Green Cross Health Ltd · NZX:GXH
Green Cross Health — FY2022 Earnings Presentation
31 slides from Green Cross Health's earnings presentation, May 27, 2022
Slide 1: Annual Results for the year 31 March 2022
GREEN ate CROSS HEALTH Annual Results for the year 31 March 2022 community health HEALTH GREEN Unichem® Life® Q Pitldrop csthedoctors -»House @access | ap GROSS
Slide 2: Disclaimer
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
Slide 3: Operational Highlights
Operational Highlights Group Revenue up 18% $100m increase in Group Revenue year-on- year Initial script volumes 47% increase in Net Earnings Attributable to up 6% Shareholders versus last year Same store dispensary Internal promotion of Alison Van Wyk to Chief revenue up 7% Operating Officer,
Slide 4: Successful diversification of EBIT contribution over time
Successful diversification of EBIT contribution over time Revenue Composition ($m) EBIT Composition ($m) 800 60 54.1 5.6 700 670 50 600 567 569 570 16.0 192 40 35.1 500 157 156 31.0 171 29.4 Million Million 3.7 111 0.1 1.2 400 30 4.4 71 77 6.6 9.3 82 300 20 35.9 200 340 336 367 27.3 317 25.2 24.1 10
Slide 5: Supporting Communities through COVID-19
Supporting Communities through COVID-19 • All divisions provided essential services to New Zealand communities GXH pharmacies – Pharmacies remained open throughout all alert levels represented 51% of all New – Medical centres provided phone, virtual and in-person Zealand pharmacies vaccinating consu
Slide 6: GXH Annual Result - Financial Overview
GXH Annual Result - Financial Overview Group Revenue Operating Profit/EBIT Net Profit After Tax $670.3m $54.1m $24.6m 18% increase vs FY21 54% increase vs FY21 47% increase vs FY21 (attributable to shareholders) Pharmacy Medical Operating Community Health Operating Profit Profit Operating Profit $35
Slide 7: Pharmacy Division
Pharmacy Division New Zealand’s largest network of health retailers: supporting easy access to quality health care
Slide 8: Pharmacy Performance
Pharmacy Performance Pharmacy Operating Revenue ($m) 367.1 • Revenue up 16% to $367.1m 340.2 336.4 • Operating Profit up 49% to $35.9m 316.8 • The rise in Pharmacy Revenue and Operating Profit was primarily due to further growth in dispensary activity and revenue from COVID-19 2019 2020 2021 2022 va
Slide 9: Living Rewards Progress
Living Rewards Progress Continued Growth in Living Rewards Members 2.0 1,886,078 Living 1.9 Rewards members 1.8 1.7 Successful new member acquisition campaigns 1.6 added 81,028 new members, despite COVID-19 conditions 1.5 Elevated instore messaging 1.4 F19 F20 F21 F22 Increased communications
Slide 10: Grown Ecommerce and Differentiated Retail Offer
Grown Ecommerce and Differentiated Retail Offer Ecommerce has Successfully Scaled Growth in Differentiated Brands $85 7% 25% $80 6% Average order value 20% % of retail sales $75 5% % of retail sales $70 4% 15% $65 3% $60 2% 10% $55 1% 5% $50 0% F19 F20 F21 F22 0% Average order value % sales FY19 FY2
Slide 11: Leveraging our National Scale
Leveraging our National Scale Pharmacy Count by Pharmacy Count By Brand Ownership 58 Stores nationwide 91 New Zealand’s largest network of health retailers 287 254 with 345 stores nationwide Dispensed over 30 million scripts, representing Life Unichem Equity Licensee almost 40% of all New Zealan
Slide 12: Pharmacy Will Win By Focusing on the Customer
Pharmacy Will Win By Focusing on the Customer Pharmacy Strategy Differentiated brand and products, recognising Brand & customer customer loyalty Retail disciplines Professional instore experience, margin management Omni-channel Care & advice accessible to the customer in multiple experience channels
Slide 13: Medical Division
Medical Division Growth, leadership and sustainable models of care
Slide 14: Medical Performance
Medical Performance Medical Operating Revenue ($m) 111.0 Revenue up 35% to $111.0m, driven by 82.2 76.5 COVID-19 testing, vaccinations, other 70.5 COVID-19 care opportunities and acquisitions Operating Profit at $16.0m, driven by 2019 2020 2021 2022 COVID-19 services, procurement benefits, cost mana
Slide 15: Track Record of Operational Improvement
Track Record of Operational Improvement Increased Efficiency Through Operational Efficiencies and Systematic Triaging Continued efficiency gains through operational improvement and leveraging scale 80% 16% – Employee costs reduced to 70% of revenue 70% 14% – Other costs reduced to 18% of revenue 6
Slide 16: Successfully Accelerated Acquisitions
