Eureka Group Holdings Limited · ASX:EGH
Eureka — Investor Presentation (March 2017)
19 slides from Eureka's investor presentation, Mar 6, 2017
Slide 1: Investor Presentation
Eureka Group Holdings Limited Investor Presentation For personal use only March 2017
Slide 2: Overview of Eureka Group
Overview of Eureka Group • Eureka aims to provide the highest level of low cost rental accommodation and associated For personal use only care to independent retirees who are either completely or primarily reliant on the Australian Government Pension and Rent Assistance In Australia 77% of single pe
Slide 3: Company Snapshot
Company Snapshot Capital Structure¹ Share Price Performance For personal use only Share Price A$0.425 Shares Outstanding (m) 231.0 Market Capitalisation A$98.2M Cash (31-Dec-16) A$9.3M Debt (30-Jun-16) A$51.4M Directors & Senior Management Major Shareholders Robin Levison Non-Executive Chairman Nati
Slide 4: Market Primer: The Australian Retirement Industry
Market Primer: The Australian Retirement Industry • Eureka’s model caters to the 65+ year olds whose primary source of income is the full aged For personal use only pension and requires no upfront capital 77% of single people (over age 65) rely on pensions as their primary source of income High Dema
Slide 5: Market Primer: The Australian Retirement Industry (cont'd)
Market Primer: The Australian Retirement Industry (cont’d) • Through 2014 to 2015, retirement villages accounted for 18% of the A$17bn revenue spent For personal use only on aged care accommodation Low Penetration of Retirement Living in Australia Growth in Demand Anticipated Across Cities • Accordi
Slide 6: Business Units Overview
Business Units Overview The Eureka business model has three key business units: For personal use only • Real Estate Acquisition Team – The key to our Growth Strategy Searches regional Australia for low cost retirement villages or assets suitablefor re- purposing to low cost rental retirement accommo
Slide 7: Changes to Senior Management
Changes to Senior Management Eureka appointed Mr Jeff Weigh as the group’s Chief Executive Officer (CEO) in early February For personal use only 2017. The Board is confident Mr Weigh has the specific skills, vision and enthusiasm to continue Eureka’s next level growth pathway. Mr Weigh brings the fo
Slide 8: Key Operational Highlights
Key Operational Highlights Geographical Distribution of Villages For personal use only 35 villages under management 26 villages with freehold land and buildings owned NT 1,388 units owned QLD 19 Villages WA 2,069 units owned and/or managed SA 9 Villages 8-12 NSW villages to be acquired in next 12 mo
Slide 9: Eureka's Steady Growth Trajectory
Eureka’s Steady Growth Trajectory For personal use only • Eureka has grown over significantly the Units Owned/Managed (in units) last three years, with owned properties increasing 91% year-over-year in FY2016 • 200 low-cost rental accommodation assets identified and preliminary due diligence complet
Slide 10: Eureka's Ability to Improve Village Performance Post-Acquisition
Eureka’s Ability to Improve Village Performance Post-Acquisition • Historically earnings for all villages have increased since acquisition by Eureka For personal use only • Operating efficiencies and economies of scale benefits to continue to drive improved earnings Focus on increased rental rates,
Slide 11: Key Financial Highlights – December 2016
Key Financial Highlights – 31 December 2016 • Revenue, EBITDA and NPAT have continued to increase as a result of village acquisitions For personal use only completed during the period • Cost control focus and scale benefits have flowed through to margins and bottom line results • Strong balance shee
Slide 12: Pro Forma Annualised EBITDA
Pro Forma Annualised EBITDA For personal use only • The fourteen village acquisitions announced since 1 July 2015 are expected to contribute an additional $4.21 million to Eureka’s EBITDA on an annualised basis Pro Forma Annualised EBITDA ($000’s) Notes 1. Terranora village EBITDA adjusted to reflec
Slide 13: Growth Strategy
Growth Strategy For personal use only Acquisition Growth 1 Acquired 26 villages in last 30 months and is targeting a further 8-12 low-cost accommodation asset acquisitions in the next 12 months Organic Growth 2 Development on existing owned village sites will allow Eureka to develop more than 350 ad
Slide 14: Organic Growth – Brownfield & infill opportunities
Organic Growth – Brownfield & infill opportunities Many of Eureka’s villages have excess land which provides the opportunity for further For personal use only unit development: • Royal Terranora Resort – 150 unit ‘next generation’ retirement village • Couran Cove – 120 units • Existing owned village
Slide 15: Select Case Study – Royal Terranora Resort
Select Case Study – Royal Terranora Resort Terranora Village Redevelopment For personal use only Acquired in December 2015 for $7M, the planned re-development will include: • Sale of 80 existing rental units, delivering $14M in net cash • 80 units re-engineered to 60 large apartments • 27 contracts
Slide 16: Improving Performance – Broken Hill
Improving Performance – Broken Hill Shorty O’Neil Village For personal use only Acquired the 42-unit village in August 2016 for $1.05 million • Includes a community centre, separate office building and large commercial kitchen • On acquisition Village acquired on “Vacant Possession” terms (i.e. comp
Slide 17: Income Statement
Income Statement For personal use only Income Statement Change Revenue, EBITDA and NPAT have continued (in $000's, except per share amounts) 1H16 1H17 $ % to increase as a result of village acquisitions completed during the period Total Revenue 9,466 15,560 6,094 64% Operating Expenses (5,113) (8,12
Slide 18: Balance Sheet
Balance Sheet For personal use only Balance Sheet 30-Jun-16 31-Dec-16 Assets • Healthy balance sheet to pursue an Cash & cash equivalents 6,841 9,318 continued growth strategy. Trade and other receivables 3,434 1,713 Inventories 6,300 7,106 Other assets - current 819 755 • Improved working capital f
Slide 19: 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
Eureka Group Holdings — Investor Presentation (March 2017) on 6ix