Update on 1QFY25 and Annual Meeting Materials

6 August 2024

Radius Care Provides Update on 1QFY25 and Strategy at ASM


Financial Performance FY25
Radius Residential Care Limited (NZX: RAD) (Radius Care) advises that trading was
strong for the first quarter of FY25, with all key metrics being ahead of first quarter
FY24’s equivalent metrics.

Strong 1Q25 trading includes:
- Increased occupancy and Underlying EBITDAR
1
per bed (vs 1QFY25 and FY24).
- Interest costs have decreased from $2.4m in 1QFY24 to $1.7m in 1QFY25.
- Strong village unit resales progress, with all vacant stock under contract and
expected to settle in calendar year 2024.

We reiterate our earlier guidance that our key metrics for full year FY25 are expected
to exceed the equivalent FY24 metrics despite having one less care home (Arran
Court).
Additional Lease Opportunities
Radius Care is pleased to announce that it has signed a non-binding
Memorandum of Understanding with Senior Trust. This provides Radius Care an
opportunity to work with retirement village operators to provide best-in-class,
premium care solutions for their villages. This represents a significant step in
Radius Care’s growth strategy to provide care in new, purpose-built care homes.
This arrangement is expected to add up to 400 new beds over a five-year period,
with the first two projects currently being worked on.

Annual Shareholders’ Meeting
Radius Care is holding its Annual Shareholders’ Meeting online and at the Hyundai
Marine Sports Centre today at 10:30am.
Copies of the presentation and Chair and CEO addresses are attached.

ENDS
Media and Investor Contacts
Andrew Peskett
Chief Executive Officer
Phone: +64 21 747 363
Email: andrew.peskett@radiuscare.co.nz

Jeremy Edmonds
Chief Financial Officer
Phone: +64 22 650 9354
Email: jeremy.edmonds@radiuscare.co.nz




1
Earnings before interest, tax, depreciation, amortisation and rent. Underlying EBITDAR is a non-GAAP (unaudited) financial measure.

About Radius Care
About Radius Care Radius Residential Care Limited was founded in 2003 and
provides essential healthcare services to elderly New Zealanders. It operates in
communities throughout New Zealand, offering the full range of accommodation
and care options. Today, Radius Care operates 23 aged care facilities, of which it owns
12 and leases 11. Four of the owned facilities also include retirement villages and
Radius Care’s online shop sells specialist assisted-living products. The company
employs over 1,700 people, including highly qualified healthcare staff who are
committed to providing the very best in nursing care, and has expanded its services,
establishing RConnect, a Nurse and Carer bureau and Home Care provider. Radius
Care listed on the NZX in December 2020. For more information visit radiuscare.co.nz
or check out our Facebook page @RadiusCareNZ.

---

Annual Shareholders’ Meeting
6 A u g u s t 2 0 2 4

2FY24 ASM
Brien Cree
Executive Chair
Founder
Duncan Cook
Executive Director
Bret Jackson
Independent Director
Mary Gardiner
Independent Director
Hamish Stevens
Independent Director
Board of Directors
Tom Wilson
Independent Director
B r i e n C r e e – E x e c u t i v e C h a i r a n d F o u n d e r

3FY24 ASM
Senior Management Team
B r i e n C r e e – E x e c u t i v e C h a i r a n d F o u n d e r
Andrew Peskett
Chief Executive Officer
Jeremy Edmonds
Chief Financial Officer
Richard Callander
Chief Operations Officer
Trish Evers
General Manager, People
Sam Carey
General Manager,
Sales, Marketing & Retail
Gared Thomas
General Manager,
Property & Development
Shereen Singh
General Manager, RConnect
LEFT TO RIGHT

4FY24 ASM
At a Glance

Our Strategy
•Grow Scale
•Diversify Revenue
•The Radius Way
Our Team
1,700+ employees, led by a management
team with strong aged care credentials.
Founder and major shareholder,Brien Cree,
remains committed to the business and is an
Executive Chair focused on driving Radius
Care’s growth.
Our Operations
23 aged care facilities across New Zealand,
comprising 1,789 care beds.
Radius Care also owns and operates four
retirement villages comprising 148 units.
Our Purpose
To be New Zealand’s leading provider of
healthcare services, enabling our residents
to age in place and to deliver returns to
shareholders through capital growth and
tax-paid distributions.
Our Focus
Our offering is focused on the high acuity and
specialist care segment of the market.
Radius Care has the highest per Care Bed
EBITDAR margins across the industry, as well as
strong barriers to entry.
1,700+
Employees
1,789
Care Beds
23
Care Homes
4
Villages
B r i e n C r e e – E x e c u t i v e C h a i r a n d F o u n d e r

