Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — Macquarie Australia Conference 2018
26 slides from Oceania Healthcare's conference presentation, May 2018
Slide 1: Macquarie Australia Conference May 2018
Macquarie Australia Conference May 2018
Slide 2: Oceania is a care focused business
Oceania is a care focused business We are a large national operator of aged care and retirement villages with a portfolio of 51 sites and significant development pipeline Current and future portfolio composition Oceania’s site locations Care Care Beds Suites Units Total North Island 1,976 200 803 2,
Slide 3: Financial overview
Financial overview We exceeded the IPO Forecasts for FY2017 and are on track to meet our IPO Forecast for FY2018 with y.o.y growth of ~35% in Underlying EBITDA. Reported NPAT (NZD m’s) Underlying EBITDA (NZD m’s) 60 $53.1 70 $62.2 $48.7 60 50 $44.9 $47.0 $45.0 50 40 40 30 $29.5 $19.4 30 20 20 10 10
Slide 4: Our key business strengths
Our key business strengths Our strength is our care focus and this will continue to differentiate Oceania moving forward 1 Recognised leader in clinical care Key 2 Clear growth strategy in aged care differentiating factors Highly cashflow and value accretive brownfield development projects in 3 key
Slide 5: Our Care Strategy
23 Our Care Strategy SECTION 2 STRICTLY CONFIDENTIAL 4
Slide 6: Our aged care strategy
Our aged care strategy Optimising our existing portfolio of facilities and redeveloping brownfields sites through premium care suites Strong existing core aged care business with good returns enhanced by Development of premium care suites in 1 key urban locations on brownfields land and Upgrade and
Slide 7: Our aged care strategy – key benefits
Our aged care strategy – key benefits Aged care is a form of social infrastructure with demand underpinned by well understood demographic trends Aged care is a difficult business to replicate – there are significant barriers to entry Residential aged care facilities require MoH certification in
Slide 8: Recognised leader in clinical care
Recognised leader in clinical care We are an industry leader in the delivery of care to our residents – this focus differentiates us from our competitors Continuing industry recognition, building on previous year’s successes: ➢ Winner of the New Zealand Aged Care Association overall excellence in
Slide 9: New Zealand’s aged care industry
New Zealand’s aged care industry New Zealand has a shortage of quality aged care beds and a stable regulatory framework in which to deliver these Demand for aged care is set to more than double in the next 20 1 years There’s been a low level of care bed additions in the last 2 Context for our decade
Slide 10: 1. Aged care – attractive demographics
1. Aged care – attractive demographics Demand for aged care is set to more than double in the next 20 years Estimated population growth1 800,000 700,000 227,800 600,000 Population 500,000 Aged 85+ 489,800 400,000 Population 300,000 Aged 75 to 84 200,000 100,000 - 1995 2000 2005 2010 2015 2019 2024 2
Slide 11: 2. Aged care supply – not keeping up with population growth
2. Aged care supply – not keeping up with population growth In the last 12 years the number of facilities has reduced by 103 and only 3,155 beds have been added New Zealand aged care places vs 80+ population growth1 42 180 171 Low net build rate of care beds 170 ● Recent growth in the 80+ age group
Slide 12: 3. Aged care demand – outstripping supply
3. Aged care demand – outstripping supply Listed operators are only building approximately 800-900 beds per annum c.f the 1,500 beds required per annum Shortage looming in quality premium care beds and Annual build rates of aged care vs forecast demand1 hospital and dementia level care Serviced ● Th
Slide 13: 4. Stable regulatory framework in NZ
4. Stable regulatory framework in NZ While returns from traditionally-funded aged care beds are insufficient to incentivise new builds, the MoH has supported innovation in the sector - specifically the introduction of private charging ● NZ funding model has historically not reflected the capital cos
Slide 14: Executing our growth strategy in care
Executing our growth strategy in care After executing our pipeline at least 50% of our beds will be Care Suites or Premium (“PAC”) beds Our core portfolio of metropolitan and regional locations will meet the needs of both MoH subsidised residents requiring hospital care (akin to concessional beds
Slide 15: Our Development Strategy
3 Our Development Strategy SECTION 3 STRICTLY CONFIDENTIAL 14
Slide 16: Development strategy
Development strategy We have increased our development pipeline by 34%1 since our IPO in May 2017 and consented key development sites Strategy We will maintain our overall portfolio focus on aged care Status of Development Pipeline Current pipeline is 2,123 (after delivering 127 units and bed du
Slide 17: Track record of developments executed
Track record of developments executed We have delivered, and are currently constructing, a combined total of 810 care suites and units. We have a highly CY2011 experienced development - CY2014 CY2015 team CY2016 CY2018 with a track record of delivering projects on time and budget Our philosophy
Slide 18: Clear development pipeline
Clear development pipeline We have a pipeline of 2,123 units and care suites. Of this, 1,246 units and care suites are either under construction or consented. Key current and near term developments are outlined below. Gross Facility Location Status Nov 17 May 18 Nov 18 May 19 Future Residences Meado
Slide 19: Meadowbank stage 3 delivered
Meadowbank stage 3 delivered The 62 apartments and 30 Care Suites were delivered on time and on budget Stage 3 complete ● 30 care suites and studios and 62 apartments ● 35 Apartments are settled or under application This is ahead of our IPO Forecast of 28 apartments ● 9 Care Suites are settled or un
Slide 20: The Sands progressing on programme
The Sands progressing on programme Construction of The Sands is advancing on schedule with strong levels of presales interest The Sands in Browns Bay, Auckland will provide 64 apartments and 44 care suites ● Due for completion mid CY2019 ● Strong in-bound inquiry from potential purchasers 19
Slide 21: Premium site acquired in St. Heliers, Auckland
Premium site acquired in St. Heliers, Auckland We have acquired a greenfield site in the desirable suburb of St. Heliers in Auckland. Greenfield site in the suburb of St Heliers ● 8,945m2 with extensive harbour views acquired ● Premium boutique aged care facility and retirement village planned WAIMA
Slide 22: Summary of Oceania’s investment proposition
Summary of Oceania’s investment proposition Our business model supports a combination of dividend yield backed by strong operating cashflows and predictable long term growth from our development pipeline Aged care Stable revenue from “needs-based” …with growth through premium care service which unde
Slide 23: Questions
Questions 22
Slide 24: Development pipeline
Development pipeline Our development pipeline as at May 2018. Location Status Total Net Total Gross Current Developments Meadowbank Stage 4 Auckland Construction 83 83 Melrose Stage 1 Tauranga Construction 81 81 Trevellyn Stage 1 Hamilton Construction 87 90 The Sands Auckland Construction 108 108 Su
Slide 25: Glossary
Glossary Care Suite: A room or studio certified for the provision of care by the Ministry of Health which has been licensed under an ORA DMF: Deferred management fees, charged under an ORA, which accrue monthly to a specified maximum and are deducted from the refund paid to the departing residen
Slide 26: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared solely by Oceania Healthcare Limited ("Oceania"). You must read this disclaimer before making any use of this presentation and the accompanying material or any information contained in it ("Document"). The presentation includes non-
Oceania Healthcare — Macquarie Australia Conference 2018 on 6ix