Slide 1: Enabling Healthcare: H1'23 Preliminary Results Presentation
Enabling Healthcare H1’23 Preliminary Results Presentation
Slide 2: Important Notice
Important Notice This presentation has been prepared solely in connection with the financial results of Uniphar plc (the "Company") Except where otherwise indicated herein, the information provided in this presentation is based on matters as they for the period ended 30 June 2023 and should be read
Slide 3: Agenda
Agenda 1. Overview & Highlights Presenters 2. Financial Review Ger Rabbette 3. Updated Medium-Term Guidance Chief Executive Officer 4. Capital Allocation & Investment Case Tim Dolphin Chief Financial Officer 5. Q&A Brian O'Shaughnessy Chief Commercial Officer uniphar.ie 3
Slide 4: Overview & Highlights
Overview & Highlights uniphar.ie 4
Slide 5: Uniphar at a glance / Divisional Gross Profit
Uniphar at a glance Divisional Gross Profit A diversified international healthcare Strong performance across all divisions with Supply Chain services provider & Retail outperforming medium-term divisional guidance Supporting 200 multinational H1’23 200 pharmaceutical and Medtech manufacturers across
Slide 6: Continued growth across all divisions
Continued growth across all divisions Highlights – H1’23 Delivering Strong financial Robust capital Investment in Continued M&A New medium-term on expectations performance structure strategic capex Execution & target of €200m projects Integration EBITDA • Leveraging scale and • Growth in gross profi
Slide 7: Sustainability Highlights
Sustainability Highlights Sustainability is at the core of what we do and is deeply embedded in our business strategy Continued progress against our five pillars 1 2 3 4 5 People Governance Quality Environment Business Solutions Community & Workplace & Compliance & Sustainability & Innovation Involv
Slide 8: Financial Review
Financial Review uniphar.ie 8
Slide 9: Financial Highlights
Financial Highlights % Growth Gross profit growth Constant across all three divisions (€m) H1’23 H1’22 Reported Organic 2 currency1 28.6% Revenue 1,239.6 991.8 25.0% 25.3% Gross profit 188.0 146.1 28.6% 29.4% 5.5% Strong overall EBITDA growth Gross profit margin 15.2% 14.7% 13.8% EBITDA 51.1 44.9 13
Slide 10: Divisional Gross Profit
Divisional Gross Profit Diversified healthcare services business Divisional Composition focused on higher margin opportunities Organic H1’23 H1’22 Growth Growth 47% €’m €’m % % H1’23 Commercial & Clinical €188.0m Commercial 62.0 58.5 6.0% 1.0% Gross Margin GP & Clinical 40.1% 20% 33% Product Access
Slide 11: Net Bank Debt Analysis
Net Bank Debt1 Analysis FCF Conversion & Leverage > Balance sheet provides significant financial flexibility to execute strategy €178m Net bank debt at 30 June 2023 €13.2m Free cashflow (FCF %: 25.9%) FCF impacted by timing differences, adjusted FCF We target FCF1 conversion of % for these differenc
Slide 12: FCF Conversion & Leverage, Normalised FCF
FCF Conversion & Leverage Normalised FCF Medium term Free Cashflow (FCF) H1’23 H1’23 Adj €’m Reported Normal. Target EBITDA 60% - 70% 51.1 0.0 51.1 Net Working Capital (34.3) 21.5 (12.8) Capital Expenditure (3.6) 0.0 (3.6) We target FCF1 Normalised FCF Reported free conversion of of 67.8% after cash
Slide 13: Updated Medium-Term Guidance
Updated Medium-Term Guidance uniphar.ie 13
Slide 14: Delivered on IPO commitments
Delivered on IPO commitments EBITDA has doubled (€m)1,2 Consistent margin improvement (%) 3 94 Gross margin EBITDA margin 19% 14.8% 4.7% 14.1% 4.5% CAGR 11.9% 10.8% 3.5% 3.7% 46 2018 pf 2019 2020 2021 2022 Jan 2023 pf (TTM) 2019 2020 2021 2022 2019 2020 2021 2022 Double digit adjusted EPS growth (€
Slide 15: Delivered on IPO commitments (cont'd)
