Slide 1: Radius Care Overview
“Caring is our calling” Radius Care Overview Introductory presentation December 2020 1
Slide 2: Importance Notice and Disclaimer
Importance Notice and Disclaimer This presentation has been prepared by Radius Residential Care Limited (“Radius Care”), to provide a general overview of Radius Care. It is not prepared for any other purpose and must not be provided to any person other than the intended recipient. This presentation
Slide 3: Presenting Today
Presenting Today Brien Cree Stuart Bilbrough Executive Chairman / Managing Director Chief Executive Officer • Founded Radius Care in 2003, then part of Radius • Appointed Chief Executive Officer in June 2020 Health Group • Formerly Radius Care Chief Financial Officer from • Moved into Executive Chai
Slide 4: Unique needs based sector exposure
Unique needs based sector exposure Radius Care provides unique exposure to a high acuity, specialised care provider that remains committed to and focused on delivering compassionate and outstanding clinical care outcomes Existing portfolio composition Portfolio growth focus Radius Care Radius Care P
Slide 5: Large national aged care portfolio
Large national aged care portfolio Radius Care operates 22 aged care facilities nationally, comprising more than 1,700 aged care beds owning 3 of these facilities with 19 currently leased from 3rd party property investors. It also owns two retirement villages comprising 76 units Portfolio summary Na
Slide 6: Journey to date
Journey to date Radius Care has grown significantly from Brien’s acquisition of a single facility (Heatherlea) with 54 beds in 2003 to a national portfolio of 22 aged care facilities and 2 retirement villages and over 1,700 beds / units today, through a combination of organic growth, development and
Slide 7: Investment highlights
Investment highlights With a focus on high acuity and specialist care, Radius Care provides unique exposure to the most attractive segment of the market, with the strongest demand growth, highest barriers to entry and greatest per bed profitability ✓ 1. Strong demand underpinned by favourable popula
Slide 8: Strong demand underpinned by favourable population demographics
1. Strong demand underpinned by favourable population demographics Population aging and increasing dependency underpins strong demand, particularly for higher acuity and specialist care New Zealand population growth Bed Demand The 65 to 85 year age bracket (retirement village demographic) is current
Slide 9: Focused on needs-based, strong margin, high acuity and specialist care
2. Focused on needs-based, strong margin, high acuity and specialist care Radius Care’s portfolio is oriented to high acuity and specialist care, the highest margin segment of the market with the strongest barriers to entry, underpinned by a resident need Composition of care offerings1 Industry rela
Slide 10: Systematic approach to provision of care
3. Systematic approach to provision of care Radius Care delivers strong consistent clinical care outcomes through its systematic approach to the provision of care Systems and processes in place Strong clinical care outcomes • Oversight of facilities focused on ensuring efficiency and consistency of
Slide 11: Secure revenue stream
4. Secure revenue stream Government backed funding, with increasing diversification through strong resident adoption of private Accommodation Supplements (for premium room services) Industry funding Radius Care revenue composition over time Government funding continues to increase with ongoing indus
Slide 12: Clear growth pathway – Purchase of strategically important facilities
5. Clear growth pathway – Purchase of strategically important facilities’ land and buildings Purchase of strategically important facilities providing Radius Care with freedom to undertake value enhancing brownfield development Rationale for site purchasing Case Study: Lexham Park – operated since 20
Slide 13: Clear growth pathway – Development led growth
5. Clear growth pathway – Development led growth with ownership of land and buidings Radius Care has the capability to perform both brownfield and greenfield developments, having already managed these processes on leased sites with landlords historically funding the development Case study: Waipuna –
Slide 14: Clear growth pathway – Opportunistic acquisitions
5. Clear growth pathway – Opportunistic acquisitions Radius Care operates in a highly fragmented market and will continue to make value accretive acquisitions when opportunities arise Aged Care sector remains highly fragmented Case study: Matua acquired FY13 3.0 24 Radius Care Operated 2.5 20 10.3%
Slide 15: Strong founder backed team
6. Strong founder backed team Founder, Brien Cree, remains committed to the business and has transitioned to an Executive Chairman role focused on driving Radius Care’s growth Board and Management team Executive Chairman / Managing Director Board Management Strong focus on governance and ensuring co
Slide 16: Important metrics
Important metrics Radius Care will direct list on the NZX on Thursday, 10th December under the ticker “RAD”. The Board has ascribed a listing price of $0.80 per Share (“Listing Price”), based on its view of the equity value of Radius Care. It has been provided to inform investors of the value ascrib
Slide 17: Appendix
Appendix 17
Slide 18: NZX listing rationale
NZX listing rationale The direct listing of Radius Care provides it with the possibility to subsequently seek capital to fund growth opportunities as they arise Listing objectives Radius Care share register at listing • Ability to raise equity capital as / when required to support strategic Enhanced
Slide 19: Impact of COVID-19 on Radius Care and sector
Impact of COVID-19 on Radius Care and sector1 Processes and procedures implemented by Radius Care in the mid-2000s as a result of Bird Flu risk have performed well in the COVID-19 environment, with no staff or resident COVID-19 infections occurring to date Implications for sector and key responses A