Half Year Results
16 February 2022
MARKET RELEASE
NZX/ASX Code: EBO
EBOS 2022 Half-Year Results
EBOS REPORTS ANOTHER RECORD RESULT AND CONTINUED DOUBLE-DIGIT GROWTH
Key highlights of the first half included:
• Revenue of $5.3 billion (up 12.8%);
• Underlying Net Profit after Tax
of $109.3 million (up 15.8%);
o $7.4 million of M&A transaction costs (post-tax) were incurred in Statutory NPAT.
• Underlying EPS of 66.6 cents up 15.2%;
• Interim dividend declared of NZ 47.0 cents per share (up 10.6%);
• Continued strong performances from both our Healthcare and Animal Care segments, with
Healthcare’s Underlying EBIT up 17.0% and Animal Care’s EBIT up 14.9%;
• Operating cash flow of $106.8 million (up 8.1%);
• Consistent with our strategy of investing for growth and as previously announced:
o the Group completed three acquisitions to further expand its Institutional Healthcare
division, including Sentry Medical, Pioneer Medical and MD Solutions; and
o the Group reached agreement to acquire LifeHealthcare, which will establish EBOS as
a leading distributor of medical devices in Australia, New Zealand and South East Asia.
• Commenced the commissioning phase of our new state of the art pet food manufacturing
facility in Parkes, NSW.
A$
1
Underlying Results Statutory Results
Total Revenue $5,250.9m up 12.8% $5,250.9m up 12.8%
EBITDA $207.7m up 12.8% $199.9m up 9.7%
EBIT $169.1m up 14.4% $161.3m up 10.6%
Net Profit after Tax $109.3m up 15.8% $101.9m up 9.7%
Earnings per Share 66.6 cents up 15.2% 61.4 cents up 8.0%
Operating cash flow n/a $106.8m up 8.1%
ROCE 18.2% up 0.7% n/a
Net Debt : EBITDA
2
1.28x up 0.28x n/a
Interim Dividend n/a NZ 47.0cps up 10.6%
1
All amounts included are denoted in Australian dollars unless otherwise stated.
2
Calculated in accordance with banking covenants and excludes $628.3m of net cash proceeds raised via the December
2021 share placement in connection with the expected acquisition of LifeHealthcare. Including the proceeds of the share
placement, EBOS had net cash of $226 million as at 31 December 2021.
2
EBOS Group Limited (“EBOS” or the “Group”) today announced another record result for the first half
of the 2022 financial year, including double-digit underlying earnings growth.
In commenting on today’s results announcement, EBOS Chief Executive Officer, John Cullity said:
“We are pleased to report another record result for EBOS on the back of particularly strong revenue
growth across our key Healthcare and Animal Care segments.”
“Both segments continued their strong growth trajectory, reinforcing the value of our diverse
portfolio of businesses and the successful execution of our strategy of pursuing both organic and
inorganic growth.”
“The strong growth of our Healthcare segment was driven by our Community Pharmacy, TerryWhite
Chemmart (“TWC”), Institutional Healthcare and Contract Logistics businesses. The Community
Pharmacy division’s performance was particularly pleasing, resulting from customer growth, market
share gains and the return of Pfizer’s retail pharmacy volumes to the wholesale channel.”
In noting the growth of the Community Pharmacy and TWC businesses, Mr Cullity acknowledged the
tireless efforts of the pharmacist community over the past two years.
“The commitment to our communities by all pharmacists and their teams during the pandemic has
been nothing short of extraordinary. From day one of the pandemic pharmacists have remained
open, providing guidance, care and comfort for their patients and customers.”
Mr Cullity also praised the TWC network which has been at the forefront of Australia’s vaccination
drive, providing COVID-19 vaccinations and booster shots with the convenience and accessibility of
our network clearly resonating with those seeking vaccination. “The TWC pharmacy network has
been responsible for delivering 23% of all pharmacy delivered COVID-19 vaccinations in Australia and
we are proud of our efforts to support the health of our communities during the pandemic.”
3
Mr Cullity also commented on the strong performance of the Group’s Animal Care businesses.
“The Animal Care segment continues to build on its track record of outstanding performance which
was driven by solid sales growth across our Black Hawk, Vitapet and Lyppard businesses. We
continue to benefit from strong market dynamics as well as the strength of our leading brands and
market positions. Construction of our new state of the art pet food manufacturing facility in Parkes,
NSW has been completed and the project has now progressed through to the commissioning phase
with the full commercial benefits of this investment expected in FY24.
“EBOS has continued its strategy of investing for growth, with three acquisitions completed in the
first half of the 2022 financial year. The Pioneer Medical, MD Solutions and Sentry Medical
acquisitions further strengthen our presence in the Institutional Healthcare sector and are EPS
accretive to EBOS shareholders.”
“In addition, in December 2021 EBOS announced an agreement to acquire LifeHealthcare, which is
expected to establish EBOS as a leading independent medical devices distributor in Australia, New
Zealand and South East Asia. This acquisition will build on our previous investments in the medical
devices sector, which have contributed to the strong growth reported this period.”
3
Source: Australian Immunisation Register as at 12 January 2022
3
In commenting on today’s result, EBOS Chair, Elizabeth Coutts said:
“It is pleasing to see EBOS continue its trajectory of strong growth across its leading Healthcare and
Animal Care businesses in New Zealand and Australia for the first half of FY22. This is a reflection of
the commitment from our people across New Zealand and Australia in ensuring that EBOS fulfils its
responsibility of providing essential healthcare and animal care services for our customers and
communities. EBOS’ adherence to its strategy of investing for the long-term has allowed our business
to continue its strong growth and improved returns for our valued shareholders.”
Healthcare
Healthcare
A$
31 December
2021
31 December
2020
Growth
Revenue $4,976.9m $4,409.5m 12.9%
Statutory EBIT $142.9m $126.9m 12.6%
Underlying EBIT¹ $150.7m $128.8m 17.0%
¹ Underlying EBIT excludes the impact of one-off costs.
Our Healthcare segment generated revenue of $5.0 billion and Underlying EBIT of $150.7 million, an
increase of 12.9% and 17.0% respectively on the prior corresponding period. This growth was driven
by the performances of our Community Pharmacy, TWC, Institutional Healthcare and Contract
Logistics businesses.
In Australia, Healthcare revenue increased to $3.9 billion and Underlying EBIT increased to $122.8
million, an increase of 12.0% and 13.1% respectively. In New Zealand, Healthcare revenue increased
to $1.0 billion and Underlying EBIT increased to $27.9 million, an increase of 16.1% and 37.8%
respectively.
Community Pharmacy revenue increased by $416.9 million (up 15.2%), driven by customer growth,
market share gains and the return of Pfizer’s retail pharmacy volumes to the wholesale channel. The
drivers of this growth included the strong performances from our community pharmacy retail brands
and growth in both ethical and OTC wholesale sales.
TWC welcomed 16 net new pharmacies during the period, bringing total network stores to over 480.
We continue to see a strong store growth pipeline and this reinforces TWC’s position as Australia’s
largest health-advice oriented community pharmacy network. TWC network sales grew by 7.4% and
on a like-for-like basis increased by 5.6%. This performance was driven by new store growth,
continued increases in media spend and improved promotional and category initiatives.
Institutional Healthcare continued to perform well with first half revenue growth of $113.7 million
(up 8.4%), largely from increases in sales of new specialty medicines, combined with strong organic
and inorganic growth in the medical consumables and medical devices businesses, which included
the completed acquisitions of Sentry Medical, Pioneer Medical and MD Solutions.
4
Contract Logistics increased Gross Operating Revenue by $16.5 million (up 37.6%), attributable to
growth in Australia due to an increase in market share, as well as growth in New Zealand with
increased demand for protective equipment, testing kits and COVID-19 vaccines assisting our
performance.
Animal Care
Animal Care
A$
31 December
2021
31 December
2020
Growth
Revenue $274.0m $243.8m 12.4%
EBIT $35.3m $30.7m 14.9%
Our Animal Care segment generated revenue of $274 million and EBIT of $35.3 million, an increase of
12.4% and 14.9% respectively on the prior corresponding period.
The Animal Care segment continues to benefit from the strength of our trusted brands and leading
market positions, combined with the strong tailwinds of the Australian and New Zealand pet care
markets. Our key brands, Black Hawk and Vitapet, both recorded strong increases in revenue, up
19.6% and 9.8% respectively. Black Hawk continues to increase its market share in New Zealand and
Vitapet maintained its leading market position in both Australia and New Zealand, benefiting from
continued marketing investment.
The commissioning of our new state of the art pet food manufacturing facility has commenced and is
scheduled for completion by the end of FY22. The new facility will facilitate insource manufacturing
of Black Hawk as well as accelerate new product development opportunities.
LifeHealthcare acquisition update
On 9 December 2021, EBOS announced an agreement to acquire LifeHealthcare for $1,167 million.
LifeHealthcare is one of the largest independent distributors of third party medical devices,
consumables, capital equipment and inhouse manufactured allograft material in Australia, New
Zealand and South East Asia. At the time of announcement, the transaction remained subject to
regulatory approvals and a number of other conditions.
Since the announcement, the retail offer was successfully completed in January 2022 with strong
support from retail shareholders, which resulted in EBOS upsizing the retail offer by $62 million to
$161 million and the share placement was also successfully completed in December 2021 with strong
support from both existing and new investors. EBOS is progressing the remaining completion steps
and the transaction remains on track to complete prior to the end of FY22.
5
Environmental, Social and Governance
EBOS continues to develop initiatives to achieve the goals set out in its inaugural Sustainability
Report that was developed across five pillars: Health & Animal Care Partners, Consumers & Patients,
Community & Environment, Our People and Responsible Business.
The immediate areas of focus for EBOS moving forward are Environmental Stewardship, Packaging
Waste, Ethical Sourcing, Quality, Our People and Data Security. These are key initiatives that have
been identified as most pertinent to ensuring we meet our short and medium term ESG objectives
across our business operations.
Safety is another key focus area within our ESG Program and we are committed to providing all our
people with a safe and healthy work environment and actively promoting workplace health and
wellbeing. Through this continued focus on reducing risk across our workplaces, we have achieved a
22% reduction in our recordable injury frequency rate (TRIFR) in the first half of the 2022 financial
year.
Despite the ongoing impacts of COVID-19, we also remain committed to supporting a range of
environmental, philanthropic and wellbeing activities across the business. While it has been
necessary to move some of these initiatives to an online environment, it is pleasing to report
continued high levels of engagement from our people. During the period, we activated a range of
initiatives, including recognising RUOK? Day, Mental Health Awareness Week and driving
participation in STEPtember as part of our Be Well From Anywhere Program, providing a range of
opportunities to support the mental and physical wellbeing of our people.
COVID-19 Update
The EBOS Pandemic Response Team, consisting of the CEO and his direct reports, continues to
oversee all COVID-19 related matters impacting our employees and businesses. Throughout the
pandemic, the Pandemic Response Team has overseen the implementation of thorough health and
safety protocols with the objective of keeping both our employees safe and our primary distribution
facilities open to ensure the uninterrupted supply of medicines and services across the community.
The impacts of lockdowns and other restrictions has placed extra demands on the business and our
employees. The wellbeing and safety of all EBOS employees is paramount and we have invested in
extra resources to assist them through the pandemic. We have been focused on informing and
supporting our employees by frequently updating them on developments, issuing personal safety
and protection messages and providing general wellbeing advice and support for them and their
families. Over the last 12 months, EBOS has also distributed over 2,200 care packs to our employees.
Another important focus for the Group has been vaccination for all employees. In August 2021, we
introduced an incentive program that is available to all fully vaccinated employees, and we are also
providing flexibility for staff to get vaccinated during work hours. Through consultation with our
6
workforce, EBOS introduced the COVID-19 Workplace Vaccination Policy (Australia) in December
2021 and we continue to take all reasonably practicable steps to protect our employees and others
from the risks of COVID-19.
Linked to the employee vaccination incentive program EBOS committed to providing a donation to
UNICEF’s VaccinAid appeal for every employee fully vaccinated, and who applied for the incentive, as
at January 2022. The total amount committed to UNICEF was in excess of $215,000. The funds raised
will go towards UNICEF’s work to ensure that health workers, teachers, social workers and the most
vulnerable in every country are protected from COVID-19 and that patients get the urgent medical
supplies and oxygen they need.
It has been reassuring to see so many of our employees committed to protecting themselves and
their families, their colleagues and the wider community by getting vaccinated.
Cash Flow, Net Debt and Return on Capital Employed
First half operating cash flow was $106.8 million, an 8.1% increase on the prior corresponding period.
Net capital expenditure for the period was $43.3 million and comprised business as usual capex of
$17.3 million and $26.0 million of growth capital expenditure in relation to the new pet food
manufacturing facility.
During the period the Group completed a number of acquisitions for aggregate consideration of
approximately $107 million.
Return on Capital Employed (“ROCE”) of 18.2% was up 0.7% compared to 31 December 2020. This
reflects our commitment to earnings growth and disciplined capital management.
Excluding the proceeds of the share placement (December 2021) in connection with the
LifeHealthcare acquisition, the Group’s Underlying Net Debt : EBITDA ratio at 31 December 2021 was
1.28x. This is slightly higher than the prior year reflecting the level of investment activity undertaken
in the current period.
Interim Dividend
The Directors declared an interim dividend of NZ 47.0 cents per share, an increase of 10.6% on the
prior corresponding period. This implies a dividend payout ratio of 77.4% on an underlying basis (or
67.3% excluding dividends paid on the new shares issued under the capital raisings in connection
with the expected LifeHealthcare acquisition).
4
4
Dividend payout ratio calculated on an underlying basis based on a NZD:AUD exchange rate of 0.953.
7
The Dividend Reinvestment Plan (DRP) will not be operational for the interim dividend in light of
EBOS’ decision to accept oversubscriptions and upsize the recently completed retail offer in
connection with the expected LifeHealthcare acquisition.
The record date for the dividend is 4 March 2022 and the dividend will be paid on 18 March 2022.
The interim dividend will be imputed to 25%
5
for New Zealand tax resident shareholders and fully
franked for Australian tax resident shareholders.
EBOS reiterates its policy of declaring dividends representing between 60% to 80% of NPAT.
Corporate costs and one-off M&A costs
Corporate costs increased by $5.2 million during the half, which primarily reflects investment in a
project to enhance our IT security, the majority of which is not expected to recur in future periods.
During the period EBOS had higher than usual levels of M&A activity, completing three bolt-on
acquisitions (Sentry Medical, Pioneer Medical and MD Solutions) and announcing the agreement to
acquire LifeHealthcare. These four businesses are expected to generate aggregate annualised
revenue of more than $400 million. We incurred $7.4 million (post tax) of one-off costs associated
with these acquisitions (compared to $1.5 million (post tax) of one-off M&A costs in the prior
corresponding period) and these costs are excluded from underlying earnings. These costs included
advisory, consulting, regulatory and other transaction costs. Further one-off M&A costs of
approximately $19 million are expected to be incurred in H2 FY22 in connection with completion of
the LifeHealthcare acquisition. A reconciliation of the statutory and underlying result is contained in
the Appendix.
Trading Update
EBOS is pleased with the strong earnings growth in the first half of FY22 and we continue to be
comfortable with current trading conditions however, it is uncertain what the ongoing disruptions
caused by COVID-19 variants will have on EBOS’ trading performance.
Capital expenditure for the remainder of FY22 is expected to remain elevated as a result of continued
investment in our operational infrastructure to support the Group’s growth.
EBOS expects the acquisition of LifeHealthcare will be completed before the end of FY22 and
anticipates that Net Debt : EBITDA at 30 June 2022 following completion will be less than 2.25x.
5
The New Zealand company tax rate is 28%. Therefore, a dividend that is partially imputed with 25% of the maximum
allowable imputation credits implies an 8.86% imputation percentage in relation to the gross taxable amount of the
dividend.
8
This media release, the half-year results and related materials were authorised for lodgement with
NZX and ASX by the Board of EBOS Group Limited.
For further information, please contact:
Media: Investor Relations:
New Zealand Martin Krauskopf
Geoff Senescall General Manager, M&A and Investor Relations
Senescall Akers EBOS Group
+64 21 481 234 martin.krauskopf@ebosgroup.com
Australia:
Patrick Rasmussen
PRX
+61 430 159 690
Financial Results Presentation webcast link:
https://edge.media-server.com/mmc/p/umcdgzu9
About EBOS Group
EBOS Group Limited NZBN 9429031998840 (NZX/ASX Code: EBO) 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 brand owner, product marketer and distributor.
