change in working capital gave a decrease in operating cash flow of EUR -9.7 million compared to EUR -15.9 million in 2014. The main reason for the increase in working capital in both years is the increase in receivables in Italy, The Netherlands, USA and Germany. (increase of EUR 12.7 million compared to last year).

Cash flow from investment activities during 2015 amounted to EUR -60.6 million compared to EUR -57.3 million in 2014. The lower expenditures for acquisitions in 2015 compared to 2014 were balanced with the sale of the REWE/DMS business in 2014.

Cash flow from financing activities during 2015 amounted to EUR -9.1 million compared to EUR 23.1 million in 2014. Main items which make up the financial cash flow in 2015 is the dividend distribution of EUR 17.4 million and a net assumption of loans and financial leasing arrangements of EUR 8.5 million.

Principles and objectives of financial management

As a general principle, CGM strives to hold as little cash and cash equivalents as practically possible, both on Group level and in the operating subsidiaries. International cash-pooling services are used throughout the Group to manage bank accounts and to optimize and use surplus cash in all group companies to reduce external debt and increase overall liquidity. The main principle of cash-pooling is to hold the top-mother account (pool-leader) in CompuGroup Medical SE – the parent entity of the Group. It is also this entity that generally holds all external debt, including flexible revolving credit facilities and short term credit lines used to manage daily liquidity across the Group.

The external debt in CompuGroup Medical SE is usually held in EURO currency and on the basis of variable interest rates. The company generally seeks to hedge the interest rate risk through interest rate swap contracts, thereby fixing the interest rates rather than exposing them to market fluctuations. Due to the international focus of the Group, incoming and outgoing payments are performed in various currencies. The Company generally strives to achieve natural hedging by its choice of locations and suppliers and at present the Company does not use any derivative financial instruments to hedge the foreign currency exposure. The development of the relevant positions is monitored regularly to ensure adequate response to significant changes in the positions.

The company does not have a specific dividend policy, but considers dividends to be tied to long-term sustainable earnings and aims to steadily increase in steps, or at least maintain, the dividend paid per year. Dividends declared and approved by the shareholders are paid annually in conjunction with the annual general meeting usually held in May.

Capital structure

CGM primarily uses debt and internally generated cash flows to finance acquisitions. In terms of equity, the goal is to manage consolidated profits, dividends and share buy-backs to keep the equity ratio above 25 percent.

As at 31 December 2015 the Group had gross debt of EUR 352.1 million and held EUR 25.1 million in cash. For more information about the liabilities to banks and the structure of debt, see the Notes to the Consolidated Financial Statements section, Note 14.

In September 2014, CGM entered into a syndicated loan facility for a total sum of EUR 400.0 million. The syndicated loan facility consists of a "term loan facility" (also referred to in the following as "TLF") for EUR 225 million and a "revolving loan facility" (also referred to in the following as "RLF") for EUR 175 million. The syndicated loan facility has a duration of five years. The TLF must be repaid pro rata in equal instalments of EUR 15.0 million on 31 January and 31 July in each year, commencing on 31 July 2015, with a final payment of the balance of any outstanding term facility loans to be repaid on the termination date. The RLF must be repaid at the end of each interest period and can be taken out again immediately thereafter. The interest period can be chosen by CGM at its discretion. The interest rate is based upon the 3 month-EURIBOR rate for the interest period chosen plus a margin derived from the relationship between the consolidated net borrowings and the adjusted consolidated EBITDA (Leverage).

As of 31 December 2015 EUR 210 million of the TLF and EUR 105.0 million of the RLF were utilized. Loan origination fees totaling EUR 3.2 million were incurred related to these facilities. These fees will be charged as a financial expense over the term of the loan agreement. For this syndicated loan facility no interest rate hedge has been concluded as of the reporting date. The grant of the loan

is linked to the compliance of certain financial covenants. The loan agreement includes joint and several guarantees for payment by a number of CGM’s subsidiaries (contingent liability in case of non-payment of CompuGroup Medical SE).

Investments

The investments of CompuGroup Medical SE during 2015 are composed of:

EUR m 2015

Company acquisitions 33.0

Investments in joint ventures 3.8

Self-developed software and other intangible assets 14.2

Group-wide ERP-/CRM-System (partial project) 3.3

Other fixed assets 6.3

Sum 60.6

Liquidity

The Group is in a favorable position in terms of liquidity with a strong and stable cash flow from operations and limited need for capital expenditure to sustain the current business and organic growth. The majority of recurring revenue is based on pre-payments with a significant reduction of working capital at the beginning of the annual, quarterly and monthly periods. The company increasingly uses direct-debit for such recurring revenue payments to further increase the visibility and security of incoming liquidity. In the past, the Group has always been able to meet its payment obligations in a planned and orderly manner and the Company does not expect any liquidity problems in the future.

The strong liquidity profile of the Group has lead to the principle of holding as little cash as practically possible. To absorb normal everyday cash fluctuations, and also buffer the period pre-payments from customers, the Group held as at 31 December 2015 revolving credit facilities of EUR 175 million and other short term credit lines of EUR 23.2 million that are used in conjunction with the cash-pooling instruments. The unused portion of these credit facilities was EUR 86.2 million as at 31 December 2015.

Financial covenants have been agreed for essentially all credit facilities. If the Group breaches any of these covenants, the loans can be recalled immediately. This creates liquidity and refinancing risks, which are further described in the risk report section. To date, the Company has never breached any financial covenant in any credit agreement and has always been able to refinance its credits in a timely manner.

