GXH: Annual Shareholders’ Meeting: Speeches & Presentation

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Green Cross Health (NZX: GXH)
Annual Shareholders’ Meeting, Thursday, 1 August 2024 at 2.30pm.

Chair & Group CEO Speeches
Kim Ellis, Chair
Good afternoon.

The results for the year reflect well-canvassed issues across a number of fronts
affecting both divisions – people shortages and costs; depressed consumer demand;
and chronic government underfunding of the primary health sector. It is a fact,
albeit not a comforting one, that some or all of these we have in common with many
other NZ companies.

Additionally, our acquisition momentum has slowed and will continue to run at low
levels until vendors adjust their price expectations to the tougher trading
conditions.

Notwithstanding these headwinds, our balance sheet and cash flows are in a healthy
state presenting us with optionality as to defensive or growth strategies as the
market dictates; and the capacity to maintain regular dividends.

The Board has confidence in our CEO, and her leadership team, to turn the tide this
year by successfully executing a wide range of initiatives to tackle the challenges
and opportunities facing the company.

Rachael will now enlighten you on her plans for the year ahead.

Thank you.

Rachael Newfield, Group CEO
Slides 4-18:
Good afternoon. Before I get into the financials, for what was definitely a tough
year, let’s have a look at some of the milestones in the year. In April/May we
invested in three medical centres as part of our growth strategy. From July the
Government removed the $5 tax on prescriptions, which helped boost prescription
numbers for the period the removal was in place. In September we completed a
refresh of our Living Rewards branding – modernising the look and feel given the
programme is a key point of difference for Unichem and Life pharmacies. Two
further medical investments were made in November, taking our enrolled patient
base to over 400,000 New Zealanders. In December we renewed our debt facilities,
using the opportunity to bring in a second partner. A further medical centre was
acquired in the new year and in February we received approval to migrate 28 of our
medical centres to a different Primary Health Organisation. Finally, in March, two
further investments were made – one in medical and one in pharmacy.

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So, yes, a challenging year. On a positive note, revenue grew 2% to $504m on the
back of top line growth in both divisions. However, Operating Profit and Net Profit
After Tax Attributable to Shareholders were down 7% and 20% respectively, on the
back of the challenges Kim has mentioned. Pharmacy Operating Profit and Medical
Operating Profit were both down 8%. I’ll take you through more detail on the drivers
of that shortly.

Looking at Revenue on the left of this slide, you can see continued growth in the top
line, now at $504m. This growth was driven by the medical acquisitions, along with
strong prescription volumes. On the right hand graph you can see things have settled
after the record COVID profit year, with Operating Profit now at $31.8m. The year-
on-year drop is due to labour cost pressures, lower retail revenue and reduced
COVID-19 services.

In the top left graph, you can see the company delivered $12m Net Profit After Tax
Attributable to Shareholders and in the bottom graph you can see this equated to
8.4 cents per share. The top right graph shows the dividends paid per share. In
FY24 this was 34 cents per share. The driver of this spike was the 28 cent special
dividend paid in April 2023 following the successful divestment of the Community
Health division.

Moving to the gearing ratio, on the left of this slide you can see that the company
ended the year with a 17.3% ratio. At the end of the year we had $32.5m of
undrawn facilities. As mentioned, we refinanced our debt facilities during the year
– positioning the company well to continue to acquire, as conditions improve.
And on the right side you can see the healthy cashflows Kim spoke of with $46m of
operating cash generated in the year. That enabled investment in growth
including seven medical centres and one pharmacy. It also supported the
refurbishments and upgrades I’ll talk about shortly and ongoing investment in
technology.

So that was the company overview, next we’ll look at each of the two divisions.
Before I take you through the divisions, here’s a snapshot of what the company
looked like at year end. On the left you can see we ended the year with 330
pharmacies in the group – split between the Life and Unichem brands. Our loyalty
programme continues to grow – surpassing the two million member mark. And on
the right, we closed with 66 medical centres and 423,000 patients. Our team
included 464 nurses, 401 doctors and 31 nurse practitioners. From the map you
can see that our pharmacies and medical centres are spread from the top of the
North Island down to the bottom of the South Island - a massive footprint.

To Pharmacy. Despite the conditions, it was pleasing to see revenue grow 1% to
$364m. Just like other New Zealand businesses we saw labour cost pressures and
inflation, which meant that Operating Profit dropped to $19.3m for the year.
In terms of script volumes, we experienced a 7% growth in initial items on a same
store basis and overall the Green Cross Health network dispensed 36 million items –
that was over 40% of New Zealand’s script volume.

After last year’s record flu numbers, it was positive to see vaccinations grow a
further 5% year on year on the back of nationwide marketing campaigns and an

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investment in staff capability. Given the success of pharmacy with flu and COVID
vaccinations, it has been good to see the range of vaccinations that pharmacies
are able to offer has been extended. Initial uptake in these new vaccinations was
strong.

