GXH: Annual Shareholders’ Meeting: Speeches & Presentation

1

Green Cross Health (NZX: GXH)
Annual Shareholders’ Meeting, Monday, 31 July 2023 at 2.30pm.

Chair & Group CEO Speeches
Kim Ellis, Chair
Slide 4:
The Board was pleased with the overall FY23 result. Net Profit After Tax (NPAT)
Attributable to Shareholders of $45.2m was a company record. That headline
number was driven by the successful divestment of the Community Health
division. Putting that to one side, continuing operations delivered $15m of NPAT
despite COVID activity of recent years largely having fallen away and the labour
market providing challenge and impacting margins.
A significant project for the year was selling the Community Health division. The
company ran a staged, competitive process which led to the division being sold to
Anchorage Capital Partners (an Australian private equity fund) for an enterprise
value of $50m. The sale completed a month prior to year-end with a reported gain
on sale of $21.8m. The Board chose to divest the division to increase the focus of
Rachael and her team on the pharmacy and medical divisions, where we see plenty
of opportunities for growth.
The earnings result, combined with the sale of the Community Health division,
bolstered the year-end balance sheet resulting in a net cash position of $34.7m.
The Board declared a 28cps special dividend post balance date. Notwithstanding
the dividend payment, the balance sheet remains strong and, in combination with
the company’s $60m debt facility with the BNZ, offers sufficient headroom to
support further acquisitions and investment in the pharmacy and medical divisions.
Touching on the outlook for the year ahead, we do have some strong headwinds. In
particular, labour supply constraints are leading to the use of high-cost temporary
staffing and at times are restricting operations. Additionally, the wage-related
inflationary impact experienced in FY23 shows no sign of softening. While cost
management is imperative in response to the post-COVID revenue environment in
the Medical Division, the company is looking to capitalise on the work done in
recent years to improve underlying performance, particularly in the Pharmacy
division, with a focus on organic growth.
I’ll now hand to Rachael who will take you through the FY23 results and more
detail on how she plans to deliver on the Board’s expectations for the coming year.
Rachael Newfield, Group CEO
Slides 6 - 21:
Before we get into the financials and the strategy going forward, I thought I would
begin with some highlights.
Group revenue increased $15.5m (which was a 3% uplift year on year). Reported
Net Profit After Tax Attributable to Shareholders was up 89%. This was driven by
the sale of the Community Health division – which delivered a $21.8m gain. The

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underlying NPAT was $15m. And in the 2022 Randstad survey results, GXH was
recognised as the 6th most desirable place to work in New Zealand.
In Pharmacy the underlying revenue drivers were strong – with retail sales up 2% on
the back of some recovery in CBD and large mall stores. And prescription volumes
were up 10% year on year. Flu vaccinations, which have been a growth area for the
division, increased again – a 93% increase year on year. And in KPMG’s Customer
Experience Excellence Survey our brands continued to display their strength –
placing second and fourth.
In Medical the growth continued with revenue up 20%, driven by acquisitions and
by organic growth at 3%. It was another busy year of acquisitions, with eight new
centres acquired. And we continued to invest in the centres – with a number of
rebrands to The Doctors and refurbishments of centres completed.
On to the financials. Working down the left-hand side first, as mentioned, Group
Revenue was up 3%. You’ll note that is from continuing operations – so that’s the
Pharmacy and Medical divisions – the Community Health Division is not classed as a
continuing operation.
The Operating Profit was $34.3m. That’s a drop year on year as expected given
last year we had a record Operating Profit result, with Green Cross Health heavily
involved in COVID vaccinations. And Net Profit After Tax Attributable to
Shareholders was $45.2m on the back of the gain from the sale of the Community
Health division.
Then to the right of the slide. Pharmacy came in at a profit of $21.1m – a drop
year on year given the initial wave of New Zealand’s COVID vaccinations was
completed the prior year. And Medical lifted 1% to $16.2m Operating Profit. I’ll
talk more about the divisional results shortly.
Staying on the Group results, the first graph on the left is the revenue from
continuing operations. You can see the increase to $494m which was driven by
Medical’s revenue growth – both new acquisitions and same centre revenue
growth.
And then the graph to the right shows the Operating Profit result. You’ll see the
profit at $34.3m. While we have come down from the record high of FY22, the
result was well up on FY21 (with 9% growth). That’s because the COVID
vaccinations have come off as New Zealanders are now largely vaccinated, with
just day to day boosters continuing. We also saw labour cost pressure, like most
New Zealand businesses.
On this slide in the top left you can see the Group Net Profit After Tax result, as
mentioned already.
In the bottom left you can see how that Net Profit After Tax translates at a cents
per share level with a Net Profit After Tax Attributable to Shareholders of 31.6cps
in FY23.
And to the right, you see dividends of 7c per share were declared in year. Post
year end, a further dividend was declared of 28c – this was on the back of the sale
of the Community Health Division.

