Summerset Group Holdings Limited · NZX:SUM
Summerset — FY2011 Earnings Presentation
28 slides from Summerset's earnings presentation, Feb 29, 2012
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION YEAR ENDED 31 DECEMBER 2011 SUMMERSET GROUP HOLDINGS LIMITED 29 February 2012 0
Slide 2: Agenda
AGENDA 2 FY11 Result Highlights 5 Business Overview 19 Financial Results 26 Appendices 1
Slide 3: FY11 Result Highlights
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Slide 4: FY11 Result Highlights
FY11 RESULT HIGHLIGHTS AHEAD OF IPO FORECASTS AND STRONGLY UP ON FY10 FY11 Actual vs. FY11 NZ$000 FY11 Actual FY11 IPO Forecast FY10 Actual IPO Forecast New sales of occupation rights 108 102 +5.9% 80 Operational Resales of occupation rights 123 116 +6.0% 105 New units delivered 122 121 +0.8% 80 Net
Slide 5: FY11 Result Highlights: Ahead of IPO Forecasts on All Key Metrics
FY11 RESULT HIGHLIGHTS AHEAD OF IPO FORECASTS ON ALL KEY METRICS ■ Strong growth in year on year performance versus FY10 results ■ Operational performance in all key areas exceeded IPO forecasts ■ FY11 Underlying NPAT of $8.1m, up 35% on IPO forecast, due to very strong second half performance: ■ Hi
Slide 6: Business Overview
BUSINESS OVERVIEW 5
Slide 7: FY11 Review
FY11 REVIEW 2011 WAS A MILESTONE YEAR FOR SUMMERSET ■ IPO completed in November 2011 ■ $123m equity raised from approximately 1,200 new shareholders ■ $50m of new equity raised to accelerate Summerset’s growth ■ “Best Retirement Village Operator in Australasia 2011” – second year in a row ■ Completi
Slide 8: Summerset Snapshot
SUMMERSET SNAPSHOT THIRD LARGEST OPERATOR, SECOND LARGEST DEVELOPER ■ 1,486 retirement units (villas, apartments and care apartments) ■ 327 care beds ■ Over 1,700 residents ■ 122 units delivered in FY11 ■ On track to deliver 155 units in FY12 7
Slide 9: Summerset Strategy
SUMMERSET STRATEGY SUMMERSET BUILDS, OWNS AND OPERATES RETIREMENT VILLAGES IN NZ ■ Focus on continuum of care model ■ Internal development model ■ Nationwide brand offering ■ Customer centric philosophy – “we love the life you bring to us” ■ Respect for everyday New Zealanders 8
Slide 10: Demographics
DEMOGRAPHICS POPULATION OVER 75 YEARS FORECAST TO DOUBLE BY 2031 POPULATION GROWTH 75 YEARS AND OVER 600,000 12% 500,000 10% 400,000 8% 300,000 6% 200,000 4% 100,000 2% 0 0% 2011 2016 2021 2026 2031 NZ population 75+ % of population 75+ Source: Statistics New Zealand (left hand axis) (right hand axi
Slide 11: Summerset Growth
SUMMERSET GROWTH IPO Forecast 13 YEARS OF CONSISTENT DELIVERY AND GROWTH 2,000 1641 1,600 1486 155 1352 122 1272 80 Retirement Units 1,200 1109 163 983 126 921 62 795 126 800 732 63 652 1486 80 1364* 528 1272 124 470 1109 407 58 983 63 921 400 732 795 219 188 652 528 129 470 407 90 219 129 129 0 199
Slide 12: FY11 Development Activity
FY11 DEVELOPMENT ACTIVITY DELIVERY OF 122 UNITS IN FY11 ACROSS FIVE SITES ■ 122 units delivered across five villages – in line with IPO forecast of 121 units Unit delivery FY11 Actual ■ Two main building constructions commenced Villas ■ Acquired Nelson site September 2011 and delivered 26 units on t
Slide 13: FY11 Development Activity
FY11 DEVELOPMENT ACTIVITY DELIVERY OF 122 UNITS IN FY11 ACROSS FIVE SITES Hamilton Manukau Nelson 12 Hastings Warkworth
Slide 14: Future Development
FUTURE DEVELOPMENT LAND BANK OF 1,052 RETIREMENT UNITS AND 240+ CARE BEDS ■ Land bank of 1,052 retirement units spread across brownfield and greenfield Land bank – as at 31 December 2011 sites Total ■ Additional pipeline of 240+ care beds across existing sites Care Villas Apartments Retirement Care
Slide 15: Development Margin
