Slide 1: For personal use only
For personal use only
Slide 2: Results Presentation for the year ended 31 January 2012
For personal use only Sigma Pharmaceuticals Limited Results Presentation for the year ended 31 January 2012 Mark Hooper – CEO & Managing Director Jeff Sells – Chief Financial Officer 22 March 2012 2
Slide 3: Important notice
Important notice For personal use only The material that follows 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 com
Slide 4: Overview
Overview For personal use only • Sigma 12 months on – Mark Hooper • Financial summary – Jeff Sells • Sigma 100 years and beyond – Mark Hooper 4
Slide 5: Sigma months on
For personal use only Sigma 12 months on Presented by Mark Hooper CEO & Managing Director Sigma Pharmaceuticals Limited 5
Slide 6: Sigma months on
12 months on For personal use only • Debt fully repaid, currently in a net cash position • Improved profitability and ROIC • New strategy being implemented – Moving from manufacturer push / reactive to customer centric / proactive • Executive team in place – Gary Dunne appointment as Chief Operating
Slide 7: Sigma has delivered on key metrics
12 months on For personal use only Sigma has delivered on key metrics • Sales – sales revenues up 10% on like for like basis • Profit – EBIT of $70.3m versus $9.1m loss • Working Capital – cash conversion cycle reduced 10 days YOY • ROIC – 12.4% versus 7.3% • Cash flows – operating cash flows increa
Slide 8: Dividends
Dividends For personal use only • 2.0 cent fully franked final dividend declared plus: • 1.5 cent fully franked special dividend • High payout ratio rewards shareholders from improvements made in working capital • Total dividends of 20 cents per share fully franked over past 12 months • Over the ful
Slide 9: Financial Summary
For personal use only Financial Summary Presented by Jeff Sells Chief Financial Officer Sigma Pharmaceuticals Limited 9
Slide 10: FY12 income statement
FY12 income statement For personal use only • Revenue % – Reported down 2% mainly reflects $m FY2011 FY2012 change impact of Pfizer and PBS reform Sales revenues 2,914.3 2,853.9 (2.1%) – Like for like up 10% due to market share gains and PBS growth Gross Profit 176.6 202.7 14.8% • Costs – Administra
Slide 11: Earnings waterfall
For personal use only 11 Earnings waterfall
Slide 12: Operating costs
Operating costs For personal use only Key themes Warehouse • Approx one‐third of increase due to reclass of costs (Aspen distribution) & Delivery • Freight and people costs increased due to higher activity • Increase in rent and depreciation from Rowville • Some inefficiencies from running multiple
Slide 13: EBIT margin
EBIT margin For personal use only $m H1 FY 2012 H2 FY 2012 FY 2012 Sales Revenue 1,372.3 1,481.6 2,853.9 48% 52% 100% EBIT 38.0 32.3 70.3 Reported EBIT Margin 2.77% 2.17% 2.46% Adjusted for: – net inventory gain (4.0) – doubtful debts 8.0 34.0 40.3 EBIT Margin 2.50% 2.72% 2.60% • Second half margin
Slide 14: Strong cash repays debt and funds dividends
Strong cash repays debt and funds dividends For personal use only 14
Slide 15: Further working capital gains
Further working capital gains For personal use only As at As at As at Working Capital $m 31 Jan 2011* 31 Jul 2011* 31 Jan 2012 Trade Receivables 641 581 593 Inventories 225 275 214 Trade Creditors 251 334 312 Total Working Capital 615 522 495 Days Sales Outstanding 75 71 76 Days Inventory Outstandin
Slide 16: Continued improvement in cash flow conversion
Continued improvement in cash flow conversion For personal use only * These years include Pharma division working capital. 16
Slide 17: Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO) For personal use only • Extended trade credit arrangements are no longer offered to customers • Total Receivables down but DSO calculation impacted by: – unwinding of Pfizer benefit in H1 – stronger seasonal H2 sales – repayment arrangements of previous extended credit •
Slide 18: Positive trend in ROIC performance
Positive trend in ROIC performance For personal use only As at As at As at $m 31 Jan 2011 31 July 2011 31 Jan 2012 Net assets 832.9 676.8 682.5 Less: cash and cash equivalent (556.9) (135.8) (148.6) Add: borrowings * 354.8 47.2 35.0 Capital employed 630.8 588.2 568.9 EBIT 46.7+ 54.5+ 70.3 ROIC 7.3%
Slide 19: Sigma years and beyond
For personal use only Sigma 100 years and beyond Presented by Mark Hooper CEO & Managing Director Sigma Pharmaceuticals Limited 19
Slide 20: Building momentum
Building momentum For personal use only • By the end of 2012, the first phase of our strategy will be complete • This will be delivered through: – new strategy supported by upgraded skills base and infrastructure – integrated, multi‐team approach focused on customer and supplier partnerships • Proce
Slide 21: New Retail strategy
New Retail strategy For personal use only • Focus on end consumer – ‘placing pharmacists and consumers at centre of everything we do’ • Multi channel, e‐Commerce, social media • Private and exclusive label • Pilot stores • Pharmacy brand “new faces” – TV personality Georgie Parker brand ambassador f
Slide 22: 2012 industry outlook
2012 industry outlook For personal use only • In calendar 2011, PBS growth slowed to 2.4% pa. 12 months to January 2012 slightly higher at around 3% • Over 2012, major PBS reforms expected to slow growth further to flat or negative – 1 April adjustments already announced – significant molecules comi
Slide 23: FY 2013 outlook for Sigma
FY 2013 outlook for Sigma For personal use only • Additional working capital improvement will further improve ROIC • PBS reforms will dampen sales and profit growth • Further cost savings expected – will assist in funding continued investment in the business • Cash flows combined with strong balance
Slide 24: For personal use only
For personal use only
Slide 25: Questions?
For personal use only Questions ? 25