Ebos Group Limited · NZX:EBO

Ebos — FY2020 Earnings Presentation

31 slides from Ebos's earnings presentation, Aug 20, 2020

  1. Slide 1: Investor Presentation FY20 Financial Results

    INVESTOR PRESENTATION FY20 FINANCIAL RESULTS 20 August 2020

  2. Slide 2: Disclaimer

    DISCLAIMER The information in this presentation was prepared by EBOS Group Limited (EBOS) 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 the accuracy, co

  3. Slide 3: EBOS Financial Results

    EBOS Financial Results

  4. Slide 4: FY20 Summary Results

    FY20 SUMMARY RESULTS Revenue Statutory EBITDA Statutory NPAT $8.8b up 26.5% $333.6m up 33.2% $162.5m up 18.0% Underlying EBITDA Underlying NPAT $296.6m up 13.4% $168.3m up 16.5% Statutory EPS ROCE Dividends per share 100.6c up 12.0% 17.1% up 1.2% 77.5c up 8.4% (NZ$) Underlying EPS Net Debt : EBITDA

  5. Slide 5: Key Highlights

    KEY HIGHLIGHTS FY20 was a record year for EBOS with all businesses contributing to significant revenue growth of $1.8b or 26.5%  Revenue exceeded $8b for the first time.  Continued commitment to working capital management produced an excellent operating cash flow result of $229.2m.  Both our Heal

  6. Slide 6: COVID-19 Financial Impacts

    COVID-19 FINANCIAL IMPACTS Government measures implemented in response to COVID-19 had various financial impacts on EBOS’ businesses in FY20. The net overall financial impact was broadly neutral and trading conditions improved towards the end of the financial year. Positive impacts Negative impacts

  7. Slide 7: Disaster Relief

    DISASTER RELIEF EBOS’ businesses and employees have contributed to community disaster relief efforts in FY20 through our integral role in the region’s medical supply chain COVID-19  EBOS’ wholesale, distribution and retail healthcare businesses are essential services and play an integral role in ma

  8. Slide 8: FY20 Financial Performance

    FY20 FINANCIAL PERFORMANCE  Significant revenue increase of 26.5% A$m FY20 FY19 Var$ Var% primarily due to growth in Community Underlying Results ¹ Pharmacy, Institutional Healthcare, Revenue 8,765.5 6,930.4 1,835.2 26.5% Contract Logistics and Animal Care. Gross Operating Revenue 917.8 806.3 111.5

  9. Slide 9: Healthcare Results

    Healthcare Results

  10. Slide 10: Healthcare Segment

    HEALTHCARE SEGMENT Healthcare business revenue growth of 27.4%, driven by a strong performance in Australia  Australia’s growth in revenue of 33.1% and A$m FY20 FY19 Var$ Var% Underlying EBITDA of 19.6% was driven by the Revenue 8,340.4 6,548.3 1,792.1 27.4% performances of our Community Pharmacy,

  11. Slide 11: Community Pharmacy

    COMMUNITY PHARMACY  Community Pharmacy revenue increased by A$m FY20 FY19 Var$ Var% $1,386m and GOR by $72.3m due to increased wholesale volumes in both Revenue 5,090.2 3,704.1 1,386.0 37.4% Australia and New Zealand. GOR 445.1 372.8 72.3 19.4% GOR% 8.74% 10.06%  The pharmacy business benefitted f

  12. Slide 12: TerryWhite Chemmart

    TERRYWHITE CHEMMART Continued growth in one of Australia’s leading community pharmacy networks Continued network 4.1% network growth sales growth In the last 12 months, our national With prescription sales growth of network increased by 26 pharmacies. 6.0% on a like-for-like basis. COVID-19 response

  13. Slide 13: Institutional Healthcare

    INSTITUTIONAL HEALTHCARE  Revenue growth of 11.9% was driven largely A$m FY20 FY19 Var$ Var% from increases in new specialty medicines, Revenue 2,565.1 2,292.7 272.4 11.9% combined with strong growth in the medical consumables sector and the acquisition of the GOR 233.2 209.7 23.6 11.2% LMT Group.

  14. Slide 14: Contract Logistics

    CONTRACT LOGISTICS  Continued business development focus led A$m FY20 FY19 Var$ Var% to GOR growth of 15.6% as customers join our new facilities. Revenue 712.3 518.0 194.3 37.5% GOR 77.7 67.2 10.5 15.6%  Investment in the new 25,000m² facility in Note: GOR % not relevant as sales are predominantly

  15. Slide 15: Consumer Products

    CONSUMER PRODUCTS  Consumer Products performance was affected A$m FY20 FY19 Var$ Var% in the first half by softer overseas demand for our products, reflective of the regulatory Revenue 115.4 113.9 1.5 1.3% changes which have impacted the daigou GOR 42.0 44.0 (2.0) (4.6%) export channel. GOR% 36.4%

