EBOS GROUP LIMITED — Investor Presentation 2018

Aug 22, 2018

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INVESTOR PRESENTATION FY18 FINANCIAL RESULTS 23 August 2018

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

The information contained in this presentation should be considered in conjunction with the consolidated financial statements for the period ended 30 June 2018.

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

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Group Financial Results

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FY18 SUMMARY RESULTS

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Revenue EBITDA NPAT $7.6b $272.4m $149.6m -0.2% +16.2% +12.2% (-2.5% Constant FX) (+10.3% Constant FX and (+5.5% Constant FX and Underlying) Underlying) ROCE EPS Dividends per share 15.8% 98.5c 68.5c -0.6% +12.1% +8.7% (+5.4% Constant FX and Underlying) FY18 Guidance Exceeded: 10.3% No underlying adjustments underlying, constant currency recorded in FY18 EBITDA growth.

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STRATEGIC HIGHLIGHTS

Investments and New Business

Capital Management & Leadership

Investments of $33.6m made in FY18

Capex of $63.2m in FY18

• 14% 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 footcare consumer brand.

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

• New highly automated wholesale distribution centre to open in Brisbane in H1 FY19.

Cash & Debt Management

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

• Disciplined cash management with strong cash flow before capex of $176m, up $32 million on prior year.

• HPS acquired in June 2017 and fully integrated.

• Black Hawk remains one of the fastest growing premium pet food brands in Australia and was successfully launched into the NZ market in FY18.

• Net Debt to EBITDA ratio improved to 1.74x (June 2017: 1.79x).

• Extended the tenor of our core debt facilities and entered into a new 3 year securitisation facility.

Announcement post 30 June 2018

Leadership Transition

• Symbion has been notified that it has won the tender with Chemist Warehouse to be the exclusive third party distributor of pharmaceutical products in Australia for 5 years, effective from 1 July 2019.

• John Cullity replaced Patrick Davies as CEO and Shaun Hughes commenced as CFO.

• New management structure implemented with Brett Barons, CEO Symbion and Sean Duggan, CEO Animal Care & Consumer Brands.

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FY18 FINANCIAL PERFORMANCE

							Constant FX			Revenue decrease was driven by
		NZ$m	FY18	FY17	Var		Var			lower hepatitis C medicine sales
		Statutory Results								(which were $364m lower than
		Revenue	7,609.5	7,625.9	(0.2%)		(2.5%)			FY17, constant FX).
		Gross Operating Revenue	856.6	745.3	14.9%		12.4%			Revenue excluding hepatitis C
		EBITDA	272.4	234.4	16.2%		13.6%			medicine sales grew by $172m or 2.5% (constant FX).
		EBIT	237.6	208.6	13.9%		11.4%
		Net Finance Costs	22.7	19.0	(19.4%)		(16.9%)			Underlying EBITDA increase of $31.0m or 10.3% (constant FX):
		Profit Before Tax	214.9	189.6	13.4%		10.9%
		Net Profit After Tax1	149.6	133.3	12.2%		9.7%			 Healthcare up 10.4%.
										 Animal Care up 9.0%.
		Statutory EPS - cps	98.5	87.8	12.1%		9.6%
		Underlying EBITDA2	272.4	241.4	12.8%		10.3%			Underlying NPAT increase of $11.0m or 5.5% (constant FX).
		Underlying NPAT2 Underlying EPS - cps2	149.6 98.5	138.6 91.3	7.9% 7.8%		5.5% 5.4%			Underlying EPS growth of 5.4% (constant FX).
		Net Debt	471.1	434.7						Lower NZD:AUD cross rate positively
		Net Debt : EBITDA	1.74x	1.79x						impacted EBITDA by $5.4m in FY18.