Our Living Rewards loyalty programme is a point of difference for Unichem and
Life Pharmacies. As mentioned, we ended the year with over two million
members. We rebranded the programme to modernise our image and attract new
members. We built on the technology investments we have made in our loyalty
platform and introduced interactive marketing programmes to build audience
profiles. The more we understand our customers, the more we can engage with
them on relevant products and services. Growing the programme is important
because Living Rewards members spend 50% more with our pharmacies than non-
members.

So what’s the plan for the year ahead? With the tough economic climate, offering
differentiated products is key and we have invested in sourcing capability to
support this. We plan to keep building on our Living Rewards data mining
capabilities, ensuring we incentivise and recognise our loyal customers.
Retail disciplines are more important than ever. This year we have a focus on
lifting the instore experience and managing margins. We are conducting a space
and product review in stores, making data-driven decisions to lift the in-store
experience and manage margins. Ensuring we are accessible to customers in
multiple channels is a focus. This year we are upgrading the Life Pharmacy
website to save cost and improve the customer experience. We all know New
Zealand’s health system is struggling to cope with demand. Government funding is
inadequate and in real terms has gone backwards. It’s a given that we will utilise
our scale of over 300 pharmacies to provide industry leadership and ensure we are
advocating for equitable health outcomes for all New Zealanders. And
management of costs is a priority given the inflationary environment. We are
looking at all costs and challenging how to make each dollar go further. Ensuring
our teams have the right technology, training and resources to maximise their
productivity continues to be a focus.

On to Medical. In the top graph you can see the continued growth in Revenue – up
5% to $140.3m in FY24. Again, as we saw in Pharmacy, margins were compressed
with Operating Profit down to $15.0m for FY24. The drivers of this were labour
cost pressure and reduced COVID-19 services. We ended the year with 423,000
patients and 66 medical centres. The top right graph shows the number of centres
acquired each year. The acquisition of seven centres in FY24 saw us close the year
with 66 medical centres. And since year end, we have actually completed one
further acquisition. The bottom graph shows the split of the centres by region.
While our largest presence is in Auckland with 26 centres, we have centres across
New Zealand – from Northland to Southland.

A key part of our strategy in Medical is to keep lifting the patient experience in our
centres and to keep building The Doctors brand. In year we again completed three
sizeable refurbishments – the results of which you can see in the photos to the
right. And we continued the rebrand programme with 44 centres now operating
under The Doctors brand.

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The plan for the year ahead includes a focus on providing high quality patient
care. The move of 28 medical centres to one Primary Health Organisation helps
simplify processes and supports more time dedicated to patient care. We continue
to look for opportunities to scale through acquisition. However, as Kim noted,
that activity has slowed currently given the trading environment. With our scale,
we are also advocating for funding improvements given the chronic Government
underfunding of the primary care sector. Investment in technology is a must. We
now have a standard technology suite and are busy rolling that out to centres to
allow us to enhance productivity while providing easy-to-use, accessible services
for our patients. Operational improvement is on the agenda for the year. With
some of the labour shortages we are facing, innovating and evolving our model of
care is crucial. Finally, as in pharmacy, cost and margin management is a given.
We are reviewing our largest cost lines, ensuring we are getting the best value
from every dollar of spend. So, as you can see, while the economic environment is
not easy, we have clear plans and lots to do in both divisions!


Contact:
Kalpana Goundar
kalpana.goundar@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 healthcare provider
with multidisciplinary healthcare teams with the purpose of working together to
support healthier communities. Green Cross Health is focused on creating
sustainable healthcare solutions with positive outcomes and experiences.
New Zealand owned and operated, Green Cross Health operates under branded
groups Unichem, Life Pharmacy and The Doctors medical centres, to provide
support, care and advice to diverse New Zealand communities.
Green Cross Health provides convenient access to professional healthcare with 330
Unichem and Life Pharmacies covering almost every New Zealand community, as
well as 66 medical centres caring for 423,000 enrolled patients.

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1
Annual Shareholders’
Meeting
1 August 2024

Agenda
• Chair’s address
• Group CEO’s address
• Voting on resolutions
• General Q&A
1 August 2024GXH Annual Shareholders' Presentation2

