LHC: LIFE HEALTHCARE GROUP HOLDINGS LIMITED - Unaudited group results for the period ended 31 March 2016, scrip distribution and cash dividend alternative

2016-05-11 07:05:00
LHC: LIFE HEALTHCARE GROUP HOLDINGS LIMITED - Unaudited group results for the period ended 31 March 2016, scrip distribution and cash dividend alternative
Unaudited group results for the period ended 31 March 2016, scrip distribution and 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
UNAUDITED GROUP RESULTS FOR THE PERIOD ENDED 31 MARCH 2016
AND DECLARATION OF SCRIP DISTRIBUTION AND CASH DIVIDEND ALTERNATIVE
Paid patient days (PPDs)
+2.7%
Revenue
+10.9% to R7 860 million
Normalised EBITDA
+9% to R2 099 million
Interim dividend of 73 cents per share
+7.4%
Normalised earnings per share increased to 87.1 cents
+8.6%
Condensed consolidated statement of comprehensive income 
for the period ended 31 March 2016
R'm                                                                  6 months                %      6 months     12 months
                                                                     31 March           Change      31 March  30 September
                                                                         2016                           2015          2015
Revenue                                                                 7 860             10.9         7 089        14 647
Other income                                                               73                             47           129
Operating expenses                                                     (6 162)                        (5 479)      (11 280)
Contingent consideration released                                          66                              -            21
Transaction costs                                                         (11)                           (11)          (15)
Loss on disposal of assets                                                  -                             (1)            -
Operating profit                                                        1 826             11.0         1 645         3 502
Fair value gain on derivative financial instruments                        12                             20            29
Finance income                                                             33                             11            12
Finance cost                                                             (279)                          (228)         (445)
Share of associates' and joint ventures'  net profit after tax             (1)                             2            14
Profit before tax                                                       1 591                          1 450         3 112
Tax expense                                                              (458)                          (447)         (884)
Profit after tax                                                        1 133             13.0         1 003         2 228
Other comprehensive income, net of tax
Items that may be reclassified subsequently to profit or loss
Currency translation differences                                          124                             42           158
Items that will not be reclassified  to profit or loss
Retirement benefit asset                                                   (4)                            11            (6)
Post-retirement medical aid                                                 -                              -             1
Total comprehensive income for  the period                              1 253             18.7         1 056         2 381
Profit after tax attributable to:
Ordinary equity holders of the parent                                     965             16.0           832         1 866
Non-controlling interest                                                  168                            171           362
                                                                        1 133             13.0         1 003         2 228
Total comprehensive income  attributable to:
Ordinary equity holders of the parent                                   1 078             21.9           884         2 010
Non-controlling interest                                                  175                            172           371
                                                                        1 253             18.7         1 056         2 381
Weighted average number of shares  in issue (million)                   1 038                          1 037         1 037
Earnings per share (cents)                                               93.0             16.0          80.2         179.9
Headline earnings per share (cents)                                      93.0             15.8          80.3         179.9
Diluted earnings per share (cents)                                       92.7             15.9          80.0         179.2
Diluted headline earnings per share (cents)                              92.7             15.7          80.1         179.2
Headline earnings (R'm)
Profit attributable to ordinary equity holders                            965                            832         1 866
Headline earnings adjustable items
Loss on disposal of assets                                                  -                              1             -
Headline earnings                                                         965             15.8           833         1 866
Condensed consolidated statement of financial position
as at 31 March 2016
R'm                                                                  31 March         31 March  30 September
                                                                         2016             2015          2015
ASSETS
Non-current assets                                                     14 571           12 218        13 164
Property, plant and equipment                                           7 350            6 389         7 101
Intangible assets                                                       3 673            2 890         2 964
Other non-current assets                                                3 548            2 939         3 099
Current assets                                                          3 054            2 344         2 771
Other current assets                                                    2 441            1 979         1 959
Cash and cash equivalents                                                 613              365           812
TOTAL ASSETS                                                           17 625           14 562        15 935
EQUITY AND LIABILITIES
Capital and reserves
Capital and reserves                                                    5 577            4 790         5 168
Non-controlling interest                                                1 222            1 104         1 280
TOTAL EQUITY                                                            6 799            5 894         6 448
