Ebos Group Limited · NZX:EBO
Ebos — H1 FY2017 Earnings Presentation
27 slides from Ebos's earnings presentation, Feb 22, 2017
Slide 1: Interim Financial Results presentation, Half Year ended 31 December 2016
For personal use only EBOS Group Limited Interim Financial Results presentation for the Half Year ended 31 December 2016 Patrick Davies Chief Executive Officer John Cullity Chief Financial Officer 22 February 2017
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 A-Frame automatic picking system, Symbion Keysborough facility, 3 Melbourne, Australia
Slide 4: H1 FY17 Summary Results
H1 FY17 Summary Results¹ For personal use only Revenue EBITDA NPAT $4.0b $119.9m $68.8m 17.2% (+20.6% Constant FX) 5.4% (+9.0% Constant FX) 7.2% (+10.9% Constant FX) ROCE Earnings per share Dividend per share 16.0% 45.4c 30.0c 170 basis points 6.7% (+10.4% Constant FX) 15.4% ¹ EBITDA, NPAT and Earni
Slide 5: Strong growth continues
Strong growth continues For personal use only Revenue NPAT Earnings Per Share NZ$m NZ$m Cents per share 3,960 69 64 45.4 3,380 42.5 3,120 54 36.2 H1 FY15 H1 FY16 H1 FY17 H1 FY15 H1 FY16 H1 FY17 H1 FY15 H1 FY16 H1 FY17 Return on Capital Employed Operating Cash Flow NZ$m 16.0% 47 48 14.3% 31 12.9% H1
Slide 6: Strong first half financial performance
Strong first half financial performance H1 H1 Constant FX • First Half Group Revenue increase of $580m or For personal use only NZ$m FY17 FY16 Var Var 20.6% (constant FX): Statutory Results – Healthcare up 21.5%. Revenue 3,960.2 3,379.7 17.2% 20.6% – Animal Care up 5.9%. Gross Operating Revenue 364.
Slide 7: Segment earnings and GOR mix
Segment earnings and GOR mix EBITDA by segment Gross Operating Revenue (GOR) H1 FY17 For personal use only H1 H1 Constant FX NZ$m FY17 FY16 Var Var Healthcare 106.7 99.8 6.9% 10.6% Animal Care 21.1 19.6 7.8% 10.7% Corporate (7.9) (5.6) (40.7%) (42.9%) Group 119.9 113.7 5.4% 9.0% • Included in the H1
Slide 8: Healthcare Results
For personal use only 2 Healthcare Results Top left: TerryWhite Chemmart pharmacy in Melbourne. Top right: Selection of Red Seal toothpaste and tea products. Bottom left: EBOS Healthcare, Auckland. 8 Bottom right: ProPharma, Auckland
Slide 9: Healthcare segment
Healthcare segment Strong trading performances across Australia and New Zealand For personal use only H1 H1 Constant FX NZ$m FY17 FY16 Var Var • Revenue increase of $575m or 21.5% (constant FX): – Australia up 26.8%. Healthcare segment – New Zealand up 3.4%. Revenue 3,744.1 3,169.3 18.1% 21.5% EBITD
Slide 10: Healthcare segment – First Half Highlights
Healthcare segment – First Half Highlights COMMUNITY PHARMACY CONSUMER PRODUCTS For personal use only Constant FX Constant FX NZ$m H1 FY17 H1 FY16 Var% NZ$m H1 FY17 H1 FY16 Var% Revenue 2,144.2 1,902.6 12.7% Revenue 54.5 34.5 58.1% GOR 180.4 164.7 9.5% GOR 22.0 14.6 50.3% GOR% 8.4% 8.7% GOR% 40.3% 4
Slide 11: Healthcare segment – First Half Highlights
Healthcare segment – First Half Highlights INSTITUTIONAL HEALTHCARE CONTRACT LOGISTICS For personal use only Constant FX Constant FX NZ$m H1 FY17 H1 FY16 Var% NZ$m FY17 H1 FY16 Var% Revenue 1,322.8 920.5 43.7% Revenue 242.1 242.6 (0.2%) GOR 74.8 62.0 20.5% GOR 30.4 29.4 3.4% GOR% 5.7% 6.7% Note: GOR
Slide 12: Animal Care Results
For personal use only 3 Animal Care Results Selection of our Animal Care brands of BlackHawk and Vitapet and12an Animates store in Auckland.
