Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — H1 FY2021 Earnings Presentation
34 slides from Oceania Healthcare's earnings presentation, Jan 21, 2021
Slide 1: Results Presentation for the Financial Half Year Ended 30 November 2020
Results Presentation for the Financial Half Year Ended 30 November 2020
Slide 2: Agenda
Agenda 01 02 03 04 o5 Highlights of IHY2021 Update on our Strategy Update on Developments Financial Results Appendices @ OCEANIA HEALTHCARE 14 24
Slide 3: 1HY2021 Highlights
1. Underlying EBITDA excludes the earnings from sites divested in FY2019. Refer to slide 16 for a reconciliation of Underlying Profit to Reported Net Profit After Tax.
Slide 4: 1HY2021 Highlights (continued)
1HY2021 Highlights (continued) ED ocean Our aged care business is demonstrating that it is past the point of inflection with improved occupancy and earnings per bed driven by premium recurring revenue streams. We have also recorded strong sales volumes post Covid-19. Aged Care is past the point of i
Slide 5: Dividends and highlights
● ● ● ● ● ● ● ● ● 1. 7 sites as at 30 November 2020. 2. The dividends are not imputed due to the availability of existing tax losses.
Slide 6: Executing our Strategy
Executing our Strategy ED ocean Care The status of our care pipeline within the Brownfields Earnings Cycle. H EBITDA/bed Maturity Ramp Up Consent Construct P| Commission $8-10k $5-0k me T-4 aa------------------------ + ‘ Edencurrently at Maturity | ! Phase T+4 and consistently Fa 1 L earning ~$23,00
Slide 7: On track to deliver our pipeline
On track to deliver our pipeline GDeoceans We are commencing and delivering developments in accordance with our pipeline. Development progress in 1HY2021 Future development on track Developments completed in 1HY2021 Consents obtained in 1HY2021 © Green Gables (61 care suites, 28 8 9 e Resource conse
Slide 8: Green Gables, Nelson
OCEANIA HEALTHCARE Green Gables, Nelson Green Gables Nelson Completed in 1HY2021 6 61 Care Suites
Slide 9: Waimarie St, Auckland
Waimarie St, Auckland Gece Waimarie St St Helier Auckland 6 31 Care Suites
Slide 10: The BayView, Tauranga
HEALTHCARE The BayView, Tauranga Gpocens The BayView Tauranga Scheduled to complete FY2021 a] 35 Apartments Remainder of Stage 2 scheduled for completion in FY2022
Slide 11: The Bellevue, Christchurch (formerly Windermere)
The Be lleu ue, Cc hristc hure h (formerly Windermere) @ OcrAN 1A The Bellevue Christchurch Scheduled to complete in FY2021 6 6 22 71 Apartments Care Suites
Slide 12: Eden completion scheduled for FY2022
OCEANIA HEALTHCARE Eden completion scheduled for FY2022. Community Centre 12
Slide 13: Future Outlook
Future Outlook GDeoceans Premium units and care beds have increased by over 70% in number since FY2017 (1,046 beds and units as at FY2017 compared to 1,797 beds and units as at IHY2021) Premium units and care beds; will more than double! to comprise 69% of our portfolio L----------- ponn-------- H P
Slide 14: Income statement and segmental performance
Income statement and segmental performance Cash flow statement Balance sheet Capital structure
Slide 15: Income statement and segmental performance
⚫ ⚫ ⚫ ⚫ 1. Fair value movement includes impact from right of use asset (Everil Orr village). This is a lease arrangement under which Oceania is the village operator. There is a corresponding rental expense of $3.3m (excluded from Underlying Profit). Note Everil Orr also contributed $1.1m to DMF reve
Slide 16: Underlying Profit reconciliation
⚫ ⚫ ⚫ ⚫ 1. Rental expense of $3.3m in 1HY2021 relates to the right of use asset at Everil Orr village. There is a corresponding credit in IP which is also removed as part of this adjustment. 2. “Other” is an aggregation of line items that are individually less than $2.0m and includes Gain on sale /
Slide 17: Care segment
1. Based on all occupied beds across all care sites, including facilities that are ramping up / down as a result of past / future development. 2. Development margin & resale gains on care suites are included within the Village Segment for underlying profit and statutory reporting purposes as the ORA
Slide 18: Village segment
Village segment @ecer’ The village segment has rebounded strongly since the Covid-19 Alert Level 4 lockdown, underpinned by 44% growth in total sales volume from the prior corresponding period. Village Underlying EBITDA Villa and apartment DMF Revenue NZDm THY2021 1HY2020 Var FY2020 NzDm 31% CAGR 12
Slide 19: Village segment - key indicators
Village segment - key indicators He Toca Strong recovery in resales volumes and margins following a 2HY2020 period that was heavily impacted by Covid-19 Resales volumes and margins Resales volume regional breakdown 150 40.0% 53 30.3% . 30.3% 0 30.1% 46 38 90 50 60 5% 27 23 15. 21 19 18 171770 30 15
Slide 20: Developments - key indicators
Developments -— key indicators te Toco Continued strong growth in new sales volumes, with increasing regional mix driving lower relative development margins. New Sales Volumes and Margins New sales volume regional breakdown 200 50.0% 40.6% 46 47 160 40.0% al 39 120 30.0% 28 21 80 20.0% 18 14 10 " 40
Slide 21: Cash flow
Cash flow OCEANIA HEALTHCARE Operating cash flow of $74.6m for IHY2021 was ahead of the $57.0m in IHY2020 due to higher cash proceeds from ORA sales. Statement of cash flows Capital expenditure breakdown NZDm 1IHY2021 1HY2020_—s Var FY2020 NZDm 1HY¥2021 1HY2020 Receipts from customers 82.8 818 1.0 1
Slide 22: Balance sheet
● ● 1. Includes lease liabilities of $11.7m as at 1HY2021 ($14.0m as at 1HY2020).
