Aspen Group Limited · ASX:APZ
Aspen — H1 FY2017 Earnings Presentation
24 slides from Aspen's earnings presentation, Feb 22, 2017
Slide 1: Aspen Group 1H FY17 Results Presentation
For personal use only Aspen Group 1H FY17 Results Presentation 21 February 2017 BIG4 Koala Shores Holiday Park 1
Slide 2: Agenda
For personal use only BIG4 Tween Waters Holiday Park 1 1H FY17 highlights 2 Performance review 3 Outlook Appendices 2
Slide 3: 1H FY17 Highlights
1H FY17 HIGHLIGHTS For personal use only Aspen has made significant progress executing its business plan • Statutory profit to $0.5 million Underlying • Operating profit1 of $2.5 million performance in • Corporate cost structure realigned to match business scale line with expectations • NAV per shar
Slide 4: Key Milestones
KEY MILESTONES For personal use only Post - APPF, Aspen has commenced building its affordable accommodation business 2H FY17 • Acquisitions – Tourist Parks o Barlings Beach o Koala Shores1 1H FY17 • Establish finance facility • Simplification of corporate structure & reduced corporate overhead • Con
Slide 5: Performance review
For personal use only 1 1H FY17 highlights 2 Performance review 3 Outlook Aspen Karratha Village Appendices 5
Slide 6: Key Performance Metrics
KEY PERFORMANCE METRICS For personal use only Performance reflects rebasing of group at lower scale. Expansion of portfolio underway 1 1H FY17 1H FY16 Change Revenue Operational Performance $m $m % • Portfolio revenue increased 10% due to Revenue 9.0 9.4 (4.7) distribution gains and full ownership f
Slide 7: Reconciliation of Statutory Performance to Operating Profit
RECONCILATION OF STATUTORY PERFORMANCE TO OPERATING PROFIT For personal use only 1 1H FY17 1H FY16 $m $m Statutory profit after tax 0.5 5.6 Tax benefit - - Statutory profit before tax 0.5 5.6 Profit / (loss) from discontinued operations 0.7 0.2 Revaluation of Properties 0.9 9.6 Fair value gain on de
Slide 8: Financial Position
FINANCIAL POSITION For personal use only Dec 16 Jun 16 Change • One acquisition (Tween Waters) settled Balance Sheet during 1H FY17 for $6.8 million. $m $m $m Two further properties under Property Assets1 86.8 80.0 6.8 Cash 36.7 48.8 (12.1) contract. Debt - - - Gearing % - - - • Cash utilisation of
Slide 9: Property Portfolio
PROPERTY PORTFOLIO For personal use only Acquisition of 3 additional tourism parks negotiated in 1H FY17 $140 m 30 June 2016 $m % Tourism / Retirement 40 46% Corporate 11 13% $120 m Industrial 29 33% Held for Sale 6 8% Total Property 86 100% $100 m $41 m $10 m Tourism $80 m 31 December 2016 $m % Ret
Slide 10: Accommodation Portfolio Details
ACCOMMODATION PORTFOLIO DETAILS For personal use only Four Tomago Mandurah Adelaide BIG4 Aspen Barlings BIG4 Koala Lanterns Van Gardens Caravan Tween Karratha Total Beach5 Shores6 Estate Village Estate Park Waters Village State NSW NSW WA SA NSW NSW NSW WA - Segment / Retirement Retirement 1 Retirem
Slide 11: Outlook
For personal use only Four Lanterns Estate 1 1H FY17 highlights 2 Performance review 3 Outlook Appendices 11
Slide 12: Operating Model
OPERATING MODEL For personal use only • Aspen continues to identify and pursue opportunities in our three existing sectors – Tourism, Retirement and Corporate • Our operating model enables expansion into adjacent sectors leveraging our capability in Operations, Development and Marketing / Distributi
Slide 13: Growth Opportunities