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

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Healthcare Results

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HEALTHCARE SEGMENT

Strong trading performance across Australia and New Zealand

						Constant FX	EBITDA increase of $27.1m or 10.4%	EBITDA increase of $27.1m or 10.4%
	NZ$m	FY18	FY17	Var		Var	(constant FX):
	Healthcare							Australia up 11.9% assisted by th
	Revenue	7,197.6	7,202.7	(0.1%)		(2.3%)		year contributions of HPS (acquir
	EBITDA	235.9	208.8	13.0%		10.4%		June 2017) and TWC (acquired Oc 2016).
	EBIT	205.2	187.1	9.7%		7.2%
								New Zealand up 4.6%.
	EBITDA%	3.28%	2.90%	38pts		38pts
	Australia						Revenue decrease of $5.1m or 2.3% (constant FX):
	Revenue	5,661.7	5,756.8	(1.7%)		(4.4%)
	EBITDA	189.8	164.7	15.2%		11.9%		Australia down 4.4% (although up $104m or 2.1% excluding hepatiti
	EBIT	161.4	145.2	11.2%		8.0%		medicine sales, constant FX).
	EBITDA%	3.35%	2.86%	49pts		49pts		FY18 hepatitis C revenue was $36
	New Zealand							lower than last year (constant FX) monthly sales were steady in the
	Revenue	1,535.9	1,445.9	6.2%				half of FY18.
	EBITDA	46.1	44.1	4.6%				New Zealand revenue up 6.2%, w
	EBIT	43.8	41.9	4.5%				growth from all business units.
	EBITDA%	3.00%	3.05%	-5pts

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).

• Australia down 4.4% (although up $104m or 2.1% excluding hepatitis C medicine sales, constant FX).

• FY18 hepatitis C revenue was $364m lower than last year (constant FX) and monthly 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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COMMUNITY PHARMACY

• Total Pharmacy Revenue declined by 1.6% (constant FX), attributable to lower hepatitis C medicine sales (-$147m) and PBS reforms, partially offset by a full year contribution from TerryWhite Chemmart (TWC) and growth in underlying business.

• Underlying Revenue growth (excluding hepatitis C and TWC) was 1.4%.

• Total OTC sales were marginally above last year.

• GOR (excluding acquisitions) increased by 2.9%, primarily due to underlying wholesale pharmacy growth in Australia and New Zealand, partly offset by lower hepatitis C medicine sales.

• TWC store rebranding project is largely complete.

• Acquisition of Ventura (April 2018), management company of an Australian retail pharmacy group with 80 stores.

• The new Brisbane facility is planned for completion in 1H FY19 and will further increase Symbion’s warehouse productivity.

NZ$m	Reported	Reported	Constant FX
	FY18	FY17	FY17 Var%
Revenue - Revenue ex. acquisitions GOR - GOR ex. acquisitions	4,215.9 4,181.9 4,283.6 (1.6%) 4,092.0 4,088.4 4,187.7 (2.3%) 410.2 372.2 381.8 7.5% 324.2 307.1 314.9 2.9%
GOR%	9.7% 8.9% 8.9%

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New Brisbane wholesale distribution facility

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CHEMIST WAREHOUSE ANNOUNCEMENT

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• 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.

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

• To be selected as a trusted partner by Chemist Warehouse Group reinforces our capital investment strategy and reflects the efficiencies we have made over a number of years to our operations. It also reflects the high level of expertise and service standards that we offer the industry.

• EBOS is confident that it will generate an acceptable return on capital from this new business.

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INSTITUTIONAL HEALTHCARE

• With the acquisition of HPS in June 2017, EBOS continues to expand its position as an essential partner to industry across a number of areas, primarily in hospitals, primary care and aged care.

• FY18 revenue and GOR growth was impacted by a significant reduction in hepatitis C sales (-$216m), partially offset by the contribution from HPS.

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NZ$m	Reported	Reported	Constant FX
	FY18	FY17	FY17 Var%
Revenue - Revenue ex. acquisitions GOR - GOR ex. acquisitions	2,451.2 2,484.5 2,544.5 (3.7%) 2,381.3 2,479.3 2,539.2 (6.2%) 214.4 154.3 157.7 36.0% 154.0 149.8 153.0 0.6%
GOR%	8.7% 6.2% 6.2%

• Underlying revenue growth (excluding hepatitis C and HPS) was 2.9%.

• Solid GOR growth achieved from Symbion Hospitals (excluding hepatitis C), EBOS Healthcare and Onelink New Zealand.

• HPS is performing well and in-line with expectations.

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CONTRACT LOGISTICS

• GOR growth achieved in both New Zealand and Australia from key principals. Revenue declined to last year with some principals switching to a consignment 3PL model.

• Healthcare Logistics (NZ) maintained its leading market position and, combined with cost management, delivered another period of increased earnings.

• The Group expanded its Contract Logistics business in Australia with the opening of a new 25,000m² facility in Sydney (NSW) in June 2018.

• The Australian business has recently been rebranded as Healthcare Logistics to further align the ANZ operations.

