Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — Shareholder Meeting (November 2024)
55 slides from Regis Healthcare's shareholder meeting presentation, Nov 26, 2024
Slide 1: Chair and Managing Director Presentations to the AGM
REGIS HEALTHCARE LIMITED ABN 11 125 203 054 Level 2, 293 Camberwell Road Camberwell, VIC 3124 T: 03 8573 0444 Regis.com.au ASX Announcement 26 November 2024 Chair and Managing Director Presentations to the AGM In accordance with Listing Rule 3.13.3, we attach the Chair and Managing Director presenta
Slide 2: Chair's AGM Address
Chair’s AGM Address My comments today will focus on two main areas. A brief overview of our FY24 year, with an update to some key business metrics and, second, my observations on the sector today and how Regis plans to participate in future trends. I am very pleased to report that your Company had a
Slide 3: Strong year and dividend
has repaid over $400m of debt since FY18. Regis maintained a prudent approach through this period, deferring expensive new developments pending greater certainty of returns, and instead, investing in re-furbishing existing homes, upgrading core systems, and investing in our people and processes to r
Slide 4: Sector outlook and demand growth
years for home care, approximately 32,000 new recipients are expected each year, or 44,000 per year if latent demand and people on waitlists are included. This would result in over 1.7 million individuals accessing home care by 2043. These numbers are fuelled by the Baby Boomer generation who are re
Slide 5: Strengths that differentiate Regis
clients, the opportunities within our sector, and the strengths that differentiate Regis from other providers. Regis’ strategy is not just about meeting current demands but anticipating future needs of our residents, their families and the community, and setting leading standards in aged care. Core
Slide 6: Greenfield developments and land bank
beds coming to market and a rapidly escalating demand curve will continue to exert upward pressure on occupancy rates across the country. Regis is confident that greenfield developments will perform strongly in an on-going environment of short supply. To take advantage of this expected market tighte
Slide 7: Managing Director and CEO AGM Speech 2024
Managing Director and CEO AGM Speech 2024 Thank you Graham and good morning everyone. I would also like to acknowledge the Wurundjeri people of the Kulin Nation, traditional custodians of the land on which we meet today, and pay my respects to their Elders past and present. I extend that respect to
Slide 8: Industry Reform and Sector Changes
Industry Reform and Sector Changes Slide 11 highlights the key Government reforms that are impacting the aged care sector. The Royal Commission into Aged Care Quality and Safety determined the current Aged Care Act to be outdated, and recommended a new Act to create a simpler, safer system, strength
Slide 9: Home support and workforce changes
The Commonwealth Home Support Programme will transition in to Support at Home no earlier than 1 July 2027. In March 2024, we were pleased the Fair Work Commission finalised its Stage 3 decision on aged care wages. This decision grants eligible care and support workers an additional pay increase of u
Slide 10: Government response to taskforce recommendations
Moving now to the Government’s response to the Taskforce recommendations, noting the taskforce was established to review funding and financing of the sector, excluding care funding through AN-ACC given the work of the Pricing Authority. In March 2024, the Taskforce’s findings were made public, encom
Slide 11: Resident contributions and accommodation changes
A key element of the Taskforce recommendations was that residents with means should make greater contributions to non-care components such as everyday living and accommodation costs. The hotelling supplement will now be means tested, with consumers who can afford to making a larger contribution. In
Slide 12: Key drivers of business value
accommodation. The Government is proposing to replace additional and extra services fees with a new Higher Everyday Living Fee. Much of the detail will be in the rules which are yet to be published. Regis is monitoring the communications from Government to determine the extent of changes that might
Slide 13: Aged Care Provider Conference showcase
was showcased at the Aged Care Quality and Safety Commission’s National Aged Care Provider conference in April 2024. Our staff are benefiting from new technologies and systems such as AI and machine learning to improve employee experience, boost productivity and foresee clinical trends. We intend to
Slide 14: New three-year strategic plan
held by people who began their careers in front-line roles, highlighting our commitment to nurturing talent and providing opportunities for career growth within our Company. With our disciplined financial management over the past 5 years, including paying down debt, Regis has been able to complete a
