FY21 Annual Results – Call Transcript

Stuart Bilbrough

Good morning. My name is Stuart Bilbrough. I am the chief executive of Radius Care. Thank you for joining us today as we outline the key aspects of our year ended 31 March 2021.

We have a few slides to provide some colour around the results and we'll open the lines for questions at the end of the presentation.

I'd like to now move on to slide four.

Slide 4 Here with me today is that executive chairman and managing director, Brien Cree. Brien founded Radius Care 18 years ago, and the successful aged care business we present today.

Brien now focuses on growth opportunities through development and acquisition, while I look after the day-to-day business management. Having worked together for about a decade and with Brien's long membership on the New Zealand Aged Care Association, we collectively have a significant understanding of our industry. And also joining us is Michelle

Slabber, our general manager of finance, whose done a fantastic job getting the financial results completed, audited and available for you today.

This is Radius Care's first results announcement as a listed company. And the three of us are excited to be able to present them to you today.

Move on to slide five.

Slide 5 As a reminder of who Radius Care is, in a nutshell, we provide investors with the exposure to high-acuity and specialised care end of the aged care sector in New Zealand. This means caring for patients and residents with hospital, dementia, psychogeriatric, physical and intellectual care needs. This makes Radius quite different to the other listed retirement sector providers in New Zealand, in that we are more medical and aged care provider, and less about the property. 96% of our portfolio caters for aged care.

Moving on to slide six.

Slide 6 In business since 2003, the Radius Care team has grown our portfolio to 24 sites made up of 22 care facilities and two retirement villages.

We are located throughout New Zealand. Radius Care owns both villages and the land and building of three facilities and 19 of our facilities are leased. The average time to the next lease renewal of the leases is currently 9.1 years and with an average time of expiry of 27.7 years. We have over 1700 care beds for our residents and 1500 dedicated team members.

We look forward to expanding our business significantly.

We'll now move to slide seven.

Slide 7 Our agenda for today's briefing will provide you with an overview of the company's strong financial results. We'll then dive a bit more deeply into the financial and operational aspects of these results and our strong track record of delivery. We'll outline our strategy, which is also provided in more detail in the listing profile that you can download from Radius's website under Investor's Centre, and then provide you with an outlook and guidance for our full year 2022, and where we see that heading. At the back of this presentation are some slides that we are sure you will find useful.

Now going to move on to slide number nine.

Slide 9

We are extremely pleased to have met the guidance provided at the time of listing. Radius has always had a good track record of delivering on our financial result expectations as a private company. And it is now fantastic that we can demonstrate this delivery as a public listed company. If you are after more detailed financial information than provided in this presentation, you can download our audited financial statements from Radius's website under Investor's Centre.

The 2021 financial year was a record for Radius Care, despite COVID-19. Our success in keeping COVID-19 out of our sites rests squarely with the impressive and dedicated actions of our incredible team members at the facilities and support office who tirelessly and quickly adapted to the changing environment as COVID-19 turned from an obscure virus to a worldwide pandemic. If that wasn't stressful enough, we decided it would be a great time to list on the NZX. This happened on the 10th of December last year, and our new ticket appeared on that day as RAD.

In April of this year, we exercised the option to buy 4.3 hectares of land in Belfast in

Christchurch. Radius has successfully developed our first 54 villa retirement village in

Timaru, alongside our established care home there.

Christchurch will be our first full development as a listed company, acquiring greenfield land for a fully integrated retirement and aged care village. This is very exciting for us.

Now move to slide number ten.

Slide 10

Our success going forward rests with our people. This starts with Radius Care's board of directors, which has been strengthened by the addition of incredibly capable new independent directors, Mary Gardiner and Hamish Stevens. We've also bolstered the strength of the management team, starting with me realising in early 2020 that I missed aged care and Radius Care, having left to try another area of the health industry in 2017.

That was after seven years as CFO at Radius. With a renewed passion for aged care, I returned full-time to Radius in June of 2020 as the CEO to look after the day-to-day, and

Brien moved to the role of Executive Chairman and Managing Director, focusing on the delivery of our development and acquisition growth strategy.