Rachael Newfield
Group CEO
1 August 2024GXH Annual Shareholders' Presentation3

Milestones
Acquired St
Heliers Medical
Centre, High
Street Health Hub
and invested in
Plimmerton
Medical Centre
Acquisitions
After years of sector
lobbying, funders
introduce free
prescriptions for all
Free Co-payment
2015
2016
2015
April/May ‘23
July ‘23
Insert photo
Rebrand of
Living Rewards
loyalty
programme
Living Rewards
September ‘23
Acquired Woodham
Road Medical and
Papakura East
Medical; the Medical
Division now
exceeds 400,000
enrolled patients
Enrolled Patients
2016
November ‘23
Completed
refinancing of
group debt
facilities
Refinance
December ‘23
Received approval
to move 28
medical centres to
National Hauora
Coalition PHO
Primary Health
Organisation
February ‘24
Acquired Richmond
Road Medical
Centre
Acquisition
2016
January ‘23
Invested in
Tarawera Medical
Centre and Onerahi
Pharmacy
Acquisitions
2016
March ‘24
1 August 2024GXH Annual Shareholders' Presentation4

Group
Revenue*
Operating Profit
(EBIT)*
Net Profit After Tax*
(attributable to shareholders)
Medical
Operating Profit
Pharmacy
Operating Profit
$$$$
$503.9m
*continuing operations
$31.8m
*continuing operations
7% decrease vs FY23
$12.0m
$19.3m
8% decrease vs FY23
$15.0m
8% decrease vs FY23
GXH Annual Result – Financial Overview
2% increase vs FY2320% decrease vs FY23
*continuing operations
1 August 2024GXH Annual Shareholders' Presentation5

Group Revenue and Operating Profit
•Revenue of $504m, up 2%
•FY24 Revenue increase a result of acquisitive growth in
Medical, along with strong dispensary performance in
Pharmacy
•Operating Profit from continuing operations of $31.8m,
down $2.5m
•FY24 Operating Profit decrease due to labour cost
pressures, lower retail revenue and reduced COVID-19
related services compared to FY23
399
478
494
504
FY21FY22FY23FY24
GXH Operating Revenue From Continuing
Operations ($m)
FY21FY22FY23FY24
31.4
48.5
34.3
31.8
FY21FY22FY23FY24
FY21FY22FY23FY24
GXH Operating Revenue From Continuing Operations ($m)
GXH Operating Profit From Continuing Operations ($m)
1 August 2024GXH Annual Shareholders' Presentation6

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Group NPAT, EPS & Dividend
•EPS at 8.4 cps*
•Special dividend of 28cps ($40.1m) paid 28 April 2023
following successful divestment of Community Health
division
•Final FY24 dividend of 2.0cps declared – payment date 21
June 2024
Based on dividends declared during the financial year
13.4
20.2
15.0
12.0
FY21FY22FY23FY24
GXH NPAT Attributable to Shareholders* ($m)
FY21FY22FY23FY24
0.0
6.57.0
34.0
FY21FY22FY23FY24
Dividends Per Share (cps)
FY22
FY21
FY23FY24
9.4
14.1
10.5
8.4
FY21FY22FY23FY24
GXH NPAT Attributable to Shareholders* (cps)
FY21FY22FY23FY24
*From Continuing Operations
1 August 2024GXH Annual Shareholders' Presentation

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Working Capital Management Disciplines
Supporting Further Acquisition Activity
•Gearing ratio of 17.3% in FY24
•Undrawn debt facilities of $32.5m as at 31 March 2024
•Net debt position of $11.5m as at 31 March 2024
•Refinance of debt facilities has positioned GXH well to
continue strategy of acquisitive growth
•Financing ratios:
–Debt / pre IFRS16 EBITDA – 1.1x
–Operating Profit / Interest – 12x
•Operating Cash Flow of $46.0m
Enabling investment ($17.9m) in:
•Investment in seven medical centres and one pharmacy
•Three significant refurbishments in Medical and six major
upgrades in Pharmacy
•Ongoing investments in technology including eight pharmacy
robots
14.0%
12.3%
10.4%
17.3%
FY21FY22FY23FY24
Gearing Ratio (debt / debt + equity)
FY21FY22FY23FY24
70.9
65.8
45.9
46.0
FY21FY22FY23FY24
GXH Operating Cash Flow ($m)
FY21FY22FY23FY24
1 August 2024GXH Annual Shareholders' Presentation

Divisional
Performance & Plans
1 August 2024GXH Annual Shareholders' Presentation9

Who We Are
Our Purpose: Working together to support healthier communities.
We are passionately committed to the health and wellness of New Zealand, and to providing the best support,
care and advice to our communities. This is our promise.
1 August 2024GXH Annual Shareholders' Presentation10

Pharmacy Performance
316.8
367.1
360.4
363.6
FY21FY22FY23FY24
Pharmacy Operating Revenue ($m)
FY21FY22FY23FY24
24.1
35.9
21.1
19.3
FY21FY22FY23FY24
Pharmacy Operating Profit ($m)
FY21FY22FY23FY24
•Revenueup 1% to $363.6m
•Operating Profit down $1.8m to $19.3m due to labour
cost pressures and inflation impacting margins
•Initial scripts items up 7% on same store basis
•36 million script items dispensed representing over
40% of New Zealand’s volume
1 August 2024GXH Annual Shareholders' Presentation11