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Looking at the balance sheet, the gearing ratio at year-end was 11% with a net
cash position of $34.7m on balance date – supporting the post year end payment of
the 28c special dividend.
And on the right, the Operating Cash Flow for the year was $45.9m. This supported
investment in growth. In year the Medical division purchased another eight medical
centres. And, as mentioned earlier, we continued to invest in the medical centre
assets with three refurbishments completed and five rebrands to The Doctors
completed in year.
So that covers the Group result, I’ll next talk through the performance and plans
for each of Pharmacy and Medical.
Just to set the scene, here’s what the two divisions looked like in May.
The Pharmacy division represented 342 pharmacies – 57 Life Pharmacies and 285
Unichem pharmacies throughout New Zealand – from the far North to the bottom
of the South Island. Our Living Rewards membership base continues to grow – now
at 1.9m loyalty members. Our investment in PillDrop, while small, is going well.
And then on the Medical side of the business, at May we were up to 63 medical
centres (an increase of two since balance date actually). That sees us at 401,000
enrolled patients. With just over 400 nurses and 400 doctors on staff, along with 21
nurse practitioners.
Pharmacy - In the top graph you can see that, even with the COVID vaccinations
coming off this year, revenue was $360.4m.
In the bottom graph you can see that profit dropped to $21.1m. Why was that?
The one-off COVID activity came to an end as expected. This revenue was largely
replaced – but by a different mix of revenue, at lower margins. The underlying
revenue drivers were pleasing with retail revenue up 2% and script numbers up
10%. Also, we saw an impact on margins from labour cost pressures.
Our focus on the Living Rewards loyalty programme continues. We now have over
1.9m members. In year we ran acquisition campaigns, adding an additional 66,000
members.
We have now successfully transitioned to a new specialised loyalty system, which I
mentioned briefly this time last year. That’s important because it gives us
additional capability to segment offers to customers and personalise our offers to
them. Living Rewards members spend on average 65% more than non-Living
Rewards members so they’re a crucial customer group to retain and grow.
We continued with our retail strategy to ensure we offer differentiated products –
while some elements of our product offer need to be consistent with other
retailers, we also need to ensure we offer unique brands that customers can only
purchase from Unichem and Life Pharmacies. Our focus on lifting the basket size
led to a 1.6% increase in spend per transaction.
On the right-hand side, I’ve already mentioned the success with flu vaccinations.
You can see the Group delivered a total of 285,000 flu vaccinations last year. That
was a 93% increase year on year.
And so how will we win going forward?

