Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — 1H FY2023 Earnings Presentation
33 slides from Oceania Healthcare's earnings presentation, 2022
Slide 1: Oceania 1H FY2023 Results Presentation
OCEANIA in better. : F
Slide 2: Brent Pattison
Brent Pattison
Slide 3: 1HY2023 highlights
1H¥2023 highlights We delivered 6% growth in Underlying EBITDA in 1HY2023 underpinned by our al 6.0% growth in Underlying EBITDA, increasing to $38.7m In 1H¥2023, up from $36.5m in tHy2022 Village DMF 23.7% growth in villa and apartment DMF, increasing to $19.3m In 1H¥023, up from $15.6m in tHy2022
Slide 4: 1HY2023 highlights (continued)
1H¥2023 highlights (continued) In the six months ending September 2022 we have delivered 127 care suites. ¥) OCEANIA itions of Remuera Rise icant developments include the acqui & Bream Bay sites as well as appointment of Anita Hawthorne as Group General Manager, Sales and Service. evelopment uf a To
Slide 5: Oceania's strategic pillars
Oceania’s strategic pillars & Offer fon Resident aly Experience ay People i) Capability (3) Growth To design, develop, build and sell perfect properties for our customers of the future. To be the leader in the delivery of resident experience in retirement villages and aged care centres in New Zealan
Slide 6: Future development outlook
Future development outlook @D oceania 57% of our existing portfolio is now premium units and care suites as we progress to ~72% premium / ~28% standard at the end of our current pipeline. Current & future portfolio cor Existing por Carebeds Care suites ILUs Total we 1,652 1,878 5 Care Standard North
Slide 7: Developments completed in 1HY2023
Developments completed in 1HY¥2023 Q OCEANIA 127 care suites completed in 1HY2023 at two sites. Though disruptions persist in the construction industry, stages at two key strategic sites were completed since March 2022. Lady Allum Milford, Auckland Completed in September 2022 113 Care Suites Woodlan
Slide 8: Developments under construction
Developments under construction Oceania currently has 519 units and care suites under construction at 10 sites across New Zealand. indi Elmwood, Auckland Commenced in September 2021. Waterford Stage 1, ‘Auckland Commenced in The Helier, Auckland October 2021. Stoke, Nelson June 2022. (). 106 § — Car
Slide 9: Greenfield and M&A strategy underway with 650+ future units
Greenfield and M&A strategy underway with 650+ future units ( oceania Development pipeline Waterford wecpment Pipe 1 1 2 Apartments & Care Suites Acquired in FY2022 We have more than doubled the number of consented apartments in the first stage of development at Waterford to 50 (from 24). Planning o
Slide 10: Greenfield and M&A strategy underway with 650+ future units
Greenfield and M&A strategy underway with 650+ future units @ oceania Greenfield expansion allows us the flexibility to pursue a “right product for the right location” strategy. Our developments at Waterford, Bream Bay, Franklin and The Helier demonstrate progress in our Greenfield capabilities and
Slide 11: Kathryn Waugh
Kathryn Wa ugh
Slide 12: Embedding Sustainability in our DNA
Embedding Sustainability in our DNA @D oceania ESG underpins Oceania’s strategic pillars, and we are currently refreshing our strategy and framework as we work to embed ESG across our organisation. A new Sustainability Subcommittee of the Board has been established to oversee our sustainability jour
Slide 13: 1HY2023 trading highlights
1HY2023 trading highlig hts ¥) OCEANIA Recurring premium revenue underpins our result with DMF and PAC revenue for 1HY2023 of $29.3m, an 18% increase on 1HY2022. NZDb NZDm 2.5 24 36.5 17 30.5 38.7 tHY2021 IHY2022 IHY2023 pep2021 1H¥2022 1H¥2023 Premium revenue (DMF and PAC revenue) 230 226 NZDm 29.3
Slide 14: Sales update
Sales update Total sales volumes in line with pcp, while development and resale margins both increased, illustrating Oceania’s al housing market headwinds. Sales volumes Development and resale margins pep2021 tHy2022 1HY2023 92.0% 27.1% 26.0% 22.7% uo =. afl . “ & &, @& &, & %, pop2021 tHy2022 1HY20
Slide 15: Premium care revenue
Premium care revenue @ oceania An increase in premium revenue streams has enabled us to maintain EBITDA margins. (DMF) offering: Care segment total revenue, Underlying EBITDA and Underlying EBITDA margin Premium care revenue NZDm 100 20% 10.1 75 om 15% & 1 & g 12% 12% 2 a 50 11% 10% 3 2 A 25 % 1Hy20
Slide 16: Embedded value in existing portfolio
Embedded value in existing portfolio cash flows from deferred management fees and resale gains. Embedded Value NZDm 500 452.0 3,000 400 368.3 2,400 330.2 2,085 300 4,821 isa 1,800 219.6 200 USL® 1788 1,200 100 600 178.5 189.5, 232.4 - tHY2022 Fy2022 tHY2023 - Accrued DMF Embedded Resales Gains = Num
Slide 17: Balance sheet
Balance sheet Total assets increased by $253m from 31 March 2022 driven by growth in the value of retirement village and care properties through ‘ions and continued development. Oceania’s net adjusted value is $1.34 per share as at 30 September 2022. Net adjusted value (“NAV”) acqui Balance sheet NZ
Slide 18: Slide 18
Slide 19: Appendix contents
13 14 H+) OCEANIA Underlying earnings Income Statement Care segment Village segment Cash flow Borrowings Portfolio summary Development pipeline Reconciliation of portfolio movements Summary of unit sales Capital expenditure and reconciliation of resales cashflow Definition of underlying NPAT Glossar
Slide 20: Underlying earnings
° ° 01 Underlying earnings ig) OCEANIA Underlying EBITDA of $38.7m for the 6 month period ended 30 September 2022, a 6% increase on 1HY2022. Reconciliation of underlying adjustments Segmental underlying adjustments NZDm tHy2023 © tHy2022 Var Fy2022 NZDm tHy2023 © 1Hy2022 Var Fy2022 Reported Net prof
Slide 21: Income statement
O2 Income statement i) OCEANIA Total Comprehensive Income for the period of $27.3m. Key valuation assumptions remained largely consistent from 1HY2022 with minor adjustments to growth and discount rates. Summary of income statement Key IP and PP&E CBRE valuation assumption changes NZDm tHy2023 12022
Slide 22: Care segment
03 Care segment @ oceania EBITDA per bed of over $9,800. Key drivers of care performance were group occupancy of 91% and continued increases in premium revenue as our care suite portfolio matures. Aged care underlying EBITDA Occupancy rates NZDm sHy2023 © 1HY2022 Var Fy2022 NA% 9% Spike awe 1.0% 92.
