Slide 1: EBOS Group Ltd Full Year Results for the Year ended 30 June 2014
For personal use only EBOS Group Ltd Full Year Results for the Year ended 30 June 2014 Investor Presentation Mark Waller Executive Director Patrick Davies Chief Executive Officer John Cullity Chief Financial Officer August 2014 1
Slide 2: Disclaimer
Disclaimer The information in this presentation was prepared by EBOS Group Ltd with due care and attention. However, the information is supplied in summary For personal use only form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliabil
Slide 3: Overview FY14
Overview FY14 For personal use only • Financial results include the performance of Symbion for the full 12 months to 30 June 2014 • Excellent underlying Group financial results and cash flow recorded for the year • Australian Healthcare businesses performed strongly and are well positioned for furth
Slide 4: EBOS Group today
EBOS Group today Trans Tasman Healthcare and Animal care business portfolio Animal Healthcare For personal use only Care Pharmacy Contract Sales & Hospital & Consumer Pharmacy Pet Care & Wholesale Logistics Marketing Homecare Products Retail Vet Where are we today : • EBOS is the largest diversified
Slide 5: Financial Results Summary
Financial Results Summary Major increase in operating earnings and cash flow For personal use only FY 2014 FY 2013 Var % NZ $m Revenue 5,760.1 1,823.2 216% EBITDA 178.2 58.2 206% EBIT 155.7 51.8 200% • FY14 results include Symbion for the full 12 month period Profit before Tax 125.8 42.2 198% • EPS
Slide 6: Geographic information
Geographic information Major shift in earnings to Australia post Symbion acquisition For personal use only Revenues EBITDA (12 months to Jun 2014) (12 months to Jun 2014) New New Zealand Zealand 22% 20% Australia Australia 78% 80% 6
Slide 7: Earnings sensitivity to Currency
Earnings sensitivity to Currency • Appreciation in NZD v AUD over the last 12 months has significantly impacted on NZD translated For personal use only earnings NZD v AUD Exchange rate 1.000 0.950 NZ / AUD Fx rate 0.900 30 June 2012 0.783 30 June 2013 0.847 0.850 30 June 2014 0.933 0.800 Average rat
Slide 8: FY14 Earnings Sensitivity to Currency
FY14 Earnings Sensitivity to Currency For personal use only • 80% of Group earnings (EBITDA) are generated in AUD (A) (B) (A) + (B) NZ Trading Aus Trading Average Aus Trading Operations Operations NZ/AUD Operations Consolidated NZ $m NZ$ m AUD m rate ¹ NZ$ m NZ$ m Revenue 1,280.0 4,054.4 0.905 4,480
Slide 9: Segment earnings overview
Segment earnings overview EBITDA NZ$ million For personal use only Animal care 153.1 16% FY14 mix ¹ Healthcare 49.1 84% 29.4 18.7 (4.2) (9.5) Animal care Healthcare Animal care Corporate ² 28% FY14 FY13 FY13 mix ¹ Healthcare • Earnings mix of the business has further concentrated on Healthcare 72% p
Slide 10: Segment & Divisional Overview
Segment & Divisional Overview FY14 Gross Operating Revenue ¹ contribution For personal use only Healthcare 85% Hospitals 12% Healthcare Logistics 9% • Within both Operating Sales & Segments, there is a Mktg 10% diversified mix of Pharmacy business units all 45% Consumer contributing to the & Retail
Slide 11: Healthcare Segment Financial Results
Healthcare Segment Financial Results For personal use only HEALTHCARE GEOGRAPHIC SPLIT - FY14 New Zealand, FY 2014 FY 2013 Var % 23% NZ $m Revenue Revenue 5,418.4 1,652.5 228% EBITDA 153.1 49.1 212% Australia, 77% EBIT 134.0 44.1 204% EBITDA / Revenue % 2.8% 3.0% (0.1%) New Zealand, 20% EBITDA Austr
Slide 12: Healthcare Segment Additional segment analysis – Australia & NZ
Healthcare Segment Additional segment analysis – Australia & NZ For personal use only Healthcare Revenue mix Healthcare GOR ¹ mix Consumer & Retail Pharmacy Pharmacy 1% 61% 53% Sales & Consumer & Marketing Retail 4% Hospitals 10% 15% Hospitals Healthcare Healthcare 28% Logistics Logistics Sales & 6%
Slide 13: Healthcare Segment Summary of Performance
Healthcare Segment Summary of Performance • Australian pharmacy business FY14 sales revenue (AUD) was flat when compared to the prior For personal use only corresponding period (pcp). This is a positive outcome given the Australian Government’s PBS Price reforms. Excluding this impact, adjusted AUD
Slide 14: Healthcare Segment Summary of Performance
Healthcare Segment Summary of Performance For personal use only • New Melbourne Distribution centre (pictured) built and ready to go-live in September 2014 • Onelink signed contract with HBL to run the New Zealand national hospital supply chain 14
Slide 15: Animal Care Segment Financial Results
Animal Care Segment Financial Results ANIMAL CARE GEOGRAPHIC SPLIT - FY14 For personal use only New Zealand, 17% FY 2014 FY 2013 Var % Revenue NZ $m Revenue 338.9 169.5 100% Australia, 83% EBITDA 29.4 18.7 58% EBIT 25.9 17.2 51% EBITDA / Revenue % 8.7% 11.0% (2.3%) New Zealand, 38% EBITDA Australia,
Slide 16: Animal care Segment Summary of Performance
Animal care Segment Summary of Performance For personal use only • Animal care business delivered a solid result in FY14 • EBOS’ JV share of Animates net profit increased ~$1.0m on LY, reflecting a stronger trading position and store growth • Symbion’s Lyppard vet business grew in line with the mark
Slide 17: Operating cash flow
Operating cash flow Strong operating cash flow achieved in FY14 For personal use only FY 2014 FY 2013 Var $ Var % NZ $m EBITDA 178.2 58.2 120.0 206% Interest paid (29.9) (9.6) (20.3) 211% Tax paid (29.6) (13.5) (16.2) 120% Net working capital and Other movements (4.5) (8.7) 4.2 48% Cash from Operati
Slide 18: Capital Management
Capital Management • Strong working capital management disciplines are FY 2014 For personal use only a key focus of the group Working Debtor Days 45 • Trading terms of customers will continue to be Inventory Days 35 capital managed, as will inventory levels Creditor Days (55) • Industry leading cash
Slide 19: Debt Facility Limits Maturity Profile
Debt Facility Limits Maturity Profile Negotiated August 2014 For personal use only 450 400 • NZD 413m (AUD$385m) Securitisation 350 facility renegotiated post balance date to a 300 new 3 year term expiring FY18 on improved 250 NZ$ m margins 200 413 150 • Term debt of NZD$270m extended post 100 balan
Slide 20: Corporate Governance and Leadership changes
Corporate Governance and Leadership changes Transition plans complete For personal use only • Management transition plan announced in February 2014 now in place • Mr Rick Christie – Chairman EBOS, will retire at the AGM in October 2015 • Mark Waller - Executive Director with primary focus on M&A for
Slide 21: Shareholder value creation
Shareholder value creation EBOS’ continued focus For personal use only Well-positioned businesses • Diversified earnings across multiple segments • Market leading positions and scale • Operational excellence Strong operating profits and a portfolio of strong cash generating businesses • EBOS has the