We also took a critical look at our most important resource, which is our team across the group, and our continued training needs. We hired highly skilled learning and development expert, Marg Paramore, into the newly created General Manager of People and Culture, and expanded the property team to ensure an even greater focus on facility presentation and stepping up our growth in accommodation supplement revenue.

Move on to slide number 11.

Slide 11 Slide 11 provides a deeper dive into the numbers. Since 2018 and before, revenue has consistently increased. Revenue includes our villages, which have performed very well, although a small part of Radius's revenue at this stage. From an underlying EBITDA and

AFFO point of view, we've had a very strong end to the current financial year, achieving our guidance as provided in the December listing profile.

What is important to note is that Radius Care's growth, excluding the smaller contribution of our villages, has been largely organically achieved through continuously improving occupancy and bed mix, weighted towards high-acuity care which Radius focuses on, and accommodation supplements. This is where we see an area of ongoing improvement in growth. What has been difficult for Radius and the whole aged care and health industry has been the containment of staff costs. Radius is a strong supporter of ensuring our team members at the facility are paid an hourly rate that recognises their incredible contribution. We do this by striving to provide the training, work environment and pay rate we can. We also recognise that the ability for health workers, especially registered nurses, to move freely within the health industry and abroad is a peculiarity that has become normalised in our industry. We continue to strive to reduce staff turnover.

Moving to slide 12.

Slide 12 Radius' AFFO for the year came in slightly higher than the guidance provided in the recent listing profile. We are very happy with this great outcome. AFFO is Available Funds From

Operations, and is the non-GAAP estimate of cash generated and available at the end of a financial period. Paying dividends from cashflow is the preferred approach of Radius Care's board of directors. This is why the AFFO method is used for calculating investor dividends.

The strong AFFO result for the full year 2021 therefore has a direct and positive impact on our final dividend. The Radius board of directors has recommended that the dividend for the full financial year be set at 50% of AFFO, and in line with the dividend policy in the listing profile. With total AFFO at $3.7 million, this represents a fully imputed gross dividend per share of 1.46 cents. Net of imputation is 1.05 cents, which is above our listing profile's guidance, which had an upper end of one cent.

I will now pass across to Michelle.

Michelle Slabber

Thank you, Stuart. And good morning, everybody.

Slide 13 The EBITDA bridge in this slide explains what the material key changes for the year were.

Also, please refer to the appendices at the back of this presentation and the listing profile for the EBITDA bridge, that explains the key areas of why the full year ending 2020 was a difficult and unusual year for Radius Care. As we entered the 2021 financial year, those areas that had impacted our impressive growth from prior years were coming under control. In FY 2021 COVID assisted, through infection control requirements, a slowing turnover down. We have not rested on our laurels since the lock downs and continue to implement ways of ensuring Radius and aged care is the best place for the likes of our healthcare workers, particularly registered nurses, to start out. Over a number of years this turnover has become business as usual and the current slowdown in turnover of registered nurses leaving our employment is an indication we continue to provide the best place for healthcare workers to work.

This year we have improved our overall aged care EBITDA by $4.3 million. There has been a significant reduction in bureau staff, extension at two facilities have contributed $800,000, we have increased private revenue through our focus on growth, accommodation supplement in revenue, and retirement village EBITDA is up $700,000 as well. We have invested in more senior management at our support office that has been targeted towards focusing on issues like bureau costs, training and accommodation supplements. And we are very happy with the results. The support office team is also getting positioned for the coming business expansion which is very exciting for us all.

Move to slide 15, and over to you, Brien.

Brien Cree

Thanks, Michelle. It's Brien Cree speaking.

Slide 15

I'll run through a little on our revenue growth and diversification. Slide 15 demonstrates the strong track record of year on year annual revenue growth that Radius Care has been able to achieve over a number of years. Ministry of Health fee increases normally sit at around 3% per annum, yet Radius has been able to achieve 8.5% through our focus on increasing occupancy, a focus towards higher-acuity care and the higher rate per night from our accommodation supplement.

