Infratil Limited · NZX:IFT
Infratil — Investor Day (April 2018)
17 slides from Infratil's investor day presentation, April 2018
Slide 1: Infratil Investor Day
Infratil Investor Day April 2018
Slide 2: Overview
Overview Core business Growing business Investment execution and and pipeline of thesis performance opportunities 2
Slide 3: Retirement accommodation demand and dynamics
Retirement accommodation demand and dynamics Ageing population Care policy changes Australians over 65 years ^~ (LHS) supports greater supports higher RV residents at 5.7% penetration * (RHS) demand demand RV residents at 7.5% penetration * (RHS) 10 0.80 • Over the next 30 years, • Moving towards co
Slide 4: Our strategic vision set post acquisition remains unchanged
Our strategic vision set post acquisition remains unchanged STRATEGIC Our vision is to be the recognised leader in customer-centric retirement communities and VISION care services to make us the first choice of older Australians and their families. Core Focus – Existing portfolio Growing focus – Dev
Slide 5: RetireAustralia – Future (2021) consistent focus since 2016
RetireAustralia – Future (2021) consistent focus since 2016 5
Slide 6: RetireAustralia – End FY18 achievements
RetireAustralia – End FY18 achievements 6
Slide 7: Core business execution
Core business execution Financial drivers of existing resales Outcomes FY16-FY18 Closely monitoring three measurable indicators of RetireAustralia’s core business success Drive entry 16.3% price growth Increase average 1% to 80.6 years age Speed to market 20% reinstate and refurb Introduced NZ
Slide 8: Industry in the spotlight
Industry in the spotlight • In June 2017, Fairfax and ABC published an investigation into Aveo • Several months of negative media coverage about the retirement village industry in Australia “It’s like a financial sinkhole. Once you’re “Bleed them dry until they die” in, it’s very hard to get out.” “
Slide 9: Operator impact – resales downturn, recovery underway
Operator impact – resales downturn, recovery underway Publicly owned operators have reported a downturn in enquiry and sales and an increase in deposit fallovers, resulting in higher vacancy rates. Key industry player sales results to prior comparable period (PCP) Perception of retirement living imp
Slide 10: Retirement industry rallies – opportunity to reset for the future
Retirement industry rallies – opportunity to reset for the future Retirement Living Council developed an Eight Point Plan • Consistent national • Village accreditation legislation • Code of conduct 1. Support nationally consistent retirement village legislation and contracts. 2. Ensure there are tra
Slide 11: Review of capital structure to support growth
Review of capital structure to support growth Since acquisition there had been no review of the capital structure Initial capital structure Final capital structure December 2014 March 2018 • Brownfield development and site acquisitions have been $250m core business $120m core business equity funded
Slide 12: Development pipeline being secured and delivered in FY18
Development pipeline being secured and delivered in FY18 • 3 Brownfield projects were completed • 2 Greenfield development projects achieved development approval with 1 more imminent • 2 Brownfield projects under construction • 3 Greenfield developments in development • All brownfield village expans
Slide 13: Medium term development pipeline – delivering 200 per annum
Medium term development pipeline – delivering 200 per annum* Green field villages FY19 FY20 FY21 FY22 Beyond Brownfield villages FY19 FY20 FY21 FY22 Beyond Village Product Type Delivery stages Village Product Type Delivery stages Burleigh Golf Independent Wood Glen Independent - 44 62 39 - Club Livi
Slide 14: Developing the care continuum the RetireAustralia way
Developing the care continuum the RetireAustralia way What are Care Apartments? – Transitioning from the traditional Serviced Apartment offering (which is primarily domiciliary Built form services) to a “private aged care” offering which – 40 – 45 m2 apartments expands the service offering to includ
Slide 15: RetireAustralia Care
RetireAustralia Care Australia’s care funding model is changing • Australia is moving to consumer directed care • Home care has already transitioned • Quality and reporting framework across home care and residential aged care is being standardised from July 2018 • Government signaling deregulation o
Slide 16: RetireAustralia Care – positioned well for changing funding model
RetireAustralia Care – positioned well for changing funding model Anticipated Australian Government Policy reforms RetireAustralia’s progress • Transitioning existing portfolio of more Short term • Merge home support and home care package than 400 serviced apartments to care funding programs • Highe
Slide 17: Robust operations and resales
2 urban villages under construction and continue to build development pipeline 200-300 pa Robust Existing portfolio of broad acre operations villages aligned to our long term and resales strategy