EBOS : 2022 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

EBOS Group 2022 Interim Shareholders Report 2

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.

Segment Overview

Underlying EBIT

Six months to 31 December ($millions)

Excludes the impact of one-off items.

Animal Care

Six months to 31 December ($millions)

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.