EBOS GROUP LIMITED — Investor Presentation 2020

Aug 19, 2020

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INVESTOR PRESENTATION FY20 FINANCIAL RESULTS 20 August 2020

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DISCLAIMER

The information in this presentation was prepared by EBOS Group Limited (EBOS) with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and, to the extent permitted by law, no representation is made as to the accuracy, completeness or reliability of the information. In addition, neither EBOS 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. To the extent permitted by law, 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 securities and may not be relied upon in connection with any purchase of EBOS 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 2020.

All currency amounts are in Australian dollars unless stated otherwise.

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EBOS Financial Results

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FY20 SUMMARY RESULTS

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Revenue Statutory EBITDA Statutory NPAT
$8.8b up 26.5% $333.6m up 33.2% $162.5m up 18.0%
Underlying EBITDA Underlying NPAT
$296.6m up 13.4% $168.3m up 16.5%
Statutory EPS ROCE Dividends per share
100.6c up 12.0% 17.1% up 1.2% 77.5c up 8.4%
(NZ$)
Underlying EPS Net Debt : EBITDA
100% Franked (AU)
104.2c up 10.6% 1.11x down 0.3x 25% Imputed (NZ)
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Note 1: All currency amounts are in Australian dollars except for Dividends per share. Note 2: Underlying results exclude the impact of IFRS 16 Leases and net one-off costs. Refer to page 26 for the reconciliation of Underlying to Statutory earnings.

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KEY HIGHLIGHTS

FY20 was a record year for EBOS with all businesses contributing to significant revenue growth of $1.8b or 26.5%

• Revenue exceeded $8b for the first time.

• Continued commitment to working capital management produced an excellent operating cash flow result of $229.2m.

• Both our Healthcare and Animal Care businesses contributed to revenue growth, highlighting the strength of the EBOS’ diverse portfolio of businesses.

• Community Pharmacy was a key driver of our performance, with a significant increase in revenue and GOR:

• Completed successful first year of Chemist Warehouse wholesale contract.

• Previous investments in our automated distribution network positioned us well to meet record customer demand during March 2020, which was related to COVID-19.

• TerryWhite Chemmart added 26 new trading stores and continued strong like-for-like sales growth.

• Recent finalisation of the 7[th] CPA provides long term regulatory certainty needed to continue to support our customers and the community.

• The Healthcare business also benefitted from strong performances from our Institutional Healthcare and Contract Logistics businesses as well as our initial entry into medical device distribution.

• The Animal Care business delivered another strong performance, with our Vitapet, Blackhawk and Lyppard businesses all growing revenue and earnings.

• Completed the acquisition of LMT / National Surgical in the medical devices sector and continue to explore a strong pipeline of further opportunities.

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COVID-19 FINANCIAL IMPACTS

Government measures implemented in response to COVID-19 had various financial impacts on EBOS’ businesses in FY20. The net overall financial impact was broadly neutral and trading conditions improved towards the end of the financial year.

Positive impacts Negative impacts

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Healthcare
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• Community Pharmacy benefitted from unprecedented demand during March as consumers stockpiled ethical and OTC products.

• Institutional Healthcare benefitted from elevated demand from hospital customers in preparedness for COVID-19 patients (medicines and PPE).

  • Lower foot traffic during April and May, as well as a reduced cough and cold season impacted sales in Community Pharmacy and Consumer Products.

  • Institutional Healthcare sales were impacted by reduced GP visitations.

  • Additional costs of implementing initiatives such as work-from-home, social distancing and extra security and cleaning measures to protect our employees.

• Black Hawk and Vitapet products benefitted marginally from increased consumer spending on pets.

• Lyppard benefitted from growth in consumer demand.

• Animates’ physical retail stores in New Zealand were closed during parts of April and May resulting in lower sales, partially offset by higher online sales.

During COVID-19 market conditions, EBOS benefitted from its industry leading distribution network, the defensive nature of our products and services, EBOS’ scale and diversity and a strong balance sheet.

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DISASTER RELIEF

EBOS’ businesses and employees have contributed to community disaster relief efforts in FY20 through our integral role in the region’s medical supply chain

• COVID-19  EBOS’ wholesale, distribution and retail healthcare businesses are essential services and play an integral role in maintaining stable supply of medicines to communities across Australia and New Zealand.

• This ensured our Healthcare business remained operational throughout the Government-imposed shutdowns, continuing to support the health and wellbeing of people across both countries.

