Slide 1: FY22 Results Presentation
IVE Group Limited FY22 Results Presentation ASX : IGL 25 August 2022
Slide 2: Contents
Contents Financial performance dashboard 3 Key business highlights 4 Financial results summary 7 Profit and loss 8 Balance sheet 10 Capital expenditure 11 Cash flow and dividends 12 20 Strategy and growth initiatives 13 Continuation of the Group’s long-term strategy to further diversify and grow rev
Slide 3: Financial performance dashboard
Financial performance dashboard A strong uplift in underlying financial performance following two years of unprecedented uncertainty and volatility GROSS PROFIT REVENUE EBITDA NPAT MARGIN $759.0m $96.6m $33.1m 46.6% ↑ 15.6% on PCP ↑ 13.3% on PCP ↑ 66.1% on PCP 48.1% PCP NET DEBT EARNINGS $76.8m OPER
Slide 4: Key business highlights
Key business highlights Strong operating performance and shareholder returns > Delivered on earnings guidance of $33.1m NPAT (up 66% on PCP) > Earnings uplift driven by a 16% ($102.5m) increase in revenue over PCP, and leveraging the recalibrated cost base > Earnings per share (EPS) of 23.1 cents (u
Slide 5: Victorian site consolidation and supply chain
Victorian site consolidation Over the last 2 years we have invested significantly in our Victorian site consolidation program. This will result in IVE operating from two precincts in Melbourne, driving further efficiencies and enhanced client service > Our Sunshine facility (totalling 52,000 sqm acr
Slide 6: Balance sheet further strengthened
Balance sheet further strengthened The Group’s balance sheet has significantly strengthened over the last two years on the back of continued strong cash flow > Net debt at 30 June 2022 was $76.8m, down $60.3m from $137.1m at 30 June 2020 > Cash at bank at 30 June 2022 was $67m, after repaying $35m o
Slide 7: Financial results summary
Financial results summary 20 22 7 IVE Group Limited — FY22 Results Presentation
Slide 8: Profit and loss
Profit and loss Strong uplift in underlying revenue, EBITDA and NPAT FY2022 FY2021 Variance Variance $m $m $m % Revenue 759.0 656.6 102.5 15.6% Gross Profit 353.7 316.0 37.7 11.9% % of Revenue 46.6% 48.1% — (3.2%) EBITDA 96.6 85.3 11.4 13.3% EBITDA margin % 12.7% 13.0% — (2.0%) EBIT 54.6 38.1 16.6 4
Slide 9: Profit and loss (continued)
Profit and loss (continued) > Gross profit margin of 46.6% compared with 48.1% in PCP > EBITDA of $96.6m to PCP of $85.3m — The reduction in gross profit (revenue less material cost of goods sold) — increase of $11.4m (13.3%) margin over PCP is primarily due to contractual timing differences of > NP
Slide 10: Balance sheet
Balance sheet Further strengthened balance sheet provides significant capacity to support growth initiatives FY2022 FY2021 $m $m Loans & borrowings* 143.8 183.8 Less cash 67.0 106.5 Net Debt 76.8 77.3 * Loans & borrowings are gross of facility establishment costs * Excludes right of use liabilities
Slide 11: Capital expenditure
Capital expenditure The Company’s excellent operational footprint is the result of targeted investment over many years FY2022 $m Group-wide targeted investment and maintenance 13.9 Lasoo investment 4.7 Total 18.6 Capital expenditure excludes addition of Braeside make good asset provision Comments >
Slide 12: Cash flow and dividends
Cash flow and dividends Strong free cash flow, disciplined management of working capital, uplift in dividend and improved ROFE Underlying FY2022 $m EBITDA 96.6 Movement in NWC/non cash items in EBITDA (4.9) Operating cash flow 91.7 Operating cash conversion to EBITDA 95% Dividend cents per share 16.
