Ebos Group Limited · NZX:EBO

Ebos — H1 FY19 Earnings Presentation

27 slides from Ebos's earnings presentation, Feb 20, 2019

  1. Slide 1: Investor Presentation: Interim Financial Results

    INVESTOR PRESENTATION INTERIM FINANCIAL RESULTS Half Year ended 31 December 2018 20 February 2019

  2. 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 reliability of the information

  3. Slide 3: Group Financial Results

    Group Financial Results

  4. Slide 4: H1 FY19 Summary Results

    H1 FY19 SUMMARY RESULTS1 Revenue Underlying EBITDA2 Underlying NPAT2 A$3.5b A$131.4m A$72.7m -2.7% +4.0% +4.0% ROCE Underlying EPS2 Dividends per share 16.1% 47.8c (A$) 34.5c (NZ$) -0.2% on FY18 +4.0% -0.8% on H1 FY18 +4.5% Note 1: All currency amounts are in Australian dollars except for Dividends

  5. Slide 5: Strategic Highlights

    STRATEGIC HIGHLIGHTS Investments and New Business Infrastructure Acquisitions of $92.5m made in H1 FY18 Opening of two new major facilities in Australia  Acquisition of all the minority shares in TerryWhite  Brisbane - new highly automated wholesale Group Ltd for $46.7m in December 2018. distribut

  6. Slide 6: H1 FY19 Financial Performance

    H1 FY19 FINANCIAL PERFORMANCE H1 FY19 Underlying  Revenue decrease of 2.7% was A$m Statutory Underlying2 H1 FY18 Var$ Var% driven by lower hepatitis C medicine sales and the impacts Revenue 3,496.5 3,496.5 3,595.2 (98.7) (2.7%) of PBS reforms in Australia Gross Operating Revenue 404.8 404.8 396.5 8

  7. Slide 7: Healthcare Results

    Healthcare Results

  8. Slide 8: Healthcare Segment

    HEALTHCARE SEGMENT Solid underlying trading performance across Australia and New Zealand Underlying EBITDA increase of $3.3m or 3.0%: A$m H1 FY19 H1 FY18 Var$ Var%  Australia up 3.0% from growth in Retail Revenue 3,304.2 3,405.7 (101.5) (3.0%) Pharmacy, Institutional Healthcare and Underlying EBITD

  9. Slide 9: Community Pharmacy

    COMMUNITY PHARMACY  Total Pharmacy Revenue declined by $126m or 6.3%, attributable to lower hepatitis C medicine A$m H1 FY19 H1 FY18 Var$ Var% sales (-$78m) and PBS reforms (-$83m). Revenue 1,892.2 2,018.6 (126.4) (6.3%)  Revenue growth (excluding hepatitis C and PBS GOR 190.6 193.1 (2.5) (1.3%) r

  10. Slide 10: Institutional Healthcare

    INSTITUTIONAL HEALTHCARE  First half revenue and GOR growth was impacted by reduced hepatitis C sales ($79m) and PBS A$m H1 FY19 H1 FY18 Var$ Var% reforms ($11m), partly offset by the contribution Revenue 1,154.9 1,148.2 6.6 0.6% from Warner & Webster (‘W&W’). GOR 102.9 98.5 4.4 4.4%  Underlying r

  11. Slide 11: Contract Logistics

    CONTRACT LOGISTICS  The Group expanded its Contract Logistics business in Australia with the opening of a new A$m H1 FY19 H1 FY18 Var$ Var% 25,000m² facility in Sydney (NSW) in June 2018. Revenue 234.8 217.0 17.8 8.2%  The NZ business also expanded operations by GOR 31.2 29.5 1.7 5.8% leasing an a

  12. Slide 12: Consumer Products

    CONSUMER PRODUCTS  Revenue and GOR improvements are driven by strong Red Seal sales (both domestic and A$m H1 FY19 H1 FY18 Var$ Var% international markets) and the addition of Revenue 59.6 54.4 5.2 9.6% Gran’s Remedy. GOR 23.2 20.4 2.8 13.5%  We have increased our investment in GOR% 38.90% 37.57%

  13. Slide 13: Animal Care Results

    Animal Care Results

  14. Slide 14: Animal Care Segment

    ANIMAL CARE SEGMENT Strong EBITDA performance reflecting continued growth in our key brands EBITDA increase of $2.1m or 9.6%: A$m H1 FY19 H1 FY18 Var$ Var% Revenue 192.3 189.6 2.7 1.4%  Earnings improvement is primarily from Black Hawk sales revenue growth of 23%. EBITDA 24.3 22.2 2.1 9.6% EBITDA%

