UDG Healthcare plc FY20 Interim Results Presentation ... · FY20 Interim Results Presentation & Group Overview 19th May 2020 6 months to 31st March 2020. 2 This Presentation has been

www.udghealthcare.com

UDG Healthcare plcFY20 Interim Results Presentation & Group Overview

19th May 2020

www.udghealthcare.com

6 months to 31st March 2020

www.udghealthcare.com2

This Presentation has been prepared by UDG Healthcare plc and contains certain forward-looking statements, beliefs or opinions, including statements with respect to the Group's business, financial condition and operational results.

Forward looking statements

Some statements in this announcement are or may be forward lookingstatements. In particular, any statements that express forecasts,expectations and projections with respect to future matters, includingtrends in results of operations, margins, growth rates, overall market trends,the impact of interest or exchange rates, the availability of financing,anticipated cost savings and synergies and the execution of the Group’sstrategy, are forward looking statements. They represent expectations forthe Group’s business, including statements that relate to the Group’s futureprospects, developments and strategies, and involve risks and uncertaintiesboth general and specific, because they relate to events and depend uponcircumstances that will occur in the future. The Group has based theseforward looking statements on assumptions regarding present and futurestrategies of the Group and the environment in which it will operate in thefuture. However, because they involve known and unknown risks,uncertainties and other factors including but not limited to generaleconomic, political, financial, health, security and business factors, as well as

international, national and local conditions which are beyond the Group’scontrol, actual results, performance, operations or achievements expressedor implied by such forward looking statements may differ materially fromthose expressed or implied by such forward looking statements andaccordingly you should not rely on these forward looking statements inmaking investment decisions. Any forward looking statements speak only asof the date they are made and, except as required by applicable law orregulation, neither the Group nor any other party intends to update orrevise these forward-looking statements after the date these statementsare published, whether as a result of new information, future events orotherwise. Nothing in this document should be construed as a profitforecast. UDG Healthcare plc and its directors accept no liability to thirdparties.


Presentation agenda

Introduction & H1 FY20 overviewBrendan McAtamney, CEO

H1 FY20 financial overviewNigel Clerkin, CFO

Divisional & strategic reviewBrendan McAtamney, CEO

Summary

COVID-19 updateBrendan McAtamney, CEO


Brendan McAtamney Chief Executive Officer, UDG Healthcare plc


UDG Healthcare is a FTSE 250 global leader in the healthcare advisory, communications, commercial, clinical and packaging services industries.

Operating across two divisions, Ashfield and Sharp, UDG provides outsourced services which enable over 300 healthcare companies from large pharmaceutical to small biotech to bring their products to market, supporting patients to access and adhere to their medications and educating and communicating effectively with healthcare professionals and patients on these products.

UDG Healthcare overview

5 year operating profit

CAGR

9,000employees

MSCI ESG Rating

ListedCountries29

pharma companies as

clients

Underpinned by positive market dynamics

Growth of global pharma market and R&D spend

Increase in number of FDA drug approvals

Growing proportion of specialty medicines

Healthcare companies outsourcing to global partners


.*Operating profit and EPS are before the amortisation of acquired intangible assets, transaction costs and exceptional items.

+24%Operating Profit*

+24% constant currency

ROCEIncreased from

12.2% in H1 FY19

EPS*+16% constant

currency

Net Revenue+10% constant

currency

Net Operating Margin

Increased from12.0% in H1 FY19

97% FCF Conversion

Strong H1 FY20 financial performance


The diversified shape of UDG Healthcare

Business Unit Net Revenue Split

Ashfield Communications & AdvisoryAshfield Commercial & ClinicalSharp

Geographic Revenue Split Customer Concentration (Revenue)

66%

18%

16%8%

34%58%

North AmericaUKRest of World / Other

# 1 Customer# 2 -10 CustomersOther Customers

34%

35%

31% 51%

21%

28%

Business Unit Operating Profit Split


UDG Healthcare is building a sustainable business while remaining cognisant of our responsibilities to our people, our environment and our community.

In 2019, we achieved an MSCI ESG upgrade to AA

In 2019 we were awarded Carbon Disclosure Project score of B-, exceeding the global average of C.



