Ebos Group Limited · NZX:EBO
Ebos — Investor Day (November 2022)
69 slides from Ebos's investor day presentation, Nov 16, 2022
Slide 1: Investor Day Presentation
16 November 2022 NZX/ASX Code: EBO For personal use only Investor Day Presentation EBOS Group Limited will be holding an Investor Day in Melbourne today. Please see attached the Investor Day presentation materials. Authorised for lodgement with NZX and ASX by the Board of Directors of EBOS Group Lim
Slide 2: Investor Day 2022
For personal use only INVESTOR DAY 2022 16 November 2022
Slide 3: Disclaimer
DISCLAIMER For personal use only 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 repres
Slide 4: Introduction
For personal use only INTRODUCTION Martin Krauskopf Executive General Manager, Strategy and M&A 3
Slide 5: EBOS Chair and Executive Leadership Team
EBOS CHAIR AND EXECUTIVE LEADERSHIP TEAM For personal use only Liz Coutts John Cullity Chair Group CEO 19 years at EBOS 13 years at EBOS Leonard Hansen Brett Barons Julie Dillon Matt Muscio David Lewis Group CFO CEO, Symbion CEO, Animal Care CEO, Devices EGM 11 years at EBOS 20 years at EBOS 1 year
Slide 6: Agenda
AGENDA For personal use only Topic 01 Introduction 02 EBOS’ 100 Year History 03 Group Overview and Strategy 04 Healthcare (excl. TWC and Medical Devices) 05 TerryWhite Chemmart 06 Medical Devices 07 Animal Care 08 Sustainability 09 People and Culture 5
Slide 7: EBOS' Year History
For personal use only EBOS’ 100 YEAR HISTORY Elizabeth Coutts Chair 6
Slide 8: Our Trans-Tasman History
OUR TRANS-TASMAN HISTORY For personal use only EBOS’ history stretches back 100 years in New Zealand and 175+ years in Australia 1922 1960 2007 2011 Early Brothers Early Bros Dental & EBOS acquires EBOS expands into Animal Trading Co. is Surgical Supplies is Pharmacy Retailing Care through the acqui
Slide 9: Group Overview and Strategy
For personal use only GROUP OVERVIEW AND STRATEGY John Cullity Group CEO 8
Slide 10: EBOS Snapshot
EBOS SNAPSHOT For personal use only EBOS is a leading diversified Healthcare and Animal Care group Snapshot Businesses Segments3 ~A$7bn Community Pharmacy Animal Care 13% market capitalisation (incl. TerryWhite Chemmart) Healthcare Top 10 NZX / Top 80 ASX1 Institutional Healthcare A$10.7bn (incl. Me
Slide 11: Investment Themes
INVESTMENT THEMES For personal use only EBOS has had a strong track record of growth, yield and shareholder returns Defensive growth sectors Scale and leading positions Diversified group Proven value creation strategy Multiple growth drivers Strong financial track record for over 20 years 10
Slide 12: Leading Positions in Attractive Segments
LEADING POSITIONS IN ATTRACTIVE SEGMENTS For personal use only We operate leading businesses in defensive growth segments EBOS selected segment positions across ANZ Australian sector growth5 (3 year CAGR) Growing and ageing Growing pet population and #1 #1 population humanisation of pets hospital ph
Slide 13: Diversified Group
DIVERSIFIED GROUP For personal use only EBOS is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products. It is also a leading marketer and distributor of recognised animal care brands Healthcare Animal Care Community Pharm
Slide 14: Broad Based Performance
