Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — Shareholder Meeting (May 2019)
21 slides from Sigma Healthcare's shareholder meeting presentation, May 15, 2019
Slide 1: Future focused healthcare – Annual General Meeting 15 May 2019
For personal use only Future focused healthcare Annual General Meeting 15 May 2019
Slide 2: Brian Jamieson, Chairman
For personal use only Brian Jamieson Chairman 2
Slide 3: Overview
Overview For personal use only Annual Financial Results Business Transformation Program Merger Proposal Strategy and Direction Corporate Social Responsibility 3
Slide 4: Annual Financial Results
Annual Financial Results For personal use only Total Revenue $3.97 billion Underlying Net Profit After Tax $46.3 million High Dividend Payout Ratio maintained Dividend History 6.0 100.0% 5.5 90.0% 5.0 80.0% 4.5 70.0% 4.0 60.0% 3.5 50.0% 3.0 40.0% 2.5 30.0% 2.0 20.0% 1.5 10.0% 1.0 0.0% FY2015 FY20
Slide 5: Business Transformation
Business Transformation For personal use only Commercial decision to not renew Chemist Warehouse contract Terms of proposed contract were not in Sigma’s best commercial interest Would have significantly diminished shareholder returns Capital commitments would have constrained our future flexi
Slide 6: Merger Proposal
Merger Proposal For personal use only API offer was opportunistic when Sigma was most vulnerable API held just under 5% of Sigma shares in October 2018 and moved to 12.95% in December 2018 Our considered view was that it was not the right decision for mid to long-term shareholder value Sigma’s
Slide 7: Strategy and Direction
Strategy and Direction For personal use only Sharpened focus on the execution of our Strategy Organic growth in our core and improved operating efficiency Leveraging our core infrastructure Continued diversification of our earnings base Capital Expenditure program well advanced Business Tra
Slide 8: Corporate Social Responsibility – Our People
Corporate Social Responsibility – Our People For personal use only Females make up 57% of the Sigma workforce Safety is a major focus – LTIFR improved from last year Employee engagement survey – 68% say Sigma is truly a great place to work 60% of our team members are Sigma shareholders LTIFR Sig
Slide 9: Corporate Social Responsibility – Our Community
Corporate Social Responsibility Our Community For personal use only 2018 marked 20 years of our Guardian Angel Knitting Program Our support for the community remains strong $55K donated to Summer Foundation $30K donated to Carers Australia $40K donated to Free2Be and Assistance Dogs Australi
Slide 10: Corporate Social Responsibility – Our Environment
Corporate Social Responsibility Our Environment For personal use only Reduction in energy consumption at Rowville DC by 70% Solar power and water recycling installed at new DC’s Reduced plastic seals by over 231,000 units Eliminated 17,000 lineal metres of plastic bubble wrap Signatory to the A
Slide 11: Brian Jamieson, Chairman
For personal use only Brian Jamieson Chairman 11
Slide 12: Mark Hooper, CEO & Managing Director
For personal use only Mark Hooper CEO & Managing Director 12
Slide 13: Overview
Overview For personal use only Project Pivot transformation program Investment program and funding outlook Regulatory environment Business update 13
Slide 14: Business Transformation – Project Pivot
Business Transformation – Project Pivot For personal use only Project Pivot – a structured program to transform our business Enabling an efficient and effective core business $100+ million annualised efficiency gains Activity to date reinforces confidence in delivering this outcome MC/CW Transit
Slide 15: Business Transformation
Business Transformation For personal use only Managed wind down of services to CW Scheduled medicines shift on 1 July 2019 FMCG products shift in tranches up to September 2019 Enables efficient wind down of associated costs and staged reduction of work force 1
Slide 16: Capital Investment Program
Capital Investment Program For personal use only DC investment well advanced Over $220 million Queensland and Western Australia DC’s are operational New South Wales and South Australia DC‘s are nearing completion 16
Slide 17: Capital Investment Program
Capital Investment Program Capital expenditure program For personal use only 120 100 IT systems upgrade currently being 80 60 scoped including new ERP system 40 implementation - SAP 4 HANA selected 20 as the preferred solution 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY 23 (A) (A) (A) (A) (A)
Slide 18: Regulatory environment
Regulatory environment For personal use only Sigma signed a new CSO Deed in March 2019 CSO standards maintained under the Deed to support the government’s National Medicines Policy Ongoing issues to be addressed with the government post the Federal election The CSO delivers the National Medicines
Slide 19: Business Update
Business Update For personal use only Sigma pharmacy brands performing ahead of market DDS recognized with Roy Morgan award Sigma Hospitals – continuing momentum 3PL/4PL – actively pursuing opportunities 19
Slide 20: Business update
Business update For personal use only First 3 months in line with expectations Like for like sales in our brands – up over 4% (Ex Hep-C) On track to deliver FY20 underlying EBITDA of $55-$60m Debt expected to return to below $100m by year end Confident that Project Pivot will deliver annualised
Slide 21: Thank you
For personal use only Thank you