Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — 10 months to 31 Marc Earnings Presentation
35 slides from Oceania Healthcare's earnings presentation, May 21, 2021
Slide 1: Results Presentation for the 10 Month Period Ended 31 March 2021
@ OCEANIA in better. RESULTS PRESENTATION FOR THE 10 MONTH PERIOD ENDED 31 MARCH 2021
Slide 2: Agenda
Agenda Introduction 10 month trading highlights Update on our strategy Update on developments Financial results Appendices 14 25
Slide 3: Introduction
Introduction He] OCEANIA This is the first results presentation since the change of balance date to 31 March. The focus of this presentation will be the 10 month period of trading to 31 March 2021 (410m2021”) with comparative 10 month period to 31 March 2020 (“10m2020” or prior corresponding period,
Slide 4: 10 month trading highlights
10 month trading highlights GD oceania Premium revenue and sales volumes were the key drivers of strong underlying earnings in the 10 months to March, each exceeded both pcp and 12 month FY2020. NZDm NZDm 63.8 63.5 33.1 eos 56.2 52.1 26.3 27.5 2019 2020 2020 2021 2019 2020 2020 2021 12 months to May
Slide 5: 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 1 Record sales volumes despite only 10 month period He] OC
Slide 6: 10 month trading highlights (continued)
10 month trading highlights (continued) GD oceania Developments continue to be delivered on time and we have supplemented our pipeline with two new acquisitions. Development pipeline progress Successful acquisitions and capital raise Final dividend declared 217 units and care suites delivered across
Slide 7: Update on our strategy
Update on our strategy He] OCEANIA Care The status of our care suite pipeline within the Brownfields Earnings Cycle. EBITDA/bed Maturity Consent Construct Commission Ramp Up $8-10k $0-5k - -$10-Ok | | $5-15k $20k+ Ld Le! T+2 T+3 Ty TH5 $5-15k >$15k Eden currently at Maturity Phase T+5 and consistent
Slide 8: Update on our developments
Update on our developments GD oceANiA Development progress in 10m2021 Future development on track FY2022 scheduled completion + Eden (49 apartments) completed in 75 ) April 2021 (post 10m2021). + Gracelands (18 villas) scheduled to complete 2HY2022. + 39 apartments at The BayView Stage 2b scheduled
Slide 9: Developments completed in the 10 months to March 2021
Developments completed 217 units and care suites completed in the 10 months to March 2021 Green Gables Nelson Completed in September 2020 € € Wa” Units (=) 61 @) 61 suites The BayView - Stage 2a Tauranga Completed in March 2021 Stage 2b scheduled to complete 2HY2022 nog] 3 5 Es ETT Units & Community
Slide 10: FY2022 scheduled completions
FY2022 scheduled completions 221 units and care suites scheduled for completion in FY2022, including Eden and Lady Allum. He] OCEANIA In FY2022 we also expect to complete 39 apartments at The BayView, 18 villas at Gracelands and 2 villas at Stoke. Eden Auckland Completed in April 2021 AQ Units & Com
Slide 11: Other developments under construction
Other developments under construction In total there are 394 units and care suites currently under construction, including Waimarie St and Awatere Stage 2 below Waimarie St Auckland Commenced construction in 10m2021 2 © Units N77 S| Care suites Awatere - Stage 2 Hamilton Scheduled to complete in FY2
Slide 12: Acquisitions
Acquisitions Waterford and Franklin to be settled in F¥2022 using the proceeds of our successful $100m capital raise completed in March 2021 Waterford Hobsonville Point, Auckland Existing 64 villas and 36 apartments with ~3,250sqm of development land. Settled in April 2022. ~6O0 Units & Care suites
Slide 13: Future outlook
Future outlook GD oceania 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. Existing portfolio 1,367 1,807 2,065 itis Care Units & [als Carebeds North Island 1,394 520 1,006 2,920 1,956 Premium its 8 South Island 413
Slide 14: Financial results
stetelateitel Results. a OCEANIA Income statement and segmental performance Cash flow statement Balance sheet Capital structure 14
Slide 15: Change in balance date
Change in balance date He] OCEANIA This is the first results presentation since the change of balance date to 31 March. The focus of this presentation will be the 10 month period of trading to 31 March 2021 (410m2021”) with comparative 10 month period to 31 March 2020 (“10m2020” or prior correspondi
Slide 16: Income statement
Income statement He] OCEANIA Total Comprehensive Income for the period of $167.8m with the largest contributor being the change in valuation assumptions driving fair value movements in IP and PP&E. The change is a reversion to assumptions prior to COVID-19. Summary of income statement Key IP and PP&
Slide 17: Underlying earnings
Underlying earnings GD oceania Underlying EBITDA of $56.2m for the 10 month period ended 31 March 2021. Reconciliation of underlying adjustments Segmental underlying adjustments NZDm 10m2021 FY2020 NZDm 10m2021 10m2020 Var FY2020 Reported Net profit after tax 85.5 (13.6) Aged Care (ex. care suite ma
Slide 18: Care segment
Care segment Our premiumisation strategy is delivering increased EBITDA per bed, with a 18% increase over He] OCEANIA pcp ($9,569 vs $8,129 in pcp). This increase is driven by increased DMF as our ramp up sites sell down and continue to mature; we recorded more DMF in 10m2021 than the 12 months in F
Slide 19: Village segment