COVID-19 Response

Protecting the wellbeing of our people

Delivering for our clients

Supporting local

communities

Business impact

assessment

CSR

Cost management

& liquidity


COVID-19 Response – Protecting the wellbeing of our people

CSRProtecting the wellbeing of our people


CSRSupporting

local communities

CSRBusiness impact

assessment

CSRCost

management & liquidity

Since the start of the COVID-19 outbreak, our priority has been the health and wellbeing of our people and their families:

Global Response Team

Additional health and safety measures

Seamlessly working from home

Wellbeing initiatives


COVID-19 Response – Delivering for our clients

Despite the continued challenges, the Group and its people have continued to deliver for clients:



CSRSupporting

local communities

CSRBusiness impact

assessment

CSRCost


• Supported rapid launch of three oncology therapies

• Supporting the development of COVID-19 vaccines and treatments

• In-field teams pivot to virtual engagement & support

• Providing medical information support for a COVID-19 anti-viral clinical trial


COVID-19 Response – Supporting local communities



CSRSupporting

local communities

CSRBusiness impact

assessment

CSRCost


Donating personal protective equipment to hospitals and surplus raw materials for face shields

Donating to local foodbanks and hospitals to support our communities

Supporting #fuellingthefrontline and #FeedTheHeroes

Greg Flynn, President of Ashfield Commercial & Clinical, delivering food parcels to the elderly in Philadelphia

#MarkforHeroes


COVID-19 Response – Business impact assessment



CSRSupporting

local communities

CSRBusiness impact

assessment

CSRCost


51%* Ashfield Communications & Advisory

Business

Pre-COVID-19

COVID-19 Impact

Strong H1 FY20 with underlying operating profit growth of 8%

• Some project deferrals and cancellations within Medical Communications

• STEM reduced activity levels

• Limited impact to date on the remainder of Communications & Advisory

Ashfield Commercial & Clinical

Performance in line with expectations with H1 FY20 operating profit in line with PY

• In-field based activities such as Meetings & Events, field based representatives experiencing disruption

• Slight offset from increased call centre/medical information activity

21%*

Very strong H1 FY20 with underlying operating profit growth of 24%

• Demand remains very robust

• Temporary disruption due to workforce availability sequentially improving

• Social distancing impact on production schedules being addressed through increased automation

28%* Sharp

*of H1 FY20 operating profit


COVID-19 Response – Cost management & liquidity

Suspended interim dividend for H1 FY20



CSRSupporting

local communities

CSRBusiness impact

assessment

CSRCost


Implementing cost control measures to mitigate the potential negative impacts from COVID-19

Board and Senior Executive Team fee and base salary cut

Group’s financial position remains robust with net debt / EBITDA of 0.3x


UDG Healthcare is well positioned beyond the near-term challenges of COVID-19

Excellent market fundamentals

Very talentedand dedicated people

Strong and diversified

business

Robust financial position


Nigel ClerkinChief Financial Officer, UDG Healthcare plc

18 UDG Healthcare plcwww.udghealthcare.com18

H1 FY20 Financial Summary

H1 FY19 H1 FY20 % CC Increase^ % Underlying Increase~

Net Revenue $546.2m $596.2m ↑10% ↑4%

Operating profit* $65.6m $81.3m ↑24% ↑10%

EPS (C)* 20.32 23.64 ↑16% ↑5%

ROCE

12.2%H1 FY19

14.1%H1 FY20

Net Operating Margin

12.0%H1 FY19

13.6%H1 FY20

^ The average H1 FY20 exchange rates were $1:€0.9051 and $1:£0.7797 (H1 FY19 $1:€0.8783 and $1:£0.7725)

~ Throughout this presentation, references to underlying growth are financial metrics adjusted for the impact of currency translation movements and any acquisition or disposal activity

*Before amortisation of acquired intangible assets, transaction costs and exceptional items.

.


H1 FY20 Divisional Overview - Continued strong performance across both divisionsOperating profit ($m)

47.4

18.2

58.6

22.7

Ashfield Sharp

+24% CC ↗

+24% CC ↗

^ Throughout this presentation, references to underlying growth are financial metrics adjusted for the impact of currency translation movements and any acquisition or disposal activity.* Net operating margin adjusts for pass-through revenues upon which no margin is earned

