Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — H1 2022 Earnings Presentation
38 slides from Regis Healthcare's earnings presentation, Feb 23, 2022
Slide 1: FY22 Half-Year Results Presentation
FY22 Half-Year Results Presentation 23 February 2022 Regis Shenley Manor, Victoria
Slide 2: Contents
Regis Healthcare Limited | FY22 Half-Year Results Presentation Contents ● Aged Care Sector Reform ● COVID-19 ● Financial Performance ● Other Matters ● Strategy Update ● Outlook ● Questions ● Appendices Regis Inala, Victoria -1-
Slide 3: Aged Care Sector Reform
Regis Healthcare Limited | FY22 Half-Year Results Presentation Aged Care Sector Reform Aged Care Environment Increasingly Challenging Now more than 6 years of challenging environment for aged care sector, including providers Two and a half years of Royal Commission Inquiry, in addition to multiple p
Slide 4: Aged Care Sector Reform (continued)
Regis Healthcare Limited | FY22 Half-Year Results Presentation Aged Care Sector Reform (continued) Regis Actively Participating in Government Reform Agenda Key Matters in H1 FY22 (external) Key Matters in H1 FY22 (internal) ► Australian Government response to Royal Commission ► Regis timetable for r
Slide 5: COVID-19
Regis Healthcare Limited | FY22 Half-Year Results Presentation COVID-19 ► Regis continues to maintain all necessary support to protect residents, clients and employees ► Key features of response are Pandemic Planning Committee, PPE hubs, testing protocols and Outbreak Management Plans ► Regis has be
Slide 6: Financial Performance
Financial Performance Regis Kuluin, Queensland -5-
Slide 7: H1 FY22 Financial Overview
Regis Healthcare Limited | FY22 Half-Year Results Presentation H1 FY22 Financial Overview ► Revenue from services of $364.2 million, up 3.1% on pcp Revenue from Services Net Operating Cash Flow3 ► Average occupancy of 89.3% (H1 FY21: 88.3%) $364.2million $126.7million ► Additional $10 per day Basic
Slide 8: Financial Summary
Regis Healthcare Limited | FY22 Half-Year Results Presentation Financial Summary Restated1 H1 FY21 $ millions H1 FY22 H1 FY21 to H1 FY22 Revenue from services 364.2 353.1 3.1% Other income2 31.4 35.2 (10.8%) Staff expenses3 260.0 253.4 (2.6%) Adjusted EBITDA4 44.1 39.0 13.1% COVID-19 Expenses 4.5
Slide 9: Key Operational Statistics
Regis Healthcare Limited | FY22 Half-Year Results Presentation Key Operational Statistics H1 FY21 ► Movement in average available operational places Operational Statistics H1 FY22 H1 FY21 to H1 FY22 mainly attributable to FY21 closure of Melbourne- Average available operational places (#) 1 7,104
Slide 10: One-Off / Normalisation Items
Regis Healthcare Limited | FY22 Half-Year Results Presentation One-Off / Normalisation Items The following one-off items are included in Profit and Loss: ► H1 FY22 COVID-19 expenses include: $ millions (before tax) H1 FY22 H1 FY21 • $3.7 million of staff costs COVID-19 staff and other expenses 4.5 9
Slide 11: Net Debt and Cash Flow
Regis Healthcare Limited | FY22 Half-Year Results Presentation Net Debt and Cash Flow $ millions Purpose Limit Maturity Cash Flow Debt Facility A Working capital 150.0 March 2023 ► Net cash flow from operating activities of $126.7 million1 (H1 FY21: $88.6 million) Debt Facility B Working capital 275
Slide 12: Capital Expenditure
Regis Healthcare Limited | FY22 Half-Year Results Presentation Capital Expenditure Replacement Capital Expenditure $ millions H1 FY22 ► Primarily maintenance capital expenditure Replacement Capital Expenditure - Residential Aged Care Homes 13.5 Residential Aged Care Developments Replacement Capital
Slide 13: Resident Profile
Regis Healthcare Limited | FY22 Half-Year Results Presentation Resident Profile Payment Preference (Non-Concessional) 31 December 30 June 31 December 100% Number of Residents 2020 2021 2021 90% RAD 1,797 1,790 1,753 80% Combination (RAD/DAP) 1,018 1,100 1,135 70% 59% 57% 56% DAP 243 265 269 60% Tota
Slide 14: Other Matters
Other Matters Regis Salisbury, Queensland - 13 -
Slide 15: Other Matters
Regis Healthcare Limited | FY22 Half-Year Results Presentation Other Matters Potential Employee Entitlement Underpayments ► As disclosed in the 2021 Annual Financial Report, Regis announced to the ASX on 9 August 2021 that it had identified potential underpayments of employee entitlements to certain
Slide 16: Strategy Update
Strategy Update Regis Port Coogee, Western Australia - 15 -
Slide 17: Aged Care Environment Requires Adaptive Strategic Response
Regis Healthcare Limited | FY22 Half-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 18: Clear and Focused 3-Year Strategy
