Ebos Group Limited · NZX:EBO
Ebos — H1 FY24 Earnings Presentation
33 slides from Ebos's earnings presentation, Feb 21, 2024
Slide 1: Investor Presentation: Interim Financial Results
INVESTOR PRESENTATION Interim Financial Results Half year ended 31 December 2023 21 February 2024
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 3
Slide 4: H1 FY24 Summary Results
H1 FY24 SUMMARY RESULTS EBOS has achieved strong growth reflecting the benefits of its diversified portfolio $m Underlying1 Var Statutory Var Revenue 6,582.5 r 7.1% 6,582.5 r 7.1% EBITDA 313.2 r 8.3% 303.1 r 4.8% EBIT 259.9 r 8.5% 236.7 r 4.7% Net Profit After Tax 152.4 r 7.6% 136.2 r 3.0% EPS (cent
Slide 5: Key Highlights
KEY HIGHLIGHTS Continued strong earnings growth in Healthcare and Animal Care and investing for future growth Healthcare • EBOS’ Healthcare segment benefitted from its leading market positions and had solid contributions from each of the EBITDA up 8.0%1 Community Pharmacy, TerryWhite Chemmart (TWC)
Slide 6: Division and Segment Performance
DIVISION AND SEGMENT PERFORMANCE Both the Healthcare and Animal Care segments recorded strong earnings growth GOR bridge ($m) Underlying EBITDA bridge ($m) H1 FY24 H1 FY24 growth . .0 .0 . . growth .0 . . . vs. pcp vs. pcp (1. ) . . (0. ) 1 . 0. 1 . 1 . 1 . . . H1 F Community Inst. Contract Animal H
Slide 7: Group Performance
GROUP PERFORMANCE $m H1 FY24 H1 FY23 Var Var% • Revenue of $6,582.5m, an increase of $436.8m or 7.1%: 1 Underlying Results o Healthcare up 7.5%; Revenue 6,582.5 6,145.7 436.8 7.1% GOR 813.2 778.3 35.0 4.5% o Animal Care down 1.7%. EBITDA 313.2 289.2 24.0 8.3% • Underlying EBITDA of $313.2m, an incre
Slide 8: Group Performance (cont.)
GROUP PERFORMANCE (CONT.) The Group generated strong Underlying EBITDA growth of approximately 10% when normalised to exclude the Chemist Warehouse Australia contract or wholesale sales of COVID-19 anti-viral products • As previously disclosed, we will no longer service the Chemist Warehouse Austral
Slide 9: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance over the long term Underlying EBITDA ($m) Underlying EPS (cents per share) DPS (NZ$ cents per share) 15.6% CAGR1 10.7% CAGR1 11.2% CAGR1 110 1 1 0 11 101 0 0 0 1 1 F 1 F 1 F 1 F 1 F 1 F 0 F 1 F F H1 F 1 F 1 F 1 F 1 F 1 F 0 F
Slide 10: Investing for Growth – Transmedic
INVESTING FOR GROWTH – TRANSMEDIC Consistent with our strategy of investing for growth, EBOS has increased its shareholding in Transmedic to 90% Transmedic shareholding increased from 51% to 90% EBOS MedTech’s Asia Pacific presence provides a unique offering to global OEMs • Transmedic is one of the
Slide 11: Investing for Growth – Distribution Network
INVESTING FOR GROWTH – DISTRIBUTION NETWORK EBOS continues to invest in operational infrastructure to support our growth Investment Location Status Division Completed 2023 Auckland (fully operational) New contract logistics Contract Logistics distribution centres Completed 2023 (expected to be Sydne
Slide 12: Near-Term Growth Strategy
NEAR-TERM GROWTH STRATEGY We are making strong progress on the key focus areas of our near-term strategy to increase earnings M&A Cost reduction initiatives New Community Pharmacy revenue opportunities Base business growth EBOS’ earnings Positive traction with Cost reduction Superior Pet Food Co. ex
Slide 13: Sustainability Snapshot
SUSTAINABILITY SNAPSHOT Notes 13 1. Achievement of net zero Scope 1 emissions relates to our Australian and New Zealand operations.
