2023 Annual Shareholders Meeting Prepared Address

16 August 2023
2023 Annual Shareholders Meeting Prepared Address
Third Age Health Services Limited (NZX: TAH) held it’s 2023 Annual Shareholders Meeting yesterday
15 August 2023 at 2pm. During the meeting the following prepared address was given by John
Fernandes, Chairman and Tony Wai, CEO.

Third Age Health Chairman’s address, presented by John Fernandes
While FY23 was a period of strong growth and improvements to our systems and processes it was
also a period during which the practices we acquired underperformed and net earnings were well
below our expectations.
Our relentless efforts to restore operating performance and earnings to a satisfactory level, with a
focus on operational efficiencies and waste elimination, are starting to bear fruit as evidenced by the
recent 1Q24 performance. Tony will shortly provide an overview of the actions management is taking
to continue to improve operating performance and return on invested capital. We have set the bar
high, and there's a lot more work to be done.
It's worth noting here that we are not interested in growth for growth's sake, and we do not measure
success by the overall size of your company.
Our goal over the long term is to maximise both returns on invested capital and the average annual
rate of increase in intrinsic value per share.
We are mindful of maintaining a strong balance sheet and the financial flexibility that comes with it
and therefore intend to continue to repay debt rapidly both reducing interest expenses and
rebuilding our capability to be opportunistic if the right opportunities present themselves. We also
made the decision to accelerate the return of capital to shareholders by paying dividends quarterly
instead of half yearly.
As part of our previously announced succession plan, we have some Board changes scheduled to
occur towards the end of this year. After several years of service Norah Barlow will be stepping down.
Norah has been a voice of wisdom on aged care and business generally. Her contributions have been
invaluable, and I personally am very grateful to her for her support.
Taking Norah's place is Steffan Crausaz. His recent tenure as CEO of Tamaki Health, combined with his
background as a trained pharmacist, equips him with a unique blend of clinical and healthcare

management expertise. His perspectives will be helpful as we evolve our operating model, and
continually strive to improve business performance.
I will now hand over to Tony who will update you on operational matters.

Third Age Health CEO’s address, presented by Tony Wai
Thank you, John. And good afternoon and thank you to all our shareholders joining us.
Reflecting on the Financial Year 2023, we acknowledge the challenges we faced. The company
expanded rapidly with the acquisition of two well regarded practices in Auckland, these being
EastMed Doctors in St Heliers and Devonport Family Medical, and a new start-up practice in
Christchurch (Phoenix Health Hub).
These acquisitions alongside the investments in systems, operations and personnel that we initiated
in the prior year did not deliver the financial performance we aimed for at the time. Stabilising the
team with long term resources and introducing new metrics, which were previously absent, has
accelerated our changes to identify and manage productivity, costs, funding and profitability over the
last 12 months. Integrating and growing our core ARC business has also been a positive focus and
outcome despite practitioner constraints not allowing us to progress at the rate and in areas of NZ
where demand has been high.
Recently, we released our first quarter result, and I'm pleased to say that the expected lifts in our
ARC and General Practice businesses have translated into higher earnings returns.
Despite the challenges, and the broader complexities of the health sector, I'm proud of what the
team at Third Age Health has accomplished over the 22/23 year, and to date. We've delivered
exceptional primary medical care services to the Aged Residential Care (ARC) sector and in our
General Practices and maintained a strong level of growth as we keep scaling nationally.

In the first half of the Financial Year 23, we established a robust foundation by implementing vital
resources and infrastructure, ensuring a sustainable operating model. Our efforts resulted in
reversing client churn and increasing our ARC clientele, with the second half underlying Net Profit
After Tax and before Amortisation of 363 thousand Dollars, a 12% increase on the first half.
Our team has been pivotal. We expanded our clinical workforce by 79% to 68 clinical team members,
fortifying our service delivery. Listening and responding to our practitioners’ feedback on areas of
improvement, quality consistency and coordination has helped us attract new practitioners via word
of mouth referral as well as to maintain our existing team. The workforce, like the wider healthcare
sector, is under-resourced and has gotten older. We are developing a number of strategies to attract
new practitioners over time.
Aligned with our newly refined strategy, we continue to focus on workforce and capability, clinical
efficiency and quality, commercial sustainability, and health innovation. Third Age Health's unique
position as one of the only companies focused on primary healthcare needs of older people enables
us to continuously develop and create an integrated model of healthcare. With New Zealand's aging
population, expected to double in the next 25 years to an estimated 1.5M people, and our increasing
market share, we are well-placed to respond to this growing market. Our utilisation of new digital
tools and virtual capabilities is enhancing our services and helping us scale to meet demand.
During the year the company embarked on revamping processes adopting Kaizen as a continuous
improvement framework. This has delivered a number of benefits to date including reducing issues
on on-boarding new facilities and practitioners. We are planning to adopt Kaizen through all our

business over time. Further our ongoing digitisation initiatives spotlight our commitment to
enhancing processes for our team and customers alike.
Now, as we look to FY24 and beyond, I'm optimistic. The first quarter alone registered a significant
increase in NPATA of 37% to 296 thousand Dollars over Q1 12 months ago (24% up on the prior Qtr).
This momentum is a result of our recalibration efforts and investments into change. We're also
pleased to have commenced services at Selwyn Village, a beacon in Auckland's aged residential care
facilities, aiming to redefine primary care services in retirement villages across NZ as we introduce
our pilot TAH independent-living care model.
Our achievements continue with our ARC facility's Net Promoter Score impressive leap, our debts
have been significantly reduced, and we're actively implementing cost-saving initiatives. Our clinical
team's growth is remarkable, and we're expecting further enhancements to our earnings due to
operational improvements, particularly in clinics like EastMed.
In conclusion, it's the relentless drive of our team and your support, our shareholders, that propels
us forward. Your trust enables us to fulfil our responsibility as a healthcare provider, sensitive to the
challenges older people face in maintaining quality of life. Together, we are poised for a bright future,
and I cannot thank you enough for being part of this journey.
Thank you.
[End]