Paragon Care Limited · ASX:PGC
Paragon Care — Shareholder Meeting (November 2020)
18 slides from Paragon Care's shareholder meeting presentation, Nov 18, 2020
Slide 1: AGM Presentation
1 AGM PRESENTATION 18 November 2020
Slide 2: Executive Summary
2 PARAGON CARE EXECUTIVE SUMMARY Execution of strategy driving Focus on new growth Balance sheet re-set Positive external trends improved profitability opportunities Delivered over $6m in annualised The impairments in FY20 have created Capitalise on competitive advantages Growth in 2H FY21 driven by
Slide 3: Effective Implementation of Strategic Review
3 PARAGON CARE EFFECTIVE IMPLEMENTATION OF STRATEGIC REVIEW STRATEGIC REVIEW OBJECTIVE FY20 FY21 To unlock internal capability Internal silos Unified management team with incentives to promote collaboration and group performance To streamline operations and consolidate facilities 14 discrete busines
Slide 4: FY20 Financial Performance
4 FY20 FINANCIAL FY21 STRATEGY Q 1 FY21 UP D ATE AND P ERFO RMANCE O UTLO O K Paragon Care Limited (ASX:PGC) 4
Slide 5: FY20 Results Impacted by Global Pandemic and Structural Changes
5 PARAGON CARE FY20 RESULTS IMPACTED BY GLOBAL PANDEMIC AND STRUCTURAL CHANGES • Group revenue from continuing operations down 2% - impacted by temporary closure of hospital elective surgery due to global pandemic • Normalised EBITDA from continuing operations down 19% reflecting significant organis
Slide 6: FY20 in Review
6 PARAGON CARE FY20 IN REVIEW REVENUE EBITD A NP AT EP S CONTINUING $231.7m $22.9m $(71.6)m (21.2)c OPERATIONS -2% -19% REPORTED $231.8m $(62.1)m $(77.3)m (22.9)c -2% -320% Paragon Care Limited (ASX:PGC) 6
Slide 7: FY20 Revenue Performance by Pillar
7 PARAGON CARE FY20 REVENUE PERFORMANCE BY PILLAR DEVICES ~$75m 2% DIAGNOSTICS ~$23m 1% CAPITAL & CONSUMABLES ~$106m 11% SERVICE & TECHNOLOGY ~$28m 66% Paragon Care Limited (ASX:PGC) 7
Slide 8: FY21 Strategy
8 FY20 FINANCIAL FY21 STRATEGY Q 1 FY21 UP D ATE AND P ERFO RMANCE O UTLO O K Paragon Care Limited (ASX:PGC) 8
Slide 9: Growing Our Share in a ~A$9bn Industry
9 PARAGON CARE GROWING OUR SHARE IN A ~A$9bn INDUSTRY >4% AUSTRALIA AND NEW ZEALAND Industry continues to grow, driven by strong tailwinds Per year ~$9bn Total market opportunity 1 , 2 +3% Increasing proportion of total population over 64 +4% Increasing proportion of chronic disease as a percentage
Slide 10: Market Share in Key Paragon Verticals
10 PARAGON CARE MARKET SHARE IN KEY PARAGON VERTICALS 7.1% 2020 5.0% 4.0% 3.3% market share 1, 2 CAP ITAL AND SERVICE AND D EVICES D IAGNO STICS CO NSUMABLES TECHNO LO GY P a ra g o n re ve n u e $75m $23m $106m $28m (continuing business) Core target segment sizes 1 ~$1,500m ~$700m ~$1,500m ~$700m N
Slide 11: Clear Competitive Advantages
11 PARAGON CARE CLEAR COMPETITIVE ADVANTAGES Aus/NZ distribution footprint Well-established distribution relationships We have a distribution footprint across Australia We currently have long term relationships with and New Zealand, with comprehensive sales & >100 manufacturers around the world, sup
Slide 12: FY21: Focus on New Growth Opportunities
12 PARAGON CARE FY21: FOCUS ON NEW GROWTH OPPORTUNITIES Grow supply footprint • Competitive market offering leading to ongoing inbound enquires as elective surgery opens • Internal focus on cross division sales collaboration Capitalise on existing local manufacturing capability • Order for swab test
Slide 13: Q1 FY21 Update and Outlook
13 FY20 FINANCIAL FY21 STRATEGY Q 1 FY21 UP D ATE AND P ERFO RMANCE O UTLO O K Paragon Care Limited (ASX:PGC) 13
Slide 14: Q1 FY21: Financial Highlights
14 PARAGON CARE Q1 FY21: FINANCIAL HIGHLIGHTS Stable revenue Lower margin sales mix Lower opex Q1 revenue of $57m, down only GP margins of 37.5%, down from 39.9% Underlying operating expenses 4.7% on pcp in a disrupted and on pcp, due to lower margin sales down $1.5m on pcp with expected distracted
Slide 15: Solid Foundation for Future Growth
15 PARAGON CARE SOLID FOUNDATION FOR FUTURE GROWTH ACHIEVEMENTS TO DATE OUTLOOK – FY21 & BEYOND $6m annualised reduction in costs • Revenue to be in line for FY21 and >5% in FY22 ERP stabilization • Gross profit margins >38% from 2H FY21 Warehouse rationalization • Target 15% EBITDA margins fr
Slide 16: Corporate Overview
16 PARAGON CARE CORPORATE OVERVIEW BOARD OF DIRECTORS Sh a n e Ta n n e r Ge o ff Sa m O AM FINANCIAL INFORMATION Non-Executive Chairman Non-Executive Director • Co-founder of Paragon Care • Over 35 years’ experience in the health sector Share price (17 -Nov -20) $0.215 • Extensive commercial and fi
Slide 17: Disclaimer
17 PARAGON CARE DISCLAIMER Summary information This Presentation contains summary information about Paragon Care and its activities current as at 17 November 2020. The information in the Presentation is of a general nature and does not purport to be complete or comprise all information which a share
Slide 18: Thank You
18 Shane Tanner Chairman P: 1 300 369 559 E: shane.tanner@paragoncare.com.au Phil Nicoll Chief Executive Officer P: 1 300 369 559 E: phil.nicoll@paragoncare.com.au THANK YOU Paragon Care Limited (ASX:PGC) 18