#1Puffing Billy, Victoria NON SMOKING aged care regis healthcare OUR PURPOSE Personalised and respectful care that embraces the experience of ageing FY23 Full-Year Results Presentation 25 August 2023#2Regis Healthcare Limited | FY23 Full-Year Results Presentation Regis is a Leading Residential Aged Care Provider One of the largest and most geographically diverse aged care portfolios Existing Network Development Sites 30+ years in the aged care industry 6,960 available operational places 63 aged care homes (100% freehold) with significant real estate value 92% single rooms as a percentage of total rooms ~9,000 employees >$1m average house price of catchment area across portfolio 93.7% spot occupancy (30 June 2023) $83.3m FY23 underlying EBITDA, up 6.7% - 1 - 1 Darwin 8 Perth 1 Bunbury 4 Adelaide 2 Mildura 2 Launceston 1 Hobart 2 Cairns 3 Townsville 4 Sunshine Coast 14 Brisbane 1 3 Regional NSW 3 Sydney 2 15 Melbourne 1 regis healthcare#3Contents Aged Care Industry Overview • Financial and Operational Performance •Strategic Update and Outlook Questions Appendices 2 Regis Wynnum, Queensland#4ELISE Regis Shenley Manor, Victoria Aged Care Industry Overview regis healthcare#5Regis Healthcare Limited | FY23 Full-Year Results Presentation Industry Reform and Sector Changes Aged care worker pay rise Fair Work Commission - Work Value Case increased modern award wage rates by 15% to eligible aged care workforce from 30 June 2023 Funded by Government through AN-ACC Fair Work Commission - Annual Wage Review announced increase to minimum award wages of 5.75% from 1 July 2023 ► Impact on Regis: Improved ability to attract and retain staff IHACPA Introduction of Independent Hospital and Aged Care Pricing Authority (IHACPA) to determine cost of care under new AN-ACC funding model ►IHACPA provided advice to Government on pricing of residential aged care services which informed the 2023-24 Federal Budget Impact on Regis: Independent body will provide funding recommendations linked to cost of providing care Funding ► Transitioned to AN-ACC on 1 October 2022 which provides equitable funding according to resident needs (13 classes of funding) New AN-ACC price from 1 July 2023 with Government intention to cover worker wage increases and indexation Starting industry AN-ACC funding to providers increased to $243 per resident per day ► New methodology for annual changes in prices/indexation, informed by IHACPA Government Aged Care Taskforce to review funding arrangements by December 2023 Impact on Regis: Improved funding regime Bed licences ► Bed licence deregulation on 1 July 2024 ► Impact on Regis: Significant growth opportunity for scale players through greenfield and brownfield development, as well as M&A Care minutes Mandated care minutes requirement commences 1 October 2023 requiring on average 200 care minutes including 40 minutes from a registered nurse Care minutes are reported to the Department of Health & Aged Care (DHAC) each quarter ► 24/7 registered nurse required from 1 July 2023 Impact on Regis: Advantages providers with scale and systems to support increasing care requirements and ability to attract qualified staff Star ratings ► Star ratings introduced 1 December 2022 ▸ Designed to support consumer choice and comparison of aged care homes ► Each home is assigned an overall star rating evaluating four sub-categories: resident experience, compliance, staffing and quality measures ► Enhanced quality standards effective 1 July 2024 Impact on Regis: Opportunity for positive differentiation for high quality operators regis healthcare - 4-#6Regis Healthcare Limited | FY23 Full-Year Results Presentation Lack of Quality New Beds to Meet Future Demand Elevated demand for quality aged care homes Ageing population with acute and sub-acute healthcare needs set to support demand Baby Boomer generation will demand higher quality and more premium service offering Circa 220,000 operational places in Australia at 30 June 20221, below forecast required residential aged care places of over 300,000 by 2030² Limited supply to service increasing demand New work and refurbishment of residential aged care facilities peaked prior to COVID-19 Inadequate Government funding, regulatory uncertainty, and COVID-19, has led to limited supply of quality new beds entering market in recent years Development approval delays and heightened building costs exacerbating supply squeeze ► Approx. 