Regis Healthcare Ltd. · ASX:REG
Regis Healthcare — Macquarie Australia Conference 2016
22 slides from Regis Healthcare's conference presentation, May 3, 2016
Slide 1: For personal use only
For personal use only PRESENTED BY Mr Ross Johnston, Managing Director and CEO 5 May 2016
Slide 2: Contents
•1• For personal use only 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 For personal use only 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 For personal use only ◼ 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
Slide 5: Regis continues to execute its growth strategy
•4• PORTFOLIO OVERVIEW Regis continues to execute its growth strategy For personal use only 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
Slide 6: Masonic acquisition update
•5• MASONIC ACQUISITION UPDATE The acquisition will increase the Regis operational places by 14% For personal use only KEY STATISTICS – MASONIC CARE QLD TRANSACTION Operational Places RAD Pool1 Investment 711 $50.1m $163m 14% increase to the Average RAD $246k On a net basis2 existing Regis portfolio
Slide 7: Masonic Care QLD, portfolio details
•6• MASONIC CARE QLD, PORTFOLIO DETAILS 711 additional high quality operational places in well located facilities For personal use only MASONIC CARE QUEENSLAND PORTFOLIO: MASONIC PORTFOLIO RAD DETAILS1 ◼ 711 Aged Care places across 6 facilities in 4 locations – in RAD pool acquired ($millions) $50 B
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 For personal use only Provides Aged Care Facilities Operational Single Construction Independent Home Care or Development Significantly Places Rooms Date Living Units Day
Slide 9: Growth Strategy
For personal use only Growth Strategy •8• 02
Slide 10: Industry update: 2015 Aged Care Approvals Round
•9• INDUSTRY UPDATE 844 places from 2015 Aged Care Approvals Round supports pipeline For personal use only 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 s
Slide 11: Consistent growth strategy
• 10 • CONSISTENT GROWTH STRATEGY Taking advantage of industry growth and consolidation to leverage existing portfolio For personal use only GROWTH STRATEGY – FOUR LEVERS • Regis has acquired 3 single facilities since November 2014, adding 444 places to the portfolio Acquisition of single • We conti
Slide 12: Strategy focus
• 11 • STRATEGY FOCUS Execution of growth strategy For personal use only 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
Slide 13: Growth strategy: development update
• 12 • GROWTH STRATEGY Taking advantage of industry growth and consolidation to leverage existing portfolio For personal use only 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
Slide 14: Expansion pipeline – greenfield developments
• 13 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of current and planned developments For personal use only Total Net Provisional Expected First new additional Club Land Development Allocations construction resident Development places places Services held approval /Licences in hand start ad
Slide 15: Expansion pipeline – greenfield developments (continued)
• 14 • EXPANSION PIPELINE – GREENFIELD DEVELOPMENTS Status of current and planned developments (continued) For personal use only Total new places Total Net Provisional Expected First 1,340 new additional Club Land Development Allocations construction resident Development places places Services held
Slide 16: Development pipeline – cashflow considerations
• 15 • DEVELOPMENT PIPELINE – CASHFLOW CONSIDERATIONS Increasing capital expenditure reflects the ramp up of our development pipeline For personal use only FUTURE DEVELOPMENT CAPEX SPEND AND ASSOCIATED RAD CASHFLOW ◼ Approximately $170m will have been spent on the current development pipeline betwee
Slide 17: RAD cashflow will payback capex
• 16 • RAD CASHFLOW WILL PAYBACK CAPEX Cumulative cashflow profile example: Club Services Greenfield Development, 120 Places For personal use only ◼ 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 - lan
Slide 18: Summary and outlook
• 17 • 03 For personal use only Summary and outlook
Slide 19: FY16 outlook
• 18 • FY16 OUTLOOK FY16 results on track to be in line with previous guidance For personal use only ◼ 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
Slide 20: Masonic acquisition impact
• 19 • MASONIC ACQUISITION IMPACT The Masonic acquisition will contribute positively to earnings in FY17 For personal use only 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 level
Slide 21: Summary
• 20 • SUMMARY Regis maintains its focus on the execution of its growth strategy For personal use only ◼ 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
Slide 22: Important notice
• 21 • IMPORTANT NOTICE For personal use only 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 ba
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