HY Results Presentation

1
Investor Presentation
Interim Financial Results
Half Year ended 31 December 2017
21 February 2018

2
Disclaimer
The information in this presentation was prepared by EBOS Group Ltd with due care and attention. However, the information is supplied in summary
form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the information. In
addition, neither the EBOS Group nor any of its subsidiaries, directors, employees, shareholders nor any other person shall have liability whatsoever
to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information
supplied in connection with it.

This presentation may contain forward-looking statements and projections. These reflect EBOS’ current expectations, based on what it thinks are
reasonable assumptions. EBOS gives no warranty or representation as to its future financial performance or any future matter. Except as required by
law or NZX or ASX listing rules, EBOS is not obliged to update this presentation after its release, even if things change materially.
This presentation does not constitute financial advice. Further, this presentation is not and should not be construed as an offer to sell or a
solicitation of an offer to buy EBOS Group securities and may not be relied upon in connection with any purchase of EBOS Group securities.

This presentation contains a number of non-GAAP financial measures, including Gross Profit, Gross Operating Revenue, EBIT, EBITA, EBITDA,
Underlying EBITDA, NPAT, Underlying NPAT, Adjusted Earnings per Share, Free Cash Flow, Interest cover, Net Debt and Return on Capital Employed.
Because they are not defined by GAAP or IFRS, EBOS’ calculation of these measures may differ from similarly titled measures presented by other
companies and they should not be considered in isolation from, or construed as an alternative to, other financial measures determined in
accordance with GAAP. Although EBOS believes they provide useful information in measuring the financial performance and condition of EBOS'
business, readers are cautioned not to place undue reliance on these non-GAAP financial measures.

The information contained in this presentation should be considered in conjunction with the consolidated financial statements for the period ended
31 December 2017.

All currency amounts are in New Zealand dollars unless stated otherwise.

3
Group Financial Results
1
Symbion Keysborough facility,
Melbourne, Australia

4
CASH
MANAGEMENT
LEADERSHIP
TRANSITION
INFRASTRUCTURE
H1 FY18 Strategic Highlights
M&A ACTIVITY
BRAND
DEVELOPMENT
STRATEGIC
INVESTMENT
HPS acquired June 2017
and transition program
completed
Black Hawk is the fastest
growing premium pet
food brand in Australia
and was successfully
launched into NZ market
14% shareholding in
MedAdvisor Ltd –
Australia’s leading digital
medication management
company
Significant progress made
on two major capex
projects (Brisbane and
Sydney)
Record H1 cash flow
before capex of +$100m
achieved
CEO change announced
with John Cullity (current
CFO) to take over from
Patrick Davies effective
31 March 2018
Group Financial Results

5
H1 FY18 Summary Results
Revenue
$3.9b
-0.4% (-3.8% Constant FX)
Group Financial Results
EBITDA
$138.5m
N PAT
$76.7m
15.6% (+11.7% Constant FX)

11.5% (+7.8% Constant FX)
1
ROCE

16.1%
EPS

50.4c
Total Dividends per share
33.0c
-0.1% 11.0% (+7.4% Constant FX)

10.0%

6
Constant FX
NZ$m
H1 FY18H1 FY17VarVar
Statutory Results
Revenue3,942.7 3,960.2
(0.4%)(3.8%)
Gross Operating Revenue434.8
364.1 19.4%
15.5%
EBITDA138.5
119.9

15.6%11.7%
EBIT121.2
107.5 12.7%9.0%
Net Finance Costs10.7 8.9 (20.2%)(16.3%)
Profit Before Tax110.5 98.6 12.1%8.4%
Net Profit After Tax
1
76.7 68.8 11.5%7.8%
Statutory EPS - cps
50.4 45.4 11.0%7.4%
Underlying EBITDA
2
138.5 122.3 13.3%
9.5%
Underlying NPAT
2
76.7
70.2 9.1%5.5%
Adjusted EPS - cps
3
51.4
46.4 10.8%7.1%
Net Debt447.5 288.1
Net Debt : EBITDA1.76x1.25x
Strong first half financial performance
Group Financial Results
•Revenue decrease is driven by lower hepatitis C
medicine sales (which were $250m lower than H1
FY17, constant FX).
–Revenue excluding hepatitis C medicine sales
grew by $76m or 2.7% (constant FX).

•Underlying EBITDA increase of $16.3m or 9.5%
(constant FX):
–Healthcare up 8.7%.
–Animal Care up 11.7%.

