EBOS GROUP LIMITED — Investor Presentation 2021

Aug 17, 2021

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INVESTOR PRESENTATION Annual Financial Results Full year ended 30 June 2021 18 August 2021

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DISCLAIMER

The information in this presentation was prepared by EBOS Group Limited (“EBOS” or the “Group”) 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, NPAT, Underlying EBITDA, Underlying EBIT, Underlying NPAT, Underlying Earnings per Share, Free Cash Flow, Interest cover, Net Debt, Underlying 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 year year ended 30 June 2021.

All currency amounts are in Australian dollars unless stated otherwise.

All amounts are presented inclusive of IFRS16 Leases, except for periods FY19 and prior, unless stated otherwise.

Underlying results exclude the impact of one-off items. Refer to page 29 for the reconciliation of Statutory to Underlying earnings.

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2

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GROUP FINANCIAL RESULTS

3

FY21 SUMMARY RESULTS

EBOS’ strong performance has continued with another record result

$m Underlying Var Statutory Var	$m Underlying Var Statutory Var	$m Underlying Var Statutory Var
Revenue EBITDA EBIT NPAT EPS (cents) DPS (NZ cents) ROCE (%) Net debt : EBITDA (x)	9,203 5.0% 367.1 9.2% 294.5 11.9% 188.2 15.5% 114.9 14.0% 18.0% 0.9% 0.85x 0.26x	9,203 5.0% 363.3 8.9% 290.7 11.6% 185.3 14.0% 113.2 12.5% 88.5 14.2%

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Double-digit Increased dividends
Record ROCE Investing for growth Strong balance sheet
earnings growth to shareholders
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4

KEY HIGHLIGHTS

Strong organic growth in Healthcare and Animal Care and investing for future growth

Healthcare	•	Healthcare’s strong performance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”),
EBIT up 11.4%1		Institutional Healthcare and Contract Logistics businesses. Key highlights included:
		o Community Pharmacy wholesale volume growth;
		o TWC network sales growth of 5.3% and 36 net new trading stores added to the network;
		o Institutional Healthcare growth driven by specialty medicines and medical consumables demand and
		medical devices growth;
		o Acquisition of Pioneer Medical, a New Zealand based medical devices distribution business; and
		o Cost savings compared to last year primarily from improvements in productivity in wholesale operations.
Animal Care	•	Animal Care’s Vitapet, Black Hawk and Lyppard businesses maintained double-digit sales growth. Key highlights
EBIT up 26.4%		included:
		o Our key pet brands, Black Hawk and Vitapet strengthened their market positions and capitalised on strong
		pet care market conditions;
		o Lyppard continued its strong performance in the vet, retail and online channels, and benefitted from the
		acquisition of CH2’s vet distribution business announced in H1 FY21; and
		o Construction of a new state of the art pet food manufacturing facility.
Group	•	Excellent operating cash flow of $298.3m.
NPAT up 15.5%1	•	ROCE of 18.0%, which is a record for the Group.
	•	Further strengthened the balance sheet, with Net Debt : EBITDA reducing to 0.85x. EBOS has no debt maturities
		until H2 FY23.

5

Note 1: Growth rates are calculated based on Underlying EBIT and Underlying NPAT (as applicable).

BUSINESS AND SEGMENT PERFORMANCE

Our Healthcare and Animal Care businesses contributed positively to strong earnings growth

GOR bridge ($m)

Underlying EBIT bridge ($m)

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FY21
growth 2.5% 9.7% 18.7% 14.4% 7.2%
vs. pcp
+17.3
+14.6
+22.7
984.3
+12.0
917.8
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FY20 Community Inst. Contract Animal FY21 GOR Pharmacy Healthcare Logistics Care GOR (inc. Consumer Products)[1]

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11.4% 26.4% (49.9%) 11.9%
(7.8)
+13.1
+26.1
294.5
263.1
FY20 Healthcare Animal Corporate FY21
Underlying Care Underlying
EBIT EBIT
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Note 1: Community Pharmacy (excluding Consumer Products) GOR growth of $19.3m or 4.3%.

