Green Cross Health Half Year 30 Sept 2017 Report Release

Half Year Report 2 017
www.greencrosshealth.co.nz

64
290
354
pharmacies
Green Cross Health
equity pharmacies
90
prescription
items dispensed
annually
MILLION
31.2
37
medical
centres
doctors
300
nurses
340
Occupational
health services
Green Cross Health
equity Medical Centres
31
220,200 patients
community health
Clinical staff including
qualified nurses,
occupational therapists
& physiotherapists
Supporting the
strategy of live well,
stay well, get well
for all New Zealanders
Specialist nursing
services through
Total Care Health
community
nurses
166
community health
clients
20,900
support workers
3,700
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.
As at 30 September 2017
GREEN CROSS HEALTH

HALF YEAR REPORT 2017
1
Business summary
02
Consolidated interim statement of comprehensive income
04
Consolidated interim statement of changes in equity
06
Consolidated interim statement of financial position
08
Consolidated interim statement of cash flows
10
Notes to the financial statements
13
Company directory
21
Contents

2
GREEN CROSS HEALTH
Business
summary
For the six months ended 30 September 2017
The Green Cross Health Group recorded a net profit after tax attributable to
our shareholders of $8.8m. This was an increase of 13.5% on a like for like
basis versus the $7.7m for the same prior period last year when excluding a
$2.8m one-of f fair value gain in that period.
Business Highlights
• The Group’s net cash inflow from operating activities was $17.3m
versus $6.8m for the same six-month period last year driven by
increased profit and improved working capital management
• Pharmacy revenues were $166.3m up $8.5m (5.4%) on the same
period last year
• Pharmacy operating profit before interest and tax was $13.75m up
$1.43m (11.6%)
• Medical patient numbers increased by 6.4% to 220,200 with
operating profit before interest and tax of $1.45m versus $1.40m
last year
• Two new Medical Centres joined the Green Cross Health Medical Division
• Community Health won 50% of the Nelson Marlborough DHB
home and community services contract that commenced in
September 2017
13.5
%
increase to underlying
shareholder earnings
11.6
%
increase in pharmacy
operating profit to $13.75m
• Community Health operating profit before interest and tax was
$1.3m up 11.2%
• Earnings per share increased 11.2% to 6.25 cents on underlying
earnings (excluding 2016 fair value gain)
Pharmacy Division
Pharmacy revenues of $166.3m, up 5.4% on the same period last year,
were driven by strong dispensary and franchise revenues while retail sales
remain consistent with the prior year. EBIT margin has increased from 7.8%
to 8.3% due to tight cost control, which together with an increase in sales,
has resulted in an increase in the Pharmacy division operating profit before
interest and tax from $12.32m to $13.75m (11.6%).
Medical Division
Revenue for the Medical division at $25m is up $0.2m on last year. Patient
numbers increased by 5.4% to 220,200 at the end of September 2017
which will contribute to future revenue growth.
Albany Medical joined the group in July 2017 adding 7,800 patients and
Quaymed Accident & Medical joined in October 2017 adding a further 6,750
patients. This brings the equity network to 33 sites. With the opening of