LIABILITIES
Non-current liabilities                                                 6 708            4 387         5 873
Interest-bearing borrowings                                             5 962            3 810         5 263
Other non-current liabilities                                             746              577           610
Current liabilities                                                     4 118            4 281         3 614
Other current liabilities                                               2 155            1 961         2 133
Interest-bearing borrowings                                             1 284            1 754           924
Bank overdraft                                                            679              566           557
TOTAL LIABILITIES                                                      10 826            8 668         9 487
TOTAL EQUITY AND LIABILITIES                                           17 625           14 562        15 935
Condensed consolidated statement of changes in equity
for the period ended 31 March 2016
R'm                                                             Total capital  Non-controlling         Total
                                                                 and reserves         interest        equity
Balance at 1 October 2015                                               5 168            1 280         6 448
Total comprehensive income for the period                               1 078              175         1 253
Profit for the period                                                     965              168         1 133
Other comprehensive income                                                113                7           120
Issue of new shares                                                       230                -           230
Transactions with non-controlling interests                                30              (30)            -
Increase in ownership interest in subsidiaries                            (50)               -           (50)
Distributions to shareholders                                            (897)            (203)       (1 100)
Life Healthcare Employee Share Trust Charge                                16                -            16
Long Term Incentive Scheme charge                                          13                -            13
Purchase of Treasury shares                                               (11)               -           (11)
Balance at 31 March 2016                                                5 577            1 222         6 799
Balance at 1 October 2014                                               4 792            1 108         5 900
Total comprehensive income for the period                                 884              172         1 056
Profit for the period                                                     832              171         1 003
Other comprehensive income                                                 52                1            53
Transactions with non-controlling interests                                (1)               1             -
Increase in ownership interest in subsidiaries                            (27)               -           (27)
Distributions to shareholders                                            (814)            (177)         (991)
Life Healthcare Employee Share Trust charge                               (71)               -           (71)
Long Term Incentive Scheme charge                                           1                -             1
Purchase of Treasury shares                                                12                -            12
Profit on disposal of Treasury shares                                      14                -            14
Balance at 31 March 2015                                                4 790            1 104         5 894
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
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
Condensed consolidated statement of cash flows
for the period ended 31 March 2016
R'm                                                                  6 months                %      6 months     12 months
                                                                     31 March           Change      31 March  30 September
                                                                         2016                           2015          2015
Cash generated from operations                                          1 625              7.2         1 516         3 842
Tax paid                                                                 (398)                          (401)         (903)
Net cash generated from operating activities                            1 227               10         1 115         2 939
Capital expenditure                                                      (345)                          (368)       (1 181)
Investments                                                              (989)                        (1 867)       (1 933)
Other                                                                      (9)                           (49)         (104)
Net cash utilised in investing activities*                             (1 343)                        (2 284)       (3 218)
Interest-bearing borrowings raised                                      1 655                          2 510         4 268
Interest-bearing borrowings repaid                                       (767)                          (619)       (1 860)
Distributions to shareholders                                            (666)                          (814)       (1 520)
Other                                                                    (435)                          (400)         (654)
Net cash utilised in financing activities                                (213)                           677           234
Net decrease in cash and cash equivalents                                (329)                          (492)          (45)
Cash and cash equivalents - beginning of the period                       255                            267           267
Cash balances acquired through business combinations                       54                             19            20
Effect of foreign currency movement                                       (46)                             5            13
Cash and cash equivalents -  end of the period                            (66)                          (201)          255
* The cash utilised in investing activities includes the acquisitions in Poland (R669 million), and the additional
investment in Max Healthcare Institute Limited, India for R320 million.
Segmental Report
The Hospital segment comprises all the private hospitals in southern Africa, the Healthcare Services segment comprises of
Life Esidimeni, Life Occupational Health and Careways Wellness, while the Other segment comprises Corporate.
