Paragon Care Limited · ASX:PGC
Paragon Care — Shareholder Meeting (November 2019)
20 slides from Paragon Care's shareholder meeting presentation, Nov 26, 2019
Slide 1: AGM Presentation
AGM Presentation 26 November 2019 ASX | PGC
Slide 2: Executive summary
Executive summary Executing on vision and strategy: Strategic initiatives progressing well in each business vertical, focused on delivering strong organic growth and achieving category leadership Transformation back on track: ERP implementation initially had challenges which have now been resolved,
Slide 3: Vision and Strategy
Vision and Strategy Executing on vision and strategy: Strategic initiatives progressing well in each business vertical, focused on delivering strong organic growth and achieving category leadership Transformation back on track: ERP implementation initially had challenges which have now been resolved
Slide 4: Paragon's strategy on a page
Vision and strategy Paragon’s strategy on a page Mission To achieve category leadership in focus areas to be ANZ’s leading supplier of healthcare & vision equipment and integrated services Organic growth rate EBITDA margin Customer NPS Employee NPS FY21 goals 7%+ 12%+ +5 y.o.y +5 y.o.y Where to play
Slide 5: Dedicated salesforce and agile solutions paying off
Vision and strategy Dedicated salesforce and agile solutions paying off STRATEGY IN ACTION Dedicated national sales and service team for core supplier Excellent service contributes to additions of 4 new hospitals in early 2020 +15% Satisfied customers with Paragon’s agility to customise packs
Slide 6: A continued transition towards premium products
Vision and strategy A continued transition towards premium products STRATEGY IN ACTION Increased focus on higher margin products Focus on higher margin products that offer superior clinical outcomes AUS pain management portfolio Q1 results positive with unit growth of +14% and sales growth of +2
Slide 7: Success of the immulab business continues post acquisition
Vision and strategy Success of the immulab business continues post acquisition STRATEGY IN ACTION Strong traction in the business bouncing back from a disappointing FY19 Strong traction across the business with some new wins (e.g. Sri Lanka blood grouping tender) Stronger collaboration and regul
Slide 8: Total communications a good news story
Vision and strategy Total communications a good news story STRATEGY IN ACTION Integration and Acquisition in Growth being strategic November realised initiatives 2018 PGC strategically acquires Total Strategic initiatives and Strong performance in FY20 Communications in November growth catalysts exe
Slide 9: Transformation update
Transformation update Executing on vision and strategy: Strategic initiatives progressing well in each business vertical, focused on delivering strong organic growth and achieving category leadership Transformation back on track: ERP implementation initially had challenges which have now been resolv
Slide 10: Paragon is nearing the end of a significant transformation period
Transformation update Paragon is nearing the end of a significant transformation period FY18 FY19 FY20 Challenges nearing Clear need for Transformation resolution, positive future integration programme underway outlook PGC had completed 16 acquisitions A whole of business transformation Experienced
Slide 11: IT implementation programme temporarily extended cash cycle
Transformation update IT implementation programme temporarily extended cash cycle Delayed collections as a result of the disruptions with the IT migration resulting in a lower cash balance – program is now back on track with trend expected to reverse through H2 FY20 Cash balance at end of month (A$m
Slide 12: Paragon continues to make strong headway in its transformation
Transformation update Paragon continues to make strong headway in its transformation FY20 YTD (completed) FY20 outlook Business and ✓ New technology added to several businesses ✓ Removal of obsolete/incumbent products from ❑ Continued focus and addition of high margin product review product product
Slide 13: Cost out opportunity size increased to $8M
Transformation update Cost out opportunity size increased to $8M with delivery on track Approximate Area for improvement Improvement opportunity cost reduction • Consolidate the ‘silo’ management structure and rationalise middle management to suit a more Excess management layer focussed and integrat
Slide 14: Commercial update
Commercial update Executing on vision and strategy: Strategic initiatives progressing well in each business vertical, focused on delivering strong organic growth and achieving category leadership Transformation back on track: ERP implementation initially had challenges which have now been resolved,
Slide 15: Paragon's four verticals continue to grow in FY20
Commercial update Paragon’s four verticals continue to grow in FY20 On a year to date basis, total 6.7% revenue flat vs pcp: Devices ~$26m Flat ~$81m vs pcp Excluding Western Biomedical1: Diagnostics ~$8m 4.2% ~$75m 6.2% including Western excluding Western Biomedical 1 Biomedical 1 Capital & ~
Slide 16: Western Biomedical a drag, currently in litigation to rectify
Commercial update Western Biomedical a drag, currently in litigation to rectify Situation Update Corrective actions being pursued ❑ Western Biomedical is a leading supplier of ❑ Litigation proceedings issued by Paragon medical surgical supplies to hospitals in WA, including key multi year contracts
Slide 17: FY20 Outlook
FY20 Outlook Executing on vision and strategy: Strategic initiatives progressing well in each business vertical, focused on delivering strong organic growth and achieving category leadership Transformation back on track: ERP implementation initially had challenges which have now been resolved, busin
Slide 18: There are many reasons to be optimistic about the future
FY20 outlook There are many reasons to be optimistic about the future Strong underlying Underlying top line trajectory continues to outpace broader medical sales growth devices industry growth Costs are coming out with $2m of broader cost out program already Continued cost out realised with remainde
Slide 19: Disclaimer
Disclaimer Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Paragon Care Limited’s current intentions, plans, expectations, assumptions and beliefs about future
Slide 20: Andrew Just, Chief Executive Officer and Managing Director
Andrew Just Chief Executive Officer and Managing Director P: 1 300 369 559 E: [email protected] Paragon Care Limited (ASX:PGC) 20