Slides
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Solving problems for healthcare FY 24 Preliminary Results Presentation
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Important Notice This presentation has been prepared solely in connection with the financial results of Uniphar plc (the "Company") for the period ended 31 December 2024 and should be read in conjunction with the announcement of the full year results of the Company for the period ended 31 December 2024, released 25 February 2025 (the “2024 Full Year Results Announcement”). For the purposes of this notice, the presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company, the question-and-answer session that follows that oral presentation, hard and electronic copies of this document and any materials distributed at, or in connection with, that presentation. This presentation is not intended to and does not constitute or form part of any offer, or invitation, or solicitation of any offer to issue, underwrite, subscribe for, or otherwise acquire or dispose of any shares or other securities of the Company in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation or warranty, express or implied, is given by or on behalf of the Company, its group companies, or any of their respective shareholders, directors, officers, employees, advisers, agents or any other persons as to the accuracy, completeness, fairness or sufficiency of the information, projections, forecasts or opinions contained in this presentation. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions in this presentation and neither the Company and its group companies nor any of their respective employees, officers, directors, advisers, representatives, agents or affiliates, shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Certain information contained in this presentation has been obtained from published and non-published sources prepared by other parties, which in certain cases have not been updated to the date hereof. While such information is believed to be reliable for the purpose used in this presentation, the Company does not assume any responsibility for the accuracy or completeness of such information and which has not been independently verified by the Company. Except where otherwise indicated herein, the information provided in this presentation is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. This presentation contains certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of the Company and its group companies. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these projections and forward-looking statements. Any of the assumptions underlying these projections and forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the projections and forward- looking statements may not actually be achieved. Recipients are cautioned not to place undue reliance on any projections and forward-looking statements contained herein. Except as required by law or by any appropriate regulatory authority, the Company and its group companies undertake no obligation to update or revise (publicly or otherwise) any projection or forward-looking statement, whether as a result of new information, future events or other circumstances. Your attention is drawn to the ‘Principal Risks and Uncertainties’ set out in the Company’s 2024 Preliminary Results. The risks described, however, are not exhaustive and there may be other risks which may have an adverse effect on the business, financial condition, results or future prospects of the Company. The 2024 financial information set out in this document is audited. The comparative 2023 financial information set out in this document has been extracted from the audited financial statements of Uniphar plc for the financial year ended 31 December 2024. For further information see www.uniphar.com 2
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Agenda 3 01 02 03 Overview & Highlights Divisional Review Investment Update 04 05 Financial Review Capital Allocation & Investment Case Ger Rabbette Chief Executive Officer Tim Dolphin Chief Financial Officer Brian O'Shaughnessy Chief Commercial Officer Dermot Ryan Chief Operating Officer 06 Q&A Call Participants
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Overview & Highlights 4
