Investor Presentation

1H'21

Dr Daryl Holmes OBE Founder & Managing

Director

$5.9M

NPAT up 35%

$10.5M

Bank debt down 30%

Financial results (continued)

  • • Over The Counter (OTC) Revenue was up 8% to $34.8M.

1H'21

1H'20

Change

Total Revenue EBITDA

Depreciation and amortisation

Earnings before interest and tax

Finance costs

Profit before Tax

Income Tax Expense

Net Profit After Tax

Earnings Per Share (cents)

Key metrics

23,784 10,969 2,575

23,495 1% 9,375 17% 2,821 -9%

8,394

6,554 28%

8,128

6,081 34%

5,911

1,697 31%

4,384 35%

18.53 35%

  • • EBITDA was also boosted by $2.0M JobKeeper receipts.

    • OTC Revenue 34.8M 32.1M

    • EBITDA Margin 46% 40%

    • EBIT Margin 35% 28%

    • PBT Margin 34% 26%

    • NPAT Margin 25% 19%

    Statutory Revenue was up 1% to $23.8M.

  • • Variation in growth rate because of $1.5M non recurring income recognised in statutory revenue in 1H'20 from profit on disposal of practice, de-recognition of contingent liability, and consulting income. Other income not considered as part of OTC Revenue.

  • • More importantly, Same Store Sales (SSS) increased by a record 10% on 1H'20 because of increase in number of patients seen and growth in fees earned per patient.

  • • EBITDA up 17% to $11.0M. SS EBITDA was up 15% because of 10% increase in revenue and improved staff and dentists efficiency. Productivity, measured by hours worked, improved from 76% to 89%.

  • • Finance costs decreased by 44% because of lower improvement in liquidity and less reliance on debt.

  • • Net Profit after Tax and EPS were up 35%.

  • • Dividend of 14.5 cents up 9% (58% pay out ratio).

* AASB 16 Leases implemented in FY'20

* AASB 16 Leases implemented in FY'20

Financial results (continued)

Summary Balance Sheet

31 Dec 20

30 June 20

Cash and cash equivalents Other current assets Property, plant and equipment Other non current assets

Total assets

Trade payables

Other liabilities

Borrowings

Other non -current liabilities Total liabilities

Net Assets

5,209 6,681

3,814 4,776

12,790 12,767

48,622 49,931

• Strong cash generation, cash inflow from operating activities up 42%

70,435 74,155 • Debt down by 30% from $15M at 30 June

4,265 4,300

2020 to $10.5M at 31 December 2020

because of positive free cash flows from

5,064 6,240 increased revenue and profits

10,500 15,000

6,522 7,482

26,351 33,022

44,084 41,133

  • • Cash expended in investing activities includes cost of acquiring a 3rd practice in Bundaberg

Summary Cash flow

Net cash inflow from operating activities Net cash outflow from investing activities Net cash outflow from financing activities Net decrease in cash and cash equivalents

Cash at beginning of 1H'21

Cash at the end of 1H'21

1H'21 8,807

1H'20 6,174

(1,416) (2,803)

(8,863) (2,412)

(1,472) 959

6,681 634

5,209 1,593

Highlights

1H'21 has seen strong performance through our digital channels, especially Paid (YoY increase of 5.46%) and email (YoY increase 5.24%). Online appointments made up an average of 11.53% of total appointments over the past 13 months.

% Online Appointments 16%

14%

12%

10%

8%

6%

4%

2%

0%

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21

* April 20 online appointments was the only available channel during COVID.

Monthly Online Bookings 2500

2000

1500

1000

500

0

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21

* April 20 online appointments was the only available channel during COVID.

1H'21 saw returning patients exceed an monthly average of 79%, with new patients making up just over 20%. This optimal returning patient percentage is due to strong relationships with our patients and the focus on recalls and treatment planning.

% of New Patients 40%

35% 30% 25% 20% 15% 10% 5% 0%

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21

* April 20 spike due to new patient influx during COVID restrictions

1H'21 saw call centre scale up to full staffing capacity in August due to the demand of outstanding recall appointments. Post-COVID saw patients more receptive to scheduling their missed / cancelled preventative care appointments.

% Call Centre Recall Appointments 14%

12%

10%

8%

6%

4%

2%

0%

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21

The upward trend in productivity that was presented for FY'20 has continued into FY'21 i.e. utilising our providers better providing 1300SMILES with more revenue.

Productivity 1H'20 vs. 1H'21 100%

95% 90% 85% 80% 75%

70%

65%

Jul

Aug

Sep

Oct

Nov

Dec

1H'201H'21

105 Denham Street Townsville Qld 4810

PO Box 5021 Townsville Qld 4810

tel 07 4720 1300 | fax 07 4771 5217 emailadmin@1300SMILES.com.au

ABN 91 094 508 166www.1300SMILES.com.au

Thankyou

Any questions please?

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1300 Smiles Limited published this content on 16 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2021 08:50:05 UTC.