Slide 1: FY20 Results Presentation
IVE Group Limited FY20 Results Presentation ASX : IGL 25 August 2020
Slide 2: Business overview
Business overview Founded in 1921, IVE is Australia’s leading holistic marketing company. With an unmatched breadth and depth of offering, we guide our clients from idea Year in review to execution. 6 Our landscape is constantly shifting > Financial and evolving, and as marketing natives performance
Slide 3: From idea to execution
| \ From idea to execution
Slide 4: We are forever seeking new ways to navigate the marketing maze
We are forever seeking new ways to navigate the marketing maze
Slide 5: Our Integrated Service Offering
Our Integrated Service Offering Creative Services > Visual > Motion > Digital > Personalised > Structural (3D) Data-Driven Communications > CX data & insights > Marketing technology > Omni-channel deployment > Retrieval & enrichment > Tele-fundraising Production & Distribution > Print > Retail displ
Slide 6: Year in review
Year in review 6 IVE Group Limited FY20 Results Presentation
Slide 7: Financial performance dashboard
Financial performance dashboard (underlying continuing and pre AASB16) REVENUE EBITDA EBITDA MARGIN NPATA $691.5M d $76.6M 11.1% $36.7M FREE CASH GROSS PROFIT CONVERSION TO NET DEBT CASH ON HAND MARGIN $137.1M $51.6M EBITDA OF CONSISTENT WITH FY19 FULL YEAR 110% — NPAT excluding amortisation of cust
Slide 8: Sector and client spread
Sector and client spread IVE enjoys long standing relationships with a tier 1 client base. The table below provides a snapshot of our revenue by sector for the year ended June 2020. Revenue Sector Analysis $M % Retail: White goods, electronics, furniture, clothing 142.3 20.6 Supermarkets 86.6 12.5 H
Slide 9: Our Clients
Our Clients 9 IVE Group Limited FY20 Results Presentation
Slide 10: Acquisition of Salmat Marketing Solutions, Reach Media and Lasoo
Acquisition of Salmat Marketing Solutions, Reach Media and Lasoo The acquisition of Salmat Marketing Solutions (now IVE Distribution), Lasoo and Reach Media New Zealand was completed on 1 January, 2020 for a purchase consideration of $25.4 million. The acquisitions were fully debt funded and at the
Slide 11: Business and brand simplification
Business and brand simplification In November 2019 the Group ceased going to market under 4 divisional brands (Kalido, Blue Star, Pareto, IVEO). The evolution to one IVE brand with 4 core offerings (Creative, Data-Driven Communications, Integrated Marketing, Production & Distribution) is in recognit
Slide 12: COVID-19 response and impacts
COVID-19 response and impacts IVE entered this crisis in a position of strength, with the Company responding very well to the unprecedented and volatile operating environment. IVE remains well capitalised, highly liquid, and confident that we are well placed to maintain our strong market position as
Slide 13: Health and safety of our staff
Health and safety of our staff > driven by the Business Leadership Team, regular meetings were held to ensure a Pandemic Plan was established and enacted for each site, in conjunction with a review of site failover and recovery plans in the event a site needed to be shut down for cleaning. This iden
Slide 14: Customers and revenue
Customers and revenue IVE continues to benefit from its diversified value proposition and a loyal, strong and diversified customer base. Across the 4 key retail sectors (retailing, supermarkets, health & personal products, food & beverage), IVE delivers a broad range of products and services - these
Slide 15: Operational
Operational As communicated in our market update on 23 March, 2020, the Company executed a range of initiatives to mitigate the financial impacts of COVID whilst still ensuring high levels of customer service. Flexibility across the cost base The flexibility of the Company’s cost base has been core
