Half year results to 30 September 2017

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Green Cross Health earnings up 13.5% amidst moves to future-proof primary healthcare

27 November 2017, AUCKLAND, NZ: Listed primary health care provider Green Cross
Health, the group behind Unichem and Life Pharmacy, The Doctors and Access Community
Health, has recorded a 13.5% increase in underlying net profit to $8.8 million in the six
months to 30 September 2017, when excluding a $2.8m one-off fair value gain in the prior
period.
Green Cross Health chairman Peter Merton says emphasis on consolidating the organisation
as a leader in primary health care has resulted in continued growth, and the Group is focused
on evolving services to meet the changing needs and expectations of people in New Zealand.
“We’re well placed to capitalise on further growth and remain focused on efficient delivery
of primary health care in New Zealand,” says Merton.
“We’re investing in our network and service delivery across pharmacy, medical and
community health so we can not only sustain, but build on our core offering as demand
grows in the health care sector”.
Pharmacy operating profit before interest and tax was up 11.6% to $13.75 million, driven by
strong dispensary and franchise revenues and consistent retail sales.
Green Cross Health Pharmacy and Medical divisions CEO Grant Bai says, “We have been
strengthening our core retail disciplines and compliance across our diverse pharmacy
network. Competition in all areas of retail is increasing and we have been aligning with our
supply partners and members to ensure we continue to provide the best offering across
retail and health services to our communities”.
Green Cross Health represents 354 Unichem and Life Pharmacies. Moves to integrate
pharmacies and medical centres into convenient and easy to access health care hubs is
continuing with the opening of new sites in Wynyard Quarter and Huapai in October and
December.
“We remain focused on keeping pace with changing customer needs, investing in delivering
customer-centric services to improve patient experience and health outcomes”.
“We are growing our digital offering across all aspects of our business from ecommerce to
our award-winning online learning and development platform, Teach Me”.

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“We’ve also invested in digital service delivery platforms for medical and pharmacy and our
prescription reminder service is the first digital product on a roadmap which will use
technology to deliver convenient patient services”.
This year also saw funded flu vaccinations administered across Green Cross Health pharmacy
and medical centres and a cross divisional promotion in support of the Ministry of Health’s
public awareness programme to increase immunisation rates across the country. Green Cross
Health’s significant geographical footprint meant it played a major role in reaching people
in almost every New Zealand community, including those in remote and rural areas.
In the Medical division, operating profit has grown by 3.6% to $1.45 million, bolstered by a
5.4% increase in patient numbers to 220,200. Two medical centres joined the Green Cross
Health group and the opening of The Doctors Quaymed Wynyard and The Doctors Huapai,
will bring the equity network to 33 sites.
“We are supporting our health care teams on innovative paths to create more timely and
appropriate access for their patients, such as nurse led services and phone triage. The use
of data and dashboard analytics is instrumental in enabling our teams to anticipate the
needs of patients and tailor services appropriately”.
“We’re also identifying opportunities to collaborate with stakeholders in primary health
care to deliver better health outcomes and streamline the patient journey,” says Bai.
The Community Health division continues to deliver revenue growth, up 14.2% to $62.9
million on the same period last year, with the client base now 20,900 nationally, and
increased revenue from ACC and Nursing Services. Operating profit before interest and tax
was up 11.2% to $1.3 million.
Green Cross Health Community Health Division CEO Simon Lipscombe says, “We’re working
hard to embed pay equity and other staff retention strategies, which so far have shown
great results reducing staff turnover from 29% to 21% and there is still work to be done.”
“We are maintaining our focus on competing for government tendered services including
ACC and Nurse care. Rolling out mobile technology is going to help improve employee
rostering and enhance our client service delivery. With an aging population, demand for
home care will increase. This gives us confidence that community health has significant
growth potential,” says Lipscombe.

3

Merton says the group is on track to continue its upwards trajectory with a focus on growth
via acquisition and continued investment in delivering health care in line with the New
Zealand Health Strategy.
Shareholders on the register as at 5pm on 11 December 2017 will receive a fully imputed
interim dividend of 3.5 cents per share paid on 22 December. A dividend reinvestment plan
is available to shareholders.