Continued Growth in Vaccination Income
Following record numbers last year, flu vaccinations continued to grow (5% increase year-on-year), driven by investment in staffing
capability and nationwide marketing
More than 45,000 flu vouchers redeemed in Green Cross Health pharmacies from investment in wellbeing partnerships with various New
Zealand companies
Other vaccinations saw a significant growth, through expansion of the types of vaccines that pharmacies can administer (Boostrix,
Shingrix, Bexsero, Gardasil and MenQuadfi)
294
324
FY23FY24
Total Vaccinations - Green Cross Health
Network (‘000)
FY23
FY24
Total Vaccinations - Green Cross Health
Network (‘000)
1 August 2024GXH Annual Shareholders' Presentation12

Living Rewards Programme
4% growth in Living Rewards members to 2.03m
Rebranded the Living Rewards programme to refresh and modernise interaction with existing members and to attract new members
Retained 75% of members from the previous year and reactivated 120,000 lapsed members
Developed and introduced interactive marketing programmes to build audience profiles and increase customer engagement
Living Rewards members spend 50% more than non-members
1.81
1.89
1.95
2.03
FY21FY22FY23FY24
Continued Growth in Living Rewards
Members (millions)
FY23FY22FY21FY24
$0
$10
$20
$30
$40
$50
$60
UnichemLifeTotal
$ spend per transaction
Living Rewards Members Spend More
Non-membersMembers
Continued Growth in Living Rewards Members
(millions)
2.03m
Members
1 August 2024GXH Annual Shareholders' Presentation13

Pharmacy Future Focus
Retail
disciplines
Omni-channel
experience
Network scale &
leadership
Cost focus
Differentiated brands
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
Brand &
customer
1 August 2024GXH Annual Shareholders' Presentation14

15
Medical Performance
1 August 2024
9.3
16.0
16.2
15.0
FY21FY22FY23FY24
Medical Operating Profit ($m)
82.2
111.0
133.2
140.3
FY21FY22FY23FY24
Medical Operating Revenue ($m)
Revenueup 5% to $140.3m
Operating Profit down $1.2m to $15.0m, with
labour cost pressures and reduced COVID-19
services impacting margin
423,000 enrolled patients as at 31 March 2024,
an increase of 37,000 (+9%) since 31 March
2023
Ownership in 66 medical centres at 31 March
2024
FY21FY22FY23FY24
FY21FY22FY23
FY24
GXH Annual Shareholders' Presentation

Growth through Acquisitions
•Continued acquisition activity with investment in seven
centres in year, to close with 66 medical centres
•The Doctors has New Zealand’s largest general practice
enrolled patient base
•One additional acquisition completed post year-end
3
9
8
7
FY21FY22FY23FY24
Medical Acquisitions
FY21FY22FY23FY24
423,000 enrolled patients423,000 enrolled patients
0
5
10
15
20
25
30
Medical Centres by Region
1 August 2024GXH Annual Shareholders' Presentation16

Investment in Practice Portfolio
1
33
3
FY21FY22FY23FY24
Centre Refurbishments
FY21FY22FY23
FY24
•Three significant refurbishments completed (Ti Rakau,
Hastings, Te Whare Hapara) to enhance patient
environment and the delivery of patient care
•Rebrand programme continued with 44 centres now
operating under The Doctors brand
1 August 2024GXH Annual Shareholders' Presentation17

Medical Future Focus
Patient & BrandScaleTechnologyOperations
improvement
Cost &
margin
Targeted centre
acquisitions
Utilising data and
systems & omni-
channel offering
Continuous
improvement & clinical
development
Workforce
productivity &
margin
management
High quality patient
care
1 August 2024GXH Annual Shareholders' Presentation18

Q&A
1 August 2024GXH Annual Shareholders' Presentation19

Resolutions & Voting
1 August 2024GXH Annual Shareholders' Presentation20

Resolutions
Resolution 1: Re-election of
Peter Merton
Resolution 2: Re-election of
Ken Orr
Resolution 3: Remuneration of
the Auditor
1 August 2024GXH Annual Shareholders' Presentation21

Resolution 1
Re-election of
Peter Merton
Peter Merton to be re-elected as
Director of the Company
1 August 2024GXH Annual Shareholders' Presentation22

Resolution 2
Re-election of
Ken Orr
Ken Orr to be re-elected as
Director of the Company
1 August 2024GXH Annual Shareholders' Presentation23

Resolution 3
Remuneration of the
Auditor
To authorise the Directors to fix
the remuneration of the Auditor
for the ensuing year
1 August 2024
GXH Annual Shareholders' Presentation
24

Q&A
1 August 2024GXH Annual Shareholders' Presentation25

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
2024.
GXH Annual Shareholders' Presentation1 August 202426