Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — Investor Day (May 2014)
38 slides from Lifestyle Communities's investor day presentation, May 21, 2014
Slide 1: Investor Day Presentation
For personal use only Investor Day Presentation 21 May 2014 Downsize to a Bigger Life
Slide 2: Agenda
AGENDA For personal use only • Lifestyle Communities Overview • Lifestyle Hastings • Operational Overview - Sales - Finance - Marketing - Construction - Community Management • Future Growth Lifestyle Communities - Downsize to a Bigger Life 2
Slide 3: Overview: Business Snapshot
OVERVIEW Business Snapshot 8 years of growing annuity income streams Annuity Income For personal use only • Founded in 2003 $4,000,000 –– $3,500,000 –– • Develop and manage land lease communities which $3,000,000 –– generate long-term sustainable revenue streams $2,500,000 –– $2,000,000 –– • Focused
Slide 4: Community Locations
COMMUNITY LOCATIONS For personal use only SHEPPARTON Community Homes Settled (1) Melton 228 100% Tarneit 136 99% Warragul 182 92% Cranbourne 217 79% WOLLERT MELTON Shepparton 221 27% TARNEIT Chelsea Heights 186 52% CHELSEA HEIGHTS CRANBOURNE Hastings 141 33% GEELONG WARRAGUL Wollert 155 - HASTINGS G
Slide 5: Business Model
BUSINESS MODEL Lifestyle Communities has a low risk sustainable business model For personal use only Development Business Community Management Business Total annuities at year end Circulating Settled homes are transferred to the Capital Community Pool Management Business FY06 FY07 FY08 FY09 FY10 FY1
Slide 6: Annuity Streams
ANNUITY STREAMS Over Eight Years of Growing Annuity Income Streams For personal use only Annuity Income • 109(1) annuities added to the Community Management $4,000,000 –– Business during the first half, $3,500,000 –– with a further 101(2) expected for $3,000,000 –– the second half of FY2014 $2,500,0
Slide 7: Business Evolution - Housing
BUSINESS EVOLUTION - HOUSING Over the past 11 years Lifestyle Communities has continued to evolve the business to meeting the emerging customer base For personal use only House designs have been simplified with improved finishes Lifestyle Communities - Downsize to a Bigger Life 7
Slide 8: Business Evolution - Communal Facilities
BUSINESS EVOLUTION - COMMUNAL FACILITIES Clubhouse designs have progressively modernised For personal use only Urban design has focused on connectivity and landscaping Lifestyle Communities - Downsize to a Bigger Life 8
Slide 9: Hastings Overview
HASTINGS OVERVIEW For personal use only • Community now over 67% sold and expected to be 33% settled by 30 June 2014 • Average home sale price: $293,209 (GST incl.) • Sales have come from: - 50% Hastings and surrounds - 50% Mornington Peninsula and beyond > Building a bigger life Commenced Civil Fir
Slide 10: Organisational Structure
ORGANISATIONAL STRUCTURE Lifestyle Communities operates a flat management structure For personal use only BOARD MANAGING DIRECTOR James Kelly ACQUISITION SALES MARKETING CONSTRUCTION OPERATIONS FINANCE Manager Manager Manager Manager Manager CFO Chris Paran- Graham Elliss Katrina Steel Michael Imbes
Slide 11: Graham Elliss, Sales Manager
For personal use only Graham Elliss Sales Manager Lifestyle Communities - Downsize to a Bigger Life 11
Slide 12: Sales Team and Initiatives
SALES TEAM AND INITIATIVES Team • Dedicated sales consultant at each For personal use only community selling new homes • Sales assistant to support sales consultant at newer communities • Dedicated resource for resale homes Initiatives • Culture of sales team ‘holding hands’ with customer throughout
Slide 13: Sales Update
SALES UPDATE Resale homes - net sales New homes - net sales commitments commitments For personal use only 2H Total Homes 1H Total FY2014 FY2014 FY2014 % sold FY2013 for FY2014 FY2013 YTD(1) to date(1) to date sale(1) Brookfield - - - 1 100% 17 8 11 • Total new home sales 224 for Tarneit - - - - 100%
Slide 14: Pre-Sales
PRE-SALES Pre-sale of homes prior to opening of clubhouse For personal use only % Sold 100% –– –– 80% –– • Limited pre-sales of homes –– in first three communities 60% –– • Brand awareness and scale has improved pre-sales –– • Pre-sales now provide a 40% –– level of comfort against –– market risk 20
Slide 15: Geoff Hollis, CFO
HEADING For personal use only Geoff Hollis CFO Lifestyle Communities - Downsize to a Bigger Life 15
Slide 16: Settlement Update
SETTLEMENT UPDATE New home settlements Resale settlements For personal use only Total Total 1HFY 2HFY Total Total % settled homes in FY2014 (1) FY2013 2014(1) 2014 (1) FY14 (1) FY13 settled(1) 30-Jun-14 portfolio • On target to achieve Brookfield - - - 2 228 228 100% 12 5 settlement guidance of 200+
Slide 17: Financing Update
FINANCING UPDATE Current finance facilities - Development Debt For personal use only • Gearing (3) is anticipated to be between 20- Estimated Draw 25% at 30 June 2014. This is an increase Total facilities(1) 30 June 2014(2) $ millions $ millions from 30 June 2013 (17.9%) due to less cash on hand as
Slide 18: Risk Management
RISK MANAGEMENT There is diligent risk management at each stage of the development cycle For personal use only Community Financial Site Selection Community Roll Out Sales Management • Strong balance • Long-term • Level of pre-sales • Control customer • Rigorous staff sheet experience in the determin
Slide 19: Katrina Steel, Marketing Manager
For personal use only Katrina Steel Marketing Manager Lifestyle Communities - Downsize to a Bigger Life 19
Slide 20: Marketing Strategy - Objectives
MARKETING STRATEGY - OBJECTIVES For personal use only Key Strategies • Create a unique brand that differentiates the Lifestyle Communities proposition from traditional retirement villages • Deliver the volume of enquiry necessary to meet short-term sales targets and build the long term sales pipelin
Slide 21: Marketing Strategy - Who Is Our Customer?
