Ebos Group Limited · NZX:EBO
Ebos — FY2021 Earnings Presentation
35 slides from Ebos's earnings presentation, Aug 18, 2021
Slide 1: Investor Presentation: Annual Financial Results FY2021
INVESTOR PRESENTATION Annual Financial Results Full year ended 30 June 2021 18 August 2021
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 ‘ ry
Slide 4: FY21 Summary Results
FY21 SUMMARY RESULTS EBOS’ strong performance has continued with another record result $m Underlying Var Statutory Var Revenue 9,203 5.0% 9,203 5.0% EBITDA 367.1 9.2% 363.3 8.9% EBIT 294.5 11.9% 290.7 11.6% NPAT 188.2 15.5% 185.3 14.0% EPS (cents) 114.9 14.0% 113.2 12.5% DPS (NZ cents) 88.5 14.2% RO
Slide 5: Key Highlights
KEY HIGHLIGHTS Strong organic growth in Healthcare and Animal Care and investing for future growth Healthcare • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and Contract Logistics businesses. Key highlights included: EBIT
Slide 6: Business and Segment Performance
BUSINESS AND SEGMENT PERFORMANCE Our Healthcare and Animal Care businesses contributed positively to strong earnings growth GOR bridge ($m) Underlying EBIT bridge ($m) FY21 growth 2.5% 9.7% 18.7% 14.4% 7.2% 11.4% 26.4% (49.9%) 11.9% vs. pcp (7.8) +17.3 +13.1 +14.6 +22.7 +26.1 984.3 294.5 +12.0 917.8
Slide 7: Investing for Growth
INVESTING FOR GROWTH Consistent with our strategy of investing for growth, EBOS announces a significant Animal Care investment and a number of Healthcare acquisitions Announced today Pet Food Manufacturing Facility Investment Medical Devices Distribution Acquisition Additional Acquisition • A furthe
Slide 8: Pet Food Manufacturing Facility
PET FOOD MANUFACTURING FACILITY EBOS will shortly commence manufacturing Black Hawk through our own new state of the art facility under construction in NSW, Australia • ~$80m investment in construction of a new pet food manufacturing facility in NSW, Australia. • Facilitates insource manufacturing o
Slide 9: Strategic Acquisitions
STRATEGIC ACQUISITIONS EBOS has completed another acquisition in its medical devices distribution business and has a high degree of confidence of executing a further acquisition in the near term within the Institutional Healthcare division • Acquired 100% of Pioneer Medical Group, a New Zealand base
Slide 10: Environment, Social and Governance
ENVIRONMENT, SOCIAL AND GOVERNANCE EBOS has today launched its ESG program and published its inaugural Sustainability Report Our ESG program comprises five pillars 10
Slide 11: Group Performance
GROUP PERFORMANCE $m FY21 FY20 Var Var% • Revenue of $9,202.9m, an increase of $437.3m or 5.0%: Underlying Results o Healthcare up 4.4%. Revenue 9,202.9 8,765.5 437.3 5.0% o Animal Care up 17.0%. GOR 984.3 917.8 66.5 7.2% EBITDA 367.1 336.2 30.9 9.2% • Underlying EBIT of $294.5m, an increase of $31.
Slide 12: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance through the cycle Underlying EBIT ($m) Underlying EPS ($ cents per share) DPS (NZ$ cents per share) 11.4% CAGR 10.6% CAGR 11.6% CAGR 295 115 89 263 78 101 72 230 90 94 69 218 86 63 204 77 59 185 160 66 47 138 57 41 FY14 FY15
Slide 13: Healthcare Results
HEALTHCARE RESULTS 13
Slide 14: Healthcare Segment
HEALTHCARE SEGMENT Healthcare segment Underlying EBIT growth of 11.4%, with strong performances in both Australia and New Zealand $m FY21 FY20 Var$ Var% • Revenue growth of 4.4% was driven by the performances of Community Pharmacy, TWC, Institutional Healthcare and Revenue 8,705.4 8,340.4 364.9 4.4%
Slide 15: Community Pharmacy
COMMUNITY PHARMACY • The Consumer Products division has been absorbed into $m FY21 FY20 Var ($) Var (%) Community Pharmacy effective 1 July 2021. Revenue Community Pharmacy 5,289.3 5,090.2 199.2 3.9% • Revenue increased by $184.4m (3.5%) and GOR increased Consumer Products 100.6 115.4 (14.8) (12.8)%
Slide 16: TerryWhite Chemmart
TerryWhite Chemmart that’s real chemistry One of Australia’s leading community pharmacy networks with over 465 stores Network sales growth in FY21 • TWC added 36 net new pharmacies to its national network in FY21, continuing its record growth in store numbers. Total sales up 5.3% • Together with rec
Slide 17: Institutional Healthcare
INSTITUTIONAL HEALTHCARE • Institutional Healthcare revenue increased by $120.9m (4.7%) $m FY21 FY20 Var$ Var% and GOR increased by $22.7m (9.7%), largely from increases in new specialty medicines, combined with strong growth in the Revenue 2,686.0 2,565.1 120.9 4.7% medical consumables sector and a
Slide 18: Contract Logistics
