Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — Non-Deal Roadshow (October 2016)
18 slides from Sigma Healthcare's roadshow presentation, Oct 11, 2016
Slide 1: Sigma Pharmaceuticals Limited Asian roadshow – 11-13 October 2016
Investor Relations Contact: Gary Woodford Corporate Affairs Manager Gary.Woodford@signet.com.au Phone: 03 9215 9632 Mobile: 0417 399 204 Mark Hooper Gary Woodford CEO and Managing Director Corporate Affairs Manager Sigma Pharmaceuticals Limited Asian roadshow – 11-13 October 2016
Slide 2: Sigma Overview
Sigma Overview Our History Investment metrics Established 1912 ASX ticker – SIP Listed on the ASX in 1999 Market Capitalisation around A$1.5 billion Dividend Yield around 5.5% Our Business EBIT CAGR over last 5 years – 4.9% Employ over 1,200 team members ROIC over 15% Australia wid
Slide 3: Australia - pharmacy industry at a glance
Australia - pharmacy industry at a glance The market size of retail pharmacy is ~A$15.8 billion The market size of pharmaceutical wholesaling is ~A$12.6 billion Sigma has a strong position in the Australian pharmaceutical supply chain Sigma is the largest Sigma has over 1,300 pharmacy wholesal
Slide 4: Australia – Industry revenue drivers
Australia – Industry revenue drivers Majority of pharmacy revenue is derived from the sale of prescription medicines, where pricing is regulated through federal government policies. Growing proportion of pharmacy sales are from health services and retail products Retail Pharmacy Products and Service
Slide 5: Servicing Australia's healthcare needs
Servicing Australia’s healthcare needs 5
Slide 6: The largest Retail Pharmacy footprint
The largest Retail Pharmacy footprint Sigma leads market consolidation – o Over 700 branded pharmacies, about 40% larger network than the next biggest o More than 600 independent pharmacies Sigma has almost 20%# pharmacy retail market share o equates to over A$3.1bn of retail sales o five percen
Slide 7: 1H17 Highlights
1H17 shows sustained growth across all key financial indicators 1H17 Highlights Revenue A$2.15 Up 28.1% billion EBIT # A$48.4 Up 17.0% million NPAT # A$31.7 Up 14.5% to million ROIC # 15.9 Up from 15.2% percent # Underlying. Refer to Appendix 2 for a reconciliation of Reported to Underlying
Slide 8: Consistently delivering on our promises
Consistently delivering on our promises Promise Delivered Grow EBIT by at 1H17 Underlying# EBIT up 17.0% least 5% for the next two years Grow non PBS Non-PBS earnings continue to grow earnings Other revenue up 24.2% to A$39.2m Maintain strong Minimal net debt of A$55.3m and still expect to b
Slide 9: Continued diversification drives improved performance
Continued diversification drives improved performance Sales Revenue – Up 28.1% to A$2.15 bn (up 7.8% excluding Hep C) Other Revenue – Up 24.2% to A$39.2m $2,400 Sales Revenue and Gross Profit ($'m) $200 Non-PBS Revenue $2,200 $180 Up 11.5% on 1H16 $2,000 Up 58% since 1H13 $160 $1,800 Diver
Slide 10: Investing for growth and an efficient future
Investing for growth and an efficient future Forecast Capital Expenditure Investing in Distribution Centres (DC) to: (A$m) 80 o drive long term efficiency gains in existing 60 markets 40 20 o provide a national capability to target new 0 FY17 FY18 FY19 FY20 business - hospital pharmacy and third p
Slide 11: Capital management continues to be a major focus
Capital management continues to be a major focus Interim dividend - 2.5 cps (fully franked) payout ratio 85.2% of Underlying# NPAT EPS accretive share buy-back since Oct 2012 - 9.6% achieved (113.4m shares) at a VWAP of A$0.73 per share Balance sheet strength to invest net debt steady from Jan
Slide 12: Hospital Pharmacy – a national presence creates further opportunity
Hospital Pharmacy – a national presence creates further opportunity Market Size by State Pharmaceutical hospital wholesaling market exceeds A$3.0bn* 1% o Mkt growth +34%*, with Hep C drugs having a NSW 3% 13% significant impact on market 29% VIC 6% QLD SA Sigma / CHS presence continues to show str
Slide 13: Expanding our reach with our online entry into China
Expanding our reach with our online entry into China Launched 6 June 2016; Operational partnership with Azoya, driving strong visitation numbers; Over 7,000 SKU’s available, leading to strong breadth of products being sourced; No fulfilment or FX risk to Sigma; First half sales double expectati
Slide 14: Sigma's investment proposition
Sigma’s investment proposition Strong Balance Sheet Investing in organic and Investing in Sustainable acquisitive capacity, Shareholder Returns capability and growth people strengthens our market position to support our customers, diversify our income stream, Growing Customer and provide Profitabili
Slide 15: Our strategy is delivering a sustained pipeline of growth
Our strategy is delivering a sustained pipeline of growth Performance Drivers FY17 FY18 FY19 FY20 Organic Growth Core business DC optimisation program BAU improvement Project Renew s Improved retail compliance and buying programs Hospitals/3PL growth New business Acquisitions and expansion into adja
Slide 16: Continued momentum drives strong outlook
Continued momentum drives strong outlook FY17 - Upgrading forecast Underlying EBIT growth to 10% FY18 - Maintaining Underlying EBIT growth expectation of at least 5% Non-PBS revenue / earnings will continue to be the driver Stronger ROIC driven by higher earnings and reduction in CCC Stron
Slide 17: Important notice
Important notice The material provided is a presentation of general information about Sigma's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. No representation or warranty is made as to its completeness, accuracy or rel
Slide 18: Thank you
Thank you