Introducing Care UK Andrew KnightCEO, Residential Care Services

Introducing Care UKNationwide reach via 119 homes and 8,000 beds

• Ideally positioned in a growing market with favourable long term dynamics

• A leader in quality, offering a full range of care types with a strong focus on nursing

• Continuing investment in market leading technology and business systems

• Strong revenue mix of private pay and inflation-adjusted long term contracts

• Proven development model - 40+ new homes since 2013 and a further 23 by end of 2022

• Strong financial growth profile (12% revenue CAGR since 2014) and high cash flow generation

Future new builds

Vintage builds

Core estate

Care home sector in growthUK market expected to reach £26bn by 2025

• ONS predicts 36% growth in over 85s 2015-25

• 1 million people living with dementia by 2030

• Rising property values and private pensions making an increasing number ineligible for government funded care

• Self-pay sector will continue strong historic growth in value (6.3% CAGR vs. 3.0% public)

• Rising complexity of needs is predicted to drive a 3.6% CAGR rise in nursing volume

• JLL research estimates a 70,000 bed shortage in the next eight years

• Challenges with quality of care home stock –less than half purpose built and an increasing number not fit for purpose

Investing in a premium customer experienceRegulators’ quality baselines are no longer enough

• Customers visit 2-3 shortlisted homes

• 62% have a journey into care of less than three months

• Form a rounded view of the service with online research – 75% visit our website before enquiring

• Increasingly high expectations on ‘quality’ driven by both the resident and relative perspectives

• Choice and control (through care, lifestyle and hospitality) are what define the premium experience

Investing in the self-pay opportunityProven development platform delivering a strong return

40 homes opened since 2013

• Premium homes seeking to address the capacity shortages in the private market

• 79% private revenue for homes opened in the last four years

• 90% of new homes have at least a good rating (including 14% outstanding)

Opening 23 homes by end of 2022

• Replicable blueprint for site selection, planning, build and commissioning

• Average new development expected to add £1.8m of mature EBITDARO

Creative approaches to public careOpportunities for mutually beneficial public partnerships

• Spending on long-term care was £46.4bn in 2016, of which £10.9bn was on long-term social care

• c7,000 beds deregistered in 2017/8, driving occupancy rates to an all time high of 89.4%

• More than 1500 beds under inflation-linked long term contracts

• Working with more than 250 local authorities and CCGs across the country

• Innovative approaches needed to support future demand – exemplified by our landmark development programme with Suffolk Council

• Green paper and funding reviews