Ebos Group Limited · NZX:EBO
Ebos — Shareholder Meeting (October 2022)
53 slides from Ebos's shareholder meeting presentation, Oct 27, 2022
Slide 1: EBOS Annual Meeting 2022
For personal use only 27 October 2022 NZX/ASX Code: EBO EBOS ANNUAL MEETING 2022 Please see attached the Chair's speech, CEO's speech and presentation materials for the Annual Meeting of shareholders to be held today. Authorised for lodgement with NZX and ASX by the Board of EBOS Group Limited For f
Slide 2: Chair's Speech
EBOS Group Limited 2022 Annual Meeting Chair’s Speech For personal use only It gives me great pleasure to report on the 2022 financial year and provide shareholders with an update on the latest activity occurring within EBOS at this the 100th Annual Meeting of EBOS Group Limited. One hundred years o
Slide 3: Chair's Speech (continued)
Faulding in 1978 and Martin O’Sullivan who has been with our Animal Care business for 41 years and skipped school to help his uncle who was a Masterpet sales representative and was subsequently offered a part time role at the company. The rest, as is said, is history. We also acknowledge Terry and R
Slide 4: Chair's Speech (continued)
A major consideration for the Board in determining the appropriate capital raising structure was to ensure fairness for all shareholders. The retail offer price was structured to provide participating shareholders with downside pricing For personal use only protection for the period between the anno
Slide 5: Chair's Speech (continued)
Discrimination and Harassment. We also commenced Cultural Awareness training in New Zealand after a successful rollout in Australia in FY21. We celebrated International Women’s Day and our ‘Be Well from Anywhere’ Program offered staff a range of activities to improve their wellbeing and keep them co
Slide 6: Chair's Speech (continued)
Following Mark Bloom’s appointment, the Board now consists of 43% female representation, including myself as Chair. Across the EBOS Executive Leadership Team, the female representation is currently 36%. Across the wider organisation, females make up nearly 57% of total employees, not including the L
Slide 7: CEO's Speech
EBOS Group Limited 2022 Annual Meeting CEO’s Speech Thank you, Liz, and good afternoon shareholders. For personal use only I am extremely pleased to be able to join everyone this afternoon in person. I am equally pleased to report on the performance of our company for the 2022 financial year and hon
Slide 8: CEO's Speech (continued)
• Underlying EBIT increased by 20.5% to $355 million; and • Underlying NPAT increased by 21.3% to $228 million. As Liz commented upon earlier as a result of the strong earnings growth we were able to increase total dividends to shareholders for FY22 to NZ 96.0 cents per share representing an increas
Slide 9: CEO's Speech: FY22 acquisitions
In FY22 we undertook five acquisitions all within our Healthcare segment as opportunities presented themselves for us to further build scale particularly in our medical devices and medical consumables businesses. The acquisition of Sentry Medical, an Australian distributor of medical consumable prod
Slide 10: CEO's Speech: segment performance
These investments are consistent with our strategy of investing for growth and will position the Group to continue expanding services to customers. I would now like to provide an overview of our segment performance. For personal use only Our Healthcare segment generated revenue growth of 17.1% and U
Slide 11: CEO's Speech: Animal Care and ESG
The completion of our new pet food manufacturing facility in Parkes, NSW has been very timely, in an environment where global supply chains have been challenged. Having our own local manufacturing capabilities provides us with a real competitive advantage in a market where supplier out-of-stocks hav
Slide 12: CEO's Speech: FY23 trading update
This reflects double-digit organic growth compared to the prior corresponding period as well as contribution from acquisitions completed in FY22. The effects of COVID-19 continue to impact our various businesses both positively and negatively. For personal use only Key positive impacts include: stro
Slide 13: 100th Annual Meeting
For personal use only 100TH ANNUAL MEETING 27 October 2022
Slide 14: 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 15: Welcome
For personal use only WELCOME 2022 Annual Meeting 3
Slide 16: Instructions for Online Meeting Attendees
For personal use only INSTRUCTIONS FOR ONLINE MEETING ATTENDEES
Slide 17: How to Participate in Meeting – Online (Q&A)
HOW TO PARTICIPATE IN MEETING – ONLINE (Q&A) For personal use only Shareholder & Proxyholder Q&A Participation Written Questions: If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime. Type your question into the field and pre
Slide 18: How to Participate in Meeting – Online (Voting)
HOW TO PARTICIPATE IN MEETING - ONLINE (VOTING) For personal use only Shareholder & Proxyholder Voting Once the voting has been opened, the resolutions and voting options will allow voting. To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen.
