Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — Macquarie Australia Conference 2016
22 slides from Regis Healthcare's conference presentation, May 5, 2016
Slide 1: Presentation by Mr Ross Johnston, 5 May 2016
PRESENTED BY Mr Ross Johnston, Managing Director and CEO 5 May 2016
Slide 2: Contents
•1• CONTENTS 01 Business overview and update •2• 02 Growth strategy •8• 03 Summary and outlook • 17 • 5 MAY 2016
Slide 3: Business overview and update
•2• 01 Business overview and update
Slide 4: Portfolio Overview
•3• PORTFOLIO OVERVIEW Regis is one of the largest private providers of residential aged care in Australia ◼ Regis is one of the largest private providers of residential aged care in Australia 21 years experience in ◼ The portfolio is one of the most geographically diversified for-profit delivering
Slide 5: Portfolio Overview: Regis continues to execute its growth strategy
•4• PORTFOLIO OVERVIEW Regis continues to execute its growth strategy Total operational AGED CARE PORTFOLIO STATISTICS places1 Projected as at 1 June Number of facilities Regis Masonic 48 6 Total 54 5,968 54 facilities Total places 6,856 723 7,579 Total operational places 5,257 711 5,968 Total rooms
Slide 6: Masonic Acquisition Update
•5• MASONIC ACQUISITION UPDATE The acquisition will increase the Regis operational places by 14% KEY STATISTICS – MASONIC CARE QLD TRANSACTION Operational Places RAD Pool1 Investment 711 $50.1m $163m 14% increase to the Average RAD $246k On a net basis2 existing Regis portfolio ◼ Transaction on trac
Slide 7: Masonic Care QLD, Portfolio Details
•6• MASONIC CARE QLD, PORTFOLIO DETAILS 711 additional high quality operational places in well located facilities MASONIC CARE QUEENSLAND PORTFOLIO: MASONIC PORTFOLIO RAD DETAILS1 ◼ 711 Aged Care places across 6 facilities in 4 locations – in RAD pool acquired ($millions) $50 Brisbane, Cairns, Towns
Slide 8: Masonic Care QLD, Portfolio Details
•7• MASONIC CARE QLD, PORTFOLIO DETAILS Quality, well located assets – strong fit with Regis Healthcare operational network in QLD Provides Aged Care Facilities Operational Single Construction Independent Home Care or Development Significantly Places Rooms Date Living Units Day Therapy Opportunity R
Slide 9: Growth Strategy
Growth Strategy QS regis|healthcare
Slide 10: Industry Update
•9• INDUSTRY UPDATE 844 places from 2015 Aged Care Approvals Round supports pipeline 2015 ACAR CHANGES TO LEGISLATION – PROVISIONAL ALLOCATIONS ◼ Circa 11,000 residential care places announced for ACAR 2015 in March 2016 ◼ As a step towards delivering more aged care places to support future demand,
Slide 11: Consistent Growth Strategy
• 10 • CONSISTENT GROWTH STRATEGY Taking advantage of industry growth and consolidation to leverage existing portfolio GROWTH STRATEGY – FOUR LEVERS • Regis has acquired 3 single facilities since November 2014, adding 444 places to the portfolio Acquisition of single • We continually review opportun
Slide 12: Strategy Focus
• 11 • STRATEGY FOCUS Execution of growth strategy THE COMPANY MAINTAINS ITS FOCUS ON THE EXECUTION OF ITS GROWTH STRATEGY THROUGH: ◼ Optimising the location of its assets - continuing to focus principally on urban locations ◼ Ensuring efficient facility size – the development and asset renewal prog
Slide 13: Growth Strategy: Development Update
• 12 • GROWTH STRATEGY Taking advantage of industry growth and consolidation to leverage existing portfolio DEVELOPMENT UPDATE ◼ The expansion of the development program continues with 485 places currently under construction ◼ The results of the 2015 ACAR announced in March 16 and the 1,340 new plac
Slide 14: Expansion Pipeline – Greenfield Developments
• 13 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of current and planned developments Total Net Provisional Expected First new additional Club Land Development Allocations construction resident Development places places Services held approval /Licences in hand start admitted Milestone updat
Slide 15: Expansion Pipeline – Greenfield Developments (continued)
• 14 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of current and planned developments (continued) Total new places Total Net Provisional Expected First 1,340 new additional Club Land Development Allocations construction resident Development places places Services held approval /Licences in
Slide 16: Development Pipeline – Cashflow Considerations
• 15 • DEVELOPMENT PIPELINE – CASHFLOW CONSIDERATIONS Increasing capital expenditure reflects the ramp up of our development pipeline FUTURE DEVELOPMENT CAPEX SPEND AND ASSOCIATED RAD CASHFLOW ◼ Approximately $170m will have been spent on the current development pipeline between listing (7 October 2
Slide 17: RAD Cashflow Will Payback Capex
• 16 • RAD CASHFLOW WILL PAYBACK CAPEX Cumulative cashflow profile example: Club Services Greenfield Development, 120 Places ◼ For Club Services facilities, the cashflow from RADs is anticipated to at least fully fund the capex spend for the development Positive 2-3 years - land acquisition, design,
Slide 18: Summary and outlook
• 17 • 03 Summary and outlook
Slide 19: FY16 Outlook
• 18 • FY16 OUTLOOK FY16 results on track to be in line with previous guidance ◼ The FY16 results inclusive of the impact of the Masonic acquisition are anticipated to be: ● EBITDA of $87m to $92m ● NPAT of $45m to $47m (after depreciation expense of $22-$23m) ● The total capex spend for FY16 will b
Slide 20: Masonic Acquisition Impact
• 19 • MASONIC ACQUISITION IMPACT The Masonic acquisition will contribute positively to earnings in FY17 FY17 MASONIC ACQUISITION ◼ There will be a positive impact on EBITDA in FY17, in the range of $10m-$12m in FY17 and NPAT circa $1m-$2m ◼ Occupancy is already at target levels ◼ Due to the high qu
Slide 21: Summary
• 20 • SUMMARY Regis maintains its focus on the execution of its growth strategy ◼ The Greenfield development pipeline continues to ramp up: ● 211 new places were delivered in FY16 ● The development pipeline now includes 1,340 new places (1,099 net additional places) ● Success in gaining 844 provisi
Slide 22: Important Notice
• 21 • IMPORTANT NOTICE This presentation contains general information about the activities of Regis Healthcare Limited (Regis) which is current as at 1 May 2016. It is in summary form and does not purport to be complete. It presents financial information on both a statutory basis (prepared in accor
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