Delivered on IPO commitments (cont’d) Double Group EBITDA over the 5-year period (2018pf - 2023)1 Maintain market leadership in the Supply Chain & Retail Division 94 Supply Chain market share Retail pharmacy network 53% 423 46 287 50% 2018 pf EBITDA Organic M&A Jan 2023 pf EBITDA 2019 H1 2023 2019 H
Slide 16: Ambition to deliver €200m EBITDA over the medium term
Ambition to deliver €200m EBITDA over the medium term We expect the majority of EBITDA growth to be organic Group guidance | medium term metrics 200 ROCE FCF Dividend Conversion 98 12% - 15% 60% - 70% Dividend Net Bank Debt / EBITDA not to exceed 2022 Organic M&A Medium EBITDA term EBITDA Progressiv
Slide 17: New divisional structure aligned to customers & growth ambitions
New divisional structure aligned to customers & growth ambitions Current divisions New divisions to be reported from FY23 Supply Chain & Retail Commercial & Clinical Medtech Commercial & Clinical Pharma Product Access uniphar.ie 17
Slide 18: Divisional strategic objectives
Divisional strategic objectives Organic Gross Profit Low-Single Digit High-Single Digit Double Digit Growth Target Gross Profit 2022 €139.0m €90.9m €76.8m Gross Profit Margin 11% 39% 18% (pro forma)1 ▪ Leverage growing leadership position in ▪ European-wide leadership in speciality ▪ Leverage our gl
Slide 19: Enabling the supply of medicines in Ireland
Enabling the supply of medicines in Ireland What we do in Uniphar Supply Chain & Retail Supply chain market share Market leadership across Supply Chain & Retail ▪ Leading pharma wholesaler in Ireland with c.53% market share 53% 53% 50% 51% ▪ Retail pharmacy network in Ireland now 423 members 1 Marke
Slide 20: Enabling patient access to specialist medtech
Enabling patient access to specialist medtech What we do in Uniphar Medtech Medium term expansion into southern & central Europe Scaling our Pan-European platform Direct presence ▪ A leading Pan-European medical device distributor and solutions partner, Present through agency model representing 6 of
Slide 21: Enabling equitable access to medicines worldwide
Enabling equitable access to medicines worldwide What we do in Uniphar Pharma Growing range of capabilities Providing access to specialist and difficult to source medicines ▪ We enable pharma and biotech manufacturers to bring innovative medicines to At IPO Developed in-house Partnered global market
Slide 22: Trusted experts across the product life cycle
Trusted experts across the product life cycle Pre-clinical Clinical Pre-approval Pre-reimbursement Post-reimbursement Off patent Clinical development Product approval Market access Consulting Exclusive access Sales & marketing Licensing On Demand / Global Access Reg & PV Medical Affairs End to end s
Slide 23: Capital Allocation & Investment Case
Capital Allocation & Investment Case uniphar.ie 23
Slide 24: Capital Allocation
Capital Allocation Disciplined & balanced investment approach nt Gro Organic Investment t me wt M&A es h v T • Continue to invest in infrastructure, • Fundamental component of In hr ou ic digital platforms, strategic capex and compounding growth strategy an gh talent to drive organic growth in line
Slide 25: Technology investment critical to delivering on our strategic ambitions
Technology investment critical to delivering on our strategic ambitions Technology is the Our approach key enabler We’ve always leveraged technology to drive our business forward Strong track record of successful implementation Scaling our Cloud first approach Non live Security & Cyber platforms Sca
Slide 26: Investment Case
Investment Case Strong track record Experienced Compelling market senior team, opportunity in tried and tested all 3 divisions €200m EBITDA ambition Greater capabilities Each division = bigger has an attractive opportunities competitive moat At the next inflection point uniphar.ie 26
Slide 27: Q&A
Q&A uniphar.ie 27
Slide 28: Contact Details
