Winton Land Limited · NZX:WIN
Winton Land — Investor Day (June 2023)
57 slides from Winton Land's investor day presentation, Jun 14, 2023
Slide 1: Winton Investor Day 14 June 2023
WINTON INVESTOR DAY 14 June 2023 : 5 | NORTHLAKE WANAKA
Slide 2: Management team
Chris Meehan Duncan Elley Simon Ash Julian Cook Chief Executive Officer General Manager, Project Delivery Chief Operating Officer Director of Retirement • Founded Winton in 2009. • Over 20 years of experience in • Over 18 years’ experience in • Over 20 years experience in • Over 30 years’ real estat
Slide 3: Agenda
1. Business Overview & Update 2. Land Developments 3. Northbrook 3
Slide 4: 1. Business Overview & Update
WINTON | LAUNCH BAY HOBSONVILLE POINT j | 1. BUSINESS OVERVIEW & UPDATE
Slide 5: Winton is a New Zealand based residential developer
1 Winton is a New Zealand based residential developer, with 27 projects across 14 communities. 2 We have a track record of delivering premium, large scale, high return projects. We buy large parcels of land not currently zoned for residential development, adjacent to growth corridors, water and 3 tr
Slide 6: Winton at a glance
Founded Large-Scale Landbank Portfolio Well Resourced 2009 by Chris and Developer Pipeline: 6,751 units1 27 Projects across 14 • 56 Staff Michaela Meehan Residential Communities • 4 Offices Retirement Shareholding Increasing Strong Balance Sheet De-Risked Forecast Pre-Sale Book Dual listed NZX and A
Slide 7: Neighbourhood units settled to H1 FY23
1,200 Neighbourhood Units settled Units to settle Units to settle to H1 FY23 H2 FY23 in FY23 6,000+ 1,000 Lakeside 111 75 186 800 Beaches 82 87 169 North Ridge - 105 105 Northlake 13 70 83 600 553 562 Launch Bay 13 2 15 449 River Terrace - 4 4 400 Total 219 343 562 247 186 171 200 219 76 0 Prior FY1
Slide 8: Updated FY23 guidance
• On 3 February 2023 we updated guidance for the 12 months ending 30 June 2023. The change to guidance was driven by delivery delay of pre-sold projects attributable to the heavy January rainfall experienced in the North Island. • For FY23, we now expect net profit after tax1 towards the lower end o
Slide 9: Slower building starts
Building consents issued¹ Slower building starts 5,400 5,000 • New consents for dwellings have fallen nationally in April 2023, falling 4,600 26% from the same month last year¹. This follows annual declines in 4,200 February and March of 29% and 25% respectively¹. 3,800 • Ready-mix concrete volumes
Slide 10: Rental price stability
Rental flow index New Zealand¹ 1750 Rental price stability 1700 1650 1600 Rental price growth rate 1550 increases again Rental price growth rate slows 1500 prior to house price peaks in November 2021 1450 Increasing rental prices The rental market appears to be showing signs of recovery, with an inc
Slide 11: Increased net migration
Increased net migration Annual Net Migration returns to pre-Covid levels¹ • Net migration in the year ending April 2023 totalled 72k 100,000 people. This compares to the 2015 to 2019 average of 55k 80,000 people per annum. • In 2021 ANZ forecasted that house prices would double in 60,000 five years
Slide 12: Slide 12
Slide 13: Winton operates across the entire development value creation chain
Unlike its major market competitors, Winton operates across the entire development value creation chain. 13
Slide 14: Illustrative multi-stage development
Illustrative multi-stage lot development Emphasis on maximising Emphasis on margin pre-sales and building improvement and project momentum to maximising returns recover 100% of land and key lead-in infrastructure Expected project breakeven (incl. 100% of land and key lead-in infrastructure) Project