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It’s all about the customer. Our strategy is to ensure we’re differentiating our
brands and products from the competition and very importantly, recognising and
rewarding customer loyalty.
We continue to lift our retail disciplines instore as well as ensuring we’re
accessible to customers in multiple channels.
Network scale is important – given the division dispensed over 34m scripts last
year, we need to ensure we’re leveraging our trusted brands, and advocating for
improved health outcomes for all New Zealanders. The recent removal of the $5
co-pay is an example of that – this has removed barriers and made medicines more
accessible for all New Zealanders.
Finally, cost focus – a massive focus for us now, particularly given the labour cost
pressure we’re seeing. We are constantly managing costs, including ensuring we
have the most cost-effective resource on each activity and using technology to
reduce costs.
Next to Medical. In the top left graph you can see the lift in Revenue to $133.2m –
a 20% increase year on year. During the first half of the year there was some
residual COVID activity - as people contracted COVID, our centres provided virtual
care for patients in their homes. Acquisitions also drove the increase.
And then Operating Profit in the bottom graph rose to $16.2m, up 1%. While an
increase, clearly not to the same degree as Revenue increased. That was because
the prior year’s record profit included significant COVID swabbing activity which
was no longer available in FY23. Also, as in Pharmacy, we saw labour cost
pressures impacting margins.
At year-end the division had 386,000 patients and 61 medical centres. As
mentioned, by May, those numbers had already grown to 401,000 patients and 63
medical centres.
Let’s start with the right-hand side on this slide – the photos are of two recent
projects. Investing in The Doctors brand and the quality of our centres is key.
On the left-hand side you can see the focus on ramping up acquisitions has
continued, with eight acquisitions in year, following a record nine the year prior.
And you can see the corresponding increase in enrolled patients - noting that since
year-end we have surpassed the 400,000 patient mark. Green Cross Health has
New Zealand’s largest enrolled patient base.
The operational improvement projects continued – even more important given the
labour cost pressures that I just mentioned.
EBIT margin came in at 12%, which is the line you can see on the right-hand side
graph. Reducing other costs was a priority, with a reduction to 17% of Revenue.
Our strategy includes using our scale to drive efficiency gains. In year we
commenced a roll-out of a standardised suite of practice management systems –
this will support further operational efficiencies along with an improved patient
experience.
Medical’s strategy is one of organic and acquisitive growth.
Again, this centres on the patient – delivering high quality care.
We will continue to scale – when we can acquire at appropriate prices, we will.

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Investing in technology is key – that includes utilising data to enhance decision
making and ensuring we’re accessible to our patients in multiple channels.
Operational and clinical improvement are a given.
And like in Pharmacy, cost and margin focus are critical. We have a number of
projects underway around workforce productivity and management.
And last of all, what does the year ahead look like?
The COVID rollercoaster appears to have come to an end – we are returning to
more ‘normal’ trading conditions.
However, we have some real challenges with workforce shortages and inflationary
pressures in both divisions. This leads to the use of contractors and locums which
are expensive. We often have to source short term support from outside a region,
which adds cost. We are working to limit the impact of workforce challenges as
much as possible, with a number of strategies in place. Having said that, we are
seeing a continued margin squeeze, particularly in Medical in the first few months
of the year.
At the same time as managing the labour challenges, we are working to deliver
organic and acquisitive growth.
Last of all, the removal of the $5 pharmaceutical co-pay will also support growth -
as a barrier to medicines collection has been removed for all New Zealanders. We
are advocating on behalf of all New Zealanders that the co-pay should not return,
regardless of who is in Government and encourage you to do the same.

Contact:
Ben Doshi
ben.doshi@gxh.co.nz

Rachael Newfield
rachael.newfield@gxh.co.nz


About Green Cross Health
Green Cross Health (NZX: GXH) is a trusted New Zealand primary health care
provider with multi-disciplinary health care teams with the purpose of working
together to support healthier communities. Green Cross Health is focused on
creating sustainable health care solutions with positive outcomes and experiences.
New Zealand owned and operated, Green Cross Health operates under branded
groups Unichem and Life Pharmacies and The Doctors medical centres, to provide
support, care and advice to diverse New Zealand communities.
Providing convenient access to professional health care with 342 Unichem and Life
pharmacies covering almost every New Zealand community, Green Cross Health care
for 401,000 enrolled patients at 63 medical centres.

