ASX Appendix 4D

1

EBOS GROUP LIMITED
Appendix 4D
Interim Report for the Half Year Ended 31 December 2017

RESULTS FOR ANNOUNCEMENT TO THE MARKET

The following information is presented in accordance with ASX listing rule 4.2A.3 and should be read in
conjunction with the attached unaudited EBOS Group Limited interim report for the six months ended
31 December 2017.

1. Details of the reporting period and the previous corresponding period

Current period - the half year ended 31 December 2017
Previous corresponding period - the half year ended 31 December 2016

This report and the attached condensed consolidated interim unaudited financial statements are
presented in New Zealand dollars, being the Group’s presentation currency.

2. Group financial results – Half year summary



Group results
(NZD$000’s)
31 December
2017
NZD$000
(Unaudited)
31 December
2016
NZD$000
(Unaudited)
Change
%
(actual FX
rates)
Change
%
(constant
FX rates)
Revenue 3,942,661 3,960,204 (0.4%) (3.8%)
EBITDA 138,517 119,868 15.6% 11.7%
Depreciation and amortisation 17,276 12,334 40.1% 35.0%
Earnings before interest and tax
(EBIT)

121,241

107,534

12.7%

9.0%
Net profit after tax (NPAT) 77,450 69,269 11.8% 8.2%
Net Profit after tax (NPAT)
attributable to the owners of
the Company

76,670

68,785

11.5%

7.8%
Basic EPS – (cps) 50.4 45.4 11.0% 7.4%
Net tangible asset backing per
ordinary share – ($)

($0.42)

$0.40


Underlying Net profit after tax
(NPAT) attributable to the
owners of the Company

(refer reconciliation below)

76,670

70,237



9.1%

5.5%

2

Dividends

Amount per
security
Franked
amount per
security to
30% tax rate
Interim dividend
Interim dividend – previous corresponding period
33.0c
30.0c
100%
100%
Key dates for the 2018 Interim Dividend:

Ex-dividend date: 15 March 2018
Record date: 16 March 2018 (5:00pm NZ Time)
Dividend payment date: 6 April 2018

Other comments:
The interim dividend will be imputed to 25% for New Zealand resident shareholders, and a
supplementary dividend paid to eligible non-resident shareholders.

Reconciliation of Reported vs Underlying Earnings
31 December
2017
NZD$000
(Unaudited)
31 December
2016
NZD$000
(Unaudited)
Change
%
(actual FX
rates)
Change
%
(constant
FX rates)
Reported EBITDA 138,517 119,868 15.6% 11.7%
Add transaction costs incurred on the
Terry White Chemmart merger
- 2,389

Underlying EBITDA 138,517 122,257 13.3% 9.5%

Net Profit after tax (NPAT) attributable
to the owners of the Company

76,670

68,785

11.5%

7.8%
Add transaction costs incurred on the
Terry White Chemmart merger (after
non-controlling interests)

-

1,452




Underlying Net Profit after tax (NPAT)
attributable to the owners of the
Company

76,670

70,237

9.1%

5.5%

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.

For supplementary comments on the Group’s financial results refer to the Results Presentation and
Media Release issued 21 February 2018.



3. Entities acquired
There were no acquisitions (or gain of control) or disposals (or loss of control) over any entities during
the half year ended 31 December 2017.

3


4. Dividends paid and declared
Amount Total
Per Share Amount Date Paid/
(cents) ($) (Payable)
________________________ ________________________ ________________________
Dividends paid attributable to the year ended
30 June 2017
2017 interim dividend 30.0 cents $45,574,000 7 April 2017
2017 final dividend 33.0 cents $50,338,000 13 October 2017
____________________________________________________________________________________________

Dividends declared in respect of the year ending
30 June 2018
2018 interim dividend 33.0 cents $50,338,000 6 April 2018
____________________________________________________________________________________________




5. Dividend Reinvestment Plan
The dividend reinvestment plan will not operate for this interim dividend.


6. Associates and Joint Ventures

The Group equity accounted the following associate entities at 31 December 2017:

Name of business Proportion of shares and voting rights
_________________________________________________________________________ _________________________________________________________________
Animates NZ Holdings Limited 50%
Good Price Pharmacy Management Pty Limited 25.8%
Good Price Pharmacy Franchise Pty Limited 25.8%

Income from the individual Associates has not been separately disclosed as it is considered
immaterial. Total Income from Investments in Associates for the half year ended 31 December 2017
was $2,088,000 (2017: $1,948,000).