Slide 13: Animal Care segment
Animal Care segment BlackHawk and Vitapet revenue growth key to H1 earnings performance For personal use only H1 H1 Constant FX • Revenue increase of $5.7m or 5.9% (Constant FX), NZ$m FY17 FY16 Var Var primarily from growth of branded products Animal Care segment (including BlackHawk and Vitapet). R
Slide 14: Animal Care segment – Half Year Performance Overview
Animal Care segment Half Year Performance Overview For personal use only • BlackHawk, our premium pet food brand, continues to receive very strong support and is outperforming the market. Revenue grew 48% in H1 FY17 on PRODUCTS last year, driven by an investment in marketing, additional ranging in p
Slide 15: Group Financial Information
For personal use only 4 Group Financial Information EBOS Healthcare warehouse, 15 Auckland, New Zealand
Slide 16: Cash Flow
Cash Flow Another strong Operating Cash Flow performance For personal use only • Operating cash flow of $47.9m assisted by NZ$m H1 FY17 H1 FY16 Var$ effective working capital management. EBITDA 119.9 113.7 6.1 Net interest paid (8.9) (9.7) 0.7 • Capex spend in H1 FY17 includes payments for the new d
Slide 17: Working Capital and Cash Conversion
Working Capital and Cash Conversion • Working capital management discipline is a key For personal use only NZ$m Dec 2016 June 2016 Dec 2015 focus of the Group. Net Working Capital Trade receivables 1,112.5 1,302.8 853.9 • Cash conversion cycle of 17 days. Inventory 596.2 578.5 548.8 Trade payables (
Slide 18: Net Debt, Gearing and ROCE
Net Debt, Gearing and ROCE Net Debt and Gearing Return on Capital Employed For personal use only 400 40% 350 379 35% 300 317 30% Net debt (NZ$m) 288 Gearing ratio 250 25% 26.2% ROCE % 248 200 23.2% 20% 20.3% 16.3% 16.0% 150 18.5% 15% 100 10% 13.7% 14.3% 50 5% 0 0% Jun-15 Dec-15 Jun-16 Dec-16 FY15 FY
Slide 19: Earnings and Dividends per share
Earnings and Dividends per share Statutory Earnings per share Dividends per share For personal use only H1 H2 H1 H2 Cents per share 41.5 32.5 34.6 25.0 Cents per share 36.2 42.5 45.4 22.0 26.0 30.0 FY15 FY16 FY17 FY15 FY16 FY17 • Statutory EPS growth of 6.7% (10.4% constant FX) in H1 FY17 following
Slide 20: Summary and Outlook
For personal use only 5 Summary and Outlook Masterpet warehouse, 20 Wellington, New Zealand
Slide 21: Summary
Summary For personal use only Consistent EPS and dividend Diversified earnings streams growth performance and customer base Investing in infrastructure to Increasing return on allow for sustainable future capital employed growth Underpinned by a strong Underlying market dynamics balance sheet, cash
Slide 22: Outlook
Outlook EBOS Group has recorded a positive start for the first half of the financial year across both its For personal use only • Healthcare and Animal Care divisions. • In October 2016, we provided guidance of underlying, constant currency, net profit after tax growth in FY17 of between 7% to 10% c
Slide 23: Supporting Information
For personal use only Supporting Information EBOS Group locations 23 in Australia and New Zealand
Slide 24: Foreign exchange
Foreign exchange Appreciation of the average NZD:AUD cross-rate by 3.3c to 0.951 negatively impacted EBITDA by $3.7m in H1 FY17 For personal use only Revenue and EBITDA by currency AUD Average AUD NZ Group • 80% of the Group’s earnings (EBITDA) are Operations NZD: AUD Operations Operations Consolida
Slide 25: Reconciliation of statutory and underlying results
Reconciliation of statutory and underlying results H1 FY17 H1 FY16 For personal use only NZ$m EBITDA NPAT EBITDA NPAT Statutory result 119.9 68.8 113.7 64.2 Add back EBOS costs of the TWC/Chemmart merger 1.8 1.2 - - Terry White costs of the TWC/Chemmart merger 0.6 0.2 - - 2.4 1.4 - - 1 Underlying re
Slide 26: 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 27: www.ebosgroup.com
For personal use only www.ebosgroup.com