Ends

For more information please contact:
Investor Relations
Steve Browning | Chief Financial Officer and Chief Operating Officer
+64 9 580 6846 | steve.browning@greencrosshealth.co.nz


Media
Debbie Yardley | Group Manager, Marketing and Communications
+64 21 470 773 | debbie.yardley@greencrosshealth.co.nz


About Green Cross Health
Green Cross Health is a listed primary health care provider, delivering integrated healthcare
solutions in communities the length and breadth of New Zealand. Representing more than
350 community pharmacies and 39 medical centres, the organisation also provides specialist
nursing and home health care services to more than 20,000 clients in their own homes.

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For the six months ended 30 September 2017
Six months endedSix months ended
30 Sep 201730 Sep 2016
(Unaudited)(Unaudited)
Note$’000$’000
Operating revenue254,151237,676
Operating expenditure5(234,765)(217,051)
Depreciation and amortisation(3,349)(3,310)
Share of profit of equity accounted investees457331
Operating profit before interest and tax16,49417,646
Net interest(1,063)(958)
Profit before tax15,43116,688
Tax expense(4,310)(3,874)
Profit and total comprehensive income for the
period
11,12112,814
Profit after tax and total comprehensive income
for the period attributable to:
Shareholders of the Parent 8,76810,490^
Non-controlling interest2,3532,324
Earnings per share:
Basic earnings per share (cents)6.257.63
Diluted earnings per share (cents)6.237.60
Net tangible liabilities per share (cents)(8.20)(12.02)
Net assets per share (cents)85.3675.45
^ Includes fair value gain of $2.764m
The consolidated interim financial statements should be read in conjunction with the
accompanying notes
Consolidated interim statement of
comprehensive income
income
1

Consolidated interim statement of changes in equity
For the six months ended 30 September 2017
Non-
ShareRetainedControllingTotal
CapitalEarnings InterestEquity
September 2017Note$’000$’000$’000$’000
As at 1 April 201783,88723,4884,855112,230
Profit and total comprehensive income for the
period
8,7682,35311,121
Transactions with owners, recorded directly
in equity
Issue of shares63,2973,297
Dividends to shareholders7(4,883)(4,883)
Distributions to non-controlling interests
(1,251)
(1,251)
Impact of other transactions with non-
controlling interests
(106)(106)
Share scheme amortisation1111
As at 30 September 2017
87,19527,2675,957120,419
September 2016
As at 1 April 201676,57713,8353,72894,140
Profit and total comprehensive income for the
period
10,4902,32412,814
Transactions with owners, recorded directly
in equity
Issue of shares63,8653,865
Dividends to shareholders(4,788)(4,788)
Distributions to non-controlling interests(1,435)(1,435)
Impact of other transactions with non-
controlling interests
(253)(224)(477)
Share scheme amortisation4242
As at 30 September 2016
80,48419,2844,393104,161
The consolidated interim financial statements should be read in conjunction with the
accompanying notes
2

Consolidated interim statement of financial position
As at 30 September 2017
As atAs atAs at
30 Sep 201731 Mar 201730 Sep 2016
(Unaudited)(Audited)(Unaudited)
Note$’000$’000$’000
Current assets
Cash and cash equivalents14,70418,19514,505
Trade and other receivables36,97833,85939,402
Inventories35,31633,71337,366
Total current assets
86,99885,76791,273
Non-current assets
Property, plant and equipment23,05321,96620,347
Intangible assets124,157124,381114,489
Deferred tax asset7,8327,9706,259
Equity accounted group investments5,6915,1274,771
Total non-current assets
160,733159,444145,866
Total assets
247,731245,211237,139
Current liabilities
Payables and accruals72,93662,41065,713
Income taxes payable8363,872289
Borrowings6,33728,58625,294
Total current liabilities
80,10994,86891,296
Non-current liabilities
Payables and accruals1,1201,1621,272
Borrowings46,08336,95140,410
Total non-current liabilities
47,20338,11341,682
Total liabilities
127,312132,981132,978
Net assets
120,419112,230104,161
Equity
Share capital687,19583,88780,484
Retained earnings27,26723,48819,284
Total equity attributable to shareholders of the
Parent
114,462107,37599,768
Non-controlling interest5,9574,8554,393
Total equity120,419112,230104,161
The consolidated interim financial statements should be read in conjunction with the
accompanying notes
3