Slide 15: Moving to our Growth program
Moving to our Growth program Moving now to our growth program. In September, Regis announced the acquisition of two premium residential aged care homes on the Mornington Peninsula, in Victoria, with 262 beds from Ti Tree Operations, opened in 2014 and 2018. These two homes are consistent with Regis’
Slide 16: FY25 update
Our strong performance in FY24, as highlighted by Graham, has continued into the first quarter of FY25 and we are currently tracking modestly ahead of our internal profit target. Our average occupancy improved from 94.9% in Q4 FY24 to 95.5% in Q1 FY25, with spot occupancy on 31 October 2024 at 96.0%
Slide 17: Thanks and close of address
I would like to extend my heartfelt thanks to our more than 11,000 employees for their unwavering dedication, commitment and compassionate care provided to our residents and clients every day. The Board and Executive team are dedicated to enhancing the quality of care and services for our residents
Slide 18: Annual General Meeting 2024
"et Mee ; Annual General Meeting 2024 regis.com.au | 1300 998 100
Slide 19: Artwork by Charmaine Mumbulla
Artwork by Charmaine Mumbulla - 1 -
Slide 20: Welcome and Introduction
Welcome and Introduction Graham Hodges Dr Linda Mellors Ian Roberts Bryan Dorman Chair and Independent Managing Director and Non-Executive Director Non-Executive Director Non-Executive Director Chief Executive Officer Prof Christine Bennett AO Sally Freeman Jodie Leonard Independent Independent Inde
Slide 21: Agenda
Agenda 1. Chair’s Address 2. CEO’s Address 3. Formal Business 4. Closing - 3 -
Slide 22: Chair's Address
Chair’s Address Graham Hodges - 4 -
Slide 23: Regis is a Leading Residential Aged Care Provider
Regis is a Leading Residential Aged Care Provider One of the largest and most geographically diverse aged care portfolios1 30+ years of care and support 1 3 ~7,500 available beds1 1 3 3 28 67 aged care homes1 (100% freehold ownership) and 3 development sites 2 8 6 2 93% single rooms as a percentage
Slide 24: FY24 Recap
FY24 Recap Financial Overview Revenue from Services Average Occupancy ► Revenue from services of $1,014.1 million, up 29.9% on pcp $1,014million 94.1% ► Underlying EBITDA of $107.2 million, up 28.7% on pcp Underlying EBITDA Average Overall Star Rating1 ► Underlying EBITA of $61.5 million, up 55.3% o
Slide 25: 5-Year Financial Performance Overview
5-Year Financial Performance Overview Revenue from Services ($m) Net (Debt) / Cash ($m) 64.9 1014.1 780.6 701.4 725.3 677.9 FY20 FY21 FY22 FY23 FY24 (6.0) (102.9) (142.4) (236.7) FY20 FY21 FY22 FY23 FY24 Underlying EBITDA ($m) Dividends (cps) 107.2 12.92 83.3 9.48 73.4 78.1 72.1 6.63 5.84 4.02 FY20
Slide 26: Residential Aged Care Sector Dynamics
Residential Aged Care Sector Dynamics Net annual movement in residential aged care beds1 Projected demand for residential aged care beds2 450,000 6,453 6,255 400,000 350,000 300,000 3,748 6,546 net new beds - last 4 years 250,000 200,000 2,224 150,000 1,960 1,502 100,000 860 50,000 2024 2039 2023 20
Slide 27: Growth in Beds driven by Acquisitions and Greenfields
Growth in beds driven by Acquisitions and Greenfields Over 1,000 beds added to the portfolio through Camberwell greenfield and recent acquisitions Acquisition of Ti Tree, VIC Portfolio bed growth since IPO1 Acquisition of Lower Burdekin (2 homes & 262 beds) Home for the Aged Society, QLD 8,000 (2 ho
Slide 28: CEO's Address
CEO’s Address Dr Linda Mellors - 10 -
Slide 29: Industry Reform and Sector Changes
Industry Reform and Sector Changes New Aged Care Act AN-ACC ► 1 July 2025 - new Act to commence subject to transitional ► Independent Hospital and Aged Care Pricing Authority arrangements (IHACPA) provides pricing recommendation to Government ► 1 July 2025 - new and enhanced Quality Standards ► AN-A
Slide 30: Government Response to Taskforce
Government Response to Taskforce Government to fund care Direct Care ► Government to continue funding care ► Means tested care fee replaced with a new means tested non-clinical care contribution with lifetime caps Increase funding for everyday living Everyday Living ► Hotelling supplement to become
Slide 31: Focus on Key Drivers of Business Value for Long-Term Success
Focus on Key Drivers of Business Value for Long-Term Success Regis is committed to being a leader in the aged care sector by investing in its portfolio, processes and importantly its people Portfolio People Processes ► Premium, fit-for-purpose and desirable ► Investment in talent acquisition and ► M
Slide 32: FY25 - FY27 Key Strategic Priorities
FY25 - FY27 Key Strategic Priorities Our Vision: To lead aged care with heart and minds Our Values: Our Purpose: Optimism: We are enthusiastic about what we do Personalised and respectful care that embraces the experience Passion: We make a positive difference everyday of ageing Integrity: We act in
Slide 33: Ti Tree Acquisition
