Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — Shareholder Meeting (May 2020)
25 slides from Sigma Healthcare's shareholder meeting presentation, May 13, 2020
Slide 1: Growth through transformation – Annual General Meeting
For personal use only Growth through transformation Annual General Meeting 13 May 2020
Slide 2: Important notice
Important notice For personal use only This presentation for Sigma Healthcare Limited and its subsidiaries (Sigma Group) is designed to provide: • an overview of the financial and operational highlights for the Sigma Group for the 12-month period ended 31 January 2020; and • a high level overview of
Slide 3: Brian Jamieson, Chairman
For personal use only Brian Jamieson Chairman 3
Slide 4: Board of Directors
Board of Directors For personal use only David Manuel Kathryn Spargo David Bayes Christine Bartlett Ray Gunston Michael Sammells Mark Hooper Sigma Healthcare Limited 2020 AGM Presentation 4
Slide 5: Year in Review
Year in Review For personal use only Medication management New Pharmacy Distribution network Centres growth Investment in Hospital critical IT network infrastructure growth CW Contract Sigma Healthcare Limited 2020 AGM Presentation 5
Slide 6: Overview
Overview For personal use only Financial Operational Capital Performance Update Management FY20 Revenue Wholesale - Ongoing $3.2bn, down from Revenue* up 8.5% for the 12-months to 31 Net Debt of $146 $3.9bn million at 31 Jan 20 Jan 20 FY20 Underlying Pharmacy brands - EBITDA** of $46.7m Like-for-lik
Slide 7: Distribution Centre investment
Distribution Centre investment For personal use only o Over $220 million investment to date o Generational advancement in infrastructure o Significantly improves operational capacity and efficiency Canning Vale WA April 2018 February 2019 October 2019 January 2020 Berrinba QLD Canning Vale WA Poorak
Slide 8: Investment in critical IT Infrastructure
Investment in critical IT Infrastructure ERP replacement For personal use only o Project kicked off in Feb 20, and is expected to Capital Expenditure cycle conclude in Q4 2021 120 100 o Partnered with experienced System Integrators 80 Accenture and Infosys 60 40 o Specialist team members recruited 2
Slide 9: Merger proposal rejected during the year
Merger proposal rejected during the year For personal use only o Full consideration given to API proposal which was ultimately rejected o API exited Sigma’s share register in December 2019 o Right decision for Sigma shareholders: • Clear road map established for Sigma’s medium to long term future as
Slide 10: Corporate Social Responsibility
Corporate Social Responsibility For personal use only o Continuing efforts to minimise our environmental footprint o Partnered with Essential Services to overcome challenges and ensure medicines were delivered to isolated areas o Financial and product support provided to affected communities o Ongoi
Slide 11: Brian Jamieson, Chairman
For personal use only Brian Jamieson Chairman 11
Slide 12: Mark Hooper, CEO & Managing Director
For personal use only Mark Hooper CEO & Managing Director 12
Slide 13: Project Pivot – Delivering on target
Project Pivot – Delivering on target For personal use only o Action taken to achieve $62.3m of targeted annualised benefit at 31 Jan 2020, in line with initial Year 1 expectations o Now anticipate some delays in realisation in Year 2 due to reinvestment to support the return of MC/CW FMCG, impacts f
Slide 14: Chemist Warehouse FMCG contract – on track
Chemist Warehouse FMCG contract – on track For personal use only o Approximately $700 - $800 m annual sales (including second line PBS) o 4-year supply agreement to June 2024 o Commercially acceptable trading and credit terms to both parties o On boarding commenced Nov 2019 with over 80% of FMCG vol
Slide 15: Distribution Centres
Distribution Centres Capacity | Efficiency | Value For personal use only Berrinba QLD o Operationalised four new Distribution Centres in the last four years with the latest automation o Created physical and operational capacity that absorbed the spike in volume seen through the Covid-19 peak Sale an
Slide 16: Regulatory Environment
Regulatory Environment For personal use only o Discussions continue on the Community Pharmacy Agreement and Community Service Obligation Agreement o Engagement has been encouraging o Seeking investment to maintain the critical national infrastructure that supports community access to essential medic
Slide 17: COVID-19 update
COVID-19 update For personal use only o Assessment completed and action taken across the business to minimise risk o Introduced a resource hub to support our team members in the workplace and working from home o Implemented several initiatives to support community pharmacies and their patients o Vol
Slide 18: Outlook
Outlook For personal use only o Entered FY21 with good momentum o Combination of actions and a more diversified business provides the platform for sustainable earnings growth o Opportunities created as we emerge from the Covid-19 pandemic will enhance this growth profile o No formal guidance being p
Slide 19: Incoming Chairman
Incoming Chairman For personal use only Mr Ray Gunston B.Comm (Hons), DipEd, FCPA, FTA, GAICD Sigma Healthcare Limited 2020 AGM Presentation 19
Slide 20: Thank you
For personal use only Thank you
Slide 21: Appendix
For personal use only Appendix
Slide 22: Group Financial Performance
Group Financial Performance For personal use only REPORTED UNDERLYING* $m FY2020 FY2020 FY2019 Variance Change Sales Revenue 3,244.3 3,244.3 3,976.8 -732.5 -18.4% Gross Profit 215.0 215.0 273.2 -58.2 -21.3% Other Revenue 98.1 98.1 99.5 -1.4 -0.01% Operating Costs -288.9 -255.4 -282.2 16.0 5.7% EBITD
Slide 23: Reported to Underlying Reconciliation
Reported to Underlying Reconciliation For personal use only $m FY20 FY19 Reported EBITDA 24,200 76,550 Add Back (before tax) Restructuring and dual operating costs 39,662 13,115 Due Diligence and Legal Costs (4,261) 863 Impact of Adoption of AASB 16 (11,517) - Underlying EBITDA 48,084 90,528 Less Re
Slide 24: Reported to Underlying Reconciliation
Reported to Underlying Reconciliation For personal use only $m FY20 FY19 Reported NPAT (12,330) 36,520 Add Back (after tax) Restructuring and dual operating costs 27,763 9,180 Due Diligence and Legal Costs (2,983) 604 Impact of Adoption of AASB 16 157 - Underlying NPAT 12,607 46,304 Sigma Healthcare
Slide 25: Cash Flow
Cash Flow For personal use only 0 (50,000) (100,000) (150,000) (200,000) (250,000) (300,000) Cash Net Debt EBITDA Change in Income Tax Shares buy Dividend Net Cost of Capex Acquisitions Net Interest NetCash Net Debt 31 Jan 2019 Working Payment back Payment Employee Payment 31 Jan 2020 Capital Shares