Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — Citi Group Annual Investor Conference 2020
15 slides from Sigma Healthcare's conference presentation, Oct 14, 2020
Slide 1: Citi Group Annual Investor Conference
For personal use only Citi Group Annual Investor conference 14 – 15 October 2020 Gary Woodford Corporate Affairs Manager
Slide 2: Important notice
Important notice For personal use only This presentation for Sigma Healthcare Limited and its subsidiaries (Sigma Group) is designed to provide: • an overview of the financial and operational highlights for the Sigma Group for the half year period ending 31 July 2020; and • a high level overview of
Slide 3: Overview of 1H21
Overview of 1H21 For personal use only Financial Operational Business Capital People and Performance Update Transformation Management Culture Wholesale Sales (ex-CW Team member 1H21 Underlying & Hep-C)** up 15.1% Project Pivot – has Sale and leaseback of EBITDA* of $34.1m delivered $86.8m two Distri
Slide 4: Sigma Retail: Momentum continues
Sigma Retail Momentum continues For personal use only Strong pipeline for growth Support to ~ 600 Brand Pharmacy Members provided remotely Expanded Like for Like Independent Sales up 9.5% Pharmacy offering >18% of Electronic consumer Prescriptions pharmacy enabled spend is in our brands* * IBIS Worl
Slide 5: Expansion Businesses: Diversified growth
Expansion Businesses Diversified growth For personal use only Hospitals Contract Logistics (3PL) 22% Sales growth* - well above market New market o Sigma national market share circa o A number of new service contracts agreed 10% and growing, with operational and commenced over the past 6-months prog
Slide 6: Expansion Businesses continued
Expansion Businesses continued Diversified growth For personal use only Medication Packaging Services (MPS) Medical Industries Australia (MIA) o Three TGA approved facilities o Business acquired by Sigma in early 2018 o Process under way to upgrade integrated o Strong sales growth across all PPE cat
Slide 7: Regulatory update
Regulatory update Agreements finalised For personal use only 7th Community Pharmacy Agreement Community Service Obligation Deeds (7CPA) (CSO) o New five year agreement that runs until June o New four year agreement running to June 2025 2024 o The introduction of a pricing floor, combined o Provides
Slide 8: Project Pivot - on target
Project Pivot - on target For personal use only o Actions taken to achieve $97.5 of targeted benefits to 30 September 2020, up from $86.8m at 31 July 2020 o On track to deliver $100m annualised benefits by the end of FY21 as originally announced o Around 60% of this was the efficient removal of cost
Slide 9: Transformation delivering a stronger business
Transformation delivering a stronger business For personal use only Our last 12-months The next 12-months o Emerge with a strong Balance Sheet with net debt Delivered organic peaking around $80 - $100m in mid-2021 and growth well above investment program largely complete market Remained on Regulator
Slide 10: EBITDA Target - How do we get there?
EBITDA Target - How do we get there? For personal use only No acquisitions are assumed in reaching the target and realistic growth targets have been set FY22 2H21 - Full year benefit of Project Pivot - Incremental Project Pivot gains FY23 1H21 - Full year of CW OTC sales - Wholesale and Retail sales
Slide 11: Thank you
For personal use only Thank you
Slide 12: Appendix
For personal use only Appendix
Slide 13: Resilient 1H21 through challenging environment
Resilient 1H21 through challenging environment For personal use only NEW ACCOUNTING STANDARD Impact of AASB16 OLD ACCOUNTING STANDARD REPORTED UNDERLYING REPORTED UNDERLYING 1H21 1H21 1H21 1H20 % Change 1H21 1H21 Sales Revenue 1,642,162 1,642,162 1,877,598 -12.5% 1,642,162 1,642,162 o Total Revenue
Slide 14: Reported to Underlying Reconciliation
Appendix 1 Reported to Underlying Reconciliation For personal use only 31 July 2020 31 July 2019 $000 $000 Reported EBIT 11,852 12,688 Add: Reported depreciation and amortisation 14,548 12,606 • Reported EBITDA Attributable to Owners Is Reported EBITDA* 26,400 25,294 $25,199 (Reported EBITDA minus N
Slide 15: COVID-19: Sigma self sustained with robust plans
Appendix 2 COVID-19: Sigma self sustained with robust plans For personal use only • Business recognised as an Essential • COVID-19 Working Group introduced in • No Covid-19 related financial support Service March to implement policies, programs and required to maintain operations – no Job changes to
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