Slide 1: Investor Presentation FY17 Annual Results
For personal use only Investor Presentation FY17 Annual Results 24 August 2017 1
Slide 2: Disclaimer
Disclaimer For personal use only The information in this presentation was prepared by EBOS Group Ltd with due care and attention. However, the information is supplied in summary 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 Symbion Keysborough facility, Melbourne, Australia 3
Slide 4: FY17 Summary Results
FY17 Summary Results For personal use only Revenue Underlying EBITDA1 Underlying NPAT1 $7.6b $241.4m $138.6m 7.4% (+9.5% Constant FX) 7.1% (+9.6% Constant FX) 9.1% (+11.6% Constant FX) ROCE Underlying EPS1 Total Dividends per share 16.0% 91.3c 63.0c 0.3% 8.7% (+11.1% Constant FX) 7.7% Note 1: Exclud
Slide 5: Investment Highlights
Investment Highlights Acquisitions Capacity Expansion For personal use only TWC Investment: 31 October 2016 Significant progress made in FY17 on two key • Merger of Chemmart and Terry White has capex projects in Australia created of one of the largest retail • New Wholesale Distribution site pharmac
Slide 6: Record FY17 financial performance
Record FY17 financial performance Constant FX • Full Year Group Revenue increase of $524.4m or 9.5% For personal use only NZ$m FY17 FY16 Var Var (constant FX): Statutory Results – Healthcare up 9.8%. Revenue 7,625.9 7,101.5 7.4% 9.5% – Animal Care up 4.2%. Gross Operating Revenue 745.3 676.5 10.2% 1
Slide 7: Healthcare Results
For personal use only 2 Healthcare Results Top left: TerryWhite Chemmart Pharmacy in Melbourne. Top right: Selection of Red Seal toothpaste and vitamin products. Bottom left: Greystanes staff, NSW Bottom right: Vy Nguyen, HPS Pharmacy Manager (Moorabbin, Victoria) 7
Slide 8: Healthcare segment
Healthcare segment Strong trading performances across Australia and New Zealand For personal use only Constant FX • Revenue increase of $516m or 9.8% (constant FX): NZ$m FY17 FY16 Var Var – Australia up 11.8% (or 4.1% excluding hepatitis Healthcare segment C medicine sales). Sales of hepatitis C med
Slide 9: Community Pharmacy
Community Pharmacy For personal use only • Pharmacy revenue in Australia grew by 11.3% (constant Reported Constant FX FX), attributable to new hepatitis C medicine sales (albeit NZ$m FY17 FY16 FY16 Var% at lower gross profit margins) and the inclusion of Terry Revenue 4,181.9 3,907.8 3,828.3 9.2% Wh
Slide 10: Chemmart and Terry White merger
For personal use only • The merger of Chemmart with Terry White Group was completed in October 2016 to create one of Australia’s largest retail pharmacy store networks. • The integration of the two groups across marketing and merchandise, operations, store development and corporate functions is on s
Slide 11: Institutional Healthcare
Institutional Healthcare For personal use only • With the acquisition of HPS in June 2017, EBOS continues Reported Constant FX to expand its position as a specialised and essential NZ$m FY17 FY16 FY16 Var% partner across a number of areas, primarily in hospitals, Revenue 2,484.5 2,233.4 2,192.0 13.3
Slide 12: HPS Acquisition
HPS Acquisition For personal use only • The acquisition of HPS was completed in June 2017 and expands EBOS’ existing leading position in the Hospital channel. • HPS is Australia’s largest provider of outsourced pharmacy services to hospitals – servicing approximately 43% of the outsourced private ma
Slide 13: Consumer Products
Consumer Products • High growth for the year, driven by a full 12 months Reported Constant FX For personal use only contribution from Red Seal (7 months in FY16). NZ$m FY17 FY16 FY16 Var% Revenue 105.4 86.4 85.3 23.5% • Red Seal is performing in-line with expectations with revenue GOR 42.5 37.2 36.7
Slide 14: Contract Logistics
Contract Logistics For personal use only • Healthcare Logistics (NZ) maintained its leading Reported Constant FX market position and combined with cost management, NZ$m FY17 FY16 FY16 Var% delivered another period of increased earnings. Revenue 484.9 495.0 491.7 (1.4%) GOR 60.5 60.5 59.8 1.1% • GOR
Slide 15: Animal Care Results
For personal use only 3 Animal Care Results Selection of Animal Care products from the Black Hawk and Vitapet brands. 15
Slide 16: Animal Care segment
Animal Care segment Black Hawk and Vitapet revenue growth key to earnings performance For personal use only Constant FX EBITDA NZ$m FY17 FY16 Var Var NZ$m Animal Care segment Revenue 423.2 415.0 2.0% 4.2% EBITDA 44.7 42.3 5.7% 7.6% EBIT 41.2 38.6 6.7% 8.6% EBITDA% 10.57% 10.19% 38pts 38pts • EBITDA