6

INVESTING FOR GROWTH

Consistent with our strategy of investing for growth, EBOS announces a significant Animal Care investment and a number of Healthcare acquisitions

Announced today

Pet Food Manufacturing Facility Investment

Medical Devices Distribution Acquisition

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Additional Acquisition

• A further acquisition for the Institutional Healthcare division

• High degree of confidence of execution in the near-term

Announced previously in FY21

Medical Devices Distribution Acquisition

Vet Wholesale Acquisition

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CH2’s vet wholesale division

See pages 8 and 9 for further details

7

PET FOOD MANUFACTURING FACILITY

EBOS will shortly commence manufacturing Black Hawk through our own new state of the art facility under construction in NSW, Australia

• ~$80m investment in construction of a new pet food manufacturing facility in NSW, Australia.

• Facilitates insource manufacturing of Black Hawk and accelerates new product development initiatives through the latest manufacturing technologies, allowing EBOS to capitalise on attractive market opportunities.

• Black Hawk has grown sales by more than 4 times under EBOS’ ownership and has reached significant scale. It is the leading premium dog food brand in the pet speciality channel in both Australia and New Zealand.

• This scale and brand awareness opens a range of strategic opportunities. Key benefits include:

• Flexibility and speed to market in new product development;

• Enhance control of product quality and safety and reduce 3[rd] party supply chain risk; and

• Capture manufacturer margin.

 Capture ma	nu	facturer margin.
Timing	•	Construction is well progressed and production will commence in H2 FY22
Facilities	•	Size: 12,000+ sqm
description	•	Location: Parkes, NSW, Australia
Investment	• •	Total investment of ~$80m ~$51m in H2 FY21; ~$29m in FY22
Expected	•	Consistent with the Group’s overall ROCE
return		over the medium term

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8

STRATEGIC ACQUISITIONS

EBOS has completed another acquisition in its medical devices distribution business and has a high degree of confidence of executing a further acquisition in the near term within the Institutional Healthcare division

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• Acquired 100% of Pioneer Medical Group, a New Zealand based importer and distributor of spine and major joint implants and associated surgical technologies for orthopaedic and neurosurgery.

• Represents our third medical devices distribution acquisition. The aggregate annualised revenue of the division is now more than $70m.

• Additional • A further acquisition for the Institutional Healthcare division acquisition • High degree of confidence of execution in the near-term

Aggregate features of the acquisitions:

~$80m consideration

~$50m annualised revenue

Strong strategic rationale

EPS accretive

Note 1: Consideration in New Zealand dollars converted to Australian dollars using exchange rate of 0.93. Note 2: Completion of each acquisition will take place after 30 June 2021.

9

ENVIRONMENT, SOCIAL AND GOVERNANCE

EBOS has today launched its ESG program and published its inaugural Sustainability Report

Our ESG program comprises five pillars

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10

GROUP PERFORMANCE

$m	FY21	FY20	Var	Var%
Underlying Results
Revenue	9,202.9	8,765.5	437.3	5.0%
GOR	984.3	917.8	66.5	7.2%
EBITDA	367.1	336.2	30.9	9.2%
Depreciation & Amortisation	72.6	73.1	0.5	0.7%
EBIT	294.5	263.1	31.4	11.9%
Net Finance Costs	27.6	30.4	2.8	9.1%
Profit Before Tax	266.8	232.7	34.2	14.7%
Net Profit After Tax	188.2	162.9	25.3	15.5%
Earnings per share - cps EBIT margin	114.9c 3.20%	100.8c 3.00%	14.1c 0.20%	14.0%
Net Debt1	271.3	327.2
Net Debt : EBITDA1	0.85x	1.11x
Statutory Results
Revenue	9,202.9	8,765.5	437.3	5.0%
EBITDA	363.3	333.6	29.7	8.9%
EBIT	290.7	260.5	30.2	11.6%
Profit Before Tax	263.0	230.1	33.0	14.3%
Net Profit After Tax	185.3	162.5	22.8	14.0%
Earnings per share - cps	113.2c	100.6c	12.6c	12.5%

• Revenue of $9,202.9m, an increase of $437.3m or 5.0%:

• Healthcare up 4.4%.

o Animal Care up 17.0%.