Take you now to slide 16.

Slide 16

Radius Care is continuing to move towards higher-acuity care for its residents. We have a bed mix of 86% of our beds certified for high-acuity care, which includes swing beds. The opportunity to increase the revenue going forward comes from increased utilisation of the high-acuity beds, which is currently sitting at 67%. We will be increasing the total available high-acuity beds this year, with the conversion of 20 rest home rooms at Radius Arran Court in Henderson into a dementia unit. This is our first dementia unit in the Auckland region and a much-needed care level for the West Auckland area. This conversion will be a positive contributor to the next financial year.

Moving now to slide 17.

Slide 17

This slide demonstrates our market and the occupancy growth opportunity. Radius Care's portfolio is orientated to high-acuity and specialist care, so less driven by property market cycles, but more by population demographics, which puts us in a strong position for the future. A number of our 22 facilities run at 95 to 100% bed occupancy. And this number of sites is expected to keep increasing.

In the 2019 Ernst and Young report, titled "Aged Residential Care Funding Model Review", they acknowledged the increased acuity of New Zealand residents that often come with a range of serious health conditions requiring specialist care, and that will likely see the number of people living over 85 tripling by 2043.

I’ll turn now to slide 18.

Slide 18

This slide demonstrates our continued strong performance. Radius Care has a very systematic approach to providing care, and that enables us to focus on what is important to us, and that is providing the best care we can. It is a proven model we have perfected over almost two decades. Good facility management, strong clinical care, a well-managed roster and the right people in the right place, doing the right things are the best combination for delivering a strong underlying EBITDA per care bed. And we worked hard to achieve this.

Accommodation supplements are an important source of non-government revenue for

Radius. It has a lot of potential to continue growing as it has over a number of years, since first being introduced approximately 10 years ago. We will have a dedicated team member focusing on this opportunity so that we can improve our penetration beyond the current

60% of total rooms.

I’ll now just flick across to slide 21, and just talk a little bit about strategy.

Slide 21 So the exercising of the option for the Belfast property is a cornerstone of Radius Care's growth in the immediate future. We are currently focused on the final design process, obtaining building consents and commencing construction in relation to this development.

The project will be constructed across multiple stages, providing a degree of funding flexibility, with the optimal timing to be determined as the planning progresses. We have some other great brownfield expansion opportunities that will kick off in 2022. We have resource consent at Radius Thornleigh Park in New Plymouth to add 24 hospitals level care beds. We are also progressing resource consent for the extension at Radius Lexham Park in

Katikati in the Bay of Plenty. And that will also kick off in 2022. Along with that, we're also reviewing a number of opportunities and we'll update the market as and when required regarding these.

So now I will pass you back to Stuart.

Stuart Bilbrough

Thank you, Brien. I'm now on slide 23.

Slide 23 So now we will focus on our strong growth trajectory, the trajectory we have in place. Our outlook for the full year 2022 is that aged care will continue to have staff cost challenges, as we have always had. For Radius this will be more than offset by revenue opportunities, with accommodation supplement growth and the government fee increase we get each year that we expect this year to be higher than CPI.

On the horizon, and not included in our outlook calculations, is an anticipated positive outcome for nurses' pay equity, which has been discussed by the Labour Government over the past year, and being pushed vigorously by the New Zealand Aged Care Association. We also have further occupancy capacity and bed mix opportunities that will further grow revenue and ensure that earnings for the current year remain achievable.

Moving to slide 24.

Slide 24 Thank you for joining our briefing today. We are looking forward to providing our investors a strong 2022. Radius is the most experienced manager of the high-acuity aged care in New

Zealand in the care sector. This is a sector we deeply understand and excel at. Our competitive advantages are our team, state of the art IT solutions and exceptional levels of care. We see the industry dynamics offer strong growth opportunities, which we will continue to capture. As Radius moves forward, our strategy as a listed company will be to ensure clear pathways of growth through acquiring existing leased facilities and extending them, opportunistic acquisitions of existing businesses from other operators and undertaking greenfield developments, like what we're about to embark on in Christchurch.