• Underlying ̂net revenue flat

• Underlying ̂operating profit increased by +5%

• Net operating margin increased to 14.3%

• Underlying ̂net revenue increased by +13%

• Underlying ̂operating profit growth of +24%

• Net operating margin increased to 12.2%

NET OPERATING MARGIN*

12.5% 14.3% 11.0% 12.2%

UNDERLYING^ NET REVENUE GROWTH RATE

- +13%

UNDERLYING^ OPERATING PROFIT GROWTH RATE

+5% +24%


Strong H1 FY20 EPS growth from both underlying growth and acquisitions

GROUP EPS ($c) +16%

Constant Currency EPS Growth +16%23.6c

20.3c

+5% +11%

Underlying operating profit: +10% Tax: (3%)

Interest: (2%)


Continued strong free cashflow conversion in H1 FY20

H1 FY20 Net Debt: $58m

Opening Net Debt

EBITDA Working Capital

Capex DividendsTax, Interest, & Capital Lease Repayments

Acquisitions & Disposals

ClosingNet Debt*

Net Debt/EBITDA: 0.3x

FCF Conversion: 97%

*Net debt excludes lease liabilities associated with the adoption of IFRS 16

(20)

Medium-term FCF % target raised to 65%-70%


Strong balance sheet and liquidity position

*The unsecured loan notes and senior bank facilities are subject to compliance with certain covenants including a leverage covenant (net debt to annualised EBITDA) not to exceed 3.5:1. Leverage covenants exclude the impact of IFRS 16.

H1 FY20 Net Debt/EBITDA

Leverage covenant of 3.5x*

$151m

cash

at H1 FY20

$230m

Leverage covenant of 3.5x*

Undrawn fully committed RCF

Low leverage Robust liquidity Access to funding

0.3x

Strong cash position


Strong balance sheet to support continued investment priorities

• Medium-term guidance of approx. $50m per annum

• Investments in infrastructure, talent, and systems

• Proud 30 year+ history of consistent dividend growth –however, FY20 interim dividend currently suspended due to COVID-19 uncertainty

• Completed 23 acquisitions (c. $880m) and 5 disposals (c. $635m) since 2012

• Net debt to EBITDA 0.3x at 31st

March 2020Reinvestment

to support continued

sustainable growth

Progressive shareholder

returns policy

Acquisitions in line with

strategic priorities

All investments are subject to a 3-year 15% ROCE hurdle



Ashfield Communications & Advisory – H1 FY20 financial overview

51%

% of H1 FY20 Group Operating Profit

^ Throughout this presentation, references to underlying growth are financial metrics adjusted for the impact of currency translation movements and any acquisition or disposal activity. * Net operating margin adjusts for pass-through revenues upon which no margin is earned.

• Strong performance in H1 FY20 with net revenue growth of +30% and operating profit growth of +37% , driven by good underlying growth and the benefit of acquisitions

• On an underlying^ basis, net revenue growth of +7% and operating profit growth of +8%

• Net operating margins* increased to 20.4%

6m to 31st March 2020$m H1 FY19 H1 FY20

% Change

% ConstantCurrency

% Underlying^ Growth

Net Revenue 154.5 201.0 +30% +31% +7%

Operating Profit 30.0 41.1 +37% +37% +8%

Net Operating Margin* 19.4% 20.4% +100bps - -


Ashfield Commercial & Clinical – H1 FY20 financial overview

^ Throughout this presentation, references to underlying growth are financial metrics adjusted for the impact of currency translation movements and any acquisition or disposal activity. *Net operating margin adjusts for pass-through revenues upon which no margin is earned.

21%


• Performance in line with previously communicated expectations

• Net revenue declined on a reported basis, including the disposal of Ashfield’s pharmacovigilance business

• On a reported basis, operating profit growth of +1%, reflecting the benefit of 2019 restructuring

• Net operating margins increased to 8.3%


% Change

% ConstantCurrency


Net Revenue 226.1 209.4 (7%) (6%) (5%)

Operating Profit 17.4 17.5 +1% - -

Net Operating Margin* 7.7% 8.3% +60bps - -


Payor

Patient

HealthcareProfessional

Data/Analytics

Digital

Face to face

Ashfield Commercial and

Clinical

Ashfield Communications

Ashfield Advisory

Call CentreNurse/PSPSales RepsMeetings

Digital ContentCreative ContentScientific Content

ResearchAudit

Management Consulting

1997 2010 2016 2020

Successful strategic execution and evolution within Ashfield


Continued strategy execution in Ashfield

Communications & Advisory accounts for 70% of Ashfield’s operating profits

Increasing examples of cross collaboration

Disposal of Ashfield Pharmacovigilance

70%


Collaboration and cross selling - An integrated client solution from Ashfield

Nurse led, patient support programme secured by

Ashfield Commercial & Clinical and MicroMass in Q1 FY20

3 year contract to design the overall patient experience strategy and execute an omnichannel patient support programme