• Underlying EBIT of $294.5m, an increase of $31.4m or 11.9%:

• Healthcare up 11.4%.

• Animal Care up 26.4%.

• Underlying EBIT margin expanded to 3.20% (from 3.00%).

• Underlying NPAT and EPS increased by 15.5% and 14.0%, respectively.

• Net Debt : EBITDA ratio of 0.85x attributable to strong earnings growth and disciplined capital management.

Note 1: Net Debt and the Net Debt : EBITDA ratio excludes the impacts of IFRS16 Leases.

11

LONG TERM TRACK RECORD

EBOS has delivered consistent financial performance through the cycle

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Underlying EBIT ($m)
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Underlying EPS ($ cents per share)
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DPS (NZ$ cents per share)

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11.4% CAGR 10.6% CAGR 11.6% CAGR
295 115 89
263 101 78
185 204 218 230 77 86 90 94 59 63 69 72
160 66 47
138 57 41
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
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Return on capital employed (%)

Net Debt : EBITDA

Summary

15% target

Significant funding headroom

• Strong earnings growth.

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1.93x
16.7% [17.1%] 16.3% 15.9% [17.1%] [18.0%] 1.59x 1.80x 1.74x
14.6% 1.41x
12.9%
1.18x 1.11x
0.85x
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
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• Stable dividend growth and payout ratio.

• Disciplined focus on working capital management and cash flow generation.

• Disciplined focus on ROCE >15% target.

• Strong balance sheet with growth headroom.

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HEALTHCARE RESULTS

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HEALTHCARE SEGMENT

Healthcare segment Underlying EBIT growth of 11.4%, with strong performances in both Australia and New Zealand

$m	FY21	FY20	Var$	Var%
Revenue	8,705.4	8,340.4	364.9	4.4%
Underlying EBIT	254.9	228.9	26.1	11.4%
Underlying EBIT%	2.93%	2.74%
Australia
Revenue	6,920.6	6,676.5	244.2	3.7%
Underlying EBIT	216.0	192.2	23.9	12.4%
Underlying EBIT%	3.12%	2.88%
New Zealand
Revenue	1,784.7	1,664.0	120.8	7.3%
Underlying EBIT	38.9	36.7	2.2	6.0%
Underlying EBIT%	2.18%	2.20%

• Revenue growth of 4.4% was driven by the performances of Community Pharmacy, TWC, Institutional Healthcare and Contract Logistics.

• Underlying EBIT growth of 11.4% is primarily from increased wholesale sales, cost savings from productivity improvements, TWC’s performance and continued growth in our medical devices and Contract Logistic businesses.

Underlying EBIT ($m and %)

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2.85% 2.99% 2.93%
2.74%
2.60%
254.9
228.9
176.9 188.5 195.8
FY17 FY18 FY19 FY20 FY21
Underlying EBIT ($m) Underlying EBIT %
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COMMUNITY PHARMACY

• The Consumer Products division has been absorbed into Community Pharmacy effective 1 July 2021.

• Revenue increased by $184.4m (3.5%) and GOR increased by $12.0m (2.5%), benefitting from:

• Increased wholesale revenue in both Australia and New Zealand; and

• Strong performance of our community pharmacy retail brands, including TWC.

• Revenue was negatively impacted by PBS pricing reforms (approximately $83m).

• Productivity improvements in wholesale operations across all sites, particularly the Brisbane and Melbourne facilities.