5FY24 ASM
No.1
Strategy Overview
Brien Cree, Executive Chair and Founder
No.2
Business Update
Andrew Peskett, Chief Executive Officer
2024 ASM Agenda
B r i e n C r e e – E x e c u t i v e C h a i r a n d F o u n d e r
No.3
Q&A Opportunity
No.4
Resolutions & Voting
No.5
General Business

Strategy and growth
plan overview

7FY24 ASM
Strategy Update

Targeted M&A
Brownfield development
Greenfield development
Grow Scale
Grow RConnect
Expand Radius Shop’s range
of products and services
Expand health services
beyond core aged care
Strategic Pillar 1
Grow Scale
Diversify Revenue
Develop the Radius Way as a
template for aged care
services
Continued focus on high
acuity care
The Radius Way
B r i e n C r e e– E x e c u t i v e C h a i r a n d F o u n d e r

8FY24 ASM
The Radius Way

Future growth to adjacent offerings
•Further expand RConnect to other
service providers.
•Grow Radius Shop by expanding
range of products and services.
•MoU signed with Senior Trust to
provide leasehold care to retirement
village operators.
•Opportunities to provide leasehold
care for other aged care providers.
•Start development of Northwood
Village in mid-2025.
B r i e n C r e e – E x e c u t i v e C h a i r a n d F o u n d e r
Home Based
Support
Retirement
Village
Hospital care
Dementia and
other
specialist care*
Radius Care
Retirement Village
Radius Shop &
Home Care
Rest home
care
Radius Care Aged Care
High acuity and specialist care
Low acuity
Lowest level of
assessed care
Highest level of
assessed care
Specialist care for
dementia or other
specialist needs
Units
(including with some
level of assistance)
*Other specialist care includes psychogeriatric, physical and intellectual care.
DHB assessed care and increasing acuity

9FY24 ASM
FY24 Update

EBITDAR Per Occupied Bed
$24.7k
Net debt has decreased from
$100.1m to $73.5m
26.5%
Dividend declared in May 2024
An outstanding year for Radius Care
Board targeting a return to previous cycle of
interim dividend paid in December and final
dividend paid in June.
0.70cps
B r i e n C r e e – E x e c u t i v e C h a i r a n d F o u n d e r

10FY24 ASM
Appointments

Executive Team appointments
Jeremy Edmonds
Chief Financial Officer
Shereen Singh
General Manager, RConnect
Board appointment
Tom Wilson
Independent Director
B r i e n C r e e – E x e c u t i v e C h a i r a n d F o u n d e r

11FY24 ASM
Radius Althorp, Tauranga
Business
Update
A n d r e w P e s k e t t , C E O

12FY24 ASM
Why Are We Different?
•Culture
•Portfolio
•Intellectual property
•Brand/reputation
•What we are not

13FY24 ASM
Our People

Full Nursing Staffing
100%
Record Net Promoter Score
For Our Care Home
Managers
74
Company-Wide Staff
Turnover
29%
Employees are more engaged
Regional & Care Home
Managers Have Been
Internally Promoted
60%
Registered Nurse Turnover
below industry rate at 27%
A n d r e w P e s k e t t – C h i e f E x e c u t i v e O f f i c e r
Radius Millstream, Ashburton

14FY24 ASM
Our People

90%
100
12
90% of new hires are
pleased with their jobs.
Have trained over 100
registered nurses through a
recently launched training
programme for new
Internationally Qualified
Registered Nurses.
The last 12 care home audits have
achieved or been assessed as the
maximum four-year certification.
$1,000
Employee long-service loyalty
share scheme: $1,000 per
employee.
A n d r e w P e s k e t t – C h i e f E x e c u t i v e O f f i c e r
Fishing trip with residents from Matua

15FY24 ASM
Outstanding FY24 Performance

Bed Mix
Improved mix of higher
revenue hospital and
specialist care residents.
1.Earnings before interest, tax, depreciation and amortisation. Underlying EBITDA is a non-GAAP (unaudited) financial measure.
2.Earnings before interest, tax, depreciation, amortisation and rent. Underlying EBITDAR is a non-GAAP (unaudited) financial measure.
A n d r e w P e s k e t t – C h i e f E x e c u t i v e O f f i c e r
Underlying EBITDA
1
$20.9M
+47% from $14.2M
Underlying EBITDAR
2
Per