Slide 15: Barriers to Entry
Barriers to Entry BARRIERS TO ENTRY IN THE RESIDENTIAL LAND DEVELOPMENT INDUSTRY BARRIERS TO ENTRY WINTON ADVANTAGE V_ Deep relationships across local and central FH] commex Complex regulatory pathway and extensive governments YH] REGULATORY timeline to approvals requires industry specific va V Prov
Slide 16: Communities and target units
Target units remaining by type Target units Communities Location Target units1 Settled2 Pre Sold Units2 remaining1 Residential Retirement Commercial 1. Northlake Wanaka 972 (564) 408 150 270 128 10 2. Lakeside Te Kauwhata 1,672 (655) 1,017 1,005 1,005 - 12 3. Launch Bay Hobsonville 352 (69) 283 37 6
Slide 17: Northlake masterplan
Key development highlights Northlake Masterplan The successful rezoning of this property increased ✓ Wanaka’s housing supply by ~24%¹. A significant range of product offerings – residential lots, ✓ dwellings, townhouses and apartments. Established Northlake Village Centre, including a ✓ restaurant,
Slide 18: Northlake Wanaka status
As at 31 December 2022 Settled Units remaining Lots 462 203 Dwellings 92 15 Apartments - 25 Townhouses - 27 Commercial 10 10 Retirement - 128 Total 564 408 Key sub-projects remaining, and status of projects • Stage 17 (48 lots) • Earthworks are complete. • Civil works commencing FY24. • Stage 18 (97
Slide 19: Earthworks, civil works, completion of works
Earthworks Civil works Completion of works Northlake Apartments & ALTA Villas Duplex Townhouses Commercial 19
Slide 20: Community highlights
Community Highlights¹ $490m Northlake’s contribution to Wanaka’s GDP to date. 537 Dwellings occupied. 12 Land lots provided at cost to Queenstown Community Housing Trust. “To transform the lives of committed people in our district by providing them an opportunity to secure an affordable place to cal
Slide 21: Video link
Link: https://youtu.be/i2qq5V8X99Y 21
Slide 22: Lakeside masterplan
Key highlights Lakeside Masterplan ✓ A significantly de-risked residential development project. Winton is only required to develop lots, there is no need to ✓ deliver completed dwellings. Infrastructure guarantee in place with the local authority to ✓ ensure the provision of infrastructure to the de
Slide 23: Lakeside construction status
As at 31 December 2022 Settled Units remaining Lots 556 1,005 Dwellings 98 - School 1 - Commercial - 12 Total 655 1,017 Construction Status • Stage 1 (359 units) • All lots have been developed and on sold. • Stage 2 (295 units) • All lots have been developed and on sold. • Stage 3 (435 units) • Eart
Slide 24: Lakeside stages
Stage 1 Completed Stage 2 Completed Lots Stage 3 Earthworks Civil Works Commercial Centre Commercial Centre 24
Slide 25: Housing Infrastructure Fund, education and community
Housing Infrastructure Fund HIF funding was secured by Waikato District Council with Winton’s assistance. This enabled the upgrade of critical infrastructure for both Lakeside and the broader community including: • Watermains; and • Wastewater treatment. Education • The existing Te Kauwhata primary
Slide 26: Video link
Link: https://youtu.be/k3_GEM2h16Q 26
Slide 27: Sunfield
Sunfield • We are moving forward with the 50 hectares of the property which is currently zoned future urban with a more traditional masterplan supported by current regulation, yielding ~2,000 lots. • In parallel, Winton is absolutely firm in its resolve to pursue alternate legislative pathways to re
Slide 28: Questions
WINTON QUESTIONS BEACHES MATARANGI
Slide 29: Northbrook
Northbrook
Slide 30: Five Exquisite Locations
®) Five Exquisite Locations near the waters edge. Northbrook
