Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — H1 FY21 Earnings Presentation
30 slides from Regis Healthcare's earnings presentation, Feb 24, 2021
Slide 1: FY21 Half-Year Results Presentation
FY21 Half-Year Results Presentation 24 February 2021 MD & CEO Dr Linda Mellors CFO Mr Rick Rostolis Regis Ferny Grove, Queensland
Slide 2: Contents
Regis Healthcare Limited | FY21 Half-Year Results Presentation Contents Difficult Operating Environment COVID-19 Update Financial Performance Strategy & Growth Industry Update & Outlook Questions Appendices -1-
Slide 3: Difficult Operating Environment
Regis Healthcare Limited | FY21 Half-Year Results Presentation Difficult Operating Environment ► Current environment continues to be impacted by: • Sustained negative sector commentary in media and Royal Commission • Prolonged lack of sustainable policy and funding settings • Negative jaws/margin co
Slide 4: COVID-19 Update
Regis Healthcare Limited | FY21 Half-Year Results Presentation COVID-19 Update Regis was impacted by the community transmission second wave in Melbourne Confirmed Deaths with Current Status1 Victorian Homes COVID-19 Cases COVID-19 (23 February 2021) Regis - Brighton 24 Residents 11 Residents Outbrea
Slide 5: Financial Performance
Financial Performance Regis East Malvern, Victoria -4-
Slide 6: H1 FY21 Financial Overview
Regis Healthcare Limited | FY21 Half-Year Results Presentation H1 FY21 Financial Overview ► Revenue from services of $353.1 million, up 6.3% on pcp ► Includes $7.7 million of COVID-19 Government funding Revenue from Services Net Operating Cash Flow4 ► EBITDA (adjusted)1 of $42.6 million, down 1.2% o
Slide 7: Financial Summary
Regis Healthcare Limited | FY21 Half-Year Results Presentation Financial Summary H1 FY20 $ millions H1 FY21 H1 FY20 to H1 FY21 Revenue from Services 353.1 332.2 6.3% EBITDA (adjusted)1 42.6 43.1 (1.2%) NPAT 11.0 12.1 (8.9%) Average occupancy % 88.3% 87.9% 0.4pts Staff expenses / revenue % 72.3% 71
Slide 8: Key Operational Statistics
Regis Healthcare Limited | FY21 Half-Year Results Presentation Key Operational Statistics H1 FY20 ► Movement in average available operational places Operational Statistics H1 FY21 H1 FY20 to H1 FY21 mainly attributable to 1 March 2020 acquisition of Average available operational places (#) 7,170 7
Slide 9: One-Off Items
Regis Healthcare Limited | FY21 Half-Year Results Presentation One-Off Items ► COVID-19 Government funding includes: $ millions (before tax) H1 FY21 H1 FY20 • $6.8 million one-off funding • $0.9 million temporary ACFI uplift COVID-19 Government funding 7.7 ► COVID-19 costs include: COVID-19 costs (9
Slide 10: Net Debt and Cash Flow
Regis Healthcare Limited | FY21 Half-Year Results Presentation Net Debt and Cash Flow $ millions Purpose Limit Maturity Cash Flows Debt Facility A Working capital 150.0 Feb 2023 ► Net cash flows from operating activities of 49.01 million (H1 FY20: $74.01 million) Debt Facility B Working capital 275.
