Ebos Group Limited · NZX:EBO
Ebos — Shareholder Meeting (October 2024)
47 slides from Ebos's shareholder meeting presentation, Oct 23, 2024
Slide 1: EBOS Group Limited 2024 Annual Meeting
23 October 2024 NZX/ASX Code: EBO EBOS GROUP LIMITED 2024 ANNUAL MEETING Please see attached the Chair's speech, CEO's speech and presentation materials for the Annual Meeting of shareholders to be held today. For personal use only Authorised for lodgement with NZX and ASX by the Board of EBOS Group
Slide 2: Chair's address to shareholders
Chair’s address to shareholders I am pleased to report on another strong result for EBOS for the 2024 financial year which saw us adapt positively to the changing market dynamics and capitalise on opportunities to drive future growth. This result continues our long-term growth trajectory in deliveri
Slide 3: Chair's address (continued)
logistics share in Australia; and in our Animal Care segment, continuing to bring to market strong new product and brand initiatives. EBOS’s purpose, ‘advance opportunities to enrich lives’ applies not only to customers, patients and the communities we serve but also to our over 5,200 employees. As
Slide 4: Chair's address (continued)
relation to modern slavery and other social risks as part of our ethical sourcing framework. In addition, we continue to have the appropriate focus and work programs to protect our data and systems to emerging and dynamic threats. Together with other aspects of our corporate strategy, the Board over
Slide 5: CEO's Address to Shareholders
CEO’s Address to Shareholders Kia Ora and thank you Liz. May I also extend a warm welcome to everyone attending today’s Annual Meeting here in Auckland, as well as to those joining us online. Today, I’m pleased to provide a review of the company’s performance for the 2024 financial year, as well as
Slide 6: CEO's address: Healthcare segment
Our Healthcare segment delivered a solid performance with Revenue and Underlying EBITDA growth of 8% and 6% respectively. The strong performance was driven by organic growth across each of our Community Pharmacy, TWC and Institutional Healthcare businesses. In terms of our geographic regions, our Au
Slide 7: CEO's address: Animal Care segment
Turning now to our Animal Care segment. Animal Care generated double digit EBITDA growth of $13 million (up 13.2%) driven by the strong performance of our branded businesses. The branded business was supported by ongoing resilience in the pet food category, the contribution of the Superior acquisiti
Slide 8: CEO's address: outlook and trading
Second, in light of the changed dynamics in the Australian community pharmacy industry, we are targeting $300m in new pharmacy revenues, and thirdly, we continue to make solid progress with our cost efficiency exercise that has identified between $25 to $50 million of cost savings over FY25 and FY26
Slide 9: Annual Meeting October 2024
For personal use only ANNUAL MEETING 23 October, 2024
Slide 10: Disclaimer
DISCLAIMER 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 representation is made as to
Slide 11: Welcome
For personal use only WELCOME 2024 Annual Meeting 3
Slide 12: How to participate in virtual meeting: Q&A
HOW TO PARTICIPATE IN VIRTUAL MEETING Shareholder and Proxyholder Q&A participation For personal use only Written questions If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at any time. Type your question into the field and press su
Slide 13: How to participate in virtual meeting: online voting
HOW TO PARTICIPATE IN VIRTUAL MEETING Online voting For personal use only Shareholder and Proxyholder voting Once the voting tab has been opened, the resolutions and voting options will allow voting. To vote, simply click on the Vote tab, and select your voting direction from the options shown on th
Slide 14: Introducing Our Board
For personal use only INTRODUCING Our Board 6
Slide 15: Board of Directors
BOARD OF DIRECTORS Introducing our Board For personal use only Elizabeth Coutts Dr Tracey Batten Mark Bloom Independent Chair of the Independent Independent Board. Joined Director. Joined Director. Joined 2003. Appointed 2021. 2022. Chair 2019. Stuart McLauchlan Julie Tay Peter Williams Independent