7. Foreign Entities
The condensed consolidated interim unaudited financial statements are presented in New Zealand
dollars and comply with International Financial Reporting Standards (“IFRS”).


8. Independent Audit Review
The condensed consolidated interim financial statements have been reviewed by an independent
Auditor, and the Auditor has given an unmodified review opinion.

EBOS GROUP LIMITED

INTERIM REPORT
FOR THE SIX MONTHS ENDED
31 DECEMBER 2017

EBOS GROUP LIMITED
INTERIM REPORT 2018



CONTENTS Page


Summary of Consolidated Financial Highlights 1


Shareholder Calendar 1


Auditor’s Independent Review Report 2


Condensed Consolidated Income Statement 3


Condensed Consolidated Statement of Comprehensive Income 4


Condensed Consolidated Statement of Changes in Equity 5


Condensed Consolidated Balance Sheet 7


Condensed Consolidated Cash Flow Statement 8


Notes to the Condensed Consolidated Interim Financial Statements 9


Directory 16

1

EBOS GROUP LIMITED
INTERIM REPORT 2018
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS



Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)

Revenue 3,942,661 3,960,204 7,625,854

Earnings before net finance costs, tax expense, depreciation and
amortisation (EBITDA)

138,517

119,868

234,427

Earnings before interest and tax expense (EBIT) 121,241 107,534 208,593

Profit before income tax expense 110,506 98,602 189,568

Profit for the period 77,450 69,269 132,846

Profit for the period attributable to owners of the Company 76,670 68,785 133,279

Equity attributable to owners of the Company 1,171,354 1,108,190 1,132,070

Earnings per share 50.4c 45.4c 87.8c

Interim dividend per share 33.0c 30.0c 30.0c

Net interest bearing debt to net interest bearing debt plus equity 27.3% 20.3% 27.4%








SHAREHOLDER CALENDAR

Release of 2018 half year results 21 February 2018
Interim dividend record date 16 March 2018
Interim dividend payable 6 April 2018
Release of 2018 full year results 23 August 2018
Annual General Meeting 16 October 2018

2



INDEPENDENT REVIEW REPORT TO THE SHAREHOLDERS OF EBOS GROUP LIMITED

We have reviewed the condensed consolidated interim financial statements of EBOS Group Limited and its subsidiaries (‘the Group’) which
comprise the condensed consolidated balance sheet as at 31 December 2017, and the condensed consolidated income statement,
condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed
consolidated statement of cash flows for the six months ended on that date, and a summary of significant accounting policies and other
explanatory information on pages 3 to 15.

This report is made solely to the Group’s shareholders, as a body. Our review has been undertaken so that we might state to the Group’s
shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Group’s shareholders as a body, for our engagement, for this
report, or for the opinions we have formed.

Board of Directors’ Responsibilities
The Board of Directors are responsible for the preparation and fair presentation of the condensed consolidated interim financial
statements, in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control
as the Board of Directors determine is necessary to enable the preparation and fair presentation of the condensed consolidated interim
financial statements that are free from material misstatement, whether due to fraud or error.

Our Responsibilities
Our responsibility is to express a conclusion on the condensed consolidated interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410 Review of Financial Statements Performed by the Independent Auditor of the Entity
(‘NZ SRE 2410’). NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to believe that the
condensed consolidated interim financial statements, taken as a whole, are not prepared, in all material respects, in accordance with NZ
IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting. As the auditor of EBOS Group Limited, NZ SRE 2410 requires that
we comply with the ethical requirements relevant to the audit of the annual financial statements.

A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 is a limited assurance engagement.
The auditor performs procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures.

The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International
Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on those financial statements.

Other than in our capacity as auditor and the provision of advisory services we have no relationship with or interests in EBOS Group
Limited or its subsidiaries.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial
statements of the Group do not present fairly, in all material respects, the financial position of the Group as at 31 December 2017 and its
financial performance and cash flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting.





