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VALUEGROWTH RESULTS ANNUAL REVIEW 2015

Introducing Maven Dental Group. A new name for Abano’s growing Australian dental network.

At Maven Dental Group, we care about healthy smiles of all ages. We are a network of more than 80 dental practices across Australia with more than 300 dental professionals dedicated to providing the best possible care. Maven Dental Group will be launching to market soon.

Discover new reasons to smile.

A new reason to smile.

Our Business 2

A Year Of Progress 3

FY15 At A Glance 4

Chairman’s Report 6

Management Report 9

Business Overviews 16

Board and Management 24

Five Year Financial Performance 26

We Care 28

We are pleased to present you with the 2015 Abano Annual Review. The full Annual Report which includes the Financial Statements, Corporate Governance Report and other regulatory information can be viewed on our website www.abanohealthcare.co.nz/report.

Trevor Janes Alan ClarkeChairman Retiring Managing Director and Chief Executive Officer

ABANO HEALTHCARE GROUP ANNUAL REVIEW 2015 PAGE 1

OUR BUSINESSAbano is an established NZX-listed opportunity to invest into the private healthcare and medical services sector. We have five businesses in five countries, with over 2,000 employees working in more than 220 locations.

Our investment decisions are based on sound and proven principles:

• Established businesses with the potential to grow

• Operating in scalable markets with sustainable projected growth for our services

• Predominantly funded by private revenue and on a fee for service basis

• Where we can partner with the clinical and management leaders to add value, assist in growth and realise the organisation’s potential

DENTAL 100% OWNERSHIP

LUMINO THE DENTISTS Largest private dental network in New Zealand

MAVEN DENTAL GROUP Second largest dental network in Australia

Investment into dental practice acquisitions, organic growth and building capability

Estimated $11 billion trans-Tasman dental market

AUDIOLOGY 50:50 JOINT VENTURE

BAY AUDIO AUSTRALIA High end hearing solutions provider

BAY AUDIO ASIA Small footprint to test opportunities in emerging market

Investment into greenfield stores and organic growth

Estimated $450 million Australian audiology market

Multi-million dollar market potential in South East Asia

DIAGNOSTICS 71% OWNERSHIP

INSIGHT+ASCOT RADIOLOGYInvestment into high end clinics, leading edge modalities and excellent customer service

Estimated $250 million New Zealand radiology market

PAGE 2 ABANO HEALTHCARE GROUP ANNUAL REVIEW 2015

A YEAR OF PROGRESSINVESTING IN VALUE

CONTINUING OUR GROWTH

DELIVERING RESULTS

GLOBAL DEMAND FOR QUALITY HEALTHCARE SERVICES CONTINUES TO GROW

GROWING OUR TRANS-TASMAN DENTAL NETWORKAdded 20 practices in FY15 173 practices at year-end

RECORD REVENUEREVENUE $222.2MGROSS REVENUE $300.4M

REFOCUSED OUR INVESTMENTPrivate payment, fee for service in scalable marketsDivested pathology and orthotics businesses

GROWING RADIOLOGY DEMANDFor high end technologies and specialist clinics

19% INCREASEIN FULL YEAR DIVIDEND25 CPS

ESTABLISHED NZX LISTED OPPORTUNITYTo invest into targeted and lucrative segments of healthcare market

AUDIOLOGY IMPROVING PERFORMANCEPositive EBITDA after eight years of loss makingThree new greenfield stores for Bay Audio Australia

46% INCREASEIN UNDERLYING NPAT$8.8 MILLIONNet Loss After Tax $1.3 million due to divestment of pathology and orthotics businesses


FY15 AT A GLANCEKEY EVENTSCONTINUING YEAR ON YEAR GROWTH Primarily driven by acquisitions in dental and strong growth from the Australian operations of Abano’s audiology joint venture

DENTAL NETWORK EXPANSION Added 20 practices including 19 acquisitions providing approximately $30 million in additional annualised gross revenues and one greenfield practice

AUDIOLOGY JV GROWTH Opened three new greenfield stores in Australia which are delivering above expectations

AUDIOLOGY IMPROVED PERFORMANCE Bay International achieved positive EBITDA result for the first time after eight years of loss making. Bay Audio Australia reported a maiden NPAT

RADIOLOGY UPWARDS TREND Insight+Ascot Radiology delivered another year of earnings growth with improving revenue from referrals and increasing EBITDA

SHAREHOLDER ACTIVITY Overwhelming support from shareholders for Board and strategy with record turnout at special meeting in June 2014 requisitioned by interests associated with Mr Hutson and Mr Reeves

REFOCUSED INVESTMENT AND SALE OF NON-CORE BUSINESSES Divestment of Orthotics Centre on 30 January 2015 and Aotea Pathology on 1 May 2015, both of which fell outside of Abano’s investment criteria

CEO ANNOUNCEMENT Richard Keys, Abano’s CFO and COO, named as CEO to replace Alan Clarke following his retirement at the upcoming 2015 annual meeting

AUSTRALIAN DIRECTOR APPOINTED Australian-based director, Murray Boyte, appointed to the Board in February 2015

INFINZ WINNER Abano named as winner of the 2015 INFINZ Emerging Leaders Best Corporate Communicator Award

POST PERIOD ENDDENTAL BRAND LAUNCH Announced rebranding of Australian Dental Partners network as Maven Dental Group

DENTAL NETWORK EXPANSION Four practices acquired since year end providing approximately $9 million in expected additional annualised gross revenue


FINANCIAL SNAPSHOT

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Five year performance reflects divestments including sale of shareholding in NHC Group Pty Limited in FY11, sale of brain injury rehabilitation business in FY13, and sale of pathology and orthotics businesses in FY15.

Gross revenue includes the equity accounted jointly controlled Audiology business and Australian dental revenues before payment of dentists’ commissions.

EBITDA is earnings before interest, tax, depreciation and amortisation.

More information on gross revenue, EBITDA, underlying EBITDA and underlying NPAT, which are non-GAAP financial measures, is available at www.abano.co.nz/underlyingearnings and in note 2, Segment Information, of the Financial Statements for the year ended 31 May 2015 available at www.abano.co.nz/latestfinancials.


RECORD REVENUE $222.2 MILLIONRECORD GROSS REVENUE $300.4 MILLION

EBITDA $29.6 MILLIONUNDERLYING EBITDA $30.7 MILLION

NET LOSS AFTER TAX $(1.3 )MILLIONUNDERLYING NET PROFIT AFTER TAX $8.8 MILLION

UNDERLYING EARNINGS PER SHARE 42.56 CPSANNUAL DIVIDEND PER SHARE 25 CPS

■ REVENUE ■ GROSS REVENUE

■ EBITDA ■ UNDERLYING EBITDA

■ NPAT ■ UNDERLYING NPAT

■ DIVIDEND PER SHARE ■ UNDERLYING EPS

CHAIRMAN’S REPORT THE ABANO BOARD IS FOCUSED ON INVESTING IN VALUE, CONTINUING OUR GROWTH AND DELIVERING IMPROVING RESULTS. WE MADE GOOD PROGRESS AGAINST THESE GOALS IN FY15.