HALF YEAR REPORT 2017
3
The Doctors Quaymed Wynyard and the pending opening of a new site in
Huapai, The Doctors network continues to grow in line with the primary care
growth strategy.
Operational efficiency improvements saw medical centre operating earnings
increase 36% on the prior period. This was partially reinvested in people and
systems to position the division for growth, which saw net operating profit
before interest and tax of $1.45m up 3.6% on last year.
Community Health Division
The Community Health division continued to deliver revenue growth at
$62.9m up 14.2%. Client growth of 4.5% means the division now has
20,900 clients nationally, and this is the primary driver of the revenue
growth, reflecting contract wins and increases in ACC and Nursing
Services revenue.
Work continues bedding in Pay Equity along with other staff retention
strategies which has seen support worker staff turnover reduce from
29% to 21%.
Total Care Health has expanded its Nursing Services to the New
Plymouth and Hawkes Bay regions.
Net operating profit before interest and tax of $1.30m was up 11.2%
from $1.16m last year.
Future Focus
The group remains on track for continued growth and with
implementing the strategic direction we have outlined - to be a leading
primary health care organisation delivering sustainable care in our
communities. Priorities for the coming period include:
• Continue growth through acquisition with full year investment
projected to be in the range of $8-$10m. This includes further
medical acquisitions in key geographical areas, co-located with
pharmacies where feasible
• Working with our supply partners and members to strengthen our core
retail disciplines and compliance across our diverse pharmacy network
• Continue progress in providing improved patient access to health
care, embracing new models of care and digitally enabled customer
communications. These strategies are becoming well established
with initiatives such as:
• The Neighbourhood Healthcare Homes contract in our
Northland practices, where digital and phone triage and nurse
led services are creating more timely and appropriate patient
access to clinicians
• The rollout of a prescription reminder service in pharmacy and
medical
• Enhancements to the consumer offering including ecommerce
and the further development of the Living Rewards programme,
now with 1.4 million members, to increase our data driven
marketing capability
• The Community Health division maintaining its focus on
competing for government tendered services, increases in ACC
and Nursing Services and operational efficiency
Across the Green Cross Health Group, we recognise that whilst
the provision of health care can be augmented by technology, it
is our people who deliver it. We are proud that our Green Cross
Health Academy online learning platform, TeachMe, has been
recognised with several awards during this period, most recently at
the international Brandon Hall Group HCM Excellence Awards. Thank
you to all our staff for their ongoing commitment to providing the best
support, care and advice in almost every New Zealand community.
Dividend
The Directors have resolved to pay a fully imputed interim dividend
of 3.5 cents per share to shareholders on the register as at 5pm on
11 December 2017. The dividend will be paid on 22 December 2017.
The dividend reinvestment plan is available to shareholders.
For and on behalf of the Board
Peter Merton
Chairman
Business summary
6.4
%
growth in medical
centre patient
numbers to 220,200
11.2
%
increase in underlying
earnings per share to
6.25 cents

4
GREEN CROSS HEALTH
Consolidated
Interim statement of
comprehensive income
For the six months ended 30 September 2017
NoteSix months ended
30 Sep 2017
(Unaudited)
$’000
Six months ended
30 Sep 2016
(Unaudited)
$’000
Operating revenue
254,151 237,676
Operating expenditure 5
(234,765) (217,051)
Depreciation and amortisation
(3,349) (3,310)
Share of profit of equity accounted investees
457331

HALF YEAR REPORT 2017
5
Consolidated interim statement of comprehensive income
Six months ended
30 Sep 2017
(Unaudited)
$’000
Six months ended
30 Sep 2016
(Unaudited)
$’000
Operating profit before interest and tax
16,494 17,646
Net interest
(1,063)(958)
Profit before tax
15,431 16,688
Tax expense
(4,310)(3,874)
Profit and total comprehensive income for the period
11,121 12,814
Profit after tax and total comprehensive income for the period attributable to:
Shareholders of the Parent
8,768 10,490^
Non-controlling interest
2,353 2,324
Earnings per share:
Basic earnings per share (cents)
6.25 7.63
Diluted earnings per share (cents)
6.23 7.60
Net tangible liabilities per share (cents)
(8.20)(12.02)
Net assets per share (cents)
85.36 75.45
The consolidated interim financial statements should be read in conjunction with the accompanying notes
^ Includes fair value gain of $2.764m

6
GREEN CROSS HEALTH
Consolidated
Interim statement of
changes in equity
For the six months ended 30 September 2017
September 2017
NoteShare
capital
$’000
Retained
earnings
$’000
Non-
controlling
interest
$’000
Total
equity
$’000
As at 1 April 2017
83,887 23,488 4,855 112,230
Profit and total comprehensive income for the period
8,768 2,353 11,121
Transactions with owners, recorded directly in equity
Issue of shares
6 3,297 3,297
Dividends to shareholders
7 (4,883)(4,883)
Distributions to non-controlling interests
(1,251)(1,251)
Impact of other transactions with non-controlling interests
(106)(106)
Share scheme amortisation
11 11
As at 30 September 2017
87,195 27,267 5,957 120,419

