Slide 1: FY23 Results Presentation
IVE Group Limited (ASX : IGL) FY23 Results Presentation 24 August 2023 idea execution
Slide 2: Contents
Contents Underlying financial performance dashboard 3 Financials 4 Underlying profit & loss 5 Balance sheet 9 Capital expenditure 10 Cash flow and dividends 11 Business updates 12 Ovato 13 Lasoo 15 Strategic initiatives 18 Expansion of Content Creation offering 19 Apparel and uniforms 21 Packaging u
Slide 3: Underlying financial performance dashboard
Underlying financial performance dashboard A strong full year performance and maiden contribution from Ovato acquisition REVENUE EBITDA NPAT EPS $967.4m $119.0m $39.7m 26.4c ↑ 27.5% on PCP ↑ 23.1% on PCP ↑ 19.8% on PCP ↑ 14.5% on PCP MATERIAL PROFIT OPERATING CASH NET DEBT FULLY FRANKED MARGIN FLOW
Slide 4: Financials
Financials 4 IVE Group Limited — FY23 Results Presentation
Slide 5: Underlying profit & loss
Financials Underlying profit & loss Solid uplift in revenue, EBITDA, NPAT and EPS FY23 FY22 Variance $m $m % Revenue 967.4 759.0 27.5 Material gross profit 435.9 353.7 23.3 % of Revenue 45.1% 46.6% (3.3) EBITDA 119.0 96.6 23.1 % of Revenue 12.3% 12.7% (3.4) Depreciation and amortisation 47.8 42.0 13
Slide 6: Revenue and material gross profit margin
Financials Revenue Material gross profit margin (MGM) > Revenue increased 27.5% to $967.4m from > Material gross profit (revenue less material cost $759.0m pcp of goods sold) margin was 45.1%, down from 46.6% pcp > Ovato (acquired selected assets on 13 September 2022) contributed around $136m of rev
Slide 7: Customer diversity and longevity
Financials Customer diversity and longevity Revenue concentration by customer1 Revenue sector analysis2 Relationship tenure of top 20 customers2 % Top 20 customers by revenue Top customer 8% Retail 46.6 1 2 White goods, electronics, 24.1 Other furniture, clothing 3 < Average relationship Top 2-5 cus
Slide 8: Underlying earnings, NPAT and EPS
Financials Underlying earnings, NPAT and EPS Non-operating items > EBITDA increased 23.1% to $119.0m from Non-operating items of $33.5m pre-tax (refer $96.6m pcp Appendix A) excluded from underlying earnings included: > Excluding an estimated $11.0m contribution from Ovato, underlying EBITDA growth
Slide 9: Balance sheet
Financials Balance sheet Balance sheet remains strong, with increase in net debt primarily reflecting ongoing growth and Ovato acquisition including the funding of significant additional inventory and integration costs Net debt FY23 FY22 > Proceeds from the share issue and a $30m $m $m drawdown on t
Slide 10: Capital expenditure
Financials Capital expenditure Our operational asset base remains in excellent condition following a period of meaningful investment Capital expenditure FY23 FY22 $m $m Investment & maintenance 13.9 13.9 Lasoo 1.0 4.7 Ovato 1.6 — Total 16.5 18.6 > Capital expenditure (excluding Ovato) was $14.9m for
Slide 11: Cash flow and dividends
Financials Cash flow and dividends Cash flow and dividends FY23 FY22 > Operating cash conversion of 65.7% to EBITDA $m $m compared to 94.9% pcp EBITDA 119.0 96.6 > Operating cash conversion was impacted by a Movement in NWC/ significant increase in working capital reflecting non‑cash items in EBITDA
Slide 12: Business updates
Business updates 12 IVE Group Limited — FY23 Results Presentation
Slide 13: Ovato acquisition
Business updates Ovato acquisition > IVE completed the Ovato transaction on > Ovato consideration, net assets acquired and 13 September 2022 associated goodwill is summarised below: > The integration of Ovato revenue into IVE’s Ovato acquisition summary $m manufacturing footprint is generating meani
Slide 14: Integration update
Business updates Integration update > As the integration with IVE’s existing operations is now well progressed, the Company will be unable > Ovato’s estimated FY23 contribution to the Group is to provide an ongoing estimate of the annual as follows: earnings contribution from what were previously —
Slide 15: Lasoo — performing strongly after successful launch
Business updates Lasoo — performing strongly after successful launch Leading e-Commerce marketplace for specials > Following its successful launch in October 2022, > A number of significant retailers unique to Lasoo the new Lasoo platform continues to show strong joined the platform during 2H FY23 i
Slide 16: Lasoo retailer onboarding momentum
