BFIG-Tech Sector presentation.

1. CERNER CORPORATION : CERN
WAQAS KHOKHAR
SUGANDHA SHARMA

2. Company Overview
-- International healthcare information technology corporation with
specialization in providing complete systems to hospitals & other medical
organizations to manage and integrate all electronic medical records,
computerized physician order entry, and financial information.
-- Leading supplier of healthcare Information Technology solutions &
healthcare devices

3. Sector: Technology
Industry: Healthcare Information Technology
Top Competitors:
Allscript Healthcare Solutions Ltd (MDRX)
CareFusion Corporation (CFN)
Quality Systems Inc (QSII)

4. Cerner Corp: Strategies
--- Evolution of Cerner Millennium as Millennium +. It combines the secure Cerner
cloud and delivers the new experience which is fast, smart and easy
--- Power Chart + Touch – specifically created for ipad
Company Trends:
-- It has increased 46% in the past 12 months & has tripled in the last 5 years
-- Nine straight quarters of revenue growth & eight straight quarters of profit
increase
-- Revenue jumped 10% and profits increased by 20% from the fiscal of 2009-2010
and revenue soared 19% and profits 26% from 2010 -2011
-- For 2012, forecasts are for another 22% in profit growth

5. CERN : Financials
ROE ROA D/E
Cern 14.55% 10.60% 0.0548
MDRX 5.15% 4.37% 0.2493
QSII 32.01% 19.07% 0.0
CFN 6.81% 4.54% 0.2687
Industry 6.7% 3.30% --

6. CERN MDRX QSII CFN Industry
Market Cap: 12.92B 3.15B 2.58B 5.82B 39.28M
Beta 0.66 1.09 0.35 0.87 1.02
Qtrly Rev
Growth (yoy):
23.10% 25.50% 22.74% 3.30% 8.80%
Revenue (ttm): 2.20B 1.44B 417.95M 3.52B 54.89M
Gross Margin
(ttm):
79.95% 46.09% 65.92% 51.00% 53.09%
EBITDA (ttm): 593.26M 253.80M 130.33M 793.00M 3.33M
Operating
Margin (ttm):
20.87% 11.95% 29.04% 16.39% 4.69%
Net Income
(ttm):
306.63M 73.61M 79.14M 344.00M N/A
EPS (ttm): 1.76 0.39 1.36 1.29 0.00
P/E (ttm): 43.27 42.56 32.23 20.12 20.37
Dividend -- --- 0.71 -- N/A
Forward P/E 28.00 13.07 25.28 12.90 ---

7. Cerner: Buy
--- Global Movement towards digitizing Healthcare
--- Healthcare Spending Averages 6.7% growth in U.S and is
increasing abroad
--- Population trend
--- International Opportunity ( Credit Suisse – 30 Billion $ of
opportunity exist globally for healthcare information
technology services)
--- Ever growing health care domestically and internationally

8. Company’s Current Position
- Cerner Solutions has licensed 10,000 facilities around
the world, 2650 hospitals, 3750 physicians practices,
40000 physicians, 500 ambulatory facilities, such as
laboratories, radiology clinics & surgery centers, 800
home health facilities, 40 employer sites and 1600
retail pharmacies