Chartered Accountants
20 February 2018
Christchurch, New Zealand

3

EBOS GROUP LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2017





Notes
Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)


Revenue
2(a) 3,942,661 3,960,204 7,625,854


Income from associates
2,088 1,948 4,062


Profit before depreciation, amortisation, net finance
costs and income tax expense

138,517

119,868

234,427
Depreciation
2(b) (8,906) (6,519) (13,616)
Amortisation of finite life intangibles
2(b) (8,370) (5,815) (12,218)
Profit before net finance costs and income tax expense
121,241 107,534 208,593
Finance income
986 1,219 2,079
Finance costs
(11,721) (10,151) (21,104)
Profit before income tax expense
110,506 98,602 189,568
Income tax expense
(33,056) (29,333) (56,722)
Profit for the period
77,450 69,269 132,846


Profit for the period attributable to:

Owners of the Company
76,670 68,785 133,279
Non-controlling interests
780 484 (433)

77,450 69,269 132,846

Earnings per share

Basic (cents per share)
50.4 45.4 87.8
Diluted (cents per share)
50.4 45.4 87.8

4

EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2017


Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)


Profit for the period
77,450 69,269 132,846


Other comprehensive income

Items that may be reclassified subsequently to profit or loss:

Cash flow hedge gains
968 5,074 5,675
Related income tax
(276) (1,470) (1,653)
Net fair value movement on available-for-sale financial assets
(1,769) - -
Translation of foreign operations
13,669 (2,270) 1,947
Total comprehensive income net of tax
90,042 70,603 138,815


Total comprehensive income for the period is attributable to:

Owners of the Company
89,262 70,119 139,248
Non-controlling interests
780 484 (433)

90,042 70,603 138,815

5

EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017


Notes
Share
capital
$’000

Share
based
payments
reserve
$’000
Foreign
currency
translation
reserve
$’000
Retained
earnings
$’000



Cash flow
hedge
reserve
$’000



Available-for-
sale
revaluation
reserve
$’000

Non-
controlling
interests
$’000
Total
$’000
Six months ended
31 December 2016 (unaudited):

Opening balance 888,513 - (36,761) 239,578 (4,053) - - 1,087,277
Profit for the period - - - 68,785 - - 484 69,269
Other comprehensive income for
the period, net of tax
-

- (2,270) - 3,604

- - 1,334
Payment of dividends 4 - - - (49,371) - - - (49,371)
Arising on acquisition of
subsidiaries
-

-
- - -

-
20,303 20,303
Share based payments - 165 - - - - - 165
Effect of exchange rate
fluctuations
-

-

- - -

-

(412) (412)
Balance at 31 December 2016 888,513 165 (39,031) 258,992 (449) - 20,375 1,128,565

Year ended
30 June 2017 (audited):




Opening balance 888,513 - (36,761) 239,578 (4,053) - - 1,087,277
Profit for the year - - - 133,279 - - (433) 132,846
Other comprehensive income for
the year, net of tax
-

- 1,947 - 4,022

-

- 5,969
Payment of dividends 4 - - - (94,945) - - - (94,945)
Arising on acquisition of
subsidiaries
-

-

- - -

-


20,936
20,936
Share based payments - 490 - - - - - 490
Effect of exchange rate
fluctuations
-

-

- - -

- (175) (175)
Balance at 30 June 2017 888,513 490 (34,814) 277,912 (31) - 20,328 1,152,398

6

EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2017


Notes
Share
capital
$’000

Share
based
payments
reserve
$’000
Foreign
currency
translation
reserve
$’000
Retained
earnings
$’000



Cash flow
hedge
reserve
$’000



Available-for-
sale
revaluation
reserve
$’000

Non-
controlling
interests
$’000
Total
$’000
Six months ended
31 December 2017 (unaudited):

Opening balance 888,513 490 (34,814) 277,912 (31) - 20,328 1,152,398
Profit for the period - - - 76,670 - - 780 77,450
Other comprehensive income for
the period, net of tax
-

- 13,669 - 692

(1,769) - 12,592
Payment of dividends 4 - - - (50,338) - - - (50,338)
Share based payments - 360 - - - - - 360
Effect of exchange rate
fluctuations
-

