Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — FY2021 Earnings Presentation
37 slides from Regis Healthcare's earnings presentation, Aug 31, 2021
Slide 1: FY21 Full-Year Results Presentation
FY21 Full-Year Results Presentation 31 August 2021 Regis Hurstville, New South Wales
Slide 2: Contents
Regis Healthcare Limited | FY21 Full-Year Results Presentation Contents Aged Care Sector Reform COVID-19 Update Financial Performance Other Matters Strategy Update Outlook Questions Appendices -1-
Slide 3: Aged Care Sector Reform
Regis Healthcare Limited | FY21 Full-Year Results Presentation Aged Care Sector Reform Regis responds with strengthened capability and focus Key Matters in H2 FY21 (external) Key Matters in H2 FY21 (internal) ► Royal Commission completed ► Executive team has right skill mix and ► Australian Governme
Slide 4: Royal Commission into Aged Care Quality & Safety
Regis Healthcare Limited | FY21 Full-Year Results Presentation Royal Commission into Aged Care Quality & Safety The Royal Commission's Final Report was released in February 2021 ► Regis strongly supported the Royal Commission's work by making 10 submissions on topics including workforce, future syst
Slide 5: Australian Government Response
Regis Healthcare Limited | FY21 Full-Year Results Presentation Australian Government Response 5-Year 5-Pillar Aged Care Reform Plan $17.7 billion aged care reform package designed to deliver sustainable quality and safety in home and residential aged care services. ► Pillar 1: Home Care - $7.5 billi
Slide 6: Australian Government Response (continued)
Regis Healthcare Limited | FY21 Full-Year Results Presentation Australian Government Response (continued) Impact on Regis Highlights: ► At $17.7 billion, the Government response includes the largest funding package since Living Longer Living Better ► Narrative of system reform ► Responds to the sust
Slide 7: COVID-19 Update
Regis Healthcare Limited | FY21 Full-Year Results Presentation COVID-19 Update ► Regis continues to take all necessary steps to protect residents, clients and employees ► Key features of response are Outbreak Management Plan, Pandemic Planning Committee, PPE hubs ► No further outbreaks to those repo
Slide 8: Financial Performance
Financial Performance Regis Blackburn, Victoria -7-
Slide 9: FY21 Financial Overview
Regis Healthcare Limited | FY21 Full-Year Results Presentation FY21 Financial Overview ► Revenue from services of $701.4 million, up 3.5% on pcp Revenue from Services Net Operating Cash Flow ► EBITDA1,2 of $137.8 million includes: ► Average occupancy of 88.9% (FY20: 88.2%) $701.4million $105.0millio
Slide 10: Financial Summary
Regis Healthcare Limited | FY21 Full-Year Results Presentation Financial Summary (Restated)1 FY20 $ millions FY21 FY20. to FY21 Revenue from services 701.4 677.9 3.5% Other income2 83.0 72.3 14.8% Staff expenses 521.1 498.7 (4.5%) EBITDA3 137.8 141.6 (2.7%) NPAT 19.9 (0.7) Capital expenditure 18.7
Slide 11: Key Operational Statistics
Regis Healthcare Limited | FY21 Full-Year Results Presentation Key Operational Statistics (Restated)1 FY20 ► Movement in average available operational places Operational Statistics FY21 FY20 to FY21 mainly attributable to prior year acquisition of the Average available operational places (#)5 7,14
Slide 12: One-Off / Non-Recurring Items
Regis Healthcare Limited | FY21 Full-Year Results Presentation One-Off / Non-Recurring Items The following items are included in Profit and Loss: ► COVID-19 Government funding comprised: $ millions (before tax) FY21 • $6.8 million received in October 2020 COVID-19 Government funding and grants (11.9
Slide 13: Net Debt and Cash Flow
Regis Healthcare Limited | FY21 Full-Year Results Presentation Net Debt and Cash Flow $ millions Purpose Limit Maturity Cash Flows Debt Facility A Working capital 150.0 March 2023 ► Net cash flows from operating activities of $105.0 million (FY20: $127.2 million) Debt Facility B Working capital 275.
