Summerset Group Holdings Limited · NZX:SUM
Summerset — FY2014 Earnings Presentation
32 slides from Summerset's earnings presentation, February 2015
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION YEAR ENDED 31 DECEMBER 2014 SUMMERSET GROUP HOLDINGS LIMITED 29 February 2015 24 2012 0
Slide 2: Agenda
AGENDA 2 FY14 Result Highlights 6 Business Overview 20 Financial Results 25 Final Dividend 29 Appendix 1
Slide 3: FY14 Result Highlights
FY14 RESULT HIGHLIGHTS 2
Slide 4: FY14 Result Highlights: Operational and Financial
FY14 RESULT HIGHLIGHTS RECORD NEW SALES AND RETIREMENT UNIT DELIVERY HIGHLIGHTS FOR FY14 FY14 Actual vs. FY14 Actual FY13 Actual FY12 Actual FY13 Actual * New sales of occupation rights 286 228 25.4% 167 Operational Resales of occupation rights 172 174 -1.1% 164 Total sales 458 402 13.9% 331 New ret
Slide 5: Record new sales and retirement unit delivery highlights
FY14 RESULT HIGHLIGHTS RECORD NEW SALES AND RETIREMENT UNIT DELIVERY HIGHLIGHTS FOR FY14 ■ 261 new retirement units delivered, up 25% on FY13 – on track for delivery of 300 retirement units in FY15 ■ New sales 25% higher than FY13 ■ Higher new sales driven by strong sell down right across the portfo
Slide 6: Strong trends continue across the business
FY14 RESULT HIGHLIGHTS STRONG TRENDS CONTINUE ACROSS THE BUSINESS $1100m TOTAL ASSETS $25m UNDERLYING PROFIT $23m $1000m $21m $900m $19m $17m $800m $15m $1043m $24.4m $13m $22.2m $700m $845m $11m $15.2m $600m $702m $9m $7m $500m FY12 FY13 FY14 $5m FY12 FY13 FY14 Total assets ($m) Underlying profit (
Slide 7: Business Overview
BUSINESS OVERVIEW 6
Slide 8: FY14 Review
FY14 REVIEW RECORD UNDERLYING PROFIT IN FY14 ■ Delivered 261 retirement units in FY14, a record for Summerset, and 25% more than FY13 ■ On track for delivery of 300 retirement units in FY15 ■ Karaka, Hobsonville, Trentham extension and New Plymouth villages opened in FY14 ■ Three new village centres
Slide 9: Summerset Snapshot
SUMMERSET SNAPSHOT THIRD LARGEST OPERATOR, SECOND LARGEST DEVELOPER ■ 2,116 retirement units (villas, apartments and care apartments) ■ 485 care beds ■ More than 3,000 residents ■ 261 retirement units delivered in FY14 ■ On track for 300 retirement units in FY15 ■ 20 villages completed or in develop
Slide 10: Summerset Strategy
SUMMERSET STRATEGY SUMMERSET BUILDS, OWNS AND OPERATES RETIREMENT VILLAGES IN NZ ■ Focus on continuum of care model ■ High quality care and facilities within every village ■ Continued investment and upgrade of existing facilities ■ Internal development model embedded ■ Nationwide brand offering ■ Cu
Slide 11: Operations and Staff
OPERATIONS AND STAFF FOCUS ON CLINICAL QUALITY AND STAFF TRAINING ■ In 2014 a new Clinical Governance Committee of the Board has been established to further support Summerset’s commitment to deliver care of the highest standard, at all times ■ Review of our quality programme, to promote consistent q
Slide 12: Demographics
DEMOGRAPHICS POPULATION OVER 75 YEARS FORECAST TO TRIPLE FROM 2014 TO 2068 POPULATION GROWTH 75 YEARS AND OVER 1,200,000 18% 16% 1,000,000 14% 800,000 12% 10% 600,000 8% 400,000 6% 4% 200,000 2% - 0% 2014 2018 2023 2028 2033 2038 2043 2048 2053 2068 NZ population 75+ (left hand axis) % of population
Slide 13: Summerset Growth
SUMMERSET GROWTH 17 YEARS OF CONSISTENT DELIVERY AND GROWTH SUMMERSET BUILD RATE 2,500 2,116 2,000 261 1,855 1,646 209 1,486 160 1,500 Retirement Units 1,352 122 1,272 80 1,109 163 *2011 existing stock includes 12 units acquired 983 126 1,000 921 as part of the Nelson site acquisition 62 1,855 795 1
Slide 14: FY14 Development Activity
FY14 DEVELOPMENT ACTIVITY DELIVERY OF 261 RETIREMENT UNITS IN FY14 ACROSS NINE SITES ■ 261 retirement units delivered across nine villages Care Unit Delivery FY14 Villas Apartments Total Care Beds Apartments ■ Three new villages opened and one existing village extension Dunedin - 20 20 40 42 underwa
Slide 15: FY14 Development Activity: Village Photos
FY14 DEVELOPMENT ACTIVITY DELIVERY OF 261 RETIREMENT UNITS IN FY14 ACROSS NINE SITES Hamilton Karaka Trentham Warkworth Nelson Katikati 14
Slide 16: FY14 Development Activity: Village Photos
