1300SMILES : ONT – 2020 AGM – Presentation

Welcome to

Managing Director's AGM Address -

26 November 2020

Presented by: Dr Daryl Holmes OBE,

Founder & Managing Director

Financial Snapshot

30 September	1Q'21	1Q'20	Change	FYTD Oct'20 FYTD Oct'19	Change
Revenue (OTC)	18.2	15.8	15%	23.7	21.2	12%
Retained by Dentists	-5.8	-5.2	12%	-7.5	-6.8	10%
Revenue (Statutory)	12.4	10.6	17%	16.2	14.4	13%
(-) Operating Costs	-7.9	-8.2	-4%	-10.7	-11.2	-4%
EBITDA (excl. Jobkeeper)	4.5	2.4	88%	5.5	3.2	71%
(+) Net JobKeeper Reciepts	1.5	-	-	1.6	-	-
EBITDA (inc. Jobkeeper)	6	2.4	150%	7.1	3.2	122%
(-) D&A	-0.6	-0.6	-	-0.8	-0.8	-
EBIT	5.4	1.8	200%	6.3	2.4	163%
(-) Net Finance Costs	0	0	-	0	0	-
NPBT	5.4	1.8	200%	6.3	2.4	163%
(-) Tax Expense	-1.5	-0.5	200%	-1.7	-0.7	143%
NPAT	3.9	1.3	200%	4.6	1.7	171%

1Q'21 Financial Summary

• Strong Same Practice Revenue growth of 16% in 1Q'21 powered by:
• • Continued focus on Dentists recruitment and engagement
  • Targeted marketing and growth in online bookings
  • Continued focus on call centre re-appointments
• Increased productivity for Dentists, productivity was UP from 76% in 1Q'20 to 89% in 1Q'21
• Strong net operating cash flows of $4.3 million for 1Q'21
• Net debt reduced by 15% from $8.3 million at 30 June 2020 to $7.1 million at 30 September 2020 through debt repayment
• Sufficient headroom on credit facility to take advantage of future capital projects

Recovery Post COVID-19 Restrictions

Monthly OTC Revenue ($m)	▪ Since the easing of restrictions in May, trading
$6.0M		has been strong, driven in part by latent
$4.0M		demand from the period of restrictions and new
		patients
$2.0M		▪ 1Q'21 OTC Revenue totalled $18.2 million, UP
0		15% on 1Q'20
		▪ Record Same Practice Revenue growth in
2019	2020	1Q'21 of 16%

Impact of JobKeeper

Impact of JobKeeper

7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
Jul-20	Aug-20	Sep-20	Oct-20

Normalised NPBT		JobKeeper received

• NPBT totalled $6.3 million for FYTD Oct'20
• $1.6 million was attributable to JobKeeper
• Normalised NPBT amounted to $4.7 million, UP
  96% on FYTD Oct'19

3 Year Trend of 1Q Performance

▪ OTC Revenue has grown by 26%

between 1Q'19 and 1Q'21

▪ NPBT is UP 125% between 1Q'19

and 1Q'21

▪ NPBT Margin almost doubled from

16% to 30% between the same

periods

FY'20 Operations Review

Online bookings have		Over 170,000		2 new practices acquired bringing our
	appointments were
increased YoY by			network of practices to 33 throughout
	attended across the
63.8%.			Queensland and New South Wales.
	1300SMILES network.

Over 130 Practitioners currently working		Over 300 people employed in metro, regional and
within the 1300SMILES network.		rural centres throughout Queensland and New
		South Wales.

The Future

Employer of

Choice

• Building a positive and supportive workplace culture
• Attract high calibre Practitioners
• Delivering jobs in regional communities

Patient Care

• Delivering on our values - Affordable, Accessible, Available
• Providing outstanding dental services and patient care
• Building strong partnerships with Health Funds and Government

Growth

• Increasing profits by attracting more Dentists to our existing facilities and expanding those facilities which are already at full capacity
• Assisting Dentists who already practice within the 1300SMILES system to increase their turnover and income through benchmarking, training, and mentoring
• Establish new practices in existing and new regions (greenfield sites) or by acquisition

Questions & Answers

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