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

7 May 2024
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
7 May 2024

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 theaccuracy, 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 futurematter. 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, Underlying 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 presentedbyother 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 statementsfor the year ended 30 June 2023 and the
consolidated financial statements for the half year ended 31 December 2023.
EBOS and its businesses are subject to known and unknown risks, some of which are beyond the control of EBOS and/or may not be fully mitigated. A summary of key
financial and non-financial risks identified by EBOS can be found under ‘Risk Management’ at https://www.ebosgroup.com/who-we-are/corporate-governance. This should
not be considered an exhaustive list.
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

65%
35%
Australia
NZ and Southeast Asia
EBOS SNAPSHOT
Snapshot:
4Notes: 1. Market capitalisation as at 30 April 2024. 2. As at 30 June 2023. 3. Sector split based on FY23 GOR and geography split based on FY23 Revenue.
Primary businesses:
EBOS Group is a leading diversified Healthcare and Animal Care group
Segments
3
:
~$6bn
market capitalisation
1
$12.2bn
FY23 revenue
5,000+
employees
2
108
locations across ANZ
and SEA
2
$582m
FY23 Underlying EBITDA
Community Pharmacy
- Pharmacy wholesale
- TerryWhite Chemmart
Institutional Healthcare
- Medical Technology
- Medical consumables distribution
- Hospital medicine distribution
Contract Logistics
Pet Brands
Vet Wholesale
Pet Retail
Healthcare
•
Animal Care
Geographies
3
:
41%
37%
10%
12%
Community Pharmacy
Institutional Healthcare
Contract Logistics
Animal Care

INVESTMENT THEMES
5
EBOS has had a strong track record of growth, yield and shareholder returns
Defensive growth sectors
Scale and leading positions
Diversified group
Multiple growth drivers
Strong financial track record

MULTIPLE GROWTH DRIVERS
6
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

Medical consumables
distribution
Retail pharmacy
management
Medical technology
distribution
Animal Care brands
✓Targets: established, profitable, growing and well managed businesses
✓Size: bolt-on acquisitions through to larger opportunities
✓Geography: Australia, New Zealand and increasingly Southeast Asia
✓Financial metrics: disciplined adherence to investment criteria focused on
EPS accretion, ROCE and a strong balance sheet
STRATEGIC ACQUISITIONS
Acquisition objectives
7
Target profile
Acquisitions diversify and grow our earnings and are value accretive to shareholders
Key focus areas
VET
Healthcare
Animal
Care
20+ acquisitions over the last 10 years
1.Strengthen our core businesses
2.Extend existing businesses into new segments (e.g. customer,
product, geographies)
3.Consider adjacencies closely aligned to existing healthcare and
animal care businesses

STRONG FINANCIAL TRACK RECORD
Underlying EBITDA
1,2
:
(A$m)
8
Notes: 1. Underlying earnings exclude the impact of one-off items. All amounts are presented inclusive of IFRS 16 Leases except for periods FY19 and prior. 2. CAGR calculation is
inclusive of FY15-FY23. 3. Total shareholder return calculated as at 30 April 2024 and includes dividends. Dividend yield based on dividends per share paid over the last 12 months
divided by share price as at 30 April 2024.
Underlying EPS
1,2
:
(A$ cents per share)
EBOS has delivered consistent financial performance over the long term
Shareholder returns
3
:
Return on capital employed:
(ROCE, %)
DPS:
(NZ$ cents per share)
28%
3 year TSR
354%
10 year TSR
~3%
dividend yield
15.6% CAGR
2
11.2% CAGR
2
~70% avg. payout
10.7% CAGR
2
15% target











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F F F F F F F F F
F

H1 FY24 SUMMARY RESULTS
9
Strong organic earnings growth
ROCE in-line with target
EBOS achieved strong growth reflecting the benefits of its diversified portfolio
Notes:
1.Calculated in accordance with banking covenants and excludes IFRS 16 lease impacts.
$mUnderlyingVarStatutoryVar
Revenue6,582.5