FY14 DEVELOPMENT ACTIVITY DELIVERY OF 261 RETIREMENT UNITS IN FY14 ACROSS 9 SITES Trentham New Plymouth Warkworth Hobsonville New Plymouth Dunedin 15
Slide 17: Future Development: Land Bank
FUTURE DEVELOPMENT LAND BANK OF 1,881 RETIREMENT UNITS AND 556 CARE BEDS ■ Land bank of 1,881 retirement units spread across Land Bank - as at 31 December 2014 * brownfield and greenfield sites Total ■ Additional pipeline of 556 care beds across existing Care Villas Apartments Retirement Care Beds s
Slide 18: Development Margin
DEVELOPMENT MARGIN STRONG PERFORMANCE IN REALISED DEVELOPMENT MARGIN ■ Development margin of $16.7m, and 15.7%, in FY14, up 60% on FY13 ■ Strong 2H14 development margin of 16.6% ■ We expect to achieve a FY15 development margin of 17% DEVELOPMENT MARGIN – HALF ON HALF MARGINS DEVELOPMENT MARGIN – FUL
Slide 19: New Sales of Occupation Rights
NEW SALES OF OCCUPATION RIGHTS NEW SALES GROSS PROCEEDS UP 34% ON FY13 TO $106M ■ FY14 lift in sales associated with continued build FY14 Actual FY13 Actual FY14 Actual vs. FY12 Actual programme and new villages opening FY13 Actual * Gross proceeds ■ Over the last two years, annual sale rates have l
Slide 20: Resales of Occupation Rights
RESALES OF OCCUPATION RIGHTS RESALES OF 172 OCCUPATION RIGHTS IN FY14 ■ Gross proceeds of $54.9m, up 6% on FY13 FY14 Actual FY13 Actual FY14 Actual vs. FY12 Actual FY13 Actual * ■ Occupation rights resold: 172, down 1% on FY13 Gross proceeds 54,854 51,602 6.3% 44,514 ■ Higher proportion of apartment
Slide 21: Financial Results
BUSINESS FINANCIALOVERVIEW RESULTS 20
Slide 22: Reported Profit (IFRS)
FY14 REPORTED PROFIT (IFRS) NET PROFIT AFTER TAX UP 58% VERSUS FY13 ■ NPAT up $20m relative to FY13 FY14 Actual vs. NZ ($000) FY14 Actual FY13 Actual FY12 Actual FY13 Actual * ■ FY14 total revenue up 20% versus FY13 Total revenue 54,285 45,208 20.1% 38,120 ■ FY14 total expenses up 24% versus FY13 Re
Slide 23: Underlying Profit
FY14 UNDERLYING PROFIT REALISED DEVELOPMENT MARGIN UP 60% ON FY13 ■ Record underlying profit of $24.4m, up 10% on NZ ($000) FY14 Actual FY13 Actual FY14 Actual vs. FY12 Actual FY13 Actual * FY13 ■ Record development margin achieved in FY14, Reported profit after tax 54,173 34,223 58.3% 14,821 with a
Slide 24: Cash Flows
FY14 CASH FLOWS SUBSTANTIAL INVESTMENT IN NEW VILLAGE BUILDS FY14 Actual vs. NZ ($000) FY14 Actual FY13 Actual FY12 Actual ■ Net operating cash flow of $110.4m for FY14, up 25% on FY13 Actual * FY13 Care fees and village services 36,211 31,797 13.9% 27,391 ■ Strong investment in new villages continu
Slide 25: Balance Sheet
FY14 BALANCE SHEET TOTAL ASSETS OF $1.0B, UP 23% FROM $845M IN FY13 ■ Total assets have reached a milestone of $1.0b, up 23% on NZ ($000) FY14 Actual FY13 Actual FY14 Actual vs. FY12 Actual FY13 FY13 Actual * ■ Investment property valuation of $958m, up 23% on FY13 Investment property 958,171 776,63
Slide 26: Final Dividend
FINAL DIVIDEND 25
Slide 27: Summerset Board Declares FY14 Final Dividend
FY14 FINAL DIVIDEND SUMMERSET BOARD DECLARES FY14 FINAL DIVIDEND ■ The Summerset Board have declared a final dividend of 2.1 cents per share, unimputed ■ This represents a total pay-out for the second half of 2014 of approximately $4.6m ■ Total dividends paid for the 2014 year (interim and final) ar
Slide 28: Questions?
BE SUMMERSET SURE QUESTIONS?
Slide 29: 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 30: Appendix
’ APPENDIX tie
Slide 31: Portfolio as at 31 December 2014
PORTFOLIO AS AT 31 DECEMBER 2014 2,116 RETIREMENT UNITS AND 485 CARE BEDS Existing Portfolio – as at 31 December 2014 Total Retirement Villas Apartments Care Apartments Care Beds Units Aotea 96 33 38 167 - Dunedin 61 20 20 101 41 Hamilton 98 - 10 108 30 Hastings 146 5 - 151 - Havelock North 94 28 -
Slide 32: Land Bank as at 31 December 2014
LAND BANK AS AT 31 DECEMBER 2014 LAND BANK OF 1,881 RETIREMENT UNITS AND 556 CARE BEDS Land Bank - as at 31 December 2014 * Total Retirement Villas Apartments Care Apartments Care Beds Units Casebrook 179 - 53 232 49 Ellerslie 62 147 43 252 80 Hamilton 85 - 25 110 46 Hobsonville 89 70 30 189 90 Kara
Summerset Group Holdings — FY2014 Earnings Presentation on 6ix