“We are investing in value in the private healthcare market where we believe our model of building scale and adding value can help

us capture market share and generate attractive returns for our shareholders.”

The opportunity for Abano is significant with projected demand for quality private healthcare services increasing. Our consistent long term strategy is to invest into scalable businesses, in the private, fee for service healthcare market. This year, we have refocused our investment into private payment sectors where we believe we can add value and deliver attractive returns for our shareholders.

In particular, dental and audiology operate in very large fragmented market places where we see real opportunities to consolidate and generate long term returns. Each of these markets is worth hundreds of millions of dollars, with proven long term and growing demand from private paying customers.

We have the opportunity to increase our share of these lucrative markets by building scale, investing into infrastructure, expanding our resources and realising the benefits of our size over time.

“We are continuing our growth and building scalable businesses in targeted sectors of the private healthcare market.”

We are expanding our businesses in three ways. Through acquisitions in dental, the opening of new greenfield stores in audiology and through organic growth in all three of our business groups including radiology. Our organic growth is coming from extending our existing facilities, expanding the services we offer, improving efficiencies and focusing on driving growth at our existing clinics, practices and stores. As our businesses mature, this is an increasingly important part of our strategy.

Our primary investment focus continues to be into the acquisition growth of our trans-Tasman dental networks, which generated 70% of Abano’s gross revenue in FY15. We are also investing into our audiology joint venture business in Australia with three new greenfield stores opened in 2015, and into an improved customer experience and offer for our radiology group in Auckland.


In FY15, the Board made a decision to divest our pathology and orthotics businesses, both of which fell outside of Abano’s investment criteria due to their high reliance on Government funding and limited scale opportunities.

Our capital structure is efficient and our acquisition growth is predominantly funded by debt. We have strong, long term relationships with our banking partner and during 2015, we extended our bank facilities and improved pricing. At year end we had over $50 million in undrawn facilities, providing headroom for continued investment.

“We are focused on delivering improving results and increasing returns from our businesses.”

The continuing year on year improvement in Abano’s underlying performance is attributable to the long term investment that we have made into creating a strong platform to support the expansion of our group.

As our businesses mature, we are realising the benefits of our size. Our dental businesses now have in excess of $240 million in annualised gross revenues and are generating margins that we expect will improve over the next few years, as scale advantages and benefits from the new Australian dental brand are realised. Bay International achieved a positive EBITDA result in 2015, with Bay Australia delivering a maiden net profit after tax. Meanwhile, demand for our high end radiology services continues to grow.

At the heart of our strategy is putting in place the best people, resources, information systems and infrastructure needed to support the increasing scale of each business. Central to this is a clear picture of where we are going and what the future looks like and we are committed to building an enduring and sustainable business.

DIVIDENDWe have paid a dividend of 21 cents per share for the past six years and our new dividend policy, which we introduced in late-2014 will see even greater returns delivered to our shareholders as underlying earnings grow.

The Directors were pleased to confirm a final dividend for FY15 of 15 cents per share, raising the full year dividend by 19% to 25 cents per share. This is in line with our new dividend policy where, subject to relevant factors at the time, including working capital and growth requirements, the annual dividend paid will be between 50-70% of Underlying NPAT.

CEO TRANSITIONAt last year’s annual meeting, Abano’s chief executive officer, Alan Clarke, announced his plans to retire at the upcoming 2015 annual meeting. Alan has been with Abano since 2000 and has been instrumental in the development and implementation of our long term strategy. He is a passionate advocate for Abano and has overseen the transformation and evolution of our company during his tenure.


His vision was to create a multi-national medical and healthcare business and during his time, Abano has grown from a company generating less than $20 million to one that has over $300 million in gross revenues. Abano is now an organisation of more than 2,000 people providing medical and healthcare services to thousands of people every single day, making a positive difference in their lives.

It is no exaggeration to say that without Alan, there would be no Abano; he has been a driving force in building our company to where it is today and it has been a pleasure working with him. It is perhaps the greatest tribute to Alan that he has attracted and retained such a high quality executive team.

We will take the opportunity to thank Alan and celebrate his achievements at our annual shareholders’ meeting later this year.

The Board was delighted to announce the appointment of Richard Keys, Abano’s chief operating officer and chief financial officer, to the role of incoming chief executive officer. Richard has been with Abano for 13 years and has played a significant role in Abano’s evolution.

Richard has the respect of the Board, our management teams, shareholders and the wider investment community, and the experience, skills and qualities to lead Abano going forward. We were pleased to be able to appoint an internal candidate to the role, which is an endorsement of Abano’s policy to invest in talented people.

BOARD APPOINTMENTAbano’s directors offer a wide range of complementary skills and experience that we believe add value and benefit to Abano as we continue to roll out our growth strategy. We review Board membership regularly to ensure we have the appropriate capabilities on the Board as Abano evolves.

At our most recent review, the Board identified the desirability of appointing an Australian based director, as Abano’s Australian businesses contribute an increasing proportion of our earnings. This led to the appointment of Murray Boyte in February 2015. Murray has considerable experience in the Australian marketplace and has been involved in the growth and evolution of companies in Australia, New Zealand, North America and Hong Kong. Murray will stand for election by shareholders at the 2015 annual meeting and has the unanimous support of the Board.

OUTLOOKDemand for quality private healthcare services is projected to grow and Abano is well positioned to take advantage of this opportunity. We are growing our established businesses in dental, audiology and radiology and we will continue to invest in them to support their future size and scale.

The opportunities ahead are significant and the Board is focused on utilising shareholder capital effectively to maximise growth and shareholder returns.

Trevor Janes Chairman


“Great organisations are built with great care, clear values and people who understand where they are going and what the future they are building looks like. Quick and easy wins are rare and success takes time, patience and tenacity.

Abano is an incredible organisation. The talent we have in each business is humbling and every day we take a step towards our shared vision.

I am delighted to be handing over the helm of Abano to Richard Keys. This very special company needs an intelligent and safe pair of hands and Richard has those.

It has been enormous fun and a privilege to work with our talented teams. Abano has a stunning future and I will watch with great pride as this company grows to reach its potential.

My warmest regards and best wishes to you all.”

Alan Clarke

MANAGEMENT REPORT


The demand for private healthcare services continues to grow. People are living longer as healthier lifestyles and medical advances improve longevity. As people age, they require more healthcare.

People are demanding access to new technologies which can provide better and more accurate diagnosis, and at an earlier stage. They want access to healthcare immediately, not in twelve months’ time when they reach the top of the waiting list, and they want their choice of healthcare provider.

Governments can no longer fund the public appetite and need for all healthcare services and the role of private healthcare providers has become an increasingly important part of the healthcare sector.

