Radius Residential Care Ltd · NZX:RAD
Radius Residential Care — H1 FY2023 Earnings Presentation
35 slides from Radius Residential Care's earnings presentation, November 2022
Slide 1: Half Year Result
Half Year Result F O R 6 MO N TH S TO 3 0 SEP TEMB ER 2 0 2 2
Slide 2: Presenting Today
1HY23 Radius Care Presenting Today Andrew Peskett Wendy Jenkins Chief Executive Officer Chief Financial Officer BA (Hons) BCom, CA, MBA Appointed Chief Executive Officer Appointed Chief Financial in February 2022 Officer in July 2022 Previously at Metlifecare for over Previously GM Management 14 yea
Slide 3: Agenda
1HY23 Radius Care Agenda OVERVIEW OF 1HY23 PERFORMANCE Continued execution of growth strategy ANALYSIS OF RESULT Continuation of strong track record POSITIONING RADIUS CARE Strategy update APPENDICES − Key operational and financial metrics − Summary Profit and Loss, Balance Sheet and Cash Flow 3 Rad
Slide 4: Overview of 1HY23 Performance
Overview of 1HY23 Performance CONTINUED EXECUTION OF G R O W T H S T R AT E G Y Radius Potter Home
Slide 5: 1HY23 Business Highlights and Key Events
1HY23 Radius Care 1HY23 Business Resilience Business Resilience of the business and people to ongoing Covid impacts with Highlights occupancy remaining well above industry averages. and Key Increased Property Ownership Events Settlement of UCG acquisition consisting of four strategic leased sites in
Slide 6: 1HY23 Financial Highlights
1HY23 Radius Care 1HY23 Financial Performance Financial • • Reported Net Profit After Tax up 29.2% to $1.7m Pre-NZ IFRS 16 Underlying EBITDA up 36.7% to $7.0m Highlights • AFFO up 7.1% to $2.5m • Underlying EBITDA per care bed up 2.3% to $10.6k • Accommodation supplements increased 16.9% to $3.7m •
Slide 7: Our People
1HY23 Radius Care Our People Showed incredible resilience to continue the best of care despite challenging conditions with COVID-19 Intensified efforts to recruit overseas nurses with a steady stream of applications resulting in 120 IQNs starting shortly filling all current vacancies Introduction of
Slide 8: Radius Care
Radius Potter Home 1HY23 Radius Care 8
Slide 9: Analysis of Result
Analysis of Result C O N T I N U AT I O N OF STRONG TRACK RECORD Radius St Helenas 9
Slide 10: Financial Performance Overview
1HY23 Radius Care Financial Performance Overview Steady revenue and EBITDA growth despite challenging market conditions Total Revenue1 Pre-NZ IFRS 16 Underlying EBITDA 1HY23 Revenue of $69.9m up 7.6% vs pcp 1HY23 Pre-NZ IFRS 16 Underlying EBITDA of $7.0m, up 36.7% vs pcp 80.0 8.0 70.0 7.0 60.0 6.0 5
Slide 11: Occupancy
1HY23 Radius Care Occupancy Strong occupancy settling at 91.9% versus the industry average 1 of 85.3% for the September 2022 quarter 95 94 93.7% 93.4% 93.1% 92.7% 93 92.3% 92.0% 92.0% 91.9% 92 91.6% 91.4% 91.0% 91 90.4% Occupancy rate % 90.1% 90 89.6% 89 88.0% 87.8% 88 87.2% 87.2% 87.1% 87.2% 87.3%
Slide 12: Bed Mix
1HY23 Radius Care Bed Mix Beds certified for high acuity and specialist care are 87% of the portfolio with significant flexibility of care ~87% of Radius Care Beds are certified for high acuity Radius Care 1HY22 12.7% 47.3% 22.5% 11.0% 5.6% 0.9% operates a Care Bed significant number Type of swing b
Slide 13: Continued Growth in Underlying EBITDA per Care Bed
1HY23 Radius Care Continued Growth in Underlying EBITDA per Care Bed Underlying EBITDA per care bed1 ($000) 11.0 10.0 9.0 8.0 10.7 10.6 10.3 7.0 6.0 5.0 1HY21 1HY22 1HY23 Significantly greater than the industry average. Continuing growth in this key metric is expected. 13 1 Underlying EBITDA for age
Slide 14: Cash Flow and Dividends
1HY23 Radius Care Cash Flow and Dividends The pay out rate is 58% of AFFO Dividends AFFO Interim Dividend - 1HY23 AFFO of $2.5m • Interim dividend of 0.70 cents per share including full imputation credits of 0.20 cents 3.0 per share. • Ex-dividend date – 19 December 2022 • Record date – 20 December
Slide 15: UCG Transaction Disclosure Amendment
1HY23 Radius Care UCG Transaction Disclosure Amendment UCG Expense Savings - Radius Care identified that the accounting treatment outlined in the Special Notice of Meeting (NoM) dated 14 April 2022 contained a presentation error in respect of the information on the impact of the transaction on Net P
Slide 16: Strategy Update
Strategy Update 16 Radius Glaisdale
Slide 17: Strategy Update
1HY23 Radius Care Strategy Update Significant strategy-driven property transactions undertaken Since it first launched in 2003, Radius Care has successfully executed its growth strategy… … which is informed by its four strategic pillars 2008 2013 2018 2020 2022 2023 Opportunistic acquisitions Acquis
Slide 18: Opportunistic acquisitions - Matamata Country Lodge