	$m	FY21	FY20	Var ($)	Var (%)
	Revenue
	Community Pharmacy Consumer Products Total	5,289.3 100.6 5,390.0	5,090.2 115.4 5,205.6	199.2 (14.8) 184.4	3.9% (12.8)% 3.5%
	GOR
	Community Pharmacy	464.4	445.1	19.3	4.3%
	Consumer Products	34.7	42.0	(7.3)	(17.5)%
	Total	499.1	487.1	12.0	2.5%
	GOR %
	Community Pharmacy	8.78%	8.74%
	Consumer Products Total	34.4% 9.26%	36.4% 9.36%

• The 7th Community Pharmacy Agreement commenced from July 2020 and provides the wholesale business with additional certainty with increased CSO funding.

Revenue and GOR ($m)

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487 499
419 417
392
5,206 5,390
4,050 3,980 3,818
FY17 FY18 FY19 FY20 FY21
Revenue GOR
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15

TerryWhite Chemmart

that’s real chemistry

One of Australia’s leading community pharmacy networks with over 465 stores

Network sales growth in FY21

• TWC added 36 net new pharmacies to its national network in FY21, continuing its record growth in store numbers.

• Together with recent growth and a strong pipeline for new store openings, TWC is targeting 500 trading stores by 30 June 2022.

Total sales up 5.3% Like-for-like up 3.6%

• Above market growth in network sales with total sales up 5.3% and like-for-like sales up 3.6%.

• Growth in media spend outpacing the market, delivering strong brand improvements and maintaining our position as the second largest advertiser in the Australian retail pharmacy sector.

• Industry leading pharmacist education programs with over 1,000 delegates attending our signature ‘Masterclass’ event this year.

• Delivered a transformational change in supplier engagement levels according to the recent Advantage industry survey[1] .

• Over 400 TWC pharmacies across the country are supporting COVID-19 vaccinations in their communities with 300 already delivering the service.

• Continued pharmacist vaccination leadership in flu.

• Investment in MyTWC digital platform to enhance omnichannel capabilities.

Dispensary sales up 6.5% Like-for-like up 4.8% Script volumes up 4.4% Like-for-like up 2.6%

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Note 1: 2021 Advantage supplier survey.

16

INSTITUTIONAL HEALTHCARE

• Institutional Healthcare revenue increased by $120.9m (4.7%) and GOR increased by $22.7m (9.7%), largely from increases in new specialty medicines, combined with strong growth in the medical consumables sector and acquisitions in the medical devices sector.

• Symbion Hospitals revenue grew by 4.2% primarily from sales of specialty medicines.

	$m	FY21	FY20	Var$	Var%
	Revenue	2,686.0	2,565.1	120.9	4.7%
	GOR	255.9	233.2	22.7	9.7%
	GOR%	9.53%	9.09%

• Our businesses in both Australia and New Zealand benefitted from the continued customer demand for medical consumables.

• Continued expansion in medical devices distribution through the acquisitions of Pioneer Medical and Cryomed. We have now acquired three businesses and expect to generate aggregate annualised revenues of approximately $70m in this sector. We continue to pursue further bolt-on acquisitions focusing on those therapeutic areas that offer strong rates of organic growth.

• Compared with the higher first half GOR growth rate of 15.5%, the second half GOR growth of 4.6% reflects cycling of strong customer demand in H2 FY20 due to COVID-19 related demand.

Revenue and GOR ($m)

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196 210 233 256
144
2,565 2,686
2,336 2,240 2,293
FY17 FY18 FY19 FY20 FY21
Revenue GOR
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CONTRACT LOGISTICS

• Contract Logistics revenue increased by $95.3m (13.4%) and GOR by $14.6m (18.7%), attributable to growth in Australia due to an increased number of principals and increasing pharmaceutical principal sales, as well as growth in New Zealand with increased demand for protective equipment, testing kits and COVID-19 vaccines assisting our performance.