Slide 19: Introducing Our Board
For personal use only INTRODUCING OUR BOARD 2022 Annual Meeting 7
Slide 20: Board of Directors
BOARD OF DIRECTORS For personal use only Dr Tracey Batten Mark Bloom Stuart McGregor Independent Director Director Independent Director Joined 2021 Joined 2022 Joined 2013 Elizabeth Coutts Independent Chair of the Board Joined 2003 Appointed Chair 2019 Stuart McLauchlan Sarah Ottrey Peter Williams I
Slide 21: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM For personal use only Leonard Hansen Brett Barons Julie Dillon Matt Muscio Janelle Cain Chief Financial Officer CEO, Symbion CEO, Animal Care CEO, Medical Technology General Counsel John Cullity Chief Executive Officer David Lewis Andrea Bell Simon Bunde Jacinta McCarthy Ma
Slide 22: Agenda
AGENDA For personal use only 01 Presentation: Elizabeth Coutts, Chair 02 Presentation: John Cullity, CEO 03 Business of Meeting 04 Conclusion 10
Slide 23: Presentation: Elizabeth Coutts, Chair
For personal use only PRESENTATION ELIZABETH COUTTS CHAIR 2022 Annual Meeting 11
Slide 24: Our Trans-Tasman History
OUR TRANS-TASMAN HISTORY EBOS’ history stretches back 100 years in New Zealand and 175+ years in Australia. For personal use only 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 acqu
Slide 25: Our Strategy
OUR STRATEGY Our continued success is underpinned by our For personal use only adherence to a disciplined strategy of: • Continuing to protect, build or acquire leading market positions in a range of Healthcare and Animal Care sectors; • Focusing on generating strong operating cash flows to allow fu
Slide 26: LifeHealthcare Acquisition
LIFE HEALTHCARE ACQUISITION Consistent with our strategy of investing for growth, during FY22 we completed the $1.2 billion acquisition For personal use only of LifeHealthcare. • Substantially accelerates EBOS’ medical devices strategy and creates significant scale. • Enhances and diversifies EBOS’
Slide 27: Pet Care Kitchen
PET CARE KITCHEN Our Animal Care Journey. For personal use only • $82 million investment. • State-of-the-art, world class equipment. • Provides employment opportunities for over 60 people in Parkes, NSW. • Our Animal Care business commenced in 2011 with the acquisition of Masterpet and Lyppard, foll
Slide 28: COVID-19 Health and Safety
COVID-19 HEALTH AND SAFETY The indications are that we are over the worst of the pandemic but naturally we all remain vigilant and very For personal use only cautious. • Our businesses continue to follow COVID-19 protocols. • We continue to maintain prudent controls with the objective of keeping our
Slide 29: Our People
OUR PEOPLE We strive to build an engaged, diverse and talented workforce at EBOS. For personal use only • We implemented online Integrity Training which included training on our Code of Ethics and Discrimination and Harassment. • We also commenced Cultural Awareness training in New Zealand after a s
Slide 30: Sustainability and Community
SUSTAINABILITY AND COMMUNITY For personal use only 18 Note 1: Milestone dates exclude LifeHealthcare, Transmedic and Australian Biotechnologies.
Slide 31: Our Board
OUR BOARD For personal use only • Appointment of Mark Bloom as an independent director effective 16 September 2022. • Succession planning for directors remains a focus of the Board. • The Board will continue the process to ensure that a range of potential candidates with the necessary skills, divers
Slide 32: Diversity
DIVERSITY For personal use only Board The EBOS Board consists of 43% female representation including the Chair. Executive Leadership Team The EBOS ELT also has a 36% female representation whilst across the wider organisation females make up 57% of total employees1. Note 1: Not including LifeHealthca
Slide 33: Dividend
DIVIDEND For personal use only Final Dividend EBOS’ Directors announced a final dividend of NZ 49.0 cents per share, fully franked for Australian taxation purposes and 25% partially imputed for New Zealand taxation purposes. Full Year Taking the full-year dividend to NZ 96.0 cents per share, an incre
Slide 34: Presentation: John Cullity, CEO
For personal use only PRESENTATION JOHN CULLITY CEO 2022 Annual Meeting 22
Slide 35: FY22 Result Highlights
FY22 RESULT HIGHLIGHTS Our FY22 result was driven by strong organic growth in both our Healthcare and Animal Care segments as For personal use only well as acquisitions. • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and
Slide 36: FY22 Summary Results
FY22 SUMMARY RESULTS For personal use only Underlying Statutory A$m FY22 FY21 Var $ Var% FY22 FY21 Var $ Var% Revenue 10,734.1 9,202.9 1,531.2 16.6% 10,734.1 9,202.9 1,531.2 16.6% EBITDA 436.8 367.1 69.7 19.0% 405.8 363.6 42.5 11.7% EBIT 355.0 294.5 60.5 20.5% 323.9 290.7 33.3 11.5% Net Profit After
