Ebos Group Limited · NZX:EBO
Ebos — H1 FY23 Earnings Presentation
30 slides from Ebos's earnings presentation, Feb 22, 2023
Slide 1: Investor Presentation: Interim Financial Results
For personal use only INVESTOR PRESENTATION Interim Financial Results Half year ended 31 December 2022 22 February 2023 REPLACE WITH ALTERNATIVE (MORE MODERN) WAREHOUSE IMAGE IN THIS SQUARE
Slide 2: Disclaimer
DISCLAIMER For personal use only The information in this presentation was prepared by EBOS Group Limited (“EBOS” or the “Group”) with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and, to the extent permitted by law, no repres
Slide 3: Group Financial Results
For personal use only GROUP FINANCIAL RESULTS 3
Slide 4: H1 FY23 Summary Results
H1 FY23 SUMMARY RESULTS EBOS has achieved another record half year result, driven by organic growth and contribution from For personal use only acquisitions $m Underlying1 Var Statutory Var2 Revenue 6,145.7 17.0% 6,145.7 17.0% EBITDA 289.2 39.3% 289.2 44.7% EBIT 239.5 41.6% 226.0 40.1% NPAT 141.6 29
Slide 5: Key Highlights
KEY HIGHLIGHTS Continued strong organic growth in Healthcare and Animal Care combined with substantial contribution from For personal use only acquisitions completed in FY22 Healthcare • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), EBITDA up 37.6
Slide 6: Key Highlights (cont.)
KEY HIGHLIGHTS (CONT.) EBOS has successfully managed a challenging macro environment For personal use only Supply side • Despite operational challenges resulting from supply side constraints, including manufacturer out of stocks, constraints and availability of staff and other key inputs, the Group
Slide 7: Business and Segment Performance
BUSINESS AND SEGMENT PERFORMANCE All of our Healthcare and Animal Care divisions contributed double-digit growth, driven by positive organic For personal use only growth and Institutional Healthcare benefitted from acquisitions completed in FY22 GOR bridge ($m) Underlying EBITDA bridge ($m) H1 FY23
Slide 8: Group Performance
GROUP PERFORMANCE For personal use only $m H1 FY23 H1 FY22 Var Var% • Revenue of $6,145.7m, an increase of $894.9m or 17.0%: Underlying Results o Healthcare up 17.6%; Revenue 6,145.7 5,250.9 894.9 17.0% o Animal Care up 6.3%. Gross Operating Revenue 778.3 575.0 203.3 35.4% EBITDA 289.2 207.7 81.5 39
Slide 9: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance over the long term For personal use only Underlying EBITDA ($m) Underlying EPS (cents per share) DPS (NZ$ cents per share) 13.5% CAGR1 10.8% CAGR1 11.2% CAGR1 96 437 129 89 115 78 367 101 72 336 94 69 86 90 63 289 77 59 250 2
Slide 10: Sustainability Snapshot
SUSTAINABILITY SNAPSHOT For personal use only 1 10
Slide 11: Results Healthcare
11 For personal use only RESULTS HEALTHCARE
Slide 12: Healthcare Segment
HEALTHCARE SEGMENT The Healthcare segment generated positive organic growth in each division and benefitted from the For personal use only contribution of acquisitions $m H1 FY23 H1 FY22 Var$ Var% • The performance of our Healthcare segment reflects strong organic growth supplemented by the completi
Slide 13: Community Pharmacy
COMMUNITY PHARMACY For personal use only • Revenue increased by $578.6m (18.4%) and GOR increased by $m H1 FY23 H1 FY22 Var$ Var% $47.5m (17.2%), benefitting from: Revenue 3,731.4 3,152.8 578.6 18.4% o Customer and market share growth; GOR 324.0 276.5 47.5 17.2% o Strong performance from our communi
Slide 14: TerryWhite Chemmart
TerryWhite Chemmart that’s real chemistry For personal use only • TerryWhite Chemmart added 26 net new partners to its national network in H1 FY23, Network sales growth in H1 FY23 continuing its impressive growth in pharmacy numbers and growing the network to over 540 stores. Total sales up 18.6% •
Slide 15: Institutional Healthcare
INSTITUTIONAL HEALTHCARE For personal use only • Institutional Healthcare revenue increased by $285.6m (19.4%) $m H1 FY23 H1 FY22 Var$ Var% and GOR increased by $128.7m (81.3%) largely due to: Revenue 1,760.0 1,474.3 285.6 19.4% o Contribution from medical technology (previously know as GOR 287.1 15
