Paragon Care Limited · ASX:PGC
Paragon Care — Merger or Acquisition (November 2021)
16 slides from Paragon Care's merger presentation, Nov 8, 2021
Slide 1: Paragon Care and Quantum Merger
1 PARAGON CARE AND QUANTUM MERGER Creating a leading medical distribution business across Asia Pacific
Slide 2: Disclaimer
2 DISCLAIMER This presentation has been jointly prepared by Paragon Care Limited (ACN 064 551 426) (Paragon) (ASX: PGC) and Quantum Health Group Limited (ABN 19 003 677 245) (Quantum) (ASX: QTM) and is designed to provide general background information about the proposed acquisition by Paragon of 10
Slide 3: Transaction Overview / Combined Business Overview / Outlook
3 TRANSACTION COMBINED OUTLOOK OVERVIEW BUSINESS OVERVIEW 3
Slide 4: Summary of Merger
4 SUMMARY OF MERGER Paragon Care and Quantum are highly complementary medical distribution businesses • Paragon Care Limited (ASX: PGC) will acquire 100% of the shares of Quantum Health Group Limited (ASX: QTM) by scheme of arrangement (Proposal) • Under the Proposal, each Quantum shareholder will r
Slide 5: Strategic Rationale
5 STRATEGIC RATIONALE Cross-Sell • Cross-sell the combined product portfolio into the high growth Asia Pacific markets Growth in Asia Pacific • Enhance growth opportunities in Asia, particularly for Immulab, in Paragon Care’s diagnostics pillar New Suppliers • Attract new suppliers through a larger
Slide 6: Transaction Overview / Combined Business Overview / Outlook
6 TRANSACTION COMBINED OUTLOOK OVERVIEW BUSINESS OVERVIEW 6
Slide 7: A Five Pillar Structure
7 A FIVE PILLAR STRUCTURE DEVICES DIAGNOSTICS CAPITAL & SERVICE & QUANTUM HEALTH CONSUMABLES TECHNOLOGY GROUP EYE CARE BLOOD BANK UROLOGY, CRITICAL CARE MANAGEMENT MEDICAL IMAGING, ORTHOPAEDICS LABORATORY NEONATAL, RADIOLOGY REPORTING & EQUIPMENT & SERVICES MAINTENANCE 30% 9% 36% 6% 19% FY21 Rev * F
Slide 8: Leading Medical Distribution Business in Asia Pacific
8 LEADING MEDICAL DISTRIBUTION BUSINESS IN ASIA PACIFIC Sales & Marketing Regulatory Approvals Service Maintenance Established long-term relationships with over 100 manufacturers around Supplying hospitals and Logistics Capabilities healthcare facilities in Asia the world Pacific 8
Slide 9: Established Relationships Across Healthcare
9 ESTABLISHED RELATIONSHIPS ACROSS HEALTHCARE GLOBAL MANUFACTURERS LEADING BRANDS ASIA PACIFIC CUSTOMERS 9
Slide 10: Consolidated FY21 Metrics (Pre-Synergies)
10 CONSOLIDATED FY21 METRICS (Pre-Synergies) FY21 FY21 FY21 Consolidated Consolidated Consolidated Revenue1 EBITDA1 NPBT1 $291m $37m $21m Countries FY21 Gearing Australia Consolidated New Zealand Net Debt/EBITDA2 Ratio2 Korea < 2x 24% Thailand Philippines China Vietnam Notes: (1) Proforma numbers ar
Slide 11: Corporate Overview Post Transaction
11 CORPORATE OVERVIEW POST TRANSACTION Major Shareholders (as at 3 Pro Forma Nov 2021)4 PGC QTM Combined Group Number of shares (m)2 351.40 1,128.31 625.58 Board, Management & 29.1% Market capitalisation (m) $101.2 $79.0 $180.2 Vendors Pre Merger Market Capitalisation (%) 56% 44% 100% China Pioneer
Slide 12: Transaction Overview / Combined Business Overview / Outlook
12 TRANSACTION COMBINED OUTLOOK OVERVIEW BUSINESS OVERVIEW 12
Slide 13: Market Opportunity
13 MARKET OPPORTUNITY The developed and emerging Asian economies macro drivers are similarly compelling with higher growth rates. Historical underinvestment in healthcare has lead to a “health debt” which we anticipate will be repaid through wealth from a growing middle class and therefore create th
Slide 14: Market Opportunity
14 MARKET OPPORTUNITY A rise in surgical procedures is increasing the expenditure on medical devices, which may drive hospitals to seek higher quality products and better value for money outcomes A RISE IN SURGICAL PROCEDURES … INCREASED EXPENDITURE ON MEDICAL DEVICES.. … DRIVING HOSPITALS TO SEEK V
Slide 15: Strategic Priorities
15 STRATEGIC PRIORITIES Securing Group Managing Director for merged entity • Paragon Care has commenced the recruitment process for a Group Managing Director with a strong background on growing businesses in the Asia Pacific region. • Phil Nicholl will continue his role as CEO of Paragon Care, Austr
Slide 16: Thank You
16 Shane Tanner Chairman – Paragon Care Limited P: 1 300 369 559 E: shane.tanner@paragoncare.com.au John Walstab Chief Executive Officer – Quantum Health Group Limited P: +61 418 228 118 E: jwalstab@qhealthcare.com.au THANK YOU 16