Paragon Care Limited · ASX:PGC
Paragon Care — H1 2019 Earnings Presentation
19 slides from Paragon Care's earnings presentation, Feb 28, 2019
Slide 1: Half Year Results Presentation 1H FY19
Half Year Results Presentation 1H FY19 28 February 2019 | ASX:PGC
Slide 2: 1H19 financial highlights
1H19 financial highlights ~9% organic growth achieved in 1H19 from Continuing Revenue business (~2x market) FY19 revenue guidance remains unchanged and on target Gross margin for 1H19 of ~38% Continuing business EBITDA of ~$14m in line with recently EBITDA provided 1H19 guidance 1H19 EBITD
Slide 3: 1H19 operational overview and outlook
1H19 operational overview and outlook Status Improved sales performance with focus in 2018 to strengthen sales leadership, transform sales culture and improve accountability Strong sales Significant future benefits anticipated from Paragon’s transformation performance into a world-class provider
Slide 4: Strategy and transformation programme
Strategy and transformation programme Financial performance and outlook Paragon Care Limited (ASX:PGC) 4
Slide 5: Focused vision and strategy guides our growth path
Focused vision and strategy guides our growth path To simplify and improve our customers’ work, contributing to improved Mission patient care To be Australia and New Zealand’s leading supplier of healthcare Vision equipment and integrated services Deep solution partner Best-in-class sales Scalable s
Slide 6: Growing our share of a $9bn market opportunity
Growing our share of a $9bn market opportunity >$190bn market spend Total healthcare spend in Aus & NZ Paragon’s approach to its $9bn addressable opportunity addressable Focus on attractive customer ‘value market opportunity pools’ in acute care, critical care, With only ~3% share of a highly frag
Slide 7: Paragon is currently in a transformation stage
Paragon is currently in a transformation stage Current focus Transformation to accelerate Stronger Continuing business Clear need for integration integration delivering shareholder value By 2018, Paragon had completed Following a new CEO appointment, While Paragon is already seeing 16 acquisitions i
Slide 8: Early benefits from transformation programme being captured
Early benefits from transformation programme being captured Whole of business transformation programme across three key categories… Business and product Standard Work, and Single operational review Progression platform Streamlined portfolio focused Consistent best-in-class Cost out – from 14 to 1 IT
Slide 9: Encouraging progress in delivering on transformation
Encouraging progress in delivering on transformation Progress to date 2019 focus areas Divestment of the legacy capital Finalise divestment of legacy equipment equipment business is well underway business by the end of 2H19 Multiple parties conducting due diligence Disciplined ongoing manage
Slide 10: Paragon is building a world-class sales organisation
Paragon is building a world-class sales organisation Four key sales and marketing verticals Focused on the customers and segments with higher growth outlook Served by specialist sales teams with deep domain knowledge Devices Diagnostics Capital & Consumables Services Technical Support The ‘Paragon W
Slide 11: Early traction from transformed business
Early traction from transformed business Eye care – more effectively serving existing customers Paragon’s sales culture is undergoing a truly significant Demonstrated early benefits of broader transformation. We’re already product portfolio, enabling deeper seeing the benefits of our efforts relat
Slide 12: Financial performance and outlook
Strategy and transformation programme Financial performance and outlook Paragon Care Limited (ASX:PGC) 12
Slide 13: 1H19 results summary: Group total Revenue up, EBITDA up
1H19 results summary: Group total Revenue up, EBITDA up 1H19 financials reflect a business in transition Revenue ($m) EBITDA1 ($m) 2H Step-change in revenue from prior comparable 1H 137 18.2 117 17.1 period largely reflects acquisition activity in 93 calendar year 2018 84 12.1 62 10.4 12.7 55 130
Slide 14: 1H19 results – key sales verticals (Continuing business)
1H19 results – key sales verticals (Continuing business) Paragon Capital Devices Diagnostics Services verticals & Consumables Revenue ~$37m ~$12m ~$63m ~$7m $119m Technical Support Organic 9% 2% 10% 7% 9% growth Positive outlook for future growth Targeting a long-term sustainable organic growth rate
Slide 15: 1H19 financials – key takeaways
1H19 financials – key takeaways Strong 'Continuing business' sales performance, revenues of $119m and organic growth of ~9% per annum Group EBITDA impacted by poor performance in capital, one-off costs, and delayed integration synergies Underlying EBITDA held back by slower realisation of cost syner
Slide 16: Full year FY19 outlook
Full year FY19 outlook Strong full year FY19 outlook for Continuing business FY19 Continuing business revenue target of $240m Strong organic growth tracking at ~9% Revenue Reflects improved sales performance following actions in 2018 to strengthen sales leadership, transform sales culture and im
Slide 17: Corporate overview
Corporate overview Highly experienced Board of Directors Financial overview Board of Directors Shane Tanner Andrew Just (appointed 31 May 2018) Financial Information Non-Executive Chairman Managing Director Chairman of Zenitas Healthcare, Rhythm 25 years’ experience across Fortune 500 and Share
Slide 18: Disclaimer
Disclaimer Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Paragon Care Limited’s current intentions, plans, expectations, assumptions and beliefs about future
Slide 19: Andrew Just Chief Executive Officer and Managing Director
Andrew Just Chief Executive Officer and Managing Director P: 1 300 369 559 E: andrew.just@paragoncare.com.au Paragon Care Limited (ASX:PGC) 19