Slide 1: Corum Group Limited Investor Presentation September 2020
Corum Group Limited Investor Presentation September 2020
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This presentation has been prepared by Corum Group Limited (COO or the assurance that the results, performance or achievements expressed or implied by Company or Corum). It should not be considered as an offer or invitation to the forward-looking statements contained in
Slide 3: Executive Summary
Executive Summary PharmX Acquisition • A binding agreement has been executed for Corum to acquire the 57% interest in PharmX that it does not already own • Acquisition price is $7.90m in cash. $3.75m to be paid on Completion on or before 4 September 2020 with the balance of Deferred Consideration of
Slide 4: A Year of Transition
A Year of Transition Board Renewal Strategic Review Enhanced healthcare, Evaluated strategy & strategic, financial & resourcing with new key technology capabilities appointments Incentive Plan COVID-19 Response Share based LTI plan Costs reduced resulting in established to align key minimal impact o
Slide 5: Australian Pharmacy Market
Australian Pharmacy Market Corum operates primarily within the Australian pharmacy sector as a software vendor & technology provider Group Market Segment1 Australian Pharmacies2 PBS Registered 3% 13% 15% 95% Private Hospitals 2% Public Hospitals 34% Australian Pharmacy Market Share2 38% 38% My Chemi
Slide 6: Our Pharmacy Software Solutions
Our Pharmacy Software Solutions Corum Health is a key enabler of Australian community pharmacy through its dispense, point of sale and head office pharmacy software solutions Solutions • Medication dispense systems are highly Dispense regulated • ePrescribing ready in a post COVID environment Point
Slide 7: PharmX Overview
PharmX Overview Established in 2006, PharmX is the pre-eminent electronic ordering gateway for Australian pharmacy with a long track record of delivering the stability and reliability required by the high order volumes of pharmacies Key Pharmacy Benefits Key Supplier Benefits • Access all wholesaler
Slide 8: PharmX Opportunities
PharmX Opportunities Independent Operation Renewed Strategic Focus Post Completion of the acquisition PharmX will continue The Corum Board believes the past 3 years of equity to operate as an independent business within the Corum holder litigation have acted as a significant distraction to Group in
Slide 9: eCommerce
eCommerce Corum eCommerce provides its clients a simple and efficient outsourced payment processing platform Our eCommerce Solution • Secure PCI compliant payment ReConnect oneCard gateway Secure payment solution primarily used by Real Estate agents without the need to maintain their own secure paym
Slide 10: Revenue Model
Revenue Model Primarily annuity style revenue sourced from software subscriptions and platform fees underpins positive operating leverage at scale Revenue Source • Software subscriptions under licences • Typically payable quarterly in advance FY'20 Pro-forma 18% 13% • Platform access and usage charg
Slide 11: Financials
Financials
Slide 12: Profit & Loss - Corum
Profit & Loss - Corum Year Ending 30 June (A$000's) FY18 FY19 FY20 Revenue 12,566 11,230 10,643 Expenses Materials & Consumables 1,318 1,142 1,203 Employee Benefits 8,355 7,111 7,176 Occupancy 747 393 124 Marketing 529 625 474 Other 678 988 671 Total Expenses 11,627 10,259 9,648 EBITDA 939 971 995 D
Slide 13: Balance Sheet - Corum
Balance Sheet - Corum As at 30 June (A$000's) FY18 FY19 FY20 Assets Cash 4,971 2,333 2,323 Receivables 1,542 2,305 3,826 Inventories 102 68 64 PP&E 863 731 525 Intangibles 7,232 4,472 4,674 Deferred tax asset 447 469 551 Other 4,569 4,660 7,215 Total Assets 19,726 15,038 19,178 Liabilities Payables
Slide 14: Proforma Consolidated Financials
Proforma Consolidated Financials Year Ending 30 June (A$000's) FY20 As at 30 June (A$000's) FY20 Revenue 14,446 Assets Cash 3,007 Receivables 903 Expenses Inventories 64 Materials & Consumables 2,128 PP&E 607 Employee Benefits 7,682 Intangibles 18,434 Occupancy 171 Deferred tax asset 551 Marketing 4
Slide 15: Consolidated Proforma Basis
Consolidated Proforma Basis Basis of preparation for the Consolidated Proforma Financials is as follows: 1. Assumes acquisition and capital raise had been completed as of 30 June 2020. 2. Annual results as at 30 June 2020 have been combined for both businesses. 3. Intercompany transactions have been
Slide 16: Positive Cashflow Momentum
Positive Cashflow Momentum Net Operating Cashflow1 $1.0 • Operating cashflow improvement a key ($m) focus for new Board $0.7 $0.5 • Cost optimisation a focus to minimise COVID-19 impact - • Cashflow data excludes any PharmX contribution which was accrued during FY’20 -$0.5 -($0.5) -$0.7 • Positive q
Slide 17: Board & Management
Board & Management Nick England Julian Sallabank Jon Newbery Chairman Managing Director Non-Executive Director • Nick has over 35 years of consulting • Julian has vast experience in senior • Jon brings to Corum over 30 years of and senior executive experience in executive and board roles for both ex
Slide 18: Strategic Priorities
Strategic Priorities Revenue, Growth & Profitability • Improve sales performance in core pharmacy software • Continued focus on cost optimisation • Realise operating leverage in technology business Refocused Product Development • Corum Clear to be the lead solution suite • Streamlined product range
Slide 19: Investment Highlights
Investment Highlights Revenue, Growth & Positive Cashflow Platform For Growth Healthtech Focus Profitability Momentum Corum has strengthened its Over the past 12 months Provides investors exposure Positive operating cashflow pharmacy sector Corum has put in place to a long-established quarterly run
Slide 20: Corporate Overview
Corporate Overview Corum Group Limited (ASX:COO) Capital Structure Share Price $0.050 Shares on Issue (m) 402.6 Market Capitalisation $20.1m Options / Pref Rights (m) 4.8 Enterprise Value (Cash 30/6/20) 17.8m Diluted Issued Capital (m) 407.4 Share Price Performance Major Shareholders – 6 August 2020
Slide 21: Key Risks
Key Risks Competition Customer Adoption Corum Health operates in a competitive pharmacy Key customer decision maker awareness and belief in software market. There can be no assurance that Corum’s products is critical to the success of the pricing can be maintained or that additional competitors Comp
Slide 22: Key Risks (continued)
Key Risks (continued) Supplier & Third Party Dependency Key Business Process Disruption There is a risk that a supplier, or third party provider Corum’s service delivery model relies on the execution of may deliver a service below the expected standard, or several critical business processes. These
Slide 23: Corum Group Limited
| Corum Group Limited