Slide 1: Investor Presentation: Annual Financial Results
INVESTOR PRESENTATION Annual Financial Results Full year ended 30 June 2024 21 August 2024
Slide 2: Disclaimer
DISCLAIMER 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 representation is made as to
Slide 3: Group Financial Results
GROUP FINANCIAL RESULTS 3
Slide 4: FY24 Summary Results
FY24 SUMMARY RESULTS EBOS records another year of strong growth and provides positive guidance for FY25 $m Underlying1 Var Statutory Var Revenue 13,189.1 7.8% 13,189.1 7.8% EBITDA 624.3 7.3% 605.6 6.5% EBIT 521.7 7.7% 476.7 7.4% Net Profit After Tax 303.4 7.7% 271.5 7.2% EPS (cents)
Slide 5: Key Highlights
KEY HIGHLIGHTS Continued strong earnings growth in Healthcare and Animal Care and investing for future growth Healthcare • EBOS’ Healthcare segment benefitted from its strong market positions and solid contributions from each of the Community Pharmacy, TerryWhite Chemmart (TWC) and Institutional Hea
Slide 6: Division and Segment Performance
DIVISION AND SEGMENT PERFORMANCE Both the Healthcare and Animal Care segments recorded strong GOR and EBITDA growth GOR1 bridge ($m) Underlying EBITDA bridge ($m) FY24 FY24 growth 4.9% 7.2% -2.9% 9.8% 5.5% growth 6.0% 13.2% -5.1% 7.3% vs. pcp vs. pcp 17.4 (4.5) (1.7) 40.8 13.0 31.8 31.0 1,632.9 624.
Slide 7: Group Performance
GROUP PERFORMANCE $m FY24 FY23 Var Var% • Revenue of $13,189.1m, an increase of $951.7m or 7.8%: Underlying Results1 o Healthcare up 8.0%; Revenue 13,189.1 12,237.4 951.7 7.8% o Animal Care up 3.2%. GOR 1,632.9 1,547.5 85.4 5.5% EBITDA 624.3 582.0 42.3 7.3% • Underlying EBITDA of $624.3m, an increas
Slide 8: Group Performance (cont.)
GROUP PERFORMANCE (CONT.) The Group generated higher Underlying EBITDA growth of approximately 8% when normalised to exclude the CWA contract or wholesale sales of COVID-19 anti-viral medicines • FY24 growth compared to the prior corresponding period was as follows: Normalised FY24 growth vs. pcp, e
Slide 9: Investing for Growth
INVESTING FOR GROWTH Consistent with our strategy of investing for growth, EBOS has made multiple acquisitions and investments to support future growth Acquisitions Operational infrastructure investments Target Business unit Region Investment Location Completion timing Auckland Medical Contract logi
Slide 10: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance over the long term Underlying EBITDA1 ($m) Underlying EPS1 (cents per share) DPS (NZ$ cents per share) 14.7% CAGR2 10.3% CAGR2 10.8% CAGR2 2 82 8 0 8 3 30 8 8 3 0 2 33 3 8 0 2 0 2 2 208 228 82 F F F F 8 F F 20 F 2 F 22 F 23 F
Slide 11: Sustainability Snapshot
SUSTAINABILITY SNAPSHOT Our five pillars Our key initiatives + We are currently focussed ‘on reducing building- related Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions that we control by improving energy efficiency and switching to renewable energy sources. + During the year, the first phase of o
Slide 12: Healthcare Results
HEALTHCARE RESULTS 12
Slide 13: Healthcare Segment
HEALTHCARE SEGMENT The Healthcare segment delivered solid revenue and earnings growth despite the current macroeconomic environment $m FY24 FY23 Var Var% • Healthcare’s strong performance was driven by organic growth. Revenue 12,610.0 11,676.6 933.5 8.0% • Solid performances across our Community Pha
Slide 14: Community Pharmacy
COMMUNITY PHARMACY • Revenue increased by $497.4m (6.8%) and GOR increased by $m FY24 FY23 Var Var% $31.8m (4.9%), benefitting from: Revenue 7,809.8 7,312.4 497.4 6.8% o Strong performance from our retail brands, including TWC; GOR 677.8 646.1 31.8 4.9% o New pharmacy wholesale customer wins support
Slide 15: Institutional Healthcare
INSTITUTIONAL HEALTHCARE • Institutional Healthcare revenue increased by $414.2m $m FY24 FY23 Var Var% (11.5%) and GOR increased by $40.8m (7.2%) due predominantly to growth in our Symbion Hospitals and Revenue 4,004.7 3,590.5 414.2 11.5% Medical Technology businesses. - Medicines, consumables 3,441
Slide 16: Institutional Healthcare Business Units
INSTITUTIONAL HEALTHCARE BUSINESS UNITS Institutional Healthcare revenue increased by 11.5% driven by very strong growth in our Symbion Hospitals business FY24 Sales Businesses Drivers Growth • Strong GOR growth of 10.2%. Revenue growth was lower, reflecting the rationalisation of lower margin, non-
Slide 17: Contract Logistics
CONTRACT LOGISTICS • Following a period of strong growth in which the business $m FY24 FY23 Var Var% approximately doubled since FY20, Contract Logistics GOR 1 decreased by $4.5m (-2.9%): GOR 148.7 153.2 (4.5) (2.9%) o Australia grew through new and existing principals, including the benefit from Go
Slide 18: Animal Care Results
ANIMAL CARE RESULTS 18
Slide 19: Animal Care Segment
