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Annual Meeting of Shareholders. On February 10, 2012. 1. Forward-Looking Statement.
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Annual Meeting of Shareholders On February 10, 2012 1
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. 2
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 3
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 4
Corporate Profile Capital Markets Highlights Financial Highlights (August 31, 2011) 5
Organization Fertility treatments, laboratory analysis, imaging and diagnostic procedures Two sites and three satellites in Quebec • One site opened in in Toronto in 2011in Toronto in 2011 • Surgical and endoscopic services and facilities • One site for surgery, • three sites for endoscopy(Laval, Quebec city and South Shore of Montreal) Donor sperm banking and sperm preservation services One of the larger donor sperm banks in Canada 6
Management and Board of Directors Solid Board of Directors and management team with significant experience in the healthcare industry 7
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 8
OPMEDIC Group Services Offering 9
PROCREA - Fertility Mission Help individuals conceive children using leading-edge biotechnology. Assist in the diagnosis, treatment and prevention of diseases related to reproductive medicine. Services Offering In vitro fertilization Diagnostic laboratory services Prenatal screening Foetal ultrasounds Solid reputation and track-record as a provider of fertility treatments & services 10
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 11
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 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 12
OPMEDIC - Surgery Mission 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. Services Offering General surgery Plastic surgery Gynaecology Head and neck surgery 13
OPMEDIC - Endoscopy Mission Provide patients with diagnostic and operative endoscopic procedures Quebec City 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 14
PROCREA Cryopreservation Center Mission Offer 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 15
Selected Financial Information OPMEDIC Group 16
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 17
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 18
Revenue by division 2011 YTD Revenues 2010 YTD Revenues Enhanced stability of operations through diversification of its revenues 19
Historical Performance Strong growth in revenue, EBITDA and net income 2008-2011 Revenue CAGR = 24.7% 2008-2011 EBITDA CAGR = 43.6% 2008-2011 Net Income CAGR = 60.8% 20
YoY Margin Improvement Strong operating leverage resulting in significant improvements in operating margins 21
First Quarter Highlights Good performance, even if Quebec clinic didn’t have any IVF for two months 22
17,274,867 shares outstanding 36,919 options outstanding 24