Habe ich schon rausgenommen. Die Gliederung und der Inhalt stammt im wesentlichen von ChatGPT. Macht solche Sachen oft einfacher, wenn man ordentlich Input gibt. Man muss aber auf jeden Fall nochmal drüber lesen, siehe FCF.
Das ist der korrigierte Text:
Subject: Critical Investor Questions on Strategy, Margins, Capital Structure, and Shareholder Value at Cegedim
Dear Sir or Madam, Dear Mr. Buffet,
Since my last letter in spring 2024, Cegedim’s share price has continued to underperform the broader market and peer companies in the software and services sector. The share is now trading at a 20-year low—a clear signal of deep investor disappointment. However, this is not merely a matter of market misperception: the operational development itself has also been inadequate in several key areas.
While margins have improved slightly and the exit from the loss-making UK subsidiary has relieved earnings, this move was not a strategic choice but a forced necessity. At the same time, the company is facing historically high debt levels and rising interest expenses—despite the broader trend of declining ECB rates. In its current form, Cegedim’s capital structure and operating model do not appear future-proof and call for immediate corrective measures.
I continue to see strong potential in Cegedim’s business model. However, without a clear and compelling strategy, disciplined financial execution, and a credible investor dialogue, this potential remains untapped. Many long-term investors still experience the IR approach as reactive and lacking ambition—falling short of what is needed to rebuild trust and unlock valuation.
In light of the 2024 Annual Report (Revenue: €654.5 million / +6.3%; Recurring Operating Income: €39.5 million / 6.0% margin) and the Q1 2025 update (Revenue Q1: €161.3 million / +4.5% LFL; recurring EBIT improvement from INPS exit: +€5 million), I respectfully ask for your response to the following topics:
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1. Share Price Performance & Value Drivers
How does management explain the disconnect between operational progress and the share price performance?
What short- and medium-term IR initiatives (e.g., investor events, roadshows, targeted market communication) are planned to restore market confidence and reduce the persistent valuation discount?
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2. Outlook for 2025/2026 & Margin Targets
You guide for like-for-like revenue growth of 2–4% in 2025 and further margin improvement. a) What EBIT margin targets are you specifically aiming for in 2025 and 2026 and in the long run? b) Over what timeframe do you plan to approach industry-standard EBIT margins of leading software peers (e.g., 12–15%)? c) What strategic measures are being taken to ensure that Cegedim is no longer perceived as a structurally low-margin business?
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3. Cegedim Santé & Visiodent
The break-even target for Cegedim Santé remains set for 2025. a) Is the break-even trajectory still on track (e.g., user-level contribution margin, growth of the Maiia platform)? b) What specific EBIT contribution is expected from the Visiodent integration by mid-2025? Are further M&A opportunities in the healthcare segment under consideration?
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4. Pharmacy Software “Nouvel Espace de Vente” (NEV)
NEV is intended to regain market share in the French pharmacy software segment. a) How many pharmacies have implemented NEV to date, and what is the average contribution margin per installation? b) From which quarter do you expect a material EBIT contribution from this solution?
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5. UK Strategy Post-INPS Exit
What are the remaining burdens in the UK segment—particularly regarding the restructured pharmacy software business or transitional costs related to the INPS exit?
When does management expect the remaining UK operations (including Scotland) to contribute positively to consolidated operating income?
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6. Capital Allocation, Interest Burden & Financial Strategy
High debt and elevated interest expenses continue to weigh on earnings and limit financial flexibility.
Is there a mid-term strategy to reduce interest burden, e.g., through refinancing, targeted deleveraging, or proceeds from non-core divestments?
Has the Board discussed strategic balance sheet measures, such as segment divestitures or minority partnerships, to create additional flexibility?
When does management expect to see a meaningful improvement in free cash flow, such that available funds can be reliably deployed for investments, debt reduction, or potential shareholder returns?
How does Cegedim currently prioritize capital allocation—especially among product development (e.g., Maiia, AI), M&A, and debt repayment?
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7. IR Communication, Transparency & Website Accessibility
Will the segment breakdown presented in the annual report be maintained in future quarterly reports?
Are regular webcasts, analyst calls, or roadshows planned to strengthen capital market communications and rebuild investor confidence?
In addition, there are ongoing technical issues with your corporate website—financial reports and documents are frequently unavailable or the site fails to load reliably. For a publicly listed company of this size, this is clearly unacceptable. What steps is Cegedim taking to ensure stable, transparent, and professional digital access for investors?
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8. Cost Control, Productivity & AI Investments
What concrete measures have been implemented in 2024 to reduce the structural cost base, including personnel, IT, and general expenses?
What efficiency gains are being targeted in the medium term (e.g., through scalable cloud services or centralized back-office processes)?
Is there an internal KPI framework (e.g., revenue or EBIT per employee) to monitor productivity improvements?
How does management ensure that AI-related investments (e.g., in Cegedim Business Services) are cost-efficient and do not generate disproportionate fixed costs, while still strengthening innovation and competitive positioning?
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Closing Remarks Cegedim has a strong product foundation and an long-term management team. The purpose of this letter is to help close the gap between operational performance and equity valuation—through clear targets, effective execution, and a transparent dialogue with investors. I look forward to your comprehensive answers and to a constructive exchange that helps strengthen long-term shareholder confidence.
Thank you for your time and your engagement.
Sincerely, |