Ebos Group Limited · NZX:EBO
Ebos — Shareholder Meeting (October 2020)
45 slides from Ebos's shareholder meeting presentation, Oct 13, 2020
Slide 1: EBOS Annual Meeting 2020
For personal use only 13 October 2020 NZX/ASX Code: EBO EBOS ANNUAL MEETING 2020 Please see attached the Chair's speech, CEO's speech and presentation materials for the Annual Meeting of shareholders to be held today. Authorised for lodgement with NZX and ASX by the Board For further information, pl
Slide 2: Chair's Address to the Annual Meeting
EBOS Group Limited Chair’s Address to the Annual Meeting 13th October 2020 I have pleasure in reporting on the 2020 financial year at this the 98 th Annual Meeting of For personal use only EBOS Group Limited and providing an update on the latest developments occurring within EBOS. The past nine mont
Slide 3: Chair's Address (continued)
them on developments, issuing personal safety and protection messages and providing advice around mental health and wellbeing for both employees and their families were also implemented. With the introduction of working from home, EBOS ensured all those impacted had the resources and equipment requi
Slide 4: Chair's Address (continued)
the invitation to become EBOS shareholders and benefit from the success of our company. We will continue to offer this initiative to all existing and future employees. The challenges of 2020 have brought out the very best in our employees and the Board could not be prouder of the unwavering commitme
Slide 5: CEO's Address to the Annual Meeting
EBOS Group Limited CEO’s Address to the Annual Meeting 13th October 2020 For personal use only Thank you Chair and good afternoon ladies and gentleman. Whilst it is disappointing that I cannot be with you in Christchurch its very pleasing to be able to report to you on the performance of our company
Slide 6: CEO's Address (continued)
EBOS’ Healthcare business experienced unprecedented demand during March 2020, in response to COVID-19 developments. To put this in some context, during this time, our Australian wholesaling business Symbion, along with the other members of the National Pharmaceutical Services Association (NPSA), dis
Slide 7: CEO's Address (continued)
The benefits of our capital expenditure initiatives were also reinforced with our Contract Logistics business continuing to grow and attract new customers thanks to recently opened facilities in both Sydney and Auckland. In 2020, we continued with our acquisition strategy and in October 2019, we anno
Slide 8: CEO's Address (continued)
As a key partner in the New Zealand healthcare supply chain, EBOS’ hospital distribution business Onelink, had a critical role to play in responding to this disaster. Onelink worked in conjunction with local health authorities to provide emergency specialised burns dressings and theatre supplies req
Slide 9: CEO's Address (continued)
mental health and well-being, physical exercise and delivery of ‘wellness packages’ to employees in prolonged lockdown. Our match funding programme also continued throughout the year with EBOS matching the donations and funds raised by employees for many charity based events and activities. As also
Slide 10: 98th Annual Meeting
For personal use only 98TH ANNUAL MEETING 13 October 2020
Slide 11: Disclaimer
DISCLAIMER For personal use only The information in this presentation was prepared by EBOS Group Limited (EBOS) 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 representation is made
Slide 12: Welcome
For personal use only WELCOME 2020 Annual Meeting 3
Slide 13: Introducing Our Board
For personal use only INTRODUCING OUR BOARD 2020 Annual Meeting 4
Slide 14: Board of Directors
BOARD OF DIRECTORS For personal use only Elizabeth Coutts Independent Chair of the Board Joined 2003 Appointed Chair 2019 Stuart McGregor Sarah Ottrey Peter Williams Stuart McLauchlan Nick Dowling Non-executive Director Independent Director Non-executive Director Independent Director Independent Dir
Slide 15: Agenda
AGENDA For personal use only 01 Welcome 05 Business of Meeting 02 Introducing our Board 06 Conclusion 03 Presentation: Elizabeth Coutts, Chair 04 Presentation: John Cullity, CEO
