Eureka Group Holdings Limited · ASX:EGH
Eureka — Investor Presentation (August 2022)
31 slides from Eureka's investor presentation, Aug 30, 2022
Slide 1: FY22 Results Presentation
FY22 Results Presentation August 2022
Slide 2: Creating communities.
Eureka Group is a specialist owner and manager of rental retirement villages. Creating communities. 2
Slide 3: Contents
Contents About Results Review of Eureka Summary Operations Business Results Contact Priorities in Detail Details www.eurekagroupholdings.com.au 3
Slide 4: About Eureka
About Eureka www.eurekagroupholdings.com.au 4
Slide 5: Eureka overview
Eureka overview Eureka Group is a specialist owner and manager of rental retirement villages, focused on creating communities and empowering independence We provide essential social infrastructure, Our goal is to be the most trusted, scaled services and a sense of community for a provider of rental
Slide 6: Industry overview
Industry overview Key trends • Aging population with increasing 3.9 million Australians proportion of retirees reliant on Government pension 3.9m are retirees, with a further 0.5 million 2.15m RETIREES people intending to • Increasing demand for low-cost retire within five years1 quality rental acco
Slide 7: Strategic objectives
Strategic objectives Our mission Deliver sustainable growth in shareholder returns To be the most trusted provider of within a robust ESG framework rental retirement communities Expand the business through: Our values • disciplined acquisitions, brownfield value-add and greenfield ‘build-to-rent’ de
Slide 8: Village locations
Village locations as at 30 June 2022 2,507 44 Units under Villages management 254 5 861 14 25 1,392 Owned Managed Owned Managed Joint Venture Owned Managed Joint Venture www.eurekagroupholdings.com.au 8
Slide 9: Results Summary
Results Summary www.eurekagroupholdings.com.au 9
Slide 10: FY22 overview
Growing maintainable earnings and asset values FY22 overview while enhancing the operating platform Profit after tax 1 Revenue from operations Underlying EBITDA 1 Valuation uplift 1 $8.2m $29.7m $10.51m $9.9m + 30% $10.57m [FY21] Before a $7.15m loss on change + 8% in fair value of Lismore, NSW vill
Slide 11: FY22 Overview: Flood in Lismore, NSW
FY22 Overview Flood in Lismore, NSW Total assets Borrowings Net operating cash flow Eureka's Board and Management were saddened by the devastating floods in NSW and Qld during 2022. $183m $70m $8.3m Residents and staff were evacuated safely when the Lismore Village was inundated by record flood wate
Slide 12: Review of Operations
Review of Operations www.eurekagroupholdings.com.au 12
Slide 13: Operating platform
Operating platform Occupancy and Team Safety, Revenue Culture and Risk and Technology Initiatives Engagement Compliance and Brand ESG • Resident First culture driving • Continued investment in • Regular review of risk • Analysis of key processes • Implementation of a fit for sustainable occupancy an
Slide 14: ESG overview
ESG overview Social Environmental Governance ESG Committee Actions: established to: Resident First Solar energy Ethical business practices ERIAS Group, an • oversee the implementation environmental and social of ESG programs and impact management One team Waste management Risk mitigation systems mea
Slide 15: ESG activity
ESG activity Social Environmental Governance focus initiatives practices • Empowering the wellbeing • Committed to energy conservation through a • Ethical business principles and and independence of residents in continuation of our village solar program embedded governance practices a safe, secure a
Slide 16: Growth in revenue and unit numbers
Growth in revenue and unit numbers $35M 3,000 Increased revenue $30M 2,500 • Organic growth and acquisition $25M Total Revenue & Other Income 2,000 Dedicated occupancy focus $20M • Local networking and village reputation in communities Unit Numbers 1,500 $15M Portfolio rationalisation 1,000 • Since
Slide 17: Maintaining Underlying EBITDA while investing in people to scale operations
Maintaining Underlying EBITDA1 while investing in people to scale operations Underlying EBITDA1 $14M 45% 40% $12M • FY22 in line with FY21 despite $0.3m impact of the Lismore flood 35% $10M • Essential investment in people and resources has reduced Underlying EBITDA Margin % 1 30% Underlying EBITDA
