Paragon Care Limited · ASX:PGC
Paragon Care — FY2023 Earnings Presentation
24 slides from Paragon Care's earnings presentation, Aug 30, 2023
Slide 1: FY23 Results
FY23 Results INVESTOR PRESENTATION 30 August 2023 ASX : PGC
Slide 2: Disclaimer
Disclaimer Summary information This Presentation contains summary information about Paragon Care and its activities current as at 29/08/2023. The information in the Presentation is of a general nature and does not purport to be complete or comprise all information which a shareholder or potential in
Slide 3: Overview
Mark Hooper Group CEO & Managing Director Overview 3 FY23 Results
Slide 4: Positive progress continues with FY23 result
Positive progress continues with FY23 result • Revenue* of $308m vs $238m for FY22 29% Sales revenue* • Mainly reflects the inclusion of Quantum and SMS • Underlying EBITDA** of $38.4m vs $28.4m in FY22 35% Underlying EBITDA** • • Mainly reflects the inclusion of Quantum and SMS Like for like organi
Slide 5: All targeted outcomes delivered
All targeted outcomes delivered TARGET PROGRESS TO DATE / OUTCOME Key financial • Underlying EBITDA • Stronger growth due to • Like for like organic growth of 10% Underlying EBITDA growth metrics of 30% for FY23 growth of 35% removal of Lovell results Net Debt expected to reduce • Net Debt at June 2
Slide 6: Financial Results
Josephine De Martino Group Chief Financial Officer Financial Results 6 FY23 Results
Slide 7: FY23 Profit and Loss
FY23 Profit and Loss Key highlights FY23 FY22 CHANGE $m $m $m % • Underlying EBITDA* increased by 35% in Revenue 307 .6 237 .6 7 0.0 29% FY23 mainly reflecting the inclusion of SMS and Quantum. Cost of sales -181.3 -138.6 -42.7 31% • Despite higher capital sales, margins still Gross margin 126.3 99.
Slide 8: FY23 results: positive progress across all pillars
FY23 results: positive progress across all pillars Underlying • Successful transition of SMS into pillar with strong sales and cross selling opportunities. Revenue* EBITDA** ROIC *** • A positive year elsewhere but some underperformance in pathology consumables and Diagnostic lower VTM sales (COVID
Slide 9: FY23 Cash Flow
FY23 Cash Flow Key highlights • Net Debt* of $63.7m decreased by $6m since December 2022, but is a $13.7m increase over June 2022. FY23 FY22 CHANGE $m $m $m % • The year-to-year movement mainly reflects the cash portion of the SMS acquisition ($11.8m). Net cash from operating activities 17.8 19.0 -1
Slide 10: Capital management
Capital management Key highlights Dividends Dividend – Key Dates • Final FY23 dividend declared of 0.6cps, fully franked Release date Wednesday 30 August 2023 • This represents a 43% payout ratio of Underlying NPAT* DRP election date Monday 18 September 2023 • DRP reinstated to support additional ca
Slide 11: Strategy and Growth
Mark Hooper Group CEO & Managing Director Strategy and Growth 11 FY23 Results
Slide 12: 'The Light on the Hill' remains our goal
‘The Light on the Hill’ remains our goal • • • • 12 FY23 Results
Slide 13: Leveraging a unique distribution and manufacturing footprint
Leveraging a unique distribution and manufacturing footprint for medium term growth • A strong market position in • Strong volume growth in • Core growth should be circa • Staged integration that builds Australia with medium term Orthopaedics likely to 5%-10% per annum off the existing Quantum / gro
Slide 14: IVD market growth supports the Immulab opportunity
IVD market growth supports the Immulab manufacturing opportunity • In-Vitro Diagnostics (IVD) market > Global market estimated to be US$95 billion in 20231 (Australia US$1.3 billion) Global IVD Market1 > Estimated to grow to US$119 billion by 20301 > Significant opportunity driven by demand for well
Slide 15: Immulab Growth Drivers – Critical Milestones
Immulab Growth Drivers – Critical Milestones • Export the Immulab Range of finished products to targeted and emerging international markets Critical milestone – completion of detailed market assessment by December 2023 / initial entry to targeted markets by mid 2024 (subject to regulatory requiremen
Slide 16: New Mount Waverley facility will support the Immulab opportunity
New Mount Waverley facility will support the Immulab export opportunity • Commissioned to support an uplift in Immulab manufacturing capacity and to facilitate consolidation of all Victorian operations onto one site • Mount Waverley is a cornerstone investment for the ParagonCare Group to support lo
Slide 17: A comprehensive distribution solution for global suppliers
A comprehensive distribution solution for global suppliers (OEMs) Addressing challenges for global suppliers ParagonCare’s customer base • Local Market Knowledge Asia Pacific • Business Scale Differences Footprint Clinical • Transparency & Trust • Aged Care • Regulatory Complexity / Compliance • Ana
Slide 18: Benefits for all stakeholders
Benefits for all stakeholders Global suppliers & ParagonCare’s customers • Aggregated solution across Asia • Unique proposition that covers > equipment / device sales and installation > supply of supporting consumables > comprehensive service and maintenance capability From a ParagonCare perspective
Slide 19: Building blocks to $100m EBITDA by FY27
Building blocks to $100m EBITDA by FY27 FY24 FY25 FY26 FY27 Immulab export of finished product Immulab contract manufacturing Media manufacturing Increased growth in elective surgery Rebuild Pain portfolio New market segments in Orthopaedic and Ophthalmics Key strategic initiatives – 2 in AU / 2 in
Slide 20: A positive growth outlook remains
A positive growth outlook remains Earnings outlook • Expecting further organic growth in FY24 that will accelerate in FY25 • Further commentary to be provided at the AGM in November 2023 • Targeting EBITDA of $100m by FY27 through a combination of organic growth and M&A Growth underpinned by • Uniqu
Slide 21: Thank you
Thank you ParagenCare
Slide 22: Appendices
Appendices 3 Results ParagenCare
Slide 23: Appendix 1 | Reconciliation from Reported to Underlying Results
Appendix 1 | Reconciliation from Reported to Underlying Results From Continuing Opera tions FY23 FY22 CHANGE FY23 FY22 CHANGE $m $m % $m $m % Reported E BITDA 38.2 24.0 59% Reported NPAT 13.6 6.9 96% Normalisations Basic EPS: (cps) 1.64 1.41 16% Diluted EPS: (cps) 1.61 1.38 16% Share-Based Payments
Slide 24: Appendix 2 | FY23 Balance Sheet movements
Appendix 2 | FY23 Balance Sheet movements Commentary FY23 FY22 CHANGE • Net Debt* (Borrowings less Cash and Cash Equivalents) $m $m $m % decreased $6m since December 2022 and a $13.7m increase Cash 22.6 46.2 -23.6 -51.1% over June 2022. Receivables 39.4 42.9 -3.5 -8.1% Inventories 63.7 51.5 12.2 23.