EBOS GROUP LIMITED — AGM Information 2017

Oct 16, 2017

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95th Annual Meeting

17 October 2017

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Important Information

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’s 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 Operating Revenue, EBIT, EBITA, EBITDA, Free Cash Flow, Net Debt and Return on Capital Employed. Because they are not defined by GAAP or IFRS, EBOS’s 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's business, readers are cautioned not to place undue reliance on these non-GAAP financial measures.

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

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2017 Annual Meeting 1 Chairman – Mr Mark Waller

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Agenda

• Welcome

• Introducing members of the Board

• Presentations

• Mark Waller, Chairman

• Patrick Davies, Chief Executive Officer

• Business of meeting

• Conclusion

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Board of Directors

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Mark Waller Independent Chairman of Directors

Appointed 1987 Appointed Chairman 2015

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Elizabeth Coutts Independent Director Joined 2003

Stuart McGregor Non-executive Director Joined 2013

Sarah Ottrey Independent Director Joined 2006

Peter Williams Non-executive Director Joined 2013

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FY17 Summary Results

	Reported	Reported	Reported		Underlying ¹	Underlying ¹	Underlying ¹
NZD $m	FY 2017	FY 2016	% change		FY 2017	FY 2016 ²	% change
Revenue	7,625.9	7,101.5	7.4%		7,625.9	6,967.2	9.5%
EBITDA	234.4	225.5	4.0%		241.4	220.4	9.6%
NPAT	133.3	127.0	4.9%		138.6	124.2	11.6%
Total Dividends	63 cents	58.5 cents	7.7%		63 cents	58.5 cents	7.7%

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Note 1: Excludes transaction costs of $7.0m before tax ($5.3m after tax and non-controlling interests) incurred on acquisitions undertaken in FY17. Note 2: FY2016 financials shown on a constant currency basis

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It is now 4 years post the transformational Symbion deal We continue to deliver results while reinvesting for growth

Investments made (NZ$m)

Results achieved

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Underlying EPS
Underlying EBITDA
cents per share
NZ$m
$470m+ over
FY17 241 FY17 91.3
last 4 years
FY16 225 FY16 84.0
4 Year 4 Year
CAGR CAGR
+11.2% +13.3%
FY15 197 FY15 70.8
FY14 175 FY14 62.8
203.6 20.00 EBOS Share Price (NZ$) – Last 4 Years performance
18.00
16.00 Share price
88.1 +82.3%
3.5 70.9
14.00
35.3 37.6
15.4 17.6 12.00 Annualised
FY14 FY15 FY16 FY17 return 21.1%
Capital expenditure Acquisitions and investments 10.00 (inc. dividends)
8.00
30-Jun-13 31-Dec-13 30-Jun-14 31-Dec-14 30-Jun-15 31-Dec-15 30-Jun-16 31-Dec-16 30-Jun-17
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Business Segment overview

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ANIMAL CARE
15%
Animal Care
15%
Consumer
Products 6%
Pharmacy 50%
Contract (Wholesale
Logistics 8% and Retail)
Institutional
Healthcare
21%
HEALTH CARE
85%
Data based on FY17 Gross Operating Revenue
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Revenue Split – FY17
New
Zealand
Australia
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EBITDA Split – FY17
New
Zealand
Australia
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2 2017 Annual Meeting CEO – Mr Patrick Davies

A-Frame automatic picking system, Symbion Keysborough facility, 9 Melbourne, Australia

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EBOS Strategic Approach

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Our Healthcare and Animal Care strategic focus is centred on

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Investing for Growth

Leading Market Positions

Disciplined Capital Management

Two types of investments:

• Acquisitions – we have a successful track record of deal execution.

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• Internal Capex – investment to lift productivity, manage costs and deliver better customer service.

We aim to have positions of scale in the markets we operate in and maximise opportunities across our wide range of business segments.

• Cash generation to drive scope for further investment which allows for dividends to be paid in the range of 60-70% of Net Profit After Tax.

• Acquisitions focus on supporting the Group’s return on capital employed.

We focus on delivering profitable growth and superior returns

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Investment Highlights

Acquisitions

Capacity Expansion

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TWC Investment: October 2016

• Merger of Chemmart and Terry White has created of one of the largest retail pharmacy store networks in Australia.

Significant progress made in FY17 on two key capex projects in Australia

• New Wholesale Distribution site

• Brisbane, Queensland

• New Contract Logistics site

• Sydney, New South Wales

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HPS Acquired: June 2017

• Australia’s largest provider of outsourced pharmacy services to Hospitals.

