Slide 1: IVE Group Ltd FY18 H1 Results Presentation
IVE GROUP LTD FY18 H1 RESULTS PRESENTATION February 26, 2018 Geoff Selig - Executive Chairman Warwick Hay - Managing Director Darren Dunkley - Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS 03 Business overview 04 Highlights 07 Financials - Profit & loss - Net debt - Cash flow & dividend 11 Business update 17 Outlook statement 19 Appendices IVE GROUP LTD FY18 H1 RESULTS PRESENTATION
Slide 3: Business Overview: Unparalleled offering
BUSINESS OVERVIEW Unparalleled offering IVE is a vertically integrated marketing services and print communications provider. IVE enables its customers to communicate more effectively with A customer experience agency that helps brands their customers by creating, managing, producing and distributing
Slide 4: Highlights
HIGHLIGHTS IVE GROUP LTD FY18 H1 RESULTS PRESENTATION Page 4
Slide 5: Highlights: Solid financial performance... strong dividend stream
HIGHLIGHTS Solid financial performance... strong dividend stream Solid financial performance Shareholder returns • Sales revenue of $359M up 73% • IVE has established a sound track record of delivering a strong • Pro forma EBITDA of $38.3M up 56.9% (PCP $24.4 million) dividend stream to its sharehol
Slide 6: Highlights: All key milestones met
HIGHLIGHTS All key milestones met Key operational targets achieved • Franklin WEB Victoria and AIW merger fully complete in December, 2017 • Franklin WEB NSW greenfield site fully operational November 1, 2017 • Ordered 2nd 80 page press & ancillary equipment for Franklin WEB NSW • Blue Star DISPLAY
Slide 7: Financials
FINANCIALS IVE GROUP LTD FY18 H1 RESULTS PRESENTATION Page 7
Slide 8: Financials: Profit and loss
FINANCIALS Profit and loss • Strong revenue uplift on PCP due to a combination of organic growth PRO FORMA and the acquisitions of Franklin WEB, AIW and SEMA Actual H1 Actual H1 • Excluding Franklin WEB/AIW revenue, and the impacts of Franklin FY2018 FY2017 Variance Variance WEB outsourcing during i
Slide 9: Financials: Net debt
FINANCIALS Net debt • Net debt 1.6 x full year pro forma EBITDA guidance of Actual H1 Actual $75M (mid-point guidance) FY2018 JUNE FY2017 $M $M • Equipment finance increase due to new Franklin WEB and Blue Star WEB presses delivered and commissioned Borrowings - Short Term 16.0 12.8 during the perio
Slide 10: Financials: Cash flow & dividend
FINANCIALS Cash flow & dividend • Continued strong cash flow with pro forma free PRO FORMA STATUTORY cash conversion of 79.4% H1 FY2018 H1 FY2018 • Increase in working capital reflecting seasonality $M $M EBITDA 38.3 36.2 • Interim dividend of 8 cents per share, fully franked with payout ratio of 68
Slide 11: Business Update
BUSINESS UPDATE IVE GROUP LTD FY18 H1 RESULTS PRESENTATION Page 11
Slide 12: Franklin WEB Victoria and AIW merger fully complete
BUSINESS UPDATE Franklin WEB Victoria and AIW merger fully complete Franklin WEB Victoria site expansion complete AIW site ceased production on 17th December 2017 • All major AIW equipment relocations complete • All obsolete/excess AIW equipment retired • The site produced 23% more volume than the p
Slide 13: Franklin WEB NSW - site fully operational ahead of time
BUSINESS UPDATE Franklin WEB NSW - site fully operational ahead of time • To support significant revenue growth and to re-balance capacity between NSW and Victoria to further enhance our ability to service national retailers, $50M has been invested (including capital expenditure of $22M funded by Au
Slide 14: Blue Star DISPLAY Victoria merger with Franklin WEB's retail display business
BUSINESS UPDATE Blue Star DISPLAY Victoria merger with Franklin WEB’s retail display business and further expansion complete • Significant investment to provide more capacity/capability to better service national retailers was completed, with the Blue Star DISPLAY Victorian site fully operational on
Slide 15: Update - $55.6 million capital raising (August 2017)
BUSINESS UPDATE Update - $55.6 million capital raising (August 2017) SEMA acquisition, integration and expansion ($19.6M) Capacity for future accretive bolt-on acquisitions and • Acquisition completed on the 6th September 2017 balance sheet flexibility ($11.2M) • SEMA customers have been very suppor
Slide 16: Final stage of Franklin WEB NSW greenfield operation on track
BUSINESS UPDATE Final stage of Franklin WEB NSW greenfield operation on track Capital expenditure ($22M) for final stage of Franklin WEB NSW greenfield operation in line with August 2017 capital raising • 2nd 80 page large format web offset press — Press ordered in September 2017 for commissioning e
Slide 17: Outlook Statement
OUTLOOK STATEMENT IVE GROUP LTD FY18 H1 RESULTS PRESENTATION Page 17
Slide 18: Reaffirming FY18 full year guidance
OUTLOOK STATEMENT Reaffirming FY18 full year guidance • Full year FY18 pro forma EBITDA expected to be $72 - 77M including contribution from SEMA • Consistent with previous guidance, restructure costs (excluding SEMA) expected to be $2.5 - 3.5M • SEMA relocation and restructure costs of $4.5M (in li
Slide 19: Appendices
APPENDICES IVE GROUP LTD FY18 H1 RESULTS PRESENTATION Page 19
Slide 20: 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 non-IFRS financial information relates to H1 FY2018 results presented before the impacts of al
Slide 21: Appendix B: Balance sheet, statutory to pro forma reconciliation
STATUTORY Actual Actual APPENDIX B CURRENT ASSETS December 2017 $’M June 2017 $’M Balance sheet, statutory to Cash and cash equivalents 22.4 23.8 pro forma reconciliation Trade receivables, prepayments and others 129.2 101.4 Current tax receivable 2.6 3.0 Inventories 42.0 46.5 Total Current Assets 1
Slide 22: Appendix C: Disclaimer
APPENDIX C Disclaimer No recommendation, offer, invitation or advice disseminate any updates or revisions to this information over time. Any forward-looking statements, This presentation contains general information about the activities of IVE Group Limited (IVE) which including projections, guidanc
Slide 23: IVE GROUP LTD FY18 H1 RESULTS PRESENTATION
IVE GROUP LTD FY18 H1 RESULTS PRESENTATION 406753/0218