R'm                                                                  6 months         6 months     12 months
                                                                     31 March         31 March  30 September
                                                                         2016             2015          2015
Operating segments
Revenue
Southern Africa
Hospitals                                                               6 842            6 317        13 133
Healthcare Services                                                       446              417           866
Poland
Hospitals                                                                 572              355           648
Total                                                                   7 860            7 089        14 647
Profit before items detailed below
Southern Africa
Hospitals                                                               1 635            1 542         3 201
Healthcare Services                                                        70               76           157
Other                                                                      77               67           191
Poland
Hospitals                                                                  47               18            54
Operating profit before items detailed below                            1 829            1 703         3 603
Amortisation of intangible assets                                         (65)             (57)         (127)
Contingent consideration released                                          66                -            21
Other                                                                      (4)              (1)            5
Operating profit                                                        1 826            1 645         3 502
Fair value gain on derivative financial instruments                        12               20            29
Finance income                                                             33               11            12
Finance cost                                                             (279)            (228)         (445)
Share of associates' and joint ventures' net profit after tax              (1)               2            14
Profit before tax                                                       1 591            1 450         3 112
Operating profit before items detailed includes the segment's share of shared services and rental costs. These costs are all
at market-related rates.
R'm                                                                  6 months         6 months     12 months
                                                                     31 March         31 March  30 September
                                                                         2016             2015          2015
Total assets before items below
Southern Africa                                                        13 239            9 640        10 710
Poland                                                                  3 481            4 201         4 419
Total assets before items detailed below                               16 720           13 841        15 129
Deferred tax assets                                                       453              260           341
Current income tax asset                                                    -               27            36
Retirement benefit asset                                                  403              400           389
Post-retirement medical aid                                                17               18            17
Derivative financial instruments                                           32               16            23
Total assets per the balance sheet                                     17 625           14 562        15 935
Net debt
Southern Africa                                                         6 342            5 423         5 625
Poland                                                                  1 038              342           307
                                                                        7 380            5 765         5 932
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 investment in Max Healthcare Institute Limited
The Group invested R320 million in Max Healthcare Institute Limited (Max Healthcare) in November 2015, as its contribution to
Max Healthcare's acquisition of Saket City, renamed Max Smart Super Speciality Hospital (Max Smart).
Business combinations
Scanmed S.A. (Scanmed) acquired 100% of both Gastromed REM and Multimedycyna in October 2015 and November 2015 respectively, 
for a total consideration of R31 million. These companies are incorporated in Poland and had no significant contingent 
liabilities at the acquisition date.
On 31 October 2015, Scanmed acquired 100% of the Polska Grupa Medyczna Group (PGM), incorporated in Poland. The Company had
no significant contingent liabilities at the acquisition date.
The following presents the impact of the PGM acquisition on the consolidated information of the Group for the period:
                                                                                                         R'm
Revenue                                                                                                  173
Net profit                                                                                                37
Details of the net assets acquired and goodwill are as follows:
Total purchase consideration                                                                            (685)
Cash portion                                                                                            (614)
Contingent consideration                                                                                 (71)
Fair value of net assets acquired                                                                        223
Goodwill arising on acquisition                                                                         (462)
The contingent consideration is dependent on the business gaining additional contracts in the next 12 - 36 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 acquisition were as follows:          Acquiree
                                                                                                  fair value
                                                                                                         R'm
Inventories                                                                                               12
Trade and other receivables                                                                               56
Trade and other payables                                                                                 (44)
Cash and cash equivalents                                                                                 54
Interest-bearing borrowings                                                                              (47)
Property, plant and equipment                                                                             96
Intangible assets                                                                                        134
Deferred tax                                                                                             (28)
Non-controlling interest                                                                                 (10)
                                                                                                         223
Since the initial acquisition, PGM increased its shareholding in one of its subsidiaries,  
PGM RCM, from 75% to 100%.
