Radius Residential Care Limited (RAD) Earnings Call Transcript

Okay. Well, welcome, everyone. A couple of quick shout-outs. Who saw Ma'a Nonu do the haka this morning? Was that good or what? And the other one is these 2 gentlemen here who come from Hamilton. So thank you for making the effort. So my name is Brien Cree. I'm the Executive Chair and Founder of Radius Residential Care Limited, and I'm pleased to welcome you all to our sixth Annual Shareholder Meeting. Before we move into the formal business of today's meeting, I would like to thank you, all the shareholders for your continued support of Radius Care. We appreciate the trust you place in the company and your ongoing interest in our progress. Today's meeting is being held both in person and at the office here of MUFG Pension and Market Services here in Auckland, and online through the meeting platform. I will provide you with further instructions as we progress through the meeting. But if you encounter any issues, please refer to the virtual meeting online portal guide or you can phone the help line on 0800-200-220. Before we begin, I will cover a few housekeeping matters. Firstly, for those of you here in person, can you please put your phones on silent, which actually reminds me. That would be an own goal, wouldn't it? Toilets are located to the right. You just go out the door here and to the right and then turn. If a fire alarm goes off, please follow directions from MUFG staff, and they will guide you safely to the designated evacuation area and provide further instructions as required. For those attending online, the meeting can be followed through the online platform. Please refer to the online meeting instructions provided with the meeting material. If you have a question during the meeting, please submit it through the online platform. Questions will be addressed when we pause throughout the meeting. As today's Annual Shareholder Meeting is focused on formal business, questions during this part of the meeting should relate to the resolutions before shareholders. Broader questions about Radius Care and the business should be held over for the investor session, which will follow this meeting, where there will be an opportunity for both shareholders and non-shareholders to ask general questions. When asking a question in the room, please use the microphone and introduce yourself by name. I'm pleased to confirm that we have a quorum, including shareholders attending in person, online and by proxy. I now declare the 2026 Annual Meeting of Shareholders open. I would now like to introduce my fellow directors who are in attendance here today, all the directors up here. Tom Wilson, we've got myself, we've got Brett, Hamish and Mary. Duncan, I didn't see Duncan. Sorry, Duncan. I'm thinking, yes, there's 6 of us. Where is the one? I would also like to welcome our legal advisers, Chapman Tripp; our auditors, Baker Tilly Staples Rodway; and our registrar, MUFG Pension and Market Services. And I'd also like to acknowledge members of our senior leadership team who are also here today. This year's meeting follows a revised format. The formal annual meeting will focus on the business set out in the Notice of Meeting. This includes considering and voting on the resolutions and considering any other matters that may properly be brought before the meeting. We have adopted this revised structure so that the formal shareholder business can be dealt with clearly and efficiently while also allowing time for a broader discussion about Radius Care, its performance, growth initiatives and future direction. Following the Annual Shareholder Meeting, we will present a separate investor session. Morning tea will be available before the investor session begins, and we encourage you to stay with us, whether you are joining in person or online. Members of our senior leadership team will provide further commentary and updates on Radius Care, including new business, the company's future strategy and direction. There will also be an opportunity for attendees to ask broader questions about the business. Attendance at the investor session is open to all interested parties and is not limited to shareholders. As those investor updates will be covered separately, I will not address them during the formal annual meeting. The order of proceedings today is, first, I will outline the resolutions before shareholders. We will then move through each resolution in turn. Shareholders will have an opportunity to ask questions on each resolution. Voting will be completed by poll, and we will then deal with any other business that may properly be brought before the meeting. The resolutions before shareholders today are ordinary resolutions. Each resolution must be passed by a simple majority of votes of shareholders entitled to vote and voting on the resolution, whether in person, online or by proxy. The Board unanimously supports the resolutions before the meeting and recommends that shareholders vote in favor of resolutions 1, 2, 3 and 4. My fellow directors and I intend to vote all the discretionary proxies received in favor received -- sorry, in favor of the resolutions set out in the Notice of Meeting. For those attending online, voting will be conducted through the online platform. If you are eligible to vote, please follow the voting instructions on your screen. For those in the room, voting papers will be collected at the appropriate time from representatives of MUFG Pension and Market Services, who will act as scrutineers. I will now move to the resolutions set out in the Notice of Meeting. I will take the text of each resolution as read. Resolution 1 relates to the remuneration of auditors. Radius Care's current auditor, Baker Tilly Staples Rodway is automatically reappointed as auditor at the annual meeting under Section 207T of the Companies Act 1993. This resolution authorizes the directors to fix the remuneration of Baker Tilly Staples Rodway as auditor for the coming financial year under Section 207S of the Companies Act 1993. As is usual with audit fees, the exact amount cannot be fixed at this point, so shareholders are asked to give the Board authority to fix the auditor's remuneration. I now move as an ordinary resolution that the directors are authorized to fix the remuneration of Baker Tilly Staples Rodway as auditor of Radius Care for the ensuing financial year. Are there any questions about Resolution 1? Thank you. Please now select either for, against or abstain for Resolution 1 on your screen or your voting paper. The next part of the meeting relates to the reelection of 3 directors. That's Resolution 2, 3 and 4. Resolution 2 relates to the reelection of Mary Gardiner as a Director. Under the NZX listing rules, a director must not hold office without reelection past the third annual meeting following the director's appointment or 3 years, whichever is longer. Mary is therefore required to retire at this meeting and then being eligible, offers herself for reelection. A brief biography of Mary was included in the Notice of Meeting. Mary was appointed as a Director in December 2020 and is a member of the Audit and Risk Committee. She brings strong finance, audit and risk experience developed through senior executive and governance roles across financial services, health care, aviation and sport. The Board has considered Mary's current appointments, prior roles and all other relevant matters and considers her to be an independent under the NZX listing rules and the NZX Corporate Governance Code. The Board is satisfied that she has no relationships or interests that would affect her independent judgment. The Board unanimously supports Mary's reelection and recommends that shareholders vote in favor of Resolution 2. I now invite Mary to address the meeting on her proposed reelection.

