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Summarised consolidated results for the year ended 30 September 2018, and cash dividend declaration
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
Registration number: 2003/002733/06
Income tax number: 9387/307/15/1
ISIN: ZAE000145892
Share code: LHC
Summarised consolidated results for the year ended 30 September 2018,
and cash dividend declaration
Highlights
Revenue
+12.9%
to R23.5 billion
Cash generated from operations
+18.0%
to R5.5 billion
Normalised EBITDA
+10.7%
to R5.5 billion
Normalised earnings per share
+17.4%
to 110.2 cents
Headline earnings per share
+40.6%
to 108.8 cents
Final dividend of 50 cents per share
+11.1%
Summarised consolidated statement of profit or loss and other comprehensive income
for the year ended 30 September 2018
2018 % 2017
R’m change R’m
Revenue 23 488 12.9 20 797
Operating expenses (19 640) (17 177)
Operating profit 3 848 6.3 3 620
Fair value adjustment to contingent consideration (18) 43
Transaction costs relating to acquisitions (38) (267)
Impairment of assets and investments (34) (167)
Profit on remeasuring previously held interest in
associate to fair value - 6
Profit/(loss) on disposal of property, plant and equipment 35 (37)
Gain on derecognition of lease assets and liabilities 79 -
Fair value profit/(loss) on derivative financial instruments 127 (92)
Other (95) (20)
Finance income 40 162
Finance cost (1 002) (1 299)
Share of associates’ and joint ventures’ net loss after tax (105) (15)
Profit before tax 2 837 1 934
Tax expense (923) (815)
Profit after tax 1 914 71.0 1 119
Other comprehensive income, net of tax
Items that may be reclassified to profit or loss
Movement in foreign currency translation reserve 183 127
Items that will not be reclassified to profit or loss
Retirement benefit asset and post-employment medical aid - 13
Total comprehensive income for the year 2 097 66.6 1 259
Profit after tax attributable to:
Ordinary equity holders of the parent 1 575 93.5 814
Non-controlling interest 339 305
1 914 71.0 1 119
Total comprehensive income attributable to:
Ordinary equity holders of the parent 1 757 84.6 952
Non-controlling interest 340 307
2 097 66.6 1 259
Weighted average number of shares in issue (million) 1 451 10.8 1 310
Earnings per share (cents) 108.6 74.6 62.2
Headline earnings per share (cents) 108.8 40.6 77.4
Diluted earnings per share (cents) 108.1 74.4 62.0
Diluted headline earnings per share (cents) 108.3 40.3 77.2
Headline earnings (R’m)
Profit attributable to ordinary equity holders 1 575 814
Headline earnings adjustable items (net of tax)
Impairment of assets and investments 34 167
Profit on remeasuring previously held - (4)
interest in associate to fair value
(Profit)/loss on disposal of property, plant and equipment (30) 37
Headline earnings 1 579 55.7 1 014
Summarised consolidated statement of financial position
as at 30 September 2018
Notes 2018 2017
R’m R’m
Assets
Non-current assets 30 558 31 459
Property, plant and equipment 12 243 11 131
Intangible assets 17 084 16 281
Other non-current assets 1 231 4 047
Current assets 8 584 5 180
Cash and cash equivalents 1 494 1 176
Other current assets 4 249 4 004
Asset classified as held for sale 2 841 -
Total assets 39 142 36 639
Equity and liabilities
Capital and reserves
Stated capital 13 510 13 084
Reserves 1 406 1 296
Non-controlling interest 1 286 1 171
Total equity 16 202 15 551
Liabilities
Non-current liabilities 14 764 9 991
Interest-bearing borrowings 1 12 870 7 786
Other non-current liabilities 1 894 2 205
Current liabilities 8 176 11 097
Bank overdraft 488 450
Interest-bearing borrowings 1 3 086 6 301
Other current liabilities 4 602 4 346
Total liabilities 22 940 21 088
Total equity and liabilities 39 142 36 639
Summarised consolidated statement of changes in equity
for the year ended 30 September 2018
Total
capital Non-
and controlling Total
