EBOS GROUP LIMITED — AGM Information 2018

Oct 15, 2018

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96[TH] ANNUAL MEETING 16 October 2018

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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’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, NPAT, Underlying EBITDA, Underlying NPAT, Underlying Earnings per Share, 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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2

2018 Annual Meeting Chairman – Mr Mark Waller

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AGENDA

 Welcome

 Introducing members of the Board

• Presentations

• Mark Waller, Chairman

 John Cullity, Chief Executive Officer

 Business of meeting

 Conclusion

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4

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

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Stuart McGregor Non-executive Director Joined 2013

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Sarah Ottrey Independent Director Joined 2006

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Peter Williams Non-executive Director Joined 2013

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FY18 SUMMARY RESULTS

				Constant FX
		Reported		Underlying
NZ$m	FY18	FY17	Var%	Var%2
Revenue	7,609.5	7,625.9	(0.2%)	(2.5%)
EBITDA	272.4	234.4	16.2%	10.3%
NPAT1	149.6	133.3	12.2%	5.5%
Earnings per Share (cents)	98.5c	87.8c	12.1%	5.4%
Total Dividends (cents)	68.5c	63.0c	8.7%

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Note 1: Net profit after tax and non-controlling interests. Note 2: Calculated on a constant FX and underlying basis that excludes transaction costs incurred on prior year acquisitions.

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5 YEARS POST SYMBION DEAL

We continue to deliver results whilst reinvesting for growth

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Investments made (NZ$m)
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Results achieved

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5 Year Underlying EBITDA 5 Year Underlying EPS
$569m over NZ$m cents per share
last 5 years FY18 272.4 FY18 98.5
FY17 241.4 FY17 91.3
5 Year 5 Year
FY16 CAGR 225.5 FY16 CAGR 84.0
+11.6% +11.9%
FY15 196.7 FY15 70.8
FY14 175.4 FY14 62.8
EBOS Share Price (NZ$) Last 5 Years performance
203.6 24.00
22.00
20.00
33.6
18.00
88.1
3.5 70.9
16.00
63.2
35.3 37.6 14.00
15.4 17.6 Share Price
FY14 FY15 FY16 FY17 FY18 12.00 +137%
Capital expenditure Acquisitions and investments 10.00
8.00
30/06/13 30/06/14 30/06/15 30/06/16 30/06/17 30/06/18
Share Price (NZD)
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7

BUSINESS SEGMENT OVERVIEW

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Gross Operating Revenue (GOR) FY18 FY18 Revenue by country
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14%
New
21%
Zealand
86%
14%
79% Australia
5% 48%
8%
FY18 GOR Mix
FY18 EBITDA by country
New
25% Zealand 18%
82% Australia
Health Care Pharmacy Contract Logistics
(Wholesale and retail)
Animal Care Institutional Healthcare Consumer Products
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8

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 Disciplined Capital Positions Management

Two types of investments:

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

• 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 businesses wherever possible.

• 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 and new business focus on supporting the Group’s return on capital employed.

We focus on delivering profitable growth and superior returns

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2018 Annual Meeting CEO – Mr John Cullity

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2018 STRATEGIC HIGHLIGHTS

Investments and New Business

Investments of $33.6m made in FY18

• 14.1% investment in ASX listed, MedAdvisor Ltd (October 2017). Australia’s leading digital medication management company.

• Acquisition of Gran’s Remedy (March 2018). New Zealand leading foot care consumer health brand.

• Acquisition of Ventura Health (April 2018). Management company of Australian pharmacy retail group.

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New Sydney Contract Logistics facility.

• HPS acquired in June 2017 and fully integrated.

Capex of $63.2m in FY18

• A new 25,000m[2] Contract Logistics facility in Sydney opened in June 2018.

• New highly automated wholesale distribution centre opened in Brisbane on 15 October 2018.

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New Brisbane wholesale distribution facility

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2019 BUSINESS & INVESTMENT UPDATE

We have made an active start to the FY19 year

Previously announced – 2 July 2018 – Chemist Warehouse tender win

• In July 2018, EBOS was notified it won the tender to act as the exclusive third party distributor of pharmaceutical products to more than 400 Chemist Warehouse and My Chemist stores in Australia.

