Hmc Capital Limited · ASX:HMC
Hmc Capital — FY2022 Earnings Presentation
37 slides from Hmc Capital's earnings presentation, Aug 24, 2022
Slide 1: FY22 Results Presentation (ASX Release)
ASX RELEASE 24 August 2022 FY22 RESULTS PRESENTATION HMC Capital (ASX: HMC) provides the attached FY22 Results Presentation. This announcement is authorised for release by the Board. For further information please contact: INVESTORS Misha Mohl Will McMicking Group Head of Strategy & IR Group Chief F
Slide 2: FY22 Full-Year Results
FY22 FULL-YEAR RESULTS Establishing scalable platforms for sustainable long-term growth 24 August 2022 0
Slide 3: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY HMC Capital acknowledges the Traditional Custodians of country throughout Australia and celebrates their diverse culture and connections to land, sea and community. We pay our respect to their Elders past, present and emerging and extend that respect to all Aboriginal and
Slide 4: Agenda
Agenda David Di Pilla Group Managing Director & CEO Page 6 FY22 RESULT HIGHLIGHTS Page 12 FUNDS MANAGEMENT Will McMicking Group CFO Page 17 FINANCIAL RESULTS Page 22 OUTLOOK & GUIDANCE Page 24 APPENDICES Misha Mohl Group Head of Strategy, Research & IR 2 2
Slide 5: HMC Capital Overview
HMC Capital Overview ASX-listed alternative asset manager led by experienced and aligned management team Overview of HMC Capital Funds Management Platform $5.8bn 85% 97% TSR AUM CAGR External AUM1 (since IPO)2 (since IPO)3 Leading ASX-listed alternative asset manager S&P/ASX 200 diversified alternat
Slide 6: HMC Capital Track Record
HMC Capital Track Record Execution capability has accelerated evolution to a capital light alternative asset manager >500,000 $6.7bn $4.3bn 3 Gross transactions1 Capital Raised2 Sqm Funds established GLA re-developed 2016 2017 - 2019 OCT 19 JUL 20 NOV 20 DEC 20 Acquisition of former HMC establishes
Slide 7: FY22 Result Highlights
HMCopital FY22 RESULT HIGHLIGHTS
Slide 8: FY22 Strategic Outcomes
FY22 Strategic Outcomes Our results demonstrate platform scalability and investment discipline OUR AMBITION IS TO BE AUSTRALIA’S LEADING DIVERSIFIED ALTERNATIVE ASSET MANAGER EXPAND & DIVERSIFY GROW AND RETAIN SCALE EXISTING SOURCES OF CAPITAL ELITE TEAM PLATFORM Successfully listed HCW in Sep-21 ($
Slide 9: FY22 Result Highlights
FY22 Result Highlights Transformational year of record growth in assets under management and earnings FINANCIAL FUNDS MANAGEMENT 31.0cps / $91.0m $5.8bn HMC Capital Partners Fund I FY22 PRE-TAX FFO ~$300m FIRST CLOSE EXTERNAL AUM1 +126% increase on FY21 First investment in Sigma Healthcare up ~22%3
Slide 10: FY22 Result Highlights
FY22 Result Highlights Our success in FY22 builds on the significant growth since listing in October 2019 Assets Under Management Earnings per share growth1 Total shareholder return since IPO2 35.4cpu 85% +67% +86% . Target $1.5bn fund size HMCCP 4.4cpu HDN in-specie distribution $1.0bn+ Development
Slide 11: HMC Capital's Sustainability Framework
HMC Capital’s Sustainability Framework We are committed to sustainable practices that drive long term value creation and achieve a positive impact on the communities in which we operate SIX SUSTAINABILITY COMMITMENTS ENVIRONMENTAL SOCIAL GOVERNANCE 1. CLIMATE ACTION 3. CONNECTION 5. ALIGNMENT Active
Slide 12: HMC Capital's Sustainability Framework
HMC Capital’s Sustainability Framework Net-Zero Emission Roadmap - Scope 1 & 2 Emissions reduction roadmap FY22 FY23 Solar Baseline Formed Net Zero Progress Solar Baseline Formed Solar installed on 18 sites EV Charging Rollout FY24 Net Zero Progress 5 Sites have EV 10% reduction chargers installed G
Slide 13: Funds Management
FUNDS MANAGEMENT HMCopital 11
Slide 14: HMC Capital Funds Management Platform Today
HMC Capital Funds Management Platform Today Scalable growth platforms underpinned by permanent capital sources and powerful megatrends Partners Fund I Established Nov-20 Sep-21 Aug-22 High conviction strategic stakes & Sector focus Daily needs retail property Healthcare & wellness property private e
Slide 15: External assets under management increases to $5.8bn
External assets under management increases to $5.8bn 321% growth in external AUM underpinned by record deployment in FY22 FY22 external AUM growth1 +321% growth in 12 months $5.8bn ($0.1bn) $0.6bn $0.3bn $0.1bn $0.7bn $3.0bn $4.9bn $0.3bn $1.4bn $0.6bn $1.4bn FY21 External AUM HCW establishment HMC
Slide 16: Active Portfolio and Capital Management
Active Portfolio and Capital Management Our response to the rising interest rate environment and market volatility has protected capital and preserved funding capacity for attractive investment opportunities which may emerge HomeCo Daily Needs REIT HealthCo Healthcare & Wellness REIT ▪ Successful me
Slide 17: Growth Strategy
Growth Strategy Well positioned to maintain growth trajectory and grow AUM beyond $10bn by 2024 ▪ ASX-listed REITs providing high quality and growing income streams via exposure to attractive megatrends Listed ▪ Strong commitment to market leading governance and manager alignment to support long-ter
Slide 18: FY22 Financial Results
FY22 FINANCIAL RESULTS HMCopital 16
Slide 19: Earnings summary
Earnings summary FY22 pre-tax FFO of $91.0m or 31.0 cents per share $ million FY21 FY22 INVESTMENT Direct property earnings 40.9 11.1 ▪ Direct property earnings decreased from FY21 following the sale of remaining investment properties throughout FY22 Share of associate profit (FFO)1 6.1 22.8 ▪ Share
