Paragon Care Limited · ASX:PGC
Paragon Care — 1H FY21 Earnings Presentation
20 slides from Paragon Care's earnings presentation, Feb 23, 2021
Slide 1: Paragon Care 1H FY21 Financial Results
aragonCare Health. Covered. 1TH FY21 FINA IAL RESULTS 23'9 February 2021
Slide 2: 1H FY21 Results: Improved Profitability and Cashflow
2 PARAGON CARE 1H FY21 Results Improved Profitability and Cashflow EBITDA OPCF Net Debt Revenue $115m $14.7m $15.5m $76.3m ↑ 63% on pcp ↑ $24m on pcp ↓ 4% on pcp ↓ 5% on pcp Diversified portfolio Streamlined operations Improved working capital cycle Obligation to comply with existing generated reven
Slide 3: Paragon Care Limited (ASX:PGC)
3 Paragon Care Limited (ASX:PGC) 3
Slide 4: Key Highlights
4 Key Highlights • Revenue was down only 5%, despite COVID disrupted healthcare market • Improved gross margins due to higher margin product mix in Q2 • Reduction in 1H operating expenses by $6.4m on pcp, which includes $3m in JobKeeper • Savings in employee expenses (excluding JobKeeper), marketing
Slide 5: Key Highlights
5 Key Highlights • Significant improvement in working capital cycle over past year from 161 days to 133 days • Vendor conditional payables reduced by 93% from $15.3m as at 30 June 2020 to $1.1m as at 31 Dec 2020. This will positively impact cashflow from 2H onwards. • Over the past year, net debt ha
Slide 6: Key Highlights
6 Key Highlights • Significant improvement in operating cashflow to $15.5m, up $24.1m on pcp • Payments for earn-outs of previous acquisitions of $14.3m in 1H, mostly in Q1 • Increased cash balance to $26.6m as at 31 Dec 2020 Paragon Care Limited (ASX:PGC) 6
Slide 7: AUS and NZ
7 AUS NZ Paragon Care Limited (ASX:PGC) 7
Slide 8: Delivered $7m in annualised operational savings
8 PA R A G O N C A R E Delivered $7m in annualised operational savings To unlock internal capability Internal silos Unified management team with incentives to promote collaboration and group performance is nearing completion To streamline operations and consolidate facilities 14 discrete business un
Slide 9: EBITDA impact of JobKeeper and streamlined operations
9 EBITDA ($m) IMPACT OF JOBKEEPER • $3m in JobKeeper received in Q1 partially offset declining revenues and lower EBITDA from COVID disruption • Stronger operating performance in Q2 removed eligibility for JobKeeper STREAMLINED OPERATIONS • Reduced headcount, lower marketing, travel, consulting and
Slide 10: EBITDA by growth phase
10 EBITDA ($m) GROWTH BY ACQUISITION GROWTH BY ACQUISITION INDIGESTION NEW GROWTH (FY15 – FY18) 16 PHASE 17 acquisitions between October 2014 and November 2018 14 INDIGESTION 12 (FY19-FY20) Issues with ERP implementation 10 and working capital cycle 8 NEW GROWTH PHASE (FY21+) 6 Leveraging quality as
Slide 11: Paragon Care Limited (ASX:PGC)
11 Paragon Care Limited (ASX:PGC) 11
Slide 12: Distribution footprint and diversified product portfolio
12 Aus/NZ distribution footprint Well-established distribution relationships We have a distribution footprint across Australia We currently have long term relationships with and New Zealand, with comprehensive sales & >100 manufacturers around the world, supplying marketing, regulatory, service & ma
Slide 13: Paragon Care Limited (ASX:PGC)
13 Paragon Care Limited (ASX:PGC) 13
Slide 14: Paragon Care Limited (ASX:PGC)
14 7.1% 5.0% 4.0% 3.3% Paragon Care Limited (ASX:PGC) 14
Slide 15: Focus on Growth Opportunities
15 PA R A G O N C A R E Focus on Growth Opportunities Grow supply footprint • Competitive market offering leading to ongoing inbound enquires as elective surgery opens • Internal focus on cross division sales collaboration Capitalise on existing local manufacturing capability • Order for swab testin
Slide 16: Paragon Care Limited (ASX:PGC)
16 Paragon Care Limited (ASX:PGC) 16
Slide 17: Solid Foundation for Future Growth
17 PA R A G O N C A R E Solid Foundation for Future Growth ✓ $7m annualised reduction in costs • Revenue to be in line for FY21 and grow in FY22 ✓ ERP stabilization • Gross profit margins >38% from 2H FY21 ✓ Warehouse rationalization • Target 15% EBITDA margins ✓ 14 businesses into 4 pillars • Reins
Slide 18: Corporate Overview
18 PA R A G O N C A R E Corporate Overview Non-Executive Chairman Non-Executive Director • Co-founder of Paragon Care • Over 35 years’ experience in the health sector • Extensive commercial and financial experience • Board positions with ASX-listed companies and for- • Chairman of Zenitas Healthcare
Slide 19: Summary information
19 Summary information This Presentation contains summary information about Paragon Care and its activities current as at 30 June 2020. 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 investor
Slide 20: Shane Tanner, Phil Nicholl
20 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 Paragon Care Limited (ASX:PGC) 20