Ebos Group Limited · NZX:EBO
Ebos — Shareholder Meeting (October 2021)
47 slides from Ebos's shareholder meeting presentation, Oct 19, 2021
Slide 1: EBOS Annual Meeting 2021
19 October 2021 NZX/ASX Code: EBO EBOS ANNUAL MEETING 2021 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 For further information, please contact: Martin K
Slide 2: Chair's speech
EBOS Group Limited 2021 Annual Meeting Chair’s speech It gives me great pleasure to report on our results for the 2021 financial year and provide shareholders with an update on the latest activity occurring within EBOS. As we continue to navigate uncertain times, EBOS remains focussed on our role as
Slide 3: Chair's speech: COVID-19 and ESG program
For those employees in Victoria, New South Wales and Auckland who have had to endure prolonged periods of lockdown, EBOS delivered to each of them a personal care package designed to lift their spirits and show our support for them. Over the last 12 months, EBOS has distributed over 2,200 care packs
Slide 4: Chair's speech: workplace policies and diversity
In 2021, EBOS was also proud to implement a series of new workplace policies, which provide our employees with guidance on acceptable workplace behaviour and outline our efforts to promote an inclusive and diverse workforce. The new policies cover diversity and inclusion, recruitment and selection a
Slide 5: Chair's speech: Board succession
Over the last 2 years the Board has welcomed three new directors and the Board size has been increased by two directors from 5 directors to 7 directors as part of our Board succession. The succession planning process remains a focus of the Board given there are directors with long tenures with EBOS
Slide 6: Chief Executive Officer's speech
EBOS Group Limited 2021 Annual Meeting Chief Executive Officer’s speech Thank you, Liz, and good afternoon ladies and gentleman. Although I am again unable to join you in person today due to travel restrictions, I am extremely pleased to be able to report to you on the performance of our company for
Slide 7: CEO's speech: segment results
respectively. This was driven by strong performances from our Community Pharmacy, TerryWhite Chemmart, Institutional Healthcare and Contract Logistics divisions. In New Zealand, Healthcare revenue increased to $1.8 billion and underlying EBIT increased to $38.9 million, representing 7.3% and 6.0% gr
Slide 8: CEO's speech: acquisitions
acquisitions, Pioneer Medical and Sentry Medical, and I am pleased to announce that we only recently completed on 30 September our third acquisition, MD Solutions. Sentry Medical is an Australian designer, marketer and distributor of medical consumables, including its own brands and agency brands, s
Slide 9: CEO's speech: current trading
In closing, I would like to provide some brief commentary on our current trading performance. EBOS has had a pleasing start to the FY22 financial year with strong revenue and earnings growth recorded across both our Healthcare and Animal Care segments. For the three months ended 30 September 2021, G
Slide 10: 99th Annual Meeting
99TH ANNUAL MEETING 19 October 2021
Slide 11: 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 12: Welcome
WELCOME 2021 Annual Meeting 3
Slide 13: Instructions for online meeting attendees
INSTRUCTIONS FOR ONLINE MEETING ATTENDEES
Slide 14: How to participate in virtual meetings (Q&A)
HOW TO PARTICIPATE IN VIRTUAL/HYBRID MEETINGS (Q&A) Shareholder & Proxyholder Q&A Participation Written Questions: Questions may be submitted ahead of the meeting. 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 yo
Slide 15: How to participate in virtual meetings (Voting)
HOW TO PARTICIPATE IN VIRTUAL/HYBRID MEETINGS (VOTING) 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. You can vote fo
Slide 16: Introducing our Board
INTRODUCING OUR BOARD 2021 Annual Meeting 7
Slide 17: Board of Directors