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Product approval Pricing and payment Access key opinion leaders Finding patients Educating key stakeholders Patient access to products Getting product to patients Healthcare manufacturers Medtech 7 of the top 10 are Uniphar clients Large pharma 9 of the top 10 are Uniphar clients Biotech We are the leading global player in Cell and Gene access Healthcare stakeholders Patients Doctors / consultants Hospital / retail pharmacies Regulatory agencies Government & other payors Solving problems for healthcare 5
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10 32 59 67 87 98 116 123 2010 2018 2019 2020 2021 2022 2023 2024 Uniphar’s evolution over the past decade 6 Low margin to high margin Gross margin has increased from 4% to 15% Local to global Global presence, serve 160+ countries Mass market to Speciality Across all divisions €10m to €123m EBITDA Under the current leadership team Wholesale Retail MedTech Expanded Access Commercial -isation Uniphar Capabilities2013 2025
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A diversified international healthcare services provider €2.8bn 160+ 4 200 Uniphar at a glance 7 Group Gross Profit bridge Supporting 200 multinational pharmaceutical and medtech manufacturers across three divisions Active in Europe, North America, APAC and MENA Delivering to 160+ countries In 2024, the Group generated revenue of c.€2.8bn, gross profit of €427.6m and EBITDA of €123.5m FY’23 FY‘24 SC&R Medtech Pharma M&A FX €5m €9m €18m €5m €1m 8.2% organic growth €390m €428m Organic gross profit growth across all divisions
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Financial Highlights 8 Strong progress towards medium term goal Organic gross profit growth of 8% ROCE of 15.2% in line with our 12-15% target2 Leverage of 1.5x EPS growth of 12% FCF conversion of 106%1 €35m share buyback announced 1. Free cashflow is defined as EBITDA, less investment in working capital, less maintenance capital expenditure, less principal and interest payments on leases, less foreign exchange translation adjustment divided by EBITDA 2. See slide 35 €200m EBITDA target by 2028. At least 80% of growth to be organic
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People & Workplace Community Involvement Environment & Sustainability Governance Quality & Compliance Business Solutions & Innovation Sustainability Highlights 9 Sustainability is at the core of what we do and is deeply embedded in our business strategy Five sustainability pillars Uniphar’s rating of AAA was reaffirmed Maintained CDP ‘B’ Rating Uniphar ranks 3rd out of 588 healthcare companies globally
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Divisional Review 10
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3 divisions serving our healthcare customers 11 Ireland Mass market Infrastructure play Global Speciality High growth Europe Speciality High growth 46% % of Group gross profit % of Group gross profit 28% % of Group gross profit 26%
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How Uniphar SC+R wins 12 Ireland only platform Leading player in the Irish pharmaceutical market Vertically integrated across wholesale and retail channel Strong moat, high barriers to entry, highly cash generative Moving up the value chain into own brand consumer, partnerships and in-licencing Ireland Mass market Infrastructure play 54% wholesale market share Buying groups Franchise groups Direct pharmacy ownership Consumer brands Rx In-licensing 28% Retail pharmacy share1 Global manufacturer relationships Uniphar Wholesale infrastructure Irish pharmacy channel 46% % of Group gross profit 1. Market share of retail pharmacy dispensed items from our owned, franchised and symbol group stores
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13 • We continue to win market share in a growing Irish wholesale market • Strong wholesale growth across all Rx categories and consumer • Symbol group expanded by 16 stores to 445 • All four of our retail brands (Hickey’s, McCauley, Allcare and Life Pharmacy) featured in the top 12 consumer brands in Ireland2 • Fully realised the targeted synergies from the acquisition of McCauley Leader in the Irish pharmaceutical market. Supported by a network of 445 pharmacies1 Financials Gross Profit Allocation Market shares Gross Profit Growth Revenue €1,844m Gross profit €197m 1. 445 pharmacies includes owned, franchised and symbol group members 2. CXi Customer Experience 2024 survey 3. Market share of retail pharmacy dispensed items from our owned, franchised and symbol group stores Reported 5.5% Organic 2.7% Supply Chain 44% Retail 56% Wholesale market share c.54% Retail market share3 28% Growth drivers during 2024
