Ebos Group Limited · NZX:EBO
Ebos — H1 FY2018 Earnings Presentation
29 slides from Ebos's earnings presentation, Feb 21, 2018
Slide 1: Investor Presentation: Interim Financial Results, Half Year ended 31 December 2017
For personal use only Investor Presentation Interim Financial Results Half Year ended 31 December 2017 21 February 2018 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: H1 FY18 Strategic Highlights
H1 FY18 Strategic Highlights For personal use only Significant progress made HPS acquired June 2017 on two major capex and transition program M&A ACTIVITY INFRASTRUCTURE projects (Brisbane and completed Sydney) Black Hawk is the fastest growing premium pet food brand in Australia BRAND CASH Record H
Slide 5: H1 FY18 Summary Results
H1 FY18 Summary Results For personal use only Revenue EBITDA NPAT $3.9b $138.5m $76.7m -0.4% (-3.8% Constant FX) 15.6% (+11.7% Constant FX) 11.5% (+7.8% Constant FX)1 ROCE EPS Total Dividends per share 16.1% 50.4c 33.0c -0.1% 11.0% (+7.4% Constant FX) 10.0% Group Financial Results 5
Slide 6: Strong first half financial performance
Strong first half financial performance Constant FX • Revenue decrease is driven by lower hepatitis C NZ$m H1 FY18 H1 FY17 Var Var For personal use only medicine sales (which were $250m lower than H1 Statutory Results FY17, constant FX). Revenue 3,942.7 3,960.2 (0.4%) (3.8%) – Revenue excluding hepa
Slide 7: Healthcare Results
For personal use only [Update picture] 2 Healthcare Results 7
Slide 8: Healthcare segment
Healthcare segment Strong trading performances across Australia and New Zealand For personal use only Constant FX • EBITDA increase of $13.3m or 8.7% (constant FX): NZ$m H1 FY18 H1 FY17 Var Var – Australia up 9.0% assisted by the 6 month Healthcare segment contribution of HPS which was acquired in J
Slide 9: Community Pharmacy
Community Pharmacy For personal use only • Total Pharmacy Revenue to last year declined marginally Reported Constant FX (-0.6%, constant FX), attributable to lower hepatitis C NZ$m H1 FY18 H1 FY17 H1 FY17 Var% medicine sales (-$82m) and PBS reforms, partially offset Revenue 2,213.0 2,144.2 2,225.8 (
Slide 10: Institutional Healthcare
Institutional Healthcare For personal use only • With the acquisition of HPS in June 2017, EBOS Reported Constant FX continues to expand its position as a specialised and NZ$m H1 FY18 H1 FY17 H1 FY17 Var% essential partner across a number of areas, primarily in Revenue 1,259.4 1,322.8 1,369.9 (8.1%)
Slide 11: Consumer Products
Consumer Products For personal use only • Consumer products recorded a solid first half result with Reported Constant FX revenue growing 7.7% (constant currency). NZ$m H1 FY18 H1 FY17 H1 FY17 Var% Revenue 59.6 54.5 55.4 7.7% • Revenue growth was predominantly driven by strong Red GOR 22.4 22.0 22.3
Slide 12: Contract Logistics
Contract Logistics For personal use only • Healthcare Logistics (NZ) maintained its leading market Reported Constant FX position and combined with cost management, NZ$m H1 FY18 H1 FY17 H1 FY17 Var% Revenue 238.0 242.1 244.6 (2.7%) delivered another period of increased earnings. GOR 32.4 30.4 31.0 4.