Consolidated interim statement of cash flows
For the six months ended 30 September 2017
Six months endedSix months ended
30 Sep 201730 Sep 2016
(Unaudited)(Unaudited)
Note$’000$’000
Cash flows from operating activities
Equity accounted investee dividend received233327
Receipts from customers251,032232,537
Payments to suppliers and employees(225,677)(220,045)
Net interest paid(1,063)(958)
Income taxes paid(7,208)(5,034)
Net cash inflow from operating activities817,3176,827
Cash flows from investing activities
Purchases of property, plant, equipment and software
intangibles
(4,514)(5,430)
Acquisition of interests in subsidiaries and associates(365)(2,555)
Proceeds from sale of shares in subsidiary
25-
Net cash outflow from investing activities(4,854)(7,985)
Cash flows from financing activities
Proceeds from new borrowings
51,813
3,763
Repayment of borrowings
(64,930)
(5,244)
Shares issued for cash6-149
Dividends paid - shareholders(1,586)(1,472)
Net distributions to non-controlling interests(1,251)(1,451)
Net cash outflow from financing activities(15,954)(4,255)
Net decrease in cash and cash equivalents(3,491)(5,413)
Cash acquired: business combinations--
Add opening cash and cash equivalents18,19519,918
Closing cash and cash equivalents as per consolidated
interim statement of financial position
14,70414,505
Reconciliation of closing cash and cash equivalents to
the balance sheet:
Cash and cash equivalents14,70414,505
Closing cash and cash equivalents
14,70414,505
The consolidated interim financial statements should be read in conjunction with the
accompanying notes
4

Notes to the financial statements
For the six months ended 30 September 2017
1.
2.
(a)
(b)
(c)
(d)
3.
4.
TheseconsolidatedinterimfinancialstatementshavebeenpreparedinaccordancewithGenerallyAcceptedAccounting
PracticeinNewZealand(NZGAAP),NZIAS34InterimFinancialReporting,andotherapplicableFinancialReportingStandards
asappropriateforprofitorientedentities.Theseconsolidatedinterimfinancialstatementsdonotincludealloftheinformation
requiredforfullannualfinancialstatementsandshouldbereadinconjunctonwiththeconsolidatedfinancialstatementsofthe
Group as at and for the year ended 31 March 2017.
Theconsolidatedinterimfinancialstatementsforthesixmonthsended30September2017andthecomparativeinformationfor
the six months ended 30 September 2016 are unaudited.
Basis of measurement
ThefinancialstatementsoftheGrouparepreparedunderthehistoricalcostbasisunlessotherwisenotedwithinthespecific
accounting policies below.
Inauthorisingtheconsolidatedinterimfinancialstatementsforthesixmonthsended30September2017,theDirectorshave
ensuredthatthespecificaccountingpoliciesnecessaryfortheproperunderstandingofthefinancialstatementshavebeen
disclosed,andthatallaccountingpoliciesadoptedareappropriatefortheGroup’scircumstancesandhavebeenconsistently
applied throughout the period for all Group entities for the purposes of preparing the consolidated interim financial statements.
Inherentintheapplicationofcertainaccountingpolicies,judgmentsandestimatesarerequired.TheDirectorsnotethatthe
actual results may differ from the judgments and estimates made.
The Group has three reportable segments: pharmacy services, medical services and community health.
TheGroup’smainoperationsareinthepharmacyindustryprovidingpharmacyservicesthroughconsolidatedstores,equity
accountedinvestmentsandfranchisestores.Themedicalservicessegmentincludesfullyownedandequityaccounted
medicalcentres,andsupportservicesprovidedtothesemedicalcentres,aswellasmedicalcentresoutsidetheGroup.The
community health services segment provide services direct to the community to support independant living.
Changes in accounting policies
TheaccountingpoliciesappliedbytheGroupintheseconsolidatedinterimfinancialstatementsarethesameasthoseapplied
bytheGroupinitsconsolidatedfinancialstatementsfortheyearended31March2017.TheGrouphasnotappliedany
standards, amendments to standards and interpretations that are not yet effective.
Accounting estimates and judgments
Comparatives
Where appropriate comparative information has been reclassified to conform to the current period's presentation.
Segment reporting
Reporting Entity
Basis of preparation of financial statements
Statement of compliance
GreenCrossHealthLimited(the“Parent”)isaNewZealandcompanyregisteredundertheCompaniesAct1993andlistedon
the NZX Main Board (“NZX”). The Parent is a FMC Reporting Entity for the purposes of the Financial Markets Conduct Act 2013.
TheconsolidatedinterimfinancialstatementsofGreenCrossHealthLimitedcomprisetheParent,itssubsidiaries,anditsinterest
in associates and joint ventures (together referred to as the “Group”).
5

