Half Year Results Presentation

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Half Year Results Presentation

• Ralph Shreeve
• Managing Director

March 2003
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Key Milestones

• Merger of Foundation HealthCare and LifeCare
  Health completed 20th August 2002
• Divestment of La Trobe University Medical Centre
  Bond completed 2nd December 2002
• Sale of La Trobe University Medical Centre
  contracted 24th December 2002 (Completed 2nd
  March 2003)

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Operating Performance

• Performance by line of business

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Consolidated Performance

• Consolidated Performance
• 01 July 2002 31 December 2002

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Assets as at 31 December 2002
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Liabilities as at 31 December 2002
Note Proceeds from the settlement of Cottesloe
have reduced debt by 4.0m
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Equity as at 31 December 2002
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Target Performance for 2nd Half

• Target Performance by line of business
• 01 January 2003 30 June 2003

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Target Consolidated Performance for 2nd Half

• Target Consolidated Performance
• 01 January 2003 30 June 2003

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Projected Annualised Performance

• FY 2002-2003

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Key Performance Indicators

• General Practice

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Key Performance Indicators

• Allied Health Company Owned Practices

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Business Model

• Community healthcare practice manager of choice
  for independent clinicians
• Outsourcing partner for non company owned
  practices

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Strategic Growth Initiatives

• New products
• Effective promotions
• Improved price performance
• Improved clinician productivity
• New clinicians / practices
• Improved IT infrastructure

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New Products

• Corporate Medicine
• Weight Management
• Physical Activity

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Effective Promotions

• Foundation Medical Centres
• Health Checks
• Flu Vaccination
• Asthma
• Diabetes
• Mens Health
• Chicken Pox Vaccination
• Skin Protection

• LifeCare
• Teenagers in Sport
• Over 60 Active

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Improved Price Performance

• Assisting clinicians to adapt their service mix
  to capture higher value
• Assisting clinicians to exert their pricing power
  effectively
• Transition away from HIC rebated services towards
  discretionary consumer expenditure on wellbeing

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Improved Clinician Productivity

• Benchmarking clinician performance
• Dissemination of Top 5 earners performance
• Clinician access to individual statistics
• Achieving Sustainable High Fee Income resource
  developed and distributed to all General
  Practitioners, focusing on
• Price
• Service Mix
• Volume
• Focus on patients per hour within Physiotherapy
  practice
• Improved IT systems and infrastructure

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Attract New Clinicians / Practices

• Generating awareness around IPNs core value
  proposition of clinical independence
• New focus on clinician owned practices
• Conversion of franchising to outsourcing services

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Improved IT Infrastructure

• Decision to implement Monet software across the
  network
• Reliable and scalable utilising robust current
  technology
• Creates central environment for transaction
  processing and customer relationship management
• Improves labour productivity within Centres and
  back-office operations

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Summary

• Debt now at target levels
• Business now operating at 14 EBITDA margins
• Organic growth opportunities within existing
  practices
• Network growth will be pursued under a new model
  without capital