Ebos Group Limited · NZX:EBO
Ebos — Macquarie Australia Conference 2023
30 slides from Ebos's conference presentation, May 3, 2023
Slide 1: Macquarie Australia Conference Presentation
3 May 2023 NZX/ASX Code: EBO Macquarie Australia Conference Presentation Please see attached a copy of a presentation to be delivered at the Macquarie Australia Conference today. For personal use only For further information please contact: Martin Krauskopf Executive General Manager, Strategy and M&
Slide 2: Investor Presentation - Macquarie Australia Conference
For personal use only INVESTOR PRESENTATION MACQUARIE AUSTRALIA CONFERENCE 3 May 2023
Slide 3: 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 4: Group Overview
For personal use only 3 GROUP OVERVIEW
Slide 5: EBOS Snapshot
EBOS SNAPSHOT EBOS Group is a leading diversified Healthcare and Animal Care group For personal use only Snapshot: Businesses: Segments3: Animal Care ~NZ$9bn Community Pharmacy 13% market capitalisation (incl. TerryWhite Chemmart) Healthcare Ranked ~5th / ~65th on NZX / ASX1 Institutional Healthcare
Slide 6: Index Inclusion
INDEX INCLUSION Over the last 3 years EBOS has grown significantly and is now included in key indices in Australia, New Zealand and globally For personal use only 50.00 ASX All Ords NZX10 MSCI World ASX300 45.00 40.00 Share price NZ$ 35.00 30.00 25.00 20.00 15.00 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 J
Slide 7: Investment Themes
INVESTMENT THEMES EBOS has had a strong track record of growth, yield and shareholder returns For personal use only Defensive growth sectors Scale and leading positions Diversified group Proven value creation strategy Multiple growth drivers Strong financial track record 6
Slide 8: 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 Trading Co. is Surgical Supplies is Pharmacy Retailing Animal Care through the foun
Slide 9: A Diverse Group
A DIVERSE GROUP EBOS is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products. It is also a leading marketer and distributor of recognised animal care brands For personal use only Healthcare Animal Care Community Pharmac
Slide 10: Value Creation Strategy
VALUE CREATION STRATEGY Our businesses generate organic growth and significant cash flow, which funds our strategy of investing for growth, as well as dividends for shareholders For personal use only ORGANIC GROWTH AND DISCIPLINED CASH FLOW INVESTING FOR GROWTH DIVIDENDS MANAGEMENT MAXIMISING OPPORT
Slide 11: Multiple Growth Drivers
MULTIPLE GROWTH DRIVERS EBOS leverages multiple growth drivers across its businesses For personal use only Key growth businesses Key growth drivers Pharmacy Wholesale TerryWhite Chemmart Investing for growth Organic growth Medical Consumables Medical Technology Distribution Distribution Contract Log
Slide 12: Strategic Acquisitions
STRATEGIC ACQUISITIONS Acquisitions diversify and grow our earnings and are value accretive to shareholders For personal use only ~20 acquisitions since 2014 Acquisition strategy ✓ Targets: established, profitable, well managed and growing businesses 1 ✓ Size: bolt-on through to larger opportunities
Slide 13: Strong Financial Track Record
STRONG FINANCIAL TRACK RECORD EBOS has delivered consistent financial performance through the cycle For personal use only Underlying EBITDA1: Underlying EPS1: Total shareholder returns4: (A$m) (A$ cents per share) 13.5% CAGR2 10.8% CAGR2 437 115 129 15% 101 336 367 77 86 90 94 1 year 262 289 75 228
Slide 14: H1 FY23 Summary Results
H1 FY23 SUMMARY RESULTS EBOS achieved another record half year result, driven by organic growth and contribution from acquisitions For personal use only $m Underlying1 Var Statutory Var2 Revenue 6,145.7 17.0% 6,145.7 17.0% EBITDA 289.2 39.3% 289.2 44.7% EBIT 239.5 41.6% 226.0 40.1% NPAT 141.6 29.6%
Slide 15: Margin Preservation in Inflationary Environment
MARGIN PRESERVATION IN INFLATIONARY ENVIRONMENT EBOS successfully preserved and increased margins during the recent inflationary period For personal use only Group Underlying EBITDA margin by half year period Commentary • Key cost line items are cost of goods sold, labour, freight and rent • We expe
Slide 16: Sustainability Snapshot
SUSTAINABILITY SNAPSHOT For personal use only 1 15
Slide 17: Division Update
For personal use only 16 UPDATE DIVISION
Slide 18: Industry Trends – Healthcare
INDUSTRY TRENDS – HEALTHCARE The growing and ageing population continues to provide a structural tailwind For personal use only Projected Australian population by age (m)1 Prescription drug usage by age (years)2 38.7 35.6 54% Over 65 age group 32.2 8.8 36% growing at ~2x the 28.7 7.7 rate of under 6
Slide 19: Industry Trends – Animal Care
INDUSTRY TRENDS – ANIMAL CARE The industry has seen considerable growth, driven by increased pet ownership, humanisation of pets and product premiumisation For personal use only Pet population in Australia has grown (millions) Proportion of pet owning households has increased 11.7 +32% 8.9 5.3 +42%
Slide 20: Community Pharmacy Wholesale
COMMUNITY PHARMACY WHOLESALE For personal use only Business description: Drivers and dynamics: • Leading pharmaceutical wholesaler in Australia and New Zealand Alignment to large and fast growing pharmacy brands • 40%+ share in Australian ethical wholesaling segment1 and 50%+ in 1 and banner groups
Slide 21: TerryWhite Chemmart
TERRYWHITE CHEMMART For personal use only Business description: Drivers and dynamics: • One of Australia’s leading community pharmacy networks • Focus on health advice and differentiated service 1 Ongoing expansion of the TWC network • EBOS is the franchisor and wholesaler to the TWC network Launch
Slide 22: Institutional Healthcare (ex. Medical Technology)
INSTITUTIONAL HEALTHCARE (EX. MEDICAL TECHNOLOGY) For personal use only Business description: Drivers and dynamics: • A leading distributor and wholesaler of hospital medicines and medical consumables 1 Exposure to specialty medicines, a higher growth market • Trusted, long-term partner to hospitals
Slide 23: Medical Technology
MEDICAL TECHNOLOGY For personal use only Business description: Drivers and dynamics: • A leading independent distributor of medical devices, consumables and equipment in Asia Pacific with significant presence in several Reinforcing scale and leading positions in key therapeutic areas 1 therapeutic c
Slide 24: Contract Logistics
CONTRACT LOGISTICS For personal use only Business description: Drivers and dynamics: • Specialised healthcare contract logistics provider in Australia and New Zealand 1 Opportunity to grow share in Australia • Trusted partner for pharmaceutical manufacturers • World class facilities and systems with
Slide 25: Animal Care
ANIMAL CARE For personal use only Business description: Drivers and dynamics: • Leading owner, marketer and distributor of animal care brands Supportive market tailwinds of increased pet population, • Provide quality nutrition and wellbeing for pets through: 1 humanisation of pets and product premiu
Slide 26: Conclusion
CONCLUSION EBOS has had a strong track record of growth, yield and shareholder returns For personal use only Defensive growth sectors Scale and leading positions Diversified group Proven value creation strategy Multiple growth drivers Strong financial track record 25
Slide 27: Questions
For personal use only Questions
Slide 28: Appendix
For personal use only 27 APPENDIX
Slide 29: 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 For personal use only Revenue Revenue from the sale of goods and the rendering of services. Gross Operating Revenue (GOR) Revenue less cost of
Slide 30: www.ebosgroup.com
For personal use only www.ebosgroup.com