Notes to the financial statements
For the six months ended 30 September 2017
4.
Segment reporting (continued)
September 2017
Total revenue
Cost of products sold
Employee benefit expense
Lease expense
Other expenses
Depreciation and amortisation
Net interest income / (expense)
Tax expense
Profit after tax
Segment assets
Segment liabilities
September 2016
Total revenue
Cost of products sold
Employee benefit expense
Lease expense
Other expenses
Depreciation and amortisation
Net interest income / (expense)
Tax expense
Profit after tax
Segment assets
Segment liabilities
1. Other includes intersegment eliminations and one off items
Profit before tax
(958)
$’000$’000
2,7642,764
Pharmacy
services
Medical
servicesCommunity Health Other
1
(1,446)
Gain on settlement of vendor put
option
Operating profit before interest and
tax
55,078-
-
Total
-
197,60231,22230,551(22,236)237,139
12,814
$’000$’000
157,84024,758
105,34322,58227,289(22,236)132,978
(28,796)(18,605)(50,712)-(98,113)
(3,310)
50281--331
(7,876)(579)
-
12,315
15,431
(90,743)---(90,743)
(1,063)
16,494
247,731
127,312
$’000
(4,310)
$’000
24,951
322
20,892
62,894
-135
13,7481,2951,452-
184,912
(12,511)
(12,511)
-
-
(95,839)
254,151
--
(18,306)(58,134)
Share of profit of equity accounted
investees
(30,709)
Operating profit before interest and
tax
(2,546)(282)(522)-
(3,795)
(3,349)
Profit before tax
Medical
servicesCommunity Health
$’000$’000
(107,149)
(95,839)
(10,221)
(21,556)
11,121
40,528
22,564
34,803
457
237,676
17,646
(2,646)
Share of profit of equity accounted
investees
-----
Gain on sale of associate and joint
venture
-
96,368
Total
$’000
(2,380)-
(8,218)
(15,381)
-
Other
1
$’000
166,306
Pharmacy
services
-
(1,438)(564)-
(3,874)
(9,901)
(15,514)(3,287)(2,257)-(21,058)
(300)(364)-
16,688
1,4011,1652,764
6

Notes to the financial statements
For the six months ended 30 September 2017
5.Operating expenses
Cost of products sold
Employee benefit expense
Lease expense
Gain on settlement of vendor put option
Gain on sale of associate and joint venture
Other expenses
6.Shares on issue
Shares authorised and on issue
Opening number of shares
Shares issued - fully paid
Shares cancelled - partly paid
Shares issued - partly paid
Shares held as treasury stock
Closing number of shares
7.
8.Operating cash flows reconciliation
Profit for the period
Add/(deduct) non-cash items:
Depreciation and asset write-off
Gain on settlement of vendor put option
Other non-cash items
Receivables and accruals
Inventory
Payables and accruals
(Unaudited)
(333)
1,384
(150)
-
138,518
(467)
138,051
234,765
-
(Unaudited)
137,284
$’000
As at
2,701
90,743
(2,764)
30 Sep 2017
107,149
28
21,55621,058
--
Six months ended
217,051
(Audited)
$’000
As at
30 Sep 2016
(Unaudited)
$’000
(Unaudited)
98,113
On 23 June 2017 Green Cross Health Limited paid a final dividend for the March 2017 year of 3.5 cents
per qualifying ordinary share to shareholders, which was fully imputed to 28%.
139,502
10,2219,901
30 Sep 2017
Six months ended
30 Sep 2016
Six months ended
As at
(333)
(150)
$’000
95,839
30 Sep 201730 Sep 2016
Distribution to owners
31 Mar 2017
$’000
139,835
-
1,578
137,284
-
141,080
-
141,413139,835
12,814
17,317
7,538
(63)
4,602
6,827
(Unaudited)
$’000
(Unaudited)
$’000
Six months ended
Net cash inflow from operating activities
11,121
(1,603)
Add/(deduct) changes in working
capital items:
(5,139)
(6,013)
3,390
-(2,764)
(3,116)
3,349
7

