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 pet nutrition manufacturing since 2019.

• Over 70% of EBITDA now comes from higher-growth, higher-return businesses, with pharmacy wholesale's share dropping below 30%.

• 85% of EBITDA is generated by businesses ranked number one or two in their sectors, supporting durable market leadership.

• Deliberate capital allocation and repeatable bolt-on acquisitions have delivered an average 16% return on capital employed 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.

Financial framework and capital allocation

• EBITDA has tripled over the past decade, reaching NZD 610–620 million in FY 2026, with a 10% CAGR driven by both organic and inorganic growth.

• Mid-single-digit organic EBITDA growth is expected to continue, with upside from disciplined M&A.

• Capital allocation prioritizes financial security, dividends (60–80% payout of underlying NPAT), and growth investments exceeding a 15% ROCE hurdle.

• CapEx will reduce by 30% from FY 2027 as the DC renewal program ends, supporting improved cash flows and EPS growth outpacing EBITDA from FY 2028.

• Group ROCE is targeted to return to 15% as capital employed stabilizes and earnings grow, mainly through organic means.

Divisional performance and growth outlook

• Symbion & Healthcare Distribution: Modernized DCs and automation forecast to unlock ~30% productivity improvement by FY27; focus on productivity, cost leadership, and asset utilization.

• Retail Pharmacy Brands: Network has grown by over 250 stores in five years, aiming for 1,000+ branded stores; digital ecosystem and expanded clinical services drive higher customer value and margin expansion.

• Medical Technology: High capital priority, expanding therapy areas across Asia-Pacific, high-single-digit organic growth expected, leveraging programmatic M&A and biologics innovation.

• Animal Care: #1 in specialty dry dog food and vet wholesale in ANZ; scaling hero brands, innovation in pet food, expanding internationally, and maintaining leadership in vet wholesale.