Regis Healthcare : 4D And Financial Report 1H FY22

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Directors

Company Secretary

Malcolm Ross

Registered Office

Level 2, 615 Dandenong Road

Armadale VIC 3143

Principal Place of Business

Level 2, 615 Dandenong Road

Armadale VIC 3143

Share Registry

Link Market Services Limited

Tower 4, 727 Collins Street

Melbourne VIC 3000

Phone: 1300 554 474

Securities Exchange Listing

Regis Healthcare Limited shares are listed on the

Australian Securities Exchange (ASX code: REG)

Solicitors

Herbert Smith Freehills

80 Collins Street

Melbourne VIC 3000

Auditors

Ernst & Young Australia

8 Exhibition Street

Melbourne VIC 3000

For personal use only

Directors' Report

Your Directors present their report on Regis Healthcare Limited (the 'Company') and its controlled entities (the 'Group' or 'Regis') for the half-year ended 31 December 2021.

Directors

The names of Directors (collectively, the 'Board') in office at any time during or since the end of the six-month period are:

Operating and Financial Review

As at 31 December 2021, Regis owns and operates 64 aged care homes, including 7,059 available operational places and provides residential aged care services in six States and the Northern Territory. In addition, Regis, through retirement living, manages over 570 retirement village units across eight retirement villages and three affordable housing communities. Regis also offers home care services that have been identified for strategic growth over the medium-term.

Business Model

Regis aims to provide quality care to meet the growing needs of Australia's elderly population. This is achieved through a focus on the following core areas:

• Care delivery: Supporting care and clinical staff to deliver quality care outcomes for residents and clients consistent with their expectations and those of their families and loved ones.
• Focused and well-resourcedrisk management: Regis has robust systems and processes in place to manage clinical care and governance and the broader business' operational risks, including those that relate to aged care legislative compliance and health and safety.
• Vertical integration: The spectrum of activities Regis undertakes includes analysis of each proposed residential aged care home's catchment area, site identification, site acquisition, brownfield/greenfield development, home operation and asset renewal.
• Strong cash flow generation: Regis aims to achieve and maintain strong cash flow from operations, which it augments with a focus on the receipt and profitable use of Refundable Accommodation Deposits (RADs). Regis leverages its RAD cash inflows from developments to facilitate the repayment of acquisition and development related debt.
• High quality portfolio: Homes are primarily located in metropolitan areas with high median house prices. The homes are typically modern with a high proportion of single rooms and an emphasis on lifestyle and supported living.
• Scalable platform: Regis has invested in scalable business processes supported by IT systems and in-house resources to facilitate growth through acquisitions and developments.

Review and Results of Operations

To assist in the evaluation of the financial performance of the Group, certain measures are used that are not recognised under Australian Accounting Standards or International Financial Reporting Standards ('IFRS') and therefore, these are considered to be non-IFRS measures. Adjusted earnings before interest, tax, depreciation and amortisation ('Adjusted EBITDA')4 is reported in order to provide a greater understanding of the performance of the Group. All other amounts reported below are recognised and measured in accordance with Australian Accounting Standards.