Paragon Care Limited · ASX:PGC
Paragon Care — FY2021 Earnings Presentation
23 slides from Paragon Care's earnings presentation, Aug 27, 2021
Slide 1: FY21 Financial Results Investor Presentation
FY21 FINANCIAL RESULTS INVESTOR PRESENTATION 27 AUGUST 2021 Paragon Care Limited ASX : PGC
Slide 2: Leading provider of medical supplies in Aus & NZ
PARAGON CARE 2 LEADING PROVIDER OF MEDICAL SUPPLIES IN AUS & NZ Sales & Marketing Regulatory Approvals Established long-term Supplying majority of relationships with over 100 Service Maintenance hospitals and healthcare manufacturers around the facilities in Australia & New world Zealand Logistics C
Slide 3: Established relationships across healthcare
PARAGON CARE 3 ESTABLISHED RELATIONSHIPS ACROSS HEALTHCARE GLOBAL MANUFACTURERS AUS & NZ CUSTOMERS Paragon Care Limited (ASX:PGC) 3
Slide 4: Diversified product offering
PARAGON CARE 4 DIVERSIFIED PRODUCT OFFERING DEVICES DIAGNOSTICS CAPITAL & SERVICE & CONSUMABLES TECHNOLOGY MANAGEMENT EYE CARE BLOOD BANK UROLOGY, CRITICAL CARE REPORTING ORTHOPAEDICS LABORATORY NEONATAL, RADIOLOGY MAINTENANCE 36% 11% 45% 8% FY21 rev FY21 rev FY21 rev FY21 rev Paragon Care Limited (
Slide 5: Financial overview
5 FY21 COMPANY OUTLOOK FINANCIAL OVERVIEW RESULTS Paragon Care Limited (ASX:PGC) 5
Slide 6: FY21 results: key highlights
PARAGON CARE 6 FY21 RESULTS: KEY HIGHLIGHTS Revenue NPAT DPS $236m $8.3m 1.0cps ↑ 2% on pcp Diversified revenue streams Represents EPS of 2.45cps Fully franked final in product and geography dividend declared EBITDA Net Debt OPCF $26.5m $69.1m $27.5m ↑16% on pcp* ↓ 7% on pcp ↑ 419% on pcp Improved m
Slide 7: FY21 profit & loss from continuing operations
PARAGON CARE 7 FY21 PROFIT & LOSS FROM CONTINUING OPERATIONS SOLID PROFIT PERFORMANCE FY21 FY20 CHANGE 30 Jun 2021 30 Jun 2020 $m $m $m % Key Highlights Revenue 235.8 231.7 4.1 1.8% • Increase in EBITDA of 17% to $26.5m Cost of sales (145.5) (144.9) 0.7 0.5% • Positive NPAT of $8.3m, representing EP
Slide 8: FY21 balance sheet highlight
PARAGON CARE 8 FY21 BALANCE SHEET HIGHLIGHT STRENGTHENED FINANCIAL POSITION FY21 FY20 CHANGE 30 Jun 2021 30 Jun 2020 $m $m $m % Cash 33.2 24.5 8.7 35% Receivables 26.2 31.6 (5.4) (19)% Key Highlights Inventories 51.6 46.7 4.9 11% • Strengthened financial position driven by improved PPE 7.5 7.2 0.3 4
Slide 9: FY21 cash flow
PARAGON CARE 9 FY21 CASH FLOW BOOST TO OPERATING CASH FLOW FY21 FY20 CHANGE Key Highlights 30 Jun 2021 30 Jun 2020 $m $m $m % • Significant improvement in operating cash flow to Net cash from operating activities 27.5 5.3 22.2 419% $27.5m, up 419% on pcp Net cash used in investing activities (18.8)
Slide 10: Revenue stability: diversified offering
PARAGON CARE 10 REVENUE STABILITY: DIVERSIFIED OFFERING FY21 Diversified portfolio generated revenue stability DEVICES $85.8m 15% • Devices: Continued growth in eye care DIAGNOSTICS $25.9m 11% • Diagnostics: Expansion of product range • Capital & Consumables: Stable revenue despite difficult CAP
Slide 11: 186% increase in FY21 NPAT
PARAGON CARE 11 186% INCREASE IN FY21 NPAT NPAT ($m) • Revenue growth and margin improvement in FY21, despite COVID-19 disrupted business environment • Streamlined operations driving down operating costs • Lower depreciation expense due to FY20 balance sheet clean-up and ongoing property rationalisa
Slide 12: Capital management: recommencement of fully franked dividends
