Uniphar Plc · EURONEXT:UPR
Uniphar — H1 2022 Earnings Presentation
40 slides from Uniphar's earnings presentation, Aug 30, 2022
Slide 1: Sustainable Growth: H1 2022 Interim Results Presentation
Sustainable Growth H1 2022 Interim Results Presentation 30 August 2022 1
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 six months ended 30 June 2022 and should be read in conjunction with the announcement of the interim results of the Company for the period ended 30 June 2022, r
Slide 3: Agenda
AGENDA 1. Overview & Highlights 3. Financial Review 2. Divisional Review 4. Capital Allocation, Outlook & > Commercial & Clinical Investment Case > Product Access 5. Q&A > Supply Chain & Retail Presenters Ger Rabbette Tim Dolphin Chief Executive Officer Chief Financial Officer uniphar.ie 3
Slide 4: Uniphar at a Glance
UNIPHAR AT A GLANCE DIVISIONAL GROSS PROFIT A diversified international Strong performance across all divisions with Supply Chain & Retail once again outperforming medium term divisional healthcare service provider guidance Supporting 200 multinational Organic 200 pharmaceutical and med-tech manufac
Slide 5: Highlights – 2022
HIGHLIGHTS – 2022 Continued growth across all divisions > Delivering on expectations despite inflationary headwinds; leveraging scale and diverse platform > Strong financial performance: • Adj EPS: 8.4 cent (up 20% LFL1) • EBITDA2 €44.9m (2021: €41.1m) • ROCE3 16.6% (2021: 17.6%) > Robust Capital St
Slide 6: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS Our Charity Sustainable Partners Development Goals INTEGRITY – INCLUSIVITY – LEGACY – STEWARDSHIP - TRANSPARENCY We fully endorse the UN Sustainable Development Goals and consider the PEOPLE & WORKPLACE following goals to be most relevant to > Focus on Equity, Diversity and
Slide 7: Divisional Review
DIVISIONAL REVIEW uniphar.ie 7
Slide 8: Divisional Objectives
DIVISIONAL OBJECTIVES Commercial Product Supply Chain & Clinical Access & Retail Pan-European Platform Market Leadership Market Share Therapeutic Expertise Patient Centricity Operational Optimisation Omni-Channel Enabled Subject Matter Expertise Symbol Group Leadership H1 2021 Results Presentation 2
Slide 9: Commercial & Clinical: Scaling Our Platform
COMMERCIAL & CLINICAL SCALING OUR PLATFORM Currently Active 10% Medium term target expansion PAN-EUROPEAN PLATFORM M&A and Organic Strategy > Serving 15 Countries > Continuing to scale European Platform THERAPEUTIC FOCUS Market Specific Solutions > Expanding service offering in USA > Growing new cli
Slide 10: Commercial & Clinical
COMMERCIAL Sales, marketing and Building a pan-European service offering from & CLINICAL distribution solutions our present footprint in Ireland, the UK, Germany, for manufacturers Benelux, the Nordics & the US Gross Profit Revenue Gross Profit Financials €162.3m €58.5m H1 2021 H1 2022 Reported Orga
Slide 11: Product Access: Global Capabilities
PRODUCT ACCESS 10% GLOBAL CAPABILITIES MARKET LEADERSHIP Geographical reach 42% > Strengthening value proposition and competitive offering with acquisition of Orspec Pharma in APAC > First ever US EAPs awarded SUBJECT MATTER EXPERTISE Focus on Specialty Pharma > Continue to expand our therapeutic fo
Slide 12: Product Access
PRODUCT Providing access to Platform in place to become a global ACCESS unlicensed and speciality leader in the provision of On Demand medicines globally and Exclusive Access services Gross Profit Revenue Gross Profit Financials €74.5m €21.8m H1 2021 Reported Organic H1 2022 Gross Profit Growth 9% 6
