Ebos Group Limited · NZX:EBO
Ebos — Macquarie Australia Conference 2022
32 slides from Ebos's conference presentation, May 4, 2022
Slide 1: Macquarie Australia Conference Presentation
4 May 2022 NZX/ASX Code: EBO For personal use only Macquarie Australia Conference Presentation Please see attached a copy of a presentation to be delivered at the Macquarie Australia Conference today. For further information please contact: Martin Krauskopf General Manager, Mergers & Acquisitions an
Slide 2: Investor Presentation - Macquarie Australia Conference
For personal use only INVESTOR PRESENTATION MACQUARIE AUSTRALIA CONFERENCE 4 May 2022
Slide 3: 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 4: EBOS Snapshot
EBOS SNAPSHOT For personal use only EBOS Group is a leading diversified Healthcare and Animal Care group Snapshot: Businesses: Segments3: $7bn+ Community Pharmacy Animal Care 14% market capitalisation (incl. TerryWhite Chemmart) Healthcare Ranked ~10th / ~80th on NZX / ASX1 Institutional Healthcare
Slide 5: Our Trans-Tasman History
OUR TRANS-TASMAN HISTORY For personal use only EBOS’ history stretches back 100 years in New Zealand and 175+ years in Australia 1922 1960 2007 2011 Early Brothers Early Bros Dental & EBOS acquires EBOS acquires pet Trading Co. is Surgical Supplies is Pharmacy Retailing brand business, founded liste
Slide 6: Investment Themes
INVESTMENT THEMES For personal use only EBOS has had a strong track record of growth, yield and shareholder returns Defensive growth sectors Scale and leading positions Diversified group Proven value creation strategy Multiple growth drivers Strong financial track record for over 20 years 5
Slide 7: Leading Positions in Attractive Segments
LEADING POSITIONS IN ATTRACTIVE SEGMENTS For personal use only We operate leading businesses in defensive growth segments EBOS segment positions across ANZ: Australia sector growth5 (3 year CAGR): Growing and ageing Growing pet population and #1 #1 population humanisation of pets hospital pharmacy m
Slide 8: Value Creation Strategy
VALUE CREATION STRATEGY For personal use only Our businesses generate organic growth and significant cash flow, which funds our strategy of investing for growth, as well as dividends for shareholders ORGANIC GROWTH AND DISCIPLINED CASH FLOW INVESTING FOR GROWTH DIVIDENDS MANAGEMENT MAXIMISING OPPORT
Slide 9: Multiple Growth Drivers
MULTIPLE GROWTH DRIVERS For personal use only EBOS leverages multiple growth drivers to generate shareholder value Organic growth Investing for growth Industry growth Segment share growth Capex in operational M&A Total growth infrastructure Underlying growth from Continuing to win share Disciplined
Slide 10: Strong Financial Track Record
STRONG FINANCIAL TRACK RECORD For personal use only EBOS has delivered consistent financial performance through the cycle Underlying EBIT1: Underlying EPS1: Total shareholder returns2: (A$m) (A$ cents per share) 11.4% CAGR 10.3% CAGR 218 230 263 295 86 90 94 101 113 47% 185 204 77 1 year 160 57 66 1
Slide 11: Diverse Portfolio of Businesses
DIVERSE PORTFOLIO OF BUSINESSES For personal use only EBOS has a diversified portfolio of businesses that are all contributing to growth GOR ($m): Community Pharmacy Institutional Healthcare Contract Logistics Animal Care 6.0% CAGR 9.1% CAGR 15.6% CAGR 7.3% CAGR 499 419 256 197 111 137 60 92 FY18 FY
Slide 12: Introduction to EBOS' Business Activities
INTRODUCTION TO EBOS’ BUSINESS ACTIVITIES For personal use only EBOS Group is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products. It is also a leading marketer and distributor of recognised animal care brands Healthca
Slide 13: Community Pharmacy
COMMUNITY PHARMACY For personal use only Leading pharmaceutical wholesaler in ANZ with best-in-class distribution network, as well as retail pharmacy management for TWC, one of Australia’s largest community pharmacy networks Key trends: Australian pharmaceutical PBS ethical wholesaling segment share
Slide 14: Institutional Healthcare
INSTITUTIONAL HEALTHCARE For personal use only A leading distributor and wholesaler of medical devices, medicines and medical consumables Key trends: Recent acquisitions: Expected to achieve a leading position in medical devices distribution within three years of entering the sector, following compl
Slide 15: Contract Logistics
CONTRACT LOGISTICS For personal use only Specialised healthcare contract logistics provider with market share upside in Australia Key trends: Contract Logistics’ network across ANZ: Trusted outsourced logistics partner for pharmaceutical manufacturers that has played a critical role during COVID-19
