Slide 1: Investor Presentation FY19 Financial Results
For personal use only INVESTOR PRESENTATION FY19 FINANCIAL RESULTS 22 August 2019
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 form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or For personal use only reliabil
Slide 3: Group Financial Results
For personal use only Group Financial Results
Slide 4: FY19 Summary Results
FY19 SUMMARY RESULTS1 For personal use only Revenue Underlying EBITDA2 Underlying NPAT2 $6.9b $261.6m $144.4m -0.8% +4.6% +5.2% ROCE Underlying EPS2 Dividends per share 15.9% 94.2c 71.5c (NZ$) -0.4% +4.3% +4.4% Note 1: All currency amounts are in Australian dollars except for Dividends per share. No
Slide 5: Strategic Highlights
STRATEGIC HIGHLIGHTS FY19 investments prepare the business for the next wave of growth in FY20 Investments and New Business Infrastructure For personal use only Acquisitions of $93.6m made in FY19 Two new major facilities opened in Australia Acquisition of all the minority shares in TerryWhite B
Slide 6: FY19 Financial Performance
FY19 FINANCIAL PERFORMANCE FY19 Underlying Revenue decrease of 0.8% was impacted by lower Hepatitis C For personal use only A$m Statutory Underlying2 FY18 Var$ Var% medicine sales and the impact of Revenue 6,930.4 6,930.4 6,986.7 (56.4) (0.8%) PBS reforms in Australia (combined Gross Operating Rev
Slide 7: Healthcare Results
For personal use only Healthcare Results
Slide 8: Healthcare Segment
HEALTHCARE SEGMENT Solid underlying trading performance Australia revenue down 3.5% (or up 5.2% excluding For personal use only A$m FY19 FY18 Var$ Var% hepatitis C medicine sales and PBS price reforms²). Underlying EBITDA up 5.7% primarily from growth in Revenue 6,548.3 6,608.6 (60.3) (0.9%) Insti
Slide 9: Community Pharmacy
COMMUNITY PHARMACY For personal use only Total Pharmacy Revenue declined by $167m or 4.3%, attributable to lower hepatitis C medicine A$m FY19 FY18 Var$ Var% sales (-$130m) and PBS reforms (-$146m). Revenue 3,704.1 3,871.4 (167.3) (4.3%) Full year revenue growth (excluding hepatitis C GOR 372.8
Slide 10: Chemist Warehouse Trading Update
CHEMIST WAREHOUSE TRADING UPDATE For personal use only On 1 July 2019, EBOS commenced servicing the CWG pharmaceutical wholesale contract. This was a “big-bang” start with all of CWG’s 450+ stores commencing trading with Symbion on 1 July 2019. This has been a very significant Supply Chain and L
Slide 11: Institutional Healthcare
INSTITUTIONAL HEALTHCARE For personal use only FY19 revenue was impacted by reduced hepatitis C sales (-$127m) and PBS reforms (-$22m), partly A$m FY19 FY18 Var$ Var% offset by the contribution from Warner & Revenue 2,292.7 2,239.6 53.1 2.4% Webster (‘W&W’). GOR 209.7 195.5 14.2 7.2% Underlying
Slide 12: Contract Logistics
CONTRACT LOGISTICS For personal use only In FY19 Contract Logistics expanded its footprint in Australia, commencing operations A$m FY19 FY18 Var$ Var% in a new 25,000m² facility in Sydney. We also Revenue 518.0 454.2 63.8 14.0% expanded our NZ operations with an additional GOR 67.2 61.2 6.1 9.9% n
Slide 13: Consumer Products
CONSUMER PRODUCTS Revenue and GOR improvements were driven by For personal use only growth in both domestic and international A$m FY19 FY18 Var$ Var% markets and the acquisition of Quitnits, a leading Revenue 113.9 108.6 5.3 4.9% brand in Australian grocery for treatment of head lice. GOR 44.0 42.