Slide 18: Portfolio summary
Portfolio summary Unit Numbers Village contribution 1 Asset Values at 30 June 2022 (excluding revaluations) at 30 June 2022 FY22 FY21 $12M $6M 254 $14.4M $12.7M 861 1,392 $160M $1.6M $1.6M $1.0M $1.0M Owned Managed Joint Venture (50%) Owned Managed Joint Venture (50%) Owned Managed Joint Venture (50
Slide 19: A disciplined approach to portfolio acquisitions
A disciplined approach to portfolio acquisitions Acquisitions Developments Villages Management & letting rights Village expansion Greenfield development Brassall QLD $6.5m Oxford Crest QLD $6.1m Wynnum QLD Kingaroy QLD $0.7m +59 units plus development land Portfolio +330 managed units +22 units Site
Slide 20: Ongoing portfolio enhancements
Ongoing portfolio enhancements Capital recycling & disposals Village improvements Villages Units in managed villages Orange, NSW Townsville, QLD $3.0m Sale of 14 units, QLD $1.1m Repositioned resident profile Sale of two villages comprising Majority settled August 2021 32 units Unit & Common area re
Slide 21: Acquisition outlook
Acquisition outlook Widely-held ownership and high demand markets provide acquisition and greenfield opportunities • We take a disciplined approach to acquisitions and integration into the portfolio • Eureka has the opportunity to consolidate the affordable rental retirement sector utilising its man
Slide 22: Capital management
Capital management Dividends Key dates Debt facility Capital FY22 final dividend Ex-dividend date Expiry • Proactive portfolio management 15 September 2022 31 March 2024 • Capital management planning 0.63c per share Record date Limit to accelerate growth • Dividend reinvestment plan (DRP) operative
Slide 23: Business Priorities
Business Priorities www.eurekagroupholdings.com.au 23
Slide 24: FY23 priorities
FY23 priorities GROWTH TECHNOLOGY Deliver further earnings accretive Implement preferred technology systems acquisitions. Development opportunities across all business units have been identified in high demand regional markets RESIDENT EXPERIENCE INITIATIVES Continue investment in key areas to enhan
Slide 25: Results in Detail
Results in Detail www.eurekagroupholdings.com.au 25
Slide 26: Profit and loss
Profit and loss • Profit after tax increased by 30% to $8.17m • 7.9% increase in total revenue driven by acquisitions and organic rental growth • Average village occupancy exceeded 98% across the portfolio. Period end occupancy of 98% due to active portfolio management • Profit growth driven by net
Slide 27: Balance sheet
Balance sheet • Strong balance sheet with financial capacity for expansion • Weighted capitalisation rate for investment properties firmed to 9.43% (FY21: 9.92%) • Investment property – $20.6m net increase due to: o Acquisitions - Brassall, Kingaroy and Bowen (Qld) o Wynnum, Qld expansion o Net gain
Slide 28: Cash flow
Cash flow • Reliable operating cash flows • Net cash from operating activities was $8.3m (+5.5% on FY21), noting the following items: o Net insurance proceeds1 of $0.7m for the Lismore flood event (FY21 - $nil) exceed the estimated loss of earnings from the property in FY22 ($0.3m) o Joint venture d
Slide 29: Definitions
Definitions Balance sheet gearing Underlying EBITDA Calculated as net debt (being interest-bearing drawn debt net of cash) divided An unaudited non-IFRS measure that represents the operating performance by net debt plus equity of the Group and excludes valuation adjustments, asset disposals and cert
Slide 30: Disclaimer
Disclaimer No responsibility for contents of presentation No offer to sell or invitation to buy To the maximum extent permitted by law, Eureka Group Holdings Limited This Presentation does not, and should not be considered to, constitute or form (ABN 15 097 241 159) its officers, advisers and repres
Slide 31: Contact details
Contact details Eureka Group Holdings Limited ABN 15 097 241 159 REGISTERED ADDRESS Suite 2D, 7 Short Street Southport QLD 4215 BRISBANE OFFICE Level 5, 120 Edward Street Brisbane QLD 4000 POSTAL PO Box 10819 Southport BC QLD 4215 T: 07 5568 0205 E: info@eurekagroupholdings.com.au www.eurekagrouphol
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