Slide 16: Animal Care
ANIMAL CARE For personal use only Owner and marketer of leading pet food and treats brands with newly completed manufacturing capability and the leading vet wholesaler in Australia Key trends: Completed pet food manufacturing facility in Parkes NSW: Supportive market tailwinds via growing pet popula
Slide 17: Cost Base
COST BASE For personal use only • EBOS is well positioned to manage potentially increasing costs through top line growth as well as its scale and leading market positions • Key group costs include: ‒ COGS ‒ Labour ‒ Freight ‒ Occupancy • Group EBITDA margins were stable in H1 FY22 16
Slide 18: Environment, Social and Governance
ENVIRONMENT, SOCIAL AND GOVERNANCE For personal use only EBOS continues to progress ESG initiatives in areas that are important to our stakeholders Our ESG program comprises five pillars 17
Slide 19: Strategic Acquisitions
STRATEGIC ACQUISITIONS For personal use only Our acquisitions diversify and grow our earnings and are value accretive to shareholders ~20 acquisitions since 2014 adding $800m+ to annual Group revenue: Acquisition strategy: 1 ✓ Targets: established, profitable, well managed and growing businesses Nat
Slide 20: LifeHealthcare Update
LIFEHEALTHCARE UPDATE For personal use only EBOS announced the acquisition of LifeHealthcare on 9 December 2021, one of the largest independent distributors of medical devices across ANZ and South East Asia Overview of LifeHealthcare: Key details: • One of the largest independent distributors of thi
Slide 21: Geographic Expansion Opportunity
GEOGRAPHIC EXPANSION OPPORTUNITY For personal use only The acquisition of an interest in the SE Asia Distribution business within LifeHealthcare has opened up the region as a potential growth opportunity, both in medical devices as well as other Group businesses Healthcare expenditure1: Healthcare e
Slide 22: Conclusion
CONCLUSION For personal use only EBOS has had a strong track record of growth, yield and shareholder returns Defensive growth sectors Scale and leading positions Diversified group Proven value creation strategy Multiple growth drivers Strong financial track record for over 20 years 21
Slide 23: Questions
For personal use only Questions
Slide 24: Appendix
For personal use only 23 APPENDIX
Slide 25: Business Activities: Healthcare
BUSINESS ACTIVITIES: HEALTHCARE For personal use only EBOS is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products Healthcare overview: FY21 Group GOR contribution % Leading wholesaler of pharmaceutical and healthcare p
Slide 26: Business Activities: Animal Care
BUSINESS ACTIVITIES: ANIMAL CARE For personal use only EBOS is also a leading marketer and distributor of animal care brands Animal Care overview: FY21 Group GOR contribution % Owner and marketer of Blackhawk, a leading premium pet food brand and Pet Brands Vitapet, a leading pet treats brand, as we
Slide 27: H1 FY22 Summary Results
H1 FY22 SUMMARY RESULTS For personal use only EBOS’ strong performance has continued with another record half year result $m Underlying Var Statutory Var Revenue 5,251 12.8% 5,251 12.8% EBITDA 207.7 12.8% 199.9 9.7% EBIT 169.1 14.4% 161.3 10.6% NPAT 109.3 15.8% 101.9 9.7% EPS (cents) 66.6 15.2% 61.4
Slide 28: Key Highlights (H1 FY22)
KEY HIGHLIGHTS (H1 FY22) For personal use only Continued strong organic growth in Healthcare and Animal Care and investing for future growth Healthcare • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and EBIT up 17.0%1 Con
Slide 29: Group Performance (H1 FY22)
GROUP PERFORMANCE (H1 FY22) For personal use only $m H1 FY22 H1 FY21 Var Var% • Revenue of $5,250.9m, an increase of $597.6m or 12.8%: Underlying Results o Healthcare up 12.9%. Revenue 5,250.9 4,653.3 597.6 12.8% GOR 575.0 488.6 86.4 17.7% o Animal Care up 12.4%. EBITDA 207.7 184.1 23.5 12.8% • Unde
Slide 30: Business and Segment Performance (H1 FY22)
BUSINESS AND SEGMENT PERFORMANCE (H1 FY22) For personal use only Our Healthcare and Animal Care businesses contributed positively to strong earnings growth GOR bridge ($m) Underlying EBIT bridge ($m) H1 FY22 growth 10.5% 25.4% 37.6% 17.2% 17.7% 17.0% 14.9% (44.5%) 14.4% vs. pcp +4.6 (5.2) +11.7 +16.
Slide 31: 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 Revenue Revenue from the sale of goods and the rendering of services. Gross Operating Revenue (GOR) Revenue less cost of
Slide 32: For personal use only
For personal use only www.ebosgroup.com