IVE GROUP LIMITED — AGM Information 2024

Nov 18, 2024

IVE Group Limited 2024 Annual General Meeting

Managing Director’s Presentation Matt Aitken

19 November 2024

idea execution

Annual General Meeting 19 November 2024

Contents

Key highlights	3
Financial performance	4
Growth initiatives	5
Packaging	6
Creative, Content and Integrated Solutions	7
Lasoo	9
The proven value of catalogues	11
Sustainability	13
FY25 trading update and outlook	15
Now to 2030	17

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Annual General Meeting

19 November 2024

Key highlights

Financial performance

• All key profit metrics up on a strong pcp with solid margin expansion

• NPAT/margin higher but impacted by increased net finance costs

• Strong uplift in operating cash flow – gearing below target

Operational updates

• Ovato – full year run-rate synergies in FY25

• Sustainability initiatives on-track

Growth initiatives

• Packaging

• cornerstone acquisition of JacPak

• no change in expected cost and revenue synergies

• implementation of organic expansion plans

• Creative and Content expansion – acquired independent creative agency, Elastic Group

• Apparel – live trialing for a major international food retailer and a number of significant RFPs in train

• Ongoing investment in Lasoo given proof of concept and better than expected performance

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Annual General Meeting 19 November 2024

1 Financial performance dashboard

Strong performance (versus record PCP) with Ovato integration and JacPak acquisition completed

REVENUE

EBITDA

NPAT

EPS (NPAT)

EPS (NPATA[2] )

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MATERIAL GROSS OPERATING CASH PROFIT MARGIN FLOW TO EBITDA

NET DEBT

FULLY FRANKED FINAL DIVIDEND

IFRS NPAT

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CASH ON HAND

2 NPATA – NPAT excluding amortisation of acquired customer contracts

1 The underlying financial results are on a non-IFRS basis, exclude various non-operating items (refer Appendix A) and are not audited or reviewed

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Growth initiatives

Annual General Meeting 19 November 2024

Packaging

• Acquired Melbourne based folding carton producer, JacPak, on 31 October 2023

• JacPak contributed revenue of $28.3m during FY24 which was broadly in-line with annual revenue expectations of around $45m (considering seasonality and transfers to IVE’s Victorian printing operations)

• No change to expected synergies – cost savings of $2.4m locked-in with $15m of available capacity for organic revenue growth

• The Group has been encouraged by a number of new business wins since taking ownership of JacPak

• IVE intends servicing national brands through packaging operations in both Victoria and NSW, supported by our national logistics network:

• in Victoria, JacPak (IVE Packaging) will continue to operate as a standalone business with annual revenue capacity of $60m

• in NSW, IVE intends expanding its Sydney commercial printing site capability (with the addition of die cutting and gluing equipment) to also support the efficient production of folding carton packaging

• The standalone JacPak facility coupled with the Sydney expansion will result in total packaging revenue capacity of around $90m pa

• For Phase 2, additional investment would add a further $60m to capacity resulting in the Group achieving its stated ambition of generating annual packaging revenue of around $150m pa over 5 years

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Packaging revenue ambition

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$150m
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$60m
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$30m
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$90m
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$60m
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$15m
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$45m
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JacPak JacPak Phase 1 available revenue at NSW capacity capacity expansion[1]

Year 3 Phase 2 Year 5 revenue NSW/Vic revenue ambition expansion[1] ambition

JacPak revenue at acquisition

1 Additional capital expenditure required

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19 November 2024

Creative, Content & Integrated Solutions

• Fragmentation of the media landscape and proliferation of marketing channels has significantly increased the type, volume and frequency of content required for effective omni-channel marketing

• IVE is upscaling its Creative, Content & Integrated Solutions business to capture additional share of customer wallet and to access new revenue streams, markets and customers

• Initial focus has been on talent and capability – expanding the breadth and depth of service offering across strategy, creative, content production and technology

• To accelerate that expansion, IVE acquired Elastic Group, an independent creative agency that specialises in video content creation and visual communications – Elastic’s Sydney and Melbourne operations (including 40 staff) relocated and integrated

• Elastic retains an impressive portfolio of customers across automotive, pharmaceutical, government, sports & entertainment, food & beverage, finance and property

• IVE now has an unrivalled in-house marketing services offering, providing customers with a streamlined and simplified way of producing ideas and content for every marketing channel

Introducing Elastic: Elastic Reel 2024

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Annual General Meeting 19 November 2024

IVE has invested in new skills and capabilities that, when combined with our existing offering, enables us to help brands connect with their targeted consumers across every possible touch-point

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Podcast
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Annual General Meeting 19 November 2024

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19 November 2024
Lasoo — warrants modest additional investment
Retailers Live Unique Monthly Active Users (MAU) [1]
250 1,050,000
950,000
200
850,000
150
>
High Lasoo is exceeding the original
750,000 High
100 Base business case on all key metrics
Base
650,000
> In October 2024, Lasoo generated
50
550,000
annualised GTV of $19.2m, up
20% from $16m in June 2024 and
450,000
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
expects to exceed annualised
GTV of $24m in November 2024
>
Given proof of concept
Average Basket Size Gross Transaction Value (GTV) [1] and better-than-expected
$250 $4,500,000
performance, the Group will
$4,000,000 continue to invest in Lasoo
$200
$3,500,000 to further enhance customer
$3,000,000
experience and significantly
$150
$2,500,000
scale the business
High / Base
$2,000,000
$100 High > With modest additional
$1,500,000 Base
investment, Lasoo is now
$1,000,000
$50 expected to breakeven during
$500,000
FY28 with annualised GTV of
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
$120m (versus breakeven during
FY26 with GTV of $50m) with
Actual Original base business case Original high business case
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> With modest additional investment, Lasoo is now expected to breakeven during FY28 with annualised GTV of $120m (versus breakeven during FY26 with GTV of $50m) with plans to grow GTV to $150m by FY30