•Underlying NPAT increase of $6.5m or 5.5%
(constant FX).

•Adjusted EPS growth of 7.1% (constant FX).

•Lower NZD:AUD cross rate positively impacted NPAT
by $2.3m in H1 FY18.

Note 1: Net profit after tax and non-controlling interests.

Note 2: Calculated on an underlying basis that excludes transaction costs incurred on prior year acquisitions.

Note 3: Adjusted EPS reflects the Underlying EPS adjusted for amortisation charges incurred on the TerryWhite Chemmart
and HPS acquisitions undertaken in FY17.

7
Healthcare Results
2
[Update picture]

8
Constant FX
NZ$m
H1 FY18H1 FY17
VarVar
Healthcare segment
Revenue3,734.73,744.1(0.2%)(3.5%)
EBI TDA120.0106.712.5%8.7%
EBI T104.896.19.0%5.4%
EBI TDA%3.21%2.85%36pts36pts
Australia
Revenue2,967.23,013.8(1.5%)(5.6%)
EBI TDA96.985.213.8%9.0%
EBI T82.875.79.4%4.8%
EBI TDA%3.27%2.83%44pts44pts
New Zealand
Revenue767.5730.25.1%
EBI TDA23.121.57.5%
EBI T22.020.47.7%
EBI TDA%3.01%2.94%7pts
Healthcare segment
Strong trading performances across Australia and New Zealand
•EBITDA increase of $13.3m or 8.7% (constant FX):
–Australia up 9.0% assisted by the 6 month
contribution of HPS which was acquired in June
2017.
–New Zealand up 7.5%.

•Revenue decrease of $9.3m or 3.5% (constant FX):
–Australia down 5.6% (although up $76m or 2.9%
excluding hepatitis C medicine sales, constant FX).
–First half hepatitis C revenue was $250m lower
than last year (constant currency) and monthly
sales are in line with the trend seen in H2 FY17.
–New Zealand revenue up 5.1%, with growth from
all business units.

Healthcare Results

9
Community Pharmacy
Healthcare Results
•Total Pharmacy Revenue to last year declined marginally
(-0.6%, constant FX), attributable to lower hepatitis C
medicine sales (-$82m) and PBS reforms, partially offset
by a full six months contribution from TerryWhite
Chemmart (TWC) and growth in underlying business.

•Underlying Revenue growth (excluding hepatitis C and
TWC) was 2.0%, with growth in Australia of 1.9% and
New Zealand of 2.7%.

•To t a l OT C sales were in line with last year.

•GOR (excluding TWC) increased by 2.7%, primarily due to
underlying wholesale pharmacy growth in Australia and
New Zealand, partly offset by lower hepatitis C medicine
sales.

•TWC store rebranding project is largely complete.




























NZ$m H1 FY18H1 FY17
H1 FY17Var%
Revenue2,213.02,144.22,225.8(0.6%)
- Revenue ex.
acquisitions
2,148.6
2,110.92,190.8(1.9%)
GOR
211.7180.4187.612.8%
- GOR ex.
acquisitions
166.8156.3162.42.7%
GOR%9.6%8.4%
8.4%
- GOR% ex.
acquisitions
7.8%7.4%7.4%
Constant FXReported



Construction progress: new Brisbane wholesale facility

10
Institutional Healthcare
Healthcare Results
•With the acquisition of HPS in June 2017, EBOS
continues to expand its position as a specialised and
essential partner across a number of areas, primarily in
hospitals, aged care and primary care.

•First half revenue was impacted by a significant
reduction in hepatitis C sales (-$168m), partially offset
by the contribution from HPS.

•Underlying revenue growth (excluding hepatitis C and
HPS) was 2.2%.

•HPS is performing well and is achieving EBITDA in-line
with expectations.















NZ$m
H1 FY18H1 FY17H1 FY17
Var%
Revenue1,259.41,322.81,369.9
(8.1%)
- Revenue ex.
acquisitions
1,224.21,322.8
1,369.9(10.6%)
GOR108.074.877.239.9%
- GOR ex.
acquisitions
77.674.877.2
0.4%
GOR%8.6%5.7%5.6%
- GOR% ex.
acquisitions
6.3%5.7%5.6%
Constant FXReported

11
Healthcare Results
Consumer Products
•Consumer products recorded a solid first half result with
revenue growing 7.7% (constant currency).

•Revenue growth was predominantly driven by strong Red
Seal domestic sales growth in toothpaste, teas and
supplements.