Thanks, Brien. Good morning, everyone, here and online. As Brien said, it was my privilege to join the Board of Radius Care on listing in December 2020 and to serve shareholders as an independent director. I hold 5 independent director roles, including 4 as Audit and Risk Committee Chair. These roles are within finance, life and general insurance and engineering, all highly regulated sectors similar to Radius Care, along, for better or worse, with a role in sports governance. We are a small Board with diverse experience, skills, knowledge and perspectives where robust debate and alternative views are respectfully and openly shared as we seek to challenge and support the team to carry out strategy. I think I bring an open mind, a willingness to collaborate and listen along with courage to respectfully voice a contrary view with the aim of contributing to good decision-making. The mix of skills on the Board means we learn from each other, which is certainly an aspect of being part of this team that I particularly enjoy. Radius Care has a strong sense of purpose and a clear strategy. We all take seriously our responsibility to invest shareholders' capital for growth and a reasonable return and to provide our residents with excellent care in a comfortable environment. I, along with my colleagues, visit facilities, and I acknowledge and respect the dedication, skill and hard work of our staff team across all roles in our business. I'm really proud of Radius Care and what has been accomplished, in particular, the critical focus we place on care, along with growth, innovation and diversification and the positive financial outcomes, including good dividends, evident particularly over the last 3 years. We have an exciting, considered and ambitious plans to continue to expand the group and to contribute to health care in New Zealand. With your support, I look forward to continuing to contribute to Radius Care as part of a strong Board team. Thank you.

Thank you, Mary. I now move as an ordinary resolution that Mary Gardiner, who in accordance with NZX listing rules retires and is seeking reelection, be reelected as a Director of Radius Care. Are there any questions regarding Resolution 2? Online? No. Good. Please now select either for, against or abstain for Resolution 2 on your screen or on your voting paper. We will now move to Resolution 3. Resolution 3 relates to the reelection of Hamish Stevens as a director. Hamish is also required to retire at this meeting and being eligible, offers himself for reelection. A brief biography of Hamish was included in the Notice of Meeting. Hamish was also appointed as a director in December 2020 and is Chair of the Audit and Risk Committee. He brings extensive governance and financial leadership experience with a background spanning senior finance roles and Board appointments across a range of New Zealand organizations. The Board has considered Hamish's current appointments, prior roles and all other relevant matters and considers him to be independent under the NZX Listing Rules and NZX Corporate Governance Code. The Board is satisfied that he has no relationships or interest that would affect his independent judgment. The Board unanimously supports Hamish's reelection and recommends that shareholders vote in favor of Resolution 3. I now invite Hamish to address the meeting on his proposed reelection.

