Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — FY2010 Earnings Presentation
24 slides from Lifestyle Communities's earnings presentation, Aug 25, 2010
Slide 1: August 2010
For personal use only I August 2010
Slide 2: Contents
Contents For personal use only 1. Financial Results 2. Market Conditions and Opportunity 3. Business Model 4. Current Status 5. Outlook 6. Summary This document should be read with the Disclaimer at the end of the document Affordable Seniors Housing I
Slide 3: Financial Results
Financial Results For personal use only • Highlights • Profit and Loss • Balance Sheet • Cash Flow Affordable Seniors Housing I
Slide 4: Highlights
For personal use only Highlights Income growth $3,500,000 • Net profit before tax: $7.6m $20,000,000 $3,000,000 • Net profit after tax: $5.3m • Gross revenues: $23.9m (up from $14.8m in the previous financial year) $2,500,000 $16,000,000 • Gross management revenues: $3.1m (up from $1.9m in the previ
Slide 5: Profit & Loss
Profit & Loss For personal use only Profit and loss highlights FY2010 FY2009 ($'000) ($'000) Revenue Unit sales 20,755 13,016 Management income 3,140 1,806 Net profit before tax and significant items 7,641 4,110 Significant items ‐ (3,077) Net profit before tax 7,641 1,032 Net profit after tax 5,297
Slide 6: Balance Sheet
Balance Sheet For personal use only Balance sheet highlights FY2010 FY2009 ($'000) ($'000) Investment properties 37,453 27,019 Total assets 60,332 49,476 Bank borrowings (22,830) (24,526) Loan to value ratio 37.8% 49.6% Total liabilities (32,848) (27,340) Net assets 27,484 22,136 NTA backing (cents)
Slide 7: Cash Flow
For personal use only Cash Flow Cash flow highlights FY2010 FY2009 ($'000) ($'000) Receipts from customers 25,256 17,659 Payments to suppliers and employees (22,813) (22,685) Net interest payments (165) (362) Income tax paid ‐ (47) Cash flows from operations 2,278 (5,436) Affordable Seniors Housing
Slide 8: Market Opportunities and Conditions
Market Opportunities and Conditions For personal use only Affordable Seniors Housing I
Slide 9: Key Market Drivers
Key Market Drivers For personal use only Housing affordability is a key issue for both the public and private sectors. • The median net worth of a single person over 65 years of age is $334,000 (ABS: 2005-06) • Percentage of single people that rely on pensions as their primary source of income: 77%
Slide 10: Population growth 65+
Population growth 65+ For personal use only • Primary growth: Impact of an ageing Australian population on housing demand. • Secondary growth: Increased market penetration – more ageing Australians want to live in a community based village. • Demand for retirement units over the next 10 years • 75,0
Slide 11: Key Market Drivers
Key Market Drivers For personal use only The big housing market themes are: • Affordability • The ageing population Lifestyle Communities market offering directly addresses these key market themes. Lifestyle Communities will continue to build on its established business and to grow the business. Ind
Slide 12: Senior's Housing Market Segmentation
Senior’s Housing Market Segmentation For personal use only Rentals Public Housing Not for Profits Traditional Retirement Villages 35% • There are approximately 2.1 million people within households aged over 65 in the population • Over 35% (more than 700,000 people) are within Lifestyle Communities t
Slide 13: Senior's Housing Market Segmentation
Senior’s Housing Market Segmentation For personal use only Rentals Traditional Public Housing Retirement 400,000 Not for Profits Villages 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - < $200k $200k - $450k > $450k Household net worth Single Couple • Lifestyle Communities’ target market co
Slide 14: Differentiation from Traditional Retirement
Differentiation from Traditional Retirement Indicative Community Timeline For personal use only Affordable Housing Model Timing Traditional Retirement Village Model Timing (The Lifestyle Model) Stage 1 Cash cost Initial Cash cost Initial - Find suitable land - Find suitable land - Seek DA approval -
Slide 15: Market Conditions
For personal use only Market Conditions Monthly customer commitments (sales) - last 18 months 18 Key Indicators 16 14 • Affordability continues to be a key driver of enquiry 12 10 • Customer commitments steadily increasing 8 6 • Outer suburban residential property demand still 4 positive 2 0 Afforda
Slide 16: Business Model
Business Model For personal use only • Lifestyle is a developer, owner and manager of affordable senior housing communities 2010 Gross Management Income ($3.1m) • Lifestyle operates as a “land lease” model and is NOT a retirement village • Residents lease the sites, where their $1.2m home is situate
Slide 17: Active Projects
Active Projects For personal use only Projected development debt run-off - next 3 years $15,000,000 $10,000,000 $5,000,000 $- Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 $(5,000,000) $(10,000,000) $(15,000,000) Brookfield Tarneit Warragul Total Please Note : T
Slide 18: Current Status
Current Status For personal use only *Data correct as at 18 August 2010 Affordable Seniors Housing I
Slide 19: Current Status
Current Status For personal use only Current Communities - projected on-completion valuations $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- 2008 2009 2010 Brookfield Tarneit Warragul The on‐completion values represented above are based on external valuation provided by M3 Property Co
Slide 20: Funding
Funding For personal use only • Westpac facility successfully extended to August 2012 • Fully compliant with all bank covenants • Bank facility classified as current due to highly technical accounting standards interpretation • Gearing materially reduced in line with strategic objective • Options to
Slide 21: Outlook
Outlook For personal use only • Debt and equity markets remain Net profit before tax and significant items tight 8,000,000 • Land availability limited 7,000,000 • Joint ventures is one method to 6,000,000 secure land • Aging population and housing 5,000,000 affordability will continue to be the 4,00
Slide 22: Summary
Summary For personal use only • FY2010 key financial highlights: • Net profit before tax $7.6m (FY2009: $1.0m) • Net tangible assets $27.5m (FY2009: $22.1m) • Net operating cash flows $2.3m (FY2009: deficit of $5.4m) • Status of existing communities (correct at 18 August 2010): • Brookfield: 94% of
Slide 23: Disclaimer
For personal use only Disclaimer While every effort is made to provide accurate and complete information, Lifestyle Communities Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms
Slide 24: Commercial in confidence
For personal use only Commercial in confidence I