“For the past 15 years, we’ve been planning for a future of increasing demand. We have invested in private healthcare and medical services businesses in sectors where we see significant growth potential. In the last year, we have focused on the opportunities in the trans-Tasman dental market, audiology in Australia and SE Asia and radiology in New Zealand.”

We invest into businesses which generate the majority of their income from private payment, either from individuals or their healthcare insurance provider. In FY15, we refocused our investment efforts into dental in New Zealand and Australia, audiology in Australia and South East Asia and radiology in New Zealand.

We have also divested businesses which fall outside our investment criteria. In line with this, in FY15 we divested our pathology and orthotics businesses which were reliant on public funding. The funds received from the sale of these businesses were used to repay debt and will be reinvested into our growth areas.

We will keep investing in our businesses; helping them to grow, building capability and gaining market share. The success of our strategy has been proven a number of times over the last 15 years and we have a track record of increasing shareholder value.

The 2015 financial year was another pleasing year of growth and improving underlying earnings for our company.

Our trans-Tasman dental operations remain our largest revenue earner and in FY15, they provided $211 million in gross revenue and contributed 70% of Abano’s gross revenue. They were also our biggest investment area as we continued to grow our networks through the acquisition of 19 dental practices which are expected to provide approximately $30 million in additional annualised gross revenue, as well as one greenfield location.

Our audiology joint venture, Bay International, turned around its performance and achieved a positive EBITDA for the first time, after eight years of development losses. The Australian audiology business is now performing well with excellent same store growth (22% in local currency) and we opened a further three greenfield stores in FY15.


The very small Bay Audio Asia business is now achieving breakeven at EBITDA, however it is operating in a more challenging marketplace and it will require more time and effort to turn this business around. We have placed it under the management of the Australian team and expect to see improvements in the next financial year.

Insight+Ascot Radiology delivered another year on year steady improvement in both revenue and EBITDA. Revenue continues to grow as demand and referrals increase for the business’ high end imaging modalities and specialist services across its five Auckland clinics.

FINANCIAL PERFORMANCE

We continued delivering year on year growth in FY15 with record revenues, a 46% increase in Underlying NPAT to $8.8 million and an increased full year dividend of 25 cents per share.

The FY15 results reflect the divestment of the orthotics and pathology businesses during the year and the corresponding loss in earnings contribution following each business sale. These businesses were sold for $11.1 million and with the resulting $9.0 million non-cash loss and reduction in goodwill, Abano reported a Net Loss After Tax of $(1.3) million.

Underlying Net Profit after Tax was $8.8 million, up 46% on last year.

FY15 revenue and gross revenue of $222.2 million and $300.4 million respectively were both up on last year. The increase was primarily driven by our expanding dental business and strong growth from the Australian audiology operations.

The majority of our revenue was from our dental sector which provided 70% of gross revenue, with audiology providing 13%. Diagnostics, which included radiology and the divested pathology business, provided 14% and the rehabilitation sector, which was the orthotics business which was divested in January 2015, provided 3%.

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GROSS REVENUE REVENUE SOURCE: CONTINUING OPERATIONS

GROSS REVENUE SPLIT FY15

DENTAL 70%

AUSTRALIA OFFICE OF HEARING SERVICES

5%

MOH/DHB/ACC/OTHER3%

DIAGNOSTICS 14%

AUDIOLOGY13%

REHABILITATON 3%

■ DENTAL ■ DIAGNOSTICS ■ REHABILITATION ■ AUDIOLOGY

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PRIVATE PAYMENT 92%


Following the business sales, we now expect that more than 60% of our revenue will be generated offshore, with the majority of this in Australia. Importantly, the divestments significantly reduce our reliance on public funding. Moving forward, more than 90% of our revenue will be from private sources with less than 3% derived from New Zealand public contracts in radiology and 5% derived from Australian public funding, primarily in audiology.

Our EBITDA and Underlying EBITDA continue to steadily improve. Dental, audiology and radiology all maintained or improved margins during the year, with EBITDA of $29.6 million. Underlying EBITDA, which also excludes acquisition costs, was $30.7 million.

Underlying earnings are the measure used within the company to evaluate performance. Underlying NPAT is the basis for the Company’s dividend policy and the Board believes it provides a more appropriate representation of Abano’s performance.

We maintain an efficient balance sheet with effective use of funds and have strong relationships with our banking partners. During the year, we re-negotiated our banking facilities to extend the tenure and achieve more favourable pricing. Year-end net bank debt was $86.1 million and as at 31 May 2015, we had undrawn facilities of over $50 million, providing headroom for continued growth.

We have a lean management structure, with each of Abano’s businesses run as a standalone operation with oversight from the Abano executive team.

The clinical and management skills of the people in our businesses are essential to our success and we will continue to invest to help them realise their potential. Our thanks go to all Abano’s employees for their professionalism, commitment and dedication to their disciplines, organisations and to their clients.

OPERATIONAL REVIEW

DENTAL 70% OF ABANO’S GROSS REVENUE FY15 GROSS REVENUE $211.1M UNDERLYLING EBITDA $25.1M

The trans-Tasman dental market is worth approximately $11 billion and Abano’s dental group is the second largest in Australasia. There are a number of market factors which make this an attractive sector for us including minimal reliance on public funding, a large pool of practices for acquisition, a growing number of female dentists wanting flexible working conditions, dentists offering a greater range of services and long term growth trends as better oral health practices lead to retention of natural teeth.

We have also focused on private paying patients who generally form long term relationships with their dentist. This approach avoids the risks and volatility associated with government funded dental contracts.

Our focus is on growth, primarily through the acquisition of established practices that provide immediate accretive earnings.


During the year, we added 20 practices to our dental group, including the acquisition of 19 practices expected to provide approximately $30 million in additional annualised gross revenue and the opening of a greenfield practice in New Zealand.

On average, we are acquiring one practice every two to three weeks and we expect this growth rate to continue. Following the acquisition of four practices in the first two months of this financial year, we now have 177 practices providing over $240 million in annualised gross revenues.

In New Zealand, Lumino again achieved compounding same store sales growth, with a 3.2% increase in same store revenue, while the performance of our Australian dental network Australia was flat, reflecting Australia’s economy which is growing at below historical trend rates.

We are continuing to invest into infrastructure and capability to support the growing size of our dental networks. We expect to see EBITDA margins improve incrementally in dental, however investment spend on branding and infrastructure will limit the rate of increase in the near term.

Lumino is a more mature business than our Australian business with a well-established business structure in place. We are continuing to build on this by introducing new initiatives such as our LuminoGo clinical development programme for our younger dentists.

Lumino holds a leadership position in New Zealand and we continue to attract new patients through our highly successful marketing and brand campaigns, such as the popular and very successful 18 months interest free offer on Qcard.