Slide 31: Northbrook
Northbrook
Slide 32: Designed for Sophisticated Living
Designed for Sophisticated Living. Northbrook Wynyard Quarter Residence Northbrook Wynyard Quarter Restaurant + The finishes, textures and styling of the * Northbrook is a sophisticated experience and + We have spent three years designing Northbrook Northbrook residences focus on warmth, comfort qui
Slide 33: Spacious and Private Luxury Residences
®) Spacious and Private Luxury Residences. Carefully designed and generous allocation of space creates a sense of comfort and luxury and allows ample space to share with others. vey Northbrook Wynyard Quarter Residence Kitchen Northbrook Wynyard Quarter Residence Living Northbrook Luxury Later Livin
Slide 34: Premium Facilities and Amenities
®) Premium Facilities and Amenities. Part of the Northbrook mission is to positively enhance the lives of residents through boutique health, wellness and leisure amenity. Each Northbrook has a fully equipped gym, yoga studio, heated pool, spa pool, infrared sauna and garden, and each location has it
Slide 35: Superior Dining Experience
®) Superior Dining Experience. Five-star dining complemented with more relaxed settings. Northbrook restaurants, bars and cafes are designed as the foundation for superior dining experiences where the in-house National Executive Chef will serve expertly curated menus. A private dining room can be bo
Slide 36: Critical Care When Needed
Critical Care When Needed. Northbrook is designed for residents to live independently and enjoy life the way they want to. Should the time come when extra help is needed, Northbrook offers care up to hospital level in the Northbrook Suites. = Northbrook Wanaka Care Suite Residence Northbrook Wanaka
Slide 37: Ageing population
900 14% 1,600 25% 800 12% 1,400 700 20% 1,200 600 10% 1,000 15% 500 400 800 8% 600 10% 300 200 400 6% 5% 100 200 0 4% 0 0% 2006 2000 2002 2004 2008 2010 2012 2014 2016 2018 2020 2022 2028F 2038F 2048F 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 38: Retirement village market
• ² • ² • • • Notes: 1. JLL - New Zealand Retirement Villages and Aged Care July 2022.2. Includes serviced apartments. 38 2. Winton recalculation based on company disclosures.
Slide 39: Competitor offering comparison
~ ✘ ✘ ✓ ~ ~ ~ ✘ ✘ ✘ ✓ ✓ ~ ~ ✓ ~ ~ ~ ~ ~ ~ ✓ ✘ ✘ ✘ ✘ ✘ ✘ ✓ ✓ ✓ ✘ ✓ ~ ~ ✓ ✘ ✘ ✘ ~ ~ ~ ~ Denotes limited instances / planned offering not yet available 39
Slide 40: The Northbrook Difference
(N) The Northbrook Difference Northbrook is positioned towards higher net worth retirees seeking to continue enjoying the benefits of their upmarket, individualised lifestyles with the added layer of care support if needed. Customer Profile * Northbrook targets a subset of the older-aged population:
Slide 41: Local competing villages
• – – – • Aspiring Retirement Village Arrowtown Lifestyle Village Presbyterian Support Village Queenstown Country Club 41
Slide 42: Northbrook Wynyard Quarter
Northbrook Wynyard Quarter Imo 7 ¢ 157 residences and care suites « Resource consent granted, development to commence in FY24 ¢ Show apartment completed and sales launched ¢ Show apartment will be flagship Northbrook sales office ¢ 1-4 bedroom residences * Upon completion, Northbrook Wynyard Quarter
Slide 43: Wynyard Quarter catchment demographics
CAGR (‘23 – ‘48) = 3.5% • 35,000 33,230 29,960 30,000 CAGR (‘23 – ‘33) = 4.5% 26,150 • 25,000 21,840 20,000 17,855 14,058 15,000 10,000 • 5,000 – 2023 2028 2033 2038 2043 2048 Source: CBRE Demographic Analysis 2022 ³ CAGR (‘23 – ‘48) = 2.2% 60,000 55,130 CAGR (‘23 – ‘33) = 3.3% 52,450 49,810 50,000
Slide 44: Northbrook Wanaka