Care

Bed
$24.7K
+24% from $19.9K
Net Debt
$73.5M
-26.5% from $100.1M
Market-Leading Care Profitability
Residents from Radius Millstream planting
at local Marae during Matariki 2023

16FY24 ASM
Strategy Update

A n d r e w P e s k e t t – C h i e f E x e c u t i v e O f f i c e r
Expand aged care
nursing bureau
Private home care and
ACC
Further growth by
expanding range of
products and services
Providing leasehold care
services

17FY24 ASM
1Q FY25 Update

Funding Increase
+3.2% from 1 July 2024.
1QFY25
Trading has been strong in 1QFY25
with all key metrics ahead of FY24.
Interest Costs
Decreased from $2.4m in
1QFY24 to $1.7m in 1QFY25.
Resales
All vacant stock is now
contracted and expected
to settle in 2024.
Growth Strategy
•Senior Trust leasehold
interests.
•Additional leasehold and
value-accretive opportunities.

18FY24 ASM
Q&A
Radius Althorp, Tauranga

19FY24 ASM
Resolutions
That the Directors are authorised
to fix the remuneration of Baker
Tilly Staples Rodway as auditor of
Radius Care for the ensuing
financial year.
That Brien Cree, who, in
accordance with the NZX Listing
Rules, retires and is seeking re-
election, be re-elected as a
Director of Radius Care.
No.1
Auditor’s
Remuneration
No.2
Re-Election of
Brien Cree
B r i e n C r e e – E x e c u t i v e C h a i r a n d F o u n d e r
No.3
Re-Election of
Duncan Cook
That Duncan Cook, who, in
accordance with the NZX Listing
Rules, retires and is seeking re-
election, be re-elected as a
Director of Radius Care.

20FY24 ASM
General Business
Radius Althorp, Tauranga

21FY24 ASM
Thank You
Radius Millstream, Ashburton

---

Page

1

Radius Residential Care Limited
Annual Shareholders’ Meeting 2024
EXECUTIVE CHAIR’S ADDRESS – BRIEN CREE

At Radius Care, we have a laser focus on delivering exceptional care. We take pride in being
New Zealand's leading provider of high acuity, aged residential care, dedicated to ensuring the
well-being of our residents as they age gracefully within our communities. With a deep
understanding of what quality and individualised care entails, we operate 23 aged care homes
and four vibrant retirement villages spanning from as far north as the Bay of Islands to the
southernmost city of Invercargill.
Our journey began over twenty years ago, with just one care home, and a strong personal
motive for building a business that puts quality care at the heart of its operations. Through our
unique processes, systems, culture, and people, we’ve since developed ‘the Radius Way’,
which we believe distinguishes us from all other aged care operators. Andrew will explain in
further detail what sets us apart, but fundamentally, we know how to deliver care efficiently
through our care teams, our high acuity mix of care, and our distinguished brand.
Our business comprises three main revenue streams - aged care, independent living units or
retirement village units, and adjacent businesses that align with our core offering.
Our aged care business continues to perform very well with high occupancy and certification
levels, and a strong reputation for excellence in clinical care. Our 23 care homes offer a
spectrum of specialist services, focusing on the higher acuity segments of care (including
hospital, dementia, psychogeriatric, physical and intellectual care) and are supported by our
highly engaged, exceptional people who are dedicated to delivering the best health outcomes
possible to our residents.
Our retirement villages performed strongly in FY24, returning record resale gains throughout
the year.
In recent years, we've leveraged 'the Radius Way' across various adjacent businesses and
continue to seek out opportunities to diversify our revenue. RConnect, our own aged care
nursing agency, has generated significant revenue for Radius and continues to perform very
well as we seek to expand this further. We’ve also branched out beyond aged care into private
home care, and complementary health services. Our online Radius Shop is growing and
producing stable revenue.
As our momentum with the Radius Way continues, we are looking to grow our adjacent
offerings to further capitalise on our unique product and services. To this end, we have signed
a Memorandum of Understanding with Senior Trust. This is an exciting first step in our plan to
provide care in new, purpose-built care facilities developed by Senior Trust clients under a
leasehold arrangement for retirement village operators who require our specialist expertise.
This is expected to add up to 400 new beds over a 5-year period. The first two projects are

