Slide 1: Enabling Healthcare: FY 2022 Preliminary Results Presentation
Enabling Healthcare FY 2022 Preliminary Results Presentation
Slide 2: Important Notice
Important Notice This presentation has been prepared solely in connection with the financial results of Uniphar plc (the "Company") for the year ended 31 December 2022 and should be read in conjunction with the announcement of the Preliminary results of the Company for the period ended 31 December 2
Slide 3: Agenda
Agenda 1. Overview & Highlights 3. Financial Review 2. Divisional Review 4. Capital Allocation, Outlook & Investment Case > Commercial & Clinical 5. Q&A > Product Access > Supply Chain & Retail Presenters Ger Rabbette Tim Dolphin Chief Executive Officer Chief Financial Officer uniphar.ie 3
Slide 4: Overview & Highlights
Overview & Highlights uniphar.ie 4
Slide 5: Uniphar at a glance
Uniphar at a glance Divisional Gross Profit A diversified international Strong performance across all divisions with healthcare service provider Supply Chain & Retail outperforming medium term divisional guidance Supporting 200 multinational Organic 200 pharmaceutical and med-tech manufacturers acro
Slide 6: Highlights – 2022
Continued growth across Delivering on expectations despite inflationary headwinds; all divisions leveraging scale and diverse platform Strong financial performance: > Adj EPS: 18.4 cent (up 14.3% LFL1) > EBITDA2 €98.0m (2021: €86.5m) > ROCE3 17.3% (2021: 17.6%) Robust Capital Structure with planned
Slide 7: Sustainability Highlights
Sustainability Highlights Sustainability is at the core of what we do and 1. People & Workplace is deeply embedded in our business strategy > Focus on Equity, Diversity and Inclusion with the launch of “Unity@Uniphar” > Launch of two employee groups, Women’s Alliance and Rainbow Alliance 2. Governan
Slide 8: Divisional Review
Commercial & Clinical Divisional Product Access Review Supply Chain & Retail uniphar.ie 8
Slide 9: Divisional Objectives
Divisional Objectives Commercial & Clinical Product Access Supply Chain & Retail Enabling patient access to treatments Enabling equitable access to Enabling the supply of medicines in across MedTech and Pharma industries unlicenced medicines worldwide Ireland Building an integrated European offering
Slide 10: Commercial & Clinical: Scaling our platform
Commercial & Clinical Scaling our platform 10% Currently Active Capability added in 2022-23 Pan-European Platform Medium term target expansion M&A and Organic Strategy > Serving 15 Countries > Medical Affairs capability recently added in Germany, Austria, Switzerland, France, Belgium, Luxembourg, It
Slide 11: Commercial & Clinical: Sales, marketing and distribution solutions
Commercial Sales, marketing and distribution Building a pan-European service offering & Clinical solutions for manufacturers Gross Profit Revenue Gross Profit Financials €306.8m €117.5m 2021 2022 Reported Organic Gross Profit Growth 13% 7% €m €50m €100m Manufacturers in 2 or more geographies MedTech
Slide 12: Product Access: Global Capabilities
10% Product Access Global Capabilities Market Leadership Geographical reach 42% > Strengthening value proposition and competitive offering with acquisition of BModesto in Continental Europe and Orspec Pharma in APAC > A number of US EAPs awarded last year Subject Matter Expertise Focus on Specialty
Slide 13: Product Access: Providing access to unlicensed and speciality medicines
