Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — Investor Day (April 2016)
40 slides from Lifestyle Communities's investor day presentation, Apr 27, 2016
Slide 1: Growing Through Evolution: Investor Day Presentation
For personal use only Growing Through Evolution Investor Day Presentation 27 April 2016 LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 1
Slide 2: Agenda
AGENDA For personal use only Business Overview Growth Strategy Management Team • Marketing • Sales • Construction • Community Management • Land Acquisition • Finance Looking Ahead LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 2
Slide 3: Business Overview: Business Snapshot and Financial Summary
BUSINESS Business Snapshot Financial Summary OVERVIEW • Founded in 2003 1HFY2016 FY2015 For personal use only • Develop and manage land lease communities which generate long-term Net profit after tax attributable to shareholders $8.9m $16.7m sustainable revenue streams Total assets $204.3m $179.6m •
Slide 4: Community Locations
BUSINESS 12 communities in Focus remains OVERVIEW planning, development or in Victoria COMMUNITY under management For personal use only Victoria provides: LOCATIONS • Favourable planning legislation • Better access to zoned, flat land for development Community Homes Settled • Lowest saturation of la
Slide 5: Business Model
BUSINESS Lifestyle Communities aims The growing level of free cash flow from the OVERVIEW to recover 100% of its project community management business provides BUSINESS related costs from home sales the basis for future dividends For personal use only MODEL Development Business Community Management
Slide 6: Industry advocacy to promote land lease communities
BUSINESS Industry advocacy to promote Government is increasing their OVERVIEW land lease communities understanding of the land lease industry RLLA For personal use only • Member of the Residential Land Lease Alliance (RLLA) (James Kelly is RLLA’s inaugural chair) • Represents the land lease industry
Slide 7: The Land Lease Industry
BUSINESS Our focus remains in Victoria SA OVERVIEW 4 THE LAND For personal use only LEASE • There are 2,500 Residential Land Lease Communities INDUSTRY (RLLC’s) and caravan parks around Australia WA 10 • Of those: - 1,650 are pure tourist parks VIC - 750 are mixed use parks with tourists and 20 perm
Slide 8: Shifting the paradigm to grow sales and referrals
BUSINESS Shifting the paradigm to grow OVERVIEW sales and referrals GROWTH For personal use only STRATEGY • Business has been undergoing a paradigm shift on meeting and exceeding the expectations of our target customer • Our customer is getting younger with better knowledge of our brand • The baby b
Slide 9: Katrina Steel, Marketing Manager
KATRINA STEEL Marketing Manager For personal use only LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 9
Slide 10: Who is our customer?
BUSINESS Straddling two segments but focusing Lifestyle Communities’ business model is well EVOLUTION on the ageing baby boomer placed to capitalise on this emerging customer WHO IS OUR For personal use only CUSTOMER? War Generation Baby Boomer Generation (1925-1945) (1946-1964) • Aged 69-89 • Aged
Slide 11: Marketing Channels
NEWS BUSINESS Press EVOLUTION MARKETING For personal use only Radio TV CHANNELS NEWS Outdoor Press Website Digital ABOVE THE LINE Evolved to BELOW THE LINE Industry Expos Events Mass Direct Mail Referral Digital CRM PR Evolved from mass marketing Sponsorship to targeted communications LIFESTYLE COMM
Slide 12: Case Study: Lifestyle Berwick Waters
BUSINESS Paradigm shift resulting in EVOLUTION increased pre-sales CASE STUDY: For personal use only LIFESTYLE BERWICK OLD PARADIGM NEW PARADIGM WATERS Create collateral Integrated VIP registration campaign Launch/Open the door Visualisation packs Above the line communication Exclusive launch with g
Slide 13: Richard Parker, Sales Manager
RICHARD PARKER Sales Manager For personal use only LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 13
Slide 14: Sales Approach
BUSINESS Arming the sales team with the skill, EVOLUTION tools and knowledge to increase sales SALES For personal use only APPROACH • Recruited and trained a highly empowered and motivated sales team • Armed with collateral and new skills to help our customer make an informed choice • Implementation
Slide 15: Cultural Shift
BUSINESS Nurturing a cultural shift EVOLUTION to drive sales CULTURAL For personal use only SHIFT • Nurturing a culture to increase employee engagement • Creating high respect for our customer • Changing our resourcing to match customer needs and traffic flows • Incentives to drive sales and broader
Slide 16: Sales Update
BUSINESS New homes - Resale homes - EVOLUTION net sales commitments net sales commitments SALES UPDATE For personal use only 1HFY2016 2HFY2016 Total Total % sold FY2016 FY2015 Homes for to date(1) FY2016 FY2015 YTD(1) sale(1) to date Brookfield - - - - 100% 2 20 - Tarneit - - - - 100% 5 4 - Warragul
Slide 17: Michael Imbesi, Construction Manager
MICHAEL IMBESI Construction Manager For personal use only LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 17
Slide 18: Construction Approach
BUSINESS Finding better ways to build and EVOLUTION exceed customer expectations CONSTRUCTION For personal use only APPROACH • Evolved and trained the project management team to deliver a high quality product and customer service • Evolved our single builder strategy with Todd Devine • Evolved syste
Slide 19: Housing
BUSINESS Over the past 13 years Lifestyle Communities House designs have been EVOLUTION has continued to evolve the business to meet simplified with improved HOUSING the emerging customer base finishes For personal use only LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EV
Slide 20: Communal Facilities
BUSINESS Clubhouse designs have Urban design has focused on EVOLUTION progressively modernised connectivity and landscaping COMMUNAL For personal use only FACILITIES LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 20
