Green Cross Health Ltd · NZX:GXH
Green Cross Health — Shareholder Meeting (July 2022)
32 slides from Green Cross Health's shareholder meeting presentation, Jul 25, 2022
Slide 1: Annual Shareholders' Meeting 25 July 2022
GREEN CROSS HEALTH Annual Shareholders’ Meeting 25 July 2022 ° Cy - &S g . A, @ Total Care GREEN Unichem® § £2 PillDrop <> thedoctors House @access | CROSS Pharmacy
Slide 2: Kim Ellis, Chair
Kim Ellis Chair GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 2
Slide 3: Agenda
Agenda • Chair’s address • Group CEO’s address • Voting on Resolutions • General Q&A GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 3
Slide 4: Business Update, Earnings, Balance sheet, Dividend, Director appointment
Business Update Earnings Balance sheet Dividend Director appointment GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 4
Slide 5: Rachael Newfield, Group CEO
Rachael Newfield Group CEO GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 5
Slide 6: 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 7: Supporting Communities Through COVID-19
Supporting Communities Through COVID-19 GXH pharmacies represented 51% of all New Zealand pharmacies vaccinating of eligible GXH medical of eligible medical centres vaccinating centres swabbing GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 7
Slide 8: GXH Annual Result Overview
GXH Annual Result 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 $35.9m $16.0m $
Slide 9: 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 $54.1m, up 54% • FY22 revenue supported by COVID-19 activity • In FY22, all d
Slide 10: Group NPAT, EPS & Dividend
Group NPAT, EPS & Dividend GXH Net Profit After Tax Attributable to Shareholders Dividends Per Share ($m) 24.6 7.0 6.5 16.1 16.8 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 11: Strong Working Capital Management and Cash Flow
Strong Working Capital Management and Cash Flow 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 • Gearing ratio of 12% in FY22 Enabling investment ($24.9m) in: • Un
Slide 12: Divisional Plans
Divisional Plans GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 12
Slide 13: Divisional Snapshot
Divisional Snapshot As at 31 March 2022 GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 13
Slide 14: Pharmacy Performance
Pharmacy Performance Pharmacy Operating Revenue ($m) 367.1 • Revenue up 16% to $367.1m 340.2 336.4 • Operating Profit up 49% to $35.9m 316.8 • The rise in Pharmacy Revenue and Operating Profit was primarily due to further growth in dispensary activity and revenue from COVID-19 2019 2020 2021 2022 va
Slide 15: Increased our Points of Difference
Increased our Points of Difference 1,886,078 Living Rewards members Continued Growth in Living Rewards Members Growth in Differentiated Brands 2.0 25% 1.9 Living Rewards members (m) 20% 1.8 % of retail sales 15% 1.7 10% 1.6 5% 1.5 1.4 0% F19 F20 F21 F22 FY19 FY20 FY21 FY22 GXH Annual Shareholders’ M
Slide 16: Pharmacy Will Win By Focusing on the Customer
Pharmacy Will Win By Focusing on the Customer Pharmacy Strategy Differentiated brand and products, recognising Brand & customer customer loyalty Retail disciplines Professional instore experience, margin management Omni-channel Care & advice accessible to the customer in multiple experience channels
Slide 17: Medical Performance
Medical Performance Medical Operating Revenue ($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 $16.0m, driven by 2019 2020 2021 2022 COVID-19 services, procurement benefits, cost mana
Slide 18: Driven Operational Improvement and Acquisitions
Driven Operational Improvement and Acquisitions Increased Efficiency Through Operational Medical Acquisitions* Efficiencies and Systematic Triaging 9 80% 16% 70% 14% 4 3 60% 12% 1 50% 10% FY19 FY20 FY21 FY22 EBIT margin % % of revenue * includes greenfield sites, excludes shareholding changes 40% 8%
Slide 19: Medical Focused on Organic Growth and Acquisitions
Medical Focused on Organic Growth and Acquisitions Medical Strategy Patient & brand High quality patient care Scale Targeted centre acquisitions Technology Utilising data and systems, omni-channel offering Operational Continuous improvement focus, clinical development improvement Cost and margin Wor
Slide 20: Community Health Performance
Community Health Performance Community Health Operating Revenue ($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 21: 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% 3% EBIT margin % 3.7 % of revenue 4.0 Revenue $m 150 94% EBIT $m 93.8% 2% 3.0 100 92.9% 93% 2.0 92.7% 1%
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: 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 Shareho
Slide 24: Q&A
Q&A GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 24
Slide 25: Resolutions & Voting
Resolutions & Voting GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 25
Slide 26: Resolutions
Resolutions • Resolution 1: Election of Craig Brockliss • Resolution 2: Re-election of John Bolland • Resolution 3: Re-election of Kim Ellis • Resolution 4: Remuneration of the Auditor GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 26
Slide 27: Resolution – Election of Craig Brockliss
Resolution 1 – Election of Craig Brockliss Craig Brockliss to be elected as Director of the Company GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 27
Slide 28: Resolution – Re-election of John Bolland
Resolution 2 – Re-election of John Bolland John Bolland to be re-elected as Director of the Company GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 28
Slide 29: Resolution – Re-election of Kim Ellis
Resolution 3 – Re-election of Kim Ellis Kim Ellis to be re-elected as Director of the Company GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 29
Slide 30: Resolution – Remuneration of the Auditor
Resolution 4 – Remuneration of the Auditor To authorise the Directors to fix the remuneration of the Auditor for the ensuing year GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 30
Slide 31: Q&A
Q&A GXH Annual Shareholders’ Meeting Presentation 25 July 2022 Pg 31
Slide 32: 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