DEVELOPMENT MARGIN REALISED DEVELOPMENT MARGIN $2.3M VERSUS IPO FORECAST $2.1M ■ Increased development margin ■ Development process largely internal now REALISED DEVELOPMENT MARGIN ■ Project management and cost management internal now for 2 years 6 12% ■ In house design team employed in FY11 10.5% 5
Slide 16: New Sales of Occupation Rights
NEW SALES OF OCCUPATION RIGHTS NEW SALES OF 108 OCCUPATION RIGHTS VERSUS IPO FORECAST OF 102 ■ New sales of occupation rights up versus IPO forecast: FY11 Actual FY11 IPO FY12 IPO FY11 Actual vs. FY11 IPO ■ Gross proceeds: $37.3m, 6.8% over IPO forecast Forecast Forecast Forecast ■ Occupation rights
Slide 17: Resales of Occupation Rights
RESALES OF OCCUPATION RIGHTS RESALES OF 123 OCCUPATION RIGHTS VERSUS IPO FORECAST OF 116 ■ Resales of occupation rights up versus IPO forecast: FY11 Actual FY11 IPO FY12 IPO FY11 Actual vs. FY11 IPO ■ Realised resale gains: $7.5m, 23% over IPO forecast Forecast Forecast Forecast ■ Occupation rights
Slide 18: Customer and Brand Focus
CUSTOMER AND BRAND FOCUS BEST RETIREMENT VILLAGE OPERATOR IN AUSTRALASIA 2011 ■ Customer centric approach ■ Focus on “love the life you bring to us” – a celebration of age ■ “Best Retirement Village Operator in Australasia 2011” – second year in a row ■ Leading customer offering: ■ Summerset Sure –
Slide 19: Operations and Staff
OPERATIONS AND STAFF DEDICATED AND COMMITTED OPERATIONS TEAM ■ All caregivers now receiving nationally recognised NZQA qualifications in health, disability and aged support ■ Specialised training and induction for all Summerset staff ■ Cook fresh introduced across all sites 18
Slide 20: Financial Results
FINANCIAL RESULTS 19
Slide 21: FY11 Reported Profit (IFRS)
FY11 REPORTED PROFIT (IFRS) IFRS NPBT UP 2.3% VERSUS IPO FORECAST ■ FY11 revenue up 11% versus FY10 excluding one-off uplift of FY11A v DMF in 2010 of $3.9m FY11 FY11 FY10 NZ$000 FY11 IPO Actual IPO Forecast Actual Forecast ■ Fair value movement on investment property lower than IPO forecast due to
Slide 22: FY11 Underlying Profit
FY11 UNDERLYING PROFIT UNDERLYING NPAT $8.1M, UP 35% VERSUS IPO FORECAST ■ Strong Underlying NPAT performance FY11A v FY11 FY11 NZ$000 FY11 IPO ■ Key drivers are: Actual IPO Forecast Forecast ■ Higher realised gains on resales Reported profit after tax 4,324 4,994 -13% ■ Higher development margin Le
Slide 23: FY11 Cash Flows
FY11 CASH FLOWS NET OPERATING CASH FLOW $43.7M UP 14% VERSUS IPO FORECAST FY11A v ■ Strong operating cash performance FY11 FY11 NZ$000 FY11 IPO FY10 Actual IPO Forecast Forecast ■ Operating cash performance driven by: Care fees and village services 25,093 23,361 +7.4% 23,371 ■ Sales of occupation ri
Slide 24: FY11 Balance Sheet
FY11 BALANCE SHEET TOTAL ASSETS OF $617M UP 15% FROM $537M IN FY10 FY11A v ■ Net asset growth of 34% from FY10 FY11 FY11 NZ$000 FY11 IPO FY10 Actual IPO Forecast ■ Investment property valuation of $557m Forecast Investment property 557,140 552,283 +0.9% 495,766 ■ Other assets include land and buildi
Slide 25: Questions?
BE SUMMERSET SURE QUESTIONS?
Slide 26: Disclaimer
DISCLAIMER This presentation may contain projections or forward looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward looking stat
Slide 27: Appendix
APPENDIX 26
Slide 28: Existing Portfolio at 31 Dec 2011
EXISTING PORTFOLIO AT 31 DEC 2011 1,486 EXISTING RETIREMENT UNITS AND 327 CARE BEDS Existing Portfolio– as at 31 December 2011 Total Retirement Villas Apartments Care Apartments Care Beds Units Wanganui 70 18 12 100 37 Paraparaumu 92 12 10 114 40 Palmerston North 90 12 - 102 41 Havelock North 94 18
Summerset Group Holdings — FY2011 Earnings Presentation on 6ix