Ebos Group Limited · NZX:EBO
Ebos — Shareholder Meeting (October 2023)
55 slides from Ebos's shareholder meeting presentation, Oct 24, 2023
Slide 1: EBOS Group Limited 2023 Annual Meeting
24 October 2023 NZX/ASX Code: EBO EBOS GROUP LIMITED 2023 ANNUAL MEETING Please see attached the Chair's speech, CEO's speech and presentation materials for the Annual Meeting of shareholders to be held today. For personal use only Authorised for lodgement with NZX and ASX by the Board of EBOS Group
Slide 2: Chair's Speech
EBOS Group Limited 2023 Annual Meeting Chair’s Speech It gives me great pleasure to report on our results for the 2023 financial year. In the year where we celebrated EBOS’ centenary we continued our strong momentum delivering another record result and for the first time exceeding $12 billion in rev
Slide 3: Chair's Speech (continued)
I am pleased to report that since that time the facility is now operating 24 hours a day, 5 days a week and we have recently launched several new Black Hawk products manufactured at this facility which John will expand upon in his presentation. We also continue to invest in operational infrastucture
Slide 4: Chair's Speech: safety and emissions
Workplace safety remains a key priority for EBOS under the guidance of our Group Safety Committee, led by John. The committee concentrates on driving consistent safety standards, fostering knowledge exchange across business units, and promoting stronger safety awareness throughout the organisation.
Slide 5: Chair's Speech: board and dividend
You will hear from Julie shortly as she seeks election from shareholders. Following Julie’s appointment, the Board now consists of 50/50 female and male representation, including myself as Chair. This ratio will be maintained following the resignations of Sarah and Stuart. Across the EBOS Executive
Slide 6: CEO's Speech
EBOS Group Limited 2023 Annual Meeting CEO’s Speech Kia Ora, and thank you, Liz I am pleased to report on the performance of our company for the 2023 financial year and as we review the outstanding results of the Group, I would like to reiterate the Chair’s sentiments in acknowledging the exceptiona
Slide 7: CEO's Speech: key financial headlines
The key financial headlines of our full year results were: • Revenue increased by 14.0% to over $12 billion; • Underlying EBITDA of $582.0 million, up by 33.2%; • Underlying NPAT of $281.8 million, represented 23.0% growth; • Healthcare’s Underlying EBITDA was up by 32.7% including the benefit of ac
Slide 8: CEO's Speech: Healthcare segment
As noted earlier our Healthcare segment growth was driven by our leading positions and contributions from our Community Pharmacy, TerryWhite Chemmart (TWC), Institutional Healthcare and Contract Logistics divisions. Each of our divisions in the Healthcare segment recorded strong growth, with Institu
Slide 9: CEO's Speech: Animal Care
their respective segments. The growth in Animates, our New Zealand pet care retail joint venture, also contributed to the segments performance. Consistent with our Animal Care growth strategy, and a key benefit of having direct control of the manufacturing process at our Parkes facility, several new
Slide 10: CEO's Speech: replacing Chemist Warehouse earnings
EBOS has a clear strategy to replace the Chemist Warehouse earnings through four key areas: • First, growth in the base business through the strategies that I outlined on the previous page; • Second, we see new revenue opportunities in Community Pharmacy that are now available due to the changed mar
Slide 11: CEO's Speech: year to date trading
and related products across New Zealand and Australia and underlines the commitment of our people in times of crisis. And as I mentioned at the start of my presentation further details on our ESG Program are contained in our 2023 Sustainability Report which is available on our website. In closing, I
Slide 12: Annual Meeting October 2023
For personal use only ANNUAL MEETING 24 October 2023
Slide 13: 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 For personal use only supplied in summary form and is therefore not necessarily complete, and, to the extent permitted by law, no repres
Slide 14: Welcome
For personal use only WELCOME 2023 Annual Meeting 3
Slide 15: Instructions for Online Meeting Attendees
For personal use only INSTRUCTIONS FOR ONLINE MEETING ATTENDEES
Slide 16: How to Participate in Meeting – Online (Q&A)
HOW TO PARTICIPATE IN MEETING – ONLINE (Q&A) Shareholder & Proxyholder Q&A Participation For personal use only 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 17: How to Participate in Meeting – Online (Voting)
HOW TO PARTICIPATE IN MEETING - ONLINE (VOTING) Shareholder & Proxyholder Voting For personal use only 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 18: Introducing Our Board
For personal use only INTRODUCING OUR BOARD 2023 Annual Meeting 7
Slide 19: Board of Directors
