Slide 1: IVE Group Limited FY21 Results Presentation
IVE Group Limited FY21 Results Presentation ASX : IGL 25 August 2021
Slide 2: Contents and about IVE
Financial performance dashboard Going further since 1921 3 Celebrating our centenary this year, IVE is Key business Australia’s leading holistic marketing highlights company. With an unmatched breadth and depth of offering, we guide our clients from 4 idea to execution. Our landscape is constantly s
Slide 3: Financial performance dashboard
Financial performance dashboard (underlying, continuing and post AASB16) A strong set of financial outcomes in a period of uncertainity and volatility EBITDA NPAT $100.2m $30.2m GROSS PROFIT REVENUE MARGIN $656.5m 48.1% (including JobKeeper) (including JobKeeper) $85.3m (46.2% PCP) $19.9m (excluding
Slide 4: Key business highlights
Key business highlights Earnings guidance met, strong cashflows deliver increased balance sheet strength and demonstrate underlying resilience Strong operating performance > Delivered on earnings guidance – EBITDA $100.2m > Improved margins notwithstanding reduced revenue, achieved through flexing c
Slide 5: Key business highlights (continued)
Key business highlights (continued) Balance sheet further strengthened > Strong cashflow generation, operating cashflow conversion of 131% > Net Debt reduced by $59.8m from $137.1m (30 June 2020) to $77.3m > Cash balance at 30 June 2021 of $107m > Net debt to pre AASB16 EBITDA excluding JobKeeper of
Slide 6: Key business highlights (continued)
Key business highlights (continued) Customers and revenue IVE continues to benefit from its differentiated value proposition and a loyal, strong and diversified customer base Retention > IVE provided continuity of service and supply to all customers throughout the pandemic > Ongoing traction in shar
Slide 7: Financial results summary
Financial results summary Going further since 1921 7 IVE Group Limited FY21 Results Presentation
Slide 8: Profit and loss
Profit and loss Improving metrics despite COVID-19 impacts Underlying continuing operations excluding JobKeeper Actual FY2021 Actual FY2020 Variance $m $m % Revenue 656.5 677.4 (3.1%) Gross Profit 316.0 313.0 1.0% % of Revenue 48.1% 46.2% 4.2% EBITDA 85.3 82.8 3.0% EBITDA margin % 13.0% 12.2% 6.3% E
Slide 9: EBITDA bridge
EBITDA bridge EBITDA growth achieved in a challenging environment driven by cost management and improved work mix FY20 EBITDA bridge to FY21 (excluding JobKeeper) $m 90.0 90.0 80.0 80.0 25.9 70.0 25.5 70.0 7.0 11.6 5.4 60.0 60.0 10.0 13.0 50.0 50.0 82.8 85.3 40.0 40.0 30.0 57.3 59.3 30.0 20.0 20.0 1
Slide 10: Balance sheet strength
Balance sheet strength Strong cash generation over the period has substantially reduced gearing FY2021 FY2020 Actual Actual $m $m Loans & borrowings – short term 6.5 6.9 Loans & borrowings – long term 177.3 181.8 Loans & borrowings* – Sub Total 183.8 188.7 Less cash 106.5 51.6 Net Debt 77.3 137.1 *
Slide 11: Capital expenditure
Capital expenditure Capital expenditure normalising following the completion of a major investment and expansion program over recent years FY 2021 $m Group wide targeted investment and maintenance 8.7 Group wide MIS upgrades 4.0 Total 12.7 Excludes land & buildings acquired as part of ACM acquisitio
Slide 12: Cashflow generation and dividends
Cashflow generation and dividends Continuing strong free cashflow driven by operational performance and working capital management > Continuing strong operating cashflows of $97m, with 131% operating Underlying Underlying FY2021 FY2020 cash conversion, 110% PCP $m $m > Disciplined management of work
Slide 13: Strategy, growth, market position and historical metrics
Strategy, growth, market position and historical metrics Going further since 1921 13 IVE Group Limited FY21 Results Presentation
Slide 14: Strategy, diversification and growth opportunities
Strategy, diversification and growth opportunities A clearly defined and well executed strategy has resulted in a resilient business with diversified revenue streams, well positioned to pursue growth initiatives Execution of the long-term strategy Continuation of our strategy through actively pursui
Slide 15: Continuing to expand our digital offerings through Lasoo
Continuing to expand our digital offerings further through enhancing and amplifying Lasoo > Lasoo was the first digital catalogue site in Australia, established in 2007 > Strategically acquired by IVE in 2020 9.6m 24m 840,000 shopping digital catalogues buy now > Loyal and active customer base sessi
Slide 16: Market positioning
Market positioning Strong market position across a number of key sectors > No 1 provider in key sectors we operate in > IVE is considered an attractive counterparty given the diversity and power of our value proposition, geographical footprint and financial strength > COVID-19 has increased pressure
Slide 17: Revenue diversification
Revenue diversification Execution of our strategy has resulted in the increased diversification of revenue streams and broader client relationships > Our long term strategy of evolving our value proposition has resulted in well-diversified revenue streams across FY21 multiple sectors Revenue $656.5m
Slide 18: Margin stability
Margin stability Margins resilient despite COVID-19 impacting revenue since FY20 60% 60% 50% 50% > Material gross margin (MGM) stable over period, reflects benefit 40% 40% of revenue diversification, stable market conditions, and effective management of supply chain 30% 30% 20% 20% > Gross margin ma
Slide 19: Outlook
Outlook Going further since 1921 19 IVE Group Limited FY21 Results Presentation
Slide 20: Outlook
Outlook The solid underlying fundamentals of the business, combined with the strength of our balance sheet, place IVE in an ideal position to deliver strong growth as we emerge from this period of COVID-19 disruption FY22 > Given the ongoing COVID-19 disruption, we are not able to provide specific F
Slide 21: Appendices
Appendices Going further since 1921 21 IVE Group Limited FY21 Results Presentation
Slide 22: Appendix A: IFRS Profit and Loss
Appendix A IFRS Profit and Loss FY21 & FY20 Post AASB16 – Statutory Actual Actual Variance Variance FY2021 FY2020 $m % $m $m Revenue 656.5 677.4 (20.9) (3.1%) Gross Profit 316.0 313.0 3.0 1.0% % of Revenue 48.1% 46.2% – 4.2% EBITDA 96.2 85.8 10.4 12.2% Depreciation and amortisation 47.2 85.5 (38.3)
Slide 23: Appendix B: Balance Sheet and NPAT reconciliation
Appendix B IVE Group Limited Balance Sheet IFRS to underlying NPAT reconciliation Actual FY21 Actual FY20 FY2021 $m $m $m Current Assets IFRS NPAT (continuing) 24.7 Cash and cash equivalents 106.5 51.6 Restructure costs 3.3 Trade receivables, prepayments and others 106.3 110.3 Acquisition costs 1.0
Slide 24: Appendix C: Disclaimer
Appendix C Disclaimer No recommendation, offer, Disclaimer disseminate any updates or revisions to this looking statements in this presentation invitation or advice information over time. Any forward-looking will actually occur. In addition, please note No representation or warranty, express stateme
Slide 25: 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: Richard Nelson Investor Relations richard.nelson@ivegroup.co