UDG Healthcare plc · This Presentation has been prepared by UDG Healthcare plc and contains certain forward-looking statements, beliefs or opinions, including statements with respect

UDG Healthcare plcFY18 Results Presentation & Group Overview

Year to 30th September 2018

2 : UDG Healthcare plc

Page No.

FY18 Overview 5-9

FY18 Financial Overview 10-19

Divisional Overview: Ashfield 20-28

Divisional Overview: Sharp 29-31

FY18 Summary 32-34

UDG Healthcare Group & Divisional Overview 35-50

Financial Appendices 51-59

Contents

FY18 Results Presentation

London Stock Exchange, 27th November 2018

Brendan McAtamney & Nigel Clerkin


Forward Looking StatementsThis 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.

They represent expectations for the Group’s business, including statements that relate to the Group’s future prospects, developments and strategies, and involve risks and uncertainties both general and specific. The Group has based these forward-looking statements on assumptions regarding present and future strategies of the Group and the environment in which it will operate in the future. However, because they involve known and unknown risks, uncertainties and other factors including but not limited to general economic, political, financial and business factors, which in some cases are beyond the Group’s control, actual

results, performance, operations or achievements expressed or implied by such forward looking statements may differ materially from those expressed or implied by such forward-looking statements and accordingly you should not rely on these forward looking statements in making investment decisions. Except as required by applicable law or regulation, neither the Group nor any other party intends to update or revise these forward looking statements after the date these statements are published, whether as a result of new information, future events or otherwise.

FY18 Overview


UDG Healthcare OverviewUDG Healthcare is a global leader in the healthcare advisory, communications, commercial, clinical and packaging services industry. The Group is organised and managed across two divisions, Ashfield and Sharp, and employs over 8,500 people in 26 countries.

2Operating divisions

8,500 +Employees

Top 30Pharma companies

as clients

FTSE 250Listed

30+ yearDividend growth

26Countries


Diversification (FY18)

Business Unit Operating Profit Split*

43%

25%

32%

Geographic Revenue Split

54%

23%

23%

Customer Concentration (net revenue)

7%

30%

63%

Ashfield Communications & AdvisoryAshfield Commercial & Clinical

Sharp

North AmericaUK

Rest of World / Other

# 1 Customer# 2 -10 CustomersOther Customers

* Excluding Aquilant


FY18 Financial Highlights

+24%

+22% constant currency

+10%


+14%


13.1%

Increased from 12.6%

+17%


16.0c

Full year increase+20%

EPS* NET REVENUE

OPERATING PROFIT*

NET OPERATINGMARGIN

PROFIT BEFORE TAX*

DIVIDEND

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


FY18 Strategic & Operational Updates

Acquisitions of CreateNYC and SmartAnalyst in

July 2018

Disposal of Aquilant in

August 2018

Strong Sharp US second half momentum

Three Sharp facilities upgraded during the

year

Continued rollout of Future Fit initiatives (HR,

Finance, IT)

Ashfield Commercial & Clinical technology

investments

Restructuring & reinvestment programme

Ashfield Communications

continues to differentiate its offering with a global network of businesses driven by a

“science first” perspective

Ashfield Communications &

Advisory now accounts for 63% of Ashfield’s

operating profit

FY18 Financial Overview


FY18 Financial Summary

The average 2018 exchange rates were $1:€0.8403 and $1:£0.7436 (2017 $1:€0.9047 and $1:£0.7891)* Before amortisation of acquired intangible assets, transaction costs and exceptional items

2017 2018 Increase Constant FX Increase

Net Revenue $1028.5m $1129.7m ↑10% ↑6%

Operating profit* $129.3m $147.5m ↑14% ↑12%

PBT* $118.9m $138.8m ↑17% ↑15%

EPS (C)* 37.12 45.94 ↑24% ↑22%

ROCE% 12.8% 12.7% N/A N/A

DPS (C) 13.30 16.00 ↑20% ↑20%

Net debt to EBITDA (0.32x) (0.34x) N/A N/A


81.6

41.3

98.4

45.8

Ashfield Sharp

+21% ↗

+11% ↗

FY18 Divisional 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

• Reported operating profit growth +21%

• Underlying^ operating profit growth flat after incremental Future Fit operating costs (+5% excluding Future Fit costs)

