EBOS GROUP LIMITED — Annual Report 2020

Aug 19, 2020

EBOS GROUP LIMITED APPENDIX 4E

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Final Report for the Year Ended 30 June 2020

RESULTS FOR ANNOUNCEMENT TO THE MARKET

The following information is presented in accordance with ASX listing rule 4.3A and should be read in conjunction with the attached EBOS Group Limited Financial Report for the year ended 30 June 2020.

1. DETAILS OF THE REPORTING PERIOD AND THE PREVIOUS CORRESONDING PERIOD

Current period: Previous corresponding period

The year ended 30 June 2020 The year ended 30 June 2019

This report and the attached Consolidated Financial Report are presented in Australian dollars, being the Group’s presentation currency.

2. RESULTS FOR ANNOUNCEMENT TO THE MARKET

Group Results	30 June 2020	30 June 2019	Change
(Audited)	AUD $000	AUD $000	%
Revenue	8,765,540	6,930,360	26.5%
Earnings before depreciation, amortisation, net
finance costs and tax expense (EBITDA)	333,599	250,410	33.2%
Depreciation and amortisation	73,146	32,061	>100%
Earnings before interest and tax (EBIT)	260,453	218,349	19.3%
Profit before tax (PBT)	230,057	193,015	19.2%
Net profit after tax (NPAT)	161,516	136,727	18.1%
Net profit after tax (NPAT) attributable to owners
of the Company	162,518	137,700	18.0%
Weighted average number of shares	161,557	153,320	5.4%
Basic EPS – (CPS)	100.6	89.8	12.0%
Net tangible asset backing per ordinary share – ($)	($1.10)	$0.42
Underlying EBITDA
(refer reconciliation below)	296,555	261,622	13.4%
Underlying Net profit after tax (NPAT)
attributable to the owners of the Company
(refer reconciliation below)	168,323	144,436	16.5%
Underlying EPS – (CPS)	104.2	94.2	10.6%

For supplementary comments on the Group’s financial results refer to the Results Presentation and Media Release issued 20 August 2020.

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EBOS GROUP LIMITED APPENDIX 4E

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Dividends	Amount per NZ Cents	Franked amount per
	Per Share	security to 30% tax
		rate
Final dividend payable 9 October 2020	40.0c	100%
Final dividend – previous corresponding period	37.0c	100%
Key dates for the 2020 Final Dividend
Ex-dividend date		24 September 2020
Record date		25 September 2020
		(5.00pm NZDT)
Dividend payment date		9 October 2020
Other Comments

The final dividend will be imputed to 25% for New Zealand tax resident shareholders, and a supplementary dividend paid to eligible non-resident shareholders.

3. RECONCILIATION OF REPORTED TO UNDERLYING EARNINGS

Reconciliation of Reported vs Underlying Earnings	30 June 2020	30 June 2019	Change
(Audited)	AUD $000	AUD $000	%
Reported EBITDA	333,599	250,410	33.2%
Add back one-off costs incurred during the period1	2,600	11,212	(76.8%)
Deduct Impact of NZ IFRS 16_Leases_	(39,644)	-	>100%
Underlying EBITDA	296,555	261,622	13.4%
Reported Net Profit after Tax (NPAT) attributable
to owners of the Company	162,518	137,700	18.0%
Add back one-off costs incurred during the period1
(net of tax and after non-controlling interests)	336	6,736	(95.0%)
Add back Impact of NZ IFRS 16_Leases_after tax	5,469	-	>100%
Underlying Net Profit after Tax (NPAT)
attributable to owners of the Company	168,323	144,436	16.5%

1 One-off items comprise M&A costs of $2.6m on a pre-tax basis, adjusted to $0.3m on a post-tax basis which is predominantly due to a legislative tax change in NZ in regards to the reintroduction of the tax deductibility of depreciation on buildings. 2019: One-off costs included transaction costs incurred on M&A, warehouse transition and restructuring costs, net of gain on sale from the disposal of surplus property,

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 one-off items.

For supplementary comments on the Group’s financial results refer to the Results Presentation and Media Release issued 20 August 2020.

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EBOS GROUP LIMITED APPENDIX 4E

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4. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Please refer to the Consolidated Statement of Comprehensive Income in the attached Consolidated Financial Report for the year ended 30 June 2020.

5. CONSOLIDATED BALANCE SHEET

Please refer to the Consolidated Balance Sheet in the attached Consolidated Financial Report for the year ended 30 June 2020.

6. CONSOLIDATED CASH FLOW STATEMENT

Please refer to the Consolidated Cash Flow Statement in the attached Consolidated Financial Report for the year ended 30 June 2020.

7. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Please refer to the Consolidated Statement of Changes in Equity in the attached Consolidated Financial Report for the year ended 30 June 2020.