Thank you, Brien. I'm delighted to be nominated for a further term as a Director of Radius Care. I have served as an independent Director of Radius over the past 6 years, and I chair the company's Audit and Risk Committee. I've been an independent director on several companies over the past 15 years in both private and public enterprises as well as government and local body-owned organizations. Other listed companies currently on the Board include Napier Port and Embark Education. I'm a chartered fellow of the Institute of Directors, and I am a fully qualified chartered accountant. I've really been honored to serve as a Director of Radius over the past 6 years. This is an organization that needs to perform and care every day for every resident. And it has been particularly rewarding to be part of an organization with such strong values, strong care values, a great team of exceptional people and a true company commitment to care and our financial results are strong. I know the Board will continue to ensure our facilities and people have the support and resources they need so they can offer the highest level of care possible to our residents. And recent years have been exciting -- an exciting and busy time for Radius. We have a management team that keeps this Board very busy, and that's exactly the way it should be, bring lots of opportunities, exciting opportunities for growth. And we continue to deliver on our growth strategy, and we have an exciting list of growth opportunities ahead of us. The Board will continue to pursue growth opportunities in the sector where these add incrementally to shareholder value with a strong focus on successful execution, operational effectiveness and efficient resource use. I believe Radius is well placed to continue its growth path and to achieve long-term sustainable presence in the aged care sector, including the wider health and care areas. So we have an exciting future. And I, with your support, very much look forward to playing a part in the future success of Radius. Thank you.

Thank you, Hamish. I now move as an ordinary resolution that Hamish Stevens, who in accordance with the NZX listing rules, retires and is seeking reelection, be reelected as a Director of Radius Care. Are there any questions on Resolution 3?

My name is [ Haily Chen ]. I have been a shareholder in this company for 6 years. It's good that they are all very friendly staff. Yes. By the way, Hamish, because I'm also a shareholder of Napier Port and also Embark Education. And I wish that, if you are very busy, I wish that you still spend a few minutes because I have some questions from you. Will that be all right?

I'm sure it will be. This is the Radius AGM right now. Absolutely. All right. Thank you.

I bet Hamish didn't see that coming. Thank you. Any other questions? Nothing online. Okay. Where am I at? Please now select either for, against or abstain for Resolution 3 on your screen or on your voting paper. We will now move to Resolution 4. Resolution 4 relates to reelection of Tom Wilson as a Director. Tom Wilson is also required to retire at this meeting and being eligible, offers himself for reelection. A brief biography of Tom was included in the Notice of Meeting. Tom was elected as a director in August of 2023 and is a member of the Remuneration and People Committee. He brings governance, commercial and financial experience with a background in aged care, listed company leadership and professional services. The Board has considered Tom's current appointments, prior roles and all other relevant matters and considers him to be independent under the NZX listing rules and the NZX Corporate Governance Code. The Board is satisfied that he has no relationships or interests that would affect his independent judgment. The Board unanimously supports Tom's reelection and recommends that shareholders vote in favor of Resolution 4. I now invite Tom to address the meeting on his proposed reelection.

Thank you, Mr. Chairman. To the Radius owners, I stood here 3 years ago. I promised to focus on setting strategy and more importantly, strategy execution, risk management, CEO and executive team management and execution and executing on increasing shareholder value and returns. To achieve this, my governance views are founded on probably a couple of business principles, trust and loyalty and don't tell me why you can't do it, tell me how you can do it. The last 3 years has seen a radius journey that has been both challenging and rewarding. Early on, the business went through a reset stage to position the business to best-in-class in the sector that we operate in. As you have seen and we'll hear about in the investor presentation later on, Radius is now proving they are best-in-class. Your ownership value and return to your investment have increased with a projectile that, that should continue. I'm not sure I'm about to say that, but I am. The lawyers are looking at me. A business that sits still will go stale. It could possibly fail. Radius are proving to be innovative in the sector that they operate. New hospitals operated the Radius way, you've heard that expression before, integrated in-house and life care service offerings that are expanding rapidly. I'm excited to be part of this journey and working with exceptional executive management and Brien to make it all happen. The outcome for owners, increase your ownership value, increase your return on investment, pretty simple. I remain absolutely passionate about the Radius business, its future and its executive and the competency of my fellow directors and would dearly like to represent the owners over the next 3 years. Thank you.

Thank you, Tom. I now move as an ordinary resolution that Tom Wilson, who, in accordance with the NZX listing rules, retires and is seeking reelection, be reelected as a Director of Radius Care. Are there any questions on Resolution 4? Thank you. Please now select either for, against or abstain for Resolution 4 on your screen or on your voting paper. I will now shortly close the voting system. So please ensure that you have cast your vote on all 4 resolutions. The latest time for receipt of proxy appointments was 10:30 a.m. on Monday, 10th of August 2026. The results of today's meeting will be released to the NZX following completion of verification of voting. The Notice of Meeting provides for any other business that may properly be brought before the annual meeting. While the final voting process is completed, I am happy to take any further questions from shareholders on the financial statements or management of the company first for those attending online and then from the room. Rohan, any questions online?

