Green Cross Health Ltd · NZX:GXH
Green Cross Health — Shareholder Meeting (July 2023)
29 slides from Green Cross Health's shareholder meeting presentation, Jul 31, 2023
Slide 1: Annual Shareholders' Meeting 31 July 2023
GREEN CROSS HEALTH Annual Shareholders’ Meeting 31 July 2023 Unichem? Life® @pilorop GREEN CROSS <> thedoctors House HEALTH ¥ , Fa i tangata responsi. 3 ‘ OK temehi compass) . dleticient, . RARE >
Slide 2: Kim Ellis, Chair
Kim Ellis Chair GXH Annual Shareholders’ Presentation 31 July 2023 Pg 2
Slide 3: Agenda
Agenda • Chair’s address • Group CEO’s address • Voting on resolutions • General Q&A 3 GXH Annual Shareholders’ Presentation 31 July 2023 Pg 3
Slide 4: Business Update
Business Update NPAT/EPS Community Health sale Balance sheet Dividend – special & ordinary Outlook GXH Annual Shareholders’ Presentation 31 July 2023 Pg 4
Slide 5: Rachael Newfield, Group CEO
Rachael Newfield Group CEO GXH Annual Shareholders’ Presentation 31 July 2023 Pg 5
Slide 6: Operational Highlights
Operational Highlights • $15.5m increase in Group Revenue year-on-year Group • 89% increase in reported Net Profit After Tax attributable to shareholders1 Highlights • Divestment of Community Health division on 28 February 2023, gain of $21.8m • GXH recognised as a Top 10 most desirable place to wor
Slide 7: GXH Annual Result - Financial Overview
GXH Annual Result - Financial Overview Group Performance Divisional Performance Group Revenue (continuing operations) Pharmacy Operating Profit $493.6m $21.1m 3% increase vs FY22 41% decrease vs FY22 Operating Profit/EBIT (continuing operations) Medical Operating Profit $34.3m $16.2m 29% decrease vs
Slide 8: Group Revenue and Operating Profit
Group Revenue and Operating Profit GXH Operating Revenue From Continuing Operations GXH Operating Profit From Continuing Operations ($m) ($m) 48.5 478 494 34.3 413 399 29.8 31.4 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 • Revenue of $494m, up 3% • Operating Profit from continuing operations of • FY23
Slide 9: Group NPAT, EPS & Dividend
Group NPAT, EPS & Dividend GXH Net Profit After Tax Attributable to Shareholders Dividends Per Share ($m) (cps) 45.2 6.5 7.0 23.9 16.8 3.5 13.5 0.0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Based on dividends declared during the financial year GXH Net Profit After Tax Attributable to Shareholders (cps
Slide 10: Working Capital Management Disciplines Supporting Further Acquisition Activity
Working Capital Management Disciplines Supporting Further Acquisition Activity Gearing Ratio (debt / debt + equity attributable to GXH Operating Cash Flow ($m) shareholders) 29.5% 70.9 65.8 54.3 45.9 14.0% 13.3% 11.0% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 • Gearing ratio of 11.0% in FY23 • Operati
Slide 11: Divisional Performance & Plans
Divisional Performance & Plans GXH Annual Shareholders’ Presentation 31 July 2023 Pg 11
Slide 12: Divisional Snapshot
Divisional Snapshot GXHAs at May Annual 2023 Shareholders’ Presentation 31 July 2023 Pg 12
Slide 13: Pharmacy Performance
Pharmacy Performance Pharmacy Operating Revenue ($m) 367.1 360.4 • Revenue of $360.4m 336.4 316.8 • Operating Profit at $21.1m FY20 FY21 FY22 FY23 • Following record profit in FY22 driven by COVID-19 vaccination activity, Pharmacy Operating Profit ($m) Operating Profit down 41% with shift in revenue
Slide 14: Continued Growth in Living Rewards Members
Living Rewards Members Spend 65% More Than Non-members Continued Growth in Living Rewards Members 1,952,661 Living 2.00 Rewards Members 1.95 1.90 Million members 1.85 3.5% growth in Living Rewards members to 1.95m 1.80 1.75 Successful new member acquisition campaigns 1.70 1.65 added 66,583 new m
