Eureka Group Holdings Limited · ASX:EGH
Eureka — FY2018 Earnings Presentation
16 slides from Eureka's earnings presentation, Sep 10, 2018
Slide 1: Investor Presentation - Year ended 30 June 2018
Eureka Group Holdings Limited Investor Presentation Year ended 30 June 2018 September 2018 For personal use only
Slide 2: Index
For personal use only Index 1. 2018 Highlights 2. Eureka Business Overview 3. Key Financials 4. Market Sector Overview 5. Operations 6. Summary Appendix A Board profiles Appendix B Substantial Shareholders 2
Slide 3: 2018 Highlights
1. 2018 Highlights For personal use only • EBITDA from core operations (excluding fair value adjustments and write downs) of $6.94 million a 17% improvement from prior year. After fair value adjustments and write offs a loss after tax of $0.28 million. • Continued improvement of occupancy levels lif
Slide 4: 2018 Highlights (cont.)
For personal use only 1. 2018 Highlights (cont.) • Board renewal with new independent Chair of the Board and independent Chair of the Audit and Risk Committee. • Post year end renegotiated the Couran Cove loans and property transactions with $3.6 million cash received on 7 September 2018. • Alliance
Slide 5: Eureka Business Overview
2. Eureka Business Overview STRATEGY Primary focus to provide low cost rental accommodation and limited For personal use only associated care with a focus on independent retirees who are completely or primarily supported by the Australian Government pension and location allowances Target market
Slide 6: Key Financials
3. Key Financials The table below summarises the results for the year ended 30 June 2018 For personal use only ($'000) 30-Jun-18 30-Jun-17 • Improved revenue from core operations. Revenue - rental 15,674 14,826 - catering 6,036 5,980 • Revaluation loss impacted by - other 864 3,247 Other income 810
Slide 7: Key Financials (cont.)
3. Key Financials (cont.) The table below summarises the balance sheet at 30 June 2018 For personal use only ($'000) 30-Jun-18 30-Jun-17 • Capital recycling will strengthen balance sheet to enable a continued growth Assets Cash and cash equivalents 1,986 4,395 strategy. Trade and other receivables 2
Slide 8: Key Financials (cont.) - Statement of Cash Flows
3. Key Financials (cont.) The table below summarises the Statement of Cash Flows for the year ended 30 June 2018 For personal use only 30-Jun-18 30-Jun-17 • Positive operating cash flow largely consistent with operating results Cash Flows from Operating Activities Receipts from customers 24,849 24,2
Slide 9: Market sector overview
4. Market sector overview • Expanding gap in the market as other service providers move their product up in the market price and away from the rental option. For personal use only • Recent trends across the retirement sector is significantly reducing the amount of affordable housing available in the
Slide 10: Operations
5. Operations Eureka has created a strong operating base to For personal use only enable economies of scale and scope to leverage further • 41 villages under management (including owned villages) – in excess of 2,000 units. • 32 of those villages with freehold land and building ownership • Regional
Slide 11: Operations (cont.) - Capital Recycling
5. Operations (cont.) Capital Recycling For personal use only Terranora • Existing units currently earning rental income pending obtaining separate title for sale • Surplus land suitable for on sale once a separate title has been issued. • Approval, with conditions, secured from Tweed Shire Council
Slide 12: Summary
6. Summary For personal use only Significant progress in resolving non core assets with more being achieved in FY19 especially in relation to Couran Cove and Terranora. Portfolio of core business expanded through acquisition of 8 villages. Plan to continue expansion. Focus on operational improvement
Slide 13: Appendix A - Board profiles
Appendix A Board profiles For personal use only Murray Boyte– Executive Chairman Murray holds a Bachelor of Commerce and Administration from the Victoria University in Wellington and is a member of the Australian Institute of Company Directors, the Institute of Directors of New Zealand and Chartered
Slide 14: Appendix A (cont.) - Board profiles
Appendix A (cont.) Board profiles For personal use only Sue Renkin – Non-Executive Director Sue Renkin holds a Master of Business Administration from Monash University, a Graduate Diploma in Corporate Governance from UNE and attended Harvard Business School for a course on Competition and Strategy.
Slide 15: Appendix B - Substantial Shareholders
Appendix B Substantial Shareholders For personal use only The substantial shareholders as notified to the ASX include: • Cooper Investors Pty Limited 15.38% • Tribeca Investment Partners 9.33% • Adam Smith Asset Management 6.10% • Ignition Capital and Robin Levison (former 5.62% Director) • 22 Resol
Slide 16: Disclaimer
Disclaimer For personal use only 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 li