Introducing Care UK Andrew Knight Services...Introducing Care UK . Andrew Knight. CEO, Residential Care. Services. Introducing Care UK. Nationwide reach via 119 homes and 8,000 beds

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