Slide 23: Capital structure
Capital structure ED ocean HEALTHCARE Gearing of 32.3% as at 30 November 2020 down from 35.1% at FY2020. Inaugural Retail Bond issuance successfully completed in October 2020 raising $125m including full oversubscriptions of $50m Net Debt Credit metrics Debt facilities Facility limit ee Headroom Per
Slide 24: Appendices
Overview of Oceania Portfolio summary Development pipeline Reconciliation of portfolio movements Summary of unit sales Embedded value Reconciliation of resales cash flow Definition of Underlying NPAT Glossary Important notice and disclaimer
Slide 25: Overview of Oceania
1. Comprising 44 operating villages and 1 undeveloped site. Facility numbers as at 30 November 2020. 2. Includes 204 care studios which may be initially sold with a PAC, and may subsequently be sold under an ORA. 3. Current and planned developments as at 30 November 2020.
Slide 26: Portfolio summary (30 November 2020)
O02 Portfolio summary (30 November 2020) GDeoceans Care Care Village Care Care Village Facility Region Beds Suites Units Total Facility Region Beds Suites Units Total NORTH ISLAND SOUTH ISLAND Totara Park Rodney - - 30 30 Marina Cove Picton - - 22 22 The Sands North Shore - 44 64 108 Green Gables Ne
Slide 27: Development pipeline
03 Development pipeline Development pipeline status as at 30 November 2020 OCEANIA HEALTHCARE Care Gross Sites Stage Status ILUs Suites Units Net Units Notes Meadowbank Stage 6 Consented - 36 36 36 Awatere (formerly Trevellyn) Stage 2 Under Construction 63 = 63 63 Stage 3 Consented vi) - vil vi) The
Slide 28: Reconciliation of portfolio movements
1. Changes in capacity and pipeline now includes forecast care suite conversions in the pipeline. Totals for 1HY2021 reconcile to both the total existing and future post development portfolios on slide 25.
Slide 29: Summary of unit sales
05 Summary of unit sales Qe OCEANIA HEALTHCARE. New Sales IHY2018 2HY2018 1HY2019 2HY2019 1HY2020 2HY2020 1HY2021 Villa 9 7 7 6 3 21 16 Apartment 7 40 24 29 26 25 44 Care Suite 7 20 24 33 55 59 85 Total 23 77 65 68 84 105 145 Average development margin 36.4% 32.8% 29.5% 40.6% 36.6% 29.7% 24.6% Resal
Slide 30: Embedded value
⚫ ⚫ ̶ ̶ ⚫ 1. Calculated as the current/estimated sale or resale price of all units/care suites as determined by CBRE. 2. Value of unsold stock represents the sales prices of units/care suites which are not under contract, as they either are newly constructed or have been bought back from the previou
Slide 31: Reconciliation of resales cash flow
1. Net Buybacks is the difference between the gross ORA payments made in relation to units bought back (and not resold) during the year and the gross ORA receipts from units resold during the year that were bought back in prior financial years.
Slide 32: 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 33: Glossary
09 Glossary CAGR Compound annual growth rate Care Suite A room or studio certified for the provision of care by the Ministry of Health which has been licensed under an ORA. Continuing Operations Earnings from continuing operations excludes the earnings from sites divested in FY2019 in all reporting
Slide 34: 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