I look forward to sharing our journey with you. Thank you for joining this briefing call. I will now hand back to you, Harmony.

Operator Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speaker phone, please pick up the handset to ask your question. We'll now pause a moment for any questions to register.

Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Thank you. There are no further questions at this time. I'll now hand back to Mr. Bilbrough for closing remarks.

Stuart Bilbrough

Thank you everybody for joining the call. We really appreciate you spending the time. This is our first presentation as a listed company. We're very excited. If you've got any questions, my details are on our website, and feel free to call me or drop me an email at any time. Thanks a lot.

1/06/2021

Radius Residential Care Limited

Full Year

Results

31 March 2021

1 eraC suidaR Importance

ThispresentationhasbeenpreparedbyRadiusResidentialCareLimited(“RadiusCare”),forinformationalpurposes.Thisdisclaimer Notice and appliestothisdocumentandtheverbalorwrittencommentsofanypersonpresentingit.

Disclaimer T b h e is re p a r d es in en c t o a n ti j o u n nc s t e io ts n o w u i t th in t f h o e rm au at d i i o t n ed re c l o a n ti s n o g lid to at R e a d d f i i u n s a C n a ci r a e l ’s st f a u t l e l m ye e a n r t r s e f s o u r lt R f a o d r iu t s he Ca p r e e ri a o n d d t i o ts 3 s 1 u M bs a id r i c a h ri 2 e 0 s 2 fo 1. r A th s e su p c e h ri , o i d ts e h n o d u e l d d

31March2021(“FinancialStatements”)andothermaterialthatRadiusCarehasreleasedtoNZXalongwiththispresentation.That materialisalsoavailableatwww.radiuscare.co.nz.

Incertainsectionsofthispresentation,RadiusCarehaschosentopresentcertainfinancialinformationexclusiveoftheimpactof significantitems.Anumberofnon‐GAAPfinancialmeasuresareusedinthispresentationwhichareusedbymanagementtoassess theperformanceofthebusinessandhavebeenderivedfromtheFinancialStatements.Youshouldnotconsideranyofthese financialmeasuresinisolationfrom,orasasubstitutefortheinformationprovidedintheFinancialStatements.

Thispresentationmaycontainforward‐lookingstatementsandprojections.Suchforward‐lookingstatementsarebasedoncurrent expectations,estimatesandassumptionsandaresubjecttoanumberofrisksanduncertainties,includingmaterialadverseevents, significantone‐offexpensesandotherunforeseeablecircumstances.Thereisnoassurancethatresultscontemplatedinanyof theseprojectionsandforward‐lookingstatementswillberealised.Actualresultsmaydiffermateriallyfromthoseprojected.Except asrequiredbylaw,ortheNZXListingRules,nopersonisunderanyobligationtoupdatethispresentationatanytimeafterits releaseortoprovidefurtherinformationaboutRadiusCare.

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2 eraC suidaR

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Presenting Today

Brien Cree Stuart Bilbrough Michelle Slabber

Executive Chairman / Managing Director Chief Executive Officer General Manager, Finance

•Founded Radius Care in 2003, then part of •Appointed Chief Executive Officer in •Joined Radius Care in 2016

Radius Health Group June 2020 •Has nearly 25 years’ experience in

•Moved into Executive Chairman role in •Formerly Radius Care Chief Financial finance roles in various

