Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — Debt Investor Presentation (August 2021)
30 slides from Oceania Healthcare's debt investor presentation, Aug 30, 2021
Slide 1: Retail Bond Presentation
@ OCEANIA in better. RETAIL BOND PRESENTATION 30 AUGUST 2021 ANZS, © CRAIGS 36JARDEN WES
Slide 2: Disclaimer
Disclaimer Please read carefully before the rest of this presentation This presentation hasbeen prepared by Oceania Healthcare Limited “Oceania” or the “|ssuer") in relation to the offer of bonds described in this presentation (‘Bonds’). The offer of the Bonds is made in reliance upon the exclusion
Slide 3: Agenda
Agenda Offer Highlights Business Overview and Strategy Financial Highlights Funding and Security Structure Offer Terms and Timetable Appendices 12 16 22 26 He) OCEANIA
Slide 4: Offer highlights
Offer highlights a9 OCEANIA Retail Bond Offer Details Issuer Oceania Healthcare Limited Qceania) Bonds Secured unsubordinated fixed rate bonds Payments on the Bonds are guaranteed by Oceania Village Company Limited, Oceania Care Company Limited CemenieD and Oceania Group (NZ) Limited, under a guaran
Slide 5: Business Overview and Strategy
. oS : ae Neel FA ~~ » (a a. Ss : @ Business Overview and Strategy
Slide 6: Oceania at a glance
Oceania at a glance iD OCEANIA Oceania was formed in 2005 and is a “care focused” operator and developer of aged care homes and retirement villages. Oceania is an experienced developer of new aged care and retirement village assets. The existing portfolio includes a substantial brownfield and greenf
Slide 7: Operational overview
Operational overview Oceania’s operations fall under three key segments 4) Operating Segment AGED CARE RETIREMENT VILLAGE & 6 . Provision of residential aged care services in standard beds, Manage portfolio of independent living fy Core operations - . i" 3 premium rooms and care suites. accommodatio
Slide 8: Operational overview (continued)
Operations Strategy Operational overview (continued) DD OCEANIA Oceania’s operations fall under three key segments Operating Segment Core operations Development pipeline’ Value drivers Strategy Green Gables, Nelson Example of brownfield development, completed in FY2021 * 61 care suites ° 28 apartmen
Slide 9: Future outlook
Future outlook 49% of our existing portfolio is now premium units and care suites as we progress to ~70% premium at the end of our current pipeline. Care Care beds suites ILUs Total North Island 1,394 520 1,006 2,920 South Island 413 327 361 1,101 Total Existing Development Pipeline? Less Decommissi
Slide 10: Recently completed developments
Recently completed developments Oceania has completed four major developments over the last twelve months He) OCEANIA Green Gables Nelson Completed in September 2020 ooo ooo oop N= The BayView Stage 2a Tauranga Completed in March 2021. Stage 2b scheduled to complete FY2022 $5 (Se) 71 N— Care suites
Slide 11: Developments under construction
Developments under construction iD) OCEANIA Oceania currently has construction underway at a number of sites throughout New Zealand Waimarie St (auckiana) Lady Allum (Auckiand) Awatere (Hamilton) " ee sede Ce 113 137 63 aaa Care suites under Apartments under cn _) Care suites under EE Further apartm
Slide 12: Highlights
Highlights ia OCEANIA 12
Slide 13: Trading highlights - 10 months to March 2021
Trading highlights - 10 months to March 2021! AD OCEANIA Premium revenue and sales volumes were the key drivers of strong underlying earnings in the 10 months to March 2021 (10m2021), each exceeded both pcp and 12 month FY2020. NZDm NZDm 63.8 63.5 33.1 35.2 56.2 26.3 : 27.5 521 2019 2020 2020 2021 2
Slide 14: 10 month trading highlights (continued)
10 month trading highlights (continued) Our aged care business is underpinned by our premiumisation strategy. Care suites are now a proven product delivering increasing annuity income streams. Aged care strategy showing numerous proof points in 10m2021 Record sales volumes despite only 10 month peri
Slide 15: Sustainability
Sustainability e We have set our strategy by considering what is important to key stakeholders and which risks and opportunities have the greatest impact on our ability to create value in the short and long term. e This strategy establishes goals and identifies measures to report people, planet and