7.1%6,582.5

7.1%
EBITDA313.2

8.3%303.1

4.8%
EBIT259.9

8.5%236.7

4.7%
Net Profit After Tax152.4

7.6%136.2

3.0%
EPS (cents)79.5c

6.6%71.0c

2.1%
DPS (NZ cents)57.0c

7.5%
EBITDA margin4.76%

5bp
ROCE (%)15.1%

70bp
Net Debt : EBITDA (x)
1
2.06x

(0.30x)
~10% Underlying EBITDA growth if normalised to
exclude Chemist Warehouse Australia

NEAR-TERM GROWTH STRATEGY
10
We are making strong progress on the key focus areas of our near-term strategy to increase earnings
Base business growth
New Community
Pharmacy revenue
opportunities
Cost reduction
initiatives
M&A
EBOS’ earnings excluding
Chemist Warehouse Australia
continue to grow strongly,
reflecting our diverse portfolio
Positive traction with new
potential customers over H1
FY24 and continued focus given
changing industry dynamics
Cost reduction initiatives have
commenced with respect to the
Group’s ~$1bn cost base
Superior Pet Food Co. and
Transmedic transactions
completed in H1 FY24.
Pipeline remains active

DIVERSE AND WELL ESTABLISHED GROWTH STRATEGIES
11
EBOS has multiple organic and inorganic growth drivers across the Group that are well established
DivisionOrganicCapexM&A
Community
Pharmacy
•Continue to build on positive traction with new and
potential customers given recent changes in industry
dynamics
•Continued TWC network expansion
•Continue to realise the benefits of our
best-in-class distribution network across
Australia and New Zealand
•Limited M&A opportunities in this
division
Institutional
Healthcare
•Further growing our medical technology distribution
business
•Continue our growth as a leading wholesaler of
medicines to hospitals, including high value specialty
drugs
•Further growing our medical consumables
distribution business
•Investing in new facilities across Australia
and New Zealand to support customer
growth
•Further grow our medical technology
and medical consumables
distribution businesses through
acquisitions; capitalising on
fragmented markets
Contract Logistics•Continue to expand our contract logistics services to
pharmaceutical and other clients
•Capitalise on increasing onshoring of medicines
stock
•Investing in new facilities across Australia
and New Zealand in response to market
growth opportunities
•Limited M&A opportunities in this
division
Animal Care•Capitalise on the strength of our leading pet food
and treats brands, Black Hawk and Vitapet, including
continued growth through new product
development
•Leverage the continued rise of pet specialty retail
•Continue to realise the benefits of our
investment in our pet food manufacturing
facility, including supply chain advantages
•Explore opportunities to grow
through additional strategic
acquisitions
Group•Preserve and improve EBITDA margins
•Review our cost base to identify efficiencies across
the Group
•Explore opportunities to expand our
activities in Southeast Asia and in
attractive adjacent segments

SUSTAINABILITY SNAPSHOT
1
Notes
1. Achievement of net zero Scope 1 emissions relates to our Australian and New Zealand operations.
12

DIVISION
UPDATE –
HEALTHCARE
13

INDUSTRY TRENDS – HEALTHCARE (AUSTRALIA)
14
Notes: 1. Sourced from 2023 Intergenerational Report (Australia). 2. Australian Government Department of Health and Aged Care, PBS expenditure - Section 85 and Section 100
including doctors bag and under co-payment prescriptions
The growing and ageing population continues to provide a structural tailwind
Projected Australian population (m)
1
PBS funding
2
65+ age group expected to grow > 2x the
rate of under 65
Australian health expenditure
1
65+ age group are ~17% of the population
and account for ~40% of health spend
~60%
~40%
Under 6565 +
PBS funding has grown at a CAGR of
~6.5% over the last 10 years
2012-132013-142014-152015-162016-172017-182018-192019-202020-212021-222022-23
21.9
31.0
4.6
9.4
26.5
40.5
20232063
Under 6565 +

