Ive Group Ltd. · ASX:IGL
Ive — H1 FY2020 Earnings Presentation
17 slides from Ive's earnings presentation, Feb 26, 2020
Slide 1: FY20 H1 Results Presentation
IVE Group Limited FY20 H1 Results Presentation ASX : IGL 26 February 2020
Slide 2: We are forever seeking new ways to navigate the marketing maze
We are forever seeking new ways to navigate the marketing maze
Slide 3: Contents
Contents 4 Business overview 7 Financials 10 Business update 12 Outlook statement 13 Appendices
Slide 4: Our integrated service
so our clients go further, can We too . Our integrated service Creative Data-Driven Services Communications offering Integrated Marketing Founded in 1921, we are Australia’s leading holistic marketing company. With an unmatched breadth and depth of offering, we guide our clients from idea to executi
Slide 5: Creative Services, Data-Driven Communications, Production & Distribution
Creative Data-Driven Services Communications Visual CX data and insights Motion Marketing technology Digital Omni-channel deployment Personalised Retrieval and enrichment Structural Tele-fundraising Production Integrated & Distribution Marketing Print Resource management Retail display Supply chain
Slide 6: Financial performance dashboard
Financial performance dashboard (pro forma and pre AASB16) REVENUE EBITDA NPAT $360.2m $40.1m $17.6m down 4.1% on PCP down 7.8% on PCP down 7.3% on PCP EBITDA MARGIN INTERIM DIVIDEND Gross profit margin consistent with FY19 full year 11.1% 8.6c consistent with per share FY19 full year fully franked
Slide 7: Profit & Loss (pre AASB16)
FINANCIALS Pro Forma (ex restructure & acquistion) Profit & Loss (pre AASB16) Post AASB16 Pre AASB16 Actual Impact Actual Actual Variance Variance H1 H1 H1 H1 $M % FY2020 FY2020 FY2020 FY2019 ● Revenue decrease of 4.1% Revenue 360.2 0.0 360.2 375.6 —15.5 —4.1% — Impacted by softer macro- economic co
Slide 8: Net debt, capital expenditure and balance sheet
FINANCIALS Pre AASB16 Net debt, capital Dec 19 Jun 19 $M $M expenditure and Borrowings — short term 7.2 6.3 Borrowings — long term 166.6 168.9 balance sheet Borrowings* — Sub Total Cash 173.8 —23.7 175.2 —31.5 ● Net debt increase from June 2019 reflects seasonal Net Debt 150.1 143.7 increase in work
Slide 9: Cashflow and dividend
FINANCIALS Pre AASB16 Cashflow and Pro Forma IFRS H1 FY2020 H1 FY2020 $M $M dividend EBITDA Movement in NWC/ 40.1 —13.1 34.2 —10.8 non cash items in EBITDA ● Pro forma free cash conversion of 67.4% Free Cash Flow 27.0 23.4 ● Operating cash flow impacted by seasonal increase Capital expenditure (net)
Slide 10: Salmat Marketing Solutions & Reach Media New Zealand
B U S I N E S S U P D AT E Salmat Marketing Solutions & Reach Media New Zealand The acquisition of Salmat Marketing Solutions and Reach Media New Zealand was completed on January 1, 2020 for a purchase consideration of $25.4 million. The acquisitions were fully debt funded and are expected to be acc
Slide 11: Salmat Marketing Solutions & Reach Media New Zealand — cont.
B U S I N E S S U P D AT E Salmat Marketing Solutions & Reach Media New Zealand — cont. Update since completion ● The acquisition has been extremely well received by all Salmat/Reach customers, many of whom were existing IVE customers ● Salmat and Reach staff have responded very positively ● The acq
Slide 12: Outlook
O U T L O O K S TAT E M E N T Outlook ● Full year FY20 Pro Forma EBITDA1 guidance is in the range of $75-79M ● Continuing softer macro-economic conditions impacting revenue, particularly in retail sector ● The impacts of the COVID-19 virus on our Asian supply chain and broader customer base remain u
Slide 13: Appendix A: Non-IFRS financial information
APPENDICES Appendix A Non-IFRS financial information In this Results Presentation, certain non-IFRS financial information has also been included to allow investors to understand the underlying performance of IVE. The Directors believe that the results before adoption of AASB16, restructuring and acq
Slide 14: Appendix B: IFRS balance sheet
Appendix B IFRS balance sheet Post AASB16 AASB16 Impact Pre AASB16 Pre AASB16 Dec 19 Dec 19 Dec 19 Jun 19 $M $M $M $M Current Assets Cash and cash equivalents 23.7 0.0 23.7 31.5 Trade receivables, prepayments and others 120.8 0.0 120.8 120.6 Inventories 61.0 0.0 61.0 66.0 Total Current Assets 205.5
Slide 15: Appendix C: IFRS profit and loss
Appendix C IFRS profit and loss Post AASB16 Pre AASB16 AASB16 Actual Actual Actual Variance Variance Impact H1 H1 FY2020 H1 FY2020 FY2019 $M % FY2020 Revenue 360.2 0.0 360.2 375.6 —15.5 —4.1% Gross Profit 173.4 1.4 172.0 180.9 —8.9 —4.9% % of Revenue 48.2% 47.8% 48.2% —0.9% EBITDA 45.4 11.1 34.3 42.
Slide 16: Appendix D: Disclaimer
Appendix D Disclaimer No recommendation, offer, Disclaimer over time. Any forward-looking statements, implied in any forward-looking statements invitation or advice including projections, guidance on future in this presentation will actually occur. In No representation or warranty, express or revenu
Slide 17: IVE Group Limited
IVE Group Limited ABN 62 606 252 644 Level 3, 35 Clarence Street Sydney NSW 2000 +61 2 8020 4400 Geoff Selig Executive Chairman Matt Aitken Chief Executive Officer Darren Dunkley Chief Financial Officer ivegroup.com.au Authorised by the IVE Board Contact: Richard Nelson Investor Relations richard.ne