  15. Slide 15: Animal Care Segment: Black Hawk performing strongly

    ANIMAL CARE SEGMENT Black Hawk continues to perform strongly  Black Hawk sales grew 23% (following Australian growth of 26% in H1 FY18 and 48% in H1 FY17). Continued growth well above market due to:  Continued investment in marketing driving increased brand awareness and strong retail support.  M

  16. Slide 16: Group Financial Information & Outlook

    Group Financial Information & Outlook

  17. Slide 17: Cash Flow

    CASH FLOW A$m H1 FY19 H1 FY18 Var$ Cash Flow from Operating Activities – half year EBITDA 122.6 126.3 (3.7) Cash flow from Operating activities (A$m) H1 H2 200 Net interest paid (12.4) (9.8) (2.6) Tax paid (25.7) (28.0) 2.3 150 Net working capital and other movements (44.3) 3.4 (47.7) 165.0 70.3 Cas

  18. Slide 18: Working Capital and ROCE

    WORKING CAPITAL AND ROCE Working Capital Return on Capital Employed2 30 June 31 December A$m Dec 2018 June 2018 Net Working Capital Trade receivables 874.4 892.2 Inventory 564.6 535.1 Trade payables/other (1,156.2) (1,196.4) Total 282.8 230.8 16.7% 17.1% 16.7% 16.9% 16.3% 16.1% Cash conversion days1

  19. Slide 19: Net Debt, Gearing and Maturity Profile

    NET DEBT, GEARING AND MATURITY PROFILE Net Debt and Gearing Debt Maturity Profile – facility limits (A$m) 34.4% 600 35% 28.6% 28.0% 28.7% 500 30% 25% 400 Net debt (A$m) Gearing ratio 20% 300 552 400 15% 200 413 407 432 10% 293 100 5% 166 124 50 0 0% - Jun-17 Dec-17 Jun-18 Dec-18 FY19 FY20 FY21 FY22

  20. Slide 20: Earnings and Dividends Per Share

    EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings Per Share (A$ cents) Dividends Per Share (NZ$ cents) H1 H2 H1 H2 35.5 44.4 NZ$ cents per share 41.6 33.0 Cents per share 38.4 32.5 32.6 25.0 47.8 30.0 33.0 34.5 33.0 39.0 44.7 46.0 22.0 26.0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19  Unde

  21. Slide 21: Outlook

    OUTLOOK  EBOS Group has recorded a positive start for the first half of the financial year, with strong growth in Animal Care and subdued growth in Healthcare attributable to the general market environment and the impact of PBS reforms.  On the basis of our current trading performance, we expect t

  22. Slide 22: Supporting Information

    Supporting Information

  23. Slide 23: Reconciliation of Statutory and Underlying Results

    RECONCILIATION OF STATUTORY AND UNDERLYING RESULTS H1 FY19 H1 FY18 A$m EBITDA NPAT EBITDA NPAT Statutory result 122.6 67.0 126.3 69.9 Deduct Profit on sale of surplus property (2.9) (2.4) - - Add back Transition costs for major new warehouses and Restructuring costs 6.9 4.7 - - Transaction costs inc

  24. Slide 24: Segment Earnings and GOR Mix

    SEGMENT EARNINGS AND GOR MIX EBITDA by segment Gross Operating Revenue (GOR) FY18 A$m H1 FY19 H1 FY18 Var$ Var% 14% Underlying EBITDA 86% Healthcare 112.7 109.4 3.3 3.0% 14% Animal Care 24.3 22.2 2.1 9.6% Corporate (5.6) (5.3) (0.3) (5.6%) 6% 47% Group 131.4 126.3 5.1 4.0% 8% Statutory EBITDA FY18 G

  25. Slide 25: EBOS Strategic Approach

    EBOS STRATEGIC APPROACH Our Healthcare and Animal Care strategic focus is centred on Leading Market Disciplined Capital Investing for Growth Positions Management We aim to have positions of Two types of investments:  Cash generation to drive scale in the markets we scope for further operate in and

  26. Slide 26: 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. Debtor days Tr

  27. Slide 27: www.ebosgroup.com

    www.ebosgroup.com

EBOS Group — H1 FY19 Earnings Presentation on 6ix