Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — Shareholder Meeting (May 2018)
21 slides from Sigma Healthcare's shareholder meeting presentation, May 16, 2018
Slide 1: Annual General Meeting 16th May 2018
For personal use only Sigma Healthcare Limited Annual General Meeting 16th May 2018
Slide 2: Brian Jamieson, Chairman
For personal use only Brian Jamieson CHAIRMAN
Slide 3: Overview
Overview For personal use only Our Strategic Direction Status of our Investment Program Our Capital Management Update
Slide 4: Strategic direction
Strategic direction For personal use only 1. Continued focus on diversifying our earnings 2. Two acquisitions completed in FY18
Slide 5: Investing in Infrastructure
Investing in Infrastructure • Current network requires reinvestment to remain competitive For personal use only • Committed to an investment program of over $200 million over 3 years • Strong financial returns from investment • Investment will significantly enhance capabilities Forecast Capital Expe
Slide 6: DC Investment Update - Berrinba, QLD
DC Investment Update - Berrinba, QLD For personal use only Construction and automation now complete • Total cost of $55m including land and buildings – under budget • Transition from Mansfield to Berrinba commenced 26 February 2018 • Became fully operational April 2018 with full run rate benefits to
Slide 7: DC Investment Update – Canning Vale, WA
DC Investment Update – Canning Vale, WA For personal use only Construction well advanced • Approx $55m investment (including land and buildings) • 15,000 square metre facility • Building works complete, internal fit-out progressing well • Strong payback metrics from automation • Anticipated completi
Slide 8: DC Investment Update - Kemps Creek, NSW
DC Investment Update - Kemps Creek, NSW For personal use only Construction ready to commence • Approx $110m investment (including land and buildings) • 40,000 square metre facility • DC construction commencing in May 2018 • Detailed design work well underway • Anticipate becoming fully operational i
Slide 9: Capital management
Capital management • A further 15 million shares bought back in FY18 (131 million since program commenced) For personal use only • Balance sheet remains strong to support investment • Net debt at year end of $113.6 million • High dividend payout ratio maintained - average 85% over last 6 years Divid
Slide 10: Valuing our people
Valuing our people • Diversity is embraced across Sigma For personal use only • A more engaged team will better deliver Sigma’s strategy and support our customers more effectively • Health and Safety is embedded in our culture Feedback from team members Employees are confident 91 59 74 Sigma Healthc
Slide 11: Supporting the community
Supporting the community For personal use only “Sigma Healthcare is committed to supporting the community to make a difference to people’s lives”
Slide 12: Brian Jamieson, Chairman
For personal use only Brian Jamieson CHAIRMAN
Slide 13: Mark Hooper, Managing Director and CEO
For personal use only Mark Hooper MANAGING DIRECTOR AND CEO
Slide 14: Overview
Overview For personal use only Update on financial results Current industry issues Our priorities and outlook
Slide 15: FY18 Performance
FY18 Performance For personal use only FY18 Highlights Revenue (A$m) - CAGR 5.8% Underlying# - NPAT (A$m) - CAGR 3.5% Underlying# ROIC - remains a core focus 3900 70.0 20 3700 60.0 18 $3.7 $59.9 16.6% billion 3500 million 50.0 16 3300 40.0 Steady 3100 Down 30.0 Down 14 10.5% from 2900 20.0 17.7% 12
Slide 16: Our Philosophy
Our Philosophy We believe that healthy pharmacy For personal use only partnerships support healthy communities.
Slide 17: Investing for sustainable growth
Investing for sustainable growth For personal use only • Investing in technology solutions and programs to support our customers • Sigma Hospital pharmacy business gaining momentum • Investing in DC network to underpin improved customer service • Maintaining a disciplined approach to investment oppo
Slide 18: Regulatory Environment
Regulatory Environment For personal use only • Continued engagement with Government and other relevant stakeholders • National Medicines Policy (NMP) objectives of timely and efficient access are paramount • Key issues that need to be addressed • Exclusive direct distribution • Margin floor to help
Slide 19: The CSO delivers the National Medicines Policy
The CSO delivers the National Medicines Policy For personal use only 6,200 295M PBS items Regulated scripts/year 24 million 550 supply 5,500 Australians suppliers pharmacies What do CSO wholesalers do? Major Risks • Deliver all PBS products • Stock availability & back-up • Unregulated exclusive dist
Slide 20: Outlook
Outlook For personal use only • General trading conditions remain challenging • Objective is to deliver previous EBIT guidance of $90 million for FY19 • Focus is on long-term sustainable growth • Continued commitment to existing strategy and investment cycle
Slide 21: Thank you
For personal use only Thank you