9
Appendix 1 – Reconciliation of Statutory to Underlying Result
Note 1: Underlying result is a non-GAAP measure which adjusts for the effects of one-off items. Transaction costs primarily
relate to consulting and regulatory costs incurred in relation to the acquisitions of LifeHealthcare, Sentry Medical, Pioneer
Medical and MD Solutions.
H1 FY22H1 FY21
$m
EBITDAEBITPBTNPATEBITDAEBITPBTNPAT
Statutory result199.9 161.3 147.5 101.9 182.2 145.9 131.9 92.9
Transaction costs incurred on M&A
7.8 7.8 7.8 7.4 1.9 1.9 1.9 1.5
Underlying result
1
207.7 169.1 155.3 109.3 184.1 147.8 133.8 94.3
---
INVESTOR
PRESENTATION
Interim Financial Results
Half year ended 31 December 2021
16 February 2022
DISCLAIMER
2
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 withany 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, NetDebt,
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 statementsfor the half
year ended 31 December 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 26 for the reconciliation of Statutory to Underlying earnings.
GROUP
FINANCIAL
RESULTS
3
H1 FY22 SUMMARY RESULTS
4
$mUnderlyingVarStatutoryVar
Revenue5,25112.8%5,25112.8%
EBITDA207.712.8%199.99.7%
EBIT169.114.4%161.310.6%
NPAT109.315.8%101.99.7%
EPS (cents)66.615.2%61.48.0%
DPS (NZ cents)47.010.6%
ROCE (%)18.2%0.7%
Net debt : EBITDA (x)1.28x
1
0.28x
Double-digit
earnings growth
Continued ROCE
improvement
Strong balance sheet
Increased dividends
to shareholders
Investing for growth
EBOS’ strong performance has continued with another record half year result
Notes: 1. Excludes $628.3m of net cash proceeds raised via the December 2021 share placement in connection with the expected acquisition of
LifeHealthcare.
KEY HIGHLIGHTS
5
Healthcare
EBIT up 17.0%
1
•Healthcare’s strongperformance was driven by our Community Pharmacy, TerryWhite Chemmart (“TWC”),
Institutional Healthcare and Contract Logistics businesses. Key highlights included:
oCommunity Pharmacy wholesale volumes grew strongly driven by customer and market share growth and the
return of Pfizer’s retail pharmacy volumes to the wholesale channel;
oTWC network sales growth of 7.4% and 16 net new trading stores added to the network;
oInstitutional Healthcare growth driven by specialty medicines, medical consumables demand and medical
devices growth;
oContract Logistics seeing increased demand for protective equipment, testing kits and COVID-19 vaccines;
and
oThree acquisitions completed in H1 FY22 –Pioneer Medical, Sentry Medical and MD Solutions. We also
announced we have reached agreement to acquire LifeHealthcare which will create a leading ANZ and SE Asia
medical device distributor. This acquisition is expected to complete in H2 FY22.
Animal Care
EBIT up 14.9%
•Animal Care’s Black Hawk, Vitapet and Lyppard businesses maintained strong sales growth. Key highlights included:
oOur key pet brands, Black Hawk and Vitapet strengthened their market positions and capitalised on strong
pet care market conditions;
oLyppard experienced another period of solid growth primarily driven by sales in the vet channel; and
oConstruction completed and commissioning phase commenced at our new state of the art pet food
manufacturing facility in Parkes, NSW, with full commercial benefits expected in FY24.
Group
NPAT up 15.8%
1
•Excellent operating cash flow of $106.8m.
•ROCE of 18.2%, which is a record for the Group.
•Underlying Net Debt : EBITDA increased to 1.28x
2
due to investing for growth in acquisitions and capital
expenditure. EBOS has no debt maturities until H2 FY23.
Notes: 1. Growth rates are calculated based on Underlying EBIT and Underlying NPAT (as applicable). 2. Excludes $628.3m of net cash proceeds raised
via the December 2021 share placement in connection with the expected acquisition of LifeHealthcare.
Continued strong organic growth in Healthcare and Animal Care and investing for future growth
BUSINESS AND SEGMENT PERFORMANCE
GOR bridge ($m) Underlying EBIT bridge ($m)
Our Healthcare and Animal Care businesses contributed positively to strong earnings growth
10.5%25.4%37.6%17.2%17.7%17.0%
14.9%(44.5%)
14.4%
H1 FY22
growth
vs. pcp
H1 FY21
Underlying
EBIT
HealthcareAnimal
Care
Corporate H1 FY22
Underlying
EBIT
H1 FY21
GOR
Community
Pharmacy
Inst.
Healthcare
Contract
Logistics
Animal
Care
H1 FY22
GOR
6
488.6
575.0
+26.2
+32.0
+16.5
+11.7
147.8147.8
169.7
169.1169.1
+21.9
+4.6
(5.2)
EBOS Healthcare Distribution Centres
Sydney and Perth
Lyppard Distribution Centre
Brisbane
CONTINUED INVESTING FOR GROWTH
7
EBOS continued its strategy of driving future growth through investing in acquisitions and its operational
infrastructure
~$400m+
annualised revenue
AcquisitionsInfrastructure investments
Pet Care Manufacturing Facility
NSW
Contract Logistics Distribution Centre
Sydney
$43.3m
capital expenditure in H1 FY22
Notes: 1. Completion expected to occur before end of FY22.
1
LIFEHEALTHCARE ACQUISITION UPDATE
The LifeHealthcare acquisition remains on track for completion prior to the end of FY22
8
Notes: 1. Reflecting an AUD NZD exchange rate of 1.0499 as reported by the Reserve Bank of Australia as at 4pm AEDT, 8 December 2021 (being
the Placement close date) 2. Reflecting an AUD NZD exchange rate of 1.0595 as reported by the Reserve Bank of Australia as at4pm AEDT, 17
January 2022 (being the Retail Offer close date)
•On 9 December 2021, EBOS announced an agreement to acquire LifeHealthcare for $1,167m, representing an enterprise value of
approximately $1,275m on a 100% basis.
•LifeHealthcare is one of the largest independent distributors of third party medical devices, consumables, capital equipment andinhouse
manufactured allograft material in Australia, New Zealand and South East Asia.
•To fund the transaction, EBOS successfully completed a $642m
1
placement (“Placement”), a $161m
2
retail offer (“Retail Offer”), and has
entered into $540m of committed new term loan facilities (to be drawn on completion). In addition, $23m of scrip consideration will be
issued to certain LifeHealthcare management to support ongoing alignment.
•The Placement saw strong support from both existing shareholders and new investors, while EBOS elected to upsize the Retail Offer to
$161m
1
(from the original $100m
1
target size) to provide participating retail shareholders with their pro rata allocation (to the extent they
applied for this amount) or the maximum application amount.
•EBOS is progressing completion steps (including regulatory approvals) and the transaction remains on track to complete prior to the end
of FY22.
GROUP PERFORMANCE
•Revenue of $5,250.9m, an increase of $597.6m or 12.8%:
oHealthcare up 12.9%.
oAnimal Care up 12.4%.
•Underlying EBIT of $169.1m, an increase of $21.3m or
14.4%:
oHealthcare up 17.0%.
oAnimal Care up 14.9%.
•Underlying EBIT margin expanded to 3.22% (from
3.18%).
•Underlying NPAT and EPS increased by 15.8% and
15.2%, respectively.
•Increased Underlying Net Debt of $402.3m and Underlying
Net Debt : EBITDA of 1.28x reflects investing for growth in
acquisitions and capital expenditure
1
.
•Due to high levels of M&A activity during the period, $7.4m
(post tax) of one-off M&A costs were incurred that are
excluded from underlying NPAT (refer to page 26 for
further details).
9
$mH1 FY22H1 FY21VarVar%
Underlying Results
Revenue5,250.9 4,653.3 597.6 12.8%
GOR575.0 488.6 86.4 17.7%
EBITDA207.7 184.1 23.5 12.8%
Depreciation & Amortisation38.6 36.3 (2.3)(6.2%)
EBIT169.1 147.8 21.3 14.4%
Net Finance Costs13.8 14.1 0.3 1.8%
Profit Before Tax155.3 133.8 21.5 16.1%
Net Profit After Tax109.3 94.3 14.9 15.8%
Earnings per share -cps66.6c57.8c8.8c15.2%
EBIT margin3.22%3.18%0.04%
Underlying Net Debt
1
402.3 308.9
Underlying Net Debt : EBITDA
1
1.28x0.85x
Statutory Results
Revenue5,250.9 4,653.3 597.6 12.8%
EBITDA199.9 182.2 17.7 9.7%
EBIT161.3 145.9 15.4 10.6%
Profit Before Tax147.5 131.9 15.7 11.9%
Net Profit After Tax101.9 92.9 9.0 9.7%
Earnings per share -cps61.4c56.9c4.5c8.0%
Notes: 1. Underlying Net Debt and Underlying Net Debt : EBITDA ratio excludes the impacts of IFRS16 Leases and excludes $628.3m of net cash
proceeds raised via the December 2021 share placement in connection with the expected acquisition of LifeHealthcare. Including the proceeds of the
share placement, EBOS had net cash of $226 million as at 31 December 2021.
10
HEALTHCARE
RESULTS
HEALTHCARE SEGMENT
11
•Revenue growth of 12.9% was driven by the performances
of Community Pharmacy, TWC, Institutional Healthcare and
Contract Logistics.
•Underlying EBIT growth of 17.0% is primarily from increased
wholesale sales, strong performance from the growing TWC
network, increased demand for medical consumables and
medical devices and our Contract Logistics businesses.
Underlying EBIT ($m and %)
Healthcare segment Underlying EBIT growth of 17.0%, with strong performances in both Australiaand New
Zealand
$m
H1 FY22H1 FY21Var$Var%
Revenue4,976.94,409.5567.412.9%
Underlying EBIT150.7128.821.917.0%
Underlying EBIT%3.03%2.92%
Australia
Revenue3,937.13,514.0423.112.0%
Underlying EBIT122.8108.514.213.1%
Underlying EBIT%3.12%3.09%
New Zealand
Revenue1,039.8895.5144.316.1%
Underlying EBIT27.920.37.737.8%
Underlying EBIT%2.68%2.26%
95.5
99.2
115.8
128.8
150.7
2.81%
3.00%
2.78%
2.92%
3.03%
H1 FY18H1 FY19H1 FY20H1 FY21H1 FY22
Underlying EBIT ($m)Underlying EBIT %
•Revenue increased by $416.9m (15.2%) and GOR increased by
$26.2m (10.5%), benefitting from:
oCustomer and market share growth;
oStrong performance from our community pharmacy retail
brands, including TWC;
oAbove market growth in ethical sales to our major
wholesale customers;
oGrowth in OTC sales across a number of key categories,
primarily cold and flu, health management, natural
medicine and pain relief; and
oThe return of Pfizer’s retail pharmacy volumes to the
wholesale channel.
•GOR margin (%) reduced to 8.77% reflecting the impacts of
higher ethical sales mix, PBS pricing reforms and broadly stable
CSO income, reflecting the fixed nature of the CSO income
pool.
COMMUNITY PHARMACY
12
Revenue and GOR ($m)
$mH1 FY22H1 FY21Var$Var%
Revenue
3,152.82,735.9416.915.2%
GOR
276.5250.426.210.5%
GOR%
8.77%9.15%
2,073
1,952
2,620
2,736
3,153
214
214
241
250
277
H1 FY18H1 FY19H1 FY20H1 FY21H1 FY22
RevenueGOR
TerryWhiteChemmart
13
•TWC added 16 net new network partners to its national network in H1 FY22, continuing
its impressive growth in pharmacy numbers and growing the network to over 480 stores.
•A strong store growth pipeline supports expected continued momentum.
•Largest growth in media investment amongst national pharmacy brands at 12%,
delivering strong brand improvements and maintaining our position as the second
largest advertiser in the Australian retail pharmacy sector
1
.
•Above market growth in network sales with total sales up 7.4% and like-for-like sales up
5.6%.
•The TWC pharmacy network has been responsible for delivering 23% of all pharmacy
delivered COVID-19 vaccinations
2
in Australia and delivered over 1 million total
vaccinations (COVID-19 and other) across the country in the past 12 months
3
.
•Enhanced TWC catalogue and promotional program delivered 19.2% promotional sales
growth in pharmacies.
•TerryWhite Chemmart consumer brands grew 20% supported by the launch of 20 new
products and providing an excellent value option to customers.
•Continued investment in digital initiatives delivering improvements in online customer
engagement, booking system enhancements, OTC e-commerce and the initial
integration of E-script services.
that’s realchemistry
Network sales growth in H1 FY22
Total sales up 7.4%
Like-for-like up 5.6%
Dispensary sales up 9.9%
Like-for-like up 7.8%
Script volumes up 6.5%
Like-for-like up 4.5%
Notes: 1. Source: Landsberry & James AQX, December 2021. 2. Source: Australian Immunisation Register as at 12 January 2022. 3. Vaccinations include
Flu, COVID-19 and Whooping cough.
INSTITUTIONAL HEALTHCARE
•Institutional Healthcare revenue increased by $113.7m (8.4%)
and GOR increased by $32.0m (25.4%), largely from increases in
sales of new specialty medicines combined with strong organic
and inorganic growth in the medical consumables and medical
devices businesses.
•Symbion Hospitals revenue grew by 3.1% despite the impact of
lower volumes from a decline in elective surgery activity due to
COVID-19 restrictions. Our leading market share has remained
steady over the period.
•Our businesses in both Australia and New Zealand grew sales
from continued customer demand for medical consumables
including strong PPE sales.
•Continued expansion in this sector through the completed
acquisitions of Pioneer Medical, MD Solutions and Sentry
Medical.
Revenue and GOR ($m)
14
$mH1 FY22H1 FY21Var$Var%
Revenue1,474.31,360.6113.78.4%
GOR158.3126.332.025.4%
GOR%10.74%9.28%
1,143
1,148
1,252
1,361
1,474
98
102
109
126
158
H1 FY18H1 FY19H1 FY20H1 FY21H1 FY22
RevenueGOR
CONTRACT LOGISTICS
•Contract Logistics revenue increased by $52.7m (13.3%) and
GOR by $16.5m (37.6%), attributable to growth in Australia due
to an increase in market share, as well as growth in New
Zealand with increased demand for protective equipment,
testing kits and COVID-19 vaccines assisting our performance.
•Plans for a new distribution centre in Sydney are well
progressed with its opening expected during 2023.
Revenue and GOR ($m)
Note: GOR % not relevant as sales are predominantly on consignment.
15
$mH1 FY22H1 FY21Var$Var%
Revenue450.0397.352.713.3%
GOR60.544.016.537.6%
223
242
346
397
450
30
32
39
44
61
H1 FY18H1 FY19H1 FY20H1 FY21H1 FY22
RevenueGOR
16
ANIMAL
CARE
RESULTS
ANIMAL CARE SEGMENT
•Animal Care revenue increased by $30.2m (12.4%) and
EBIT increased by $4.6m (14.9%) due to strong
performances from our leading brands and businesses
–Black Hawk, Vitapet and Lyppard.
•The Australian and New Zealand pet market continues
to experience strong trading conditions, supported by
well established trends, including the humanisation of
pets, further accelerated by ongoing COVID-19
conditions that have resulted in an increased pet
population and people spending more time at home
with their pets.
•Black Hawk and Vitapet brands continued to either
increase or maintain share in their respective market
segments.
•Lyppard experienced another period of solid growth
primarily driven by sales in the vet channel.
•Construction completed and commissioning phase
commenced at our new state of the art pet food
manufacturing facility, with full earnings benefits
expected in FY24.
EBIT ($m and %)
Animal Care has continued to capitalise on strong pet market conditions
17
$m
H1 FY22H1 FY21Var$Var%
Revenue274.0243.830.212.4%
EBIT35.330.74.614.9%
EBIT%12.9%12.6%
20.5
22.9
24.5
30.7
35.3
10.8%
11.9%
11.6%
12.6%
12.9%
H1 FY18H1 FY19H1 FY20H1 FY21H1 FY22
EBIT ($m)EBIT %
Categories
H1 FY22
sales growth
1
Salesgrowth drivers
Black Hawk19.6%
•Strong consumer support for our products.
•Continued investment in marketing to drive increased brand awareness and
retail support.
•Increasing market share in New Zealand
Vitapet9.8%
•Maintaining market leading positions in Australia and New Zealand.