BOARD OF DIRECTORS For personal use only Elizabeth Coutts Dr Tracey Batten Mark Bloom Stuart McGregor Independent Director Independent Director Independent Director Independent Chair of the Board Joined 2021 Joined 2022 Joined 2013 Joined 2003 Appointed Chair 2019 Stuart McLauchlan Sarah Ottrey Juli
Slide 20: Agenda
AGENDA For personal use only 01 Presentation: Elizabeth Coutts, Chair 02 Presentation: John Cullity, CEO 03 Business of Meeting 04 Conclusion 9
Slide 21: Presentation: Elizabeth Coutts, Chair
For personal use only PRESENTATION ELIZABETH COUTTS CHAIR 2023 Annual Meeting 10
Slide 22: 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 23: Investing for Growth – Acquisition
INVESTING FOR GROWTH – ACQUISITION Consistent with our strategy of investing for growth, EBOS has recently completed the acquisition of Superior Pet Food Co. For personal use only Superior Pet Food Co. acquisition • Superior is a leading manufacturer and supplier of premium dog rolls based in New Ze
Slide 24: Investing for Growth – Pet Care Kitchen
INVESTING FOR GROWTH - PET CARE KITCHEN Market leading positions in Animal Care For personal use only • Expanding customer base • Local employment • Now operates 24 hours a day, 5 days a week • New product development manufactured at Pet Care Kitchen • Healthy Benefits range launched Sept ‘23 • Site
Slide 25: Investing for Growth – Distribution Network
INVESTING FOR GROWTH – DISTRIBUTION NETWORK EBOS continues to invest in operational infrastructure to support our growth For personal use only Healthcare distribution network investments Investment Location Status Division Auckland Complete New contract logistics distribution Contract Logistics cent
Slide 26: Diversification of the Group
DIVERSIFICATION OF THE GROUP We have successfully diversified the Group towards higher growth, higher margin segments For personal use only FY19 GOR FY23 GOR (prior to Chemist Warehouse (pro forma excluding Chemist Australia contract) Warehouse Australia contract) < 50% of GOR from divisions > 60% o
Slide 27: Our People and Safety
OUR PEOPLE AND SAFETY We strive to build an engaged, diverse and talented workforce at EBOS. For personal use only • Almost 60% of eligible employees now participate in our employee share plan. • We enhanced online Integrity Training in FY23 to support our Diversity and Inclusion policy, continuing
Slide 28: Sustainability and Community
SUSTAINABILITY AND COMMUNITY For personal use only 17
Slide 29: Board Renewal
BOARD RENEWAL For personal use only • Under the Board renewal process, Sarah Ottrey and Stuart McGregor will retire as directors effective from the 2023 Annual Meeting. • In May 2023, Julie Tay joined the EBOS Board and will seek election today from Shareholders. 18
Slide 30: Diversity
DIVERSITY For personal use only Board The EBOS Board consists of 50% female representation including the Chair. Executive Leadership Team The EBOS ELT also has a 27%1 female representation whilst across the wider organisation females make up 40% of other management roles2, and 52% of total full time
Slide 31: Dividend
DIVIDEND For personal use only Final Dividend EBOS’ Directors announced a final FY23 dividend of NZ 57.0 cents per share. The final dividend was fully franked for Australian taxation purposes and imputed to 25% for New Zealand taxation purposes. Full Year Taking the full-year dividend to NZ 110.0 cen
Slide 32: Presentation: John Cullity, CEO
For personal use only PRESENTATION JOHN CULLITY CEO 2023 Annual Meeting 21
Slide 33: FY23 Result Highlights
FY23 RESULT HIGHLIGHTS EBOS has achieved another record result driven by organic growth and prior year acquisitions, reflecting the For personal use only defensive and diversified nature of our Group earnings • Double-digit earnings growth. • Healthcare’s strong performance was driven by our Communi
Slide 34: FY23 Summary Results
FY23 SUMMARY RESULTS For personal use only Underlying Statutory A$m FY23 FY22 Var $ Var% FY23 FY22 Var $ Var% Revenue 12,237.4 10,734.1 1,503.3 14.0% 12,237.4 10,734.1 1,503.3 14.0% EBITDA 582.0 436.8 145.2 33.2% 568.8 405.8 163.0 40.2% EBIT 484.2 356.4 127.7 35.8% 444.0 323.9 120.1 37.1% Net Profit
Slide 35: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance over the long term For personal use only Underlying EBITDA ($m) Underlying EPS (cents per share) DPS (NZ$ cents per share) 15.5% CAGR1 11.2% CAGR1 11.6% CAGR1 582 110 148 96 437 89 130 78 367 115 69 72 336 101 63 90 94 59 250
Slide 36: Key Business Highlights
KEY BUSINESS HIGHLIGHTS Strong performances from both our Healthcare and Animal Care segments. For personal use only • Community Pharmacy growth benefited from customer growth and maintaining share leadership, as well as increased sales of ethical, over-the-counter and high-value medicines. • Our In
Slide 37: Investing for Growth – Acquisition and Investment
INVESTING FOR GROWTH – ACQUISITION AND INVESTMENT Consistent with our strategy of investing for growth, EBOS has recently completed the acquisition of Superior Pet Food Co. and invested to enhance our distribution network For personal use only Superior Pet Food Co. acquisition • Superior is a leadin