• Net operating margin of 13.4% (up from 12.9%)

● FY17 ● FY18

• Reported and underlying^ operating profit growth +11%

• Strong US momentum during the second half of the year

• Net operating margin of 14.7% (up from 13.7%)

OPERATING PROFIT ($M)

NET OPERATING MARGIN*

12.9% 13.4% 13.7% 14.7%

UNDERLYING GROWTH RATE

0% +11%

UNDERLYING GROWTH RATE (EX FUTURE FIT)

+5% +11%


FY18 EPS

GROUP EPS ($c) +24%(+22% CONSTANT CURRENCY)

0.5

37.1

45.9

+10%+2%4.8

3.5

+12%


FY18 Cash Flow ($m)

* Includes Aquilant disposal proceeds & deferred consideration payments

EBITDA/NET DEBT 0.34x (SEPTEMBER 2017 EBITDA/NET DEBT: 0.32x);

83

(50)

(2) (61)(53)

+182

(18)

(26)

(50)

(61)

(18)

(26)

(33)


Free Cash Flow

Working Capital

FY17 WC outflow $(19)m:• Normal outflows c. $(24)m• Extended payment terms c. $(15)m• Timing benefit c. $20m

FY18 WC outflow $(50)m:• Normal outflows c. $(10)m• Extended payment terms c. $(10)m• Reversal of 2017 timing benefit c. $(20)m• Future Fit timing outflow c. $(10)m

Targeting medium term Free Cash Flow conversion of 60-65%

$m FY17 FY18

EBITDA 157 182

Working capital (19) (50)

Capex (51) (61)

FCF 87 71

FCF Conversion % 55% 39%


FY18 Exceptional Items

Category Description $m FY18

Aquilant Net charge in relation to the impairment of goodwill on Aquilant, in part offset by one-off payments received relating to the exit of contracts with VSI and Link, and loss on disposal

($91.7m)

Deferred Tax Credit Gain reflecting a one-off benefit from a reduction in the Group’s deferred tax liabilities following US tax changes

$9.7m

Deferred Contingent Consideration Release in respect of Cambridge BioMarketing, MicroMass and SellXpert following a review of performance against expected earn-out targets

$10.6m

Restructuring Redundancy and onerous lease costs ($14.4m)

Net exceptional items after tax ($85.8m)


Capital Allocation Priorities

Strong balance sheet to support

continued investment

priorities

Acquisitions in line with strategic priorities

Reinvestment to support continued sustainable

growth

Progressive shareholder returns policy


Acquisitions ($750m+) & Disposals ($625m+) since 2012

Do you have this logo?

2014 2016 2018

DISPOSALS

2012 2013

2014 2016 2017

2017 2018

ACQUISITIONS

2014

Bethlehem site


1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Historic dividends translated from € to $

16.0

Progressive Dividend Policy 30 year+ history of consistent dividend growth ($ cent)

Full year dividend increase of +20% in FY18

Divisional Review:

Ashfield


+21% ↗

62.1

36.3

98.4

0.010.020.030.040.050.060.070.080.090.0

100.0

Communications & Advisory Commercial & Clinical Totals

+44% ↗

Ashfield FY18 Financial Overview

-6%

● 2017 ● 2018OPERATING PROFIT ($M)

* Net operating margin adjusts for pass-through revenues. Pass through revenues of $191.3m in 2017 and $185.5m in 2018


22.9% 21.6% 8.7% 8.1% 12.9% 13.4%


+10% -10% 0%

UNDERLYING GROWTH RATE (EX FUTURE FIT)