Slide 16: Presentation: Elizabeth Coutts, Chair
For personal use only PRESENTATION ELIZABETH COUTTS CHAIR 2020 Annual Meeting 7
Slide 17: Our Strategy
OUR STRATEGY For personal use only We continue to deliver for our customers and serve the communities where we operate, while also generating strong growth and shareholder returns. We remain focussed on our strategy of: • Investing for growth – both organic and acquisitions through disciplined inves
Slide 18: COVID-19 Health and Safety
COVID-19 HEALTH AND SAFETY For personal use only General Critical sites and distribution centres • immediate introduction of strict travel restrictions for all employees; • locking down all critical warehouse sites with only employees and essential contractors allowed on site; • banning external vis
Slide 19: Environment, Social, Governance (ESG)
ENVIRONMENT, SOCIAL, GOVERNANCE (ESG) For personal use only As the largest healthcare and animal care company in New Zealand and Australia, EBOS acknowledges that we have significant responsibilities as a leading corporate citizen to manage our business in a manner that reflects the expectations of
Slide 20: Employee Survey
EMPLOYEE SURVEY For personal use only Highlights 78% (which is 17% above benchmark*) of our employees having a high degree of confidence in the leadership and direction of EBOS. * Australian industry employee survey data. Source: Qualtrics 11
Slide 21: Diversity
DIVERSITY For personal use only Board The EBOS Board consists of 33.3% female representation including the Chair. Executive Leadership Team The EBOS ELT also has a 33.3% female representation whilst across the wider organisation females make up 58% of total employees. 12
Slide 22: Dividend
DIVIDEND For personal use only Final Dividend EBOS’ Director’s announced a final dividend of NZ 40.0 cents per share. Full Year Taking the full-year dividend to NZ 77.5 cents per share, an increase of 8.4% on the prior year. 13
Slide 23: Presentation: John Cullity, CEO
For personal use only PRESENTATION JOHN CULLITY CEO 2020 Annual Meeting 14
Slide 24: FY20 Summary Results
FY20 SUMMARY RESULTS For personal use only Underlying 1 Statutory A$m FY20 FY19 Var$ Var% FY20 FY19 Var$ Var% Revenue 8,765.5 6,930.4 1,835.2 26.5% 8,765.5 6,930.4 1,835.2 26.5% EBITDA 296.6 261.6 34.9 13.4% 333.6 250.4 83.2 33.2% Net Profit After Tax 168.3 144.4 23.9 16.5% 162.5 137.7 24.8 18.0% Ea
Slide 25: Key Highlights
KEY HIGHLIGHTS For personal use only FY20 was a record year for EBOS with all businesses contributing to significant revenue growth of $1.8b or 26.5% • Revenue exceeded $8b for the first time. 5 year Earnings Per Share (EPS) • Continued commitment to working capital management produced an excellent
Slide 26: TerryWhite Chemmart
TERRYWHITE CHEMMART For personal use only Continued growth in one of Australia’s leading community pharmacy networks Continued network growth 4.1% network sales growth In the last 12 months, our national With prescription sales growth of 6.0% network increased by 26 pharmacies. on a like-for-like ba
Slide 27: COVID-19 Financial Impacts
COVID-19 FINANCIAL IMPACTS For personal use only Government measures implemented in response to COVID-19 had various financial impacts on EBOS’ businesses in FY20. The net overall financial impact was broadly neutral and trading conditions improved towards the end of the financial year. Positive imp
Slide 28: FY20 Segment Performance: Healthcare
FY20 SEGMENT PERFORMANCE Healthcare For personal use only A$m FY20 FY19 Var$ Var% • Healthcare’s growth in Revenue of 27.4% and Underlying EBITDA of 14.8% was driven by the Revenue 8,340.4 6,548.3 1,792.1 27.4% performances of our Community Pharmacy, TWC, Institutional Healthcare and Contract Logist
Slide 29: FY20 Segment Performance: Animal Care
FY20 SEGMENT PERFORMANCE Animal Care For personal use only A$m FY20 FY19 Var$ Var% • Revenue growth of $43.1m, or 11.3%, due to the continued excellent performance of our branded Revenue 425.1 382.0 43.1 11.3% products portfolio and higher vet wholesale volumes. Underlying EBITDA1 52.3 48.3 4.0 8.3%
Slide 30: Strategic Investments Are Driving Shareholder Returns
STRATEGIC INVESTMENTS ARE DRIVING SHAREHOLDER RETURNS $600m invested over the last five years For personal use only 21