• During March and April, Symbion, along with the other members of the National Pharmaceutical Services Association, distributed more than 70 million PBS medicines across Australia. In March, total volumes of medicines (PBS and non-PBS items) distributed were up by 70% compared with the same time last year.

• Extensive effort and response from our hospital and community pharmacy customers.

• New Zealand  EBOS’ hospital distribution business, Onelink, which services the main hospitals where White Island Volcanic patients were admitted following the volcanic eruption in December, worked with its customers and local health authorities to meet the surge in demand for burns dressings and theatre supplies to treat the

• Eruption and injured.

• Measles Outbreak  In September and October, at the height of the measles outbreak that affected New Zealand, Healthcare Logistics and ProPharma processed more than 114,000 doses of the measles vaccine and teams were coordinating the supply of the vaccination daily in conjunction with the National Health Crisis centre.

• Australian  EBOS played an integral role in supporting communities across Australia as they battled bushfires in late bushfires 2019 and early 2020 coordinating with federal, state and local authorities to provide emergency supplies and donations to the worst impacted areas.

• EBOS also provided financial assistance for recovery efforts in addition to donating products including hydration tablets, masks, eye drops, ice bricks, eskies and sanitation products for those in need.

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FY20 FINANCIAL PERFORMANCE

							Significant revenue increase of 26.5%
	A$m	FY20	FY19	Var$	Var%		primarily due to growth in Community
	Underlying Results ¹						Pharmacy, Institutional Healthcare,
	Revenue	8,765.5	6,930.4	1,835.2	26.5%		Contract Logistics and Animal Care.
	Gross Operating Revenue	917.8	806.3	111.5	13.8%		Statutory EBITDA of $333.6m, an
	EBITDA	296.6	261.6	34.9	13.4%		increase of $83.2m or 33.2%. This
	Depreciation & Amortisation EBIT	35.8 260.8	32.1 229.6	(3.7) 31.2	(11.7%) 13.6%		includes a $39.6m benefit from the adoption of IFRS 16 Leases.
	Net Finance Costs	22.3	25.3	3.1	12.1%		Underlying EBITDA of $296.6m, an
	Profit Before Tax	238.5	204.2	34.3	16.8%		increase of $34.9m or 13.4%:
	Net Profit after Tax	168.3	144.4	23.9	16.5%		 Healthcare up 14.8%.
	Earnings per share - cps	104.2c	94.2c	10.0c	10.6%		 Animal Care up 8.3%.
	Net Debt	327.2	365.8
	Net Debt : EBITDA	1.11x	1.41x				Underlying NPAT and Underlying EPS increases of 16.5% and 10.6%,
	Statutory Results						respectively.
	Revenue	8,765.5	6,930.4	1,835.2	26.5%
	EBITDA	333.6	250.4	83.2	33.2%
	EBIT	260.5	218.3	42.1	19.3%
	Profit Before Tax	230.1	193.0	37.0	19.2%
	Net Profit After Tax	162.5	137.7	24.8	18.0%
	Earnings per share - cps	100.6c	89.8c	10.8c	12.0%

Note 1: Underlying results exclude the impact of IFRS 16 Leases and net one-off costs. Refer to page 26 for the reconciliation of Underlying to Statutory earnings.

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Healthcare Results

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HEALTHCARE SEGMENT Healthcare business revenue growth of 27.4%, driven by a strong performance in Australia

					
A$m	FY20	FY19	Var$	Var%
Revenue	8,340.4	6,548.3	1,792.1	27.4%
Underlying EBITDA1	260.0	226.6	33.5	14.8%
Underlying EBITDA%	3.12%	3.46%
Australia					
Revenue Underlying EBITDA1	6,676.5 220.3	5,015.2 184.1	1,661.3 36.1	33.1% 19.6%
Underlying EBITDA%	3.30%	3.67%
New Zealand
Revenue	1,664.0	1,533.1	130.8	8.5%
Underlying EBITDA1	39.8	42.4	(2.6)	(6.2%)
Underlying EBITDA%	2.39%	2.77%

Australia’s growth in revenue of 33.1% and Underlying EBITDA of 19.6% was driven by the performances of our Community Pharmacy, TWC, Institutional Healthcare and Contract Logistics businesses.

New Zealand revenue growth was 8.5%, however, Underlying EBITDA was affected by cost increases in labour and freight and softer overseas demand for our consumer products, reflective of the changes which have impacted the daigou export channel.

