Slide 1: IVE Group Ltd FY19 Results Presentation
I V E G R O U P LT D F Y19 R E S U LT S P R E S E N TAT I O N A SX : I G L 27 T H AU G U S T 2 019
Slide 2: Agenda
3. BUSINESS OVERVIEW 4. YEAR IN REVIEW 8. FINANCIAL RESULTS - PROFIT AND LOSS - CAPITAL EXPENDITURE - NET DEBT - CASH FLOW AND DIVIDEND - HISTORICAL PERFORMANCE 15. OUTLOOK STATEMENT 16. APPENDICES IVE GROUP LTD: FY19 Results Presentation Page 2
Slide 3: Business Overview
DATA CREATIVE PHOTOGRAPHY / IMAGERY DATA ANALYTICS DESIGN / ART DIRECTION / ONE CUSTOMER VIEW COPY WRITING CUSTOMER EXPERIENCE STRATEGY MOVING IMAGE / CGI / ANIMATION PERSONALISED EDITING / RETOUCHING / FINISHED ART CUSTOMER JOURNEYS For businesses who need to connect with their customers, 3D STRUCT
Slide 4: Year in Review
YEAR IN REVIEW IVE GROUP LTD: FY19 Results Presentation
Slide 5: Financial Performance Dashboard
FINANCIAL PERFORMANCE DASHBOARD ( PRO FORMA ) EPS (2) EBITDA MARGIN $724.2M $80.4M $37.5M 16.3c UP 0.6% REVENUE EBITDA NPATA(1) DPS PCP 11.1% 17.0% UP 4.1% UP 9.8% UP 4.4% UP 5.2% ROFE (3) PCP PCP PCP PCP ( FULL YEAR ) (1) NPAT excluding amortisation of customer contracts (2) NPAT/weighted average s
Slide 6: Year in Review
YEAR IN REVIEW FINANCIAL HIGHLIGHTS BRAND SIMPLIFICATION — Solid uplift in revenue and EBITDA on PCP — In November 2019 the Group will cease going to market under 4 divisional brands (Kalido, Blue Star, Pareto, IVEO). — EBITDA margin of 11.1% (5.5% increase over PCP) The evolution to one IVE brand i
Slide 7: Year in Review
YEAR IN REVIEW PAPER The global pulp and paper market has experienced increased volatility over the last 12 months, resulting in: — Meaningful increases in paper prices negatively impacting margin in our Franklin WEB business — Tightening of supply requiring the Group to temporarily purchase signifi
Slide 8: FY19 Financial Results
F Y19 F I N A N C I A L R E S U LT S IVE GROUP LTD: FY19 Results Presentation
Slide 9: Profit and Loss
PROFIT AND LOSS • Revenue increase of $28.8M (4.1% increase on PCP) PRO FORMA — Organic growth of 2.4% — New client wins ACTUAL ACTUAL VARIANCE VARIANCE — Ongoing success of cross selling to existing customers FY2019 FY2018 $M % $M $M — Key contract extensions • Gross profit margin of 47.9% (48.7% i
Slide 10: Capital Expenditure
CAPITAL EXPENDITURE Over the last 2 years IVE has heavily invested in a number of strategic FY2019 initiatives to enhance our value proposition to customers and to $M further strengthen our market position. In FY19 the Group concluded the most significant investment program the sector has seen for F
Slide 11: Net Debt
NET DEBT • Net debt to pro forma EBITDA of $80.4M is 1.79x • Equipment finance borrowings increase relates to investment in personalised communications strategy • Increase in borrowings also driven by the higher working capital balance due to temporarily higher levels of paper inventory • During the
Slide 12: Cash Flow & Dividend
CASH FLOW & DIVIDEND • Pro forma free cash conversion of 81.7% impacted by increased PRO FORMA STATUTORY working capital due to higher paper inventory holdings FY2019 FY2019 $M $M • We have now concluded our recent growth phase capital investment program, with annual expenditure to reduce significan
Slide 13: Historical Performance (Pro Forma)
HISTORICAL PERFORMANCE ( PRO FORMA ) REVENUE EBITDA EBIT $M $M $M 800 100 60 57.7 700 724.2 54.3 695.4 80 50 80.4 600 73.2 40 41.4 500 496.9 60 %31 55.2 %31 34.8 %31 400 30 382 44.9 300 40 20 200 20 10 100 0 0 0 FY2016 FY2017 FY2018 FY2019 FY2016 FY2017 FY2018 FY2019 FY2016 FY2017 FY2018 FY2019 NPAT
Slide 14: Outlook Statement
O U TLO O K S TATE M E NT IVE GROUP LTD: FY19 Results Presentation
Slide 15: Outlook Statement
OUTLOOK STATEMENT — Expected solid performance positions us well to generate strong free cashflow over the year ahead — Working capital returning to normal levels following expected stabilisation in global pulp & paper markets — Following a period of heavy investment in a number of strategic growth
Slide 16: Appendices
A PPE N D I C E S IVE GROUP LTD: FY19 Results Presentation
Slide 17: Appendix A: Non IFRS Financial Information
APPENDIX A NON IFRS FINANCIAL INFORMATION In this Results Presentation, certain non-IFRS financial information has also been included to allow investors to understand the underlying performance of IVE. The Directors believe that the results before restructuring and acquisitions costs, and Pro Forma
Slide 18: Appendix B: Statutory Balance Sheet, Statutory to Pro Forma
STATUTORY APPENDIX B ACTUAL JUNE 2019 ACTUAL JUNE 2018 STATUTORY BALANCE SHEET, $’M $’M CURRENT ASSETS STATUTORY TO PRO FORMA Cash and cash equivalents Trade, prepayments and others 31.5 120.6 22.3 126.0 NPAT RECONCILLIATION Inventories 66.0 47.1 Total Current Assets 218.1 195.4 NON CURRENT ASSETS D
Slide 19: Appendix C: Disclaimer
APPENDIX C DISCLAIMER No recommendation, offer, invitation or advice of the Australian Securities Exchange, IVE disclaims any obligation or undertaking to disseminate This presentation contains general information about the activities of IVE Group Limited (IVE) any updates or revisions to this infor
Slide 20: IVE Group Ltd
I V E G R O U P LT D LEVEL 3, 35 CL ARENCE ST SYDNEY NSW 2000 + 61 2 8 0 2 0 4 4 0 0 GEOFF SELIG – E XECUTIVE CHAIRMAN M AT T A I T K E N – C H I E F E X E C U T I V E O F F I C E R DA R R E N D U N K L E Y – C H I E F F I N A N C I A L O F F I C E R I V E G R O U P. C O M . AU