Slide 13: Animal Care Results
For personal use only 3 Animal Care Results 13
Slide 14: Animal Care segment
Animal Care segment Improving EBITDA and margins from growth in key brands For personal use only Constant FX NZ$m • EBITDA increase of $3.2m or 11.7% (constant H1 FY18 H1 FY17 Var Var currency): Animal Care Revenue 207.9 216.1 (3.8%) (7.2%) – Black Hawk sales growth in Australia (+26%). EBITDA 24.3
Slide 15: Animal Care segment: H1 Summary of Results
Animal Care segment H1 Summary of Results Strong sales growth from Black Hawk in Australia of +26% For personal use only • Revenue declined principally due to two factors: – From March 2017, ceasing low margin wholesale sales to a major Australian retail chain. Revenue in H1 FY18 was impacted by $20
Slide 16: Pet Industry Overview
Pet Industry Overview The ANZ Pet sector is worth ~$9.5 billion and is growing at ~2% to 3% per annum¹ For personal use only ANZ Pet Market by segment • Market growth is being driven by trends towards Pet humanisation of pets, premiumisation of pet food and Products products, and outsourcing of serv
Slide 17: Group Financial Information
For personal use only 4 Group Financial Information EBOS Healthcare warehouse, 17 Auckland, New Zealand
Slide 18: Cash Flow
Cash Flow Record first half Operating Cash Flow performance For personal use only • Record first half operating cash flow ($101.7m) NZ$m H1 FY18 H1 FY17 Var$ demonstrating the Group’s disciplined focus on cash EBITDA 138.5 119.9 18.6 flow management. Net interest paid (10.7) (8.9) (1.8) • H1 FY18 Ca
Slide 19: Working Capital and ROCE
Working Capital and ROCE Working Capital Return on Capital Employed For personal use only NZ$m Dec 2017 June 2017 Dec 2016 Net Working Capital Trade receivables 1,027.6 1,015.1 1,112.5 Inventory 621.3 572.0 596.2 Trade payables/other (1,408.0) (1,353.7) (1,446.2) 16.4% 16.4% Total 240.9 233.4 262.5
Slide 20: Net Debt, Gearing and Debt Maturity Profile
Net Debt, Gearing and Debt Maturity Profile Net Debt and Gearing Debt Maturity Profile – current facility limits For personal use only 500 27.4% 27.3% 30% 600 450 400 25% 500 20.3% 350 18.5% 20% 400 - Net debt (NZ$m) Gearing ratio 300 NZ$m 250 15% 300 435 447 440 200 10% 200 150 288 100 248 267 5% 1
Slide 21: Earnings and Dividends per share
Earnings and Dividends per share Earnings per share Dividends per share For personal use only H1 H2 H1 H2 33.0 41.5 42.4 32.5 Cents per share Cents per share 34.6 25.0 30.0 33.0 36.2 42.5 45.4 50.4 22.0 26.0 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 • Statutory 1H EPS growth of 11.0% (7.4% constant cu
Slide 22: Outlook
For personal use only 5 Outlook Top: EBOS, Auckland. Symbion, Melbourne Bottom: ProPharma warehouse, Auckland. Black Hawk 22 display at Rangiora veterinary clinic (Christchurch).
Slide 23: Outlook
Outlook For personal use only • EBOS Group has recorded a strong start for the first half of the financial year across both our Healthcare and Animal Care segments. • We expect constant currency, underlying EBITDA for the 2018 financial year to grow by approximately 10% on the prior year. Outlook 23
Slide 24: Supporting Information
For personal use only 6 Supporting Information EBOS Group locations 24 in Australia and New Zealand
Slide 25: Foreign exchange
Foreign exchange Depreciation of the average NZD:AUD cross-rate by 4.0c to 0.912 positively impacted EBITDA by $4.1m in H1 FY18 For personal use only Revenue and EBITDA by currency AUD Average AUD NZ Group • 83% of the Group’s earnings (EBITDA) are Operations NZD: AUD Operations Operations Consolida
Slide 26: Segment earnings and GOR mix
Segment earnings and GOR mix EBITDA by segment Gross Operating Revenue (GOR) H1 FY18 For personal use only H1 H1 Constant FX NZ$m FY18 FY17 Var Var Healthcare 120.0 106.7 12.5% 8.7% Animal Care 24.3 21.1 15.3% 11.7% Corporate (5.8) (7.9) 26.3% 28.6% Group 138.5 119.9 15.6% 11.7% Transaction costs -
Slide 27: Reconciliation of statutory and underlying results
Reconciliation of statutory and underlying results For personal use only H1 FY18 H1 FY17 NZ$m EBITDA NPAT EBITDA NPAT Statutory result 138.5 76.7 119.9 68.8 Add back Transaction costs incurred on acquisitions - - 2.4 1.4 undertaken during the period Underlying result 1 138.5 76.7 122.3 70.2 Note 1:
Slide 28: 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 29: For personal use only
For personal use only www.ebosgroup.com