Annual Meeting Materials

1 September 2022

Brien Cree, Executive Chair
Andrew Peskett, Chief Executive Officer

Radius Clare House

The BeginningSolidify Steady GrowthNZX ListedLand & Buildings
Strategy
Continue to
Grow

Buy facilities from third
parties where the
acquisition is value
accretive.
Purchase the land and
buildings of
strategically important
facilities we currently
operate;
Undertake Brownfield
developments which
means increasing the
number of beds at a
site;
Undertake Greenfield
developments which
means buy land and
build a complete new
facility; and
Position for NZX listing.Continued acquisition:
•Ohaupo transaction and
capital raise.
•Clare House acquisition.
•UCG transaction and new
ASB banking facility.
•Matamata acquisition.
Start development of
land bank portfolio of
additional beds and
independent living
units.
Introduce care suites
product.

February 2022July 2022
October2011
July 2017
May 2019
August 2022
October 2019

Rolling 5
-
year pop CAGR (%)
65 - 85 5-yr CAGR85+ 5-yr CAGR
Proportion of total revenue
(%)

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Page 1

Radius Residential Care Limited
ANNUAL SHAREHOLDERS’ MEETING 2022
CEO’s Address – Andrew Peskett


Brien has set the scene around Radius Care’s strategy and growth plan. I want to tell you about my
plan for delivering on the strategy and how this guides the day to day or operational side of the
business that, ultimately, drives the returns on the land and buildings. Those returns then link to the
income distribution and the share price.
What really drives Radius Care day-to-day and is at the heart of our operations is 1) our people and 2)
our product. I’ll briefly address each of these.
Firstly, our people. Our workforce numbers over 1,600 staff. These exceptional people, delivering
exceptional care, are at the front line of providing care every day to some of New Zealand’s most
vulnerable and high needs residents. They are absolutely amazing. Radius Care’s staff are our secret
sauce. I believe they are a differentiator for our business over other care providers. If you’ve had family
or friends in Radius Care facilities I’m sure you’ll know this. I’ve been lucky to come in to an
organisation with a strongly positive culture of caring and not only “can do” but “will do”. Brien can
rightly be very proud of the culture he has created for Radius Care – thank you Brien.
I would like to take this opportunity to publicly thank all Radius Care employees for their resilience
and incredible compassion over the last couple of years that have presented significant challenges.
Brien introduced our refreshed Executive Team. We have an excellent mix of institutional knowledge
and strategic thinking from our existing team members that is now being nicely complemented by the
fresh thinking and ideas by our newest members Wendy and Richard. I am very pleased to be
surrounded by such an excellent, cohesive team who are and will contribute significantly to our
strategic growth pillars.
Our 23 facilities are located from the Bay of Islands in the north to Invercargill in the south. Brien
explained why we have a preference to own rather than lease these facilities. And the nine facilities
that have come under Radius Care’s ownership in the past year or so have presented us with an
exciting development pipeline that will substantially boost Radius Care’s profile and investment
characteristics.
Since June last year there have been four announcements about property acquisitions – four
properties from Ohaupo Holdings, Clare House in Invercargill, four from UCG Holdings and, earlier this
week we announced that we have signed an agreement to acquire the Matamata Country Lodge,
settling later this month.
This acquisition is similar to Clare House, providing a full continuum of care from retirement village
units to high acuity. We will also be able to develop additional units on this site. It is an excellent
business, with high occupancy, a waiting list and the maximum period of four-year certification. We

