Macquarie Australia Conference Presentation

EBOS Group Limited. NZBN 9429031998840
108 Wrights Road, Addington, Christchurch, New Zealand, 8024
Level 7, 737 Bourke Street, Docklands, Victoria, Australia, 3008
Phone: +61 3 9918 5555, Fax: +61 3 9918 5588.
www.ebosgroup.com


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 further information please contact:
Martin Krauskopf
Executive General Manager, Strategy and M&A
+61 3 9918 5555

Authorised for lodgement with NZX and ASX by Janelle Cain, General Counsel, EBOS Group
Limited.



About EBOS Group
EBOS Group Limited NZBN 9429031998840 (NZX/ASX Code: EBO) is the largest and most diversified
Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical
products. It is also a leading Australasian animal care brand owner, product marketer and distributor.

INVESTOR
PRESENTATION
MACQUARIE AUSTRALIA
CONFERENCE
3 May 2023

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 ismade as to the accuracy,
completeness or reliability of the information. In addition, neither EBOS 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. To the extent permitted by law, 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 securities and may not be relied upon in connection with any purchase of EBOS securities.
This presentation contains a number of non-GAAP financial measures, including Gross Profit, Gross Operating Revenue, EBIT, EBITA, EBITDA, NPAT, Underlying
EBITDA, Underlying EBIT, Underlying NPAT, Underlying Earnings per Share, Free Cash Flow, Interest cover, Net Debt, UnderlyingNet Debt and Return on
Capital Employed. Because they are not defined by GAAP or IFRS, EBOS’ calculation of these measures may differ from similarlytitled measures presented by
other companies and they should not be considered in isolation from, or construed as an alternative to, other financial measuresdetermined 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 statementsfor the year ended 30 June
2022 and the consolidated financial statements for the half year ended 31 December 2022.
All currency amounts are in Australian dollars unless stated otherwise.
All amounts are presented inclusive of IFRS16 Leases, except for periods FY19 and prior, unless stated otherwise.
Underlying results exclude the impact of one-off items.
2

GROUP
OVERVIEW
3

Healthcare
87%
Animal Care
13%
EBOS SNAPSHOT
Snapshot:
4Notes: 1. Market capitalisation as at 31 March 2023. 2. As at 30 June 2022. 3. Sector split based on FY22 GOR and geography split based on FY22 Revenue.
Businesses:
EBOS Group is a leading diversified Healthcare and Animal Care group
Segments
3
:
~NZ$9bn
market capitalisation
Ranked ~5
th
/ ~65
th
on NZX / ASX
1
$10.7bn
FY22 revenue
~5,000
employees
2
109
locations across ANZ
and SEA
2
$437m
FY22 Underlying EBITDA
Community Pharmacy
(incl. TerryWhite Chemmart)
Institutional Healthcare
Contract Logistics
Pet Brands
Vet Wholesale
Pet Retail
Healthcare
•
Animal Care
Geographies
3
:
Australia
80%
NZ and other
20%

15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23
Share price NZ$
INDEX INCLUSION
5Source: Factset. Share price shown to 31 March 2023. 1. Average daily value traded calculated over the preceding 6 month period as at 31 March 2020 and 31 March 2023.
Over the last 3 years EBOS has grown significantly and is now included in key indices in Australia, New Zealand and globally
Market cap
(NZ$)
~$3.6bn~$8.9bn
ASX All OrdsNZX10ASX300MSCI World
Average daily value
1
increased ~3x over this period

INVESTMENT THEMES
6
EBOS has had a strong track record of growth, yield and shareholder returns
Defensive growth sectors
Scale and leading positions
Diversified group
Proven value creation strategy
Multiple growth drivers
Strong financial track record

