Green Cross Health Ltd · NZX:GXH
Green Cross Health — FY2024 Earnings Presentation
24 slides from Green Cross Health's earnings presentation, May 30, 2024
Slide 1: Annual Results for the year to 31 March 2024
GREEN cP CROSS HEALTH Annual Results for the year to 31 March 2024 Unichem® Life pilbrop | CAL, GREEN <> thedoctors House U HEALTH
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: GXH Annual Result - Financial Overview
GXH Annual Result - Financial Overview $$$$ Group Operating Profit Net Profit After Tax* Revenue* (attributable to shareholders) (EBIT)* $503.9m $31.8m $12.0m 2% increase vs FY23 7% decrease vs FY23 20% decrease vs FY23 *continuing operations *continuing operations *continuing operations Pharmacy Me
Slide 4: Milestones
Milestones Enrolled Patients Acquired Woodham Road Medical and Free Co-payment Acquisitions Papakura East After years of sector Acquisition Invested in Medical; the Medical lobbying, funders Division now Acquired Richmond Tarawera Medical introduce free exceeds 400,000 Road Medical Centre and Onerah
Slide 5: Pharmacy Division
Pharmacy Division New Zealand’s largest network of health retailers: supporting easy access to quality health care
Slide 6: Pharmacy Performance
Pharmacy Performance Pharmacy Operating Revenue ($m) 367.1 • Revenue up 1% to $363.6m 360.4 363.6 316.8 • Operating Profit down $1.8m to $19.3m FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 due to labour cost pressures and inflation impacting margins Pharmacy Operating Profit ($m) • Initial scripts items
Slide 7: Continued Growth in Vaccination Income
Continued Growth in Vaccination Income Total Vaccinations Total - Green Vaccinations Cross - Green Health Cross Network (‘000) Health Network (‘000) 324 294 FY23 FY23 FY24 FY24 Following record numbers last year, flu vaccinations continued to grow (5% increase year-on-year), driven by investment in
Slide 8: Living Rewards Programme
Living Rewards Programme 2.03m Living Rewards Members Spend More Continued ContinuedGrowth GrowthininLiving LivingRewards RewardsMembers Members $60 (millions) Members (millions) $ spend per transaction $50 $40 $30 $20 1.95 2.03 $10 1.81 1.89 $0 Unichem Life Total Non-members Members FY21 FY21 FY22
Slide 9: Investment in Stores and People
Investment in Stores and People Stores Six pharmacy refurbishments completed as part of continued investment in pharmacy portfolio Eight new robots purchased to improve efficiencies and customer experience by automating dispensing activities People Focus on people development with over 37,000 traini
Slide 10: Green Cross Health Pharmacy Network
Green Cross Health Pharmacy Network Pharmacies by Region • New Zealand’s largest network of health retailers 80 70 with 330 stores nationwide 60 50 40 Life 30 • Extended equity store footprint to Northland 20 Unichem through investment in Unichem Onerahi 10 0 Equity Pharmacy Locations Pharmacy Count
Slide 11: Pharmacy Future Focus
Pharmacy Future Focus Brand & Retail Omni-channel Network scale & Cost focus customer disciplines experience leadership Differentiated brands Professional instore Care & advice Leveraging our trusted Workforce and products & experience & margin accessible to the brands & advocating for productivity
Slide 12: Medical Division
Medical Medical Division Division Growth, leadership and sustainable models of care Growth, leadership and sustainable models of care
Slide 13: Medical Performance
Medical Performance Medical Operating Revenue ($m) 133.2 140.3 Revenue up 5% to $140.3m 111.0 82.2 Operating Profit down $1.2m to $15.0m, with labour cost pressures FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 and reduced COVID-19 services impacting margin Medical Operating Profit ($m) 423,000 enrolled p
Slide 14: Focus on Operational Improvement
Focus on Operational Improvement Operational Efficiency 80% 16% 70% 14% • EBIT margin in line with pre-COVID 60% 12% performance 50% 10% • Inflationary labour cost pressures continued resulting in cost at 75% of revenue, with EBIT % Cost % 40% 8% restructures completed in the second half beginning t
Slide 15: Growth through Acquisitions
Growth through Acquisitions Medical Acquisitions • Continued acquisition activity with investment in seven centres in year, to close with 66 medical centres 9 8 7 • The Doctors has New Zealand’s 3 largest general practice enrolled patient base FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 • One additional
Slide 16: Investment in Practice Portfolio
Investment in Practice Portfolio Centre Refurbishments 3 3 3 1 FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 • Three significant refurbishments completed (Ti Rakau, Hastings, Te Whare Hapara) to enhance patient environment and the delivery of patient care • Rebrand programme continued with 44 centres now
Slide 17: Medical Future Focus
Medical Future Focus Patient & Brand Scale Technology Operations Cost & improvement margin High quality patient Targeted centre Utilising data and Continuous Workforce care acquisitions systems & omni- improvement & clinical productivity & channel offering development margin management GXH Annual Re
Slide 18: Group Financial Result
Group Financial Result 12 months ended 31 March 2024 GXH Annual Results Presentation 30 May 2024 Pg 18
Slide 19: Group Revenue and Operating Profit
Group Revenue and Operating Profit GXH GXHOperating OperatingRevenue RevenueFrom FromContinuing ContinuingOperations ($m) GXH Operating Profit From Continuing Operations ($m) Operations ($m) 478 494 504 399 48.5 31.4 34.3 31.8 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 • Revenue of $504m, up 2% • Opera
Slide 20: Group NPAT, EPS & Dividend
Group NPAT, EPS & Dividend GXH NPAT Attributable to Shareholders* ($m) Dividends Per Share (cps) 20.2 34.0 13.4 15.0 12.0 6.5 7.0 0.0 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Based on dividends declared during the financial year GXH NPAT Attributable to Shareholders* (cps) • EPS at 8.4 cps* • Special
Slide 21: Working Capital Management Disciplines Supporting Further Acquisition Activity
Working Capital Management Disciplines Supporting Further Acquisition Activity Gearing Ratio (debt / debt + equity) GXH Operating Cash Flow ($m) 17.3% 70.9 65.8 14.0% 12.3% 45.9 46.0 10.4% FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 FY21 FY21 FY22 FY22 FY23 FY23 FY24 FY24 • Gearing ratio of 17.3% in FY2
Slide 22: Climate Related Disclosures
Climate Related Disclosures Aotearoa New Zealand Climate Standards were published in December 2022 As a climate-reporting entity under the Financial Markets Conduct Act 2013, Green Cross Health is required to report against the new standards for the year ended 31 March 2024 The company will include
Slide 23: About Green Cross Health
About Green Cross Health GXH Annual Results Presentation 30 May 2024 Pg 23
Slide 24: Who We Are
Who We Are 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.