Ebos Group Limited · NZX:EBO
Ebos — H1 FY2022 Earnings Presentation
29 slides from Ebos's earnings presentation, Feb 16, 2022
Slide 1: Investor Presentation: Interim Financial Results
INVESTOR PRESENTATION Interim Financial Results Half year ended 31 December 2021 16 February 2022
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 FY22 Summary Results
H1 FY22 SUMMARY RESULTS EBOS’ strong performance has continued with another record half year result $m Underlying Var Statutory Var Revenue 5,251 12.8% 5,251 12.8% EBITDA 207.7 12.8% 199.9 9.7% EBIT 169.1 14.4% 161.3 10.6% NPAT 109.3 15.8% 101.9 9.7% EPS (cents) 66.6 15.2% 61.4 8.0% DPS (NZ cents) 4
Slide 5: Key Highlights
KEY HIGHLIGHTS Continued strong organic growth in Healthcare and Animal Care and investing for future growth Healthcare • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and Contract Logistics businesses. Key highlights incl
Slide 6: Business and Segment Performance
BUSINESS AND SEGMENT PERFORMANCE Our Healthcare and Animal Care businesses contributed positively to strong earnings growth GOR bridge ($m) Underlying EBIT bridge ($m) H1 FY22 growth 10.5% 25.4% 37.6% 17.2% 17.7% 17.0% 14.9% (44.5%) 14.4% vs. pcp +4.6 (5.2) +11.7 +16.5 +32.0 +21.9 575.0 +26.2 169.7
Slide 7: Continued Investing for Growth
CONTINUED INVESTING FOR GROWTH EBOS continued its strategy of driving future growth through investing in acquisitions and its operational infrastructure Acquisitions Infrastructure investments Pet Care Manufacturing Facility NSW EBOS Healthcare Distribution Centres Sydney and Perth Contract Logistic
Slide 8: LifeHealthcare Acquisition Update
LIFEHEALTHCARE ACQUISITION UPDATE The LifeHealthcare acquisition remains on track for completion prior to the end of FY22 • On 9 December 2021, EBOS announced an agreement to acquire LifeHealthcare for $1,167m, representing an enterprise value of approximately $1,275m on a 100% basis. • LifeHealthca
Slide 9: Group Performance
GROUP PERFORMANCE $m H1 FY22 H1 FY21 Var Var% • Revenue of $5,250.9m, an increase of $597.6m or 12.8%: Underlying Results o Healthcare up 12.9%. Revenue 5,250.9 4,653.3 597.6 12.8% o Animal Care up 12.4%. GOR 575.0 488.6 86.4 17.7% EBITDA 207.7 184.1 23.5 12.8% • Underlying EBIT of $169.1m, an incre
Slide 10: Healthcare Results
HEALTHCARE RESULTS 10
Slide 11: Healthcare Segment
HEALTHCARE SEGMENT Healthcare segment Underlying EBIT growth of 17.0%, with strong performances in both Australia and New Zealand • Revenue growth of 12.9% was driven by the performances $m H1 FY22 H1 FY21 Var$ Var% of Community Pharmacy, TWC, Institutional Healthcare and Revenue 4,976.9 4,409.5 567
Slide 12: Community Pharmacy
COMMUNITY PHARMACY • Revenue increased by $416.9m (15.2%) and GOR increased by $26.2m (10.5%), benefitting from: $m H1 FY22 H1 FY21 Var$ Var% Revenue 3,152.8 2,735.9 416.9 15.2% o Customer and market share growth; GOR 276.5 250.4 26.2 10.5% o Strong performance from our community pharmacy retail GOR
Slide 13: TerryWhite Chemmart
TerryWhite Chemmart that’s real chemistry • TWC added 16 net new network partners to its national network in H1 FY22, continuing its impressive growth in pharmacy numbers and growing the network to over 480 stores. Network sales growth in H1 FY22 • A strong store growth pipeline supports expected co
Slide 14: Institutional Healthcare
INSTITUTIONAL HEALTHCARE • Institutional Healthcare revenue increased by $113.7m (8.4%) $m H1 FY22 H1 FY21 Var$ Var% and GOR increased by $32.0m (25.4%), largely from increases in sales of new specialty medicines combined with strong organic Revenue 1,474.3 1,360.6 113.7 8.4% and inorganic growth in
Slide 15: Contract Logistics
CONTRACT LOGISTICS • Contract Logistics revenue increased by $52.7m (13.3%) and GOR by $16.5m (37.6%), attributable to growth in Australia due $m H1 FY22 H1 FY21 Var$ Var% to an increase in market share, as well as growth in New Revenue 450.0 397.3 52.7 13.3% Zealand with increased demand for protec
Slide 16: Animal Care Results
ANIMAL CARE RESULTS 16
Slide 17: Animal Care Segment
ANIMAL CARE SEGMENT Animal Care has continued to capitalise on strong pet market conditions • Animal Care revenue increased by $30.2m (12.4%) and $m H1 FY22 H1 FY21 Var$ Var% EBIT increased by $4.6m (14.9%) due to strong performances from our leading brands and businesses Revenue 274.0 243.8 30.2 12
Slide 18: Continued Product and Brand Growth
CONTINUED PRODUCT AND BRAND GROWTH Our key brands and Lyppard demonstrated solid sales growth H1 FY22 Categories Sales growth drivers sales growth1 • Strong consumer support for our products. • Continued investment in marketing to drive increased brand awareness and Black Hawk 19.6% retail support.