-

- - -

-

931 931
Balance at 31 December 2017 888,513 850 (21,145) 304,244 661 (1,769) 22,039 1,193,393

7

EBOS GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2017



Notes
31 Dec 17
$’000
(Unaudited)
31 Dec 16
$’000
(Unaudited)
30 Jun 17
$’000
(Audited)
Current assets
Cash and cash equivalents

142,847

175,679

162,181
Trade and other receivables 1,053,601 1,134,832 1,041,849
Prepayments 9,435 9,093 7,834
Inventories 621,314 596,174 572,001
Current tax refundable

3,965

83

168
Other financial assets – derivatives
8
253

576

19
Total current assets 1,831,415 1,916,437 1,784,052

Non-current assets






Property, plant and equipment 120,324 106,914 115,876
Capital work in progress 45,225 8,303 22,923
Prepayments 4 209 9
Deferred tax assets

48,097

43,730

49,263
Goodwill

1,008,595

859,858

1,000,050
Indefinite life intangibles 129,245 107,316 115,940
Finite life intangibles 71,555 56,263 80,084
Investment in associates 38,209 34,480 36,455
Other financial assets

10,643

-

922
Total non-current assets 1,471,897 1,217,073 1,421,522
Total assets 3,303,312 3,133,510 3,205,574

Current liabilities
Trade and other payables 1,384,159 1,424,184 1,327,757
Finance leases

25 118 72
Bank loans
7
229,321 188,866 155,857
Current tax payable 21,260 12,862 14,209
Employee benefits 40,001 34,134 40,971
Other financial liabilities – derivatives 8 2,262 4,154 2,995
Total current liabilities

1,677,028 1,664,318 1,541,861

Non-current liabilities
Bank loans
7
360,883 274,778 440,847
Trade and other payables

13,035 14,297 13,837
Deferred tax liabilities 52,588 46,622 50,783
Finance leases 96 - 103
Employee benefits 6,289 4,930 5,745
Total non-current liabilities 432,891 340,627 511,315
Total liabilities 2,109,919 2,004,945 2,053,176
Net assets

1,193,393 1,128,565 1,152,398

Equity
Share capital 3 888,513 888,513 888,513
Share based payments reserve

850 165 490
Foreign currency translation reserve (21,145) (39,031) (34,814)
Retained earnings 304,244 258,992 277,912
Cash flow hedge reserve 661 (449) (31)
Available-for-sale revaluation reserve

(1,769) - -
Equity attributable to owners of the company 1,171,354 1,108,190 1,132,070
Non-controlling interests 22,039 20,375 20,328
Total equity

1,193,393 1,128,565 1,152,398

8

EBOS GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2017





Notes
Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)


Cash flows from operating activities

Receipts from customers
4,006,609 4,146,399 7,922,392
Interest received
986 1,219 2,079
Dividends received from associates
703 682 913
Payments to suppliers and employees
(3,864,286) (4,053,068) (7,694,957)
Taxes paid
(30,595) (37,218) (65,380)
Interest paid
(11,721) (10,151) (21,104)
Net cash inflow from operating activities
5 101,696 47,863 143,943


Cash flows from investing activities

Sale of property, plant & equipment
87 45 150
Purchase of property, plant & equipment
(9,505) (13,471) (13,507)
Payments for capital work in progress
(21,505) (1,852) (22,923)
Payments for intangible assets
(620) (670) (1,164)
Acquisition of subsidiaries
(1,449) (11,961) (183,228)
Investment in other financial assets
(11,797) - (879)
Net cash (outflow) from investing activities
(44,789) (27,909) (221,551)


Cash flows from financing activities

Proceeds from borrowings
- 85,848 224,456
Repayment of borrowings
(32,493) - (10,357)
Dividends paid to equity holders of parent
4 (50,338) (49,371) (94,945)
Net cash (outflow)/inflow from financing activities
(82,831) 36,477 119,154


Net (decrease)/increase in cash held
(25,924) 56,431 41,546
Effect of exchange rate fluctuations on cash held during
the period

6,590

(1,003)

