Slide 1: Results presentation for the Half Year ended 31 December 2015
EBOS Group Ltd For personal use only Results presentation for the Half Year ended 31 December 2015 Patrick Davies Chief Executive Officer John Cullity Chief Financial Officer 24 February 2016
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 EBOS Healthcare warehouse 3 (Auckland, New Zealand)
Slide 4: H1 FY16 Summary Results
H1 FY16 Summary Results For personal use only Total Revenue Operating Cash Flow Up 8.3% (+9.0% Constant FX) $ 3.4b Up 52.6% $ 46.6m Total EBITDA Earnings per share $ 113.7m Up 13.3% (+13.9% Constant FX) 42.5c Up 17.5% (+18.1% Constant FX) Total NPAT Interim Dividend per share $ 64.2m Up 18
Slide 5: Key First Half Highlights
Key First Half Highlights For personal use only Continued Strategic Investment across the Group of $97.4 million in the first half • Acquisition of Red Seal, a natural health products business. • Acquisition of Zest, a healthcare strategies and communications business. • Commencement of operations u
Slide 6: Strong First Half financial performance
Strong First Half financial performance For personal use only H1 H1 Constant FX • First Half Group Revenue increase of $259.9m or NZ$m FY16 FY15 Var Var 9.0% (constant FX): Revenue 3,379.7 3,119.9 8.3% 9.0% – Healthcare up 8.9%. Gross Operating Revenue 333.7 305.4 9.3% 9.9% – Animal Care up 10.8%. E
Slide 7: EBOS Group Business Overview
EBOS Group Business Overview Our Trans Tasman market channels continue to deliver strong growth For personal use only HEALTHCARE ANIMAL CARE EBOS GROUP Community Pharmacy Institutional Contract Pet Care and Healthcare Logistics Veterinary Pharmacy Pharmacy Consumer Wholesale Retail Products Pharmacy
Slide 8: Segment earnings and GOR mix
Segment earnings and GOR mix For personal use only EBITDA by segment Gross Operating Revenue (GOR) H1 FY16 H1 H1 Constant FX NZ$m FY16 FY15 Var Var Healthcare 99.8 88.5 12.7% 13.3% Animal Care 19.6 16.8 16.3% 16.5% Corporate (5.6) (5.0) (11.5%) (11.8%) Group 113.7 100.3 13.3% 13.9% FY16 GOR mix Grou
Slide 9: Healthcare Results
For personal use only 2 Healthcare Results Chemmart Pharmacy 9 (South Australia, Australia)
Slide 10: Healthcare segment
Healthcare segment Significant increases in Revenue, EBITDA and margins For personal use only H1 H1 Constant FX • Revenue increase of $240.5m or 8.9% (constant FX): NZ$m FY16 FY15 Var Var – Australia up 8.7%. Healthcare segment – New Zealand up 9.7%. Revenue 3,169.3 2,928.7 8.2% 8.9% • EBITDA increa
Slide 11: Healthcare segment: Half Year Performance Overview
Healthcare segment Half Year Performance Overview For personal use only Community Pharmacy – Pharmacy Wholesale • First half Pharmacy sales in Australia grew 9.1% to last year (constant FX), attributable to new Pharmacy Services wholesale business including GPPW and customer growth particularly in O
Slide 12: Community Pharmacy – Consumer Products – Red Seal
Healthcare segment Half Year Performance Overview (continued) For personal use only Community Pharmacy – Consumer Products – Red Seal • Acquisition of Red Seal for $80 million on 30 November 2015. Funded from the Group’s existing debt facilities and is earnings per share (EPS) accretive in Year 1. •
Slide 13: Community Pharmacy – Consumer Products – Endeavour
Healthcare segment Half Year Performance Overview (continued) For personal use only Community Pharmacy – Consumer Products – Endeavour • From the existing Endeavour Consumer Health business, strong sales growth to last year was achieved across our brands including Faulding, Pharmacy Choice and Chemm
Slide 14: Institutional Healthcare
Healthcare segment Half Year Performance Overview (continued) For personal use only Institutional Healthcare • EBOS continues to expand its position as a specialised, unique and essential partner across a number of areas of Institutional Healthcare in Australia and New Zealand, primarily in hospital
Slide 15: Healthcare Contract Logistics
Healthcare segment Half Year Performance Overview (continued) For personal use only Healthcare Contract Logistics • Strong performance across both New Zealand and Australia, with GOR increasing 11.2% from increased activity with pharmaceutical manufacturers. • Healthcare Logistics (NZ) maintained it
Slide 16: Animal Care Results
For personal use only 3 Animal Care Results Left: Lyppard sales representative at Monash Veterinary Clinic, a customer of Lyppard (Victoria, Australia) 16 Right: Selection of Animal Care products and an Animates store.