25% of current accommodation no longer fit for purpose² • Circa 135,000 new and refurbished beds required to be built Based on current cost of development, approx. $50 billion capital will need to be invested to close the gap Forecast Residential Aged Care Places Required ('000s)² 350 300 250 200 150 100 50 FY24 FY25 FY26 FY27 FY28 FY29 FY30 Existing Replaced New Value of Building Work Completed in the Australian Aged Care sector ($m)³ 800 700 600 500 400 300 200 100 1Australian Government - Australian Institute of Health and Welfare - GEN Aged Care Data 2ACFA Ninth Report On The Funding and Financing of the Aged Care Industry (July 2021) 3Australian Bureau of Statistics (ABS) Building Activity, Australia - March 2023 - 5- Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 regis healthcare#7Financial and Operational Performance Regis Sandringham, Victoria regis healthcare#8Regis Healthcare Limited | FY23 Full-Year Results Presentation FY23 Overview Financial Overview Revenue from services of $780.6 million, up 7.6% on pcp Underlying EBITDA1 of $83.3 million, up 6.7% on pcp NPATA¹ of $28.5 million, up 631% on pcp Statutory net loss after tax of $28.5 million impacted by non-cash bed licence amortisation² Net operating cash flow of $105.2 million includes net RAD receipts of $43.6 million Net debt of $6.0 million, down 94.2% or $96.9 million on pcp Board of Directors resolved to pay a final dividend of 7.48 cents per ordinary share (50% franked) payable 27 September 2023 Total dividends pay-out represents 100% of NPATA Operational Highlights Average occupancy of 91.5% (H2 FY23: 92.0%) significantly up on 89.8% in prior year Achieved all-time high of 6,521 occupied beds or 93.7% in June 2023 Improvement in average portfolio overall star rating from 3.11 (Q1 FY23) to 3.14 (Q3 FY23) Average care minutes increased from 165.3 minutes (Q1 FY23) to 178.8 minutes (Q4 FY23)³ Received net proceeds of $60 million from sale of non-income producing assets Revenue from Services Average Occupancy $780.6 million 91.5% Underlying EBITDA¹ Overall star rating (Q3 FY23) $83.3 million 3.14 NPATA¹ $28.5million Net Operating Cash Flow $105.2 million Net RAD Receipts $43.6 million Care minutes (Q4 FY23)³ 178.8 Net Debt $6.0 million Final Dividend 7.48 cents ¹Refer page 29 for definitions of Non-IFRS financial measures and page 27 for reconciliation of statutory results to Non-IFRS financial measures 2Net loss after tax includes $57.0m bed licence amortisation (after tax) during the year - refer page 29 3As submitted to DHAC -4 August 2023 - 7- regis healthcare#9Regis Healthcare Limited | FY23 Full-Year Results Presentation Financial Summary $ millions Revenue from services Other income1 Staff expenses Underlying EBITDA² NPATA² Net operating cash flow Net RAD cash inflow FY23 FY22 ▲ FY22 to FY23 780.6 725.3 117.0 71.6 7.6% 63.4% 591.2 550.4 7.4% 83.3 78.1 6.7% ► Revenue from services benefitted from improved occupancy, new AN-ACC funding model from 1 October 2022, and additional resident funding Average occupancy improved from 89.8% to 91.5%³ Other income included imputed income on RADS per AASB 16 of $62.9 million, Government grant income of $32.5 million and gains on disposal of non-current assets of $11.7 million ► Increase in staff expenses due to: • Continued workforce shortages leading to increased agency and overtime 28.5 3.9 630.8% 105.2 114.8 43.6 83.9 (8.4%) (48.0%) • EA and Award wage increases Capital expenditure 53.5 48.6 Net debt 6.0 102.9 Average occupancy %³ 91.5% 89.8% Staff expenses / revenue from services % 75.7% 75.9% 10.1% (94.2%) 1.7 pts (0.2 pts) Basic EPS (cents per share) (9.47) (12.90) Care Minutes - FY23 Registered Nurses Enrolled Nurses/ Personal Care Workers Total Q1 Q2 Q3 29.9 30.4 29.4 Q44 32.5 135.4 139.6 143.3 146.3 165.3 170.0 172.7 178.8 Recruitment of frontline staff to address Government care minute mandate ► Net operating cash flow of $105.2 million included net RAD cash inflow of $43.6 million Net cash flows from operating activities before RADS increased 145% to $60.2 million Capital expenditure of $53.5 million (FY22: $48.6 million) included $15.0 million purchase of development land in Carlingford, NSW, refurbishment, and strategic technology investment Net debt down 94.2% to $6.0 million following strong cash generation and the rationalisation of non-income producing assets Regis' care minutes have improved each quarter as the Company has repurposed roles to direct care, decentralised certain support roles and invested in additional aged care workers Regis is well placed to meet mandated targets for personal care workers Given global shortage of nurses, Regis has invested in initiatives to attract a greater number of registered nurses, including expansion of recruitment capability, providing enhanced career pathways, and working with various partners to recruit candidates ¹Includes $62.9 million of imputed income on RADS and Bonds (FY22: $62.4 million) 2Refer page 29 for definitions of Non-IFRS financial measures 3Based on FY23 average available operational places of 6,980 (FY22: 7,056) 4As submitted to DHAC - 4 August 2023 -8- regis healthcare#10Regis Healthcare Limited | FY23 Full-Year Results Presentation Drivers of Shareholder Value Aged care revenue per occupied bed day ($) 400 323.3 344.4 328.9 310.6 A FY22 300 Operational Statistics Average available operational places (#)1 Total occupied bed days FY23 FY22 to FY23 6,980 7,057 (1.1%) 200 2,332,063 2,312,826 0.8% 100 Average occupancy (%) 91.5 89.8 1.7 pts Aged care revenue per occupied bed day ($) 326.8 305.9 6.8% 10 Q1 Q2 Q3 Aged care Government revenue per occupied bed day ($)2 230.7 219.3 5.2% Q4 == Aged care resident revenue per occupied bed day ($) 96.1 86.6 11.0% ■Government revenue ■Resident revenue Aged care staff expenses per occupied bed day ($)³ Average RAD held ($000)4 228.4 214.4 6.5% Average Quarterly Occupancy (%) 