•Red Seal international sales were mixed with lower sales in
China that were impacted by a change in distributor in the
period. Solid growth was achieved in other Asian countries
including South Korea, Taiwan and Japan.

•GOR margins were impacted in part by the decision in
Australia to reschedule codeine products to prescription
o n l y.

NZ$m
H1 FY18H1 FY17H1 FY17Var%
Revenue59.654.555.47.7%
GOR22.422.022.30.7%
GOR%37.6%40.3%40.2%
Constant FXReported

12
Contract Logistics
Healthcare Results
•Healthcare Logistics (NZ) maintained its leading market
position and combined with cost management,
delivered another period of increased earnings.

•The Group is expanding its Contract Logistics business
in Australia with the development of a new 25,000m
2

facility in Sydney (NSW).

•The Australian business has recently been rebranded
as Healthcare Logistics to further align the ANZ
operations.
Note: GOR % not relevant as sales activity is predominantly done on consignment.
Construction progress: new Sydney Contract Logistics facility.
NZ$m
H1 FY18H1 FY17
H1 FY17Var%
Revenue
238.0242.1
244.6(2.7%)
GOR
32.430.4
31.04.4%
ReportedConstant FX

13
Animal Care Results
3

14
55%
(H1 FY17: 49%)
35%
(H1 FY17: 27%)
10%
(H1 FY17: 24%)
Wholesale (Lyppard)
EBOS brands (Black Hawk and Vitapet)
Other products
Animal Care Results
Animal Care segment
Improving EBITDA and margins from growth in key brands
•EBITDA increase of $3.2m or 11.7% (constant
currency):

–Black Hawk sales growth in Australia (+26%).

–Earnings were negatively impacted by $2.2m
due to costs associated with the launch of Black
Hawk in New Zealand and exiting the Mars
agency business.

–EBITDA margin% increase reflects our strategic
focus on developing our brands.

Revenue Mix by category
Constant FX
NZ$m
H1 FY18H1 FY17VarVar
Animal Care
Revenue207.9216.1(3.8%)(7.2%)
EBITDA24.321.115.3%11.7%
EBIT22.519.316.3%12.7%
EBITDA%11.71%9.77%194pts194pts

15
•Revenue declined principally due to two factors:
–From March 2017, ceasing low margin wholesale sales to a major Australian retail chain. Revenue in H1
FY18 was impacted by $20m.
–In July 2017, EBOS launched Black Hawk into New Zealand and consequently ceased the sales, marketing
and distribution of Mars products in NZ (IAMS and Eukanuba brands).

•Continued revenue growth in the existing business:
–High sales growth of Black Hawk in Australia of +26% (following growth of +48% in FY17 and +55% in
FY16). New product development included new packaging and the relaunch of core cat and grain free cat.
–Black Hawk has been very well received into the New Zealand market with strong acceptance from
specialty retailers and veterinary clinics.
–Lyppard recorded solid revenue growth of 4.2% in a competitive market.
Animal Care Results
Animal Care segment
H1 Summary of Results
Strong sales growth from Black Hawk in Australia of +26%

16
Animal Care Results
Pet Industry Overview
The ANZ Pet sector is worth ~$9.5 billion and is growing at ~2% to 3% per annum¹
Pet Food
Veterinary
Services
Other
Services
Pet
Products
$4.5b
$2.6b
$1.4b
$1.0b
ANZ Pet Market by segment

•Market growth is being driven by trends towards
humanisation of pets, premiumisation of pet food and
products, and outsourcing of services like grooming, training
& obedience and dog washing.

•Pet Food sales have achieved a 5 year CAGR of 2.7%² with
Premium Food growing at faster rates of ~4-5% per annum.

•Management estimate the retail Premium food category in
Australia is ~A$700-800m. Black Hawk today is Australia's
fastest growing premium pet food brand with a leading
market position in the pet specialty retail channel. The New
Zealand retail premium pet food market is estimated at
~$200-250m.

•Our pet treats brand, Vitapet, continues to perform well. In
New Zealand, Vitapet has ~60% market share and H1 FY18
sales grew 3.5% to LY. In Australia, Vitapet is the number two
brand with ~23% market share, with Mars being the market
leader.
Source: 1. Management estimate based on industry reports. 2. Euromonitor International, Pet Care in Australia,
August 2015

17
Group Financial Information
4
EBOS Healthcare warehouse,
Auckland, New Zealand

18
Cash Flow
Record first half Operating Cash Flow performance
•Record first half operating cash flow ($101.7m)
demonstrating the Group’s disciplined focus on cash
flow management.