Ti Tree Acquisition Capel Sound Mornington Overview ► 170 beds ► 92 beds ► 2 premium residential aged care homes on ► Opened 2014 ► Opened 2018 Mornington Peninsula (VIC) with 262 beds ► 84% single ensuite ► 98% single ensuite ► All facilities purchased on freehold basis ► Acquisition funded by exis
Slide 34: Regis Camberwell
Regis Camberwell Opened 6 November 2024 ► 112 beds ► 4-level residence ► 9 Apartments, 1 Suite, 100 Single Rooms & 1 Double Room ► Advertised room price ranges from $800,000 to $1.8 million - 16 -
Slide 35: Greenfield Development Pipeline
Greenfield Development Pipeline Toowong, QLD Belrose, NSW Carlingford, NSW ► Inner-west Brisbane riverside suburb ► Northern beaches of Sydney ► Western Sydney ► 123 beds ► 99 beds ► 101 beds ► 5-level residence ► 3-level residence ► 3-level residence ► Land area ~5,248 sqm ► Land area ~21,451 sqm ►
Slide 36: FY25 Update
FY25 Update Average Occupancy (%)1 ► Average occupancy for Q1 FY25 was 95.5% 95.5% - Spot occupancy on 31 October 2024 was 96.0% 94.9% ► Average Government revenue per occupied bed day (pobd) for Q1 FY25 was $299.30 93.8% 93.9% 93.4% - 1 October 2024 AN-ACC increase will be largely absorbed by Fair
Slide 37: Outlook
Outlook Improved Workforce Greenfields Availability ► Increased permanent staffing levels ► Ramp-up of Regis Camberwell reducing agency, staff turnover and training costs Funding ► 3 further developments to commence ► Drives better resident outcomes ► Government aged care funding reforms to care, ev
Slide 38: Formal Business
Formal Business Graham Hodges - 20 -
Slide 39: Item 1 Annual Financial Report
Item 1 Annual Financial Report - 21 -
Slide 40: Item 2 Re-Election and Election of Directors
Item 2 Re-Election and Election of Directors 2.1 Christine Bennett 2.2 Jodie Leonard - 22 -
Slide 41: Item 2.1 Re-election of Christine Bennett
Item 2.1 Re-election of Christine Bennett - 23 -
Slide 42: Proxy Position: Item 2.1
Proxy Position: Item 2.1 Re-election of Christine Bennett as Director Proxy position In Favour Undirected Against Total Valid As a % of Abstain proxies* Available Votes Issued Open Capital Votes 237,934,895 194,700 3,701,367 241,830,962 80.28% 43,382 Holders 96 13 9 2 Percentage 98.39% .08% 1.53% *U
Slide 43: Item 2.2 Election of Jodie Leonard
Item 2.2 Election of Jodie Leonard - 25 -
Slide 44: Proxy Position: Item 2.2
Proxy Position: Item 2.2 Election of Jodie Leonard as Director Proxy position In Favour Undirected Against Total Valid As a % of Abstain proxies* Available Votes Issued Open Capital Votes 240,991,169 206,700 629,093 241,826,962 80.27% 47,382 Holders 94 14 9 3 Percentage 99.65% .09% .26% *Undirected
Slide 45: Item 3 Adoption of the Remuneration Report
Item 3 Adoption of the Remuneration Report - 27 -
Slide 46: Proxy Position: Item 3
Proxy Position: Item 3 Adoption of the Remuneration Report Proxy position In Favour Undirected Against Total Valid As a % of Abstain proxies* Available Votes Issued Open Capital Votes 93,696,630 195,700 1,305,134 95,197,464 31.60% 50,458 Holders 63 14 27 9 Percentage 98.42% .21% 1.37% *Undirected pr
Slide 47: Item 4 Approval of Equity Plan Rules
Item 4 Approval of Regis Healthcare Limited Equity Plan Rules - 29 -
Slide 48: Proxy Position: Item 4
Proxy Position: Item 4 Approval of Regis Healthcare Limited Equity Plan Rules Proxy position In Favour Undirected Against Total Valid As a % of Abstain proxies* Available Votes Issued Open Capital Votes 92,554,357 201,581 2,442,636 95,198,574 31.60% 49,348 Holders 69 15 23 7 Percentage 97.22% .21% 2
Slide 49: Item 5 Amend unvested performance rights
Item 5 Approval to amend terms and conditions of unvested performance rights - 31 -
Slide 50: Proxy Position: Item 5
Proxy Position: Item 5 Approval to amend terms and conditions of unvested performance rights Proxy position In Favour Undirected Against Total Valid As a % of Abstain proxies* Available Votes Issued Open Capital Votes 94,827,816 199,084 171,432 95,198,332 31.60% 49,590 Holders 61 15 28 7 Percentage
Slide 51: Item 6 FY25 grant of performance rights to MD/CEO
Item 6 Approval of FY25 grant of performance rights to the MD/CEO under the LTI Plan - 33 -
Slide 52: Proxy Position: Item 6
Proxy Position: Item 6 Approval of FY25 grant of performance rights to the MD/CEO under the LTI Plan Proxy position In Favour Undirected Against Total Valid As a % of Abstain proxies* Available Votes Issued Open Capital Votes 94,735,656 200,354 268,784 95,204,794 31.60% 43,128 Holders 56 14 38 5 Per
Slide 53: Meeting Concludes
Meeting Concludes The detailed results of the polls will be announced on the Company’s website and ASX announcement platform later today - 35 -
Slide 54: Important Information and Disclaimer
Important Information and Disclaimer This Presentation contains summary information about the current activities of Regis Neither Regis Healthcare nor any other person warrants or guarantees the future Healthcare Limited and its controlled entities (Regis Healthcare or the Group). It should be perfo
Slide 55: Annual General Meeting 2024
"et Mee ; Annual General Meeting 2024 regis.com.au | 1300 998 100
Regis Healthcare — Shareholder Meeting (November 2024) on 6ix