$m	FY21	FY20	Var$	Var%
Revenue	807.5	712.3	95.3	13.4%
GOR	92.3	77.7	14.6	18.7%

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

• Contract Logistics currently services approximately 160 overseas manufacturers and is well placed for further growth in Australia and New Zealand.

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Revenue and GOR ($m)
92
78
67
61
59
808
712
518
468 454
FY17 FY18 FY19 FY20 FY21
Revenue GOR
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ANIMAL CARE RESULTS

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ANIMAL CARE SEGMENT

Animal Care has continued to capitalise on strong pet market conditions

$m	FY21	FY20	Var$	Var%
Revenue	497.5	425.1	72.4	17.0%
EBIT	62.9	49.8	13.1	26.4%
EBIT%	12.7%	11.7%

EBIT ($m and %)

• Animal Care revenue increased by $72.4m (17.0%) and EBIT increased by $13.1m (26.4%) due to strong performances by our key brands and businesses – Black Hawk, Vitapet and Lyppard.

• The Australian and New Zealand pet market continues to experience strong trading conditions, supported by well established trends, including the humanisation of pets, further accelerated by ongoing COVID-19 conditions that have resulted in people spending more time at home with their pets.

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12.7%
11.9%
11.2% 11.7%
9.7%
62.9
49.8
42.4 45.4
38.9
FY17 FY18 FY19 FY20 FY21
EBIT ($m) EBIT %
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• Black Hawk and Vitapet recorded double-digit sales growth and both brands continued to increase or maintain share in their respective market segments.

• Lyppard continued to perform strongly and the second half was further supported by the acquisition of CH2’s vet wholesale distribution business in November 2020.

• Investment in the new state of the art pet food manufacturing facility allows insourced manufacturing of Black Hawk and accelerates new product development opportunities.

20

CONTINUED PRODUCT AND BRAND GROWTH

Our key brands and Lyppard demonstrated double-digit sales growth

	Categories	FY21 sales growth		Sales growth drivers
			•	Strong consumer support for our products.
Black Hawk		12.4%	•	Continued investment in marketing to drive increased brand awareness and
				retail support.
			•	Increasing market share in Australia and maintaining share in New Zealand.
Vitapet		10.1%	•	Strong new product pipeline.
			•	Marketing support to grow brand awareness.
			•	Growth in the online and retail channels and major customers within the Vet
Lyppard		20.7%		channel.
			•	Acquisition of CH2’s vet distribution business.

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FINANCIAL INFORMATION AND CURRENT TRADING

22

CASH FLOW

$m FY21 FY20 Var$ Var% Statutory EBITDA 363.3 333.6 29.7 8.9% Net interest paid (27.6) (30.4) 2.8 Tax paid (72.2) (69.0) (3.2) Net working capital and other movements 34.8 (5.0) 39.8 Cash from Operating activities 298.3 229.2 69.1 30.1% Capital expenditure – pet food facility (50.9) - (50.9) Capital expenditure – Business as usual (31.1) (28.9) (2.2) Capital expenditure – Net (82.0) (28.9) (53.1) Free Cash Flow 216.3 200.3 16.0 8.0%

Cash from Operating activities ($m) 136.2 162.1 118.5 229.2 298.3

FY17 FY18 FY19 FY20 FY21

• Operating Cash Flow of $298.3m is above the last year by $69.1m, driven by strong earnings growth and continued disciplined working capital management.

• Business as usual capex of $31.1m relates to group operations. Pet food manufacturing facility capex of $50.9m incurred within H2 FY21 is expected to generate returns consistent with the Group’s overall ROCE over the medium term.

23

WORKING CAPITAL AND ROCE

Working Capital

Return on Capital Employed (ROCE)

$m	FY21	FY20	FY19
Net Working Capital
Trade receivables	1,098.9	984.6	865.7
Inventory	784.8	737.7	723.5
Trade payables/other	(1,622.3)	(1,417.2)	(1,307.3)
Total	261.3	305.1	281.9
Cash conversion days	14	15	18

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18.0%
17.1% 17.1%
16.3%
15.9%
FY17 FY18 FY19 FY20 FY21
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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 14 days.