Notes to the financial statements
For the six months ended 30 September 2017
9.Subsequent events
On 27 November 2017 Green Cross Health Limited declared dividends of 3.5 cents per qualifying
ordinary share, which will be fully imputed to 28%.
No adjustments are required to these consolidated interim financial statements in respect to this event.
8

Company Directory
Registered Office
Auditor
Green Cross Health Limited
KPMG
Ground Floor, Building B
KPMG Centre
602 Great South Road
18 Viaduct Harbour Avenue
Ellerslie, Auckland 1542
Auckland
Telephone: +64 9 571 9080
Bankers
BoardBank of New Zealand
P M Merton80 Queen Street
ChairmanAuckland 1010
J A BagnallShare Registrar
Non-Executive DirectorComputershare Investor Services Limited
Private Bag 92119
J B BollandAuckland 1142
Non-Executive DirectorLevel 2
159 Hurstmere Road
P J WilliamsTakapuna
Non-Executive DirectorAuckland 0622
A W EdwardsManaging your shareholding online:
Independent Director
To change your address, update your
payment instructions and to view your
M M Millard
registered details including transactions,
Independent Director
please visit;
www.investorcentre.com/nz
K A Orr
Independent Director
General enquiries can be directed to;
enquiry@computershare.co.nz
C M SteelePrivate Bag 92119
Independent DirectorAuckland 1142
Telephone: + 64 9 488 8777
Board SecretaryFacsimile: + 64 9 488 8787
J H Greenwood BCom, FCA
Green Cross Health Limited
Please assist our registrar by quoting your CSN
Private Bag 11 906
or shareholder number
Ellerslie, Auckland
Websites
www.greencrosshealth.co.nz
9

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Reporting Period
Previous Reporting Period
Amount ($NZ '000s)Percentage change
Revenue from ordinary activities$254,1516.93%
Profit from ordinary activities after tax attributable to
security holders
$8,768-16.41%
Net profit attributable to security holders$8,768-16.41%
Dividend
CommentsThe net profit attributable to shareholders for the six
months ended 30 September 2016 included a fair value
gain on settlement of a vendor put option of $2.764m.
Removing this from the comparative for improved
comparability results in the percentage change in net
profit attributable to shareholders increasing from
-16.41% to +13.49%.
Please refer to the attached unaudited Interim
Consolidated Financial Statements for the six months
ended 30 September 2017.
Green Cross Health Limited
6 months to 30 September 2017
6 months to 30 September 2016
Directors have resolved to declare an interim dividend
of a net 3.5 cents per share, fully imputed at 28%.
The interim dividend will be paid on 22 December 2017
to shareholders on the register as at 5 pm on 11
December 2017. The Dividend Reinvestment Plan will
be operative for this dividend payment.
Results for announcement to the market

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Authority for event,
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numbernumberDate
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conversion notices mailedMust be within 5 business days
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Cease Quoting Rights 5pm:
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EMAIL: announce@nzx.com
Notice of event affecting securities
GREEN CROSS HEALTH LIMITED
Steve BrowningBoard resolution of 27 November 2017
09 571 908009 571 908127112017
Ordinary SharesNZBDOE0001S8
In dollars and cents
$0.035
Enter N/A if not
applicable
$$0.002431$0.013611
$
NZD$0.006176
$4,937,805
Date Payable
22 December, 2017
11 December, 201722 December, 2017
22 December, 201722 December, 2017