Platform in place to become a global leader in Product Providing access to unlicensed and the provision of On Demand and Exclusive Access speciality medicines globally Access services Gross Profit Revenue Gross Profit Financials €206.9m €50.2m 2021 Reported Organic 2022 Gross Profit Growth 21% 7% €m
Slide 14: Supply Chain & Retail: Market Leadership
Supply Chain & Retail Market Leadership SC&R: Market Share Growth(1) Market Share Growth Trajectory; Market share >50% 2010 42% > Previous organic investments underpinning growth > Positive gross margin trajectory remains in focus 2022 > McCauley Pharmacy acquisition completed 0% 50% Operational Opt
Slide 15: Supply Chain & Retail
Longstanding manufacturer relationships, Supply Chain Market leader in Irish wholesale and scalable digital infrastructure & continued & Retail hospital market. Supported by a network of 423 pharmacies.(1) investment in high-tech distribution facilities Uniphar Volume Growth vs Market Volume Growth
Slide 16: Financial Review
Financial Review uniphar.ie 16
Slide 17: Financial Highlights
Financial Highlights Gross profit growth across all three divisions % Growth 11.7% Constant (€m) 2022 2021 Reported currency1 Organic 2 Strong overall Revenue 2,070.7 1,943.1 6.6% 6.3% EBITDA growth Gross profit 306.7 274.5 11.7% 10.8% 5.7% 13.4% Gross profit margin 14.8% 14.1% EBITDA 98.0 86.5 13.4
Slide 18: Divisional Gross Profit and Composition
Divisional Gross Profit Divisional Composition Diversified healthcare services business focused on higher margin opportunities 45% Organic 2022 2021 Growth Growth 2022 €’m €’m % % €306.7m Commercial & Clinical 117.5 104.4 12.6% 7.1% GP 17% Product Access 50.2 41.3 21.4% 7.0% 38% Supply Chain & Retai
Slide 19: Net Bank Debt Analysis
Net Bank Debt1 Analysis Balance sheet provides significant financial flexibility to execute strategy €91.2m Net bank debt at 31 December 2022 (5.4) (11.7) €80.9m Free cashflow (FCF %: 82.5%) FCF impacted by timing YE 2021 EBITDA Working Capex Strategic Acquis. Other2 YE 2022 differences, adjusted FC
Slide 20: FCF Conversion and Normalised FCF
FCF Conversion Normalised FCF Free Cashflow (FCF) 2022 2022 Medium term Adj €’m Reported Normal. Target EBITDA 98.0 - 98.0 60% - 70% Net Working Capital (5.4) (4.0) (9.4) > We target FCF1 conversion of 60-70% Capital Expenditure (11.7) - (11.8) > Normalised FCF of 78.4% after adjusting for timing di
Slide 21: Liquidity and Banking Facilities
Liquidity Banking Facilities ✓ Provides significant financial flexibility to execute growth 31/12/2022 €’m strategy Cash & Cash equivalents 103.7 ✓ Competitive interest rate ✓ Revolver Bank Borrowings (194.9) ✓ Multi-currency ✓ Domestic & International banking partners Net Bank Debt (91.2) ✓ AIB, BO
Slide 22: Capital Allocation, Outlook & Investment Case
Capital Allocation, Outlook & Investment Case uniphar.ie 22
Slide 23: Capital Allocation: Disciplined & balanced investment approach
Disciplined & balanced investment approach Capital Allocation Organic Investment > Continue to invest in infrastructure, digital platforms, strategic capex and talent to drive organic growth in line with medium term guidance M&A > Fundamental component of compounding growth strategy > Continue to ma
Slide 24: M&A: Continued Execution in 2022
M&A Continued Execution in 2022 Aug’22 Sep ‘22 Oct’22 Nov ‘22 APAC hub for ULM and EAP Leading independent pharmacy Highly innovative medical device Continental Europe hub for On business; Australia, NZ, chain, market-leading position in and pharma market research Demand and EAP business. Singapore.