Programme to launch in H2 FY20, delivered by nurse clinical educators

from Ashfield’s contact centre in Fort Washington supported by

MicroMass’ behavioural science programmes and insights

New solution for the client who has not previously delivered a patient support programme, delivered to patients with high levels of treatment failure and adherence issues



Sharp – H1 FY20 financial overview


^ Throughout this presentation, references to underlying growth are financial metrics adjusted for the impact of currency translation movements and any acquisition or disposal activity.

.

• Strong underlying^ growth with revenue increasing by +13% and operating profit increasing by +24%

• Strong growth driven by continued increased demand for the packaging of serialised biotech and specialty products

• Well positioned to serve this continued increase in demand following investments made during 2019 and recent capacity expansion / acquisition


% Change

% ConstantCurrency


Revenue 165.6 185.8 +12% +13% +13%

Operating Profit 18.2 22.7 +25% +24% +24%

Operating Margin 11.0% 12.2% +120bps - -

28%


Continued strategic progress in Sharp

Completion of Sharp US commercial capacity expansion

Acquisition of a packaging facility near Allentown, Pennsylvania for approximately $5 million

Sharp Europe site consolidation on track



Completed 23 acquisitions since 2012, complementing good underlying growth

Bethlehem site

Acquisitions 2012 2013 2014 2016 2017 2018

DisposedDisposed Disposed

2019 2020

Disposed

Macungie site


Continuous record of strong operating profit growth

Ashfield and Sharp combined operating profit CAGR of +14%

since FY14

*Excludes Aquilant*Based on IAS 18 historical operating profit performance

Ashfield Sharp

Operating Profit Growth: Ashfield and Sharp ($m)*

57.5 68.3 70.681.6

98.4 108.4

25.9

34.0 38.241.3

45.850.0

83.4

102.3108.8

122.9

144.2158.4

FY14 FY15 FY16 FY17 FY18 FY19


Summary & outlook

Medium Term Outlook

Strong H1 FY20 financial

performance

Robust balance sheet and

liquidity profile

Managing the impact of COVID-19

Strong long-term market

fundamentals

Ashfield medium term underlying operating

profit growth

5-10%

Sharp medium term underlying operating

profit growth

>10%

Medium term Free Cash Flow

conversion rate

65 -70%

Capex per annum (Inc. $35m maintenance

capex)

$50m15%

3-year ROCE hurdle rate for all

investments

FY20 financial guidance

withdrawn

www.udghealthcare.comwww.udghealthcare.com

UDG Healthcare plcGroup Overview

6 months to 31st March 2020


Our strategy is to grow and improve our organisation by providing market-leading outsourced services to our clients, outstanding development opportunities for our people, and long term sustainable value for our shareholders.

Executing our strategy

Strategic pillarsOur roadmap to achieving our strategy is built around three

strategic pillars2.

Transforming through people

3.

Continuous improvement

Geographic and service

growth

Client focus and

commercial excellence

Talent and people

Quality and compliance

Improve productivity

In turn our strategic objectives provide clarity and direction on how we deliver our strategy and enable

us to evaluate our progress

Strategic objectives

1.

Developing and growing market

leading positions


UDG Healthcare overview

Supplemented with inorganic growth

BusinessMarket

FundamentalsDivisional Growth

DriversUnderlying

Medium-Term Outlook

of H1 FY20 Operating Profit72%

of H1 FY20 Operating Profit28%

• $6bn market size• 5% Growth CAGR• 15% Outsourcing

• $10bn market size• 3-8% Growth CAGR• 40-50% Outsourcing

• $6bn market size• 6-8% Growth CAGR• 25% Outsourcing

• $7bn market size• 6-8% Growth CAGR• 50% Outsourcing

Commercial & Clinical:

Comms & Advisory:

Commercial Packaging:

Clinical Services:

Commercial & Clinical• Market growth supported by new drug launches• Growth in outsourcing levels• Demand for innovative, multi-channel offerings

Communications & Advisory• Specialty products increasing demand for

multichannel and digital communications• Fragmented market, benefits for scale players • Cross-selling opportunities