OUR TRANS-TASMAN HISTORY
7
EBOS’ history stretches back 100+ years in New Zealand and 175+ years in Australia
1845
Francis Hardy Faulding
opened his first
pharmacy in Adelaide,
South Australia
1922
Early Brothers
Trading Co. is
founded
2011
EBOS expands into
Animal Care through the
acquisition of pet brands
business, Masterpet
EBOS acquires
Symbion and lists
on the ASX
2013
Early Bros Dental &
Surgical Supplies is
listed on NZX
1960
Australia
Symbion expands into
Animal Care through the
acquisition of veterinary
wholesaler, Lyppard
2011
2007
EBOS acquires
Pharmacy Retailing
New Zealand
2021
EBOS releases
its inaugural
Sustainability
Report
2022
EBOS expands in medical
devices through the acquisition
of LifeHealthcare
Symbion is formed via
the demerger of Mayne
Group into Mayne
Pharma and Symbion
2005
2022
EBOS officially opens its
new pet food
manufacturing facility in
Parkes, NSW
New Zealand
Australia

A DIVERSE GROUP
8Notes: 1. H1 FY23 GOR. 2. GOR CAGR represents FY19-FY22.
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
Primary
businesses
Pharmacy Wholesale
TerryWhiteChemmart
Other Pharmacy
Management Brands
Hospital Medicines Wholesale
Medical Consumables
Distribution
Hospital Pharmacy
Management
Contract LogisticsPet Brands
Vet Wholesale
Pet Retail
Medical Technology
Healthcare
Community Pharmacy
Institutional Healthcare
Contract Logistics
Animal Care
GOR
contribution
1
GOR CAGR
2
11% 22%24%12%
42%
37%
10%
12%

VALUE CREATION STRATEGY
9
Notes: 1. ~70% average payout ratio over FY14 to FY22. Dividend imputed to 25% in New Zealand and dividend fully franked in Australia. 2. EPS CAGR is underlying and is
measured over FY14-FY22. 3. DPS yield calculated as reported DPS divided by average LTM share price as at 31 December 2022; represents broad average depending on share
price fluctuations.
Our businesses generate organic growth and significant cash flow, which funds our strategy of investing for growth, as well as
dividends for shareholders
DIVIDENDS
ORGANIC GROWTH
AND DISCIPLINED CASH FLOW
MANAGEMENT
INVESTING FOR GROWTH
~2-3% DPS YIELD
3
~10.8% EPS CAGR
2
~70% PAYOUT RATIO
1
(IMPUTED / FRANKED)
MAXIMISING OPPORTUNITIES FROM
OUR LEADING BUSINESSES
GROWTH CAPEX AND ACQUISITIONS

MULTIPLE GROWTH DRIVERS
10
EBOS leverages multiple growth drivers across its businesses
Key growth drivers
Key growth businesses
TerryWhite Chemmart
Contract Logistics
Pharmacy Wholesale
Pet Brands
Medical Technology
Distribution
Medical Consumables
Distribution
Organic growth
Investing for growth
Industry
growth
Industry
share growth
Capex in
operational
infrastructure
M&ATotal growth

✓Targets: established, profitable, well managed and growing businesses
✓Size: bolt-on through to larger opportunities
✓Geography: Australia, New Zealand and increasingly Southeast Asia
✓Disciplined adherence to investment criteria
STRATEGIC ACQUISITIONS
~20 acquisitions since 2014
11Notes: 1. EBOS has a 44% interest in the management company of Good Price Pharmacy Warehouse.
Acquisition strategy
Acquisitions diversify and grow our earnings and are value accretive to shareholders
Key focus areas
Medical technology
distribution
Medical consumables
distribution
Animal Care brands
VET
Healthcare
Animal
Care
1

41
47
59
63
69
72
78
89
96
53
FY14FY15FY16FY17FY18FY19FY20FY21FY22H1
FY23
STRONG FINANCIAL TRACK RECORD
Underlying EBITDA
1
:
(A$m)
12
Notes: 1. Underlying earnings exclude the impact of one-off items. 2. CAGR calculation is inclusive of FY14-FY22. 3. ROCE for H1FY23 incorporates the ~$1,167m acquisition of
LifeHealthcare. 4. Total shareholder return calculated as at 31 March 2023 and includes dividends.
Underlying EPS
1
:
(A$ cents per share)
EBOS has delivered consistent financial performance through the cycle
Total shareholder returns
4
:
Return on capital employed:
(ROCE, %)
DPS:
(NZ$ cents per share)
15%
1 year
123%
3 year
560%
10 year
13.5% CAGR
2
11.2% CAGR
2
~70% avg. payout
57
66
77
86
90
94
101
115
129
75
FY14FY15FY16FY17FY18FY19FY20FY21FY22H1
FY23
12.9%
14.6%
16.7%
17.1%
16.3%
15.9%
17.1%
18.0%
18.6%
14.4%
FY14FY15FY16FY17FY18FY19FY20FY21FY22H1
FY23
3
159
182
208
228
250
262
336
367
437
289
FY14FY15FY16FY17FY18FY19FY20FY21FY22H1
FY23
10.8% CAGR
2
15% target