+13% -5% +5%

43.038.6

81.6↗


43.0

62.1

Operating Profit

+44% ↗

Ashfield Communications & Advisory FY18 Financial Overview

● 2017 ● 2018




22.9% 21.6%


+10%

Reported operating profit increased by +44%

Underlying operating profit +10%. Excluding the impact of additional Future Fit costs, underlying operating profit +13%

Outlook: Strong underlying growth dynamics expected to continue in FY19. Reported growth will be tempered by planned investments, including STEM aXcellerate

UNDERLYING GROWTH RATE (ex Future Fit)

+13%

63%Ashfield Communications & Advisory accounted for 63% of Ashfield’s operating profit in FY18, up from 53% in FY17


Ashfield Healthcare Communications – Overview & Strategy

What we doScientific and brand creative communications, digital and patient-centredcontent, specialised agencies in behavioural science, rare disease, PR and on-demand advertising services.

Where we do itOffices in New York, New Jersey, Raleigh, Manchester, London,

Boston 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

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

Our peopleWe have 1,200 people, including 400 with a PhD or equivalent


Ashfield Advisory - Overview & Strategy

165+ peopleoffering audit services

across 51 countries

120 + peoplebased in Philadelphia,

Boston and London

Acquired in

2016Acquired in

2017

Healthcare consulting focused on brand strategy, planning and launch

Acquired in

2018

Strategic commercial, consulting and analytics business

140 + peoplebased in New York, India

and London

STRATEGY STRATEGY STRATEGY

International expansion

Client and service expansion & cross-selling

Q – do we need another STEM X slide beyond this

Accelerating excellence in brand strategy execution


Ashfield Advisory - Overview & Strategy

Incremental Headcount+50 during Q4 18 and into 2019

120 + peoplebased in Philadelphia,

Boston and London

External supported research to prioritise market opportunity

Acquired in

2017

Healthcare consulting focused on brand strategy, planning and launch

Acquired in

2018

Strategic commercial, consulting and analytics business

140 + peoplebased in New York, India

and London

STRATEGY STRATEGY STRATEGY

Internationalexpansion

Client and service expansion & cross-selling

Q – do we need another STEM X slide beyond this

Maximize Biopharma market opportunity & pilot Medical Device and Clinical Trials market


Ashfield Communications & Advisory – Recent Collaborations

Client A+ =+

Client B+ =+

Client C+ =+


38.6 36.3

Operating Profit

Ashfield Commercial and Clinical FY18 Financial Overview

● 2017 ● 2018




8.7% 8.1%


-10%

Reported operating profit declined by -6%

Underlying operating profit -10%. Excluding the impact of additional Future Fit costs, underlying operating profit -5%

Outlook: Market conditions that impacted underlying growth rates in FY18 are expected to continue in FY19

UNDERLYING GROWTH RATE (ex Future Fit)

-5%

Content???

-6%

↗ 37%Ashfield Commercial & Clinical accounted for 37% of Ashfield’s operating profit in FY18


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

5,500 people

50/50

Divisional Review:

Sharp


Sharp FY18 Financial Overview

● 2017 ● 2018

+15% ↗ +11% ↗


(1.1)

OPERATING MARGIN

16.1% 17.5% 0.8% -2.5% 13.7% 14.7%

40.9

0.4

41.346.9 45.8

US Europe Totals


+15% N/A +11%

Strong performance with reported and underlying operating profit +11%

Sharp US delivered a strong performance, driven by improving momentum during the second half of the year. Reported and underlying operating profit increased by +15%

Sharp Europe operating loss of $1.1 m due to activity levels with some clients being lower than previously anticipated.

