Ebos Group Limited · NZX:EBO
Ebos — H1 FY21 Earnings Presentation
33 slides from Ebos's earnings presentation, Feb 17, 2021
Slide 1: Investor Presentation: Interim Financial Results
For personal use only INVESTOR PRESENTATION Interim Financial Results Half year ended 31 December 2020 17 February 2020
Slide 2: 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 3: Group Financial Results
For personal use only GROUP FINANCIAL RESULTS 3
Slide 4: H1 FY21 Summary Results
H1 FY21 SUMMARY RESULTS 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 EBITDA1 Underlying EBIT1 Underlying NPAT1 $184.1m up 9.3% $147.8m up 11.5% $94.3m up 14.2% Statutory EPS ROCE Net Debt : EBIT
Slide 5: Key Highlights
KEY HIGHLIGHTS For personal use only EBOS’ strong performance has continued with another record result and double-digit earnings growth Healthcare • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and Contract Logistics busi
Slide 6: Strategic Acquisitions
STRATEGIC ACQUISITIONS For personal use only Acquisitions within the Medical Devices and Animal Care sectors, with approximately $23m investment in H1 FY21 • In November 2020, EBOS acquired CH2’s vet distribution business for approximately $9m. CH2’s • The business is a distributor of pet medicines
Slide 7: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE For personal use only EBOS has commenced a formal ESG Program Overview Issues identified as important to EBOS and its stakeholders • EBOS acknowledges it has a responsibility to our stakeholders and the wider community to conduct Environment • Greenhouse gas emis
Slide 8: Group Performance
GROUP PERFORMANCE • Revenue of $4,653.3m, an increase of $277.2m For personal use only H1 FY21 H1 FY20 Var Var% $m or 6.3%: 1 Underlying Results Revenue 4,653.3 4,376.1 277.2 6.3% o Healthcare up 5.9%; GOR 488.6 449.4 39.2 8.7% o Animal Care up 15.7%. EBITDA 184.1 168.4 15.7 9.3% • Underlying EBIT o
Slide 9: Business and Segment Performance
BUSINESS AND SEGMENT PERFORMANCE For personal use only The majority of EBOS’ businesses contributed positively to H1 FY21’s strong GOR and EBIT growth GOR bridge ($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 10: Strong Growth Compared to Historical Levels
STRONG GROWTH COMPARED TO HISTORICAL LEVELS For personal use only Growth for the H1 FY21 period builds upon our previous record FY20 result H1 growth rate1 Maintained strong Healthcare growth, cycling our record Excellent growth from structural result in FY20, which was driven by increased Community
Slide 11: Results: Healthcare
11 For personal use only RESULTS HEALTHCARE
Slide 12: Healthcare Segment
HEALTHCARE SEGMENT Healthcare segment Underlying EBIT growth of 11.2%, with strong performances in both For personal use only Australia and New Zealand • Revenue growth of 5.9% was driven by the $m H1 FY21 H1 FY20 Var$ Var% performances of our Community Pharmacy, TWC, Institutional Healthcare and Co
Slide 13: Community Pharmacy
COMMUNITY PHARMACY For personal use only • Community Pharmacy revenue increased by $121.9m (4.8%) and GOR by $10.5m (4.7%), $m H1 FY21 H1 FY20 Var$ Var% benefitting from: Revenue 2,683.8 2,561.9 121.9 4.8% o Increased wholesale revenue in both GOR 231.8 221.4 10.5 4.7% Australia and New Zealand; GOR
Slide 14: TerryWhite Chemmart
TERRYWHITE CHEMMART that’s real chemistry Continued growth in one of Australia’s leading community pharmacy networks For personal use only • The TWC national store network increased by 22 since June 2020, Network sales growth in H1 FY21 the largest 6 month increase on record. Total sales up 5.8% • N
Slide 15: Institutional Healthcare
INSTITUTIONAL HEALTHCARE For personal use only • Institutional Healthcare revenue increased by $108.4m (8.7%) and GOR increased by $16.9m $m H1 FY21 H1 FY20 Var$ Var% (15.5%), largely from increases in new specialty medicines, combined with strong Revenue 1,360.6 1,252.3 108.4 8.7% growth in the med
Slide 16: Contract Logistics
CONTRACT LOGISTICS For personal use only • Contract Logistics revenue increased by $50.9m (14.7%) and GOR by $4.7m (12.0%), $m H1 FY21 H1 FY20 Var$ Var% attributable to existing customer growth and Revenue 397.3 346.4 50.9 14.7% increased volumes in New Zealand to service customer requirements mainl
Slide 17: Consumer Products
CONSUMER PRODUCTS For personal use only • Consumer Products revenue decreased by $5.8m (10.1%) and GOR decreased by $1.2m $m H1 FY21 H1 FY20 Var$ Var% (6.0%). Revenue 52.1 57.9 (5.8) (10.1%) • Performance was impacted by COVID-19 with GOR 18.5 19.7 (1.2) (6.0%) lower retail and daigou sales and cate