reserves interest equity
R’m R’m R’m
Balance at 1 October 2017 14 380 1 171 15 551
Total comprehensive income for the year 1 757 340 2 097
Profit for the year 1 575 339 1 914
Other comprehensive income 182 1 183
Issue of new shares as a result of scrip distributions 450 - 450
Transactions with non-controlling interests (474) 19 (455)
Distributions to shareholders (1 208) (244) (1 452)
Net movement in treasury shares for staff benefit schemes (66) - (66)
Share-based payment charge for staff benefit schemes 77 - 77
Balance at 30 September 2018 14 916 1 286 16 202
Balance at 1 October 2016 5 486 1 312 6 798
Total comprehensive income for the year 952 307 1 259
Profit for the year 814 305 1 119
Other comprehensive income 138 2 140
Issue of new shares as a result of scrip distributions 712 - 712
Issue of new shares as a result of the rights offer,
net of costs 8 770 - 8 770
Gains on transactions with non-controlling interests 6 (6) -
Transactions with non-controlling interests (6) (205) (211)
Non-controlling interest arising on business combination - 17 17
Distributions to shareholders (1 477) (254) (1 731)
Purchase of treasury shares for staff benefit schemes (125) - (125)
Share-based payment charge for staff benefit schemes 62 - 62
Balance at 30 September 2017 14 380 1 171 15 551
Summarised consolidated statement of cash flows
for the year ended 30 September 2018
2018 % 2017
R’m change R’m
Cash generated from operations 5 503 18.0 4 663
Transaction costs paid (38) (210)
Interest received 40 162
Tax paid (1 065) (891)
Net cash from operating activities 4 440 19.2 3 724
Capital expenditure (2 244) (1 656)
Acquisition of Alliance Medical (net of cash acquired) - (9 568)
Other investments (net of cash acquired) and contingent
considerations paid (1 131) (733)
Other 11 72
Net cash utilised in investing activities (3 364) (11 885)
Proceeds from interest-bearing borrowings 8 437 18 685
Repayment of interest-bearing borrowings (6 784) (15 462)
Proceeds from issue of shares as a result of the rights
offer, net of costs - 8 770
Finance costs paid (903) (1 210)
Dividends paid (758) (765)
Other (818) (720)
Net cash (utilised in)/generated from financing activities (826) 9 298
Net increase in cash and cash equivalents 250 1 137
Cash and cash equivalents - beginning of the year 726 (426)
Effect of foreign exchange rate movements 30 15
Cash and cash equivalents - end of the year 1 006 726
Segment information
for the year ended 30 September 2018
The hospitals and complementary services segment comprises all the acute hospitals and complementary services in southern
Africa. The healthcare services segment comprises Life Esidimeni and Life Employee Health Solutions in southern Africa.
Alliance Medical comprises diagnostic services in the United Kingdom and Europe, and Poland comprises healthcare services
in Poland.
The operating businesses have been aggregated into different segments based on the similar nature of products and services,
similar economic characteristics, similar type of customers and operating in a similar regulatory environment.
Inter-segment revenue of R4 million (2017: R5 million) is eliminated and relates to revenue between Life Employee Health
Solutions and the southern Africa business.
2018 2017
R’m R’m
Revenue
Southern Africa
Hospitals and complementary services 16 118 15 019
Healthcare services 1 122 871
Alliance Medical
Diagnostic services 4 988 3 812
Poland
Healthcare services 1 260 1 095
23 488 20 797
Normalised EBITDA (1)
Southern Africa
Hospitals and complementary services 3 703 3 420
Healthcare services 131 121
Alliance Medical
Diagnostic services 1 161 908
Poland
Healthcare services 85 44
Corporate 455 508
5 535 5 001
(1) Life Healthcare defines normalised EBITDA as operating profit before depreciation on property,
plant and equipment, amortisation of intangible assets and non-trading-related costs or income.