NZ$m	Reported	Reported	Constant FX
	FY18	FY17	FY17 Var%
Revenue GOR	482.4 484.9 487.9 (1.1%) 65.0 60.5 61.3 6.1%

Note: GOR % not relevant as sales activity is predominantly done on consignment.

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New Sydney Contract Logistics facility.

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CONSUMER PRODUCTS

• Revenue and GOR were assisted by Red Seal sales growth (primarily in the toothpaste, teas and supplements categories) and the acquisition of Gran’s Remedy in March 2018.

• Red Seal domestic NZ sales increased 7.3% and pleasingly, international sales grew 13.2% to last year.

NZ$m	Reported	Reported	Constant FX
	FY18	FY17	FY17 Var%
Revenue GOR GOR%	118.3 105.4 106.5 11.1% 46.2 42.5 42.9 7.7% 39.1% 40.3% 40.3%

• Sales and GOR margins were impacted in part by the decision in Australia to reschedule codeine products to prescription only effective from February 2018.

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Animal Care Results

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ANIMAL CARE SEGMENT

A strong EBITDA performance reflecting the pivot to our own key brands

	54% FY17: 51% 37% FY17: 29% 9% FY17: 20% REVENUE MIX BY CATEGORY EB (c    Constant FX NZ$m FY18 FY17 Var Var Animal Care 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

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.

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

Wholesale (Lyppard) EBOS brands (Black Hawk and Vitapet) Other products

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ANIMAL CARE SEGMENT

FY18 Revenue declined $11.3m or 5.1% (constant FX) due to:

• Ceasing low margin wholesale sales to a major Australian retail chain. Revenue in FY18 was impacted by $26 million.

• In July 2017, Black Hawk was launched in New Zealand and consequently we ceased the sales, marketing and distribution of Mars branded products in NZ.

Black Hawk continues to outperform:

• Black Hawk Australian sales grew 23% (following growth of 48% in FY17 and 55% in FY16). Growth well above market due to:

• New product development including new Large breed Adult & Puppy SKU’s and a complete new cat range.

• Strong investment in marketing driving increased brand awareness and retail support

• Rebranding and new packaging across the entire range

• Launch of Black Hawk in NZ has exceeded expectations. Strong support has been received from specialty retailers and veterinary clinics

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Group Financial Information & Outlook

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CASH FLOW

Record Operating Cash Flow performance

					
NZ$m	FY18	FY17	Var$	Var%
EBITDA	272.4	234.4	38.0	16.2%
Net interest paid	(22.7)	(19.0)	(3.7)
Tax paid	(65.3)	(65.4)	0.1		
Net workingcapital and other movements Cash from Operating activities	(8.2) 176.2	(6.1) 143.9	(2.1) 32.2	22.4%
Capital expenditure(net)	(63.2)	(37.4)	(25.8)
Free Cash Flow	112.9	106.5	6.4	6.1%	
Acquisitions and investments	(33.6)	(184.1)	150.5
Dividendspaid	(100.7)	(94.9)	(5.7)
Net Cash Flow	(21.4)	(172.6)	151.2
Borrowings acquired on acquistion	-	(14.7)	14.7
FX impact on net debt	(15.0)	0.2	(15.2)
(Increase)/Reduction in Net Debt	(36.4)	(187.1)	150.7

Record operating cash flow of $176.2m demonstrates the Group’s disciplined focus on cash flow management.

FY18 Capex spend primarily comprises the new distribution centre in Brisbane ($24.6m) and the new contract logistics facility in Sydney ($14.6m).

Acquisition and investments of $33.6m in FY18 includes the Group’s acquisitions of Gran’s Remedy and Ventura and the investment in MedAdvisor.

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WORKING CAPITAL AND ROCE

Working Capital

	NZ$m	**June 2018 **	June 2017
	Net Working Capital
	Trade receivables	971.8	1,015.1
	Inventory	582.9	572.0
	Tradepayables/other	(1,303.3)	(1,353.7)
	Total Cash conversion days1	251.4	233.4
	Debtor days	41	41
	Inventory days	32	30
	Creditor days	58	57
	Cash conversion days	15	14

Return on Capital Employed

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16.4% 16.4%
15.8%
13.7%
12.8%
FY14 FY15 FY16 FY17 FY18
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• Working capital management discipline is a key focus of the Group and maintaining the industry leading cash conversion cycle of 15 days is reflective of this.

• Return on Capital Employed of 15.8% at June 2018, lower than June 2017 (-0.6%) primarily due to a higher investment in net working capital and the cost of the recently acquired HPS business.