Slide 11: Resident Profile
Regis Healthcare Limited | FY21 Half-Year Results Presentation Resident Profile Number of Residents 31 Dec 2019 Incoming1 Outgoing 30 June 2020 Incoming1 Outgoing 31 Dec 2020 RAD 1,905 204 245 1,864 193 260 1,797 Combination (RAD/DAP) 864 286 202 948 263 193 1,018 DAP 222 110 72 261 91 109 243 Total
Slide 12: Washington H. Soul Pattinson (WHSP) Proposals to Acquire Regis
Regis Healthcare Limited | FY21 Half-Year Results Presentation Washington H. Soul Pattinson (WHSP) Proposals to Acquire Regis ► Initial confidential, non-binding indicative proposal to acquire Regis for $1.65 per share received from WHSP on 30 September 2020 ► Subsequently, WHSP announced non-bindin
Slide 13: Strategy & Growth
Strategy & Growth - 12 -
Slide 14: Portfolio Overview
Regis Healthcare Limited | FY21 Half-Year Results Presentation Portfolio Overview Regis is one of the largest providers of Residential Aged Care in Australia 1 Darwin Key Portfolio Statistics (as at 31 December 2020) 2 Cairns Number of homes: Metro1 49 3 Townsville Number of homes: Regional 15 Total
Slide 15: Strategy Adapted for Current Environment
Regis Healthcare Limited | FY21 Half-Year Results Presentation Strategy Adapted for Current Environment Current environment impacted by COVID-19, pending Royal Commission outcomes and Government response Organic growth strategy largely on hold pending greater certainty of investment returns Key focu
Slide 16: Aged Care Developments
Regis Healthcare Limited | FY21 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 ► Recommencemen
Slide 17: Environmental, Social and Governance (ESG)
Regis Healthcare Limited | FY21 Half-Year Results Presentation Environmental, Social and Governance (ESG) Regis maintains a key focus on its ESG impact ► Solar and LED projects completed resulting in 4% reduction in emissions and usage ► Partnership with Turtle Tribe to supply all homes with toothbr
Slide 18: Industry Update & Outlook
Industry Update & Outlook - 17 -
Slide 19: Aged Care Industry Update
Regis Healthcare Limited | FY21 Half-Year Results Presentation Aged Care Industry Update Key Industry Issues Impact for Regis ► Regis supports the important work of the Royal Commission in ensuring older people receive quality aged care from a sustainable aged care sector Royal Commission into Quali
Slide 20: Other Matters
Regis Healthcare Limited | FY21 Half-Year Results Presentation Other Matters Cyber-Security Incident As previously announced, on 3 August 2020, the Company advised the ASX that it had been the target of a cyber-security attack. The Company promptly implemented its back-up and business continuity sys
Slide 21: Outlook
Regis Healthcare Limited | FY21 Half-Year Results Presentation Outlook Performance ► Regis will continue to maintain excellent resident care standards and optimise business performance despite the difficult challenges faced by the industry ► Targeted business performance initiatives implemented in H
Slide 22: Questions
Questions Regis Mildura, Victoria - 21 -
Slide 23: Appendices
Appendices - 22 -
Slide 24: Appendix A: Income Statement
Regis Healthcare Limited | FY21 Half-Year Results Presentation Appendix A: Income Statement $A millions H1 FY21 H1 FY20 H2 FY20 FY20 Revenue from Services Government revenue 253.0 229.5 241.6 471.1 Resident revenue 96.4 98.0 97.0 195.0 Other revenue 3.7 4.7 7.1 11.8 Revenue from Services 353.1 332.2
Slide 25: Appendix B: Statement of Financial Position
Regis Healthcare Limited | FY21 Half-Year Results Presentation Appendix B: Statement of Financial Position 31 December 30 June 31 December $A millions 2020 2020 2019 Cash and cash equivalents1 46.5 3.8 27.0 Trade and other receivables 8.1 9.7 8.6 Other current assets 9.6 6.2 9.8 Income tax receivabl
Slide 26: Appendix C: Cash Flow Statement
Regis Healthcare Limited | FY21 Half-Year Results Presentation Appendix C: Cash Flow Statement $A millions H1 FY21 H1 FY20 H2 FY20 FY20 Cash Flows from Operating Activities Receipts from customers and Government subsidies1 391.1 369.8 296.5 666.3 Payments to suppliers and employees (305.2) (296.3) (
Slide 27: Appendix D: RAD and Bond Pool
Regis Healthcare Limited | FY21 Half-Year Results Presentation Appendix D: RAD and Bond Pool $A millions - Summary of Movements H1 FY21 H2 FY20 H1 FY20 Opening RAD / Bond Balance 1,157.6 1,129.1 1,085.0 RAD and accommodation bond cash outflows (171.5) (145.6) (162.5) RAD and accommodation bond cash
Slide 28: Appendix E: AASB Leases
Regis Healthcare Limited | FY21 Half-Year Results Presentation Appendix E: AASB 16 Leases AASB 16 Leases became effective on 1 July 2019 requiring operating lease agreements to be recognised on balance sheet ► On adoption of AASB 16 Leases, the Group has recognised: • depreciation and interest expen
Slide 29: Appendix F: Definitions of Non-IFRS Financial Measures
Regis Healthcare Limited | FY21 Half-Year Results Presentation Appendix F: Definitions of Non-IFRS Financial Measures H1 FY20 means half-year ended 31 December 2019 H1 FY21 means half-year ended 31 December 2020 H2 FY20 means half-year ended 30 June 2020 FY20 means full-year ended 30 June 2020 FY21
Slide 30: Important Information
Regis Healthcare Limited | FY21 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