RESULTS Presented by: Phil McKenzie Managing Director & Chief - PowerPoint PPT Presentation

FY 2019 RESULTS Presented by: Phil McKenzie Managing Director & Chief Executive Officer Allanna Ryan Chief Financial Officer 22 AUGUST 2019 PACIFIC SMILES GROUP RESULTS 2019 1

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PHIL MCKENZIE Managing Director and Chief Executive Officer ALLANNA RYAN Chief Financial Officer RESULTS 2019 3

PERFORMANCE HIGHLIGHTS PACIFIC SMILES GROUP RESULTS 2019 4

2019 PERFORMANCE HIGHLIGHTS $187.4m 89 Patient Fees – Dental Centres – Up 13.9% Up 11.3% 8.6% $22.8m Same Centre Growth – Underlying EBITDA – Up 350bps Up 6.0% 5.8cps $8.9m Ordinary Dividends – Underlying NPAT – Down 4.9% Down 3.5% RESULTS 2019 RESULTS 2019 5

2019 OPERATIONAL SNAPSHOT 351 10 new Commissioned Dental Centres chairs – Up 13.6% 545 Dentist & Graduate Development Dentists Programs 89 >80 Dental Centres 1 – Patient Net Promoter Up 11.3% Score Notes: RESULTS 2019 RESULTS 2019 6 1.Warilla merged with Shellharbour

RESULTS DETAIL PACIFIC SMILES GROUP RESULTS 2019 7

STRONG GROWTH TRACK RECORD Patient Fees and Number of Centres EBITDA (Underlying) PACIFIC SMILES GROUP RESULTS 2019 8

SUMMARY INCOME STATEMENT FOR THE FULL YEAR ENDED 30 JUNE 2019 • Revenue up 16.9% to $122.2 million reflecting growth from UNDERLYING UNDERLYING CHANGE $ MILLIONS new centres opened in FY 2018 and FY 2019 and strong FY 2019 FY 2018 patient fee growth in same centres Revenue 122.2 104.5 16.9% Gross profit 110.3 96.5 14.4% • Same centre patient fee growth of 8.6% (2018: 5.1%), EBITDA 22.8 21.5 6.0% above our expectations of approximately 5%. Strong Depreciation and amortisation (9.4) (7.8) (20.0%) growth from less mature centres as utilisation ramps over EBIT 13.4 13.7 (2.2%) time Net interest expense (0.7) (0.4) (68.4%) • Profit before tax 12.7 13.3 (4.1%) The EBITDA was impacted by the following adverse items: Tax (3.8) (4.0) 5.5% – Higher than expected telecommunication infrastructure Net profit after tax 8.9 9.3 (3.5%) costs of $0.7 million; and – Lower than expected fees per appointment of $0.4m Key operating metrics Number of Dental Centres 89 80 11.3% • Corporate costs represented 6.2% of patient fees in FY Number of Commissioned Dental Chairs 351 308 14.0% 2019 compared to 6.0% in FY 2018. The increase in Patient Fees ($m) 187.4 164.5 13.9% corporate costs reflects the investment in new roles and Same Centre Patient Fees growth 8.6% 5.1% learning and development to support future growth Key financial metrics • D&A increased by $1.6 million, reflecting the acceleration of Earnings per share (cents) 5.9 6.1 new centre developments in recent years EBITDA margin 18.7% 20.6% EBITDA to Patient Fees margin 12.2% 13.1% • EBITDA performance in H2 2019 was strong, growing at EBIT margin 11.0% 13.1% 9.6% on H2 2018 PACIFIC SMILES GROUP RESULTS 2019 9