2018 2017
R’m R’m
Depreciation
Southern Africa
Hospitals and complementary services (531) (475)
Healthcare services (17) (14)
Alliance Medical
Diagnostic services (480) (390)
Poland
Healthcare services (59) (58)
Corporate (46) (34)
(1 133) (971)
EBITA (2)
Southern Africa
Hospitals and complementary services 3 172 2 945
Healthcare services 114 107
Alliance Medical
Diagnostic services 681 518
Poland
Healthcare services 26 (14)
Corporate 409 474
4 402 4 030
Amortisation
Southern Africa
Hospitals and complementary services (131) (135)
Alliance Medical
Diagnostic services (387) (284)
Poland
Healthcare services (19) (20)
(537) (439)
Operating profit before items detailed on below
Southern Africa
Hospitals and complementary services 3 041 2 810
Healthcare services 114 107
Alliance Medical
Diagnostic services 294 234
Poland
Healthcare services 7 (34)
Corporate 409 474
(2) EBITA = normalised EBITDA less depreciation.
2018 2017
R’m R’m
Operating profit before items detailed below 3 865 3 591
Retirement benefit asset and post-employment medical
aid income 34 29
Severance payments (51) -
Operating profit 3 848 3 620
Fair value adjustment to contingent consideration (18) 43
Transaction costs relating to acquisitions (38) (267)
Impairment of assets and investments (34) (167)
Profit on remeasuring previously held interest in associate
to fair value - 6
Profit/(loss) on disposal of property, plant and equipment 35 (37)
Gain on derecognition of lease assets and liabilities 79 -
Fair value profit/(loss) on derivative financial instruments 127 (92)
Other (95) (20)
Finance income 40 162
Finance costs (1 002) (1 299)
Share of associates’ and joint ventures’ net loss after tax (105) (15)
Profit before tax 2 837 1 934
Operating profit before items detailed includes the segment’s share of shared services and rental costs.
These costs are all at market-related rates.
2018 2017
R’m R’m
Total assets before items below
Southern Africa 12 998 12 542
Alliance Medical 19 559 17 815
Poland 2 519 2 280
India (classified as held for sale in the current year) 2 841 2 960
37 917 35 597
Employee benefit assets 401 399
Deferred tax assets 700 608
Derivative financial assets 100 2
Income tax receivable 24 33
Total assets per the balance sheet 39 142 36 639
Net debt
Southern Africa 8 018 7 976
Alliance Medical 5 854 4 276
Poland 1 078 1 109
14 950 13 361
Cash and cash equivalents (net)
Southern Africa (82) 49
Alliance Medical 944 590
Poland 144 87
1 006 726
Net debt is a key measure for the Group, which comprises all interest-bearing borrowings, overdraft
balances and cash on hand.
Acquisitions and disposals of investments in subsidiaries
Transactions with non-controlling interests
Increase and decrease in ownership interest in southern Africa subsidiaries
The Group had increases and decreases in its percentage shareholding in some of its subsidiary companies due
to transactions with minority shareholders. The largest impact on the Group cash flows were the acquisition
of additional shares in Metropol Hospitals Proprietary Limited (R376 million cash outflow) and Border
Hospitals Proprietary Limited (R94 million cash outflow).
Business combinations
The following acquisitions took place during the current financial year.