Increase in ownership interest as follows:
Total purchase consideration                                                                             (24)
Cash portion                                                                                             (24)
Fair value of non-controlling interest recognised                                                         11
Increase in ownership interest in subsidiaries                                                           (13)
Basis of presentation and accounting policies
The condensed consolidated interim financial statements contained in the interim report are prepared in accordance with the
requirements of the JSE Limited Listings Requirements for preliminary reports, and the requirements of the Companies Act of
South Africa applicable to summary financial statements, and are consistent with those applied in the previous consolidated
annual 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 South African Institute of Chartered Accountants (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.
These interim financial results have been prepared under the supervision of PP van der Westhuizen (CA(SA)), the Chief
Financial Officer of the Group.
Unaudited results
The results for the period ended 31 March 2016 have not been reviewed or audited by the Group's auditors.
The directors take full responsibility for the preparation of the interim report.
Commentary
OVERVIEW
The Group performed well in the six months ended 31 March 2016 with revenue up 10.9%, normalised EBITDA up 9.0% and headline
earnings up 15.8%. The headline earnings increase of 15.8% above the 8.6% level is impacted  by the contingent consideration
released in respect of Polish acquisitions which will no longer be payable. The southern African operations experienced good
activity growth with an overall paid patient day (PPD) growth of 2.7% (2015: 3.5%). This PPD growth was adversely impacted by
the public holidays in March as compared to the same period last year. In line with the Group's Polish strategy it has
invested R740 million in Poland, including the acquisition of PGM. Life Healthcare has also invested a further R320
million in India to fund the Max Healthcare acquisition of Max Smart. The Group's earnings continue to be impacted by the
dilutive effect of the interest cost on the funding of the international investments.
OPERATIONAL REVIEW
Southern Africa
An additional 91 beds (2015: 90) and 17 renal dialysis stations have been added to the business. In the second half of the
year the Group expects to add over 100 beds, of which most will be mental health beds, six renal dialysis stations and one
oncology centre. Activities, as measured by PPDs, increased by 2.7% in the acute business driven largely by the increased
capacity due to the additional beds and an increased length of stay resulting from higher acuity cases. This activity growth
was adversely impacted by the public holidays in March with year to date PPD growth to April 2016 greater than 3.5%.
Occupancies continue to remain high and the overall weighted occupancy for the period was 69.9% (2015: 70.7%). Margins for
the period declined slightly to 27.7% (2015: 28.0%), resulting primarily from Healthcare Services where government contracts
have not been extended and the resulting impact of retrenchment costs. However, the margins in the acute facilities have
remained stable, despite pressures from the weaker rand, salaries and overheads.
The Group continued to provide high-quality clinical care as evidenced by the positive clinical outcomes, hospital-associated
infection rates and patient incident rates in our facilities.
Poland
Executing on the strategy of establishing a comprehensive countrywide network of facilities resulted in the purchase of PGM
for R685 million, which was funded in-country, bringing the total investment in Poland to R2.1 billion 
(30 September 2015: R1.4 billion).
The Scanmed Group now consists of 619 beds, 12 inpatient cardiology centres and 43 medical centres.
The Polish operation's performance is slightly below expectations with EBITDA margins improving to 13.5% (2015: 11.8%).
EBITDA margins were negatively impacted by:
-  slow revenue growth in the first quarter due to low overquota work;
-  the impact of the Easter holidays; and
-  initial integration costs of new business.
India
Max Healthcare continues to grow its hospitals in line with the business plan. The total investment from South Africa into
Max Healthcare is R2.5 billion (30 September 2015: R2.2 billion), including the additional R320 million invested in this
period to fund the Max Smart acquisition. Max Healthcare added 263 operational beds, of which 236 beds were from the
acquisition of Max Smart. Max Healthcare has 2 320 operational beds as at 31 March 2016.
For the period, Max Healthcare grew net revenue by 27.7% and EBITDA increased by 38.7%. The overall EBITDA margin improved
to 10.6% (2015: 9.8%).
