Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — FY2024 Earnings Presentation
34 slides from Oceania Healthcare's earnings presentation, May 29, 2024
Slide 1: Results Presentation for the Financial Year Ended 31 March 2024
@ OCEANIA RESULTS PRESENTATION FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024
Slide 2: CEO Address: Brent Pattison
Slide 3: FY2024 highlights
FY2024 highlights We have continued to deliver to strategy with favourable results for the 12 months to 31 March 2024. Q OCEANIA elivering to strategy Working to de-lever the business () 104% growth in Total Comprehensive Income, increasing to $70.5m In FY2024, up from $34.5m in FY2023 A) 3% growth
Slide 4: Transformation through innovation
Transformation through innovation Since long before our NZX listing we’ve been reimagining what better retirement living looks like. We've achieved a lot in the past seven years, And there’s more to come.
Slide 5: Strategic investment decisions
Strategic investment decisions G@ oceania Since IPO, management has made conscious investment decisions across M&A and development activity (adding 1,378 new units and care suites) to best position Oceania for the future. & Developments completed since IPO (1,378 new units and care suites) 47 fil @
Slide 6: Developments completed in FY2024
Developments completed in FY2024 91 apartments, 87 care suites and 4 villas completed in FY2024 at five strategic sites. Q OCEANIA The Bayview Tauranga | 8 3 Total units Stage 3 completed in December 2023 completed @ 28 Apartments completed in 2HY2024 ‘apartments completed Le The Helier St Heliers,
Slide 7: Developments completed in FY2024 (continued)
Developments completed in FY2024 (continued) G@ oceania 91 apartments, 87 care suites and 4 villas completed in FY2024 at five strategic sites. Redwood 5 5 The Bellevue | 39 Blenheim Papanui, Christchurch . Total units | Total units Completedin March 2024 completed Stage 2 completed in September 202
Slide 8: Development pipeline
Development pipeline G@ oceania Oceania currently has 264 units and care suites under construction! with 85% on track to be completed by December 2024. 85% of current development will be bought to market by Decer 2 Meadowbank Stage Six, Auckland os Elmwood Stage One, Auckland Waterford Stage One, Au
Slide 9: Strategy and portfolio transformation
Strategy and portfolio transformation G@ oceania Since IPO we have added over 1,350 units and care suites through developments and acquisitions to reweight to a premium portfolio. Sites with Value fro! velopments and acq Portfolio valuation Region Independent valuation development land of remaining
Slide 10: it OCEANIA
it OCEANIA
Slide 11: Sustainability and Climate
Sustainability and Climate Sustainability underpins Oceania’s strategic pillars, and we are committed to integrating thinking across the business. (#) OCEANIA Offer Construction waste diversion targets exceeded Targeting our first NZGBC Homestar 7 project (10 projects already certified to Homestar 6
Slide 12: Trading results
Trading results from FY2023, highlighting the value in premiumising the portfolio. Significant increases to realised capital gains and premium care revenue Q OCEANIA With increased sales volumes and prices, capital gains have increased 14.4% from FY2023. On the care side, premium care revenue is up
Slide 13: Sales update
Sales update Q OCEANIA Both new sales and resales have increased on FY2023, with the average achieved price continuing to grow, even in a slower residential property market. Sales volumes Fy2022 FY2023 Fy2024 x 256 218 mB Resales ™& New sales Development and resale margins 37.6% 31.1% 28.0% 21.2% 21
Slide 14: Our care business
Our care business An increase in premium revenue streams has enabled us to maintain care EBITDA margins despite lack of industry funding. Q OCEANIA Premium care revenue Care occupancy NZDm 9.3% CAGR 92.0% 93.1% 90.4% 92.0% 1% 92.6% 22.6 no 20.4 55 6.4 Fy2022 Fy2028 Fy2024 Fy2022 Fy2023 Fy2024 PAC re
Slide 15: Future cash recycling
Future cash recycling G@ oceania Oceania’s debt is primarily development related, supported by current and future new sales stock, provi Development debt to underlying development assets (NZDm)' Current and future development stock will be used to repay development debt assets mo __stsasee eS Sept 2
Slide 16: Balance Sheet Management
Balance Sheet Management Oceania holds suffi all banking covenants. ient headroom i its $725m of debt fac! ae Interest coverage S Cost of debt Our ICR covenant requires a ratio of Adjusted EBITDA to Net Interest Charges" of = 2.0x. Oceania has flexibility to switch facility limits between each of th
Slide 17: Appendices
01 02 03 Ou 05 06 07 08 09 10 " 12 13 14 15 16 17 (H+) OCEANIA Underlying earnings Income Statement Care segment Village segment Proforma group underlying earnings Cash flow Resales cash flow and capital expenditure Embedded value Balance sheet Portfolio summary Future development outlook Developmen
Slide 18: Underlying earnings