EOH Business
Abantu of
Proprietary Piramal
Limited Imaging SA
(EOH) and three
and Centro subsidiaries
Alfa srl Imed srl (Piramal)
Acquirer Life Alliance Alliance
Employee Medical Medical
Health
Solutions
and Alliance
Medical
respectively
Country of incorporation South Italy Switzerland,
Africa with businesses
and in Germany,
Italy United Kingdom
respectively and
United States
Acquisition date 1 October 2017 17 March 2018 25 June 2018
and
5 September
2018
respectively
Percentage voting equity interest acquired 100% 100% 100%
Primary reasons for business combination Expanding the In line with Life The acquisition
Group’s footprint Healthcare’s of Piramal
in the Life strategy to expands
Employee Health establish a the Group’s
Solutions business sizeable molecular
as well as international imaging
continuing its business, the business
strategy to acquisition of with the
acquire clinics Imed ensured developement
in Italy a footprint and ownership
in another of a proprietary
region in Italy broader range
and complements of non-invasive
the Group’s molecular
existing diagnostic imaging
services segment PET solutions
Qualitative factors that make up goodwill
recognised Attributable to Attributable to Attributable
future earnings future earnings to the workforce
potential potential and future
and synergies and synergies earnings
potential
from
commercialisation
of the proprietary
molecular imaging
PET solutions
Contingent liabilities at acquisition None None None
Details of the fair values of net assets acquired and goodwill
are as follows:
R’m EOH and
Centro Alfa srl Imed srl Piramal
Total purchase consideration (44) (542) (422)
Cash portion (37) (542) (16)
Contingent consideration(1) (7) - (406)
Fair value of net assets acquired(2) 15 223 180
Inventories - - 3
Trade and other receivables 1 39 62
Trade and other payables (8) (68) (141)
Retirement benefit liability - (25) -
Cash and cash equivalents 2 124 11
Income tax (payable)/receivable - (1) 5
Interest-bearing borrowings (3) - -
Property, plant and equipment 17 51 19
Intellectual property - - 221
Customer relationships 7 124 -
Software - 2 -
Deferred tax liabilities (1) (23) -
Goodwill (29) (319) (242)
1 Contingent consideration (Piramal)
The contingent consideration will become payable when the acquired business is generating a positive cash contribution,
measured on a cumulative basis from the date of acquisition. The contingent consideration is a 50% share of pre-tax
cash generated for a period of 10 years post-acquisition or a maximum amount payable of USD200 million. The amount
included is the calculated payment, based on long-term forecasts adjusted for probabilities associated with the success
of the product developed, discounted to present value using a discount rate of 11.3%.
2 The fair values identified on acquisition, relating to Piramal and Imed, are provisional and subject to further review,
and will be finalised during the 2019 financial year.
EOH and
Centro
R’m Alfa srl Imed srl Piramal
Cash outflow to acquire businesses, net of cash acquired
Initial cash consideration 37 542 16
Less: Cash at acquisition (2) (124) (11)
35 418 5
Impact on consolidated information from date of acquisition
Revenue 136 125 66
Net profit/(loss) 6 16 (82)
Impact on consolidated information if each business
combination took place on 1 October 2017
Revenue 145 236 228
Net profit/(loss) 6 32 (125)
Notes
1. Interest-bearing borrowings
R’m
Total borrowings at 30 September 2017 14 087
Proceeds from interest-bearing borrowings 8 437
Repayment of interest-bearing borrowings (6 784)
Derecognition of finance lease liabilities (94)
Interest accrued 874
Interest paid (738)
Other movements (43)
Exchange differences 217
Total borrowings at 30 September 2018 15 956
Basis of presentation and accounting policies
The summarised consolidated financial statements are prepared in accordance with the requirements of the JSE Limited
(JSE) Listings Requirements for preliminary reports, and the requirements of the South African Companies Act 71 of
2008 (as amended) applicable to summary financial statements. The Listings Requirements require preliminary reports
to be prepared in accordance with the framework concepts and the measurement and recognition requirements of
International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council
and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting.
The accounting policies applied in the preparation of the consolidated financial statements from which the summary
consolidated financial statements were derived are in terms of IFRS and are consistent with those applied in the
previous consolidated financial statements, except for the adoption of new, revised or amended standards.
These financial results have been prepared under the supervision of PP van der Westhuizen (CA(SA)), the Group Chief
Financial Officer.
Report of the independent auditor
This summarised report is extracted from audited information, but is not itself audited. The consolidated financial
statements were audited by PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The audited
consolidated financial statements and the auditor’s report thereon are available for inspection at the Company’s
registered office.
The directors take full responsibility for the preparation of the preliminary report and that the financial
information has been correctly extracted from the underlying consolidated financial statements.
