Ebos Group Limited · NZX:EBO
Ebos — Macquarie Australia Conference 2021
27 slides from Ebos's conference presentation, May 5, 2021
Slide 1: Macquarie Australia Conference Presentation
5 May 2021 NZX/ASX Code: EBO For personal use only Macquarie Australia Conference Presentation Please see attached a copy of a presentation to be delivered at the Macquarie Australia Conference today. For further information please contact: Martin Krauskopf General Manager, Mergers & Acquisitions an
Slide 2: Investor Presentation - Macquarie Australia Conference
For personal use only INVESTOR PRESENTATION MACQUARIE AUSTRALIA CONFERENCE 5 May 2021
Slide 3: Disclaimer
DISCLAIMER For personal use only 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 repres
Slide 4: EBOS Snapshot
EBOS SNAPSHOT EBOS Group is the largest and most diversified Australasian marketer, wholesaler and For personal use only distributor of healthcare, medical and pharmaceutical products. It is also a leading marketer and distributor of recognised consumer products and animal care brands Businesses Sec
Slide 5: Years of Growth and Returns
20 YEARS OF GROWTH AND RETURNS EBOS has a long history of delivering profit, growth and shareholder returns For personal use only 300 35 TSR2 1 year 23% 250 5 years 20% 30 10 years 21% 20 years 19% 25 200 NPAT (A$m)1 Share price (NZ$) 20 150 15 100 10 50 5 - - FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08
Slide 6: What We Do: Healthcare
FY20 Revenue $8.3b WHAT WE DO: HEALTHCARE FY20 EBIT1 $229m H1 FY21 EBIT margin1 2.9% H1 FY21 EBIT growth (vs. pcp)1 11.2% EBOS has leading positions across the ANZ healthcare products supply chain For personal use only Healthcare products supply chain Pharmacy Pharmacies support services Brands and
Slide 7: What We Do: Animal Care
FY20 Revenue $425m WHAT WE DO: ANIMAL CARE FY20 EBIT1 $50m H1 FY21 EBIT margin1 12.6% H1 FY21 EBIT growth (vs. pcp)1 25.6% For personal use only EBOS also has leading and diverse positions within the Animal Care sector Group GOR EBOS Animal Care businesses contribution2 Owner and marketer of leading
Slide 8: Our Trans-Tasman History
OUR TRANS-TASMAN HISTORY EBOS’ history stretches back 100 years in New Zealand and 175 years in Australia For personal use only 1922 1960 2007 2011 Early Brothers Early Bros Dental EBOS acquires EBOS acquires pet Trading Co. is & Surgical Pharmacy brand business, founded Supplies is listed Retailing
Slide 9: Investment Highlights
INVESTMENT HIGHLIGHTS EBOS offers investors a strong track record of growth, yield and shareholder returns For personal use only Defensive growth sectors Scale and leading positions Diversified group Best-in-class healthcare distribution network Proven value creation strategy Supportive growth drive
Slide 10: Defensive Growth Sectors
DEFENSIVE GROWTH SECTORS The healthcare and animal care sectors provide resilient and stable growth through the cycle For personal use only ANZ health expenditure (A$b)1 ANZ pet food and treats expenditure (A$b)2 ~5% CAGR ~12% CAGR 240 2.0 1.5 160 1.0 80 0.5 - - 2015 2016 2017 2018 2019 2017 2018 20
Slide 11: Scale and Leading Positions
SCALE AND LEADING POSITIONS We operate leading businesses and have superior scale and financial capacity For personal use only EBOS segment positions Market capitalisation peer comparison AU NZ A$4.6b Pharmacy wholesale1 #1 #1 Hospital medicine wholesale2 #1 #1 Contract logistics3 #3 #1 Premium dog
Slide 12: Diversified Group
DIVERSIFIED GROUP Our earnings are highly diversified across sectors, geographies, products, customers and suppliers For personal use only Business segment diversity Sector diversity Animal Care Healthcare Animal Care 14% Consumer Products 4% Community Pharmacy Industry size Very large Large Contrac
Slide 13: Best-in-Class Healthcare Distribution Network
