EBOS GROUP LIMITED

Presentation UBS Australasia Conference

Patrick Davies

Chief Executive Officer

7 November 2016

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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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.

Combined pharmacy and hospital pharmaceutical wholesaler in Australia and New Zealand No.1

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Pharmacy wholesaler in New Zealand

No.1

Pharmacy wholesaler in Australia

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No.2

Hospital pharmaceutical wholesaler in Australia and New Zealand

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No.1

3PL/4PL Pharmaceutical provider in New Zealand. Full range of services in Australia.

No.1

Comprehensive distribution network in the animal care market, with pet brands, speciality retail outlets and a leading veterinary wholesaler.

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Rankings based on EBOS Group management current estimates of market positions and share

EBOS Group Overview Trans-Tasman Healthcare and Animal Care portfolio

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~$2.5 billion 42
Market capitalisation Locations in Australia and
Dual listed on NZX and ASX New Zealand
$7.1 billion 2,700+
FY16 revenue Employees
Australia 79%, NZ 21%
$225.5 million 38,000+
FY16 EBITDA Customers
Australia 80%, NZ 20%
$224.1 million 122,000+
FY16 Operating Cashflow Product SKUs
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All currency amounts are in New Zealand dollars unless stated otherwise

Demonstrating strong growth

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Revenue
NZ $m
7,101
6,068 11.1%
5,757
CAGR
FY14 FY15 FY16
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Operating Cash Flow

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NZ $m
224
134
114
FY14 FY15 FY16
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NPAT
NZ $m
127
106 17.4%
92 CAGR
FY14 FY15 FY16
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Return on Capital Employed
16.3%
13.7%
12.8%
FY14 FY15 FY16
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Earnings Per Share
Cents per
share
84.0
15.7%
70.8
CAGR
62.8
FY14 FY15 FY16
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Dividends per share
Cents per
share
58.5
47.0
41.0
FY14 FY15 FY16
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EBOS Group Overview - Market Channels

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ANIMAL
HEALTHCARE
CARE
Community Pharmacy & Institutional Multinational Pet Speciality,
Pharmacy Grocery Healthcare Suppliers Grocery & Vet
PHARMACY CONSUMER CONTRACT
PHARMACEUTICAL PRODUCT
WHOLESALE PRODUCTS LOGISTICS
PRODUCT
PHARMACY RETAIL MEDICAL RETAIL
DEVELOPMENT
PRODUCT
IMPLEMENTATION & VET WHOLESALE
MARKETING
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Business overview

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ANIMAL CARE
16%
Animal Care
16%
Consumer
Products 6%
Contract
Pharmacy
Logistics
49%
9%
(Wholesale
and Retail)
HEALTHCARE
Institutional
84%
Healthcare
20%
Data based on Gross Operating Revenue FY16
which comprises revenue less cost of sales and
write down of inventory
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Healthcare division

EBOS Group has a diversified trans-tasman portfolio with significant scale that offers multiple solutions to customers and end-consumers

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COMMUNITY CONSUMER INSTITUTIONAL
PHARMACY PRODUCTS HEALTHCARE
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CONTRACT
LOGISTICS
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Key themes:

An ageing population and an increase in chronic disease
• Significant growth in high value specialty medicines across multiple channels
Governments seeking cost savings through reforms to healthcare budgets
Manufacturers seeking end to end solutions

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Healthcare
EBITDA
NZ$m
195
170
153
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FY14 FY15 FY16
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Retail Pharmacy

A key provider of support services to retail pharmacy in Australia and New Zealand.

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Industry is seeing continuing consolidation
Majority shareholder in the newly merged Chemmart & Terry White Group.

The merger will create one of Australia’s largest retail pharmacy networks with approximately 500 pharmacies and A$2 billion in retail turnover

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25% shareholder in Good Price Pharmacy Warehouse
Strategic relationship with Green Cross Health in NZ
Provider of support services to major independent brands in Australia and New Zealand

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Services to independent pharmacies through Pharmacy Choice in Australia and Vantage in NZ

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Investing in our distribution network

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EBOS Group is committed to on-going investment in our distribution network to maintain a state-of- the-art distribution network
Technology increases productivity and helps ensure all customers and endconsumer demands and requirements are met
EBOS Group has announced plans to build a new wholesale distribution facility in Brisbane, Queensland and to also build a new Contract Logistics facility in New South Wales.

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Animal care division

Comprehensive distribution network in the animal care market, with pet brands, specialty retail outlets and a leading veterinary wholesaler

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PRODUCT
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RETAIL
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VET WHOLESALE

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Developing and growing our own brands ranged in Pet Specialty and Grocery Markets, along with holding key agency relationships

50% owner of Animates in NZ

Key themes:

The “humanisation of pets” – people spending more money on their pets
Increasing shift in spending towards premium products
• Industry growth remains attractive and ahead of GDP

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Number 2 Vet Wholesaler in Australia

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Animal care
EBITDA
NZ$m
42
37
29
FY14 FY15 FY16
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EBOS Group 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:

External acquisitions – we have a strong history of deal execution

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Internal Capex – investment to lift productivity, manage cost 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 wherever possible

Cash generation to drive scope for further investment which allows for dividends paid in the range of 60-70% of Net Profit After Tax
Acquisitions focus on improving Group returns on capital employed

We focus on delivering profitable growth and superior returns

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FY17 outlook

As recently stated at our Annual meeting on 19 October 2016, we have made a positive start to the first quarter of FY17, notwithstanding the higher NZD:AUD exchange rate which has been evident.
On the basis of our current trading performance we expect constant currency, underlying net profit after tax for the 2017 financial year to grow by 7%-10% on the prior year.

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End

contact

Mark Connell Group Treasurer and Investor Relations Manager EBOS Group Limited

mobile +61 402 995519 email [email protected]

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EBOS GROUP LIMITED Investor Presentation 2016

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