•Strong new product pipeline.
•Marketing support to grow brand awareness.
Lyppard8.9%
•Lyppard experienced another period of solid growth primarily driven by sales
in the vet channel.
CONTINUED PRODUCT AND BRAND GROWTH
Our key brands and Lyppard demonstrated solid sales growth
18
Notes: 1. Compared to the prior corresponding period.
19
FINANCIAL
INFORMATION
AND TRADING
UPDATE
CASH FLOW
20
•Operating Cash Flow of $106.8m is above last year by $8.0m (8.1%), driven by earnings growth and improvements in working
capital, partly offset by higher tax payments.
•Capex on the new pet food manufacturing facility of $26.0m was incurred within H1 FY22, with total spend on the project to date
of $78.3m. Business as usual capex of $17.3m relates to multiple operating sites and IT projects.
Cash from Operating activities ($m)
$m
H1 FY22H1 FY21
Var$Var%
Statutory EBITDA199.9 182.2 17.7 9.7%
Net interest paid(13.8)(14.1)0.3
Tax paid(66.8)(41.2)(25.6)
Net working capital and other movements(12.5)(28.2)15.7
Cash from Operating activities106.8 98.7 8.0 8.1%
Capital expenditure -Pet food facility(26.0)-(26.0)
Capital expenditure -Business as usual(17.3)(10.1)(7.2)
Capital expenditure -Net(43.3)(10.1)(33.2)
Free Cash Flow63.5 88.6 (25.2)(28.4%)
91.9
40.3
74.2
98.7
106.8
70.2
78.2
155.0
199.6
162.1
118.5
229.2
298.3
FY18FY19FY20FY21FY22
H1H2
WORKING CAPITAL AND ROCE
21
•Working capital management discipline is a key focus of
EBOS and we have maintained our industry leading cash
conversion cycle of 14 days.
Working Capital
•Return on Capital Employed of 18.2% at December 2021 is
above December 2020 by 0.7% and is a record for the
Group.
•Reflects strong earnings growth and disciplined capital
management.
Return on Capital Employed (ROCE)
$mH1 FY22FY21H1 FY21
Net Working Capital
Trade receivables1,216.3 1,098.9 1,049.7
Inventory874.4 784.8 759.4
Trade payables/other(1,825.6)(1,622.3)(1,469.8)
Total265.1261.3 339.2
Cash conversion days14 14 16
17.1%
18.0%
17.5%
18.2%
FY20FY21H1 FY21H1 FY22
NET DEBT AND MATURITY PROFILE
•Underlying Net Debt
1
of $402m at December 2021, with an Underlying Net Debt : EBITDA
1
ratio of 1.28x (1.00x at December 2020).
•The increase in the underlying Net Debt : EBITDA ratio primarily reflects the three acquisitions completed in H1 FY22.
•Including the net cash proceeds from the share placement completed in December 2021, in connection with the LifeHealthcare
acquisition, the Group’s Net Cash balance as at 31 December was $226m.
•EBOS anticipates the Net Debt : EBITDA ratio at 30 June 2022 will be less than 2.25x after completion of the LifeHealthcare acquisition.
•EBOS has no maturities in its debt facilities until H2 FY23.
Underlying Net Debt and Underlying
Net Debt : EBITDA ratio
1
Cash and Debt Maturity Profile
2
Notes: 1. Underlying Net Debt and Underlying Net Debt : EBITDA ratio excludes the impacts of IFRS16 Leases and excludes $628.3m of net cash
proceeds raised via the December 2021 share placement in connection with the expected acquisition of LifeHealthcare. 2. Cash andDebt Maturity
Profile shown includes the $628.3m of net cash raised via the share placement as part of the expected acquisition of LifeHealthcare.
22
494
33
160
75
250
539
133
Cash on
Hand
FY22FY23FY24FY25FY26
Drawn amountCommitted and available facilities
572
250
293
75
392
327
309
271
402
1.41x
1.11x
1.00x
0.85x
1.28x
Dec-19Jun-20Dec-20Jun-21Dec-21
Underlying Net DebtUnderlying Net Debt : EBITDA Ratio
EARNINGS AND DIVIDENDS PER SHARE
23
•Underlying EPS of 66.6 cents representing growth of 15.2%.
•Interim dividend of 47.0 NZ cents declared (imputed to 25%
1
and franked to 100% for New Zealand and Australian tax resident
shareholders, respectively), representing growth of 10.6%.
•Dividend payout ratio of 77.4% on an underlying basis
2
(or 67.3% excluding dividends paid on the new shares issued under the capital
raisings completed in December 2021 and January 2022 in connection with the expected LifeHealthcare acquisition).
•EBOS reiterates its dividend policy of declaring dividends representing between 60% to 80% of NPAT.
•The Dividend Reinvestment Plan (DRP) will not be operational for the interim dividend in light of EBOS’ decision to accept
oversubscriptions and upsize the recently completed retail offer in connection with the expected acquisition of LifeHealthcare.
Dividends per Share (NZ$ cents)Underlying Earnings per Share (A$ cents)
Notes: 1. The New Zealand company tax rate is 28%. Therefore, a dividend that is partially imputed with 25% of the maximum allowable
imputation credits implies an 8.86% imputation percentage in relation to the gross taxable amount of the dividend. 2. Dividend payout ratio
calculated on an underlying basis based on a NZD:AUD exchange rate of 0.953.
46.0
47.8
51.3
57.8
66.6
44.4
46.4
49.5
57.2
90.4
94.2
100.8
114.9
FY18FY19FY20FY21FY22
H1H2
33.0
34.5
37.5
42.5
47.0
35.5
37.0
40.0
46.0
68.5
71.5
77.5
88.5
FY18FY19FY20FY21FY22
H1H2
FY22 TRADING UPDATE
24
•EBOS is pleased with the strong earnings growth in the first half of FY22 and we continue to be comfortable with current trading
conditions however, it is uncertain what the ongoing disruptions caused by COVID-19 variants will have on EBOS’ trading
performance.
•Capital expenditure for the remainder of FY22 is expected to remain elevated as a result of continued investment in our operational
infrastructure to support the Group’s growth.
•EBOS expects the acquisition of LifeHealthcare will be completed before the end of FY22 and anticipates that Net Debt : EBITDA at
30 June 2022 following completion will be less than 2.25x.
25
SUPPORTING
INFORMATION
RECONCILIATION OF STATUTORY TO UNDERLYING
RESULTS
Note 1. Underlying results is a Non-GAAP measure which adjusts for the effects of one-off items. Transaction costs primarily relate to consulting
and regulatory costs incurred in relation to the acquisitions of LifeHealthcare, Sentry Medical, Pioneer Medical and MD Solutions.
26
H1 FY22H1 FY21
$m
EBITDAEBITPBTNPATEBITDAEBITPBTNPAT
Statutory result199.9 161.3 147.5 101.9 182.2 145.9 131.9 92.9
Transaction costs incurred on M&A
7.8 7.8 7.8 7.4 1.9 1.9 1.9 1.5
Underlying result
1
207.7 169.1 155.3 109.3 184.1 147.8 133.8 94.3
•During the period EBOS had higher than usual levels of M&A activity, completing three bolt-on acquisitions (Sentry Medical,
Pioneer Medical and MD Solutions) and announcing the agreement to acquire LifeHealthcare. These four businesses are expected
to generate aggregate annualised revenue of more than $400m.
•$7.4m (post tax) of one-off costs associated with these acquisitions were incurred in H1 FY22 (compared to $1.5m (post tax) of one-
off M&A costs in the prior corresponding period) and these costs are excluded from underlying earnings.
•These costs included advisory, consulting, regulatory and other transaction costs. Further one-off M&A costs of approximately
$19m are expected to be incurred in H2 FY22 in connection with completion of the LifeHealthcare acquisition.
SEGMENT EBITDA AND EBIT RECONCILIATION
27
EBITDAEBIT
$m
H1 FY22H1 FY21Var$Var%H1 FY22H1 FY21Var$Var%
Healthcare
Statutory177.5159.418.011.3%142.9126.916.012.6%
add One-off items7.81.95.97.81.95.9
Underlying185.2161.323.914.8%150.7128.821.917.0%
Animal Care
Statutory38.833.94.814.3%35.330.74.614.9%
Corporate
Statutory(16.4)(11.1)(5.2)(47.0%)(16.9)(11.7)(5.2)(44.5%)
EBOS Group
Statutory199.9182.217.79.7%161.3145.915.410.6%
add One-off items7.81.95.97.81.95.9
Underlying207.7184.123.512.8%169.1147.821.314.4%
Note: Underlying results is a Non-GAAP measure which adjusts for the effects of one-off items.
GLOSSARY OF TERMS AND MEASURES
TermDefinition
RevenueRevenue from the sale of goods and the rendering of services.
Gross OperatingRevenue (GOR)Revenue less cost of sales and the write-down of inventory.
EBITDAEarnings before interest, tax, depreciation and amortisation.
Underlying EBITDAEarnings before interest, tax, depreciation, amortisation and adjusted forone-off items.
EBITEarnings before interest and tax.
Underlying EBITEarnings before interestand tax and adjusted for one-off items.
PBTProfit before tax.
Underlying PBTProfit before tax and adjusted for one-off items.
NPATNet Profit After Tax attributable to the owners of the company.
Underlying NPATNet Profit After Tax attributable to the owners of the company and adjusted for one-offitems.
One-off itemsTransaction costs incurred on M&A activities.
Free Cash FlowCash from operating activitiesless 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 periodin accordance with IAS 33 ‘Earnings
per share’.
IFRSInternational FinancialReporting Standards.
Underlying EPS
Underlying NPAT divided by the weighted average number of shares onissue during the period, excluding the impact of shares issued
from the equity raise in December 2021.
Underlying NetDebtNet debtexcluding the impacts of IFRS16 Leases and the proceeds from the equity raise in December 2021.
Underlying 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.Calculation is applied for the Group’s banking covenants.
Return on Capital
Employed (ROCE)
Underlyingearnings before interest, tax and amortisationof finite life intangibles for 12 months (EBITA) divided by closing capital
employed(excluding IFRS16 Leases and including a pro-rata adjustment for entities recently acquiredand strategicinvestments).
28
Except where noted, common terms and measures used in this document are based upon the following
definitions:
www.ebosgroup.com
---
EBOS GROUP LIMITED
INTERIM REPORT
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2021
EBOS GROUP LIMITED
INTERIM REPORT 2022
CONTENTS Page
Summary of Consolidated Financial Highlights 1
Shareholder Calendar 1
Auditor’s Independent Review Report 2
Condensed Consolidated Income Statement 3
Condensed Consolidated Statement of Comprehensive Income 4
Condensed Consolidated Statement of Changes in Equity 5
Condensed Consolidated Balance Sheet 8
Condensed Consolidated Cash Flow Statement 9
Notes to the Condensed Consolidated Interim Financial Statements 10
Directory 20
1
EBOS GROUP LIMITED
INTERIM REPORT 2022
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Revenue 5,250,860 4,653,298 9,202,886
Profit before depreciation, amortisation, net finance costs and tax
expense (EBITDA)
199,881
182,219
363,297
Profit before net finance costs and tax expense (EBIT) 161,313 145,910 290,652
Profit before tax expense 147,513 131,859 263,019
Profit for the period 101,992 92,969 184,049
Profit for the period attributable to owners of the Company 101,866 92,865 185,297
Equity attributable to owners of the Company 2,078,208 1,380,890 1,411,024
Earnings per share 61.4c 56.9c 113.2c
Interim dividend per share (New Zealand dollars) 47.0c 42.5c 42.5c
SHAREHOLDER CALENDAR
Interim dividend record date 4 March 2022
Interim dividend payable 18 March 2022
Release of 2022 full year results 17 August 2022
Annual General Meeting 18 October 2022
2
Independent Auditor’s Review Report
To The Shareholders Of EBOS Group Limited
Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim financial statements’) of EBOS Group Limited and its
subsidiaries (‘the Group’) which comprise the condensed consolidated balance sheet as at 31 December 2021, and the condensed
consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of
changes in equity and condensed consolidated cash flow statement for the six months ended on that date, and a summary of significant
accounting policies and other explanatory information on pages 3 to 19.
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial
statements of the Group do not present fairly, in all material respects, the financial position of the Group as at 31 December 2021 and its
financial performance and cash flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent Auditor
of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the
Interim Financial Statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual
financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other assignments for the Group in the area of taxation compliance services. These services have not impaired our
independence as auditor of the Company. In addition to this, partners and employees of our firm deal with the Group on normal terms
within the ordinary course of trading activities of the business of the Group. The firm has no other relationship with, or interest in, the
Group.
Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Company for the preparation and fair presentation of the interim financial statements in
accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control as the directors
determine is necessary to enable the preparation and fair presentation of the condensed consolidated interim financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the condensed consolidated interim financial
statements, taken as a whole, are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS
34 Interim Financial Reporting.
A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. The procedures performed in a review are substantially less than
those performed in an audit conducted in accordance with International Standards on Auditing (New Zealand) and consequently does not
enable us to obtain assurance that we might identify in an audit. Accordingly we do not express an audit opinion on the condensed
consolidated interim financial statements.
Restriction on use
This report is made solely to the company’s shareholders, as a body. Our review has been undertaken so that we might state to the
company’s shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company’s shareholders as a body, for our
engagement, for this report, or for the conclusions we have formed.