HALF YEAR REPORT 2017
7
Consolidated interim statement of changes in equity
September 2016
NoteShare
capital
$’000
Retained
earnings
$’000
Non-
controlling
interest
$’000
Total
equity
$’000
As at 1 April 2016
76,577 13,835 3,728 94,140
Profit and total comprehensive income for the period
10,490 2,324 12,814
Transactions with owners, recorded directly in equity
Issue of shares
6 3,865 3,865
Dividends to shareholders
(4,788)(4,788)
Distributions to non-controlling interests
(1,435)(1,435)
Impact of other transactions with non-controlling interests
(253)(224)(477)
Share scheme amortisation
42 42
As at 30 September 2016
80,484 19,284 4,393104,161
The consolidated interim financial statements should be read in conjunction with the accompanying notes

8
GREEN CROSS HEALTH
Consolidated
Interim statement of
financial position
As at 30 September 2017
As at
30 Sep 2017
(Unaudited)
$’000
As at
31 Mar 2017
(Audited)
$’000
As at
30 Sep 2016
(Unaudited)
$’000
Current assets
Cash and cash equivalents
14,704 18,195 14,505
Trade and other receivables
36,97833,859 39,402
Inventories
35,316 33,713 37,366
Total current assets
86,998 85,767 91,273
Non-current assets
Property, plant and equipment
23,053 21,966 20,347
Intangible assets
124,157 124,381 114,489
Deferred tax asset
7,832 7,970 6,259
Equity accounted group investments
5,691 5,127 4,771
Total non-current assets
160,733 159,444 145,866
Total assets
247,731 245,211 237,139

HALF YEAR REPORT 2017
9
NoteAs at
30 Sep 2017
(Unaudited)
$’000
As at
31 Mar 2017
(Audited)
$’000
As at
30 Sep 2016
(Unaudited)
$’000
Current liabilities
Payables and accruals
72,936 62,410 65,713
Income taxes payable
836 3,872 289
Borrowings
6,337 28,586 25,294
Total current liabilities
80,10994,868 91,296
Non-current liabilities
Payables and accruals
1,120 1,162 1,272
Borrowings
46,083 36,951 40,410
Total non-current liabilities
47,203 38,113 41,682
Total liabilities
127,312 132,981 132,978
Net assets
120,419 112,230 104,161
Equity
Share capital
687,195 83,887 80,484
Retained earnings
27,267 23,488 19,284
Total equity attributable to shareholders of the Parent
114,462 107,375 99,768
Non-controlling interest
5,957 4,855 4,393
Total equity
120,419 112,230 104,161
The consolidated interim financial statements should be read in conjunction with the accompanying notes
Consolidated interim statement of financial position

10
GREEN CROSS HEALTH
Consolidated
Interim statement
of cash flows
For the six months ended 30 September 2017
NoteSix months ended
30 Sep 2017
(Unaudited)
$’000
Six months ended
30 Sep 2016
(Unaudited)
$’000
Cash flows from operating activities
Equity accounted investee dividend received
233 327
Receipts from customers
251,032 232,537
Payments to suppliers and employees
(225,677)(220,045)
Net interest paid
(1,063)(958)
Income taxes paid
(7,208)(5,034)
Net cash inflow from operating activities
8
17,317 6,827

HALF YEAR REPORT 2017
11
NoteSix months ended
30 Sep 2017
(Unaudited)
$’000
Six months ended
30 Sep 2016
(Unaudited)
$’000
Cash flows from investing activities
Purchases of property, plant, equipment and software intangibles
(4,514)(5,430)
Acquisition of interests in subsidiaries and associates
(365)(2,555)
Proceeds from sale of shares in subsidiary
25 -
Net cash outflow from investing activities
(4,854)(7,985)
Cash flows from financing activities
Proceeds from new borrowings
51,813 3,763
Repayment of borrowings
(64,930)(5,244)
Shares issued for cash
6- 149
Dividends paid - shareholders
(1,586)(1,472)
Net distributions to non-controlling interests
(1,251)(1,451)
Net cash outflow from financing activities
(15,954)(4,255)
Net decrease in cash and cash equivalents
(3,491)(5,413)
Cash acquired: business combinations
--
Add opening cash and cash equivalents
18,195 19,918
Closing cash and cash equivalents as per consolidated interim statement of financial position
14,704 14,505
Reconciliation of closing cash and cash equivalents to the balance sheet:
Cash and cash equivalents
14,704 14,505
Closing cash and cash equivalents
14,704 14,505
The consolidated interim financial statements should be read in conjunction with the accompanying notes
Consolidated interim statement of cash flows