GROWTH OPPORTUNITIES For personal use only Earnings growth potential in line with 1H portfolio expansion • Aspen continues to have significant acquisition appetite • Cash of ~$32m was allocated to new portfolio assets during 1H FY17 o One tourism asset acquired during 1H – Tween Waters o Two further
Slide 14: Growth Opportunities (continued)
GROWTH OPPORTUNITIES (continued) For personal use only Expansion opportunities • Plans to intensify utilisation of Tomago Van Village and Four Lanterns Estate remain in progress o Four Lanterns DA has been approved allowing a further 28 sites to be added Development targeted to commence Oct – Dec 20
Slide 15: Business Outlook
BUSINESS OUTLOOK For personal use only Earnings outlook • FY17 distributable earnings1 expected to be in a range of 4.8 – 5.3 cps • Second half distribution range of 2.0 - 2.5 cps anticipated subject to satisfactory performance and funding requirements. • Acquisitions1 contracted in 1H FY17 are expe
Slide 16: Appendices
For personal use only Mandurah Gardens Estate 1 1H FY17 highlights 2 Performance review 3 Outlook Appendices 16
Slide 17: Aspen Accommodation Portfolio
ASPEN ACCOMMODATION PORTFOLIO For personal use only Portfolio clusters established on NSW Central and South Coasts Property NSW No. of sites Type 1 Four Lanterns Retirement 102 2 Tomago Retirement 156 3 Koala Shores Tourism 143 4 Tween Waters Tourism 108 5 Barlings Beach Tourism 259 Total 768 Proper
Slide 18: Acquisition – BIG4 Tween Waters Holiday Park
ACQUISITION – BIG4 TWEEN WATERS HOLIDAY PARK South Coast, NSW (7.5hrs South of Sydney) For personal use only Location - Far South Coast, adjacent Merimbula town centre (170kms south of Batemans Bay) Type - Beachfront, full tourist park with recently renovated cabins and water play park Scale –
Slide 19: Acquisition – Barlings Beach Holiday Park
ACQUISITION – BARLINGS BEACH HOLIDAY PARK South Coast, NSW (6hrs South of Sydney) For personal use only Location – Absolute beachfront adjacent to Tomakin Village 17km’s south of Batemans Bay Type – Beachfront, predominantly tourism park with Canberra, Sydney and local region client base Scale
Slide 20: Acquisition – BIG4 Koala Shores Holiday Park
ACQUISITION – BIG4 KOALA SHORES HOLIDAY PARK PENDING Central Coast, NSW (2hrs North of Sydney) For personal use only Location - 45km from Newcastle, 25km from Tomago Van Village – establishes NSW North Coach cluster Type - Full tourist park, water frontage, newly renovated cabins and excellent p
Slide 21: Four Lanterns: Expansion
FOUR LANTERNS: EXPANSION For personal use only Development to unlock significant 30% expansion of sites • Property purchased in January 2015 • Consists of 102 sites • Since acquisition, over 5% of sites have been purchased and recycled with modern homes • DA approved to add 28 residential sites • St
Slide 22: Operating Earnings
OPERATING EARNINGS For personal use only 1 1HFY17 1HFY16 $m $m Profit / (loss) from operations Accommodation - Aspen Group properties 3.4 3.5 - APPF management fees / equity - 2.0 Non-core 1.6 1.6 Total gross profit 5.0 7.1 Operating expenses (3.0) (4.0) Net Financial income / (expenses) 0.5 (0.4) O
Slide 23: Balance Sheet
BALANCE SHEET For personal use only Dec 16 Jun 16 $m $m Cash 36.7 48.8 Property Assets 1 86.8 80.0 Assets held for sale / other 2 11.4 11.7 Total Assets 134.9 140.5 Debt - - Other3 7.4 10.9 Total liabilities 7.4 10.9 Net assets 127.5 129.6 Net assets attributed to Aspen Group 127.5 129.6 NAV3 per sh
Slide 24: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Aspen Group (“Aspen”) and should not be considered in any way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anyth