Slide 1: Annual Results Presentation: Foundations in place for long term growth
Annual Results Presentation Year ended 30 June 2024 FY 2024 Foundations in place for long term growth CEO CFO CVO Richard Fairman Robin Alfonso Paul Higgs
Slide 2: Agenda
Agenda 1 2 3 4 Highlights Financial Strategic Outlook Review Update Annual Results Presentation: Year ended 30 June 2024, FY 2024
Slide 3: Highlights
1 Highlights
Slide 4: Progress against our five-year plan
Highlights 4 Progress against our five-year plan… Revenue £647.3m +9.9% Adjusted EBITDA £127.3m +4.7% Ambition FY 2024 Performance 1 Organic revenue growth of 4% - 8% per annum 4.1% Underlying Like-for-like sales growth adjusted for cyber (c.2.9% reported Like-for-Like) 2 Margin expansion through in
Slide 5: Our well-defined strategy for growth remains unchanged
Highlights 5 Our well-defined strategy for growth remains unchanged… Organic growth • High-quality end-to-end contextualised care focused on clients’ requirements for the animals • Recruitment, retention and development of our highly skilled clinicians • Supported by: − Investment in training and ca
Slide 6: Successful entry in Australia, with a platform established
Highlights 6 Successful entry in Australia, with a platform established… 22 acquisitions (28 sites) completed in the financial year • Our focus is on larger, high quality first opinion companion animals practices with an excellent reputation • Combined historic multiple paid is lower than the UK • I
Slide 7: We are confident of a significant growth opportunity in Australia
Highlights 7 We are confident of a significant growth opportunity in Australia… Attractive market with relatively low levels of corporate consolidation, favourable market dynamics and strong similarities with the UK We have established a presence across Australia Market Recap • Presence in the major
Slide 8: Alongside our entry into Australia, we have laid the foundations for further organic growth
Highlights 8 Alongside our entry into Australia, we have laid the foundations for further organic growth… Invested in new technology with the potential to unlock new revenue opportunities and improve the way we interact with our clients Increased the breadth of expertise and experience on the Board
Slide 9: We continue to pro-actively support the CMA with their market investigation
Highlights 9 We continue to pro-actively support the Competition and Markets Authority (CMA) with their market investigation ...........Progress to date of 2024 Annual results publication Statutory deadline Sep 23 Mar 24 May 24 Jun 24 Jul 24 Aug 24 Sep 24 Oct 24 Nov 24 Dec 24 Jan 25 Feb 25 Mar 25 Ap
Slide 10: Financial Review
2 Financial Review
Slide 11: Financial Summary
Financial Review 11 Financial Summary1 • Revenue +9.9% benefitting from acquisitions and our FY 2024 FY 2023 Variance continued focus on people and care our clients require Revenue £647.3m £588.9m +9.9% • Resilient +2.9% LFL sales growth against a backdrop of a challenging economic environment and C
Slide 12: Strong underlying revenue performance with increased growth from acquisitions
Financial Review 12 Strong underlying revenue performance with increased growth from acquisitions H1 H2 Revenue (£m) 1 Continued organic revenue growth with strong performance from acquisitions 647.3 588.9 554.2 • FY 2024 revenue of £647.3m up 9.9% from £588.9m 510.1 427.8 326.8 • Good performance f
Slide 13: Resilient EBITDA performance underpinned from investment in acquisitions
Financial Review 13 Resilient EBITDA performance underpinned from investment in acquisitions H1 H2 • Adjusted EBITDA increased by 4.7% to £127.3m from £121.6m benefitting from an Adjusted EBITDA1 (£m) increase in revenue and acquisitions but after impact of disruption from cyber and 127.3 121.6 acce
Slide 14: Stable free cash flow underpins our investment ambition
Financial Review 14 Stable free cash flow underpins our investment ambition Net Bank Borrowings (£m) Operating cash conversion We have funding in place to support continued investment • Net bank borrowings increased to £168.0m supporting our strategy of investment in our 180.0 150.0% practices and a
Slide 15: We continue to see good returns from investments and opportunities for further growth
Financial Review 15 We continue to see good returns from investments and opportunities for further growth Returns Healthy balance Committed facilities of Operating cash sheet and free £350m to Feb 2028 conversion c70% Strong Free Cash Flow Leverage 1.54x cash flow Acquisition 5 year average ROIC cir
Slide 16: Strategic Update
3 Strategic Update
Slide 17: Strategic pillar 1 – Providing great care to our clients and their animals
Strategic Update 17 Strategic pillar 1 – Providing great care to our clients and their animals CVS Clinical Governance Framework Launched our new clinical governance framework: • Leading the veterinary profession in improving quality care and helping to drive further improvements in clinical standar
Slide 18: Strategic pillar 2 - We are a great place to work and have a career
Strategic Update 18 Strategic pillar 2 - We are a great place to work and have a career Our focus on people is helping us to recruit and retain more colleagues: Employee Net Promoter Score reduced due to cyber but has improved post year end +14.6 +5.8% +2.3% +0.7 +2.9 +4.8 More Vets (+10.7% More Nur
Slide 19: Strategic pillar 3 – We provide great facilities and equipment
Strategic Update 19 Strategic pillar 3 –We provide great facilities and equipment Relocation: Bristol Vet Specialists We continue to invest in great facilities and equipment to New branch practice: Relocation: Acorn drive organic growth Ambivet Studley Road • £43.1m invested (2023: £45.7m) • 16 new
Slide 20: Strategic pillar 4 – We take our responsibilities seriously
* More accurate reporting methods have been implemented in the year. Strategic Update 20 Strategic pillar 4 – We take our responsibilities seriously Our 2024 Sustainability report reports our progress across our six programmes: • Reduced business energy -2.8% • Reduced total colleague attrition -10%
Slide 21: Outlook
4 Outlook
Slide 22: We have laid the foundations for further growth
Outlook 22 We have laid the foundations for further growth, with CVS well positioned to benefit from the sizeable veterinary services market and continued humanisation of pets • Well-defined strategy with clinical care and people at the centre of this • Progress against and on track with our five-ye
Slide 23: Appendices
Appendices
Slide 24: Reconciliation of adjusted EBITDA
Appendix 2 24 1 1 Reconciliation of adjusted EBITDA (£m) FY 2024 FY 2023 MVT H1 2024 Adjusted EBITDA2 127.3 121.6 5.7 64.5 1. In the year we disposed of our sub-scale Netherlands and Republic of Ireland operations. Adjusted for: We have represented our numbers in 2024 (FY and H1) and 2023 to reflect
Slide 25: Cash flow summary
Appendix 3 25 Summary FY 2024 FY 20232 MVT H1 20242 Adjusted EBITDA3 127.3 121.6 5.7 64.5 1. Acquisition fees and Contingent consideration has been included outside free cash flow and prior period has Working Capital Movements (12.5) (5.8) (6.7) (9.8) been restated Capital Expenditure – Maintenance
Slide 26: Definitions
Appendix 4 26 Definitions Like-for-like sales shows revenue generated from like-for-like operations compared to the prior year, adjusted for the number of working days. For example, for a practice acquired in September 2022, revenue is included from September 2023 in the like-for-like calculations.
Slide 27: Disclaimer
Appendix 5 27 Disclaimer This presentation has been prepared by and is the sole responsibility of the directors of CVS Group plc (the “Company”). This presentation does not constitute a recommendation or advice regarding the shares of the Company nor a representation that any dealing in those shares
Slide 28: Thank You
Thank You CVS Group plc Owen Road, Diss, IP22 4ER 01379 644288 Company No. 06312831