Life Healthcare Group Holdings Limited · JSE:LHC
Life Healthcare — Life Healthcare Grp Hldgs — H1 2026 Earnings Presentation
25 slides from Life Healthcare's earnings presentation, May 28, 2026
Slide 1: Unaudited Group interim results and cash dividend declaration
Unaudited Group interim results for the six months ended 31 March 2026 and cash dividend declaration 2026
Slide 2: Highlights
Highlights
Slide 3: Highlights: Quality of earnings improving
Highlights Quality of earnings improving Normalised Revenue growth Operating profit2 EBITDA margin +2.4% +8.4% +0.5% Normalised EPS Interim dividend 17.8% ROCE1 +8.4% Operating profit up 9.5% 17.8% ROCE1 +8.2% 1 Return on capital employed (ROCE) is calculated as operating profit/capital employed. Ca
Slide 4: Strategy review
Strategy review Pete Wharton-Hood
Slide 5: Our strategy | Competitive advantage
Our strategy | Competitive advantage UTILISE CAPABILITIES Strong Compassionate Technology Clinical Doctor Footprint balance sheet people and data excellence relationships es e rvic Life Nkanyisa s Acute hospitals ar e Ac ute hc 2 531 beds al t h os 41 facilities 7 facilities e pi 8 063 acute hospita
Slide 6: Our strategy | Grow, Drive, Optimise
Our strategy | Grow, Drive, Optimise GROW DRIVE OPTIMISE Grow footprint in strategic locations Drive facility utilisation Optimise asset utilisation • Greenfield expansion by targeting new • Doctor recruitment and retention • Strategically optimise asset utilisation builds in growth geographies • Ge
Slide 7: Our strategy | FY2026 progress: Grow
Our strategy | FY2026 progress Growth remains on track GROW Greenfield expansion • 140-bed Life Paarl Valley Hospital • Construction underway Brownfield expansion • 89 acute beds • 34 acute beds added in H1, balance in H2 • 1 new cathlab at Life Mount Edgecombe Hospital • Cathlab opened May 2026 • 1
Slide 8: Our strategy | FY2026 progress: Drive
Our strategy | FY2026 progress H1 impacted by funder challenges DRIVE Improvement in Sizwe (funder) facility under • H1 occupancy1 67.5% utilisation in Q2 curatorship Occupancies at 70% • Q2 occupancy > 70.0% • PPD growth1 (0.4%) Overall occupancy %1 Paid patient day (PPD) growth of c. 1.0% • Exclud
Slide 9: Our strategy | FY2026 progress: Optimise
Our strategy | FY2026 progress Portfolio optimisation underway to improve margins and returns • Meaningful progress made in defining optimisation pathways and OPTIMISE next steps EBITDA margin improvement • Executive team focussing on cost savings • Overall • + 0.5% to 15.8% • 6 workstreams prioriti
Slide 10: Our strategy | Underlying capabilities
Our strategy | Underlying capabilities UTILISE CAPABILITIES Strong Compassionate Technology Clinical Doctor Footprint balance sheet people and data excellence relationships STRONG BALANCE SHEET CLINICAL EXCELLENCE DOCTOR RELATIONSHIPS • Net debt/EBITDA 0.93x 8.6 8.6 • Sub-specialist training program
Slide 11: Operational review
Operational review Pete Wharton-Hood
Slide 12: H1-2026 | Acute hospitals
H1-2026 | Acute hospitals Solid underlying operational performance Revenue (R’m) 10 457 Occupancy recovery in H2, 10 348 1.1% Revenue 1.1% PPDs1 (0.9%) with Q2 exceeding 70% 6.7% Occupancy %1 67.0% 9 698 ICU occupancy %1 82.0% Medical/surgical split Theatre minutes1 0.0% H1-2026 54% / 46% H1-2025 55
Slide 13: H1-2026 | Complementary services
H1-2026 | Complementary services Good growth and margin expansion Revenue (R’m) 1 335 Revenue 13.7% Mental health occupancy of 1 174 13.7% Normalised EBITDA 36.6% 75.9% 40.8% 834 PPDs 3.4% Occupancy 72.7% Diagnostic acquisitions Renal dialysis treatments 9.3% contributing positively, with MRI/CT/PET
Slide 14: H1-2026 | Asset optimisation
H1-2026 | Asset optimisation Focus on top-performing assets while addressing focus units Operational efficiency of the top 30 acute hospitals remains a key focus % of % of % of % of Occupancy PPD Revenue beds PPDs revenue EBITDA % growth growth Total acute 100% 100% 100% 100% 67.0% (0.9%) 1.1% Top 3
Slide 15: Financial highlights
Financial highlights Pieter van der Westhuizen
Slide 16: H1-2026 | Statement of profit and loss
H1-2026 | Statement of profit and loss Pro forma H1-2025 % H1-2026 H1-2025 adjustment Pro forma vs pro 1. Good tariff increase. R’m R’m R’m R’m forma Notes Revenue impacted by funder Revenue 12 422 12 133 12 133 2.4 1 under curatorship and certain business units' occupancy Normalised EBITDA 1 957 1
Slide 17: H1-2026 | Segment
H1-2026 | Segment H1-2026 H1-2025 % R’m R’m change • Normalised EBITDA for hospitals, complementary services Revenue and corporate increased by 7.5% resulting in an EBITDA Hospitals 10 457 10 348 1.1 margin of 16.2% (H1-2025: 15.4%) Complementary services 1 335 1 174 13.7 Healthcare services 630 611
Slide 18: H1-2026 | Cash flow from continuing operations
H1-2026 | Cash flow from continuing operations H1-2026 H1-2025 % • Cash generated impacted by R’m R’m change timing of working capital Cash generated from operations 1 315 1 959 (32.9) collections Interest, tax and transaction costs paid (318) (405) • H1-2026 outflow R633m Maintenance capex (525) (5
Slide 19: H1-2026 | Financial position
H1-2026 | Financial position H1-2026 FY2025 R’m R’m • Strong balance sheet Non-current assets (excluding contingent consideration) 16 244 16 117 • The Group successfully raised Property, plant and equipment 11 511 11 301 R1.5 billion debt through Goodwill and intangibles 2 220 2 333 public auction a
Slide 20: Earnings per share and dividend
H1-2026 | Earnings per share and dividend Pro forma FY2025 % • Good underlying southern H1-2026 H1-2025 adjustment* Pro forma change Africa performance resulted in an 8.4% increase in NEPS Weighted average number of shares (’m) 1 428 1 440 1 440 (0.8) • H1-2025 EPS/HEPS from Cents per share continui
Slide 21: Outlook
Outlook
Slide 22: FY2026 | Outlook statement
FY2026 | Outlook statement GROW DRIVE OPTIMISE • Greenfield: • Occupancies at 68%* • EBITDA margin improvement • 140-bed Life Paarl Valley construction • PPD growth: relatively flat* • R400m saving over 3 years: to continue • Revenue of c. 2.0%* • Asset optimisation process • Brownfield: • Specialis
Slide 23: Questions
Questions
Slide 24: Appendix
| Appendix
Slide 25: Debt
H1-2026 | Debt Balance at Maturing in Maturing in Maturing in Maturing in • The Group successfully raised R’m 31 Mar 2026 FY2026 FY2027 FY2028 FY2029 or later R1.5 billion debt through public auction at an average interest Bank debt and notes 4 023 (23) (1 225) (500) (2 275) rate of 7.6% Lease liabi
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