Alignment to large and fast growing pharmacy brands
and banner groups
Opportunities to win share given change in competitive
dynamics and continued strong service levels
Focus on productivity and efficiency opportunities
Growth of new high value specialty medicines
•A leading pharmaceutical wholesaler in Australia and New Zealand
•~30% share in Australian ethical wholesaling segment
1
and ~50% in
New Zealand
•Best-in-class distribution network across Australia and New Zealand
•Services ~3,000 pharmacies, including TerryWhite Chemmart, one of
Australia’s largest and leading pharmacy networks
COMMUNITY PHARMACY WHOLESALE
Business description:
15
Notes: 1. Based on PBS ethical products and excludes directs and excluding the Chemist Warehouse Australia contract. 2. Reflects H1 FY24 results for the entire Community
Pharmacy division (including TerryWhite Chemmart). 3. Growth vs. prior corresponding period.
Drivers and dynamics:
H1 FY24 performance (all of Community Pharmacy
2
):
Pharmacy customers
~3,000
1
2
3
4
Revenue growth
3
+4.9%
GOR growth
3
+4.9%

Ongoing expansion of the TWC network
Care Clinics across the network to provide increased
scope of patient services (vaccinations and other)
Continued investment in supplier programs, private label
initiatives, marketing and technology (i.e. myTWC App)
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 with store
numbers approaching 600
•Focus on health advice and differentiated service
•EBOS is the franchisor and wholesaler to the TWC network
TERRYWHITE CHEMMART
Business description:
16Notes: 1. TerryWhite Chemmart results reported within the Community Pharmacy division.
Drivers and dynamics:
TWC full scope of pharmacist services
1
2
3
4
Medication management,
therapeutic substitution
and adaptation
Vaccination, injections
& other medication
administration
Continued dispensing
and renewal
Autonomous
prescribing
Protocol /structured
prescribing
Pathology and point-
of-care testing

H1 FY24 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 sectors
•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 pharmaceutical
distribution network
INSTITUTIONAL HEALTHCARE (EX. MEDICAL TECHNOLOGY)
Business description:
17Notes: 1. Reflects H1 FY24 results for all of Institutional Healthcare division (including Medical Technology). 2. Growth vs. prior corresponding period.
Drivers and dynamics:
1
2
3
4
Symbion Hospitals
revenue growth
2
+15%
Revenue growth
2
+11.7%
GOR growth
2
+6.0%

Ageing population in developed markets and increasing
wealth in developing markets driving surgical spend
Focus on reinforcing scale and leading positions in key
therapeutic channels across the region
Fragmented markets both in ANZ and Southeast Asia
provide bolt-on acquisition opportunities
•A leading independent distributor of medical devices, consumables
and equipment in Asia Pacific with significant presence in several
therapeutic areas
•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:
18Note: Medical Technology results reported within the Institutional Healthcare division.
Drivers and dynamics:
1
2
3
Key therapeutic focus areas:
CARDIOLOGYOPTHALMOLOGYRADIATION THERAPYBLOOD MGMT
SPINEORTHOPAEDICSCEREBROVASCULARAESTHETICSALLOGRAFTS
•9 countries across
Australia, New Zealand and
Southeast Asia
•39 locations
•1,100+ employees
•400+ OEM relationships
•4,000+ surgeon and
clinician relationships
Geographic presence in Asia Pacific

SOUTHEAST ASIA STRATEGY
19
EBOS MedTech’s Asia Pacific presence provides a unique offering to global OEMs looking to access the region
Attractive dynamics of Southeast Asia
•Large population with growing
wealth and healthcare spend
•Independent distributors with
on-the-ground presence and
local knowledge provide efficient
market access for global OEMs
•Transmedic is one of the only
pan-Asian independent medical
device distributors
•Fragmented sector is well suited
to bolt-on acquisition strategy
The long-term potential of Southeast Asia Growth strategy
Build further scale organically in
existing therapy channels and
geographies
Bolt-on acquisitions aligned to
our strategy
Selectively expand into new
geographies and therapy
channels
CountryPopulation (m)
1
Per capita healthcare spend
2
$Growth
Singapore
5.95,29311%
Malaysia
33.56497%
Thailand
70.348610%
Philippines
114.227114%
Vietnam
100.82304%
Indonesia
280.021410%
Australia
26.99,4075%
New Zealand
5.36,5416%
1
3
2
Notes: 1. Population data from IMF website. 2. Per capita healthcare spend from The World Bank. $ spend is for 2021 converted from US$ to A$ at AUDUSD 0.75. Growth rates
shown are 2017 – 2021 CAGR.