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How Uniphar Pharma wins 14 Global platform Leveraging global capabilities and a common platform to deliver high value solutions to manufacturers and hospitals We enable patient access to medicines amid shortages, through expanded access and unlicenced routes, and by facilitating commercial and global availability Huge global market opportunity Global Speciality High growth Global sourcing capability Common Uniphar infrastructure Global hospital channel Services for Pharma/Biotech Customers Services for Hospitals Management of shortages, and access to unlicensed medicines including specialty medicines Enabling patient access to specialty medicines, both pre and post regulatory approval % of Group gross profit 28%
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15 • Double-digit organic growth in On Demand and Pharma Services • Leading global sourcing platform meeting high demand for shortages and unlicenced medicines • Record number of Exclusive Access Programmes, market leader in Cell & Gene Therapy • European launch capability offering comprehensive end-to-end services Providing access to unlicensed and specialty medicines globally Financials Gross Profit Split 2024 KPI’s Gross Profit Growth Revenue €659m Gross profit €122m Reported 17.8% Organic 17.6% On Demand 60% Pharma Services 40% # of unlicenced/ difficult to source medicines delivered 14.3k New Exclusive Access Programmes 17 Growth drivers during 2024
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How Uniphar Medtech wins 16 European platform Full service medical device commercialisation model Expanding into new regions, specialties and services Multi-decade relationships with leading manufacturers Focus on consultant-led decision making High margin, high growth, long-term relationships Europe Speciality High growth Leading medtech manufacturers High value specialisms; Orthopedics Critical Care Interventional Diagnostic Imaging Surgical Ophthalmology Hospital consultants Global manufacturer relationships Uniphar healthcare professionals European hospital channel % of Group gross profit 26%
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17 • Strong organic growth across all regions • Growth in all specialities with particular strength in Interventional, Orthopaedics and Surgical • Increased service offering into the UK market. Other European service expansion underway • Leveraging existing geographic footprint to travel with specialities; Diagnostic Imaging into Benelux • Organic expansion into Switzerland during the year Sales, marketing and distribution solutions for manufacturers Financials Number of Manufacturers Gross Profit Growth Revenue €268m Gross profit €109m Reported 9.1% Organic 9.1% 2 or more countries 74 3 or more countries 17 Growth drivers during 2024
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Investment Update 18
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Infrastructure for €200m EBITDA and beyond 19 Dublin, Ireland Lelystad, The Netherlands North Carolina, US Midlands, UK US expansion: • Modern 65K square feet facility • 3,000 ambient storage locations • 300 cold chain pallet positions • Operational 2024 UK expansion: • BREEAM Excellent standard distribution centre • 110K square feet • 10,000 ambient storage locations • 800 cold chain pallet positions • Operational 2026 European expansion: • BREEAM Excellent standard distribution centre • 85K square feet • 10,000 ambient storage locations • 500 cold chain pallet positions • Operational 2025 Ireland expansion: • LEED Gold standard distribution centre • 330k square feet • 440,000 ambient storage locations • 1,200 cold chain pallet positons • Operational 2026
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Flagship Irish Distribution Facility 20 Return 12%-15% ROCE within 5 yrs, growing thereafter Drivers Aging population market growth at ≈2% annually Doubled our market share in 10 years to 50%+ Transform customer experience Distribution Capabilities Reduces direct pick costs by 50% & deliver better efficiency Pharmacy Enables Pharmacy of the Future with enhanced service offerings Capacity Futureproof capacity by >2x Market Share Growth Transforms the customer experience and will help drive further market share growth
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Irish Distribution Facility - Project Timeline 21 Dec 24 Mechanical install completed Mar-Sept-25 Warehouse management system inbound/ outbound testing & commissioning Sept-25 Full performance test Feb-26 Regulatory storage & distribution licensing process July-26 Go live commences Dec-25 ERP testing completion Apr-25 Regulatory fridge audit
