Interim financial results For the period ended 31 December 2019 - PowerPoint PPT Presentation

Interim financial results For the period ended 31 December 2019

Page 2

* excluding IFRS 16 impact Group Total Australia South Africa 14% 2% 24% Number of cases 2% 22% 9% Revenue 28% >100% 8% 40% EBITDA 40% 60% 10% Profit /Loss after taxation Page 3

* including IFRS 16 impact Group Total Australia South Africa 24% 14% 2% Number of cases 2% 22% 9% Revenue 72% >100% 8% >100% EBITDA Profit / Loss 49% 23% 35% after taxation Page 4

Exchange rate fluctuations Exchange rate : ZAR to AUD 12.00 11.50 11.00 Exchange rate 10.50 10.00 9.50 9.00 ` 8.50 8.00 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Quarter Average rate Closing rate Budget rate As at 31 December 2019, the closing ZAR strengthened against the AUD closing rate compared to Q2 2020. The average ZAR rate for the period under review (Q2 2020) strengthened against the AUD compared to Q2 2019. Due to the continuous volatility of the currency markets, it is impossible to forecast the exchange rates. Page 5

Number of cases per quarter Number of cases per quarter Number of cases Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Quarter Presmed Australia Advanced Health South Africa Total Cases AVL The increase in patient numbers compared to the first half of 2019 is 2% and 24% for PMA and AHSA respectively. Page 6

Consolidated statement of financial position as at 31 December 2019 Right of use of asset Dec'19 Dec'19 * Jun'19 Jun'18 Unaudited Unaudited Audited Audited Impact of adoption of IFRS 16 on the statement of R'000 R'000 R'000 R'000 financial position as at 31 December 2019 Assets Non-current Assets 922,721 427,051 424,655 418,273 R’000 Property, plant and equipment 254,864 254,864 259,599 282,744 Assets Right of use of asset 497,502 - - - Right of use of asset – cost 515 468 Goodwill 29,544 29,544 29,669 30,185 Right of use of asset – acc depreciation (17 966) Intangible assets 29,414 29,414 30,777 33,520 Operating lease asset - 476 476 478 Total assets 497 502 Other financial assets 28,958 28,958 28,285 10,586 Deferred taxation 82,439 83,795 75,849 60,760 Right of use of asset was measured at the carrying value Current Assets 93,230 96,912 106,544 96,709 Inventories 15,424 15,424 14,442 13,958 that would have resulted from IFRS 16 being applied, Trade and other receivables 24,971 24,971 37,763 33,393 from the date of initial application. Other financial assets 5,596 5,596 5,268 2,298 Operating lease asset - 3,682 3,682 5,634 Current tax receivable 945 945 144 107 Cash and cash equivalents 46,294 46,294 45,245 41,319 Total Assets 1,015,951 523,963 531,199 514,982 *IFRS 16 impact excluded Page 7

Consolidated statement of financial position as at 31 December 2019 Impact of adoption of IFRS 16 on the statement of Dec'19 Dec'19 * Jun'19 Jun'18 financial position as at 31 December 2019 Unaudited Unaudited Audited Audited R'000 R'000 R'000 R'000 Equity and Liabilities Capital and reserves 140,810 137,254 145,818 193,831 Liabilities Stated capital 221,956 221,956 221,956 221,956 Lease liability - NCL (previously treated as 506 128 Foreign currency translation reserve 31,397 31,330 32,108 34,363 Retained earnings (113,826) (117,315) (109,529) (64,368) operating lease – IAS 17) Share based payment reserve 1,283 1,283 1,283 1,880 Lease liability - CL (previously treated as 10 368 Non-controlling interest 56,533 56,533 64,142 53,459 Total Equity 197,343 193,787 209,960 247,290 operating lease – IAS 17) Non-current Liabilities 719,303 238,706 216,531 170,084 Lease liability - NCL (previously treated as Lease liability - IFRS 16 506,128 - - - Other financial liabilities 201,326 201,326 177,465 127,495 finance lease – IAS 17) 10 703 Lease obligations 10,703 10,703 12,428 19,497 Lease liability - CL (previously treated as Operating lease liability - 25,531 25,531 22,101 Provisions 1,146 1,146 1,107 991 finance lease – IAS 17) 5 394 Total lease liabilities 532 593 Current Liabilities 99,305 91,470 104,708 97,608 Lease liability - IFRS 16 10,368 - - Other financial liabilities 23,665 23,665 22,706 18,239 Lease obligations 5,394 5,394 8,422 18,718 Lease liabilities were measured at the present value of the Trade and other payables 42,328 42,328 48,941 45,919 Provisions 7,908 7,908 7,661 7,366 remaining lease payments discounted at the applicable Current tax liability 3,317 3,317 3,167 5,000 borrowing rates in the different geographical locations. Operating lease liability - 2,533 2,533 2,366 Bank Overdraft 6,325 6,325 11,278 - The incremental borrowing rate is the rate of interest that Total Equity and Liabilities 1,015,951 523,963 531,199 514,982 a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain Notes to Statement of Financial Position Total number of shares in issue 287,988 287,988 287,988 221 615 an asset of a similar value to the right of use of asset in a Net asset value per share (cents) 68.52 67.29 72.91 83.65 similar economic environment. Net tangible asset value per share (cents) 48.05 46.82 51.92 58.81 *IFRS 16 impact excluded Page 8