Slide 14: Healthcare Results
HEALTHCARE RESULTS 14
Slide 15: Healthcare Segment
HEALTHCARE SEGMENT The Healthcare segment delivered positive earnings growth notwithstanding the current macroeconomic environment • Healthcare’s strong performance was driven by our leading $m H1 FY24 H1 FY23 Var Var% market positions, organic growth and continued focus on Revenue 6,296.3 5,854.6 4
Slide 16: Community Pharmacy
COMMUNITY PHARMACY • Revenue increased by $181.0m (4.9%) and GOR increased by $m H1 FY24 H1 FY23 Var Var% $15.9m (4.9%), benefitting from: Revenue 3,912.4 3,731.4 181.0 4.9% o Strong performance from our community pharmacy retail GOR 339.9 324.0 15.9 4.9% brands, including TWC; and GOR% 8.69% 8.68%
Slide 17: Institutional Healthcare
INSTITUTIONAL HEALTHCARE • Institutional Healthcare revenue increased by $205.8m (11.7%) $m H1 FY24 H1 FY23 Var Var% and GOR increased by $17.4m (6.0%) largely due to growth in Symbion Hospitals and our Medical Technology businesses. Revenue 1,965.8 1,760.0 205.8 11.7% GOR 304.4 287.1 17.4 6.0% • Sy
Slide 18: Contract Logistics
CONTRACT LOGISTICS • Contract Logistics GOR decreased by $1.5m (-2.0%): $m H1 FY24 H1 FY23 Var Var% 1 o Australia grew through new and existing principals, GOR 74.7 76.2 (1.5) (2.0%) including the benefit from Government initiatives to improve the depth of medicines inventory cover onshore. GOR ($m)
Slide 19: Animal Care Results
ANIMAL CARE RESULTS 19
Slide 20: Animal Care Segment
ANIMAL CARE SEGMENT The Animal Care segment demonstrated strong resilience with Underlying EBITDA growth driven through the performance of higher margin businesses and contribution from the Superior acquisition $m H1 FY24 H1 FY23 Var Var% • The Animal Care segment demonstrated strong resilience, as
Slide 21: Product and Brand Update
PRODUCT AND BRAND UPDATE Demonstrating the continued strength of our brands, Black Hawk and Vitapet continued to maintain share leadership in their respective segments H1 FY24 Sales Businesses Sales drivers Growth • Resilient performance from our branded businesses, Black Hawk and Black Hawk Vitapet
Slide 22: New Product Development Update
NEW PRODUCT DEVELOPMENT UPDATE Consistent with our Animal Care growth strategy, several new product development launches have commenced or are planned for FY24 including our Black Hawk Healthy Benefits product range and the relaunch and extension of our Black Hawk cat food range Black Hawk Healthy B
Slide 23: Financial Information and Outlook
FINANCIAL INFORMATION AND OUTLOOK 23
Slide 24: Cash Flow
CASH FLOW $m H1 FY24 H1 FY23 Var$ Var% Underlying Cash from Operating Activities ($m)1 Underlying EBITDA 313.2 289.2 24.0 8.3% Interest paid (44.8) (33.4) (11.4) H1 H Tax (paid) (46.5) (78.5) 32.0 Net working capital and other (106.4) (16.2) (90.2) . movements Underlying Cash from 01. 1 . 115.6 161.
Slide 25: Working Capital and ROCE
WORKING CAPITAL AND ROCE Working Capital Return on Capital Employed (ROCE) $m H1 FY24 FY23 H1 FY23 1 Net Working Capital Trade receivables 1,416.3 1,383.2 1,394.1 Inventory 1,334.3 1,234.2 1,190.2 1 .1 1 .1 Trade payables/other (2,277.5) (2,263.4) (2,182.7) 1 . Total 473.0 354.1 401.6 Cash conversio
Slide 26: Net Debt and Maturity Profile
NET DEBT AND MATURITY PROFILE Net Debt and Net Debt : EBITDA ratio1 Cash and Debt Maturity Profile 1. x .0 x 1,01 1. x 1. x 1. x 1,0 00 0 1 0 1 1 0 0 1 ec 1 un ec un ec Cash on F F F F F et ebt H1 et ebt : EBIT A Ratio H1 Hand rawn Amount Committed and available facilities • Net Debt of $1,088m at D
Slide 27: Earnings and Dividends per Share
EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings per Share (cents) Dividends per Share (NZ cents) H1 H H1 H . .0 .0 .0 . .0 . 0.0 . . .0 .0 . . . .0 1. . F 0 F 1 F F H1 F F 0 F 1 F F H1 F • Underlying EPS of 79.5 cents representing growth of 6.6%. • Interim dividend of NZ 57.0 cents per share de
Slide 28: Outlook
OUTLOOK • EBOS is pleased with the strong earnings growth in the first half of FY24 and is successfully managing its EBITDA margin in the current environment. • January 2024 trading conditions were positive with the Underlying EBITDA growth rates, including and excluding the Chemist Warehouse Austra
Slide 29: Supporting Information
SUPPORTING INFORMATION Uittin ae
Slide 30: Reconciliation of Statutory to Underlying Results
RECONCILIATION OF STATUTORY TO UNDERLYING RESULTS H1 FY24 H1 FY23 $m EBITDA EBIT PBT NPAT EBITDA EBIT PBT NPAT Statutory result 303.1 236.7 192.0 136.2 289.2 226.0 192.6 132.2 LifeHealthcare PPA amortisation (non-cash) - 13.1 13.1 9.2 - 13.5 13.5 9.4 M&A transaction costs 10.1 10.1 10.1 7.1 - - - -
Slide 31: Segment EBITDA and EBIT Reconciliation
SEGMENT EBITDA AND EBIT RECONCILIATION EBITDA EBIT $m H1 FY24 H1 FY23 Var$ Var% H1 FY24 H1 FY23 Var$ Var% Healthcare Statutory 273.6 255.0 18.6 7.3% 213.2 197.7 15.5 7.8% add LifeHealthcare PPA amortisation (non-cash) - - - 13.1 13.5 (0.4) add Net transaction costs incurred on M&A 1.9 - 1.9 1.9 - 1.
Slide 32: 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 33: www.ebosgroup.com
mer BOS GROUP LIMITED www.ebosgroup.com