The Indian operations continue to grow but the earnings of this business are impacted by both the funding cost and costs of
acquisition and development incurred in respect of the business acquisitions. As these operations continue to ramp up the
earnings will be low.
FINANCIAL PERFORMANCE
Group revenue increased by 10.9% to R7 860 million (2015: R7 089 million) consisting mainly of an 8.2% increase in southern
African revenue to R7 288 million (2015: R6 734 million) and R572 million (2015: R355 million) revenue contribution from
Poland. The southern African Hospital division revenue increased by 8.3% to R6 842 million (2015: R6 317 million) driven by a
2.7% increase in PPDs and a higher revenue per PPD of 5.6%, made up of an average 5.9% tariff increase and a 0.3% negative
case mix impact. Healthcare Services revenue increased by 7.0% to R446 million (2015: R417 million), largely driven by the
acquisition of Careways Wellness in the prior period.
Normalised EBITDA* increased by 9.0% to R 2 099 million (2015: R1 926 million). The EBITDA contribution from Scanmed was R77
million (2015: R42 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                                                                  6 months                %      6 months     12 months
                                                                     31 March           Change      31 March  30 September
                                                                         2016                           2015          2015
Normalised EBITDA
Operating profit                                                        1 826                          1 645         3 502
Contingent consideration released                                         (66)                             -           (21)
Depreciation on property, plant and equipment                             270                            223           445
Amortisation of intangible assets                                          65                             57           127
Other                                                                       4                              1            (5)
Normalised EBITDA                                                       2 099              9.0         1 926         4 048
Normalised EBITDA                                                       2 099              9.0         1 926         4 048
Southern Africa                                                         2 022              7.3         1 884         3 957
Poland                                                                     77                             42            91
CASH FLOW
The Group produced strong cash flows from operations and continues to generate positive free cash flow. The overall net cash
flow position of the Group is negative, as a result of the increasing investing activities, primarily associated with the
continuing international investments. This net cash outflow was funded through raising of debt in South Africa and Poland.
FINANCIAL POSITION
The Group maintains its strong financial position despite the impact of the current economic environment. Net debt to
normalised EBITDA as at 31 March 2016 was 1.73 times (30 September 2015: 1.49 times). The increase in debt is primarily due to the
acquisitions in Poland and funding for the Group's 2016 capital expenditure programme. The bank covenant for net debt 
to EBITDA is 2.75 times.
The additional Max Healthcare investment of R320 million was funded by available cash resources. Poland funded its
acquisitions through the raising of debt in-country.
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.
HEADLINE EARNINGS PER SHARE (HEPS) AND NORMALISED EARNINGS PER SHARE
HEPS increased by 15.8% to 93.0 cps (2015: 80.3 cps), impacted by the contingent consideration released in respect of Polish
acquisitions which will no longer be payable. Earnings per share on a normalised basis, which excludes non-trading related
items listed below and the effect of disposed/closed businesses, where applicable, increased by 8.6% to 87.1 cps 
(2015: 80.2 cps).
R'm                                                                  31 March                %      31 March  30 September
                                                                         2016           Change          2015          2015
Normalised earnings
Profit attributable to ordinary equity holders                            965                            832         1 866
Contingent consideration released                                         (66)                             -           (21)
Other                                                                       5                              -            (5)
Normalised earnings                                                       904              8.7           832         1 840
Normalised EPS (cents)                                                   87.1              8.6          80.2         177.4
Southern Africa Operations (cents)                                       97.3                           89.2         194.1
International Operations (cents)                                          1.3                           (0.3)          1.8
Funding costs (international acquisitions) (cents)                      (11.5)                          (8.7)        (18.5)
CAPITAL EXPENDITURE
During the current financial period, Life Healthcare invested R1 343 million (2015: R2 284 million), comprising capital
projects of R345 million (2015: R368 million), R320 million for the additional investment in Max Healthcare and 
R669 million (excluding the contingent consideration for PGM of R71 million) in new acquisitions by Scanmed. 
