Radius Residential Care (RAD) AGM 2024 Presentation summary

Strategy and growth plan

• Focus on growing scale through targeted M&A, brownfield and greenfield developments, and expanding RConnect and Radius Shop offerings.

• Diversification of revenue streams by expanding health services beyond core aged care and developing leasehold care services for other providers.

• Continued emphasis on high acuity and specialist care, maintaining industry-leading EBITDAR margins and strong barriers to entry.

• The Radius Way is being developed as a template for aged care services, with future growth into adjacent offerings and expansion of RConnect to other service providers.

• MoU signed with Senior Trust to provide leasehold care to retirement village operators, with new developments like Northwood Village planned for mid-2025.

Operational highlights

• Operates 23 aged care facilities with 1,789 care beds and four retirement villages with 148 units across New Zealand.

• Employs over 1,700 staff, with a management team experienced in aged care and a strong focus on internal promotions and staff engagement.

• Achieved 100% full nursing staffing and a record Net Promoter Score of 74 for care home managers.

• 90% of new hires are satisfied with their jobs, and the last 12 care home audits received maximum four-year certification.

• Over 100 registered nurses trained through a new program for internationally qualified nurses; staff turnover rates below industry average.

Financial performance

• Underlying EBITDA rose 47% to $20.9M, with EBITDAR per care bed up 24% to $24.7k.

• Net debt reduced by 26.5% from $100.1M to $73.5M.

• Dividend of 0.70cps declared in May 2024, with a return to interim and final dividend cycle targeted.

• Improved bed mix with higher revenue from hospital and specialist care residents.

• 1Q FY25 trading strong, with all key metrics ahead of FY24; interest costs decreased and all vacant stock contracted for settlement in 2024.