Outlook:

Sharp division well positioned to deliver underlying operating profit growth in line with the Group’s guidance of 10%+ over the medium term


Sharp FY18 Strategic Overview

Sharp Investments

10 Year Anniversary of Sharp US Acquisition

Increasing biotech and injectables focus

Sharp Bethlehem Sharp

Rhymney

Sharp Heerenveen

FY18 Summary


Market Dynamics

New drug launches in the US are expected to average 40-45 per annum to 2022, a

significant increase compared to the approval rates over the past 5 years3

The total number of molecules in development in 2018 was 15,267, a 2.7% increase vs. 20172

Global healthcare spend forecasted to grow at 5-6% p.a. to reach $1.4 trillion by 20221

Specialty drugs forecasted to represent 52% of the top 100 product sales by 2024, accounting for 48% of spend in developed markets3

Orphan drug sector forecasted to double in size to 2024, accounting for approximately 20% of prescription sales3

Pharmaceutical R&D spend remains positive with forecasted growth rate of 3% to 20244

Keith – can you confirm what you need here

1 2018 and Beyond: Outlook and Turning Points. IQVIA Institute. March 2018.2 Pharma R&D Annual Review. Pharma Intelligence. February 2018.3 World Preview 2018: Outlook to 2024. Evaluate Pharma. June 2018.4 Medicines Use and Spending in the US: A Review of 2017 and Outlook to 2022.

IQVIA Institute. April 2018.


FY18 Summary

Lucy – any ideas how we could better title this slide

Continued investments in

infrastructure to support

sustainable growth

20% increase in full year dividend

to 16.0c $ per share

Net debt of $60.8 million at year end (0.34x) providing

significant capacity for continued M&A

Market dynamics remain

favourable

Diversified client base with limited exposure to drug

pricing

Strong EPS growth of 24%

(22% constant currency)

UDG Healthcare Group Overview

November 2018


Business Overview & Outlook

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

Clinical – A comprehensive integrated clinical trial supply and management service, from pre-clinical through to commercialisation.

Manufacturing – Clinical manufacturing services including analytical services, formulation development, over-encapsulation and placebo manufacture.

Packaging – Commercial packaging solutions in multiple formats including bottles, blisters, specialty and secondary packaging.

32%*of FY18Operating Profit

>10%Medium term operating profit growth outlook**

**Underlying growth

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

healthcare industries

* Excluding Aquilant

Advisory – Healthcare advisory, strategic consulting, analytics andbenchmarking audit services.

Communications –Scientific and brand creative communications, digital and patient-centred capabilities, specialised agencies in behavioural science, rare disease, PR and on-demand advertising services.

Commercial & Clinical – Commercial and clinical services including salesreps, patient services, contact centres, medical affairs and meetings and events.

5-10%68%*of FY18Operating Profit

Medium term operating profit growth outlook**

Technology – Technology to support both commercial and clinical packaging services including design, serialisation solutions and clinical IRT.


Capabilities to support clients at all stages of the product life cycle

PHASE 1-3 PRELAUNCH LAUNCH IN MARKET

ADVISORY

HEALTHCARE COMMUNICATIONS

COMMERCIAL & CLINICAL

COMMERCIAL

CLINICAL


Our Vision & Strategy

Our strategy is to capitalise on the increasing trend among pharmaceutical, biotech and medtech companies to

outsource specialist and non-core activities on an international basis.

Transform through people

Talent & leadershipQuality & complianceValues based culture

Improve productivityCapital deploymentMargin expansion

Operational excellence

Grow & expand market leading positions

Geographic & services expansionClient focus & commercial excellence

Supplementary sources of growth

Our vision to improve the lives of patients around the world by partnering with

pharmaceutical clients and healthcare providers


Investment Proposition

Positive market dynamics with growing FDA

approvals and trend towards

increased outsourcing

Global presence and strong market

positions, diversified by geography, services and customers

Not directly linked to drug pricing, fee for service model

Clear medium term underlying operating profit growth guidance

Investments to support sustainable

growth

1 2 3 4 5 6

Strong balance sheet to support

M&A

Divisional Overview


Ashfield Overview

68%

41.7

57.568.3 70.6

FY12 FY13 FY14 FY15 FY16 FY17 FY18

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

Operating profit* ($m)

