LHC: LIFE HEALTHCARE GROUP HOLDINGS LIMITED - Audited results ended 30 September 2015, and declaration of scrip distribution and a cash dividend alternative Audited results ended 30 September 2015, and declaration of scrip distribution and a cash dividend alternative LIFE HEALTHCARE GROUP HOLDINGS LIMITED Registration number: 2003/002733/06 Income tax number: 9387/307/15/1 ISIN: ZAE000145892 Share code: LHC SUMMARISED AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2015, AND DECLARATION OF SCRIP DISTRIBUTION AND CASH DIVIDEND ALTERNATIVE Paid patient days (PPDs) +3% Revenue +12.3% to R14 647 million Normalised EBITDA +12.1% to R4 048 million Final dividend of 86 cents per share, giving a total dividend of 154 cents per share +9.2% Headline earnings per share increased to 179.9 cents +1.2% Summarised consolidated statement of comprehensive income for the year ended 30 September 2015 R'm 30 September % 30 September 2015 Change 2014 Revenue 14 647 12.3 13 046 Other income 129 115 Operating expenses (11 280) (10 011) Profit on disposal of a business - 2 Contingent consideration released 21 - Transaction costs (15) (16) Profit on disposal of investment in associate - 957 Gain on bargain purchase - 1 Impairment of property, plant and equipment - (1) Operating profit 3 502 (14.4) 4 093 Fair value gain on derivative financial instruments 29 49 Finance income 12 22 Finance cost (445) (230) Share of associates' and joint ventures' net profit after tax 14 39 Profit before tax 3 112 3 973 Tax expense (884) (875) Profit after tax 2 228 (28.1) 3 098 Other comprehensive income, net of tax Items that may be reclassified subsequently to profit or loss Currency translation differences 158 (1) Items that will not be reclassified to profit or loss Retirement benefit asset (6) 19 Post-retirement medical aid 1 2 Total comprehensive income for the year 2 381 (23.6) 3 118 Profit after tax attributable to: Ordinary equity holders of the parent 1 866 (32.7) 2 774 Non-controlling interest 362 324 2 228 (28.1) 3 098 Total comprehensive income attributable to: Ordinary equity holders of the parent 2 010 (28.1) 2 796 Non-controlling interest 371 322 2 381 (23.6) 3 118 Weighted average number of shares in issue (million) 1 037 1 037 Earnings per share (cents) 179.9 (32.7) 267.5 Headline earnings per share (cents) 179.9 1.2 177.8 Diluted earnings per share (cents) 179.2 (32.8) 266.7 Diluted headline earnings per share (cents) 179.2 1.1 177.3 Headline earnings (R'm) Profit attributable to ordinary equity holders 1 866 2 774 Headline earnings adjustable items Impairment of property, plant and equipment - 1 Profit on disposal of a business - (2) Profit on disposal of investment in associate - (957) Gain on bargain purchase - (1) Tax - 29 Headline earnings 1 866 1.2 1 844 Summarised consolidated statement of financial position as at 30 September 2015 R'm 30 September 30 September 2015 2014 ASSETS Non-current assets 13 164 9 700 Property, plant and equipment 7 101 5 901 Intangible assets 2 964 2 318 Other non-current assets 3 099 1 481 Current assets 2 771 2 113 Other current assets 1 959 1 691 Cash and cash equivalents 812 422 TOTAL ASSETS 15 935 11 813 EQUITY AND LIABILITIES Capital and reserves Capital and reserves 5 168 4 792 Non-controlling interest 1 280 1 108 TOTAL EQUITY 6 448 5 900 LIABILITIES Non-current liabilities 5 873 2 909 Interest-bearing borrowings 5 263 2 344 Other non-current liabilities 610 565 Current liabilities 3 614 3 004 Other current liabilities 2 133 1 842 Interest-bearing borrowings 924 1 007 Bank overdraft 557 155 TOTAL LIABILITIES 9 487 5 913 TOTAL EQUITY AND LIABILITIES 15 935 11 813 Summarised consolidated statement of changes in equity for the year ended 30 September 2015 R'm Total Non- Total capital and controlling equity reserves interest Balance at 1 October 2014 4 792 1 108 5 900 Total comprehensive income for the year 2 010 371 2 381 Profit for the year 1 866 362 2 228 Other comprehensive income 144 9 153 Gains on transactions with non-controlling interests 7 (7) - Increase in ownership interest in subsidiaries (36) - (36) Distributions to shareholders (1 522) (192) (1 714) Life Healthcare Employee Share Trust charge 28 - 28 Long-Term Incentive Scheme charge 8 - 8 Purchase of treasury shares (120) - (120) Profit on disposal of treasury shares 1 - 1 Balance at 30 September 2015 5 168 1 280 6 448 Balance at 1 October 2013 4 525 1 081 5 606 Total comprehensive income for the year 2 796 322 3 118 Profit for the year 2 774 324 3 098 Other comprehensive income 22 (2) 20 Gains on transactions with