Paragon Care Limited · ASX:PGC
Paragon Care — 1H FY21 Earnings Presentation
23 slides from Paragon Care's earnings presentation, Mar 9, 2021
Slide 1: Investor Presentation 9 March 2021
, \ ParagonCare Health. Covered. ry INVESTOR PRESENTATION 9 MARCH 2021 are Limited
Slide 2: 1H FY21 Outlook / Financial Results
1H FY21 OUTLOOK FINANCIAL RESULTS
Slide 3: Leading provider of medical supplies in AUS & NZ
PARAGON CARE LEADING PROVIDER OF MEDICAL SUPPLIES IN AUS & NZ Established long-term relationships with over 100 manufacturers around the world ParagonCare Health. Covered. Sales & Marketing Regulatory Approvals Service Maintenance Logistics Capabilities Supplying majority of hospitals and healthcare
Slide 4: Established relationships across healthcare
PARAGON CARE ESTABLISHED RELATIONSHIPS ACROSS HEALTHCARE GLOBAL MANUFACTURERS a i MicroPort’ = }40YA & bk») ceive medical AVANOS) Gwricut [2CONMED ParagonCare Health. Covered. MLOVELL § 6% surgical specialties insight, Ky DESIGNS FOR VISION SURGICAL immulab © ScAnmenics Immuno" WV MediTron © LabGear
Slide 5: Diversified product offering
PARAGON CARE DIVERSIFIED PRODUCT OFFERING DIAGNOSTICS CAPITAL & CONSUMABLES BLOOD BANK UROLOGY, CRITICAL CARE LABORATORY NEONATAL, RADIOLOGY SERVICE & TECHNOLOGY MANAGEMENT REPORTING MAINTENANCE
Slide 6: Clear competitive advantages
PARAGON CARE CLEAR COMPETITIVE ADVANTAGES Deep industry expertise Well-established relationships Comprehensive sales & marketing, regulatory Long term relationships with >100 approvals expertise, service & maintenance manufacturers globally, supplying the and logistics capabilities majority of hospi
Slide 7: Paragon Care Limited (ASX:PGC)
7 7.1% 5.0% 4.0% 3.3% Paragon Care Limited (ASX:PGC) 7
Slide 8: 1H FY15 to 1H FY21
8 16 14 12 10 8 6 4 2 0 1H FY15 1H FY16 1H FY17 1H FY18 1H FY19 1H FY20 1H FY21
Slide 9: Experienced board
PARAGON CARE EXPERIENCED BOARD Shane Tanner Non-Executive Chairman + Co-founder of Paragon Care + Extensive commercial and financial experience * Chairman of Zenitas Healthcare and Cronos Limited as jy“ Brent Stewart Non-Executive Director + 25years' experience in senior exec and board roles + Profe
Slide 10: Corporate overview
PARAGON CARE CORPORATE OVERVIEW Ply Phil Nicholl Chief Executive Officer + CEO of Paragon Care since December 2019 * CEO and part owner of Surgical Specialties from Oct 2015 to Dec 2019 + Lengthy career with Asia Pacific Stryker 2004 to 2013 and President for last two years + President Asia Pacific
Slide 11: 11
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Slide 12: 1H FY21 results: key highlights
PARAGON CARE 1H FY21 RESULTS: KEY HIGHLIGHTS Revenue $115m 4 5% On pcp Diversified portfolio generated revenue stability Revenue down by only 5% to $115m despite disrupted healthcare market Paragon Care Limited (ASX:PGC) EBITDA $14.7M + 63% ON pcp Improved margins and streamlined operations driving
Slide 13: 1H FY21 profit & loss
PARAGON CARE 1H FY21 PROFIT & LOSS IMPROVED PROFITABILITY Key Highlights * Increase in EBITDA of 63% and increase in NPAT of 271% on pep + Improved gross margins due to higher margin product mix in Q2 + Revenue was down only 5%, despite COVID disrupted healthcare market * Reduction in 1H operating e
Slide 14: 1H FY21 balance sheet
PARAGON CARE 1H FY21 BALANCE SHEET IMPROVED WORKING CAPITAL CYCLE 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 im
Slide 15: 1H FY21 cash flow
PARAGON CARE 1H FY21 CASH FLOW INCREASED OPERATING CASH FLOW Key Highlights * Significant improvement in operating cash flow to $15.5m, up $24.1m on pcp * Payments for earn-outs of previous acquisitions of $14.3m in 1H, mostly in Q] investing cash flow * Minimal remaining earn-out obligations (down
Slide 16: Revenue stability: diversified offering
PARAGON CARE REVENUE STABILITY: DIVERSIFIED OFFERING 1H FY21 DEVICES DIAGNOSTICS CAPITAL & CONSUMABLES SERVICE & TECHNOLOGY TOTAL REVENUE $40.3m $12.6m $53.0m ~$9.1m $115m > > € € € 3% 8% 5% 34% 5% Diversified portfolio generated revenue stability + Devices: Growth in capital items in eye care * Dia
Slide 17: Delivered $7m in annualised operational savings
PARAGON CARE DELIVERED $7M IN ANNUALISED OPERATIONAL SAVINGS To unlock internal capability Internal silos Unified management team with incentives to promote collaboration and group performance is nearing completion To streamline operations and consolidate facilities 14 discrete business units with d
Slide 18: 63% increase in 1H EBITDA
PARAGON CARE 63% INCREASE IN 1H EBITDA EBITDA ($m) IMPACT OF JOBKEEPER $3m in JobKeeper received in Q] 16 partially offset lower revenues and EBITDA from COVID disruption 14 + Stronger operating performance in Q2 removed eligibility for 12 JobKeeper STREAMLINED OPERATIONS 10 + Reduced headcount, low
Slide 19: Paragon Care Limited (ASX:PGC)
19 Paragon Care Limited (ASX:PGC) 19
Slide 20: Strategic priorities
PARAGON CARE STRATEGIC PRIORITIES + Business as usual, continuous improvement to drive revenue growth and improved margins Ongoing focus on operational efficiency and improved processes across all four pillars Securing new agencies + Internal focus on cross division sales collaboration * Order for s
Slide 21: Solid foundation for future growth
PARAGON CARE SOLID FOUNDATION FOR FUTURE GROWTH NNN NNN ACHIEVEMENTS TO DATE $7m annualised reduction in costs ERP stabilisation Warehouse rationalisation 14 businesses into 4 pillars Headcount reduction Restructured Board and senior management team Strong platform for revenue and EBITDA growth OUTL
Slide 22: Disclaimer
PARAGON CARE DISCLAIMER Summary information This Presentation contains summary information about Paragon Care and its activities current as at 09/03/2021. 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
Slide 23: Thank you
Shane Tanner Chairman P:1300 369 559 E: shane.tanner@paragoncare.com.au Phil Nicholl Chief Executive Officer P: 1300 369 559 E: phil.nicholl@paragoncare.com.au THANK YOU ParagonCare Health. Covered.