Northbrook Wanaka ¢ 128 residences and care suites « Resource consent granted and development underway © Construction of show suite nearly complete * 2 and 3 bedroom residences ¢ Ashort walk to Lake Wakatipu, access to mountain biking and walking trails and part of Winton‘s established Northlake nei
Slide 45: Wanaka catchment demographics
CAGR (‘23 – ‘48) = 3.5% • 16,000 14,720 14,000 12,630 • 12,000 CAGR (‘23 – ‘33) = 3.8% 10,870 10,000 9,050 7,660 8,000 6,240 6,000 4,000 • 2,000 – ³ 2023 2028 2033 2038 2043 2048 Source: CBRE Demographic Analysis 2022 CAGR (‘23 – ‘48) = 4.5% 8,000 7,550 7,000 6,305 6,000 CAGR (‘23 – ‘33) = 5.8% 5,38
Slide 46: Northbrook Arrowtown
Northbrook Arrowtown ¢ 196 residences and care suites « Resource consent granted and amendment underway ¢ Site works commenced * 1-3 bedroom residences ¢ Well-appointed amenities and facilities including offers a fully equipped gym, a yoga studio, consultation rooms for massage or physiotherapy, a h
Slide 47: Northbrook project summary
Notes: 1. As at 31 December 2022. Units and Values remain subject to change as the masterplanning process progresses. 47
Slide 48: Luxury Later Living natural adjacency for Winton
(N) Luxury Later Living Natural Adjacency for Winton ¢ Leveraging existing residential land acquisition and development expertise and capability to build and operate premium retirement product. ¢ Low cost and risk due to planned roll-out within existing Winton communities. ¢ Recurring cash flows fro
Slide 49: Northbrook Wynyard Quarter Sales Launch
(N) Northbrook Wynyard Quarter Sales Launch You're ready Northbrook NZ Herald Sales Launch Advertising Luxury Later Livi
Slide 50: Northbrook Today
(N) Northbrook Today e Julian Cook, Director of Retirement, has A continued to build out the Northbrook Stee! team, appointing an operations Director manager, clinical manager, marketing manager, sales manager and sales team members. Winton Design & ¢ All projects have progressed both in Development
Slide 51: Northbrook
Northbrook
Slide 52: Plan for today - Site Tours
®) Plan for today - Site Tours 10.30am 11.30am — 12.15pm 1.15pm — 2.00pm 2.30pm Northbrook Depart Winton Sunfield Launch Bay Northbrook Wynyard Quarter Show Apartment Northbrook Wynyard Quarter Show Apartment 52
Slide 53: Disclaimer
Past performance information provided in this Document may not be a reliable indication of future performance. This Document contains certain forward-looking statements and comments about future events, including with respect to the financial condition, results, operations and business of Winton Lan
Slide 54: Winton - Best by Design
WINTON BEST BY DESIGN
Slide 55: Project list: residential
Unsettled Project # Project Location units1 1 Northlake: Residential Land Wanaka 203 2 Northlake: Dwellings Wanaka 15 3 Northlake: Townhouses Wanaka 27 4 Northlake: Apartments Wanaka 25 5 Lakeside: Residential Te Kauwhata 1,005 6 Launch Bay: The Ovation Hobsonville 8 7 Launch Bay: Townhouses and Apa
Slide 56: Project list: retirement
Unsettled Project # Project Location units1 17 Northbrook: Wanaka Wanaka 128 18 Northbrook: Launch Bay Hobsonville 216 19 Northbrook: Wynyard Quarter Auckland 157 20 Northbrook: Avon Loop Christchurch 210 21 Northbrook: Arrowtown Arrowtown 196 Total 907 Notes: 1. Target units to be developed from 1
Slide 57: Project list: commercial
Unsettled Project # Project Location units1 Northlake: Commercial Wanaka 10 (within Northlake Apartments project) 22 Lakeside: Village Shopping Centre Te Kauwhata 12 23 Sunfield: Commercial Auckland 314 Northbrook: Arrowtown Commercial Queenstown 16 (within Northbrook Arrowtown Retirement project) 2