384
Net cash and cash equivalents at beginning of period
162,181 120,251 120,251
Net cash and cash equivalents at end of period
142,847 175,679 162,181

9


EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2017

1. FINANCIAL STATEMENTS

These unaudited condensed consolidated interim financial statements have been prepared in accordance with Generally Accepted
Accounting Practice (“GAAP”). They comply with the New Zealand Equivalent to International Accounting Standard 34 (NZ IAS 34)
“Interim Financial Reporting” and International Accounting Standard IAS 34, as applicable for profit orientated entities.
The same accounting policies and methods of computation are applied in the interim financial statements as were applied in the
financial statements for the year ended 30 June 2017. These financial statements should be read in conjunction with the financial
statements and related notes included in the Group’s Annual Report for the year ended 30 June 2017. The information is presented
in thousands of New Zealand dollars unless otherwise stated.

2. PROFIT FROM OPERATIONS


Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)

(a)
Revenue



Revenue from the sale of goods

3,826,677 3,890,309 7,471,918

Revenue from the rendering of services

115,984 69,895 153,936

3,942,661

3,960,204

7,625,854




(b)
Profit before income tax expense




Profit before income tax has been arrived at after
charging the following expenses by nature:



Cost of sales

(3,507,129)

(3,593,238)

(6,872,190)

Write-down of inventory

(712)

(2,842)

(8,387)

Impairment on trade & other receivables

(572) (465) (2,758)

Depreciation of property, plant & equipment

(8,906) (6,519) (13,616)

Amortisation of finite life intangibles

(8,370) (5,815) (12,218)

Operating lease rental expenses

(20,896)

(16,038)

(35,125)

Donations

(25) (17) (49)

Employee benefit expense

(149,934) (119,025) (245,813)

Defined contribution plan expense

(8,152) (6,448) (14,653)

Other expenses

(118,827)

(104,213)

(216,017)

Total expenses

(3,823,523) (3,854,620) (7,420,826)

10

EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2017

3. SHARE CAPITAL


Six months
31 Dec 17
Six months
31 Dec 16
Year ended
30 Jun 17
No.
’000
$’000
(Unaudited)
No.
’000
$’000
(Unaudited)
No.
’000
$’000
(Audited)


Fully paid ordinary
shares












Balance at beginning
of period

151,914 888,513 151,314 888,513 151,314 888,513













Shares issued –
September 2016

- - 600 - 600 -
September 2017

625

-

-

-

-

-















152,539

888,513

151,914

888,513

151,914

888,513

4. DIVIDENDS

Six months
31 Dec 17
Six months
31 Dec 16
Year ended
30 Jun 17
Cents per
share
$’000
(Unaudited)
Cents per
share
$’000
(Unaudited)
Cents per
share
$’000
(Audited)

Recognised amounts

Fully paid ordinary shares
Final – prior year

33.0 50,338 32.5 49,371 32.5 49,371
Interim – current year

- - - - 30.0 45,574


33.0 50,338 32.5 49,371 62.5 94,945



Unrecognised amounts


Final dividend

- - - - 33.0 50,132
Interim dividend

33.0 50,338 30.0 45,574 - -


33.0 50,338 30.0 45,574 33.0 50,132


The Board approved an interim dividend of 33.0 cents per share on 20 February 2018. The record date for the dividend is 16 March
2018 and the dividend will be paid on 6 April 2018.

11

EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2017


5. NOTES TO THE CASH FLOW STATEMENT


Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)

Reconciliation of profit for the period with cash
flows from operating activities



Profit for the period

77,450 69,269 132,846



Add/(less) non-cash items:


Depreciation of property, plant and equipment

8,906

6,519

13,616
Amortisation of finite life intangibles

8,370

5,815

12,218
(Gain)/loss on sale of property, plant & equipment

(15) (2) 497
Income from associates

(2,088) (1,948) (4,062)
Expense recognised in respect of share based
payments

360 165 490
Deferred tax

(175) (1,816) (2,462)


15,358

8,733

20,297







Movements in working capital:


Trade and other receivables

(11,752) 185,555 278,538
Prepayments

(1,596) (834) 626
Inventories

(49,313) (17,661) 6,512
Current tax refundable/(payable)

