Paragon Care : FY19 Half Year Results Presentation (FEB2018)

Half Year Results Presentation 1H FY19

28 February 2019 | ASX:PGC

1H19 financial highlights

Revenue

EBITDA

•  ~9% organic growth achieved in 1H19 from Continuing business (~2x market)

•  FY19 revenue guidance remains unchanged and on target

•  Gross margin for 1H19 of ~38%

•  Continuing business EBITDA of ~$14m in line with recently provided 1H19 guidance

•  1H19 EBITDA 12% for Continuing business, improvement expected in FY20 through major cost out drive

1H19 operational overview and outlook

Status

Strong sales performance

•  Improved sales performance with focus in 2018 to strengthen sales leadership, transform sales culture and improve accountability

•  Significant future benefits anticipated from Paragon's transformation into a world-class provider of advanced technology in healthcare sector

  Group-wide transformation

•  Commenced migration to Microsoft D365 single platform, to create standard systems and processes across the Group

•  Benefits of this IT integration expected to build from 1 July 2019 - cost reductions in FY20 expected to be >$3m

•  Due diligence on legacy capital equipment business progressing well

Positive outlook for Continuing business

•  Continuing business is expected to generate $240m of revenue and $28m of EBITDA in FY19 (incl. $4m benefit from lease adjustment)

•  Stated Group EBITDA has been negatively impacted by the legacy capital equipment business, delays with MIDAS business development, and delays to integration cost synergies.

Focused vision and strategy guides our growth path

Paragon is building a model to support a much larger business