Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — FY2022 Earnings Presentation
38 slides from Regis Healthcare's earnings presentation, Aug 24, 2022
Slide 1: FY22 Full-Year Results Presentation
OUR PURPOSE Personalised and respectful care that embraces the experience of ageing FY22 Full-Year Results Presentation 24 August 2022 Regis Brighton, Victoria
Slide 2: Contents
Contents ● Company Strategy ● Aged Care Sector Reform ● COVID-19 ● Financial Performance ● AN-ACC Funding Model ● Other Matters ● Business Update ● Outlook ● Questions ● Appendices Regis Wynnum, Queensland
Slide 3: Strategy Overview
Regis Healthcare Limited | FY22 Full-Year Results Presentation Strategy Overview Our purpose is to provide personalised and respectful care that embraces the experience of ageing OUR OUR VALUES BEHAVIOURS HOME RESIDENTIAL Care Care • Optimism • We have a relentless customer focus • Passion • We are
Slide 4: Industry Reforms and Developments Post Royal Commission
Regis Healthcare Limited | FY22 Full-Year Results Presentation Industry Reforms and Developments Post Royal Commission Regis continues to embrace and drive reform Government 5-Year 5-Pillar Aged Care Reform Plan Regis’ response to the Royal Commission ► $17.7 billion aged care reform package ► The R
Slide 5: Residential Aged Care Sector Performance
Regis Healthcare Limited | FY22 Full-Year Results Presentation Residential Aged Care Sector Performance The financial viability of the Aged Care Sector has deteriorated over recent years, with many providers generating substantial losses Current industry financial situation Additional funding reform
Slide 6: COVID-19 Management and Impact
Regis Healthcare Limited | FY22 Full-Year Results Presentation COVID-19 Management and Impact Regis has developed extensive front-line experience preventing and managing COVID-19 outbreaks whilst maintaining a focus on the wellbeing of residents, clients and employees Strategy FY22 COVID-19 outbreak
Slide 7: Financial Performance
Regis East Malvern, Victoria Financial Performance
Slide 8: FY22 Financial Overview
Regis Healthcare Limited | FY22 Full-Year Results Presentation FY22 Financial Overview ► Revenue from services of $725.3 million, up 3.4% on pcp Revenue from Services Net Loss after Tax • Average occupancy of 89.8% (FY21: 88.9%) $725.3million $38.8million • Includes additional $10 per day Basic Dail
Slide 9: Financial Summary
Regis Healthcare Limited | FY22 Full-Year Results Presentation Financial Summary FY21 $ millions FY22 FY21. to FY22 Revenue from services 725.3 701.4 3.4% Other income1 71.6 83.0 (13.7%) Staff expenses 550.4 521.1 5.6% Underlying EBITDA2 78.1 72.1 8.3% NPATA2 3.9 19.9 (80.4%) Capital expenditure 4
Slide 10: Key Operational Statistics
Regis Healthcare Limited | FY22 Full-Year Results Presentation Key Operational Statistics FY21 ► Movement in average available operational places Operational Statistics FY22 FY21 to FY22 mainly attributable to permanent removal of Average available operational places (#)1 7,057 7,144 (1.2%) multi-
Slide 11: One-Off / Non-Recurring Items
Regis Healthcare Limited | FY22 Full-Year Results Presentation One-Off / Non-Recurring Items The following one-off / non-recurring items are included in Profit and Loss: ► COVID-19 outbreak expenses include: $ millions (before tax) FY22 FY21 • $20.3 million of staff costs COVID-19 outbreak expenses
Slide 12: Net Debt and Cash Flow
Regis Healthcare Limited | FY22 Full-Year Results Presentation Net Debt and Cash Flow $ millions Purpose Limit Maturity Cash Flows Facility A Working capital 150.0 March 2026 ► Net cash inflows from operating activities of $114.8 million (FY21: $105.0 million) Facility B Working capital 275.0 March
Slide 13: Capital Expenditure
Regis Healthcare Limited | FY22 Full-Year Results Presentation Capital Expenditure Replacement Capital Expenditure $ millions FY22 ► Regular and ongoing refurbishment / replacement Property capital expenditure undertaken across residential aged care homes and retirement villages Replacement Capital
Slide 14: Resident Profile
Regis Healthcare Limited | FY22 Full-Year Results Presentation Resident Profile Payment Preference (Non-Concessional) 30 June 31 December 30 June Number of Residents 2021 2021 2022 100% 8% 8% 10% 90% RAD 1,790 1,753 1,849 80% Combination (RAD/DAP) 1,100 1,135 980 35% 36% 31% 70% DAP 265 269 290 60%
Slide 15: AN-ACC Funding Model
Regis East Malvern, Victoria AN-ACC Funding Model
Slide 16: Transitioning from ACFI to AN-ACC
Regis Healthcare Limited | FY22 Full-Year Results Presentation Transitioning from ACFI to AN-ACC ACFI is transitioning to the new AN-ACC1 funding model on 1 October 2022 Changes to Government funding and care minutes Transition arrangements ► The Australian Government is progressing a $17.7 billion,
Slide 17: Regis' Transition from ACFI to AN-ACC
Regis Healthcare Limited | FY22 Full-Year Results Presentation Regis’ Transition from ACFI to AN-ACC Regis continues to proactively work with the Australian Government and industry peak to support the development of an effective and sustainable funding and care model Summary of Regis transition to A
Slide 18: Other Matters
Regis Port Coogee, Western Australia Other Matters
Slide 19: Other Matters
Regis Healthcare Limited | FY22 Full-Year Results Presentation Other Matters Potential Employee Entitlement Underpayments ► As previously reported, Regis announced to the ASX on 9 August 2021 that it had identified potential underpayments of employee entitlements to certain current and former employ
