Radius Residential Care Ltd · NZX:RAD
Radius Residential Care — FY2022 Earnings Presentation
34 slides from Radius Residential Care's earnings presentation, May 2022
Slide 1: Full Year Results
Full Year Results F O R 1 2 M O N THS TO 3 1 M A R CH 2 0 2 2
Slide 2: Presenting Today
Presenting Today Radius Care Andrew Peskett Brien Cree Michelle Slabber Chief Executive Officer Executive Chair General Manager, Finance BA (Hons) BCom (Hons), CA • Founded Radius Care in 2003, then part • Appointed Chief Executive Officer in of Radius Health Group • Joined Radius Care in 2016 Febru
Slide 3: Establishing Growth Springboard
Radius Care Establishing Growth Springboard Increased Property Ownership We now own 12 facilities and lease 11 from third party property investors. We also own three retirement villages comprising 101 units. Growth of Development Pipeline Bed numbers in development pipeline increased from 104 to 294
Slide 4: Agenda
Radius Care Agenda OVERVIEW OF FY22 PERFORMANCE Second year as a listed company 01 ANALYSIS OF RESULT Continuation of strong track record 02 POSITIONING RADIUS CARE Growth phase and strategy update 03 APPENDICES Key operational and financial metrics Summary Profit and Loss, Balance Sheet and Cas
Slide 5: Overview of FY22 Performance
Overview of FY22 Performance SECOND YEAR AS A LISTED COMPANY
Slide 6: FY22 Financial Highlights
Radius Care FY22 Financial Highlights Key metrics significantly improved Financial Performance - Pre-NZ IFRS 16 Underlying EBITDA up 2.3% to $10.7m (vs. guidance of $10.0m to $11.5m) - Reported Net Profit After Tax up 56.8% to $2.7m - AFFO up 12.3% to $4.2m (vs. guidance of $4.0m to $5.0m) - Underly
Slide 7: FY22 Business Highlights and Key Events
Radius Care FY22 Business Highlights and Key Events Business Highlights Settlement of Ohaupo acquisition consisting of four strategic leased sites in Auckland, Waikato, Taranaki and Canterbury. Acquisition of Clare House, an integrated care facility and retirement village with 69 care beds and 25 OR
Slide 8: Our People
Radius Care Our People Refresh of Executive Team ANDREW PESKETT – CEO Started Feb 2022 Extensive retirement village and aged care industry experience. 14 years as senior executive at Metlifecare. Roles included Acting Chief Executive, GM Corporate Services, Acting GM Operations and General Counsel &
Slide 9: Financial Performance Overview
Financial Performance Overview Radius Care Radius Care delivered strong results that were well within the guidance metrics provided in November 2021, an excellent performance given the challenges the year presented Total Revenue Pre-NZ IFRS 16 Underlying EBITDA FY22 Revenue of $135.9m up 8% vs pcp F
Slide 10: Cash Flow and Dividends
Cash Flow and Dividends Radius Care The payout rate of 67.5% of AFFO is near the top end of the policy range Dividends AFFO - FY22 AFFO of $4.2m FY22 Final Dividend - FY22 final dividend of 0.76 cents per share including full imputation credits of 0.21 cents per share. FY22 guidance achieved - Ex Di
Slide 11: Welcome to Brooklands
Welcome to BROOKLANDS Radius Care 5 By ¢ AF = 5 is
Slide 12: Analysis of Result
Radius Care Analysis of Result CONTINUATION OF STRONG TRACK RECORD 12
Slide 13: Revenue Growth and Diversification
Radius Care Revenue Growth and Diversification Strong revenue growth continues helped by solid occupancy and a 20.5% increase in accommodation supplements Total revenue Direct private (non-Government) revenue1 160.0 17.5 12.5% 10.8% 140.0 15.0 10.0% Proportion of total revenue (%) Direct Private Rev
Slide 14: Bed Mix
Bed Mix Radius Care Over FY22, beds certified for high acuity and specialist care have increased from 86% to 87% of the portfolio ~86% of Radius Care Beds are certified for high acuity FY21 14.4% 41.4% 26.5% 11.1% 5.7% 0.9% Care Bed ~87% of Radius Care Beds are certified for high acuity Type FY22 13
Slide 15: Occupancy
Occupancy Radius Care Strong occupancy settling at 92% versus the industry average of 86% 95% 94% 93.7% 93.4% 93.1% 93% 92.7% 92.3% 92.0% 92.0% 92% 91.6% 91.0% Occupancy rate % 91% 90.1% 90.4% 90% 89.6% 89% 88.0% 87.8% 88% 87.2% 87.2% 87.2% 87.3% 87.1% 86.8% 87% 86.5% 86.1% 86.2% 86% 85% Jun-19 Sep-
Slide 16: Continued Growth in Underlying EBITDA per Care Bed
Continued Growth in Underlying EBITDA per Care Bed Radius Care Strong Occupancy (see previous page) Growing accommodation supplements Underlying EBITDA per care bed ($000) Accommodation supplements 8.0 4,500 Accommodation supplement per 7.0 $3,916 4,000 6.0 $3,300 3,500 21.0 $2,912 3,000 Care Bed NZ
Slide 17: Strategy Update
Radius Care Strategy Update 17
Slide 18: Strategy Update
