2024 TAH Annual Shareholders Meeting Prepared Address

23 August 2024

2024 Annual Shareholders Meeting Prepared Address

Third Age Health Services Limited (NZX: TAH) held it’s 2024 Annual
Shareholders Meeting today, 23 August 2024 at 1pm. 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

At last year's AGM, I mentioned that we had set the bar for operating and
financial performance high. I’m pleased to report that we’ve risen to the
challenge.

By focusing on delighting our customers, consistently delivering high-quality
care, and investing in improving our systems and processes, we’ve organically
achieved record highs in the number of patients in our care and the number of
aged residential care facilities we service. This growth has translated into
record financial performance, reflecting the strength of our business model and
the dedication of our team.

Turning to capital allocation, we will continue to prioritise investments that
better enable us to serve our customers. While returning capital to
shareholders through quarterly dividends in line with our dividend policy, we
will opportunistically repay debt or buy back shares based on market
conditions. We will also continue to make acquisitions of businesses that have
similar commercial characteristics to our core business, should the
opportunities arise.

While we are pleased with what we’ve achieved over the last year, we are
never satisfied and will continuously lift the bar. As part of our commitment to
driving further success, we have introduced a profit-sharing plan that will see at
least 10% of any increase in profit shared with several key employees. This
aligns our team's incentives with our growth ambitions, and we are proud to
have those who contribute most to our success share in it.

Looking forward, we expect the need for aged care services will only increase
over the coming decades. We have a long-term horizon for this business and
hope to broaden our shareholder base with more shareholders who share this
long-term horizon.

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.

Good afternoon and thank you to all our shareholders for joining us today. As I
reflect on FY24, I am immensely proud of the resilience and achievements of
our team. Despite the challenges faced, we have continued to build on the
strengths of the organisation and deliver a positive result for the year.

Our core Aged Residential Care (ARC) business has seen significant growth,
with revenue increasing by 39%. Similarly, our General Practices have
performed well, with a 30% increase in revenue. By the end of FY24, we were
supporting 12.4% of the ARC population across New Zealand, and our
combined enrolled patient population had grown by 4%.
This has recently increased again with the acquisition of Hub Aged Care in
April, bringing our total ARC population coverage to around 14.5%.
Additionally, we have expanded our clinical workforce by 28%, and now have
87 clinicians, which has strengthened our service delivery capabilities.

The integration of acquisitions made over the last few years and the
investments made in systems, operations, and personnel have resulted in scale
efficiency and further positive financial performance. A focus on a stable,
engaged, and high-performance team and introducing new productivity
metrics has led to improvements in managing costs, funding, and profitability
over our growth phase and improved net practitioner alongside net overall
client growth.

Tighter Government funding, workforce shortages, and geographic reach
within the primary care sector across New Zealand makes operating in this
sector difficult. We are aiming to keep thriving despite this and to overcome
these, we continue to implement strategies to attract and retain top clinical
talent, including flexible working arrangements and enhanced training
programs.

1

Underlying NPBTA & underlying NPATA are adjusted for (i) non-cash amortisation charges arising as a result of purchase
accounting rules (ii) non-recurring provision related to the TADH loan (iii) adjustment for IFRS 9 ‘financial instruments’ loss on
restructure of loan.
2

Underlying EBIT adjusted for non-recurring provision related to the TADH loan.


We are actively engaging with stakeholders to advocate for fairer funding and
to ensure that the value of primary care is recognised and supported. While
expanding our geographic reach, particularly in under-served regions, we are
piloting new planned care models that balance growth with sustainability,
ensuring we continue to deliver high-quality care.

Our adoption of Kaizen as a continuous improvement framework has led to
significant process improvements, particularly in reducing onboarding issues
and enhancing operational efficiency. In parallel, our ongoing digitisation
initiatives are streamlining processes, enabling us to deliver increased value
while lowering costs for our team and customers.



FY24 was a strong year financially. Revenue increased by 35% to $15,151k,
with underlying NPATA up 148% to $1,708k. Positive cash flows from operating
activities and significant debt reduction have strengthened our liquidity
position. Our overall financial performance reflects the robust growth across
both our ARC and General Practice businesses, with ARC revenue growing by
39% and General Practices by 30%. The second half of FY24 saw underlying
EBIT increase by 37.7% to $1,510k, and overall FY24 underlying EBIT was up
75.2% to $2,606k. Statutory NPAT for FY24 was $1,383k, a substantial increase
from $412k in FY23.

As we move forward, we are focused on continuing our profitable growth. Our
strategy centres on enhancing workforce capability, improving clinical
efficiency, ensuring commercial sustainability, and driving health innovation.
The ongoing adoption of our new operating model and our digitisation efforts
will further streamline operations and enhance service delivery.
As we expand our clinical workforce and continue to attract top talent, we are
better positioned to meet the growing demand for our services.

Our unique position in the primary healthcare market for older people,
combined with our innovative approaches and integrated healthcare model,
places us well to address the needs of New Zealand's aging population. With
this population expected to double in the next 25 years, our market share and
ability to scale will enable us to respond effectively to this demographic shift.
We are committed to leveraging new digital tools and virtual capabilities to
enhance our services and improve patient outcomes.

In conclusion, I am optimistic about the future and deeply grateful for the
relentless drive of our team and the support of our shareholders. Together, we
are making a significant impact on the healthcare landscape for older people in
New Zealand, ensuring they receive the high-quality care they deserve. Thank
you for your continued trust in Third Age Health.

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