We have 2 questions online. So first question is from David Loveridge and is directed to the Chair. Why is it not compulsory for every director to have a shareholding purchased on market? We shareholders have skin in the game and so should all directors as otherwise no real commitment.

Okay. So there are 2 schools of thought around directors owning shares. One is that it's the spin in the game. So therefore, you have a vested interest in the company. The other is that by not owning shares in the company, you are fully independent. And I think it's pretty subjective as to which one is correct. I think it's a personal choice. In this particular case, we have -- most of the directors do hold shares. One director has chosen not to hold shares to remain entirely independent.

Second question is from NZSA or the New Zealand Shareholders' Association. The company has made a political donation of $5,000. They made a similar donation last year. Can you explain this donation and point out NZSA believes companies should not make donations if these should be a matter for individual shareholders.

Fair enough. Yes, we have tended to support different political parties over the years. I personally support political parties in a personal capacity occasionally. In those 2 particular instances, they were dinners at which political parties invited us to attend. So it is a fair point. And I'd have to say, currently, with the environment that we are in, it's difficult to know who to support. And I think as a general trend, in the past, we have had labor has been more of a supporter of aged care, perhaps than national. I'm not sure that that's necessarily the case going forward with the fiscal position of the country. So it is probably fair to say that we now no longer in a position of knowing exactly which party would support aged care the most. But as a large organization involved in aged care and as government being our major sponsor, we do try and stay close to all ministers.

No more online questions.

Any questions from the room? Bearing in mind, there's plenty of time to ask questions during our investor presentation, which will follow. Thank you. So the registrar, MUFG Pension and Market Services will now move through the room to collect your voting cards. For those shareholders online, you can now submit your vote if you haven't done so already. Voting will be open until 5 minutes after the conclusion of the meeting. Ladies and gentlemen, that brings us to the end of the formal business for the 2026 Annual Meeting and Shareholders for Radius Residential Care Limited. I now declare the annual meeting closed. As noted earlier, we will now move to a separate investor session. I encourage everyone joining us today, both in person and online, to stay with us for this session. It is open to shareholders and non-shareholders and will provide an opportunity to hear more about the business, receive broader updates from the senior leadership team and ask general questions beyond the formal business of today's meeting. If you are joining us online, it is important that you remain logged in, and that's logged into the link that you are now logged into and wait for the session to begin at 11. Morning tea is now available, and we will resume at 11, but I just note that 11 is not far away. So given the number of people in the room, perhaps if you don't mind, we might just take a 2- or 3-minute break, and then we will reconvene so that the people online aren't kept waiting. Sounds good? Okay. Thanks, everyone. We'll be back in 3 minutes. [Break]

Okay. Thank you, everyone. I'd just like to apologize to the people online for being a little bit late. Given the new format, I think we can improve on the timings next time. We'll just let the last few people come back into the room, and then we will kick off with the investor presentation. All good.

