CompuGROUP Holding AG Group
Business activities
CompuGROUP develops and sells efficient and quality-enhancing software solutions and services for participants in healthcare systems around the world and is one of the leading providers in the market for software solutions in the healthcare sector. CompuGROUP is represented internationally by subsidiaries and equity interests in Austria, France, Poland, Spain, Italy, Norway, Sweden, Denmark, South Africa, Malaysia, Greece, Luxembourg, Switzerland, Bulgaria, Latvia, Turkey, Czech Republic, Slovakia, USA, Canada and Saudi Arabia.
CompuGROUP earns top ranking in the Lünendonk List
CompuGROUP placed sixth in the newly introduced Lünendonk List of the "Top 25 Standard Software Suppliers in Germany" - testimony to the strength of the firm, which earned an outstanding second-place ranking in the list of small-and mid-sized businesses in 2008.
Segments
Integrated Health Provider Services (HPS)
The HPS segment includes the development, sales and service of specialised software and communications solutions for health service providers. About 220,000 physicians and dentists in their own practices and in hospitals use information systems supplied by CompuGROUP.
Health Connectivity Services (HCS)
In the HCS segment, our products and services enable the sector-wide networking of all those involved in healthcare. With its unique coverage in Europe amongst doctors, the focal point of the health system, CompuGROUP is a reliable and capable partner for all those involved.
Consumer Health Service (CHS)
The main product of the CHS segment is vita-X, the personal health record for all citizens. vita-X stands for the continual improvement of the efficiency and quality of medical care by providing the necessary information. Health systems profit from being able to access medical information anytime, anywhere.
Opportunities for future development resulting from competitive strengths
Leading market position for doctor information systems (AIS)
CompuGROUP is the leader in the German market for doctor and dentist information systems, as well as one of the leading AIS providers in Denmark, France, Sweden, Norway, Austria, Italy and the Czech Republic.
The AIS business is predominantly marked by long-term service and software maintenance agreements and is therefore distinguished by stable, continually recurring revenues. These regular revenues form a stable basis for financing investments or developing new products.
The Company sees a stable core business in the physician information system area, with its mostly long-term customer contacts, both as a strong market entry barrier and a key prerequisite for expanding the business activities to other areas and for the success of the offers in all segments.
Good positioning in the connectivity market
To reduce costs and ensure better quality of treatment, it is a stated policy objective in many European countries to improve the networking of participants in the healthcare sector. Due to the significant expansion of its Ambulatory information systems, CompuGROUP sees itself in a good position to interconnect physicians providing treatment, hospitals, cost bearers and industry, and is using its competitive advantage as regards the expansion of the connectivity market, which is still in the course of being built up.
The Company therefore holds a strong position for the future healthcare network in Germany and Europe, and is proceeding on the basis that it can benefit significantly from the expected growth in this area.
Good basis in hospital information system-sector
As a result of company takeovers in the area of hospital information systems for acute and rehab care facilities, particularly in Germany, the Czech Republic, Slovakia, Poland, Austria and Turkey, the hospital segment has expanded significantly in recent years. Due to the new systems and additional expertise gained as a result of these acquisitions, along with additional customers, CompuGROUP sees itself well-positioned for further growth in this segment.
Internationally applicable business model
Health systems in western industrialized countries, with the change in the age distribution to a larger number of elderly people, with medical advances and with the resulting steady increase in costs of treatment, are faced with essentially comparable challenges. As a matter of principle, there is accordingly a need in all these countries for efficiency-enhancing and cost-cutting IT solutions, such as the ones offered by CompuGROUP. For this reason, the Company considers that its business model, focused on products that improve the quality of treatment and simultaneously increase efficiency, will also carry over to the major foreign target markets.
Successful integration of acquired companies
Acquisition of leading HPS companies is a core element of CompuGROUP's strategy. In 2007 and 2008, CompuGROUP took decisive steps to expand its European presence through the acquisitions of Systema in Austria and Profdoc in Scandinavia. The combination of talented local management and the systematic application of CompuGROUP's best practices have substantially increased the profitability of these businesses while growth rates have been upheld. Based on the solid foundation laid down during 2009, both profitability and growth is expected to sharply increase in 2010 for these businesses. With a proven track record of integrating and increasing the value of HPS companies, CompuGROUP continues to look for similar acquisitions in all relevant markets.
Leadership in technology and innovation
Due to the highly developed technical features, practicality and user-friendly nature of its products, as well as to its innovative power, backed by an extensive R&D budget, the Company regards itself as a leader in its sector's technology and innovation. The Group considers itself to be very well positioned, primarily with regard to high-quality products where the competitive difference is less about the price than about the user-friendly nature and reliability of the products, along with technical innovation and services.
Because of its understanding of customer needs, an understanding acquired over many years of collaboration, technologically ambitious products have been introduced in recent years in all three business units.
Corporate strategy
The strategic aim of CompuGROUP is to continue to expand its position as the leading international provider of IT solutions for the healthcare system and as one of the leading eHealth companies in Europe. The key elements of its corporate strategy can be summarized as follows:
- Expansion of the leading market position with office-based doctors and dentists
- Implementation of a platform strategy for the development of Doctor Information Systems
- Expansion of the hospital business
- Expansion of activities aimed at networking healthcare stakeholders
- Further global expansion
- Further expansion of leadership in technology and innovation
Principles of the corporate management
The management board controls the business areas by implementing strategic and operational standards and using various key financial indicators. An important variable is organic growth as part of our growth strategy. Earnings before interest and taxes (EBIT) constitute an effective parameter for measuring the earning capacity of the business units.
Earnings before interest, taxes, depreciation and amortization (EBITDA) are also seen as a good indicator of the business unit's ability to generate positive cash flows and meet their financial obligations. Another indicator used for control purposes to optimize the operating cash flow is collection period.
Especially in light of our active investment activity regarding acquisitions of new enterprises, leverage represents an important statistic at the corporate level to optimize the cost of capital in the Group. Accordingly, capital procurement is understood to be a primary corporate responsibility that is not subject to the direct influence of the business units. Thus, interest paid for financing is not included in the agreed target variables of the individual business units. A similar procedure is followed for taxes.
Our access to approximately 331,000 customers results in additional significant corporate control factors for the Group arising from our sales and marketing departments. The most important statistics in this area concern customer acquisition, customer profit potential and customer satisfaction.
