Slide 1: Investor Presentation: Annual Financial Results FY23
For personal use only INVESTOR PRESENTATION Annual Financial Results Full year ended 30 June 2023 23 August 2023
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 For person
Slide 3: Group Financial Results
For personal use only GROUP FINANCIAL RESULTS 3
Slide 4: FY23 Summary Results
FY23 SUMMARY RESULTS EBOS has achieved another record result driven by organic growth and prior year acquisitions, reflecting the defensive and diversified nature of our Group earnings For personal use only $m Underlying1 Var Statutory Var Revenue 12,237.4 r 14.0% 12,237.4 r 14.0% EBITDA 582.0 r 33.
Slide 5: Key Highlights
KEY HIGHLIGHTS Continued strong organic growth in Healthcare and Animal Care combined with substantial contribution from acquisitions completed in FY22 For personal use only Healthcare • Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”), EBITDA up 32.7
Slide 6: Macro and Industry Environment
MACRO AND INDUSTRY ENVIRONMENT Earnings have remained resilient in the current macro environment For personal use only Demand • Demand for our products and services has generally remained resilient to economic factors, reflecting the defensive and diversified nature of our portfolio. • H2 FY23 Under
Slide 7: Division and Segment Performance
DIVISION AND SEGMENT PERFORMANCE All of our divisions generated positive organic growth and the Institutional Healthcare division recorded particularly strong growth due to prior year acquisitions For personal use only GOR bridge ($m) Underlying EBITDA bridge ($m) FY23 FY23 growth 13.6% 50.7% 18.4%
Slide 8: Group Performance
GROUP PERFORMANCE $m FY23 FY22 Var Var% • Revenue of $12,237.4m, an increase of $1,503.3m or 14.0%: For personal use only 1 Underlying Results o Healthcare up 14.6%; Revenue 12,237.4 10,734.1 1,503.3 14.0% GOR 1,547.5 1,233.8 313.6 25.4% o Animal Care up 3.6%. EBITDA 582.0 436.8 145.2 33.2% • Underl
Slide 9: Long Term Track Record
LONG TERM TRACK RECORD EBOS has delivered consistent financial performance over the long term For personal use only Underlying EBITDA ($m) Underlying EPS (cents per share) DPS (NZ$ cents per share) 15.5% CAGR1 11.2% CAGR1 11.6% CAGR1 582 110 148 96 130 89 437 115 78 367 101 69 72 336 94 63 86 90 59
Slide 10: 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 • EBOS completed the acquisition of Superior Pet Food Co. (Superior) on 31 July 2023.
Slide 11: 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 12: 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 13: 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 14: 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 Community Pharmacy excl. Chemist Wa
Slide 15: 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 • Investing in new fa
Slide 16: Sustainability Snapshot
SUSTAINABILITY SNAPSHOT For personal use only 16
Slide 17: Results Healthcare
17 For personal use only RESULTS HEALTHCARE
Slide 18: Healthcare Segment
HEALTHCARE SEGMENT Strong earnings growth and resilient performance across the financial year, notwithstanding the macroeconomic environment For personal use only $m FY23 FY22 Var Var% • Strong performances across our Community Pharmacy, TWC, Institutional Healthcare and Contract Logistics Revenue 1
Slide 19: Community Pharmacy
COMMUNITY PHARMACY • Revenue increased by $870.7m (13.5%) and GOR increased by $m FY23 FY22 Var Var% For personal use only $77.4m (13.6%), benefitting from: Revenue 7,312.4 6,441.7 870.7 13.5% o Customer growth and maintaining share leadership; GOR 646.1 568.7 77.4 13.6% o Strong performance from ou
Slide 20: TerryWhite Chemmart
TerryWhite Chemmart • TerryWhite Chemmart added 40 net 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 d
Slide 21: Institutional Healthcare
INSTITUTIONAL HEALTHCARE • Institutional Healthcare revenue increased by $520.9m (17.0%) and GOR $m FY23 FY22 Var Var% increased by $191.8m (50.7%) largely due to: For personal use only Revenue 3,590.5 3,069.5 520.9 17.0% o Contribution from medical technology and medical consumables businesses acqu
Slide 22: Contract Logistics