Our Australian group is the second largest dental network in Australia and continues to grow. We have been investing into infrastructure to support this growth. In the last year, we further strengthened the leadership team with the appointment of a new General Manager Operations and General Manager Marketing.

We are excited to have recently announced the launch of a new national brand for our business in Australia. Dental Partners is now known as Maven Dental Group, with the choice of name being finalised after an extensive and careful selection process involving members of our Australian Clinical Advisory Committee, the senior management team and branding experts. This new name will allow us to collectively promote the strengths of our practices, as we have done with the Lumino brand, and enable us to stand out in the very large, competitive and fragmented dental market.

Maven is an ancient word meaning “a trusted expert in a particular field, who seeks to pass knowledge on to others”. It represents the people and the values within the organisation. Our goal is for it to become as well known in Australia as our Lumino brand is in New Zealand.

Lumino has now achieved 50% unprompted brand awareness, which means that one in every two New Zealanders knows the Lumino name. Prompted awareness has increased to 85%. It will take us several years to achieve these market characteristics for Maven Dental Group in Australia but we have made a good start with the commencement of the branding strategy.

The trans-Tasman dental market provides a large and exciting opportunity for Abano and we are well positioned to take advantage of this through our two well established dental networks.


AUDIOLOGY 13% OF ABANO’S GROSS REVENUE FY15 GROSS REVENUE $40.1M UNDERLYLING EBITDA $2.0M

The audiology market in Australia is predominantly privately funded, with some public funding from the Office of Hearing Services. The baby boomer population, better technology and the growing acceptance of the use of hearing devices are all pushing up demand.

Australia is a sophisticated market with a number of competitors and Bay Audio is positioned as a high end, customer focused retail business. Meanwhile, South East Asia is an emerging market, still very under-developed compared to other countries but with significant growth opportunities.

Abano’s joint venture audiology business, Bay International, the parent company for the Australian and Asian audiology businesses, provided 13% of gross revenue for FY15 and, after eight years of development losses, it achieved a positive EBITDA, with strong growth continuing into the current year.

Bay Audio Australia, which represents 85% of audiology’s revenues, delivered a maiden net profit after tax in FY15, with same store revenue growth of 22% in local currency in a market that we believe saw less than 6% growth. Three new greenfield stores were opened and are delivering above expectation. The very small Bay Audio Asia business is now achieving breakeven at EBITDA in a more challenging marketplace.

We expect to see continued improvements from our Australian audiology joint venture, with a further three new stores planned to open in the first half of FY16, continuing double digit revenue growth and a full year profit. Bay Audio’s Asian businesses, which are now under the oversight of the Australian management team, will focus on delivering a breakeven performance.

DIAGNOSTICS 14% OF ABANO’S GROSS REVENUE FY15 GROSS REVENUE $41.5M UNDERLYING EBITDA $7.6M

Our third sector is diagnostics. In FY15, this included 11 months of earnings from the pathology business which was sold on 1 May 2015. The sector now comprises our Auckland based radiology business, Insight+Ascot Radiology.

The radiology market is highly specialised and dominated by a small number of private practice groups. Medical advances in radiology are providing improved diagnosis for patients and at an earlier stage, often leading to better outcomes. These new technologies are also driving industry change as patients and referrers opt for providers that are able to offer these high end modalities such as PET CT scanning and digital mammography.

Our radiology revenue continues to grow as demand and referrals increase for the business’ high end imaging modalities and specialist services across its five Auckland clinics.

We restructured our customer support function in FY15, leading to significant improvements and we are upgrading our Ascot Hospital clinic this year to provide better patient flow and access to services. We are also investing into the latest digital tomosynthesis mammography equipment which provides high-resolution breast imaging and will double capacity in mammography which is one of Insight+Ascot Radiology’s biggest growth areas.


OUTLOOKThe demand for private healthcare and medical services will continue to grow as aging populations, costly new technologies and medical advances put pressure on public healthcare services. Abano is an established NZX-listed opportunity to invest into the healthcare and medical services market.

Dental will remain our primary focus as we continue to build market share by investing into both organic and acquisition growth, as well as realising scale benefits across our substantial trans-Tasman group. We now have an established platform in place to support our ongoing expansion into the NZ$11 billion trans-Tasman dental market, with our focus on private payment for our services delivering long term patient relationships. While the market in Australia is currently soft, particularly for mid to high end treatments, we believe that the market characteristics and long term growth opportunities in both markets remain very attractive.

Dental acquisition growth has continued in the first two months of the 2016 financial year with the acquisition of four practices delivering approximately $9 million in additional annualised gross revenues. These take Abano’s trans-Tasman dental group to 177 practice locations across Australia and New Zealand, with total estimated annualised gross revenues for the dental group now in excess of $240 million.

In New Zealand, Lumino’s nationwide brand and marketing activity is an established and integral part of the business’ success and we will continue to use advertising to drive demand. We will commence the rollout of the Maven Dental brand across our Australia dental network in the next few months and expect the majority of our practices to be branded over the next two to three years.

Our moderate level of investment into audiology greenfield stores will continue and we anticipate continued improvements from our Australian audiology joint venture, with three new stores planned to open in the first half of FY16, and continuing double digit revenue growth. Bay Audio’s Asian businesses, which are now under the oversight of the Australian management team, will focus on achieving a more consistent performance and a breakeven result for FY16. We expect the audiology group to deliver a full year net profit after tax for FY16.

Our radiology business is seen as a leading provider for specialist referrers and we will continue to build relationships with these key stakeholders. This year there will be a continuing focus on improving the customer experience and we will also be investing in new leading edge mammography technology.

Over 60% of Abano’s gross revenues are now expected to be generated in Australia and while economic conditions remain relatively stable in New Zealand, the growth rate of the Australian economy is below historical trends. We have a long term investment view and the volatility of the short term economic conditions have not altered our strategy.

Abano is in excellent shape to continue its growth and the change in leadership later this year heralds a new and exciting stage in Abano’s journey. We invite you to attend our annual meeting later this year and we thank our shareholders for your continued support.

