Slide 1: Qualitas Limited – FY22 Results Presentation (ASX Announcement)
ASX Announcement Qualitas Limited (ASX: QAL) 18 August 2022 Qualitas Limited – FY22 Results Presentation Qualitas Limited (ASX: QAL) provides the attached FY22 Results Presentation. Authorised for release by the Board of Directors of the Company. For more information, please contact: Investor Enquir
Slide 2: Full Year Financial Results Presentation
QUALITAS (ASX: QAL) Full Year Financial Results Presentation 30 June 2022 18 August 2022 FULL YEAR FINANCIAL RESULTS JUNE 2022 1
Slide 3: Acknowledgement of Country
Acknowledgement of Country Qualitas acknowledges the Traditional Owners of the land on which we work, and we pay our respect to Elders past and present. FULL YEAR FINANCIAL RESULTS JUNE 2022 2
Slide 4: Agenda and presenters
Agenda and presenters FY22 Highlights and Market 1 Outlook ANDREW SCHWARTZ 2 Funds Management Group Managing Director and Co-Founder 3 ESG Initiatives KATHLEEN YEUNG Global Head of Corporate Development 4 FY22 Financial Results 5 Strategy and Outlook PHILIP DOWMAN Chief Financial Officer A Supplemen
Slide 5: FY22 Highlights and Market Outlook
| FY22 Highlights and Market Outlook FULL YEAR FINANCIAL RESULTS JUNE 2022 4
Slide 6: Fund creation capability driving momentum in growth
Fund creation capability driving momentum in growth Strong performance in FY22 exceeding Prospectus expectations and well positioned for FY23 Group highlights $36.6m 48.1% $23.5m $309m 4cps FY22 Group EBITDA1 FY22 EBITDA Margin1 Statutory FY22 NPBT Cash on Balance Sheet FY22 Dividend +83% – FY21 +12
Slide 7: Year in review
Year in review Strong deployment driving financial outperformance amidst market transition favouring well capitalised alternative financiers • IPO resulted in strong brand recognition • Strong deployment whilst maintaining a disciplined approach in investment selection and underwriting • Continued f
Slide 8: Qualitas is well-positioned in the current economic cycle
Qualitas is well-positioned in the current economic cycle Our unique focus on private credit and alternative / opportunistic equity strategies present a significant opportunity in the current economic environment Increasing interest in CRE private credit sector as investors hunt for yield protected
Slide 9: Key macroeconomic tailwinds
Key macroeconomic tailwinds CRE credit is a defensive asset class anticipated to benefit from increasing allocation from investors Credit funds return benefits from increasing BBSY1 Residential vacancy rates near all time lows across major cities3 73% of Committed FUM exposed to changes in interest
Slide 10: Execution of strategic priorities
Execution of strategic priorities Platform set up for accelerated growth in FUM underpinned by a strong balance sheet positioned to capitalise on both widening credit margins and attractive equity opportunities Deployment backed by market FUM growth momentum and Deploy IPO proceeds to drive tailwind
Slide 11: IPO proceeds driving significant FUM growth
IPO proceeds driving significant FUM growth Strategic deployment of IPO proceeds used to support FUM growth via co-investment and underwriting of seed assets into current and newly launched funds IPO proceeds underpinning the next phase of platform growth Illustrative FUM growth driven by IPO procee
Slide 12: Funds Management
| Funds Management FULL YEAR FINANCIAL RESULTS JUNE 2022 11
Slide 13: Continuous growth of FUM and capital deployment
Continuous growth of FUM and capital deployment Strong growth of Committed FUM and outperformance in capital deployment (exceeding both Prospectus and revised guidance) together demonstrate Qualitas’ track record of outperformance Committed FUM ($m) – exceeding historical growth1 Deployment ($m) – e
Slide 14: Committed FUM overview
Committed FUM overview Deploying capital across a diverse range of credit and equity strategies covering all stages of the real estate cycle Fund name Strategy Investment type FUM1 Structure Expiry2 QRI (ASX listed) Senior debt / mezzanine $600m ASX listed Perpetual QSDF Senior debt – diverse $639m
Slide 15: Supported by long term investors
Supported by long term investors Ongoing support from institutional investors accelerated since the IPO with top investors both re-committing their investments and committing capital across multiple fund strategies Investor composition by Committed FUM Top 10 investors by total commitment since 2013
Slide 16: ESG Initiatives
| ESG Initiatives FULL YEAR FINANCIAL RESULTS JUNE 2022 15
Slide 17: Platform growth underpinned by sustainability
Platform growth underpinned by sustainability Sustainability focus on selected initiatives to drive long-term value CARBON NEUTRAL MITIGATE CLIMATE CHANGE CARBON EMISSIONS MEMBER Environmental Recent achievement of carbon neutrality, Australia’s first Build-to-Rent REDUCTION confirmed via Climate Ac
Slide 18: FY22 Financial Results
| FY22 Financial Results FULL YEAR FINANCIAL RESULTS JUNE 2022 17
Slide 19: Group earnings
Group earnings Strong growth in Funds Management segment driving outperformance in FY22 Statutory NPBT ahead of Prospectus and guidance released in May 2022 P&L breakdown ($thousands) FY21 FY22 % chge % chge • Strong growth in funds management fees driven by increase in (yoy) (Prosp.) Committed FUM
Slide 20: Operating performance