  16. Slide 16: Animal Care Results

    Animal Care Results

  17. Slide 17: Animal Care Segment

    ANIMAL CARE SEGMENT Strong Revenue and Underlying EBITDA performance reflecting the strength of our key brands and growth in Lyppard Underlying EBITDA (A$m) and Underlying EBITDA % A$m FY20 FY19 Var$ Var% Revenue 425.1 382.0 43.1 11.3% Underlying EBITDA1 52.3 48.3 4.0 8.3% Underlying EBITDA% 12.3% 1

  18. Slide 18: Continued Growth From Our Brands

    CONTINUED GROWTH FROM OUR BRANDS Both our Black Hawk and Vitapet brands continue strong growth rates  Black Hawk sales grew 12.3% due to:  Strong consumer support for our products.  Continued investment in marketing to drive increased brand awareness and retail support.  Increasing market share

  19. Slide 19: EBOS Financial Information & Current Trading Conditions

    EBOS Financial Information & Current Trading Conditions

  20. Slide 20: Cash Flow

    CASH FLOW Cash from Operating activities (A$m) A$m FY20 FY19 Var$ Var% Statutory EBITDA 333.6 250.4 83.2 33.2% Net interest paid (30.4) (25.3) (5.1) Tax paid (69.0) (55.3) (13.8) Net working capital and other movements (5.0) (51.3) 46.3 Cash from Operating activities 229.2 118.5 110.6 93.3% Capital

  21. Slide 21: Working Capital and ROCE

    WORKING CAPITAL AND ROCE Working Capital Return on Capital Employed 1 A$m FY20 FY19 FY18 Net Working Capital Trade receivables 984.6 865.7 892.2 Inventory 737.7 723.5 535.1 Trade payables/other (1,417.2) (1,307.3) (1,196.4) Total 305.1 281.9 230.8 Cash conversion days Debtor days 41 43 41 Inventory

  22. Slide 22: Net Debt and Maturity Profile

    NET DEBT AND MATURITY PROFILE Net Debt and Net Debt : EBITDA ratio 1 Cash and Debt Maturity Profile (A$m) 2 Term Debt Facilities Securitisation Facility 543 400 253 245 221 100 290 32 50 179 68 15 35 Cash on Hand FY21 FY22 FY23 FY24 Drawn amount Committed but undrawn amount  Net Debt1 of $327m at J

  23. Slide 23: Earnings and Dividends Per Share

    EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings Per Share (A$ cents) Dividends Per Share (NZ$ cents)  Underlying EPS of 104.2 cents representing growth of 10.6% in FY20.  Final dividend of 40.0 NZ cents (imputed to 25% and franked to 100% for New Zealand and Australian tax resident shareholde

  24. Slide 24: Current Trading Conditions

    CURRENT TRADING CONDITIONS  EBOS has recorded a strong financial performance in FY20 across both Healthcare and Animal Care and we continue to explore investment opportunities that will expand the Group.  Notwithstanding the overall broadly neutral impact of COVID-19 to date as well as our strong

  25. Slide 25: Supporting Information

    Supporting Information

  26. Slide 26: Reconciliation of Underlying and Statutory Earnings

    RECONCILIATION OF UNDERLYING AND STATUTORY EARNINGS FY20 FY19 Underlying¹ IFRS16 One-off One-off Statutory A$m FY20 FY19 Var$ Var% Impact costs costs FY20 FY19 Var$ Var% Group Income Statement Revenue 8,765.5 6,930.4 1,835.2 26.5% - - - 8,765.5 6,930.4 1,835.2 26.5% Gross Operating Revenue 917.8 806

  27. Slide 27: Reconciliation of Underlying and Statutory Net Assets Adjusted for IFRS 16 Leases

    RECONCILIATION OF UNDERLYING AND STATUTORY NET ASSETS ADJUSTED FOR IFRS 16 LEASES Net Assets as at 30 June 2020 Pre IFRS 16 IFRS 16 Statutory A$m 30-Jun-20 impact 30-Jun-20 Current assets 2,020.6 (0.8) 2,019.8 Non-current assets 1,435.4 291.5 1,727.0 Current liabilities (1,732.1) (35.5) (1,767.6) No

  28. Slide 28: Segment Earnings and GOR Mix

    SEGMENT EARNINGS AND GOR MIX Segment EBITDA Reconciliation Gross Operating Revenue (GOR) FY20 A$m FY20 FY19 Var$ Var% 13% Healthcare Statutory EBITDA 290.4 215.9 74.5 34.5% 87% Iess IFRS16 Leases (33.0) - (33.0) 13% add One-off Costs 2.6 10.6 (8.0) 5% 49% Underlying EBITDA 260.0 226.6 33.5 14.8% Ani

  29. Slide 29: COVID-19 Seasonality Impact

    COVID-19 SEASONALITY IMPACT Government measures implemented in response to COVID-19 resulted in higher than normal relative revenue contribution in Q3 FY20 and lower than normal relative revenue contribution in Q4 FY20. Revenue improved towards the end of the financial year. FY20 revenue seasonality

  30. Slide 30: 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 Debtor days Trade debtors at the end of period divided by Revenue for the period, multiplied by number of days in the period. Inventory days In

  31. Slide 31: www.ebosgroup.com

    www.ebosgroup.com

EBOS Group — FY2020 Earnings Presentation on 6ix