UDG Healthcare plc FY20 Interim Results Presentation & Group Overview 19 th May 2020 6 months to 31 st March 2020 www.udghealthcare.com www.udghealthcare.com
Forward looking statements 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. Some statements in this announcement are or may be forward looking international, national and local conditions which are beyond the Group’s statements. In particular, any statements that express forecasts, control, actual results, performance, operations or achievements expressed expectations and projections with respect to future matters, including or implied by such forward looking statements may differ materially from trends in results of operations, margins, growth rates, overall market trends, those expressed or implied by such forward looking statements and the impact of interest or exchange rates, the availability of financing, accordingly you should not rely on these forward looking statements in anticipated cost savings and synergies and the execution of the Group’s making investment decisions. Any forward looking statements speak only as strategy, are forward looking statements. They represent expectations for of the date they are made and, except as required by applicable law or the Group’s business, including statements that relate to the Group’s future regulation, neither the Group nor any other party intends to update or prospects, developments and strategies, and involve risks and uncertainties revise these forward-looking statements after the date these statements both general and specific, because they relate to events and depend upon are published, whether as a result of new information, future events or circumstances that will occur in the future. The Group has based these otherwise. Nothing in this document should be construed as a profit forward looking statements on assumptions regarding present and future forecast. UDG Healthcare plc and its directors accept no liability to third strategies of the Group and the environment in which it will operate in the parties. future. However, because they involve known and unknown risks, uncertainties and other factors including but not limited to general economic, political, financial, health, security and business factors, as well as www.udghealthcare.com 2
Presentation agenda Introduction & H1 FY20 overview Brendan McAtamney, CEO COVID-19 update Brendan McAtamney, CEO H1 FY20 financial overview Nigel Clerkin, CFO Divisional & strategic review Brendan McAtamney, CEO Summary www.udghealthcare.com 3
Brendan McAtamney Chief Executive Officer, UDG Healthcare plc www.udghealthcare.com 4
UDG Healthcare overview UDG Healthcare is a FTSE 250 global leader in the healthcare advisory, communications, commercial, pharma clinical and packaging services industries. companies as MSCI ESG 9,000 clients Rating employees Operating across two divisions, Ashfield and Sharp, UDG provides outsourced services which enable over 300 healthcare companies from large pharmaceutical to small 29 biotech to bring their products to market, supporting patients to access and adhere to their medications and educating and communicating effectively with healthcare Countries 5 year Listed professionals and patients on these products. operating profit CAGR Underpinned by positive market dynamics Growth of global Healthcare companies Increase in number of Growing proportion of pharma market and outsourcing to global FDA drug approvals specialty medicines R&D spend partners www.udghealthcare.com 5
Strong H1 FY20 financial performance Net Operating Net Revenue Margin +10% constant Increased from currency 12.0% in H1 FY19 +24% 97% ROCE Increased from 12.2% in H1 FY19 Operating Profit* +24% constant FCF Conversion currency EPS* +16% constant currency . *Operating profit and EPS are before the amortisation of acquired intangible assets, transaction costs and exceptional items. www.udghealthcare.com 6
The diversified shape of UDG Healthcare Business Unit Net Revenue Split Business Unit Operating Profit Split 34% 28% 31% 51% Ashfield Communications & Advisory Ashfield Commercial & Clinical Sharp 21% 35% Geographic Revenue Split Customer Concentration (Revenue) 8% 16% 66% North America # 1 Customer UK # 2 -10 Customers Rest of World / Other Other Customers 18% 34% 58% www.udghealthcare.com 7
In 2019, we achieved an MSCI ESG upgrade to AA UDG Healthcare is building a sustainable business while remaining cognisant of our In 2019 we were awarded responsibilities to our people, our Carbon Disclosure Project score of B-, exceeding the environment and our community. global average of C. www.udghealthcare.com 8
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COVID-19 Response CSR Protecting the Delivering Supporting Business Cost wellbeing of for our local impact management our people clients communities assessment & liquidity www.udghealthcare.com 10
COVID-19 Response – Protecting the wellbeing of our people CSR Cost CSR CSR CSR Delivering Supporting Business Protecting the for our local impact management wellbeing of clients communities assessment & liquidity our people Since the start of the COVID-19 outbreak, our priority has been the health and wellbeing of our people and their families: Global Response Seamlessly working Team from home Additional health and Wellbeing safety measures initiatives www.udghealthcare.com 11
COVID-19 Response – Delivering for our clients CSR Cost CSR CSR CSR Delivering Supporting Business Protecting the for our local impact management wellbeing of clients communities assessment & liquidity our people Despite the continued challenges, the Group and its people have continued to deliver for clients: Supported rapid launch of • In-field teams pivot to virtual • three oncology therapies engagement & support Supporting the development • Providing medical information • of COVID-19 vaccines and support for a COVID-19 anti- treatments viral clinical trial www.udghealthcare.com 12
COVID-19 Response – Supporting local communities CSR Cost CSR CSR CSR Delivering Supporting Business Protecting the for our local impact management wellbeing of clients communities assessment & liquidity our people Donating to local foodbanks and hospitals to support our communities #MarkforHeroes Supporting #fuellingthefrontline and #FeedTheHeroes Donating personal protective equipment to Greg Flynn, President of Ashfield Commercial & Clinical, hospitals and surplus raw materials for face shields delivering food parcels to the elderly in Philadelphia www.udghealthcare.com 13
COVID-19 Response – Business impact assessment CSR Cost CSR CSR CSR Delivering Supporting Business Protecting the for our local impact management wellbeing of clients communities assessment & liquidity our people Business Ashfield Communications Ashfield Commercial & Sharp 51%* 21%* 28%* & Advisory Clinical Performance in line with expectations Strong H1 FY20 with underlying operating profit Very strong H1 FY20 with underlying operating with H1 FY20 operating profit in line growth of 8% profit growth of 24% Pre-COVID-19 with PY • In-field based activities such as Meetings & • Demand remains very robust • Some project deferrals and cancellations Events, field based representatives within Medical Communications • Temporary disruption due to workforce experiencing disruption availability sequentially improving • STEM reduced activity levels COVID-19 • Slight offset from increased call • Social distancing impact on production • Limited impact to date on the remainder of Impact centre/medical information activity schedules being addressed through increased Communications & Advisory automation www.udghealthcare.com 14 *of H1 FY20 operating profit
COVID-19 Response – Cost management & liquidity CSR Cost CSR CSR CSR Delivering Supporting Business Protecting the for our local impact management wellbeing of clients communities assessment & liquidity our people Implementing cost control measures Group’s financial position remains to mitigate the potential negative robust with net debt / EBITDA of impacts from COVID-19 0.3x Suspended interim dividend Board and Senior Executive Team fee and base salary cut for H1 FY20 www.udghealthcare.com 15
UDG Healthcare is well positioned beyond the near-term challenges of COVID-19 Strong and Excellent diversified market business fundamentals Robust Very talented financial and dedicated position people www.udghealthcare.com 16
Nigel Clerkin Chief Financial Officer, UDG Healthcare plc www.udghealthcare.com 17
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