IVE : Chief Executive Officer's Presentation - 2021 AGM

For personal use only

IVE Group Limited 2021 Annual General Meeting

Chief Executive Officer's Presentation Matt Aitken

23 November 2021

Annual General Meeting 23 November 2021

For personal use only

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Contents

Financial performance dashboard	3
Key business highlights	4
Revenue diversification	7
Strategy, diversification and	8
growth opportunities
Enhancing and amplifying Lasoo	9
Trading update for the 4 months	10
ended 31 October 2021
Supply chain: opportunities and challenges	11
Major H2 initiatives	12
Outlook	15

For personal use only

Annual General Meeting 23 November 2021

Financial performance dashboard

	EBITDA	MARGIN	NPAT
	$100.2m	$30.2m
REVENUE		GROSS PROFIT
$656.5m	(including JobKeeper)	48.1%	(including JobKeeper)
(3.1% decrease on PCP)	$85.3m	(46.2% PCP)	$19.9m
	(excluding JobKeeper)		(excluding JobKeeper)

EARNINGS		NET DEBT
OPERATING	$77.3m	FULL YEAR DIVIDEND
PER SHARE*
CASHFLOW	14.0c
(excluding JobKeeper)
(excluding AASB16)
13.5c
$97m	CASH ON HAND	PER SHARE FULLY
(8.4% increase on PCP)	$107m	FRANKED

*EPS based on NPAT/weighted average shares on issue.

• The underlying financial results are on a non-IFRS basis and are not audited or reviewed
• The underlying results are a continuing operations basis and exclude non-operating items
• Underlying results include net JobKeeper receipts in H1 of $14.9m

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For personal use only

Annual General Meeting 23 November 2021

Key business highlights

Earnings guidance met, strong cashflows deliver increased balance sheet strength and demonstrate underlying resilience

Strong operating performance

• Delivered on earnings guidance - EBITDA $100.2m
• Improved margins notwithstanding reduced revenue, achieved through flexing cost base and supply chain
• Strong results in challenging environment demonstrate resilience of the business
• Staff at all levels responded very well to the unprecedented and volatile operating environment

Strategic initiatives

• The divestment of IVE Telefundraising in October 2020 for consideration of $16.5m represented a profit on sale of $4.2m
• Entered into long-term contract with Australian Community Media (ACM) on 30 October 2020, with expected revenues of circa $100m over the five-year term. To support ACM's requirements, and further enhance service to clients, we acquired selected assets of ACM's web offset operation in WA for a purchase consideration of $2m

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Annual General Meeting 23 November 2021

For personal use only

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Balance sheet further strengthened

• Strong cashflow generation, operating cashflow conversion of 131%
• Net Debt reduced by $59.8m from $137.1m (30 June 2020) to $77.3m
• Cash balance at 30 June 2021 of $107m
• Net debt to pre AASB16 EBITDA excluding JobKeeper of 1.3x (target net debt of 1.5x)
• $50m of senior debt facility was repaid on 6 August 2021

Improving shareholder returns

• EPS growth over PCP of 8.4%
• Resumption of dividends in H1 FY21 with final dividend declared of 7 cents per share fully franked, with a full year dividend of 14 cents per share fully franked
• ROFE of 15%
• The Company announced a share buyback on 12 November 2020. As at 25 August 2021, the Company has acquired 5.4m shares at a total cost of $7.4m (average price of $1.37 per share). This represents 3.6% of issued capital