Slide 13: Strategy and growth initiatives
Strategy and growth initiatives 20 22 13 IVE Group Limited — FY22 Results Presentation
Slide 14: Continuation of the Group's long-term strategy to further diversify and grow revenue and earnings
Continuation of the Group’s long-term strategy to further diversify and grow revenue and earnings A clearly defined and well executed strategy has cemented IVE as the largest integrated marketing communications business in Australia, holding leading market positions across all sectors in which we op
Slide 15: Growth opportunities
Growth opportunities Packaging > Continue to organically grow revenue and earnings on the strength We have previously communicated that the Company sees opportunities of our integrated offer, world class operations, market position and for both organic and acquisition growth in the packaging sector
Slide 16: IVE's new e-Commerce enabled marketplace for retailers' specials
IVE’s new e-Commerce enabled marketplace for retailers’ specials 16 IVE Group Limited — FY22 Results Presentation
Slide 17: Lasoo today – significant loyal consumer and retailer base despite limited functionality
Lasoo today – significant loyal consumer and retailer base despite limited functionality > Lasoo was established in 2007 and acquired by IVE in January 2020 > Lasoo has longstanding, loyal consumer and retailer support despite the limited functionality — Over 200,000 active users per month on averag
Slide 18: Lasoo tomorrow – e-Commerce marketplace for retailers' specials
Lasoo tomorrow – e-Commerce marketplace for retailers’ specials > IVE identified a meaningful opportunity to transform Lasoo into a superior platform to drive a greatly enhanced online consumer experience and to deliver commercial upside to our extensive retail client base and to IVE > In FY22, the
Slide 19: Lasoo launch – strong retailer support, best-in-class tech stack & CX, experienced team
Lasoo launch – strong retailer support, best-in-class tech stack & CX, experienced team > Around 65 of Australia’s leading retailers across a broad range of sectors confirmed for launch (previous platform peak of 42) — 30 new retailers — 13 existing IVE (retailer) clients > 15 additional retailers w
Slide 20: Lasoo go-to-market campaign
Lasoo go-to-market campaign DOOH large format DOOH small format/retail Radio Print APEX native Social SEM Digital TVC prospecting and remarketing 20 IVE Group Limited — FY22 Results Presentation
Slide 21: Lasoo – illustrative revenue model
Lasoo – illustrative revenue model commission commission commission Current Year other Year Year state 1 revenue 2 3 100% other digital catalogue revenue other creation digital catalogue revenue creation digital catalogue creation digital catalogue Lead generation creation Advertising Data Charts fo
Slide 22: Implementation Deed for prospective Ovato asset acquisition
Implementation Deed for prospective Ovato asset acquisition On 10 August 2022, IVE announced it had entered into an implementation deed (Implementation Deed) with Ovato Limited (Administrators Appointed) (Ovato) and the Ovato Administrators (defined below) under which the parties agree to progress g
Slide 23: Outlook and guidance
Outlook and guidance 20 22 23 IVE Group Limited — FY22 Results Presentation
Slide 24: Outlook and guidance
Outlook and guidance The solid fundamentals of the business, combined with the > The Company has demonstrated its capacity to effectively manage our strength of our balance sheet, place IVE in an ideal position to supply chain throughout a period of unprecedented volatility. Whilst we deliver growth
Slide 25: Appendices
Appendices 20 22 25 IVE Group Limited — FY22 Results Presentation
Slide 26: Appendix A
Appendix A IFRS Profit and Loss FY2022 FY2021 Variance Variance $m $m $m % Revenue 759.0 656.5 102.5 15.6% Gross Profit 353.7 316.0 37.7 11.9% % of Revenue 46.6% 48.1% — (3.2%) EBITDA 90.5 95.6 (5.1) (5.4%) Depreciation and amortisation 42.0 47.2 (5.2) (11.1%) EBIT 48.5 48.4 0.1 0.2% Net finance cos
Slide 27: Appendix B
Appendix B Balance Sheet FY2022 FY2021 $m $m Current Assets Cash and cash equivalents 67.0 106.5 Trade receivables, prepayments and others 123.9 106.3 Inventories 74.2 43.8 Investments 0.0 1.8 Total Current Assets 265.1 258.4 Non Current Assets Deferred tax assets 17.2 15.2 Property, plant and equip
Slide 28: Appendix C
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 29: IVE Group Limited
IVE Group Limited ABN 62 606 252 644 Level 3, 35 Clarence Street Sydney NSW 2000 Geoff Selig Authorised by the IVE Board Executive Chairman Matt Aitken Contact: Chief Executive Officer Sean Langdon Investor Relations Darren Dunkley investors@ivegroup.com.au Chief Financial Officer +61 411 709 421 iv