Uniphar PLC · EURONEXT:UPR
Uniphar — FY2019 Earnings Presentation
38 slides from Uniphar's earnings presentation, Mar 27, 2020
Slide 1: Trusted Global Partner: 2019 Preliminary Results Presentation
Trusted Global Partner Delivering to over 160 countries worldwide 2019 Preliminary Results Presentation 27 March 2020
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 2019 and should be read in conjunction with the announcement of the preliminary results of the Company for the year ended 31 December 201
Slide 3: Agenda and Presenters
Agenda Presenters 1. Overview & Highlights Ger Rabbette Chief Executive Officer 2. Divisional Review » Commercial & Clinical Tim Dolphin » Product Access Chief Financial Officer » Supply Chain & Retail Padraic Dempsey 3. Financial Review Chief Commercial Officer 4. Strategic Initiatives 5. Investmen
Slide 4: Uniphar at a Glance
Divisional Gross Profit Overview Supply Chain & Retail 10% Commercial & Clinical Product Access 2019 Uniphar at a Glance 48% 42% €180.6m A diversified international healthcare service provider GP Supporting 200 multinational pharmaceutical and medical manufacturers across three divisions – 200 Comme
Slide 5: Highlights
Highlights Financial Highlights1 Strategic Initiatives Gross Profit: €180.6m, 7% organic growth IPO in July provides capital structure to execute growth plans EBITDA2: €48.0m (pre impact of IFRS 16) Durbin, M3 & EPS acquisitions complete and integration progressing in line with plan €58.6m (after im
Slide 6: Divisional Review
Divisional Review uniphar.ie 6
Slide 7: Commercial & Clinical
Sales, marketing and Building a pan-European service offering from the Commercial present footprint in Ireland, the UK, Benelux and distribution solutions for & Clinical the Nordics manufacturers Financials Revenue Gross Profit €204.0m €76.8m HCP interactions 2018 >340k Organic GP Growth 2019 >580k
Slide 8: Product Access
Providing access to Product Platform in place to become a global unlicensed and speciality leader in the provision of On Demand and medicines globally Access Exclusive Access services Financials Revenue Gross Profit Gross Profit €132.2m €17.2m 2018 Reported Organic Gross Profit Growth 2019 Uniphar (
Slide 9: Supply Chain & Retail
Market leader in Irish Supply Chain Leverage high-tech distribution facilities, wholesale and hospital longstanding manufacturer relationships and market. Supported by a & Retail scalable digital infrastructure network of 287 pharmacies.(1) Financials Uniphar Volume Growth vs Market Volume Growth Re
Slide 10: Financial Review
Financial Review uniphar.ie 10
Slide 11: Financial Highlights
Financial Highlights Gross profit growth across all three divisions contributing to strong overall EBITDA growth and return on capital employed of 14.7% 3 % Growth Constant Year ended 31 December (€m) 2019 2018 Reported currency 1 Organic 2 Revenue 1,665.3 1,417.9 17% 17% 7% Gross profit 180.6 115.7
Slide 12: Gross Profit
Gross Profit Diversified healthcare services business focused on growth markets 48% 2019 Organic 2019 GP 2018 GP Growth Growth €180.6m €’m €’m % % GP 10% Commercial & Clinical 76.8 35.4 117% 5% 42% Product Access 17.2 10.3 66% 16% Supply Chain & Retail 86.6 70.0 24% 8% 60% Total 180.6 115.7 56% 7% 2
Slide 13: Net Bank Cash Analysis
Net Bank Cash Analysis Balance sheet well positioned to execute strategy Net bank cash at 31 December 2019: €26.6m €48.0m (€39.6m) (€1.9m) (€6.4m) €68.0m (€17.1m) (€152.9m) €128.5m Free cashflow: (FCF %: 82.6%) €39.7m €26.6m Net Bank EBITDA Working Capex Net Non Other Net Share Net Bank Debt FY18 Ca
Slide 14: FCF Conversion and Normalised FCF
FCF Conversion Normalised FCF Medium- term Target Free Cashflow (FCF) 2019 2019 Adj €’m Reported Normalised 60% - 70% EBITDA 48.0 - 48.0 We target FCF conversion of 60-70% Net Working (1.9) (17.0) (18.9) This has increased to 83% in 2019 due to several one off items including: Capital • Favourable o
Slide 15: Year-end Liquidity
Year-end Liquidity 2020 Liquidity Cash & Cash equivalents €116.2m Year End Position €’m Net Bank Cash at year end €26.6m Cash & Cash equivalents 116.2 Net Bank Debt / EBITDA Leverage Bank Borrowings (89.6) Year end position = 0x(1) 2020 Bank Covenant = 4.2x Net Bank Cash at year end 26.6 Uncommitted
Slide 16: Strategic Initiatives
Strategic Initiatives uniphar.ie 16
Slide 17: Divisional Objectives
Divisional Objectives Supply Commercial Product Chain & Clinical Access & Retail Pan-European Market Market Share Platform Leadership Client Business Operational Growth Development Optimisation Digital Patient Retail Solutions Focused Excellence uniphar.ie 17
Slide 18: Acquisition Integration Update
Acquisition Integration Update 3 Acquisitions completed in 2019 across ‘Growth Divisions’ Both acquisitions aligned with our strategy connected to therapeutic expertise Ireland, UK, Benelux, Nordics & Baltics EPS & M3 Strategic therapeutic expertise Add significant experience across Interventional C
Slide 19: Commercial & Clinical: Scaling in Europe
Commercial Active in 2018 & Clinical 10% Strategic Milestone: Uniphar’s entry into the Nordics Scaling in Europe Medium term target expansion European Platform M&A and Organic Strategy Targeting local expertise in areas of therapeutic focus Achieved via recent MedTech acquisitions Driving organic gr
Slide 20: Product Access: Global Capabilities
