Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — FY2023 Earnings Presentation
33 slides from Oceania Healthcare's earnings presentation, May 1, 2023
Slide 1: Oceania – Believe in Better
@ OCEANIA ae, Believe. ia f in better. P
Slide 2: Brent Pattison
ny OCEANIA Brent Pattison
Slide 3: FY2023 highlights
FY2023 highlights H+) OCEANIA We delivered 5% growth in Underlying EBITDA in FY2023 underpinned by our ability to generate premium revenues in care. A) 5% growth in Underlying EBITDA, increasing to $80.0m In FY¥2023, up from $76.2m in FY2022! Village DMF (B) 18% growth in villa and apartment DMF, in
Slide 4: Oceania's Strategic Pillars
Oceania’s Strategic Pillars Our purpose is to reimagine the retirement and aged care living experiencein New Zealand, and we are constantly challenging ourselves to deliver better. To design, develop, build and sell perfect properties for our customers of the Curation of built form To be the leader
Slide 5: Oceania's Strategic Pillars
Oceania’s Strategic Pillars Our purpose is to reimagine the retirement and aged care living experiencein New Zealand, and we are constantly challenging ourselves to deliver better. To design, develop, build and sell perfect properties for our customers of the future. care centres in New Zealand. Cul
Slide 6: Developments completed in FY2023
Developments completed in FY2023 G@ oceania 62 apartments, 167 care suites and + villas completed in FY2023 at five strategic sites. Though disruptions in the construction industry linger and were sharpened by the weather events in Auckland/ Hawkes Bay, we have delivered strong volumes of high-quali
Slide 7: Developments under construction
Developments under construction to FY2024, we are set up for a strong next period of delivery. uurrent pip ented by additional deve Waterford @® 50 Stage 1, \e Units Auckland a Elmwood, Auckland Scheduled in FY2024 106 Care Suites Commenced in June 2022. facie remaining The Helier, Auckland 62 units
Slide 8: Oceania is well underway on the execution of our 5-year strategic plan
Oceania is well underway on the execution of our 5-year strategic plan ry OCEANIA Oceania has been actively positioning for profitable growth, with a focus on maintaining maximum development pipeline flexibility, innovation in resident experiences and services, pioneering a new approach to aged care
Slide 9: Kathryn Waugh
Kathryn Waugh"
Slide 10: Updated Sustainability Framework
Updated Sustainability Framework: We are creating sustainable retirement and aged care living experiences for today, and for our people of tomorrow. Over the course of FY2023, we have refreshed our Sustainability Framework that underpins our strategy. Through the implementation of Oceania’s refreshe
Slide 11: FY2023 trading highlights
FY2023 trading highlights G@ oceania ins. DMF and PAC Recurring premium revenue underpins our increase in underlying earnings for F¥2023 during challenging market cond revenue for FY2023 of $59.3m, a 14% increase on FY2022. Total assets Underlying EBITDA' ying NZDb 25 NZDm 762 80.0 22 65.6 1.9 pop20
Slide 12: Our care business
Our care business An increase in premium revenue streams has enabled us to maintain care EBITDA margins despite lack of industry funding. H+) OCEANIA d management fee (DMF) of Premium care revenue NZDm 16.6% CAGR 18.9 15.3 tht 48 49 Fy2022 PAC revenue = Care suite DMF Care EBITDA per bed’ NZD 15,626
Slide 13: Sales update
Sales update While new sales have been impacted by market pressures, margins and resale volumes remain strong. Sales volumes Developmentand resale margins 35.9% pep2021 Fy2022 Fy2023 26.1% 22.0% 21.2% 21.5% 2021 Fy2022 Fy2023 & om & % & % pees ‘8 ° a &, , &, — Development Margin Resale Margin “5 %s
Slide 14: Case Study: Cash generation from developments
Case Study: Cash generation from developments ry OCEANIA We provide analysis below on the cash generation of developments at three unique sites covering the breadth of offering in our portfolio. Namely, a multi-staged, multi-year integrated village, a low footprint single stage integrated developmen
Slide 15: Capital expenditure
Capital expenditure @ oceania FY2023 capital expenditure in line with FY2022 as Oceania continues to develop at an increased build rate. Breakdown of Capital Expenditure Development debt to underlying development assets (NZDm)$ NZDm Fy2023 Fy20z2! Acquisitions 61.6 72.5 Development Capital Expenditu
Slide 16: Balance Sheet Management
Balance Sheet Management Oceania holds significant headroom in its $725m of debt fa a Interest cover Our covenants require a ratio of Adjusted EBITDA to Net Interest Charges! of = 2.0x. Oceania has flexibility to switch facility limits between each of the general and development facility provided th
Slide 17: Appendix contents
01 02 03 04 (o}-) 06 07 08 09 10 N 12 13 14 15 16 (H+) OCEANIA Underlying earnings Income Statement Care segment Village segment Cash flow Resales cash flows Embedded value Balance sheet Portfolio summary Future development outlook Development pipeline Reconciliation of portfolio movements Summary o
Slide 18: Underlying earnings
° ° O01 Underlying earnings i) OCEANIA Underlying EBITDA of $80.0m for the 12 month period ended 31 March 2023, a 5% increase on FY2022. Reconciliation of underlying adjustments Segmental underlying adjustments NZDm FY2023 FY2022 Var 10m2021 NZDm FY2023 Fy2022 Var pep2021 Reported Net profit after t
Slide 19: Income statement
O2 Income statement iD OCEANIA Total Comprehensive Income for the period of $34.5m. Key valuation assump adjustments to growth and discount rates. ns remained largely consistent from FY2022 with minor Summary of income statement Key IP and PP&E CBRE valuation assumption changes NZDm Fy2023 Fy2022 Va
Slide 20: Care segment
03 Care segment G@ oceania EBITDA per bed of over $9,000 has been maintained. Our premium care revenue continues to grow demonstrating the success of our care premiumisation strategy and the continued acceptance of the care suite product. Aged care underlying EBITDA Occupancy rates NZDm Fy2023 Fy202
Slide 21: Village segment
O4 Village segment New sales volumes down relative to FY2022 but underlying EBITDA up driven by continued growth in DMF and resale gains as the portfolio matures. Village underlying EBITDA NZDm Fy2023 Fy2022 Var pep2021 Villa ond opartment DMF 39.0 33.1 5.9 25.5 Retirement village service fees od 7.