Business updates Lasoo retailer onboarding momentum Lasoo sales split by category 130 120 110 100 Other 90 Furniture Hardware Fashion 80 Jewellery 70 Alcohol 60 50 Pets 40 30 Toys 20 Home & 10 garden Health & beauty Aug ‘22 Sep ‘22 Dec ‘22 Mar ‘23 Jun ‘23 Sports & Electronics outdoor On the platform
Slide 17: Brands now available to buy on special on Lasoo
Business updates Brands now available to buy on special on Lasoo 17 IVE Group Limited — FY23 Results Presentation
Slide 18: Strategic initiatives
Strategic initiatives idea execution 18 IVE Group Limited — FY23 Results Presentation
Slide 19: Expansion of Content Creation offering
Strategic initiatives Expansion of Content Creation offering In response to growth in demand for content, IVE will create further value for our clients through an expanded Content Creation offering that tailors authentic content that will resonate with their target audience > IVE employ a strong and
Slide 20: Data & insights, Creative & content production, Omni-channel activation
Strategic initiatives Data & insights Creative & content production Omni-channel activation Origination Adaptation Data Management Privacy & Security Creative Data Analytics Customer Segmentation CX Design Customer Journey Mapping Content Production CRM Advisory MarTech Advisory Premium Quality Proc
Slide 21: Apparel and uniforms
Strategic initiatives Apparel and uniforms > Having developed a garment sourcing component — In-house creative design resources; to IVE’s Premiums & Merchandising business, apparel and corporate uniforms was identified as a — Complements our established national natural and growing product adjacency
Slide 22: Packaging update
Strategic initiatives Packaging update > During 2022, the Group completed an in-depth > With current folded carton revenues of $10m p.a., analysis of the Australian packaging industry the segment further complements IVE’s existing printing and logistics capability, as well as > Key success indicator
Slide 23: Sustainability
Sustainability 23 IVE Group Limited — FY23 Results Presentation
Slide 24: Sharpening the Group's ESG focus
Sustainability Sharpening the Group’s ESG focus IVE Group engaged a specialist consultancy to assist in the design and implementation of our ESG strategy to ensure our framework was A comprehensive and tangible ESG strategy informed by an evidence based approach. The project involved four key stages
Slide 25: Our ESG strategy 2025 and beyond
Sustainability Our ESG strategy 2025 and beyond 1 Underpinning our approach is our ongoing commitment to ONE TWO THREE transparency and authenticity through GRI-aligned2 and Designing Valuing our Maintaining TCFD3 disclosure and robust Innovative People and Responsible governance including establish
Slide 26: Outlook and guidance
Outlook and guidance 26 IVE Group Limited — FY23 Results Presentation
Slide 27: Outlook and guidance
Outlook and guidance * Following two consecutive years of growth on all key financial metrics (EBITDA, NPAT & EPS), the Group is well placed to deliver healthy returns to shareholders over the year ahead. Notwithstanding prevailing economic uncertainty, we expect the core fundamentals of IVE will on
Slide 28: Appendices
Appendices 28 IVE Group Limited — FY23 Results Presentation
Slide 29: Appendix A: IFRS to underlying NPAT reconciliation
Appendices Appendix A IFRS to underlying NPAT reconciliation Non-operating items excluded from underlying NPAT FY23 FY22 $m $m IFRS Profit & Loss IFRS NPAT 17.1 26.9 FY23 FY22 Variance Ovato $m $m % Restructure costs 16.0 — Revenue 970.2 759.0 27.8 Acquistion costs 2.7 — Material Profit 437.4 353.7
Slide 30: Appendix B: IVE Group Limited Balance Sheet
Appendix B IVE Group Limited Balance Sheet FY23 FY22 $m $m Current Assets Cash and cash equivalents 44.9 67.0 Trade receivables, prepayments and other 146.6 123.9 Inventories 98.7 74.2 Current tax receivable 1.2 - Assets held for sale 1.1 - Total Current Assets 292.4 265.1 Non-Current Assets Deferre
Slide 31: Disclaimer
Disclaimer No recommendation, offer, invitation or advice Disclaimer IVE disclaims any obligation or undertaking person, gives any representation, assurance or This presentation contains general information No representation or warranty, express or implied, to disseminate any updates or revisions to
Slide 32: IVE Group Limited
IVE Group Limited ABN 62 606 252 644 Level 3, 35 Clarence Street Sydney NSW 2000 Geoff Selig Executive Chairman Matt Aitken Chief Executive Officer Darren Dunkley Chief Financial Officer ivegroup.com.au Authorised by the IVE Board Contact: Tony Jackson Investor Relations Tony.Jackson@ivegroup.com.au