Commentary
Overview
The Group results for the year ended 30 September 2018 reflect a strong overall performance with Group
revenue growing by 12.9%, normalised EBITDA increasing by 10.7% and headline earnings per share up by
40.6%. The Group continues to diversify its revenue streams with 35% (2017: 28%) of Group revenue coming from
outside the acute hospital business. The southern African operations returned to positive paid patient day
(PPD) growth and continued to benefit from the strategy of expanding the complementary services business. In
the Group’s international operations, Scanmed S.A. (Scanmed) continued with its business turnaround and performed
in line with H1 2018 and Alliance Medical Group Limited (Alliance Medical) delivered a good performance for the
2018 year. In the Alliance Medical UK business, molecular imaging(PET-CT) continued to experience solid scan
volume growth with 2018 volumes increasing by 15.2% over the prior year. The diagnostic imaging business in
the UK was impacted by increased mobile competition and a decrease in National Health Service (NHS) prices, and
the strategic focus continues to move away from short-term contracts to long-term partnership solutions with
hospital trusts. The Irish, Italian and northern Europe diagnostic businesses within Alliance Medical performed
well over the year.
Operational review
Southern Africa
Revenue from the southern African operations increased by 8.5% to R17.2 billion (2017: R15.9 billion). Revenue
in hospitals and complementary services grew by 7.3%. The business benefitted from the 1.1% increase in PPDs
(2017: -1.7%) and a higher revenue per PPD of 6.1%, made up of a 5.6% tariff increase and a 0.5% positive case
mix impact. The overall weighted occupancy for the year remained relatively constant at 69.7% (2017: 70.0%),
with 131 brownfield expansion beds being added. Complementary services continue to reflect good growth across
its different lines of business with revenue increasing by 14.0%. Healthcare services benefitted from the
acquisition of the occupational health and wellness business (EOH) in October 2017 as well as the return of the
Gauteng mental healthcare users.
Normalised EBITDA increased by 5.9% with an EBITDA margin of 24.9% for the year (2017: 25.5%). The EBITDA margin
for hospitals and complementary services reflected a marginal improvement on 2017 with the overall margin being
impacted by strong healthcare services growth occurring within the context of lower EBITDA margins and increased
corporate costs due to the investment in future growth projects.
The Group continues to improve on its quality outcomes with the overall patient experience improving and the
patient incident rate declining. In line with the Group’s strategy of increasing transparency around quality
outcomes, the southern African business became the first hospital group in South Africa to publish quality scores
on a per hospital basis from October 2018.
Alliance Medical
Alliance Medical’s revenue increased by 30.8% to R5.0 billion (2017: R3.8 billion) and normalised EBITDA increased
by 27.9% to R1.2 billion (2017: R0.9 billion) due to the inclusion of its results for the full 12 months in 2018
(2017: 10.3 months), and the subsequent acquisitions of the Italian clinics, Imed and Centro Alfa, as well as
Piramal. The weakening of the rand against the pound sterling and euro also contributed to the increase. On a
12-month basis, revenue grew by 8.4% compared to 2017, on the back of strong growth in PET-CT volumes, the subsequent
acquisitions and a solid underlying performance in Italy and Ireland. The Alliance Medical results include the
acquisition of Piramal, the Group’s investment in a clinical trials business, contributing revenue of R66 million
and a loss of R45 million at an EBITDA level. Piramal has a track record in research, development, marketing and
sales of non-invasive molecular imaging PET solutions. The EBITDA margin on a 12-month basis was 23.3% (2017: 24.2%).
The margin was impacted by Piramal, as well as the lower margin in the Life Radiopharma business (acquired in
H2 2017). The margin excluding Piramal and Life Radiopharma is 25.3% (2017: 24.4%). Alliance Medical opened its
first integrated diagnostic centre (IDC) in March 2018 and has contracts signed with an additional 12 trusts.
The Group agreed to transition certain members of the Alliance Medical management into non-executive roles. As part
of this transition, the Group agreed to acquire the management’s equity holding of 6.22% and settle the B-share
liability for GBP35.7 million (R640 million). As a result of this settlement, the Group recognised a net gain of
R23 million (2017: loss of R65 million) in profit or loss.
Poland
Scanmed revenue for the year increased by 15.1% to R1 260 million (2017: R1 095 million). Normalised EBITDA
increased by 93.2% to R85 million (2017: R44 million) with the EBITDA margin increasing to 6.7% (2017: 4.0%). These
strong results are primarily as a result of the business turnaround driven by the management team and the continued
integration and efficiency initiatives. In addition, new four-year Narodowy Fundusz Zdrowia (NFZ) contracts covering
95% of the Scanmed business have been concluded at improved average pricing. The prior year also included a downward
adjustment to EBITDA of R23 million mainly relating to overquota revenue.