8. DIVIDENDS PAID AND DECLARED

Group Results	Amount	Amount	Total
(Audited)	Per Share	Per Share	Amount	Date Paid /
	(NZ$ Cents)	(A$ Cents)	($)	Payable
Dividends declared in respect of
the year ended 30 June 2020
2020 final dividend	40.0 cents	37.4 cents	$60,846,000	9 October 2020
Dividends paid during the year
ended 30 June 2020
2019 final dividend	37.0 cents	35.0 cents	56,378,000	11 October 2020
2020 Interim dividend	37.5 cents	35.9 cents	57,763,000	3 April 2020
	74.5 cents	70.9 cents	114,141,000
Dividends paid during the year
ended 30 June 2019
2018 final dividend	35.5 cents	32.4 cents	49,057,000	12 October 2018
2019 Interim dividend	34.5 cents	33.2 cents	50,279,000	5 April 2019
	70.0 cents	65.6 cents	99,336,000

Dividends are approved by the Board in New Zealand dollars. Dividends recognised in the Statement of Changes in Equity are converted from New Zealand dollars to Australian dollars at the exchange rate applicable on the date the dividend was approved. Unrecognised dividends are converted at the exchange rate applicable on the reporting date.

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EBOS GROUP LIMITED APPENDIX 4E

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9. DIVIDEND REINVESTMENT PLAN

The Company's dividend reinvestment plan ('DRP') will be operable for this dividend. The EBOS Board has approved a discount of 2.5% to the Volume Weighted Average Price ('VWAP') for the shares to be issued under the DRP for the 2020 final dividend.

Other key dates for the 2020 final dividend

DRP participation election date 28 September 2020 DRP pricing period (calculation of VWAP) 28 September 2020 to 2 October 2020 (both inclusive)

A copy of the DRP plan document is available on the Company's website www.ebosgroup.com.

10. ENTITIES ACQUIRED DURING THE YEAR

On 30 September 2019, the Group acquired a 100% equity interest in LMT Surgical Pty Ltd and National Surgical Pty Ltd. For further details refer to Note B2 of the attached Consolidated Financial Report for the year ended 30 June 2020.

There were no disposals or loss of control over any entities for the year ended 30 June 2020.

11. ASSOCIATES AND JOINT VENTURES

The Group equity accounted the following associate entities at 30 June 2020.

Name of business	Proportion of shares and voting rights
Animates NZ Holdings Limited	50.00%
Good Price Pharmacy Franchising Pty Limited	44.18%
Good Price Pharmacy Management Pty Limited	44.18%

The Group acquired a further 18.41% of shares and voting rights in Good Price Pharmacy Franchising Pty Limited and Good Price Pharmacy Management Pty in April 2020 taking the proportion of shares held from 25.77% to 44.18%.

Income from the individual Associates has not been separately disclosed as it is considered immaterial. Total income from Investments in Associates for the year ended 30 June 2020 was $3,355,000 (2019: $4,203,000).

For further details refer to Note F2 of the attached Consolidated Financial Report for the year ended 30 June 2020.

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EBOS GROUP LIMITED APPENDIX 4E

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12. OTHER SIGNFICANT INFORMATION

Refer to the attached Consolidated Financial Report for the year ended 30 June 2020.

13. FOREIGN ENTITIES

The Consolidated Financial Statements are presented in Australian dollars and comply with International Financial Reporting Standards (“IFRS”).

14. COMMENTARY ON THE RESULTS FOR THE PERIOD

14.1 The earnings per security and the nature of any dilution.

• Please refer to Note A4 of the attached Consolidated Financial Report for the year ended 30 June 2020.

• 14.2 Returns to shareholders including distributions and buy backs.

• Please refer to Notes E1 and E2 of the attached Consolidated Financial Report for the year ended 30 June 2020.

• 14.3 Significant features of operating performance.

• Please refer to the attached Consolidated Financial Report for the year ended 30 June 2020 and to the Media Release and Results Presentation issued on 20 August 2020.

14.4 The results of segments that are significant to an understanding of the business as a whole.

• Please refer to Note A2 of the attached Consolidated Financial Report for the year ended 30 June 2020.

• 14.5 A discussion of trends in performance.

• Please refer to the attached Consolidated Financial Report for the year ended 30 June 2020 and to the Media Release and Results Presentation issued on 20 August 2020.

• 14.6 Any other factors which have affected the results in the period or which are likely to affect results in the future, including those where the effect could not be quantified.

• Please refer to the Results Announcement Media Release and Results Presentation issued on 20 August 2020.

15. INDEPENDENT AUDIT OPINION

The Consolidated Financial Statements included in the Consolidated Financial Report have been audited and the Auditor has given an unmodified opinion.

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EBOS GROUP LIMITED APPENDIX 4E

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16. AUDIT COMMITTEE

The entity has a formally constituted Audit and Risk Committee.

ANNUAL MEETING

The annual meeting will be held as follows:

Place: Addington Raceway & Events Centre, 75 Jack Hinton Drive, Addington, Christchurch, New Zealand Tuesday, 13 October, 2020 Date: 2:00pm Time: Thursday, 20 August 2020 Approximate date the annual report will be available: (via website: www.ebosgroup.com)

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