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are really looking forward to welcoming the Matamata Country Lodge staff and residents into the
Radius family as our 24
th
care home later this month.
So let’s look at the details of the growth platform we have ahead of us on a year by year.
What’s really exciting about the growth opportunities is a new offering, that we’re well on track to
launching at several sites.
I’m super pleased to tell you that we’ll offer care suites at Lexham Park from late 2023.
Our care suite rooms will be slightly larger with an ensuite, chairs and a side table for visitors and be
really very comfortable. When the room comes back to the market, we will refresh the décor and
resell it.
From a financial perspective, a care suite is a hospital-standard room that the occupier buys through
an ORA or Occupation Right Agreement. An ORA is capital sum paid up front that re-pays development
costs quickly and will provide a significant additional income stream for Radius Care.
We will also introduce care suites at Northwood in Christchurch and several other sites where the
market indicates strong demand. Crucially, we will be flexible in our approach so that we have the
several options (focussing on premium charging and care suite offerings) available for customers to
choose from.
Radius Care has very strong growth opportunities. The proportion of New Zealanders over the age of
75 is growing every year with no prospect of it slowing in the foreseeable future. This is a key driver
of demand for both aged care and retirement villages which offer specialised care. Residents are able
to stay in the one place as their level of dependency increases and we know that’s a really important
consideration when choosing somewhere to spend your later years.
We also look after some of New Zealand’s most high needs residents. Radius Care offers care for
people with dementia, psychogeriatric conditions, physical and intellectual conditions together with
hospital-level care.
Radius Care’s broad service offering has been a major factor behind the growth in our average bed
occupancy rates. The average is in the mid-eighty percent in New Zealand. Radius Care’s occupancy
rate is currently in the early ninety percent range. Many of our facilities have a waiting list.
We are the industry leaders in high-acuity with around 87% of our beds so certified compared with an
industry average of around 61%. Around 68% of all bed nights are used by high acuity patients,
significantly higher than our major competitors.
I’m also excited about the prospect of adding significantly to our Retirement Village offering in coming
years as Brien mentioned. In addition to our pending Northwood development, we are currently
assessing several opportunities to buy land adjacent to our villages to expand our retirement village
unit numbers. Acquisitions of full continuum of care villages in coming years also remains a high
priority. We have increased our sales and retirement village expertise across the company to enable
this growth to be value-accretive.
All of these moving parts culminate in a metric that is the single most important measure of
performance for Radius Care’s business – our industry-leading EBITDA per care bed.

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We will continue to focus on growing this measure by:
• Firstly, increasing the number of beds;
• Secondly, providing premium accommodation for which residents will pay a premium charge for.
It is important to note that our premium charging has been increasing significantly year on year
and is a critical area of our business that has received considerable attention from the
management team in the last few months as we seek to optimise our revenue streams from our
existing portfolio; and
• Thirdly, delivering services efficiently and by being recognised as offering superior levels of care.
Now, having presented a glimpse of where Radius Care is heading to, let’s check in on how FY22 went.
COVID-19 continued to be a hazard that we battled on a daily basis. Our staff are very well trained in
infection control and did a fantastic job. Radius Care has strong protocols and policies in place for each
Covid level and those high standards were maintained despite the challenges that each of our staff
had to manage – short notice changes in rosters, colleagues isolating, our staff members’ families
isolating, childcare challenges and schools closed.
The financial results that we reported were in line with the guidance that had been given. Revenue
from care services increased almost 9% to $132m. Total income was $136m, up 7.8%. Reported profit
for the year was $2.7m compared with $1.7m in the prior year. Key metrics of EBITDA per bed and
premium charging increased.
A total dividend of 1.05 cents was declared. With full imputation credits attached, it valued up to 1.46
cents per share. As indicated in May, we will soon be in touch to offer you the opportunity to
participate in a dividend reinvestment plan. We intend to have that in place for the next dividend, the
2023 interim dividend.
It has also been a solid start to FY23 despite ongoing challenges with covid and winter illness and we
will be looking to announce our half year results in late November.
Thank you for the opportunity to share our exciting growth trajectory with you all in the room and
online today. I’ll now hand back to you Brien.

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Page 1

Radius Residential Care Limited
ANNUAL SHAREHOLDERS’ MEETING 2022
Executive Chair and Managing Director’s Address – Brien Cree


Radius Care is New Zealand’s leading provider of high acuity, aged residential care, operating 23 aged
care facilities across New Zealand and three retirement villages. Our purpose is 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.
Since 2003, Radius has grown the business from one care facility to a portfolio of 23 aged care facilities
and three retirement villages.
In the past couple of years since listing on the NZX we’ve seen substantial growth. We now own the
land and buildings at over half of our facilities. Those facilities are located from the Bay of Islands to
Invercargill.
Our business has two main streams – aged care and independent living units or retirement village
units as they’re also known.
Our intention for our aged care business is to:
• Maximise occupancy through a strong reputation for clinical care excellence;
• Enhance returns through optimal Care Bed mix;
• Ensure cost efficiency and stability;
• Grow the Radius Care Online Shop; and
• Continue to grow the business through a combination of organic growth, development and
acquisitions.
With our retirement village business our intention is to expand the number of units we offer by
including independent living units in the plans for new developments at our sites that offer an
expansion opportunity.
So how have we been delivering on those intentions? In short, we’ve significantly re-shaped our aged
care and retirement village segments of the business and we’ve done it in three main stages.
The NZX listing in late 2020 marked the end of the first stage. We had positioned ourselves to list on
NZX and adapt to the realities of being a listed rather than private company.
The second stage was the deliberate intention to acquire properties we were leasing. Since the middle
of last year we have delivered a very substantial level of change to our portfolio. Whereas we started
the 2022 financial year with 22 facilities of which we owned three and leased 19, we now have 23
facilities of which we own 12 and lease 11.
The third stage sees us in a strong position to build on the scale we’ve achieved through groundwork
undertaken over many years. We are in a strong position to build on the momentum that’s been
created through stage two.