Slide 38: FY23 Segment Performance: Healthcare
FY23 SEGMENT PERFORMANCE Healthcare For personal use only • Strong performances across our Community Pharmacy, TWC, Institutional A$m FY23 FY22 Var$ Var% Healthcare and Contract Logistics businesses. Revenue 11,676.6 10,192.8 1,483.8 14.6% • The Healthcare segment generated positive organic growth i
Slide 39: TerryWhite Chemmart
TERRYWHITE CHEMMART • TerryWhite Chemmart added 40 new stores to its national network in FY23, continuing its impressive growth to over 550 stores. For personal use only • Network sales continued to grow strongly to more than $2 billion. • The TWC catalogue and promotional program continued to deliv
Slide 40: FY23 Segment Performance: Animal Care
FY23 SEGMENT PERFORMANCE Animal Care $m FY23 FY22 Var Var% • Animal Care revenue increased by $19.5m (3.6%) and Underlying EBITDA For personal use only increased by $19.2m (24.0%) due to strong performances from our leading Revenue 560.8 541.3 19.5 3.6% brands and businesses (Black Hawk, Vitapet and
Slide 41: Well Positioned for the Future
WELL POSITIONED FOR THE FUTURE Group earnings have grown strongly across all divisions excluding the Chemist Warehouse Australia contract • As announced on 6 June 2023, the Chemist Warehouse Australia contract will not be renewed beyond its expiry date of 30 June 2024. For personal use only • EBOS g
Slide 42: A Leading Community Pharmacy Division
A LEADING COMMUNITY PHARMACY DIVISION The Community Pharmacy division remains a leading pharmacy wholesaler across Australia and New Zealand and is the franchisor for TerryWhite Chemmart, one of Australia’s largest community pharmacy networks For personal use only Growth strategy Community Pharmacy
Slide 43: Diverse and Well Established Growth Strategies
DIVERSE AND WELL ESTABLISHED GROWTH STRATEGIES EBOS has multiple organic and inorganic growth drivers across the Group that are well established Division Organic Capex M&A For personal use only Community • Refer previous page Pharmacy Institutional • Further growing our medical technology business •
Slide 44: Pathway to Replacing Chemist Warehouse Earnings
PATHWAY TO REPLACING CHEMIST WAREHOUSE EARNINGS EBOS has a clear strategy to replace earnings from the Chemist Warehouse Australia contract For personal use only M&A Cost initiatives Chemist Warehouse New Community Australia Pharmacy revenue contract opportunities earnings FY24 Base business EBITDA
Slide 45: 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 and Australia. For personal use only EMPLOYEES • Employee • Health, safety • Employee • Diversity, engagement and wellbeing. Assistance Inclusion and sur
Slide 46: FY24 Trading Update
FY24 TRADING UPDATE • EBOS has had a pleasing start to the FY24 financial year with high single digit earnings growth recorded. For personal use only • YTD growth for the three months ending 30 September 2023 compared to the prior corresponding period was as follows 1: Normalised YTD growth vs. pcp,
Slide 47: Business of Meeting
For personal use only BUSINESS OF MEETING 2023 Annual Meeting 36
Slide 48: Annual Report and Financial Statements
ITEM 1 Annual Report and Financial Statements For personal use only To consider and receive the annual report and the financial statements for the year ended 30 June 2023 and the audit report thereon. 37
Slide 49: Resolution – Election of Director
ITEM 2 Resolution 1 – Election of Director For personal use only It is resolved that Julie Tay be elected as a director of the Company. BA, MBA (Curtin) Ms Julie Tay was appointed to the EBOS Group Limited Board in May 2023. Residing in Singapore, Julie is currently a director of Sonova, a global he
Slide 50: Resolution – Non-executive director remuneration
ITEM 3 Resolution 2 – Non-executive director remuneration For personal use only It is resolved that, pursuant to NZX Listing Rule 2.11.1 and ASX Listing Rule 10.17, the total remuneration for non-executive directors be increased by $78,250 from $1,565,000 per annum to $1,643,250 per annum with effec
Slide 51: Resolution – Auditor's remuneration
ITEM 4 Resolution 3 – Auditor’s remuneration For personal use only It is resolved that the directors of the Company be authorised to fix the fees and expenses of Deloitte as auditor of the Company. After conducting the audit tender process, which invited audit proposals from the four major accountin
Slide 52: Other Business
ITEM 5 To consider any other business that can be properly brought For personal use only before the meeting. 41
Slide 53: Farewell and Thank You
FAREWELL AND THANK YOU For personal use only Sarah Ottrey Stuart McGregor Independent Director Independent Director Joined 2006 Joined 2013 42
Slide 54: Conclusion
For personal use only CONCLUSION 2023 Annual Meeting 43
Slide 55: Thank You for Joining Us
For personal use only THANK YOU FOR JOINING US www.ebosgroup.com