Slide 1: Investor Presentation FY18 Financial Results
For personal use only INVESTOR PRESENTATION FY18 FINANCIAL RESULTS 23 August 2018
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 For personal use only reliabil
Slide 3: Group Financial Results
For personal use only Group Financial Results
Slide 4: FY18 Summary Results
FY18 SUMMARY RESULTS For personal use only Revenue EBITDA NPAT $7.6b $272.4m $149.6m -0.2% +16.2% +12.2% (-2.5% Constant FX) (+10.3% Constant FX and (+5.5% Constant FX and Underlying) Underlying) ROCE EPS Dividends per share 15.8% 98.5c 68.5c -0.6% +12.1% +8.7% (+5.4% Constant FX and Underlying) FY1
Slide 5: Strategic Highlights
STRATEGIC HIGHLIGHTS Investments and New Business Capital Management & Leadership For personal use only Investments of $33.6m made in FY18 Capex of $63.2m in FY18 14% investment in ASX listed, MedAdvisor Ltd A new 25,000m2 Contract Logistics facility in (October 2017). Australia’s leading digita
Slide 6: FY18 Financial Performance
FY18 FINANCIAL PERFORMANCE Constant FX Revenue decrease was driven by NZ$m For personal use only FY18 FY17 Var Var lower hepatitis C medicine sales Statutory Results (which were $364m lower than Revenue 7,609.5 7,625.9 (0.2%) (2.5%) FY17, constant FX). Gross Operating Revenue 856.6 745.3 14.9% 12.
Slide 7: Healthcare Results
For personal use only Healthcare Results
Slide 8: Healthcare Segment
HEALTHCARE SEGMENT Strong trading performance across Australia and New Zealand For personal use only Constant FX EBITDA increase of $27.1m or 10.4% NZ$m FY18 FY17 Var Var (constant FX): Healthcare Australia up 11.9% assisted by the full Revenue 7,197.6 7,202.7 (0.1%) (2.3%) year contributions of H
Slide 9: Community Pharmacy
COMMUNITY PHARMACY For personal use only Total Pharmacy Revenue declined by 1.6% Reported Constant FX (constant FX), attributable to lower hepatitis C NZ$m FY18 FY17 FY17 Var% medicine sales (-$147m) and PBS reforms, Revenue 4,215.9 4,181.9 4,283.6 (1.6%) partially offset by a full year contributi
Slide 10: Chemist Warehouse Announcement
CHEMIST WAREHOUSE ANNOUNCEMENT For personal use only In July 2018, EBOS was notified it won the tender to act as the exclusive third party distributor of pharmaceutical products to more than 400 Chemist Warehouse and My Chemist stores in Australia. EBOS expects to enter into a five-year supply a
Slide 11: Institutional Healthcare
INSTITUTIONAL HEALTHCARE For personal use only With the acquisition of HPS in June 2017, Reported Constant FX EBOS continues to expand its position as an NZ$m FY18 FY17 FY17 Var% essential partner to industry across a number Revenue 2,451.2 2,484.5 2,544.5 (3.7%) of areas, primarily in hospitals,
Slide 12: Contract Logistics
CONTRACT LOGISTICS For personal use only Reported Constant FX GOR growth achieved in both New Zealand and Australia from key principals. Revenue NZ$m FY18 FY17 FY17 Var% declined to last year with some principals Revenue 482.4 484.9 487.9 (1.1%) switching to a consignment 3PL model. GOR 65.0 60.5
Slide 13: Consumer Products
CONSUMER PRODUCTS For personal use only Revenue and GOR were assisted by Red Seal Reported Constant FX sales growth (primarily in the toothpaste, teas NZ$m FY18 FY17 FY17 Var% and supplements categories) and the Revenue 118.3 105.4 106.5 11.1% acquisition of Gran’s Remedy in March 2018. GOR 46.2 4
Slide 14: Animal Care Results
For personal use only Animal Care Results
Slide 15: Animal Care Segment
ANIMAL CARE SEGMENT A strong EBITDA performance reflecting the pivot to our own key brands For personal use only Constant FX EBITDA increase of $5.1m or 9.0% NZ$m FY18 FY17 Var Var (constant currency): Animal Care Black Hawk sales growth in Australia Revenue 411.9 423.2 (2.7%) (5.1%) of 23%. EBITD
Slide 16: Animal Care Segment: Revenue and Black Hawk
ANIMAL CARE SEGMENT FY18 Revenue declined $11.3m or 5.1% (constant FX) due to: For personal use only Ceasing low margin wholesale sales to a major Australian retail chain. Revenue in FY18 was impacted by $26 million. In July 2017, Black Hawk was launched in New Zealand and consequently we ceased
Slide 17: Group Financial Information & Outlook
For personal use only Group Financial Information & Outlook
Slide 18: Cash Flow