Sharp• Increasing outsourcing penetration • Demand for secondary packaging of

injectable products• Client demand for strategic

relationships from clinical services through to commercial services

>

5-10% Underlyingoperating

profit growth

10% +Underlying operating

profit growth

M&A


Business overview

A global leader in contract clinical, manufacturing, packaging and technology services

28%of H1 FY20Operating Profit

Medium term operating profit growth outlook*

*Underlying growth

A global leader in healthcare advisory, communications, commercial and clinical services for the pharmaceutical and healthcare industries

5-10%72%of H1 FY20Operating Profit

Medium term operating profit growth outlook*

Phase 1-3 Prelaunch Launch In Market

Advisory

Healthcare Communications

Commercial & Clinical

Commercial

Clinical

>10%


Investment proposition

1. Positive market dynamics with growing FDA approvals

and trend towards increased outsourcing

2. Global presence and strong market positions,

diversified by geography, services and customers

3. Not directly linked to drug pricing, fee for

service model

4. Clear medium term underlying operating profit growth guidance

5. Strong balance sheet to support M&A

6. Investments to support sustainable growth



Ashfield Overview

72%

57.5

68.3 70.6

81.6

98.4108.4


*Adjusted for amortisation of acquired intangible assets, transaction costs, and exceptional items

Operating profit* ($m)

A global leader in healthcare advisory, communications, commercial and clinical services

7,200People across 28 countries

Delivering services in

more than 50 COUNTRIES

Partnering with the top

30 GLOBAL PHARMA COMPANIES

TRANSFORMEDCommunications & Advisory accounts for approximately 70% of operating profits of Ashfield

*Based on IAS 18 historical operating profit performance


Supplemented by strong creative communications, digital, data and analytics expertise

Ashfield Communications – Overview & Strategy

What we doScientific and creative communications, digital and patient-centered content for medical affairs and brand commercialisation with areas of specialty including behavioural science, rare disease, PR and on-demand advertising services.

Where we do itOffices in New York, Boston, New Jersey, Raleigh, San Diego, Manchester,

London and Brighton.

Strategy & Differentiation

Key focus to increase collaboration between agencies

Strategy to continue to expand into aligned adjacencies to core scientific communication capabilities

Global network of business and talent driven by a ‘science first’ perspective

Our peopleWe have 1,400 people, including approximately 400 with a

PhD or equivalent


Ashfield Communications – Market Overview

Competitive landscape

Broad range of peers including:

• Pureplay healthcare communications businesses (Huntsworth, Precision Health, Intouch Group, Syneos)

• Fragmented market of smaller independent agencies

• Advertising agencies (WPP, IPG, Havas, Omnicom)

Key Growth Drivers

• Increasing outsourcing penetration

• Growth of specialty products leading to increased demand for multi-channel and digital comms

• Increasing number of molecules being developed and approved

• Migration to direct patient engagement

• Growth in orphan drug and rare diseases

Estimated Ashfield market

share <5%

Outsourced Market size $7.3bn

Estimated market growth

rate 3-8%

Estimated outsourcing rate 40-45%

Margin profile 15%-25%


Ashfield Advisory - Overview & Strategy

Healthcare consulting focused on brand strategy, planning and launch

140 + peoplebased in Philadelphia,

Boston and London

Acquired in 2017

Strategy: Cross-selling, international expansion, and client and service expansion

Acquired in 2018

Strategic commercial, consulting and analytics business

120 + peoplebased in New York, India

and London

200 + peopleoffering audit services

across 51 countries

Acquired in 2016

Accelerating excellence in brand strategy execution

125 + peoplebased in Boston and

San Francisco

Acquired in 2019

Strategic management healthcare consultancy


Ashfield Advisory – Market Overview


• Competitive landscape includes large global pure-play consultancies (McKinsey, Accenture) in addition to niche healthcare consultancies

Key Growth Drivers


• Changing and increasingly complex therapies and launches

• Growing demand for data and informed research to improve decision making

• Increasing number of molecules in development and positive FDA approval outlook

Estimated Ashfield market

share <5%



rate 6-8%

Estimated outsourcing rate 40-45%


Sources: Company data, BCG research.


Ashfield Commercial and Clinical - Overview & Strategy

Ashfield continues to invest to expand and differentiate its offering.