Slide 14: Animal Care Results
For personal use only Animal Care Results
Slide 15: Animal Care Segment
ANIMAL CARE SEGMENT Strong EBITDA performance reflecting continued growth in our key brands For personal use only Underlying EBITDA and EBITDA % A$m FY19 FY18 Var$ Var% Revenue 382.0 378.2 3.9 1.0% EBITDA 48.3 45.7 2.6 5.7% EBITDA% 12.64% 12.07% EBITDA increase of $2.6m or 5.7%: Earnings improveme
Slide 16: Animal Care Segment: Black Hawk continues to perform strongly
ANIMAL CARE SEGMENT Black Hawk continues to perform strongly For personal use only Black Hawk sales grew 11% (following Australian growth of 23% in FY18 and 48% in FY17). Continued growth well above market due to: Continued investment in marketing driving increased brand awareness and strong ret
Slide 17: Group Financial Information & Outlook
For personal use only Group Financial Information & Outlook
Slide 18: Cash Flow
CASH FLOW A$m FY19 FY18 Var$ Var% Cash Flow from Operating Activities For personal use only Statutory EBITDA 250.4 250.1 0.4 0.1% Net interest paid (25.3) (20.9) (4.5) Tax paid (55.3) (60.0) 4.8 Net working capital and other movements (51.3) (7.1) (44.2) Cash from Operating activities 118.5 162.1 (4
Slide 19: Working Capital and ROCE
WORKING CAPITAL AND ROCE Working Capital Return on Capital Employed2 For personal use only A$m June 2019 June 2018 Net Working Capital Trade receivables 865.7 892.2 Inventory 723.5 535.1 Trade payables/other (1,307.3) (1,196.4) Total 281.9 230.8 Cash conversion days1 Debtor days 43 41 Inventory days
Slide 20: Net Debt, Gearing and Maturity Profile
NET DEBT, GEARING AND MATURITY PROFILE Net Debt and Gearing Debt Maturity Profile – facility limits (A$) For personal use only 500 28.6% 28.7% 30% 450 23.2% 22.8% 25% 400 400 350 18.5% 20% Net debt (A$m) Gearing ratio 300 250 15% 200 413 432 366 10% 150 283 237 293 100 5% 167 - 50 125 0 0% 50 Jun-15
Slide 21: Earnings and Dividends Per Share
EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings Per Share (A$ cents) Dividends Per Share (NZ$ cents) For personal use only 68.5 71.5 63.0 H1 H2 58.5 NZ$ cents per share 47.0 35.5 37.0 33.0 32.5 25.0 30.0 33.0 34.5 22.0 26.0 FY15 FY16 FY17 FY18 FY19 Underlying EPS growth of 4.3% in FY19. Fin
Slide 22: Capital Raise and M&A Update
CAPITAL RAISE AND M&A UPDATE The proceeds from the placement in May 2019 have initially been used to pay down bank debt and reduce gearing. It is expected the funds will be used for strategic acquisitions, For personal use only organic growth initiatives and general corporate purposes as they arise
Slide 23: FY20 Outlook
FY20 OUTLOOK For personal use only EBOS Group has recorded a strong underlying financial performance in FY19 and the Group is confident of a significant increase in earnings in FY20. A performance update will be provided to shareholders at the Annual Meeting on 15 October 2019. 23
Slide 24: Supporting Information
For personal use only Supporting Information
Slide 25: Reconciliation of Statutory and Underlying Results
RECONCILIATION OF STATUTORY AND UNDERLYING RESULTS For personal use only FY19 FY18 A$m EBITDA NPAT EBITDA NPAT Statutory result 250.4 137.7 250.1 137.3 Deduct Profit on sale of surplus property (2.9) (2.2) - - Add back Transition costs for major new warehouses and Restructuring costs 8.9 5.5 - - Tra
Slide 26: Segment Earnings and GOR Mix
SEGMENT EARNINGS AND GOR MIX EBITDA by segment Gross Operating Revenue (GOR) FY19 For personal use only A$m FY19 FY18 Var$ Var% 14% Underlying EBITDA 86% Healthcare 226.6 216.6 10.0 4.6% 14% Animal Care 48.3 45.7 2.6 5.7% Corporate (13.2) (12.2) (1.0) (8.4%) 6% 46% Group 261.6 250.1 11.6 4.6% 8% Sta
Slide 27: Years Results Summary
5 YEARS RESULTS SUMMARY We continue to deliver results whilst reinvesting for growth For personal use only Results achieved 5 Year 5 Year CAGR CAGR +9.4% +9.5% 27
Slide 28: 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 Actual results Results translated into Australian dollars at the applicable actual monthly exchange rates ruling in each period. For personal u
Slide 29: www.ebosgroup.com
For personal use only www.ebosgroup.com