Slide 37: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance over the long term. For personal use only Underlying EBIT ($m) Underlying EPS (cents per share) DPS (NZ cents per share) 12.5% CAGR 10.8% CAGR 11.2% CAGR 355 129 89 96 295 115 78 263 94 101 69 72 218 230 86 90 59 63 185 204 7
Slide 38: Key Business Highlights
KEY BUSINESS HIGHLIGHTS Strong performances from both our Healthcare and Animal Care segments. For personal use only • Growth in Community Pharmacy was driven by customer and market share gains, increased sales of high value specialty medicines and the return of Pfizer products to the wholesale chan
Slide 39: Strategic Acquisitions
STRATEGIC ACQUISITIONS EBOS completed five acquisitions in FY22. For personal use only • Pioneer Medical Group is a New Zealand importer and distributor of spine and major joint implants primarily for orthopaedic and neurosurgery • Sentry Medical is an Australian distributor of medical consumable pr
Slide 40: Continued Investing for Growth
CONTINUED INVESTING FOR GROWTH For personal use only Project Location Status Segment / Division Construction and New pet food Parkes commissioning Animal Care manufacturing facility completed New medical consumables Sydney Institutional Completed distribution centres Perth Healthcare Expansion of ph
Slide 41: FY22 Segment Performance: Healthcare
FY22 SEGMENT PERFORMANCE For personal use only Healthcare • The performance of our Healthcare segment reflects A$m FY22 FY21 Var$ Var% strong organic growth supplemented by the completion of five acquisitions. Revenue 10,192.8 8,705.4 1,487.4 17.1% • Strong growth was generated across pharmacy Under
Slide 42: TerryWhite Chemmart
TERRYWHITE CHEMMART that’s real chemistry One of Australia’s leading community pharmacy networks with over 500 stores. For personal use only • TWC added 51 new network partners to its national network in FY22 growing the network to Network sales growth in FY223 over 500 stores. Total sales up 13.9%
Slide 43: FY22 Segment Performance: Animal Care
FY22 SEGMENT PERFORMANCE For personal use only Animal Care • Our Animal Care care segment benefitted from strong performances from our leading brands and businesses – Black Hawk, Vitapet and A$m FY22 FY21 Var$ Var% Lyppard. Revenue 541.3 497.5 43.8 8.8% • The pet market continues to experience stron
Slide 44: Environment, Social, Governance – In Action
ENVIRONMENT, SOCIAL, GOVERNANCE – IN ACTION Supporting our ESG program EBOS is committed to employee and social responsibility across New Zealand For personal use only and Australia. EMPLOYEES • Employee • Health, safety • Employee • New workplace engagement and wellbeing. Assistance policies. surve
Slide 45: FY23 Trading Update
FY23 TRADING UPDATE • EBOS has had a pleasing start to the FY23 financial year with strong revenue and earnings growth recorded across both our For personal use only Healthcare and Animal Care segments. • For the three months ended 30 September 2022, the Group recorded revenue of approximately $3.0
Slide 46: Business of Meeting
For personal use only BUSINESS OF MEETING 2022 Annual Meeting 34
Slide 47: Annual Report and Financial Statements
ITEM 1 For personal use only Annual Report and Financial Statements To consider and receive the annual report and the financial statements for the year ended 30 June 2022 and the audit report thereon. 35
Slide 48: Resolution 1: Election of Director – Mark Bloom
ITEM 2 For personal use only Resolution 1: Election of Director – Mark Bloom It is hereby resolved that Mark Bloom be elected as a director of the Company Election of Director – Mark Bloom Mr Bloom was appointed as a director by the Board to fill a casual vacancy effective 16 September 2022. Mr Bloo
Slide 49: Resolution 2: Re-election of Director – Stuart McLauchlan
ITEM 3 For personal use only Resolution 2: Re-election of Director – Stuart McLauchlan It is hereby resolved that Stuart McLauchlan be re-elected as a director of the Company Re-election of Director – Stuart McLauchlan Stuart McLauchlan (BCOM, FCA, CFInstD) was appointed to the EBOS Group Limited Bo
Slide 50: Resolution 3: Auditor's remuneration
ITEM 4 For personal use only Resolution 3: Auditor’s remuneration It is hereby resolved that the directors of the Company be authorised to fix the fees and expenses of Deloitte as auditor of the Company. Deloitte is automatically reappointed as the auditor of the Company under section 207T of the Co
Slide 51: Other Business
ITEM 5 For personal use only To consider any other business that can be properly brought before the meeting. 39
Slide 52: Conclusion
For personal use only CONCLUSION 2022 Annual Meeting 40
Slide 53: Thank You for Joining Us
For personal use only THANK YOU FOR JOINING US www.ebosgroup.com