BROAD BASED PERFORMANCE For personal use only All of our divisions have contributed to growth GOR (A$m) Community Pharmacy Institutional Healthcare Contract Logistics Animal Care 7.9% CAGR 17.7% CAGR 21.3% CAGR 9.2% CAGR 569 419 378 197 129 157 111 60 FY18 FY22 FY18 FY22 FY18 FY22 FY18 FY22 13
Slide 15: Value Creation Strategy
VALUE CREATION STRATEGY For personal use only Our businesses generate organic growth and significant cash flow, which funds our strategy of investing for growth, as well as dividends for shareholders ORGANIC GROWTH AND DISCIPLINED CASH FLOW INVESTING FOR GROWTH DIVIDENDS MANAGEMENT MAXIMISING OPPORT
Slide 16: Multiple Growth Drivers
MULTIPLE GROWTH DRIVERS For personal use only EBOS leverages multiple growth drivers across its businesses Key growth businesses Key growth drivers Pharmacy Wholesale TerryWhite Chemmart Investing for growth Organic growth Medical Consumables Medical Devices Distribution Distribution Contract Logist
Slide 17: Strategic Acquisitions
STRATEGIC ACQUISITIONS For personal use only Acquisitions diversify and grow our earnings and are value accretive to shareholders ~20 acquisitions since 2014 Acquisition strategy Targets: established, profitable, well managed and growing businesses 1 Size: bolt-on through to larger opportunities
Slide 18: Southeast Asia Expansion Opportunity
SOUTHEAST ASIA EXPANSION OPPORTUNITY For personal use only The LifeHealthcare acquisition established our presence in Southeast Asia and opens other potential opportunities in the region Market Growth Strategy Healthcare expenditure1 Healthcare expenditure growth (3 year CAGR)3 Add scale in establis
Slide 19: EBOS Over Time
EBOS OVER TIME For personal use only Over the last 4 years, EBOS has grown significantly and become more diversified by segment and geography FY2018 FY2022 Δ Market cap.1 A$2.6bn A$6.6bn +154% increase Revenue A$7.6bn A$10.7bn +41% increase NPAT A$149.6m A$228.2m +53% increase DPS (NZ cents) NZ 68.5
Slide 20: Strong Financial Track Record
STRONG FINANCIAL TRACK RECORD For personal use only EBOS has delivered consistent financial performance through the cycle Underlying EBIT1 Underlying EPS1 Total shareholder returns2 (A$m) (A$ cents per share) 12.5% CAGR 10.7% CAGR 355 263 295 94 101 115 129 24% 230 86 90 185 204 218 66 77 1 year 138
Slide 21: Healthcare (excl. TWC and Medical Devices)
For personal use only HEALTHCARE (EXCL. TWC AND MEDICAL DEVICES) Brett Barons CEO, Symbion 20
Slide 22: Introduction to Healthcare
INTRODUCTION TO HEALTHCARE For personal use only Healthcare Animal Care Community Pharmacy Institutional Healthcare Contract Logistics Pharmacy Wholesale Medical Devices Contract Logistics Pet Brands Primary businesses TerryWhite Chemmart Hospital Medicines Wholesale Vet Wholesale Other Pharmacy Med
Slide 23: Healthcare's Purpose, Vision and Values
HEALTHCARE’S PURPOSE, VISION AND VALUES For personal use only What guides us every day 22
Slide 24: Industry Trends
INDUSTRY TRENDS For personal use only The growing and ageing population continues to provide a structural tailwind Projected Australian population by age (m)1 Prescription drug usage by age (years)2 38.7 35.6 54% Over 65 age group 32.2 8.8 36% growing at ~2x the 28.7 7.7 rate of under 65 10% 25.7 6.
