EBOS Group (EBO) investor relations material

Strategic evolution and portfolio transformation

• Shifted from a capital-intensive pharmacy wholesale distributor to a diversified care portfolio, redeploying over NZD 2 billion into high-growth sectors like medical technology and animal care, reducing pharmacy wholesale's EBITDA share from ~50% to less than 30% since 2019.

• 85% of EBITDA now comes from businesses ranked number one or two in their sectors, including pharmacy, medical technology, and animal care, with strong emerging brands gaining momentum and over 70% of EBITDA from higher-growth segments.

• Focused on care, productivity, and partnership, leveraging scale for cost advantage and sustainable growth, with a 10% average EBITDA CAGR over the past decade and a 16% return on capital employed from bolt-on acquisitions over five years.

• Divisional strategies are tailored: cost leadership in distribution, network and margin growth in pharmacy, therapy-led expansion in MedTech, and product-led growth in Animal Care.

• Major capital investment cycle is concluding, with infrastructure in place to support long-term growth and a shift in capital allocation toward higher-growth, higher-return businesses.

Financial framework and capital allocation

• EBITDA is expected to triple from NZD 208 million in FY 2016 to NZD 610–620 million in FY 2026, driven equally by organic growth and disciplined acquisitions, with recent cost pressures reflected in guidance.

• Underlying EBITDA has grown at ~10% CAGR over the last decade, with a mix of organic and inorganic growth.

• Capital allocation prioritizes maintaining a strong balance sheet (leverage 1.7–2.3x), reliable dividends (60–80% payout of underlying NPAT), and disciplined growth investments exceeding a 15% ROCE target.

• From FY 2027, CapEx will reduce by 30%, supporting improved cash flows and enabling EPS growth to outpace EBITDA growth from FY 2028 onward.

• Bolt-on acquisitions, such as Pacific Surgical, deliver immediate EPS accretion and ROCE above 20%, with future M&A providing upside to mid-single-digit organic EBITDA growth.

Divisional strategies and growth outlook

• Symbion and Healthcare Distribution: Modernized DCs and automation forecast to unlock ~30% productivity improvement by FY27, with contract logistics and medical consumables as higher-margin, higher-growth segments.

• Retail Pharmacy Brands: Capital-light, data-driven platform with 780+ pharmacies, aiming for 1,000+ branded stores, leveraging loyalty, digital, and retail media for margin expansion and recurring earnings.

• Medical Technology: Highest growth division, therapy area-led, expanding across Asia Pacific and biologics, with programmatic M&A and organic growth; margins and capital priority remain high.

• Animal Care: #1 in specialty dry dog food and vet wholesale in ANZ, combining premium branded growth and efficient vet wholesale, capitalizing on pet humanization, innovation, and international expansion.