Slide 22: Cash flow
O05 Cash flow $70.2m of net operating cash flow in FY2023. Statement of cash flows NZDm Fy2023 FY2022 Var tomao2t Receipts from customers 196.6 190.1 65 142.3 Payments to suppliers and employees (214.3) (215.5) 12 (153.4) Rentol payments in relation to right of use asset 0.2) 2.8) 23 wt) Receipts fr
Slide 23: Resales cash flows
O06 Resales cash flows iD OCEANIA Growth in resales cash flows as Oceania’s portfolio matures and resells at higher price points. Reconciliation of resales cash flow NZDm FY2023 Fy2022 Receipts from New ORAs 178.8 2th.2 Tone aD aan) + Net resales cashflow for FY2023 of $31.2m, 6.1% up vs. F¥2022. SC
Slide 24: Embedded value in existing portfolio
O7 Embedded value in existing portfolio ry OCEANIA The embedded value in our portfolio has increased 24.5% since March 2022 to $458.7m as at FY2023 and will underpin the future realisation of cash flows from deferred management fees and resale gains. Embedded Value NZDm 500 458.7 3,500 400 368.3 2,8
Slide 25: Balance sheet
O8 Balance sheet Total assets increased by $347m from 31 March 2022 driven by growth in the value of retirement H+) OCEANIA lage and care properties through acquisitions and continued development. Oceania’snet adjusted value is $1.36 per share as at 31 March 2023. Balance sheet value (“NAV”) NZDm Fy
Slide 26: Portfolio summary
O9 Portfolio summary iD OCEANIA As at 31 March 2023. Bream Bay Village Ruakaka = = 83 83 Marina Cove Picton - - 26 26 ee nea = 2 av ay Green Gables Nekon = é 40 101 Greenvalley Lodge: North Shore: 50 3 5 50 Qtumarame Nelson, 2 ag - oo Lady Allum North Shore: 5 re} 29 242 Stoke Nelson 2 2 120 120 Wat
Slide 27: Future development outlook
10 Future development outlook 57% of our existing portfolio is now premium units and care suites as we progress to ~72% premium / ~28% standard at the end of our current pipeline. Current & future portfolio composition! Carebeds Care suites ILUs Total North Island 1,326 637 1,466 3,429 South Island
Slide 28: Development pipeline
11 Development pipeline Status as at 31 March 2023. ry OCEANIA Stee cm sche we Caer] resents) Nets Note yank Si ‘Consented - 40 40 40 ore ormets Tee 9 User Condi 7 : 7h 7 Commenced conan FREE Under Construction 28 - 28 28 ‘Commenced construction FY2022, Consented 107 - 107 107 Under Construction 46
Slide 29: Reconciliation of portfolio movements
12 Reconciliation of portfolio movements #9) OCEANIA Changes Conversion Conversion Changes in Changes in Asat in existing of units to New units i Pipeline Asat Fy2022 capacity care suites New units acquired delivered decommissions Fy2023, 725 (79) iv) 12 1,651 854 ©) 7 142 988 Units 1,625 (2) 141 66
Slide 30: Summary of unit sales
13. Summary of unit sales ry OCEANIA New Sales FY2018 Fy2019 pep2020 pep2021 FY2022 FY2023 Villa 26 23 19 40 26 - Apartment a7 53 59 67 92 Be Care suite 27 57 128 15 66 7h Total 100 133 206 222 184 128 ‘Average development margin 33.5% 36.0% 37.2% 26.1% 28.0% 37.0% Resales FY2018 FY2019 pep2020 pep2
Slide 31: Definition of Underlying NPAT
14. Definition of Underlying NPAT Underlying Profit (or Underlying NPAT) Underlying Profit is a non-GAAP measure used by the Group to monitor financial performance and is a consideration in determining dividend distributions. Underlying profit measures require a methodology and a number of estimates
Slide 32: Glossary
15 Glossary RCC Aged Residential Care Contract 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, of a maximum of 30% of the Occupation Licence Payment, which are deducted
Slide 33: Important notice and disclaimer
16 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 init (‘Document’). The presentation includes no