Thank you, Brien. Can everybody in the room hear me? I see a few nods at the back. Yes, my name is Andrew, and I've had the privilege of being the Radius Care CEO for 4.5, just over 4.5 years now. And just recently survived/thrived my fifth ASM at Radius Care. So it's a pleasure to now be presenting the investor session, which is the first time we presented separately from the ASM. And I joke with our directors halfway through after the ASM that they did such a good job of painting a picture of the direction of travel of the company. They have made our job a lot easier. So thank you to your 3 for your kind words and congratulations on the 3 reelections. So today, I have, as you can see, Brien and Jeremy with me. We will go through some slides around the company's current performance. around our future growth trajectory and around the concept of Radius services, the wider care that we provide in addition to the care that we provided our care homes. And we will finish up with a growth and outlook statement for the final 2 slides. All materials have been posted on the NZX this morning. Thanks, Brien. Booming. All materials are on the NZX, and so we will be talking to the slides that have been posted along with the NZX material this morning. So moving to the first slide on Page 4. About Radius Care, there should be no new information here. But just to clarify Radius Care, we are a care operation. We are not a retirement village company that is dependent on property market fluctuations. We are a care business, and we have roughly 2,000 care beds with which our 2,000 people deliver exceptional care to our residents each and every day. As our directors said, we are -- we run profitably. Our current EBITDAR per bed for FY '26 was $31,000, which is industry-leading and increasing year-on-year. We are built on care, and we will continue to be built on care in the years ahead with services provided in a wider manner that we will talk through in later slides. Our executive team, please hands up members of the executive team that are here today. There's a few nice pictures here and in the crowd. Thanks, guys. Pleasure. These are the guys that do all the hard work. I'd like to especially welcome Sarah. He can keep your hand up, if you like, Sarah, is our new GM Care operations. Any tough questions, please direct them to Sarah because she's on day 3 of the company at the moment. So welcome, Sarah. It's really nice to have you here. And Sarah has been tasked with the great task of continuing to optimize our care business and work on everything we've talked about and we'll talk about today. So Radius Care at a glance -- you probably know we have 25 care homes. Our northern most care home, you can see at the top there, is in Haruru Falls just out of Paihia and our southern most care home is Clare House in Invercargill. We provide high acuity care across all of those 25 care homes. And we have our newest care home, smack bang in the middle in Wellington in Karori, in Messines Road in Karori, which we acquired in May this year. The next slide is interesting. And again, you may have seen this in our presentations in the past. It just shows on the right-hand side of the graph, interestingly clause 2.1.1. I'm not sure whether that's been cut from. But effectively, in a small number of years, 6 years, there'll be 12,000 beds short in New Zealand in the aged care industry. So just to repeat, 12,000 beds short by 2032. And that number, as you can see on the right-hand side of the graph up there, increases by 2040 to 40,000 beds. So just to provide context, we, as a country at the current rate of build or lack of build will be 40,000 beds short in 14 years' time. So we see that as presenting an opportunity. And later in the presentation, we'll talk to that opportunity, but it's worth pondering that. And when you see occupancy increasing, that is because there is fundamentally more people needing care then soon we'll be able to provide that care. And on that demand, we at Radius Care, it was really nice to hear the 3 directors talk about exceptional people, exceptional care. Does anybody apart from the executive team know what exceptional people, exceptional care slogan is. And it's not EPIC? Anybody? Hopefully, you've been listening, it's EPEC, which is exceptional people, exceptional care. And our exceptional people have stayed at Radius Care longer. 2 years ago, our turnover, if you see the left-hand side there, our turnover was 35%. It's now 18%. We're proud of that. We're also proud of the internal promotions of our care home managers and our regional management team. and proud as well on the eNPS score, which was released a month or so ago of plus 30, which is a 50% improvement. So for those not of a mathematical bent, last year, it was plus 20%, and this year, it's plus 30. So again, some continuous improvement on that. The middle box is also very important, our 4-year certification. So just to clarify every -- at a period of time, all care homes are certified, are audited and you can obtain 1, 2, 3 or 4-year certifications. And across the country, all care homes have either -- so 1 to 4-year certification if they're operating. 19 of our care homes, as you can see on the slide, have 4-year certification or what we call the gold standard. And of the 6 that remain, 3 have pending results. So what does that mean? In the next few weeks, we are likely to receive a notification that those 3 will get 4-year certification, which will take us to 22 out of 25 of our care homes with that Gold Star certification. And I think it's worth pausing on that. Nobody else in the country has more than 70% of their care homes at 4-year certification. So in a matter of maybe a month, we should have, if my math stands corrected, and I'll look at Jeremy for this, approximately 88%. Is that right, Jeremy? 22x 4, yes, of our care homes with year certification, which will be great and provides a basis because our prospective customers look at that, they look at audit results and see year certification and understand that our care is exceptional as we talk about. And lastly, in that box, we talk about community connection. It's really important when people get to the stage they need care, they want to be connected with their communities and with their families, and we take that very seriously as well. I like the next slide. Although I am the CEO, I do like numbers. So you can see -- it was good, good laugh. You can see our key metrics since listing, if we start with the top left, reported profit before tax is up to $14.3 million, has increased significantly since FY '20. Underlying EBITDA steady increased to the FY '26 number as well. Underlying EBITDAR per bed on the bottom left, we talked about that earlier, is 31,000 and increasing year-on-year. And the number of care beds up until FY '26, you can see there on the bottom right. We currently have around 1,990 care beds because that's increased with Karori. So around just under 2,000. And out of those 2,000 beds, we have 67 empty beds at the moment. So just to reiterate, later, we'll talk about our occupancy of 96.7% as of today. So that's the highest occupancy we have had as a company and 67 vacant beds. So out of the 1,990 beds we have, 1,923 are currently occupied. So again, a new record for occupancy for Radius Care, which is great and down to our exceptional people and everything they do every day. So this slide appears twice in the presentation. I think it's a very useful slide because it breaks down our core or our overall EBITDA number by division, by care, by village and by health services. We will talk a lot about health services later in the presentation, spoiler alert. But on the right-hand side, if you look at the revenue for health services, just over $7 million. I talked earlier that we're not a retirement village company, and these numbers show why we're not a retirement village company. Our new health services being LUMA and the Radius shop, home support and CIS with -- and we'll talk about all those aspects later, are providing revenue or did provide revenue in FY '26 of nearly $7.5 million. So worth noting that, that is a growing part of our business and will continue to grow and more of that later. I think this is my last slide before I hand over to my boss. So what I think would summarize is we are uniquely positioned for growth. We are a care company that focuses on high acuity care at our 25 care homes and throughout the community. We have sector-leading both care metrics in our audit certification results. and profitability. And we have the capacity expansion that we're starting to build new builds and home services. So with the scene set, I now hand to Brien to my left to take you through the next slides.