non-controlling interests 8 (8) - Non-controlling interest arising on business combination - 6 6 Increase in ownership interest in subsidiaries (102) - (102) Distributions to shareholders (2 449) (293) (2 742) Life Healthcare Employee Share Trust charge 17 - 17 Long-Term Incentive Scheme charge 18 - 18 Purchase of Treasury shares (21) - (21) Balance at 30 September 2014 4 792 1 108 5 900 Summarised consolidated statement of cash flows for the year ended 30 September 2015 R'm 30 September % 30 September 2015 Change 2014 Cash generated from operations 3 842 9.3 3 516 Tax paid (903) (980) Net cash generated from operating activities 2 939 15.9 2 536 Capital expenditure (1 181) 22.8 (962) Other (2 037) 864 Net cash utilised in investing activities* (3 218) (98) Interest-bearing borrowings raised 4 268 1 661 Interest-bearing borrowings repaid (1 860) (919) Distributions to shareholders (1 520) (2 446) Other (654) (562) Net cash utilised in financing activities 234 (2 266) Net (decrease)/increase in cash and cash equivalents (45) 172 Cash and cash equivalents - beginning of the year 267 64 Cash balances acquired through business combinations 20 23 Effect of foreign currency movement 13 8 Cash and cash equivalents - end of the year 255 267 * The cash utilised in investing activities includes the acquisitions in Poland (R633 million), and the additional shares in Max Healthcare Institute Limited, India for R1.3 billion. Segmental report The Hospital segment comprises all the private hospitals in southern Africa, the Healthcare Services segment comprises Life Esidimeni, Life Occupational Health and Careways Wellness. International comprises Poland while the Other segment comprises Corporate. There are no inter-segment revenue streams. R'm Year ended Year ended 30 September 30 September 2015 2014 Operating segments Revenue Southern Africa Hospitals 13 133 12 007 Healthcare Services 866 864 International Hospitals 648 175 Total 14 647 13 046 Profit before items detailed below Southern Africa Hospitals 3 201 2 905 Healthcare Services 157 135 Other 191 213 International Hospitals 54 3 Operating profit before items detailed below 3 603 3 256 Amortisation of intangible assets (127) (122) Impairment of property, plant and equipment - (1) Profit on disposal of investment in associate - 957 Profit on disposal of a business - 2 Gain on bargain purchase - 1 Retirement benefit asset 20 15 Post-retirement medical aid - 1 Transaction costs (15) (16) Contingent consideration released 21 - Operating profit 3 502 4 093 Fair value gain on derivative financial instruments 29 49 Finance income 12 22 Finance costs (445) (230) Share of associates' and joint ventures' net profit after tax 14 39 Profit before tax 3 112 3 973 R'm Year ended Year ended 30 September 30 September 2015 2014 Operating profit before items detailed includes the segment's share of shared services and rental costs. These costs are all at market related rates. Total assets before items below Southern Africa 10 710 9 160 International 4 419 1 905 Total assets before items detailed below 15 129 11 065 Deferred tax assets 341 253 Current income tax asset 36 49 Retirement benefit asset 389 372 Post-retirement medical aid 17 18 Derivative financial instruments 23 56 Total assets per the balance sheet 15 935 11 813 Net debt Southern Africa 5 625 2 620 International 307 464 5 932 3 084 Liabilities are reviewed on a net debt basis, which comprises all interest-bearing borrowings and overdraft balances (net cash on hand). Acquisitions and disposals of investments Changes in ownership interest in subsidiaries as a result of non-controlling interest transactions The Group had marginal increases and decreases in its shareholdings in some of its subsidiary companies due to transactions with minority shareholders. Increase in shareholding in Max Healthcare Institute Limited The Group acquired additional shares in Max Healthcare Institute Limited (Max Healthcare) in November 2014 and now owns 46.25%. The transaction resulted in Life Healthcare equalising its shareholding with Max India (Max equalisation). The remaining 7.5% is held by the International Finance Corporation (IFC). The additional amount invested was R1.3 billion. This was funded through the issue of preference shares in South Africa. Business combinations The Group acquired 100% of Genesis Clinic Saxonwold Proprietary Limited (Genesis) and the business of Careways Proprietary Limited (Careways) in March 2015 and May 2015 respectively for a total of R78 million. These companies had no significant contingent liabilities