2021 Annual Shareholders Meeting Prepared Addresses

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15 September 2021




2021 Annual Shareholders Meeting Prepared Addresses


Third Age Health Services Limited (NZX: TAH) held its 2021 Annual Shareholders Meeting
yesterday, 14 September 2021 from 6pm.

During the meeting the following prepared addresses were given by the Chairperson, Bevan
Walsh, the current CEO, Michael Haskell and the new CEO, joining on 27 September 2021,
Tony Wai.





Bevan Walsh
Chairperson

Attached.

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2021 Annual Shareholders Meeting
Address by Bevan Walsh, Chairperson

I’d like to speak about some of the highlights we have seen in the 2021 financial year and
beyond and talk about a few aspects of the business.

We completed a wholesale funding round in October 2020, and demand for our shares was
approximately two times the number that the company itself had available to sell.

We were delighted to welcome a meaningful number of additional shareholders, some of
whom will be attending an AGM of ours for the first time. The new capital we raised was put
aside for acquisitions, which I’ll talk about tonight.

As with any business, relationships with customers and potential customers are vital.
Meeting the needs of our existing customers, and diversifying our customer base by getting
new contracts, is an ongoing area of focus. As a key enabler of this is having suitable
practitioners in the right place.

We’ve recently signed up a number of additional medical practitioners in Auckland - more in
6 weeks than we’ve ever before signed up in the same amount of time. While we will keep
aiming to bring in more practitioners to our team to enable growth, there is another
method we are focusing on, which looks on the face of it to be non-organic growth, but in
our experience has helped organic growth too: acquisition of medical centres in the right
location.

Obviously, when we buy medical centres, we will add their future bottom and top lines to
our group future bottom and top lines, so growth by acquisition is attractive to us in itself,
for this reason alone. And we see them as a hedge against some risks.

However, there’s another reason we wish to buy medical practices - when we own a
medical centre, we can of course direct its human resources.

Therefore, acquiring medical centres in locations around New Zealand that will assist our
core business, is a part of our growth strategy.

I am very pleased that, as announced to the market on Monday, that Third Age Health has
agreed to purchase Belmont Medical Centre on Auckland’s North Shore. Settlement is set
for 1 October. This will take us to two medical centres and we are actively working to buy
more. Execution on this is important.

On another subject, we are pleased to have successfully listed on NZX this year, giving
shareholders a chance to sell their shares, and new shareholders to get exposure to our
business. But also, to give us another source of potential funding for acquisitions – the
capital markets.

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I’d like to thank our team, and our customers, for their extraordinary efforts in dealing with
the effects of COVID lockdowns, as a great deal of care must be taken on infection control,
and the way that we operate during lockdowns is different.

COVID does represent a significant downsize risk to our business, and we have seen what it
has done to rest home-based people overseas. New Zealand has been very fortunate so far
in this respect.

As you would have seen in announcements we have made, our CEO, Michael Haskell, is
stepping down from his role and after a huge focus from myself and the rest of the board on
candidate selection, we are delighted to announce the appointment of our new CEO, Tony
Wai, who will start on 27 September. We will introduce Tony to you tonight.

Tony has excellent New Zealand health system experience, is well-connected within our
health system, is an influencer, has more experience buying medical centres than we
already have, and comes with fresh ideas and energy to put to use for us.

I am very much looking forward to working with Tony and welcome him to Third Age Health.
You’ll hear from him tonight.

I want to express my deep thanks to Michael for the huge amount of energy he has put in to
Third Age Health for so many years, and for what he has done for patients and shareholders.
I’ve seldom seen someone with more energy than Michael, and his dedication has been
remarkable. Those of us who’ve been shareholders for a long time have especially
benefited. Thank you very much, Michael.

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2021 Annual Shareholders Meeting
Address by Michael Haskell, CEO

Thank you to all of our shareholders that have joined us tonight. When we listed back in
February, we had just under 100 shareholders and as of this morning we had 193.

Our financial year to 31 March 2021 was another good year for us.
Revenue for the year reached a new record of $5.5m which was up 4.4 percent on the
previous year -resulting in pre-tax profit of $1.6m.

Net profit after tax from continuing operations was up 6.8% and when adjusted to exclude
one-off listing costs of $166,847 was up 23.9% on the previous year.

Our profit margins also continued to improve. Gross profit was 60.5% in 2021 up from
55.6% in 2020.

Our net profit margin before tax increased to 28.3 % in 2021 up from 27.5% in 2020 and
when adjusted to exclude one-off listing costs of $166,847 our net profit margin before tax
jumps up to 31.3%. I’d like to thank our managers for continuing to improve our margins.
They have done and continue to do an excellent job.

We repaid the remaining $673k of bank debt during the 2021 financial year which has left us
with zero bank debt on our balance sheet.

Operationally we continued to expand in the year to 31 March 2021 by adding several new
doctors and nurse practitioners and commenced service to several new facilities across the
regions.

We’ve also made several key announcements since 1 April 2021 and among them are the
appointment of Neil Hopkins as our CFO, that Tony Wai will soon be taking over from me as
CEO and then just yesterday, we announced the acquisition of Belmont Medical Centre on
the North Shore of Auckland. Belmont is our first acquisition since Hawkes Bay Wellness
back in 2018 and we don’t expect it will be our last.

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2021 Annual Shareholders Meeting
Address by Tony Wai, new CEO joining 27 September.

I’m pleased to be here today for the first AGM as a listed company.

A little bit about me. I’ve spent over 10 years in a wide range of executive roles across
health including primary and community healthcare, mental health, and behavioural
healthcare.

By profession, I’m a qualified chartered accountant. Most recently I’ve been working in NZ’s
largest primary healthcare provider, that is ProCare Health as Group CFO for a short time
before I departed as CEO.

In advance of our current Health reforms, I’ve led a large part of the re-positioning of
ProCare in response. My last couple of years was involved in forming the first Primary
healthcare practice co-op and developing a program of co-operative ownership of general
practices. I’ve been involved in the acquisition and brokering of over 10 general practice
businesses.

I have a wife and a son who is now at Auckland University. I am excited to be part of this
next part of the Third Age Health story and to build on the great work Michael and the team
have delivered in recent times.

Third Age plays an important part in what is dear to my heart for health in NZ; Good health
and a great quality of life is a right for all New Zealanders – and as we are all aware, we have
a need to address that for our older generation. According to Statistics NZ's National
Population Projections - 2020 to 2073, the 65+ population is expected to grow from around
16% of today’s population to between 21-26% by 2048, an increase of between 600 to 700
thousand people. It’s a significant issue for NZ and represents a significant opportunity for
Third Age Health to play a large part in improving the health and wellbeing, for them and
their families.