Slide 16: Agenda
AGENDA For personal use only 01 Presentation: Elizabeth Coutts, Chair 02 Presentation: John Cullity, CEO 03 Business of meeting 04 Conclusion 8
Slide 17: Presentation: Elizabeth Coutts, Chair
PRESENTATION For personal use only Elizabeth Coutts Chair 9
Slide 18: Investing for Growth
INVESTING FOR GROWTH Consistent with our strategy of investing for growth, EBOS made multiple acquisitions and investments in FY24 to support future growth. For personal use only Acquisitions Target Business Unit Region Previously announced Transmedic (39%) Medical Technology Southeast Asia Superior
Slide 19: Diverse and Well-Established Growth Strategies
DIVERSE AND WELL-ESTABLISHED GROWTH STRATEGIES EBOS has multiple organic and inorganic growth drivers across the Group that are well established. For personal use only Community Pharmacy Institutional Healthcare Contract Logistics Animal Care Strategic ✓ Continued growth of ✓ Increased exposure to ✓
Slide 20: Our People and Safety
OUR PEOPLE AND SAFETY We strive to build an engaged, diverse and talented workforce at EBOS. For personal use only Highlights • EBOS Group Workplace Discrimination, Harassment & Bullying policy updated. • Catalyst and Talent Council • Safety in the workplace continues to be a major focus for EBOS an
Slide 21: Sustainability and Community
SUSTAINABILITY AND COMMUNITY Our key initiatives • Environmental Stewardship For personal use only • Reducing building related Scope 1 and 2 Greenhouse Gas (GHG) emissions. • First phase of solar array project complete with electrification of new 500kW roof- mounted solar array at Parkes, NSW. • Eth
Slide 22: Board Renewal
BOARD RENEWAL • Under the Board renewal process, Peter Williams will retire as a director at the conclusion of today’s meeting. For personal use only • Carefully considered succession with appointments of Julie Tay and Mark Bloom. • Matthew Muscio will today seek election as a director of the Compan
Slide 23: Dividend
DIVIDEND Final dividend For personal use only • EBOS’ Directors announced a final FY24 dividend of NZ 61.5 cents per share. • The final dividend was fully franked for Australian taxation purposes and imputed to 25% for New Zealand taxation purposes. Full year • Taking the full-year dividend to NZ 118
Slide 24: Presentation: John Cullity, CEO
PRESENTATION For personal use only John Cullity Chief Executive Officer 16
Slide 25: Video
For personal use only 17 VIDEO
Slide 26: FY24 Group Highlights
FY24 GROUP HIGHLIGHTS EBOS records another year of strong growth as we adapt to the changing market dynamics and capitalise on opportunities to drive future growth. For personal use only • Strong organic earnings growth. • Continued strong earnings in Healthcare and Animal Care. • TWC franchise netw
Slide 27: FY24 Group Summary Results
FY24 GROUP SUMMARY RESULTS $m Underlying Var Statutory Var For personal use only Revenue 13,189.1 7.8% 13,189.1 7.8% EBITDA 624.3 7.3% 605.6 6.5% EBIT 521.7 7.7% 476.7 7.4% Net Profit After Tax 303.4 7.7% 271.5 7.2% Earnings Per Share (cents) 157.9c 6.8% 141.3c 6.3% Total Dividen
Slide 28: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance over the long term Underlying EBITDA1 ($m) Underlying EPS1 (cents per share) DPS (NZ$ cents per share) For personal use only 14.7% CAGR2 10.3% CAGR2 10.8% CAGR2 624 5 2 11 15 11 14 6 4 1 115 6 1 1 2 6 4 6 6 5 6 25 262 22 66 4
Slide 29: FY24 Healthcare Performance
FY24 HEALTHCARE PERFORMANCE The Healthcare segment delivered solid revenue and earnings growth despite the current macroeconomic environment. For personal use only $m FY24 FY23 Var Var% Underlying EBITDA ($m and %) Revenue 12,610.0 11.676.6 933.5 8.0% Underlying EBITDA 548.0 517.0 31.0 6.0% Underlyi
Slide 30: TerryWhite Chemmart
TERRYWHITE CHEMMART Continued strong growth of the TerryWhite Chemmart network. For personal use only Highlights • Australia’s largest health-advice oriented community pharmacy store network. • 600th store opening in July. • Named ‘Inside Retail Retailer of the Year’.1 • Maintained position as Austr
Slide 31: FY24 Animal Care Performance