Financial and non-financial key performance indicators

The financial and non-financial KPIs of the internal management system for the Group are shown in the table below for 2015 and 2014.

EUR m 2015 Adjusted2014 Change

Sales revenue 543.1 515.1 +28.0

Revenue growth (%) 5.4% 12.1% -6.7%

Organic growth (%) 1.9% 3.4% -1,5%

Recurring revenue 366.4 337.8 +28.6

Growth in recurring revenue (%) 8.5% 10.3% -1.8%

EBITDA 112.3 96.2 16.1

EBITDA-margin (%) 20.7% 18.7% +2.0%

Cash Net Income 72.9 55.5 +17.4

Leverage (ratio) 2.91 3.48 -0.57

Return on Capital (%) 8.0% 6.7% +1.3%

Customer base (Providers at year-end) 360,000 350,000 –

Based on the indicators above, the performance in 2015 was a mixed picture relative to 2014. In terms of the growth indicators, the business slowed down in 2015. However, this is attributable to special effects from the Gematik project in Germany which recorded significantly lower revenue in 2015 compared to 2014. 2015 was also a year with a lower growth contribution from acquisitions which is a natural consequence from the strategy for 2015 to focus on the continued integration and consolidation of existing business units as well as to achieve a certain element of financial deleveraging. In terms of sustainability, the development in 2015 continues in a positive direction. Solid additions to the customer base and recurring revenue base shows that growth is created in a consistent way in accordance with the business model and strategic goals of CGM, i.e. revenue based primarily on long-term customer relationships and recurring revenue. The customer growth comes both from company acquisitions and from sales of existing product and services to new customers.

The growth in recurring revenue and larger customer base is a strong foundation for future growth and underpins the sustainability objective. The area which shows clear improvement in 2015 is profitability and the resulting return on capital. A two percentage point increase in operating margin is consistent to the long-term margin expansion objective of the Company.

Finally, CGM is now trading within the target leverage range (2.0 – 3.0) which is a consequence of lower volumes of acquisitions and improved profitability in the existing businesses.

Employee satisfaction indicators and social commitment

Employee absenteeism due to illness remained at a low level throughout the Group in the 2015 financial year. This is an indication of a high degree of contentment and commitment among the workforce. In this context, CompuGroup Medical, in cooperation with the Company physician, regularly offers its employees the possibility of flu vaccinations, cancer screenings and eye examinations.

Since its opening in 2009, the children’s daycare center – which is located in CompuGroup’s Koblenz Technology Park – has met with very high acceptance, with all 32 places in this comprehensive facility being occupied as of 31 December 2015. Six experienced teachers look after the children.

In 2012, CompuGroup Medical opened the CGM Health Center in Koblenz. The new center, which is 850 m² in size, offers employees a wealth of sports, preventive and health activities. The CGM Health Center was developed in conjunction with renowned fitness experts and scores highly with innovative health concepts in the work environment. For example, the strength training and endurance equipment is electronically linked, allowing employees to control and document training sessions in order to ensure safe and effective training. Employees can review their physical activities at any time and can assess their progress and adjust personal training plans together with trainers. What’s more, employees can use the endurance and strength training equipment free of charge. In addition, the CGM Health Center offers a range of various classes, physical therapy and massages. CGM is continuously expanding its corporate health

management program.

Thanks to the establishment of these facilities, employees now benefit from measures to ensure safety at work and to provide an ergonomic workplace, preventive medical care such as eye exams, flu shots and sports events, or from healthy nutrition in the Company’s own bistro. In addition, the daycare center helps young parents to return to work.

Personnel recruitment and development

Due to a continuously rising requirement of highly-skilled specialists and managers, the recruitment of new qualified employees is an important responsibility of human resources management.

The employees of CGM are one of the Group’s major success factors. Their high degree of identification with the Company and great commitment to its objectives is one of the most important contributions to the Company’s success. The potential of all employees is wanted and nurtured on an ongoing basis by giving them a high degree of responsibility. CGM’s employees are highly qualified and have collected a large amount of knowledge within their industry over time. This enables CGM to fill the majority of national and international management positions from its own ranks. This keeps existing know-how within the Company and makes it possible to expand it further. For this purpose, CGM has implemented various processes to be able to act effectively. CGM has set up its own internal Business Academy to prepare qualified employees already within the Group for a career in middle and upper management. By its nature and with respect to quality, the Business Academy of CGM is a unique internal continuing education facility in the area served by the Koblenz Chamber of Industry and Commerce.

In addition, CGM carries out a regular performance evaluation of employees in order to evaluate whether training programs are needed and in what scope. The human resources department coordinates and supports employees in the selection and performance of their individually-coordinated programs. The effectiveness of the training programs is also analyzed and measures taken to increase quality. In 2014, CGM signed a contract with the University in Koblenz as a partner in implementing its practice-integrated dual studies program resulting in a "Bachelor of Engineering" degree. The degree program "Software Engineering in Healthcare", which is assigned to the "Mathematics and Technology Department" of the university in Koblenz, was brought into being by CGM and CGM is thus expanding its responsibility as a major training company in Rhineland-Palatinate. The first students began with the integration phase in August of 2014 where the students spend three of eight total semesters actively working on software projects and development tasks, learning the company’s internal processes, taking on responsibilities early in the program, thus qualifying themselves as potential recruitment