81.6

26.7

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

7,000+People across 25 countries

Delivering services in

more than 50 COUNTRIES

Partnering with the top

30 GLOBAL PHARMA COMPANIES

10 YEARSof benchmarking data within STEM with over 300,000 observations

COMPLETED 2 ACQUISITIONS In FY18, committed over $82.4m on two acquisitions

TRANSFORMEDCommunications and Advisory now accounts for >63% of operating profits of Ashfield

98.4

~


ACQUIRED IN JUNE 2018

Broadens Ashfield Communications

service offering to provide entry into

the area of disruptive creative communications

DEAL STRUCTURE

Initial consideration of $17m rising to

$58.4m

US-BASED

HQ in Greenwich Village, NYC

FOUNDEDIN 2009

Healthcare creative communicationsfocused on the

tactical execution of marketing and

advertising plans

40+

FY18 Acquisitions

PEOPLE

LOCATIONS

Operations in New York, London and

India

FOUNDEDIN 2001

Strategic consulting services that helps

pharma and biopharma companies

identify the best products in their

pipeline to prioritiseand develop

140+PEOPLE

DEAL STRUCTURE

Initial consideration of $18m rising to

$24m

ACQUIRED IN JUNE 2018

Expands Advisory’s capabilities and

provides an opportunity to

establish a base of operations in India


Ashfield Advisory – Market Overview

Competitive landscape

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

Key Growth Drivers• Increasing outsourcing penetration

• Changing and increasingly complex therapies and launches

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

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

Estimated Ashfield market share <5%

Outsourced Market size $2.9bn

Estimated market growth

rate 6-8%

Estimated outsourcing rate 40-50%

Margin profile 15%-30%


Ashfield Communications – Market Overview

Competitive landscapeBroad range of peers including:

• Large advertising agencies (WPP, IPG, Havas, Omnicom),

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

• Fragmented market of smaller independent agencies


• Growth of speciality 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%



rate 3-8%




Ashfield Commercial & Clinical – Market Overview


Competitive landscape includes large players Syneos, IQVIA and Publicis.

In-county 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 speciality 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%



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~ Excluding Aquilant

20.6

25.9

34.038.2

41.3

FY12 FY13 FY14 FY15 FY16 FY17 FY18

32% Operating profit* ($m)

18.8

Sharp US

Sharp EU

Sharp Clinical

A global leader in contract packaging and clinical trial supply services

1,600Employees

Operations in

4 COUNTRIESBelgium, Netherlands

USA, UK

9 GMP & FDAApproved facilities45.8

~


Sharp Commercial – Market Overview

Competitive landscapeCompetitors include:

• Large pure play Contract Packaging Organisations (CPO) such as PCI

• Contract Manufacturing Organisations (CMO)

• Smaller scale CPO’s

Key Growth Drivers• Significant potential for increased outsourcing

• Demand for secondary packaging of injectable products

• Increasing requirement to access specialist technology solutions and capabilities

• Client demand for strategic relationships

Outsourced Market size $5-7bn


rate 6-8%

Estimated outsourcing rate c. 25%

Sharp market share US c. 12%, Europe <5%


Sharp Clinical – Market Overview


Large competitors include ThermoFisher, Catalent and Almac


• Demand from emerging and mid-size pharma companies for end-to-end integrated services offerings

• Growth of digital solutions including IRT services and ‘Track and Trace’

Outsourced Market size $6-8bn


rate 6-8%


Sharp market share < 5%


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:

Financial Appendices


Segmental Overview

12 mths to Sept 2018 Change

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

UnderlyingOp Profit*reported

Op Profit*Underlying

Net^ Margin

Ashfield $735.9 $98.5 13.4% 17% (1%) 21% 0.4%** +50bp

Sharp $311.1 $45.8 14.7% 3% 1% 11% 11% +100bp

Aquilant $82.7 $3.3 4.0% (14%) (1%) (49%) (29%) (270bp)

Total $1,129.7 $147.5 13.1% 10% (1%) 14% 2%** +50bp

^ Adjusted for pass-through revenues. Pass through revenues of $185.5m in 2018 *Operating profit before amortisation of acquired intangible assets, acquisition costs and exceptional items** Without additional Future Fit costs, Ashfield underlying operating profit growth would have been +5% and Group underlying operating profit growth would have been +5%. Group underlying operating profit would have been +7% excluding Future Fit & Aquilant.


