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LIFE HEALTHCARE GROUP HOLDINGS LIMITED - Unaudited interim results - 31 March 2018, Distribution Announcement, Further Cautionary and Trading Statement

Release Date: 01/06/2018 07:05
Code(s): LHC     PDF:  
Wrap Text
Unaudited interim results - 31 March 2018, Distribution Announcement, Further Cautionary 
and Trading Statement

LIFE HEALTHCARE GROUP HOLDINGS LIMITED
Registration number: 2003/002733/06
Income tax number: 9387/307/15/1
ISIN: ZAE000145892
Share code: LHC

Unaudited interim results - 31 March 2018, Distribution Announcement, Further Cautionary 
and Trading Statement


Highlights

- Revenue +17.5% to R11.3 billion
- Normalised EBITDA +10.5% to R2.7 billion
- Headline earnings per share increased to 53.7 cents +116.5%
- Cash generated from operations +37.3% to R2.7 billion
- Interim dividend of 38 cents per share +8.6%


Condensed consolidated statement of profit or loss and other comprehensive income
for the period ended 31 March 2018
                                                                  2018              %            2017    
                                                                   R'm         change             R'm    
Revenue                                                         11 323           17.5           9 638    
Operating expenses                                              (9 453)                        (7 848)    
Operating profit                                                 1 870            4.5           1 790    
Transaction costs                                                   (8)                          (254)    
Impairment of investments                                          (17)                          (142)    
Profit on disposal of property, plant and equipment                 39                              5    
Fair value adjustment of contingent consideration                    -                            (18)    
Reorganisation and contract mobilisation costs                       -                            (18)    
Fair value loss on derivative financial instruments                 (2)                           (18)    
Other                                                                -                            (19)    
Finance income                                                      26                             30    
Finance cost                                                      (488)                          (713)    
Share of associates' and joint ventures' net loss after tax        (64)                            (9)    
Profit before tax                                                1 356          113.9             634    
Tax expense                                                       (419)                          (331)    
Profit after tax                                                   937          209.2             303    
Other comprehensive income/(loss), net of tax                                                            
Items that may be reclassified to profit or loss                                                         
Movement in foreign currency translation reserve                  (911)                          (638)    
Items that will not be reclassified to profit or loss                                                     
Retirement benefit asset and post-employment medical aid            (4)                            (6)    
Total comprehensive income/(loss) for the period                    22          106.5            (341)    
Profit after tax attributable to:                                                                        
Ordinary equity holders of the parent                              777          439.6             144    
Non-controlling interest                                           160                            159    
                                                                   937          209.2             303    
Total comprehensive income/(loss) attributable to:                                                       
Ordinary equity holders of the parent                             (126)          74.6            (496)    
Non-controlling interest                                           148                            155    
                                                                    22          106.5            (341)    
Weighted average number of shares in issue (million)             1 423           25.6           1 133    
Earnings per share (cents)                                        54.6          329.9            12.7    
Headline earnings per share (cents)                               53.7          116.5            24.8    
Diluted earnings per share (cents)                                54.4          328.3            12.7    
Diluted headline earnings per share (cents)                       53.5          115.7            24.8    
Headline earnings (R'm)                                                                                  
Profit attributable to ordinary equity holders                     777                            144    
Headline earnings adjustable items (net of tax)                                                          
Impairment of investments                                           17                            142    
Profit on disposal of property, plant and equipment                (30)                            (5)    
Headline earnings                                                  764          171.9             281    


Condensed consolidated statement of financial position
as at 31 March 2018
                                                                             31 March    30 September     
                                                                                 2018            2017    
                                                                 Notes            R'm             R'm    
Assets                                                                                                   
Non-current assets                                                             29 873          31 459    
Property, plant and equipment                                                  10 888          11 131    
Intangible assets                                                              14 842          16 281    
Other non-current assets                                                        4 143           4 047    
Current assets                                                                  5 511           5 180    
Cash and cash equivalents                                                       1 722           1 176    
Other current assets                                                            3 789           4 004    
Total assets                                                                   35 384          36 639    
Equity and liabilities                                                                                   
Capital and reserves                                                                                     
Stated capital                                                                 13 455          13 084    
Reserves                                                                          446           1 296    
Non-controlling interest                                                        1 190           1 171    
Total equity                                                                   15 091          15 551    
Liabilities                                                                                              
Non-current liabilities                                                        13 094           9 991    
Interest-bearing borrowings                                          1         10 995           7 786    
Derivative financial instruments                                                  684             749    
Other non-current liabilities                                                   1 415           1 456    
Current liabilities                                                             7 199          11 097    
Bank overdraft                                                                  1 214             450    
Interest-bearing borrowings                                          1          2 204           6 301    
Other current liabilities                                                       3 781           4 346    
Total liabilities                                                              20 293          21 088    
Total equity and liabilities                                                   35 384          36 639    