H1 FY23 SUMMARY RESULTS
13
EBOS achieved another record half year result, driven by organic growth and contribution from acquisitions
Notes: 1. Underlying earnings for the 31 December 2022 period exclude the amortisation (non-cash) expense attributable to the LifeHealthcareacquisition purchase price accounting
(PPA) of finite life intangible assets ($13.5m pre tax, $9.4m post tax). Underlying earnings for the 31 December 2021 period exclude transaction costs incurred on M&A ($7.8m pre tax,
$7.4m post tax).
2. Comparisons shown to prior corresponding period with exception of Net Debt : EBITDA, which is compared to June 2022.
$mUnderlying
1
VarStatutoryVar
2
Revenue6,145.717.0%6,145.717.0%
EBITDA289.239.3%289.244.7%
EBIT239.541.6%226.040.1%
NPAT141.629.6%132.229.8%
EPS (cents)74.512.0%69.613.3%
DPS (NZ cents)53.0 12.8%
EBITDA margin4.71%76bp
ROCE (%)14.4%(3.8%)
Net debt : EBITDA (x)1.76x0.18x
2
Strong organic earnings
growth
Substantial
contribution from FY22
acquisitions
Gearing reduced and
within target range
Increased dividends to
shareholders
Double-digit EPS
growth
ROCE in-line with
expectations after
LifeHealthcare
acquisition

MARGIN PRESERVATION IN INFLATIONARY ENVIRONMENT
14
EBOS successfully preserved and increased margins during the recent inflationary period
•Key cost line items are cost of goods sold,
labour, freight and rent
•We experienced increases in these key cost
items to varying degrees across our
businesses due to the effects of inflation
•Each business implemented various
strategies to mitigate these increases and
preserve margins
•The Group benefitted from operating
leverage and acquisitions of higher growth,
higher margin businesses
•In H1 FY23, EBITDA margins were steady in
the core business and expanded through
acquisitions
Commentary
Group Underlying EBITDA margin by half year period
3.8%
3.8%
4.0%
4.0%
4.0%
4.2%
4.7%
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H2 FY22H1 FY23

SUSTAINABILITY SNAPSHOT
15
1

DIVISION
UPDATE
16

INDUSTRY TRENDS –HEALTHCARE
17
Notes: 1. Sourced from 2021 Intergenerational Report (Australia). 2. Sourced from Australian Institute of Health and Welfare,Medicines in the health system for 2020 -21.
3. Sourced from Australian Institute of Health and Welfare, Admitted patient care data for 2020-21.
The growing and ageing population continues to provide a structural tailwind
Projected Australian population by age (m)
1
21.4
23.1
25.4
27.9
29.9
4.3
5.6
6.8
7.7
8.8
25.7
28.7
32.2
35.6
38.7
20212031204120512061
Under 65Over 65
Prescription drug usage by age (years)
2
Hospital admission by age (years)
3
20%
37%
43%
0 - 3435 - 6465+
10%
36%
54%
0 - 3435 - 6465+
Over 65 age group
growing at ~2x the
rate of under 65

5.1
6.4
3.8
5.3
8.9
11.7
20192022
# of dogs# of cats
INDUSTRY TRENDS –ANIMAL CARE
18Source: Animal Medicines Australia
The industry has seen considerable growth, driven by increased pet ownership, humanisation of pets and product
premiumisation
Pet population in Australia has grown (millions)Proportion of pet owning households has increased
+25%
+42%
61%
69%
20192022
+32%