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Financial Review 22
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Financial Highlights 23 Gross profit growth across all three divisions 9.6% % Growth (€m) FY’24 FY’23 Reported Constant currency1 Organic2 Revenue 2,770.4 2,553.1 8.5% 8.3% Gross profit 427.6 390.0 9.6% 9.4% 8.2% Gross profit margin 15.4% 15.3% EBITDA 123.5 116.0 6.4% 6.4% Adjusted EPS (Reported)3 20.5 18.3 11.8% Net debt/EBITDA 1.5x 1.6x 1. Constant currency growth is calculated by applying the prior period’s actual exchange rate to the current period’s result 2. Organic growth calculated as the growth from restated prior period gross profit to current period gross profit as a % of the restated prior period value. The restatement to the prior year value is to include the corresponding prior period performance of acquisitions and exclude the prior period performance of disposal s 3. Adjusted EPS calculated based on weighted average shares in issue in December 2024 of 273.0m (December 2023: 273.0m). Performed in line with guided ROCE 15.2% Strong overall EBITDA growth 6.4%
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Divisional Gross Profit 24 Diversified healthcare services business focused on higher margin opportunities FY’24 €’m FY’23 €’m Growth % Organic Growth % Gross Margin 197.1 186.9 5.5% 2.7% 10.7% 108.9 99.9 9.1% 9.1% 40.6% 121.6 103.2 17.8% 17.6% 18.5% Total Gross Profit 427.6 390.0 9.6% 8.2% Divisional Composition 46% 26% 28% 2024 €427.6m GP 26% 26% 48%2023 €390.0m GP
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Net Bank Debt1 Analysis 1. Net bank debt represents the net total of current and non-current borrowings, cash and cash equivalents 2. Other of c.€38.7m includes taxation of c.€11.1m, exceptional costs of c.€9.0m, dividends of €5.1m, purchase of Citywest premises for €33.8m and FX of €1.6m offset by disposal of fixed assets & subsidiaries –c.€21.8m. YE 2023 EBITDA Net Working Capital Capex Strategic Capex Other2 YE 2024Acquis. €147.7m Net bank debt at 31 Dec 2024 €130.3m Free cashflow (FCF %: 105.5%) 25 Lease Pay. Finance Costs 123.5 49.5 (17.1) (51.0) (17.9) (20.2) (25.6) (38.9) (147.7)(149.9)
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FCF Conversion 60-70% conversion at €200m EBITDA 2028 Target 26 Free cash flow Free Cashflow (FCF) €’m FY’24 FY’23 EBITDA 123.5 116.0 Net Working Capital 49.5 (14.0) Capital expenditure (17.1) (11.0) Lease payments (25.6) (21.5) FCF 130.3 69.5 FCF Conversion 105.5% 60.0% 1. Free cashflow is defined as EBITDA, less investment in working capital, less maintenance capital expenditure, less principal and interest payments on operating leases, less foreign exchange translation adjustment divided by EBITDA We target FCF1 conversion of 60-70% at €200m EBITDA Reported free cashflow during the period was 105.5%
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Capital Allocation & Investment Case 27
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Creating shareholder value 28 Discipline and balanced investment approach Net Bank Debt Not to exceed 2.5x in the medium-term • Balance sheet provides significant flexibility for the Group to execute on its strategy and meet its strategic goals Growth Through M&A • Fundamental component of compounding growth strategy • Active pipeline of acquisition opportunities • Subject to Group’s strict ROCE hurdle rate of 12% - 15% within three years Organic Investment • Continue to invest in infrastructure, digital platforms, strategic capex and talent to drive organic growth in line with new medium-term guidance Capital Allocation • Progressive dividend reflecting the expectation of future cash flow generation and the long-term earnings potential of the Group • Share buybacks subject to market conditions
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M&A: Pipeline focus 29 Acquisition Pipeline Criteria European distributors across core specialities Independent retail pharmacies Market Access Commercialisation platforms Specialist distributors Retention of management talent and expertise Cultural fit: Innovative and ambitious Target ROCE 12%-15% within 3 years Divisional focus
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Ambition to deliver €200m EBITDA by 2028 30 Dividend 12% - 15% ROCE Progressive dividend Dividend 60% - 70% FCF Conversion At €200m EBITDA Net Bank Debt / EBITDA not to exceed 2.5x We expect over 80% EBITDA growth to be organic Group guidance | medium term metrics €99m €200m SC&R Medtech Pharma M&A >80% organic growth 2022 EBITDA 2028 EBITDA ambition