Alan Clarke Richard Keys Retiring Chief Executive Officer Chief Operating Officer and Chief Financial Officer Incoming Chief Executive Officer


ABANO HEALTHCARE GROUP ANNUAL REVIEW 2015

DENTAL

HIGH VALUE BRANDLUMINO PROMPTED BRAND AWARENESS 85%18% INCREASE IN ONLINE APPOINTMENT REQUESTS FOLLOWING LAUNCH OF NEW LUMINO WEBSITE

LUMINO THE DENTISTS AND MAVEN DENTAL GROUP

CHANGING WORKFORCEGROWING NUMBER OF FEMALE DENTISTS ATTRACTED TO FLEXIBLE WORKING CONDITIONS AVAILABLE IN CORPORATE DENTAL MODEL

▲

100% OWNERSHIP

+

LONG TERM GROWTH TREND IN DENTISTRY

BETTER ORAL HEALTH AND RETENTION OF NATURAL TEETH; MORE SERVICES ON OFFER; INCREASING DEMAND FOR COSMETIC SERVICES

TRANS-TASMAN DENTAL MARKET WORTH APPROXIMATELY

NZ $11 BILLION

+

GROSS REVENUE $211.1M12% INCREASE FY14:FY15

UNDERLYING EBITDA $25.1M13% INCREASE FY14:FY15

HUGE POOL OF PRACTICESFOR ACQUISITION AND ONGOING EXPANSION OF ABANO’S DENTAL NETWORKS ON BOTH SIDES OF THE TASMAN

MORE THAN 14,000DENTAL PRACTICES

PREDOMINANTLY PRIVATELY FUNDEDMINIMAL RELIANCE ON GOVERNMENT FUNDED CONTRACTS; PAYMENT FROM PATIENTS AND HEALTH INSURANCE

0000 0000 0000 0000

SECOND LARGEST AUSTRALASIAN DENTAL GROUP177 PRACTICES AT 31 JULY 2015 647 DENTISTS AND 1,766 STAFF 860,000 PATIENT VISITS IN FY15

MAVEN DENTAL GROUPMaven Dental Group (previously named Dental Partners) is the second largest dental network in Australia with 82 practices as at end-May 2015. The business is still relatively young and is in an accelerated growth phase. A significant investment has been made into capability and resource over the last two years to position the business for future growth. The next step in our journey is to activate and rollout the new brand for the business, which will allow us to then leverage the scale and breadth of our network.

Our continuing focus in FY15 was on growth by acquisition and we also strengthened the executive team, led by Malcolm Lean. This included the appointment of two new senior managers and establishing our marketing team, ahead of our brand launch and rollout which is about to commence.

As we expand our network, it is important to build the culture of the group and encourage sharing of knowledge and collaboration. In FY15, we held our first Lead Dentist conference, with over 70 Lead Dentists attending and participating in forums on leadership, practice management and people.

We are also utilising technology to drive efficiencies within our group and introduced a new HR Information Management system as well as rolling out Unimarket – an online ‘marketplace’ which gives our practices more buying power and has been in use by Lumino since 2010.

Best practice and clinical excellence are at the heart of all we do and many of our practices have elected to undertake a voluntary accreditation process recently introduced by the profession.

In FY16, Maven Dental Group will be focused on accelerated network growth, the activation and initial rollout of the new brand, learning and mentoring, and business efficiencies.

82 PRACTICES AS AT END-MAY 2015

ESTIMATED 1.4% MARKET SHARE

HUGE MARKET POTENTIAL

SECOND LARGEST DENTAL CONSOLIDATOR IN AUSTRALIA

ACCELERATED GROWTH STRATEGY BY ACQUISITION

PREDOMINANTLY PRIVATE PAYMENT

ADVANTAGES• Focus on private payment

• Benefits of scale

• Rollout of national brand to take advantage of network size

• Ability to share knowledge and learn from successes in New Zealand market

HIGHLIGHTS FY15• Acquisition of 8 practices expected to provide

A$16.0 million in additional annualised gross revenue

• FY14:FY15 flat same store sales

• Continued investment into capability and resources

• Appointment of General Manager Operations and General Manager Marketing

• Development of national brand strategy and new brand identity

FOCUS FY16• Continue growth primarily through acquisition

and through organic growth and expansion

• Increased focus on recruitment and retention

• Activation and rollout of the new Maven Dental Group brand

• Investment into IT to improve collection and analysis of data from across the group

• Investment into our people with additional training, career development and leadership opportunities


LUMINO THE DENTISTSLumino The Dentists is New Zealand’s largest private dental network with 91 practices as at end-May 2015. The business is focused on delivering quality clinical care and has a well-established business model after 13 years of investing into growth.

Lumino’s reputation is built on the quality and clinical excellence delivered by its people, led by Lumino CEO, Andy Tapper. In FY15, a number of initiatives were launched to reward staff and provide them with clinical training and career development opportunities.

As its reputation grows, more dentists are looking to join Lumino with an increasing number of dental specialists joining the group. Lumino now has three large specialist orthodontic practices in Auckland, Wellington and Christchurch and recently acquired one of Auckland’s leading oral and maxillofacial surgery practices.

While the Lumino network continues to grow through acquisition, it is now at the stage in branding and maturity where there is an increasing focus on driving same store growth through increasing new patient visits, adding capacity and delivering enhanced productivity. We have Lead Dentists in place at all our practices, with some Lead Dentists overseeing a cluster of practices.

In 2011, Lumino broke new ground in New Zealand and became the first ever dental brand to advertise nationally on TV. It is now one of New Zealand’s most well known healthcare brands, with 85% prompted awareness, an extraordinarily high figure. We continue to focus on marketing our brand with offers such as 18 months interest free and $69 dental exam and x-ray. For every $1 we invest into marketing, we estimate we generate approximately $5 in revenue.

In FY16, Lumino will be focused on continued network growth, marketing to acquire new patients, investing in people and driving business efficiencies.

91 PRACTICES AS AT END-MAY 2015 ESTIMATED 12 – 15% MARKET SHARE

SIGNIFICANT MARKET POTENTIAL

LEADERSHIP POSITION

GROWTH STRATEGY BY ACQUISITION

PREDOMINANTLY PRIVATE PAYMENT

ADVANTAGES• Strong infrastructure and culture across the group

• Benefits of scale including procurement, recruitment and training

• Indepth knowledge base and industry experience

• Innovative marketing campaign and ability to leverage national brand presence

HIGHLIGHTS FY15• Added 12 practices including one greenfield

practice

• Launch of Lumino employee remuneration, long service reward and training programmes

• New appointments to Clinical Advisory Board

• Further savings in material and laboratory costs

• Prime Minister’s Scholarship awarded to Lumino CEO, Andy Tapper

• Launch of updated Lumino website

• Continued retention of dentists completing their earn-out period

• FY14:FY15 same store growth of 3.2%

FOCUS FY16• Continue growth through acquisition with an

increasing focus on organic growth

• More emphasis on clinical development training

• Appoint Training and Development Manager

• Roll out new Lumino advertising campaign to continue to drive customer demand

• Launch initiatives to improve access for customers such as 12 month payment plan

• Increased focus on Health and Safety


FOR THE THIRD YEAR RUNNING, LUMINO THE DENTISTS AND KIDSCAN TEAMED UP FOR AN ENTIRE DAY TO PROVIDE FREE DENTAL TREATMENTS TO THOSE IN NEED THROUGHOUT NEW ZEALAND, TREATING OVER 550 PATIENTS AND DONATING MORE THAN $200,000 OF FREE DENTAL CARE