Slide 25: EBOS Is a Critical Part of the ANZ Healthcare System
EBOS IS A CRITICAL PART OF THE ANZ HEALTHCARE SYSTEM For personal use only We make more than 12 million deliveries a year to a wide range of healthcare providers and end markets Suppliers Distribution End customers 1,100+ 37 3,800+ medicine suppliers sites across ANZ pharmacies 400+ 12.8m+ 1,800+ co
Slide 26: Healthcare's Distribution Network
HEALTHCARE’S DISTRIBUTION NETWORK For personal use only Our extensive trans-Tasman distribution network is central to our success Key features 200,000+ aggregate sqm 600+ million units p.a. distributed ~A$160 million capex investment last 5 years Hospital / Pharmacy Consumables Contract Logistics 25
Slide 27: Continued Investing for Growth
CONTINUED INVESTING FOR GROWTH For personal use only We continue to expand and invest in our operational infrastructure to support our growth Project Location Status Segment / Division New medical consumables Sydney Completed Medical Consumables distribution centres Perth 2022 Expansion of pharmaceu
Slide 28: Community Pharmacy Strategy
COMMUNITY PHARMACY STRATEGY For personal use only Leading provider in Australia and New Zealand Key success factors Strategic priorities 1 2 3 Grow above market via alignment to large and fast 1 growing pharmacy brands and banner groups Leading segment Best in class Highest service share and superio
Slide 29: Hospital Medicines & Medical Consumables Strategy
HOSPITAL MEDICINES & MEDICAL CONSUMABLES STRATEGY For personal use only Trusted partner to public and private institutions Key success factors Strategic priorities 1 2 3 1 Exposure to specialist medicines, a higher growth market Leading segment Strength and tenure Broad product share and superior of
Slide 30: Contract Logistics Strategy
CONTRACT LOGISTICS STRATEGY For personal use only Specialist pre-wholesale and contract logistics GMP grade provider Key success factors Strategic priorities 1 2 3 1 Grow market share in Australia Healthcare focused Highest quality Leverage long-term 3PL provider accredited facilities NZ relationshi
Slide 31: Wrap Up
WRAP UP For personal use only A trusted partner every day and particularly in times of need We pride ourselves on our innate ability to deliver on outcomes, no matter the challenge 30
Slide 32: TerryWhite Chemmart
For personal use only TERRYWHITE CHEMMART David Lewis Executive General Manager 31
Slide 33: Introduction to TerryWhite Chemmart
INTRODUCTION TO TERRYWHITE CHEMMART For personal use only Healthcare Animal Care Community Pharmacy Institutional Healthcare Contract Logistics Pharmacy Wholesale Medical Devices Contract Logistics Pet Brands Primary businesses TerryWhite Chemmart Hospital Medicines Wholesale Vet Wholesale Other Pha
Slide 34: TerryWhite Chemmart Overview
TERRYWHITE CHEMMART OVERVIEW For personal use only TerryWhite Chemmart is one of Australia’s largest community pharmacy networks with 500+ stores TWC overview TWC store network1 • TerryWhite Chemists was established in 1959 by Terry and Rhonda White • The TerryWhite Chemmart brand was created by the
Slide 35: The TerryWhite Chemmart Difference
THE TERRYWHITE CHEMMART DIFFERENCE For personal use only TerryWhite Chemmart is differentiated from its competitors with a compelling health proposition Strong marketing spend Vaccination leadership Health and education 1 2 3 Driving health focused categories Strong private label and generics offeri
Slide 36: A Growing Pharmacy Network
A GROWING PHARMACY NETWORK For personal use only TerryWhite Chemmart has added more than 100 stores over the last three years and the network is generating LFL sales growth above industry average Store network expansion Robust like-for-like sales growth 500+ 11.9% ~400 6.0% 3.6% FY19 Aug 2022 FY20 F
Slide 37: Market Opportunity
MARKET OPPORTUNITY For personal use only The Australian pharmacy landscape remains highly fragmented with opportunities for growth Australian pharmacies (# of stores)1 Trend towards banner groups Source of new TWC stores Buying power benefitting from scale Conversions from 1 independents ~2,100 ~2,7
Slide 38: TerryWhite Chemmart Strategy
TERRYWHITE CHEMMART STRATEGY For personal use only TerryWhite Chemmart is Australia’s leading health advice-oriented community pharmacy network Key success factors Strategic priorities 1 2 3 Continue to grow the network and participate in 1 consolidation Strength in Focus on prescriptions, OTC High