Condensed consolidated statement of changes in equity
for the period ended 31 March 2018
                                                                 Total           Non-                 
                                                           capital 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 (loss)/income for the period                  (126)           148              22  
Profit for the period                                              777            160             937  
Other comprehensive loss                                          (903)           (12)           (915) 
Issue of new shares as a result of scrip distribution              360              -             360  
Transactions with non-controlling interests                       (107)            21             (86) 
Distributions to shareholders                                     (652)          (150)           (802) 
Life Healthcare employee share trust charge                         22              -              22  
Long Term incentive scheme charge                                   24              -              24  
Balance at 31 March 2018                                        13 901          1 190          15 091  
Balance at 1 October 2016                                        5 486          1 312           6 798  
Total comprehensive (loss)/income for the period                  (496)           155            (341) 
Profit for the period                                              144            159             303  
Other comprehensive loss                                          (640)            (4)           (644) 
Issue of new shares as a result of scrip distribution              490              -             490  
Non-controlling interest arising on restructuring                    -             13              13  
Non-controlling interest arising on business combination             -              3               3  
Increase in ownership interest in subsidiaries                       -           (180)           (180) 
Distributions to shareholders                                     (973)          (165)         (1 138) 
Life Healthcare employee share trust charge                         22              -              22  
Long Term incentive scheme charge                                   22              -              22  
Purchase of treasury shares                                        (13)             -             (13) 
Balance at 31 March 2017                                         4 538          1 138           5 676  


Condensed consolidated statement of cash flows
for the period ended 31 March 2018
                                                                  2018              %            2017    
                                                                   R'm         change             R'm    
Cash generated from operations                                   2 679           37.3           1 951    
Interest received                                                   26                             30    
Tax paid                                                          (548)                          (513)   
Net cash generated from operating activities                     2 157           46.9           1 468    
Capital expenditure                                               (882)                          (603)   
Acquisition of Alliance Medical (net of cash acquired)               -                         (9 932)   
Other investments                                                  (24)                          (109)   
Other                                                              (72)                          (261)   
Net cash utilised in investing activities                         (978)                       (10 905)   
Interest-bearing borrowings raised                               5 102                         16 193    
Interest-bearing borrowings repaid                              (5 386)                        (4 307)   
Dividends paid                                                    (292)                          (484)   
Interest paid                                                     (519)                          (673)   
Other                                                             (161)                          (183)   
Net cash (utilised)/generated in financing activities           (1 256)                        10 546    
Net (decrease)/increase in cash and cash equivalents               (77)                         1 109    
Cash and cash equivalents - beginning of the period                726                           (426)   
Effect of foreign currency movement                               (141)                           (71)   
Cash and cash equivalents - end of the period                      508                            612    


Segmental report 
for the period ended 31 March 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.

Inter-segment revenue of R2 million (2017: R2 million) that is eliminated relates to revenue between Life Employee 
Health Solutions and the southern Africa business, where the need exists.

                                                                                 2018            2017 
                                                                                  R'm             R'm 
Operating segments                                                                                    
Revenue                                                                                               
Southern Africa                                                                                       
Hospitals and complementary services                                            7 796           7 228 
Healthcare services                                                               568             399 
Alliance Medical                                                                                      
Diagnostic services                                                             2 315           1 481 
Poland                                                                                                
Healthcare services                                                               644             530 
Total                                                                          11 323           9 638 
EBITDA                                                                                                
Southern Africa                                                                                       
Hospitals and complementary services                                            1 774           1 661 
Healthcare services                                                                71              59 
Alliance Medical                                                                                      
Diagnostic services                                                               518             410 
Poland                                                                                                
Healthcare services                                                                60              27 
Corporate                                                                         250             261 
Total                                                                           2 673           2 418 