MARKETING STRATEGY - WHO IS OUR CUSTOMER? Straddling two segments but focusing on the aging baby boomer For personal use only War Generation Baby Boomer Generation (1925-1945) (1946-1964) Marketing Transition • Aged 69-89 • Ageing into the retirement space • Negative trigger buyers • Positive trigge
Slide 22: Who Is Our Customer?
WHO IS OUR CUSTOMER? Socio/Economic Profile • Majority on pension/benefit For personal use only • Located outer urban Melbourne • Low levels of superannuation Buyer Behaviour Triggers • Accept pension will be part of life • Transparency & Openness • 48% couples, 42% single women, • Security - Financ
Slide 23: Marketing Strategy
MARKETING STRATEGY Blog Newspapers/ For personal use only Direct Mail Magazines Website SEO SEM PPC Adwords PR Digital Brand Advertising Banner Advertising Performance Display Social Media Radio TV TRADITIONAL APPROACH DIGITAL STRATEGIES Lifestyle Communities - Downsize to a Bigger Life 23
Slide 24: Digital Strategy
DIGITAL STRATEGY Website For personal use only Lifestyle Communities - Downsize to a Bigger Life 24
Slide 25: Digital Strategy
DIGITAL STRATEGY SEM & SEO initiatives Brand Advertising For personal use only Watch your life grow ... PAID SEM ORGANIC SEO Lifestyle Communities - Downsize to a Bigger Life 25
Slide 26: Digital Strategy - Website Unique Visitors
DIGITAL STRATEGY For personal use only Website Unique Visitors: 1 November 2013 - 30 April 2014 71 5,0 5,000 • Website at centre of all 4,500 77 marketing activities 2 4,2 3,99 4,000 • Purchase cycles have halved in last 5 years - 67% of sales 3,500 secured in under 2 weeks 3,000 02 • Measurable thr
Slide 27: Michael Imbesi, Construction Manager
For personal use only Michael Imbesi Construction Manager Lifestyle Communities - Downsize to a Bigger Life 27
Slide 28: Construction Team and Approach
CONSTRUCTION TEAM AND APPROACH Team For personal use only • Full time project manager for each community development • All trades are outsourced Approach • Focused on compressing the timeframe between commencement of construction and the first homeowner moving in • Focused on mitigating development
Slide 29: Community Designs
COMMUNITY DESIGNS For personal use only URBAN LAYOUT ENTRY & GATE LANDSCAPING CLUBHOUSE HOUSE DESIGNS Ensuring that the To create a sense of Significant Ongoing evolution Evolving as our homes work together arrival and security investment in with design homeowner becomes by varying setbacks landscap
Slide 30: Sam Cohen, Operations Manager
For personal use only Sam Cohen Operations Manager Lifestyle Communities - Downsize to a Bigger Life 30
Slide 31: Operational Management Team and Approach
OPERATIONAL MANAGEMENT TEAM AND APPROACH For personal use only Team • On-site dedicated managers, generally a couple who live on site Approach • Ability to help seed the culture of each community • Operational management team involved in key touch points with homeowners: - Pre-move-in luncheons and
Slide 32: Community Management
COMMUNITY MANAGEMENT For personal use only A Typical Week for a ‘Lifestyler’ 10:30am Morning Tea Monday 7:00pm Homeowners General Meeting • Management style aimed at giving homeowners a sense of control - “golf 9:30am Walking Group course” style Tuesday 2:00pm Bowls • Community Managers have a “hand
Slide 33: Community & Lifestyle Engagement
COMMUNITY & LIFESTYLE ENGAGEMENT For personal use only Monthly Quarterly Managing Director Homeowner and all homeowners committee meetings in new meetings communities 1/2 Yearly Annually Managing Director Homeowner and all homeowners committee meetings in established AGM’s communities Creating an em
Slide 34: James Kelly, Managing Director
For personal use only James Kelly Managing Director Lifestyle Communities - Downsize to a Bigger Life 34
Slide 35: Future Growth - Land Supply
FUTURE GROWTH - LAND SUPPLY Lifestyle Communities continually performs detailed due diligence on Victoria’s growth corridors For personal use only • Focusing on opportunities in Victoria to capitalise on the lack of supply of affordable housing, forecast population growth and brand equity • Target s
Slide 36: Summary
SUMMARY For personal use only • 210(1) homes either settled or expected to settle for FY2014 • Market rewarding our branding positively with increased sales - 224 net sales commitments (FY2014 YTD) compared with 190 for FY2013 • Looking at further acquisitions in line with our recycled capital plan
Slide 37: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only • This Presentation contains general background information about Lifestyle Communities Limited (LIC) and its activities current at 21 May 2014 unless otherwise stated. It is information in a summary form and does not purport to be complete. It s
Slide 38: Lifestyle Communities Limited
For personal use only Lifestyle Communities Limited Level 2, 35 Market Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au GEELONG - WOLLERT - HASTINGS - CHELSEA HEIGHTS - SHEPPARTON - CRANBOURNE - WARRAGUL - TARNEIT - MELTON