Page

2

being worked on at the moment. In addition, we are exploring various opportunities to offer
leasehold care to other large aged care providers.
And in terms of other adjacent opportunities, we are currently in discussions with Cibus
Catering to acquire a shareholding in their business.
Development of our villages and care homes continues to be carefully considered where it is
value-enhancing based on market conditions. For example, from mid-2025 we plan to begin
developing Northwood village in Christchurch.
Andrew will speak to our financial performance in more detail, but FY24 has been an
outstanding year for Radius. Our key metric, EBITDAR per bed, which is our measure of the
financial performance of our core business of care, was an industry-leading $25k per bed. This
is a record for Radius Care and one which we are extremely proud of. In addition, borrowings
were significantly reduced, and other key metrics broke new records.
Our strong performance enabled us to resume dividends, and a final dividend of 0.70 cents
per share was declared in May. The Board is targeting a return to the previous cycle of an
interim dividend paid in December and a final dividend paid in June of each year.
The senior management team at Radius Care was enhanced in 2023 by the recruitment of
Jeremy Edmonds as Chief Financial Officer and Shereen Singh was appointed as General
Manager of RConnect. Both Jeremy and Shereen have already proven to be excellent additions
to our team, as shown by Radius’s strong commercial performance in FY24.
Tom Wilson was elected to the Board at the Annual Shareholders’ Meeting in August last year
and brings a wealth of experience in strategic leadership. Over the past year, our entire Board
has been extremely active and engaged, demonstrating their high sector knowledge and keen
strategic focus, and I’d like to acknowledge them for their ongoing support and commitment
to our business.
We continue to be the leaders in aged care in New Zealand and as always, we owe enormous
thanks to our residents and their families for their continued support, and to our exceptional
people for their resilience and passion for delivering exceptional care.
As we continue implementing The Radius Way across diversified revenue streams, including
RConnect, Radius Shop, in-home services, targeted M&A and development, a strengthened
balance sheet and a bespoke operational model, we are in a strong position to deliver on our
promise of continuing to provide industry-leading care and generating value for our
stakeholders.

---

Page

1

Radius Residential Care Limited
Annual Shareholders’ Meeting 2024
CEO’S ADDRESS – ANDREW PESKETT

Brien’s update on strategy and key highlights of the past, present and future of Radius,
demonstrate that we are making excellent strides in all key areas of our business.
This is underscored by our record operating and financial performance for FY24, which by
many measures was outstanding. As always, it is our exceptional people with a clear focus on
our purpose that has guided us to reach such success. These are our nurses, our healthcare
assistants, activities coordinators, gardeners, maintenance people, kitchen workers, and all
others at Radius working tirelessly to provide the ultimate level of care to our residents. The
huge responsibility and importance of their work does not go unnoticed, and it is their
dedication and drive that in turn brings Radius shareholders returns on their investment.
Before I talk more on our wonderful people, I want to bring your attention to what makes
Radius Care different from other operators.
We think it is down to a number of different elements, which you’ll see on the slide here.
First, it’s our culture that sets us apart. We have a highly-focused, lean, commercial care team
with intense rigour on results and decisive, quick decisions. We operate like an owner
operator, and there is strong alignment between the Board and the Executive Team.
Secondly, intellectual property. This is our systems, our management structure and our
processes which are designed to maximise commercial and clinical outcomes, as evidenced
by our certification results.
The size and configuration of our portfolio also make us different. Our care homes are built at
scale, with predominantly over 60 care beds in each, and we tend to cluster our care homes
into groups for efficiency. We have a higher acuity mix than most operators, which includes
hospital, dementia, psychogeriatric, physical and intellectual care, as well as ACC. These
beds generate significantly more revenue than standard rest home beds.
Our brand and reputation set us apart from other providers. This comes from having a strong
founder presence, with over two decades built up of caring for our communities. Our
advertising is strong, well-known and backed by a personal story which is a compelling
proposition for our customers and residents. We have a reputation for quality care and we
consistently deliver on that promise which further enhances our standing in the market.
And finally, what we are not – we are not a retirement village developer. While we have four
villages, this is not our primary business, and as such we are not dependent on retirement
village sales, development margins, and fluctuations in the property market. This sets us apart
from the big listed players which are largely retirement village developers and operators.