478.7 460.8 3.9% Average incoming RAD ($000)5 490.6 489.1 0.3% 92.5% Average occupancy improved due to management initiatives and easing of COVID-19 restrictions Spot occupancy at 18 August 2023 was 93.5% (Spot occupancy 30 June 2023: 93.7%) Aged care Government revenue improved following the introduction of AN-ACC funding model and subsequent resident reassessments Aged care staff expenses have increased including repurposed roles into direct care in line with 1 October 2023 care minute mandate Increase in total value of RADS held included net RAD cash inflow $43.6 million 1Across portfolio of homes as at 30 June 2023. (30 June 2023: 6,960 available operational places) Movement in average available operational places mainly attributable to closure and subsequent sale of Belmore, New South Wales facility (60 beds) 2Excludes COVID-19 grants 3Excludes COVID-19 outbreak staff expenses 4Average RAD held by 100% RAD payers 5Average incoming RAD for 100% RAD payers 6Probate liabilities of $177.5 million (FY22: $199.7 million) included in 30 June 2023 RAD balance -9- 91.5% 91.2% 90.9% 585,999 Q1 586,894 Q2 573,253 Q3 585,917 Q4 Total occupied bed days Net RAD/Bond Movements ($m)6 443.0 (5.0) 1,306.1 1,267.5 (399.4) 30 June 2022 RAD/Bond Outflow RAD/Bond Inflow Other 30 June 2023 regis healthcare#11Regis Healthcare Limited | FY23 Full-Year Results Presentation One-Off / Non-Recurring Items The following one-off / non-recurring items are excluded from underlying EBITDA: $ millions (before tax) FY23 FY22 COVID-19 and other Government grant income 32.5 3.2 COVID-19 outbreak related expenses (16.5) (27.8) Gain on disposal of non-current assets 11.7 Fair value gain on investment property 7.2 5.9 Increase in employee entitlements (Fair Work Commission decision)1 (7.3) Write-off of capital work in progress and other one-off write-downs (12.8) (2.9) Professional services costs incurred in relation to potential employee underpayments program (3.1) (2.2) Other net losses² (0.1) Total 11.6 (23.8) COVID-19 Outbreak Related Expenses ($m) 4.5 23.3 13.0 3.5 H1 FY22 H2 FY22 H1 FY23 H2 FY23 COVID-19 Outbreak COVID-19 outbreak and other grant income of $32.5 million (FY22: $3.2 million) COVID-19 grant income of $31.4 million, of which $23.2 million has been approved (18 August 2023) • $22.2m recognised as income but not yet received from Government . Expect outstanding claims to be settled during FY24 COVID-19 outbreak related expenses of $16.5 million (H2 FY23: $3.5 million) included: $14.8 million of incremental staff costs / $1.7 million of PPE and other related costs Property sale $11.7 million gain on disposal of non-current assets Investment property ► $7.2 million revaluation gain on investment property - independent valuation Employee entitlements $7.3 million adjustment to employee entitlements due to Fair Work Commission changes to aged care worker modern award wage rates Capital write-offs $11.5 million prior period development projects not expected to continue $1.3 million reduction in carrying amount of operating investment properties 1Represents increase to employee entitlements expense as at 30 June 2023 required to reflect the Fair Work Commission's decision to increase modern award wage rates by 15% from 30 June 2023 2Other net losses includes $1.3 million incurred for regulatory penalties (including external advisors and additional costs) relating to the Sanction and Notice to Agree (NTA) applied to Port Coogee on 11 August 2022 by the Aged Care Quality and Safety Commission (ACQSC) and $0.8 million incurred in relation to other one-off items, offset by $2.0 million recognised as gain on lease modification due to the early termination of Regis' head office lease in Armadale, Victoria, which resulted in the re-measurement of the existing lease asset and liability as at 30 June 2023 regis healthcare - 10 -#12Regis Healthcare Limited | FY23 Full-Year Results Presentation Net Debt and Cash Flow $ millions Facility A Purpose Limit Working capital 150.0 March 2026 Facility B Working capital 175.0 March 2027 Residential village Facility C 70.0 March 2027 developments Facility D LC/bank guarantees 10.0 March 2027 Total Syndicated Facility 405.0 Net Debt Maturity Net Debt Movements ($m) 102.9 (71.5) ► $96.9 million reduction in net debt driven by operating cash flow and investing activities • Net cash inflow from operating activities of $105.2 million, including net RAD cash inflow of $43.6 million • $60 million proceeds from sale of non-income producing assets including the Hollywood retirement village and vacant land in WA $53.5 million investment in capital expenditure including the purchase of development land at Carlingford, NSW and strategic technology investment ►Net debt reduced 98.5% over last 5 years from $403.8 million at 30 June 2018 to $6.0 million at 30 June 2023 ► Facilities B, C and D refinanced through to March 2027 • Regis elected to reduce the total facility from $515 million to $405 million in recognition of working capital and investment requirements ► Regis has significant capacity for future greenfield and brownfield developments, as well as material strategic acquisitions