• • C a M m h J B o u c o p a o a n a q r l p a d n j e e u r o o s a d i r A 2 r s g 5 i t i 0 m s t e u t 4 y s 2 i m n o . e o 0 0 s i n m c e t h % f i i n e a a o b t r t s t c e i e h u b o t r h r h s u n o o o i r y n u f o f l d o g o g t u h e r h u g o r e m t h n W s i N o n d i g n a e r e r 2 c v e o w v e 0 e w e t 1 h Z u R l t o 0 e a n h i p d a n d a m e l e n a 1 r r d n e 0 t T n d a c r y t k u u A e i a s r n a g r n t r g e e d s d n tly • • O O h r a N a fr o n n e e v o f l f d d a e e w m i l c s r t f h e h i Z 3 i M o n n r e c 0 l a f a d a a i n r n y r l s s o a c e e s d a m n i , e a a u n d F y r l s 2 s M s M t U C ’ 0 r e h i e C n 1 B r e a x v i G 0 A s v p r i , c e t i t e w n e e l o r o r c s s r i i g t 2 l i e e u t h i 0 d n y s d 1 t d . c i A i 7 n e i c s c g s t i c , n i o n t e f u c i l t n n e io t a c a n n o n c m t e s • • • M I h A S P A n h r e f c d i i r e c a c c i u o c l h e i t s a s u w e h t n l a r c a l i e t a e t N a r e s t n e e r r w t w a h a . i o o n n Z u r d e e k s d e a f e i l d n w C a a o n i i n t n o d h c p i n C i e a c h r l l a s u s r e i d n t r e e v S r i o e ce d u s th

•Over 30 years’ experience in the Aged Care

4 sector eraC suidaR

Radius Care PPoorrttffoolliioo ssuummmmaarryy aass aatt 3311 MMaarrcchh 22002211 at a Glance

HIGH ACUITY AND Radius Care Owned Leas P e a d r t f i r e o s m * 3rd Total

Existing Portfolio SPECIALIST AGED Sites 5 19 24 CARE PROVIDER Aged Care Beds 178 1,537 1,715

Retirement Village Units1 76 - 76

Radius Care operates 22 aged Total Places 254 1,537 1,791 care facilities nationally, comprising more than 1,700 Existing Facility -Landbank

W a a p g n r e o e d p d o l e e w c r a a t n s r y e e t i h n 1 b r v 9 e e e d e f s r s t o o . o m f r s t h . 3 e rd se p f a a r c t i y li ties Be A R l e g fa t e i s d re t , C m C a e h r n e r t i s B V t e c il d h la s u g rc e h Units 1 4 2 9 4 0 4 6 2 - 0 0 1 1 4 0 9 0 4 4 a d 2it n e 0s n v 2 4 o o e 1 . p R 3 u l o tt a n h hi p d o c e e m ie n u c d e et s t a x o n oC e r t n e a ar l c s r c a 7 i e qs no A eu df i p ro i r e n f i l

We also own two retirement Total Existing + Landbank 512 1,617 2,129 Christchurch villages comprising of 76 units.

*a cAclol ulenatisnegs aforre atrlli prelen neewta llesa. se and long term in nature ‐with an average term to next renewal of 9.1 years but 27.7 years after

5 Note: A T s h i p s •• a i r n t f ASo o u r fLpm iisp t a ts lie t nD imo ge ne cP e nr is mot af c biro ly ee n r Ft ( w2 aini 0h na 2i enc0 dch l i i ao cs lo n t i In n nt t h g fao e Rir n Rm asd a as d i t ui i miu s o sniCl a C a prr a r e r ion e p vf w oi r d er ei pmnb a ga s r i te mt id e oo : n hr et t t o gp ra sa: P /n/ ruo wldawru w cfit .n r Daa ind sci c uilao slc s aa unr r e ed. c Soo tpa .nete zra/ m itnieov nne tas ) t lp oirnr o sf‐ voc ire dmn inat g rte iao/ nnli .s o t v in e g rv ‐d ie o w cu o m f e th n e ts business, the industry, risks and financial performance. eraC suidaR

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Leased Si3tes AU B2e4 C d8s KLA ILU‐ N s D T2o4t8al Leased Sit3es NO B1 R e5d5s THL I A LU‐s ND T1o5t5al