ANIMAL CARE SEGMENT The Animal Care segment delivered double-digit Underlying EBITDA growth driven by the performance of higher margin businesses and the contribution from the Superior acquisition $m FY24 FY23 Var Var% • Animal Care revenue increased by $18.2m (3.2%) and Underlying EBITDA increased
Slide 20: Product and Brand Update
PRODUCT AND BRAND UPDATE Demonstrating the continued strength of our brands, Black Hawk and Vitapet continued to grow or maintain share leadership in their respective segments FY24 Sales Businesses Sales drivers Growth Black Hawk • Resilient performance from our branded businesses. Black Hawk and Vi
Slide 21: New Product Development Update
NEW PRODUCT DEVELOPMENT UPDATE Consistent with our Animal Care growth strategy, several new product development launches occurred in FY24 diversifying our product offering and complementing our strong existing core products Existing core branded portfolio Recent new products to market and category e
Slide 22: Financial Information
FINANCIAL INFORMATION 22
Slide 23: Cash Flow
CASH FLOW $m FY24 FY23 Var$ Var% Underlying Cash from Operations ($m) Underlying EBITDA 624.3 582.0 42.3 7.3% Net interest paid (93.6) (70.6) (23.1) H H2 Tax (paid) (103.5) (144.4) 40.9 Net working capital and other (60.2) 37.6 (97.8) 2 3. movements 2 . Underlying Cash from 20 . . 367.0 404.7 (37.7)
Slide 24: Net Debt and Working Capital
NET DEBT AND WORKING CAPITAL Net Debt and Net Debt : EBITDA ratio1 Working Capital . x .8 x . 2x $m FY24 FY23 FY22 . x 0.8 x Net Working Capital Trade & other receivables 1,372.8 1,383.2 1,277.5 ,0 Inventory 1,210.4 1,234.2 1,104.0 8 0 Trade payables/other (2,169.7) (2,263.4) (2,014.8) 32 2 Total 41
Slide 25: Earnings and Dividends per Share
EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings per Share (cents) Dividends per Share (NZ cents) H H2 H H2 8. 3.3 . 3.0 .0 .2 .0 .0 . 0.0 . . .0 .8 . .0 3.0 .3 3 . 2. F 20 F 2 F 22 F 23 F 2 F 20 F 2 F 22 F 23 F 2 • Underlying EPS of 157.9 cents representing growth of 6.8%. • Final dividend of N
Slide 26: Near-Term Growth and Outlook
NEAR-TERM GROWTH AND OUTLOOK 26
Slide 27: Near-Term Growth Strategy
NEAR-TERM GROWTH STRATEGY We are making strong progress on the key focus areas of our near-term strategy to increase earnings Illustrative FY24 to FY25 Underlying EBITDA Growth Description Page ref. sources • The Healthcare and Animal Care segments are 1 Base business Pages 8 expected to continue to
Slide 28: Diverse and Well Established Growth Strategies
DIVERSE AND WELL ESTABLISHED GROWTH STRATEGIES EBOS has multiple organic and inorganic growth drivers across the Group that are well established Community Pharmacy Institutional Healthcare Contract Logistics Animal Care 8% CAGR 21% CAGR 16% CAGR 10% CAGR Long-term track 5% CAGR (excluding CWA contac
Slide 29: Costs and Cost Reduction Initiatives
COSTS AND COST REDUCTION INITIATIVES • The Group successfully managed operating expenditure as a percentage of revenue and EBITDA margins in the inflationary environment. • Underlying Operating Expenditure is expected to continue to grow in FY25 reflecting ongoing business growth. Key cost growth dr
Slide 30: Strategic Acquisitions
STRATEGIC ACQUISITIONS Acquisitions diversify and grow our earnings and are value accretive to shareholders Acquisition objectives Target profile 1. Strengthen our core businesses ✓ Targets: established, profitable, growing and well managed businesses 2. Extend existing businesses into new segments
Slide 31: Outlook
OUTLOOK • EBOS is pleased with the strong earnings growth achieved in FY24, driven by both organic growth and acquisitions. • Our earnings have demonstrated resilience and continued growth despite the uncertain macroeconomic environment, reflecting the defensive and diverse nature of our Group. • Ou
Slide 32: Supporting Information
SUPPORTING INFORMATION 32
Slide 33: Reconciliation of Statutory to Underlying Results
RECONCILIATION OF STATUTORY TO UNDERLYING RESULTS FY24 FY23 $m EBITDA EBIT PBT NPAT EBITDA EBIT PBT NPAT Statutory result 605.6 476.7 383.1 271.5 568.8 444.0 373.4 253.4 M&A transaction costs 10.1 10.1 10.1 7.5 0.7 0.7 0.7 0.7 Healthcare restructuring & site transition costs 8.6 8.6 8.6 6.1 - - - -
Slide 34: Segment EBITDA and EBIT Reconciliation
SEGMENT EBITDA AND EBIT RECONCILIATION EBITDA EBIT $m FY24 FY23 Var$ Var% FY24 FY23 Var$ Var% Healthcare Statutory 537.5 504.5 33.0 6.5% 420.4 391.1 29.3 7.5% add M&A transaction costs 1.9 - 1.9 1.9 - 1.9 add Healthcare restructuring & site transition costs 8.6 - 8.6 8.6 - 8.6 add Medical Technology
Slide 35: 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: Term Definition Revenue Revenue from the sale of goods and the rendering of services. Gross Operating Revenue (GOR) Revenue less cost of sales and the write-do
Slide 36: www.ebosgroup.com
mer BOS GROUP LIMITED www.ebosgroup.com