Slide 20: Business Update
Regis Brighton, Victoria Business Update
Slide 21: Aged Care Environment Requires Adaptive Strategic Response
Regis Healthcare Limited | FY22 Full-Year Results Presentation Aged Care Environment Requires Adaptive Strategic Response Pandemic has forced greater focus on tactical management of clinical and business outcomes • Clinical training, controls, systems, reporting and governance • Workforce management
Slide 22: Culture of Care
Regis Healthcare Limited | FY22 Full-Year Results Presentation Regis Culture of Care Regis continues to provide care that is safe, effective, integrated and personal In Place: FY22 Priorities: ► Board Clinical Governance and Care Committee Complete ► Clinical Governance Framework ► All residents, em
Slide 23: Positive People and Practice
Regis Healthcare Limited | FY22 Full-Year Results Presentation Positive People and Practice Regis People - attracting, developing, empowering and retaining the best talent In Place: FY22 Priorities: ► Fit for purpose training Complete ► Scholarship Program for accredited training ► Launched new lead
Slide 24: Ensuring Our Future
Regis Healthcare Limited | FY22 Full-Year Results Presentation Ensuring Our Future Transformational change through digital enablers, operational excellence and growth In Place: FY22 Priorities: ► Strategic Plan Completed ► Key participant in Aged Care Reform Network ► Removal of remaining triple and
Slide 25: Aged Care Developments
Regis Healthcare Limited | FY22 Full-Year Results Presentation Aged Care Developments Regis has sites for greenfield developments and extension program for existing homes Provisional Net Allocation & Additional Development Licences in Development State Places Club Services Approval Hand1 Update Regi
Slide 26: Environmental, Social and Governance (ESG)
Regis Healthcare Limited | FY22 Full-Year Results Presentation Environmental, Social and Governance (ESG) Regis’ environment, social and governance commitments Circle of Care Shared Value Creation ● 30-year history of caring for older people ● Return to shareholders ● Health, safety and wellbeing at
Slide 27: Outlook
Regis Port Coogee, Western Australia Outlook
Slide 28: Outlook
Regis Healthcare Limited | FY22 Full-Year Results Presentation Outlook Performance ► Quality care, service and accommodation support occupancy ► Workforce strategy ► Upgrade of key business systems ► Clarity required regarding sector reforms Business Growth and Development ► Recommence greenfield de
Slide 29: Questions
Regis Hurstville, New South Wales Questions
Slide 30: Appendices
Regis Blackburn, Victoria Appendices
Slide 31: Appendix A: Income Statement
Regis Healthcare Limited | FY22 Full-Year Results Presentation Appendix A: Income Statement $ millions FY22 FY21 Revenue from Services Government revenue 517.9 499.9 Resident revenue 200.0 193.7 Other revenue 7.4 7.8 Revenue from Services 725.3 701.4 Other income1 71.6 83.0 Total Revenue 796.9 784.4
Slide 32: Appendix B: Statement of Financial Position
Regis Healthcare Limited | FY22 Full-Year Results Presentation Appendix B: Statement of Financial Position $ millions FY22 FY21 Cash and cash equivalents 4.1 3.9 Trade and other receivables 17.9 9.1 Other current assets 11.5 8.9 Income tax receivables 7.2 - Total Current Assets 40.7 21.9 Property, p
Slide 33: Appendix C: Cash Flow Statement
Regis Healthcare Limited | FY22 Full-Year Results Presentation Appendix C: Cash Flow Statement $ millions FY22 FY21 Cash Flows from Operating Activities Receipts from customers and Government subsidies 713.6 696.5 Payments to suppliers and employees (671.2) (620.3) Operational Cash Flows Before Inte
Slide 34: Appendix D: Non-IFRS Reconciliation
Regis Healthcare Limited | FY22 Full-Year Results Presentation Appendix D: Non-IFRS Reconciliation $ millions FY22 FY21 Profit/(Loss) Before Tax (55.2) 29.1 Depreciation 42.1 43.9 Amortisation1 61.0 - Finance costs 70.4 74.0 Reported EBITDA (post-AASB 16) 118.3 147.0 Add/(deduct) one-off items: COVI
Slide 35: Appendix E: Deregulation of Operational Places
Regis Healthcare Limited | FY22 Full-Year Results Presentation Appendix E: Deregulation of Operational Places ► In response to the Royal Commission into Aged Care Quality and Safety’s final report, the former Australian Government announced in the 2021-22 Federal Budget that it would be investing $1
Slide 36: Appendix F: Regis is a Leading Residential Aged Care Provider
Regis Healthcare Limited | FY22 Full-Year Results Presentation Appendix F: Regis is a Leading Residential Aged Care Provider Operates a network of 64 residential homes located across Australia Key statistics1 Regis home network1 One of the largest providers in Australia2 1 Darwin ~7,000 available op
Slide 37: Appendix H: Definitions of Non-IFRS Financial Measures
Regis Healthcare Limited | FY22 Full-Year Results Presentation Appendix H: Definitions of Non-IFRS Financial Measures FY21 means full-year ended 30 June 2021 FY22 means full-year ended 30 June 2022 Capital expenditure represents payments for property, plant and equipment Reported EBITDA refers to ea
Slide 38: Important Information
Regis Healthcare Limited | FY22 Full-Year Results Presentation Important Information This Presentation contains the summary information about the current Any forecasts or other forward-looking statements contained in this activities of Regis Healthcare Limited and its controlled entities (Regis Pres