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Retirement Village

$0.7m $1.6 ‐ Compounding impact of DMF and

$18.2 additional unit sales

17.0 FY20E UBnITdDeArlyingBureau costs D B eGr v ore weloennp fifm eiel e dldn & ts Occupancy AcscuopmplmemodeanttisonOthoepre aragteiod ncsareDMseFr avnicde wfeeeesklyRe D aRe leis vM se ead la loe r G ps gm a i a n inne sdn t onOotpheerra vtiilolangse Supexppoertn soeffsiceFY21E UBnITdDeArlying G ‐ ro R C u O e p d V u S ID c u e ‐ p 1 d p 9 t o r d a r i v s t r e : u l $ p a 0 t s i . o a 2 n m r s e sult of 13 m$ZN

Aged care Retirementvillage sGupropuoprt eraC suidaR

Analysis of result

Include

Pre‐NZ IFRS 16 operating rental lease expense (12.0) (12.4) (12.4) (12.9)

Pre‐NZ IFRS 16 Underlying EBITDA 7.7 8.0 5.8 10.5

Include

Depreciation and amortisation (Pre‐NZ IFRS 16) (3.0) (3.6) (3.7) (4.3)

Include

Net interest expense (Pre‐NZ IFRS 16) (0.6) (0.9) (1.2) (0.8)

Include

Current tax expense (0.9) (0.7) (1.0) (2.1)

Include

Income tax impact from Pro forma adjustments 0.2 0.2 0.3 (0.3)

Pre‐NZ IFRS 16 Underlying NPAT 3.4 3.0 0.2 3.0

Remove

Depreciation and amortisation (excl. NZ IFRS 16 3.0 3.6 3.7 4.2 related) maiCnatepneaxn ce Include: Maintenance capital expenditure (5.1) (4.6) (4.4) (3.5) gu$id4a.n0mce is

AFFO 1.3 2.0 (0.5)1 3.7

Refer to Note 2.1 in the 31 March 2021 Annual Report for reconciliation of Underlying profit to Reported net profit after tax–see Appendix attached 27 1tah n Tey h eFo Yt +2h $0e 4 r2. 02 p m erer i cvo had al un aag nte dio i tnn h oe Afr F etF hO ise i ntn oh Fr ieY me2 p 0oa 2wc 1 tn i ges odc i a npl g cr ou fpo laer t wretd aie r osd.n . TAhFeF Oim fopra cFtY o2f0 2th0i so fr e$c(l0a.s5s)imfic,a wtihoinch w haass a bne iennc rreeavsiese odf f$r1o.m33 t9hme FinY 2F0Y2200 2A0F FcOur oref n$t0 t.a8xm a snhdo aw cno irnr etshpeo 1n0d iDnegc deemcbreear s2e0 o2f0 $ N1Z.3X3 L9ismti ning FPYr2o0fi2le0 ddueefe trore ad r teacxla. sTshifeicrea tiiso nno o ifm thpea cdte ofenr AreFdF Ota ixn o n eraC suidaR

Statement of Comprehensive Income

($000) FY20 FY21

Revenue

Revenue from contracts with customers 113,359 121,217 Deferred management fees 671 1,081

Total revenue 114,030 122,298

Fair value movement of investment properties (649) 2,879

Government subsidy received 353 794

Interest income 49 71

Total revenue and other income 113,783 126,042

Expenses

Employee costs (70,852) (74,457)

Depreciation expense (10,911) (11,552)

Finance costs (10,583) (9,706)

Other expenses (24,770) (28,298)

Total expenses (117,116) (124,013)

Profit / (loss) before income tax (3,333) 2,029

Income tax (expense) / benefit 500 (324)

Profit / (loss) for the year (2,833) 1,705

Other comprehensive income

Items that will not be reclassified subsequently to profit and loss

Revaluation of property, plant and equipment, net of tax 5,708 1,104

Other comprehensive income for the year 5,708 1,104

Total comprehensive income 2,875 2,809

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Statement of Financial Position

($000) FY20 FY21 Assets Cash and cash equivalents 2,317 2,761

Trade and other receivables 7,648 7,744 Inventories 308 548 Property, plant and equipment 32,303 32,896 Right‐of‐use assets 181,431 177,170 Investment properties 27,831 31,675 Deferred tax assets 2,006 3,635