Slide 17: Animal Care Segment Performance Overview
Animal Care Segment Performance Overview For personal use only PRODUCTS & BRANDS RETAIL VET WHOLESALE • Black Hawk, our premium pet food • Increased Animates profit due to • Lyppard recorded steady revenue brand, continues to receive very revenue growth of 15.9%. During growth from its major custome
Slide 18: Black Hawk Update
Black Hawk Update Black Hawk is focused on the natural premium pet For personal use only food segment. The premium pet food category is estimated to be growing at 4 - 5% per annum. Black Hawk Sales (pre and post acquisition) EBOS has been able to rapidly grow Black Hawk in +48% Australia through: +5
Slide 19: Group Financial Information
For personal use only 4 Group Financial Information EBOS Healthcare warehouse, 19 Auckland, New Zealand
Slide 20: Cash Flow
Cash Flow Another strong Operating Cash Flow performance For personal use only • Another year of strong cash flow ($143.9m) NZ$m FY17 FY16 Var$ demonstrating the Group’s disciplined focus on EBITDA 234.4 225.5 9.0 cash flow management. Net interest paid (19.0) (20.1) 1.0 • Capex spend in FY17 includ
Slide 21: Working Capital and Cash Conversion
Working Capital and Cash Conversion For personal use only • Working capital management discipline is a key focus of the NZ$m June 2017 June 2016 Group. Net Working Capital Trade receivables 1,015.1 1,302.8 • Cash conversion cycle of 14 days. Inventory 572.0 578.5 Trade payables (1,230.0) (1,539.9) O
Slide 22: Net Debt, Gearing and ROCE
Net Debt, Gearing and ROCE Net Debt and Gearing Return on Capital Employed For personal use only 500 40% 450 35% 400 27.4% 30% 350 24.4% Net debt (NZ$m) 23.2% Gearing ratio 300 25% 18.5% 250 20% 16.3% 435 16.0% 200 15% 150 316 317 13.7% 248 10% 12.8% 100 50 5% 0 0% Jun-14 Jun-15 Jun-16 Jun-17 FY14 F
Slide 23: Earnings and Dividends per share
Earnings and Dividends per share Underlying Earnings per share Dividends per share For personal use only Cents per share 84.0 91.3 62.8 70.8 FY14 FY15 FY16 FY17 • EPS growth of 11.1% on an underlying and constant FX basis in FY17 following a 18.2% increase in FY16. • Final dividend of 33.0 cents (im
Slide 24: Summary and Outlook
For personal use only 5 Summary and Outlook Top: EBOS, Auckland. Symbion, Melbourne Bottom: ProPharma, Auckland. Monash 24 veterinary clinic, a customer of Lyppard.
Slide 25: EBOS Strategic Approach
EBOS Strategic 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 • Acquisitions – we
Slide 26: Investing for growth and results achieved
It is now 4 years post the transformational Symbion deal We continue to deliver results while reinvesting for growth For personal use only Investments made (NZ$m) Results achieved Underlying EBITDA Underlying EPS cents per share NZ$m $470m+ over 241 FY17 FY17 91.3 last 4 years FY16 225 FY16 84.0 4 Y
Slide 27: Outlook
Outlook For personal use only EBOS Group has recorded a strong financial performance in FY17 and the Company is confident of further profit growth into FY18 on an underlying, constant currency basis. A performance update will be provided to shareholders at the Annual Meeting on 17 October 2017. Summ
Slide 28: Supporting Information
For personal use only 6 Supporting Information EBOS Group locations 28 in Australia and New Zealand
Slide 29: Foreign exchange
Foreign exchange Appreciation of the average NZD:AUD cross-rate by 2.4c to 0.945 negatively impacted EBITDA by $5.1m in FY17 For personal use only Revenue and EBITDA by currency AUD Average AUD NZ Group • 79% of the Group’s earnings (EBITDA) are Operations NZD: AUD Operations Operations Consolidated
Slide 30: Segment earnings and GOR mix
Segment earnings and GOR mix EBITDA by segment Gross Operating Revenue (GOR) FY17 For personal use only Constant FX NZ$m FY17 FY16 Var Var Healthcare 208.8 195.0 7.1% 9.5% Animal Care 44.7 42.3 5.7% 7.6% Corporate (19.1) (11.9) (60.8%) (61.3%) Group 234.4 225.5 4.0% 6.4% Transaction costs 7.0 - Corp
Slide 31: Reconciliation of statutory and underlying results
Reconciliation of statutory and underlying results For personal use only FY17 FY16 NZ$m EBITDA NPAT EBITDA NPAT Statutory result 234.4 133.3 225.5 127.0 Add back Transaction costs incurred on 7.0 5.3 - - acquisitions undertaken during the year Underlying result 1 241.4 138.6 225.5 127.0 Note 1: Unde
Slide 32: 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 33: For personal use only
For personal use only www.ebosgroup.com