Slide 20: Funds management
Funds management Strong growth in funds management income streams supported by HDN and part period contribution from HCW $ million FY21 FY22 Base management fees 4.4 17.3 ▪ Funds management revenue grew to $64.1m in FY22 driven Acquisition / disposal fees 1.6 30.6 predominantly by the full period im
Slide 21: Balance sheet
Balance sheet Transitioned to capital light funds management model following successful monetisation of remaining LFR properties on balance sheet $ million 30-Jun-21 30-Jun-22 ▪ Key movements during the period relate to the sale of properties to Cash and cash equivalents 11.7 57.6 Investment propert
Slide 22: Capital management
Capital management Well positioned to support future funds management activities $ million 30-Jun-21 30-Jun-22 ▪ Jun-22 net cash position of $57.6m with nil drawn debt driven by the Bank debt facility sale of properties during FY22 resulting in total cash and undrawn Maturity Oct-22 Nov-23 debt of $
Slide 23: Outlook and Guidance
OUTLOOK AND GUIDANCE HMCopital 21
Slide 24: Outlook and Guidance
Outlook and Guidance Well positioned to maintain growth trajectory and grow AUM well beyond $10bn by 2024 FY23 Guidance ▪ In FY22 HMC Capital delivered FFO of 31.0 cps pre-tax (+126%) which included material transactional income (including trading profits) – We believe this is repeatable as we conti
Slide 25: Appendix A: HMC Capital Partners Fund I
Appendix A HMC CAPITAL PARTNERS FUND I 23 23
Slide 26: Fund Overview
Fund Overview Fund I will target public and private companies in Australia and New Zealand with real asset backing where there is potential to unlock ‘trapped’ value through a private equity style investment approach $1.5bn 15%+ 2-4% $150m Target fund size Target return (net)1 Target distribution yi
Slide 27: Our Approach
Our Approach We intend to leverage our proven investment track record and skills to generate attractive risk adjusted returns which are non-correlated to equity markets over the long-term Investment Capability Investment Process Highest conviction ideas Proven investment track record ability to inve
Slide 28: Why Alternatives?
Why Alternatives? Demand for alternatives is growing exponentially as investors seek exposure to non-correlated assets providing inflation protected returns Forecast growth in global pension fund allocation to alternatives1 5% 40% 30% 20302 2021 60% 2000 70% 95% Equity & fixed income Real assets & a
Slide 29: Seed Investment in Sigma Healthcare (ASX: SIG)
Seed Investment in Sigma Healthcare (ASX: SIG) HMC Capital recently acquired a ~14% stake in SIG as the first seed asset for HMC Capital Partners and is up ~22% on our purchase price Investment overview SIG branded pharmacies Company description Founded in 1912, Sigma Healthcare provides wholesale a
Slide 30: Appendix B: Supplementary Information
Appendix B SUPPLEMENTARY INFORMATION 28 28
Slide 31: Additional financial information
Additional financial information Income statement FFO reconciliation to operating profit/(loss) after tax $ million FY21 FY22 $ million FY21 FY22 Direct property income 62.0 15.1 Operating profit/(loss) after tax (56.4) 122.4 Direct property expenses (21.6) (4.0) Deferred income tax expense 87.7 12.
Slide 32: Gross transactions and equity flows
Gross transactions and equity flows FY22 Gross transactions1 Equity flows Daily Needs Healthcare & HMC Balance FY22 Total FY21 FY22 Retail Wellness Sheet proforma2 Acquisitions ($bn) $2.8bn $0.6bn $0.2bn $3.6bn Listed ($m) $0.9bn $2.9bn $2.9bn Disposals ($bn) - - $1.0bn $1.0bn Unlisted ($m) - - $0.3
Slide 33: Distribution Strategy
Distribution Strategy Our distribution strategy is designed to match diverse capital sources with high conviction alternative investment opportunities LONG-TERM TARGET CAPITAL SOURCES TARGET SECTORS MANAGEMENT PLATFORM ▪ Listed institutional Investment capability – Domestic & Global ▪ Institutional
Slide 34: Sustainability Progress at HMC Capital: Environment
Sustainability Progress at HMC Capital Progressively implementing HMC Capital’s Sustainability Commitments ▪ Progressing toward Net Zero by 2028. Progressively implementing the Smart Energy Management Strategy (EMS) across assets, 8 asset installations complete, with the balance of controlled assets
Slide 35: Sustainability Progress at HMC Capital: Governance
Sustainability Progress at HMC Capital Progressively implementing HMC Capital’s Sustainability Commitments ▪ HMC Capital respects the inherent dignity, safety, diversity and human rights of all stakeholders ▪ HMC Capital has joined the UN Global Compact ▪ In our asset management and property managem
Slide 36: Further Information
Further Information Investors and analysts Media Misha Mohl Will McMicking John Frey Group Head of Strategy, Research & IR Group Chief Financial Officer Corporate communications HMC Capital HMC Capital +61 422 371 575 +61 451 634 991 +61 411 361 361 misha.mohl@hmccapital.com.au william.mcmicking@hmc
Slide 37: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by Home Consortium Limited (ACN 138 990 593) (“HMC Capital”) Summary information This Presentation contains summary information about the current activities of HMC Capital and its subsidiaries as at the date of this Presentation. The info