Slide 14: Capital Expenditure
Regis Healthcare Limited | FY21 Full-Year Results Presentation Capital Expenditure Replacement Capital Expenditure $ millions FY21 ► Primarily maintenance capital expenditure Replacement capital expenditure - residential aged care homes 16.3 Residential Aged Care Developments Replacement capital exp
Slide 15: Resident Profile
Regis Healthcare Limited | FY21 Full-Year Results Presentation Resident Profile Payment Preference (Non-Concessional) 30 June 31 December 30 June 100% Number of Residents 2020 2020 2021 RAD 1,864 1,797 1,790 80% Combination (RAD/DAP) 948 1,018 1,100 61% 59% 57% DAP 261 243 265 60% Total Non-Concessi
Slide 16: Other Matters
Other Matters Regis Sandgate - Musgrave, Queensland - 15 -
Slide 17: Other Matters
Regis Healthcare Limited | FY21 Full-Year Results Presentation Other Matters Oneview Healthcare PLC ► On 21 December 2020, Oneview Healthcare PLC lodged a claim in the Supreme Court of Victoria against Regis seeking damages for alleged breach of a collaboration agreement between the two parties. Reg
Slide 18: Strategy Update
Strategy Update Regis Sandgate - Griffith, Queensland - 17 -
Slide 19: Clear and Focused 3-Year Strategy
Regis Healthcare Limited | FY21 Full-Year Results Presentation Clear and Focused 3-Year Strategy - 18 -
Slide 20: Culture of Care
Regis Healthcare Limited | FY21 Full-Year Results Presentation Regis Culture of Care Regis continues to provide care that is safe, effective, integrated and personal In Place: In Train: ► Board Clinical Governance and Care Committee ► All residents, employees and volunteers offered two doses of COVI
Slide 21: Positive People and Practice
Regis Healthcare Limited | FY21 Full-Year Results Presentation Positive People and Practice Regis People - attracting, developing, empowering and retaining the best talent In Place: In Train: ► Fit for purpose training ► Workforce strategy ► Scholarship Program for accredited training ► Full review
Slide 22: Ensuring Our Future
Regis Healthcare Limited | FY21 Full-Year Results Presentation Ensuring Our Future Transformational change through digital enablers, operational excellence and growth In Place: In Train: ► 3-year Strategic Plan ► Upgrades to finance system ► Key participant in Aged Care Reform Network ► Reassessment
Slide 23: Environmental, Social and Governance (ESG)
Regis Healthcare Limited | FY21 Full-Year Results Presentation Environmental, Social and Governance (ESG) Regis is a for purpose company with a focus on shared value creation Environmental E ● ● Collection of mobile phones for “Save the Gorillas” program Collection of batteries for proper recycling
Slide 24: Aged Care Developments
Regis Healthcare Limited | FY21 Full-Year Results Presentation Aged Care Developments Regis’ greenfield developments and extensions program Provisional Net Allocation & New Additional Club Land Development Licences in Development State Places Places Services Held Approval Hand Update Regis Camberwel
Slide 25: Outlook
Outlook Regis Blackburn, Victoria - 24 -
Slide 26: Outlook
Regis Healthcare Limited | FY21 Full-Year Results Presentation Outlook Performance ► Quality care, service and accommodation support occupancy ► Workforce strategy ► Upgrade of key business systems ► Sector reform Business Growth and Development ► Looking forward to recommencing development program
Slide 27: Questions
Questions Regis Wynnum, Queensland - 26 -
Slide 28: Appendices
Appendices Regis Sippy Downs, Queensland - 27 -
Slide 29: Appendix A: Income Statement
Regis Healthcare Limited | FY21 Full-Year Results Presentation Appendix A: Income Statement (Restated)1 $ millions FY21 FY20 Revenue from Services Government revenue 499.9 471.1 Resident revenue 193.7 195.0 Other revenue 7.8 11.8 Revenue from Services 701.4 677.9 Other income2 83.0 72.3 Total Revenu
Slide 30: Appendix B: Statement of Financial Position
Regis Healthcare Limited | FY21 Full-Year Results Presentation Appendix B: Statement of Financial Position (Restated)1 $ millions FY21 FY20 Cash and cash equivalents 3.9 3.8 Trade and other receivables 9.1 9.7 Other current assets 8.9 6.2 Income tax receivables - 8.3 Total Current Assets 21.9 28.0 P
Slide 31: Appendix C: Cash Flow Statement
Regis Healthcare Limited | FY21 Full-Year Results Presentation Appendix C: Cash Flow Statement (Restated)1 $ millions FY21 FY20 Cash Flows from Operating Activities Receipts from customers and Government subsidies 696.5 666.3 Payments to suppliers and employees (620.3) (584.5) Operational Cash Flows
Slide 32: Appendix D: Non-IFRS Reconciliation
Regis Healthcare Limited | FY21 Full-Year Results Presentation Appendix D: Non-IFRS Reconciliation (Restated)1 $ millions FY21 FY20 Profit Before Income Tax 29.1 5.7 Depreciation and amortisation 43.9 44.0 Finance costs 74.0 78.8 Reported EBITDA (post-AASB 16) 147.0 128.5 Add/(deduct) one-off items:
Slide 33: Appendix E: Impact of Prior Year Restatement
Regis Healthcare Limited | FY21 Full-Year Results Presentation Appendix E: Impact of Prior Year Restatement Imputed Interest Income and Expense on RADs ► The Company adopted AASB 16 Leases from 1 July, 2019, where it concluded that it is a lessor where a resident has chosen a RAD or Bond arrangement
Slide 34: Appendix E: Impact of Prior Year Restatement (continued)
Regis Healthcare Limited | FY21 Full-Year Results Presentation Appendix E: Impact of Prior Year Restatement (continued) Potential Employee Underpayments ► Regis has identified potential underpayments of employee entitlements to certain current and former employees under its enterprise agreements. Th
Slide 35: Appendix F: Regis is a Well Established National Provider
Regis Healthcare Limited | FY21 Full-Year Results Presentation Appendix F: Regis is a Well Established National Provider Residential Aged Care, Home Care and Retirement Living 1 49 Number of Homes: Metropolitan 15 Number of Homes: Regional 64 23 Total number of homes 64 Number of freehold sites 7,14
Slide 36: Appendix G: Definitions of Non-IFRS Financial Measures
Regis Healthcare Limited | FY21 Full-Year Results Presentation Appendix G: Definitions of Non-IFRS Financial Measures FY20 means full-year ended 30 June 2020 (Restated) FY20 means full-year ended 30 June 2020 restated for impact of potential employee underpayments and AASB 16 Leases FY21 means full-
Slide 37: Important Information
Regis Healthcare Limited | FY21 Full-Year Results Presentation Important Information This Presentation contains the summary information about the current activities of Regis Any forecasts or other forward-looking statements contained in this Presentation are Healthcare Limited and its controlled ent