IVE : Investor Presentation Half Year Results (31 December 2021)

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IVE Group Limited

FY22 H1 Results Presentation

ASX : IGL

24 February 2022

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IVE Group Limited FY22 H1 Results Presentation

Contents

Financial performance dashboard	3
Financials	4
Profit & Loss	5
Net debt	7
Capital expenditure	7
Cash flow and interim dividend	8
Business updates	9
Active Display Group (ADG) and
AFI Branding Solutions acquisitions
and integration	10
Supply chain	11
Lasoo	12
Track record of strategy execution,
capital management and future
growth initiatives	13
Outlook and guidance	16
Appendices	18

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Financial performance dashboard

Significant uplift in EPS over prior corresponding period (PCP) as a result of solid revenue growth, stable margins, and leverage of recalibrated cost base

REVENUE	EBITDA	NPAT	GROSS PROFIT
MARGIN
$382.6m	$55.2m	$20.9m
47.5%
↑12.2% on PCP	↑24.7% on PCP	↑99% on PCP	47.3% PCP

	NET DEBT	EARNINGS
EBITDA OF	$78.7m	8.5c
OPERATING CASH		PER SHARE	INTERIM DIVIDEND
CONVERSION TO
78%	CASH ON HAND	14.6c	PER SHARE FULLY
$51.6m	↑104% on PCP	FRANKED

• The underlying financial results are on a non IFRS basis and are not audited or reviewed
• The underlying results are on a continuing operations basis and exclude non-operating items (refer Appendix A)
• The comparison of underlying results to PCP excludes net JobKeeper receipts (H1 FY2021)

IVE Group Limited FY22 H1 Results Presentation

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Financials

IVE Group Limited FY22 H1 Results Presentation

Profit & Loss

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	Actual H1	Actual H1	Variance	Variance
	FY2022	FY2021
	$m	%
	$m	$m
Revenue	382.6	340.8	41.7	12.2%
Gross Profit	181.7	161.3	20.3	12.6%
% of Revenue	47.5%	47.3%		0.3%
EBITDA	55.2	44.3	10.9	24.7%
% of Revenue	14.4%	13.0%		1.4%
EBIT	33.8	20.1	13.7	68.5%
NPAT	20.9	10.5	10.4	98.9%
EPS (CPS)	14.6	7.2		104.0%

• The underlying financial results are on a non IFRS basis and are not audited or reviewed
• The underlying results are on a continuing operations basis and exclude non-operating items (refer Appendix A)
• The comparison of underlying results to PCP excludes net JobKeeper receipts (H1 FY2021)

Revenue

Revenue uplift over PCP of $41.7m ($382.6m H1 FY22 to PCP of $340.8m)

Existing clients

• Revenue increases over PCP across all parts of the business and across most sectors
• Top 20 clients circa 12% up over PCP
• Travel & tourism, and merchandise for events remained at similar levels to PCP, however currently rebounding as expected
• We have been the beneficiary of clients moving revenue onshore from Asia due to supply chain issues, particularly in retail display. We expect this to continue in the medium term
• A number of retail catalogues clients reduced volumes to some extent due to lack of predictability across their product supply chain.

IVE Group Limited FY22 H1 Results Presentation

• We have also seen a number of existing retail clients return to the catalogue and letterbox distribution channel
• No material client losses through the period with client retention remaining consistently high
• Continued revenue growth as a result of effectively cross selling broader offer to existing clients

New business

• Continued to focus on growing market share through harnessing the power and uniqueness of IVE's go-to-market proposition
• New business momentum across all parts of the business remains strong with a number of new clients on-boarded during the period
• Letterbox distribution revenue up 17% over PCP, predominantly as result of significant new business wins (Aldi, Officeworks and Bunnings) and the closure of competitor walker network in Australia
• 2 high profile clients (each circa $10m annual revenue) recently secured and awaiting contract execution

ADG and AFI (businesses acquired 1 November 2021) revenue for the period was $8.2m