CASH FLOW Record Operating Cash Flow performance For personal use only Record operating cash flow of NZ$m FY18 FY17 Var$ Var% $176.2m demonstrates the EBITDA 272.4 234.4 38.0 16.2% Group’s disciplined focus on cash flow management. Net interest paid (22.7) (19.0) (3.7) Tax paid (65.3) (65.4) 0.1
Slide 19: Working Capital and ROCE
WORKING CAPITAL AND ROCE Working Capital Return on Capital Employed For personal use only NZ$m June 2018 June 2017 Net Working Capital Trade receivables 971.8 1,015.1 Inventory 582.9 572.0 Trade payables/other (1,303.3) (1,353.7) Total 251.4 233.4 16.4% 16.4% 15.8% 1 Cash conversion days 13.7% Debto
Slide 20: Net Debt, Gearing and Maturity Profile
NET DEBT, GEARING AND MATURITY PROFILE Net Debt and Gearing Debt Maturity Profile – current facility limits (NZ$m) For personal use only 500 27.4% 27.9% 30% 450 24.4% 23.2% 25% 400 436 350 18.5% 20% Net debt (NZ$m) Gearing ratio 300 250 15% 471 200 435 316 317 10% 319 150 248 100 5% 50 100 133 54 0
Slide 21: Earnings and Dividends Per Share
EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings Per Share Dividends Per Share For personal use only H1 H2 35.5 33.0 32.5 Cents per share Cents per share 98.5 25.0 20.5 84.0 91.3 62.8 70.8 30.0 33.0 22.0 26.0 20.5 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Underlying EPS growth of 7.8%
Slide 22: Outlook
OUTLOOK For personal use only EBOS Group has recorded a strong financial performance in FY18 and the Company is confident of further profit growth into FY19 on an underlying, constant currency basis. A performance update will be provided to shareholders at the Annual Meeting on 16 October 2018.
Slide 23: Supporting Information
For personal use only Supporting Information
Slide 24: Foreign Exchange
FOREIGN EXCHANGE Depreciation of the average NZD:AUD cross-rate by 2.7c to 0.918 positively impacted EBITDA by $5.4m in FY18 For personal use only Revenue and EBITDA by currency 82% of the Group’s earnings AUD Average AUD NZ Group (EBITDA) are generated in Operations NZD: AUD Operations Operations
Slide 25: Segment Earnings and GOR Mix
SEGMENT EARNINGS AND GOR MIX EBITDA by segment Gross Operating Revenue (GOR) FY18 For personal use only Constant FX NZ$m FY18 FY17 Var Var 14% Healthcare 235.9 208.8 13.0% 10.4% 86% Animal Care 49.8 44.7 11.3% 9.0% Corporate (13.2) (19.1) 30.5% 32.1% 14% Group 272.4 234.4 16.2% 13.6% 5% 48% Transact
Slide 26: EBOS Strategic Approach
EBOS STRATEGIC APPROACH Our Healthcare and Animal Care strategic focus is centred on For personal use only Leading Market Disciplined Capital Investing for Growth Positions Management Two types of investments: We aim to have positions of Cash generation to drive scale in the markets we operate sco
Slide 27: Years Post Symbion Deal
5 YEARS POST SYMBION DEAL We continue to deliver results whilst reinvesting for growth For personal use only Investments made (NZ$m) Results achieved 5 Year Underlying EBITDA 5 Year Underlying EPS $569m over NZ$m cents per share FY18 272.4 98.5 last 5 years FY18 FY17 241.4 FY17 91.3 5 Year 5 Year FY
Slide 28: EBOS Group Historical EBITDA & Margin
EBOS GROUP HISTORICAL EBITDA & MARGIN For personal use only 300.0 3.58% 3.60% 3.40% 250.0 3.24% 3.17% 3.18% 3.20% 3.05% 200.0 3.00% EBITDA (NZ$m) 150.0 2.80% EBITDA % 272.4 241.4 225.5 2.60% 100.0 196.7 175.4 2.40% 50.0 2.20% - 2.00% FY14 FY15 FY16 FY17 ¹ FY18 All data shown above is on a Reported b
Slide 29: Healthcare Historical EBITDA & Margin
HEALTHCARE HISTORICAL EBITDA & MARGIN For personal use only 250.0 3.28% 3.50% 2.99% 2.92% 2.90% 2.82% 3.00% 200.0 2.50% 150.0 2.00% EBITDA (NZ$m) EBITDA % 235.9 208.8 1.50% 100.0 195.0 170.2 153.1 1.00% 50.0 0.50% - 0.00% FY14 FY15 FY16 FY17 FY18 All data shown above is on a Reported basis 29
Slide 30: Animal Care Historical EBITDA & Margin
ANIMAL CARE HISTORICAL EBITDA & MARGIN For personal use only 60.0 14.00% 12.08% 12.00% 50.0 10.57% 9.89% 10.19% 10.00% 40.0 8.68% 8.00% EBITDA (NZ$m) 30.0 EBITDA % 49.8 6.00% 42.3 44.7 20.0 37.1 4.00% 29.4 10.0 2.00% - 0.00% FY14 FY15 FY16 FY17 FY18 All data shown above is on a Reported basis. 30
Slide 31: 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: For personal use only Term Definition Actual results Results translated into NZ dollars at the applicable actual monthly exchange rates ruling in each period.
Slide 32: www.ebosgroup.com
For personal use only www.ebosgroup.com