Mike Hawken, Partner
for Deloitte Limited
Christchurch, New Zealand
15 February 2022
3
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2021
Notes
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Revenue
2(a) 5,250,860 4,653,298 9,202,886
Income from associates
4,088 2,855 7,071
Profit before depreciation, amortisation, net finance
costs and tax expense (EBITDA)
199,881
182,219
363,297
Depreciation
2(b) (32,199) (30,262) (60,544)
Amortisation of finite life intangibles
2(b) (6,369) (6,047) (12,101)
Profit before net finance costs and tax expense (EBIT)
161,313 145,910 290,652
Finance income
758 292 713
Finance costs – borrowings
(10,416) (10,456) (20,641)
Finance costs – leases
(4,142) (3,887) (7,705)
Profit before tax expense
147,513 131,859 263,019
Income tax expense
(45,521) (38,890) (78,970)
Profit for the period
101,992 92,969 184,049
Profit for the period attributable to:
Owners of the Company
101,866 92,865 185,297
Non-controlling interests
126 104 (1,248)
101,992 92,969 184,049
Earnings per share
Basic (cents per share)
61.4 56.9 113.2
Diluted (cents per share)
61.4 56.9 113.2
4
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2021
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Profit for the period
101,992 92,969 184,049
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Cash flow hedge gains/(losses)
4,340 (539) 5,933
Related income tax
(1,293) 155 (1,750)
Movement in foreign currency translation reserve
2,733 (13) (2,993)
5,780 (397) 1,190
Items that will not be reclassified subsequently to profit or loss:
Movement on equity instruments fair valued through other
comprehensive income
2,513 (847) (2,433)
Total comprehensive income net of tax
110,285 91,725 182,806
Total comprehensive income for the period is attributable to:
Owners of the Company
110,159 91,621 184,054
Non-controlling interests
126 104 (1,248)
110,285 91,725 182,806
5
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2021
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Six months ended
31 December 2020 (unaudited):
Opening balance 961,486 6,601 (18,170) 372,012 (128) (6,854) (4,073) 1,310,874
Profit for the period - - - 92,865 - - 104 92,969
Other comprehensive income for
the period, net of tax
-
- (13) - (847)
(384) - (1,244)
Payment of dividends 4 - - - (59,225) - - - (59,225)
Share-based payments - 2,183 - - - - - 2,183
Dividends reinvested 3 27,553 - - - - - - 27,553
Employee LTI shares exercised 3 3,056 - - - - - - 3,056
Employee share plan shares
issued 3 825
-
- - -
-
-
825
Employee share issue costs 3 (70) - - - - - - (70)
Balance at 31 December 2020 992,850 8,784 (18,183) 405,652 (975) (7,238) (3,969) 1,376,921
6
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2021
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Year ended
30 June 2021 (audited):
Opening balance 961,486 6,601 (18,170) 372,012 (128) (6,854) (4,073) 1,310,874
Profit for the period - - - 185,297 - - (1,248) 184,049
Other comprehensive income for
the period, net of tax
-
- (2,993) - (2,433)
4,183 - (1,243)
Payment of dividends 4 - - - (123,856) - - - (123,856)
Share-based payments - 3,749 - - - - - 3,749
Dividends reinvested 3 27,553 - - - - - - 27,553
Employee LTI shares exercised 3 3,056 - - - - - - 3,056
Employee share plan shares
issued 3 1,665
-
- - -
-
-
1,665
Employee share issue costs 3 (144) - - - - - - (144)
Balance at 30 June 2021 993,616 10,350 (21,163) 433,453 (2,561) (2,671) (5,321) 1,405,703
7
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2021
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Six months ended
31 December 2021 (unaudited):
Opening balance 993,616 10,350 (21,163) 433,453 (2,561) (2,671) (5,321) 1,405,703
Profit for the period - - - 101,866 - - 126 101,992
Other comprehensive income for
the period, net of tax
-
- 2,733 - 2,513
3,047 - 8,293
Payment of dividends 4 - - - (72,228) - - - (72,228)
Share-based payments - (2,210) - - - - - (2,210)
Share placement 3 638,155 - - - - - - 638,155
Share placement costs 3 (9,828) - - - - - - (9,828)
Employee LTI shares exercised 3 2,343 - - - - - - 2,343
Employee share plan shares
issued
3 841
-
- - -
-
-
841
Employee share issue costs 3 (48) - - - - - - (48)
Balance at 31 December 2021 1,625,079 8,140 (18,430) 463,091 (48) 376 (5,195) 2,073,013
8
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2021
Notes
31 Dec 21
A$’000
(unaudited)
31 Dec 20
A$’000
(unaudited)
30 Jun 21
A$’000
(audited)
Current assets
Cash and cash equivalents 493,974 294,076 168,953
Trade and other receivables 1,276,408 1,098,930 1,156,499
Prepayments 23,983 18,832 14,111
Inventories
874,395
759,360
784,761
Current tax refundable 3,034 1,574 278
Other financial assets – derivatives 8 840 - 44
Total current assets 2,672,634 2,172,772 2,124,646
Non-current assets
Property, plant and equipment 177,283 169,049 172,209
Capital work in progress 89,742 5,930 70,362
Prepayments 564 160 30
Deferred tax assets
147,703
131,025
141,806
Goodwill 10 1,129,099 993,941 999,339
Indefinite life intangibles 119,246 122,716 122,354
Finite life intangibles 39,114 42,145 40,089
Right of use assets
237,367
210,156
222,367
Investment in associates 46,294 44,229 47,896
Other financial assets 10,638 10,266 8,660
Total non-current assets 1,997,050 1,729,617 1,825,112
Total assets
4,669,684
3,902,389
3,949,758
Current liabilities
Trade and other payables 1,830,068 1,481,764 1,623,904
Bank loans
7
- 327,856 116,640
Lease liabilities 40,451 35,324 36,498
Current tax payable 31,686 22,357 35,600
Employee benefits 56,883 45,275 58,706
Other financial liabilities – derivatives 8 3,087 13,059 6,631
Total current liabilities 1,962,175 1,925,635 1,877,979
Non-current liabilities
Bank loans 7 267,977 275,000 323,565
Lease liabilities
216,266
191,197
203,621
Trade and other payables 14,100 3,315 3,617
Deferred tax liabilities 126,935 122,611 127,428
Employee benefits 9,218 7,710 7,845
Total non-current liabilities
634,496 599,833 666,076
Total liabilities 2,596,671 2,525,468 2,544,055
Net assets 2,073,013 1,376,921 1,405,703
Equity
Share capital 3 1,625,079 992,850 993,616
Share based payments reserve 8,140 8,784 10,350
Foreign currency translation reserve
(18,430) (18,183) (21,163)
Retained earnings 463,091 405,652 433,453
Equity instruments fair valued through other
comprehensive income
(48) (975) (2,561)
Cash flow hedge reserve 376 (7,238) (2,671)
Equity attributable to owners of the company 2,078,208 1,380,890 1,411,024
Non-controlling interests
(5,195) (3,969) (5,321)
Total equity 2,073,013 1,376,921 1,405,703
9
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2021
Notes
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Cash flows from operating activities
Receipts from sale of goods and services
5,148,372 4,649,732 9,080,007
Interest received
758 292 713
Dividends received from associates
6,091 5,477 5,761
Payments for purchase of goods and services
(4,967,076) (4,501,207) (8,687,637)
Taxes paid
(66,806) (41,205) (72,184)
Interest paid
(14,558) (14,343) (28,346)
Net cash inflow from operating activities
5 106,781 98,746 298,314
Cash flows from investing activities
Sale of property, plant and equipment
916 77 217
Purchase of property, plant and equipment
(10,954) (6,191) (20,354)
Payments for capital work in progress
(31,666) (1,720) (56,800)
Payments for intangible assets
(1,588) (2,312) (5,106)
Acquisition of subsidiaries
10 (106,739) (22,936) (31,223)
Investment in other financial assets
(253) (497) (497)
Net cash (outflow) from investing activities
(150,284) (33,579) (113,763)
Cash flows from financing activities
Proceeds from issue of shares
3 631,463 31,364 32,130
Proceeds from borrowings
44,371 62,420 49,600
Repayment of borrowings
(216,640) (31,740) (181,459)
Repayment of lease liabilities
(19,498) (17,424) (35,261)
Dividends paid to equity holders of parent
(71,964) (61,147) (124,986)
Net cash inflow/(outflow) from financing activities
367,732 (16,527) (259,976)
Net increase/(decrease) in cash held
324,229 48,640 (75,425)
Effect of exchange rate fluctuations on cash held
792 658 (400)
Net cash and cash equivalents at beginning of period
168,953 244,778 244,778
Net cash and cash equivalents at end of period
493,974 294,076 168,953
10
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2021
1. FINANCIAL STATEMENTS
These unaudited condensed consolidated interim financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZGAAP”) as appropriate for condensed interim financial statements. They comply with
the New Zealand Equivalent to International Accounting Standard 34 (NZ IAS 34) Interim Financial Reporting and International
Accounting Standard IAS 34.
EBOS Group Limited (‘the Company’) is a profit-oriented company incorporated in New Zealand, registered under the Companies
Act 1993 and dual listed on both the New Zealand Stock Exchange and the Australian Securities Exchange.
The Company is a Tier 1 for-profit entity in terms of the New Zealand External Reporting Board Standard A1.
The Company is a FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013, and its financial statements
comply with this Act.
These financial statements should be read in conjunction with the financial statements and related notes included in the Group’s
Annual Report for the year ended 30 June 2021.
The accounting policies and methods of computation are consistent with those of the previous year.
The information is presented in thousands of Australian dollars unless otherwise stated.
2. PROFIT FROM OPERATIONS
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
(a)
Revenue
Community Pharmacy
3,152,813
2,735,885
5,389,989
Institutional Healthcare
1,474,345 1,360,648 2,686,014
Contract Logistics Services
58,019 42,886 88,615
Contract Logistics Sales
391,994 354,384 718,911
Interdivisional eliminations
(100,290) (84,284) (178,167)
Healthcare
4,976,881 4,409,519 8,705,362
Animal Care
273,979 243,779 497,524
5,250,860 4,653,298 9,202,886
11
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
2. PROFIT FROM OPERATIONS (Continued)
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
(b)
Profit before net finance costs and tax
expense
Profit before net finance costs and tax
expense has been arrived at after charging
the following expenses by nature:
One-off items (1)
(7,771) (1,921) (3,813)
Cost of sales
(4,670,448) (4,160,581) (8,210,446)
Write-down of inventory
(5,439) (4,157) (8,127)
Impairment loss on trade and other
receivables
(28) (412) (988)
Depreciation of property, plant and
equipment
(10,697) (10,387) (20,813)
Depreciation on right of use assets
(21,502) (19,875) (39,731)
Amortisation of finite life intangibles
(6,369) (6,047) (12,101)
Short-term and low value asset leases
(3,966)
(2,278)
(5,080)
Donations
(27) (48) (228)
Employee benefit expense
(187,633) (163,075) (332,566)
Defined contribution plan expense
(10,283) (9,013) (18,285)
Other expenses
(169,472) (132,449) (267,127)
Total expenses
(5,093,635) (4,510,243) (8,919,305)
(1) One-off items comprise transaction costs incurred in relation to acquisitions undertaken during the period.
3. SHARE CAPITAL
Six months
31 Dec 21
Six months
31 Dec 20
Year ended
30 Jun 21
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(audited)
Fully paid ordinary
shares
Balance at beginning
of period
164,164 993,616 162,864 961,486 162,864 961,486
Dividend reinvested –
October
- - 1,233 27,553 1,233 27,553
Share placement –
December
19,526
638,155
-
-
-
-
Share placement costs
- (9,828) - - - -
Issue of shares to staff
under employee share
plan
26 841 37 825 67 1,665
Employee share issue
costs
- (48) - (70) - (144)
Shares vested under
the long term
executive incentive
scheme
- 2,343 - 3,056 - 3,056
183,716
1,625,079
164,134
992,850
164,164
993,616
12
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
3. SHARE CAPITAL (continued)
On 9 December 2021, EBOS announced an agreement to acquire LifeHealthcare for $1,167 million. LifeHealthcare is one of the largest
independent distributors of third-party medical devices, consumables, capital equipment and inhouse manufactured allograft
material in Australia, New Zealand and South East Asia. The transaction, which is subject to regulatory approvals and a number of
other conditions, will be partly funded via a fully underwritten placement (“Placement”). The Placement of 19.5 million new fully
paid ordinary shares was completed on 10 December 2021, raising $638.2 million. Proceeds have been used to reduce gross debt
until the transaction completes.
4. DIVIDENDS
AUD
Six months
31 Dec 21
AUD
Six months
31 Dec 20
AUD
Year ended
30 Jun 21
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(audited)
Recognised amounts
Fully paid ordinary shares
Final – prior year
44.1 72,228 36.5 59,225 36.5 59,225
Interim – current year
- - - - 39.5 64,631
44.1 72,228 36.5 59,225 76.0 123,856
Unrecognised amounts
Final dividend
- - - - 42.8 70,305
Interim dividend
44.3 81,347 39.9 65,460 - -
44.3 81,347 39.9 65,460 42.8 70,305
Dividends are approved by the Board in New Zealand dollars. Dividends recognised in the Statement of Changes in Equity are
converted from New Zealand dollars to Australian Dollars at the exchange rate applicable on the date the dividend was approved.
Unrecognised dividends are converted at the exchange rate applicable on the reporting date. The Board approved an interim
dividend of 47.0 New Zealand cents per share on 15 February 2022. The record date for the dividend is 4 March 2022 and the
dividend will be paid on 18 March 2022.
The following table shows dividends approved in New Zealand dollars:
Six months
Six months
Year ended
31 Dec 21
NZD
31 Dec 20
NZD
30 Jun 21
NZD
Cents per
share
Cents per
share
Cents per
share
Recognised amounts
Fully paid ordinary shares
Final – prior year
46.0 40.0 40.0
Interim – current year
- - 42.5
46.0 40.0 82.5
Unrecognised amounts
Final dividend
- - 46.0
Interim dividend
47.0 42.5 -
47.0 42.5 46.0
New Zealand dollar dividends paid to equity holders of the parent are translated into Australian dollars and disclosed in the cash
flow statement at the foreign currency exchange rate applicable on the date they are paid.
13
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
5. NOTES TO THE CASH FLOW STATEMENT
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Reconciliation of profit for the period with cash
flows from operating activities
Profit for the period
101,992
92,969
184,049
Add/(less) non-cash items:
Depreciation of property, plant and equipment
10,697 10,387 20,813
Depreciation on right of use assets
21,502 19,875 39,731
Amortisation of finite life intangibles
6,369
6,047
12,101
Loss/(gain) on sale of property, plant and
equipment
7 (70) (103)
Share of profit from associates, net of dividends
received
(4,088) (2,855) (7,071)
Expense recognised in respect of share-based
payments
3,128 2,183 3,749
Deferred tax
(5,433) (5,158) (13,532)
32,182
30,409
55,688
Movements in working capital:
Trade and other receivables
(119,909) (76,343) (133,912)
Prepayments
(10,406) (6,181) (1,330)
Inventories
(89,634) (21,661) (47,062)
Current tax refundable/payable
(6,670) 5,455 19,994
Trade and other payables
216,647 67,177 209,619
Employee benefits
(450) 2,913 16,479
Foreign currency translation of working capital
balances
(228) 387 87
(10,650) (28,253) 63,875
Balances classified as investing activities
(24,307) (3,784) (12,914)
Working capital items acquired
7,564 7,405 7,616
Net cash inflow from operating activities
106,781 98,746 298,314
14
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
6. SEGMENT INFORMATION
(a) Products and services from which reportable segments derive their revenues
The Group’s reportable segments under NZ IFRS 8 Operating Segments are as follows:
Healthcare: Incorporates the sale of healthcare products in a range of sectors, own brands, retail healthcare, medical devices,
capital equipment, pharmacy services and wholesale activities.
Animal Care: Incorporates the sale of animal care products in a range of sectors, own brands, retail and wholesale activities.
Corporate: Includes net funding costs and central administration expenses that have not been allocated to the Healthcare or
Animal Care segments.
(b) Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment:
Healthcare
A$’000
Animal
Care
A$’000
Corporate
A$’000
Group
A$’000
Six months ended 31 December 2021
(unaudited):
Revenue from external customers
4,976,881 273,979 - 5,250,860
EBITDA
177,472 38,768 (16,359) 199,881
Depreciation of property, plant and
equipment
(10,206)
(491)
-
(10,697)
Depreciation on right of use assets
(18,108) (2,844) (550) (21,502)
Amortisation of finite life intangibles
(6,255) (114) - (6,369)
EBIT
142,903 35,319 (16,909) 161,313
Net finance costs
- - (13,800) (13,800)
Tax (expense)/benefit
(44,759) (9,897) 9,135 (45,521)
Profit for the period
98,144 25,422 (21,574) 101,992
Non-controlling interests
(126) - - (126)
Profit for the period attributable to
owners of the Company
98,018 25,422 (21,574) 101,866
The Healthcare segment results are inclusive of the one-off items disclosed in Note 2. ‘
Six months ended 31 December 2020
(unaudited):
Revenue from external customers
4,409,519 243,779 - 4,653,298
EBITDA
159,427 33,924 (11,132) 182,219
Depreciation of property, plant and
equipment
(9,964)
(423)
-
(10,387)
Depreciation on right of use assets
(16,635) (2,668) (572) (19,875)
Amortisation of finite life intangibles
(5,951) (96) - (6,047)
EBIT
126,877 30,737 (11,704) 145,910
Net finance costs
- - (14,051) (14,051)
Tax (expense)/benefit
(37,141) (8,467) 6,718 (38,890)
Profit for the period
89,736 22,270 (19,037) 92,969
Non-controlling interests
(104) - - (104)
Profit for the period attributable to
owners of the Company
89,632 22,270 (19,037) 92,865
15
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
6. SEGMENT INFORMATION (Continued)
Healthcare
A$’000
Animal
Care
A$’000
Corporate
A$’000
Group
A$’000
Year ended 30 June 2021
(audited):
Revenue from external customers
8,705,362 497,524 - 9,202,886
EBITDA
316,223 69,350 (22,276) 363,297
Depreciation of property, plant and
equipment
(19,933)
(880)
-
(20,813)
Depreciation on right of use assets
(33,281) (5,329) (1,121) (39,731)
Amortisation of finite life intangibles
(11,902) (199) - (12,101)
EBIT
251,107 62,942 (23,397) 290,652
Net finance costs
- - (27,633) (27,633)
Tax (expense)/benefit
(74,351) (17,199) 12,580 (78,970)
Profit for the year
176,756 45,743 (38,450) 184,049
Non-controlling interests
1,248 - - 1,248
Profit for the year attributable to
owners of the Company
178,004 45,743 (38,450) 185,297
16
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
6. SEGMENT INFORMATION (Continued)
The accounting policies of the reportable segments are consistent with the Group’s accounting policies. Segment result
represents profit before depreciation, amortisation, net finance costs and tax. This is the measure reported to the chief
operating decision maker for the purposes of resource allocation and assessment of segment performance.
(c) Segment assets
The following balance sheet and cash flow items are not allocated to operating segments as they are not reported to the
chief operating decision maker at a segment level:
- Assets
- Liabilities
- Capital expenditure
(d) Revenues from major products and services
The Group’s major products and services are transacted the same as its reportable segments i.e. Healthcare, Animal Care and
Corporate.