to participate in the continuing sector consolidation Dividends ▸ FY23 interim dividend of 2.00 cents per ordinary share (50% franked) paid 14 April 2023 ►FY23 final dividend of 7.48 cents per ordinary share (50% franked) payable 27 September 2023 "Cashflows from operating activities before interest, income tax and RADS -11- 30 June 2022 Capital Expenditure Cashflows from Operating Activities* Net Debt ($m) 403.8 53.5 Sale of Property, Plant and Equipment 303.2 236.7 (60.0) Dividends Paid 10.5 (43.6) 13.0 Net Finance Costs Net RAD and Accomm Bond Inflows Tax Paid and other Net Costs 142.4 102.9 FY18 FY19 FY20 FY21 FY22 6.0 FY23 regis healthcare 1.2 6.0 30 June 2023#13Regis Healthcare Limited | FY23 Full-Year Results Presentation Capital Expenditure $ millions Property FY23 FY22 Maintenance & Refurbishment Capital Expenditure 15.1 16.9 - Residential Aged Care Homes Maintenance Capital Expenditure - Retirement Villages 2.0 1.5 Development 30.0 16.7 Technology Strategic Technology Investment Total 6.4 13.5 53.5 48.6 Capex ($m) 70 60 50 40 30 20 10 64.9 FY19 44.0 FY20 COVID-19 impacted 18.7 53.5 48.6 FY21 FY22 FY23 1Development Approval in place for 110-bed residential aged care development - 12 - Maintenance & Refurbishment Regular and ongoing capex undertaken across residential aged care homes and retirement villages ► Refurbishments, improvements and upgrades to residential aged care homes Development Camberwell - Greenfield development commenced Q1 FY23. On track to open in H2 FY25 On 31 January 2023, Regis acquired a parcel of land in Carlingford, New South Wales, for approximately $15.0 million¹ (FY22 included purchase of land in Belrose, New South Wales for $15.3 million) Technology Investment Investment in core financial and clinical systems over last three years provides ability to operate at greater scale Strategic projects undertaken in FY23 included: • Completed enterprise-grade WiFi rollout and upgrades Electronic medication management system COVID-19 Capex Catch-up Maintenance and refurbishment capex projects were delayed during COVID-19 lockdowns and outbreaks across the portfolio Capex expected to continue to trend higher in the short-term including greenfield investments, upgrades to existing property portfolio, together with enhanced technology-based solutions regis healthcare#14Regis Healthcare Limited | FY23 Full-Year Results Presentation Resident Profile Number of Residents¹ RAD (100%) Combination (RAD/DAP) DAP Total Non-Concessional Concessional Other Total Permanent Residents Respite Total Residents Resident Mix (Permanent Residents) 30 June 2023 31 December 30 June 2022 2022 1,890 1,858 1,849 47% 981 1,015 980 353 311 290 3,224 3,184 3,119 2,796 2,716 2,727 132 132 6,152 6,032 135 5,981 371 341 404 6,523 6,373 6,385 47% 48% 53% 53% 52% 30-Jun-23 31-Dec-22 ■Non-Concessional ■Concessional/Other 30-Jun-22 30 June 31 December 30 June Resident Profile as % of Permanent Residents 2023 2022 2022 Payment Preference (Non-Concessional) RAD (100%) 31% 31% 31% Combination (RAD/DAP) 16% 17% 16% 11% 10% 9% DAP 6% 5% 5% Total Non-Concessional Concessional Other 53% 53% 52% 30% 32% 32% 45% 45% 46% 2% 2% 2% Total Permanent Residents 100% 100% 100% 59% 58% 59% Continued high level of RAD paying residents across portfolio MPIR has increased from 4.07% on 30 June 2022 to 7.46% on 30 June 2023. Current rate 7.90% Proportion of DAP payers trending slightly higher 1Number of residents at period end - 13- 30-Jun-23 31-Dec-22 30-Jun-22 ■RAD ■Combination (RAD/DAP) ■DAP regis healthcare#15Regis Healthcare Limited | FY23 Full-Year Results Presentation Other Matters Potential Employee Entitlement Underpayments As previously reported, Regis announced to the ASX on 9 August 2021 that it had identified potential underpayments of employee entitlements to certain current and former employees under its enterprise agreements. These payment shortfalls had arisen because some employee entitlements due under various enterprise agreements were recorded inaccurately in the payroll system. This has led to incorrect payments to a number of employees. Regis, with the assistance of external advisors, continues to determine the extent of the underpayments. Based on additional analysis undertaken during the period, Regis has maintained a provision of $37.7 million at 30 June 2023. Expect remediation to occur in H1 FY24 Independent Capability Review of the Aged Care Quality and Safety Commission (ACQSC) Review commissioned to ensure that the aged care sector has a fit for purpose regulator, able to uphold the rights and standards of best practice for older Australians Report is published as part of the Government's commitment to transparency and accountability in the sector and the importance of the capability review in supporting the Government's aged care reform journey Government's Aged Care Taskforce Chaired by Minister for Aged Care with members from the sector including unions, advisors and public sector Build on Royal Commission into Aged Care Quality and Safety recommendations Review funding arrangements for aged care Develop options for a system that is fair and equitable for everyone in