3 May 2018 Regis Woodlands WA Artists 1 Impression Regis - PowerPoint PPT Presentation

3 May 2018 Regis Woodlands WA

Artists • 1 • Impression Regis Port Coogee WA CONTENTS 01 • 2 • Business overview 02 • 7 • Development update 03 • 22 • Summary 3 MAY 2018

• 2 • 01 Business overview

• 3 • • 3 • RESIDENTIAL AGED CARE MARKET What is Residential Aged Care ? KEY INDUSTRY DYNAMICS 1 RESIDENTIAL AGED CARE SECTOR COMPOSITION IN AUSTRALIA 3  $17.2 billion industry size by annual revenue Bupa 9.3% Govt. 5% Regis 8.4%  $11.3 billion of government funding paid to aged care providers in FY16, $4.5 billion was Opal 8.3% resident funded. $1.3 billion was from other Private sources 39% Not-for- Others Estia 7.7% profit  Circa 200,000 2 places, needs to increase by 56% 56% Japara 83,500 during the next decade to meet 5.3% required demand as the Australian population Allity 4.9% ages  Supply is regulated via the issuing of licences RESIDENTIAL AGED CARE, GOVERNMENT FUNDING 4 by the Federal Government  Unique capital funding model (RADs) 16.0 supports development 14.6 13.9 12.0 13.1 12.5  Highly fragmented market with 2,669 facilities 12.0 11.3 A$bn operated by a range of private, not for profit 8.0 and government entities 4.0 – FY16 FY17 FY18 FY19 FY20 FY21 1. Aged Care Financing Authority (ACFA) Report dated July 2017 2. Aged Care Service Listing as at 30 June 2017 3. Estimate based on 30 June 2017 Aged Care Service List, Provider data and ACFA Report dated July 2017 4. Source – Federal Government Budget Papers (actual and forecast funding)

• 4 • WHO IS REGIS ? One of the largest providers of Residential Aged Care in Australia As at 1 May 2018 Total Total operational Number of Facilities 59 places Total places 8,323 6,612 Total operational places 6,612 59 Facilities Total bedrooms 5,902 % operational places in single bedroom 83% % single bedrooms 93% REGIS FACILITY NETWORK Average Facility size (number of operational places) 112 Club Services Facilities 18 Darwin (1) Facilities approved as Significantly Refurbished 1 36 Cairns (2) Townsville (1) NT  Regis’ portfolio is one of the most geographically diversified portfolios in QLD Australia WA Sunshine Coast (4) Brisbane (13)  Regis’ facilities are primarily located in metropolitan areas SA  Many of the facilities and services offerings are targeted at the premium Coastal NSW (2) Perth (6) NSW end of the market Bunbury (1) Sydney (4) VIC  The company has more than 25 years of experience in developing, Adelaide (4) Melbourne (16) acquiring and managing facilities and caring for residents Mildura (2) Launceston (2) TAS Hobart (1) 1. The total Regis Facilities approved as Significantly Refurbished including Club Services Facilities is 46. The number in the table is provided net of Club Services facilities to support modelling due to the low number of qualifying residents in those facilities. Qualifying Supported residents receive a Higher Accommodation Supplement under the Aged Care Legislation at these Facilities.

• 5 • WHO ARE OUR RESIDENTS ? Elderly Australians requiring Residential Aged Care  At present, the average age of residents in the portfolio is 84 and PROFILE OF ACCOMMODATION PAYMENT TYPES the majority are classified as requiring high care FOR INCOMING RESIDENTS 1  Most residents have sought permanent accommodation, but 1H FY18 some respite accommodation is also provided 1H FY17 2H FY17 465 Residents 438 Residents 448 Residents  Our resident profile shows a mix between residents who fund their own accommodation, and those who are supported by the Government 37% 42%  Circa 45% of the portfolio have elected to pay a RAD (full or 47% 47% 48% 55% combination), which provides a source of funds to support the development program 8% 10%  Circa 44% of permanent residents are supported. The Significant 6% Refurbishment program now has circa 85% of these living in an RAD Only DAP Only Combination RAD / DAP enhanced environment and receiving the higher supplement 2 CHANGE IN TOTAL RESIDENT PROFILE 5 RESIDENT TENURE STATISTICS 50% 31-Dec-16 30-Jun-17 31-Dec-17 31 December 31 December 40% 2016 2017 30% Resident tenure 3 2.38 years 2.37 years 20% Average duration of stay 4 2.88 years 2.81 years 10%  Tenure statistics have not materially moved 0% Supported (fully or RAD Paying Combination RAD DAP Paying Respite / Other 1. Permanent, non supported residents based on the Aged Care Act for those entering care after 1 July 2014 partially) / DAP 2. As at 31 December 2017 3. Average length of stay of permanent residents who departed during that 12 month period 4. Average length of stay of all permanent residents as at that date 5. All residents, as at end of period. Note DAP paying group includes pre 1 July 2014 Accommodation Charge paying residents

