Eureka Group Holdings Limited · ASX:EGH

Eureka — H1 FY2021 Earnings Presentation

17 slides from Eureka's earnings presentation, Feb 26, 2021

  1. Slide 1: Investor Presentation: Half Year Results – 31 December 2020

    INVESTOR PRESENTATION Half Year Results – 31 December 2020 February 2021

  2. Slide 2: Contents

    Contents TABLE OF CONTENTS Snapshot of Eureka 3 Half Year Summary 4 Business Highlights 5 Attractive Market Proposition 6 Favourable Core Industry Trends 7 Responsible ESG Practices 9 Scalable Portfolio Growth 10 FY21 Outlook: Accelerating The Momentum 12 Key Financial Information 13 Disclaimer 16 2

  3. Slide 3: Snapshot of Eureka

    Contents Snapshot of Eureka TABLE OF CONTENTS  Eureka is a specialist owner and manager of rental villages for independent seniors Snapshot of Eureka xx  We provide essential social infrastructure and services to a growing cohort of residents Half Year Ended 31 December 2020 Summary 3  Our revenu

  4. Slide 4: Half Year Summary

    Half Year Summary Increasing Underlying EBITDA with emerging benefits of scale FINANCIAL BUSINESS $12m 40.0% VILLAGES (32 OWNED, 8 MANAGED) Underlying EBITDA up 27% to $5.23m Underlying Profit before Tax up 39% to $3.57m $10.2m 35.0% $10m $9.8m Total Units Net Operating Cash Flow up 16% to $4.05m 30

  5. Slide 5: Business Highlights

    Business Highlights  ACQUISITIONS: Two villages acquired in Earlville (Cairns) and Hervey Bay in November 2020 for a total of $13m, added a further 123 units to the portfolio  WYNNUM EXPANSION: project involving construction of 22 units and refurbishment and expansion of the community room is unde

  6. Slide 6: Attractive Market Proposition

    Attractive Market Proposition COMPETITIVE ADVANTAGE Eureka is a specialist owner and manager of rental villages for independent seniors STRATEGY  Expanding portfolio of rental villages  Stable rental market underpinned by the government pension  Scalable growth of the core business through: - Dis

  7. Slide 7: Favourable Core Industry Trends

    Favourable Core Industry Trends • AGEING POPULATION: An increasing number of seniors, both in total and proportion of the population • POPULATION PROJECTIONS: Proportion of population and number of people aged 65+ projected to increase:  2021 – 16.22%: 4.26 million  2026 – 17.40%: 4.86 million  2

  8. Slide 8: Favourable Core Industry Trends

    Favourable Core Industry Trends A fundamental change in home ownership is underway Home Ownership Is Falling “Grattan Institute modelling shows the share of over 65s who own their home will fall from 76% today to 57% by 2056 – and it’s likely that less than half of low-income retirees will own their

  9. Slide 9: Responsible ESG Practices

    Responsible ESG Practices  GOVERNANCE: Responsible approach to business ethics and compliance. Promoting a diverse and inclusive workplace  SOCIAL: Empathetic and committed village managers empowering the independence and wellbeing of residents. Creating safe village communities with a high level

  10. Slide 10: Scalable Portfolio Growth: Earlville (Cairns)

    Scalable Portfolio Growth Earlville (Cairns) Additional 70 Units $8.0m Strengthening the Cairns network by complementing the existing Smithfield village (50 Units) 10

  11. Slide 11: Scalable Portfolio Growth: Hervey Bay

    Scalable Portfolio Growth Hervey Bay, Qld Additional 53 Units $5.0m An exceptional network addition in an ideal demographic catchment 11

  12. Slide 12: FY21 Outlook: Accelerating The Momentum

    FY21 Outlook: Accelerating The Momentum  FINANCIAL: Underlying EBITDA at the upper end of forecast: $9.8m to $10.2m (prior to asset revaluations, sales at Terranora and non-recurring items)  GROWTH: Building an acquisition pipeline and greenfield development program with the balance sheet capacity

  13. Slide 13: Key Financial Information – Profit & Loss

    Key Financial Information – Profit & Loss Underlying EBITDA up 27%with improving margins • Underlying EBITDA margin increased to 38.4% compared with 33.1% pcp • Underlying Profit before Tax increased by 39% to $3.57m • Improved result driven by portfolio expansion generating economies of scale and i

  14. Slide 14: Key Financial Information – Balance Sheet

    Key Financial Information – Balance Sheet • Capitalisation rate of investment properties stable at 10.12% (FY20: 10.10%) • Joint venture investment uplift due to revaluation of Tasmanian village portfolio (50% share: $0.43m) • Acquisition of 70 unit village in Earlville (Cairns) and 53 unit village

  15. Slide 15: Key Financial Information – Cash Flows

    Key Financial Information – Cash Flows • Net cash from operating activities increased by 16% due to strong underlying results • Acquisition of new villages funded from debt draw down and capital recycling (sale of Terranora units) • FY20 final dividend of 0.55 cents per share during the period Stabl

  16. Slide 16: Disclaimer

    Disclaimer No responsibility for contents of Presentation To the maximum extent permitted by law, Eureka Group Holdings Limited (ABN 15 097 241 159) its officers, advisers and representatives: • make no representation, warranty or undertaking, and accept no responsibility or liability, express or im

  17. Slide 17: Group Holdings

    GROUP HOLDINGS

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