Australia Interim advice expected in October 2023 and final report December 2023 Taskforce will provide Government with options for Consideration and a Recommended Package of Reforms that ensure that: Aged care providers are sustainably funded and benefit from introducing innovative care delivery approaches that meet older Australians' preferences Aged care funding is affordable for the Commonwealth with arrangements that balance equity and fairness between older and working-aged Australians Older Australians can see the value of their contributions relative to other funding sources There is a robust safety net that properly recognises financial capacity at different levels of income and/or life circumstances Contribution arrangements are efficient, simple to implement, and easily understood by all Australians, particularly older people - 14 - Regis Shenley Manor, Victoria regis healthcare#16Strategic Update and Outlook 0 0 Tandal egis TODAY'S MENU NEUMA Sexy MBC fork with Creamy % Please member he shur the der behind you whet ang g The will be Thelma Regis Frankston, Victoria regis healthcare#17Regis Healthcare Limited | FY23 Full-Year Results Presentation FY23 Key Accomplishments Culture of Care Delivery of safe, effective and integrated care for residents and clients New electronic medication management system implemented to enable better monitoring and history of medication provided to residents Upgrade of AutumnCare clinical management system to improve clinical and quality outcomes for residents Expansion of Consumer Advisory Committees including consumer representatives required under new clinical governance reforms that come into effect December 2023 Positive People and Practice Attracting, developing, empowering and retaining the best talent Finalising target operating model including organisational redesign to refocus resources towards more direct care ✓ Expansion of talent acquisition capability New business resilience framework implemented across every home inclusive of emergency management, business continuity and scenario planning exercises Ensuring our future Growth and development supported by operational excellence and digital enablers ✓ Commenced construction of Regis Camberwell ✓ Completed rollout of upgraded Wi-Fi to all Regis homes Implemented new systems and processes to support activity based (AN-ACC) funding model Rationalisation of non-income producing assets - 16- regis healthcare#18Regis Healthcare Limited | FY23 Full-Year Results Presentation FY24 Key Strategic Priorities Culture of Care - Delivery of safe, effective and integrated care for residents and clients • • • • Continue investment in integrated and person-centred care to residents and clients Improve resident services including dining, lifestyle activities and use of technology Implement improved clinical governance and consumer engagement frameworks in line with Government reform agenda Preparation to meet enhanced Aged Care Quality Standards effective 1 July 2024 • • Positive People and Practice - Attracting, developing, empowering and retaining the best talent Improve labour productivity and reduce agency costs while continuing to provide high quality care and maintain regulatory compliance Rollout new people management system to improve employee experience, efficiency, accuracy, and compliance Strengthen continuity of care model to improve resident experience and employee engagement Ensuring our Future - Growth and development supported by operational excellence and digital enablers On-going refurbishment of Regis' property portfolio . Investment in greenfield developments • Pursue material strategic acquisitions to broaden residential aged care footprint Improve business intelligence capability and cyber security posture • Continue rationalisation of non-income producing assets - 17 - regis healthcare#19Regis Healthcare Limited | FY23 Full-Year Results Presentation Environmental, Social and Governance (ESG) Regis' environmental, social and governance commitments Caring for the Environment Caring for our Local Communities Caring for our People Caring for Regis Caring for Society V BUSINESS ETHICS 08 We aim to minimise our environmental footprint to preserve and regenerate our shared natural world for future generations We prioritise putting our local communities first for positive economic impact We commit to maintaining our Culture of Care for our residents and clients while extending it to our people, our care partners, our community and our shareholders We hold ourselves to the highest standards of behaviour, ethics and operations to continue delivering a prosperous organisation We advocate for systemic improvements and reform in aged care ensuring viable and quality access for now and into the future -18- regis healthcare#20Regis Healthcare Limited | FY23 Full-Year Results Presentation Growth Program - Camberwell Greenfield Development Camberwell, VIC - in development ►112 beds ►4-level residence ► Land area ~4,300 sqm ~$40 million investment estimate (excluding land) Various room types: standard and large single ensuite rooms ► Development commenced September 2022 and remains on