• EBOS expects to enter into a five-year supply agreement, to take effect from 1 July 2019, with the potential for an extension of a further 3 years.

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• EBOS estimates that sales to the Chemist Warehouse Group stores will generate approximately A$1 billion in revenue in the first year of operations.

New acquisition

• In September 2018, EBOS acquired Warner & Webster , a medical & surgical supplies wholesaler with operations in Victoria and South Australia. The business focuses on servicing Primary Care (GP’s) and Aged care and strengthens our EBOS Healthcare business in Australia.

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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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FY18 SEGMENT PERFORMANCE

HEALTHCARE

				Constant FX
NZ$m	FY18	FY17	Var	Var
Revenue	7,197.6	7,202.7	(0.1%)	(2.3%)
EBITDA	235.9	208.8	13.0%	10.4%
EBIT	205.2	187.1	9.7%	7.2%
EBITDA%	3.28%	2.90%	38pts	38pts

EBITDA increase of $27.1m or 10.4% (constant FX):

• Australia up 11.9% assisted by the full year contributions of HPS (acquired June 2017) and TWC (acquired October 2016).

• New Zealand up 4.6%.

FY14 to FY18 – EBITDA and EBITDA %

Revenue decrease of $5.1m or 2.3% (constant FX):

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• Australia down 4.4% due to FY18 hepatitis C revenue being $364m lower than last year (constant FX). Monthly HepC sales were steady in the second half of FY18.

• New Zealand revenue up 6.2%, with growth from all business units.

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FY18 SEGMENT PERFORMANCE

ANIMAL CARE

NZ$m	FY18	FY17	Var	Constant FX Var
Revenue	411.9	423.2	(2.7%)	(5.1%)
EBITDA	49.8	44.7	11.3%	9.0%
EBIT	46.2	41.2	12.2%	9.8%
EBITDA%	12.08%	10.57%	151pts	151pts

FY14 to FY18 – EBITDA and EBITDA %

EBITDA increase of $5.1m or 9.0% (constant currency):

• Black Hawk sales growth in Australia of 23%.

• Earnings were negatively impacted by $3.3m: due to costs associated with the launch of Black Hawk in New Zealand and exiting the Mars agency business.

9% FY17: 20%

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

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FY19 TRADING UPDATE

• We have made a solid start to the first quarter of FY19, with strong growth in Animal care and modest underlying growth in Healthcare attributable to increasingly competitive market dynamics.

• On the basis of our current trading performance, we expect the Group to generate underlying earnings growth in FY19 with further growth forecast into FY20 as we commence servicing the Chemist warehouse volumes.

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16

2018 Annual Meeting Business of the Meeting

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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 2018 and the audit report thereon.

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ITEM 2

Director re-election – Elizabeth Coutts

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

Elizabeth Coutts

ONZM, BMS, CA Independent Director

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[Elizabeth Coutts was appointed to the EBOS Group Limited Board in July 2003. She is Chairman of the ] Audit and Risk Committee and a member of the Remuneration Committee. She is Chair of Ports of Auckland Ltd, Urwin & Co Limited, Oceania Healthcare Ltd and Skellerup Holdings Limited and Director of the Yellow Group of Companies and Tennis Auckland Region Incorporated and Member, Marsh New Zealand Advisory Board. She is President of the Institute of Directors Inc.

Elizabeth is a former Chairman of Meritec Group, Industrial Research and Life Pharmacy Limited, former director of Air New Zealand Limited, the Health Funding Authority and Sanford Limited, former Deputy Chairman of Public Trust, former board member of Sport NZ, former member of the Pharmaceutical Management Agency (Pharmac), former Commissioner for both the Commerce and Earthquake Commissions, former external monetary policy adviser to the Governor of the Reserve Bank of New Zealand and former Chief Executive of the Caxton Group of Companies.

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ITEM 3

Director re-election – Peter Williams

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

Peter Williams Non-executive Director

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Peter Williams was appointed to the EBOS Group Limited Board in July 2013. Peter has been an executive of The Zuellig Group since 2000. Peter is a director of Pharma Industries Limited, Green Cross Health Limited and CB Norwood Pty Ltd. He is also a director of Cambert, a company marketing health and personal care products in South East Asia.

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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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21

Thank you for attending Please join us for refreshments

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www.ebosgroup.com

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