Slide 25: Medium term outlook unchanged & 2023 expected to deliver on plan
Medium term outlook unchanged & 2023 Expected to Deliver on Plan Divisional Guidance | Medium term organic growth in gross profit: Group Guidance | Medium term metrics Product Access ROCE FCF Conversion Double Digit 12% - 15% 60% - 70% Commercial & Clinical Mid Single Digit Dividend Net Bank Debt /
Slide 26: Investment Case
Investment Case » Executive management, line management and specialty / technical personnel with many years of relevant industry Experienced experience driving the business Industry Team » Increasing requirements for speciality products » Continued growth in outsourcing by manufacturers Compelling »
Slide 27: Q&A
Uniphar.ie uniphar
Slide 28: Contact Details
Contact Details Allan Smylie Head of Strategy and Investor Relations +353 (0)1 428 7777 investor.relations@uniphar.ie Q4 PR Public Relations Adviser to Uniphar Iarla Mongey +353 (0)1 475 1444; or +353 (0)87 235 6461 Uniphar.ie
Slide 29: Thank You
Thank You Uniphar.ie &suniphar pha
Slide 30: Appendices
Appendices uniphar.ie 30
Slide 31: Evolution of Uniphar
Evolution of Uniphar Strong €98m Evolution to EBITDA Growth Integrated Model Fully integrated 40% model Product Access Gross Profit Gross Commercial Margin Profit % Margin % Clinical <€10m Supply 5% Chain 2010 EBITDA 2022 EBITDA 2010 2022 Geographic 2010 2022 Expansion Gross Profit <€50m €306.7m EBI
Slide 32: Strategic acquisitions
Strategic acquisitions Transformational Acquisitions Strong M&A discipline within the Group 2013 2018 2019 complements continued organic growth focus Acquisition Pipeline Criteria Strategic Acquisitions » Strategic alignment in identified growth segments » Retention of management talent and expertis
Slide 33: Transformational acquisitions
Transformational acquisitions Demonstrated track record of significant transactions Acquisition Division Supply Chain & Retail Commercial & Clinical Product Access Date of Acquisition 2013 2018 2019 Consolidated Irish market Scaling our Commercial & Clinical Global Platform to scale Product Strategi
Slide 34: Organic Investment
Organic Investment Strategic Capex: New facility Enablers Flagship Distribution Facility Market Share Investment supports Demographic continued strong Ageing population momentum Capacity Distribution Capabilities Futureproof Capacity Reduces Direct Pick Costs by 50% by >2x & Deliver Better Efficienc
Slide 35: Uniphar History
Uniphar History Establishing our platform - 10 years of transformation Uniphar’s Heritage Design New Vision Build Differentiated Capabilities Internationalise and Scale 1967 2019 2019 United Pharmaceuticals 2010 2021 IPO Acquisitions Co-Op Founded New senior management Acquisitions team appointed 19
Slide 36: Peer Landscape
Peer Landscape Uniphar peers differ by division Supply Chain Commercial Product Access & Retail & Clinical Wholesale & Pharma Medical Device Retail Business Exclusive Access ‘On Demand’ Access Pre-Wholesale Services Services Global Peers uniphar.ie 36
Slide 37: Regulatory Approval: Product Lifecycle Focus
Product Lifecycle Focus Specific expertise across multiple geographies Development Clinical Pre-approval Pre-reimbursement Post-reimbursement Off Patent Stage Duration Regulatory Approval ~7 years < 1 Year < 2 years 10-15 years Longer of Stage • Global Product Access capability significantly enhance
Slide 38: Summary Management Balance Sheet
Summary Management Balance Sheet 1 Balance Sheet (€’000) 31 Dec 2022 31 Dec 2021 Goodwill and acquired intangible assets 495,491 438,558 IFRS 16 Right of Use Asset 112,126 112,167 Other non-current assets 76,005 50,524 Total non-current assets 683,622 601,249 Inventory 157,656 112,407 Trade & other
Slide 39: Return on Capital Employed
Return on Capital Employed Year ended 31 December €’000 2021 2022 Numerator Rolling 12 months operating profit 53,155 Adjustment for exceptional costs 16,415 Amortisation of acquisition related intangibles 2,708 Adjusted 12 months operating profit 72,278 Denominator Total equity 251,564 289,783 Net
Slide 40: Summary Group Financial Information
Summary Group Financial Information Reported Year ended 31 December €’000 2022 2021 % Growth Revenue 2,070,669 1,943,149 7% Gross profit 306,744 274,497 12% Overheads & operating income1 (208,704) (188,016) 11% EBITDA 98,040 86,481 13% Depreciation & amortisation (28,470) (26,930) 6% Exceptional ite
Slide 41: EBITDA Reconciliation
EBITDA Reconciliation EBITDA is earnings before interest, tax, depreciation, amortisation and exceptional items. Year ended 31 December (€’000) 2022 2021 Operating profit pre exceptional 69,570 59,551 Depreciation 23,356 22,225 Amortisation 5,114 4,705 EBITDA 98,040 86,481 uniphar.ie 41