Intangible assets 16,996 16,996 Total assets 270,840 273,425 Liabilities Trade and other payables 14,086 14,911

Current tax liabilities 723 1,135

Borrowings 31,427 27,212 Deferred management fee 962 1,178

Refundable occupation right agreements 17,518 20,591 Lease liabilities 185,304 184,305

Total liabilities 250,020 249,332

Net assets 20,820 24,093 Equity Share capital 4,736 5,932

Asset revaluation 5,708 6,812 Retained earnings 10,376 11,349 Total equity 20,820 24,093

29 eraC suidaR Statement of Cash flows

($000) FY20 FY21

Cash flow from operating activities Receipts from residents for care fees and village fees 113,282 122,337

Receipts of government subsidy ‐ 1,210 Payments to suppliers and employees (95,436) (101,724)

Proceeds from the sale of Refundable occupation right agreements 3,705 3,927 Payments for the repurchase of Refundable occupation right agreements ‐ (464)

Interest received 49 71

Interest paid –borrowings (1,183) (883)

Interest paid –lease liabilities (9,400) (8,823)

Income tax paid (814) (1,744)

Net cash provided by operating activities 10,203 13,907

Cash flow from investing activities

Proceeds from the sale of property, plant and equipment 114 54

Payments for the purchase of plant and equipment (11,305) (3,577)

Payments for village developments (3,723) (965)

Net cash used in investing activities (14,914) (4,488)

Cash flows from financing activities

Proceeds from bank borrowings 15,120 ‐ Repayments of bank borrowings 4,038 (4,215)

Repayments of shareholder loans (5,030) ‐ Principal repayment of lease liabilities (3,035) (4,028) Dividends paid (225) (732)

Net cash (used in) / provided by financing activities 2,792 (8,975) Reconciliation of cash and cash equivalents

Cash and cash equivalents at beginning of the year 4,236 2,317 Net increase / (decrease) in cash held (1,919) 444 Cash and cash equivalents at end of year 2,317 2,761 30

1/06/2021

6 eraC suidaR

Reconciliation of NZ GAAP financial measures to non‐GAAP financial measures

($000) FY20 FY21

Profit/(loss)for the year (2,833) 1,705

Adjustments

Non‐recurring or infrequent items

Remove

COVID‐19 related expenses 34 653

Remove

Government COVID‐19 Subsidy (353) (857)

Remove

One‐off listing costs ‐ 1,227

Remove

Share based payments ‐ 1,464

Structural changes and other

Include

Listed & other company costs (1,084) (714)

Remove

Historical governance costs 350 417

Include

Income tax impact from adjustments 295 (270)

Underlying adjustments

Remove

Change in fair value of investment properties 649 (2,879)

Include

Realised development margins 512 343

Include

Realised gains on resales ‐ 480

Remove

Deferred tax expense (1,533) (1,831)

Underlying Net profit before tax (3,963) (262)

Remove

Depreciation 10,911 11,552

Remove

Net interest expense 10,534 9,636

Remove

Current tax expense 1,033 2,155

Remove

Income tax impact from adjustments (295) 270

Underlying EBITDA 18,220 23,351

Include

Pre‐NZ IFRS 16 operating lease expense (12,435) (12,850)

Pre‐NZ IFRS 16 Underlying EBITDA 5,785 10,501

Include

Depreciation (Pre‐NZ IFRS 16) (3,700) (4,262)

Include

Net interest expense (Pre‐NZ IFRS 16) (1,134) (812)

Include

Current tax expense (1,033) (2,155)

Include

Income tax impact from adjustments 295 (270)

Pre‐NZ IFRS 16 Underlying Net profit after tax 213 3,002

Remove

Depreciation (excl. NZ IFRS 16 related) 3,700 4,262

31 A In F c F lu O de: Maintenance capital expenditure (4 (4 ,4 8 0 7 0 ) ) ( 3 3 , ,5 7 4 2 3 1 ) eraC suidaR

21.0

$0.1

$(0.8)