Underlying EBITDA (A$m) and Underlying EBITDA %

Note 1: Underlying results exclude the impact of IFRS 16 Leases and net one-off costs. Refer to page 26 for the reconciliation of Underlying to Statutory earnings.

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COMMUNITY PHARMACY

• Community Pharmacy revenue increased by $1,386m and GOR by $72.3m due to increased wholesale volumes in both Australia and New Zealand.

• The pharmacy business benefitted from:

• Successful commencement of the Chemist Warehouse volumes from 1 July 2019;

• Productivity improvements in wholesale operations due to higher volumes across our sites and the new Brisbane distribution facility; and

• Strong performance of our retail brands, including TWC.

• The movement in GOR % margin is primarily due to sales mix of ethical and OTC products in the wholesale business.

	A$m Revenue	FY20 5,090.2	FY19 3,704.1	Var$ 1,386.0	Var% 37.4%
	GOR	445.1	372.8	72.3	19.4%
	GOR%	8.74%	10.06%
		Revenue	and GOR (A$m)

FY16 to FY20 CAGR

• Revenue: 9.1%

• GOR: 9.8%

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TERRYWHITE CHEMMART

Continued growth in one of Australia’s leading community pharmacy networks

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Continued network growth

In the last 12 months, our national network increased by 26 pharmacies.

COVID-19 response

Personalised care for vulnerable patients, eCommerce with home delivery, local GP collaboration and telehealth. Business continuity plan and daily guidance for pharmacy teams.

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Technology improvements driving pharmacy gross profit and efficiency. Further personalised marketing to connect with customers.

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4.1% network sales growth

With prescription sales growth of 6.0% on a like-for-like basis.

that’s real chemistry

Customers are connecting with TWC’s real chemistry campaign, and increased investment is leading to stronger brand awareness and promotional effectiveness

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#1 Customer Satisfaction

Roy Morgan research puts TWC in the number one position for pharmacy customer satisfaction.

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Over half-a-million flu vaccinations

#1 for pharmacist administered vaccinations.

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Private Label GP$ growth

Strong growth in private label driving profitability for TWC Network Partners.

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Partnerships that grow our reach and connection to new customers for pharmacies every day.

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INSTITUTIONAL HEALTHCARE

• Revenue growth of 11.9% was driven largely from increases in new specialty medicines, combined with strong growth in the medical consumables sector and the acquisition of the LMT Group.

• Our businesses were able to successfully meet the increased customer demands of medical consumables during the COVID-19 crisis.

• Symbion Hospitals had strong growth and our excellent service levels and relationships with both private and public customers saw us maintain our market leading position.

• The integration of the LMT Group provides a foundation to further expand our medical devices business in the $8b Australian and New Zealand market.

	A$m Revenue	FY20 2,565.1	FY19 2,292.7	Var$ 272.4	Var% 11.9%
	GOR	233.2	209.7	23.6	11.2%
	GOR%	9.09%	9.15%
		Revenue	and GOR (A$m)

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FY16 to FY20 CAGR  Revenue: 5.8%

• GOR: 16.8%

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CONTRACT LOGISTICS

A$m	FY20	FY19	Var$	Var%
Revenue	712.3	518.0	194.3	37.5%
GOR	77.7	67.2	10.5	15.6%

• Continued business development focus led to GOR growth of 15.6% as customers join our new facilities.

• Investment in the new 25,000m² facility in Sydney (completed in FY19) and further expansion in Auckland has created opportunities for growth in both countries.

Note: GOR % not relevant as sales are predominantly on consignment.

Revenue and GOR (A$m)

• The Australian business grew its market share through winning a number of new customers.

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FY16 to FY20 CAGR  Revenue: 10.9%

Photo of the Sydney Contract Logistics facility.

 GOR: 7.6%

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CONSUMER PRODUCTS

• Consumer Products performance was affected in the first half by softer overseas demand for our products, reflective of the regulatory changes which have impacted the daigou export channel.

• Revenue and GOR growth in the second half was driven by improved international sales and operational improvements in our new Auckland facility.