at the acquisition date. The following presents the net impact on the consolidated information of the Group as if the business combination took place on 1 October 2014: R'm Revenue 81 Net profit 4 In June 2015, Scanmed Multimedis S.A. (Scanmed) acquired 49.93% in Carint, incorporated in Poland, for R66 million. The company had no significant contingent liabilities at the acquisition date. In October 2014, Scanmed acquired 100% of Sport Klinika, incorporated in Poland. The company had no significant contingent liabilities at the acquisition date. The following presents the impact on the consolidated information of the Group for the period: R'm Revenue 77 Net profit 10 Details of the net assets acquired and goodwill are as follows: Total purchase consideration (211) Cash portion (211) Non-cash portion - Fair value of net assets acquired 75 Goodwill arising on acquisition (136) The fair value of the assets and liabilities arising from the aquisition were as follows: Acquiree fair value R'm Inventories 1 Trade and other receivables 6 Trade and other payables (7) Cash and cash equivalents 18 Current tax liability (1) Borrowings (46) Property, plant and equipment 86 Intangible assets 25 Deferred tax (7) 75 In November 2014, Scanmed acquired 100% of Kliniki Kardiologii Allenort, incorporated in Poland. The company had no significant contingent liabilities at the acquisition date. The following presents the impact on the consolidated information of the Group as if the business combination took place on 1 October 2014: R'm Revenue 163 Net profit 16 Details of the net assets acquired and goodwill are as follows: Total purchase consideration (443) Cash portion (338) Contingent consideration (105) Fair value of net assets acquired 101 Goodwill arising on acquisition (342) The contingent consideration is dependent on the business gaining additional contracts in the next nine months. The contingent consideration is calculated by applying the same EBITDA multiple used on the acquisition date. The fair value of the assets and liabilities arising from the aquisition were as follows: Acquiree fair value R'm Inventories 2 Trade and other receivables 66 Trade and other payables (30) Cash and cash equivalents 1 Borrowings (87) Property, plant and equipment 115 Intangible assets 53 Deferred tax (19) 101 Basis of presentation and accounting policies The summarised consolidated financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements for preliminary reports, and the requirements of the Companies Act 71 of 2008, 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 annual financial statements, except for the adoption of the new and revised standards. These financial results have been prepared under the supervision of PP van der Westhuizen CA(SA), the Chief Financial Officer of the Group. Report of the independent auditor This summarised report is extracted from audited information, but is not itself audited. The annual financial statements were audited by PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The audited annual 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 performed well, with revenue up 12.3% and EBITDA up 12.1%. Earnings were, however, impacted by the dilutive effect of the interest cost on the funding of the international acquisitions through debt raised in South Africa. The southern African operations experienced good activity growth with an overall paid patient day (PPD) growth of 3.0% and an improved EBITDA margin of 28.3% (2014: 27.9%). The Group continued to deliver on its international expansion plans, investing R1.3 billion in increasing its shareholding in Max Healthcare to 46.25% and investing a further R886 million acquiring three businesses and providing funding in Poland via its subsidiary Scanmed. Revenue and EBITDA continued to show good growth in both the Polish and Indian operations. The funding for the international investments was done via raising debt in South Africa. Primarily due to the continued ramp up of the facilities within Max Healthcare, the interest cost on the debt raised in South Africa is currently significantly higher than the earnings from this investment, resulting in an earnings dilution. Earnings per share on a normalised basis, which excludes non-trading related items and the effect of disposed/closed businesses, increased by 5.2%. Headline earnings per share (HEPS) increased by 1.2%. Operational review Southern Africa During the current year, the Group focused on the following in southern Africa: Growing the acute business through adding additional