India
In September 2018, the board accepted an offer from the global investment firm Kohlberg Kravis Roberts and Co LP.
(KKR) of 80 rupees per share for the Life Healthcare equity shareholding in Max Healthcare Institute Limited (Max).
The offer values the Life Healthcare stake at approximately R4.3 billion before costs and the impact of exchange rate
fluctuations (the R4.3 billion is an indicative amount based on the rate of exchange as at 19 September 2018, R1 =
INR4.93). The final amount will be determined based on the rate of exchange when the transaction is finalised. The
offer is subject to the signing of a sale agreement and regulatory approvals. The Group entered into foreign
exchange option contracts to manage exposure to fluctuations in the exchange rates on the proceeds relating to
the sale.
The Group ceased equity accounting the investment on 30 June 2018, since the IFRS 5 criteria had been met on
1 July 2018. The results relating to Max for the nine-month period reflect a loss of R118 million (2017: loss of
R27 million).
Financial performance
Group revenue increased by 12.9% to R23.5 billion (2017: R20.8 billion) consisting of an 8.5% increase
in southern African revenue to R17.2 billion (2017: R15.9 billion); R5.0 billion (2017: R3.8 billion) revenue
contribution from Alliance Medical and R1 260 million (2017: R1 095 million) revenue contribution from Poland.
Normalised EBITDA increased by 10.7% to R5.5 billion (2017: R5.0 billion).
2018 % 2017
R’m change R’m
Normalised EBITDA
Operating profit 3 848 6.3 3 620
Depreciation on property, plant and equipment 1 133 16.7 971
Amortisation of intangible assets 537 22.3 439
Retirement benefit asset and post-employment
medical aid income (34) (29)
Severance payments 51 -
Normalised EBITDA 5 535 10.7 5 001
Southern Africa 4 289 5.9 4 049
Alliance Medical 1 161 27.9 908
Poland 85 93.2 44
Cash flow
The Group produced strong cash flows from operations, increasing by 18.0%, due to improved working capital
management and a better operational performance.
Financial position
The Group concluded the refinancing of the UK bridge facilities in November 2017 and arranged GBP225 million and
EUR302.5 million facilities for general corporate requirements.
Net debt to normalised EBITDA as at 30 September 2018 was 2.73 times (2017: 2.55 times). The bank covenant for
net debt to EBITDA is 3.50 times (2017: 3.50 times).
Capital expenditure
During the current financial period, Life Healthcare invested R3.4 billion (2017: R12.0 billion, including the
acquisitions of Alliance Medical), mainly comprising capital projects of R2.1 billion (2017: R1.6 billion), new
acquisitions (net of cash acquired) by Alliance Medical of R434 million (2017: R292 million) and settling the
B-share liability for R640 million. The Group has approved R2.6 billion for its 2019 capital expenditure
programme. The maintenance capex for the year was R878 million (2017: R837 million).
Headline earnings per share (HEPS) and normalised earnings per share (EPS)
HEPS increased by 40.6% to 108.8 cps (2017: 77.4 cps). EPS on a normalised basis, which excludes non-trading
related items, increased by 17.4% to 110.2 cps (2017: 93.9 cps).
2018 % 2017
R’m change R’m
Weighted average number of shares in issue (million)(1) 1 451 10.8 1 310
Normalised earnings
Profit attributable to ordinary equity holders 1 575 814
Adjustments (net of tax)
Retirement benefit asset and post-employment medical
aid income (24) (21)
Fair value adjustment to contingent consideration 18 (43)
Transaction costs relating to acquisitions 38 267
Impairment of assets and investments 34 167
Profit on remeasuring previously held interest in
associate to fair value - (4)
(Profit)/loss on disposal of property, plant
and equipment (30) 37
Gain on derecognition of lease assets and liabilities (71) -
Fair value gain on foreign exchange option contracts (17) (7)
Other 75 20
Normalised earnings 1 598 29.9 1 230
Normalised EPS (cents) 110.2 17.4 93.9
(1) The weighted number of shares in issue in the current year increased by 10.8% due to the effect of the rights
offer shares issued in April 2017 as well as the scrip distribution shares issued during the current year.
