New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<h2>EBOS Group<br>1H22 Preview&nbsp;— Keep the Ball Rolling</h2>
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<p><strong>OUTPERFORM</strong></p>
<p>Following a buoyant four months trading update in December we expect minimal surprises and a strong result when EBOS Group (EBO) reports its 1H22 result on Wednesday, 16 February. Key focus areas are; (1) divisional detail, including insight into how EBO is managing inflationary pressures, (2) the impacts of the Rapid Antigen Testing (RAT)&nbsp;rollout&nbsp;in Australia (and prospectively in New Zealand), and (3) any updates on the&nbsp;LifeHealthcare&nbsp;(LHC) acquisition.</p>
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<h3>Key points of interest ahead of&nbsp;EBO's&nbsp;1H22 result</h3>
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<li><strong>We expect a solid 1H22 result with growth across the portfolio</strong>:&nbsp;EBO provided a four months FY22 trading update in December, showing a strong start to the year with group revenue up +10.6% and EBIT +13.1% (Healthcare&nbsp;+12.7%, Animal Care +14.8%). We expect a continuation of these trends across the portfolio through&nbsp;the back end of 1H22 and into the 2H. Of interest will be insights into how EBO is managing&nbsp;the impacts of rising inflation across Australia and New Zealand.</li>
<li><strong>Divisional detail</strong>:&nbsp;We expect&nbsp;Animal Care&nbsp;to remain the standout, led by&nbsp;EBO's&nbsp;branded products. Within&nbsp;Healthcare&nbsp;we anticipate&nbsp;strong growth from Contract Logistics (aided by further market share gains in Australia) and&nbsp;Institutional&nbsp;Healthcare&nbsp;(solid underlying growth supported by recent bolt-on acquisitions), with&nbsp;a solid performance&nbsp;from Community Pharmacy.</li>
<li><strong>LHC update</strong>:&nbsp;Regulatory approval is still required and we assume a two&nbsp;months contribution in FY22. Any updates or greater insights into the LHC business will be of interest. For more detail on the acquisition refer our recent research note "Ticking the Boxes"&nbsp;published 27&nbsp;January 2022.</li>
<li><strong>RAT&nbsp;rollout</strong>:&nbsp;EBO is&nbsp;one of five appointed distributors in New Zealand and is&nbsp;involved in Australia.&nbsp;</li>
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<h3>Investor briefing&nbsp;— 11:30am NZT (9:30am AEST) on Wednesday, 16 February</h3>
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<p>Requires pre-registration;&nbsp;<a href="https://apac.directeventreg.com/registration/event/5149484" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://apac.directeventreg.com/registration/event/5149484&amp;source=gmail&amp;ust=1644541048590000&amp;usg=AOvVaw25bvJBepl1y0Qw0MDC4BeT" rel="noopener">https://apac.directeventreg.<wbr>com/registration/event/5149484</a>&nbsp;or access via&nbsp;webcast;&nbsp;<a href="https://edge.media-server.com/mmc/p/umcdgzu9" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://edge.media-server.com/mmc/p/umcdgzu9&amp;source=gmail&amp;ust=1644541048590000&amp;usg=AOvVaw0BAHSGXktDMfvW4G6c35MP" rel="noopener">https://edge.media-<wbr>server.com/mmc/p/umcdgzu9</a></p>
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EBOS Group 1H22 Preview&nbsp;— Keep the Ball Rolling

OUTPERFORM
Following a buoyant four months trading update in December we expect minimal surprises and a strong result when EBOS Group (EBO) reports its 1H22 result on Wednesday, 16 February. Key focus areas are; (1) divisional detail, including insight into how EBO is managing inflationary pressures, (2) the impacts of the Rapid Antigen Testing (RAT)&nbsp;rollout&nbsp;in Australia (and prospectively in New Zealand), and (3) any updates on the&nbsp;LifeHealthcare&nbsp;(LHC) acquisition.


Key points of interest ahead of&nbsp;EBO's&nbsp;1H22 result



We expect a solid 1H22 result with growth across the portfolio:&nbsp;EBO provided a four months FY22 trading update in December, showing a strong start to the year with group revenue up +10.6% and EBIT +13.1% (Healthcare&nbsp;+12.7%, Animal Care +14.8%). We expect a continuation of these trends across the portfolio through&nbsp;the back end of 1H22 and into the 2H. Of interest will be insights into how EBO is managing&nbsp;the impacts of rising inflation across Australia and New Zealand.
Divisional detail:&nbsp;We expect&nbsp;Animal Care&nbsp;to remain the standout, led by&nbsp;EBO's&nbsp;branded products. Within&nbsp;Healthcare&nbsp;we anticipate&nbsp;strong growth from Contract Logistics (aided by further market share gains in Australia) and&nbsp;Institutional&nbsp;Healthcare&nbsp;(solid underlying growth supported by recent bolt-on acquisitions), with&nbsp;a solid performance&nbsp;from Community Pharmacy.
LHC update:&nbsp;Regulatory approval is still required and we assume a two&nbsp;months contribution in FY22. Any updates or greater insights into the LHC business will be of interest. For more detail on the acquisition refer our recent research note "Ticking the Boxes"&nbsp;published 27&nbsp;January 2022.
RAT&nbsp;rollout:&nbsp;EBO is&nbsp;one of five appointed distributors in New Zealand and is&nbsp;involved in Australia.&nbsp;



Investor briefing&nbsp;— 11:30am NZT (9:30am AEST) on Wednesday, 16 February


Requires pre-registration;&nbsp;https://apac.directeventreg.com/registration/event/5149484&nbsp;or access via&nbsp;webcast;&nbsp;https://edge.media-server.com/mmc/p/umcdgzu9


EBOS Group: 1H22 Preview — Keep the Ball Rolling

Ebos Group Ltd

EBOS Group: 1H22 Preview — Keep the Ball Rolling