Ebos Group Limited · NZX:EBO
Ebos — H1 FY2015 Earnings Presentation
24 slides from Ebos's earnings presentation, Feb 25, 2015
Slide 1: Results presentation for the Half Year ended 31 December 2014
EBOS Group Ltd For personal use only Results presentation for the Half Year ended 31 December 2014 Patrick Davies Chief Executive Officer John Cullity Chief Financial Officer 25 February 2015
Slide 2: Disclaimer
Disclaimer For personal use only 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 reliabil
Slide 3: 1. Group Overview and Results
For personal use only 1. Group Overview and Results 3
Slide 4: First Half Overview
First Half Overview For personal use only • NPAT of $53.9m for the first half, an increase of 9.2% on last year or 11.5% on a constant FX basis. Strong financial • EBITDA growth in both Healthcare (10.3%) and Animal Care (8.9%) (constant FX). results • Operating cash flow of $30.5m. • Earnings per s
Slide 5: Half Year Results Summary
Half Year Results Summary Strong financial performance For personal use only H1 H1 Constant FX • 1H Group Revenue increase of 6.1% (constant FX), NZ$m FY15 FY14 Var Var with growth achieved in both Healthcare and Animal Revenue 3,119.9 3,000.1 4.0% 6.1% care segments. EBITDA1 100.3 94.8 5.9% 8.1% •
Slide 6: EBOS Group today
EBOS Group today A diverse and interconnected portfolio For personal use only HEALTHCARE ANIMAL CARE Community Pharmacy Institutional Healthcare Contract Logistics Pet Care and Veterinary Pharmacy Wholesale Pharmacy Services Pharmacy Retail Consumer Products • EBOS remains the largest diversified Au
Slide 7: 2. Segment Overview and Results
For personal use only 2. Segment Overview and Results 7
Slide 8: Segment earnings overview
Segment earnings overview For personal use only EBITDA by segment Gross Operating Revenue H1 FY15 H1 H1 Constant FX NZ$m FY15 FY14 Var Var Healthcare 88.5 81.9 8.1% 10.3% Animal Care 16.8 15.7 7.1% 8.9% Corporate (5.0) (2.8) (79.5%) (76.4%) #DIV/0! Group 100.3 94.8 5.9% 8.1% • Very strong performanc
Slide 9: Healthcare segment Half Year Results Summary
Healthcare segment Half Year Results Summary For personal use only H1 H1 Constant FX • Healthcare Revenue increase of 5.9% (constant FX): NZ$m FY15 FY14 Var Var – Australia up 6.5%. Healthcare segment – New Zealand up 3.7%. Revenue 2,928.7 2,823.0 3.7% 5.9% EBITDA 88.5 81.9 8.1% 10.3% • EBITDA incre
Slide 10: Healthcare segment First Half Overview
Healthcare segment First Half Overview For personal use only Australian Pharmacy • Pharmacy sales in Australia grew by 5.0% (constant FX), attributable to customer growth and new Wholesale sales wholesale business. growth of 5.0% • In August 2014, EBOS Group acquired a 25% strategic investment in th
Slide 11: Healthcare segment First Half Overview (continued)
Healthcare segment First Half Overview (continued) For personal use only • A new Melbourne pharmaceutical distribution centre opened in September 2014 at a total cost of Successful opening of A$31m. This investment reflects our ongoing commitment to providing our customers with industry the new Melb
Slide 12: Animal Care segment Half Year Results Summary
Animal Care segment Half Year Results Summary For personal use only H1 H1 Constant FX • Revenue increase of 10.3% (constant FX) primarily from NZ$m FY15 FY14 Var Var growth of branded products (including BlackHawk) and Animal Care segment wholesale operations (Lyppard). Revenue 191.1 177.0 8.0% 10.3
Slide 13: Animal Care segment First Half Overview
Animal Care segment First Half Overview For personal use only • Acquisition of BlackHawk premium pet food business for $57.4m on 31 October 2014, increased our BlackHawk Animal Care branded offering. BlackHawk is a rapidly growing premium pet food brand sold acquisition and exclusively through Austr
Slide 14: 3. Group Financial Information
For personal use only 3. Group Financial Information 14
Slide 15: Cash Flow
Cash Flow EBOS has an excellent portfolio of strong cash generating businesses For personal use only H1 H1 • Focus on tight working capital management, with NZ$m FY15 FY14 Var$ Var% an industry leading cash conversion cycle of 24 Reported EBITDA 100.3 94.8 5.5 5.9% days. Interest paid (11.5) (14.1)
Slide 16: Working Capital and cash conversion
Working Capital and cash conversion Industry leading cash conversion cycle of 24 days For personal use only • Strong working capital management disciplines are a key Dec-14 Jun-14 Dec-13 focus of the group. Net Working Capital (NZ$m) Trade receivables 773.4 687.3 741.3 • Key ratios are consistent wi
Slide 17: Debt profile
Debt profile For personal use only Debt maturity profile Net debt and Gearing 180 400 40% 350 368 35% 150 350 300 30% 316 Net debt (NZ$m) 120 250 25% Gearing ratio 26.7% 26.9% NZ$m 24.4% 90 176 200 20% 150 15% 60 77 92 92 100 10% 30 50 5% - 0 0% FY17 FY18 FY19 FY20 Dec-13 Jun-14 Dec-14 Term debt Sec
Slide 18: Dividends and Earnings per share
Dividends and Earnings per share For personal use only Earnings per share ROCE Return on Capital Employed 62.8 46.8 ROCE % NZ$ cents per share 36.2 34.0 12.8% 12.9% 41.0 32.5 10.9% 20.5 22.0 FY13 FY14 H1 FY14 H1 FY15 FY13 FY14 H1 FY15 DPS EPS ROCE • EPS growth of 6.5% (8.7% constant FX) in first hal
Slide 19: Foreign exchange
Foreign exchange Appreciation of the NZD has continued to impact NZD translated earnings For personal use only Net Revenue and EBITDA by currency AUD Average AUD NZ Group • 82% of the Group’s earnings (EBITDA) are Operations NZD: AUD Operations Operations Consolidated generated in AUD. $m AUD transl
Slide 20: 4. Outlook
For personal use only 4. Outlook 20
Slide 21: Outlook
Outlook For personal use only • We see continued growth in our business across both Healthcare and Animal Care and expect second half constant currency profit growth to be approximately the same rate as recorded in the first half. 21
Slide 22: Supporting information
For personal use only Supporting information 22
Slide 23: 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 Actual results Results translated into NZ dollars at the applicable actual monthly exchange rates ruling in each period.
Slide 24: www.ebosgroup.com
For personal use only www.ebosgroup.com