Slide 39: Wrap Up
WRAP UP For personal use only We are optimistic about the future, with TerryWhite Chemmart to continue playing an important role in retail pharmacy 1 2 3 Biologics represent a new Pharmacies will play a wider role opportunity for the industry and Continued consolidation in delivering health services
Slide 40: Medical Devices
For personal use only MEDICAL DEVICES Matt Muscio CEO, Devices 39
Slide 41: Introduction to Medical Devices
INTRODUCTION TO MEDICAL DEVICES For personal use only Healthcare Animal Care Community Pharmacy Institutional Healthcare Contract Logistics Pharmacy Wholesale Medical Devices Contract Logistics Pet Brands Primary businesses TerryWhite Chemmart Hospital Medicines Wholesale Vet Wholesale Other Pharmac
Slide 42: Evolution of the Medical Technology Business
EVOLUTION OF THE MEDICAL TECHNOLOGY BUSINESS For personal use only EBOS entered into medical technology in 2019 and in three years, has become a leading independent distributor across Australia, New Zealand and Southeast Asia 2019 2020 2021 2021 2022 Enters medical Acquired Cryomed, an Acquired Pion
Slide 43: Integration of Medical Technology Division
INTEGRATION OF MEDICAL TECHNOLOGY DIVISION For personal use only The EBOS Medical Technology Division consists of ANZ Distribution & Allograft and SE Asia Distribution ANZ Distribution & Allografts SE Asia Distribution 42
Slide 44: EBOS' Medical Technology Platform
EBOS’ MEDICAL TECHNOLOGY PLATFORM For personal use only The combined business includes manufacturing and distribution of medical technologies across Asia Pacific with significant presence in a number of therapeutic areas ANZ Distribution & Allografts SE Asia Distribution ANZ Distribution Allografts
Slide 45: Distribution Businesses Operate a Full-Service Model
DISTRIBUTION BUSINESSES OPERATE A FULL-SERVICE MODEL For personal use only Market access team can coordinate regulatory approval and reimbursement Dedicated professional education team on behalf of manufacturers facilitates world class training for health Quality assurance & comprehensive care
Slide 46: OEM Representation
OEM REPRESENTATION For personal use only We provide a valuable service to global leading medical technology companies and have an expert salesforce that are strongly aligned to achieve growth We represent leading medical technology companies Why OEMs use a distributor vs direct • Established channel
Slide 47: Segment Size and Landscape
SEGMENT SIZE AND LANDSCAPE For personal use only We operate in a A$20bn+ segment across ANZ and Southeast Asia, with a robust growth outlook and opportunities for consolidation Australia and New Zealand South East Asia Segment size A$9 billion+ A$12 billion+ Segment Mid single digit Mid to high sing
Slide 48: Industry Trends
INDUSTRY TRENDS For personal use only Private hospital prostheses procedures Number of patients in NSW on No. of procedures by age group2 in Australia1 waiting list ready for surgery3 3.0% CAGR ~65% +12% over the last 5 years of procedures are for those aged 50+ increase compared to pre-COVID-19 3.5
Slide 49: EBOS Medical Technology Strategy
EBOS MEDICAL TECHNOLOGY STRATEGY For personal use only We use collective knowledge and our innovative approach to solve problems for our patients by tailoring solutions through our trusted network Key success factors Strategic priorities 1 2 3 4 Build a connected and engaged regional distribution pl
Slide 50: Our Vision
For personal use only Our vision Creating life-changing solutions for patients across Asia Pacific that drive positive outcomes in their lives 49
Slide 51: Animal Care
For personal use only ANIMAL CARE Julie Dillon CEO, Animal Care 50
Slide 52: Introduction to Animal Care
INTRODUCTION TO ANIMAL CARE For personal use only Healthcare Animal Care Community Pharmacy Institutional Healthcare Contract Logistics Pharmacy Wholesale Medical Devices Distribution Contract Logistics Pet Brands Primary businesses TerryWhite Chemmart Hospital Medicines Wholesale Vet Wholesale Othe
Slide 53: Animal Care Overview
ANIMAL CARE OVERVIEW For personal use only Animal Care has leading pet brands, is the #1 vet wholesaler in Australia and has a 50% stake in the #1 pet specialty retailer in New Zealand Pet Brands Vet Wholesale Pet Retail Leading pet brands for specialty pet #1 pet specialty retail store in New Descr
Slide 54: Industry Trends
