Slide 1: Results presentation, Financial Year ended 30 June 2016
EBOS Group Ltd For personal use only Results presentation Financial Year ended 30 June 2016 Patrick Davies Chief Executive Officer John Cullity Chief Financial Officer 25 August 2016
Slide 2: Disclaimer
Disclaimer The information in this presentation was prepared by EBOS Group Ltd with due care and attention. However, the information is supplied in summary For personal use only form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliabil
Slide 3: Group Financial Results
For personal use only 1 Group Financial Results A-Frame automatic picking system, Symbion Keysborough facility, 3 Melbourne, Australia
Slide 4: Record Revenue and Profit Performance for FY16
Record Revenue and Profit Performance for FY16 Total Revenue Return on Capital Employed For personal use only $ Up 17.0% (+16.5% Constant FX) 7.1b Up 260bps 16.3% Total EBITDA Earnings per share $ 225.5m Up 14.6% (+14.0% Constant FX) 84.0c Up 18.7% (+18.2% Constant FX) Total NPAT Final Divid
Slide 5: Strong growth continues
Strong growth continues Revenue NPAT Earnings Per Share For personal use only NZ $m NZ $m Cents per share 7,101 127 84.0 5,757 6,068 11.1% 106 17.4% 70.8 15.7% CAGR 92 CAGR 62.8 CAGR FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 Operating Cash Flow Return on Capital Employed NZ $m 224 16.3% 114 134 1
Slide 6: EBOS Approach
EBOS Approach For personal use only Our Healthcare and Animal Care strategic focus is centred on Disciplined Capital Investing for Growth Leading Market Positions Management Two types of investments: We aim to have positions of scale • Cash generation to drive scope for • External acquisitions – we
Slide 7: FY16 Highlights
FY16 Highlights For personal use only Investments Capital Management Investments of $108.4m made in FY16 Record operating cashflow of $224m • Acquisition of Red Seal (November 2015) • Tight control over management of working capital • Acquisition of Zest (October 2015) • Net debt reduction of $69m t
Slide 8: Strong Full Year financial performance
Strong Full Year financial performance • Full Year Group Revenue increase of $1,033.4m For personal use only Constant FX NZ$m FY16 FY15 Var Var or 16.5% (constant FX): Revenue 7,101.5 6,068.1 17.0% 16.5% – Healthcare up 16.9%. Gross Operating Revenue 676.5 600.2 12.7% 12.2% – Animal Care up 10.0%. E
Slide 9: Segment earnings and GOR mix
Segment earnings and GOR mix EBITDA by segment Gross Operating Revenue (GOR) FY16 For personal use only Constant FX NZ$m FY16 FY15 Var Var Healthcare 195.0 170.2 14.6% 14.2% Animal Care 42.3 37.1 14.0% 13.0% Corporate (11.9) (10.6) (12.0%) (13.3%) Group 225.5 196.7 14.6% 14.0% FY16 GOR mix Group Fin
Slide 10: Healthcare Results
For personal use only 2 Healthcare Results Top left: Chemmart pharmacist and Minfos Business Development Manager. Top right: Symbion, Keysborough, Melbourne. Bottom left: EBOS Healthcare, Auckland. 10 Bottom right: ProPharma, Auckland
Slide 11: Healthcare segment
Healthcare segment Strong trading performances across Australia and New Zealand For personal use only Constant FX NZ$m FY16 FY15 Var Var • Revenue increase of $993.5m or 16.9% (constant FX): Healthcare segment – Australia up 18.9%. – New Zealand up 10.0%. Revenue 6,686.4 5,692.9 17.5% 16.9% EBITDA 1
Slide 12: Healthcare segment Pharmacy Services
Healthcare segment Pharmacy Services Pharmacy For personal use only • Pharmacy revenue in Australia grew by 12.2% (constant FX), Pharmacy Constant FX attributable to: NZ$m FY16 FY15 Var% – new wholesale business; Revenue 3,907.8 3,531.9 10.6% GOR 332.6 312.7 6.4% – OTC product category sales; and GO
Slide 13: Proposed Investment in Terry White Group (including Chemmart)
Healthcare segment Pharmacy Proposed Investment in Terry White Group (including Chemmart) For personal use only • EBOS has entered into an agreement to merge Chemmart with Terry White Group Limited (TWG) to create one of Australia’s largest retail pharmacy networks. • EBOS Group will sell the Chemma
Slide 14: Healthcare segment Consumer Products
Healthcare segment Consumer Products For personal use only • Red Seal acquisition for $80 million was completed on 30 November Consumer Products Constant FX 2015. NZ$m FY16 FY15 Var% Revenue 86.4 61.8 39.8% • Red Seal is a leader in key NZ segments of the natural health products GOR 37.2 25.9 43.3%
Slide 15: Healthcare segment Institutional Healthcare
Healthcare segment Institutional Healthcare For personal use only • EBOS continues to expand its position as a specialised, unique Institutional Healthcare Constant FX and essential partner across a number of areas of Institutional NZ$m FY16 FY15 Var% Healthcare in Australia and New Zealand, primari
Slide 16: Healthcare segment Contract Logistics
Healthcare segment Contract Logistics For personal use only • Healthcare Logistics (NZ) maintained its leading market position Contract Logistics Constant FX and combined with cost management, delivered strong earnings NZ$m FY16 FY15 Var% growth. Revenue 495.0 373.7 32.5% GOR 60.5 54.4 11.3% • Symbi
Slide 17: Animal Care Results
For personal use only 3 Animal Care Results Selection of our Animal Care brands of BlackHawk and Vitapet and17an Animates store in Auckland.