beds at selected facilities where there is a demand for services: - During the year an additional 253 beds (2014: 249) were added to the business. These additional beds comprise the acquisition of the 14-bed Genesis Maternity Clinic in Saxonwold, Johannesburg, the brownfield expansions of 145 beds across the country and the 94-bed Life Hilton Private Hospital greenfield development in Hilton, KwaZulu-Natal. - Activities, as measured by PPDs increased by 3.2% in the acute business driven largely by the increase in capacity due to additional beds and an increase in the length of stay resulting from higher acuity surgical cases and a faster growing medical case mix. - Occupancies continue to remain high in the intensive and high care units (75.3%) (2014: 77%) and the overall weighted occupancy for the period was 71.9% (2014: 71.9%). Recruiting and retaining more specialists to our facilities: - The Group recruited a net 106 specialists across the country. Training nurses and recruiting specialist nurses in India: - The Group has 131 nurses from India currently working in South Africa with a further 225 nurses joining in the next 18 months. The Group is currently training 1 165 nurses and 704 nurses graduated in 2015. Improving the efficiency of the business: - The margin in southern Africa improved from 27.9% in 2014 to 28.3%. This improvement is attributable to the case mix effect of increased medical cases compared to surgical cases, growth in the complementary services businesses, the impact of efficiency programmes as well as the effect of the continued improvement in operational leverage where 69% of hospital beds have a greater than 70% occupancy. Expanding the complementary services business: - The Group experienced a 4.5% growth in mental health PPDs but a decline in PPDs of 4.4% in the acute rehabilitation business. - The decline in the acute rehabilitation business was largely due to doctor movements and as a result of greater competition from sub-acute units. Improving quality outcomes: - The Group continued to improve the quality metrics as evidenced by an improvement in clinical outcomes, hospital-associated infection rates and patient experience in our facilities. Poland The focus in Poland for the year included: Executing on the strategy of establishing a comprehensive countrywide network of facilities: - In this regard, Scanmed acquired 100% of Sport Klinika, a 46-bed orthopaedic centre, 100% of six inpatient cardiology centres (Kliniki Kardiologii Allenort) and 49.93% of the Scanmed Carint cardiology business. The Scanmed Group now consists of 334 beds, seven inpatient cardiology centres and 28 medical centres. The Group's total investment in the business is now R1.4 billion (2014: R510 million), with an EBITDA contribution of R91 million (2014: R16 million) and earnings (excluding transaction costs) of R14 million (2014: Loss of R12 million). Integrating the acquired businesses and improving EBITDA margins: - The EBITDA margin in Scanmed expanded from 9.1% in 2014 to 14% in 2015. This expansion is a combination of the efficiency programmes as well as the impact of businesses acquired where the margins are higher than the base. India Max Healthcare continues to grow its hospitals in line with the business plan. The business uses its own cash flows and local debt to fund these growth plans. The total investment from South Africa into Max Healthcare is R2.2 billion with the associated earnings of R5 million reflecting the growth phase of this business. The focus in India for the year included: The shareholding equalisation with Max India: - In November 2014 the Group concluded the transaction for R1.3 billion and now owns 46.25%. Growing the Indian operations through select acquisitions and brownfield and greenfield developments: - Max Healthcare added nearly 400 operational beds through the acquisition of Pushpanjali Hospital (renamed Max Vaishali Hospital) with 340 beds, of which 260 beds are operational, and through the expansion of more operational beds in the Phase II hospitals. Max Healthcare has 2 053 operational beds as at 30 September 2015. Growing revenue and improving the EBITDA margin: - Max Healthcare grew both net revenue and EBITDA for the 12-month period by 31%. - The EBITDA margin remained stable at 9.9%. Financial performance Group revenue increased by 12.3% to R14 647 million (2014: R13 046 million) consisting mainly of an 8.8% increase in southern African revenue to R13 999 million (2014: R12 871 million) and R648 million (2014: R175 million), revenue contribution from