Ashfield Segmental Summary

12 mths to Sept 2017 2017 2017 2018 2018 2018%

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

$187.8 $43.0 22.9% $287.7 $62.1 21.6% 53% 10% 44% 10%**

Commercial & Clinical

$442.3 $38.6 8.7% $448.2 $36.4 8.1% 1% (6%) (6%) (10%)**

Total $630.1 $81.6 12.9% $735.9 $98.5 13.4% 17% (1%) 21% 0%**

^ Adjusted for pass-through revenues. Pass through revenues of $191.3m in 2017 and $185.5m in 2018 *Operating profit before amortisation of acquired intangible assets, acquisition costs and exceptional items** Without additional Future Fit costs, Ashfield underlying operating profit growth would have been 5% - Ashfield Communications & Advisory +13% and Ashfield Commercial & Clinical -5%


Sharp Segmental Summary

12 mths to Sept 2017 2017 2017 2018 2018 2018%

Change%

Change%

Change%

Change

Revenue $mOp Profit*

$mMargin Revenue $m

Op Profit* $m

Margin RevenueRevenue

UnderlyingOp Profit*


US $254.0 $40.9 16.1% $267.7 $46.9 17.5% 5% 5% 15% 15%

Europe $48.1 $0.4 0.8% $43.4 ($1.1) (2.5%) (10%) (17%) N/a N/a

Total $302.1 $41.3 13.7% $311.1 $45.8 14.7% 3% 1% 11% 11%

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


Aquilant Segmental Summary

12 mths to Sept 2017 2017 2017 2018 2018 2018%

Change%

Change%

Change%

Change

Revenue $mOp Profit*

$mMargin Revenue $m

Op Profit* $m

Margin RevenueRevenue

UnderlyingOp Profit*


Aquilant $96.3 $6.4 6.7% $82.7 $3.3 4.0% (14%) (1%) (49%) (29%)

*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

Calculation2018 $’000

2017 $’000

Net assetsNet debt

874,09360,787

880,65653,266

Assets before net debtHistorical intangible amortisationHistorical restructuring costs

934,880189,206

38,365

933,922176,997

47,494

Total Capital Employed 1,162,451 1,158,413

Average total capital employedAdjusted operating profit

1,160,432147,506

1,006,869129,280

Return on Capital Employed 12.7% 12.8%

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 year excluding net debt adjusted for the historical amortisation of acquired intangible assets and restructuring charges.


Adjusted EBITDA Calculation

Calculation As per Preliminary Statement2018 $’000

2017 $’000

Adjusted Operating Profit

Share-based payment expense

Depreciation

Amortisation of computer software

Joint venture profit share

(Profit)/loss on disposal of property, plant and equipment

Income Statement

Cash Flow Statement

Cash Flow Statement

Note 10

Income Statement

Cash Flow Statement

147,506

5,069

24,477

6,036

(958)

(340)

129,280

3,613

21,221

3,384

(667)

55

Adjusted EBITDA 181,790 156,886

Adjusted EBITDA is continuing and discontinued earning before net interest, tax, depreciation, share-based payment expense, amortisation of intangible assets, transaction costs, exceptional items adjusted for the share of joint venture profits, dividends received from joint ventures, profit/(loss) on disposal of property, plant and equipment and impairment of intangible assets.

UDG HEALTHCARE PLC20 RiverwalkCitywest Business CampusCitywestDublin 24 Ireland

[email protected]+353 1 468 9000

Documents

UDG Healthcare plc · This Presentation has been prepared by UDG Healthcare plc and contains certain forward-looking statements, beliefs or opinions, including statements with respect