Slide 23: Village segment
O4 Village segment matures. Village underlying EBITDA Villa and apartment DMF revenue NZDm NZDm sHy2023 — 1HY2022 Var Fy2022 Villa and apartment DME 19.3 157 3.6 33.1 = Retirement village service fees 45 37 08 76 187 Other revenue 19 14 05 28 15 Total retirement village operating revenue 25.6 20.7 4
Slide 24: Cash flow
O05 Cash flow Operating cash flow of $31.4m for 1HY2023 compared to $52.5m for 1HY2022. Statement of cash flows NZDm 1HY2023 AHY2022 Var Fy2022 Receipts from customers 90.9 7.0 (6.2) 190.1 Payments to suppliers and employees (112.2) (13.1) 0.9 (215.5) Rental payments in relation to right of use asse
Slide 25: Borrowings
06 Borrowings Oceania holds significant headroom in its $725m of debt fac! Net debt s, to be used for future developments and land acqui: Development debt to underlying development assets (NZDm)! Pnee5 Facility limit as at 30, Drawn amount Headroom asat 30 $89m excess assets mt September 2022 as at
Slide 26: Portfolio summary
O7 Portfolio summary As at 30 September 2022. Facility NORTH ISLAND Region Care beds Care suites Village units Total Facility Region Care beds SOUTH ISLAND Care suites Village units Total Bream Bay Vilage Ruakoka = = 83 83 Morina Cove Picton = = 26 26 Totara Park Rodney = _ 30 30 Green Gables Nelson
Slide 27: Development pipeline
O08 Development pipeline Status as at 30 September 2022. H+) OCEANIA Sites Stage Status ILUs Care suites Gross units Net units Notes Stage 6 ‘Consented S 40 40 40 y Trevellyn) Sit Under Construction val - val val ‘Commenced construction FY2022 rma Moker) Under Connon 28 : 28 28 Comenoedconswoton F02
Slide 28: Reconciliation of portfolio movements
O09 Reconciliation of portfolio movements H+) OCEANIA Changes Conversion Conversion Changes in Changes in As at in existing of beds to of units to New units pipeline - gross pipeline - Asat Fy2022 capacity care suites care suites New units acquired delivered units added decommissions tHy2028 Care be
Slide 29: Summary of unit sales
10 Summary of unit sales OCEANIA New Sales pep2018 pep2019 pep2020 pep2021 1Hy2022 1HY2023 Villa 6 21 5 19 13 - Apartment 24 32 31 38 uu 28 Care suite 5 25 63 65 uu 33 Total 35 78 99 122 101 6 ‘Average development margin 29.2% 30.1% 39.6% 27.1% 26.0% 32.2% Resales pop2018 pep2019 pep2020 pep202t | s
Slide 30: Capital expenditure and reconciliation of resales cash flow
11 Capital expenditure and reconciliation of resales cash flow ) oceania 1HY2023 capital expenditure in line with 1HY2022 as Oceania continues to develop at an increased build rate. Growth in resales cash flows as Oceania’s portfolio matures and resells at higher price points. Breakdown of Capital E
Slide 31: Definition of Underlying NPAT
12. Definition of Underlying NPAT Underlying Profit (or Underlying NPAT) Underlying Profit is a non-GAAP measure used by the Group to monitor financial performance and is a consideration in determining dividend distributions. Underlying profit measures require a methodology and a number of estimates
Slide 32: Glossary
13 Glossary ARCC Aged Residential Care Contract Care suite Aroom or studio certified for the provision of care by the Ministry of Health which has been licensed under an ORA, DMF Deferred Management Fees, charged under an ORA, of a maximum of 30% of the Occupation Licence Payment, which are deducted
Slide 33: Important notice and disclaimer
14 Important notice and disclaimer This presentation has been prepared solely by Oceania Healthcare Limited ("Oceania"). You must read this disclaimer before making any use of this presentation and the accompanying material or any information contained in it (‘Document’). The presentation includes n