Slide 19: Financial Information and Trading Update
FINANCIAL INFORMATION AND TRADING UPDATE 19
Slide 20: Cash Flow
CASH FLOW $m H1 FY22 H1 FY21 Var$ Var% Cash from Operating activities ($m) Statutory EBITDA 199.9 182.2 17.7 9.7% 298.3 Net interest paid (13.8) (14.1) 0.3 229.2 Tax paid (66.8) (41.2) (25.6) Net working capital and other movements (12.5) (28.2) 15.7 199.6 162.1 Cash from Operating activities 106.8
Slide 21: Working Capital and ROCE
WORKING CAPITAL AND ROCE Working Capital Return on Capital Employed (ROCE) $m H1 FY22 FY21 H1 FY21 Net Working Capital Trade receivables 1,216.3 1,098.9 1,049.7 Inventory 874.4 784.8 759.4 18.2% 18.0% 17.5% 17.1% Trade payables/other (1,825.6) (1,622.3) (1,469.8) Total 265.1 261.3 339.2 Cash convers
Slide 22: Net Debt and Maturity Profile
NET DEBT AND MATURITY PROFILE Underlying Net Debt and Underlying Cash and Debt Maturity Profile2 Net Debt : EBITDA ratio1 1.41x 1.28x 1.11x 572 1.00x 494 0.85x 293 250 539 402 133 392 327 309 271 250 75 160 33 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Cash on FY22 FY23 FY24 FY25 FY26 Hand Underlying Net De
Slide 23: Earnings and Dividends per Share
EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings per Share (A$ cents) Dividends per Share (NZ$ cents) H1 H2 114.9 H1 H2 100.8 90.4 94.2 88.5 57.2 77.5 68.5 71.5 49.5 44.4 46.4 46.0 40.0 35.5 37.0 57.8 66.6 46.0 47.8 51.3 47.0 34.5 37.5 42.5 33.0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
Slide 24: FY22 Trading Update
FY22 TRADING UPDATE • EBOS is pleased with the strong earnings growth in the first half of FY22 and we continue to be comfortable with current trading conditions however, it is uncertain what the ongoing disruptions caused by COVID-19 variants will have on EBOS’ trading performance. • Capital expend
Slide 25: Supporting Information
SUPPORTING INFORMATION CONNEC#ING ‘OMMUNITIES, { CARE
Slide 26: Reconciliation of Statutory to Underlying Results
RECONCILIATION OF STATUTORY TO UNDERLYING RESULTS H1 FY22 H1 FY21 $m EBITDA EBIT PBT NPAT EBITDA EBIT PBT NPAT Statutory result 199.9 161.3 147.5 101.9 182.2 145.9 131.9 92.9 Transaction costs incurred on M&A 7.8 7.8 7.8 7.4 1.9 1.9 1.9 1.5 Underlying result1 207.7 169.1 155.3 109.3 184.1 147.8 133.
Slide 27: Segment EBITDA and EBIT Reconciliation
SEGMENT EBITDA AND EBIT RECONCILIATION EBITDA EBIT $m H1 FY22 H1 FY21 Var$ Var% H1 FY22 H1 FY21 Var$ Var% Healthcare Statutory 177.5 159.4 18.0 11.3% 142.9 126.9 16.0 12.6% add One-off items 7.8 1.9 5.9 7.8 1.9 5.9 Underlying 185.2 161.3 23.9 14.8% 150.7 128.8 21.9 17.0% Animal Care Statutory 38.8 3
Slide 28: 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 29: www.ebosgroup.com
mer BOS GROUP LIMITED www.ebosgroup.com