Green Cross Health at the Emerging Companies Conference

GREEN CROSS HEALTH
Investor Presentation
14
th
March 2019

Green Cross Health –40 Year History
•1981: Unichem Pharmacy Group established as a buying group
•1995: Unichem Life launches. Life Pharmacies are larger format pharmacies located predominantly in malls
•2003: Unichem Pharmacy Group merges with the Amcalgroup and becomes PharmacybrandsLimited
•2005: Life Pharmacy split from the group to establish the first listed pharmacy group on the NZX – Beauty Direct
•2009: Life Pharmacy merges with Pharmacybrandsand the company takes over the NZX listing under PHB
Share Price pre-merger $0.36, EBITDA $1.5m
•2011: Acquisition of Radius Pharmacy and Radius Medical marking transition to broader healthcare services
•2014:
•Pharmacy brand consolidation to Unichem and Life Pharmacy
•Investment in community care specialist Total Care Health Services and acquisition of Access Homehealth, a provider
of home healthcare services adding ~$1m EBIT
•Acquisition of Peak Primary, adding 11 medical centres
•Pharmacybrandsbecomes Green Cross Health Limited (GXH)
•MarketCap today $143m
2

Green Cross Health Today
3
As at 30 Sep-18

Three Divisions
4
1 Excluded from Underlying Operating Profit (EBIT + associate earnings): 1H19 unfunded Leave Liability (ULL) of -$0.4m (due to the implementation of pay equity legislation); 2H18 -$1.9m ULL
Also excluded from the divisional segments are Corporate Overheads of $1.7m LTM Sep-18

Business Fundamentals
Pharmacy
•Revenue:
•Franchise: License Fees and
Supplier Income
•Stores: Profit contribution
from equity stake
•Market Growth:
•Prescriptions ~+2% p.a.
•GXH Retail +2.1%
(1H ‘19 Same Store)
Community
•Revenue:
•DHB home care 70%
•MoHDisability support 10%
•ACC home and wound care
20%
•Market Growth:
•Aging Population over 65’s
+3.5% YoY
•Staying in homes longer
5
Medical
•Revenue:
•Capitation, Private, Service
Fees
•Market Growth:
•NZ Population ~+2% p.a.
•GXH Patient numbers +16%
Yo Y
•GXH Revenue +37.5% YoY

Key Environmental Trends
•Increasing consumer demand for convenience (“what I want when I want it”)
•Increasing concern for health, beauty and wellness
•Strong offshore demand for NZ sourced products
•Increasing competition in Pharmacy (offline and online)
•Ministry of Health and DHB budget constraints
•Upcoming legislative and regulatory change, which could result in changed Pharmacy
ownership rules
•Pharmacyhas higher profile
•Pharmacy has larger product range
•Pharmacy retail margins under threat
6

Focus on core retail
disciplines
Grow exclusive product
range
Grow e-commerce
MaximiseChinese market
opportunity
Optimise digital health and
retail communications
channels with customers
Utilise 1.5m customer
loyalty database, analytics
and AI to personalise offers
Pharmacy
Focus
7
Continue to grow the
franchise network
Optimise equity store
network
Reshape to fit new
environment
Changes in ranging,
e-commerce, pricing
and expenses to
achieve returns
Retail and HealthNetwork ScaleFinancial
Customer Engagement

Deploy digital technology to
increase efficiency and
enhance delivery of high
quality patient care
Continuous improvement in
operational efficiency and
scale to create capacity and
lead to improved profitability
Opportunity for cross referrals
Network and Patient # growth
through targeted acquisition
And marketsharegrowth
Build The Doctors brand
Medical
Focus
8
Customer Engagement
Network Scale
Financial

Focus on higher clinical
needs segments
Expand geographic
coverage of Community
Nursing business
Negotiating sustainable
funding for existing and
future contracts
Exit contracts that are not
financially viable
Harness technology to
enhance workforce
efficiency and client
outcomes
Community
Health Focus
9
Service Offering
FinancialDigital communication

Group Revenue and Profit
•YoY Revenue Growth: average +11% over 3 years to $546m (LTM to Sep-18)
•Underlying Operating Profit: average +5.7% over 3 years to $32.4m(LTM to Sep-18)
•Underlying Net Profit after Tax attributable to shareholders: average +5.6% over
3 years to $17.9m
(LTM to Sep-18)
Excluded from Underlying Operating Profit (EBIT + associate earnings) and Underlying NPAT:
1H19 unfunded Leave Liability (ULL) of -$0.4m (due to the implementation of pay equity legislation); 2H18 -$1.9m ULL
1H17 +$2.8m Fair Value Gain (FVG): 1H16 +$0.5 FVG
10
1
includes non-recurring items: 1H16 +$0.5 Fair Value Gain
(FVG); 1H17 +$2.8m FVG; 2H18 -$1.9 ULL; 1H19 -$0.4m ULL

Cash Generation / Debt Capacity
•Operating cash generation ~$30m
•Total Debt (excluding cash on hand $10m) at Sep-18 was $54m
•$90m bank debt facilities so $36m headroom
•Major Shareholders - 64%:
•Cape Healthcare (Peter Merton / ZuelligGroup)
•Segoura(Andrew Bagnall)
Enabling investment in:
•New Acquisitions
•Capital Assets
Financing Ratios:
•DEBT / EBITDA –1.46x
•EBIT / Interest –13.8x
•
Fixed Charge Cover
1
– 2.6x
1
calculation: EBITDA excluding $20m lease cost / (Interest + $20m Lease Cost)
11

GREEN CROSS HEALTH
Investor Presentation
14
th
March 2019

Disclaimer
The information in this presentation was prepared by Green Cross Health Limited (GXH) with due care and attention. However, the information is
supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the
information. In addition, neither GXH nor any of its subsidiaries, directors, employees, shareholders nor any other person shallhave liability whatsoever
to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in
connection with it.
This presentation may contain forward-looking statements and projections. These reflect GXH current expectations, based on what it thinks are
reasonable assumptions. GXH gives no warranty or representation as to its future financial performance or any future matter. Except as required by law
or NZX listing rules, GXH is not obliged to update this presentation after its release, even if things change materially. This presentation does not constitute
financial advice. Further, this presentation is not and should not be construed as an offer to sell or a solicitation of an offer to buy GXH securities and may
not be relied upon in connection with any purchase of GXH securities.
This presentation contains a number of non-GAAP financial measures, including Gross Margin, Operating Revenue, EBITDA, and Net Debt. Because they
are not defined by GAAP or IFRS, GXH calculation of these measures may differ from similarly titled measures presented by other companies and they
should not be considered in isolation from, or construed as an alternative to, other financial measures determined in accordancewith GAAP. Although
GXH believes they provide useful information in measuring the financial performance and condition of GXH business, readers are cautioned not to place
undue reliance on these non-GAAP financial measures.
The information contained in this presentation should be considered in conjunction with the consolidated financial statementsfor the period ended 31
March 2018 and Interim Report for the period ended 30 September 2018.
13