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	A$m	FY20	FY19	Var$	Var%
	Revenue	115.4	113.9	1.5	1.3%
	GOR	42.0	44.0	(2.0)	(4.6%)
	GOR%	36.4%	38.7%

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Revenue and GOR (A$m)
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FY16 to FY20 CAGR  Revenue: 9.7%

• GOR: 5.2%

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Animal Care Results

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ANIMAL CARE SEGMENT

Strong Revenue and Underlying EBITDA performance reflecting the strength of our key brands and growth in Lyppard

A$m	FY20	FY19	Var$	Var%
Revenue	425.1	382.0	43.1	11.3%
Underlying EBITDA1	52.3	48.3	4.0	8.3%
Underlying EBITDA%	12.3%	12.6%

Underlying EBITDA (A$m) and Underlying EBITDA %

• Revenue growth of $43.1m, or 11.3%, due to the continued excellent performance of our branded products portfolio and higher vet wholesale volumes.

• Our key brands Black Hawk and Vitapet recorded strong uplifts in revenue with both continuing to grow within their premium market segments.

• Lyppard strengthened its market position during the period with revenue increasing by 12.0% due to customer growth and the recently acquired Therapon business.

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Wholesale(Lyppard)
EBOS brands
(Black Hawk and Vitapet)
Other products
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Revenue mix by category

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Note 1: Underlying results exclude the impact of IFRS 16 Leases. Refer to page 26 for the reconciliation of Underlying to Statutory earnings.

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CONTINUED GROWTH FROM OUR BRANDS

Both our Black Hawk and Vitapet brands continue strong growth rates

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• Black Hawk sales grew 12.3% due to:

• Strong consumer support for our products.

• Continued investment in marketing to drive increased brand awareness and retail support.

• Increasing market share in New Zealand.

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• Vitapet’s strong sales growth of 15.1% due to:

• Expansion of range in Australian grocery.

• Strong new product pipeline.

• Marketing support to grow brand awareness.

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EBOS Financial Information & Current Trading Conditions

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CASH FLOW

	A$m	FY20	FY19	Var$	Var%
	Statutory EBITDA	333.6	250.4	83.2	33.2%
	Net interest paid	(30.4)	(25.3)	(5.1)
	Tax paid	(69.0)	(55.3)	(13.8)
	Net workingcapital and other movements	(5.0)	(51.3)	46.3
	Cash from Operating activities	229.2	118.5	110.6	93.3%
	Capital expenditure(net)	(28.9)	(26.6)	(2.3)
	Free Cash Flow	200.3	92.0	108.3	117.8%

Cash from Operating activities (A$m)

• Excellent cash result driven by strong earnings growth and disciplined working capital management.

• Operating Cash Flow of $229.2m includes a $32.0m uplift arising from the adoption of IFRS 16 Leases.

• Capex of $28.9m primarily comprised spend on multiple operating sites, IT and the new Consumer Products facility in Auckland.

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WORKING CAPITAL AND ROCE

Working Capital

Return on Capital Employed[1]

	A$m	FY20	FY19	FY18
	Net Working Capital
	Trade receivables	984.6	865.7	892.2
	Inventory	737.7	723.5	535.1
	Tradepayables/other	(1,417.2)	(1,307.3)	(1,196.4)
	Total	305.1	281.9	230.8
	Cash conversion days
	Debtor days	41	43	41
	Inventory days	34	43	32
	Creditor days	60	68	58
	Cash conversion days	15	18	15

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• Working capital management discipline is a key focus of EBOS and another strong performance saw an improvement in our industry leading cash conversion cycle to 15 days.

• Return on Capital Employed of 17.1% at June 2020 reflects the strong earnings growth and continued industry leading working capital management.

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Note 1: ROCE calculation excludes the impacts of IFRS 16 Leases.

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NET DEBT AND MATURITY PROFILE

Net Debt and Net Debt : EBITDA ratio[1] Cash and Debt Maturity Profile (A$m)[2]

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Term Debt Facilities Securitisation
Facility
543
400
253
245 221
100
290
50
32 179
15
68
35
Cash on Hand FY21 FY22 FY23 FY24
Drawn amount Committed but undrawn amount
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• Net Debt[1] of $327m at June 2020, with a Net Debt : EBITDA[1] ratio of 1.11x (1.41x at June 2019).

• Current gearing continues to provide approximately $400m – $450m headroom for future investments and acquisitions.

• Bank covenants have been amended to adopt a frozen GAAP approach with respect to IFRS 16 Leases.

Refinancing activities

• In March 2020, EBOS refinanced $250m of term debt facilities for a further 3 years.

• In August 2020, EBOS extended the tenor of its $400m securitisation facility by a further 3 years.

• The current weighted average maturity of EBOS’ total debt facilities has been extended to 2.5 years.