                                                                                 2018            2017    
                                                                                  R'm             R'm    
Depreciation                                                                       
Southern Africa                                                                                          
Hospitals and complementary services                                             (261)           (226)    
Healthcare services                                                               (10)             (7)    
Alliance Medical                                                                                          
Diagnostic services                                                              (226)           (158)    
Poland                                                                                                    
Healthcare services                                                               (29)            (30)    
Corporate                                                                         (22)            (20)    
Total                                                                            (548)           (441)   
EBITA                                                                                                    
Southern Africa                                                                                          
Hospitals and complementary services                                            1 513           1 435    
Healthcare services                                                                61              52    
Alliance Medical                                                                                         
Healthcare services                                                               292             252    
Poland                                                                                                   
Healthcare services                                                                31              (3)    
Corporate                                                                         228             241    
Total                                                                           2 125           1 977    
Amortisation                                                                                             
Southern Africa                                                                                          
Hospitals and complementary services                                              (65)            (65)    
Alliance Medical                                                                                         
Diagnostic services                                                              (180)           (111)    
Poland                                                                                                   
Healthcare services                                                               (10)            (11)    
Total                                                                            (255)           (187)
Operating profit                                                                                         
Southern Africa                                                                                          
Hospitals and complementary services                                            1 448           1 370    
Healthcare services                                                                61              52    
Alliance Medical                                                                                         
Diagnostic services                                                               112             141    
Poland                                                                                                   
Healthcare services                                                                21             (14)    
Corporate                                                                         228             241    
Total                                                                           1 870           1 790   
Transaction costs                                                                  (8)           (254)    
Impairment of investments                                                         (17)           (142)    
Profit on disposal of property, plant and equipment                                39               5    
Fair value adjustment of contingent consideration                                   -             (18)    
Reorganisation and contract mobilisation costs                                      -             (18)    
Fair value loss on derivative financial instruments                                (2)            (18)    
Other                                                                               -             (19)    
Finance income                                                                     26              30    
Finance costs                                                                    (488)           (713)    
Share of associates' and joint ventures' net loss after tax                       (64)             (9)    
Profit before tax                                                               1 356             634    

Operating profit before items detailed includes the segment's share of shared services and rental costs. 
These costs are all at market-related rates.

                                                                             31 March    30 September     
                                                                                 2018            2017    
Total assets before items below
Southern Africa                                                                12 437          12 542    
Alliance Medical                                                               16 600          17 815    
Poland                                                                          2 206           2 280    
India                                                                           2 893           2 960    
                                                                               34 136          35 597    
Employee benefit assets                                                           401             399    
Deferred tax assets                                                               769             608    
Derivative financial assets                                                         2               2    
Income tax receivable                                                              76              33    
Total assets per the balance sheet                                             35 384          36 639    
Net debt                                                                                                 
Southern Africa                                                                 7 750           7 976    
Alliance Medical                                                                3 909           4 276    
Poland                                                                          1 032           1 109    
                                                                               12 691          13 361    
Cash and cash equivalents                                                                                
Southern Africa                                                                  (554)             49    
Alliance Medical                                                                  984             590    
Poland                                                                             78              87    
                                                                                  508             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
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. The individual transactions are not material.

Business combinations
The Group acquired an occupational health and wellness business on 1 October 2017 for a total consideration 
of R28 million (including a contingent consideration of R4.2 million). No significant contingent liabilities 
existed at the acquisition date.


Notes
1. Interest-bearing borrowings
                                                                       R'm          
   Total borrowings at 30 September 2017                            14 087          
   Additional loans raised                                           5 102          
   Repayment of existing loans                                      (5 386)          
   Exchange difference                                                (604)          
   Total borrowings at 31 March 2018                                13 199          

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 Group Chief Financial Officer.

Unaudited results
The results for the period ended 31 March 2018 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's results for the six months ended 31 March 2018 reflect a good performance from the southern African
operations with a return to positive paid patient day (PPD) growth, an excellent turnaround in the Scanmed S.A. 
(Scanmed) operations in Poland and a solid performance from Alliance Medical Group Limited (Alliance Medical) 
in a changing UK environment. Group revenue grew by 17.5%, normalised EBITDA increased by 10.5% and headline 
earnings per share is up 116.5%.

