Eureka Group Holdings Limited · ASX:EGH
Eureka — H1 FY2018 Earnings Presentation
18 slides from Eureka's earnings presentation, Feb 26, 2018
Slide 1: Investor Presentation Half Year ended 31 December 2017
Eureka Group Holdings Limited Investor Presentation Half Year ended 31 December 2017 February 2018 For personal use only 1
Slide 2: Index
For personal use only Index 1. Highlights 2. Eureka Business Overview 3. Key Financials 4. Market Sector Overview 5. Operations 6. Capital Recycling 7. Outlook Appendix A - Substantial Shareholders 2
Slide 3: 1.0 Highlights
1.0 Highlights • Continued growth of portfolios with 3 For personal use only • Continued improvement of occupancy levels lifting from 83% in February 2017 additional villages acquired. to 89.6% in June 2017 and 92% in December 2017 • Progress achieved in recycling non core assets including sale of t
Slide 4: 1.0 Highlights (cont.)
For personal use only 1.0 Highlights (cont.) • Couran Cove - Amended the existing agreement and entered in to an additional agreement in relation to loans of $2.9M to Couran Cove resort. This strengthens Eureka’s position and accelerates the anticipated repayment in full prior to 30 June 2018. The l
Slide 5: 1.0 Highlights (cont.)
For personal use only 1.0 Highlights (cont.) • Capitalisation rate - Recent external valuations indicate capitalisation rates are improving. • Terranora - The process of obtaining compliance with development approval conditions at Terranora resort continues. Refer subsequent details. • Outlook - Fun
Slide 6: 2.0 Eureka Business Overview
2.0 Eureka Business Overview STRATEGY Primary focus to provide low cost rental accommodation and limited associated care with a focus on independent retirees who For personal use only are completely or primarily supported by the Australian Government pension and location allowances Target market
Slide 7: 3.0 Key Financials
3.0 Key Financials The table below summarises the results for the half year ended 31 December 2017 For personal use only • Prior year revenue ($'000) 31-Dec-17 31-Dec-16 included consulting Total revenue (excluding revaluation gain of Investment property) 11,322 12,356 fees to Couran Cove and Operat
Slide 8: 3.0 Key Financials (cont.)
3.0 Key Financials (cont.) The table below summarises the balance sheet at 31 December 2017 For personal use only ($'000) 31-Dec-17 30-Jun-17 • Inventory includes reclassification of Couran Assets Cove cabins from Cash and cash equivalents 4,411 4,395 Trade and other receiveables 3,079 2,632 Investm
Slide 9: 3.0 Key Financials (cont.)
3.0 Key Financials (cont.) The table below summarises the Statement of Cash Flows for the half year ended 31 December 2017 For personal use only 31-Dec-17 31-Dec-16 Cash Flows from Operating Activities Receipts from Customers 11,536 10,448 • Positive operating cashflow Payments to suppliers and empl
Slide 10: 4.0 Market sector overview
4.0 Market sector overview For personal use only • Expanding gap in the market as other service providers move their product up in the market price and away from the rental option. • Recent trends of villages and also low cost alternatives including caravan parks move to the DMF and MHE models, sign
Slide 11: 5.0 Operations
5.0 Operations Eureka has created a strong operating base to For personal use only enable economies of scale and scope to leverage further • 36 villages under management (including owned villages) – approx. 2,000 units • 27 of those villages with freehold land and building ownership • Regional clust
Slide 12: 6.0 Capital Recycling
6.0 Capital Recycling The Key assets being actively pursued or being considered for capital recycling include: For personal use only • Amber Lodge SRF (sale contracted) • Victoria St, Mackay (sale contracted) • Couran Cove (refer detailed slide) • Terranora (refer detailed slide) • SRF villages (ref
Slide 13: 6.0 Capital Recycling (cont.) Terranora Resort
6.0 Capital Recycling (cont.) Terranora Resort For personal use only Assets 60 Apartments Obtain strata title and sale of apartments 4.8ha development land Obtain separate title and sale On site manager office and apartment Either retain and manage or sale Total book value $11m • Existing 60 units c
Slide 14: 6.0 Capital Recycling (cont.) Couran Cove
6.0 Capital Recycling (cont.) Couran Cove Assets Working Capital loan receivable – $2.0m Collect loan For personal use only Couran Cove Entities Fixed asset loan receivable – Couran $0.9m Collect loan Cove Entities Land option – Couran Cove Entities $3.0m Partner with builder to develop (offset agai
Slide 15: 6.0 Capital Recycling (cont.) Supported Care Villages SRFs
6.0 Capital Recycling (cont.) Supported Care Villages SRFs For personal use only Assets Village Book value Strategy Fair Value at 31 Dec 17 Adjustment Alexam – Adelaide $3.6m Trading profitably – ($1.0m) transition to NDIS Amber Lodge – Adelaide $2.2m Sold to settle in March ($0.6m) Lambert – Mt Gam
Slide 16: 7.0 Outlook
For personal use only 7.0 Outlook • Core retirement villages continue to perform well with focus on further occupancy improvement. • Demographic trends of ageing population and housing affordability strongly supports Eureka target market. • Capital recycling has commenced including the sale of 2 ass
Slide 17: Appendix A Substantial Shareholders
Appendix A Substantial Shareholders For personal use only The substantial shareholders as notified to the ASX include: • Cooper Investors 10.7% • Tribeca Investment Partners 9.3% • Robin Levison (Non Executive Director) 5.6% • Lachlan McIntosh (Non Executive Director) 5.2% 17
Slide 18: Disclaimer & Contact Information
Disclaimer & Contact Information NO responsibility for contents of Presentation To the maximum extent permitted by law, Eureka Group Holdings Limited (ABN 15 097 241 159). its officers, advisers and representatives: For personal use only • make no representation, warranty or undertaking, and accept
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