Note 1: Net Debt and the Net Debt : EBITDA ratio excludes the impacts of IFRS 16 Leases. Note 2: Securitisation facility maturity reflects August 2020 extension. All dollar values are as at 30 June 2020.

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EARNINGS AND DIVIDENDS PER SHARE

Underlying Earnings Per Share (A$ cents) Dividends Per Share (NZ$ cents)

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• Underlying EPS of 104.2 cents representing growth of 10.6% in FY20.

• Final dividend of 40.0 NZ cents (imputed to 25% and franked to 100% for New Zealand and Australian tax resident shareholders, respectively).

• Total dividends declared for FY20 of 77.5 NZ cents representing growth of 8.4%.

• Dividend payout ratio of 70.9%, on an underlying basis excluding the impact of the Dividend Reinvestment Plan (DRP)[1] .

• EBOS’ DRP will again be operational for the final dividend with a discount of 2.5% applicable to VWAP.

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Note 1: Dividend payout ratio based on a AUD:NZD exchange rate of 0.934.

CURRENT TRADING CONDITIONS

• EBOS has recorded a strong financial performance in FY20 across both Healthcare and Animal Care and we continue to explore investment opportunities that will expand the Group.

• Notwithstanding the overall broadly neutral impact of COVID-19 to date as well as our strong growth in FY20 and positive momentum in July 2020, the impact on customer demand for our products and services from further and ongoing potential COVID-19 developments is uncertain.

• Group revenue and underlying EBITDA in July 2020 was up 6.9% and 6.5% respectively on the prior corresponding period (July 2019)[1] . This was driven by growth in both our Healthcare and Animal Care businesses, reflecting an improvement in recent trading conditions and the defensive characteristics of EBOS’ core products and services.

• Animal Care growth was particularly encouraging with growth exceeding that of the total Group revenue for the month.

• Since the end of July, the Victorian government and New Zealand government have both announced heightened restrictions with respect to COVID-19. These announcements continue to highlight that the COVID-19 situation remains evolving and unpredictable across New Zealand and Australia and will be with us for some time.

• Given EBOS’ scale and market leading positions in stable industries, as well as our strong balance sheet, we are well placed to respond to the challenges ahead.

• EBOS reiterates its policy of declaring dividends of not less than 60% of NPAT. EBOS has a history of paying dividends that are 25% imputed for NZ investors and 100% franked for Australian investors.

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Note 1: July 2020 revenue and underlying EBITDA is unaudited. July 2020 and July 2019 had the same number of trading days.

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Supporting Information

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RECONCILIATION OF UNDERLYING AND STATUTORY EARNINGS

	FY20	FY19
A$m FY20 FY19 Var$ Var% Underlying¹	IFRS16 One-off Impact costs	One-off costs	FY20 FY19 Var$ Var% Statutory
Group Income Statement Revenue 8,765.5 6,930.4 1,835.2 26.5% Gross Operating Revenue 917.8 806.3 111.5 13.8% EBITDA 296.6 261.6 34.9 13.4% Depreciation & Amortisation 35.8 32.1 (3.7) (11.7%) EBIT 260.8 229.6 31.2 13.6% Net Finance Costs 22.3 25.3 3.1 12.1% Profit Before Tax 238.5 204.2 34.3 16.8% Tax Expense / (Benefit) 71.2 59.9 (11.3) (18.9%) Outside Equity Interest 1.0 0.1 0.9 1100% Net Profit after Tax 168.3 144.4 23.9 16.5% Earnings per share - cps 104.2c 94.2c 10.0c 10.6%	- - - - 39.6 (2.6) 37.3 - 2.3 (2.6) 8.1 - (5.8) (2.6) (0.4) (2.3) - - (5.5) (0.3)	- - (11.2) - (11.2) - (11.2) (3.6) 0.9 (6.7)	8,765.5 6,930.4 1,835.2 26.5% 917.8 806.3 111.5 13.8% 333.6 250.4 83.2 33.2% 73.1 32.1 (41.1) (128.1%) 260.5 218.3 42.1 19.3% 30.4 25.3 (5.1) (20.0%) 230.1 193.0 37.0 19.2% 68.5 56.3 (12.3) (21.8%) 1.0 1.0 0.0 2.3% 162.5 137.7 24.8 18.0% 100.6c 89.8c 10.8c 12.0%
EBITDA by Segment Healthcare 260.0 226.6 33.5 14.8% Animal Care 52.3 48.3 4.0 8.3% Corporate (15.8) (13.2) (2.5) (19.3%)	33.0 (2.6) 5.4 - 1.3 -	(10.6) - (0.6)	290.4 215.9 74.5 34.5% 57.7 48.3 9.4 19.4% (14.5) (13.8) (0.7) (4.8%)
Group 296.6 261.6 34.9 13.4%	39.6 (2.6)	(11.2)	333.6 250.4 83.2 33.2%

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Note 1: Underlying earnings is a Non-GAAP measure which adjusts for the impact of IFRS 16 Leases and net one-off costs.