Slide 17: Animal Care segment
Animal Care segment BlackHawk drives the significant increase in Revenue and earnings For personal use only H1 H1 Constant FX NZ$m FY16 FY15 Var Var • Revenue increase of $19.3m or 10.8% (constant FX) Animal Care segment primarily from growth of branded products (including Revenue 210.5 191.1 10.1%
Slide 18: Animal Care segment: Half Year Performance Overview
Animal Care segment Half Year Performance Overview For personal use only • The acquisition of BlackHawk has been a successful entry into the premium food market in Australia and complements our strategy of developing and growing our own brands. There continues to be very strong support for the brand
Slide 19: Group Financial Information
For personal use only 4 Group Financial Information A-Frame automatic picking system, Symbion Keysborough facility 19 (Melbourne, Australia)
Slide 20: Cash Flow
Cash Flow EBOS has an excellent portfolio of strong cash generating businesses For personal use only H1 H1 • Continued focus on working capital NZ$m FY16 FY15 Var$ Var% management led to Operating cash flow of EBITDA 113.7 100.3 13.4 13.3% $46.6m being generated in the first half. Net interest paid
Slide 21: Working Capital and Cash Conversion
Working Capital and Cash Conversion Industry leading cash conversion cycle of 23 days For personal use only • Strong working capital management NZ$m Dec-15 Jun-15 Dec-14 disciplines are a key focus of the Group. Net Working Capital Trade receivables 853.9 787.9 773.4 • Cash conversion cycle improved
Slide 22: Net Debt, Gearing and Debt Maturity
Net Debt, Gearing and Debt Maturity For personal use only Net Debt and Gearing Debt Maturity Profile – current facility limits 400 40% 600 350 368 379 35% 500 300 317 30% 316 Net debt (NZ$m) 400 Gearing ratio 250 25% 26.9% 26.2% NZ$m 200 24.4% 23.2% 20% 453 300 150 15% 200 100 10% 78 100 50 5% - 90
Slide 23: Earnings and Dividends per Share, ROCE
Earnings and Dividends per Share, ROCE For personal use only Earnings and Dividends per share Return on Capital Employed 70.8 DPS EPS 62.8 NZ$ cents per share 14.3% ROCE % 36.2 42.5 13.7% 41.0 47.0 12.8% 12.9% 26.0 22.0 FY14 FY15 H1 FY15 H1 FY16 FY14 FY15 H1 FY15 H1 FY16 • EPS growth of 17.5% (18.1%
Slide 24: Summary and Outlook
For personal use only 5 Summary and Outlook Left: Masterpet New Zealand warehouse, Wellington Right: Rhonda Colley at Symbion, Keysborough, Victoria. 24 In 2015, Rhonda celebrated 30 years services with Symbion
Slide 25: Summary & Outlook
Summary & Outlook For personal use only • In the first half of FY16, EBOS has further strengthened its position as the largest diversified Australasian marketer, wholesaler and distributor of healthcare, medical, pharmaceutical and animal care products. • EBOS continues to derive the benefits from i
Slide 26: Supporting Information
For personal use only Supporting Information EBOS Group locations in Australia and New Zealand 26
Slide 27: Foreign exchange
Foreign exchange Appreciation of the NZD negatively impacted NZD EBITDA by $0.6m in the first half For personal use only Revenue and EBITDA by currency • 80% of the Group’s earnings (EBITDA) are AUD Average AUD NZ Group generated in AUD. Operations NZD: AUD Operations Operations Consolidated $m AUD
Slide 28: Glossary of terms and measures
Glossary of terms and measures For personal use only Except where noted, common terms and measures used in this document are based upon the following definitions: Term Definition Actual results Results translated into NZ dollars at the applicable actual monthly exchange rates ruling in each period.
Slide 29: www.ebosgroup.com
For personal use only www.ebosgroup.com