Okay. So this slide is introducing the Radius Health brand. And you'll see in the top left that we have developed a logo and brand identity. And I'm just going to take you through a couple of slides as to why we are doing this. So what do we want to solve? The problem is the current infrastructure behind health care services for people as they age is fragmented. And there are 3 core issues. The first core issue is that people and families must navigate multiple entry points and transitions across care services. The second core issue is the operational knowledge and data can remain tracked within individual services. So each care service for the elderly is currently a bit siloed. And think of that as perhaps GPs, they have their own system and they maintain all their own information and then it moves across to people in home care, and that's a separate siloed sort of sector as well and then aged care is separate again. And the third core issue is this fragmentation creates friction and therefore, missed opportunities to improve outcomes and efficiency. So our response is Radius Health will be the growth platform for a connected health services group focused on aged care. It will bring complementary services and capabilities into one strategic platform, connecting clinical services across the group using frontline care experience to identify, develop and scale practical solutions and creating a disciplined platform for partnerships, acquisitions and growth. So the Radius Health platform today covers 7 integrated pathways. So I just want to be clear that it's not -- we're not talking about renaming the company. We're not talking about changing the company structure. What we are doing is implementing a brand which better covers the different things that we are now doing. So those 7 different pathways, Radius Care, first and foremost, that is the care business, 25 care homes, 5 retirement villages and Radius Care is the engine of Radius very clearly. And what we found was that we were starting to get a little bit confused about if Radius Care is the care part of the business, what is, for example, Cibus Catering, which is our catering business. Is that part of Radius Care? In which case is it diluting the Radius Care brand. So our solution was to come up with effectively an overview brand, which is Radius Health, it's got its own separate logo there, the circle thing called Rondale apparently. Rondale. Yes. And then effectively, that means that Radius Care, which is the brand that you normally see with what we refer to as the Hug, and it has the hug on it, and we'll continue to have that, and that will be the core focus of Radius Health. Then we also have home support. I'll just run through these 7, so you start to get a picture of why we're thinking that we need an overarching brand. So we've got Radius Care, which is the core business. We've got home support, and that's a tailored care experience within your own home to help you recover or manage an injury illness or disability, and that's at home. Then we have the Radius Shop, a nationwide online channel for mobility, daily living and continence products. and that's trusted by more than 20,000 New Zealanders at the moment. Then we have Luma, our proprietary continence product range developed and validated by Radius Care. Then we have Cibus Catering. And by the way, Luma has its own branding as well. So in the future, it will have this little wrong with Radius Health. It will just say Radius Health company as opposed to a Radius Care company. Cibus Catering, food services, menu planning and nutrition management, and then we have Connected Capabilities, which are product research and development. Luma is a good example of that. Sector leadership and advocacy. I get involved in that myself and service innovation. And then alongside that, we have the development and expansion pipeline, which has increased capacity for new build care homes, continued targeted acquisitions and villa construction. So this slide is really where we have landed in that Radius Health builds the system and the infrastructure. And then Radius Care delivers the care. So we keep the care brand very pure. I'll now pass you over to Jeremy just for the next slide, mainly because it's numbers, and that's Jeremy's thing.