Consolidated statement of comprehensive income for the period ended 31 December 2019 The increase in revenue is due to an increase Dec'19 Dec'19 * Dec'18 Jun'19 Dec'17 6 months 6 months 6 months Full year 6 months in patient numbers by 14%. Revenue Unaudited Unaudited Unaudited Unaudited Audited increased by 9% from R244.1 million to R'000 Var % R'000 Var % R'000 Var % R'000 R'000 R265.5 million in the period under review. Revenue 265,466 9 265,466 9 244,079 33 199,463 481,677 Cost of sales (121,004) 6 (121,004) 6 (114,055) 20 (100,750) (228,691) Gross profit 144,462 11 144,462 11 130,024 46 98,713 252,986 Gross profit percentage improved by 2% Gross profit % 54% 2 54% 2 53% 10 49% 53% from 53% to 54%. Other income 2,072 (2) 2,072 (2) 2,121 >100 902 4,262 Other operating expenses (108,349) (15) (131,649) 3 (127,561) (0) (108,457) (239,654) EBITDA 38,185 >100 14,885 >100 4,584 <100 -8,842 17,594 Positive EBITDA of R38.2 million for the six Investment income 411 88 411 88 219 44 286 901 months period under review. A marked Finance costs (35,821) >100 (11,612) 28 (9,048) >100 (15,939) (16,370) Depreciation and amortisation (34,978) >100 (16,824) (2) (17,131) >100 (6,865) (34,477) improvement from both the comparative Loss before taxation from continuing operations (32,203) 51 (13,140) (39) (21,376) 3 (31,360) (32,352) period and the last published results due to Taxation 9,133 55 3,795 (36) 5,899 5 8,716 7,823 Loss after taxation from continuing operations (23,070) 49 (9,345) (40) (15,477) 2 (22,644) (24,529) the adoption of IFRS 16 and better cost Loss from discontinued operations - - - - - - - -13,452 controls. Impact of IFRS 16 amounted to Loss for the period/year (23,070) 49 (9,345) (40) (15,477) 2 (22,644) (37,981) R23.3 million. Excluding IFRS 16 impact, Other comprehensive expense for the (1,036) >100 (969) >100 (134) (62) (2,714) (3,600) Total comprehensive loss for the period/year (24,106) 54 (10,314) (34) (15,611) (5) (25,358) (41,581) EBITDA for the Group improved to Loss attributable to: R14.9 million (2018: R4.6 million). Owners of the parent: continuing operations (21,511) 20 (10,808) (40) (17,888) (8) (23,332) (31,211) Owners of the parent: discontinuing operations - - - - - - - (13,452) Non-controlling interest: continuing operations (1,559) (1) 1,463 (39) 2,411 <100 688 6,682 The Group incurred a loss amounting to (23,070) 49 (9,345) (40) (15,477) 2 (22,644) (37,981) R23.1 million (2018: R15.5 million) for the Total comprehensive loss attributable to: 6 months under review. The adoption of Owners of the parent (22,222) 24 (11,452) (36) (17,970) (10) (24,696) (46,918) Non-controlling interest (1,884) <100 1,138 (52) 2,359 >100 (662) 5,337 IFRS 16 had a negative effect on the results (24,106) 54 (10,314) (34) (15,611) (5) (25,358) (41,581) reported for the 6 months period. Impact of *IFRS 16 impact excluded IFRS 16 amounted to R13.8 million. Excluding IFRS 16 impact, the loss incurred Loss per share by the Group amounted to R9.3 million Basic (cents per share) - continuing operations (7.47) 20 (3.75) (40) (6.21) (13) (8.55) (10.84) Basic (cents per share) - discontinued operations - - - - - - - (4.67) which is a 40% improvement in losses from Diluted (cents per share) - continuing operations (7.47) 20 (3.75) (40) (6.21) (8.55) (10.84) (13) the comparative period. Diluted (cents per share) - discontinued operations - - - - - - - (4.67) Page 9