Summerset Group Holdings Limited · NZX:SUM
Summerset — H1 2013 Earnings Presentation
29 slides from Summerset's earnings presentation, Aug 13, 2013
Slide 1: Half Year Results Presentation
HALF YEAR RESULTS PRESENTATION SIX MONTHS ENDED 30 JUNE 2013 SUMMERSET GROUP HOLDINGS LIMITED 29 13 August February 2013 2012 0
Slide 2: Agenda
AGENDA 2 1H13 Result Highlights 5 Business Overview 19 Financial Results 26 Appendix 1
Slide 3: 1H13 Result Highlights
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Slide 4: 1H13 Result Highlights: Key Financial Metrics
1H13 RESULT HIGHLIGHTS NEW SALES AND KEY FINANCIAL METRICS STRONGLY UP ON 1H12 1H13 Actual vs. NZ$000 1H13 Actual 1H12 Actual FY12 Actual 1H12 Actual New sales of occupation rights 116 83 39.8% 167 Operational Resales of occupation rights 73 88 -17.0% 164 New units delivered 102 68 50.0% 160 Net ope
Slide 5: 1H13 Result Highlights
1H13 RESULT HIGHLIGHTS AHEAD OF 1H12 RESULTS ON KEY METRICS ■ Strong growth on 1H12 results across the business: ■ New sales up 40% ■ Operating cash flow up 51% ■ 1H13 underlying profit of $10.0m, up 45% on 1H12: ■ Increased number of new sales ■ Higher realised gains on resales ■ Lower resales due
Slide 6: Business Overview
BUSINESS OVERVIEW 5
Slide 7: 1H13 Review
1H13 REVIEW CONTINUED FOCUS ON GROWTH AND DELIVERY OF BUILD PROGRAMME ■ Continued growth in financial performance ■ Delivered 102 units across six sites ■ Completed 41 care beds at Warkworth ■ Commenced construction on 16th village, Summerset by the Sea, Katikati ■ Main buildings in Dunedin, Nelson
Slide 8: Summerset Snapshot
SUMMERSET SNAPSHOT THIRD LARGEST OPERATOR, SECOND LARGEST DEVELOPER ■ 1,748 retirement units (villas, apartments and care apartments) ■ 370 care beds ■ Over 2,200 residents ■ 102 units delivered in 1H13 ■ Build rate of at least 200 retirement units in FY13 ■ Build rate guidance of 300 retirement uni
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 DOUBLE BY 2031 POPULATION GROWTH 75 YEARS AND OVER 600,000 12% 500,000 10% 400,000 8% 300,000 6% 200,000 4% 100,000 2% 0 0% 2011 2016 2021 2026 2031 NZ population 75+ % of population 75+ Source: Statistics New Zealand (left hand axis) (right hand axi
Slide 11: Summerset Growth
SUMMERSET GROWTH 16 YEARS OF CONSISTENT DELIVERY AND GROWTH 2,000 1,748 1,800 1,646 102 1,600 1,486 160 1,352 122 1,400 1,272 80 1,200 Retirement Units 1,109 163 983 126 1,000 921 62 795 126 800 732 1,646 63 1,486 652 80 1,364* 1,272 600 528 124 470 1,109 407 58 983 63 921 400 732 795 219 188 652 52
Slide 12: 1H13 Development Activity
1H13 DEVELOPMENT ACTIVITY DELIVERY OF 102 UNITS IN 1H13 ACROSS SIX SITES ■ 102 units delivered across six villages Unit delivery 1H13 ■ This represents approximately half of the build rate guidance given Villas Apartments Care Apartments Total for FY13 of at least 200 units Dunedin 19 0 0 19 ■ More
Slide 13: 1H13 Development Activity
1H13 DEVELOPMENT ACTIVITY DELIVERY OF 102 UNITS IN 1H13 ACROSS SIX SITES Dunedin Nelson Hamilton 12 Hastings Warkworth Katikati
Slide 14: Future Development: New Plymouth
FUTURE DEVELOPMENT NEW LAND ACQUISITION IN NEW PLYMOUTH ■ New 4.0Ha site acquired in Upper Vogeltown, New Plymouth ■ Indicative plans for the village include 106 villas, 40 care apartments and a 40 bed care facility ■ New Plymouth currently exhibits low penetration rates and an undersupply of retire
Slide 15: Future Development: Trentham
FUTURE DEVELOPMENT NEW LAND ACQUISITION IN TRENTHAM ■ Acquired 4.0Ha of land adjacent to the current Summerset Trentham village ■ Indicative plans for the village extension include a redevelopment of the main building, 126 villas, 20 care apartments and a 15 bed care facility ■ Existing Trentham vil