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GXH Annual Shareholders’ Presentation 31 July 2023Pg 2
Kim Ellis
Chair

GXH Annual Shareholders’ Presentation 31 July 2023Pg 3
Agenda
• Chair’s address
• Group CEO’s address
• Voting on resolutions
• General Q&A
3

GXH Annual Shareholders’ Presentation 31 July 2023Pg 4
Business Update
NPAT/EPS
Community Health sale
Balance sheet
Dividend – special & ordinary
Outlook

GXH Annual Shareholders’ Presentation 31 July 2023Pg 5
Rachael Newfield
Group CEO

GXH Annual Shareholders’ Presentation 31 July 2023Pg 6
Operational Highlights
Group
Highlights
Pharmacy
Division
Medical Division
• $15.5m increase in Group Revenue year-on-year
• 89% increase in reported Net Profit After Tax attributable
to shareholders
1
• Divestment of Community Health division on 28 February
2023, gain of $21.8m
• GXH recognised as a Top 10 most desirable place to
work in New Zealand by Randstad
• Retail sales up 2%, with CBD and Large Mall stores
up 6% combined
• Script volumes up 10%
• Flu vaccination volumes increased 93%
• KPMG global customer experience survey placed
Unichem and Life Pharmacy 2
nd
and 4
th
respectively
within the NZ non-grocery retail sector
• Gross Revenue up 20%
• Same centre revenue growth of 3%
• Acquisition of eight new medical practices
• 5 rebrands and 3 centre refurbishments in year
1
Includes profit from discontinued operation (Community Health division) plus gain on divestment, totalling $30.3m net of tax.Excluding the discontinued operation, NPAT attributable to shareholders decreased 26% to $15.0m.

GXH Annual Shareholders’ Presentation 31 July 2023Pg 7
GXH Annual Result - Financial Overview
Group Revenue
(continuing operations)
$493.6m
3% increase vs FY22
Group Performance
Operating Profit/EBIT
(continuing operations)
$34.3m
29% decrease vs FY22
Net Profit After
Tax
(attributable to shareholders)
$45.2m*
89% increase vs FY22
Divisional Performance
41% decrease vs FY22
Pharmacy Operating Profit
$21.1m
Medical Operating Profit
$16.2m
1% increase vs FY22
*
Includes profit from discontinued operation (Community Health division) plus gain on divestment, totalling $30.3m net of tax

GXH Annual Shareholders’ Presentation 31 July 2023Pg 8
Group Revenue and Operating Profit
•Revenue of $494m, up 3%
•FY23 revenue increase a result of acquisitive
growth in Medical, along with 3% growth in same
centre revenue in Medical, plus retail and script
growth in Pharmacy
413
399
478
494
FY20FY21FY22FY23
GXH Operating Revenue From Continuing Operations
($m)
29.8
31.4
48.5
34.3
FY20FY21FY22FY23
GXH Operating Profit From Continuing Operations
($m)
•Operating Profit from continuing operations of
$34.3m, down 29% (up 9% on FY21)
•FY23 Operating Profit decline the result of
reduced COVID-19 related services compared to
FY22, and increased labour pressure

GXH Annual Shareholders’ Presentation 31 July 2023Pg 9
Group NPAT, EPS & Dividend
9.4
11.7
16.7
31.6
FY20FY21FY22FY23
GXH Net Profit After Tax Attributable to Shareholders
(cps)
13.5
16.8
23.9
45.2
FY20FY21FY22FY23
GXH Net Profit After Tax Attributable to Shareholders
($m)
•EPS at 31.6 cps, an increase of 89% on prior year
•Final FY23 dividend of 3.5cps declared – payment date
23 June 2023 (interim dividend was 3.5cps)
•Special dividend of 28cps ($40.2m) paid 28 April 2023
following successful divestment of Community Health
division
3.5
0.0
6.5
7.0
FY20FY21FY22FY23
Dividends Per Share
(cps)
Based on dividends declared during the financial year