•H1 FY18 Capex spend primarily comprises the new
distribution centre in Brisbane ($17.0m) and the new
contract logistics facility in Sydney ($4.5m).

•Additional Capex will be incurred in H2 FY18 on the
new warehouses in Brisbane and Sydney, with total
spend on these projects alone in FY18 of
approximately $43m.
Group Financial Information
NZ$mH1 FY18H1 FY17Var$
EBITDA138.5 119.9 18.6
Net interest paid(10.7) (8.9) (1.8)
Tax paid(30.6) (37.2) 6.6
Net working capital and other movements4.5 (25.8) 30.3
Cash from Operating activities101.7 47.9 53.8
Capital expenditure (net)(31.5) (16.0) (15.6)
Free Cash Flow70.2 32.0 38.2
Acquisition of subsidiaries and investments(13.2) (17.4) 4.1
Dividends paid(50.3) (49.4) (1.0)
Net Cash Flow6.6 (34.8) 41.3
Net debt attributable to acquisitions- (9.4) 9.4
FX impact on net debt(19.3) 3.6 (22.9)
Reduction/(Increase) in Net Debt(12.8) (40.5) 27.8

19
12.8%
13.7%
16.4%
16.4%
12.9%
14.3%
16.2%
16.1%
FY14FY15FY16FY17H1 FY15H1 FY16H1 FY17H1 FY18
•Working capital management discipline is a key
focus of the Group.

•Industry leading cash conversion cycle of 15 days.
Working Capital and ROCE
Group Financial Information
Note 1: Cash conversion days are adjusted for the Group’s 3PL debtors and creditors arising from its hepatitis C business.

Return on Capital Employed
•Return on Capital Employed of 16.1% at December
2017, lower than June 2017 (-0.3%) and December
2016 (-0.1%) primarily due to a lower NZD/AUD
exchange rate which increased the Group’s capital
base.

Working Capital
NZ$m
Dec 2017June 2017Dec 2016
Net Working Capital
Trade receivables1,027.6
1,015.11,112.5
Inventory621.3572.0596.2
Trade payables/other(1,408.0)
(1,353.7)(1,446.2)
Total
240.9233.4262.5
Cash conversion days
1
Debtor days41 41 41

Inventory days33
30 31
Creditor days59
57
55
Cash conversion days15 14 17

20
•Net Debt of $447m at December 2017, an increase
of $12m from June 2017.

•Net Debt : EBITDA of 1.76x at December 2017
(1.79x at June 2017).
Net Debt, Gearing and Debt Maturity Profile
Group Financial Information
Net Debt and Gearing
Debt Maturity Profile – current facility limits
•Post 31 December, EBOS entered into a new three
year securitisation facility (A$400m) which expires in
January 2021.

248
288
435
447
18.5%
20.3%
27.4%
27.3%
0%
5%
10%
15%
20%
25%
30%
0
50
100
150
200
250
300
350
400
450
500
Jun-16Dec-16Jun-17Dec-17
Gearing ratio
Net debt (NZ$m)
Net DebtGearing ratio (Net debt)
267
104
33
55
-
440
-
100
200
300
400
500
600
FY18FY19FY20FY21FY22
NZ$m
Term debt facilitiesSecuritisation

21
36.2
42.5
45.4
50.4
34.6
41.5
42.4
FY15FY16FY17FY18
Cents per share
H1H2
•Statutory 1H EPS growth of 11.0% (7.4% constant currency).

•Adjusted EPS¹ of 51.4c represents a 10.8% increase on last year (7.1% constant currency).

•Interim dividend of 33.0 cents, an increase of 10.0% on last year. Imputed to 25% and franked to 100% for
Australian resident shareholders.

•Dividend payout ratio of 66%.


Earnings per share Dividends per share
Group Financial Information
Earnings and Dividends per share
22.0
26.0
30.0
33.0
25.0
32.5
33.0
FY15FY16FY17FY18
Cents per share
H1H2
Note 1: Adjusted EPS calculated as NPAT excluding transaction costs and amortisation charges incurred on recent
acquisitions, divided by the weighted average number of shares on issue during the period.

22
5
Outlook
Top: EBOS, Auckland. Symbion, Melbourne
Bottom: ProPharma warehouse, Auckland. Black Hawk
display at Rangiora veterinary clinic (Christchurch).

23
Outlook
Outlook
•EBOS Group has recorded a strong start for the first half of the financial year across both our Healthcare and
Animal Care segments.