BOARD OF DIRECTORS Dr Tracey Batten Nick Dowling Stuart McGregor Independent Director Independent Director Independent Director Joined 2021 Joined 2020 Joined 2013 Elizabeth Coutts Independent Chair of the Board Joined 2003 Appointed Chair 2019 Stuart McLauchlan Sarah Ottrey Peter Williams Independe
Slide 18: Agenda
AGENDA 01 Welcome 05 Business of Meeting 02 Introducing our Board 06 Conclusion 03 Presentation: Elizabeth Coutts, Chair 04 Presentation: John Cullity, CEO 9
Slide 19: Presentation: Elizabeth Coutts, Chair
PRESENTATION ELIZABETH COUTTS CHAIR 2021 Annual Meeting 10
Slide 20: Our Strategy
OUR STRATEGY We continue to deliver for our customers and serve the communities where we operate, while also generating strong growth and shareholder returns. We remain focussed on our strategy of: • Continuing to protect, build or acquire leading market positions in a range of Healthcare and Animal
Slide 21: COVID-19 Health and Safety
COVID-19 HEALTH AND SAFETY The unpredictable nature of COVID-19 has required EBOS to be flexible in managing individual situations across our New Zealand and Australian operations. The impacts of lockdowns and other restrictions have put extra demands on the business and our people. We are very cons
Slide 22: Environment, Social and Governance
ENVIRONMENT, SOCIAL AND GOVERNANCE EBOS has launched its ESG program and published its inaugural Sustainability Report Our ESG program comprises five pillars 13
Slide 23: Employee Survey
EMPLOYEE SURVEY EBOS recorded positive results in its annual employee survey 14
Slide 24: Diversity
DIVERSITY Board The EBOS Board consists of 43% female representation including the Chair. Executive Leadership Team The EBOS ELT also has a 44% female representation1 whilst across the wider organisation females make up 59% of total employees. 15 Note 1: Julie Dillon was recently appointed as Chief
Slide 25: Dividend
DIVIDEND Final Dividend EBOS’ Director’s announced a final dividend, of NZ 46.0 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 88.5 cents per share, an increase of 14.2% on the
Slide 26: Presentation: John Cullity, CEO
PRESENTATION JOHN CULLITY CEO 2021 Annual Meeting 17
Slide 27: FY21 Summary Results
FY21 SUMMARY RESULTS Underlying Statutory A$m FY21 FY20 Var $ Var% FY21 FY20 Var $ Var% Revenue 9,202.9 8,765.5 437.3 5.0% 9,202.9 8,765.5 437.3 5.0% EBIT 294.5 263.1 31.4 11.9% 290.7 260.5 30.2 11.6% Net Profit After Tax 188.2 162.9 25.3 15.5% 185.3 162.5 22.8 14.0% Earnings per Share (cents) 114.9
Slide 28: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance through the cycle Underlying EBIT ($m) Underlying EPS (cents per share) DPS (NZ cents per share) 11.4% CAGR 10.6% CAGR 11.6% CAGR 295 115 89 263 78 101 230 94 69 72 218 86 90 204 63 185 77 59 160 66 47 138 57 41 FY14 FY15 FY1
Slide 29: Key Highlights
KEY HIGHLIGHTS Strong organic growth in Healthcare and Animal Care and investing for future growth • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), Institutional Healthcare and Contract Logistics businesses. • Animal Care’s Vitapet, Black Hawk and
Slide 30: FY21 Segment Performance: Healthcare
FY21 SEGMENT PERFORMANCE Healthcare • Revenue growth of 4.4% was driven by the performances of Community Pharmacy, TWC, Institutional Healthcare and A$m FY21 FY20 Var$ Var% Contract Logistics. Revenue 8,705.4 8,340.4 364.9 4.4% • Underlying EBIT growth of 11.4% is primarily from increased Underlying
Slide 31: TerryWhite Chemmart
TERRYWHITE CHEMMART that’s real chemistry One of Australia’s leading community pharmacy networks with over 465 stores • TWC added 36 net new pharmacies to its national network in FY21, continuing its record growth Network sales growth in FY21 in store numbers. Total sales up 5.3% • Together with rec
Slide 32: FY21 Segment Performance: Animal Care
