Summerset Group Holdings Limited · NZX:SUM
Summerset — H1 2012 Earnings Presentation
22 slides from Summerset's earnings presentation, Aug 21, 2012
Slide 1: Half Year Results Presentation
HALF YEAR RESULTS PRESENTATION SIX MONTHS ENDED 30 JUNE 2012 SUMMERSET GROUP HOLDINGS LIMITED 29 21 August February 2012 2012 0
Slide 2: Agenda
AGENDA 2 1H12 Result Highlights 5 Business Overview 12 Financial Results 19 Appendices 1
Slide 3: 1H12 Result Highlights
1H12 RESULT HIGHLIGHTS 2
Slide 4: Strong 1H12 Sales and Profit Growth
1H12 RESULT HIGHLIGHTS STRONG 1H12 SALES AND PROFIT GROWTH 1H12 Actual vs. NZ$000 1H12 Actual 1H11 Actual FY12 IPO Forecast 1H11 Actual New sales of occupation rights 83 41 +102% 134 Operational Resales of occupation rights 88 58 +52% 124 New units delivered 68 0 N/A 155 Net operating cash flow $28,
Slide 5: Performance in All Key Areas Up on PCP
1H12 RESULT HIGHLIGHTS PERFORMANCE IN ALL KEY AREAS UP ON PCP ■ Strong growth on 1H11 in all areas of the business ■ 88 resales, a 52% increase on 1H11 ■ 83 new sales, a 102% increase on 1H11 ■ Operating cash flow $28.8m, up 105% on 1H11 ■ Increase to reported net profit before tax in 1H11 by $4.7m
Slide 6: Business Overview
BUSINESS OVERVIEW 5
Slide 7: Continued Focus on Growth and Delivery of Build Programme
1H12 BUSINESS HIGHLIGHTS CONTINUED FOCUS ON GROWTH AND DELIVERY OF BUILD PROGRAMME TO MEET DEMAND ■ Purchase of a 7.6 hectare waterfront site in Hobsonville, Auckland ■ Commenced construction on 15th village, Summerset at Bishopscourt, Dunedin ■ Completion of main building in Hastings ■ Commencement
Slide 8: Delivery of Units in 1H12 Across Three Sites
1H12 DEVELOPMENT ACTIVITY DELIVERY OF 68 UNITS IN 1H12 ACROSS THREE SITES ■ 68 units delivered across three villages – on track to meet FY12 IPO forecast of 155 units Unit delivery 1H12 Actual ■ Completion of main building in Hastings 1H12 Care Villas Total Apartments ■ Construction commenced on mai
Slide 9: Delivery of Units in 1H12 Across Three Sites
1H12 DEVELOPMENT ACTIVITY DELIVERY OF 68 UNITS IN 1H12 ACROSS THREE SITES Nelson Hastings 8 Warkworth
Slide 10: Realised Development Margin $3.4m Versus $0.6m PCP
DEVELOPMENT MARGIN REALISED DEVELOPMENT MARGIN $3.4M VERSUS $0.6M PCP ■ Realised development margin of $3.4m in 1H12, compared to $0.6m in REALISED DEVELOPMENT MARGIN 1H11 and FY12 IPO forecast of $5.0m 6 14% ■ Development process now largely internal: 11.9% 10.5% 5 12% ■ Project and cost management
Slide 11: Strong Growth in New Sales of Occupation Rights
NEW SALES OF OCCUPATION RIGHTS STRONG GROWTH IN NEW SALES OF OCCUPATION RIGHTS ■ New sales of occupation rights up versus 1H11: 1H12 Actual FY12 IPO 1H12 Actual 1H11 Actual vs. 1H11 ■ Gross proceeds: $28.7m, 107% increase on 1H11 Forecast Actual ■ Occupation rights: 83, up 102% on 1H11 Gross proceed
Slide 12: Resales of Occupation Rights Up 52% on PCP
RESALES OF OCCUPATION RIGHTS RESALES OF OCCUPATION RIGHTS UP 52% ON PCP ■ Resales of occupation rights up versus 1H11: 1H12 Actual FY12 IPO 1H12 Actual 1H11 Actual vs. 1H11 ■ Realised resale gains: $4.2m, 35% up on 1H11 Forecast Actual ■ Occupation rights resold: 88, 52% up on 1H11 Realised resale $
Slide 13: Financial Results
FINANCIAL RESULTS 12
Slide 14: Net Profit Before Tax Up $4.7m on PCP
1H12 REPORTED PROFIT (NZ IFRS) NET PROFIT BEFORE TAX UP $4.7M ON PCP ■ 1H12 revenue up 12.5% versus 1H11 due to strong operational 1H12 Actual performance FY12 IPO NZ$000 1H12 Actual 1H11 Actual vs. 1H11 Forecast Actual ■ Fair value movement on investment property at $4.4m Total revenue $18,203 $16,
Slide 15: Underlying Profit $6.9m, Up 133% on PCP
1H12 UNDERLYING PROFIT * UNDERLYING PROFIT $6.9M, UP 133% ON PCP ■ Strong underlying profit performance, driven by: 1H12 Actual FY12 IPO NZ$000 1H12 Actual 1H11 Actual vs. 1H11 ■ Realised gains on resales (88 occupation licenses Forecast Actual resold in 1H12 compared to 58 in 1H11) Reported profit
Slide 16: Net Operating Cash Flow Up 105% at $28.8m
1H12 CASH FLOWS NET OPERATING CASH FLOW UP 105% ON PRIOR YEAR AT $28.8M 1H12 Actual FY12 IPO ■ Operating cash strong due to high occupation rights sales and NZ$000 1H12 Actual 1H11 Actual vs. 1H11 Forecast good operating performance Actual Care fees and village services $13,328 $9,331 42.8% $25,143
Slide 17: Total Assets Up 18% on Prior Year at $645m
1H12 BALANCE SHEET TOTAL ASSETS UP 18% ON PRIOR YEAR AT $645M 1H12 Actual FY12 IPO ■ Net asset growth of 37% from June 2011 NZ$000 1H12 Actual 1H11 Actual vs. 1H11 Forecast Actual ■ Investment property valued at $588m Investment property $588,397 $501,936 17.2% $632,622 ■ Other assets include land a
Slide 18: Questions?
BE SUMMERSET SURE QUESTIONS?
Slide 19: 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 20: Appendix
APPENDIX 19
Slide 21: Existing Portfolio at 30 Jun 2012
EXISTING PORTFOLIO AT 30 JUN 2012 1,554 EXISTING RETIREMENT UNITS AND 327 CARE BEDS Existing Portfolio– as at 30 June 2012 Total Retirement Villas Apartments Care Apartments Care Beds Units Wanganui 70 18 12 100 37 Paraparaumu 92 12 10 114 40 Palmerston North 90 12 - 102 41 Havelock North 94 18 10 1
Slide 22: Land Bank at 30 Jun 2012
LAND BANK AT 30 JUN 2012 LAND BANK OF 1,234 RETIREMENT UNITS AND 280+ CARE BEDS Land bank– as at 30 June 2012 Total Retirement Villas Apartments Care Apartments Care Beds Units Dunedin 31 64 29 124 40 Hamilton 140 50 10 200 40 Hastings 69 - - 69 - Karaka 60 85 10 155 40 Katikati 111 26 20 157 40 Nel
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