Ive Group Ltd. · ASX:IGL
Ive — Investor Presentation (September 2022)
29 slides from Ive's investor presentation, Sep 19, 2022
Slide 1: IVE Group Limited Placement and SPP
IVE Group Limited Placement and SPP Acquisition of Ovato assets and capital raising for growth initiatives 19 September 2022 N OT F O R R E L E A S E O R D I S T R I B U T I O N I N T H E U N I T E D S TAT E S
Slide 2: Disclaimer
Disclaimer This investor presentation (Presentation) is dated 19 September 2022 party. Any views expressed in this Presentation are opinions of the author and has been prepared by, and is the sole responsibility of, IVE Group at the time of presenting and do not constitute a recommendation to act. L
Slide 3: Disclaimer (continued)
Disclaimer (continued) (ASIC) or any other or foreign regulator). This Presentation is not, and does New Zealand offer restrictions not constitute, an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. This Presentation has not been registered, filed with or ap
Slide 4: Disclaimer (continued)
Disclaimer (continued) Financial information entities, and should not be construed as an alternative to other financial measures determined in accordance with AAS or IFRS. Although IVE All references to dollars, cents or $ in this Presentation are to Australian believes these non-IFRS measures provi
Slide 5: Disclaimer (continued)
Disclaimer (continued) Future performance and forward-looking statements global economic environment and capital market conditions and the risk factors outlined on pages 22-28 of this Presentation, with many This Presentation contains certain “forward-looking statements”. The of these factors beyond
Slide 6: Disclaimer (continued)
Disclaimer (continued) Manager and IVE, its security holders or any other investors. The Lead Neither the Lead Manager, nor any of their or IVE’s respective advisers Manager and its affiliates have provided, and may in the future provide, or any of their respective affiliates, related bodies corpora
Slide 7: Disclaimer (continued)
Disclaimer (continued) If you do not reside in Australia or New Zealand you will not be able to participate in the Placement. IVE and the Lead Manager disclaim any duty or liability (including for negligence) in respect of the determination of your allocation using your assumed holdings or otherwise
Slide 8: Contents
Contents Executive summary 9 Overview of Ovato Limited (Ovato) 11 Heat set web offset print sector 12 Transaction strategic rationale 13 Transaction overview 14 Overview of Ovato integration 15 Expected Transaction financial metrics 16 Offer details 17 Offer timetable 18 Underwriting agreement summa
Slide 9: Executive summary
Executive summary Ovato Transaction > As announced to the ASX on 14 September 2022, IVE has completed its acquisition of substantially all of the printing and finishing assets of Ovato’s Australian heat set web offset (HSWO) operations (the Transaction). > The net purchase consideration (including t
Slide 10: Executive summary (continued)
Executive summary (continued) Capital Raising > Following completion of the Transaction, IVE is undertaking a $20m capital raising comprising: — $18m (underwritten) institutional placement (Placement); and — $2m (non-underwritten) Share Purchase Plan (SPP)1 > The capital raising will: — Preserve sig
Slide 11: Overview of Ovato
Overview of Ovato > Ovato has been a large print producer of catalogues and publications > Following a difficult two-year period where COVID-19 related in Australia for many years and was the largest competitor to IVE in challenges were exacerbated by supply chain disruption and this important secto
Slide 12: Heat set web offset (HSWO) print sector
Heat set web offset (HSWO) print sector > Led by IVE, the HSWO sector has undergone significant consolidation over the last 6 years, driven by IVE’s expansion, the impacts of COVID-19 on competitors, and supply chain disruption for raw materials > IVE consistently increased its market share in the H
Slide 13: Transaction strategic rationale
Transaction strategic rationale > The Transaction represents the final significant consolidation of the HSWO sector > Attractive acquisition return metrics reflect the benefit of significant operating leverage on the expected $160m of annual revenue post- integration, which would represent a circa 2
Slide 14: Transaction overview
Transaction overview Financial and other terms > IVE intends to treat these integration costs as a significant item for reporting purposes with no impact on underlying earnings > The total cost to acquire, and expected cost to integrate, the Ovato assets is summarised below: > Integration costs prim
Slide 15: Overview of Ovato integration