Opportunity to grow share in Australia and New Zealand
Recent investment in warehouse infrastructure provides
capacity for growth
Government focus on improving inventory cover
onshore resulting in pharmaceutical manufacturers
requirement to hold more stock in country
Only scaled 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
•Network of five distribution centres in NSW and New Zealand,
including two recently completed sites in Sydney and Auckland
CONTRACT LOGISTICS
Business description:
20Notes: 1. Growth vs. prior corresponding period.
Drivers and dynamics:
1
2
3
4
H1 FY24 performance:
Specialised warehouse
facilities
5
GOR growth
1
-2.0%

DIVISION
UPDATE –
ANIMAL
CARE
21

5.1
6.4
3.8
5.3
8.9
11.7
20192022
# of dogs# of cats
INDUSTRY TRENDS – ANIMAL CARE
22Source: 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%

Premium food category has grown whilst discretionary
categories have traded softly in current consumer
spending environment
Expanding existing strong brands into new product
development opportunities and new categories
Continued acquisition opportunities to expand and
diversify (e.g. Superior Pet Food provided entry into dog
rolls)
Continuing to realise benefits of our state-of-the-art pet
food manufacturing facility – supply chain advantage,
efficiencies and new product development
•A leading owner, marketer and distributor of animal care brands
•Provide quality nutrition and wellbeing for pets through:
•Pet brands: a leading premium pet food brand in the specialty
channel (Black Hawk) and a leading pet treats brand in grocery
channel (Vitapet)
•Vet wholesale: Lyppard is a leading distributor to vets
•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:
23Notes: 1. Growth vs. prior corresponding period.
Drivers and dynamics:
1
2
3
4
H1 FY24 performance:
Underlying EBITDA
margin growth
1
+180bp
Underlying
EBITDA

growth
1
+8.6%

NEW PRODUCT DEVELOPMENT
24
Core product competenciesRecent new products to market and category expansion
Dry adult dog food
Dog treats
Existing branded portfolio generates ~$300m revenue
Vitapet food – grocery
New product development provides potential to drive incremental growth
Superior dog rolls and treats
Black Hawk Healthy BenefitsBlack Hawk cat food extension

CONCLUSION
25

CONCLUSION
26
EBOS has had a strong track record of growth, yield and shareholder returns
Defensive growth sectors
Scale and leading positions
Diversified group
Multiple growth drivers
Strong financial track record

Questions

APPENDIX
28

GLOSSARY OF TERMS AND MEASURES
Except where noted, common terms and measures used in this document are based upon the following definitions:
29
TermDefinition
RevenueRevenue 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.
EBITDAEarnings before interest, tax, depreciation and amortisation.
Underlying EBITDAEarnings before interest, tax, depreciation, amortisation adjusted for one-off items.
EBITEarnings before interest and tax.
Underlying EBITEarnings before interest and tax and adjusted for one-off items and LifeHealthcare PPA amortisation (non-cash).
PBTProfit before tax.
Underlying PBTProfit before tax adjusted for one-off items and LifeHealthcare PPA 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 company adjusted for one-off items and LifeHealthcare PPA 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 period in accordance with IAS ‘Earnings per share’.
Underlying EPSUnderlying NPAT divided by the weighted average number of shares on issue during the period.
Net Debt
Consists of total borrowings and deferred consideration where payable based on current year earn-out requirements, less cash and cash 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 adjustment forstrategic investments).
IFRSInternational Financial Reporting Standards.
PPAPurchase Price Accounting

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