• 6 • OUR CARE FOCUS DRIVES OPERATIONAL SOLUTIONS Quality of care provided based on the individual needs of each resident Our commitment to the quality of care we provide at our facilities is based first and foremost on the individual care requirements of each of our residents. Regis Frankston VIC That focus on residents’ individual care needs means we adjust the staffing levels, skills mix and resources as required to provide the appropriate care. This flexibility is important in ensuring we can adjust staffing rosters according to residents’ assessed needs and also the occupancy levels at each facility. Our frontline care, which includes nurses on every roster, is also supported and complemented by the dedicated resources and infrastructure of our wider organisation. That includes services such as our centrally located Nurse on Call, Help Desk and other Support Services to assist our nursing staff in caring for our residents.

• 7 • 03 Development Update Artists Impression Regis Nedlands WA

• 8 • REGIS ’ GROWTH PROFILE Regis has grown through both development and acquisition Timeline of portfolio growth, last 20 years 7142 7500 6753 Operational Places 6500 6029 5880 5500 5049 4719 4581 4469 4164 4500 4040 Operational Places 3836 3620 Merger Growth since 1 July 2008 to end of 2018: 3500  Acquisition of 1,889 operational places 1  Greenfield and brownfield developments – 2500 construction of circa 2,193 new places 1559 1533 1518  Note circa 560 places have been taken offline since 1264 1500 1126 FY08 in advance of redevelopment to improve the 874 711 portfolio quality 521 309 500 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 -500 est 1. 1,909 places acquired less 20 from the divestment of Tin Can Bay, Qld on 30 June 2017

• 9 • ACQUISITIONS Acquisitions have formed a key part of the Company’s Growth strategy Five acquisitions have completed since listing, all purchased from not for profits 1,500 Presbyterian Care Tasmania, 3 Facilities 1,200 Integration program Operational Places in progress 900 Masonic Care, Integration program QLD 6 Facilities complete 600 Marleston SA, 1 Facility 300 Redlynch, QLD, 1 Facility Tiwi, NT, 1 Facility 0 Nov-14 Apr-15 Jul-15 Jul-16 Aug-17  Acquisitions have formed a significant part of the Company’s growth: ● All high quality facilities with circa 98% single rooms with private ensuites. Each are of scale with the smallest being 86 places 1,440 ● The Significant Refurbishment program has been completed at each Facility Places ● All acquisitions are performing to the Regis EBITDA run rate except for Presbyterian Care Tasmania (“PCT”), which is still in acquired the integration process. As previously indicated, it is anticipated that PCT will be EPS accretive in FY19 and progressing towards Regis run rate since listing  The company anticipates opportunities to arise over the next 18-24 months, which will be assessed according to our usual criteria.

• 10 • GREENFIELD DEVELOPMENTS The current greenfield development program will have delivered 1,247 new places by the end of 2018 Current Greenfield Development Program 1,300 1,200 139 1,100 Facilities opened Port Coogee, 120 1,000 W A 130 900 Elermore Vale, New places NSW 800 Woodlands, WA 141 Lutwyche, QLD 700 Burnside, SA Nedlands, 123 600 WA Chelmer, QLD 117 500 Kingswood, SA Facilities mobilising 120 400 East Malvern, VIC 100 300 North Fremantle, 200 148 WA 100 109 0 May-16 Sep-16 Apr-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Sep-18 Sep-18  The net RAD cashflow from the new Facilities from the development pipeline is in line with expectations – RAD payers are still a large % of our resident profile for recently opened Facilities – The company anticipates $250m - $300m 1 of net RAD cashflow to come from development sites which have been opened but are ramping up and those which are presently under construction. This will be used to pay down debt – The contribution to net RAD cashflow from these new Facilities is far more significant than from the steady state facilities 1. Refer Results for the half year ended 31 December 2017, page 9