AUDIOLOGYBAY INTERNATIONAL JOINT VENTURE: BAY AUDIO IN AUSTRALIA AND SOUTH EAST ASIA

50:50 JOINT VENTURE

AUSTRALIA: MATURE AND SOPHISTICATED MARKETCOMPETITIVE AND HIGHLY CORPORATISED; APPROXIMATELY 30 - 35% OF HEARING IMPAIRED USE A HEARING DEVICE

AUSTRALIA END USERONE IN SIX PEOPLE SUFFER HEARING LOSS

MORE THAN 75% OF POPULATION AGED 70+ YEARS ARE HEARING IMPAIRED

AVERAGE AGE OF FIRST TIME USER IS 69 YEARS

SOUTH EAST ASIA: EMERGING MARKET

THE AUDIOLOGY MARKETMAIN MARKETS ARE STILL OECD COUNTRIES BUT INCREASING DEMAND FROM POPULATIONS IN EMERGING COUNTRIESPOPULATION BOOM IN 45 - 55 YEAR OLDS WITH NOISE INDUCED HEARING LOSS; LAUNCH OF HIGH VALUE, HIGH MARGIN HEARING DEVICES WITH SIGNIFICANT INPROVEMENTS IN END-USER BENEFITS; TECHNOLOGY IMPACTING THE TRADITIONAL SALES MODEL

GROSS REVENUE $40.1M27% INCREASE FY14:FY15

UNDERLYING EBITDA $2.0MINCREASE FY14:FY15


BAY AUDIOThrough Abano’s investment in Bay International, we have two audiology networks. Our primary network is in the sophisticated Australian market and we have a very small group of stores in South East Asia, where we are testing the opportunity.

We have a retail model, with our audiology stores located in high traffic shopping malls and retail locations. The Australian management team, led by Eron Plumb, has extensive retail experience and this is reflected in the business’ improving performance.

Our proprietary self test touch screen hearing test is an important lead generator for the business and allows our team to conduct hearing tests offsite and refer customers back to a Bay Audio store if further diagnosis or assistance is required.

In Australia, we are now generating an average of 5,500 self test touch screens per month from locations as diverse as the Royal Easter Show and Bathurst, as well as through our partnerships with Terry White Chemists and Quality Pharmacy Group. FY15 was a ground breaking year for Bay Australia as we achieved three record breaking months and a maiden net profit after tax.

Asia is an immature market in regards to hearing care and the retail audiology model is a new one for the region. Our first challenge is to educate consumers about hearing care and solutions and then encourage them to visit our stores. The business now reports to the experienced Australian management team and we are focused on achieving a breakeven at EBITDA for this business.

In FY16, we expect to see continued improvements from Bay Audio Australia, with continuing double digit revenue growth and a full year profit. A further three greenfield stores are planned to open in the first half FY16.

36 STORES ACROSS AUSTRALIA, WITH 31 OF THESE IN RETAIL MALLS PLUS MOBILE LOCATIONS

ESTIMATED MARKET SHARE IN EXCESS OF 3%

SOPHISTICATED AND MATURE MARKET

EXPANDING RETAIL FOOTPRINT

TARGETED GROWTH THROUGH ORGANIC EXPANSION AND GREENFIELD DEVELOPMENT

PRIVATE PAYMENT WITH SOME PUBLIC FUNDING

14 STORES IN TAIWAN, 4 IN SINGAPORE AND 3 IN MALAYSIA

SIGNIFICANT UNTAPPED MARKET POTENTIAL

SMALL INVESTMENTS INTO TEST MARKETS

VERY SMALL PART OF BAY INTERNATIONAL GROUP

PRIVATE PAYMENT

BAY A

UDIO

AUS

TRAL

IABA

Y AUD

IO A

SIA

ADVANTAGES• Appealing retail environment• Indepth industry knowledge• Innovative marketing and sales strategy• Proprietary mobile touch screen testing technology

ADVANTAGES• Introducing a new way for consumers to access

hearing health in Asia• Industry knowledge and experience• Independent of manufacturing chains• Local teams in each market

HIGHLIGHTS FY15• Australian same store growth of 22% in local

currency• Australia: Opened three new greenfield stores

and relocated two non-retail stores into retail centres

• Partnered with Quality Pharmacy Group as their hearing health partner for their group of pharmacies in Victoria, Australia

FOCUS FY16• Continued growth by delivering great

customer service• Improve business productivity• Open additional greenfield stores in Australia• Asia: Focus on breakeven performance at

EBITDA


DIAGNOSTICSINSIGHT+ASCOT RADIOLOGY

CHANGING INDUSTRY DYNAMICSMARKET DOMINATED BY PRIVATE PRACTICE GROUPSAPPROXIMATELY 100 - 150 INDIVIDUAL RADIOLOGY CLINICS IN NEW ZEALAND; INCREASING CONSOLIDATION OF THE MARKET

NEW TECHNOLOGIES DRIVING INDUSTRY CHANGEPET-CT SCANNING FOR CANCER DIGITAL BREAST MAMMOGRAPHY MRI GUIDED BREAST BIOPSYMOVE FROM FILM TO DIGITAL IMAGES; GREATER COLLABORATION WITH OTHER CLINICIANS IN PATIENT TREATMENT; INCREASING DEMAND FOR RADIOLOGISTS WITH SUB-SPECIALITIES

GROWING DEMANDMEDICAL ADVANCES AND NEW TECHNOLOGY PROVIDING IMPROVED DIAGNOSIS AND AT AN EARLIER STAGEAGING DEMOGRAPHICS PUSHING UP DEMAND

* INCLUDES PATHOLOGY BUSINESS WHICH WAS SOLD ON 1 MAY 2015

DIAGNOSTICS PERFORMANCEGROSS REVENUE $41.5M*

3% DECREASE FY14:FY15

UNDERLYING EBITDA $7.6M*

3% DECREASE FY14:FY15

71% OWNERSHIP

POSITIVE UPLIFT IN RADIOLOGY REVENUE AND EBITDA


INSIGHT+ASCOT RADIOLOGYInsight+Ascot Radiology is a high end radiology provider with five leading edge clinics across Auckland and a team of highly respected radiologists led by Dr David Rogers. We offer a full range of modalities and as well as traditional radiology services such as x-ray, CT and MRI, we also offer PET CT scanning and have a specialist breast imaging clinic.

We are a preferred provider for a number of medical specialists, due to the expertise of our radiologists and our investment into high end scanning technologies. In addition, we are an Affiliated Provider for a number of services for Southern Cross and hold a limited number of publicly funded contracts, including a shared, three year PET CT contract for the Auckland DHB.

We began our investment into improved customer service in FY15 with the introduction of a centralised call centre which has delivered significant improvements. We also closed our small Greenlane Imaging hospital clinic and transferred our privately referred patients to our Ascot clinics.

In FY16, we will be continuing to improve our customer service delivery including upgrades at several clinics to improve the customer experience. We are also investing into digital tomosynthesis mammography imaging, which can provide a higher diagnostic accuracy compared to conventional mammography. This will double the capacity in mammography, which is our largest growth area.

