Summerset Group Holdings Limited · NZX:SUM
Summerset — FY2015 Earnings Presentation
33 slides from Summerset's earnings presentation, Feb 29, 2016
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION YEAR ENDED 31 DECEMBER 2015 SUMMERSET GROUP HOLDINGS LIMITED 29 February 2016 24 2012 0
Slide 2: Agenda
AGENDA 2 FY15 Result Highlights 6 Business Overview 20 Financial Results 26 Final Dividend 30 Appendix 1
Slide 3: FY15 Result Highlights
FY15 RESULT HIGHLIGHTS 2
Slide 4: Record sales and retirement unit delivery highlights for FY15
FY15 RESULT HIGHLIGHTS RECORD SALES AND RETIREMENT UNIT DELIVERY HIGHLIGHTS FOR FY15 FY15 Actual vs. FY15 Actual FY14 Actual FY13 Actual FY14 Actual* New sales of occupation rights 333 286 16.4% 228 Operational Resales of occupation rights 245 172 42.4% 174 Total sales 578 458 26.2% 402 New retireme
Slide 5: Record new sales and retirement unit delivery highlights for FY15
FY15 RESULT HIGHLIGHTS RECORD NEW SALES AND RETIREMENT UNIT DELIVERY HIGHLIGHTS FOR FY15 ■ FY15 underlying profit of $37.8m, up 55% on FY14 ■ FY15 net profit after tax (NZ IFRS) of $84.2m, up 56% on FY14 ■ New sales 16% higher than FY14 – strong sales across NZ ■ Resales 42% higher than FY14 – recor
Slide 6: Strong trends continue across the business
FY15 RESULT HIGHLIGHTS STRONG TRENDS CONTINUE ACROSS THE BUSINESS TOTAL ASSETS UNDERLYING PROFIT $1500m $40m $1400m $35m $1300m $1200m $30m $1100m $25m $1000m $37.8m $1364m $20m $900m $800m $15m $1043m $24.4m $22.2m $700m $845m $10m $15.2m $600m $702m $617m $8.1m $500m $5m FY11 FY12 FY13 FY14 FY15 F
Slide 7: Business Overview
BUSINESS OVERVIEW aT mmerset
Slide 8: Record underlying profit of $37.8m in FY15
FY15 REVIEW RECORD UNDERLYING PROFIT OF $37.8M IN FY15 ■ Delivered 303 retirement units in FY15, a record for Summerset, and 16% more than FY14 ■ On track for delivery of 400 retirement units in FY16, increases will predominately come from existing sites ■ Opened Wigram village, our first village in
Slide 9: Summerset Snapshot
SUMMERSET SNAPSHOT THIRD LARGEST OPERATOR, SECOND LARGEST DEVELOPER ■ 2,419 retirement units (villas, apartments and care apartments) ■ 616 care beds ■ More than 3,500 residents ■ 303 retirement units delivered in FY15 ■ 18 years of consistent delivery and growth ■ 21 villages completed or in develo
Slide 10: Summerset Strategy
SUMMERSET STRATEGY SUMMERSET BUILDS, OWNS AND OPERATES RETIREMENT VILLAGES IN NZ ■ Focus on continuum of care model ■ Looking to pilot our first dementia facility in 2016 ■ High quality care and facilities within every village ■ Village designed to integrate into local communities ■ Internal develop
Slide 11: Operations and Staff
OPERATIONS AND STAFF FOCUS ON CLINICAL QUALITY AND STAFF TRAINING ■ Continued Careerforce training programme participation, and qualification attainment ■ 92% industry leading care customer satisfaction rating ■ 97% village customer satisfaction rating ■ Benchmarking of key clinical indicators intro
Slide 12: Demographics
DEMOGRAPHICS POPULATION OVER 75 YEARS FORECAST TO GROW 250% FROM 2015 TO 2068 POPULATION GROWTH 75 YEARS AND OVER 1,200,000 18% 16% 1,000,000 14% 800,000 12% 10% 600,000 8% 400,000 6% 4% 200,000 2% 0 0% 2015 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063 2068 NZ Population 75+ (left hand axis) %
Slide 13: Summerset Growth
SUMMERSET GROWTH 18 YEARS OF CONSISTENT DELIVERY AND GROWTH SUMMERSET BUILD RATE 3,000 2,500 2,419 303 2,116 2,000 1,855 261 Retirement Units 1,646 209 1,486 160 1,500 *2011 existing stock includes 12 units acquired 1,352 122 1,272 80 as part of the Nelson site acquisition 1,109 163 983 2,116 921 12
Slide 14: Development Activity: delivery across eight sites
FY15 DEVELOPMENT ACTIVITY DELIVERY OF 303 RETIREMENT UNITS IN FY15 ACROSS EIGHT SITES Unit Delivery FY15 Villas Apartments Care Apartments Total ILU’s Care Beds Total Build Hamilton 32 - 10 42 19 61 Hobsonville 43 - - 43 - 43 Karaka 39 - 10 49 30 79 Katikati - - 10 10 30 40 Nelson 26 - 10 36 19 55 N
Slide 15: Development Activity: delivery across eight sites
FY15 DEVELOPMENT ACTIVITY DELIVERY OF 303 RETIREMENT UNITS IN FY15 ACROSS EIGHT SITES Hamilton Karaka Trentham Wigram Nelson Katikati 14
Slide 16: Development Activity: delivery across eight sites
FY15 DEVELOPMENT ACTIVITY DELIVERY OF 303 RETIREMENT UNITS IN FY15 ACROSS EIGHT SITES Hobsonville New Plymouth Katikati Hobsonville New Plymouth Karaka 15