12
GREEN CROSS HEALTH

HALF YEAR REPORT 2017
13
Notes to the
financial statements
For the six months ended 30 September 2017
1. Reporting entity
Green Cross Health Limited (the “Parent”) is a New Zealand company
registered under the Companies Act 1993 and listed on the NZX Main Board
(“NZX”). The Parent is a FMC Reporting Entity for the purposes of the Financial
Markets Conduct Act 2013.
The consolidated interim financial statements of Green Cross Health Limited
comprise the Parent, its subsidiaries, and its interest in associates and joint
ventures (together referred to as the “Group”).
2. Basis of preparation
of financial statements
(a) Statement of compliance
These consolidated interim financial statements have been prepared in
accordance with Generally Accepted Accounting Practice in New Zealand
(NZ GAAP), NZ IAS 34 Interim Financial Reporting, and other applicable
Financial Reporting Standards as appropriate for profit oriented entities. These
consolidated interim financial statements do not include all of the information
required for full annual financial statements and should be read in conjunction
with the consolidated financial statements of the Group as at and for the year
ended 31 March 2017.
The consolidated interim financial statements for the six months ended 30
September 2017 and the comparative information for the six months ended
30 September 2016 are unaudited.

14
GREEN CROSS HEALTH
2. Basis of preparation of financial
statements (continued)
(b) Basis of measurement
The financial statements of the Group are prepared under the
historical cost basis unless otherwise noted within the specific
accounting policies below.
(c) Changes in accounting policies
The accounting policies applied by the Group in these
consolidated interim financial statements are the same as
those applied by the Group in its consolidated financial
statements for the year ended 31 March 2017. The Group
has not applied any standards, amendments to standards
and interpretations that are not yet effective.
(d) Comparatives
Where appropriate comparative information has been
reclassified to conform to the current period’s presentation.
3. Accounting estimates
and judgments
In authorising the consolidated interim financial statements for the six
months ended 30 September 2017, the Directors have ensured that the
specific accounting policies necessary for the proper understanding of the
financial statements have been disclosed, and that all accounting policies
adopted are appropriate for the Group’s circumstances and have been
consistently applied throughout the period for all Group entities for the
purposes of preparing the consolidated interim financial statements.
Inherent in the application of certain accounting policies, judgments and
estimates are required. The Directors note that the actual results may differ
from the judgments and estimates made.

HALF YEAR REPORT 2017
15
4. Segment reporting
The Group has three reportable segments: pharmacy services, medical
services and community health.
The Group’s main operations are in the pharmacy industry providing
pharmacy services through consolidated stores, equity accounted
investments and franchise stores. The medical services segment includes
fully owned and equity accounted medical centres, and support services
provided to these medical centres, as well as medical centres outside the
Group. The community health services segment provide services direct to
the community to support independent living.
Notes to the financial statements

16
GREEN CROSS HEALTH
4. Segment reporting (continued)
September 2017
Pharmacy
services
$’000
Medical
services
$’000
Community
Health
$’000
Other
1

$’000
Total
$’000
Total revenue
166,306 24,951 62,894 - 254,151
Cost of products sold
(95,839)- - - (95,839)
Employee benefit expense
(30,709)(18,306)(58,134)- (107,149)
Lease expense
(8,218)(1,438)(564)- (10,221)
Other expenses
(15,381)(3,795)(2,380)- (21,556)
Depreciation and amortisation
(2,546)(282)(522)- (3,349)
Share of profit of equity accounted investees
135 322 - - 457
Operating profit before interest and tax
13,748 1,452 1,295 - 16,494
Net interest expense / (expense)
(1,063)
Profit before tax
15,431
Tax expense
(4,310)
Profit after tax
11,121
Segment assets
184,912 34,803 40,528 (12,511)247,731
Segment liabilities
96,368 20,892 22,564 (12,511)127,312

HALF YEAR REPORT 2017
17
4. Segment reporting (continued)
September 2016
Pharmacy
services
$’000
Medical
services
$’000
Community
Health
$’000
Other
1