Successfully Accelerated Acquisitions Medical Acquisitions* Following investing and developing internal 9 capability, completed a record 8 acquisitions in year 4 One greenfield centre (The Doctors Greenlane) 3 Successfully integrated acquisitions, to close 1 with 53 medical centres Strong pi
Slide 17: Medical Focused on Organic Growth and Acquisitions
Medical Focused on Organic Growth and Acquisitions Medical Strategy Patient & brand High quality patient care Scale Targeted centre acquisitions Technology Utilising data and systems, omni-channel offering Operational Continuous improvement focus, clinical development improvement Cost and margin Wor
Slide 18: Community Health Division
Community Health Division Delivering sustainable services to maintain and support clients’ independence within their own home
Slide 19: Community Health Performance
Community Health Performance Community Health Operating Revenue ($m) 192.2 171.4 156.5 155.6 Revenue up 12% to $192.2m Operating Profit increased $1.9m to $5.6m Improved performance reflects strategy of supporting clients with higher clinical 2019 2020 2021 2022 needs and improving profitability of
Slide 20: Improved Margin Levers Driving EBIT Growth
Improved Margin Levers Driving EBIT Growth Driving Growth in Higher Clinical Needs Labour Efficiency Initiatives Delivering EBIT Growth Segment to Lift Margin 250 4% 6.0 5.6 96% 95.4% 5.0 200 95% EBIT margin % 3% % of revenue 4.0 3.7 Revenue $m 150 94% EBIT $m 93.8% 2% 3.0 100 92.9% 93% 2.0 92.7% 1%
Slide 21: Utilisation of Technology Improving Efficiencies
Utilisation of Technology Improving Efficiencies MyAccess (Client portal) – Rollout of our internally developed client portal continued, improving client visibility Daily Client Log ins to MyAccess of upcoming appointments and staffing 900 800 – Provides clients quick access to 700 information, re
Slide 22: Community Health Targeting Profitable Growth
Community Health Targeting Profitable Growth Community Health Strategy Client Higher clinical needs & excellent client experience Technology Digital and systems development Sector Advocating for sustainable funding and equity for all representation clients Cost and margin Workforce productivity & co
Slide 23: Group Financial Result
Group Financial Result 12 months ending 31 March 2022 GXH Annual Results Presentation 27 May 2022 Pg 23
Slide 24: Group Revenue and Operating Profit
Group Revenue and Operating Profit GXH Operating Revenue ($m) GXH Operating Profit ($m) 54.1 670.3 567.2 568.5 570.4 35.1 29.4 31.0 2019 2020 2021 2022 2019 2020 2021 2022 • Revenue of $670.3m, up 18% • Operating Profit of $54.1m, up 54% • FY22 revenue supported by COVID-19 activity • In FY22, all d
Slide 25: Margin Expansion in Medical and Community Health
Margin Expansion in Medical and Community Health, Improved Margins for all Divisions in FY22 EBITDA margin 19.4% 20.0% 16.3% EBITDA margin 15.0% 14.1%14.2% 14.8% 13.0% – All divisions have improved their EBITDA 10.0% 9.8% 10.5% 10.3% 11.9% margin in FY22 versus FY21 7.9% 6.7% – Medical and Community
Slide 26: Group NPAT, EPS & Dividend
Group NPAT, EPS & Dividend GXH Net Profit After Tax Attributable to Shareholders Dividends Per Share ($m) 24.6 16.8 7.0 6.5 16.1 13.5 3.5 0.0 2019 2020 2021 2022 2019 2020 2021 2022 Based on dividends declared during the year GXH Net Profit After Tax Attributable to Shareholders (cps) • EPS at 17.2
Slide 27: Strong Working Capital Management and Operating Cash Flow
Strong Working Capital Management and Operating Cash Flow, Allowing for Acceleration of Acquisition Activity Gearing Ratio (debt / debt + equity) GXH Operating Cash Flow ($m) 70.9 IFRS 16 adjustment 65.8 54.3 29.5% 26.8% 14.0% 12.1% 51.2 44.3 31.4 34.8 2019 2020 2021 2022 2019 2020 2021 2022 • Geari
Slide 28: Outlook
Outlook GXH experienced a very strong FY22, buoyed by COVID-19 related activity Expectation for FY23 is a return to pre COVID-19 profitability levels, adjusted for acquisitions Strong balance sheet allows for dividend pay-outs and an accelerated level of acquisition activity GXH Annual Results
Slide 29: About Green Cross Health
About Green Cross Health GXH Annual Results Presentation 27 25 May June2022 2020 Pg 29Pg 29
Slide 30: Our Purpose
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. GXH Annual Results Presentation 27 May 2022 Pg 30
Slide 31: Who We Are
Who We Are Pharmacies providing extensive range of General practice networks across New Personal care, nursing, rehabilitation and health, wellness and beauty related products Zealand, offering in-practice and virtual household assistance delivered within homes and services across communities throug