Changes to board of directors
SB Viranna was appointed as Group Chief Executive Officer effective 1 February 2018.
MEK Nkeli resigned as an independent non-executive director with effect from 31 May 2018.
AM Mothupi was appointed chairman of the social, ethics and transformation committee with effect from 31 May 2018.
Cash dividend declaration
The board approved a final gross cash dividend of 50 cents per ordinary share for the year ended 30 September 2018.
The dividend has been declared from income reserves. A dividend withholding tax of 20% will be applicable to all
shareholders not exempt therefrom, after deduction of which the net cash dividend is 40 cents per share.
The Company’s total number of issued ordinary shares is 1 467 349 162 as at 22 November 2018. The Company’s income
tax reference number is 9387/307/15/1.
In compliance with the requirements of the JSE, the following salient dates are applicable:
Last date to trade cum dividend Tuesday, 11 December 2018
Shares trade ex the dividend Wednesday, 12 December 2018
Record date Friday, 14 December 2018
Payment date Tuesday, 18 December 2018
Share certificates may not be dematerialised or rematerialised between Wednesday, 12 December 2018 and Friday,
14 December 2018, both days inclusive.
Outlook
Southern Africa
In southern Africa, the Group expects PPDs to continue to grow conservatively with continued good growth in
complementary and healthcare services. Although the Group will continue to take a cautious approach with regard
to bed expansion, adding 80 greenfield mental health beds in Q2 2019 to facilitate the growing demand in this
business. Capex for the year is expected at approximately R1.2 billion. The Group has realigned the southern
African management team to enable a greater focus on increasing operational leverage, driving efficiencies,
improving clinical quality outcomes and clinical efficiency, broadening the service offering outside of the
acute spectrum and ensuring continued good growth with improved margins within healthcare services.
Alliance Medical
Alliance Medical will continue to execute on its growth strategies and good PET-CT volume growth is expected to
continue in the UK. In addition, the UK business will look to roll out five IDCs while focusing on signing
additional long-term contracts. The businesses in Italy and Ireland are expected to show good growth on the back
of volume increases, the growth of the clinic business in Italy as well as introducing the clinic model to
Ireland. Capex for the year is expected to be approximately R1.2 billion.
Poland
Prospects for Scanmed have improved on the back of the new four-year contracts with the NFZ. The Group will
continue to focus on driving further efficiencies and aligning the business to the Group’s best operating
practices. The effects of these plans, implemented to sustain growth and manage costs, will be seen over a
reasonable period of time. Capex for the year is expected at approximately R77 million.
Thanks
The contribution of the doctors, nurses, other healthcare professionals and employees of the Life Healthcare
Group have greatly enhanced the quality of our performance. We thank them for their contributions.
Approved by the board of directors on 22 November 2018 and signed on its behalf:
Mustaq Brey Shrey Viranna
Chairman Group Chief Executive Officer
Executive directors:
SB Viranna (Group Chief Executive Officer), PP van der Westhuizen (Group Chief Financial Officer)
Non-executive directors:
MA Brey (Chairman), PJ Golesworthy, ME Jacobs, AM Mothupi, JK Netshitenzhe, MP Ngatane, M Sello, GC Solomon,
RT Vice
Company Secretary: F Patel
Registered office: Oxford Manor, 21 Chaplin Road, Illovo; Private Bag X13, Northlands, 2116
Sponsors: Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 23 November 2018
Note regarding forward looking statements:
The Company advises investors that any forward looking statements or projections made by the Company, including
those made in this announcement, are subject to risk and uncertainties that may cause actual results to differ
materially from those projected, and such information has not been reviewed or reported by the Company's auditors.
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
Registration number: 2003/002733/06
Income tax number: 9387/307/15/1
ISIN: ZAE000145892
Share code: LHC
Head office
Oxford Manor
21 Chaplin Road
Illovo, 2196
Tel: 011 219 9000
www.lifehealthcare.co.za
Date: 23/11/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
