Summerset Group Holdings Limited · NZX:SUM
Summerset — FY2013 Earnings Presentation
31 slides from Summerset's earnings presentation, Feb 25, 2014
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION YEAR ENDED 31 DECEMBER 2013 SUMMERSET GROUP HOLDINGS LIMITED 29 25 February 2012 2014 0
Slide 2: Agenda
AGENDA 2 Result Highlights 5 Business Overview 19 Financial Results 24 Dividend 28 Appendix 1
Slide 3: Result Highlights
a RESULT HIGHLIGHTS _
Slide 4: Result Highlights: Continued Strong Growth in All Areas
FY13 RESULT HIGHLIGHTS CONTINUED STRONG GROWTH IN ALL AREAS FY13 Actual vs. FY13 Actual FY12 Actual FY11 Actual FY12 Actual New sales of occupation rights 228 167 36.5% 108 Operational Resales of occupation rights 174 164 6.1% 123 New units delivered 209 160 30.6% 122 Net operating cash flow 88,590
Slide 5: FY13 Result Highlights
FY13 RESULT HIGHLIGHTS AHEAD OF FY12 RESULTS ON KEY METRICS ■ Strong growth on FY12 results across the business: ■ New sales up 37% ■ Operating cash flow up 34% ■ FY13 underlying profit of $22.2m, up 46% on FY12 ■ Resales up 6% despite lower stock availability at beginning of FY13 ■ FY13 net profit
Slide 6: Business Overview
BUSINESS OVERVIEW 5
Slide 7: FY13 Review
FY13 REVIEW CONTINUED FOCUS ON GROWTH AND DELIVERY OF BUILD PROGRAMME ■ Continued growth in financial performance ■ Delivered 209 units across six sites ■ Commenced construction on 16th and 17th villages, Katikati and Karaka, respectively ■ Hobsonville, Summerset’s 18th village, commenced constructi
Slide 8: Summerset Snapshot
SUMMERSET SNAPSHOT THIRD LARGEST OPERATOR, SECOND LARGEST DEVELOPER ■ 1,855 retirement units (villas, apartments and care apartments) ■ 442 care beds ■ Over 2,600 residents ■ 209 units delivered in FY13 ■ Build rate of around 250 retirement units in FY14 ■ Build rate guidance of 300 retirement units
Slide 9: Summerset Strategy
SUMMERSET STRATEGY SUMMERSET BUILDS, OWNS AND OPERATES RETIREMENT VILLAGES IN NZ ■ Focus on continuum of care model ■ Internal development model ■ Nationwide brand offering ■ Customer centric philosophy – “we love the life you bring to us” ■ Respect for everyday New Zealanders 8
Slide 10: Demographics
DEMOGRAPHICS POPULATION OVER 75 YEARS FORECAST TO TRIPLE FROM 2011 TO 2051 POPULATION GROWTH 75 YEARS AND OVER 900,000 16% 800,000 14% 700,000 12% 600,000 10% 500,000 8% 400,000 6% 300,000 4% 200,000 100,000 2% 0 0% 2011 2016 2021 2026 2031 2036 2041 2046 2051 NZ population 75+ (left hand axis) % of
Slide 11: Summerset Growth
SUMMERSET GROWTH 16 YEARS OF CONSISTENT DELIVERY AND GROWTH 2,000 1,855 1,800 1,646 209 1,600 1,486 160 1,352 122 1,400 1,272 80 1,200 Retirement Units 1,109 163 983 126 1,646 1,000 921 62 1,486 795 126 1,364* 800 732 63 1,272 652 *2011 existing stock includes 12 units acquired 80 1,109 600 528 124
Slide 12: FY13 Development Activity: Delivery of Units Across Six Sites
FY13 DEVELOPMENT ACTIVITY DELIVERY OF 209 UNITS IN FY13 ACROSS SIX SITES ■ 209 units delivered across six villages Unit delivery FY13 ■ First units in Katikati delivered Villas Apartments Care Apartments Total ■ Hastings village completed in FY13 Dunedin 30 - - 30 Hamilton 34 - 10 44 ■ Main building
Slide 13: FY13 Development Activity: Village Photos
FY13 DEVELOPMENT ACTIVITY DELIVERY OF 209 UNITS IN FY13 ACROSS SIX SITES Dunedin Nelson Hamilton 12 Hastings Warkworth Katikati
Slide 14: Hamilton and Nelson Main Buildings Completed in FY13
FY13 DEVELOPMENT ACTIVITY HAMILTON AND NELSON MAIN BUILDINGS COMPLETED IN FY13 Hamilton Main Building Nelson Main Building 13 Dunedin Main Building (under construction)
Slide 15: Future Development: Land Bank
FUTURE DEVELOPMENT LAND BANK OF 2,116 RETIREMENT UNITS AND 595 CARE BEDS Land Bank - as at 31 December 2013 * ■ Land bank of 2,116 retirement units spread across Total brownfield and greenfield sites Care Villas Apartments Retirement Care Beds Apartments Units ■ Additional pipeline of 595 care beds
Slide 16: Development Margin