Recent activity includes:

50%

50%

of operating profit generated from commercial/CSO related activities

of operating profit from clinical, patient support, medical information, pharmacovigilance, meetings and events and market access services

Where we do itAshfield Commercial and Clinical provides services

across

22 countries

5,100 people

50/50


Ashfield Commercial & Clinical – Market Overview


• Competitive landscape includes large players Syneos, IQVIA and TouchPoint

• In-country competitors varies by geographic market

Key Growth Drivers

• Significant potential for increased outsourcing, offsetting a decline in the total number of sales reps

• Increasing demand for innovative models,multi-channel offerings

• Growth of specialty products leading to increased complexity and support requirements

• Increasing importance of patient adherence

Ashfield market share varies by

geography



rate 5%

Estimated outsourcing

rate 15%


Sources: Company data, BCG research.


Ashfield - Acquisitions In Line With Strategy

Strategic Fit / Capabilities

People & Cultural Fit

ROCE 15%+ within 3 years

M&A REMAINS A KEY PRIORITY FOR THE GROUP:

Ashfield Advisory

• Strategic consulting

• Brand consulting & advisory

• Market Access, Health Economics and Outcomes Research

• Patient, commercial & marketing audits

Ashfield Communications

• Extension of communications capabilities incorporating:

– Scientific health comms– Commercial / Creative comms– Patient engagement & behaviour – Public relations– Digital, data & analytics solutions

Ashfield Commercial & Clinical

• Strengthen contract sales capabilities

• Extend clinical / nurse services

• Expand medical information and commercial call centres

ASHFIELD KEY FOCUS AREAS INCLUDE:


Sharp Overview

*Adjusted for amortisation of acquired intangible assets, transaction costs, and exceptional items

25.9

34.038.2

41.345.8

50.0


Operating profit* ($m)

Sharp US

Sharp EU

Sharp Clinical

A global leader in contract packaging and clinical trial supply services

1,800Employees

Operations in

4 COUNTRIESBelgium, Netherlands

USA, UK

8 GMP & FDAApproved facilities

28%

*Based on IAS 18 historical operating profit performance


Addressable Outsourced Market

size $12-$14bn

Sharp – Market Overview


• Commercial competitors include large pure play Contract Packaging Organisations (CPO) such as PCI, Contract Manufacturing Organisations (CMO) and smaller scale CPO’s

• Clinical competitors include ThermoFisher, Catalent and Almac

Key Growth Drivers


• Demand for secondary packaging of injectable products

• Increasing requirement to access specialist technology solutions and capabilities

• Client demand for strategic relationships from clinical services through to commercial services


rate 6-8%

Estimated outsourcing rate: Commercial c. 25%-30%

Clinical c. 50%

Market share:Commercial c. 5-10%

Clinical < 5%

Sources: Company data, Deloitte research.


Sharp – Acquisitions & Investments In Line With Strategy

Strategic Fit / Capabilities

People & Cultural Fit

ROCE 15%+ within 3 years

M&A REMAINS A KEY PRIORITY FOR THE GROUP:

Sharp Commercial

• Continued investment in facilities and equipment to provide additional capacity

• Bolt on acquisitions of other commercial packaging businesses and facilities

• Expand niche manufacturing capabilities, focused on biotech / injectables / finished dose formulation

Sharp Clinical

• Expand clinical services offering to provide an integrated offering

• Focus on formulation development, analytical testing and manufacturing

• Expand geographical reach

SHARP KEY FOCUS AREAS INCLUDE:



Segmental Overview

6 months to 31 March 2020 H1 FY20 Change

Net^ Revenue $m Op Profit* $m Net^ Margin Net^ RevenueNet^ Revenue

UnderlyingOp Profit*reported

Op Profit*Underlying

Net^ Margin

Ashfield $410.4 $58.6 14.3% 8% - 24% 5% +180bp

Sharp $185.8 $22.7 12.2% 12% 13% 25% 24% +120bp

Total $596.2 $81.3 13.6% 9% 4% 24% 10% +160bp

^ Adjusted for pass-through revenues. Pass through revenues of $97.4m in H1 FY20 and $110.4m in H1 FY19. *Operating profit before amortisation of acquired intangible assets, acquisition costs and exceptional items