GXH Annual Shareholders’ Presentation 31 July 2023Pg 10
Working Capital Management Disciplines Supporting
Further Acquisition Activity
29.5%
14.0%
13.3%
11.0%
FY20FY21FY22FY23
Gearing Ratio (debt / debt + equity attributable to
shareholders)
•Gearing ratio of 11.0% in FY23
•Undrawn debt facilities of $40.2m as at 31 March 2023
•Net cash position of $34.7m as at 31 March 2023
•Improved working capital management has positioned
GXH well to continue strategy of acquisitive growth
•Financing ratios:
–Debt / pre IFRS16 EBITDA – 0.7x
–Operating Profit / Interest – 24x
54.3
70.9
65.8
45.9
FY20FY21FY22FY23
GXH Operating Cash Flow ($m)
•Operating Cash Flow of $45.9m
Enabling investment ($24.3m) in:
•Eight medical centre acquisitions
•Ongoing site capex requirements including three
refurbishments and five rebrand projects in Medical

GXH Annual Shareholders’ Presentation 31 July 2023Pg 11
Divisional
Performance & Plans

GXH Annual Shareholders’ Presentation 31 July 2023Pg 12
Divisional Snapshot
As at May 2023

GXH Annual Shareholders’ Presentation 31 July 2023Pg 13
Pharmacy Performance
25.2
24.1
35.9
21.1
FY20FY21FY22FY23
Pharmacy Operating Profit ($m)
336.4
316.8
367.1
360.4
FY20FY21FY22FY23
Pharmacy Operating Revenue ($m)
•Revenue of $360.4m
•Operating Profit at $21.1m
•Following record profit in FY22 driven
by COVID-19 vaccination activity,
Operating Profit down 41% with shift
in revenue mix and labour cost
pressures
•Revenue from retail activity lifting
from COVID-19 lows, up 2%
•Script numbersup 10%

GXH Annual Shareholders’ Presentation 31 July 2023Pg 14
Living Rewards Members Spend 65% More
Than Non-members
3.5% growth in Living Rewards members to 1.95m
Successful new member acquisition campaigns
added 66,583 new members
Transitioned to new specialty loyalty platform in
year, increasing segmentation and personalisation
capability
Increased communications and offers to Living
Rewards members, lifting member spend per
transaction 13% year-on-year
Life Pharmacy Living Reward members spend 65%
more than non-members and Unichem Living
Reward members spend 41% more than non-
members
1,952,661 Living
Rewards Members
1.55
1.60
1.65
1.70
1.75
1.80
1.85
1.90
1.95
2.00
FY20FY21FY22FY23
Million members
Continued Growth in Living Rewards Members
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
UnichemLifeTotal
$ spend per transaction
Living Rewards Members Spend More
Non-membersMembers

GXH Annual Shareholders’ Presentation 31 July 2023Pg 15
Growth in Differentiated Products and
Vaccinations
Differentiation strategy through supplier partnerships
continued with strategic and exclusive brands now
accounting for 23% of retail sales
Over 20% growth in total differentiated sales year on
year
Expansion of differentiated over-the-counter product
offering with a year-on-year increase in sales of over 5%
Strategies to lift the basket size and protect margin
progressed, leading to 1.6% increase
0%
5%
10%
15%
20%
25%
FY20FY21FY22FY23
% of retail sales
Growth in Differentiated Brand Sales
40
49
57
110
74
91
91
175
0
50
100
150
200
250
300
FY20FY21FY22FY23
Thousands
GXH Equity pharmaciesGXH Licensee pharmacies
Record Year for Flu Vaccinations
COVID-19 vaccination resource diverted to focus on
flu vaccinations, with volumes up 93% year on year