Scanmed. The southern African Hospital division revenue increased by 9.4% to R13 133 million (2014: R12 007 million) driven by a 3% increase in PPDs and a higher revenue per PPD of 6.4%, made up of a 5.9% tariff increase and a 0.5% positive case mix impact. Healthcare Services revenue remained flat in the current year. Normalised EBITDA* increased by 12.1% to R4 048 million (2014: R3 611 million). Normalised EBITDA on a continuing basis increased by 12.5% to R4 048 million (2014: R3 597 million). * Life Healthcare defines normalised EBITDA as operating profit plus depreciation, amortisation of intangible assets, impairment of property, plant and equipment as well as excluding profit/loss and fair value adjustments on disposal of businesses, fair value adjustments, transaction costs and surpluses/deficits on retirement benefits. R'm 30 September % 30 September 2015 Change 2014 Normalised EBITDA Operating profit 3 502 4 093 Profit on disposal of investment in associate - (957) Contingent consideration released (21) - Gain on bargain purchase - (1) Impairment of property, plant and equipment - 1 Profit on disposal of business - (2) Depreciation on property, plant and equipment 445 355 Transaction costs 15 16 Amortisation of intangible assets 127 122 Retirement benefit asset (20) (15) Post-employment medical aid - (1) Normalised EBITDA 4 048 12.1 3 611 Discontinued operations* - (14) Normalised EBITDA - continued operations 4 048 12.5 3 597 Southern Africa 3 957 10.5 3 581 Poland 91 16 * Discontinued operations are businesses that for comparative purposes are disclosed separately due to only being included for part of a period. The businesses were disposed/closed during the prior period and include Matikwana Hospital where the contract with the Government came to an end in March 2014. Cash flow The Group produced strong cash flows from operations of 95% of EBITDA (2014: 97%), however, the overall net cash outflow position of the Group is negative, given the significance of the investing activities during the period, primarily associated with the investment opportunities of the Group. This net outflow was funded through raising of debt in South Africa. Competition Commission Market Inquiry Life Healthcare has made a detailed submission on the subject matter of the Inquiry and submitted a further response to the public submissions as requested by the Panel. This is a large and complex inquiry and the Commission has now published a revised timetable with public hearings occurring from February 2016 to May 2016, a provisional report to be published during August 2016 and the final report being published in December 2016. Financial position The Group still has a strong financial position. Net debt to normalised EBITDA as at 30 September 2015 was 1.49 times (2014: 0.84 times). The increase in debt is primarily due to the R1.3 billion investment into Max Healthcare in November 2014 and the R886 million spent on acquisitions and funding in Poland. The bank covenant for net debt to EBITDA is 2.75 times. The Group is exploring alternative funding opportunities to finance the international acquisitions and this includes the introduction of a Scrip Distribution programme. The Scrip Distribution, with the election to receive the Cash Dividend, allows the Group to utilise the cash saved through the programme to support continued growth, affords shareholders the opportunity to increase their shareholding in the Group, and provides flexibility for those shareholders who would prefer to receive a Cash Dividend. HEPS and normalised earnings per share HEPS increased by 1.2% to 179.9 cps (2014: 177.8 cps). Earnings per share on a normalised basis, which excludes non-trading related items listed below and the effect of disposed/closed businesses, increased by 5.2% to 177.4 cps (2014: 168.6 cps). R'm 2015 % 2014 Normalised earnings Profit attributable to ordinary equity holders 1 866 2 774 Decrease in profits due to the impact of businesses disposed/closed^ (net of tax): - (54) Adjusted profit attributable to ordinary equity holders from continued operations 1 866 2 720 Profit on disposal of a business - (1) Contingent consideration released (21) - Profit on disposal of investment in associate - (929) Impairment of property, plant and equipment - 1 Retirement funds (15) (11) Retirement funds (included in employee benefits expense) (4) (7) Transaction costs 15 16 Fair value gain on foreign exchange hedge contract (1) (40) Gain on bargain purchase - (1) Normalised earnings from continued operations 1 840 5.3 1 748 Normalised