Product Access 10% Global Capabilities Market Leadership 42% Strong Organic Growth of 16% Continued focus on Global ‘Managed Access Programmes’ Post License – Pre Reimbursement expertise Driving increased Pre Licenses opportunities Accelerated European & ROW “On-Demand” growth Business Development S
Slide 21: Product Lifecycle Focus and Regulatory Approval
Product Lifecycle Focus Specific expertise across multiple geographies 1 2 3 4 5 Development Clinical Pre-approval Pre-reimbursement Post-reimbursement Off Patent Stage Regulatory Approval Duration ~7 years < 1 Year < 2 years 10-15 years Longer of Stage Uniphar Acquisitions • Global Product Access c
Slide 22: Case Studies: Commercial & Clinical and Product Access
Case Study: Case Study: Commercial & Clinical Product Access » Global provider of medical technologies » NASDAQ listed biopharmaceutical company Client Client » Diverse portfolio in the fields of interventional » Committed to developing new medicines to access, cardiac care, surgical and emergency t
Slide 23: Investment Case & Outlook
Investment Case & Outlook uniphar.ie 23
Slide 24: 2020 Outlook
2020 Outlook Strong 2019 results in line with Board expectations Robust capital structure in place with ample liquidity (Net cash of €26.6m) 2020 trading to date ahead of expectations Spike in demand related to COVID-19 Potential C&C Medtech downside scenario where elective surgeries are postponed S
Slide 25: Medium Term Outlook
Medium Term Outlook Divisional Guidance | Medium term organic growth in gross profit, by division: Commercial Supply Product Access & Clinical Chain Double Mid Single Low Single Digit Digit Digit In the medium term M&A expected to make a meaningful contribution to gross profit in addition to organic
Slide 26: Capital Allocation
Capital Allocation 10% Reinvest to support growth Continue to invest in infrastructure, digital platforms, strategic 42% Capex and talent to deliver organic growth in line with medium term guidance Reinvest to - Planned investment in SC&R facility in 2020 Growth support through M&A M&A growth Growth
Slide 27: Investment Case
Compelling Investment Case Market Opportunity • Increasing requirements for speciality products • Continued growth in outsourcing Experienced by manufacturers Industry Team • Highly fragmented European market • Executive management, line Experienced Compelling Market management and specialty / techn
Slide 28: Uniphar's Role in Healthcare Infrastructure: COVID-19 Response
Uniphar’s role in the Healthcare infrastructure Co-ordinated response to COVID-19 Global Platform Uniphar has taken measures to ensure continuation of vital services ▪ Patient Access services to over 160 countries ➢ Consultation and strategic planning discussions with worldwide Government & Regulato
Slide 29: Q&A
Q&A uniphar.ie 29
Slide 30: Contact Details
Contact Details Brian O’Shaughnessy Group Director of Corporate Development +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 30
Slide 31: Financial Appendices
Financial Appendices uniphar.ie 31
Slide 32: Summary Group Financial Information
Summary Group Financial Information Year-ended 31 December 2019 2019 Reported Reported (€’m) (Incl IFRS 16) (Excl IFRS 16) 2018 Incl IFRS 16 Excl IFRS 16 Revenue 1,665,283 1,665,283 1,417,895 17% 17% Gross profit 180,602 179,479 115,717 56% 55% Overheads & operating income1 (122,047) (131,457) (83,4
Slide 33: Summary Management Balance Sheet
Summary Management Balance Sheet 1 Balance Sheet (€’000) 31 Dec 2019 31 Dec 2018 Goodwill 270,727 200,217 IFRS 16 Right of Use Asset 91,978 - Other non-current assets 38,866 45,075 Total non-current assets 401,571 245,292 Inventory 98,105 76,070 Trade & other receivables 136,780 170,659 Other curren
Slide 34: Return on Capital Employed
Return on Capital Employed Excl. IFRS 16 Incl. IFRS 16 Impact Impact Year ended 31 December (€’000) 2018 2019 20191 Numerator Rolling 12 months operating profit 27,152 28,207 Adjustment for exceptional costs 12,043 12,043 Adjusted 12 months operating profit 39,195 40,250 Denominator Total equity (61
Slide 35: EBITDA Reconciliation
EBITDA Reconciliation EBITDA is earnings before interest, tax, depreciation, amortisation and exceptional items. 2019 2019 Year ended 31 December 2019 (€’000) (Incl IFRS 16) (Excl IFRS 16) 2018 Operating profit pre exceptional 40,250 39,195 25,001 Depreciation 15,911 6,433 4,610 Amortisation of comp
Slide 36: IFRS 16 – Leases
IFRS 16 – Leases Adopted from 1 January 2019 (comparative information not restated) IFRS 16 Impact on P&L(1) €’000 FY 2019 Impact FY 2019 Estimated 2020 Impact Pre IFRS 16 Post IFRS 16 EBITDA 48,022 10,533 58,555 Range of €11 – €12m Depreciation & Amortisation (8,827) (9,478) (18,305) Range of €10 –
Slide 37: Acquisitions Completed in 2019
Acquisitions Completed in 2019 Strategic Acquisitions Value Creation Initiatives Continued Client Growth Global platform (PA) and European Platform (C&C) enables Uniphar gain a market leadership position in two high growth sectors. Focused Market Leadership Current scale creates a competitive advant
Slide 38: Exclusive Access Focused on Specialty & Orphan Diseases
Exclusive Access Focused on Specialty & Strong business development pipeline focused Orphan Diseases on speciality pharma Partnering with 18 speciality pharma organisations… Strong Pipeline of New Exclusive Access Opportunities 60% Orphan >€30m GP Designation Pipeline Orphan Speciality (all) ✓ 100%