FIVE LEADING EDGE CLINICS LOCATED ACROSS AUCKLAND

GROWTH THROUGH ORGANIC EXPANSION OF SERVICES AND CLINICS

65% PRIVATE PAYMENT OR PRIVATE INSURANCE; REMAINDER THROUGH MOH AND ACC

71:29 PARTNERSHIP WITH 14 RADIOLOGIST PARTNERS

ADVANTAGES• World class clinics

• Leading edge imaging technologies

• Team of expert and highly respected radiologists

• Excellent relationships with referrers

HIGHLIGHTS FY15• Investment into improved customer services and

support delivering significant improvements

• Experienced strong growth in PET CT referrals

• Second year of three year PET CT contract with Auckland DHB

• Received Affiliated Provider status for Southern Cross for CT, MRI, PET CT, Cardiac CT and Mammography

• Closure of Greenlane Imaging and transfer of private business to spare capacity at Ascot Central

• Stable radiologist partnership

FOCUS FY16• Complete upgrades and renovations at existing

clinics

• Commission new tomosynthesis mammography equipment

• Continued increase in referrals


BOARD AND MANAGEMENT 1. TREVOR JANES CHAIRMAN / APPOINTED 23 SEPTEMBER 2005Trevor Janes is an experienced director and holds a number of board positions with private and public companies. His career has been in investment banking and financial analysis and his governance experience and financial acumen are of value to Abano as we continue to implement our growth strategy. Trevor is responsible for fostering a culture of constructive governance at Abano where the best interests of the company is at the forefront of all decision making.

2. SUSAN PATTERSON DEPUTY CHAIRMAN / APPOINTED 23 SEPTEMBER 2005Susan has many years’ board experience and holds a number of directorships in New Zealand. As well as previously owning her own pharmacy, she has significant governance and management experience, including in the health sector, and is Chair of Abano’s Remuneration Committee.

3. DANNY CHAN INDEPENDENT DIRECTOR / APPOINTED 19 DECEMBER 2008Danny is an experienced New Zealand director and has extensive commercial expertise in Asia. This, along with his accounting, finance and investment management and education experience are of great benefit to the Abano Board as the company looks to take advantage of opportunities in the Asian region.

4. TED VAN ARKEL INDEPENDENT DIRECTOR / APPOINTED 5 JULY 2011Ted is an experienced director and is on the board of some of New Zealand’s largest listed companies. He has extensive operational, retail and consumer sales experience and has worked with a number of growth companies to help them to grow and achieve their goals. This is of value to Abano as we continue to focus on building our businesses in the private healthcare sector.

5. PIP DUNPHY INDEPENDENT DIRECTOR / APPOINTED 25 SEPTEMBER 2012 Pip has worked in the New Zealand financial markets for over 20 years, with a number of New Zealand and offshore companies, in the areas of capital raising and risk management. Pip has wide governance experience including the health sector. She is Chair of the Risk Assurance and Audit Committee and provides expert oversight of Abano’s financial reporting and risk management.

Abano’s Corporate Governance Report for 2015 can be read on pages 46 to 51 of the Financial Statements in the Annual Report.

1 2 3 4 5


6 7 8 9 10

6. MURRAY BOYTE INDEPENDENT DIRECTOR / APPOINTED 26 FEBRUARY 2015 Murray Boyte resides in Australia and has extensive operating and strategic experience in the trans-Tasman business market as well as a sound understanding of the Australian and New Zealand investment market and regulatory framework. He was appointed to the Board earlier this year as Abano’s Australian businesses continue to provide a growing percentage of the Group’s earnings.

7. ALAN CLARKE RETIRING CEO AND MANAGING DIRECTOR / TERM OF EMPLOYMENT: FROM MAY 2000 Alan has been instrumental in the development and implementation of Abano’s successful growth strategy. He will be retiring as CEO and from the Board at the 2015 Annual Meeting. Alan has held a number of a number of senior management positions and directorships for public and private companies in both New Zealand and overseas and has extensive experience in the healthcare sector.

8. RICHARD KEYS CHIEF OPERATIONS MANAGER AND CHIEF FINANCIAL OFFICER. INCOMING CEO. / TERM OF EMPLOYMENT: FROM FEBRUARY 2002 Richard has worked alongside Alan Clarke to deliver on Abano’s growth strategy, and is responsible for overseeing the performance of each of the sector businesses from a Group level, as well as acquisition activity. Richard has been appointed by the Board to replace retiring CEO, Alan Clarke. He is a director on all Abano subsidiary boards and attends all Abano Board meetings at the invitation of the Board. He is a member of the NZ Markets Disciplinary Tribunal and a recipient of a Prime Minister’s Scholarship in 2012.

9. RACHEL WALSH GROUP COMMERCIAL MANAGER / TERM OF EMPLOYMENT: FROM FEBRUARY 2013 Rachel has extensive experience in acquisitions and divestments, debt raising and financial reporting. She has worked in senior positions for both large accounting firms and private global companies. Rachel has excellent analytical skills and is responsible for strategic initiatives as well as planning for the Abano Group.

10. BRENDAN O’SULLIVAN GROUP FINANCIAL CONTROLLER / TERM OF EMPLOYMENT: FROM APRIL 2007 Brendan is responsible for the financial consolidation and reporting of all Abano companies, including monthly reporting and the annual budget and business plan process. His role also includes development of financial reporting and planning platforms as the Group continues to grow and diversify. A qualified accountant, Brendan has a variety of experience in both the public and private sector in New Zealand, the UK and Ireland.


FIVE YEAR FINANCIAL SUMMARY

FY11$M

FY12$M

FY13$M

FY14$M

FY15$M

OPERATING FINANCIAL PERFORMANCE

Gross Revenue (including Audiology) 195.6 236.7 257.8 274.0 300.4

Revenue 174.8 206.4 207.0 211.1 222.2

Underlying EBITDA 20.4 27.3 28.6 29.1 30.7

Acquisition costs (0.8) (1.6) (0.9) (1.3) (1.1)

EBITDA 19.7 25.7 27.7 27.8 29.6

Depreciation and amortisation (6.3) (8.3) (9.3) (10.0) (10.1)

EBIT 13.4 17.4 18.4 17.8 19.5

Net financing costs & fair value amortisation (2.8) (5.0) (6.4) (5.8) (5.8)

Share of loss in associate/jointly controlled entity (5.8) (4.2) (5.8) (2.2) (0.1)

Gain/loss on sale of subsidiary 12.3 - 1.6 - (9.0)

NPBT 17.1 8.2 7.8 9.8 4.6

Taxation (3.7) (4.2) (3.8) (3.7) (4.5)

Minority interest (2.0) (2.4) (1.2) (1.2) (1.4)

NPAT 11.5 1.6 2.8 4.9 (1.3)