(e) Geographical information
The Group operates in two principal geographical areas; New Zealand (country of domicile) and Australia.
The Group’s revenue from external customers by geographical location (of the reportable segment) and information about its
segment assets (non-current assets excluding investments in associates and deferred tax assets) are detailed below:
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Revenue from external customers
New Zealand
1,077,393 927,077 1,847,666
Australia
4,173,467 3,726,221 7,355,220
5,250,860 4,653,298 9,202,886
Non-current assets
New Zealand
384,197 353,173 348,296
Australia
1,418,856 1,201,190 1,287,114
1,803,053 1,554,363 1,635,410
(f) Information about major customers
No revenues from transactions that are with a single customer amount to 10% or more of EBOS’ revenues for the period
(December 2020: Nil, June 2021: Nil).
7. BANK FACILITY AND BORROWINGS
The Group fully complies with and operates within the financial covenants under the arrangements with its bankers. At 31
December 2021 the Group had unutilised term loan facilities of $522.1 million (December 2020: $331.9 million, June 2021:
$465.9 million).
The Group also has a trade debtor securitisation facility of which $400.0 million was unutilised at 31 December 2021 (December
2020: $158.2 million, June 2021: $283.4 million).
17
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
7. BANK FACILITY AND BORROWINGS (Continued)
As at 31 December 2021, the maturity profile of the Group’s term debt and securitisation facilities was:
Facility Amount Maturity
Term debt facilities $250.0 million 1-2 years
Term debt facilities $172.1 million 2-3 years
Term debt facilities $293.0 million 3-4 years
Term debt facilities $75.0 million 4-5 years
Securitisation facility $400.0 million 1-2 years
In conjunction with the expected acquisition of LifeHealthcare the Group has also obtained additional committed bank debt
funding facilities of $540m in total, split evenly between a 3 and 4 year maturity tenor. The availability of these facilities are
dependent upon the completion of the LifeHealthcare acquisition and are to be used to partially fund the consideration of the
acquisition along with the proceeds of the December 2021 Share Placement (refer Note 3) and Retail Offer completed in January
2022 (refer Note 11).
8. FINANCIAL INSTRUMENTS
The Group enters into forward foreign currency exchange contracts to hedge trading transactions, including anticipated
transactions, denominated in foreign currencies and uses interest rate swaps to manage cash flow interest rate risk.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the
nature of the hedge relationship. The Group designates certain derivatives as cash flow hedges of highly probable forecast
transactions.
Fair value of derivative financial instruments
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Other financial assets – derivatives (at fair value)
Forward foreign exchange contracts
840 - 44
840 - 44
Other financial liabilities – derivatives (at fair value)
Forward foreign exchange contracts
2 3,179 577
Interest rate swaps
3,085 9,880 6,054
3,087 13,059 6,631
The Group has categorised these derivatives, both financial assets and financial liabilities, as Level 2 under the fair value
hierarchy contained within NZ IFRS 13 Fair Value Measurement.
The fair value of foreign currency forward exchange contracts is determined using a discounted cash flow valuation. Key inputs
include observable forward exchange rates, at the measurement date, with the resulting value discounted back to present
values.
Interest rate swaps are valued using a discounted cash flow valuation. Key inputs for the valuation of interest rate swaps are the
estimated future cash flows based on observable yield curves at the end of the reporting period, discounted at a rate that
reflects the credit risk of the various counterparties.
There have been no changes in valuation techniques used for either forward foreign currency exchange contracts or interest rate
swaps during the current reporting period.
18
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
9. IMPACT OF NEW ACCOUNTING STANDARDS
In the current period the Group has adopted all mandatory new and amended standards and interpretations.
10. ACQUISITION INFORMATION
The following material acquisitions of subsidiaries took place during the period.
Name of business acquired
Principal
activities
Date of
acquisition
Cost of
acquisition
A$’000
2022:
Pioneer Medical Limited (Pioneer)
Healthcare August 2021 38,512
Sentry Medical Pty Limited (Sentry)
Healthcare August 2021 80,521
MD Solutions Group
Healthcare September 2021 32,258
Combined details of acquisitions undertaken during the current period are as follows:
Carrying value
A$’000
(unaudited)
Fair value
adjustment
A$’000
(unaudited)
Fair value on
acquisition
A$’000
(unaudited)
Current assets
Cash and cash equivalents
19,380 - 19,380
Trade and other receivables
11,522 (1,468)
1
10,054
Prepayments
556 (90)
2
466
Inventories
17,814 (3,010)
3
14,804
Non-current assets
Property, plant and equipment
3,470 (1,040)
4
2,430
Deferred tax assets
- 3,952
5
3,952
Right of use assets
- 6,596
6
6,596
Current liabilities
Trade and other payables
(5,841) (514)
7
(6,355)
Lease liabilities
- (3,246)
8
(3,246)
Current tax payable
(9,000) (648)
9
(9,648)
Employee benefits
(850) (85)
10
(935)
Non-current liabilities
Lease liabilities
- (3,350)
8
(3,350)
Trade and other payables
(132) - (132)
Deferred tax liabilities
- (1,937)
11
(1,937)
Employee benefits
(290) (400)
10
(690)
Net assets acquired
36,629 (5,240) 31,389
Goodwill on acquisition
127,870
Total consideration 159,259
Less deferred purchase consideration (40,881)
Less cash and cash equivalents acquired (19,380)
Plus deferred purchase consideration paid in relation to prior year
acquisitions
7,741
Net cash outflow from acquisition 106,739
19
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
10. ACQUISITION INFORMATION (Continued)
1. To recognise the fair value of trade and other receivables on acquisition.
2. To recognise the fair value of prepayments on acquisition.
3. To recognise the fair value of inventories on acquisition.
4. To recognise the fair value of property, plant and equipment on acquisition.
5. To recognise deferred tax assets on acquisition.
6. To recognise right of use assets on acquisition.
7. To recognise the fair value of trade and other payables on acquisition.
8. To recognise lease liabilities on acquisition.
9. To recognise the fair value of current tax payable on acquisition.
10. To recognise the fair value of employee benefits on acquisition.
11. To recognise deferred tax liabilities on acquisition.
Due to the timing of the acquisitions the above figures have not yet been finalised and are currently considered provisional.
Goodwill arose on the acquisitions of Pioneer, Sentry and MD Solutions Group because the cost of acquisition included control
premiums paid. In addition, goodwill resulted from the consideration paid for the benefit of future expected cash flows
above the current fair value of the assets acquired and the expected synergies and future market benefits expected to be obtained.
These benefits are not recognised separately from goodwill as the expected future economic benefits arising cannot be reliably
measured and they do not meet the definition of identifiable intangible assets.
Pioneer is a New Zealand based supplier of orthopaedic supplies and MD Solutions Group is an Australian based supplier of
healthcare products. Both businesses were acquired as they are profitable businesses which the Group believes fit strategically
within its Australian healthcare business assets.
Sentry is an Australian based distributor of surgical and medical consumables. Sentry was acquired as it is a profitable Australian
healthcare business which the Group believes fits strategically with its Australian healthcare business assets.
Deferred consideration of $40.9 million has been recognised as future EBITDA earn out targets of the businesses acquired, on which
the consideration is payable, are expected to be achieved.
The impact of the acquisitions on the results of the Group are not considered material and are therefore not disclosed in the Interim
Report.
11. EVENTS AFTER BALANCE DATE
Subsequent to 31 December 2021, the Board approved an interim dividend to shareholders. For further details please refer to
Note 4.
In January 2022, the Group completed a non-underwritten retail offer, to existing shareholders, in connection with the
agreement to acquire LifeHealthcare. A total of 5.0 million new fully paid ordinary shares were issued, raising approximately
$161.4 million.
20
EBOS GROUP LIMITED
DIRECTORY
CORPORATE HEAD OFFICE AUSTRALIA HEAD OFFICE
108 Wrights Road Level 7, 737 Bourke Street
PO Box 411 Docklands 3008
Christchurch 8024 Melbourne
New Zealand Australia
Telephone +64 3 338 0999 Telephone +61 3 9918 5555
E-mail: ebos@ebos.co.nz Email: ebos@ebosgroup.com
WEBSITE ADDRESS
www.ebosgroup.com
DIRECTORS
Elizabeth Coutts Independent Chair
Tracey Batten Independent Director
Nick Dowling Independent Director (resigned February 2022)
Stuart McGregor Independent Director
Stuart McLauchlan Independent Director
Sarah Ottrey Independent Director
Peter Williams Independent Director
SHARE REGISTER
Computershare Investor Services Ltd Computershare Investor Services Pty Ltd
Private Bag 92119 GPO Box 3329
Auckland 1142 Melbourne, Victoria 3001
New Zealand Australia
Telephone: +64 9 488 8777 Telephone: 1800 501 366
Managing Your Shareholding Online:
To change your address, update your payment instructions and to view your investment portfolio including transactions, please visit:
www.computershare.com/investorcentre
General enquiries can be directed to:
• enquiry@computershare.co.nz
• Private Bag 92119, Auckland 1142, New Zealand or GPO Box 3329, Melbourne, Victoria 3001, Australia
• Telephone (NZ) +64 9 488 8777 or (Aust) 1800 501 366
• Facsimile (NZ) +64 9 488 8787 or (Aust) +61 3 9473 2500
Please assist our registrar by quoting your CSN or shareholder number.
---
EBOS GROUP LIMITED
APPENDIX 4D
1
Interim Report for the Six Months Ended 31 December 2021
RESULTS FOR ANNOUNCEMENT TO THE MARKET
The following information is presented in accordance with ASX listing rule 4.2A.3 and should be read in
conjunction with the attached EBOS Group Limited condensed consolidated interim unaudited financial
statements for the six months ended 31 December 2021.
1. DETAILS OF THE REPORTING PERIOD AND THE PREVIOUS CORRESONDING PERIOD
Current period: Six months ended 31 December 2021
Previous corresponding period Six months ended 31 December 2020
This report and the attached condensed consolidated interim unaudited financial statements are presented
in Australian dollars, being the Group’s presentation currency.
2. RESULTS FOR ANNOUNCEMENT TO THE MARKET
Group Results 31 Dec 2021 31 Dec 2020 Change
(Unaudited) AUD $000 AUD $000 %
Revenue 5,250,860 4,653,298 12.8%
Earnings before depreciation, amortisation, net finance costs
and tax expense (EBITDA)
199,881 182,219 9.7%
Depreciation and amortisation (38,568) (36,309) 6.2%
Earnings before interest and tax (EBIT) 161,313 145,910 10.6%
Profit before tax (PBT) 147,513 131,859 11.9%
Net profit after tax (NPAT) 101,992 92,969 9.7%
Net profit after tax (NPAT) attributable to owners of the
Company
101,866 92,865 9.7%
Weighted average number of shares 165,875 163,280 1.6%
Basic EPS – (CPS) 61.4 56.9 8.0%
Net tangible asset backing per ordinary share – ($) $2.18 ($0.75)
Underlying EBITDA
(refer reconciliation below) 207,652 184,140 12.8%
Underlying EBIT
(refer reconciliation below) 169,084 147,831 14.4%
Underlying Net profit after tax (NPAT) attributable to the
owners of the Company
(refer reconciliation below) 109,271 94,346 15.8%
Underlying EPS – (CPS)
1
66.6 57.8 15.2%
1
Underlying EPS is calculated as underlying NPAT divided by the weighted average number of shares on issue during the period,
excluding the impact of shares issued from the share placement, of 19.5m shares, in December 2021
EBOS GROUP LIMITED
APPENDIX 4D
2
Dividends Amount per NZ Cents Per
Share
Franked amount per
security to 30% tax rate
Interim dividend payable 18 March 2022 47.0c 100%
Interim dividend – previous corresponding
period
42.5c
100%
Key dates for the 2022 Interim Dividend
Ex-dividend date 3 March 2022
Record date 4 March 2022
(5.00pm NZDT)
Dividend payment date 18 March 2022
Other Comments
The interim dividend will be imputed to 25% for New Zealand tax resident shareholders, and a
supplementary dividend paid to eligible non-resident shareholders.
3. RECONCILIATION OF REPORTED TO UNDERLYING EARNINGS
2
The six months to 31 December 2021 one-off costs comprise merger and acquisition transaction costs of $7.8m (2020: $1.9m) on
a pre-tax basis ($7.4m (2020: $1.5m) on a post-tax basis).
Underlying EBITDA, Underling EBIT and Underlying Net Profit after Tax attributable to the owners of the
Company are non-GAAP measures, which adjust for the effects of one-off costs.
EBOS GROUP LIMITED
APPENDIX 4D
3
For supplementary comments on the Group’s financial results refer to the Results Presentation, Letter to
Shareholders and Media Release issued 16 February 2022.
4. ENTITIES ACQUIRED
Details of material acquisitions undertaken during the period have been disclosed, in aggregate, in Note 10
of the attached condensed consolidated interim unaudited financial statements.
5. DIVIDENDS PAID AND DECLARED
Group Results
(Unaudited)
Amount
Per Share
(NZ$ Cents)
Amount
Per Share
(A$ Cents)
Total
Amount
(A$)
Date Paid / Payable
Dividends declared in respect of
the year ending 30 June 2022
2022 interim dividend 47.0 cents 44.3 cents $81,347,000 18 March 2022
Dividends paid attributable to the
year ended 30 June 2021
2021 interim dividend 42.5 cents 39.5 cents $64,631,000 18 March 2021
2021 final dividend 46.0 cents 44.1 cents $72,228,000 24 September 2021
88.5 cents 83.6 cents 136,859,000
Dividends are approved by the Board in New Zealand dollars. Dividends recognised in the Statement of
Changes in Equity are converted from New Zealand dollars to Australian dollars at the exchange rate
applicable on the date the dividend was approved. Unrecognised dividends are converted at the exchange
rate applicable on the reporting date.
6. DIVIDEND REINVESTMENT PLAN
The Company's dividend reinvestment plan ('DRP') will not operate for the 2022 interim dividend.
7. ASSOCIATES AND JOINT VENTURES
The Group equity accounted the following associate entities at 31 December 2021.
Name of business Proportion of shares and voting rights
Animates NZ Holdings Limited
50.00%
Good Price Pharmacy Franchising Pty Limited 44.18%
Good Price Pharmacy Management Pty Limited 44.18%
EBOS GROUP LIMITED
APPENDIX 4D
4
Income from the individual Associates has not been separately disclosed as it is considered immaterial. Total
income from Investments in Associates for the six months ended 31 December 2021 was $4,088,000 (2020:
$2,855,000).
8. FOREIGN ENTITIES
The condensed consolidated interim unaudited financial statements are presented in Australian dollars and
comply with International Financial Reporting Standards (“IFRS”).
9. INDEPENDENT AUDIT REVIEW
The condensed consolidated interim financial statements have been reviewed by an independent auditor,
and the auditor has given an unmodified review opinion.
EBOS GROUP LIMITED
INTERIM REPORT
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2021
EBOS GROUP LIMITED
INTERIM REPORT 2022
CONTENTS Page
Summary of Consolidated Financial Highlights 1
Shareholder Calendar 1
Auditor’s Independent Review Report 2
Condensed Consolidated Income Statement 3
Condensed Consolidated Statement of Comprehensive Income 4
Condensed Consolidated Statement of Changes in Equity 5
Condensed Consolidated Balance Sheet 8
Condensed Consolidated Cash Flow Statement 9
Notes to the Condensed Consolidated Interim Financial Statements 10
Directory 20
1
EBOS GROUP LIMITED
INTERIM REPORT 2022
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Revenue 5,250,860 4,653,298 9,202,886
Profit before depreciation, amortisation, net finance costs and tax
expense (EBITDA)
199,881
182,219
363,297
Profit before net finance costs and tax expense (EBIT) 161,313 145,910 290,652
Profit before tax expense 147,513 131,859 263,019
Profit for the period 101,992 92,969 184,049
Profit for the period attributable to owners of the Company 101,866 92,865 185,297
Equity attributable to owners of the Company 2,078,208 1,380,890 1,411,024
Earnings per share 61.4c 56.9c 113.2c
Interim dividend per share (New Zealand dollars) 47.0c 42.5c 42.5c
SHAREHOLDER CALENDAR
Interim dividend record date 4 March 2022
Interim dividend payable 18 March 2022
Release of 2022 full year results 17 August 2022
Annual General Meeting 18 October 2022
2
Independent Auditor’s Review Report
To The Shareholders Of EBOS Group Limited
Conclusion
We have reviewed the condensed consolidated interim financial statements (‘interim financial statements’) of EBOS Group Limited and its
subsidiaries (‘the Group’) which comprise the condensed consolidated balance sheet as at 31 December 2021, and the condensed
consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of
changes in equity and condensed consolidated cash flow statement for the six months ended on that date, and a summary of significant
accounting policies and other explanatory information on pages 3 to 19.
