Sigma Healthcare Ltd · ASX:SIG
Sigma Healthcare — Investor Presentation (March 2016)
19 slides from Sigma Healthcare's investor presentation, Mar 30, 2016
Slide 1: Investor Update
Investor Update Mark Hooper ‐ CEO & Managing Director Jeff Sells – Chief Financial Officer Gary Dunne – Chief Operating Officer November 29th 2011
Slide 2: Outline
Outline 1. Sigma Strategy – Mark Hooper 2. Financial Update – Jeff Sells 3. Operational Progress – Gary Dunne 4. Distribution Centre Tour 5. Refreshments 2
Slide 3: Strategy
Strategy • Initial strategy signed off by Sigma Board in First Half 2011 • Review of key outputs completed in October 2011 including – Assumptions around future industry conditions (including competitors) – Identification of Industry Critical Success Factors (CSFs) – Comparative SWOT analysis – Sigm
Slide 4: Strategy in Action
Strategy in Action • The focus remains on our core Wholesaling and Retail operations • In practice, this means: – Continually improving the core parts of our business (People and Performance, Logistics and Inventory Management, Customer Segmentation, Retail, Merchandising, Systems and Analysis) – Id
Slide 5: People and Culture
People and Culture • The roles and responsibilities of the Executive Management team have been expanded and restructured to support and reflect our new strategy, culture and vision. • “The way we do things at Sigma” has been reinvigorated and redesigned with an emphasis on embedding our cultural vis
Slide 6: Operations Re-Structure
Operations Re‐Structure • Chief Operating Officer – Gary Dunne appointed in July 2011 – Extensive experience and knowledge in retail operations including Coles, Woolworths, Aldi and more recently at RedGroup and Clive Peeters • Oversees an integrated team with unified goals and customer focus
Slide 7: Industry Outlook
Industry Outlook • Met the challenges from Pfizer exclusive model and initial impact from 2010 reforms • Further challenges ahead – PBS reform (April 2012 and ongoing) – minimum of 23% cut in over 180 molecules from April 2012 – may lead to no PBS growth in 2012 or potentially slightly negative – ma
Slide 8: Key events coinciding around April 2012
2012 • 2 key events coincide around April 1) Pfizer’s Lipitor comes off patent ‐ Positive • no impact from 16% price reduction because Sigma does not distribute Pfizer products • additional sales of new generic versions – (expected February to June) 2) 23% minimum price disclosure ‐ Negative • gener
Slide 9: Summary
Summary • Sigma continues to rebuild. H1FY12 performance reflected market share gains and first steps in rebuilding process • Now implementing strategic phase ‐ focusing on organisation’s culture, people and systems. Steady progress • Results for the second half have continued to be solid, however,
Slide 10: Financial Update
Financial Update Jeff Sells Tuesday 29th November 2011
Slide 11: H1 2012 Income Statement Summary
H1 2012 Income Statement Summary • First half had some A$m 2012 H1 2011 H1* Change benefit from one off Revenue 1372.3 1406.5 ‐34.2 gains (approx $4m) EBIT 38.0 24.5 13.5 Net Financing Costs 2.0 ‐37.7 39.7 • Not repeated in second half Tax Expense/benefit ‐12.1 4.0 ‐16.1 NPAT 27.9 ‐9.2 37.1 Disconti
Slide 12: Second Half Trading Update
Second Half Trading Update • H2 2012 sales and gross profit trading in line with expectations • H2 2012 will benefit from full 6 months contribution from PAL/IPAG and seasonality effect • Not expecting any other significant market share gains – some swings and roundabouts • Operating costs broadly i
Slide 13: H2 2012 Cash Flow
H2 2012 Cash Flow • H1 2012 produced strong operational cash flow of $106m – Function of seasonal factors and improvements in DSO • Historically, H2 is weaker in cash flow due to year end inventory build/strong December sales – H2 2012 will follow similar pattern, plus $17m dividend payment in this
Slide 14: Operational Progress
Operational Progress Gary Dunne Tuesday 29th November 2011
Slide 15: Chief Operating Officer – Background
Chief Operating Officer – Background Woolworths: • Operations - Area Manager, Operations Manager • Logistics & I.T - Automatic Replenishment Blue Chip: 83-99 – 17 years Operations • National Implementation Manager focus, Start up and ALDI: • Operation Director, Store formats, Culture, all operationa
Slide 16: Healthcare Strategic Framework
Healthcare Strategic Framework SKILLS & STRATEGY STRUCTURE MEASUREMENT COMPETENCIES • Clear Vision for • Structure business to • Up skill current team • Integrated organisation execute the strategy. measurement across the • Acquire talent business • Clear Roadmap across •Business model the organisat
Slide 17: 4 key strategic planks – Healthcare
4 key strategic planks – Healthcare “Customer Value Proposition” 1. 2. 3. 4. Rebuild the Reshape the Integrate the Preferred retail brands warehouse team for Wholesale Amcal & and logistics optimal partner of Guardian business performance choice Retail focus Cost focus Talent focus Wholesale Focus I
Slide 18: Sigma to focus on leverage
Sigma to focus on leverage Retail sales of similar size: We are $4.2 Billion at retail: 1. Myer $3.2 Billion $2.8 billion at Wholesale: 2. David Jones $2.1 Billion Combine healthcare assets 3. JB -hifi $2.9 Billion and use size in more dynamic ways with our customers and 4. Channel 10 $1.1 Billion p
Slide 19: Initiating Change – 2012/13
Initiating Change – 2012/13 Reposition Sigma 1. New formats Reinvigorate and grow 2. Retail brand of choice 1. New Customer Value 3. Wholesale brand of choice Immediate focus Proposition 4. Compelling & Sophisticated 2. Transformational change suite of back-end solutions 1. Set the strategy 3. Suppl
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