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TSX : OMG Annual Meeting of Shareholders January 11 th , 2013 1

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Annual Meeting of Shareholders. January 11 th , 2013. 1. Forward-Looking Statement. - PowerPoint PPT Presentation

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Page 1: Annual Meeting  of Shareholders

TSX :OMG

Annual Meeting

of ShareholdersJanuary 11th , 2013

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Page 2: Annual Meeting  of Shareholders

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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Page 3: Annual Meeting  of Shareholders

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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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

Corporate Profile

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Page 5: Annual Meeting  of Shareholders

Corporate Profile

Capital Markets Highlights

Financial Highlights (August 31, 2012)

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Organization

Surgical and endoscopic services and facilities

One site for surgery, three sites for endoscopy(Laval, Quebec city and South Shore of Montreal)

Fertility treatments, laboratory analysis, imaging and diagnostic procedures

Two sites and four satellites in Quebec

One site and one satellite in North of Toronto

Donor sperm banking and sperm preservation services

One of the largest donor sperm banks in Canada

Eventually ovocyte bank

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Page 7: Annual Meeting  of Shareholders

Management and Board of Directors

Solid Board of Directors and management team with significant experiencein 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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Page 10: Annual Meeting  of Shareholders

PROCREA - Fertility

MissionHelp individuals conceive children using leading-edge biotechnology.Assist in the diagnosis, treatment and prevention of diseases related to reproductive medicine.

Services OfferingIn vitro fertilizationDiagnostic laboratory servicesPrenatal screeningFoetal ultrasoundsRelated surgery: hysteroscopy laparoscopy colposcopy

Solid reputation and track-record as a provider of fertility treatments & services

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Page 11: Annual Meeting  of Shareholders

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 gynaecologists3 endocrinologists3 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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Page 12: Annual Meeting  of Shareholders

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 2014Approximately 7,500 IVF cycles were performed in Quebec last year.

OPMEDIC currently performs over 30% of all IVF cycles in QuebecCurrently, 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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Page 13: Annual Meeting  of Shareholders

OPMEDIC - Surgery

MissionProvide 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.

Services Offering General surgery Plastic surgery Gynaecology Head and neck surgery Urology

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Page 14: Annual Meeting  of Shareholders

OPMEDIC - Endoscopy

MissionProvide patients with diagnostic and operative endoscopic procedures

Quebec CityOpened June 20081 operating room, 3 surgeons, 4 gastroenterologists

Endoscopic Center Laval Opened January 20082 operating rooms, 6 surgeons, 2 gastroenterologists

South Shore of Montreal Opened October 20113 operating rooms, 6 surgeons, 5 gastroenterologists

Quebec’s new prevention policy in colo-rectal cancerShould increase the demandDiscussions with the RAMQ to cover the ancillary costs

New Quebec government prevention policy is expected to increase the demand

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Page 15: Annual Meeting  of Shareholders

PROCREA Cryopreservation Center

MissionOffer 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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Selected Financial Information

OPMEDIC Group

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Summary Balance Sheet

Strong balance sheet - well positioned to fund organic growth and take advantage of strategic acquisition opportunities

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

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Income Statement Highlights

Solid performance since 2011, as we register the impact of the new government policy

Significant ramp up in 2011 revenues and significant improvement in margins

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Revenue by division

2012 YTD Revenues

Enhanced stability of operations through diversification of its revenues

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Page 20: Annual Meeting  of Shareholders

Historical Performance

Strong growth in revenue, EBITDA and net income

2009-2012 Revenue CAGR = 13.9%

2009-2012EBITDA CAGR = 17.2%

2009-2012Net Income CAGR = 20.8%

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Note: Numbers in 2009 and 2010 in Canadian GAAP. Numbers in 2011 and 2012 in IFRS.

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YoY Margin Improvement

Strong operating leverage resulting in significant improvements in operating margins

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First Quarter Highlights

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Financial Markets Highlights

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TSX :OMG

17,274,867 shares outstanding

69,441 options outstanding

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