Overview of Ovato integration IVE has a strong track record of successfully integrating acquisitions across a range of sectors in which it operates Ovato sites Brisbane Sydney Perth Total revenue Revenue split $30m $120m $10m $160m Integration plan – key principles > 18 month timeline > Phased reloc
Slide 16: Expected Transaction financial metrics
Expected Transaction financial metrics Incremental underlying earnings (post integration)1 $m > The expected EBITDA margin of 18% on the expected $160m of revenue post-integration compares to IVE’s FY22 margin of 12.7% and primarily Revenue2 160 reflects expected operating leverage EBITDA 28 > The r
Slide 17: Offer details
Offer details IVE is conducting a fully underwritten institutional placement to raise approximately $18m and non-underwritten share purchase plan to raise approximately $2m1 Placement size and structure > Fully underwritten institutional placement to raise approximately $18m > Approximately 8m new s
Slide 18: Offer timetable
Offer timetable Placement Date1 Trading halt Monday, 19-Sep-2022 Placement and Sell Down bookbuild Monday, 19-Sep-2022 Placement and Sell Down outcome announced, trading halt lifted by Wednesday, 21-Sep-2022 Settlement of New Shares under the Placement and existing shares under the Sell Down Tuesday
Slide 19: Underwriting agreement summary
Underwriting agreement summary IVE has entered into an underwriting agreement with Shaw and Partners (other than by reason only of a party waiving any of its rights) or Limited (ACN 003 221 583) (Lead Manager) in respect of the Placement capable of being terminated, withdrawn, rescinded, avoided or
Slide 20: Underwriting agreement (continued)
Underwriting agreement (continued) > A director of IVE is charged with an indictable offence or is disqualified > A statement in any of the Public Information is, becomes, or is likely to from managing a corporation, or any Government Agency charges or mislead or deceive, or a matter required to be
Slide 21: Underwriting agreement (continued)
Underwriting agreement (continued) > Any information supplied by IVE to the Lead Manager in respect of the Offer or the Group is, or is found to be, misleading or deceptive, or likely to mislead or deceive (including, by omission); > Hostilities not presently existing commence or an escalation in ex
Slide 22: Key risks
Key risks Introduction Risks associated with participating in the Offer You should be aware that there are risks involved with participating New share allocations in the Offer and holding Shares in IVE Group Limited (the “Company”, The allocation of Shares under the (Placement) will be determined by
Slide 23: Key risks (continued)
Key risks (continued) Industry and business risks Reliance on key management personnel Reliance on customer relationships IVE’s performance depends significantly on its key management personnel managing and growing its business and responding to IVE’s ability to maintain successful relationships wit
Slide 24: Key risks (continued)
Key risks (continued) Additionally, as is common in an Administrator sale, IVE’s ability to seek Equipment and facilities compensation from the Administrators for any claims in respect of that IVE relies on having operational equipment and facilities with the acquisition is very limited. capacity to
Slide 25: Key risks (continued)
Key risks (continued) Impact of changing technology on IVE’s competitive position Foreign exchange IVE’s business is significantly influenced by changing technology, evolving An investment in IVE will include indirect exposure to currency industry standards and the emergence of new technologies. The
Slide 26: Key risks (continued)
Key risks (continued) Any disruption or security breach or other cyber attack could result Significant changes in the environment, or even long term adverse in a loss or damage to our data, breaches of IVE’s obligations under environmental or social consequences could cause IVE to exit certain appli
Slide 27: Key risks (continued)
Key risks (continued) Interest rates and inflationary pressures businesses. While Group’s dividend policy sets the dividend payout ratio in an ordinary year at around 65-75% of full year underlying net profit IVE is exposed to interest rate risk through borrowings with a floating after tax (NPAT), c
Slide 28: Key risks (continued)
Key risks (continued) as acts or threats of terrorism or military conflicts, and developments and general conditions in the markets in which IVE proposes to operate and which may impact on the future value and pricing of shares. No assurances can be given that the New Shares will trade at or above t
Slide 29: IVE Group Limited
IVE Group Limited ABN 62 606 252 644 Level 3, 35 Clarence Street Sydney NSW 2000 Authorised by the IVE Board Contact: Investor Relations investors@ivegroup.com.au