Slide 31: Further Acquisition in the Medical Devices Market in FY21
For personal use only FURTHER ACQUISITION IN THE MEDICAL DEVICES MARKET IN FY21 • We are pleased to announce EBOS’ continuing investment in the medical device sector, with the strategic acquisition of Cryomed Australia (“Cryomed”) for a purchase price of $14.1 million. The acquisition is expected to
Slide 32: 7th Community Pharmacy Agreement
7TH COMMUNITY PHARMACY AGREEMENT For personal use only June 2020 also marked a significant milestone for EBOS’ Australian wholesale distribution business, Symbion, with the finalisation of the 7th Community Pharmacy Agreement (CPA). • Symbion, together with members of the National Pharmaceutical Serv
Slide 33: Disaster Relief
DISASTER RELIEF For personal use only EBOS’ businesses and employees have contributed to community disaster relief efforts in FY20 through our integral role in the region’s medical supply chain COVID-19 • EBOS’ wholesale, distribution and retail healthcare businesses are essential services and play
Slide 34: 'ECHO' Program
‘ECHO’ PROGRAM (ENVIRONMENT, COMMUNITY, HELPING OTHERS) EBOS is committed to employee and social responsibility across New Zealand and Australia For personal use only EMPLOYEES Employee Health, Employee ECHO Program. engagement safety and Assistance survey. wellbeing. Program (EAP). ENVIRONM
Slide 35: Reconciliation Action Plan
RECONCILIATION ACTION PLAN For personal use only Our RAP • In 2020, EBOS was pleased to launch its first RAP as part of our commitment to reconciliation between Aboriginal and Torres Strait Islander peoples and the broader Australian population. • For EBOS, reconciliation is a journey – one of under
Slide 36: FY21 Trading Update
FY21 TRADING UPDATE For personal use only • Growth in EBOS’ revenue, EBITDA and NPAT for the first quarter of FY21 on the prior corresponding period was as follows: Q1 FY21 vs. Q1 FY201 Healthcare Animal Care Group Revenue growth +6.1% +14.1% +6.5% EBITDA growth2 +9.2% +18.7% +9.0% NPAT growth2 +15.
Slide 37: Business of Meeting
For personal use only BUSINESS OF MEETING 2020 Annual Meeting 28
Slide 38: Annual Report and Financial Statements
For personal use only ITEM 1 Annual Report and Financial Statements To consider and receive the annual report and the financial statements for the year ended 30 June 2020 and the audit report thereon. 29
Slide 39: Resolution 1: Re-election of Director – Nicholas Dowling
ITEM 2 For personal use only Resolution 1: Re-election of Director – Nicholas Dowling It is hereby resolved that Nicholas Dowling be re-elected as a director of the Company INDEPENDENT DIRECTOR BCA (Hons); BA Nick was appointed to the EBOS Group Limited Board in February 2020. Nick is currently the
Slide 40: Resolution 2: Re-election of Director – Sarah Ottrey
ITEM 3 For personal use only Resolution 2: Re-election of Director – Sarah Ottrey It is hereby resolved that Sarah Ottrey be re-elected as a director of the Company INDEPENDENT DIRECTOR BCOM Sarah was appointed to the EBOS Group Limited Board in September 2006. She is a member of the Remuneration Co
Slide 41: Resolution 3: Re-election of Director – Stuart McGregor
ITEM 4 Resolution 3: Re-election of Director – Stuart McGregor For personal use only Resolution 3: Re-election of Director – Stuart McGregor STUART MCGREGOR BCOM, LLB, MBA Stuart was appointed to the EBOS Group Limited Board in July 2013. He is a member of the Audit and Risk Committee. Stuart was ed
Slide 42: Resolution 4: Auditor's remuneration
For personal use only ITEM 5 Resolution 4: Auditor’s remuneration It is hereby resolved that the directors of the Company be authorised to fix the fees and expenses of Deloitte as auditor of the Company Deloitte is automatically reappointed as the auditor of the Company under section 207T of the Com
Slide 43: Any Other Business
ITEM 6 For personal use only To consider any other business that can be properly brought before the meeting. 34
Slide 44: Conclusion
For personal use only CONCLUSION 2020 Annual Meeting 35
Slide 45: Thank you for joining us
For personal use only Thank you for joining us. www.ebosgroup.com