Slide 18: Animal Care Results
18 For personal use only CARE ANIMAL RESULTS
Slide 19: Animal Care Segment
ANIMAL CARE SEGMENT For personal use only Pet market tailwinds have driven a step change in earnings for the Animal Care segment • Animal Care revenue increased by $33.2m $m H1 FY21 H1 FY20 Var$ Var% (15.7%) and EBIT increased by $6.3m (25.6%) due to the performance of our branded product Revenue 24
Slide 20: Strong Global Pet Market Growth
STRONG GLOBAL PET MARKET GROWTH For personal use only Animal Care benefited from well established market trends, further accelerated by COVID-19 Demographic factors Pet market tailwinds COVID-19 tailwinds • Ageing population • Increasing pet • COVID-19 restrictions leading to a higher ownership with
Slide 21: Continued Product and Brand Growth
CONTINUED PRODUCT AND BRAND GROWTH For personal use only Our key categories and Lyppard business demonstrated double-digit sales growth H1 FY21 Categories Sales growth drivers sales growth • Strong consumer support for our products. • Continued investment in marketing to drive increased brand Black
Slide 22: Financial Information and Current Trading
For personal use only FINANCIAL INFORMATION AND CURRENT TRADING 22
Slide 23: Cash Flow
CASH FLOW For personal use only Cash from Operating activities ($m) $m H1 FY21 H1 FY20 Var$ Var% Statutory EBITDA 182.2 167.2 15.0 9.0% Net interest paid (14.1) (15.4) 1.4 Tax paid (41.2) (32.6) (8.6) Net working capital and other movements (28.2) (45.0) 16.8 Cash from Operating activities 98.7 74.2
Slide 24: Working Capital and ROCE
WORKING CAPITAL AND ROCE For personal use only Working Capital Return on Capital Employed (ROCE)1 $m H1 FY21 FY20 H1 FY20 Net Working Capital Trade receivables 1,049.7 984.6 1,069.6 Inventory 759.4 737.7 728.7 Trade payables/other (1,469.8) (1,417.2) (1,452.6) 17.1% 17.5% Total 339.2 305.1 345.7 15.
Slide 25: Net Debt and Maturity Profile
NET DEBT AND MATURITY PROFILE For personal use only Net Debt and Net Debt : EBITDA ratio1 2.5 Cash and Debt Maturity Profile2 800 2.16x 700 2 Net Debt : EBITDA Ratio 600 1.41x Net debt (A$m) 1.41x 1.5 500 1.11x 1.00x 400 1 300 552 200 392 366 327 0.5 309 100 0 0 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Ne
Slide 26: Earnings and Dividends per Share
EARNINGS AND DIVIDENDS PER SHARE For personal use only Underlying Earnings per Share (A$ cents) Dividends per Share (NZ$ cents) 77.5 H1 H2 H1 H2 100.8 71.5 68.5 94.2 90.4 63.0 86.3 Cents per share ($A) NZ$ cents per share 40.0 49.5 37.0 46.4 35.5 44.4 33.0 41.6 57.8 42.5 51.3 34.5 37.5 44.7 46.0 47.
Slide 27: FY21 Trading Update
FY21 TRADING UPDATE For personal use only • EBOS is pleased with the strong, double-digit earnings growth achieved during the first half of FY21. • The robust trading conditions that drove our first half FY21 performance remain in place. In January 2021 we recorded Group earnings growth at levels co
Slide 28: Supporting Information
For personal use only SUPPORTING INFORMATION 28
Slide 29: Reconciliation of Statutory to Underlying Results
RECONCILIATION OF STATUTORY TO UNDERLYING RESULTS For personal use only H1 FY21 H1 FY20 $m EBITDA EBIT PBT NPAT EBITDA EBIT PBT NPAT Statutory result 182.2 145.9 131.9 92.9 167.2 131.4 115.9 81.7 Transaction costs incurred on M&A 1.9 1.9 1.9 1.5 1.2 1.2 1.2 1.0 Underlying result1 184.1 147.8 133.8 9
Slide 30: Segment EBITDA and EBIT Reconciliation
SEGMENT EBITDA AND EBIT RECONCILIATION EBITDA EBIT For personal use only $m H1 FY21 H1 FY20 Var$ Var% H1 FY21 H1 FY20 Var$ Var% Healthcare Pre IFRS16 141.4 129.8 11.5 8.9% 125.4 113.5 11.9 10.5% add IFRS16 impact 18.1 16.0 2.1 1.4 1.1 0.4 Statutory 159.4 145.8 13.6 9.3% 126.9 114.6 12.3 10.7% add On
Slide 31: Reconciliation of Changes to IFRS16 Lease Accounting: Income Statement
RECONCILIATION OF CHANGES TO IFRS16 LEASE ACCOUNTING: INCOME STATEMENT For personal use only IFRS16 Impact Statutory pre IFRS16 Statutory $m H1 FY21 H1 FY20 Var$ Var% H1 FY21 H1 FY20 H1 FY21 H1 FY20 Var$ Var% Group Income Statement Revenue 4,653.3 4,376.1 277.2 6.3% - - 4,653.3 4,376.1 277.2 6.3% Gr
Slide 32: 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: For personal use only Term Definition Debtor days Trade debtors at the end of period divided by Revenue for the period, multiplied by number of days in the per
Slide 33: www.ebosgroup.com
For personal use only www.ebosgroup.com