Alignment to large and fast growing pharmacy brands
and banner groups driving above-market growth
Strong service levels and competitive dynamics provided
opportunity for share wins over last ~12-18 months
Continual investment in distribution network to optimise
productivity
Growth of new high value specialty medicines
•Leading pharmaceutical wholesaler in Australia and New Zealand
•40%+ share in Australian ethical wholesaling segment
1
and 50%+ in
New Zealand
•Best-in-class distribution network across Australia and New Zealand
•Services 3,800+ pharmacies, including Chemist Warehouse and
TerryWhiteChemmart, among Australia’s largest and leading
pharmacy networks
COMMUNITY PHARMACY WHOLESALE
Business description:
19
Notes: 1. Based on PBS ethical products and excludes directs. 2. Reflects H1 FY23 results for the entire Community Pharmacy division (including TerryWhiteChemmart). 3. Growth
vs. prior corresponding period.
Drivers and dynamics:
H1 FY23 performance (all of Community Pharmacy
2
):
Pharmacy customers
3,800+
1
2
3
4
Revenue growth
3
+18.4%
GOR growth
3
+17.2%

Ongoing expansion of the TWC network
Launch of Care Clinics across the network for increased
scope of patient services (vaccinations and other)
Continued investment in marketing and technology
(myTWCApp, e-commerce) to deliver strong brand
recognition and customer engagement
Best-in-class support and training for pharmacists and
superior back office systems
•One of Australia’s leading community pharmacy networks
•Focus on health advice and differentiated service
•EBOS is the franchisor and wholesaler to the TWC network
TERRYWHITE CHEMMART
Business description:
20Notes: 1. Store numbers as at 31 December 2022. 2. TerryWhiteChemmartresults reported within the Community Pharmacy division. 3. Growth vs. prior corresponding period.
Drivers and dynamics:
H1 FY23 LFL sales
growth
3
+15.8%
Stores added over last
4 years
+130
TWC store network
1,2
:
540+ stores
1
2
3
4
120+
135+
100+
95+
60
20+

H1 FY23 performance (all of Institutional Healthcare
1
):
Exposure to specialty medicines, a higher growth market
Increase presence of own branded consumables
Expansion of facilities to support growth
Continued focus area for acquisition strategy given
fragmented market
•A leading distributor and wholesaler of hospital medicines and
medical consumables
•Trusted, long-term partner to hospitals, primary care and aged care
•Broad third-party product offering and growing own branded
medical consumables offering
•Superior scale and efficiencies from ability to utilise pharmacy
distribution network
•Substantial historic growth complemented by bolt-on acquisitions
INSTITUTIONAL HEALTHCARE (EX. MEDICAL TECHNOLOGY)
Business description:
21Notes: 1. Reflects H1 FY23 results for all of Institutional Healthcare division (including Medical Technology). 3. Growth vs.prior corresponding period.
Drivers and dynamics:
1
2
3
4
GOR margin
growth
3
560bp
Revenue growth
3
+19.4%
GOR growth
3
+81.3%

Reinforcing scale and leading positions in key
therapeutic channels across the region
Pent-up demand for surgeries post COVID-19
disruptions
Fragmented markets both in ANZ and Southeast Asia
provide bolt-on acquisition opportunities
Continued investment in allograft manufacturing
capability and new product development
•A leading independent distributor of medical devices, consumables
and equipment in Asia Pacific with significant presence in several
therapeutic areas
•Operations in Australia, New Zealand, Singapore, Indonesia,
Malaysia, Thailand, Hong Kong, Philippines and Vietnam
•Manufacturer and distributor of allograft tissue products in Australia
and New Zealand for use in a variety of surgical procedures
•Diverse and long tenured partnerships with major global OEMs and
mid-sized innovators
•Highly experienced sales team who typically have significant medical
experience
MEDICAL TECHNOLOGY
Business description:
22Note: Medical Technology results reported within the Institutional Healthcare division.
Drivers and dynamics:
1
2
3
4
Key therapeutic focus areas:
CARDIOLOGYOPTHALMOLOGYNUCLEAR THERAPYBLOOD MGMT
SPINEORTHOPAEDICSCEREBROVASCULARAESTHETICSALLOGRAFTS