1HY23 Radius Care Opportunistic acquisitions - Matamata Country Lodge Example of the Company’s strategy to opportunistically acquire facilities which complement the existing portfolio while leveraging Radius capabilities to realise efficiencies and add value The strategic acquisition of a high-quali
Slide 19: Acquisition of strategically important leased facilities
1HY23 Radius Care Acquisition of strategically important leased facilities Leased facilities purchased since Radius Care listed Overview and benefits of the ownership model Ohaupo acquisition sites UCG acquisition sites (Aug-21) (May-22) Radius Care • Since its listing in December 2020, Radius Care
Slide 20: Developments
1HY23 Radius Care Developments Thornleigh Park Taupaki Gables NEW PLYMOUTH AUCKLAND 20 Completing December 2022 24 Targeted early 2023 Care Beds Care Beds 67 70 Lexham Park Northwood Villas Care Beds KATIKATI 41 CHRISTCHURCH Targeted September 2023 Targeted late 2023 27 30 Care Suites Apartments Car
Slide 21: Future Portfolio Developments
1HY23 Radius Care Future Portfolio Developments Continuation of strategy will result in increased scale and portfolio diversity Current portfolio Future portfolio1 RV units RV units ✓ Strong focus on care offering retained Care suites ✓ Increased portfolio scale and cost efficiencies ✓ Larger facili
Slide 22: FY23 Outlook
1HY23 Radius Care FY23 Outlook Improved second half performance building on recent acquisitions Embed Matamata Country Lodge into portfolio and drive performance improvement and unit sales Development of 24 Care Beds at Thornleigh Park in New Plymouth on track to be completed next month Construction
Slide 23: Radius Care
1HY23 Radius Care 23 Radius St Helenas
Slide 24: Appendices
Appendices 24 Radius Matamata Country Lodge
Slide 25: Key Investment Highlights
1HY23 AP P E N D I X 1 Radius Care Key Investment Highlights 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 Deman
Slide 26: At a Glance
1HY23 AP P E N D I X 2 Radius Care National aged care focused portfolio with strong regional presence, At a Glance owing 13 and leasing 11 of the 24 sites nationwide 1,860+ 1,700+ Beds Employees 92.7% 7.3% Care Beds ILUs 26 ILUs are Independent Living Units
Slide 27: Key operational and financial metrics
1HY23 Radius Care AP P E N D I X 3 Key operational and financial metrics Operating Metrics DMF terms for Retirement Village units 1HY23 1HY22 1HY21 1HY20 Number of Care Beds (period end) 1 1,865 1,715 1,714 1,704 • 30% over three years • average resident tenure: 3.9 years Average Care Bed Occupancy2
Slide 28: Financials - Statement of Comprehensive Income
1HY23 Radius Care AP P E N D I X 4 Financials ($000) 1HY23 1HY22 1HY21 Statement of Revenue Revenue from contracts with customers 69,101 64,458 59,471 Comprehensive Income Deferred management fees 768 449 389 Total revenue 69,869 64,907 59,860 • Reported Net Profit After Fair value movement of inves
Slide 29: Financials - Statement of Financial Position
1HY23 Radius Care AP P E N D I X 5 Financials ($000) 1HY23 FY22 FY21 Assets Statement of Cash and cash equivalents 128 2,088 2,761 Financial Position Trade and other receivables 14,232 9,882 7,181 Inventories 761 768 548 • Investment properties of Current tax assets 59 - - $69.6m, up $23.6m from FY2
Slide 30: Financials - Statement of Cash Flows
1HY23 Radius Care ($000) 1HY23 1HY22 1HY21 AP P E N D I X 6 Financials Cash flows from operating activities Receipts from residents for care fees and village fees 65,856 62,670 60,788 Receipts of Government subsidy - - 353 Payments to suppliers and employees (60,039) (54,899) (48,875) Statement of C
Slide 31: Reconciliation of NZ GAAP to non-GAAP measures
1HY23 Radius Care AP P E N D I X 7 Financials ($000) Profit for the period 1HY23 1,724 1HY22 1,334 1HY21 2,065 Adjustments Reconciliation of NZ Non-recurring or infrequent items GAAP financial Remove: COVID-19 related expenses 1,267 331 653 Remove: Government COVID-19 Subsidy - - (857) measures to n
Slide 32: Directory of facilities - Leased
1HY23 AP P E N D I X 8 Radius Care Directory of facilities LEASED CURRENT LEASE TIME TO NEXT TIME TO FINAL FACILITY LOCATION CARE BEDS UNITS RIGHTS OF RENEWAL LANDLORD TERM RENEWAL EXPIRY Kensington Hamilton 96 - 10 yrs 1.6 yrs 2 x 10 yrs 11.6 yrs A Potter Home Whangarei 55 - 20 yrs 7.1 yrs 2x 15 yr
Slide 33: Directory of facilities - Owned
1HY23 AP P E N D I X 9 Radius Care Directory of facilities OWNED TOTAL CARE FACILITY LOCATION UNITS FACILITY CARE BEDS UNITS BEDS St Helenas Christchurch 52 - Leased 921 - Thornleigh Park New Plymouth 63 - Owned 944 147 Lexham Park Katikati 63 - Heatherlea New Plymouth 55 - Taupaki Gables Kumeu 60 -
Slide 34: Important Notice and Disclaimer
1HY23 Radius Care Important 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. This presentation sets out information r
Slide 35: Thank You
1HY23 Radius Care Thank You 35
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