Paragon Care Limited · ASX:PGC
Paragon Care — FY2018 Earnings Presentation
26 slides from Paragon Care's earnings presentation, Aug 27, 2018
Slide 1: Full Year Results Presentation FY18
Full Year Results Presentation FY18 27 August 2018 | ASX:PGC
Slide 2: Agenda
1. Executive Summary 2. Paragon Strategy and Vision 3. FY18 Financial Results 4. FY19 Focus Areas Paragon Care Limited (ASX:PGC) 2
Slide 3: Executive summary
Executive summary FY18 highlights – a transformational year Successful completion of 9 acquisitions, resulting in a stronger, more diversified business Now a $238m revenue and $30m EBITDA business (FY18 pro forma) New senior team in place FY18 revenue of $136.7m and underlying EBITDA of $19.
Slide 4: FY18 was a transformational year for Paragon
FY18 was a transformational year for Paragon Significant step change in revenue Paragon is building a people and Executing on a tightened strategy and EBITDA infrastructure platform to support and vision Successful completion of 9 a $1bn revenue business New CEO in place with multiple acquisitio
Slide 5: FY18 acquisitions create a more balanced business
FY18 acquisitions create a more balanced business Pre FY18 Post FY18 Capital & Services & Capital & Services & Devices Diagnostics Devices Diagnostics Consumables Technology Consumables Technology Australia Australia (national) (national) VIC VIC NSW NSW QLD QLD WA WA SA SA NZ NZ Purchasing compleme
Slide 6: FY18 results highlights
FY18 results highlights Revenue Net profit after tax Operating cash flow $136.7m $10.9m $7.6m 2017: $117.2m up 17% 2017: $10.2m up 7% 2017: $12.0m Gross profit Earnings per share Cash balance $54.9m 5.4c $40.4m 2017: $46.1m up 19% 2017: 6.2c FY18pf: 6.6c 2017: $18.6m EBITDA Dividend per share Net De
Slide 7: FY19 guidance
FY19 guidance Clear plan supporting FY19 guidance Revenue ($m) 260 238 Restructure of sales team and enhanced IT infrastructure to strengthen organic growth 137 Optimisation of capital and consumables mix 117 93 Momentum building with a record revenue performance in July 2018 32 FY15A FY16A FY
Slide 8: Agenda
1. Executive Summary 2. Paragon Strategy and Vision 3. FY18 Financial Results 4. FY19 Focus Areas Paragon Care Limited (ASX:PGC) 8
Slide 9: Market opportunity in Australia and NZ is $9bn p.a. and growing
Market opportunity in Australia and NZ is $9bn p.a. and growing Significant opportunity to increase market share in an attractive and growing market $193bn p.a Total healthcare spend in Total healthcare spend in $193bn p.a ~5% Australia and New Zealand Australia and New Total sector Total sector wor
Slide 10: Executing on a tightened strategy and vision
Executing on a tightened strategy and vision Mission To simplify and improve our customers’ work, thereby contributing to patient care To be Australia and New Zealand’s leading supplier of healthcare equipment and integrated Vision services We are creating a healthcare platform with a broad range of
Slide 11: Platform economics create a virtuous cycle
Platform economics create a virtuous cycle More products and services… …sold via one platform… …to more customers Speciality Devices Medical Specialists Speciality Diagnostics Ability to adjust product range to Acute Care suit customer needs Capital & Consumables Aged & Primary Care Significant cost
Slide 12: Multiple drivers of organic growth
Multiple drivers of organic growth Paragon is investing in a scalable business platform to leverage opportunities to drive organic growth Investing into best-in-class sales Developing IT infrastructure and management team architecture (e.g. ERP, CRM, EDI Growing sales representative team syste
Slide 13: FY18 acquisitions significantly strengthen Paragon's platform
FY18 acquisitions significantly strengthen Paragon’s platform 9 acquisitions successfully completed, strengthening and transforming Paragon’s platform of products and services 1 2 3 Current Expansion into Geographical platform additions new areas of demand expansion Leading independent Leading immun
Slide 14: Agenda
1. Executive Summary 2. Paragon Strategy and Vision 3. FY18 Financial Results 4. FY19 Focus Areas Paragon Care Limited (ASX:PGC) 14
Slide 15: FY18 results summary
FY18 results summary FY18 results reflect a transformational year Financial highlights Transformational year as evidenced by the step change in both revenue and EBITDA in FY18 FY18 NPAT of $10.9m and pro forma FY18 NPAT of $18.7m FY18 EPS of 5.4cps reflects the acquisitions and recent capital
Slide 16: FY18 trading commentary
FY18 trading commentary Capital sales for FY18 primarily impacted by fewer hospital completions Capital sales in 1H18 were impacted due to undertaking FY17 projects in Bendigo and Sunshine Coast, resulting in lower hospital completions relative to the previous corresponding period Capital sales
Slide 17: Cash flow
Cash flow Operating cashflow Working capital impacted by the completion of 9 acquisitions Consequential higher receivables and inventory balances Improvement of $10.5m in operating cash flow relative to 1H18 (negative $3m balance as at 31 December 2017) Investing cash outflows related to acqui
Slide 18: Balance sheet
Balance sheet Larger balance sheet supports future growth Financial Position Extract FY18 FY17 Balance sheet Cash 40.4 18.6 Increased total asset base reflective of 9 acquisitions Inventories 55.3 21.7 Significant investments in IT infrastructure to support 45.3 Receivables 20.8 continued revenu
Slide 19: Agenda
1. Executive Summary 2. Paragon Strategy and Vision 3. FY18 Financial Results 4. FY19 Focus Areas Paragon Care Limited (ASX:PGC) 19
Slide 20: Paragon will invest for growth in FY19
Paragon will invest for growth in FY19 Investment in coverage (more feet on the street) Higher quality sales management Key focus on Systems to enable activity focus (improved company wide CRM) upskilling sales team and Cross sell program driven by general managers sales management Stronge
Slide 21: Capital equipment sales remains a key growth driver
Capital equipment sales remains a key growth driver Strategic focus on capital sales to drive growth in consumables Forecast change in revenue mix – shift towards consumables Less dependence on capital sales over time Capital sales generate complementary services and consumable sales Paragon i
Slide 22: Targeting $3m of ongoing cost saving initiatives in FY19
Targeting $3m of ongoing cost saving initiatives in FY19 Integration synergies Improved business efficiency ERP platform migration Fully allocated sales and expense management Acquisitions to be moved onto Group ERP (SAP To drive business unit accountability and margins Hana) in FY19 Sales and profi
Slide 23: Summary of FY19 focus and initiatives
Summary of FY19 focus and initiatives Expanding the revenue synergies targeting growth opportunities within the Synergies portfolio of products Platform economics Deliver organic growth objectives by investing in scalable platform for growth Boost supply chain capability to simplify customer a
Slide 24: Corporate overview
Corporate overview Highly experienced Board of Directors Financial overview Board of Directors Financial Information Shane Tanner Andrew Just (appointed 31 May 2018) Non-Executive Chairman Managing Director Share price (24-Aug-18) $0.80 Chairman of Zenitas Healthcare, Rhythm 25 years’ experience
Slide 25: Disclaimer
Disclaimer Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Paragon Care Limited’s current intentions, plans, expectations, assumptions and beliefs about future
Slide 26: Contact details
Andrew Just Shane Tanner Chief Executive Officer Chairman P: +61 400 246 666 P: +61 411 107 099 E: andrew.just@paragoncare.com.au E: shane.tanner@paragoncare.com.au Paragon Care Limited (ASX:PGC) 26