Promisia Healthcare Limited · NZX:PHL
Promisia Healthcare — Investor Presentation (July 2024)
25 slides from Promisia Healthcare's investor presentation, July 2024
Slide 1: Promisia Healthcare Investor presentation July 2024
Promisia Healthcare Investor presentation July 2024 1
Slide 2: Disclaimer
Disclaimer Promisia Healthcare Limited (Promisia) is raising capital and this presentation (Presentation) is provided in relation to the opportunity to invest in Promisia’s capital raising (Opportunity). About this Presentation Although reasonable care has been taken in the preparation of this Prese
Slide 3: Contents
Contents Group portfolio and operations Slides 4 - 8 FY24 results and FY25 outlook Slides 9 - 12 Cromwell acquisition Slides 13 - 17 Capital raise and financial position Slides 18 - 25 3
Slide 4: Our Current Portfolio
Our Current Portfolio Ranfurly Manor, Feilding Eileen Mary, Dannevirke Beds 161 Beds 58 Promisia Healthcare has a Villas 38 Villas 6 portfolio of four aged care Staff 131 Staff 45 facilities, specialising in high care Site Owned Site Owned needs and specialised aged care. Nelson Street, Feilding Our
Slide 5: Ranfurly Manor, Feilding
Ranfurly Manor, Feilding Care Facility • 79 dual (rest home & hospital) care beds • 25 specialised dementia care beds • 87% occupancy Village & Occupational Rights Agreements • 57 apartments, providing either assisted living or full care • 38 villas • Villas 100% occupied, 24 available apartments Ke
Slide 6: Nelson Street, Feilding
Nelson Street, Feilding Care Facility • 49 Rest home level care beds • Significant refurbishment completed in 2017 • Figure of 8 formation with two central courtyards • Regional demand for dementia care coupled with its location, size and layout, makes it ideal to transition up to 50% of the beds to
Slide 7: Aldwins House, Christchurch
Aldwins House, Christchurch Care Facility • Large scale purpose-built two-story care facility southeast of Christchurch CBD • Extensive refurbishment completed in 2020 • 144 dual care beds, most with ensuites • Recent certification for up to 40 YPD residents (young people with lifelong disabilities
Slide 8: Eileen Mary, Dannevirke
Eileen Mary, Dannevirke Care Facility & Village • 39 dual care beds • 19 apartments (occupational rights agreements) providing either rest home or hospital level care • 6 Villas (all occupied) Key Financials • $3.6m gross annualised revenue • $1.0m EBITDA (FY24) • March 24 valuation of $6.5m Key str
Slide 9: Results to March 2024
Results to 31 March 2024 A solid full year result, with particularly strong Operating Revenue: $26.3m (+10%) second half performance. Operating Expenses: $18.9m (+7%) Impact and momentum being created by the new leadership team is evident, with Underlying EBITDAF: $3.8m (-7%) immediate focus on: • I
Slide 10: Building a stronger foundation for growth
Building a stronger foundation for growth Operational and financial performance a result of our laser focus on our four strategic pathways: Stronger business Maximise Occupancy Invest in our business and our people, creating Grow revenue through offering quality care to a robust scalable platform fo
Slide 11: Growth objectives and value opportunities
Growth objectives and value opportunities Organic growth Aldwins House Ranfurly Manor Nelson Street • Obtain certification for 40 YPD • Widen offering for apartments to • Certification for 20 dementia care beds (completed) include assisted living (complete) beds (underway) • Increase YPD resident fr
Slide 12: Outlook for year ending March 2025
Outlook for year ending March 2025 Expect double digit earnings growth from existing operations Operational improvements already complete or underway can expect a positive impact on valuations Planned acquisitions to be both materially accretive to earnings and NTA 12
Slide 13: Planned Acquisition Cromwell, Central Otago
Planned Acquisition Cromwell, Central Otago $33m being paid for two villages and Ripponburn Hospital and Home facilities adjacent to each other in Cromwell. Golden View Large scale retirement village established in 2016, with integrated care facility built in 2022. Ripponburn Older care facility wit
Slide 14: Golden View Care Facility and Village, Cromwell
Golden View Care Facility and Village, Cromwell Care Facility & Village • 60 bed care facility, comprised of: • 48 dual care bed facility • 12 bed dementia level care wing • 19 serviced apartments • 102 independent living units (1-3 bedroom villas) • Community and recreational facilities Occupancy •
Slide 15: Ripponburn Hospital and Home, Cromwell
Ripponburn Hospital and Home, Cromwell Care Facility & Village • 46 dual care beds • 16 villas, 2 bed units with garage • 27,935 sqm of land across the site, over 70% of which has potential for future development Occupancy • Care facility: 96% • Villas: 100% Valuation • March 2024: $5m 15
Slide 16: Cromwell Acquisition Financial impact
Cromwell Acquisition Financial impact Earnings accretive Value creation • c. $10.5m of gross annualised Day one valuation uplift: operating revenue • Stage one purchase price of $14m • Significant cost saving synergies • Combined asset valuation of $19m identified using Promisia’s scale and establis
Slide 17: Transaction structure and funding
Transaction structure and funding Stage one Stage two Acquisition of: Acquisition of: • Golden View care facility • Golden View village and recreational facilities • Golden View apartments • Ripponburn facility and village $19.35m purchase price, completion August 2028 $14m purchase price with compl
Slide 18: Equity to be raised
Equity to be raised • Minimum of $3 million to be raised by way of placement and additional Share Purchase Plan (SPP) • Pricing $0.001 • Issue price at a 21% discount to NTA • Shares to be in all respects equivalent to existing equity, and NZX listed • For every share subscribed in addition will be
Slide 19: Indicative impact on shareholder register
Indicative impact on shareholder register Current Register 1 Post July 24 placement & SPP 2 Following exercise of warrants and convertible notes 3,4 Top 5 shareholders New placement Exercised warrants All other shareholders Share purchase plan Exercised convertible notes Key Assumptions: 1 As at 30
Slide 20: Indicative Financial Position
Indicative Financial Position Pro forma position ($ ’000) As at March 2024 ($ ’000) Post Cromwell acquisition (August 2024) 1 Assets Assets Cash and working capital 517 Cash and working capital 250 Fixed assets (plant & equipment) 1,269 Fixed assets (plant & equipment) 2,250 Care facilities, village
Slide 21: Debt Position and Loan Covenants
Debt Position and Loan Covenants BNZ have offered debt financing for Cromwell, as well Post Cromwell March 2024 Transaction as refinancing of the wider Group. BNZ $18.5m $29.3m This offer reflects our strong relationship with BNZ, and the progress made in executing Promisia’s strategy Senior Trust $
Slide 22: Promisia within the wider aged care sector
Promisia within the wider aged care sector • Promisia’s key point of difference is our focus on larger sized aged care facilities, with a medium to long term investment strategy, focusing on quality and value add opportunities. • Initially started with a small base, growing facilities with size and
Slide 23: Proven track record of creating value
Proven track record of creating value Aldwins House Case Study Early 2020: Acquired lease of Aldwins House. Vacant and undergoing significant refurbishment December 2020: Refurbishment complete and first wing opened March 2022: Purchased freehold for $13m March 2023: Acquired adjacent properties for
Slide 24: Conclusion
Conclusion Directors and Management team have shown an ability to materially add significant shareholder value over the last 4 years, with Ranfurly Manor and Aldwins Road seeing material valuation increases. Cromwell is earnings accretive from day 1 and offers an attractive entry pricing into an oth
Slide 25: Promisia
Promisia HEALTHCARE 2)
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