FY24 ANIMAL CARE PERFORMANCE The Animal Care segment delivered double-digit Underlying EBITDA growth driven by the performance of higher margin businesses and the contribution from the Superior acquisition. For personal use only $m FY24 FY23 Var Var% • Animal Care revenue increased by $18.2m (3.2%)
Slide 32: New Product Development Update
NEW PRODUCT DEVELOPMENT UPDATE Consistent with our Animal Care growth strategy, several new product development launches occurred in FY24 diversifying our product offering and complementing our strong existing core products. For personal use only Existing core branded portfolio Recent new products b
Slide 33: Supporting Our Communities
SUPPORTING OUR COMMUNITIES For many years, EBOS has strived to ‘help out’ by providing support to various healthcare, animal care and community focussed charities. For personal use only EBOS is proud to support the following organisations: Black Hawk officially partnered with Guide Dogs Australia 25
Slide 34: Near-Term Growth Strategy
NEAR-TERM GROWTH STRATEGY We are making solid progress on the key focus areas of our near-term strategy to increase earnings. For personal use only Illustrative FY24 to FY25 underlying EBITDA Growth sources Description • The Group is expected to continue to record positive 1 Base business growth org
Slide 35: Trading Update
TRADING UPDATE • EBOS has had a pleasing start to the FY25 financial year with Underlying EBITDA1 growth recorded for the three months to 30 September 2024 of 7.4% compared to the prior corresponding period (excluding the For personal use only CWA contract).2 • EBOS reiterates its guidance for FY25
Slide 36: Business of Meeting
For personal use only BUSINESS OF MEETING 2024 Annual Meeting 28
Slide 37: Annual Report and Financial Statements
ITEM 1 Annual Report and Financial Statements For personal use only To consider and receive the annual report and the financial statements for the year ended 30 June 2024 and the audit report thereon. 29
Slide 38: Resolution – Election of Director
ITEM 2 Resolution 1 – Election of Director For personal use only It is resolved that Matthew Muscio be elected as a director of the Company, with effect from 1 January 2025. Mr Muscio agreed to be put forward for election by shareholders as a non-executive director of EBOS, with effect from 1 Januar
Slide 39: Resolution – Re-election of Director
ITEM 3 Resolution 2 – Re-election of Director For personal use only It is resolved that Tracey Batten be re-elected as a director of the Company. Dr Batten (MBBS, MHA, FRACMA, MBA, FAICD) was appointed as a director on 1 July 2021. She is a member of the Remuneration Committee. Dr Batten is currentl
Slide 40: Resolution – Re-election of Director
ITEM 4 Resolution 3 – Re-election of Director For personal use only It is resolved that Elizabeth Coutts be re-elected as a director of the Company. Ms Coutts (ONZM, BMS, FCA) was appointed as a director on 3 July 2003. She is Chair of the Remuneration Committee and a member of the Audit and Risk Co
Slide 41: Resolution – Non-executive director remuneration
ITEM 5 Resolution 4 – Non-executive director remuneration For personal use only It is resolved that, pursuant to NZX Listing Rule 2.11.1 and ASX Listing Rule 10.17, the total remuneration for non-executive directors be increased by $166,750 from $1,643,250 per annum to $1,810,000 per annum with effe
Slide 42: Resolution – Auditor's remuneration
ITEM 6 Resolution 5 – Auditor’s remuneration For personal use only It is resolved that the directors of the Company be authorised to fix the fees and expenses of Deloitte as auditor of the Company. • Deloitte is automatically reappointed as the auditor of the Company under section 207T of the Compan
Slide 43: Any other business
ITEM 7 To consider any other business that can be properly brought before the meeting. For personal use only 35
Slide 44: Farewell and Thank You
FAREWELL AND THANK YOU For personal use only Peter Williams • Independent Director • Joined 2013 36
Slide 45: Conclusion
For personal use only CONCLUSION 2024 Annual Meeting 37
Slide 46: Thank You For Joining Us
For personal use only THANK YOU FOR JOINING US www.ebosgroup.com
Slide 47: EBOS Group Limited
EBOS GROUP LIMITED Ajuo asn jeuossad s04