$(0.2) $0.1 $(0.1)

19.0 $20.4 $(0.6)

$(0.7)

$18.2

17.0

FY19 Pro forma Brownfield & Bureau Other aged care DMF and weekly Realised Gains on Support office Support office FY20 Pro forma

Underlying EBITDA Greenfield operations service fees Resales and personnel costs other expenses Underlying EBITDA

Developments Development

Margin

32 m$ZN

Historical Pro forma Underlying EBITDA –FY19 to FY20

Aged care Retirement village Group support

Note

Extract from the NZX Listing Profile of 10 December 2020 eraC suidaR

Directory of facilities

Leased facility Location Care Beds Units Current lease termTime to next renewal Rights of renewal Time to final expiry Landlord

Heatherlea New Plymouth 55 ‐ 12 yrs 5 yrs 3 x 12 yrs 41.1 yrs A

Taupaki Gables Kumeu 60 ‐ 12 yrs 5 yrs 3 x 12 yrs 41.1 yrs A

Windsor Court Ohaupo 76 ‐ 12 yrs 5 yrs 3 x 12 yrs 41.1 yrs A

Elloughton Gardens Timaru 86 ‐ 12 yrs 5 yrs 3 x 12 yrs 41.1 yrs A

Kensington Hamilton 96 ‐ 10 yrs 3.2 yrs 2 x 10 yrs 13.2 yrs B

Peppertree Palmerston North 62 ‐ 10 yrs 3.7 yrs 2 x 10 yrs 13.7 yrs B

St Joans Hamilton 82 ‐ 10 yrs 4.1 yrs 2 x 10 yrs 14.1 yrs B

Fulton Home Dunedin 93 ‐ 10 yrs 4.6 yrs 2 x 10 yrs 14.6 yrs B

Arran Court Auckland 102 ‐ 10 yrs 8.3 yrs 1 x 10 yrs 18.3 yrs B

Potter Home Whangarei 55 ‐ 20 yrs 8.6 yrs 2x 15 yrs 38.6 yrs C

Rimu Park Whangarei 55 ‐ 20 yrs 8.6 yrs 2x 15 yrs 38.6 yrs C

Waipuna Auckland 86 ‐ 30 yrs 25.9 yrs ‐ 25.9 yrs D

Hampton Court Napier 45 ‐ 10 yrs 7.9 yrs ‐ 7.9 yrs E

Baycare Northland 45 ‐ 12 yrs 5 yrs 3x 12 yrs 41.1 yrs F

Matua Tauranga 149 ‐ 30 yrs 21.7 yrs ‐ 21.7 yrs G

Althorp Tauranga 117 ‐ 15 yrs 7.5 yrs 3x 10 yrs 37.5 yrs H

Millstream Ashburton 80 ‐ 35 yrs 30.3 yrs ‐ 30.3 yrs I

Millstream Apartments Ashburton 19 ‐ 5 yrs 3.5 yrs 2x 5 yrs 13.5 yrs I

Glaisdale Hamilton 80 ‐ 15 yrs 11.2 yrs 2x 15 yrs 41.2 yrs J

Hawthorne Christchurch 94 ‐ 10 yrs 9.1 yrs 2x 10 yrs 19.1 yrs K

Total leased 1537 ‐ n/a n/a n/a n/a

Simple average leased 77 ‐ 15 yrs 9.1 yrs n/a 27.7 yrs

Owned facility/village

St Helenas Christchurch 52 ‐ n/a n/a n/a n/a n/a

Thornleigh Park New Plymouth 63 ‐ n/a n/a n/a n/a n/a

Lexham Park Katikati 63 ‐ n/a n/a n/a n/a n/a

Windsor Court Village Ohaupo ‐ 22 n/a n/a n/a n/a n/a

Elloughton Grange Village Timaru ‐ 54 n/a n/a n/a n/a n/a

Total owned 178 76

33 Total 1715 76 eraC suidaR

34