Slide 21: Community Designs
BUSINESS Every facet of our product EVOLUTION has evolved COMMUNITY For personal use only DESIGNS Urban Layout Entry Landscaping Clubhouse House Designs Ensure that the homes Create a sense of arrival Significant investment in Ongoing evolution with Evolving to meet the needs work together by varyin
Slide 22: Sam Cohen, Operations Manager
SAM COHEN Operations Manager For personal use only LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 22
Slide 23: Community Management
BUSINESS Homeowners empowered to treat EVOLUTION the community as their own COMMUNITY For personal use only MANAGEMENT • Team trained and empowered to deliver high level of customer service • Help seed the culture in every community through new services and activities • Shifted management style to o
Slide 24: Facilities Management
BUSINESS Maintaining and contemporising our EVOLUTION communities for the longer-term FACILITIES For personal use only MANAGEMENT • Ensuring our older clubhouses are progressively contemporised to keep pace with newer communities • Introduction of Facilities Management software to shift from reactiv
Slide 25: Chris Paranthoiene, Acquisition & Development Manager
CHRIS PARANTHOIENE Acquisition & For personal use only Development Manager LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 25
Slide 26: Land Channels
BUSINESS Creating new channels for the EVOLUTION acquisition of sites LAND For personal use only CHANNELS On-Market • Land for sale through expression of interest campaigns Off-Market • Developer relationships to buy super lots • Agent partnerships to source land • Direct approaches with land owners
Slide 27: Future Land Supply
BUSINESS Lifestyle Communities continually A rigorous acquisition strategy EVOLUTION performs detailed due diligence on de-risks community roll-outs FUTURE LAND Victoria’s growth corridors to source sites For personal use only SUPPLY • Focusing on opportunities in Victoria to capitalise on the lack
Slide 28: Why Geelong?
BUSINESS Geelong meets all the criteria EVOLUTION to accommodate further communities WHY For personal use only GEELONG? • Large population fitting our demographics with a wider population of 210,874 and 48,219 (or 23%) aged over 60 • Median house price of $430,000 (December 2015) up 5.6% from 2014 •
Slide 29: Geoff Hollis, CFO
GEOFF HOLLIS CFO For personal use only LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 29
Slide 30: Finance Approach
BUSINESS Finance team EVOLUTION has a service mentality FINANCE For personal use only APPROACH • Evolution of financial modelling and reporting systems to meet the needs of stakeholders • Efficiency gains to meet the growing transactional volume whilst ensuring staffing levels are appropriate • Tran
Slide 31: Debt Re-financing
BUSINESS New corporate facility provides PREVIOUS POSITION EVOLUTION greater flexibility to plan the DEBT construction of new communities For personal use only RE-FINANCING • In August 2015 the Company entered into a five year, $80 million facility with Westpac to replace existing core and developme
Slide 32: James Kelly, Managing Director: Looking Ahead
JAMES KELLY Managing Director For personal use only Looking Ahead LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 32
Slide 33: Looking Ahead
BUSINESS Business focused on increasing sales Total team alignment EVOLUTION and customer experience with these outcomes LOOKING For personal use only AHEAD • Management team recently visited Queensland to hold workshops with leading operators • The new CRM system will create a paradigm shift on mar
Slide 34: Customer Referral
BUSINESS Every touch-point EVOLUTION drives customer referral CUSTOMER For personal use only REFFERAL Brand Sales Above the line Construction Marketing Process 33% Referral rate for sales (1) Home Website Handover Community Community Management Induction Set organisational goal of 50% referral rate
Slide 35: Sales Rates
BUSINESS “Proof is in the pudding” EVOLUTION Increasing the sales rate SALES RATES For personal use only • Lifestyle Communities’ focus has shifted to SALES PROFILE FROM DATE OF FIRST SALE (TREND LINES) improve pre-sales. This reduces risk by supporting a more aggressive construction program which S
Slide 36: Settlement Goals
BUSINESS Settlements growing with increased EVOLUTION sales rates and new projects SETTLEMENT For personal use only FY2016 FY2017 FY2018 GOALS - settlement settlement settlement NEW SALES range range range TOTAL 195-210 250-270 260-290 Warragul 1 - - Cranbourne(1) 2 - - Shepparton 48-52 40-55 40-55
Slide 37: Lifestyle Geelong
BUSINESS Lifestyle Geelong EVOLUTION over 42% sold LIFESTYLE For personal use only GEELONG • Community over 42% sold and 14% settled as at 22 April 2016 • Average home sale price: $306,444 (GST incl.) • Over 78% of sales have come from the local Geelong catchment • Average age of first 23 homeowners
Slide 38: Summary
BUSINESS Lifestyle Communities is EVOLUTION well-placed for future growth SUMMARY For personal use only • Business is continually evolving to get match fit for the baby boomer • Forecast between 195-210 settlements for FY2016 • Consistent with previous guidance profit after tax attributable to share
Slide 39: Important Notice and Disclaimer
IMPORTANT • This Presentation contains general background information about Lifestyle Communities only and should not be relied upon as (and is not) an indication of future performance. not to place undue reliance on forward-looking statements and LIC assumes no obligation to NOTICE AND Limited (LIC
Slide 40: Lifestyle Communities Limited contact details
For personal use only DOWNSIZE TO A BIGGER LIFE LIFESTYLE COMMUNITIES LIMITED Level 2, 25 Ross Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au LIFESTYLE COMMUNITIES LIMITED - Downsize to a bigger life GROWING THROUGH EVOLUTION 40