3,254 (5,341) (4,079)
Trade and other payables

55,600 (186,056) (282,943)
Provision for employee benefits

(426) (1,215) 6,436
Foreign currency translation of opening working
capital balances

13,866 (3,316) 608


9,633 (28,868) 5,698



Working capital items relating to investing activities

(745) 682 (2,466)
Working capital items acquired on acquisition

- (1,953) (12,432)







Net cash inflow from operating activities

101,696 47,863 143,943

12

EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2017


6. SEGMENT INFORMATION

(a) Products and services from which reportable segments derive their revenues
The Group’s reportable segments under NZ IFRS 8 are as follows:

Healthcare: Incorporates the sale of human healthcare products in a range of sectors, own brands, retail healthcare and
wholesale activities.

Animal care: Incorporates the sale of animal care products in a range of sectors, own brands, retail and wholesale activities.

Corporate: Includes net financing costs and central administration expenses that have not been allocated to either the
healthcare or animal care segments.

(b) Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment:


Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)

Revenue from external customers

Healthcare
3,734,719 3,744,059 7,202,688
Animal care
207,942 216,145 423,166

3,942,661 3,960,204 7,625,854
Segment result (EBITDA)

Healthcare
120,004 106,659 208,782
Animal care
24,342 21,115 44,712
Corporate
(5,829) (7,906) (19,067)

138,517 119,868 234,427
Segment expenses

Healthcare:

Depreciation of property, plant and equipment
(8,176) (5,970) (12,562)
Amortisation of finite life intangibles
(7,047) (4,591) (9,719)
Income tax expense
(31,686) (28,909) (53,762)

(46,909) (39,470) (76,043)
Animal care:

Depreciation of property, plant and equipment
(517) (549) (1,054)
Amortisation of finite life intangibles
(1,323) (1,224) (2,499)
Income tax expense
(6,296) (5,317) (11,206)

(8,136) (7,090) (14,759)
Corporate:

Depreciation of property, plant and equipment
(213) - -
Net finance costs
(10,735) (8,932) (19,025)
Income tax credit
4,926 4,893 8,246

(6,022) (4,039) (10,779)
Profit for the period

Healthcare
73,095 67,189 132,739
Animal care
16,206 14,025 29,953
Corporate
(11,851) (11,945) (29,846)

77,450 69,269 132,846

‘

13

EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2017


6. SEGMENT INFORMATION (Continued)

The accounting policies of the reportable segments are consistent with the Group’s accounting policies. Segment result
represents profit before depreciation, amortisation, net finance costs and tax. This is the measure reported to the chief
operating decision maker for the purposes of resource allocation and assessment of segment performance.

(c) Segment assets
The following balance sheet and cash flow items are not allocated to operating segments as they are not reported to the
chief operating decision maker at a segment level:
- Assets
- Liabilities
- Capital expenditure

(d) Revenues from major products and services
The Group’s major products and services are transacted the same as its reportable segments i.e. healthcare, animal care and
corporate.

(e) Geographical information
The Group operates in two principal geographical areas; New Zealand (country of domicile) and Australia.

The Group’s revenue from external customers by geographical location (of the reportable segment) and information about its
segment assets (non-current assets excluding financial instruments, investments in associates and deferred tax assets) are
detailed below:

Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)

Revenue from external customers

New Zealand
791,880 761,251 1,509,094
Australia
3,150,781 3,198,953 6,116,760

3,942,661 3,960,204 7,625,854

Non-current assets

New Zealand
290,560 286,278 286,837
Australia
1,095,031 852,585 1,048,967

1,385,591 1,138,863 1,335,804

(f) Information about major customers
No revenues from transactions with a single customer amount to 10% or more of the Group’s revenues (December 2016: Nil,
June 2017: Nil).


7. BANK FACILITY AND BORROWINGS

The Group fully complies with and operates within the financial covenants under the arrangements with its bankers. At 31
December 2017 the Group had unutilised term facilities of $13.3m (December 2016: $86.3m, June 2017: $8.7m).
The Group also has a trade debtor securitisation facility of which $323.3m was unutilised at 31 December 2017 (December 2016:
$255.1m, June 2017: $292.0m).

