EBOS GROUP LIMITED — Investor Presentation 2015

Oct 12, 2015

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Patrick Davies – CEO EBOS Group Ltd 13 October 2015

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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.

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

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Introduction

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If you needed access to medicine in either New Zealand or Australia over the past year – whether through your local pharmacy, in a hospital, an aged care facility or even for your pet through a vet – it’s likely EBOS played a vital role in getting that medicine to you.

That’s because, every year, EBOS moves millions of healthcare products and is involved in hundreds of thousands of interactions throughout the healthcare system, playing our part in improving the wellbeing of communities right across the length and breadth of both countries.

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EBOS Group – Snapshot

EBOS Group 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 products marketer and distributor.

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# combined pharmacy and hospital # Hospital pharmaceutical wholesaler in pharmaceutical wholesaler in Australia New Zealand 1 and New Zealand 1

# Pharmacy wholesaler in New Zealand 1

# Hospital pharmaceutical wholesaler in 1 Australia

# Pharmacy wholesaler in Australia 2

Comprehensive distribution network in the animal care market, with pet brands and speciality retail outlets

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Rankings based on EBOS management estimates of market positions and share

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EBOS Group Overview Trans-Tasman Healthcare and Animal Care portfolio

~$2 billion

market capitalisation Dual listed on NZX and ASX

$6.1 billion

FY15 revenue Australia 78%, NZ 22%

$196.7 million

FY15 EBITDA Australia 81%, NZ 19%

$133.8 million

FY15 Operating Cash Flow

42 locations in Australia and New Zealand

2,400+ employees

38,000+

customers

122,000+ product SKUs

$316.9 million

Net debt at 30 June 2015

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All currency amounts are in New Zealand dollars unless stated otherwise

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EBOS Group Overview – Market channels

HEALTHCARE Community Pharmacy Institutional Healthcare Pharmacy Wholesale Pharmacy Services

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Pharmacy Retail

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ANIMAL CARE Contract Logistics Pet Care and Veterinary Product Retail

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Consumer Products

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EBOS is the trusted partner to governments, businesses and consumers across our wide range of operations in healthcare and animal care

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Wholesale
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Segment and Geographic earnings overview Earnings contribution weighted to Healthcare and Australian based

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Gross Operating Revenue
Net Revenue
22%
Australia
New Zealand
78%
EBITDA
19%
Australia
New Zealand
81%
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Strong Financial Results in FY15

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+7.2% +14.2%
constant constant
currency currency
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+16.9% +17.2%
constant
currency
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Cash Flow

EBOS has an excellent portfolio of strong cash generating businesses

NZ$m	FY15 FY14 Var$ Var%
EBITDA Interest paid Tax paid Net workingcapital and other movements	196.7 175.4 21.3 12.1% (21.9) (27.1) 5.2 19.2% (53.0) (29.6) (23.4) (78.8%) 12.0 (4.6) 16.6 360.9%
Cash from Operating Activities Capital expenditure(net)	133.8 114.2 19.6 17.2% (14.5) (30.5) 16.0 52.4%
Free Cash Flow	119.3 83.7 35.6 42.5%
Cash conversion days Debtor days Inventory days Creditor days	Jun-15 Dec-14 Jun-14 47 46 45 35 34 35 58 56 55 24 24 25
Cash conversion days

• Focus on tight working capital management led to record Operating cash flow of $133.8m being generated in FY15.

• Tax paid of $53.0m is $23.4m higher than last year due to the prior year being unusually low as a result of the Symbion acquisition.

• Capex in FY15 includes $7.8m for the new Melbourne distribution centre (FY14: $20.6m).

• Cash conversion cycle of 24 days remains industry leading.

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Net Debt and Gearing

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400 40%
350 35%
368
350
300 30%
316 317
250 25%
26.7% 26.9%
24.4%
200 23.2% 20%
150 15%
100 10%
50 5%
0 0%
Dec-13 Jun-14 Dec-14 Jun-15
Net Debt Gearing ratio (Net debt)
Gearing ratio
Net debt (NZ$m)
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• Net Debt of $316.9m at June 2015.

• Net Debt : EBITDA reduced to 1.6x at June 2015 (1.8x at June 2014).

• Reduction in the Gearing ratio from 24.4% at June 2014 to 23.2% at June 2015.

• Interest cover increased to 9.0x at Jun-15 (6.5x at June 2014).

• Net finance costs reduced by $5.2m or 17.7% (constant FX).

• Ample headroom available in debt facilities to undertake further acquisitions.

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EBOS strategy

• Protect and grow our market leading positions in pharmacy in both New Zealand and Australia

• across wholesale, consumer products and pharmacy retail

• Pursue further growth in the institutional healthcare market

• Grow EBOS’s portfolio of ancillary healthcare businesses

• Increase our presence in the animal care sector through the development of our own brands - Masterpet, Vitapet, BlackHawk and our Lyppard veterinary distribution business and through strategic acquisitions

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Continue disciplined focus on appropriately priced, strategic acquisitions

Deliver superior financial returns to our shareholders

• Continued investment in operational and supply chain excellence

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Track record of delivering shareholder value

Earnings Per Share (cents)

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80.0
70.8
70.0
62.8
60.0
53.6
46.8
50.0 45.4
41.8
37.6 [41.1 39.5 ]
40.0
32.5 31.7
30.0
20.0
10.0
-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Dividends Per Share (cents)
50.0 47.0
45.0
41.0
40.0
35.0 34.0 32.5
31.0 [31.5 ]
30.0
25.0
21.5 [22.5 22.5 23.0 25.0 ]
20.0
15.0
10.0
5.0
-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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* Excludes special dividends paid

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Track record of delivering shareholder value

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Share Price (NZ$)
13.00
12.00
11.00
+159.6%
10.00 (excluding dividends)
9.00
8.00
7.00
6.00 +18.9%
10 year compound annual return
5.00
(including dividends)
4.00
3.00
30-Sep-05 30-Sep-06 30-Sep-07 30-Sep-08 30-Sep-09 30-Sep-10 30-Sep-11 30-Sep-12 30-Sep-13 30-Sep-14 30-Sep-15
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