EPS (cents) from continued operations 177.4 5.2 168.6 Southern Africa Operations (cents) 194.1 176.8 International Operations (cents) 1.8 (2.2) Funding costs (international acquisitions) (cents) (18.5) (6.0) ^ Includes Matikwana Hospital and Joint Medical Holdings Limited. Capital expenditure During the current financial year, Life Healthcare invested R3 218 million (2014: R1 480 million) mainly comprising capital projects of R1 181 million (2014: R962 million), R1.3 billion for the equalisation of Max Healthcare and R633 million in expanding the business of Scanmed. This investment in the Group's facilities ensures that the demand for services is met and the Group remains abreast of modern technology and standards. Changes to board of directors FA du Plessis retired from the board; audit; and the social, ethics and transformation committees with effect from 28 January 2015 at the annual general meeting. GC Solomon and JK Netshitenzhe were respectively appointed to the audit committee and the social, ethics and transformation committee with effect from 29 January 2015. MEK Nkeli was appointed to the board of directors as a non-executive director with effect from 1 October 2015. Scrip Distribution and Cash Dividend alternative 1. Introduction The board has declared a final distribution for the year ended 30 September 2015, by way of the issue of fully paid Life Healthcare Group Holdings Limited ordinary shares of 0.0001 cent each (the Scrip Distribution) payable to ordinary shareholders (Shareholders) recorded in the register of the Company at the close of business on the Record Date, being Friday, 11 December 2015. Shareholders will be entitled, in respect of all or part of their shareholding, to elect to receive a gross cash dividend of 86 cents per ordinary share in lieu of the Scrip Distribution, which will be paid only to those Shareholders who elect to receive the cash dividend, in respect of all or part of their shareholding, on or before 12:00 on Friday, 11 December 2015 (the Cash Dividend). The Cash Dividend has been declared from income reserves. A dividend withholding tax of 15% will be applicable to all shareholders not exempt, therefrom after deduction of which the net Cash Dividend is 73.1 cents per share. The new ordinary shares will, pursuant to the Scrip Distribution, be settled by way of capitalisation of the Company's distributable retained profits. The Company's total number of issued ordinary shares is 1 042 209 750 as at 12 November 2015. The Company's Income Tax reference number is 9387/307/15/1. 2. Terms of the Scrip Distribution The Scrip Distribution will be done at a 2.5% discount to the 15-day volume weighted average price (VWAP). The number of Scrip Distribution shares to which each of the Shareholders will become entitled pursuant to the Scrip Distribution (to the extent that such Shareholders have not elected to receive the Cash Dividend) will be determined by reference to such Shareholder's ordinary shareholding in Life Healthcare Group Holdings Limited (at the close of business on the Record Date, being Friday, 11 December 2015) in relation to the ratio that 86 cents multiplied by 1.025 bears to the VWAP of an ordinary Life Healthcare Group Holdings Limited share traded on the JSE during the 15-day trading period ending on Thursday, 26 November 2015. Where the application of this ratio gives rise to a fraction of an ordinary share, the number of shares will be rounded up to the nearest whole number if the fraction is 0.5 or more and rounded down to the nearest whole number if the fraction is less than 0.5. Details of the ratio will be announced on the Stock Exchange News Service (SENS) of the JSE in accordance with the timetable below. 3. Circular and salient dates A circular providing shareholders with full information on the Scrip Distribution and the Cash Dividend alternative, including a Form of Election to elect to receive the Cash Dividend alternative will be posted to Shareholders on or about Thursday, 19 November 2015. The salient dates of events thereafter are as follows: Event Date Announcement released on SENS in respect of the ratio applicable to the Scrip Distribution, based on the 15-day volume weighted average price ending on Thursday, 26 November, by 11h00 on Friday, 27 November 2015 Announcement published in the press of the ratio applicable to the Scrip Distribution, based on the 15-day volume weighted average price ending on Thursday, 26 November 2015 on Monday, 30 November 2015 Last day to trade in order to be eligible for the Scrip Distribution and