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RECONCILIATION OF UNDERLYING AND STATUTORY NET ASSETS ADJUSTED FOR IFRS 16 LEASES

Net Assets as at 30 June 2020

Pre IFRS 16 A$m 30-Jun-20 IFRS 16 impact	Statutory 30-Jun-20
Current assets 2,020.6 (0.8) Non-current assets 1,435.4 291.5 Current liabilities (1,732.1) (35.5) Non-current liabilities (407.7) (260.6)	2,019.8
	1,727.0
	(1,767.6)
	(668.3)
Net Assets 1,316.3 (5.4)	1,310.9

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SEGMENT EARNINGS AND GOR MIX

Segment EBITDA Reconciliation Gross Operating Revenue (GOR) FY20

A$m	FY20	FY19	Var$	Var%
Healthcare
Statutory EBITDA	290.4	215.9	74.5	34.5%
_Iess_IFRS16 Leases	(33.0)	-	(33.0)
_add_One-off Costs	2.6	10.6	(8.0)
Underlying EBITDA	260.0	226.6	33.5	14.8%
Animal Care
Statutory EBITDA	57.7	48.3	9.4	19.4%
_Iess_IFRS16 Leases	(5.4)	-	(5.4)
Underlying EBITDA	52.3	48.3	4.0	8.3%
Corporate
Statutory EBITDA	(14.5)	(13.8)	(0.7)	4.8%
_Iess_IFRS16 Leases	(1.3)	-	(1.3)
_add_One-off Costs	-	0.6	(0.6)
Underlying EBITDA	(15.8)	(13.2)	(2.5)	19.3%
EBOS Group
Statutory EBITDA	333.6	250.4	83.2	33.2%
_Iess_IFRS16 Leases	(39.6)	-	(39.6)
_add_One-off Costs	2.6	11.2	(8.6)
Underlying EBITDA	296.6	261.6	34.9	13.4%

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13%
87%
13%
5% 49%
8%
FY20 GOR
Mix
25%
Health Care Pharmacy Contract Logistics
(Wholesale and retail)
Animal Care Institutional Healthcare Consumer Products
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28

COVID-19 SEASONALITY IMPACT

Government measures implemented in response to COVID-19 resulted in higher than normal relative revenue contribution in Q3 FY20 and lower than normal relative revenue contribution in Q4 FY20. Revenue improved towards the end of the financial year.

FY20 revenue seasonality by quarter (%)

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FY19 revenue seasonality by quarter (%)

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29

GLOSSARY OF TERMS AND MEASURES

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

Term	Definition
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.
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)
EBITDA	Earnings before interest, tax, depreciation and amortisation.
Underlying EBITDA	Earnings before interest, tax, depreciation, amortisation and adjusted for IFRS16 Leases and one-off items.
EBIT	Earnings before interest and tax.
Underlying EBIT	Earnings before interest and tax and adjusted for IFRS16 Leases and one-off items.
PBT	Profit before tax.
Underlying PBT	Profit before tax and adjusted for IFRS16 Leases and one-off items.
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 adjusted for IFRS16 Leases and one-off items.
One-off items	The net transaction costs incurred on M&A, transition costs for major new warehouses, restructuring costs and gains on sale of surplus property.
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 ‘Earnings per share’.
(EPS)
Underlying EPS	Underlying NPAT divided by the weighted average number of shares on issue during the period in accordance with IAS 33 ‘Earnings per share’.
Underlying Net Debt	Net debt excluding the impacts of IFRS16 Leases.
Net Debt : EBITDA	Ratio of Underlying net debt at period end to the last 12 months Underlying 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 (EBITA) divided by closing capital
Employed (ROCE)	employed (including a pro-rata adjustment for entities acquired, significant capital projects and strategic investments during the period).

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30

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www.ebosgroup.com

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