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial
statements of the Group do not present fairly, in all material respects, the financial position of the Group as at 31 December 2021 and its
financial performance and cash flows for the six months ended on that date in accordance with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent Auditor
of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the
Interim Financial Statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual
financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other assignments for the Group in the area of taxation compliance services. These services have not impaired our
independence as auditor of the Company. In addition to this, partners and employees of our firm deal with the Group on normal terms
within the ordinary course of trading activities of the business of the Group. The firm has no other relationship with, or interest in, the
Group.
Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Company for the preparation and fair presentation of the interim financial statements in
accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting and for such internal control as the directors
determine is necessary to enable the preparation and fair presentation of the condensed consolidated interim financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the condensed consolidated interim financial
statements, taken as a whole, are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS
34 Interim Financial Reporting.
A review of the condensed consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance
engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. The procedures performed in a review are substantially less than
those performed in an audit conducted in accordance with International Standards on Auditing (New Zealand) and consequently does not
enable us to obtain assurance that we might identify in an audit. Accordingly we do not express an audit opinion on the condensed
consolidated interim financial statements.
Restriction on use
This report is made solely to the company’s shareholders, as a body. Our review has been undertaken so that we might state to the
company’s shareholders those matters we are required to state to them in a review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company’s shareholders as a body, for our
engagement, for this report, or for the conclusions we have formed.
Mike Hawken, Partner
for Deloitte Limited
Christchurch, New Zealand
15 February 2022
3
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 31 December 2021
Notes
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Revenue
2(a) 5,250,860 4,653,298 9,202,886
Income from associates
4,088 2,855 7,071
Profit before depreciation, amortisation, net finance
costs and tax expense (EBITDA)
199,881
182,219
363,297
Depreciation
2(b) (32,199) (30,262) (60,544)
Amortisation of finite life intangibles
2(b) (6,369) (6,047) (12,101)
Profit before net finance costs and tax expense (EBIT)
161,313 145,910 290,652
Finance income
758 292 713
Finance costs – borrowings
(10,416) (10,456) (20,641)
Finance costs – leases
(4,142) (3,887) (7,705)
Profit before tax expense
147,513 131,859 263,019
Income tax expense
(45,521) (38,890) (78,970)
Profit for the period
101,992 92,969 184,049
Profit for the period attributable to:
Owners of the Company
101,866 92,865 185,297
Non-controlling interests
126 104 (1,248)
101,992 92,969 184,049
Earnings per share
Basic (cents per share)
61.4 56.9 113.2
Diluted (cents per share)
61.4 56.9 113.2
4
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2021
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Profit for the period
101,992 92,969 184,049
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Cash flow hedge gains/(losses)
4,340 (539) 5,933
Related income tax
(1,293) 155 (1,750)
Movement in foreign currency translation reserve
2,733 (13) (2,993)
5,780 (397) 1,190
Items that will not be reclassified subsequently to profit or loss:
Movement on equity instruments fair valued through other
comprehensive income
2,513 (847) (2,433)
Total comprehensive income net of tax
110,285 91,725 182,806
Total comprehensive income for the period is attributable to:
Owners of the Company
110,159 91,621 184,054
Non-controlling interests
126 104 (1,248)
110,285 91,725 182,806
5
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2021
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Six months ended
31 December 2020 (unaudited):
Opening balance 961,486 6,601 (18,170) 372,012 (128) (6,854) (4,073) 1,310,874
Profit for the period - - - 92,865 - - 104 92,969
Other comprehensive income for
the period, net of tax
-
- (13) - (847)
(384) - (1,244)
Payment of dividends 4 - - - (59,225) - - - (59,225)
Share-based payments - 2,183 - - - - - 2,183
Dividends reinvested 3 27,553 - - - - - - 27,553
Employee LTI shares exercised 3 3,056 - - - - - - 3,056
Employee share plan shares
issued 3 825
-
- - -
-
-
825
Employee share issue costs 3 (70) - - - - - - (70)
Balance at 31 December 2020 992,850 8,784 (18,183) 405,652 (975) (7,238) (3,969) 1,376,921
6
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2021
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Year ended
30 June 2021 (audited):
Opening balance 961,486 6,601 (18,170) 372,012 (128) (6,854) (4,073) 1,310,874
Profit for the period - - - 185,297 - - (1,248) 184,049
Other comprehensive income for
the period, net of tax
-
- (2,993) - (2,433)
4,183 - (1,243)
Payment of dividends 4 - - - (123,856) - - - (123,856)
Share-based payments - 3,749 - - - - - 3,749
Dividends reinvested 3 27,553 - - - - - - 27,553
Employee LTI shares exercised 3 3,056 - - - - - - 3,056
Employee share plan shares
issued 3 1,665
-
- - -
-
-
1,665
Employee share issue costs 3 (144) - - - - - - (144)
Balance at 30 June 2021 993,616 10,350 (21,163) 433,453 (2,561) (2,671) (5,321) 1,405,703
7
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 31 December 2021
Notes
Share
capital
A$’000
Share
based
payments
reserve
A$’000
Foreign
currency
translation
reserve
A$’000
Retained
earnings
A$’000
Equity
instruments fair
valued through
other
comprehensive
income reserve
A$’000
Cash flow
hedge
reserve
A$’000
Non-
controlling
interests
A$’000
Total
A$’000
Six months ended
31 December 2021 (unaudited):
Opening balance 993,616 10,350 (21,163) 433,453 (2,561) (2,671) (5,321) 1,405,703
Profit for the period - - - 101,866 - - 126 101,992
Other comprehensive income for
the period, net of tax
-
- 2,733 - 2,513
3,047 - 8,293
Payment of dividends 4 - - - (72,228) - - - (72,228)
Share-based payments - (2,210) - - - - - (2,210)
Share placement 3 638,155 - - - - - - 638,155
Share placement costs 3 (9,828) - - - - - - (9,828)
Employee LTI shares exercised 3 2,343 - - - - - - 2,343
Employee share plan shares
issued
3 841
-
- - -
-
-
841
Employee share issue costs 3 (48) - - - - - - (48)
Balance at 31 December 2021 1,625,079 8,140 (18,430) 463,091 (48) 376 (5,195) 2,073,013
8
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE SHEET
As at 31 December 2021
Notes
31 Dec 21
A$’000
(unaudited)
31 Dec 20
A$’000
(unaudited)
30 Jun 21
A$’000
(audited)
Current assets
Cash and cash equivalents 493,974 294,076 168,953
Trade and other receivables 1,276,408 1,098,930 1,156,499
Prepayments 23,983 18,832 14,111
Inventories
874,395
759,360
784,761
Current tax refundable 3,034 1,574 278
Other financial assets – derivatives 8 840 - 44
Total current assets 2,672,634 2,172,772 2,124,646
Non-current assets
Property, plant and equipment 177,283 169,049 172,209
Capital work in progress 89,742 5,930 70,362
Prepayments 564 160 30
Deferred tax assets
147,703
131,025
141,806
Goodwill 10 1,129,099 993,941 999,339
Indefinite life intangibles 119,246 122,716 122,354
Finite life intangibles 39,114 42,145 40,089
Right of use assets
237,367
210,156
222,367
Investment in associates 46,294 44,229 47,896
Other financial assets 10,638 10,266 8,660
Total non-current assets 1,997,050 1,729,617 1,825,112
Total assets
4,669,684
3,902,389
3,949,758
Current liabilities
Trade and other payables 1,830,068 1,481,764 1,623,904
Bank loans
7
- 327,856 116,640
Lease liabilities 40,451 35,324 36,498
Current tax payable 31,686 22,357 35,600
Employee benefits 56,883 45,275 58,706
Other financial liabilities – derivatives 8 3,087 13,059 6,631
Total current liabilities 1,962,175 1,925,635 1,877,979
Non-current liabilities
Bank loans 7 267,977 275,000 323,565
Lease liabilities
216,266
191,197
203,621
Trade and other payables 14,100 3,315 3,617
Deferred tax liabilities 126,935 122,611 127,428
Employee benefits 9,218 7,710 7,845
Total non-current liabilities
634,496 599,833 666,076
Total liabilities 2,596,671 2,525,468 2,544,055
Net assets 2,073,013 1,376,921 1,405,703
Equity
Share capital 3 1,625,079 992,850 993,616
Share based payments reserve 8,140 8,784 10,350
Foreign currency translation reserve
(18,430) (18,183) (21,163)
Retained earnings 463,091 405,652 433,453
Equity instruments fair valued through other
comprehensive income
(48) (975) (2,561)
Cash flow hedge reserve 376 (7,238) (2,671)
Equity attributable to owners of the company 2,078,208 1,380,890 1,411,024
Non-controlling interests
(5,195) (3,969) (5,321)
Total equity 2,073,013 1,376,921 1,405,703
9
EBOS GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2021
Notes
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Cash flows from operating activities
Receipts from sale of goods and services
5,148,372 4,649,732 9,080,007
Interest received
758 292 713
Dividends received from associates
6,091 5,477 5,761
Payments for purchase of goods and services
(4,967,076) (4,501,207) (8,687,637)
Taxes paid
(66,806) (41,205) (72,184)
Interest paid
(14,558) (14,343) (28,346)
Net cash inflow from operating activities
5 106,781 98,746 298,314
Cash flows from investing activities
Sale of property, plant and equipment
916 77 217
Purchase of property, plant and equipment
(10,954) (6,191) (20,354)
Payments for capital work in progress
(31,666) (1,720) (56,800)
Payments for intangible assets
(1,588) (2,312) (5,106)
Acquisition of subsidiaries
10 (106,739) (22,936) (31,223)
Investment in other financial assets
(253) (497) (497)
Net cash (outflow) from investing activities
(150,284) (33,579) (113,763)
Cash flows from financing activities
Proceeds from issue of shares
3 631,463 31,364 32,130
Proceeds from borrowings
44,371 62,420 49,600
Repayment of borrowings
(216,640) (31,740) (181,459)
Repayment of lease liabilities
(19,498) (17,424) (35,261)
Dividends paid to equity holders of parent
(71,964) (61,147) (124,986)
Net cash inflow/(outflow) from financing activities
367,732 (16,527) (259,976)
Net increase/(decrease) in cash held
324,229 48,640 (75,425)
Effect of exchange rate fluctuations on cash held
792 658 (400)
Net cash and cash equivalents at beginning of period
168,953 244,778 244,778
Net cash and cash equivalents at end of period
493,974 294,076 168,953
10
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2021
1. FINANCIAL STATEMENTS
These unaudited condensed consolidated interim financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZGAAP”) as appropriate for condensed interim financial statements. They comply with
the New Zealand Equivalent to International Accounting Standard 34 (NZ IAS 34) Interim Financial Reporting and International
Accounting Standard IAS 34.
EBOS Group Limited (‘the Company’) is a profit-oriented company incorporated in New Zealand, registered under the Companies
Act 1993 and dual listed on both the New Zealand Stock Exchange and the Australian Securities Exchange.
The Company is a Tier 1 for-profit entity in terms of the New Zealand External Reporting Board Standard A1.
The Company is a FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013, and its financial statements
comply with this Act.
These financial statements should be read in conjunction with the financial statements and related notes included in the Group’s
Annual Report for the year ended 30 June 2021.
The accounting policies and methods of computation are consistent with those of the previous year.
The information is presented in thousands of Australian dollars unless otherwise stated.
2. PROFIT FROM OPERATIONS
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
(a)
Revenue
Community Pharmacy
3,152,813
2,735,885
5,389,989
Institutional Healthcare
1,474,345 1,360,648 2,686,014
Contract Logistics Services
58,019 42,886 88,615
Contract Logistics Sales
391,994 354,384 718,911
Interdivisional eliminations
(100,290) (84,284) (178,167)
Healthcare
4,976,881 4,409,519 8,705,362
Animal Care
273,979 243,779 497,524
5,250,860 4,653,298 9,202,886
11
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
2. PROFIT FROM OPERATIONS (Continued)
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
(b)
Profit before net finance costs and tax
expense
Profit before net finance costs and tax
expense has been arrived at after charging
the following expenses by nature:
One-off items (1)
(7,771) (1,921) (3,813)
Cost of sales
(4,670,448) (4,160,581) (8,210,446)
Write-down of inventory
(5,439) (4,157) (8,127)
Impairment loss on trade and other
receivables
(28) (412) (988)
Depreciation of property, plant and
equipment
(10,697) (10,387) (20,813)
Depreciation on right of use assets
(21,502) (19,875) (39,731)
Amortisation of finite life intangibles
(6,369) (6,047) (12,101)
Short-term and low value asset leases
(3,966)
(2,278)
(5,080)
Donations
(27) (48) (228)
Employee benefit expense
(187,633) (163,075) (332,566)
Defined contribution plan expense
(10,283) (9,013) (18,285)
Other expenses
(169,472) (132,449) (267,127)
Total expenses
(5,093,635) (4,510,243) (8,919,305)
(1) One-off items comprise transaction costs incurred in relation to acquisitions undertaken during the period.
3. SHARE CAPITAL
Six months
31 Dec 21
Six months
31 Dec 20
Year ended
30 Jun 21
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(unaudited)
No.
’000
A$’000
(audited)
Fully paid ordinary
shares
Balance at beginning
of period
164,164 993,616 162,864 961,486 162,864 961,486
Dividend reinvested –
October
- - 1,233 27,553 1,233 27,553
Share placement –
December
19,526
638,155
-
-
-
-
Share placement costs
- (9,828) - - - -
Issue of shares to staff
under employee share
plan
26 841 37 825 67 1,665
Employee share issue
costs
- (48) - (70) - (144)
Shares vested under
the long term
executive incentive
scheme
- 2,343 - 3,056 - 3,056
183,716
1,625,079
164,134
992,850
164,164
993,616
12
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
3. SHARE CAPITAL (continued)
On 9 December 2021, EBOS announced an agreement to acquire LifeHealthcare for $1,167 million. LifeHealthcare is one of the largest
independent distributors of third-party medical devices, consumables, capital equipment and inhouse manufactured allograft
material in Australia, New Zealand and South East Asia. The transaction, which is subject to regulatory approvals and a number of
other conditions, will be partly funded via a fully underwritten placement (“Placement”). The Placement of 19.5 million new fully
paid ordinary shares was completed on 10 December 2021, raising $638.2 million. Proceeds have been used to reduce gross debt
until the transaction completes.
4. DIVIDENDS
AUD
Six months
31 Dec 21
AUD
Six months
31 Dec 20
AUD
Year ended
30 Jun 21
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(unaudited)
Cents per
share
A$’000
(audited)
Recognised amounts
Fully paid ordinary shares
Final – prior year
44.1 72,228 36.5 59,225 36.5 59,225
Interim – current year
- - - - 39.5 64,631
44.1 72,228 36.5 59,225 76.0 123,856
Unrecognised amounts
Final dividend
- - - - 42.8 70,305
Interim dividend
44.3 81,347 39.9 65,460 - -
44.3 81,347 39.9 65,460 42.8 70,305
Dividends are approved by the Board in New Zealand dollars. Dividends recognised in the Statement of Changes in Equity are
converted from New Zealand dollars to Australian Dollars at the exchange rate applicable on the date the dividend was approved.
Unrecognised dividends are converted at the exchange rate applicable on the reporting date. The Board approved an interim
dividend of 47.0 New Zealand cents per share on 15 February 2022. The record date for the dividend is 4 March 2022 and the
dividend will be paid on 18 March 2022.
The following table shows dividends approved in New Zealand dollars:
Six months
Six months
Year ended
31 Dec 21
NZD
31 Dec 20
NZD
30 Jun 21
NZD
Cents per
share
Cents per
share
Cents per
share
Recognised amounts
Fully paid ordinary shares
Final – prior year
46.0 40.0 40.0
Interim – current year
- - 42.5
46.0 40.0 82.5
Unrecognised amounts
Final dividend
- - 46.0
Interim dividend
47.0 42.5 -
47.0 42.5 46.0
New Zealand dollar dividends paid to equity holders of the parent are translated into Australian dollars and disclosed in the cash
flow statement at the foreign currency exchange rate applicable on the date they are paid.