• Acquisition expands EBOS’ existing leading position in the Hospital channel.

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Construction progress: new Brisbane wholesale distribution centre

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Corporate video

• The corporate video that will be shown at the Annual Meeting can be viewed on the EBOS Group website at www.ebosgroup.com

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FY17 Segment Performance - Healthcare

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NZ$m FY17 FY16 Var Healthcare segment Revenue 7,202.7 6,686.4 7.7% EBITDA 208.8 195.0 7.1% EBIT 187.1 174.1 7.5% EBITDA% 2.90% 2.92% -2pts	Constant FX Var
	9.8% 9.5% 10.0% -2pts

• Revenue increase of $516m or 9.8% (constant FX): – Australia up 11.8% (or 4.1% excluding hepatitis C medicine sales).

• New Zealand up 2.4%.

• EBITDA increase of $13.8m or 9.5% (constant FX): – Australia up 8.8%.

• New Zealand up 10.8%.

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EBITDA
NZ$m
209
195
170
153
FY14 FY15 FY16 FY17
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FY17 Segment Performance – Animal care

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NZ$m	FY17 FY16 Var 423.2 415.0 2.0% 44.7 42.3 5.7% 41.2 38.6 6.7% 10.57% 10.19% 38pts	Constant FX Var
Animal Care segment Revenue EBITDA EBIT EBITDA%		4.2% 7.6% 8.6% 38pts

• EBITDA increase of $2.4m or 7.6% (constant FX) attributable to:

• Revenue growth from our key branded products;

  • Black Hawk sales growth of 48%

  • Vitapet sales growth of 8.5%

• Significant additional investment in marketing and advertising undertaken in FY17.

EBITDA

NZ$m

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FY18 Trading Update

• We have made a positive start to the first quarter of the 2018 financial year, with growth from both our Healthcare and Animal care segments.

• On the basis of our current trading performance, we expect constant currency, underlying EBITDA for the 2018 financial year to grow by approximately 10% on the prior year.

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3 2017 Annual Meeting Business of the Meeting

Selection of our branded products from Red Seal, Faulding, Vitapet and BlackHawk 16

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Item 1

Annual Report and Financial Statements

• To consider and receive the annual report and the financial statements for the year ended 30 June 2017 and the audit report thereon.

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Item 2

Director re-election – Stuart McGregor

To consider the re-election of Stuart McGregor as a director of the Company. Stuart McGregor retires by rotation and being eligible offers himself for reelection.

Stuart McGregor BCOM, LLB, MBA Non-executive Director

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Stuart McGregor was appointed to the EBOS Group Limited Board in July 2013. He is a member of the Audit and Risk Committee. Stuart was educated at Melbourne University and the London School of Business Administration, gaining degrees in Commerce and Law. He has also completed a Masters of Business Administration.

Currently Stuart is Chairman of Donaco International Ltd, an ASX listed company. He is also Chairman of Powerlift Australia Pty Ltd, and C B Norwood Pty Ltd and director of Symbion Pty Ltd.

Over the last 30 years, Stuart has been Company Secretary of Carlton United Breweries, Managing Director of Cascade Brewery Company Limited in Tasmania and Managing Director of San Miguel Brewery Hong Kong Limited. In the public sector, he served as Chief of Staff to the Minister for Industry and Commerce in the Australian Federal Government and as Chief Executive of the Tasmanian Government’s Economic Development Agency. He was formerly a director of Primelife Limited from 2001 to 2004.

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Item 3 Director re-election – Sarah Ottrey

To consider the re-election of Sarah Ottrey as a director of the Company. Sarah Ottrey retires by rotation and being eligible offers herself for re-election.

Sarah Ottrey

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BCOM

Independent Director

Sarah Ottrey was appointed to the EBOS Group Limited Board in September 2006. She is a

member of the Remuneration Committee. Sarah is a director of Comvita Limited, Whitestone Cheese Limited, Skyline Enterprises Limited and Sarah Ottrey Marketing Limited. She is a past board member of the Public Trust and the Smiths City Group. Sarah has held senior marketing management positions with Unilever and Heineken.

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Item 4 Auditor fees and expenses

• That the directors be authorised to fix the fees and expenses of Deloitte as the auditor of the Company.

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2017 Annual Meeting

Thank you for attending Please join us for refreshments

www.ebosgroup.com