Operational review
Southern Africa
Revenue from the southern African operations increased by 9.7% to R8.4 billion (2017: R7.6 billion). Revenue 
in hospitals and complementary services grew by 7.9%. The business benefited from the 2.0% increase (2017:-1.0%) 
in PPDs and a higher revenue per PPD of 6.0%, made up of a 5.9% tariff increase and a 0.1% positive case mix impact. 
The overall weighted occupancy for the period remained relatively constant at 68.3% (2017: 68.4%), with 88 bownfield 
expansion beds being added. Complementary services continues to reflect good growth across its different business 
lines with revenue increasing by 15.3%. Healthcare services benefited from the acquisition of an occupational health 
and wellness business in October 2017 as well as the return of 700 Gauteng mental health patients.

Normalised EBITDA increased by 5.8% with an EBITDA margin of 25.0% for the period. This is in line with the margin
from H2 2017 (25.0%) but was lower than H1 2017 (26.0%). The EBITDA margin was affected by higher salaries, an increase 
in the clinical division costs, healthcare services growth occurring within the context of lower EBITDA margins and the 
positive impact of a change in case mix.

The Group continues to focus on its quality outcomes with both the overall patient experience score improving and 
the patient incident rate declining, reflecting an improvement in the clinical outcomes.

Alliance Medical
Alliance Medical's revenue increased by 56.3% to R2.3 billion (2017: R1.5 billion) and normalised EBITDA increased 
by 26.3% to R518 million (2017: R410 million) as a result of the inclusion of the six months' results in H1 2018 
(H1 2017: 4.3 months). On a like-for-like basis revenue grew by 7.2% on the back of strong growth in PET-CT volumes, 
the acquisition of Life Radiopharma Group in northern Europe in H2 2017 and solid underlying performance in Italy 
and Ireland. The EBITDA margin declined to 23.1% (2017: 27.7%) on a like-for-like basis, impacted by increased 
competition affecting prices in the UK mobile market, upfront costs on the PET-CT contract as the final static sites 
are rolled out, faster growth in northern Europe which comes off a lower EBITDA margin, as well as the loss of the 
BMI contract in the UK. The focus in the UK continues to be partnership solutions with hospital trusts, progressively 
moving away from mobile infrastructure to static long-term facilities and contracts. Alliance Medical opened its first 
community diagnostic centre (CDC) in March and has contracts signed with an additional nine trusts.

Poland
Scanmed revenue for the period increased by 21.5% to R644 million (2017: R530 million). Normalised EBITDA increased 
by more than 100% to R60 million (2017: R27 million) with the EBITDA margin increasing to 9.3% (2017: 5.1%). 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 NFZ contracts covering 95% of the Scanmed business 
have been concluded at improved average pricing. The prior period also included a downward adjustment to EBITDA of 
R23 million mainly relating to overquota revenue.

India
Max Healthcare Institute Limited (Max Healthcare) reported disappointing results for the six months to March 2018 with
the business negatively impacted by the Shalimar Bagh incident in December 2017 resulting in a knock-on effect on the
balance of the Delhi business. In addition, the increased regulatory environment negatively impacted EBITDA margins. 
The impact on the Group for the period is a R67 million loss compared to a loss of R12 million in 2017. 

Management
The Group is in the process of strengthening its Group executive structure. Dr Shrey Viranna was appointed Group CEO
on 1 February 2018 and since then Brett Mill and Tanya Little have been appointed in executive roles focusing on Group 
integration, business development and analytics.

Financial performance
Group revenue increased by 17.5% to R11.3 billion (2017: R9.6 billion) consisting of a 9.7% increase in southern
African revenue to R8.4 billion (2017: R7.6 billion); R2.3 billion (2017: R1.5 billion) revenue contribution from 
Alliance Medical; and R644 million (2017: R530 million) revenue contribution from Poland.
 
Normalised EBITDA(1) increased by 10.5% to R2.7 billion (2017: R2.4 billion).

(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 and income.

                                      Six months                     Six months     
                                        31 March                       31 March    
                                            2018              %            2017    
                                             R'm         change             R'm    
Normalised EBITDA                                                                  
Operating profit                           1 870            4.5           1 790    
Depreciation                                 548           24.3             441    
Amortisation                                 255           36.4             187    
Normalised EBITDA                          2 673           10.5           2 418    
Southern Africa                            2 095            5.8           1 981    
Alliance Medical                             518           26.3             410    
Poland                                        60          122.2              27    


Cash flow
The Group produced strong cash flows from operations (up 37.3%) due to improved working capital management.