Slide 13: Supply Chain & Retail: Market Leadership
SUPPLY CHAIN & RETAIL MARKET LEADERSHIP SC&R: Market Share Growth(1) MARKET SHARE 2010 Growth Trajectory; Market share >50% 42% > Previous organic investments underpinning growth 2022 > Positive gross margin trajectory remains in focus > M&A broadening offering and fuelling growth 0% 50% OPERATIONAL
Slide 14: Supply Chain & Retail
Market leader in Irish Longstanding manufacturer relationships, SUPPLY CHAIN wholesale and hospital scalable digital infrastructure & continued & RETAIL market. Supported by a investment in high-tech distribution facilities network of 381 pharmacies.(1) Uniphar Volume Growth vs Market Volume Growth
Slide 15: Financial Review
FINANCIAL REVIEW uniphar.ie 15
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Gross profit growth % Growth across all three divisions 8.8% (€m) H1 2022 H1 2021 Reported Constant currency 1 Organic 2 Reported Growth Strong overall Revenue 991.8 964.9 2.8% 2.4% EBITDA growth Gross profit 146.1 134.3 8.8% 7.6% 4.9% 9.2% Gross profit margin EBITDA 14.7% 44.9
Slide 17: Divisional Gross Profit
DIVISIONAL GROSS PROFIT DIVISIONAL COMPOSITION Diversified healthcare services business focused on higher margin opportunities 45% Organic 2022 H1 2022 H1 2021 Growth Growth €146.1m €’m €’m % % GP Commercial & Clinical 58.5 53.4 9.5% 4.2% 15% 40% Product Access 21.8 20.1 8.8% 5.7% Supply Chain & Ret
Slide 18: Net Bank Debt Analysis
NET BANK DEBT1 ANALYSIS Balance sheet provides significant financial flexibility to execute strategy €73.8m Net bank debt at 30 June 2022 44.9 €21.4m (19.3) (4.3) (7.1) (16.8) Free cashflow (FCF %: 47.5%) (48.3) (22.9) (73.8) FCF impacted by timing YE 2021 EBITDA Working Capex Strategic Acquis. Othe
Slide 19: FCF Conversion
FCF CONVERSION Normalised FCF Free Cashflow (FCF) 2022 2022 Medium term €’m Reported Adj Normal. Target EBITDA 44.9 - 44.9 60% - 70% Net Working Capital (19.3) 10.2 (9.1) > We target FCF1 conversion of 60-70% Capital Expenditure (4.3) - (4.3) > Normalised FCF of 70.2% after adjusting for timing diff
Slide 20: Liquidity Refinancing Completed
LIQUIDITY REFINANCING COMPLETED ✓ Provides significant financial flexibility to execute 30/06/2022 €’m growth strategy ✓ 5-year agreement Cash & Cash equivalents 68.3 ✓ Facility limits more than doubled Bank Borrowings (142.1) ✓ Domestic & International banking partners ✓ AIB, BOI, RBC, HSBC, Barcla
Slide 21: Capital Allocation, Outlook & Investment Case
CAPITAL ALLOCATION, OUTLOOK & INVESTMENT CASE uniphar.ie 21
Slide 22: 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 23: Organic Investment
ORGANIC INVESTMENT Strategic Capex: Flagship Distribution Facility New facility Enablers Market Share Investment supports Demographic continued strong Ageing population momentum CAPACITY DISTRIBUTION CAPABILITIES Futureproof Reduces Direct Pick Costs by Capacity by >2x 50% & Deliver Better Efficienc
Slide 24: M&A: Continued Execution in 2022
M&A CONTINUED EXECUTION IN 2022 Market Leadership APAC hub for ULM and EAP business (Australia, NZ, Singapore) Product Patient Centricity Serving patient needs in region leads to higher quality service Access Subject Matter Expertise Experienced Management Team INTEGRATION OF 2021 ACQUISITIONS July’
Slide 25: Medium Term Outlook Unchanged & 2022 Expected to Deliver on Plan
MEDIUM TERM OUTLOOK UNCHANGED & 2022 EXPECTED TO DELIVER ON PLAN Divisional Guidance | Medium term Group Guidance | Medium term metrics organic growth in gross profit: PRODUCT ACCESS ROCE FCF Conversion Double Digit 12 - 15% 60% - 70% COMMERCIAL & CLINICAL Mid Single Digit Dividend Net Bank Debt / E