• Return on Capital Employed of 18.0% at June 2021 is above June 2020 by 0.9% and is a record for the Group.

• Reflects strong earnings growth and disciplined capital management.

24

NET DEBT AND MATURITY PROFILE

Net Debt and Net Debt : EBITDA ratio[1]

Cash and Debt Maturity Profile

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1.80x 1.74x
1.41x
1.11x
0.85x
413 432
366
327
271
Jun-17 Jun-18 Jun-19 Jun-20 Jun-21
Net Debt Net Debt : EBITDA Ratio
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572
407
293
250
68
169
75
225
165 25
- 50
Cash on FY22 FY23 FY24 FY25 FY26
Hand
Drawn amount Committed and available facilities
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• Net Debt[1] of $271m at June 2021, with a Net Debt : EBITDA[1] ratio of 0.85x (1.11x at June 2020).

• Current gearing retains significant capacity to fund future growth opportunities.

• In H2 FY21, EBOS entered into a new $75m secured term debt facility for the construction of the new pet food manufacturing facility. The facility expires in June 2026.

• EBOS has no maturities in its debt facilities until H2 FY23.

25 Note 1: Net Debt and the Net Debt : EBITDA ratio excludes the impacts of IFRS16 Leases.

EARNINGS AND DIVIDENDS PER SHARE

Underlying Earnings per Share (A$ cents)

Dividends per Share (NZ$ cents)

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114.9
100.8
94.2
90.4
86.3
57.2
49.5
41.6 44.4 46.4
57.8
44.7 46.0 47.8 51.3
FY17 FY18 FY19 FY20 FY21
H1 H2
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88.5
77.5
71.5
68.5
63.0
46.0
40.0
35.5 37.0
33.0
30.0 33.0 34.5 37.5 42.5
FY17 FY18 FY19 FY20 FY21
H1 H2
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• Underlying EPS of 114.9 cents representing growth of 14.0% in FY21.

• Final dividend of 46.0 NZ cents declared (imputed to 25% and franked to 100% for New Zealand and Australian tax resident shareholders, respectively).

• Total dividends declared for FY21 of 88.5 NZ cents representing growth of 14.2%.

• Full year dividend payout ratio of 72%, on an underlying basis[1] .

• Reflecting the Group’s strong operating performance, cash flow and balance sheet, the DRP will not be available for the final dividend.

• EBOS is pleased to advise shareholders that it has revised its dividend policy to declare dividends representing between 60% to 80% of NPAT (reflecting an improvement compared to the previous policy of declaring dividends not less than 60% of NPAT). The average payout ratio over the last five years has been approximately 72%.

26 Note 1: Dividend payout ratio calculated on an underlying basis based on a NZD:AUD exchange rate of 0.932.

FY22 OUTLOOK

• EBOS is pleased with the strong earnings growth in FY21 and expects to be able to generate further growth in FY22.

• The Group’s portfolio of businesses has proven to be very resilient throughout the COVID-19 pandemic, however lockdowns in New Zealand and Australia are evidence of the material uncertainties that exist and that may impact upon the Group’s future trading performance.

• Capital expenditure for FY22 is expected to remain elevated as a result of the completion of the new pet care manufacturing facility, which will result in additional expenditure of approximately $30 million over and above business-as-usual capex.

• EBOS has a strong balance sheet and is well positioned to pursue growth opportunities.

• A performance update will be provided to shareholders at the Annual Meeting on 19 October 2021.