Financial position
The Group has concluded the refinancing of the UK bridge facilities and arranged GBP and EUR facilities for 
corporate requirement purposes.

Net debt to normalised EBITDA as at 31 March 2018 was 2.40 times (30 September 2017: 2.55 times). The bank 
covenant for net debt to EBITDA is 3.50 times (30 September 2017: 3.50 times).

Capital expenditure
During the current financial period, Life Healthcare invested approximately R1 billion (2017: R10.9 billion, 
including the acquisition of Alliance Medical), mainly comprising capital projects of R882 million (2017: 
R603 million). The maintenance capex for the period was R309 million (2017: R327 million).

Headline earnings per share (HEPS) and normalised earnings per share (EPS)
HEPS increased by 116.5% to 53.7 cps (2017: 24.8 cps). EPS on a normalised basis, which excludes non-trading 
related items, increased by 4.0% to 54.2 cps (2017: 52.1 cps).

As a result of the issue of 367 346 939 rights offer shares in April 2017, the weighted average number of shares 
in issue relating to the prior year has been adjusted (increased) to take into account the bonus element due to 
these shares having been issued at a discount. This is in accordance with IFRS.

The effect on the previously reported EPS and HEPS is as follows:
                                                                                           Previously     
                                                            Adjusted                         reported     
                                                            31 March       Impact of         31 March    
                                                                2017      adjustment             2017    
Weighted average number of shares in issue (million)           1 133              79            1 054    
EPS (cents)                                                     12.7            (1.0)            13.7    
HEPS (cents)                                                    24.8            (1.9)            26.7    
Normalised EPS (cents)                                          52.1            (3.9)            56.0    

                                                            31 March                         31 March     
                                                                2018               %             2017    
                                                                 R'm          change              R'm    
Weighted average number of shares in issue (million)(1)        1 423            25.6            1 133    
Normalised earnings                                                                                      
Profit attributable to ordinary equity holders                   777                              144    
Transaction costs                                                  8                              254    
Impairment of investments                                         17                              142    
Profit on disposal of property, plant and equipment              (30)                              (5)    
Fair value adjustment of contingent consideration                  -                               18    
Reorganisation and contract mobilisation costs                     -                               18    
Other                                                              -                               19    
Normalised earnings                                              772            30.8              590    
Normalised EPS (cents)                                          54.2             4.0             52.1    
(1) The weighted average number of shares in issue increased by 25.6% due to the rights offer in April 2017, 
    diluting normalised EPS.

Changes to board of directors
Dr S Viranna was appointed as Group CEO effective 1 February 2018.

Scrip Distribution and Cash Dividend alternative
1. Introduction
   The board has declared an interim distribution for the period ended 31 March 2018, 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, 22 June 2018.
   
   Shareholders will be entitled, in respect of all or part of their shareholding, to elect to receive a gross 
   cash dividend of 38 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, 22 June 2018 (the Cash Dividend). The Cash 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 30.4 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 1 463 979 823 as at 31 May 2018. 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, 22 June 2018) in relation to the ratio that 38 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, 7 June 2018. Where the application of this ratio gives 
   rise to a fraction of an ordinary share, such fraction will be rounded down to the nearest whole number, resulting 
   in allocations of whole ordinary shares and a cash payment for the fraction.
   
   The applicable cash payment will be determined with reference to the VWAP of an ordinary Life Healthcare Group 
   Holdings Limited share traded on the JSE on Wednesday, 20 June 2018, (being the day on which an ordinary Life 
   Healthcare Group Holdings Limited share begins trading 'ex' the entitlement to receive the Scrip Distribution 
   or the Cash Dividend alternative), discounted by 10%.
   
   The applicable cash payment will be announced on Stock Exchange News Service (SENS) on Thursday, 21 June 2018.
   
   Details of the ratio will be announced on the SENS of the JSE in accordance with the timetable that follows.

