Eureka Group Holdings Limited · ASX:EGH
Eureka — Investor Presentation (September 2017)
22 slides from Eureka's investor presentation, Sep 4, 2017
Slide 1: ASX release: updated Investor Presentation
Eureka Group Holdings Limited | ABN 57 097 241 159 P 07 5568 0205 F 07 5302 6605 E info@eurekagroupholdings.com.au www.eurekagroupholdings.com.au PO BOX 10819, SOUTHPORT BC, QLD 4230 GROUP HOLDINGS LIMITED LEVEL 2, 7 SHORT STREET, SOUTHPORT, QLD 4215 For personal use only For immediate release to th
Slide 2: Investor Presentation, Year ended 30 June 2017
Eureka Group Holdings Limited Investor Presentation Year ended 30 June 2017 September 2017 For personal use only 1
Slide 3: Index
Index For personal use only 1. 2017 Highlights 2. Eureka Business Overview 3. Key Financials 4. Market Sector Overview 5. Operations 6. Summary Appendix A Board and Senior Executives profiles Appendix B Substantial Shareholders 2
Slide 4: 2017 Highlights
1.0 2017 Highlights • Marked improvement of occupancy levels For personal use only following company wide strategy implemented in February 2017 that led to occupancy lifting to 89.6% from a base of 83-84% in the first half. • Strong profitability with EBITDA of $9.4m and Profit after tax of $6.5m. •
Slide 5: 2017 Highlights (cont.)
1.0 2017 Highlights • Recruitment of additional senior executives and separation of Board and Executive function to For personal use only allow each to fulfil its responsibilities. • Structural change to improve management structure, operations and governance of Eureka. • Strengthening of alliance b
Slide 6: Eureka Business Overview
2.0 Eureka Business Overview For personal use only STRATEGY ✓ Primary focus to provide low cost rental accommodation and limited associated care with a focus on independent retirees who are completely or primarily supported by the Australian Government pension and location allowances ✓ Target market
Slide 7: Key Financials
3.0 Key Financials The table below summarises the results for the year ended 30 June 2017 For personal use only ($'000) 30-Jun-17 30-Jun-16 • Revenue increased with larger portfolio. Total revenue (excluding revaluation gain of Investment property) 25,427 20,114 Operating expenses 17,058 11,687 • Op
Slide 8: Key Financials (cont.)
3.0 Key Financials (cont.) The table below summarises the balance sheet at 30 June 2017 For personal use only ($'000) 30-Jun-17 30-Jun-16 Assets Cash and cash equivalents 4,395 6,841 • Healthy balance sheet to pursue Trade and other receiveables 2,632 3,434 continued growth strategy. Inventories 7,6
Slide 9: Key Financials (cont.) - Cash Flows
3.0 Key Financials (cont.) • The table below summarises the Statements of Cash Flows for the year ended 30 For personal use only June 2017 30-Jun-17 30-Jun-16 CashFlows from Operating Activities • Positive operating cashflow Receipts from Customers 24,277 17,030 largely consistent with profit Paymen
Slide 10: Market Sector Overview
4.0 Market Sector overview For personal use only • Continuing ageing population provides strong platform for continued growth. • IBIS reports industry revenue to grow at compound annual rate of 10.1% over next 5 years • There is a significant majority of retirement village customers who fund their r
Slide 11: Market sector overview (cont.)
4.0 Market sector overview (cont.) • The ABS forecast the number of Australians ages over 65 years will increase from 3.6 For personal use only million today to 4.2 million in 2020 and will increase the 8.8 million by 2050 Total Population Aged 65-74 Aged 75-84 Aged 85+ 5.0 Cumulative Population Gro
Slide 12: Market sector overview (cont.)
4.0 Market sector overview (cont.) For personal use only • Australia’s growing pool of retirees is living longer – for people aged 65-69 years some 70% have <$100k in accumulated superannuation growing to 80% (70-74 years) and 90% (75 years +) 11
Slide 13: Market sector overview (cont.)
4.0 Market sector overview (cont.) For personal use only • Expanding gap in the market as other service providers move their product up in the market price and away from the rental option. • Recent trends of villages and also low cost alternatives including caravan parks move to the DMF and MHE mode
Slide 14: Operations
5.0 Operations For personal use only Eureka has created a strong operating base to enable economies of scale and scope to leverage further. • 36 villages under management (including owned villages) – over 2,000 units. • 27 of those villages with freehold land and building ownership. • Regional clust
Slide 15: Operations (cont.) - Earnings growth channels
5.0 Operations (cont.) Earnings Growth can be delivered through multiple channels For personal use only Acquisition Growth • Track record of successful acquisitions. • Pipeline of opportunities being managed. Organic Growth • Scope to expand existing sites with additional units. • Leverage local kno
Slide 16: Operations (cont.) - Complementary value creation
5.0 Operations (cont.) Complementary value creation opportunities have been pursued over recent years. Focus to extract value from these investments over short to medium term. For personal use only Terranora • Existing units currently earning rental income pending Council approval for individual sal
Slide 17: Summary
6.0 Summary For personal use only Only ASX listed company solely focused on providing affordable rental accommodation for seniors living independently. Demographic trends of ageing population and housing affordability strongly supports growth in Eureka target market. Strong financial performance in
Slide 18: Appendix A: Board and Senior Executive profiles
Appendix A Board and Senior Executive profiles For personal use only Robin Levison – Non Executive Chairman Robin Levison holds a Masters of Business Administration from the University of Queensland and is a Member of Chartered Accountants Australia and New Zealand. Robin has 15 years of Public Comp
Slide 19: Appendix A (cont.): Board and Senior Executive profiles
Appendix A (cont.) Board and Senior Executive profiles For personal use only Nirmal Hansra – Non-Executive Director Nirmal holds a Master of Commerce (Business Management) degree from University of NSW and is a Fellow of the Australian Institute of Company Directors, fellow of Chartered Accountants
Slide 20: Appendix A (cont.): Board and Senior Executive profiles
Appendix A (cont.) Board and Senior Executive profiles For personal use only Paul Cochrane – Chief Financial Officer (Appointed 28 June 2017) Paul Cochrane holds a Bachelor of Commerce from University of Queensland, is a Member of Chartered Accountants Australia and New Zealand and holds an REIQ Rea
Slide 21: Appendix B: Substantial Shareholders
Appendix B Substantial Shareholders For personal use only The substantial shareholders as notified to the ASX include: • Cooper Investors 10.695% • Tribeca Investment Partners 8.900% • Robin Levison (Non Executive chair) 5.620% • Lachlan McIntosh (Non Executive Director) 5.190% 20
Slide 22: Disclaimer & Contact Information
Disclaimer & Contact Information NO responsibility for contents of Presentation To the maximum extent permitted by law, Eureka Group Holdings Limited (ABN 15 097 241 159). its officers, advisers and representatives: For personal use only • make no representation, warranty or undertaking, and accept
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