GXH Annual Shareholders’ Presentation 31 July 2023Pg 16
Pharmacy Will Win By Focusing on the Customer
Brand &
customer
Retail
disciplines
Omni-channel
experience
Network scale &
leadership
Cost focus
Differentiated brand and
products, recognising
customer loyalty
Professional instore
experience, margin
management
Care & advice accessible to the
customer in multiple channels
Leveraging our trusted
brands, advocating for equity
for all New Zealanders
Workforce productivity
& occupancy cost
control

GXH Annual Shareholders’ Presentation 31 July 2023Pg 17
Medical Performance
6.6
9.3
16.0
16.2
FY20FY21FY22FY23
Medical Operating Profit ($m)
76.5
82.2
111.0
133.2
FY20FY21FY22FY23
Medical Operating Revenue ($m)
Revenueup 20% to $133.2m, driven
by COVID-19 activity in the first half
of the year, along with acquisitions
Operating Profit up 1% to $16.2m,
with labour cost pressures and
reduced COVID-19 swabbing
impacting margin
386,000 enrolled patients as at 31
March 2023, an increase of 57,000
(+17%) since 31 March 2022
Ownership in 61 medical centres

GXH Annual Shareholders’ Presentation 31 July 2023Pg 18
Growing The Doctors Presence & Brand
267
285
329
386
FY20FY21FY22FY23
Enrolled Patients
1
3
9
8
FY20FY21FY22FY23
Medical Acquisitions

GXH Annual Shareholders’ Presentation 31 July 2023Pg 19
0%
2%
4%
6%
8%
10%
12%
14%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
FY20FY21FY22FY23
EBIT %
Cost %
Double Digit EBIT Margin Through Operational
Efficiency and Cost Management
Employee costs %Other costs %EBIT %
Operational Improvement Initiatives Continue
Following record-high COVID-19 earnings in
FY22, EBIT margin came in at 12% for
FY23, despite inflationary labour pressures
Other costs reduced to ~17% of revenue
through successful cost reduction initiatives
Delivering efficiency gains through
operational improvement and leveraging
scale
Commenced roll-out of standardising
practice management systems to improve
patient experience and gain operational
efficiency

GXH Annual Shareholders’ Presentation 31 July 2023Pg 20
Medical Strategy of Organic Growth & Acquisitions
Patient &
Brand
Scale
Technology
Operational
improvement
Cost & margin
focus
High quality patient care
Targeted centre
acquisitions
Utilising data and systems, omni-
channel offering
Continuous improvement
focus, clinical development
Workforce productivity
& margin management

GXH Annual Shareholders’ Presentation 31 July 2023Pg 21
Outlook
• Returning to more ‘normal’ trading conditions
• Workforce shortages and inflationary pressures
• Organic and acquisitive growth

GXH Annual Shareholders’ Meeting Presentation 25 July 2022Pg 22
Q&A

GXH Annual Shareholders’ Meeting Presentation 25 July 2022Pg 23
Resolutions & Voting

GXH Annual Shareholders’ Meeting Presentation 31 July 2023Pg 24
Resolutions
•Resolution 1: Re-election of Andrew Bagnall
•Resolution 2: Re-election of Carolyn Steele
•Resolution 3: Remuneration of the Auditor

GXH Annual Shareholders’ Meeting Presentation 31 July 2023Pg 25
Resolution 1 – Re-election of Andrew Bagnall
Andrew Bagnall to be re-elected as
Director of the Company

GXH Annual Shareholders’ Meeting Presentation 31 July 2023Pg 26
Resolution 2 – Re-election of Carolyn Steele
Carolyn Steele to be re-elected
as Director of the Company

GXH Annual Shareholders’ Meeting Presentation 31 July 2023Pg 27
Resolution 3 – Remuneration of the Auditor
To authorise the Directors to fix the remuneration of the Auditor
for the ensuing year

GXH Annual Shareholders’ Meeting Presentation 25 July 2022Pg 28
Q&A

GXH Annual Shareholders’ Presentation 31 July 2023Pg 29
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 shall have 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 Operating Revenue and Operating Profit. As 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 accordance
with 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 statements for the
period ended 31 March 2023.