•We expect constant currency, underlying EBITDA for the 2018 financial year to grow by approximately 10% on
the prior year.

24




Supporting Information
EBOS Group locations in
Australia and New Zealand
6

25
0.85
0.86
0.87
0.88
0.89
0.90
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98
0.99
1.00
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Dec
-17

•83% of the Group’s earnings (EBITDA) are
generated in AUD.

•The average NZD:AUD FX rate for H1 FY18
decreased by 4.0 cents from H1 FY17,
positively impacting the Group’s H1 FY18
EBITDA by approximately $4.1m.

•EBITDA sensitivity to a 1 cent movement
in NZD:AUD exchange rate is
approximately $2.1m per annum.
Foreign exchange
Depreciation of the average NZD:AUD cross-rate by 4.0c to 0.912 positively impacted EBITDA by
$4.1m in H1 FY18
Revenue and EBITDA by currency
H1 FY17 average: 0.951c
NZD:AUD exchange rate – July 2016 to December 2017
FY17 average: 0.945c H1 FY18 average: 0.912c
AUDAverageAUDNZGroup
OperationsNZD: AUDOperationsOperationsConsolidated
$mAUDtranslation
NZDNZDNZD
H1 FY18
Revenue2,873.8 0.91
3,150.8
791.9 3,942.7

EBITDA104.9
0.91 114.8
23.7 138.5
EBITDA%3.65%3.64%3.00%
3.51%

26
Segment earnings and GOR mix
EBITDA by segment
Gross Operating Revenue (GOR) H1 FY18
•H1 FY17 Corporate segment result includes $2.4m
of transaction costs incurred on the Terry White
Chemmart merger.
H1 FY18 GOR Mix
H1
H1Constant FX
NZ$m
FY18FY17
VarVar
Healthcare120.0106.712.5%
8.7%
Animal Care24.321.115.3%
11.7%
Corporate(5.8)(7.9)
26.3%28.6%
Group138.5119.9
15.6%11.7%
Transaction costs-
2.4
Group - underlying138.5
122.313.3%9.5%

27
Reconciliation of statutory and underlying results
Note 1: Underlying EBITDA and Underlying Net Profit After Tax (attributable to the owners of the company) are both Non-GAAP measures which
adjust for the effects of non-recurring items.
NZ$mEBITDANPAT
EBITDANPAT
Statutory result
138.5
76.7119.968.8
Add back
Transaction costs incurred on acquisitions
undertaken during the period
- -
2.41.4
Underlying result
1
138.5
76.7122.370.2
H1 FY17H1 FY18

28
Glossary of terms and measures
Except where noted, common terms and measures used in this document are based upon the following definitions:
Term Definition
Actual results Results translated into NZ dollars at the applicable actual monthly exchange rates ruling in each period.
Debtor days Trade debtors at the end of period divided by Revenue for the period, multiplied by number of days in the period.
Inventory days Inventory at the end of period divided by Cost of Sales for the period, multiplied by number of days in the period.
Creditor days Trade creditors at the end of period divided by Cost of Sales for the period, multiplied by number of days in the period.
Constant
FX/currency

Calculated by translating the prior period results into NZ dollars at the actual monthly exchange rates applicable in the current period.
Revenue Revenue from the sale of goods and the rendering of services.
Gross Operating
Revenue (GOR)

Revenue less cost of sales and the write-down of inventory.
EBIT Earnings before interest and tax.
EBITDA Earnings before interest, tax, depreciation and amortisation.
Underlying EBITDA Earnings before interest, tax, depreciation, amortisation and transaction costs relating to acquisitions.
NPAT Net Profit After Tax attributable to the owners of the company.
Underlying NPAT Net Profit After Tax attributable to the owners of the company and before transaction costs relating to acquisitions.
Free Cash Flow Cash from operations less capital expenditure net of proceeds from disposals.
Earnings per share
(EPS)
Net Profit after tax divided by the weighted average number of shares on issue during the period.
Adjusted EPS NPAT excluding transaction costs and amortisation charges incurred on recent acquisitions, divided by the weighted average number of shares on
issue during the period.
Net Debt : EBITDA Ratio of net debt at period end to the last 12 months EBITDA.
Return on Capital
Employed (ROCE)
Measured as underlying earnings before interest, tax and amortisation of finite life intangibles for 12 months divided by closing capital employed
(including a pro-rata adjustment for entities acquired and excluding amounts for significant capital projects yet to complete and strategic
investments).

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