Ashfield Segmental Summary

6 months to 31 March 2020 H1 FY19 H1 FY19 H1 FY19 H1 FY20 H1 FY20 H1 FY20

% Change

% Change

% Change

% Change

Net^ Revenue $m Op Profit* $m Net^ MarginNet^ Revenue

$mOp Profit* $m

Net^ Margin

Net^ RevenueNet^ Revenue

Underlying Op Profit*

Op Profit* Underlying

Communications & Advisory

$154.5 $30.0 19.4% $201.0 $41.1 20.4% 30% 7% 37% 8%

Commercial & Clinical

$226.1 $17.4 7.7% $209.4 $17.5 8.3% (7%) (5%) 1% -

Total $380.6 $47.4 12.5% $410.4 $58.6 14.3% 8% - 24% 5%

^ Adjusted for pass-through revenues. Pass through revenues of $97.4m in H1 FY20 and $110.4m in H1 FY19. *Operating profit before amortisation of acquired intangible assets, acquisition costs and exceptional items


Sharp Segmental Summary

6 months to 31 March 2020 H1 FY19 H1 FY19 H1 FY19 H1 FY20 H1 FY20 H1 FY20

% Change

% Change

% Change

% Change

Revenue $m Op Profit* $m Margin Revenue $mOp Profit*

$mMargin Revenue

RevenueUnderlying

Op Profit*Op Profit* Underlying

Total $165.6 $18.2 11.0% $185.8 $22.7 12.2% 12% 13% 25% 24%

*Operating profit before amortisation of acquired intangible assets, acquisition costs and exceptional items


Key performance indicators and non-IFRS performance measures

The Group reports certain financial measurements that are not required under International Financial Reporting Standards (IFRS) which represent the generally accepted accounting principles (GAAP) under which the Group reports. The Group believes that the presentation of these non-IFRS measurements provides useful supplemental information which, when viewed in conjunction with IFRS financial information, provides stakeholders with a more meaningful understanding of the underlying financial and operating performance of the Group and its divisions.

These measurements are also used internally to evaluate the historical and planned future performance of the Group’s operations and to measure executive management’s performance based remuneration. None of the non-IFRS measurements should be considered as an alternative to financial measures derived in accordance with IFRS. The non-IFRS measurements can have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of results as reported under IFRS.


Return on Capital Employed (ROCE) Calculation

Calculation As per Interim Statement

As at 31 March

2020$’000

As at 31 March

2019$’000

Net assets Balance Sheet 945,303 892,675

Net debt Note 13 58,239 56,780

Assets before net debtCumulative intangible amortisationCumulative restructuring costs

1,003,542226,527

20,632

949,455197,173

25,714

Total Capital Employed 1,250,701 1,172,342

Average total capital employedRolling 12 month adjusted operating profit

1,211,522170,536

1,194, 822145,753

Return on Capital Employed 14.1% 12.2%

ROCE is the adjusted operating profit expressed as a percentage of the Group’s net assets employed. Net assets employed is the average of the opening and closing net assets in the period excluding net debt adjusted for the historical amortisation of acquired intangible assets and restructuring charges.


Adjusted EBITDA Calculation

Calculation As per Interim Statement

6 monthsEnded

31 March2020

$’000

6 monthsEnded

31 March2019

$’000

12 monthsEnded

31 March2020

$’000

12 monthsEnded

31 March2019

$’000

Adjusted operating profit

Share-based payment expense

Depreciation

Depreciation of right of use assets

Amortisation of computer software

Joint venture profit share

(Profit)/loss on disposal of PP&E

Income Statement

Cash Flow Statement

Cash Flow Statement

Cash Flow Statement

Note 10

Note 4

Cash Flow Statement

81,298

2,628

11,331

8,128

4,694

(954)

(26)

65,602

2,521

11,764

-

3,657

418

(678)

170,536

4,827

22,697

8,128

9,064

(1,422)

80

145, 753

5,027

24,213

-

7,078

(403)

(744)

Adjusted EBITDA 107,099 83,284 213,910 180,924

Adjusted EBITDA is adjusted operating profit (operating profit before amortisation of acquired intangible assets, transaction costs and exceptional items) before depreciation, share-based payment expense, amortisation of computer software, the share of joint venture profits/(loss) and profit/(loss) on disposal of property, plant and equipment


UDG HEALTHCARE PLC20 RiverwalkCitywest Business CampusCitywestDublin 24 Ireland

Keith Byrne, Head of Investor Relations, Strategy & Corporate Communications

[email protected]+353 1 468 9000

Documents

UDG Healthcare plc FY20 Interim Results Presentation ... · FY20 Interim Results Presentation & Group Overview 19th May 2020 6 months to 31st March 2020. 2 This Presentation has been