Annual Meeting of Shareholders. On February 10, 2012. 1. Forward-Looking Statement.
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On February 10, 2012
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.
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
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
Capital Markets Highlights
Financial Highlights (August 31, 2011)
Fertility treatments, laboratory analysis, imaging and diagnostic procedures
Two sites and three satellites in Quebec
Donor sperm banking and sperm preservation services
One of the larger donor sperm banks in Canada
Management and Board of Directors
Solid Board of Directors and management team with significant experience
in the healthcare industry
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 endoscopic and surgical 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
PROCREA - Fertility
Help individuals conceive children using leading-edge biotechnology.
Assist in the diagnosis, treatment and prevention of diseases related to reproductive medicine.
In vitro fertilization
Diagnostic laboratory services
Solid reputation and track-record as a provider of fertility treatments & services
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 : 13 gynaecologists2 endocrinologists3 urologists
Three satellites location in the Province of Quebec: Sherbrooke, Chicoutimi and South Shore of Montreal
Regional platform providing sound basis for expansion in new markets, organically and through accretive acquisitions
BILL 26 – NEW LEGISLATION IN FORCE SINCE AUGUST 5TH, 2010
Quebec Health Insurance Board pays for three in-vitro fertilization treatments
Reimbursement for IVF as 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 4,800 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.
Well positioned to capitalize on Quebec’s new legislation relating to fertility treatments
OPMEDIC - Surgery
Provide surgeons in private practice with access to state-of-the-art surgical facilities and related services.
Enable timely access to elective surgical procedures for patients.
Head and neck surgery
OPMEDIC - Endoscopy
Provide patients with diagnostic and operative endoscopic procedures
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, 4 gastroenterologists
Quebec’s new prevention policy in colo-rectal cancer
Should increase the demand
Discussions by the RAMQ to cover the ancillary costs
New Quebec government prevention policy is expected
to increase the demand
PROCREA Cryopreservation Center
Offer short and long term sperm storage services.
Support fertility operations through sperm
auto preservation & sperm donation.
Eventually offer ovocyte banking for donor cycles.
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
Selected Financial Information
Summary Balance Sheet
Strong balance sheet - well positioned to fund organic growth and take advantage of strategic acquisition opportunities
As of August 31, 2011, OPMEDIC had a cash of $9.9 million (57¢/share), total debt of $2.6 million and bond investments of$1.3 million
Income Statement Highlights
Solid performance 2011YTD, as we register the impact of the new government policy
Significant ramp up in 2011 revenues and significant improvement in margins
Revenue by division
2011 YTD Revenues
2010 YTD Revenues
Enhanced stability of operations through diversification of its revenues
Strong growth in revenue, EBITDA and net income
Revenue CAGR = 24.7%
EBITDA CAGR = 43.6%
Net Income CAGR = 60.8%
YoY Margin Improvement
Strong operating leverage resulting in significant improvements in
First Quarter Highlights
Good performance, even if Quebec clinic didn’t have any IVF for two months
Financial Markets Highlights
17,274,867 shares outstanding
36,919 options outstanding