The Group has approved R1 billion of its 2016 capital expenditure programme to date.
CHANGES TO BOARD OF DIRECTORS
There have been no changes to the board of directors for the period ended 31 March 2016.
SCRIP DISTRIBUTION AND CASH DIVIDEND ALTERNATIVE
1. Introduction
The board has declared an interim distribution for the period ended 31 March 2016, 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, 17 June 2016.
Shareholders will be entitled, in respect of all or part of their shareholding, to elect to receive a gross cash dividend of
73 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, 17 June 2016 (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 62.05 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 1 048 461 433 as at 10 May 2016. 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, 17 June 2016) in relation to the ratio that 73 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 Wednesday, 1 June 2016.
Where the application of this ratio gives rise to a fraction of a new ordinary share, such fraction will be rounded down to
the nearest whole number, resulting in allocation of whole ordinary shares and a cash payment of a fraction.
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
Monday, 16 May 2016. The salient dates of events thereafter are as follows:
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 Wednesday, 1 June 2016 by 11:00 on       Thursday, 2 June 2016
Announcement published in the press of the ratio applicable to the Scrip  Distribution, 
based on the 15-day volume weighted average price ending on Wednesday, 1 June 2016 on                  Friday, 3 June 2016
Last day to trade in order to be eligible for the Scrip Distribution and the 
Cash Dividend alternative                                                                            Thursday, 9 June 2016
Ordinary shares trade "ex" the Scrip Distribution and the Cash Dividend alternative on                Friday, 10 June 2016
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                                        Friday, 10 June 2016
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, 17 June 2016
Record Date in respect of the Scrip Distribution and the Cash Dividend alternative                    Friday, 17 June 2016
Scrip Distribution certificates posted and Cash Dividend payments made, 
CSDP/broker accounts credited/updated, as applicable, on                                              Monday, 20 June 2016
Announcement relating to the results of the Scrip Distribution and the Cash Dividend alternative 
released on SENS on                                                                                   Monday, 20 June 2016
Announcement relating to the results of the Scrip Distribution and the Cash Dividend alternative 
published in the press on                                                                            Tuesday, 21 June 2016
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                                                               Wednesday, 22 June 2016
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 Friday, 10 June 2016 and Friday, 17 June 2016, 
both days inclusive.
COMPETITION COMMISSION MARKET INQUIRY
Life Healthcare has made detailed submissions on the subject matter of the Market Inquiry. Public hearings commenced in
February 2016 and Life Healthcare has participated in these hearings. We are yet to receive a revised timetable for the
subsequent sets of hearings. This is a large and complex inquiry and Life Healthcare remains committed to participating in
the Healthcare Market Inquiry.
OUTLOOK
In southern Africa the Group will continue to focus on its growth objectives. The Group aims to add over 20 acute hospital
brownfield beds in the next six months. The complementary services business will grow through the addition of 95 mental
health beds, which will only be operational towards the end of the financial year, six renal stations and the addition of an
oncology unit, while a further oncology unit is under construction and will become operational in the 2017 financial year.
There will be increased pressure on costs as a result of the historical weaker exchange rate, wage expectations and other overhead
costs. The Group has implemented measures to mitigate the impact of these pressures and will continue to focus on driving
efficiency programmes.
In Poland, the Group will continue to execute on its strategy of establishing a comprehensive network of facilities and will
explore further acquisition opportunities, while maximising on growth opportunities at existing facilities. The Group will
also continue to focus on improving margins through the driving of further efficiencies, the integration of newly acquired
businesses and alignment to the Group's best operating practices.
The Max Healthcare business will continue to focus on driving revenue through increasing the number of operational beds,
bedding down the Vaishali and Max Smart acquisitions and improving operational efficiencies.
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 10 May 2016 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.
Date
11 May 2016
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.
LIFE HEALTHCARE GROUP HOLDINGS LIMITED
Registration number: 2003/002733/06
Income tax number: 9387/307/15/1
ISIN: ZAE000145892
Share code: LHC
www.lifehealthcare.co.za
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