track to open H2 FY25 Artist's impression of Regis Camberwell (VIC) Development progress (July 2023) - 19- regis healthcare#21Regis Healthcare Limited | FY23 Full-Year Results Presentation Growth Program - Future Greenfield Developments Belrose, NSW ► Northern beaches of Sydney with ocean views ‣ 99 beds ► 3-level residence Land area -21,451 sqm ► Various room types: standard and deluxe single ensuite rooms Development approval in place ► To be tendered FY24 Carlingford, NSW West Sydney designed with large outdoor landscaped areas and communal activity spaces ▶ 99 beds 3-level residence ► Land area ~7,065 sqm Various room types: standard and deluxe single ensuite rooms ► Development approval in place ► To be tendered FY24 Toowong, QLD Inner-west riverside suburb in Brisbane 123 beds 5-level residence ► Land area ~5,248 sqm ► Various room types: standard single ensuite rooms and large suites ► Development approval in place ► Tendered FY23 Artist's impression of Regis Belrose (NSW) Artist's impression of Regis Carlingford (NSW) Artist's impression of Regis Toowong (QLD) - 20 - regis healthcare#22Regis Healthcare Limited | FY23 Full-Year Results Presentation Primed for Growth in FY24 and Beyond In the year ahead, Regis expects to benefit from improving occupancy, additional Government and resident funding while completing its organisational redesign and recruitment to meet care minute requirements Regis has a materially stronger balance sheet and will continue to focus on releasing capital from non-income producing assets to reinvest into higher returning core business opportunities This strong balance sheet, including significantly reduced net debt, supports Regis' active pursuit of material strategic acquisitions to broaden its residential aged care footprint regis and cane regi 19 - 21 - regis healthcare HER OP#23Questions Regis Gatton, Queensland regis healthcare#24Appendices Regis East Malvern, Victoria regis healthcare#25Regis Healthcare Limited | FY23 Full-Year Results Presentation Appendix A: Income Statement $ millions Revenue from Services Government revenue Resident revenue Other revenue Revenue from Services Other income1 Total Revenue Operating Expenses Staff expenses Resident care expenses Administration expenses Occupancy expenses² Total Operating Expenses Depreciation³ Amortisation4 Finance costs5 Loss Before Tax Income tax benefit Net Loss After Tax 1Other income includes imputed income on RADS and Bonds of $62.9 million (FY22: $62.4 million) in accordance with AASB 16 Leases 2Occupancy expenses excludes the cost of operating leases as a result of the adoption of AASB 16 Leases ³Depreciation includes $1.4 million (FY22: $1.0 million) relating to right-of-use assets in accordance with AASB 16 Leases 4Amortisation of operational places from 1 October 2021 to 30 June 2024 on a straight-line basis in accordance with Accounting Standards - refer page 28 5Finance costs include $62.9 million (FY22: $62.4 million) of imputed interest charge on RADS and Bonds and $0.3 million (FY22: $0.3 million) of interest expense on leases payable in accordance with AASB 16 Leases - 24- FY23 FY22 549.6 517.9 221.9 200.0 9.1 7.4 780.6 725.3 117.0 71.6 897.6 796.9 (591.2) (550.4) (57.6) (59.2) (65.2) (45.5) (23.9) (23.5) (737.9) (678.6) (45.1) (42.1) (81.4) (61.0) (73.6) (70.4) (40.4) (55.2) 11.9 16.4 (28.5) (38.8) regis healthcare#26Regis Healthcare Limited | FY23 Full-Year Results Presentation Appendix B: Statement of Financial Position $ millions Cash and cash equivalents Trade and other receivables Other current assets Income tax receivables Assets held for sale Total Current Assets Property, plant and equipment Right-of-use assets Operational places and goodwill Investment property Total Non-Current Assets Total Assets Bank overdraft FY23 FY22 61.3 4.1 40.0 17.9 7.7 11.5 7.2 2.9 111.9 40.7 1,110.2 1,109.2 3.5 4.3 321.3 402.7 116.6 163.1 1,551.6 1,679.3 1,663.5 1,720.0 11.4 Trade payables and other liabilities 56.6 62.1 Lease liabilities Provisions 0.8 1.1 124.5 111.1 Other financial liabilities 1,350.7 1,312.3 Liabilities directly associated with the assets held for sale 0.7 Total Current Liabilities 1,533.4 1,498.0 Interest-bearing loans and borrowings 67.3 95.7 Lease liabilities Provisions Deferred tax liabilities Total Non-Current Liabilities Total Liabilities Net Assets Issued capital Reserves Accumulated losses Total Equity 2.9 5.2 4.9 5.8 16.6 36.3 91.7 143.0 1,625.1 1,641.0 38.4 79.0 273.8 273.6 (96.3) (97.0) (139.1) (97.6) 38.4 79.0 - 25- regis healthcare#27Regis Healthcare Limited | FY23 Full-Year Results Presentation Appendix C: Cash Flow Statement $ millions Cash Flows from Operating Activities FY23 FY22 Receipts from customers and Government subsidies 789.6 713.6 Payments to suppliers and employees (718.1) (671.2) Operational Cash Flows Before Interest, Income Tax, and RADs 71.5 42.4 Net finance costs paid (10.5) (7.8) Income tax paid (0.8) (10.0) Net Cash Flows from Operating Activities before RADS 60.2 24.6 RAD and accommodation bond cash inflows RAD and accommodation bond cash outflows Entry contribution inflows Entry contribution outflows Net Cash Flows from Operating