DEVELOPMENT MARGIN REALISED DEVELOPMENT MARGIN $10.5M ■ Development margin continues to move upwards REALISED DEVELOPMENT MARGIN ■ Strong sales in Warkworth and Hastings where external contractors are 12.0 14.0% still being used holding margin down in short term 13.2% ■ Development margins on sites
Slide 17: New Sales of Occupation Rights
NEW SALES OF OCCUPATION RIGHTS NEW SALES OF 228 OCCUPATION RIGHTS VERSUS FY12 OF 167 ■ New sales of occupation rights up versus FY12: FY13 Actual FY12 Actual FY13 Actual vs. FY11 Actual FY12 Actual ■ Gross proceeds: $79.3m, up 37.3% over Gross proceeds FY12 79,274 57,739 37.3% 37,259 ($000) ■ Occupa
Slide 18: Resales of Occupation Rights
RESALES OF OCCUPATION RIGHTS RESALES OF 174 OCCUPATION RIGHTS VERSUS FY12 OF 164 ■ Realised resale gains up on FY12: FY13 Actual FY12 Actual FY13 Actual vs. FY11 Actual FY12 Actual ■ Total realised resale gains: $9.7m, up 6.6% over FY12 Gross proceeds 44,514 31,966 51,602 15.9% ($000) ■ Occupation r
Slide 19: Operations and Staff
OPERATIONS AND STAFF FOCUS ON CLINICAL QUALITY AND STAFF TRAINING ■ NZQA recognised training framework for all Summerset Caregivers – National Certificate in Health, Disability and Aged Support ■ Stepping Up programme - increased pay for qualified staff ■ Clinical quality and internal audit framewor
Slide 20: Financial Results
BUSINESS FINANCIALOVERVIEW RESULTS 19
Slide 21: Reported Profit (IFRS)
FY13 REPORTED PROFIT (IFRS) NET PROFIT AFTER TAX UP 131% VERSUS FY12 ■ FY13 operating revenue up 19% versus FY12 FY13 Actual vs. NZ$000 FY13 Actual FY12 Actual FY11 Actual FY12 Actual ■ FY13 operating expenses up 14% versus FY12 Total revenue 45,208 38,120 18.6% 33,703 ■ Includes one-off ASX listing
Slide 22: Underlying Profit
FY13 UNDERLYING PROFIT UNDERLYING PROFIT $22.2M UP 46% VERSUS FY12 ■ Strong underlying profit performance FY13 Actual vs. FY11 NZ$000 FY13 Actual FY12 Actual FY12 Actual Actual ■ Realised gain on resales up 6.6% Reported profit after tax 34,223 14,821 131% 4,324 ■ Strong growth in development margin
Slide 23: Cash Flows
FY13 CASH FLOWS NET OPERATING CASH FLOW $88.5M UP 34% VERSUS FY12 FY13 Actual vs. NZ$000 FY13 Actual FY12 Actual FY11 Actual ■ Strong operating cash performance, largely driven by FY12 Actual sales of occupation rights Care fees and village services 31,797 27,391 16.1% 25,093 ■ Development build cas
Slide 24: Balance Sheet
FY13 BALANCE SHEET TOTAL ASSETS OF $845M UP 20% FROM $702M IN FY12 ■ Net asset growth of 13.3% from FY12 NZ$000 FY13 Actual FY12 Actual FY13 Actual vs. FY11 FY12 Actual Actual ■ Investment property valuation of $776.6m Investment property 776,637 644,506 20.5% 557,140 ■ Other assets include land and
Slide 25: Dividend
y > _ a Hh ; % ’ : ; . ™ 7 { £ ¥ + A ali DIVIDEND
Slide 26: Final Dividend
FY13 FINAL DIVIDEND SUMMERSET BOARD DECLARES FY13 FINAL DIVIDEND ■ The Summerset Board have declared a final dividend of 3.25 cents per share, unimputed, up 30% on FY12 ■ This represents a total payout of approximately $7.0m compared with the $5.4m paid out for the FY12 year ■ The dividend reinvestm
Slide 27: Questions?
BE SUMMERSET SURE QUESTIONS?
Slide 28: Disclaimer
DISCLAIMER This presentation may contain projections or forward looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward looking stat
Slide 29: Appendix
APPENDIX 28
Slide 30: Portfolio as at 31 December 2013
PORTFOLIO AS AT 31 DECEMBER 2013 1,855 RETIREMENT UNITS AND 442 CARE BEDS Existing Portfolio – as at 31 December 2013 Total Retirement Villas Apartments Care Apartments Care Beds Units Aotea 96 33 38 167 - Dunedin 61 - - 61 - Hamilton 74 - 10 84 30 Hastings 146 5 - 151 - Havelock North 94 28 - 122 4
Slide 31: Land Bank as at 31 December 2013
LAND BANK AS AT 31 DECEMBER 2013 LAND BANK OF 2,116 RETIREMENT UNITS AND 595 CARE BEDS Land Bank - as at 31 December 2013 * Total Retirement Villas Apartments Care Apartments Care Beds Units Casebrook 195 - 38 233 80 Dunedin - 20 20 40 42 Ellerslie 50 150 50 250 80 Hamilton 108 40 10 158 19 Hobsonvi
Summerset Group Holdings — FY2013 Earnings Presentation on 6ix