BEST-IN-CLASS HEALTCHARE DISTRIBUTION NETWORK We operate the largest and most efficient healthcare distribution network in ANZ with ~$200m For personal use only invested since 2014 to drive superior customer outcomes and productivity Trans-Tasman distribution centre network Major distribution centre
Slide 14: Proven Value Creation Strategy
PROVEN VALUE CREATION STRATEGY Our businesses generate organic growth and significant cash flow, which funds our strategy of For personal use only re-investing for growth, as well as dividends for shareholders SHAREHOLDER VALUE CREATION STRATEGY ORGANIC GROWTH AND DISCIPLINED CASH FLOW INVESTING FOR
Slide 15: Growth Drivers: Healthcare
GROWTH DRIVERS: HEALTHCARE EBOS aims to achieve above industry growth across its Healthcare businesses For personal use only M&A growth Industry growth drivers Business growth drivers opportunities • Major wholesale customers growing above industry Community • TerryWhite Chemmart store rollout Pharm
Slide 16: Growth Drivers: Animal Care & Consumer Brands
GROWTH DRIVERS: ANIMAL CARE & CONSUMER BRANDS Significant organic growth opportunities across our Animal Care segment For personal use only M&A growth Industry growth drivers Business growth drivers opportunities • Brand and marketing investment Pet Brands • New product development • Increasing pet
Slide 17: Investing for Growth
INVESTING FOR GROWTH Investing in our distribution network and value accretive acquisitions are core to our strategy For personal use only ~$690m invested Sydney Contract 2021 since FY15 Logistics DC 2020 Brisbane DC 2019 VET 2018 Keysborough DC Growth capital 2017 expenditure Onelink Australia DC 2
Slide 18: Acquisition Strategy
ACQUISITION STRATEGY Track record of growing inorganically to expand and diversify our earnings For personal use only Select areas of focus for acquisitions Strategic focus • Targets aligned to our strategy within healthcare, animal care or adjacencies • High quality, profitable and growing business
Slide 19: Strong Financial Track Record
STRONG FINANCIAL TRACK RECORD EBOS has delivered consistent financial performance through the cycle For personal use only Underlying EBIT1 Underlying EPS1 DPS (A$m) (A$ cents per share) (NZ$ cents per share) 11.3% CAGR 10.0% CAGR 11.2% CAGR 70% avg. payout 263 218 230 78 204 101 69 72 185 90 94 63 1
Slide 20: Conclusion
CONCLUSION EBOS offers investors a strong track record of growth, yield and shareholder returns For personal use only Defensive growth sectors Scale and leading positions Diversified group Best-in-class healthcare distribution network Proven value creation strategy Supportive growth drivers Strong f
Slide 21: Thank you
For personal use only Thank you
Slide 22: Appendix
For personal use only 21 APPENDIX
Slide 23: H1 FY21 Summary Results
H1 FY21 SUMMARY RESULTS1 For personal use only Revenue Statutory EBITDA Statutory EBIT Statutory NPAT $4.7b up 6.3% $182.2m up 9.0% $145.9m up 11.1% $92.9m up 13.7% Underlying EBITDA2 Underlying EBIT2 Underlying NPAT2 $184.1m up 9.3% $147.8m up 11.5% $94.3m up 14.2% Statutory EPS ROCE3 Net Debt : EB
Slide 24: H1 FY21 Key Highlights
H1 FY21 KEY HIGHLIGHTS EBOS’ strong performance has continued with another record result and double-digit For personal use only earnings growth Healthcare • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and Contract Logist
Slide 25: Group Performance
GROUP PERFORMANCE Commentary: For personal use only $m H1 FY21 H1 FY20 Var Var% Underlying Results 1 • Revenue of $4,653.3m, an increase of $277.2m or 6.3%: Revenue 4,653.3 4,376.1 277.2 6.3% ‒ Healthcare up 5.9%; GOR 488.6 449.4 39.2 8.7% ‒ Animal Care up 15.7%. EBITDA 184.1 168.4 15.7 9.3% Depreci
Slide 26: Business and Segment Performance
BUSINESS AND SEGMENT PERFORMANCE The majority of EBOS’ businesses contributed positively to H1 FY21’s strong GOR and EBIT growth For personal use only GOR bridge ($m) Underlying EBIT1 bridge ($m) H1 FY21 growth 4.7% 15.5% 12.0% (6.0%) 13.8% 8.7% 11.2% 25.6% (52.2%) 11.5% vs. pcp (4.0) +8.2 +6.3 +4.7
Slide 27: EBOS Group Limited
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