Thank you, Brien. So for those of you who haven't been introduced to me, I'm Jeremy Edmonds, Chief Financial Officer, and I'm just on 3 years with Radius Care. So as Andrew mentioned, we've already covered this slide, but it was a great foundation for starting our conversation about our growth plans. And it really -- I just wanted to reiterate the foundation for growth that last year's financial results give us. Starting with care, it's our core earnings engine and most of our earnings. Villages, they're a much smaller but still meaningful contributor to earnings. And on the right-hand side, health services. And the important thing here is that already health services are delivering more than double the revenue that our village operation is. So that just really shows that we expect that care is our core earnings engine. We expect that to continue, and that provides some really beneficial operating leverage as we expand that with meaningful contributions from villages and a growing contribution from health services.

Thanks, Jeremy. So that leads us on to care expansion. And there's a bit going on in this slide. And I think it's important to remember what Andrew said that we've got 67 empty beds. So 67 empty beds across the whole of New Zealand is not a great position for us to be in. We need more capacity. And for the last 2 years, we have been very actively working on designing a new care facility that can be built cost effectively, and that will act as a blueprint for us to expand across the country in the coming years. So the new build care homes, we have 2 underway. We've got construction of the 100-bed Applefields care home in Belfast on land that we own, and that has commenced. And that picture on the right is actually with the red line, that is the care home site. You can see bulldozers running all over it and they're getting ready for the build season soon after winter. And to the left of that is actually represents about 1 hectare. So to the left of that, there's another 3 hectares that we own. The second one is the construction of the 80-bed care home in Hokitika, and that's in collaboration with Development West Coast, and that's expected to commence in early 2027. And in fact, yesterday, Laurie lodged the resource consent for that building. So that is progressing quite well. There's a bit of civil's work that's already started on that site. And that is a graphic of the site below the Christchurch one, so one with a little road in it, that's a graphic of that site. Acquisitions will continue. So Karori, we've already talked about. We seem to be averaging sort of 1 a year at the moment, which is okay. We are pretty picky about what we buy. So it does take a little bit of time to find these sites. And I think we'll continue to do that into the future, and they add significant value as we go along. And then if we come back to the left-hand side, we're actively progressing additional opportunities with private investors to construct new care hospitals of 80 to 100 beds throughout the country. And the bold statement is that we plan to build 20 new aged care hospitals over the next 10 years. So that will double the size of Radius Care. over the next 10 years. And initially, when you say that, it sounds like a lot. But actually, if you look at that table there, we already have 2 underway, and we have another 8 under discussion in various stages of negotiation. So in fact, having launched into this, it took us 2 years to design the building. And as you know, as shareholders, we've held that piece of land in Christchurch for 5 years. So we are slowly starting to get underway, and now we're getting momentum with the new builds. Moving on to the next slide, village expansion. So as Andrew said, we're not village developers per se, and we are trying to be very clear on that. We're a care company. We're a care services business. But what comes with aged care is high acuity villages. And so we're a bit different in terms of our villas that we build, they're a little bit different to perhaps other retirement village developers in that we are looking to provide effectively continuum of care for people who are in a higher acuity environment. So older people, probably realistically 85 plus. So we've got the incremental brownfield and greenfield opportunities, and we do that where it's considered that they add value to our care home. So we're always focused on care. residents are our primary focus. And if it does end up that there's an opportunity for some village that will support that care offering and continuum of care, then we don't mind doing that. But we will never be a large-scale retirement village developer. So the pictures here, the top left is one of the 14 units that we acquired at the time in May of Karori Village. And so they are being refurbished at the moment. I was actually there on Monday, and they've all been stripped out in the process of being refurbished and will be completed around the end of November, according to Mark, who's in the audience somewhere. panicking now that I've said it in public. And then we've got the -- below that is the 6 villas that we're building currently in Matamata, so they are due for completion quite soon, as you can see. It's actually progressed considerably more than that picture. And then if I just go down to the bottom right box, we've got opportunities to develop 50 and 80 sort of unit villas at a couple of the sites. So we've got that other 3 hectares in Christchurch and the Hokitika site, the council down there want us to build a village on that land. And so we have said yes, but it would be a pretty slow process, I would imagine, in Hokitika. It's just dependent on the need of the community and also the uptake. We don't want to start going off and building villas that sit around and aren't sold. And also a key takeaway on this slide is that we have introduced a 9-month buyback. So you probably heard in the media, there's a lot of discussion around buybacks and retirement village units that aren't sold. We have gone ahead and we've introduced a 9-month buyback. So if a unit is still for sale, then we will, as a company, purchase it back because I think that's the fair thing to do. I mean families sit around wanting the money, and it just doesn't seem morally right to have them sitting there empty when they rely on us to provide services and care. And again, it comes back to that focus on care. And the consequence of that is that we would have bought back over the last 3 years. So it's not really a huge financial commitment. It's more of a moral commitment to our residents. So with that, I will hand you back to Andrew.