13
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
5. NOTES TO THE CASH FLOW STATEMENT
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Reconciliation of profit for the period with cash
flows from operating activities
Profit for the period
101,992
92,969
184,049
Add/(less) non-cash items:
Depreciation of property, plant and equipment
10,697 10,387 20,813
Depreciation on right of use assets
21,502 19,875 39,731
Amortisation of finite life intangibles
6,369
6,047
12,101
Loss/(gain) on sale of property, plant and
equipment
7 (70) (103)
Share of profit from associates, net of dividends
received
(4,088) (2,855) (7,071)
Expense recognised in respect of share-based
payments
3,128 2,183 3,749
Deferred tax
(5,433) (5,158) (13,532)
32,182
30,409
55,688
Movements in working capital:
Trade and other receivables
(119,909) (76,343) (133,912)
Prepayments
(10,406) (6,181) (1,330)
Inventories
(89,634) (21,661) (47,062)
Current tax refundable/payable
(6,670) 5,455 19,994
Trade and other payables
216,647 67,177 209,619
Employee benefits
(450) 2,913 16,479
Foreign currency translation of working capital
balances
(228) 387 87
(10,650) (28,253) 63,875
Balances classified as investing activities
(24,307) (3,784) (12,914)
Working capital items acquired
7,564 7,405 7,616
Net cash inflow from operating activities
106,781 98,746 298,314
14
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
6. SEGMENT INFORMATION
(a) Products and services from which reportable segments derive their revenues
The Group’s reportable segments under NZ IFRS 8 Operating Segments are as follows:
Healthcare: Incorporates the sale of healthcare products in a range of sectors, own brands, retail healthcare, medical devices,
capital equipment, pharmacy services and wholesale activities.
Animal Care: Incorporates the sale of animal care products in a range of sectors, own brands, retail and wholesale activities.
Corporate: Includes net funding costs and central administration expenses that have not been allocated to the Healthcare or
Animal Care segments.
(b) Segment revenues and results
The following is an analysis of the Group’s revenue and results by reportable segment:
Healthcare
A$’000
Animal
Care
A$’000
Corporate
A$’000
Group
A$’000
Six months ended 31 December 2021
(unaudited):
Revenue from external customers
4,976,881 273,979 - 5,250,860
EBITDA
177,472 38,768 (16,359) 199,881
Depreciation of property, plant and
equipment
(10,206)
(491)
-
(10,697)
Depreciation on right of use assets
(18,108) (2,844) (550) (21,502)
Amortisation of finite life intangibles
(6,255) (114) - (6,369)
EBIT
142,903 35,319 (16,909) 161,313
Net finance costs
- - (13,800) (13,800)
Tax (expense)/benefit
(44,759) (9,897) 9,135 (45,521)
Profit for the period
98,144 25,422 (21,574) 101,992
Non-controlling interests
(126) - - (126)
Profit for the period attributable to
owners of the Company
98,018 25,422 (21,574) 101,866
The Healthcare segment results are inclusive of the one-off items disclosed in Note 2. ‘
Six months ended 31 December 2020
(unaudited):
Revenue from external customers
4,409,519 243,779 - 4,653,298
EBITDA
159,427 33,924 (11,132) 182,219
Depreciation of property, plant and
equipment
(9,964)
(423)
-
(10,387)
Depreciation on right of use assets
(16,635) (2,668) (572) (19,875)
Amortisation of finite life intangibles
(5,951) (96) - (6,047)
EBIT
126,877 30,737 (11,704) 145,910
Net finance costs
- - (14,051) (14,051)
Tax (expense)/benefit
(37,141) (8,467) 6,718 (38,890)
Profit for the period
89,736 22,270 (19,037) 92,969
Non-controlling interests
(104) - - (104)
Profit for the period attributable to
owners of the Company
89,632 22,270 (19,037) 92,865
15
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
6. SEGMENT INFORMATION (Continued)
Healthcare
A$’000
Animal
Care
A$’000
Corporate
A$’000
Group
A$’000
Year ended 30 June 2021
(audited):
Revenue from external customers
8,705,362 497,524 - 9,202,886
EBITDA
316,223 69,350 (22,276) 363,297
Depreciation of property, plant and
equipment
(19,933)
(880)
-
(20,813)
Depreciation on right of use assets
(33,281) (5,329) (1,121) (39,731)
Amortisation of finite life intangibles
(11,902) (199) - (12,101)
EBIT
251,107 62,942 (23,397) 290,652
Net finance costs
- - (27,633) (27,633)
Tax (expense)/benefit
(74,351) (17,199) 12,580 (78,970)
Profit for the year
176,756 45,743 (38,450) 184,049
Non-controlling interests
1,248 - - 1,248
Profit for the year attributable to
owners of the Company
178,004 45,743 (38,450) 185,297
16
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
6. SEGMENT INFORMATION (Continued)
The accounting policies of the reportable segments are consistent with the Group’s accounting policies. Segment result
represents profit before depreciation, amortisation, net finance costs and tax. This is the measure reported to the chief
operating decision maker for the purposes of resource allocation and assessment of segment performance.
(c) Segment assets
The following balance sheet and cash flow items are not allocated to operating segments as they are not reported to the
chief operating decision maker at a segment level:
- Assets
- Liabilities
- Capital expenditure
(d) Revenues from major products and services
The Group’s major products and services are transacted the same as its reportable segments i.e. Healthcare, Animal Care and
Corporate.
(e) Geographical information
The Group operates in two principal geographical areas; New Zealand (country of domicile) and Australia.
The Group’s revenue from external customers by geographical location (of the reportable segment) and information about its
segment assets (non-current assets excluding investments in associates and deferred tax assets) are detailed below:
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Revenue from external customers
New Zealand
1,077,393 927,077 1,847,666
Australia
4,173,467 3,726,221 7,355,220
5,250,860 4,653,298 9,202,886
Non-current assets
New Zealand
384,197 353,173 348,296
Australia
1,418,856 1,201,190 1,287,114
1,803,053 1,554,363 1,635,410
(f) Information about major customers
No revenues from transactions that are with a single customer amount to 10% or more of EBOS’ revenues for the period
(December 2020: Nil, June 2021: Nil).
7. BANK FACILITY AND BORROWINGS
The Group fully complies with and operates within the financial covenants under the arrangements with its bankers. At 31
December 2021 the Group had unutilised term loan facilities of $522.1 million (December 2020: $331.9 million, June 2021:
$465.9 million).
The Group also has a trade debtor securitisation facility of which $400.0 million was unutilised at 31 December 2021 (December
2020: $158.2 million, June 2021: $283.4 million).
17
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
7. BANK FACILITY AND BORROWINGS (Continued)
As at 31 December 2021, the maturity profile of the Group’s term debt and securitisation facilities was:
Facility Amount Maturity
Term debt facilities $250.0 million 1-2 years
Term debt facilities $172.1 million 2-3 years
Term debt facilities $293.0 million 3-4 years
Term debt facilities $75.0 million 4-5 years
Securitisation facility $400.0 million 1-2 years
In conjunction with the expected acquisition of LifeHealthcare the Group has also obtained additional committed bank debt
funding facilities of $540m in total, split evenly between a 3 and 4 year maturity tenor. The availability of these facilities are
dependent upon the completion of the LifeHealthcare acquisition and are to be used to partially fund the consideration of the
acquisition along with the proceeds of the December 2021 Share Placement (refer Note 3) and Retail Offer completed in January
2022 (refer Note 11).
8. FINANCIAL INSTRUMENTS
The Group enters into forward foreign currency exchange contracts to hedge trading transactions, including anticipated
transactions, denominated in foreign currencies and uses interest rate swaps to manage cash flow interest rate risk.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is
designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the
nature of the hedge relationship. The Group designates certain derivatives as cash flow hedges of highly probable forecast
transactions.
Fair value of derivative financial instruments
Six months
31 Dec 21
A$’000
(unaudited)
Six months
31 Dec 20
A$’000
(unaudited)
Year ended
30 Jun 21
A$’000
(audited)
Other financial assets – derivatives (at fair value)
Forward foreign exchange contracts
840 - 44
840 - 44
Other financial liabilities – derivatives (at fair value)
Forward foreign exchange contracts
2 3,179 577
Interest rate swaps
3,085 9,880 6,054
3,087 13,059 6,631
The Group has categorised these derivatives, both financial assets and financial liabilities, as Level 2 under the fair value
hierarchy contained within NZ IFRS 13 Fair Value Measurement.
The fair value of foreign currency forward exchange contracts is determined using a discounted cash flow valuation. Key inputs
include observable forward exchange rates, at the measurement date, with the resulting value discounted back to present
values.
Interest rate swaps are valued using a discounted cash flow valuation. Key inputs for the valuation of interest rate swaps are the
estimated future cash flows based on observable yield curves at the end of the reporting period, discounted at a rate that
reflects the credit risk of the various counterparties.
There have been no changes in valuation techniques used for either forward foreign currency exchange contracts or interest rate
swaps during the current reporting period.
18
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
9. IMPACT OF NEW ACCOUNTING STANDARDS
In the current period the Group has adopted all mandatory new and amended standards and interpretations.
10. ACQUISITION INFORMATION
The following material acquisitions of subsidiaries took place during the period.
Name of business acquired
Principal
activities
Date of
acquisition
Cost of
acquisition
A$’000
2022:
Pioneer Medical Limited (Pioneer)
Healthcare August 2021 38,512
Sentry Medical Pty Limited (Sentry)
Healthcare August 2021 80,521
MD Solutions Group
Healthcare September 2021 32,258
Combined details of acquisitions undertaken during the current period are as follows:
Carrying value
A$’000
(unaudited)
Fair value
adjustment
A$’000
(unaudited)
Fair value on
acquisition
A$’000
(unaudited)
Current assets
Cash and cash equivalents
19,380 - 19,380
Trade and other receivables
11,522 (1,468)
1
10,054
Prepayments
556 (90)
2
466
Inventories
17,814 (3,010)
3
14,804
Non-current assets
Property, plant and equipment
3,470 (1,040)
4
2,430
Deferred tax assets
- 3,952
5
3,952
Right of use assets
- 6,596
6
6,596
Current liabilities
Trade and other payables
(5,841) (514)
7
(6,355)
Lease liabilities
- (3,246)
8
(3,246)
Current tax payable
(9,000) (648)
9
(9,648)
Employee benefits
(850) (85)
10
(935)
Non-current liabilities
Lease liabilities
- (3,350)
8
(3,350)
Trade and other payables
(132) - (132)
Deferred tax liabilities
- (1,937)
11
(1,937)
Employee benefits
(290) (400)
10
(690)
Net assets acquired
36,629 (5,240) 31,389
Goodwill on acquisition
127,870
Total consideration 159,259
Less deferred purchase consideration (40,881)
Less cash and cash equivalents acquired (19,380)
Plus deferred purchase consideration paid in relation to prior year
acquisitions
7,741
Net cash outflow from acquisition 106,739
19
EBOS GROUP LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2021
10. ACQUISITION INFORMATION (Continued)
1. To recognise the fair value of trade and other receivables on acquisition.
2. To recognise the fair value of prepayments on acquisition.
3. To recognise the fair value of inventories on acquisition.
4. To recognise the fair value of property, plant and equipment on acquisition.
5. To recognise deferred tax assets on acquisition.
6. To recognise right of use assets on acquisition.
7. To recognise the fair value of trade and other payables on acquisition.
8. To recognise lease liabilities on acquisition.
9. To recognise the fair value of current tax payable on acquisition.
10. To recognise the fair value of employee benefits on acquisition.
11. To recognise deferred tax liabilities on acquisition.
Due to the timing of the acquisitions the above figures have not yet been finalised and are currently considered provisional.
Goodwill arose on the acquisitions of Pioneer, Sentry and MD Solutions Group because the cost of acquisition included control
premiums paid. In addition, goodwill resulted from the consideration paid for the benefit of future expected cash flows
above the current fair value of the assets acquired and the expected synergies and future market benefits expected to be obtained.
These benefits are not recognised separately from goodwill as the expected future economic benefits arising cannot be reliably
measured and they do not meet the definition of identifiable intangible assets.
Pioneer is a New Zealand based supplier of orthopaedic supplies and MD Solutions Group is an Australian based supplier of
healthcare products. Both businesses were acquired as they are profitable businesses which the Group believes fit strategically
within its Australian healthcare business assets.
Sentry is an Australian based distributor of surgical and medical consumables. Sentry was acquired as it is a profitable Australian
healthcare business which the Group believes fits strategically with its Australian healthcare business assets.
Deferred consideration of $40.9 million has been recognised as future EBITDA earn out targets of the businesses acquired, on which
the consideration is payable, are expected to be achieved.
The impact of the acquisitions on the results of the Group are not considered material and are therefore not disclosed in the Interim
Report.
11. EVENTS AFTER BALANCE DATE
Subsequent to 31 December 2021, the Board approved an interim dividend to shareholders. For further details please refer to
Note 4.
In January 2022, the Group completed a non-underwritten retail offer, to existing shareholders, in connection with the
agreement to acquire LifeHealthcare. A total of 5.0 million new fully paid ordinary shares were issued, raising approximately
$161.4 million.
20
EBOS GROUP LIMITED
DIRECTORY
CORPORATE HEAD OFFICE AUSTRALIA HEAD OFFICE
108 Wrights Road Level 7, 737 Bourke Street
PO Box 411 Docklands 3008
Christchurch 8024 Melbourne
New Zealand Australia
Telephone +64 3 338 0999 Telephone +61 3 9918 5555
E-mail: ebos@ebos.co.nz Email: ebos@ebosgroup.com
WEBSITE ADDRESS
www.ebosgroup.com
DIRECTORS
Elizabeth Coutts Independent Chair
Tracey Batten Independent Director
Nick Dowling Independent Director (resigned February 2022)
Stuart McGregor Independent Director
Stuart McLauchlan Independent Director
Sarah Ottrey Independent Director
Peter Williams Independent Director
SHARE REGISTER
Computershare Investor Services Ltd Computershare Investor Services Pty Ltd
Private Bag 92119 GPO Box 3329
Auckland 1142 Melbourne, Victoria 3001
New Zealand Australia
Telephone: +64 9 488 8777 Telephone: 1800 501 366
Managing Your Shareholding Online:
To change your address, update your payment instructions and to view your investment portfolio including transactions, please visit:
www.computershare.com/investorcentre
General enquiries can be directed to:
• enquiry@computershare.co.nz
• Private Bag 92119, Auckland 1142, New Zealand or GPO Box 3329, Melbourne, Victoria 3001, Australia
• Telephone (NZ) +64 9 488 8777 or (Aust) 1800 501 366
• Facsimile (NZ) +64 9 488 8787 or (Aust) +61 3 9473 2500
Please assist our registrar by quoting your CSN or shareholder number.
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer EBOS Group Limited
Reporting Period 6 months to 31 December 2021
Previous Reporting Period 6 months to 31 December 2020
Currency AUD
Amount (AUD000s) Percentage change
Revenue from continuing operations $5,250,860 12.8%
Total Revenue $5,250,860 12.8%
Underlying net profit from continuing
operations attributable to security holders
1
$109,271 15.8%
Net profit/(loss) from continuing operations $101,866 9.7%
Total net profit/(loss) $101,866 9.7%
Interim Dividend (NZD)
Amount per Quoted Equity Security $ 0.47
Imputed amount per Quoted Equity Security $ 0.04569444
Record Date 4 March 2022
Dividend Payment Date 18 March 2022
Current period Prior comparable
period
Net tangible assets per Quoted Equity Security
2
A$2.18 (A$0.75)
A brief explanation of any of the figures above
necessary to enable the figures to be
understood
Refer to attached Results Presentation,
Media Release and Letter to Shareholders
Authority for this announcement
Name of person
authorised to make this
announcement
Janelle Cain
Contact person for this announcement Janelle Cain
Contact phone number +61 3 9918 5370
Contact email address Janelle.Cain@ebosgroup.com
Date of release through MAP
16 February 2022
Unaudited condensed consolidated interim financial statements accompany this announcement.
1
Underlying net profit represents reported profit for the period adjusted for one-off costs in relation to merger and
acquisition transaction costs incurred ($7.8m). Refer to Appendix 1 for reconciliation between reported and underlying
earnings.
2
Net Tangible Assets excludes A$237.4m (2020: A$210.2m) of Right of Use assets but includes A$256.7m (2020:
A$226.5m) of lease liabilities in relation to the adoption of NZ IFRS 16 ‘Leases’.