FY21 SEGMENT PERFORMANCE Animal Care • Animal Care revenue increased by $72.4m (17.0%) and EBIT increased by $13.1m (26.4%) due to strong $m FY21 FY20 Var$ Var% performances by our key brands and businesses – Black Revenue 497.5 425.1 72.4 17.0% Hawk, Vitapet and Lyppard. EBIT 62.9 49.8 13.1 26.4% •
Slide 33: Pet Food Manufacturing Facility
PET FOOD MANUFACTURING FACILITY EBOS will shortly commence manufacturing Black Hawk through our new state of the art facility under construction in NSW, Australia • ~$80m investment in construction of a new pet food manufacturing facility in NSW, Australia. • Black Hawk has grown sales by more than
Slide 34: Continued Investing for Growth
CONTINUED INVESTING FOR GROWTH EBOS has recently completed three acquisitions that expand our medical devices distribution and medical consumables distribution businesses within our Institutional Healthcare division • Acquired 100% of Pioneer Medical Group, a New Zealand based importer and distribut
Slide 35: EBOS ESG in Action
EBOS ESG IN ACTION Supporting our ESG program EBOS is committed to employee and social responsibility across New Zealand and Australia EMPLOYEES ▪ Employee ▪ Health, ▪ Employee ▪ New workplace engagement safety and Assistance policies. survey. wellbeing. Program (EAP). ENVIRONMENT ▪ Over 11,200 ▪ Ov
Slide 36: 20+ Years of Growth and Returns
20+ YEARS OF GROWTH AND RETURNS EBOS has a long history of delivering profit, growth and returns for shareholders 300 40 TSR2 1 year 55% 35 250 5 years 19% 10 years 23% 30 200 20 years 20% Net profit after tax (A$m)1 25 Share price (NZ$) 150 20 15 100 10 50 5 - - FY01 FY02 FY03 FY04 FY05 FY06 FY07 F
Slide 37: FY22 Trading Update
FY22 TRADING UPDATE • EBOS has had a pleasing start to the FY22 financial year with strong revenue and earnings growth recorded across both our Healthcare and Animal Care segments. • For the three months ended 30 September 2021, Group revenue and earnings grew at just over 10% compared to the prior
Slide 38: Business of Meeting
BUSINESS OF MEETING 2021 Annual Meeting 29
Slide 39: Item 1: Annual Report and Financial Statements
ITEM 1 Annual Report and Financial Statements To consider and receive the annual report and the financial statements for the year ended 30 June 2021 and the audit report thereon. 30
Slide 40: Resolution 1: Election of Director – Dr Tracey Batten
ITEM 2 Resolution 1: Election of Director – Dr Tracey Batten It is hereby resolved that Dr Tracey Batten be elected as a director of the Company Election of Director – Dr Tracey Batten Dr Batten (MBBS, MHA, FRACMA, MBA, FAICD) was appointed as a director by the Board to fill a casual vacancy effecti
Slide 41: Resolution 2: Re-election of Director – Elizabeth Coutts
ITEM 3 Resolution 2: Re-election of Director – Elizabeth Coutts It is hereby resolved that Elizabeth Coutts be re-elected as a director of the Company. Re-election of Director – Elizabeth Coutts Ms Coutts (ONZM, BMS, FCA) was appointed as a director on 3 July 2003. She is Chair of the Remuneration C
Slide 42: Resolution 3: Re-election of Director – Peter Williams
ITEM 4 Resolution 3: Re-election of Director – Peter Williams It is hereby resolved that Peter Williams be re-elected as a director of the Company. Re-election of Director – Peter Williams Mr Williams was appointed as a director on 5 July 2013. Mr Williams is also a director of Green Cross Health Li
Slide 43: Resolution 4: Non-executive director remuneration
ITEM 5 Resolution 4: Non-executive director remuneration It is hereby 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 $155,000 from $1,410,000 per annum to $1,565,000 per annum with effect from 1 July
Slide 44: Resolution 5: Auditor's remuneration
ITEM 6 Resolution 5: 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 Companies Act 1993. Pursu
Slide 45: Item 7: Other business
ITEM 7 To consider any other business that can be properly brought before the meeting. 36
Slide 46: Conclusion
CONCLUSION 2021 Annual Meeting 37
Slide 47: Thank you for joining us
Thank you for joining us. www.ebosgroup.com