Slide 16: Funding and Security Structure
ae Funding and security Structure
Slide 17: Debt funding
Debt funding a9 OCEANIA Oceania uses debt primarily to acquire and develop its sites across New Zealand. © Oceania uses debt to fund: Net debt — Redevelopment of existing brownfield sites; Debt facilities Facility limit aieena = Acquisition of land for future development; General / corporate $85.0m
Slide 18: Debt servicing
Debt servicing Oceania services its debt using development sales proceeds and other operating cash flows. e Oceania services debt with operating cash flows, comprising: First time sales proceeds from new developments (refer to chart opposite); Resale gains and DMF through ORA resales; and Cash flows
Slide 19: The issuer and guaranteeing group
The issuer and guaranteeing group iD) OCEANIA Listed entity Oceania Healthcare Limited is the issuer and the guaranteeing group includes entities owning and operating the care centres and retirement villages in the Group. Security structure as at 31 March 2021 e Oceania Healthcare Limited as Issuer
Slide 20: Security
Secu rity a9 OCEANIA The Bonds share the security provided by Oceania and the Guarantors on an equal ranking basis with Oceania’s bank lenders as provided by Oceania’s security trust deed. Financial positi 31 March 2021 (NZDm)? © Total assets as at 31 March 2021 of $1.9b, including investment tnanci
Slide 21: Covenants
Covenants Oceania maintains a conservative approach with significant headroom on the Loan-to-Valuation (LVR) covenant. e Key terms of the bond LVR include: LVR must not exceed 50%; If there is a breach of the LVR then: Oceania must, within 6 months of the date of a semi-annual compliance report bein
Slide 22: Offer Terms and Timetable
y t : : se, Offer Terms and Timetable
Slide 23: Key terms of the Offer
Key terms of the Offer a9 OCEANIA Retail Bond Off Details Issuer Oceania Healthcare Limited Description of the Bonds Secured unsubordinated fixed rate bonds Payments on the Bonds are guaranteed by Oceania Village Company Limited, Oceania Care Company Limited CuErenisS and Oceania Group (NZ) Limited,
Slide 24: Key terms of the Offer (continued)
Key terms of the Offer (continued) DD OCEANIA Retail Bond Off Details Bondholders have no right to require Oceania to redeem the Bonds prior to the Maturity Date, except in the case of an Event of Default (as described in the trust documents for the Bonds). Oceania may elect (at its discretion) to r
Slide 25: Key dates of the Offer
Key dates of the Offer ig) OCEANIA Event Date Opening date Monday, 30 August 2021 Closing date Friday, 3 September 2021 at12.00pm Rate set date Friday, 3 September 2021 Issue date and allotment date Monday, 13 September 2021 Expected date of initial quotation Tuesday, 14 September 2021 Maturity date
Slide 26: Appendices
01 02 03 ou (He) OCEANIA Portfolio summary Directors Management team Glossary 26
Slide 27: Portfolio summary
O1 Portfolio summary Portfolio summary as at 31 March 2021.! Site Region Carebeds Caresuites Villageunits _Total Site Region Carebeds Caresuites Villageunits _Total Totara Park Rodney . . 30 30 Marina Cove Picton - . 22 22 The Sands North Shore 5 44 64 108 Green Gables Nelson - él 40 101 Greenvalley
Slide 28: Directors
O2 Directors Elizabeth Coutts Chair and Independent Director ONZM, BMS, FCA Liz Coutts has been a Director of Oceania since 5 November 2014 and was appointed Chair in 2014. Liz is also the Chair of Skellerup Holdings Limited and EBOS Group Limited. Lizis a Fellow of Chartered Accountants Australia a
Slide 29: Management team
O03 Management team Brent Pattison Chief Executive Officer BBS, CAANZ Kathryn Waugh Chief Financial Officer BSci (Hons), CA Anna Thorburn Group General Counsel BA, LLB (Hons) Rodney Scott General Manager Operations BBS, CAANZ, PRINCE2 Dr Frances Hughes Group General Manager, Clinical and Care Servic
Slide 30: Glossary
O4 Glossary Bonds Offer of bonds described in this presentation. Brownfield Development Development of integrated aged care and retirement village facilities on land where operational facilities already exist. Care suite A room or studio certified for the provision of care by the Ministry of Health
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