RECONCILIATION TO UNDERLYING NPAT

Less: Loss/Gain on sale of subsidiary (12.3) - (1.6) 0.2 9.0

Add back: Impairment of tax asset 3.1 - 1.9 - -

Add back: Fair value amortisation of deferred acquisition consideration 0.2 0.1 0.5 (0.3) -

Add back: Acquisition and divestment costs 0.6 1.3 0.9 1.3 1.1

Underlying NPAT 3.1 3.0 4.5 6.1 8.8

FY11 FY12 FY13 FY14 FY15

No. of shares (000s) as at 31 May 15,672 16,256 17,101 20,537 20,876

Underlying EBITDA per Share 108.0c 170.8c 168.8c 149.5c 148.0c

NPAT per Share 60.6c 10.1c 16.6c 25.0c (6.11)c

Underlying NPAT per Share 16.1c 18.7c 26.9c 31.2c 42.56c

FINANCIAL POSITION FY11 FY12 FY13 FY14 FY15

Total Assets 169.0 203.2 211.6 224.3 221.1

Net Bank Debt 35.1 57.7 82.0 75.9 86.1

Total Equity 91.4 90.0 75.3 94.9 90.4

KEY FINANCIAL RATIOS FY11 FY12 FY13 FY14 FY15

Net Bank Debt/Total Assets 20.8% 28.4% 38.7% 33.8% 38.9%

Net Bank Debt to Net Bank Debt plus Equity 27.8% 39.1% 52.1% 44.4% 48.8%


EXPLAINING OUR RESULTSREVENUE: We earn revenue from businesses in three sectors – dental, audiology and diagnostics. In FY15, we also earned revenue from the rehabilitation sector which was closed following the divestment of the orthotics business in January 2015.

GROSS REVENUE: As our audiology business is a joint venture, it is equity accounted. This means that only our 50% share of profit is included in the financial statements, not the revenue or EBITDA from this business. To enable shareholders to see how much revenue each business is delivering, we also report gross revenue which includes audiology. Gross revenue also includes dental revenues before the payment of dentists’ commissions, which is the industry normal.

The year on year revenue increase was driven primarily from the dental businesses, as well as an improving performance from the Australian audiology joint venture.

EBITDA is Earnings Before Interest, Tax, Depreciation and Amortisation. It is essentially the ongoing income we receive from our businesses. EBITDA excludes the results for Bay International.

Underlying EBITDA excludes a number of items we are required to expense under the International Financial Reporting Standards as well as off one-off gains, losses and transaction costs on the sale of businesses.

In FY15, we sold two businesses as they no longer met our investment criteria. These businesses sold for cash proceeds of $11.1 million, resulting in a non cash loss on sale and reduction in goodwill of $9.0 million. In line with this, Abano reported a Net Loss After Tax of $(1.3) million.

Underlying NPAT removes the impact of non-cash accounting adjustments, such as the loss on divestments and acquisition costs and was $8.8 million in FY15. A reconciliation from NPAT to underlying NPAT is available on page 26.

The Abano Board believes that underlying earnings provides a more appropriate representation of Abano’s performance and we have been reporting these metrics on a consistent basis over a number of years. Underlying earnings are the measure used within the Company to evaluate performance, establish strategic goals and to allocate resources, and is also the basis for the Company’s dividend policy.

Based on both these measures the earnings from our businesses improved year on year.

More information on gross revenue and underlying earnings, which are non-GAAP financial measures and are not prepared in accordance with NZ IFRS, is available on the Abano website at www.abano.co.nz/underlyingearnings.


WE CARE ABOUT…

OUR PEOPLE EVERY DAY, OUR 2,000-PLUS HEALTHCARE PROFESSIONALS PROVIDE DENTAL, AUDIOLOGY AND RADIOLOGY CARE FOR THOUSANDS OF PEOPLE IN NEW ZEALAND, AUSTRALIA AND ASIA

INVESTING IN OUR PEOPLEWE INVEST IN OUR PEOPLE TO HELP THEM REALISE THEIR POTENTIAL• Clinical and career development• Development of inhouse training programmes• Sharing of knowledge and collaboration• Management and leadership training• Organisational culture that celebrates success

and respects talent• Competitive and rewarding remuneration• World class working environments

OUR ENVIRONMENT WE TAKE CARE TO MINIMISE OUR IMPACT ON THE ENVIRONMENT AND ENCOURAGE OUR BUSINESSES TO ADOPT ENVIRONMENTALLY FRIENDLY POLICIES AND EFFICIENCY INITIATIVES• Recycle what we can• Safe disposal and recycling of medical and

waste materials• Fully digital radiology image platform

• Electronic reporting to patients and clinicians

• Reduction in paper reporting• Digital signage

OUR COMMUNITIES WE ARE A PART OF OUR COMMUNITIES AND WE ENDEAVOUR TO MAKE THEM A BETTER PLACE. IT IS IMPORTANT TO US TO GIVE BACK AND CONTRIBUTE. EVERY YEAR, OUR BUSINESSES SUPPORT DESERVING CHARITIES, EVENTS AND INDIVIDUALS TO HELP THEM ACHIEVE THEIR GOALS

KIMBERLEY DENTAL TEAM• Improving dental health and services in Aboriginal

communities in the Kimberley region• Sponsored by Maven Dental Group• Volunteer dental services provided by Maven Dental staff

LUMINO KIDSCAN DAY• Free dental care for those in need• Thirty Lumino practices• Over 550 patients• More than $200,000 treatment value• 211 Lumino team members involved


DIRECTORS

Eduard (Ted) Koert van Arkel Appointed 5 July 2011

Murray Boyte Appointed 26 February 2015

Danny Chan Appointed 19 December 2008

Alan William Clarke Appointed 31 October 2001

Philippa (Pip) Dunphy Appointed 25 September 2012

Trevor David Janes Chairman Appointed 23 September 2005

Susan Marie Paterson Deputy Chairman Appointed 23 September 2005

AUDIT AND RISK ASSURANCE COMMITTEE

Chairman: Pip Dunphy Danny Chan Trevor Janes

REMUNERATION COMMITTEE

Chairman: Susan Paterson Ted van Arkel Murray Boyte

REGISTERED OFFICE AND ADDRESS FOR SERVICE

Level 16West Plaza Building3-7 Albert Street, Auckland

AUDITORS

PricewaterhouseCoopersPricewaterhouseCoopers Tower188 Quay Street, Auckland

BANKERS

ASB Bank Limited12 Jellicoe St, Auckland

Commonwealth Bank of Australia240 Queen StreetBrisbane, Australia

SOLICITORS

Harmos Horton Lusk Vero Centre 48 Shortland Street, Auckland

SHARE REGISTRAR

Computershare Investor Services Limited 159 Hurstmere RoadTakapuna, Auckland

Abano Healthcare Group LimitedPO Box 106 514Auckland 1143Telephone: + 64 9 300 1410Facsimile: + 64 9 300 [email protected]

www.abanohealthcare.co.nz

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