Contact Details Allan Smylie Head of Strategy and Investor Relations +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 Uniphar.ie
Slide 29: Thank You
Thank You uniphar.ie 29
Slide 30: Appendices
Appendices uniphar.ie | 30
Slide 31: Commercial & Clinical
Commercial & Clinical Sales, marketing and distribution solutions Building a pan-European service offering to for manufacturers support our Medtech and Pharma partners Revenue Gross Profit Gross Profit Financials €154.8m €62.0m H1'22 Reported Organic H1'23 Gross Profit Growth 6% 1.0% €m €15m €30m €4
Slide 32: Product Access
Product Access Providing access to unlicensed and speciality Platform in place to become a global leader in medicines globally the provision of On Demand and Exclusive Access services Revenue Gross Profit Gross Profit Financials €253.1m €37.8m H1'22 Reported Organic Gross Profit H1'23 Growth 73% 8.5
Slide 33: Supply Chain & Retail
Supply Chain & Retail Market leader in Irish wholesale and hospital Longstanding manufacturer relationships, market. Supported by a network of 423 scalable digital infrastructure & continued pharmacies.(1) investment in high-tech distribution facilities Revenue Gross Profit Uniphar Volume Growth vs
Slide 34: Strategic acquisitions
Strategic acquisitions Transformational Acquisitions Strong M&A discipline within the Group complements continued organic growth focus 2013 2018 2019 Acquisition Pipeline Criteria » Strategic alignment in identified growth segments Strategic Acquisitions » Retention of management talent and expertis
Slide 35: Uniphar History
Uniphar History Establishing our platform Uniphar’s Heritage Design New Vision Build Differentiated Capabilities Internationalise and Scale 1967 2019 2019 2021 2023 United Pharmaceuticals 2010 IPO Acquisitions Acquisitions Acquisitions Co-Op Founded New senior management team appointed 1972 (led by
Slide 36: Summary Management Balance Sheet
Summary Management Balance Sheet 1 Balance Sheet (€’000) 30 Jun 2023 31 Dec 2022 Goodwill and acquired intangible assets 534,616 495,491 IFRS 16 Right of Use Asset 124,702 112,126 Other non-current assets 97,726 76,005 Total non-current assets 757,044 683,622 Inventory 175,472 157,656 Trade & other
Slide 37: Banking Facilities and Liquidity
Liquidity Banking Facilities 30 June 2023 €’m Facilities €’m Cash & Cash equivalents 55.7 Committed 400 Add’l Uncommitted 150 Bank Borrowings (233.7) Total ex Overdraft 550 Net Bank Debt (178.0) Leverage Covenant of 3.5x Strong liquidity at period end Additional liquidity through cash conversion Lev
Slide 38: Return on Capital Employed
Return on Capital Employed 12- Month Rolling 30 June €’000 H1’21 H1’22 H1’23 Numerator Rolling 12 months operating profit 46,616 56,084 Adjustment for exceptional costs 15,508 16,694 Amortisation of acquisition related intangibles 2,813 2,921 Adjusted 12 months operating profit 64,937 75,699 Denomin
Slide 39: Summary Group Financial Information
Summary Group Financial Information Reported Six months ended 30 June €’000s H1’23 H1’22 % Growth Revenue 1,239,582 991,831 25.0% Gross profit 187,992 146,135 28.6% Overheads & operating income1 (136,866) (101,200) 35.2% EBITDA 51,126 44,935 13.8% Depreciation & amortisation (17,057) (14,073) 21.2%
Slide 40: EBITDA Reconciliation
EBITDA Reconciliation EBITDA is earnings before interest, tax, depreciation, amortisation and exceptional items. YTD Ended 30 June (€’000) H1’23 H1’22 Operating profit pre-exceptional 34,069 30,862 Depreciation 13,816 11,497 Amortisation 3,241 2,576 EBITDA 51,126 44,935 uniphar.ie 40
Slide 41: M&A Continued Execution in 2023
M&A Continued Execution in 2023 Integration of 2022 Acquisitions Jan’23 Aug’23 Aug’22 Sep’22 Nov‘22 Leading independent Acquired certain assets of APAC hub for On Demand Highly innovative medical Continental Europe hub for pharmacy chain, market- Pivot Health Digital, a and EAP business; device and