$’000
Total
$’000
Total revenue
157,840 24,758 55,078 - 237,676
Cost of products sold
(90,743)- - - (90,743)
Employee benefit expense
(28,796)(18,605)(50,712)- (98,113)
Lease expense
(7,876)(1,446)(579)- (9,901)
Other expenses
(15,514)(3,287)(2,257)- (21,058)
Gain on settlement of vendor put option
-- - 2,7642,764
Depreciation and amortisation
(2,646)(300)(364)- (3,310)
Share of profit of equity accounted investees
50 281 - - 331
Operating profit before interest and tax
12,315 1,401 1,166 2,764 17,646
Net interest expense
(958)
Profit before tax
16,688
Tax expense
(3,874)
Profit after tax
12,814
Segment assets
197,602 31,222 30,551 (22,236)237,139
Segment liabilities
105,343 22,582 27,289 (22,236)132,978
1.
Other includes intersegment eliminations and one off items
Notes to the financial statements

18

HALF YEAR REPORT 2017
19
5. Operating expenses
As at
30 Sep 2017
(Unaudited)
$’000
As at
30 Sep 2016
(Unaudited)
$’000
Operating expenses
Cost of products sold
95,839 90,743
Employee benefit expense
107,149 98,113
Lease expense
10,221 9,901
Gain on settlement of vendor put option
- (2,764)
Other expenses
21,556 21,058
234,765 217,051
6. Shares on issue
As at
30 Sep 2017
(Unaudited)
’000
As at
31 Mar 2017
(Audited)
’000
As at
30 Sep 2016
(Unaudited)
’000
Shares authorised and on issue
Opening number of shares
139,835 137,284 137,284
Shares issued - fully paid
1,578 2,701 1,384
Shares cancelled - partly paid
- (150)(150)
Shares issued - partly paid
- - -
141,413 139,835 138,518
Shares held as treasury stock
(333)(333)(467)
Closing number of shares
141,080 139,502 138,051
Notes to the financial statements

20
GREEN CROSS HEALTH
7. Distribution to owners
On 23 June 2017 Green Cross Health Limited paid a final dividend for the March 2017 year of 3.5
cents per qualifying ordinary share to shareholders, which was fully imputed to 28%.
8. Operating cash flows reconciliation
Six months
ended
30 Sep 2017
(Unaudited)
$’000
Six months
ended
30 Sep 2016
(Unaudited)
$’000
Profit after tax for the period
11,121 12,814
Add/(deduct) non-cash items:
Depreciation & asset write-off
3,349 3,390
Gain on settlement of vendor put option
-(2,764)
Other non-cash items
28 (63)
Add/(deduct) changes in working capital items:
Receivables and accruals
(3,116)(5,139)
Inventory
(1,603)(6,013)
Payables and accruals
7,538 4,602
Net cash inflow from operating activities
17,317 6,827
9. Subsequent events
On 27 November 2017 Green Cross Health Limited declared dividends of 3.5 cents per qualifying
ordinary share, which will be fully imputed to 28%. No adjustments are required to these
consolidated interim financial statements in respect to this event.

HALF YEAR REPORT 2017
21
Registered office
Green Cross Health Limited
Ground Floor, Building B
602 Great South Road
Ellerslie, Auckland 1051
Telephone: +64 9 571 9080
Board
P M Merton, Chairman
J A Bagnall, Non-Executive Director
J B Bolland, Non-Executive Director
P J Williams, Non-Executive Director
A W Edwards, Independent Director
M M Millard, Independent Director
K A Orr, Independent Director
C M Steele, Independent Director
Officers
SJ Browning COO/CFO
Auditor
KPMG
KPMG Centre
18 Viaduct Harbour Avenue
Auckland
Websites
www.greencrosshealth.co.nz
Company
directory
As at 30 September 2017
Bankers
Bank of New Zealand
80 Queen Street
Auckland 1010
Share registrar
Computershare Investor
Services Limited
Private Bag 92119
Level 2
159 Hurstmere Road
Takapuna
Auckland 0622
Managing your
shareholding online:
To change your address, update
your payment instructions and
to view your registered details
including transactions, please visit;
www.investorcentre.com/nz
General enquiries can be
directed to;
enquiry@computershare.co.nz
Private Bag 92119
Auckland 1142
Telephone: + 64 9 488 8777
Facsimile: + 64 9 488 8787
Please assist our registrar by
quoting your CSN or
shareholder number

Green Cross Health Ltd
Ground Floor, Building B
602 Great South Road
Ellerslie, Auckland 1051
02609
Private Bag 11906
Ellerslie, Auckland 1542
www.greencrosshealth.co.nz
Because of
what we do,
everyone is
healthier