Slide 1: 2016 Full Year Results Presentation
Aspen Group For personal use only 2016 Full Year Results Presentation 30 August 2016 1
Slide 2: Agenda
AGENDA For personal use only 1 Business overview 2 Financial highlights 3 Strategy / business update 4 FY17 focus Appendices 2
Slide 3: Business Overview
1 BUSINESS OVERVIEW Aspen continues to be in an strong position. Clear business direction. Desirable portfolio with For personal use only development upside. $40 million in cash available to grow business. • Sale of 42% interest in APPF at a 38% premium ($16.2 million) to its Net Asset Value (NAV) 1
Slide 4: Business Overview: Business Strategy
1 BUSINESS OVERVIEW For personal use only • Aspen is now a business committed to the affordable accommodation sector Exploring high total returns in the Lifestyle Village / MHE and Short Stay (e.g. parks, Business motels) segments strategy Both income generating and development opportunities • I
Slide 5: Financial Highlights – Key Financials
2 FINANCIAL HIGHLIGHTS – KEY FINANCIALS Significant improvement in statutory profit – reflecting crystallisation of value on APPF divestment For personal use only Operating profit lower due to sale of APPF and sale of non-core assets Distribution for FY16 in line with guidance at 9.2 cps Key f
Slide 6: Financial Highlights - Operating Earnings
2 FINANCIAL HIGHLIGHTS - OPERATING EARNINGS For personal use only FY16 FY15 $m CPS $m Profit / (loss) from operations Accommodation - Aspen Group properties 7.2 6.4 5.9 - APPF properties 9.3 8.2 15.8 - APPF management fees / equity 0.4 0.4 1.1 Non-core 3.2 2.8 7.7 Total gross profit 20.1 17.8 30.5 O
Slide 7: NAV per Security
2 NAV PER SECURITY NAV per security of $1.26 For personal use only $0.43 represented in cash Positive impact of sale of APPF of $0.20 ($22.5m) Negative impact of devaluation of AKV of $0.09 ($10.7m) 1.60 1.40 (0.09) 0.20 (0.01) 0.04 (0.06) (0.09) 0.01 1.20 1.00 0.80 1.26 1.25 1.26 0.60 0.40 0.
Slide 8: Strategic Focus – Investment Rationale
3 STRATEGIC FOCUS – INVESTMENT RATIONALE Ability to re-establish scale within the business through a combination of cash and debt funded For personal use only acquisitions Cash reserves of ~$40m are immediately available to pursue acquisitions Gearing of 35%, would provide debt funding capacity of a
Slide 9: Portfolio Snapshot
3 PORTFOLIO SNAPSHOT 1 Aspen holds five accommodation properties with significant development upside For personal use only Two acquisitions completed over the year Tomago Van Village, Newcastle NSW Adelaide Caravan Park, SA Two assets in exclusive due diligence Continue to focus on buildin
Slide 10: FY17 Outlook
4 FY17 OUTLOOK For personal use only Aspen is well positioned going into FY17 No debt; $40m in cash available to grow business Simplified structure Focused on affordable accommodation Lifestyle Villages / MHE Short stay (caravan parks / motels) Committed to securityholder value maximis
Slide 11: Appendices
Appendices For personal use only A Accommodation portfolio B APZ deconsolidated P&L C Balance sheet D Overhead reduction 11
Slide 12: A Accommodation Portfolio Details
A ACCOMMODATION PORTFOLIO DETAILS Mandurah Adelaide Aspen For personal use only Four Lanterns Tomago Gardens Caravan Karratha Total Estate Van Village Estate Park Village State NSW WA NSW SA WA - Mixed Segment / accommodation 100% 100% short- Transient 100% permanent residential / - type permanent s
Slide 13: B APZ Operating Earnings Deconsolidated
B APZ OPERATING EARNINGS DECONSOLIDATED APPF deconsolidated and reflected as equity accounted investment For personal use only FY16 FY15 $m CPS $m Profit from operations Accommodation - AKV 4.0 3.5 5.7 - Residential / short stay 3.4 3.0 0.2 - APPF management fees / equity 3.1 2.7 6.3 Non-core / othe
Slide 14: C Balance Sheet
C BALANCE SHEET Strong capital position provides financial flexibility to pursue multiple options For personal use only Available cash on hand of $44m versus prior year net debt of $118m FY16 property asset holdings reflect direct group holdings (prior year included APPF assets) Jun-16 Jun-15 $m
Slide 15: D Overhead Reductions
D OVERHEAD REDUCTIONS Further reduction in overheads in FY16 For personal use only Overheads reduced 12% on FY15 FY16 overheads down 61% on FY13 Aspen Group overheads, FY13-FY16 18 16 14 12 10 8 16.5 6 11.4 4 7.4 6.5 2 0 FY13 FY14 FY15 FY16 15
Slide 16: Disclaimer
Disclaimer This presentation has been prepared by Aspen Group (“Aspen”) and should not be considered in any For personal use only way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anyth