Slide 18: Animal Care segment
Animal Care segment BlackHawk drives the significant increase in Revenue and Earnings For personal use only Constant FX • Revenue increase of $39.8m or 10.0% primarily from NZ$m FY16 FY15 Var Var growth of branded products (including BlackHawk, Animal Care segment Vitapet) and wholesale operations (
Slide 19: Animal Care segment Full Year Performance Overview
Animal Care segment Full Year Performance Overview For personal use only • Our premium pet food brand continues to receive very strong support and is performing above expectations. Sales grew 55% in FY16 on a like-for-like 12 month basis. • Vitapet recorded sales growth of 7.0% (constant FX) driven
Slide 20: Group Financial Information
For personal use only 4 Group Financial Information EBOS Healthcare warehouse, 20 Auckland, New Zealand
Slide 21: Cash Flow
Cash Flow Another year of strong Operating Cash Flow For personal use only • Operating cash flow of $224.1m assisted NZ$m FY16 FY15 Var$ Var% by effective working capital management. EBITDA 225.5 196.7 28.8 14.6% • Reduction in net interest payments of Net interest paid (20.1) (21.9) 1.8 $1.8m or 8.
Slide 22: Working Capital and Cash Conversion
Working Capital and Cash Conversion For personal use only • Working capital management discipline is a key focus NZ$m June 2016 June 2015 of the Group. Net Working Capital Trade receivables 1,302.8 787.9 • Cash conversion cycle improved to 13 days. Inventory 578.5 518.3 Trade payables (1,539.9) (865
Slide 23: Net Debt, Gearing and Debt Maturity
Net Debt, Gearing and Debt Maturity Net Debt and Gearing Debt Maturity Profile – facility limits and term For personal use only 350 40% 450 300 35% 400 444 316 317 30% 350 250 Net debt (NZ$m) 300 Gearing ratio 248 25% 200 NZ$m 24.4% 250 23.2% 20% 150 200 18.5% 15% 150 100 10% 92 100 50 5% 50 - - 85
Slide 24: Earnings and Dividends per share, ROCE
Earnings and Dividends per share, ROCE Earnings and Dividends per share Return on Capital Employed For personal use only DPS EPS 84.0 70.8 62.8 Cents per share ROCE % 58.5 16.3% 41.0 47.0 13.7% 12.8% FY14 FY15 FY16 FY14 FY15 FY16 • EPS growth of 18.7% (18.2% constant FX) in FY16 • Return on Capital
Slide 25: Summary and Outlook
For personal use only 5 Summary and Outlook Masterpet warehouse, 25 Wellington, New Zealand
Slide 26: Summary and Outlook
Summary and Outlook • In FY16, EBOS has further strengthened its position as the largest diversified Australasian For personal use only marketer, wholesaler and distributor of healthcare, medical, pharmaceutical and animal care products. • EBOS continues to derive the benefits of its diversified por
Slide 27: Supporting Information
For personal use only Supporting Information EBOS Group locations 27 in Australia and New Zealand
Slide 28: Foreign exchange
Foreign exchange Movement in the NZD:AUD cross-rate positively impacted EBITDA by $1.1m in FY16 For personal use only Revenue and EBITDA by currency AUD Average AUD NZ Group • 80% of the Group’s earnings (EBITDA) are Operations NZD: AUD Operations Operations Consolidated generated in AUD. $m AUD tra
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: Term Definition For personal use only Actual results Results translated into NZ dollars at the applicable actual monthly exchange rates ruling in each period.
Slide 30: www.ebosgroup.com
For personal use only www.ebosgroup.com