Slide 17: Future Development
FUTURE DEVELOPMENT LAND BANK OF 2,414 RETIREMENT UNITS AND 406 CARE BEDS Land Bank - as at 31 December 2015 * Villas Apartments Care Apartments Total Retirement Units Care Beds Casebrook 184 0 53 237 49 Ellerslie 42 221 57 320 58 Hamilton 53 0 30 83 0 Hobsonville 46 73 50 169 52 Karaka 116 0 49 165
Slide 18: Development Margin
DEVELOPMENT MARGIN RECORD PERFORMANCE IN REALISED DEVELOPMENT MARGIN ■ Realised development margin of $26.1m, up 57% from $16.7m in FY14 ■ Record development margin of 20.0% in FY15, this is up from 15.7% in FY14 and above our medium term target of 17.0% ■ Strong 2H15 development margin of 20.5%, up
Slide 19: New Sales of Occupation Rights
NEW SALES OF OCCUPATION RIGHTS NEW SALES GROSS PROCEEDS UP 23% ON FY14 TO $131M ■ FY15 lift in sales associated with continued build FY15 Actual vs. New Sales FY15 Actual FY14 Actual FY13 Actual programme and new villages opening FY14 Actual * ■ Successful year with 30 more sales than retirement uni
Slide 20: Resales of Occupation Rights
RESALES OF OCCUPATION RIGHTS RESALES OF 245 OCCUPATION RIGHTS IN FY15, UP 42.4% ON FY14 ■ Gross proceeds of $77.0m, up 40% on FY14 Resales FY15 Actual FY14 Actual FY15 Actual vs. FY13 Actual FY12 Actual FY14 Actual * ■ Enhanced sophistication in sales pricing Gross proceeds ($m) 77.0 54.9 40.4% 51.6
Slide 21: Financial Results
BUSINESS FINANCIALOVERVIEW RESULTS 20
Slide 22: Reported Profit (IFRS)
FY15 REPORTED PROFIT (IFRS) NET PROFIT AFTER TAX UP 56% VERSUS FY14 ■ NPAT up $30.1m relative to FY14 FY15 Actual NZ$m FY15 Actual FY14 Actual vs. FY14 FY13 Actual ■ FY15 total revenue up 27% versus FY14 Actual * ■ FY15 total expenses up 28% versus FY14 Total revenue 68.8 54.3 26.7% 45.2 ■ 2015 expe
Slide 23: Underlying Profit
FY15 UNDERLYING PROFIT UNDERLYING PROFIT UP 55% ON FY14 ■ Record underlying profit of $37.8m, up 55% on FY14 NZ$m FY15 Actual FY14 Actual FY15 Actual vs. FY13 Actual FY14 Actual * ■ Record development margin achieved in FY15, with Reported profit after tax 84.2 54.2 55.5% 34.2 an additional $9.4m of
Slide 24: Cash Flows
FY15 CASH FLOWS CONTINUED INVESTMENT IN NEW VILLAGE BUILDS ■ Net operating cash flow of $142.6m for NZ$m FY15 Actual FY14 Actual FY15 Actual vs. FY13 Actual FY15, up 29% on FY14 FY14 Actual * Care fees and village services 46.4 36.2 28.3% 31.8 ■ Positive cash flow increases in both care and village
Slide 25: Balance Sheet
FY15 BALANCE SHEET TOTAL ASSETS OF $1.4B, UP 31% FROM $1.0B IN FY14 FY15 Actual ■ Total assets of $1.4b, up 31% on FY14 NZ$m FY15 Actual FY14 Actual vs. FY14 FY13 Actual Actual * ■ Investment property valuation of $1.3b, up 26% on FY14 Investment property 1,261.2 958.2 31.6% 776.6 ■ Other assets inc
Slide 26: 5 Year Metrics Summary
5 YEAR METRICS SUMMARY UNDERLYING PROFIT UP $29.7M OR 368% ON FY11 4 Year CAGR FY15 FY14 FY13 FY12 FY11 New sales of occupation rights 33% 333 286 228 167 108 Resales of occupation rights 19% 245 172 174 164 123 Operational Total sales 26% 578 458 402 331 231 New units delivered 26% 303 261 209 160
Slide 27: Final Dividend
FINAL DIVIDEND 26
Slide 28: Final Dividend
FY15 FINAL DIVIDEND SUMMERSET BOARD DECLARES FY15 FINAL DIVIDEND ■ The Summerset Board have declared a final dividend of 3.4 cents per share, unimputed ■ This represents a total pay-out for the second half of 2015 of approximately $7.5m ■ Total dividends paid for the 2015 year (interim and final) of
Slide 29: Questions?
BE SUMMERSET SURE QUESTIONS?
Slide 30: Disclaimer
DISCLAIMER This presentation may contain projections or forward looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward looking stat
Slide 31: Appendix
APPENDIX 30
Slide 32: Portfolio as at 31 December 2015
PORTFOLIO AS AT 31 DECEMBER 2015 2,419 RETIREMENT UNITS AND 617 CARE BEDS Existing Portfolio – as at 31 December 2015 Villas Apartments Care Apartments Total Retirement Units Care Beds Aotea 96 33 38 167 0 Dunedin 61 20 20 101 41 Hamilton 130 0 20 150 49 Hastings 146 5 0 151 0 Havelock North 94 28 0
Slide 33: Land Bank as at 31 December 2015
LAND BANK AS AT 31 DECEMBER 2015 LAND BANK OF 2,414 RETIREMENT UNITS AND 406 CARE BEDS Land Bank - as at 31 December 2015 * Villas Apartments Care Apartments Total Retirement Units Care Beds Casebrook 184 0 53 237 49 Ellerslie 42 221 57 320 58 Hamilton 53 0 30 83 0 Hobsonville 46 73 50 169 52 Karaka
Summerset Group Holdings — FY2015 Earnings Presentation on 6ix