the Cash Dividend alternative Friday, 4 December 2015 Ordinary shares trade "ex" the Scrip Distribution and the Cash Dividend alternative on Monday, 7 December 2015 Listing and trading of maximum possible number of ordinary shares on the JSE in terms of the Scrip distribution from the commencement of business on Monday, 7 December 2015 Last day to elect to receive the Cash Dividend alternative instead of the Scrip Distribution, Forms of Election to reach the Transfer Secretaries by 12h00 on Friday, 11 December 2015 Record Date in respect of the Scrip Distribution and the Cash Dividend alternative Friday, 11 December 2015 Scrip Distribution shares issued to shareholders on the South African register and Scrip Distribution, certificates posted and Cash Dividend payments made, CSDP/broker accounts credited/updated, as applicable, on Monday, 14 December 2015 Announcement relating to the results of the Scrip Distribution and the Cash Dividend alternative released on SENS on Monday, 14 December 2015 Announcement relating to the results of the Scrip Distribution and the Cash Dividend alternative published in the press on Tuesday, 15 December 2015 JSE listing of ordinary shares in respect of the Scrip Distribution adjusted to reflect the actual number of ordinary shares issued in terms of the Scrip Distribution at the commencement of business on or about Thursday, 17 December 2015 All times provided are South African local times. The above dates and times are subject to change. Any change will be announced on SENS. Share certificates may not be dematerialised or rematerialised between Monday, 7 December 2015 and Friday, 11 December 2015, both days inclusive. Outlook In southern Africa the Group will continue to focus on its growth objectives. The Group aims to add 210 beds in the 2016 financial year, being 108 acute hospital brownfield expansion beds and 102 mental health beds. The complementary services business will also grow further through the addition of 50 renal stations and the addition of an oncology unit, while a further unit is under construction and will become operational in the 2017 financial year. The pressure on costs will remain in light of the weakening exchange rate, wage expectations and other overhead costs. The Group will continue to focus on efficiency programmes to lessen the impact. In Poland, the Group will continue to execute on its strategy of establishing a comprehensive network of facilities and will explore further acquisition opportunities, as well as the integration of the acquired businesses. The Group will also continue to focus on improving margin through the driving of further efficiencies. The Max Healthcare business will continue to focus on driving revenue through increasing the number of operational beds and focus on improving operational efficiencies. The Group is currently in the process of acquiring a business in Poland via Scanmed and Max Healthcare is in the process of acquiring a hospital in Delhi. Both of these transactions are dependent on regulatory approval and the successful completion of due diligence processes. The expected conclusion of these transactions is before the end of December 2015. The quality management programme of the Group is a comprehensive, consistently applied and measured programme which benchmarks clinical interventions against international best practice with the aim of enhancing patient outcomes. In addition Life Healthcare recognises the shortage of healthcare skills and will continue to invest heavily in the training of doctors, nurses and pharmacists. The Competition Commission Market Inquiry into the healthcare sector will play an important role in 2016 as the Commission looks to complete the Inquiry by December 2016. Thanks The contribution of the doctors, nurses and employees of Life Healthcare have greatly enhanced the quality of our performance. We thank them for their contributions. Approved by the board of directors on 12 November 2015 and signed on its behalf: Mustaq Brey Andre Meyer Chairman Chief Executive Officer Executive directors: A Meyer (Chief Executive Officer), PP van der Westhuizen (Chief Financial Officer) Non-executive directors: MA Brey (Chairman), PJ Golesworthy, ME Jacobs, LM Mojela, MEK Nkeli, JK Netshitenzhe, MP Ngatane, 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. 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. www.lifehealthcare.co.za Date: 13/11/2015 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.
Source: JSE News Service (SENS)
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