Slide 16: Contract Logistics
CONTRACT LOGISTICS For personal use only • Contract Logistics GOR increased by $15.7m (26.0%) $m H1 FY23 H1 FY22 Var$ Var% attributable to: Revenue 459.3 450.0 9.2 2.1% o Growth in Australia from new and existing principals; and GOR 76.2 60.5 15.7 26.0% o Growth in New Zealand from continued demand
Slide 17: Results Animal Care
17 For personal use only CARE ANIMAL RESULTS
Slide 18: Animal Care Segment
ANIMAL CARE SEGMENT The Animal Care segment has continued to capitalise on strong pet market conditions and is benefiting from For personal use only previous investments in our pet food manufacturing facility • Animal Care revenue increased by $17.2m (6.3%) and EBITDA $m H1 FY23 H1 FY22 Var$ Var% in
Slide 19: Continued Product and Brand Growth
CONTINUED PRODUCT AND BRAND GROWTH Our key brands demonstrated solid growth For personal use only H1 FY23 Sales Categories Sales growth drivers Growth1 • Strong consumer support for our products. • Continued investment in marketing to drive increased brand awareness and Black Hawk 15.2% retail suppo
Slide 20: Financial Information and Outlook
For personal use only FINANCIAL INFORMATION AND OUTLOOK 20
Slide 21: Cash Flow
CASH FLOW For personal use only Underlying Cash from Operating Activities ($m)1 $m H1 FY23 H1 FY22 Var$ Var% Underlying EBITDA 289.2 207.7 81.5 39.3% H1 H2 302.2 Interest paid (33.4) (13.8) (19.6) 291.0 Tax paid (78.5) (66.8) (11.7) 231.8 Net working capital and other (16.2) (12.5) (3.7) movements 2
Slide 22: Working Capital and ROCE
WORKING CAPITAL AND ROCE For personal use only Working Capital Return on Capital Employed (ROCE) $m H1 FY23 FY221 H1 FY22 Net Working Capital Trade receivables 1,394.7 1,278.1 1,216.3 Inventory 1,193.9 1,107.7 874.4 Trade payables/other (2,165.7) (1,997.8) (1,825.6) 18.0% 18.6% 18.2% 14.4% Total 423
Slide 23: Net Debt and Maturity Profile
NET DEBT AND MATURITY PROFILE For personal use only Net Debt and Net Debt : EBITDA ratio1 Cash and Debt Maturity Profile 1.94x 1.76x 963 1.28x 1.00x 0.85x 382 400 345 860 838 223 227 581 402 92 345 400 309 271 223 134 - Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Cash on FY23 FY24 FY25 FY26 FY27 Hand Underly
Slide 24: Earnings and Dividends Per Share
EARNINGS AND DIVIDENDS PER SHARE For personal use only Underlying Earnings per Share (cents) Dividends per Share (NZ cents) H1 H2 129.0 96.0 H1 H2 88.5 114.9 77.5 100.8 71.5 94.2 62.4 49.0 57.2 46.0 49.5 40.0 46.4 37.0 66.6 74.5 53.0 57.8 42.5 47.0 47.8 51.3 34.5 37.5 FY19 FY20 FY21 FY22 FY23 FY19 F
Slide 25: Outlook
OUTLOOK For personal use only • EBOS is pleased with the strong earnings growth in the first half of FY23 and we expect another full year of profitable growth. • EBOS‘ balance sheet is strong and well positioned to pursue growth opportunities. 25
Slide 26: Supporting Information
For personal use only SUPPORTING INFORMATION 26
Slide 27: Reconciliation of Statutory to Underlying Results
RECONCILIATION OF STATUTORY TO UNDERLYING RESULTS For personal use only H1 FY23 H1 FY22 $m EBITDA EBIT PBT NPAT EBITDA EBIT PBT NPAT Statutory result 289.2 226.0 192.6 132.2 199.9 161.3 147.5 101.9 LifeHealthcare PPA amortisation (non-cash) - 13.5 13.5 9.4 - - - - Transaction costs incurred on M&A -
Slide 28: Segment EBITDA and EBIT Reconciliation
SEGMENT EBITDA AND EBIT RECONCILIATION For personal use only EBITDA EBIT $m H1 FY23 H1 FY22 Var$ Var% H1 FY23 H1 FY22 Var$ Var% Healthcare Statutory 255.0 177.5 77.5 43.7% 197.7 142.9 54.8 38.3% add LifeHealthcare PPA amortisation (non-cash) - - - 13.5 - 13.5 add One-off items - 7.8 (7.8) - 7.8 (7.8
Slide 29: Glossary of Terms and Measures
GLOSSARY OF TERMS AND MEASURES Except where noted, common terms and measures used in this document are based upon the following definitions: For personal use only Term Definition Revenue Revenue from the sale of goods and the rendering of services. Gross Operating Revenue (GOR) Revenue less cost of
Slide 30: www.ebosgroup.com
For personal use only www.ebosgroup.com