Half Year Report 2016
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Half Year Report 2016

SHL Telemedicine Ltd. 1 January - 30 June on all fronts and reducing our cost base. The initial impact was already seen in the second Shanghai Jiuchuan Investment (Group) Co., Ltd. last quarter of 2016 and led to a reduction in the free year, responsibility both in the Board of Directors cash burn rate. The reduction in costs should and the leadership team was put into new hands. continue to further materialize during the course of the year with the full impact seen in 2017. Financial results in the first half-year are to be a seen on this backdrop. Adjusted revenues  were In terms of...

SHL Telemedicine Ltd. 1 January - 30 June Half-Year Report 2016 Financial Highlights a. Adjusted Financial Information in USD million (except per share amounts) • Israel 9.9 10.9 (9.2)% • Other 0.1 0.1 b Adjusted LBIT  (1.8) (1.2) n.a b Adjusted EBITDA  0.8 Adjusted LPS (0.24) (0.17) n.a Adjusted free cash flow1,2 (1.3) (2.2) n.a 3 b. Reconciliation to Adjusted Financial Information EBIT/ EBITDA/ Net income Revenues (LBIT) (LBITDA) (loss) EBIT/ EBITDA/ Net income Revenues (LBIT) (LBITDA) (loss) with past customer Change in revenue estimate Change in revenue estimate Amortization of...

| Report on Review of Interim Condensed Consolidated Financial Statements | Condensed Consolidated Balance Sheets | Condensed Consolidated Statements of Comprehensive Income (Loss) | Condensed Consolidated Statements of Changes in Equity | Condensed Consolidated Statements of Cash Flows | Notes to Interim Condensed Consolidated Financial Statements Financial Statements

The Shareholders and Board of Directors SHL Telemedicine Ltd. Re: Report on review of interim condensed consolidated financial statements We have reviewed the accompanying interim procedures. A review is substantially less in condensed consolidated balance sheet of SHL scope than an audit conducted in accordance with International Standards on Auditing and subsidiaries as of June 30, 2016, and the related interim condensed consolidated statements of assurance that we would become aware of all comprehensive income, changes in equity and cash significant matters that might be identified in an...

CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term investments PROPERTY AND EQUIPMENT: Cost Less - accumulated depreciation (54,423) (51,573) (51,915) Total assets The accompanying notes are an integral part of the interim condensed consolidated financial statements. Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands Unaudited Audited LIABILITIES AND EQUITY CURRENT LIABILITIES: Credit from banks and current maturities Deferred revenues 2,035 1,870 1,828 Trade payables Other accounts payable 5,466 5,971 6,840 NON-CURRENT LIABILITIES: Long-term loans Deferred revenues Deferred taxes Employee benefit liabilities Total liabilities EQUITY: Issued capital Additional paid-in capital 95,712 95,229 95,380 Treasury shares (2,440) (2,440) (2,440) Foreign currency translation reserve (3,262) (2,016) (4,086) Capital reserve for available-for sale...

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME U.S. dollars in thousands (except per share amounts) Year ended Six months ended June 30, Unaudited Audited Revenues 18,290 21,085 40,673 Change in revenues estimate (948) - (6,092) Total revenues Depreciation and amortization Cost of revenues Research and development costs 1,491 1,120 2,690 Selling and marketing expenses 4,577 5,405 10,794 General and administrative expenses 4,652 3,402 8,052 522 7,876 Other expenses - Operating income (loss) (3,749) Financial income 134 561 878 Financial expenses (416) (673) (1,261) Income (loss)...

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY U.S. dollars in thousands Capital reserve for available-for-sale Foreign investments and Additional currency remeasurement Issued paid-in Treasury translation gains on defined capital capital shares reserve benefit plans** Balance as of January 1, 2015 (audited) Share-based payments Total other comprehensive loss Balance as of December 31, 2015 (audited) Accumulated deficit Share-based payments Total other comprehensive income Balance as of June 30, 2016 (unaudited) * Represents an amount lower than $ 1. ** As of June 30, 2016 the...

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Year ended Six months ended June 30, December 31, Unaudited Audited Cash flows from operating activities: Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: Income and expenses not involving operating cash flows: Capital gain from sale of property and equipment (6) (26) Impairment of property, plant and equipment - 877 Impairment of intangible assets - 1,800 Change in employee benefit liabilities, net 66 77 20 Cost of share-based payments 332 210 361 Changes in operating assets and...

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended June 30, Year ended Cash flows from investing activities: Purchase of property and equipment Investment in intangible assets Long-term deposit Proceeds from sale of property and equipment Purchase of financial assets Proceeds from sale of financial assets Net cash provided by (used in) investing activities (897) 1,754 532 Cash flows from financing activities: Proceeds from exercise of options 9 8 Short term bank credit, net Proceeds from long-term loans Payment of long-term loans Net cash provided by (used in) financing...

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Six months ended June 30, Year ended December 31, Unaudited Audited (a) Acquisition of GPH: Working capital (excluding cash) Intangible assets Deferred taxes (b) Non-cash transactions: Purchase of property and equipment on credit The accompanying notes are an integral part of the interim condensed consolidated financial statements. Financial Statements

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands have been prepared in a condensed format as of June 30, 2016, and for the six months then ended. These condensed consolidated financial statements are to be read in conjunction with the annual consolidated financial statements and accompanying notes of SHL Telemedicine Ltd. (“the Company”) as of December 31, 2015 and for the year then ended (“the annual financial statements”). b. Following are data regarding the Israeli CPI and the exchange rates of the Euro, U.S. dollar and the Swiss Franc in relation to the new...