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SUPPORTING INFORMATION

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RECONCILIATION OF STATUTORY TO UNDERLYING RESULTS

	FY21	FY20 EBITDA EBIT PBT NPAT 333.6 260.5 230.1 162.5 2.6 2.6 2.6 2.1 - - - (1.7) 2.6 2.6 2.6 0.3 336.2 263.1 232.7 162.9
$m	EBITDA EBIT PBT NPAT
Statutory result Transaction costs incurred on M&A Tax credit for NZ depreciation charge	363.3 290.7 263.0 185.3 3.8 3.8 3.8 2.9 - - - -
Net of one-off items	3.8 3.8 3.8 2.9
Underlying result1	367.1 294.5 266.8 188.2

Note 1: Underlying results is a Non-GAAP measure which adjusts for the effects of one-off items.

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SEGMENT EBITDA AND EBIT RECONCILIATION

EBITDA $m FY21 FY20 Var$ Var% Healthcare Pre IFRS16 280.0 257.4 22.5 8.8% _add_IFRS16 impact 36.2 33.0 3.3 Statutory 316.2 290.4 25.8 8.9% _add_One-off items 3.8 2.6 1.2 Underlying 320.0 293.0 27.0 9.2% Animal Care Pre IFRS16 63.6 52.3 11.4 21.7% _add_IFRS16 impact 5.7 5.4 0.3 Statutory 69.4 57.7 11.7 20.3% Corporate Pre IFRS16 (23.6) (15.8) (7.8) (49.7%) _add_IFRS16 impact 1.3 1.3 0.0 Statutory (22.3) (14.5) (7.8) (54.0%) EBOS Group Pre IFRS16 320.0 294.0 26.1 8.9% _add_IFRS16 impact 43.3 39.6 3.6 Statutory 363.3 333.6 29.7 8.9% _add_One-off items 3.8 2.6 1.2 Underlying 367.1 336.2 30.9 9.2%	EBIT
	FY21 FY20 Var$ Var%
	248.2 224.3 23.8 10.6% 2.9 1.9 1.0
	251.1 226.3 24.9 11.0% 3.8 2.6 1.2
	254.9 228.9 26.1 11.4% 62.5 49.6 12.9 26.1% 0.4 0.2 0.2
	62.9 49.8 13.1 26.4% (23.6) (15.7) (7.8) (49.7%) 0.2 0.1 0.0
	(23.4) (15.6) (7.8) (49.9%) 287.1 258.2 29.0 11.2% 3.5 2.3 1.2
	290.7 260.5 30.2 11.6% 3.8 2.6 1.2
	294.5 263.1 31.4 11.9%

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Note 1: Underlying results is a Non-GAAP measure which adjusts for the effects of one-off items.