Slide 15: Growth in Differentiated Products and Vaccinations
Growth in Differentiated Products and Vaccinations Growth in Differentiated Brand Sales Record Year for Flu Vaccinations 25% 300 20% 250 % of retail sales 15% 200 175 10% Thousands 150 5% 0% 100 91 91 FY20 FY21 FY22 FY23 74 50 110 Differentiation strategy through supplier partnerships 40 49 57 con
Slide 16: Pharmacy Will Win By Focusing on the Customer
Pharmacy Will Win By Focusing on the Customer Workforce productivity Differentiated brand and & occupancy cost products, recognising control Brand & customer loyalty Cost focus customer Leveraging our trusted Professional instore brands, advocating for equity Network scale & Retail experience, margi
Slide 17: Medical Performance
Medical Performance Medical Operating Revenue ($m) 133.2 111.0 Revenue up 20% to $133.2m, driven 76.5 82.2 by COVID-19 activity in the first half of the year, along with acquisitions Operating Profit up 1% to $16.2m, FY20 FY21 FY22 FY23 with labour cost pressures and reduced COVID-19 swabbing Medica
Slide 18: Growing The Doctors Presence & Brand
Growing The Doctors Presence & Brand Medical Acquisitions 9 8 3 1 FY20 FY21 FY22 FY23 Enrolled Patients 386 329 267 285 FY20 FY21 FY22 FY23 GXH Annual Shareholders’ Presentation 31 July 2023 Pg 18
Slide 19: Operational Improvement Initiatives Continue
Operational Improvement Initiatives Continue Double Digit EBIT Margin Through Operational Efficiency and Cost Management 80% 16% Following record-high COVID-19 earnings in 70% 14% FY22, EBIT margin came in at 12% for 60% 12% FY23, despite inflationary labour pressures Other costs reduced to ~17%
Slide 20: Medical Strategy of Organic Growth & Acquisitions
Medical Strategy of Organic Growth & Acquisitions Workforce productivity High quality patient care & margin management Cost & margin Patient & focus Brand Continuous improvement Targeted centre focus, clinical development acquisitions Operational Scale improvement Technology Utilising data and syste
Slide 21: Outlook
Outlook • Returning to more ‘normal’ trading conditions • Workforce shortages and inflationary pressures • Organic and acquisitive growth GXH Annual Shareholders’ Presentation 31 July 2023 Pg 21
Slide 22: Q&A
Q&A GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 22
Slide 23: Resolutions & Voting
Resolutions & Voting GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 23
Slide 24: Resolutions
Resolutions • Resolution 1: Re-election of Andrew Bagnall • Resolution 2: Re-election of Carolyn Steele • Resolution 3: Remuneration of the Auditor GXH Annual Shareholders’ Meeting Presentation 31 July 2023 Pg 24
Slide 25: Resolution 1 – Re-election of Andrew Bagnall
Resolution 1 – Re-election of Andrew Bagnall Andrew Bagnall to be re-elected as Director of the Company GXH Annual Shareholders’ Meeting Presentation 31 July 2023 Pg 25
Slide 26: Resolution 2 – Re-election of Carolyn Steele
Resolution 2 – Re-election of Carolyn Steele Carolyn Steele to be re-elected as Director of the Company GXH Annual Shareholders’ Meeting Presentation 31 July 2023 Pg 26
Slide 27: Resolution 3 – Remuneration of the Auditor
Resolution 3 – Remuneration of the Auditor To authorise the Directors to fix the remuneration of the Auditor for the ensuing year GXH Annual Shareholders’ Meeting Presentation 31 July 2023 Pg 27
Slide 28: Q&A
Q&A GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 28
Slide 29: 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