Slide 16: Acquisition integration, redundancies and supply chain
• The Group completed the acquisition of Salmat Marketing Solutions (now IVE Distribution) and Reach Media NZ in early January 2020. In response to the revenue impacts as a result of the COVID-19 crisis, we moved quickly to accelerate a comprehensive integration and business simplification plan that
Slide 17: Financial results
Financial results 17 IVE Group Limited FY20 Results Presentation
Slide 18: Profit and loss
Profit and loss IFRS and Underlying Pre AASB16 Post AASB16 Actual Actual Actual Variance Variance FY2020 FY2019 FY2020 $M % $M $M $M Revenue 691.5 723.6 -32.1 -4.4% 691.5 Gross Profit 329.6 346.6 -17.0 -4.9% 326.8 % of Revenue 47.7% 47.9% -0.5% 47.3% Underlying EBITDA continuing operations 76.6 82.0
Slide 19: Profit and loss (continued)
Profit and loss (continued) Revenue decrease of ($32.1M) (4.4% decrease on PCP) EBITDA > FY20 H2 revenue includes $50.0M revenue from Salmat/Reach acquisitions > $76.6M EBITDA > Softer revenue for retail clients in Q1-Q3 with Q4 heavily impacted by COVID-19 > EBITDA margin 11.1% reduction > EBITDA m
Slide 20: Capital expenditure
Capital expenditure $M Group wide targeted investment and maintenance 8.7 Group wide MIS upgrades 3.6 12.3 The Company’s operational footprint is in excellent shape as a result of its substantial investment program over the last 5 years. > H1 FY20 capital expenditure was $6.3M excluding MIS/ERP upgr
Slide 21: Net debt
Net debt FY2020 FY2019 Actual $M Actual $M Loans & borrowings – short term 6.9 6.3 Loans & borrowings – long term 181.8 168.9 Loans & borrowings* – Sub Total 188.7 175.2 Cash -51.6 -31.5 Net Debt 137.1 143.7 * Loans & borrowings are gross of facility establishment costs * Excludes right of use liabi
Slide 22: Cash flow and dividend
Cash flow and dividend During the period the Group managed its working capital closely resulting in free Underlying IFRS cash flow conversion of 110% to EBITDA on an underlying basis. FY2020 FY2020 $M $M On 3 March, 2020 IVE announced the cancelation of the H1 FY20 interim dividend EBITDA 76.6 63.9
Slide 23: Outlook
Outlook 23 IVE Group Limited FY20 Results Presentation
Slide 24: FY21 Guidance
FY21 Guidance > Full year FY21 underlying EBITDA expected to be consistent with FY20*. > Margins expected to remain stable over FY21. > Forecast net debt at 30 June 2021 of approximately $110M. > Capital expenditure for FY21 of $10M, including MIS/ERP upgrades. > The Company does not expect to quali
Slide 25: Appendices
Appendices 25 IVE Group Limited FY20 Results Presentation
Slide 26: 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 adoption of AASB16, restructuring and acquisitions c
Slide 27: Appendix B
Appendix B IVE Group Limited Balance Sheet IFRS to underlying NPAT reconciliation Post AASB16 AASB16 Pre AASB16 Pre AASB16 Pre AASB16 Post AASB16 Actual Impact Actual Actual Actual FY2020 FY2020 Jun-20 $M Jun-20 $M Jun-20 $M Jun-19 $M $M $M Current Assets IFRS NPAT (loss) continuing -18.4 -18.4 Cash
Slide 28: Appendix C: Disclaimer
Appendix C Disclaimer No recommendation, offer, Disclaimer disseminate any updates or revisions to this looking statements in this presentation invitation or advice information over time. Any forward-looking will actually occur. In addition, please note No representation or warranty, express stateme
Slide 29: IVE Group Limited
IVE Group Limited ABN 62 606 252 644 Level 3, 35 Clarence Street Sydney NSW 2000 Geoff Selig Executive Chairman Matt Aitken Chief Executive Officer Darren Dunkley Chief Financial Officer ivegroup.com.au Authorised by the IVE Board Contact: Richard Nelson Investor Relations richard.nelson@ivegroup.co