Slide 16: Future Development: Land Bank
FUTURE DEVELOPMENT LAND BANK OF 1,791 RETIREMENT UNITS AND 455 CARE BEDS Land bank - as at 30 June 2013 ■ Land bank of 1,791 retirement units spread across brownfield and greenfield sites Total Care Villas Apartments Retirement Care Beds Apartments ■ Additional pipeline of 455 care beds across exist
Slide 17: Development Margin
DEVELOPMENT MARGIN REALISED DEVELOPMENT MARGIN $4.9M ■ Development margin continues to move upwards REALISED DEVELOPMENT MARGIN 6 13.0% ■ Strong sales in Warkworth and Hastings where external contractors are still being used holding margin down in short term 12.4% 12.5% 12.1% ■ Development margins o
Slide 18: New Sales of Occupation Rights
NEW SALES OF OCCUPATION RIGHTS NEW SALES OF 116 OCCUPATION RIGHTS VERSUS 1H12 OF 83 ■ New sales of occupation rights up versus 1H12: 1H13 Actual vs. 1H13 Actual 1H12 Actual FY12 Actual 1H12 Actual ■ Gross proceeds: $39.9m, up 39% over 1H12 Gross proceeds 39,858 28,754 38.6% 57,739 ($000) ■ Occupatio
Slide 19: Resales of Occupation Rights
RESALES OF OCCUPATION RIGHTS RESALES OF 73 OCCUPATION RIGHTS VERSUS 1H12 OF 88 ■ Realised resale gains up on 1H12: 1H13 Actual 1H12 Actual 1H13 Actual vs. FY12 Actual 1H12 Actual ■ Total realised resale gains: $7.0m, up 6.3% over 1H12 Gross proceeds 21,212 22,803 -7.0% 44,514 ($000) ■ Occupation rig
Slide 20: Financial Results
BUSINESS FINANCIALOVERVIEW RESULTS 19
Slide 21: 1H13 Reported Profit (IFRS)
1H13 REPORTED PROFIT (IFRS) NET PROFIT AFTER TAX UP 174% VERSUS 1H12 1H13 Actual ■ 1H13 operating revenue up 16% versus 1H12, with DMF up 39% NZ$000 1H13 Actual 1H12 Actual vs. 1H12 FY12 Actual Actual ■ 1H13 operating expenses up 11% versus 1H12 Total revenue 21,151 18,203 16.2% 38,120 ■ Includes on
Slide 22: 1H13 Underlying Profit
1H13 UNDERLYING PROFIT UNDERLYING PROFIT $10.0M UP 45% VERSUS 1H12 1H13 Actual ■ Strong underlying profit performance NZ$000 1H13 Actual 1H12 Actual vs. 1H12 FY12 Actual Actual ■ Realised gain on resales up 11% despite reduced resale numbers Reported profit after tax 10,772 3,938 174% 14,821 ■ Stron
Slide 23: 1H13 Cash Flows
1H13 CASH FLOWS NET OPERATING CASH FLOW $43.4M UP 51% VERSUS 1H12 1H13 Actual ■ Strong operating cash performance, largely driven by sales of NZ$000 1H13 Actual 1H12 Actual vs. 1H12 FY12 Actual Actual occupation rights Care fees and village services 14,201 13,328 6.6% 27,391 ■ Development build cash
Slide 24: 1H13 Balance Sheet
1H13 BALANCE SHEET TOTAL ASSETS OF $764M UP 19% FROM $645M IN 1H12 1H13 ■ Net asset growth of 8.4% from 1H12 1H13 1H12 Actual vs. FY12 NZ$000 Actual Actual 1H12 Actual ■ Investment property valuation of $706m Actual ■ Other assets include land and buildings (primarily care facilities) Investment pro
Slide 25: Questions?
BE SUMMERSET SURE QUESTIONS?
Slide 26: 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 27: Appendix
APPENDIX ea mmerset BASALLY at AS HESS SI
Slide 28: Existing Portfolio at 30 June 2013
EXISTING PORTFOLIO AT 30 JUNE 2013 1,748 EXISTING RETIREMENT UNITS AND 370 CARE BEDS Existing Portfolio– as at 30 June 2013 Total Retirement Villas Apartments Care Apartments Care Beds Units Aotea 96 51 20 167 - Dunedin 50 - - 50 - Hamilton 54 - - 54 - Hastings 123 - 5 128 - Havelock North 94 18 10
Slide 29: Land Bank as at 30 June 2013
LAND BANK AS AT 30 JUNE 2013 LAND BANK OF 1,791 RETIREMENT UNITS AND 455 CARE BEDS Land bank - as at 30 June 2013 Total Retirement Villas Apartments Care Apartments Care Beds Units Dunedin 11 20 20 51 40 Ellerslie 50 150 50 250 80 Hamilton 128 50 20 198 40 Hastings 23 - - 23 - Hobsonville 156 75 19
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