Opportunity to grow share in Australia
Continued expansion of warehouse infrastructure
Government focus on improving the depth of medicines
inventory cover onshore resulting in pharmaceutical
manufacturers requirement to hold more stock in
country
Only pure-play healthcare provider of medicine logistics
across both Australia and New Zealand
•Specialised healthcare contract logistics provider in Australia and
New Zealand
•Trusted partner for pharmaceutical manufacturers
•World class facilities and systems with temperature control, vaults
and cold chain solutions
•Existing network of three distribution centres in NSW and New
Zealand with two new builds underway:
•Sydney and Auckland sites expected to be completed in 2023
CONTRACT LOGISTICS
Business description:
23Notes: 1. Growth vs. prior corresponding period.
Drivers and dynamics:
1
2
3
4
H1 FY23 performance:
Sites following completion
of current builds
5
GOR growth
1
+26.0%

Supportive market tailwinds of increased pet population,
humanisation of pets and product premiumisation
Expanding existing strong brands into new product
development opportunities
Continued investment in marketing to grow brand
awareness
Realising benefits of new pet food manufacturing facility
–supply chain advantage, efficiencies and new product
development
•Leading owner, marketer and distributor of animal care brands
•Provide quality nutrition and wellbeing for pets through:
•Pet brands: #1 premium pet food brand in the specialty channel
(Black Hawk) and #1 pet treats brand in grocery channel (Vitapet)
•Vet wholesale (Lyppard): partner of choice for vet clinics
•Pet retail: 50% joint venture in Animates, a leading pet retailer
and owner of vet clinics in New Zealand
•Invested ~$80m in owned manufacturing facility in Parkes, NSW
(completed in 2022)
ANIMAL CARE
Business description:
24Notes: 1. Growth vs. prior corresponding period.
Drivers and dynamics:
1
2
3
4
H1 FY23 performance:
Underlying EBITDA
margin growth
1
+340bp
Revenue growth
1
+6.3%
Underlying
EBITDAgrowth
1
+31.5%

CONCLUSION
25
EBOS has had a strong track record of growth, yield and shareholder returns
Defensive growth sectors
Scale and leading positions
Diversified group
Proven value creation strategy
Multiple growth drivers
Strong financial track record

Questions

APPENDIX
27

GLOSSARY OF TERMS AND MEASURES
Except where noted, common terms and measures used in this document are based upon the following definitions:
28
TermDefinition
RevenueRevenue from the sale of goods and the rendering of services.
Gross OperatingRevenue (GOR)Revenue less cost of sales and the write-down of inventory.
EBITDAEarnings before interest, tax, depreciation and amortisation.
Underlying EBITDAEarnings before interest, tax, depreciation, amortisationadjusted forone-off items.
EBITEarnings before interest and tax.
Underlying EBITEarnings before interestand tax and adjusted for one-off items and LifeHealthcarePPA amortisation (non-cash).
PBTProfit before tax.
Underlying PBTProfit before tax adjusted for one-off items and LifeHealthcarePPA amortisation (non-cash).
NPATNet Profit After Tax attributable to the owners of the company.
Underlying NPATNet Profit After Tax attributable to the owners of the companyadjusted for one-offitems and LifeHealthcarePPA amortisation (non-cash and after tax).
One-off itemsTransaction costs incurred on M&A activities.
Earnings per share (EPS)Net Profit after tax divided by the weighted average number of shares on issue during the periodin accordance with IAS 33 ‘Earnings per share’.
Underlying EPSUnderlying NPAT divided by the weighted average number of shares onissue during the period.
Net Debt
Consists of total borrowings and deferred consideration where payable based on current year earn-out requirements, less cash andcash equivalents and excludes IFRS16 lease
liabilities.
Net Debt : EBITDA
Ratio of net debt at period end to the last 12 months Underlying EBITDA, adjusting for pre acquisition earnings of acquisitions for the period. Calculation is applied as per the Group’s
banking covenants.
Return on Capital
Employed (ROCE)
Underlyingearnings before interest, tax and amortisationof finite life intangibles for 12 months (EBITA) divided by closing capital employed(excluding IFRS16 Leases and including a
pro-rata adjustmentforstrategicinvestments).
IFRSInternational FinancialReporting Standards.
PPAPurchase Price Accounting

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