14

EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2017

7. BANK FACILITY AND BORROWINGS (Continued)

As at 31 December 2017, the maturity profile of the Group’s term debt and securitisation facilities was:


Facility Amount Maturity
Term debt facilities $95.4m Within the next 12 months
Term debt facilities $273.4m 1-2 years
Term debt facilities $35.9m 2-3 years
Term debt facilities $55.0m 3-4 years
Securitisation facility $467.2m Within the next 12 months


8. FINANCIAL INSTRUMENTS

The Group enters into foreign currency forward exchange contracts to hedge trading transactions, including anticipated
transactions, denominated in foreign currencies and uses interest rate swaps to manage cash flow interest rate risk.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the
nature of the hedge relationship. The Group designates certain derivatives as cashflow hedges of highly probable forecast
transactions.




Fair value of derivative financial instruments
Six months
31 Dec 17
$’000
(Unaudited)
Six months
31 Dec 16
$’000
(Unaudited)
Year ended
30 Jun 17
$’000
(Audited)

Other financial assets – derivatives:

Foreign currency forward exchange contracts
219 576 19
Interest rate swaps
34 - -

253 576 19


Other financial liabilities – derivatives:

Foreign currency forward exchange contracts
(192) (132) (428)
Interest rate swaps
(2,070) (4,022) (2,567)

(2,262) (4,154) (2,995)

The Group has categorised these derivatives, both financial assets and financial liabilities, as Level 2 under the fair value
hierarchy contained within NZ IFRS 13.

The fair value of foreign currency forward exchange contracts is determined using a discounted cashflow valuation. Key inputs
include observable forward exchange rates, at the measurement date, with the resulting value discounted back to present
values.

Interest rate swaps are valued using a discounted cashflow valuation. Key inputs for the valuation of interest rate swaps are the
estimated future cash flows based on observable yield curves at the end of the reporting period, discounted at a rate that
reflects the credit risk of the various counterparties.

There have been no changes in valuation techniques used for either foreign currency forward exchange contracts or interest rate
swaps during the current reporting period.

During the period, on 24 October 2017, the group acquired a 14.1% equity interest in Medadvisor Ltd (ASX:MDR) for $11.8m.
This investment has been classified as an available for sale financial instrument and has been valued using level 1 under the fair
value hierarchy, therefore using the listed share price to determine fair value at the reporting date.

There were no transfers between fair value hierarchy levels during either the current or prior periods.

15

EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2017


9. ACQUISITION INFORMATION

The Group acquired a 100% equity interest in Alchemy Holdings Pty Ltd in June 2017. Due to the timing of the acquisition the
acquisition accounting fair value adjustments were identified as being on a provisional basis in the Group’s 30 June 2017 financial
statements.

During the current period, the acquisition accounting adjustments have been updated to reflect independent valuations
performed on the net assets recognised as part of the acquisition. As a result, the following adjustments have been recognised in
the current period: an increase in indefinite life intangible assets ($9.5m), a decrease in finite life intangible assets ($4.8m) and an
increase in deferred tax liabilities ($2.7m). Consequently the goodwill recognised on the acquisition has decreased by $2.0m to
$128.3m.


10. EVENTS AFTER BALANCE DATE

Subsequent to 31 December 2017, the Board approved an interim dividend to shareholders. For further details please refer to
Note 4.

In January 2018, the Group entered into a new three year securitisation facility (A$400m) which expires in January 2021.

16


EBOS GROUP LIMITED
DIRECTORY

CORPORATE HEAD OFFICE AUSTRALIA HEAD OFFICE
108 Wrights Road Level 7, 737 Bourke Street
PO Box 411 Docklands
Christchurch 8024 Melbourne 3008
New Zealand Australia
Telephone +64 3 338 0999 Telephone +61 3 9918 5555
E-mail: ebos@ebosgroup.com
Internet: www.ebosgroup.com

DIRECTORS
Mark Waller Chairman
Elizabeth Coutts Independent Director
Stuart McGregor
Sarah Ottrey Independent Director
Peter Williams


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Private Bag 92119 GPO Box 3329
Auckland 1142 Melbourne, Victoria 3001
New Zealand Australia
Telephone: +64 9 488 8777 Telephone: 1800 501 366

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