° ° 01 Underlying earnings I OCEANIA Underlying EBITDA of $82.6m for the 12 month period ended 31 March 2024, a 3% increase on FY2023. Reconciliation of underlying adjustments Segmental underlying adjustments NZDm Fy2024 Fy2023, Vor Fy2022 NZDm Fy2024 Fy2028 Var Fy2022 Reported Net profit after tax
Slide 19: Income statement
O2 Income statement @ oceania Total Comprehensive Income for the period of $70.5m. Key valuation assumptions remained largely consistent from FY2023 but for moderate increases applied to incoming prices. Summary of income statement Key IP and PP&E CBRE valuation assumption changes NZDm FY2024 Fy2023
Slide 20: Care segment
03 Care segment @ oceania EBITDA per bed has increased to over $10,000. Our premium care revenue continues to grow demonstrating the success of our care premiumisation strategy and the continued acceptance of the care suite product. Aged care underlying EBITDA Occupancy rates NZDm Fy2024 Fy2023 Var
Slide 21: Village segment
O4 Village segment Total sales volumes and capital gains increased relative to FY2023, driving higher underlying EBITDA. Village underlying EBITDA Villa and apartment DMF revenue NZDm NZDm FY2024 FY2023 Var FY2022 = 39.0 38.6 Villa and apartment DMF 38.6 39.0 (0.3) 33.1 33.4 Retirement village servi
Slide 22: Proforma group underlying earnings
O5 Proforma group underlying earnings Proforma group underlying earnings for FY2024 of $82.6m. Adjustments include normalising for the impact of divesting, closing and exiting several sites from our ongoing operations. Hy) OCEANIA During the period to 31 March 2024 several sites have been exited, cl
Slide 23: Cash flow
06 Cash flow Operating cash flow of $85.4m for FY2024 compared to $70.2m for FY2023. Statement of cash flows NZDm Fy2024 Fy2023 Vor Fy2022 Receipts from customers: 207.9 196.6 1.3 190.1 Payments to suppliers and employees (263.3) (214.3) (49.0) (215.5) Rental payments in relation to right of use ass
Slide 24: Reconciliation of resales cash flow and capital expenditure
ope ae ° ° 07 Reconciliation of resales cash flow and capital expenditure oceania Growth in resales cash flows as Oceania’s portfolio matures and resells at higher price points. Reconciliation of resales cash flow Breakdown of Capital Expenditure NZDm Fy2024 FY2023 NZDm Fy2024 FY2023 Receipts from N
Slide 25: Embedded value in existing portfolio
O8 Embedded value in existing portfolio @ oceania The embedded value in our portfolio has increased 12.7% since March 2023 to $516.8m as at FY2024 and will underpin the future realisation of cash flows from deferred management fees and resale gains. Embedded Value NZDm oe 516.8 shee + Embedded value
Slide 26: Balance sheet
O9 Balance sheet Q OCEANIA Total assets increased by $237.4m from 31 March 2023 driven by growth in the value of retirement village and care properties and continued development. Oceania’s net adjusted value is $1.46 per share as at 31 March 2024, up $0.10 since 31 March 2023. Balance sheet Net adju
Slide 27: Portfolio summary
10 Portfolio summary G@ oceania As at 31 March 2024. The Sands North Shore = ay oe 108 Stoke Nelson : : 124 124 Te Mana North Shore 46 = = 46 Woodlands Tosmon 23 Eg 36 93 ‘The Helier - 32 79 1m Middlepark Christchurch 33 21 = EY Remuera Rise Auckland 12 = Ey 70 Palm Grove Christchurch 28 57 32 17 Ed
Slide 28: Future development outlook
11 Future development outlook @ oceania 61% of our existing portfolio is now premium units and care suites as we progress to ~75% premium / ~25% standard at the end of our current pipeline. Current & future portfolio composition! Existing portfolio Carebeds Care suites ILUs Total ye 1,396 1,698 mo C
Slide 29: Development pipeline
12 Development pipeline Status as at 31 March 2024. Sites Status ILUs Care suites Gross units Net units, Notes Meadowbank ‘Consented - 4O 4O 40 ‘Commenced construction FY2024 Under Construction 68 - 68 68 Scheduled for completion FY2025 ‘Consented 107 - 107 107 Consented 69 - 69 69 ‘Consented 68 - 6
Slide 30: Reconciliation of portfolio movements
13 Reconciliation of portfolio movements Hy) OCEANIA Changes Conversion Conversion Changes in Changes in As at in existing of beds to of units to New units pipeline — gross pipeline - Asat Fy2028 capacity care suites care suites New units acquired delivered units added decommissions Fy2024 Care beds
Slide 31: Summary of unit sales
. 14 Summary of unit sales OCEANIA New Sales Fy2019 pep2020 pep2021 Fy2022 Fy2023 FY2024 Apartment 53 59 67 92 5h 8i Care suite 57 128 115 66 74 68 Total 133 206 222 184 128 157 ‘Average development margin. 36.0% (37.2% 26.1% 28.0% 37.0% 31.1% Resales Fy2019 pep2020 pep2021 Fy2022 | Fy2023 Fy2024 Vi
Slide 32: Definition of Underlying NPAT
15 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 33: Glossary
16 Glossary RCC Aged Residential Care Contract Care suite A room 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 34: Important notice and disclaimer
17 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