Appendix 1:
Underlying EBITDA, Underling EBIT and Underlying Net Profit after Tax attributable to the owners of the
Company are non-GAAP measures, which adjust for the effects of one-off costs.
1
One-off costs comprise merger and acquisition transaction costs of A$7.8m (2020: A$1.9m) on a pre-tax
basis (A$7.4m (2020: A$1.5m) on a post-tax basis).
---
Distribution Notice
Section 1: Issuer information
Name of issuer EBOS Group Limited
Financial product name/description Ordinary Shares
NZX ticker code EBO
ISIN (If unknown, check on NZX
website)
NZEBOE0001S6
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 4 March 2022
Ex-Date (one business day before the
Record Date)
3 March 2022
Payment date (and allotment date for
DRP)
18 March 2022
Total monies associated with the
distribution
1
NZD$88,677,196
(AUD$83,542,786)
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.51569444
Gross taxable amount
3
$0.51569444
Total cash distribution
4
$0.47000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.02073529
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Partial imputation
If fully or partially imputed, please
state imputation rate as % applied
6
8.86%
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Imputation tax credits per financial
product
$0.04569444
Resident Withholding Tax per
financial product
$0.12448472
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A
N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Janelle Cain
Contact person for this
announcement
Janelle Cain
Contact phone number +61 3 9918 5370
Contact email address Janelle.Cain@ebosgroup.com
Date of release through MAP
16 February 2022
---
1
EBOS Group 2022 Interim Shareholders Report
Dear Shareholder
EBOS has achieved another record result in the first
half of the 2022 financial year, headlined by double digit
revenue and earnings growth and a further increase in
returns to our valued shareholders.
The half-year result continues EBOS’ strong track record
of earnings growth, which is underpinned by a proven
strategy of investing to build and acquire leading market
positions across a range of healthcare and animal care
sectors. The EBOS Board and management remains
focussed on disciplined capital management to generate
strong operating cashflows that will enable our continued
adherence to this proven and sound strategic direction.
While EBOS has again achieved a record earnings
result, the first half of the 2022 financial year has not
been without its challenges and the ongoing COVID-19
pandemic and emergence of the Omicron variant
continues to impact our operations and supply chains.
However, the strength and diversity of our business,
Key Highlights
Financial Highlights
$5.3 billion revenue +12.8% increase
$169.1 million EBIT +14.4% increase
$109.3 million NPAT +15.8% increase
Underlying Results
1
66.6c +15.2%
underlying earnings per share
NZ 47.0c + 10.6%
interim dividend per share
$5.3b + 12.8%
revenue
Interim
Shareholders
Report
2O22
31 December 2021
2O22 Half Year Results
Underlying EBIT
Six months to 31 December ($millions)
combined with the continued dedication, flexibility and
resilience of our more than 3,700 people across New
Zealand and Australia, has ensured that EBOS continues
to deliver for our customers and the communities where
we operate.
169.1
147.8
132.6
116.1
110.5
20172018201920202021
1
Underlying results exclude the impact of one-off M&A transaction
costs of $7.4m (post tax) (H1 2021: $1.5m).
Underlying net profit after tax
Six months to 31 December ($millions)
94.3
82.6
72.7
69.9
109.3
20172018201920202021
2
EBOS Group 2022 Interim Shareholders Report
Key highlights of the first half included:
• Revenue of $5.3 billion (up 12.8%);
• Underlying Net Profit after Tax of $109.3 million
(up 15.8%);
> $7.4 million of M&A transaction costs (post-tax) were
incurred in Statutory NPAT;
• Underlying EPS of 66.6 cents (up 15.2%);
• Interim dividend declared of NZ 47.0 cents per share
(up 10.6%);
• Continued strong performances from both our
Healthcare and Animal Care segments, with
Healthcare’s Underlying EBIT up 17.0% and Animal
Care’s EBIT up 14.9%;
• Operating cash flow of $106.8 million (up 8.1%);
• Consistent with our strategy of investing for growth
and as previously announced:
> EBOS completed three acquisitions to further expand
our Institutional Healthcare division, including Sentry
Medical, Pioneer Medical and MD Solutions; and
> EBOS reached agreement to acquire LifeHealthcare,
which will establish EBOS as a leading distributor of
medical devices in Australia, New Zealand and South
East Asia;
• Commenced the commissioning phase of our new state
of the art pet food manufacturing facility in Parkes, NSW.
The record result, achieved during the first half of the 2022
financial year, was due to consistent performances in our
Healthcare and Animal Care segments as they continued
their strong growth trajectory. This again reinforces the
strength of our diverse portfolio of businesses and reflects
the successful execution of our strategy for both organic
and inorganic growth.
The strong growth of our Healthcare segment was driven
by our Community Pharmacy, TerryWhite Chemmart
(“TWC”), Institutional Healthcare and Contract Logistics
businesses. The Community Pharmacy division’s
performance was particularly pleasing, resulting from
customer growth and market share gains and the return of
Pfizer’s retail pharmacy volumes to the wholesale channel.
In noting the growth of the Community Pharmacy and
TWC businesses it is timely to acknowledge the efforts of
pharmacists over the past two years. The commitment to
our communities by pharmacists and their teams during
the pandemic has been nothing short of extraordinary.
From day one of the pandemic, pharmacists have
remained open, providing service, guidance and comfort
for their patients and customers. Our TWC network is now
at the forefront of providing COVID-19 vaccinations and
booster shots, with the convenience and accessibility of our
network clearly resonating with those seeking vaccination.
Our Animal Care segment continues to build on its track
record of outstanding performance which was driven by
solid sales growth across our Black Hawk, Vitapet and
Lyppard businesses. We continue to benefit from the
strength of our brands and leading market positions, and
from the long-term strong market dynamics of the pet
care market, which have been accelerated during the
onset of COVID-19. In line with expectations, construction
of our new state of the art pet food manufacturing facility
has been completed and the project has now progressed
through to commissioning phase with the full commercial
benefits of this investment expected in FY24.
EBOS has continued its strategy of investing for growth,
with three acquisitions completed in the first half of the
2022 financial year. The Pioneer Medical, MD Solutions
and Sentry Medical acquisitions further strengthened our
presence in the Institutional Healthcare sector and are
EPS accretive to EBOS shareholders.
In addition, in December 2021, EBOS announced an
agreement to acquire LifeHealthcare, which is expected
to establish EBOS as a leading independent medical
devices distributor in Australia, New Zealand and South
East Asia. This acquisition will build on our previous
investments in the medical devices sector, which have
contributed to the strong growth reported this period.
Healthcare
Our Healthcare segment generated revenue of $5.0
billion and Underlying EBIT of $150.7 million, an increase
of 12.9% and 17.0% respectively on the prior corresponding
period. This growth was driven by the performances of
our Community Pharmacy, TWC, Institutional Healthcare
and Contract Logistics businesses.
In Australia, Healthcare revenue increased to $3.9
billion and Underlying EBIT increased to $122.8 million,
an increase of 12.0% and 13.1% respectively. In New
Zealand, Healthcare revenue increased to $1.0 billion and
Underlying EBIT increased to $27.9 million, an increase of
16.1% and 37.8% respectively.
Community Pharmacy revenue increased by $416.9
million (up 15.2%) driven by customer growth, market
share gains and the return of Pfizer’s retail pharmacy
volumes to the wholesale channel. The drivers of this
growth included the strong performances from our
community pharmacy retail brands and growth in both
ethical and OTC wholesale sales.
TWC welcomed 16 net new pharmacies during the
period, bringing total network stores to over 480.
We continue to see a strong store growth pipeline, and this
reinforces TWC’s position as Australia’s largest health-
advice oriented community pharmacy network. TWC
network sales grew by 7.4% and on a like-for-like basis
increased by 5.6%. This performance was driven by new
store growth, continued increases in media spend and
improved promotional and category initiatives. TWC has
also led the way with vaccinations in Australia, having been
responsible for 23% of all pharmacy delivered COVID-19
vaccinations, and we are proud of our efforts to support the
health of our communities during the pandemic.
2
Institutional Healthcare continued to perform well, with
first half revenue growth of $113.7 million (up 8.4%), largely
from increases in sales of new specialty medicines,
combined with strong organic and inorganic growth
in the medical consumables and medical devices
businesses, which included the completed acquisitions
of Sentry Medical, Pioneer Medical and MD Solutions.
2
Source: Australian Immunisation Register as at 12 January 2022
3
EBOS Group 2022 Interim Shareholders Report
Segment Overview
HealthcareAnimal Care
Contract Logistics increased Gross Operating Revenue
by $16.5 million (up 37.6%), attributable to growth in
Australia due to an increase in market share as well
as growth in New Zealand with increased demand for
personal protective equipment, vaccines and COVID-19
testing kits.
Animal Care
Our Animal Care segment generated revenue of $274
million and EBIT of $35.3 million, an increase of 12.4% and
14.9% respectively on the prior corresponding period.
The Animal Care segment continues to benefit from
the strength of our trusted brands and leading market
positions, combined with the strong tailwinds of the
Australian and New Zealand pet care market.
Our key brands, Black Hawk and Vitapet, both recorded
strong increases in revenue, up 19.6% and 9.8%
respectively. Black Hawk continues to increase its market
share in New Zealand and Vitapet maintained its leading
market share position in Australia and New Zealand,
benefiting from continued marketing investment.
The commissioning of our new state of the art pet food
manufacturing facility has commenced and is scheduled
for completion in the second half of FY22. The new
facility will facilitate insource manufacturing of Black
Hawk as well as accelerate new product development
opportunities.
LifeHealthcare acquisition update
On 9 December 2021, EBOS announced an agreement to
acquire LifeHealthcare for $1,167 million.
LifeHealthcare is one of the largest independent distributors
of third party medical devices, consumables, capital
equipment and inhouse manufactured allograft material
in Australia, New Zealand and South East Asia. At the time
of announcement, the transaction remained subject to
regulatory approvals and a number of other conditions.
Since the announcement, the retail offer was successfully
completed in January 2022, with strong support from
retail shareholders, which resulted in EBOS upsizing the
retail offer by $62 million to $161 million and the share
placement was successfully completed in December 2021
with strong support from both existing and new investors.
EBOS is progressing the remaining completion steps and
the transaction remains on track to complete prior to the
end of FY22.
Environmental, Social and Governance
EBOS continues to develop initiatives to achieve the
goals set out in its inaugural Sustainability Report
that was developed across five pillars: Health & Animal
Care Partners, Consumers & Patients, Community &
Environment, Our People and Responsible Business.
The immediate areas of focus for EBOS moving forward
are Environmental Stewardship, Packaging Waste, Ethical
Sourcing, Quality, Our People and Data Security. These
are key initiatives that have been identified as most
pertinent to ensuring we meet our short and medium
term ESG objectives across our business operations.
Safety is another key focus area within our ESG Program,
and we are committed to providing all our people with
a safe and healthy work environment and actively
promoting workplace health and wellbeing. Through this
continued focus on reducing risk across our workplaces,
we have achieved a 22% reduction in our recordable injury
frequency rate (TRIFR) in the first half of the 2022 financial
year.
Despite the ongoing impacts of COVID-19, we also remain
committed to supporting a range of environmental,
philanthropic and wellbeing activities across the
business. While it has been necessary to move some of
these initiatives to an online environment, it is pleasing
to report continued high levels of engagement from
our people. During the period, we activated a range of
initiatives, including recognising RUOK? Day, Mental
Health Awareness Week and driving participation in
STEPtember as part of our Be Well From Anywhere
Program, providing a range of opportunities to support
the mental and physical wellbeing of our people.
Underlying EBIT
Six months to 31 December ($millions)
EBIT
Six months to 31 December ($millions)
Excludes the impact of one-off items.
2017
95.5
2018
99.2
115.8
20192020
128.8
150.7
2021
20.5
22.9
24.5
30.7
35.3
20172018201920202021
4
EBOS Group 2022 Interim Shareholders Report
Printed on recycled stock
COVID-19 Update
The EBOS Pandemic Response Team, consisting of the
CEO and his direct reports, continues to oversee all
COVID-19 related matters impacting our employees and
businesses. Throughout the pandemic, the Pandemic
Response Team has overseen the implementation of
thorough health and safety protocols with the objective
of keeping both our employees safe and our primary
distribution facilities open to ensure the uninterrupted
supply of medicines and services across the community.
The impacts of lockdowns and other restrictions
has placed extra demands on the business and our
employees. The wellbeing and safety of all EBOS employees
is paramount and we have invested in extra resources to
assist them through the pandemic. We have been focused
on informing and supporting our employees by frequently
updating them on developments, issuing personal safety
and protection messages and providing general wellbeing
advice and support for them and their families. Over the last
12 months, EBOS has also distributed over 2,200 care packs
to our employees.
Another important focus for EBOS has been vaccination for
all employees. In August 2021, we introduced an incentive
program that is available to all fully vaccinated employees,
and we are also providing flexibility for staff to get
vaccinated during work hours. Through consultation with
our workforce, EBOS introduced the COVID-19 Workplace
Vaccination Policy (Australia) in December 2021, and we
continue to take all reasonably practicable steps to protect
our employees and others from the risks of COVID-19.
Linked to the employee vaccination incentive program
EBOS committed to providing a donation to UNICEF’s
VaccinAid appeal for every employee fully vaccinated,
and who applied for the incentive, as at January 2022.
The total amount committed to UNICEF was in excess of
$215,000. The funds raised will go towards UNICEF’s work
to ensure that health workers, teachers, social workers
and the most vulnerable in every country are protected
from COVID-19 and that patients get the urgent medical
supplies and oxygen they need.
It has been reassuring to see so many of our employees
committed to protecting themselves and their families, their
colleagues and the wider community by getting vaccinated.
Cash Flow, Net Debt and Return on Capital
Employed
First half operating cash flow was $106.8 million,
an 8.1% increase on the prior corresponding period.
Net capital expenditure for the period was $43.3 million
and comprised business as usual capex of $17.3 million and
$26.0m of growth capital expenditure in relation to the new
pet food manufacturing facility.
During the period, EBOS completed a number of
acquisitions for aggregate consideration of approximately
$107 million.
Return on Capital Employed (“ROCE”) of 18.2% was up
0.7% compared to 31 December 2020. This reflects our
commitment to earnings growth and disciplined capital
management.
Excluding the proceeds of the share placement completed
before the end of 31 December 2021, in connection with the
LifeHealthcare acquisition, EBOS’ Underlying Net Debt :
EBITDA ratio at 31 December 2021 was 1.28x. This is slightly
higher than the prior year reflecting the level of investment
activity undertaken in the current period.
Interim Dividend
The Directors declared an interim dividend of NZ 47.0
cents per share, an increase of 10.6% on the prior
corresponding period. This implies a dividend payout
ratio of 77.4% on an underlying basis (or 67.3% excluding
dividends paid on the new shares issued under the
capital raisings in connection with the expected
LifeHealthcare acquisition).
3
The Dividend Reinvestment Plan (DRP) will not be
operational for the interim dividend in light of EBOS’
decision to accept oversubscriptions and upsize the
recently completed retail offer in connection with the
expected LifeHealthcare acquisition.
The record date for the dividend is 4 March 2022 and
the dividend will be paid on 18 March 2022. The interim
dividend will be imputed to 25%
4
for New Zealand tax
resident shareholders and fully franked for Australian tax
resident shareholders.
EBOS reiterates its policy of declaring dividends
representing between 60% to 80% of NPAT.
Trading Update
EBOS is pleased with the strong earnings growth in the
first half of FY22 and we continue to be comfortable with
current trading conditions; however, it is uncertain what
the ongoing disruptions caused by COVID-19 variants will
have on EBOS’ trading performance.
Capital expenditure for the remainder of FY22 is expected
to remain elevated as a result of continued investment in
our operational infrastructure to support EBOS’ growth.
EBOS expects the acquisition of LifeHealthcare will be
completed before the end of FY22 and anticipates that
Net Debt : EBITDA at 30 June 2022 following completion
will be less than 2.25x.
Thank you again for your ongoing support.
Liz Coutts
Chair of the Board
John Cullity
Chief Executive Officer
3
Dividend payout ratio calculated on an underlying basis based on a
NZD:AUD exchange rate of 0.953.
4
The New Zealand company tax rate is 28%. Therefore, a dividend that is
partially imputed with 25% of the maximum allowable imputation credits
implies an 8.86% imputation percentage in relation to the gross taxable
amount of the dividend.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.