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Note 1: Cash conversion days are adjusted for the Group’s 3PL debtors and creditors arising from its hepatitis C business.

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NET DEBT, GEARING AND MATURITY PROFILE

Net Debt and Gearing Debt Maturity Profile – current facility limits (NZ$m)

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500 27.4% 27.9% 30%
450 24.4%
23.2% 25%
400 436
350 18.5%
20%
300
250 15%
471
435
200
150 316 317 10% 319
248
100
5%
50 100 133
54
0 0% -
Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 FY19 FY20 FY21 FY22 FY23
Net Debt Gearing ratio (Net debt) Cash advance facility Term debt facilities Securitisation
Gearing ratio
Net debt (NZ$m)
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• Net Debt of $471m at June 2018, an increase of $36m from June 2017.

• Net Debt : EBITDA of 1.74x at June 2017 (1.79x at June 2017).

• Current gearing continues to provide headroom for future acquisitions.

• In H2 FY18, EBOS completed:

• A new 3 year securitisation facility (A$400m) which expires in January 2021.

• Refinancing of term debt facilities (NZ$319m) extended to May 2023.

• At 30 June 2018, the weighted average maturity of our combined term debt & securitisation facilities is 3.4 years.

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EARNINGS AND DIVIDENDS PER SHARE

Underlying Earnings Per Share Dividends Per Share

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H1 H2
35.5
33.0
32.5
98.5 25.0
20.5
91.3
84.0
62.8 70.8
33.0
30.0
26.0
20.5 22.0
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18
Cents per share
Cents per share
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• Underlying EPS growth of 7.8% in FY18, or 5.4% (constant FX) following increases of 11.1% in FY17 and 18.2% in FY16.

• Final dividend of 35.5 cents (imputed to 25% and franked to 100% for Australian resident shareholders).

• Total dividends in FY18 of 68.5 cents represents an increase of 8.7% on last year.

• Dividend payout ratio of 70%.

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OUTLOOK

• EBOS Group has recorded a strong financial performance in FY18 and the Company is confident of further profit growth into FY19 on an underlying, constant currency basis.

• A performance update will be provided to shareholders at the Annual Meeting on 16 October 2018.

CHANGE IN PRESENTATION CURRENCY

• With 82% of the Group’s earnings generated from Australia, the statutory results have historically been significantly impacted by movements in the NZD:AUD exchange rate. In order to reduce this volatility for future periods, the Board has decided to change the Group’s presentation currency from New Zealand dollars to Australian dollars effective 1 July 2018.

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Supporting Information

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FOREIGN EXCHANGE

Depreciation of the average NZD:AUD cross-rate by 2.7c to 0.918 positively impacted EBITDA by $5.4m in FY18

Revenue and EBITDA by currency

• 82% of the Group’s earnings (EBITDA) are generated in AUD.

				AUD	Average	Average		AUD	NZ			Group
				**Operations **	NZD:	**AUD **		Operations	Operations			Consolidated
$m				AUD	translation			NZD	NZD			NZD
FY18															
Revenue EBITDA				5,527.6 204.2		0.92 0.92		6,022.0 222.4	1,587.5 50.0			7,609.5 272.4
EBITDA%				3.69%				3.69%	3.15%			3.58%
NZD:AUD exchange rate – July							2016 to June		2018
0.97 0.98				FY17	average: 0.945c				FY18 average:	0.918c					
0.96
0.95
0.94
0.93
0.92
0.91
0.90
0.89
0.88
	Jul-16			Oct-16	Jan-17		Apr-17	Jul-17	Oct-17	Jan-18		Apr-18	Jun-18

• The average NZD:AUD FX rate for FY18 decreased by 2.7 cents from FY17, positively impacting the Group’s FY18 EBITDA by approximately $5.4m.

EBITDA sensitivity to a 1 cent movement in NZD:AUD exchange rate is approximately $2.1m per annum.

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SEGMENT EARNINGS AND GOR MIX

EBITDA by segment

						Constant FX
	NZ$m	FY18	FY17	Var		Var
	Healthcare	235.9	208.8	13.0%		10.4%
	Animal Care	49.8	44.7	11.3%		9.0%
	Corporate	(13.2)	(19.1)	30.5%		32.1%
	Group	272.4	234.4	16.2%		13.6%
	Transaction costs	-	7.0
	Group - underlying	272.4	241.4	12.8%		10.3%

• FY17 Corporate segment result includes $7.0m of transaction costs incurred on the TerryWhite Chemmart merger and the HPS acquisition.