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 Wednesday, 6 June 2018. The salient dates of events thereafter are as follows:

                                                                                                                  2018    
   Announcement released on SENS in respect of the ratio applicable to the Scrip             
   Distribution, based on the 15-day VWAP ending on Monday, 11 June, by 11:00 on                      Tuesday, 12 June    
                                                                                             
   Announcement published in the press of the ratio applicable to the Scrip 
   Distribution, based on the 15-day VWAP ending on Monday, 11 June on                              Wednesday, 13 June    

   Last day to trade in order to be eligible for the Scrip Distribution and the 
   Cash Dividend alternative                                                                          Tuesday, 19 June    

   Ordinary shares trade "ex" the Scrip Distribution and the Cash Dividend 
   alternative on                                                                                   Wednesday, 20 June    
   
   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                          Wednesday, 20 June    
   
   Announcement released on SENS in respect of the cash payment for fractional 
   entitlements, based on the VWAP traded on the JSE on Wednesday, 20 June 2018, 
   discounted by 10% on                                                                              Thursday, 21 June    
   
   Last day to elect to receive the Cash Dividend alternative instead of the Scrip 
   Distribution, Forms of Election to reach the transfer secretaries by 12:00 on                       Friday, 22 June    
   
   Record Date in respect of the Scrip Distribution and the Cash Dividend alternative                  Friday, 22 June    
   
   Scrip Distribution certificates posted and Cash Dividend payments made, CSDP/broker 
   accounts credited/updated, as applicable, on                                                        Monday, 25 June    
   
   Announcement relating to the results of the Scrip Distribution and the Cash 
   Dividend alternative released on SENS on                                                            Monday, 25 June    
   
   Announcement relating to the results of the Scrip Distribution and the Cash 
   Dividend alternative published in the press on                                                     Tuesday, 26 June    
   
   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, 27 June    

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 Wednesday, 20 June 2018 and Friday, 22 June 2018, 
both days inclusive.

Outlook
Southern Africa
In southern Africa, the Group expects PPDs to continue to grow in line with H1 2018 with continued good growth in
complementary and healthcare services. The Group will continue to take a cautious approach with regard to bed expansion,
aiming to add up to 20 brownfield expansion beds, bringing the total number of beds added in 2018 to approximately 110.
Capex for the year is expected at approximately R1.3 billion. The Group will continue to focus on improving the patient
experience as well as the clinical outcomes and driving operational efficiency.

Alliance Medical
Alliance Medical will continue to execute on its growth strategies in both existing territories and new potential
markets. In the UK, the focus will be on moving to longer-term contracts and on CDC opportunities as the competitive
environment in the mobile business is expected to remain. The good growth in PET-CT volumes is expected to continue in 
H2. Italy will continue to focus on growing its clinic business. Capex for the year, including acquisitions is expected 
to be approximately R1.5 billion.

Poland
Prospects for Scanmed have improved on the back of the new four-year contracts with 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 R53 million.

India
Max Healthcare will continue to focus on operational efficiencies and cost optimisation to mitigate the regulatory
impact as well as focusing on improving revenue from its preferred business channels. Discussions regarding the sale 
of the Life Healthcare equity in Max Healthcare are in progress.

Further cautionary
Further to the cautionary announcement on SENS on 5 April 2018, shareholders are advised that the Company is still in
discussions to dispose of its equity interest in Max Healthcare. The transaction, if successfully concluded, may have 
a material effect on the price of the Company's shares. Accordingly, shareholders are advised to continue to exercise 
caution when dealing in the Company's shares until a further announcement is made.

Trading statement for the 12 months ended 30 September 2018
Life Healthcare's results for the 12 months ended 30 September 2018 are expected to show an increase of at least 20%
in EPS (minimum increase of 12.4 cps to at least 74.6 cps) and at least 20% in HEPS (minimum increase of 15.5 cps to at
least 92.9 cps) from reported EPS and HEPS for the financial year ended 30 September 2017 (EPS: 62.2 cps and HEPS: 77.4
cps). This is primarily due to the inclusion of Alliance Medical for 12 months (2017: 10.3 months), the non-recurring
impact of the transaction costs as well as the funding costs related to the Alliance Medical acquisition and the impairment
of Poland in 2017.

A detailed trading statement will be released in early November 2018. The forecast financial information on which this
trading statement is based has not been reviewed and reported on by the Group's external auditors.

Shareholders are advised that the investor presentation for the six months ended 31 March 2018 is published on Life
Healthcare's website (www.lifehealthcare.co.za).

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 31 May 2018 and signed on its behalf by:

Mustaq Brey            S Viranna
Chairman               Group Chief Executive Officer


Executive directors: S 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, MEK Nkeli, 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
Tel: 011 219 9000

Sponsors: Rand Merchant Bank, a division of FirstRand Bank Limited

Date: 1 June 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.

www.lifehealthcare.co.za 
Date: 01/06/2018 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
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