Activities Cash Flows from Investing Activities Purchase of property, plant and equipment Capital expenditure in relation to investment property Proceeds from sale of property, plant and equipment Net Cash Flows from/(used in) Investing Activities Cash Flows from Financing Activities Proceeds from /(repayments of) bank borrowings Dividends paid Payment of lease liabilities Net Cash Flows from/(used in) Financing Activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and Cash Equivalents at the End of the Period 443.0 (399.4) 7.6 408.4 (324.5) 12.4 (6.2) (6.1) 105.2 114.8 (51.4) (47.2) (2.1) (1.4) 60.0 6.5 (48.6) (28.9) (36.5) (13.0) (24.5) (1.2) (1.4) (43.1) (62.4) 68.6 3.8 (7.3) (11.0) 61.3 (7.2) - 26- regis healthcare#28Regis Healthcare Limited | FY23 Full-Year Results Presentation Appendix D: Non-IFRS Reconciliation $ millions Loss Before Tax Depreciation Amortisation¹ Net finance costs² Reported EBITDA (post-AASB 16) Add/(deduct) one-off items: COVID-19 and other Government grants COVID-19 outbreak related expenses Gain on disposal of non-current assets FY23 FY22 (40.4) (55.2) 45.1 42.1 81.4 61.0 72.9 70.4 159.0 118.3 (32.5) 16.5 (3.2) 27.7 (11.7) Fair value gain on investment property (7.2) (5.9) Increase in employee entitlements (Fair Work Commission decision)³ 7.3 Write-off of capital work in progress and other write-downs4 12.8 2.9 Professional services costs incurred in relation to potential employee underpayments program 3.1 2.2 Other net losses5 0.1 Underlying EBITDA (post-AASB 16) excluding one-off/non-recurring items 147.4 142.0 RAD/Bond imputed income (AASB 16 impact) (62.9) (62.4) Operating lease expense (AASB 16 impact) (1.2) (1.5) Underlying EBITDA6 (pre-AASB 16) excluding one-off/non-recurring items 83.3 78.1 1Amortisation of operational places on a straight-line basis in accordance with Accounting Standards. Refer page 28 2FY23 net finance costs comprises $73.6 million of finance costs, partially offset by $0.7 million of finance income. No finance income was generated in FY22 ³Represents increase to employee entitlements expense as at 30 June 2023 required to reflect the Fair Work Commission's decision to increase modern award wage rates by 15% from 30 June 2023 4Write-off of capital work in progress and other write-downs include (1) write-off of $11.5 million of costs incurred for development activities in prior periods on projects that are not expected to continue in line with Regis' strategic objectives and (2) write-down of $1.3 million to reduce the carrying amount of the operating investment properties to their fair value less costs to sell 5Other net losses includes $1.3 million incurred for regulatory penalties (including external advisors and additional costs) relating to the Sanction and Notice to Agree (NTA) applied to Port Coogee on 11 August 2022 by the Aged Care Quality and Safety Commission (ACQSC) and $0.8 million incurred in relation to other one-off items, offset by $2.0 million recognised as gain on lease modification due to the early termination of Regis' head office lease in Armadale, Victoria, which resulted in the re-measurement of the existing lease asset and liability as at 30 June 2023 6Refer page 29 for definition of Underlying EBITDA regis healthcare - 27-#29Regis Healthcare Limited | FY23 Full-Year Results Presentation Appendix E: Deregulation of Operational Places As a result of the Australian Government's decision to discontinue operational places from 1 July 2024, and in accordance with Accounting Standards and the guidelines issued by the Australian Securities and Investments Commission ("ASIC"), Regis has reassessed and commenced amortising the value of operational places from 1 October 2021 on a straight-line basis over their remaining economic life to 30 June 2024. This has resulted in a before tax amortisation expense in the profit and loss for the full-year ended 30 June 2023 of $81.4 million with no impact to the cash flows of the Group Consolidated Statement of Profit or Loss - For the year ended 30 June 2023 $ millions Amortisation of operational places Reversal of related deferred tax liability Impact on Profit/(Loss) after tax for the Period FY23 (81.4) FY22 (61.0) 24.4 18.3 (57.0) (42.7) - 28 - regis healthcare#30Regis Healthcare Limited | FY23 Full-Year Results Presentation Appendix F: Definitions of Non-IFRS Financial Measures FY22 means full-year ended 30 June 2022 FY23 means full-year ended 30 June 2023 Capital expenditure represents payments for property, plant and equipment Reported EBITDA refers to earnings before interest, tax, depreciation and amortisation Underlying EBITDA refers to earnings before interest, tax, depreciation and amortisation, excluding imputed income on RADs and Bonds, COVID-19 outbreak expenses and other one-off items, and including operating lease expense Net Debt is calculated as interest-bearing liabilities, less cash and cash equivalents NPATA refers to NPAT before amortisation of operational places NPAT refers to net profit after income tax ROI refers to return on investment PPE refers to personal protective equipment PP&E refers to property, plant & equipment ACFI means