Managing Director’s AGM Address

22 November 2018

Presented By: Dr Daryl Holmes (OBE)Founder & Managing Director

Franked Dividends

- 2 -

4.05.4 6.5 7.5 8.6

10.0

6.59.0

11.0 11.25 12.04.5

6.0

7.28.0

9.28.5

8.0

10.2

11.5 11.7512.0

0c

5c

10c

15c

20c

25c

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Franked Dividends Final Dividend Interim Dividend

Acquisitions

Buderim Noosa

Recently Acquired & Rebranded

Ingham Roma

Financial Snapshot

FY’18 FY’17 Change(%)

Revenue (OTC) $55.8m $51.0m 9.6

Revenue (Statutory) $39.3m $36.2m 8.8

EBITDA $13.1m $12.5m 4.2

EBIT $10.8m $10.3m 3.2

NPBT $10.7m $10.3m 3.4

NPAT $7.6m $7.3m 4.1

EPS 32.2c 30.7c 4.8

DPS 24.0c 23.0c 4.3

NPAT ($, left scale) and Margin of Stat Revenue (%, right scale)

14%17%

18% 18% 17% 18%16%

18%

20% 20% 20%

0%

5%

10%

15%

20%

25%

0

2

4

6

8

10

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

$M

Full Year EBITDA ($, left scale) and Margin

21%23%

24% 25% 24%23%

22% 23%

25% 25%23%

0%

5%

10%

15%

20%

25%

30%

0

2

4

6

8

10

12

14

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

$M

Full Year EBITDA ($ and Margin of OTC Revenue)

Revenue

0

20

40

60

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

$M

Revenue Stat Revenue OTC Revenue

Reconciliation of OTC Revenue (non-IFRS) to Statutory Revenue per (Financial Statements)

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18OTC Revenue ($m) 18.6 27.6 30.7 35.7 45.9 48.5 43.3 53.2 51.4 51.0 55.8

Less amount retained by self-employed Dentists ($m) 3.4 5.3 6.8 6.9 9.2 12.3 11.5 16.6 14.9 14.8 16.5

Statutory Revenue ($m) 15.2 22.4 23.9 28.7 36.7 36.2 31.8 36.6 36.5 36.2 39.3

Morayfield – Greenfield opened on 21 May ‘18

• Initially 4 chair set up with potential to expand to a 9 chair facility asap

• Part of a Health Hub which include:• GP Clinic• Urgent Care Clinic• Allied Health• Day Services• Preventative Health Services• Rehabilitation Services• Diagnostic & Medical Imaging

Townsville City Relocationopened on 3 September 2018

• Relocated 4 chair facility with potential to expand to 7 chairs asap

• Establishing a health-hub by partnering with allied health professionals in prime Townsville CBD location

How we compare

1300SMILES capacity usage 76% - room

for growth

Industry average capacity usage 88%

Industry average65% male Dentists

1300SMILES 54% male Dentists

0

1

2

3

4

5

6

7

Industry Average 1300SMILES

Staff per Practice

1300SMILES benchmarks at 1.6 staff per Dentist