Village segment Record sales volumes despite 10 month period. Village performance driven by increased DMF over both pcp and FY2020. Village underlying EBITDA NZDm 10m2021 10m2020 Var FY2020 Villa and apartment DMF 22.1 18.1 4.0 21.4 Retirement village service fees 52 5.0 02 6.0 Other revenue 24 27 (
Slide 20: Development margins
240 40.0% 180 30.0% 120 20.0% 60 10.0% - - FY2019 FY2020 2020 2021 • Villa Apartment Care Suite Development Margin • • • • • •
Slide 21: Resales - key indicators
Resales - key indicators GD oceania Resale prices increased for all ORA products over pcp and FY2020, most noticeably for villas and care suites. The increase in care suite pricing was reflected in resale margins, increasing to 18.7%. Resales volumes and margins Resales volume regional breakdown 240
Slide 22: Cash flow
Cash flow He] OCEANIA Strong operating cash flow of $96.0m for 10m2021 compared to $99.4m for the 12 months of FY2020. Operating cash flow was driven by first time sales proceeds of $92.7m. Statement of cash flows NZDm 410m2021 Fy2020 Receipts from customers 142.3 163.0 Payments to suppliers and emp
Slide 23: Balance sheet
Balance sheet Total assets increased by $335m from FY2020 driven by growth in the value of retirement village and care properties. Balance sheet He] OCEANIA Net adjusted value (“NAV”) As at Asat As at Asat NZDm 10m2021 FY2020 NZDm 10m2021 Fy2020 Assets Property, plant and equipment (including WIP) 6
Slide 24: Capital structure
Capital structure GD oceania Gearing of 23.9% as at 31 March 2021. Inaugural Retail Bond issuance ($125m) and Equity Raise ($100m) were well received and successfully completed with significant oversubscriptions. $80m of cash held at 31 March 2021 to be applied to the acquisitions of Waterford and F
Slide 25: Appendices
01 02 03 Ou 05 06 07 08 09 10 ia OCEANIA Portfolio summary Development pipeline Reconciliation of portfolio movements Summary of unit sales Embedded value Capital expenditure Reconciliation of resales cash flow Definition of Underlying NPAT Glossary Important notice and disclaimer 25
Slide 26: Portfolio summary
O1 Portfolio summary AD OCEANIA Portfolio summary as at 31 March 2021. Facility Region Carebeds Care suites Villageunits Total Facility Region Carebeds Caresuites Village units —‘Total Totara Park Rodney - - 30 30 Marina Cove Picton - - 22 22 The Sands North Shore = 44 64 108 Green Gables Nelson = é
Slide 27: Development pipeline
O02 Development pipeline Development pipeline status as at 31 March 2021. a OCEANIA Sites Stage Status ILUs Care suites Gross units Net units Notes Awatere (formerly Trevellyn) Under Construction 63 63 63 Scheduled for completion FY2023. Consented 7 7 71 The BayView (formerly Melrose) Stage 2b Under
Slide 28: Reconciliation of portfolio movements
O03 Reconciliation of portfolio movements He] OCEANIA Changes Conversion Conversion Changes in Changes in As at in existing of beds to of units to New units pipeline - gross pipeline - Asat Fy2020 capacity care suites care suites delivered units added decommissions 10m2021' Care beds 1,882 (36) (<>)
Slide 29: Summary of unit sales
O4 Summary of unit sales 12 months to 31 May a OCEANIA 10 months to 34 March 2021 2016 2017 2018 2019 2020 Villa 7 7 26 23 24 32 Apartment 20 20 47 53 51 Care suite 23 15 27 57 14 107 Total 60 52 100 133 189 194 Average development margin 19.2% 22.9% 33.5% 36.0% 33.1% 26.0% 2016 2017 2018 2019 2020
Slide 30: Embedded value
O5 Embedded value GD oceania The embedded value in our portfolio has increased 19.4% from FY2020 to $258.8m as at 31 March 2021 and will underpin the future realisation of cash flows from deferred management fees and resale gains. Embedded Value NZDm 300 2,400 258.8 250 ae 2,000 + Embedded value in
Slide 31: Capital expenditure
06 Capital expenditure Development capital expenditure in 10m2021 impacted by COVID-19 as sites ramped back up in the early months of the period. Breakdown of Capital Expenditure NZDm 10m2021 Fy2020 Acquisitions 19 - Development capital expenditure 87.5 117.3 Remediation expenditure - - Care convers
Slide 32: Reconciliation of resales cash flow
O7 Reconciliation of resales cash flow Reconciliation of resales cash flow NZDm 10m2021 FY2020 Receipts from New ORAs 14 181.3 less: Payments for Outgoing ORAs (52.2) (40.3) less: Cash Inflow From New Sales (92.7) (121.4) Net Resales Cash flow 26.5 19.6 Made up oft Resale Gains 179 1S DMF Realised 1
Slide 33: Definition of Underlying NPAT
O08 Definition of Underlying NPAT Underlying Profit (or Underlying NPAT) Underlying Profit is a non-GAAP measure used by the Group to monitor financial performance and is a consideration in determining dividend distributions. Underlying profit measures require a methodology and a number of estimates
Slide 34: Glossary
09 Glossary Care suite A room or studio certified for the provision of care by the Ministry of Health which has been licensed under an ORA. DMF Deferred Management Fees, charged under an ORA, of a maximum of 30% of the Occupation Licence Payment, which are deducted from the refund paid to the depart
Slide 35: Important notice and disclaimer
10 Important notice and disclaimer This presentation has been prepared solely by Oceania Healthcare Limited (’Oceania") You must read this disclaimer before making any use of this presentation and the accompanying material or any information contained in it (’Document"). The presentation includes no
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