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Our strong track record 31 180.6 427.6 2019 2024 Gross Profit (€m) Margins (%) 10.8 15.4 2019 2024 3.5 4.5 2019 2024 Gross margin EBITDA margin EPS (€ cent)1 9.7 20.5 2019 2024 58.6 123.5 2019 2024 EBITDA (€m) 1. Adjusted EPS has been calculated based on 2024 weighted average shares in issue
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32 Investment Case Experienced senior team, tried and tested Strong track record Compelling market opportunity in all 3 divisions Each division has an attractive competitive moat Clear pathway for success Greater capabilities = bigger opportunities
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Appendices 33
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Balance Sheet (€’000) 31 Dec 2024 31 Dec 2023 Goodwill and acquired intangible assets 524,805 537,609 IFRS 16 Right of Use Asset 143,038 131,318 Other non-current assets 194,243 112,700 Total non-current assets 862,086 781,627 Inventory 201,582 184,549 Trade & other receivables 248,882 237,560 Assets held for sale - - Total current assets 450,464 422,109 Non-current IFRS 16 lease obligations 132,612 126,083 Other non-current liabilities 8,984 33,290 Total non-current liabilities 141,596 159,373 Trade & other payables 598,817 540,662 Current IFRS 16 lease obligations 22,580 20,134 Total current liabilities 621,397 560,796 Net assets 549,557 483,567 Financed by: Net bank debt 147,676 149,947 Equity 401,881 333,620 Total financed by 549,557 483,567 Summary Management Balance Sheet1 34 Appendices 1. Balance Sheet based on management classifications, not in accordance with IFRS financial statements
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Return on Capital Employed 35 Appendices 1. ROCE is calculated as the adjusted 12-month rolling operating profit expressed as a percentage of the adjusted average capital employed for the same period. The average capital employed is adjusted to ensure the capital employed of acquisitions completed during the period are appropriately time apportioned in the calculation of the average capital employed 12-Month Rolling 31 December (€’000) FY’22 FY’23 FY’24 Numerator Rolling 12 months operating profit 67,708 81,989 Adjustment for exceptional costs 10,047 3,161 Amortisation of acquisition related intangibles 3,341 3,428 Adjusted 12 months operating profit 81,096 88,578 Denominator Total equity 289,783 333,620 401,881 Net bank debt 91,217 149,947 147,676 Deferred contingent consideration 91,798 75,061 39,182 Deferred consideration payable 523 100 - Total capital employed 473,321 558,728 588,739 Average capital employed 516,025 573,734 Adjustment for acquisitions1 18,556 10,883 Adjusted average capital employed 534,581 584,617 Return on capital employed 15.2% 15.2%
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Summary Group Financial Information 36 Appendices Twelve months ended 31 December (€’000) FY’24 FY’23 Reported % Growth Revenue 2,770,429 2,553,062 8.5% Gross profit 427,604 389,984 9.6% Overheads & operating income1 (304,146) (273,999) 11.0% EBITDA 123,458 115,985 6.4% Depreciation & amortisation (35,364) (35,406) (0.1%) Share-based payment expense (2,944) (2,824) 4.3% Exceptional items (3,161) (10,047) (68.5%) Operating profit 81,989 67,708 21.1% Net finance cost (including exceptional finance cost) (6,395) (14.810) (56.8%) Income tax (11,358) (7,750) 46.6% Profit after tax 64,236 45,148 42.3% Non-controlling interest (33) (333) (90.1%) Profit attributable to the owners 64,203 44,815 43.3% Basic EPS 23.5 16.4 43.3% Adjusted EPS2 (Like for Like) 20.5 18.3 11.8% 1. Net of add back of depreciation charged in Cost of Sales 2. Adjusted EPS calculated based on weighted average shares in issue in December 2024 of 273.0m (December 2023: 273.0m)
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EBITDA Reconciliation 37 Appendices Twelve months ended 31 December (€’000) FY’24 FY’23 Operating profit pre-exceptional 85,150 77,755 Share-based payments 2,944 2,824 Depreciation 29,300 29,202 Amortisation 6,064 6,204 EBITDA 123,458 115,985 EBITDA is earnings before interest, tax, depreciation, amortisation, share-based payments and exceptional items
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38 Contact Details Allan Smylie Head of Strategy and Investor Relations +353 (0)1 428 7777 investor.relations@uniphar.ie Q4 PR Public Relations Adviser to Uniphar Iarla Mongey +353 (0)1 475 1444