Ebos Group Limited · NZX:EBO
Ebos — H1 FY2014 Earnings Presentation
17 slides from Ebos's earnings presentation, Feb 19, 2014
Slide 1: HY Result – to 31 December 2013
EBOS Group Ltd HY Result – to 31 December 2013 For personal use only 19 February 2014
Slide 2: HY Summary
HY SUMMARY For personal use only • First six months since making our largest acquisition – progress is on track • Operationally – all businesses performed well • Gained „preferred respondent‟ status from NZ Crown owned HBL – contract to run the national medical products supply chain • Strong operati
Slide 3: Our Playground
OUR PLAYGROUND For personal use only • NZ Operational • Australia Performance • PNG/Pacific Islands What we do • Healthcare • Animal care • Government • Multinationals Market dynamics • Wholesale/Retail • Manufacturing 3
Slide 4: Reported Income Statement
REPORTED INCOME STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 For personal use only 2013 2012 NZ$ million NZ$ million REVENUE 3,002 755 EBITDA 96.2 27.2 EBIT 84.9 24.9 EBT 69.3 20.8 (TAX) (19.9) (5.8) NPAT 49.4 15.0 EBOS GROUP – TRADING SUMMARY (by currency source) FOR THE SIX MONTHS ENDED 31
Slide 5: Currency
CURRENCY • For personal use only Australia now our major revenue/earnings component • Currency cross rate of NZD/AUD moved from 0.82 at time of PFI to 0.92 as of 31 December. • Actual results are translated each month at the ruling cross rate. 0.94 NZD v AUD Exchange Rate 0.92 0.9 0.88 0.86 0.84 0.8
Slide 6: Prospective Information – How We Fared
PROSPECTIVE INFORMATION – HOW WE FARED For personal use only PFI forecasts – what we said at the time of the acquisition 6 Months to 31 December 2013 NZ$ Millions Actual PFI Original PFI Normalised* Revenue 3,001.5 2,980.7 3,169.6 EBITDA 96.2 97.3 103.6 EBIT 84.9 82.8 88.0 Finance Costs (15.6) (17
Slide 7: Well Funded for Future Growth
WELL FUNDED FOR FUTURE GROWTH For personal use only • Strong cash generation of $49.6 million for the 6 month reporting period provides platform for expansion. • Strong profit performance with net interest bearing debt to net interest bearing debt plus equity at 26.7% and interest cover at 5.5 times
Slide 8: Operational Achievements
OPERATIONAL ACHIEVEMENTS For personal use only • Results for the group on track and in real terms above the PFI allowing for major currency shifts. • All businesses performing well • ASX listing achieved • Strong positive cashflow • Conservative gearing levels post the large Symbion deal • Dividend
Slide 9: Interim Dividend of 20.5 Cents per Share
INTERIM DIVIDEND OF 20.5 CENTS PER SHARE For personal use only • The interim dividend of 20.5 cents per share is up 5.5 cents on the final dividend paid in October 2013. • The interim dividend is partially imputed to 50% at the current Company Tax Rate of 28%. • The Dividend Reinvestment Plan will b
Slide 10: Essential to Health
ESSENTIAL TO HEALTH For personal use only • We are a proven performer, trusted and innovative – we‟ve been doing this for 90 years • Health is the Government‟s biggest spend - we are helping the Government achieve more cost efficient healthcare to New Zealanders and Australians (John Key visit to EB
Slide 11: Home Grown Success Story
HOME GROWN SUCCESS STORY For personal use only OUR BUSINESS MODEL IS EXPORTABLE AS FROM $20M TO $6B IN 19 ACQUISITIONS IN 12 GLOBALISATION AND 20 YEARS YEARS COMMODITISATION CONTINUES 11
Slide 12: Focus on Shareholders
FOCUS ON SHAREHOLDERS For personal use only EBOS has a track We are now listed on record of outstanding We have been listed on the ASX – coinciding shareholder returns – at the NZ sharemarket with our expanding around 19% per annum since 1960 business interests in for the past 10 years Australia 12
Slide 13: Corporate Governance
CORPORATE GOVERNANCE For personal use only • Succession Planning has been a key focus of the EBOS board • Key objectives: • Provide transparency of process (anticipating change/looking forward two years) • Maintain continuity at both Board and Management level – EBOS has a successful formula • Playi
Slide 14: Current Leadership Structure
CURRENT LEADERSHIP STRUCTURE For personal use only MARK WALLER STRATEGIC LATE 2014 GROWTH LATE 2015 CHAIRMAN Current Position: CEO Years with Company: 30 PATRICK DAVIES EBOS LATE 2014 GROUP CEO Current Position: CEO Symbion Years with Company: 23 RICK CHRISTIE LATE 2015 RETIREMENT Current Position:
Slide 15: Current Leadership Structure (continued)
CURRENT LEADERSHIP STRUCTURE (continued) For personal use only A JOURNEY OF LEADERSHIP TRANSITION JOHN CULLITY LATE 2014 EBOS Group CFO Current Position: Symbion CFO Years with Company: 5 DENNIS DOHERTY LATE 2014 RETIREMENT Current Position: CFO Years with Company: 26 15
Slide 16: Outlook
OUTLOOK For personal use only • The best base, business mix and people in the sector from which to grow • Policy of not providing forecasts. Traditionally trading mix is 52/48 for 1H/2H • Exciting prospects via Onelink and HBL • Currency remains on our radar • The benefits of scale – we have the bal
Slide 17: Thank You
For personal use only Thank You 17