Strategy Update Radius Care Significant strategy-driven property transactions undertaken GO FORWARD STATERGY CURRENT STATUS Brownfield potential identified at owned sites at: - Lexham Park (Katikati): Additional 21 Care Suites and 20 Care Beds. Status: Resource consent underway - Thornleigh (New Ply
Slide 19: Developments
Developments Radius Care Thornleigh Park Taupaki Gables NEW PLYMOUTH 24 AUCKLAND 20 Construction underway Care Beds Commencing September 2022 Care Beds 67 27 Lexham Park Northwood Villas Apartments KATIKATI 21 20 CHRISTCHURCH 30 70 Commencing August 2022 Care Suites ORA Care Beds Commencing First Qu
Slide 20: Care Suite product to be launched in second half of FY24
Care Suite Radius Care product to be launched in second half of FY24 First Care Suites at Lexham Park followed by availability at other facilities. Target is the majority of pipeline beds to be Care Suites. Concept Stage Detailed Design Stage 80-100 165 20
Slide 21: FY23 Operational Outlook
FY23 Operational Outlook Radius Care Refreshed Executive Team Development of 24 Care Beds at Radius Thornleigh Park in New Plymouth on track to be completed by December 2022 Construction starts at Lexham and Taupaki in H1FY23 Continuing brownfields development programme Commencing Northwood village
Slide 22: Radius Care
22 Radius Care
Slide 23: Appendices
Radius Care Appendices 23
Slide 24: Key Investment Highlights
APPENDIX 1 Key Investment Highlights Radius Care The Radius Care growth pipeline provides unique exposure to a high acuity, specialised care provider that remains committed to and focused on delivering compassionate and outstanding clinical care outcomes. Strong founder backed team Demand underpinne
Slide 25: At a Glance
APPENDIX 2 Radius Care At a Glance National aged care focused portfolio with strong regional presence 1,780+ 1,600+ Beds Employees 94.6% 5.4% Care Beds ILUs 25 ILUs are Independent Living Units
Slide 26: Key operational and financial metrics
APPENDIX 3 Key operational and financial metrics Radius Care Operating Metrics DMF terms for Retirement Village units FY22 FY21 FY20 FY19 • 30% over three years Number of Care Beds (period end)1 1,784 1,715 1,704 1,701 • average resident tenure: 3.4 years Average Care Bed Occupancy2 92.5% 92.4% 90.0
Slide 27: Statement of Comprehensive Income
APPENDIX 4 Radius Care Financials ($000) FY22 FY21 FY20 Revenue Statement of Revenue from contracts with customers 132,052 121,217 113,359 Comprehensive Income Deferred management fees 1,328 1,081 671 Total revenue 133,380 122,298 114,030 Fair value movement of investment properties 1,088 2,879 (649
Slide 28: Statement of Financial Position
APPENDIX 5 Radius Care Financials ($000) FY22 FY21 FY20 Assets Statement of Cash and cash equivalents 2,088 2,761 2,317 Financial Position Trade and other receivables 9,882 7,181 7,648 Inventories 768 548 308 • Investment properties of Investment properties 46,014 31,675 27,831 $46.0m, up $14.3m fro
Slide 29: Statement of Cash Flows
Financials APPENDIX 6 Radius Care Statement of Cash Flows ($000) FY22 FY21 FY20 Cash flow from operating activities Receipts from residents for care fees and village fees 129,796 122,337 113,282 Receipts of government subsidy - 1,210 - Payments to suppliers and employees (111,696) (101,161) (95,436)
Slide 30: Reconciliation of NZ GAAP to non-GAAP financial measures
Financials APPENDIX 7 Radius Care Reconciliation of NZ GAAP financial measures to non-GAAP financial measures ($000) FY22 FY21 FY20 Profit/(loss) for the year 2,673 1,705 (2,833) Adjustments Non-recurring or infrequent items Remove: COVID-19 related expenses 730 653 34 Remove: Government COVID-19 Su
Slide 31: Directory of facilities: Leased
APPENDIX 8 Radius Care Directory of facilities LEASED TIME TO NEXT FACILITY LOCATION CARE BEDS UNITS CURRENT LEASE TERM RIGHTS OF RENEWAL TIME TO FINAL EXPIRY LANDLORD RENEWAL Kensington Hamilton 96 - 10 yrs 2.1 yrs 2 x 10 yrs 12.4 yrs A Potter Home Whangarei 55 - 20 yrs 7.6 yrs 2x 15 yrs 37.6 yrs B
Slide 32: Directory of facilities: Owned
Directory of facilities APPENDIX 9 Radius Care OWNED TOTAL FACILITY LOCATION CARE BEDS UNITS FACILITY CARE BEDS UNITS St Helenas Christchurch 52 - Leased 921 - Thornleigh Park New Plymouth 63 - Owned 863 101 Lexham Park Katikati 63 - Heatherlea New Plymouth 55 - Taupaki Gables Kumeu 60 - TOTAL 1784
Slide 33: Importance Notice and Disclaimer
Radius Care Importance This presentation has been prepared by Radius Residential Care Limited (“Radius Care”), for informational purposes. This Notice and disclaimer applies to this document and the verbal or written comments of any person presenting it. Disclaimer This presentation sets out informa
Slide 34: Thank You
Radius Care Thank You 34
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