Operating performance Consistently strong performance of Funds Management segment underpinned by growth in fee revenues and ongoing improvements in operational leverage demonstrating platform’s scalability Group revenue – track record of growth1 Performance metrics – improving operational leverage $
Slide 21: Balance sheet
Balance sheet Strong balance sheet well positioned to capitalise on widening credit margins and more attractive equity investment opportunities during market inflection period Qualitas Group balance sheet ($thousands) FY21 FY22 Assets • Increased cash position from IPO proceeds • Well-positioned to
Slide 22: Strategy and Outlook
| Strategy and Outlook FULL YEAR FINANCIAL RESULTS JUNE 2022 21
Slide 23: Executing to strategy
Executing to strategy Strategic deployment of IPO proceeds used Diversity of deployment capital capturing to support FUM growth opportunities across CRE risk spectrum IPO as catalyst for QAL to secure Continue to evidence real impact through significant mandates (e.g. ADIA) ESG initiatives Unique co
Slide 24: Outlook and guidance
Outlook and guidance FY23 Outlook FY23 Guidance Estimated range Estimated range Outlook statements and guidance have been made based on no material adverse change in the current $30m - $33m 7.1cps - 7.9 cps NPBT1 EPS1 market conditions • FY23 DPS in line with target dividend payout ratio of between
Slide 25: Thank you
Thank you MELBOURNE OFFICE SYDNEY OFFICE QAL INVESTOR ENQUIRES Level 38, 120 Collins Street Governor Macquarie Tower P +61 3 9612 3939 Melbourne VIC 3000 Level 27, 1 Farrer Place, E investor.relations@qualitas.com.au Sydney NSW 2000 qualitas.com.au FULL YEAR FINANCIAL RESULTS JUNE 2022 24
Slide 26: Disclaimer
Disclaimer Disclaimer This presentation has been prepared by and its sole responsibility of Qualitas Limited (ACN 655 057 588). To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever to Qualitas Limited, any of its related ent
Slide 27: Supplementary Information
| Supplementary Information Appendix 1 – Segment Information Appendix 2 – Invested FUM vs Fee Earning FUM Appendix 3 – Addressable Market FULL YEAR FINANCIAL RESULTS JUNE 2022 26
Slide 28: Appendix 1 Segment Information
| Appendix 1 Segment Information FULL YEAR FINANCIAL RESULTS JUNE 2022 27
Slide 29: Diversified product and investment profile as at 30 June 2022
Diversified product and investment profile as at 30 June 2022 Funds diversified across the capital structure, geographies and underlying sectors attracting a broad range of investors – early mover in BTR / multifamily, long WALE and real estate credit Funds under management1 (by Committed FUM) Funds
Slide 30: Appendix 2 Invested FUM vs Fee Earning FUM
| Appendix 2 Invested FUM vs Fee Earning FUM FULL YEAR FINANCIAL RESULTS JUNE 2022 29
Slide 31: Closing period FUM
Closing period FUM The disclosure below is consistent with information provided in the Prospectus and HY results presentation. Going forward we will be providing information based on Fee Earning FUM as we consider this better reflects how Qualitas earns fee revenue $m FY19 FY20 FY21 FY22 Committed F
Slide 32: Fee Earning FUM shows resilience of base fee amidst changing market conditions
Fee Earning FUM shows resilience of base fee amidst changing market conditions Fee Earning FUM includes all FUM metrics where Qualitas is eligible to earn a base management fee Fee Earning FUM benchmark Committed Benchmark Funds FUM ($m)1 SD Other Op Invested FUM QSDF QBIF $1,322m Commentary SMA cre
Slide 33: Credit funds – Fee Earning FUM as at 30 June 2022
Credit funds – Fee Earning FUM as at 30 June 2022 Base management fees for credit funds are calculated based on Invested FUM, net asset value, total facility limit and net interest margin FUM not Fund name Committed FUM Fee Earning FUM yet earnings fees Fund Fee Structure Base Fee Benchmark QRI (ASX
Slide 34: Equity funds – fee earning FUM as at 30 June 2022
Equity funds – fee earning FUM as at 30 June 2022 Base management fees for equity funds are calculated based on Invested FUM, Committed FUM, acquisition price and GAV Committed Fee Earning FUM not yet FUM FUM earnings fees Fund name (equity only) (incl. debt) (incl. debt) Fund Fee Structure Base Fee
Slide 35: Appendix 3 Addressable Market
| Appendix 3 Addressable Market FULL YEAR FINANCIAL RESULTS JUNE 2022 34
Slide 36: CRE credit – addressable market
CRE credit – addressable market Total addressable market has grown at CAGR of ~6% over the last 10 years reaching estimated total value of ~$450bn in 2022 Total addressable market for CRE credit1 $500bn 10-year CAGR: ~6.0% $450bn $400bn $350bn $300bn $250bn $200bn 2012 2013 2014 2015 2016 2017 2018
Slide 37: Build-to-rent market
Build-to-rent market Nascent BTR sector has strong tailwinds and supply is accelerating Annual BTR Apartment Supply1 Australian BTR Sector Size2 12,000 1% of Total Housing Market 10,000 9,531 A$85.0bn 8,000 Potential Value with Current Pipeline A$22.0bn 6,000 4,451 Current 4,000 3,467 Value A$2.3bn
Slide 38: Fund key and glossary
Fund key and glossary Listed Entity Glossary ASX: QAL Qualitas Group ADIA Abu Dhabi Investment Authority CAGR Compound annual growth rate Listed Fund Committed FUM Represents committed capital from investors with signed ASX: QRI Qualitas Real Estate Income Fund investor agreements CRE Commercial rea