PARAGON CARE 12 CAPITAL MANAGEMENT RECOMMENCEMENT OF FULLY FRANKED DIVIDENDS KEY DATES • FY21 final dividend of 1.0cps, fully franked at 30% Ex-dividend date 13 September 2021 tax rate Record date 14 September 2021 • Paragon Care has $17.7m in franking credits as at DRP election date 17 September 20
Slide 13: Company outlook
13 FY21 COMPANY OUTLOOK FINANCIAL OVERVIEW RESULTS Paragon Care Limited (ASX:PGC) 13
Slide 14: Clear competitive advantages
PARAGON CARE 14 CLEAR COMPETITIVE ADVANTAGES Deep industry expertise Well-established relationships Comprehensive sales & marketing, regulatory Long term relationships with >100 approvals expertise, service & maintenance manufacturers globally, supplying the and logistics capabilities majority of ho
Slide 15: Platform for growth
15 PARAGON CARE PLATFORM FOR GROWTH Reported RESTRUCTURE PLATFORM FOR GROWTH BY ACQUISITION GROWTH BY ACQUISITION EBITDA GROWTH ($m) (FY15 – FY18) 17 acquisitions between October 40 2014 and November 2018 30 RESTRUCTURE 20 (FY19-FY20) 10 Issues with business integration, FY20 ERP implementation and
Slide 16: A$4.4 billion market opportunity
PARAGON CARE 16 A$4.4 BILLION MARKET OPPORTUNITY Industry continues to grow, driven 7.0% by strong tailwinds 6.0% 4.0% Aging population 2.0% PGC Market Share Increasing proportion of chronic disease as a percentage of total CAPITAL AND SERVICE AND TOTAL DEVICES DIAGNOSTICS CONSUMABLES TECHNOLOGY Inc
Slide 17: Experienced board
PARAGON CARE 17 EXPERIENCED BOARD Shane Tanner Brent Stewart Geoff Sam OAM Mark Simari Paul Li Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director • Co-founder of Paragon • 25 years’ experience in • Over 35 years’ experience in • Former
Slide 18: Corporate overview
PARAGON CARE 18 CORPORATE OVERVIEW Share price (25-Aug-21) $0.275 Number of shares (m) 337.9 Market capitalisation $92.9m Cash & cash equivalents (30-Jun-21) $33.2m Interest bearing debt (30-Jun-21) $102.3m Phil Nicholl Stephen Munday Enterprise value $163.0m Chief Executive Officer Chief Financial
Slide 19: Results overview
19 FY21 COMPANY OUTLOOK FINANCIAL OVERVIEW RESULTS Paragon Care Limited (ASX:PGC) 19
Slide 20: Strategic priorities
PARAGON CARE 20 STRATEGIC PRIORITIES Focus on the customer • Securing new agencies and expanding product range • Continued focus on cross division sales collaboration to leverage pillar structure • Opportunities for growth in WA Capitalise on existing local manufacturing capability • Export opportun
Slide 21: Outlook
PARAGON CARE 21 OUTLOOK OUTLOOK – FY22 & BEYOND • Continued growth in revenue in FY22 • Continued expansion of gross profit margins • Target 15% EBITDA margins over time • Improved inventory management • Cash flow aligned with earnings • Recommence repayment of debt facilities • Dividends reinstated
Slide 22: Disclaimer
PARAGON CARE 22 DISCLAIMER Summary information This Presentation contains summary information about Paragon Care and its activities current as at 27/08/2021. The information in the Presentation is of a general nature and does not purport to be complete or comprise all information which a shareholder
Slide 23: Thank you
23 Shane Tanner Chairman P: 1 300 369 559 E: shane.tanner@paragoncare.com.au Phil Nicholl Chief Executive Officer P: 1 300 369 559 E: phil.nicholl@paragoncare.com.au THANK YOU Paragon Care Limited (ASX:PGC) 23