Page

2

Moving on now to our people, our most treasured resource. Having tackled major labour
shortages over 2023 to 2024, we are now fully staffed which has enabled us to improve
occupancy, resident satisfaction, and commercial outcomes.
Our employees are more engaged than they’ve ever been - with a record employee net
promoter score of 74 for our Care Home Managers. Added to that, 60% of our Regional and
Care Home Managers have been promoted from within the business, which shows that we are
hiring and retaining the right people who are dedicated to Radius and the work that we do.
Our company-wide staff turnover has been sharply trending down and is now sitting at 29%,
with our RN turnover now below industry at 27%. This further underscores our high levels of
employee engagement and the great work our People team is doing to retain high-performing
staff.
90% of our new hires love their jobs – a massive endorsement of Radius Care’s outstanding
culture.
We also recently launched an empowering training programme for new Internationally
Qualified Registered Nurses – and we’ve so far trained over 100 registered nurses, setting us
up for success in the future.
Our latest care home audit results demonstrate the top-tier quality of our care home staff. In
our last twelve audits, we have achieved or have been informed that we will achieve the
maximum certification. We are confident that our upcoming audits will similarly obtain more
four-year certifications. These results highlight our clinical excellence and are also a lead
indicator to stronger commercial outcomes, as families of prospective residents frequently
scrutinise care home certification records before making admission decisions.
In recognition of the incredible service of our people, the Board has approved the issuance of
a long-service loyalty share scheme which provides those employees who have been with
Radius Care for 10 years or more to a bonus issue of shares to the value of $1,000.
Before I move on to cover the FY24 results, I want to extend an enormous thanks to all our
amazing nurses, carers and all our exceptional team who provide uncompromised care and
support to our residents at Radius care homes around the country. Thank you for your
unwavering resilience, positivity and professionalism in caring for our residents, day in, day
out. I am very proud to work for an organisation with such a focus on care and its people, one
that Brien has been instrumental in creating.
Now moving briefly to comment on our results from FY24, as Brien touched on earlier, Radius
Care had an outstanding year in terms of its financial performance.
Our underlying EBITDA was 47% up on FY23, at $20.9m. And our key metric, EBITDAR per
occupied care bed, was $24.7k, 24% up on FY23, which continues to be market-leading.
Net debt reduced by 26.5% to $73.5m, with no short-term debt remaining, leading to a
strengthened balance sheet.

Page

3

Our strong, record performance was due to an improved mix of higher revenue hospital and
specialist care residents, increased accommodation supplement revenue, strong resale
gains at villages, a successful cost-out programme, and growth in adjacent offerings such as
RConnect. We are very proud of our result, but we are not taking the foot off the accelerator
yet, and continue to strive for new records and excellent returns for our shareholders, based
on strategic, carefully executed, commercial decisions.
Speaking of which, as Brien touched on earlier, our laser focus on high acuity care, expansion
into adjacent offerings, and strategic acquisitions, is setting us up well for future success.
We are well-positioned to capitalise on a market that is increasingly in need of high acuity and
speciality care. Our full continuum of care will be able to meet that demand, particularly as
we grow our reach (through the likes of leasing and acquiring care homes, expanding our aged
care nursing bureau, RConnect, developing selected villages and facilities, and targeting new
opportunities to provide more care to elderly New Zealanders).
With the expansion into private home care and ACC, an increased focus on looking after
residents, and the growth of the Radius Shop, we are further diversifying our core revenue
streams by providing additional service offerings and investment opportunities.
I’d like to now provide an update on how the business is tracking in the first quarter of FY25.
We are constantly looking at ways to continuously improve, both at our 23 fantastic care
homes and at support office. Trading has been strong in the first quarter of FY25 with all key
metrics ahead of FY24. We reiterate that our key metrics for our full year FY25 results are
expected to exceed FY24 metrics.
Our funding increase from the government has been confirmed, effective from 1 July 2024 at
3.2%, slightly more than we had budgeted.
And interest costs have decreased from $2.4m to $1.7m.
Our village unit resales are strong, with all vacant stock under contract and expected to settle
in calendar year 2024.
Finally, our growth strategy is firmly in place with the as mentioned Senior Trust leasehold
interests well-progressed and several other opportunities being actively pursued.
We reiterate our earlier guidance that our key financial metrics will exceed our FY24 numbers
despite having one less care home (Arran Court).
In closing, we are excited about what the future holds for Radius Care. It is a great time to be
a shareholder of Radius, with the horizon looking promising. Our continued focus on
commercial intensity, delivery of exceptional care, and our dynamic growth trajectory
positions us favourably for the future.
Thank you to all our shareholders, including those in the room and those online, for the chance
to present Radius Care’s journey and excellent progress to you today.
As leaders in providing essential and specialist healthcare services we are fully committed to
our purpose and mission of delivering exceptional care and driving great returns for you all.

Page

4

Finally, thank you to Brien and the Board for your faith in appointing, supporting and mentoring
me. I look forward to answering any questions after my speech, chatting to you all after the
meeting and continuing to drive our performance at pace.