Thank you, Brien. There will be an opportunity to ask questions at the end. If anybody thinks they'll forget their questions by the end, you can interrupt and ask questions on the way through. But I'm happy to take questions at the end with the panel here. So the next slide is our Luma product, which Brien has mentioned. We're very excited. I think Sam, who's sitting in the second row, very shy, Sam, came up with this idea a few years ago that we thought we could do better than existing providers of continence products and various kind of group think and strategy sessions has meant that we came up with the name Luma. And you will have seen as you came in this morning, hopefully, some products on the table there. What it's meant is we have our own product, our own Luma product that we provide to our 2,000 residents. And we can control the product specification. We control the sizing and it is done all in-house via an app, which our team has developed, which is very handy to use and again, focused on customer and getting the product right for the customer. An update in terms of the rollout, as you can see here, we do have 20,000 users via the Radius shop of all of our products. Luma will be available on the shop. But what we wanted to -- sorry, on the shop platform, but what we wanted to do first was make sure that we rolled it out to our 25 care homes to make sure that there were no issues with production and distribution of the products. We have done that. August is the last month of the nationwide rollout. So once August is over in a few weeks' time, we have a strategy to be able to sell Luma products to third parties. So watch the space for that. It's pretty exciting. And well done Sam and team on that. It's been a great journey so far. Home support, we've all talked a little bit about home support. Just to give a bit more color on the slide, as you can see, it's effectively providing support to people in their own homes or in retirement villages, be it radius care or other retirement villages. ACC funded. We got a maximized independence contract from the Accident Compensation Corporation in March last year. So that provides funding for ACC residents in their own home. We also have around 70 ACC residents in our care homes as well. So there's a nice mix with the ACC residents either in their home or in our care homes. And it also provides -- or our home support provision also allows for private clients to pay for support in their home where they don't want to move into a care home or to provide -- to have -- they want care in their own home. We're able to do that through our growing home support business. And as we both talked about earlier, the revenue from home support is growing by the month. See this, I love this slide. For those that don't know, actually show of hands, anybody knows what the slide on the right -- the food on the right-hand side is, apart from those that presented the slides. Did somebody say chicken? It is cherry chicken apparently with a bit of broccoli at the back. So nutrition is vital to our residents, both in terms of the presentation and the nutrition and the food excellence. It's important to our residents, and it's very important to our residents' families that we provide good food. So having Cibus catering as part of the Radius Care family, we own a majority interest in Cibus, and it's a really, really important part of our offering at our care homes. As you can see on the slide, there are 28 Cibus managed care home kitchens and another 49 sites using the Cibus menus. And this means that the meal selection and visibility of the food. So if a family member wants to know when their mom or dad is being -- what they're eating in a given day, might be fish and chips for Friday lunch, they can tell in advance. And we have TV monitors, which indicate the daily menus and the weekly menus so that people know what they're eating and have optionality around foods within the Cibus menus. So it's been really good. It's a couple of years now. Cibus team, we meet regularly and have Board meetings 6 times a year. And it's a vital part of our business and worth calling out, we're trying to grow the Cibus breadth across the country in terms of more care homes having Cibus kitchens and menus into the future. So cherry chicken, I'll say goodbye to. And next to talk about systems and technology. Sitting next to Sarah is a chap called [ Yaku ]. Hand up, please, Yaku. So I think we are reasonably far advanced on the curve of AI and that we have Yaku, who is an AI specialist in the business. So he is employed by us in support office and his full-time job is AI and automation. And that's really important because we don't kind of just sit around there thinking about risks and kind of wondering what to do about AI. We're doing things already. And with a sole focus as we set out on this slide to make sure that we are focusing on our residents and our staff at our care homes spend more time focusing on residents and less time on admin and computer-related tasks. So Yaku is a very busy guy and did a great job of getting in touch with our care homes at a nationwide tour to see what they wanted out of AI as opposed to what we could provide them. And that's making the daily lives of our HCAs, our health care assistants and workers a lot better in streamlining processes and as I said, spending more time with residents. I talked a bit about the in-house development of the Luma app and other automation processes, which are designed to simplify and save time both at our care homes and now at support office as well. Thanks, Yaku. And now over to Jeremy for a couple of slides on capital management before I finish off with an outlook statement and some growth statements from Jeremy. So to my left, Jeremy?