CONTRACT LOGISTICS • Contract Logistics revenue increased by $95.3m (13.4%) and $m FY21 FY20 Var$ Var% GOR by $14.6m (18.7%), attributable to growth in Australia due to an increased number of principals and increasing Revenue 807.5 712.3 95.3 13.4% pharmaceutical principal sales, as well as growth i
Slide 19: Animal Care Results
ANIMAL CARE RESULTS 19
Slide 20: Animal Care Segment
ANIMAL CARE SEGMENT Animal Care has continued to capitalise on strong pet market conditions $m FY21 FY20 Var$ Var% • Animal Care revenue increased by $72.4m (17.0%) and EBIT increased by $13.1m (26.4%) due to strong Revenue 497.5 425.1 72.4 17.0% performances by our key brands and businesses – Black
Slide 21: Continued Product and Brand Growth
CONTINUED PRODUCT AND BRAND GROWTH Our key brands and Lyppard demonstrated double-digit sales growth FY21 sales Categories Sales growth drivers growth • Strong consumer support for our products. Black Hawk 12.4% • Continued investment in marketing to drive increased brand awareness and retail suppor
Slide 22: Financial Information and Current Trading
FINANCIAL INFORMATION AND CURRENT TRADING 22
Slide 23: Cash Flow
CASH FLOW $m FY21 FY20 Var$ Var% Cash from Operating activities ($m) Statutory EBITDA 363.3 333.6 29.7 8.9% Net interest paid (27.6) (30.4) 2.8 Tax paid (72.2) (69.0) (3.2) Net working capital and other movements 34.8 (5.0) 39.8 298.3 229.2 Cash from Operating activities 298.3 229.2 69.1 30.1% 162.1
Slide 24: Working Capital and ROCE
WORKING CAPITAL AND ROCE Working Capital Return on Capital Employed (ROCE) $m FY21 FY20 FY19 Net Working Capital Trade receivables 1,098.9 984.6 865.7 Inventory 784.8 737.7 723.5 18.0% 17.1% 17.1% Trade payables/other (1,622.3) (1,417.2) (1,307.3) 16.3% 15.9% Total 261.3 305.1 281.9 Cash conversion
Slide 25: Net Debt and Maturity Profile
NET DEBT AND MATURITY PROFILE Net Debt and Net Debt : EBITDA ratio1 Cash and Debt Maturity Profile 1.80x 572 1.74x 1.41x 1.11x 0.85x 407 293 250 68 413 432 169 366 327 271 75 225 165 25 50 - Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Cash on FY22 FY23 FY24 FY25 FY26 Hand Net Debt Net Debt : EBITDA Ratio Dra
Slide 26: Earnings and Dividends per Share
EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings per Share (A$ cents) Dividends per Share (NZ$ cents) 114.9 100.8 88.5 90.4 94.2 86.3 77.5 57.2 68.5 71.5 63.0 49.5 46.0 44.4 46.4 41.6 40.0 35.5 37.0 33.0 51.3 57.8 44.7 46.0 47.8 37.5 42.5 30.0 33.0 34.5 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY
Slide 27: FY22 Outlook
FY22 OUTLOOK • EBOS is pleased with the strong earnings growth in FY21 and expects to be able to generate further growth in FY22. • The Group’s portfolio of businesses has proven to be very resilient throughout the COVID-19 pandemic, however lockdowns in New Zealand and Australia are evidence of the
Slide 28: Supporting Information
SUPPORTING INFORMATION 28
Slide 29: Reconciliation of Statutory to Underlying Results
RECONCILIATION OF STATUTORY TO UNDERLYING RESULTS FY21 FY20 $m EBITDA EBIT PBT NPAT EBITDA EBIT PBT NPAT Statutory result 363.3 290.7 263.0 185.3 333.6 260.5 230.1 162.5 Transaction costs incurred on M&A 3.8 3.8 3.8 2.9 2.6 2.6 2.6 2.1 Tax credit for NZ depreciation charge - - - - - - - (1.7) Net of
Slide 30: Segment EBITDA and EBIT Reconciliation
SEGMENT EBITDA AND EBIT RECONCILIATION EBITDA EBIT $m FY21 FY20 Var$ Var% FY21 FY20 Var$ Var% Healthcare Pre IFRS16 280.0 257.4 22.5 8.8% 248.2 224.3 23.8 10.6% add IFRS16 impact 36.2 33.0 3.3 2.9 1.9 1.0 Statutory 316.2 290.4 25.8 8.9% 251.1 226.3 24.9 11.0% add One-off items 3.8 2.6 1.2 3.8 2.6 1.
Slide 31: Reconciliation of Changes to IFRS16 Lease Accounting: Income Statement
RECONCILIATION OF CHANGES TO IFRS16 LEASE ACCOUNTING: INCOME STATEMENT IFRS16 Impact Statutory pre IFRS16 Statutory $m FY21 FY20 Var$ Var% FY21 FY20 FY21 FY20 Var$ Var% Group Income Statement Revenue 9,202.9 8,765.5 437.3 5.0% - - 9,202.9 8,765.5 437.3 5.0% Gross Operating Revenue 984.3 917.8 66.5 7
Slide 32: COVID-19 Financial Impacts
COVID-19 FINANCIAL IMPACTS The estimated net overall financial impact from COVID-19 on the Group in FY21 was slightly positive Positive impacts Negative impacts • Sales impacted as a result of lockdowns which drove lower foot traffic in some retail pharmacies, especially in • Institutional Healthcar
Slide 33: COVID-19 Seasonality Impact
COVID-19 SEASONALITY IMPACT The Group’s revenue seasonality returned to pre COVID-19 trends in FY21 as last year included higher than normal revenue in Q3 FY20 and lower than normal revenue in Q4 FY20. Revenue Seasonality by quarter (%) 27.3% 25.6% 25.5% 25.8% 25.7% 25.4% 24.8% 24.4% 24.8% 23.9% 24.
Slide 34: 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 35: www.ebosgroup.com
mer BOS GROUP LIMITED www.ebosgroup.com