1 Total per quarter

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Annual General Meeting 19 November 2024

Lasoo — customer and retailer metrics

Who our customers are

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VIC
22%
NSW
33% 65+
9% 25-34
24%
55-64
12%
M F
18-24
14%
35-44
NT 22%
1%
45-54
ACT
19% QLD
2%
21%
TAS
2%
SA
7%
WA
12%
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What our customers are saying

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Lasoo Trust Pilot Score 4.4 ★ (Excellent)

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What our customers are buying

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Auto
Furniture Electronics
Fashion
Hardware
Toys & Baby
Alcohol
Health &
Beauty
Pets
Sports &
Outdoor
Home &
Garden
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Over 200,000 SKUs live on Lasoo

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The proven value of catalogues

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Annual General Meeting 19 November 2024

Catalogue credentials

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• Ø > Qualitative consumer research & quantitative commercial analysis Ø > Print catalogues are most frequently seen by retail shoppers[1] Ø >[[1]]

• Catalogues are the ‘cornerstone’ for optimising customer reach[[1]]

• Ø > Print catalogues have the highest engagement with consumers, across all age groups[1]

• Ø > Household distribution (relative to in-store distribution) of catalogues:[2] —

• Ø A highly profitable marketing activity;

  • Ø Increase sales by 6%-21% on average; and —

  • Ø Increase market share

1 Wide Eyes Market Research 2024

2 Quantium and Circana Scan Data Mat Aug 2024

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Sustainability

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Annual General Meeting

19 November 2024

Sustainability achievements in FY24

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Appointed Chief People & Sustainability Officer Established ESG Working Groups

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Improving measurement & reporting capabilities

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Publicly launched our Sustainability Strategy

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Trained 170 client-facing teams on Sustainability

62 employees received mental health first aid officer training

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Commenced 7-year partnership with Iberdrola for the generation of renewable electricity

Became a signatory to the Australian Packaging Covenant

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Commenced preparation of our Reconciliation Action Plan

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FY25 trading update and outlook

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Annual General Meeting 19 November 2024

FY25 trading update and outlook

• The business performed strongly in the 4 months to 31 October 2024:

• Revenue is broadly stable on PCP (excluding incremental JacPak revenue) with a strong new business pipeline for the remainder of the half

• Good progress filling available JacPak revenue capacity

• Material gross margin (MGM) improved relative to pcp

• Underlying EBITDA of $48.1m compared with $41.2m pcp reflecting margin expansion including incremental Ovato synergies (noting 1H24 included a $5.5m Ovato loss) and JacPak contribution

• The Company reaffirms FY25 underlying NPAT guidance of $45m - $50m which excludes the following items:

• Capital expenditure is expected to be around $24.5m, including $11.0m relating to the packaging capacity build-out (net of disposal proceeds)

• The Group’s FY25 dividend is expected to be held steady at 18.0¢ps:

  • Reflecting the already substantial dividend payout/yield; and

  • To preserve cash to pay down senior debt and/or other capital management initiatives.

• While diversification (typically through acquisition) remains a core element of IVE’s growth strategy, there is presently nothing on the Group’s radar with senior debt expected to reduce in FY25

• With a strong balance sheet and numerous organic growth initiatives in train, the business is well positioned for continued profitable growth

• Lasoo operating loss similar to FY24; and

• Restructure and integration costs of around $2.5m

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Now to 2030 — a vision for growth and leadership

Annual General Meeting

19 November 2024

Leverage our unique competitive advantage IVE’s extensive breadth and scale of client relationships provide a significant advantage in the Australian market. With across multiple sectors, businesses have witnessed our ability to scale alongside our largest accounts, building a strong level of trust in IVE. This ability to adapt and grow with our clients sets us apart from the competition. Our offering remains strong and we have access to blue-chip clients and capital; our focus is on building and integrating new capabilities to deliver even greater value.

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Annual General Meeting

19 November 2024

Our vision

We aim to further cement our position as Australia’s leading integrated marketing solutions provider, delivering impactful human-centered experiences for brands across As we move toward 2030, we must adapt to rapid changes in consumer expectations, advancements in technology — including hyper-personalisation — and the increasing shift towards sustainability as a core business driver.

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Flyers
Catalogues
Uniforms
Magazines
OOH
Promotional items
POS
Print
Packaging
Collectables
3PL
Warehousing
Merch & Apparel
Distribution
Creative & Content
eCommerce
Brand Activations
Social Lasoo
CX & Data
Apps
Radio
Websites
Events POS
Mobile
Gaming
SMS
Pop-ups In-store
Television
Email
Personalisation
Martech
Expos
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Annual General Meeting 19 November 2024

Our goal

• Our goal is to position IVE as the leader in omnichannel solutions, leveraging

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What truly sets IVE apart is our comprehensive manufacturing capability and national footprint. Our breadth and depth in this space enable us to deliver end-to-end solutions across print, packaging, logistics, and digital technology. This unique combination of capabilities solidifies our position as a fully integrated, omnichannel provider that can execute across every customer touchpoint, from concept to delivery, at scale.

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Thank you

IVE Group Limited ABN 62 606 252 644

Level 3, 35 Clarence Street Sydney NSW 2000 ivegroup.com.au Authorised by the IVE Board

Contact:

Tony Jackson Investor Relations tony.jackson@ivegroup.com.au +61 2 9089 8548

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