Aged Care Funding Instrument AN-ACC means Australian National Aged Care Classification COPE means Commonwealth Own-Purpose Expense PCP means prior corresponding period Operational Places RAD means a residential aged care place that is allocated to an Approved Provider under the Aged Care Act 1997 and is available for a person to receive care, and attracts Government funding means a refundable accommodation deposit, being an amount of money that does not accrue daily and is paid or payable to an Approved Provider by a resident for the resident's accommodation in an aged care facility. A RAD is repayable when the care recipient discharges; the care recipient ceases to be provided with care by the Approved Provider; or the service ceases to be certified means a daily accommodation payment, being a rental-style, non-refundable daily payment to pay for accommodation. DAP The DAP is calculated based on the refundable deposit multiplied by the maximum permissible interest rate and divided by 365 days MPIR means the maximum permissible interest rate calculated in accordance with Section 6 of the Fees and Payments Principles 2014 (No. 2) (Aged Care Act) DHAC Department of Health and Aged Care - 29 - regis healthcare#31Regis Healthcare Limited | FY23 Full-Year Results Presentation Important Information and Disclaimer This Presentation contains summary information about the current activities of Regis Healthcare Limited and its controlled entities (Regis Healthcare or the Group). It should be read in conjunction with the Group's other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), including the full-year Consolidated Financial Report and associated Media Release released today, which are available at www.asx.com.au. No member of Regis Healthcare gives any warranties in relation to the statements or information contained in this Presentation. The information contained in this Presentation is of a general nature and has been prepared by the Group in good faith and with due care but no representation or warranty, express or implied, is provided in relation to the accuracy or completeness of the information. No responsibility or liability is accepted for any errors, misstatements or omissions. To the extent permitted by law, neither Regis Healthcare nor the Group, nor their Directors, employees or agents or any other person accepts any liability arising from its or their fault or negligence, for any direct, indirect or consequential loss arising from use of this information pack or its contents or otherwise in connection with it. This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or offering document under Australian or any other law. This Presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither this Presentation nor anything contained in it shall form the basis of any contract or commitment. This Presentation is not a recommendation to acquire Regis Healthcare shares. The information provided in this Presentation is not financial product advice and has been prepared without taking into account any recipient's investment objectives, financial circumstances or particular needs, and should not be considered to be comprehensive or to comprise all the information which a recipient may require in order to make an investment decision regarding Regis Healthcare shares. Recipients should seek their own independent financial advice. Neither Regis Healthcare nor any other person warrants or guarantees the future performance of Regis Healthcare shares nor any return on any investment made in Regis Healthcare shares. This Presentation may contain certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, financial position and performance are also forward-looking statements. Any forecasts or other forward-looking statements contained in this Presentation are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. Such factors and uncertainties may include, without limitation, changes in regulation and regulatory activity, sector reforms including funding and care minutes reforms, staffing availability and costs and potential for further COVID-19 and similar outbreaks. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group and they may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. You are cautioned not to place undue reliance on forward-looking statements. Except as required by law or regulation (including the ASX Listing Rules), Regis Healthcare undertakes no obligation to update these forward-looking statements. Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. All dollar values are in Australian dollars (A$) unless otherwise stated. Non-IFRS Financial Information This presentation uses Non-IFRS financial information including capital expenditure, reported EBITDA, underlying EBITDA, NPATA, operating cash flow and net debt. These terms are Non-IFRS measures used by the Group, the investment community and Regis Healthcare's Australian peers with similar business portfolios. Regis Healthcare uses these measures for its internal management reporting as it better reflects what Regis Healthcare considers to be the underlying performance of the Group. - 30 - regis healthcare