INDUSTRY TRENDS For personal use only The industry has seen considerable growth, driven by increased pet ownership Pet population in Australia has …with the proportion of pet owning …primarily driven by growth in dog grown (millions) households increasing… and cat ownership 2019 2021 +6.7% # of dogs
Slide 55: Animal Care Strategy
ANIMAL CARE STRATEGY For personal use only Providing quality nutrition and wellbeing for pets through trusted brands, and excellent service to veterinary clinics Key success factors Strategic priorities 1 2 3 1 Building strong brands: Black Hawk and Vitapet Scale in attractive Partner of choice Trus
Slide 56: Pet Care Kitchen
PET CARE KITCHEN For personal use only Our new manufacturing facility is pioneering world class technology to create the highest quality kibble in Australia 1 2 Strategically located in Parkes, NSW ~A$80m 2022 invested year completed 24 / 5 45% ingredients hours / days a sourced within week 200km ra
Slide 57: Pet Care Kitchen: At the Forefront of Our ESG Strategy
PET CARE KITCHEN For personal use only At the forefront of our ESG Strategy • Locally sourced: 45% of the ingredients used in production are sourced within 200km of the property, reducing transport miles. • Partnering with local farmers: ensures ingredients used meet Black Hawk’s exacting specificat
Slide 58: Wrap-Up
WRAP-UP For personal use only Attractive sector and brands with strong potential Leading brands with Efficient and trusted partner a strong track record to the veterinary profession Well positioned to deliver innovation Significant growth potential in with new world class manufacturing facility new
Slide 59: Sustainability
For personal use only SUSTAINABILITY Simon Bunde Executive General Manager, Strategic Operations, ESG and Innovation 58
Slide 60: Five Pillars and Key Stakeholder Groups
FIVE PILLARS AND KEY STAKEHOLDER GROUPS For personal use only 59
Slide 61: Carbon Neutrality
CARBON NEUTRALITY For personal use only We have commenced our journey to carbon neutrality with clear targets for the immediate future Carbon neutral targets Placeholder image FY23 Scope 1 emissions FY27 Scope 1 and 2 emissions Scope 1, 2 and 3 building FY28 emissions 60
Slide 62: Sustainable Packaging
SUSTAINABLE PACKAGING For personal use only Commencing 2025 or earlier, we plan to convert all packaging for our brands into reusable, recyclable, or compostable materials Sustainable packaging development journey 1 Understand position and opportunities 2 Identify and engage the right people 3 Revie
Slide 63: Ethical Sourcing
ETHICAL SOURCING For personal use only The goal of the Group’s strategy on ethical sourcing is to engage with suppliers who are aligned with our corporate values on protecting human rights and the environment Focus areas of our Ethical Sourcing Framework Compliance with labour laws, Modern Slavery C
Slide 64: Other Initiatives
OTHER INITIATIVES For personal use only Our ESG ambitions are founded on stakeholder feedback and are being embedded in our strategy and processes Governance and Climate- Safety, Diversity and Data Security related Financial Disclosures Inclusion We are committed to protecting the Continue to develo
Slide 65: People and Culture
For personal use only PEOPLE AND CULTURE Jacinta McCarthy Group General Manager, Human Resources 64
Slide 66: EBOS People Profile
EBOS PEOPLE PROFILE For personal use only Building an engaged, diverse and talented workforce is key to our success Age1 3,600 Location1 permanent Contract1 19% <30 years employees1 73% Australia 51% 30 – 49 years 90% permanent 30% ≥50 years 27% New Zealand 79% full-time 10% temporary <1% undisclose
Slide 67: People & Culture Strategy
PEOPLE & CULTURE STRATEGY For personal use only Talent & Capability Performance & Reward Culture & Engagement Safety & Wellness Attract & build people Strive for high performance & Listen to our people and build Continue to reduce the capability to equip our leaders reward behaviours and success a d
Slide 68: Workplace Health and Safety
WORKPLACE HEALTH AND SAFETY For personal use only Work Health and Safety framework Key highlights FY22 Invest in WHS leadership and People accountability and culture ↆ16% ↆ46% Deliver meaningful and engaging lost time total recordable Wellbeing injuries injuries wellbeing programs Risk Reduce exposu
Slide 69: www.ebosgroup.com
For personal use only www.ebosgroup.com