Regis Healthcare Limited | FY22 Half-Year Results Presentation Clear and Focused 3-Year Strategy - 17 -
Slide 19: Culture of Care
Regis Healthcare Limited | FY22 Half-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 20: Positive People and Practice
Regis Healthcare Limited | FY22 Half-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 21: Ensuring Our Future
Regis Healthcare Limited | FY22 Half-Year Results Presentation Ensuring Our Future Transformational change through digital enablers, operational excellence and growth In Place: FY22 Priorities: ► 3-year Strategic Plan Completed ► Key participant in Aged Care Reform Network ► Brand refresh ► Home Car
Slide 22: Environmental, Social and Governance (ESG)
Regis Healthcare Limited | FY22 Half-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 23: Aged Care Developments
Regis Healthcare Limited | FY22 Half-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 24: Outlook
Outlook Regis Lutwyche, Queensland - 23 -
Slide 25: Outlook
Regis Healthcare Limited | FY22 Half-Year Results Presentation Outlook Performance ► Workforce strategy in place to address sector staff shortages ► Sector reform financial implications • Changes to care funding model • Requirement for mandated care minutes ► Fair Work Commission outcome for workfor
Slide 26: Questions
Questions Regis Shenley Manor, Victoria - 25 -
Slide 27: Appendices
Appendices Regis Home Care - 26 -
Slide 28: Appendix A: Income Statement
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix A: Income Statement Restated1 $ millions H1 FY22 H1 FY21 Revenue from Services Government revenue 260.2 253.0 Resident revenue 100.1 96.4 Other revenue 3.9 3.7 Revenue from Services 364.2 353.1 Other income2 31.4 35.2 Total Reve
Slide 29: Appendix B: Statement of Financial Position
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix B: Statement of Financial Position 31 December 30 June $ millions 2021 2021 Cash and cash equivalents 44.0 3.9 Trade and other receivables 12.2 9.1 Other current assets 12.1 8.9 Income tax receivables 0.1 - Total Current Assets
Slide 30: Appendix C: Cash Flow Statement
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix C: Cash Flow Statement $ millions H1 FY22 H1 FY21 Cash Flows from Operating Activities Receipts from customers and Government subsidies 396.2 391.1 Payments to suppliers and employees (309.8) (305.2) Operational Cash Flows Befor
Slide 31: Appendix D: Non-IFRS Reconciliation
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix D: Non-IFRS Reconciliation Restated1 $ millions H1 FY22 H1 FY21 Profit Before Income Tax (5.1) 12.3 Depreciation 20.8 22.4 Amortisation2 20.3 - Finance costs 35.7 37.7 Reported EBITDA3 (post AASB 16) 71.7 72.4 RAD/Bond imputed r
Slide 32: Appendix E: Deregulation of Operational Places
Regis Healthcare Limited | FY22 Half-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 Australian Government announced in the 2021-22 Budget that it would be investing $17.7 billion int
Slide 33: Appendix F: Impact of Prior Year Restatement
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix F: Impact of Prior Year Restatement Imputed 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 under wh
Slide 34: Appendix F: Impact of Prior Year Restatement (continued)
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix F: Impact of Prior Year Restatement (continued) Potential Employee Underpayments ► As previously reported, Regis has identified potential underpayments of employee entitlements to certain current and former employees under its e
Slide 35: Appendix G: Australian Government Response to Royal Commission
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix G: Australian Government Response to Royal Commission Impact on Regis Highlights: ► Government budget allocation of $17.7 billion over forward estimates • Including $3.2 billion of Government funded Basic Daily Fee and $3.9 bill
Slide 36: Appendix H: Regis is a Well Established National Provider
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix H: 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 7,10
Slide 37: Appendix I: Definitions of Non-IFRS Financial Measures
Regis Healthcare Limited | FY22 Half-Year Results Presentation Appendix I: Definitions of Non-IFRS Financial Measures H1 FY21 means half-year ended 31 December 2020 H2 FY21 means half-year ended 30 June 2021 FY21 means full-year ended 30 June 2021 H1 FY22 means half-year ended 31 December 2021 Capit
Slide 38: Important Information
Regis Healthcare Limited | FY22 Half-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