Gross Operating Revenue (GOR) FY18

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14%
86%
14%
5% 48%
8%
FY18 GOR Mix
25%
Health Care Pharmacy Contract Logistics
(Wholesale and retail)
Animal Care Institutional Healthcare Consumer Products
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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 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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5 YEARS POST SYMBION DEAL

We continue to deliver results whilst reinvesting for growth

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Investments made (NZ$m) Results achieved
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
22
20
33.6 18
88.1
3.5 70.9 16
63.2
14
35.3 37.6
15.4 17.6 Share Price
12
FY14 FY15 FY16 FY17 FY18 +110%
10
Capital expenditure Acquisitions and investments
8
Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18
Share Price (NZD)
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EBOS GROUP HISTORICAL EBITDA & MARGIN

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300.0 3.58% 3.60%
3.40%
250.0 3.24% 3.17%
3.18%
3.20%
3.05%
200.0
3.00%
150.0 2.80%
272.4
241.4
225.5 2.60%
100.0 196.7
175.4
2.40%
50.0
2.20%
- 2.00%
¹
FY14 FY15 FY16 FY17 FY18
EBITDA %
EBITDA (NZ$m)
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All data shown above is on a Reported basis

Note 1: FY17 EBITDA and EBITDA margin is presented on an underlying basis and excludes $7m in transaction costs incurred on acquisitions.

28

HEALTHCARE HISTORICAL EBITDA & MARGIN

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250.0 3.28% 3.50%
2.99%
2.92% 2.90%
2.82% 3.00%
200.0
2.50%
150.0
2.00%
235.9
1.50%
208.8
100.0
195.0
170.2
153.1
1.00%
50.0
0.50%
- 0.00%
FY14 FY15 FY16 FY17 FY18
EBITDA %
EBITDA (NZ$m)
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All data shown above is on a Reported basis

29

ANIMAL CARE HISTORICAL EBITDA & MARGIN

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60.0 14.00%
12.08%
12.00%
50.0
10.57%
10.19%
9.89%
10.00%
40.0 8.68%
8.00%
30.0
6.00%
49.8
44.7
42.3
20.0
37.1
4.00%
29.4
10.0
2.00%
- 0.00%
FY14 FY15 FY16 FY17 FY18
EBITDA (NZ$m)
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All data shown above is on a Reported basis.

30

GLOSSARY OF TERMS AND MEASURES

Except where noted, common terms and measures used in this document are based upon the following definitions:

Term	Definition
Actual results	Results translated into NZ dollars at the applicable actual monthly exchange rates ruling in each period.
Debtor days	Trade debtors at the end of period divided by Revenue for the period, multiplied by number of days in the period.
Inventory days	Inventory at the end of period divided by Cost of Sales for the period, multiplied by number of days in the period.
Creditor days	Trade creditors at the end of period divided by Cost of Sales for the period, multiplied by number of days in the period.
Constant	Calculated by translating the prior period results into NZ dollars at the actual monthly exchange rates applicable in the current
FX/currency	period.
Revenue	Revenue from the sale of goods and the rendering of services.
Gross Operating	Revenue less cost of sales and the write-down of inventory.
Revenue (GOR)
EBIT	Earnings before interest and tax.
EBITDA	Earnings before interest, tax, depreciation and amortisation.
Underlying EBITDA	Earnings before interest, tax, depreciation, amortisation and transaction costs relating to acquisitions.
NPAT	Net Profit After Tax attributable to the owners of the company.
Underlying NPAT	Net Profit After Tax attributable to the owners of the company and before transaction costs relating to acquisitions.
Free Cash Flow	Cash from operations less capital expenditure net of proceeds from disposals.
Earnings per share	Net Profit after tax divided by the weighted average number of shares on issue during the period in accordance with IAS 33
(EPS)	‘Earnings per share’.
Underlying EPS	NPAT excluding transaction costs on acquisitions, divided by the weighted average number of shares on issue during the period .
Net Debt : EBITDA	Ratio of net debt at period end to the last 12 months EBITDA, adjusting for pre acquisition earnings of acquisitions for the period.
Return on Capital	Measured as underlying earnings before interest, tax and amortisation of finite life intangibles for 12 months divided by closing
Employed (ROCE)	capital employed (including a pro-rata adjustment for entities acquired and excluding amounts for significant capital projects
	yet to complete and strategic investments).
	3

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www.ebosgroup.com

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