Slide 26: Investment Case
INVESTMENT CASE COMPELLING MARKET OPPORTUNITY • Increasing requirements for speciality products • Continued growth in outsourcing EXPERIENCED by manufacturers INDUSTRY TEAM • Highly fragmented European market Experienced Compelling • Executive management, line Industry Market management and specialt
Slide 27: Uniphar Group
&suniphar group
Slide 28: Contact Details
Uniphar.ie CONTACT DETAILS Seamus Egan Head 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 28
Slide 29: Thank You
UNIPHAR.IE THANK YOU Uniphar.ie 29
Slide 30: Appendices
APPENDICES re uniphar.ie 30
Slide 31: Strong EBITDA Growth Evolution to Integrated Model
STRONG >€86m EVOLUTION TO EBITDA GROWTH INTEGRATED MODEL Fully integrated 40% model Product Access Gross Commercial Profit Margin % Clinical <€10m Supply 2010 Chain 5% EBITDA 2021 EBITDA 2010 2021 2010 2021 GEOGRAPHIC GROSS PROFIT <€50m €274.5m EXPANSION EBITDA <€10m €86.5m LEVERAGE >25x <1x SERVICE
Slide 32: Strategic Acquisitions
STRATEGIC ACQUISITIONS Strong M&A discipline within the Group complements continued organic Transformational Acquisitions growth focus 2013 2018 2019 Acquisition Pipeline Criteria Strategic alignment in identified growth segments Strategic Acquisitions Retention of management talent and expertise Cu
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 Scaling our Commercial & Clinical Global Platform to scale Product Access Strategic Rationale Conso
Slide 34: 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 35: Peer Landscape
PEER LANDSCAPE Uniphar peers differ by division Supply Chain Commercial Product Access & Retail & Clinical Wholesale & Pharma Medical Device ‘On Demand’ Retail Business Exclusive Access Pre-Wholesale Services Services Access Global Peers Fragmented Independent Market uniphar.ie 35
Slide 36: Product Lifecycle Focus
PRODUCT LIFECYCLE FOCUS Specific expertise across multiple geographies 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 • Global Product Access capability significantly enhance
Slide 37: Summary Management Balance Sheet
SUMMARY MANAGEMENT BALANCE SHEET 1 Balance Sheet (€’000) 30 June 2022 31 Dec 2021 Goodwill and acquired intangible assets 451,820 438,320 IFRS 16 Right of Use Asset 109,901 112,167 Other non-current assets 57,642 50,512 Total non-current assets 619,362 600,999 Inventory 129,352 112,312 Trade & other
Slide 38: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED Six months ended 30 June €’000 2021 2022 Numerator Rolling 12 months operating profit 46,616 Adjustment for exceptional costs 15,508 Amortisation of acquisition related intangibles 2,813 Adjusted 12 months operating profit 64,937 Denominator Total equity 217,697 263,569 Ne
Slide 39: Summary Group Financial Information
SUMMARY GROUP FINANCIAL INFORMATION Six months ended 30 June €’000 2022 2021 Reported % Growth Revenue 991,831 964,867 3% Gross profit 146,135 134,290 9% Overheads & operating income1 (101,200) (93,152) 9% EBITDA 44,935 41,138 9% Depreciation & amortisation (14,073) (12,849) 10% Exceptional items (5
Slide 40: EBITDA Reconciliation
EBITDA RECONCILIATION EBITDA is earnings before interest, tax, depreciation, amortisation and exceptional items. Year ended 30 June (€’000) 2022 2021 Operating profit pre exceptional 30,862 28,289 Depreciation 11,497 10,860 Amortisation 2,576 1,989 EBITDA 44,935 41,138 uniphar.ie 40