RECONCILIATION OF CHANGES TO IFRS16 LEASE ACCOUNTING: INCOME STATEMENT

	IFRS16	Impact
Statutory pre IFRS16			Statutory
$m FY21 FY20 Var$ Var%	FY21	FY20	FY21 FY20 Var$ Var%
Group Income Statement Revenue 9,202.9 8,765.5 437.3 5.0% Gross Operating Revenue 984.3 917.8 66.5 7.2% EBITDA 320.0 294.0 26.1 8.9% Depreciation & Amortisation 32.9 35.8 2.9 8.1% EBIT 287.1 258.2 29.0 11.2% Net Finance Costs 19.9 22.3 2.3 10.5% Profit Before Tax 267.2 235.9 31.3 13.3% Tax Expense / (Benefit) 80.2 68.9 (11.3) (16.4%) Outside Equity Interest 1.2 1.0 0.2 24.5% Net Profit after Tax 188.2 168.0 20.2 12.0% Earningsper share - cps 115.0c 104.0c 11.0c 10.6%	- - 43.3 39.7 3.5 7.7 (4.2) (1.2) - (2.9) (1.8)	- - 39.6 37.3 2.3 8.1 (5.8) (0.4) - (5.5) (3.4)	9,202.9 8,765.5 437.3 5.0% 984.3 917.8 66.5 7.2% 363.3 333.6 29.7 8.9% 72.6 73.1 0.5 0.7% 290.7 260.5 30.2 11.6% 27.6 30.4 2.8 9.1% 263.0 230.1 33.0 14.3% 79.0 68.5 (10.4) (15.2%) 1.2 1.0 0.2 24.5% 185.3 162.5 22.8 14.0% 113.2c 100.6c 12.6c 12.5%
EBITDA by Segment Healthcare 280.0 257.4 22.5 8.8% Animal Care 63.6 52.3 11.4 21.7% Corporate (23.6) (15.8) (7.8) (49.7%)	36.2 5.7 1.3	33.0 5.4 1.3	316.2 290.4 25.8 8.9% 69.4 57.7 11.7 20.3% (22.3) (14.5) (7.8) (54.0%)
Group 320.0 294.0 26.1 8.9%	43.3	39.6	363.3 333.6 29.7 8.9%
EBIT by Segment Healthcare 248.2 224.3 23.8 10.6% Animal Care 62.5 49.6 12.9 26.1% Corporate (23.6) (15.7) (7.8) (49.7%)	2.9 0.4 0.2	1.9 0.2 0.1	251.1 226.3 24.9 11.0% 62.9 49.8 13.1 26.4% (23.4) (15.6) (7.8) (49.9%)
Group 287.1 258.2 29.0 11.2%	3.5	2.3	290.7 260.5 30.2 11.6%

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COVID-19 FINANCIAL IMPACTS

The estimated net overall financial impact from COVID-19 on the Group in FY21 was slightly positive

• Positive impacts Negative impacts • Sales impacted as a result of lockdowns which drove lower foot traffic in some retail pharmacies, especially in

• • Institutional Healthcare benefitted from increased CBDs, as well as a reduced cough and cold season. demand for protective equipment. • Consumer Products sales were impacted by lower daigou

• • Contract Logistics benefitted from customer sales, category declines (particularly from a reduced cold requirements mainly for protective equipment, testing and flu season) and delays in product supply. kits and COVID-19 vaccines. • Institutional Healthcare sales were impacted by reduced GP visitations and reduced travel vaccines.

• Black Hawk, Vitapet and Lyppard benefitted from increased consumer spending on pets.

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

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COVID-19 SEASONALITY IMPACT

The Group’s revenue seasonality returned to pre COVID-19 trends in FY21 as last year included higher than normal revenue in Q3 FY20 and lower than normal revenue in Q4 FY20.

Revenue Seasonality by quarter (%)

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27.3%
25.6% 25.5% 25.8% 25.7% 25.4%
24.8% 24.4% 24.8%
23.9% 24.0%
22.8%
Q1 Q2 Q3 Q4
FY19 FY20 FY21
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GLOSSARY OF TERMS AND MEASURES

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

Term	Definition
Revenue	Revenue from the sale of goods and the rendering of services.
Gross Operating Revenue (GOR)	Revenue less cost of sales and the write-down of inventory.
EBITDA	Earnings before interest, tax, depreciation and amortisation.
Underlying EBITDA	Earnings before interest, tax, depreciation, amortisation and adjusted for one-off items.
EBIT	Earnings before interest and tax.
Underlying EBIT	Earnings before interest and tax and adjusted for one-off items.
PBT	Profit before tax.
Underlying PBT	Profit before tax and adjusted for 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 one-off items.
One-off items	Transaction costs incurred on M&A activities and tax credit for NZ depreciation charge.
Free Cash Flow	Cash from operating activities less capital expenditure net of proceeds from disposals.
Earnings per share (EPS)	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’.
IFRS	International Financial Reporting Standards.
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 Employed (ROCE)	Underlying earnings before interest, tax and amortisation of finite life intangibles for 12 months (EBITA) divided by closing capital employed (excluding IFRS16 Leases and including a pro-rata adjustment for entities recently acquired, significant capital projects and strategic investments during the period).

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www.ebosgroup.com

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