CONTRACT LOGISTICS • Contract Logistics GOR increased by $23.8m (18.4%) $m FY23 FY22 Var Var% attributable to: For personal use only 1 GOR 153.2 129.4 23.8 18.4% o Growth in Australia from new and existing principals, including the benefit from Government initiatives to improve the depth of medicine
Slide 23: Results Animal Care
23 For personal use only CARE ANIMAL RESULTS
Slide 24: Animal Care Segment
ANIMAL CARE SEGMENT The Animal Care segment has continued to perform strongly For personal use only $m FY23 FY22 Var Var% • Animal Care revenue increased by $19.5m (3.6%) and Underlying EBITDA increased by $19.2m (24.0%) due to strong performances Revenue 560.8 541.3 19.5 3.6% from our leading brand
Slide 25: Continued Product and Brand Growth
CONTINUED PRODUCT AND BRAND GROWTH Our key brands demonstrated solid growth and maintained leadership positions For personal use only FY23 Sales Categories Sales growth drivers Growth1 • Resilient demand for core pet food category and strong consumer support for our brand. • Brand focus on all stage
Slide 26: New Product Development Preview
NEW PRODUCT DEVELOPMENT PREVIEW Consistent with our Animal Care growth strategy, several new product development launches are planned for FY24 including our new Black Hawk Healthy Benefits product range For personal use only • Black Hawk Healthy Benefits® range is the first specific benefits line fr
Slide 27: Financial Information and Outlook
For personal use only FINANCIAL INFORMATION AND OUTLOOK 27
Slide 28: Cash Flow
CASH FLOW Strong cash flow performance driven by earnings growth and working capital discipline For personal use only $m FY23 FY22 Var$ Var% Underlying Cash from Operating Activities ($m)1 Underlying EBITDA 582.0 436.8 145.2 33.2% Interest paid (70.6) (28.7) (41.9) H1 H2 404.7 Tax (paid) (144.4) (11
Slide 29: Working Capital and ROCE
WORKING CAPITAL AND ROCE Working Capital Return on Capital Employed (ROCE) For personal use only 1 $m FY23 FY22 FY21 Net Working Capital Trade receivables 1,383.2 1,277.5 1,098.9 Inventory 1,234.2 1,104.0 784.8 18.0% 18.6% 15.9% 17.1% 15.1% Trade payables/other (2,263.4) (2,014.8) (1,622.3) Total 35
Slide 30: Net Debt and Maturity Profile
NET DEBT AND MATURITY PROFILE Net Debt and Net Debt : EBITDA ratio1 Cash and Debt Maturity Profile For personal use only 1.94x 1,019 1.41x 1.52x 1.11x 0.85x 385 400 860 345 767 212 171 633 366 327 345 400 271 212 171 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Cash on FY24 FY25 FY26 FY27 Hand Net Debt Net De
Slide 31: Earnings and Dividends per Share
EARNINGS AND DIVIDENDS PER SHARE Underlying Earnings per Share (cents) Dividends per Share (NZ cents) For personal use only H1 H2 147.9 H1 H2 110.0 129.5 96.0 114.9 88.5 100.8 77.5 94.2 73.3 71.5 57.0 63.0 49.0 57.2 46.0 49.5 40.0 46.4 37.0 66.6 74.5 53.0 57.8 42.5 47.0 47.8 51.3 34.5 37.5 FY19 FY20
Slide 32: Outlook
OUTLOOK • EBOS is pleased with the strong earnings growth in FY23 driven by both organic growth and acquisitions. • July 2023 trading conditions were positive with continued organic growth compared to the prior corresponding period and we For personal use only expect another year of profitable growt
Slide 33: Supporting Information
For personal use only SUPPORTING INFORMATION 33
Slide 34: Reconciliation of Statutory to Underlying Results
RECONCILIATION OF STATUTORY TO UNDERLYING RESULTS For personal use only FY23 FY22 $m EBITDA EBIT PBT NPAT EBITDA EBIT PBT NPAT Statutory result 568.8 444.0 373.4 253.4 405.8 323.9 295.3 202.6 LifeHealthcare PPA amortisation (non-cash) - 26.9 26.9 18.9 - 1.5 1.5 1.0 Medical Technology division integr
Slide 35: Segment EBITDA and EBIT Reconciliation
SEGMENT EBITDA AND EBIT RECONCILIATION EBITDA EBIT $m FY23 FY22 Var$ Var% FY23 FY22 Var$ Var% Healthcare For personal use only Statutory 504.5 358.5 146.0 40.7% 391.1 285.1 106.0 37.2% add LifeHealthcare PPA amortisation (non-cash) - - - 26.9 1.5 25.5 add Medical Technology division integration cost
Slide 36: 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. For personal use only Gross Operating Revenue (GOR) Revenue less cost of
Slide 37: For personal use only
For personal use only www.ebosgroup.com