Slide 1: IVE Group Ltd FY18 Results Presentation
IVE GROUP LTD FY18 RESULTS PRESENTATION For personal use only August 27, 2018 Geoff Selig - Executive Chairman Warwick Hay - Managing Director Darren Dunkley - Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS For personal use only 03 Business overview 04 Highlights 07 FY18 financial results - Profit & loss - Capital expenditure - Net debt - Cash flow - Historical performance 13 Business update 19 Outlook statement 21 Appendices IVE GROUP LTD FY18 RESULTS PRESENTATION PAGE 02
Slide 3: Business Overview: World class diversified offering
BUSINESS OVERVIEW World class diversified offering For personal use only IVE is a vertically integrated marketing services and print communications provider. IVE enables its customers to communicate more effectively with A customer experience agency that helps brands prosper through creative concept
Slide 4: Highlights
HIGHLIGHTS For personal use only IVE GROUP LTD FY18 RESULTS PRESENTATION PAGE 04 Page 02
Slide 5: Financial Performance Dashboard (Pro Forma)
FINANCIAL PERFORMANCE DASHBOARD ( PRO FORMA ) For personal use only $695.4M $73.2M EBITDA $35.9M NPATA (1) REVENUE ↑ 32.4% PCP ↑ 32.4% PCP ↑ 39.9% 85.4% PCP FREE CASH CONVERSION 18.3% ROFE (2) 15.5 cents NET Debt EPS $0.252 (4) DPS↑ 22% (3) 1.79x EBITDA ↓ 2.6% PCP PCP ( FULL YEAR ) (1) NPAT excludin
Slide 6: Highlights
HIGHLIGHTS For personal use only • Revenue — Strong organic growth of 6.2% — Excellent success on revenue retention — Continued good momentum on ‘cross sell’ — No material revenue losses • Successfully raised $55.6 million in August 2017 to drive further growth beyond FY18 • Operational milestones m
Slide 7: FY18 Financial Results
FY18 FINANCIAL RESULTS For personal use only IVE GROUP LTD FY18 RESULTS PRESENTATION PAGE 07 Page 05 02 13
Slide 8: Profit and loss
FY18 FINANCIAL RESULTS Profit and loss For personal use only • Revenue increased on PCP due to a combination of strong PRO FORMA organic growth and the acquisitions of Franklin WEB, AIW and SEMA Actual Actual FY2018 FY2017 Variance Variance • Gross profit margin stable to PCP after normalising for t
Slide 9: Capital expenditure to support revenue growth
FY18 FINANCIAL RESULTS Capital expenditure to support revenue growth For personal use only Franklin WEB NSW FY2018 • Total capital expenditure of $52.8 million to establish site $M • FY17 ($10.1 million) • FY18 ($32 million) Franklin WEB NSW 32.0 • FY19 ($10.7 million) Blue Star WEB - new 16 page we
Slide 10: Net debt
FY18 FINANCIAL RESULTS Net debt For personal use only • Net debt to FY18 pro forma EBITDA of $73.2 million is 1.79X Actual FY2018 • Equipment finance borrowings increased due to the $M new printing presses in Franklin WEB NSW and Blue Star WEB, Borrowings - Short Term 15.7 offset by reduction in sen
Slide 11: Strong free cash flow conversion
FY18 FINANCIAL RESULTS Strong free cash flow conversion For personal use only PRO FORMA STATUTORY • Operating cash flow was strong reflecting EBITDA achievement FY2018 FY2018 • Pro forma free cash conversion of 85.4% $M $M • Increase in working capital impacted by SEMA acquisition EBITDA 73.2 63.6 •
Slide 12: Historical performance (pro forma)
FINANCIAL RESULTS - historical performance ( pro forma ) Consistent growth from revenue through to NPATA For personal use only Revenue EBITDA EBIT $M $M $M 800 80 60 700 70 73.2 54.3 695.4 50 600 60 55.2 40 41.4 500 50 496.9 %31 %31 44.9 %31 34.8 400 40 30 382 300 30 20 200 20 10 100 10 0 0 0 FY2016
Slide 13: Business Update
BUSINESS UPDATE For personal use only IVE GROUP LTD FY18 RESULTS PRESENTATION PAGE 13 Page 05 02 20 13
Slide 14: Business Update: Capital Raise, Revenue, Operational Initiatives
BUSINESS UPDATE For personal use only CAPITAL RAISE • Successful $55.6 million capital raise in August 2017 to drive further growth beyond FY18 REVENUE — Strong organic revenue growth ( 6.2% ) — Excellent success on revenue retention — Continued good momentum on ‘cross sell’ revenue — No material re
Slide 15: Operational Initiatives: Kalido
BUSINESS UPDATE For personal use only OPERATIONAL INITIATIVES continued Kalido • Kalido continues growth trajectory both in Australia and Asia • Kalido delivers omni-channel solution for Craveable Brands to enhance the customer experience • Craveable Brands (Oporto, Red Rooster, and Chicken Treat) p
Slide 16: Operational Initiatives: Pareto and Franklin WEB
BUSINESS UPDATE For personal use only OPERATIONAL INITIATIVES continued Pareto • Pareto are the leading data experts in understanding and forecasting trends across the not-for-profit sector • Pareto has developed and implemented a new “big data platform” that will enable all client fundraising data
Slide 17: Other Initiatives
BUSINESS UPDATE For personal use only OTHER INITIATIVES • ‘IVE 360’ company wide interactive workplace health and safety platform launched • In addition to existing quality and environmental accreditation, ISO 27001 accreditation was attained to significantly enhance our customers’ data security • E
Slide 18: Acquisitions
BUSINESS UPDATE For personal use only ACQUISITIONS SEMA • Completed September 2017 • Integration into Blue Star’s existing data driven personalised communications division, Blue Star DIRECT • Integration across 3 states largely complete in H2, with final phase to complete in Q1 of FY2019 • Seamless
Slide 19: Outlook Statement
OUTLOOK STATEMENT For personal use only IVE GROUP LTD FY18 RESULTS PRESENTATION PAGE 19 Page 05 02
Slide 20: Continued year on year growth in FY19
OUTLOOK STATEMENT Continued year on year growth in FY19 For personal use only • Continued good momentum across the Group positions us well for year on year revenue and earnings growth • The diverse and compelling value proposition we take to market continues to underpin strong revenue retention and
Slide 21: Appendices
APPENDICES For personal use only IVE GROUP LTD FY18 RESULTS PRESENTATION PAGE 21
Slide 22: Appendix A: Non-IFRS financial information
APPENDIX A Non-IFRS financial information For personal use only 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 restructuring and acquisitions
Slide 23: Appendix B: Statutory balance sheet, statutory to pro forma
STATUTORY Actual Actual APPENDIX B June 2018 June 2017 $’M $’M Statutory balance sheet, CURRENT ASSETS Cash and cash equivalents 22.3 23.9 statutory to pro forma For personal use only Trade receivables, prepayments and others 126.0 101.3 Current tax receivable 0.0 3.0 NPAT reconcilliation Inventorie
Slide 24: Appendix C: Disclaimer
APPENDIX C Disclaimer For personal use only No recommendation, offer, invitation or advice disseminate any updates or revisions to this information over time. Any forward-looking statements, This presentation contains general information about the activities of IVE Group Limited (IVE) including proj
Slide 25: IVE Group Ltd FY18 Results Presentation
For personal use only IVE GROUP LTD FY18 RESULTS PRESENTATION