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I want to remind you that the growth platform is supported by a clear and focussed strategy. Over the
past 18 months, we have put a very deliberate and precise focus on growing both the aged care and
retirement village business streams. The way that we’ve done this has been directly aligned with the
four pillars of our strategy:
1. Purchase the land and buildings of strategically important facilities we currently operate;
2. Undertake Brownfield Developments which means increasing the number of beds at a site;
3. Greenfield Developments which means buying land and building a complete new facility and
village; and
4. Buy facilities from third parties where the acquisition is value accretive.
The land and buildings that we bought from Ohaupo cost us $31.4 million. That acquisition was funded
through a capital raise in July 2021. The additional funds we raised at the time supported the Clare
House purchase. The four properties we bought in May this year from UCG were funded by bank
facilities.
On this slide you’ll see how the activity we undertook in FY22 represents the start of the third stage
of our growth path. We’ve created significant development opportunities to add to those that we
were working on when we listed in December 2020.
By the end of this current financial year, FY23, we plan to have an additional 24 beds available. All of
these will be at New Plymouth where an extension is due to open in January 2023. In the following
year, we’re scheduled to be opening Stage 1 at Northwood, our brand new facility at Belfast,
Christchurch, which are likely to offer 100 care beds, of which 30 will be care suites, 27 apartments
and 67 villas.
Taking ownership of facilities rather than leasing them is again a very intentional move on our part.
Where we undertake a development on land we own, we – and by we I mean you as a shareholder –
get all of the upside. There’s no increase in rental based on CPI movements being passed on to us by
the property owner to reflect the increase in value of the buildings. Where there’s an opportunity to
add more rooms to a facility we own we don’t have to negotiate the building programme with a
landlord.
All of the acquisitions since mid-last year have immediately contributed positively to Radius Care’s
bottom line. The earnings impact from the eight facilities for a full financial year, once we back out
the lease costs we would otherwise have been paying, is a net contribution of an additional $5m to
the bottom line. So that’s why in the past two years you’ve seen us being so active in buying properties
with development potential.
Entering the third stage of the growth path required the Board to ensure we had a management team
that was experienced, capable and with a vision to grow the business that aligned ours.
In January Andrew joined us as CEO. He has quickly got to grips with the business and has been building
a superb team around him to deliver on the day-to-day operations. We’ve recently welcomed Wendy
Jenkins to the new role of Chief Financial Officer and Richard Callander, our new Chief Strategy Officer,
who join our existing executives Sam Carey, Trish Evers, Gared Thomas and Kayleen Currie who I
introduced earlier. This as an A team and means we’re in great hands from a leadership perspective.

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Leadership at Radius also flows from our Board and this year’s annual report provided you with more
detail about our directors’ skills. While we are of the view the Board is working well and is able to
govern effectively on behalf of shareholders, we are committed to ensuring the Board’s overall skill
sets fit the company's governance needs.
Before I hand over to Andrew, I want to comment on the health industry employment situation. You
will have heard a lot through the media about the state of the health sector. So how is Radius Care
doing?
Fortunately, we have been able to recruit many excellent health care professionals from countries
such as the Philippines, Marshall Islands, Singapore, Fiji and the Middle East, and many others. This is
not a new process for Radius, as we have been tapping into the overseas market for health care
professionals with great success for some time. Our new staff will join us over the next few months.
It’s really important that we retain these staff and we ensure that people who move to New Zealand
to work for us are well looked after. We sponsor our new staff through a lengthy and costly
programme to allow them to work as Registered Nurses in New Zealand, and also offer a high-quality
pastoral care programme to ensure the disruption of a move to an unfamiliar country is minimised.
We’re really looking forward to welcoming these health care professionals as they join the Radius Care
team.
We continue to advocate for pay parity between aged care nurses and nurses employed under the
Health NZ system to ensure aged care is treated fairly in line with the role it plays in providing critical
support to the Health Care sector in New Zealand.
I’m now going to hand over to Andrew, our CEO. Andrew joined us in November last year in a
consulting role but we soon saw his potential and the Board was delighted when Andrew agreed to
being appointed as our Chief Executive. Bringing some 14 years of experience at Metlifecare means
Andrew has well and truly hit the ground running.
Andrew and I have today presented the strategy and the business plan that will drive Radius Care’s
medium and longer-term growth path. The company is in very good shape and we will report to you
on the first six months of the 2023 financial year in late November. I look forward to talking with you
again then.