Slide 1: Aspen Group Limited Results Presentation FY17
ASPEN GROUP LIMITED For personal use only Results Presentation FY17 31 August 2017
Slide 2: Contents
Contents For personal use only 1 FY17 Highlights 2 Financial Results 3 Market Update 4 Portfolio and Acquisitions Update 5 Operating Model 6 Outlook 7 Appendices
Slide 3: FY17 Highlights
For personal use only FY17 Highlights 3
Slide 4: FY17 Highlights: acquisitions program enabled by enhanced platform
FY17 Highlights 1.1 Aspen continues it’s acquisitions program enabled by enhanced platform For personal use only STRATEGIC FINANCIAL PORTFOLIO • Reset business strategy and established • Earnings and distribution in line with • 60%1 core assets growth achieved action plans focused on scaling of the
Slide 5: Key milestones
Key milestones 1.2 For personal use only 1H 2H 2018 FY17 FY17 • Simplification of • Acquisitions – Tourist • Targeting ~$70 - $90 corporate structure & Parks million in acquisitions reduced corporate ‒ Barlings Beach • Development to overhead ‒ Koala Shores1 commence at Tomago • Management change •
Slide 6: Financial Results
For personal use only Financial Results 6
Slide 7: Key performance metrics
Key performance metrics 2.1 Performance reflects rebasing of group at lower scale For personal use only FY17 FY16 Change Operational Performance Statutory Loss $m $m % • Current year impacted by Statutory (loss) / profit (0.2) 9.9 (102.2%) – Impairments and losses related to legacy assets and liabil
Slide 8: Reconciliation of statutory profit to operating earnings
Reconciliation of statutory profit to operating earnings 2.2 For personal use only 1 June 17 June 16 $m $m Statutory (loss) / profit after tax (0.2) 9.9 Tax benefit - - Statutory (loss) / profit before tax (0.2) 9.9 Fair value gain on deconsolidation of APPF / Gain on termination of management right
Slide 9: Financial position
Financial position 2.3 For personal use only FY17 FY16 Change Balance Sheet Property assets $m $m $m • Two acquisitions (Tween Waters and Barlings Beach) settled for $20.3 million. Accommodation property assets1 71.2 80.0 (8.6) • Acquisition of Koala Shores remains Assets held for sale 35.5 8.2 27.3
Slide 10: Market Update
For personal use only Market Update 10
Slide 11: Sector Focus – Tourism: domestic visitors and expenditure
Sector Focus – Tourism 3.1 Domestic visitors and expenditure – FY16 and FY17 comparative For personal use only Domestic Tourism NT Growth Australia VISITORS1.5m ▼7% SPEND $1.9b ▲2% ▲3% Visits QLD WA VISITORS21.2m ▲4% VISITORS9.5m ▼5% SPEND $15.3b ▲6% NSW Visits SPEND $7.3b▼2% ▲4% Growth SA Visits ▲1
Slide 12: Sector Focus – Tourism: domestic visitors forecast FY18
Sector Focus – Tourism 3.2 Domestic visitors – Forecast FY18 For personal use only Domestic Tourism Growth Australia NT NIGHTS 8m ▲1% ▲1.5% Visitor Nights QLD WA NIGHTS 87m ▲3.1% NSW Visits NIGHTS 43m ▲.6% ▲0.9% Growth SA Visits ▲2.7% Growth NT Visits ▲1% Growth NSW NIGHTS 99m ▲.9% SA NIGHTS 22m ▲2.
Slide 13: Sector Focus – Tourism: Aspen positioned to capitalise
Sector Focus – Tourism 3.3 Aspen positioned to capitalise in this environment For personal use only High international visitation to Australia will be predominantly focused on Increased the capital cities - driving city hotel rates up. demand for holidays in Domestic consumers will be looking outsid
Slide 14: Sector Focus – Retirement
Sector Focus – Retirement 3.4 Value of intending retirees homes significantly outweighs savings at an average of 495k offering significant opportunity to unlock capital through downsizing For personal use only Total intending to retire 2016: 395,000 2014: 411,000 Average Gross Wealth* $286k $268k Av
Slide 15: Portfolio and Acquisitions Update
For personal use only Portfolio and Acquisitions Update 15
Slide 16: Property portfolio
Property portfolio 4.1 60%1 core assets growth achieved through tourism park acquisitions negotiated in FY17 For personal use only 30 June 2016 $m % 30 June 2017 $m % Core Core Retirement / Tourism 40.0 47% Retirement / Tourism 1 71.1 62% Corporate 11.0 13% Corporate 10.3 9% 51.0 59% 81.4 71% Non-co
Slide 17: Accommodation portfolio – Retirement
Accommodation portfolio 4.2 Retirement For personal use only Four Tomago Mandurah Lanterns Van Gardens Total Estate Village3 Estate State NSW NSW WA - Carrying value4 ($m) 9.3 11.3 10.3 30.9 Cap rate % 7.75% 9.00% 8.75% 8.39% Land tenure Freehold Freehold Freehold - Area (ha) 3.9 13.9 6.8 24.6 Four
Slide 18: Accommodation portfolio – Tourism
Accommodation portfolio 4.3 Tourism For personal use only Adelaide BIG4 Tween Barlings BIG4 Koala Caravan Total Waters Beach4 Shores5 Park State NSW NSW NSW SA - Carrying value6 ($m) 7.2 13.3 10.2 9.5 40.2 Cap rate % 8.75% 8.50% - 9.50% 8.89% Freehold/ Land tenure Freehold Freehold Freehold1 - Lease
Slide 19: Accommodation portfolio – Corporate
Accommodation portfolio 4.4 Corporate For personal use only Aspen Karratha Total Village State WA - Carrying value2 ($m) 10.3 10.3 Cap rate % 17.75% 17.75% Land tenure Freehold - Area (ha) 2.9 2.9 Value per ha ($m) 3.56 3.56 Inventory Extended - - Short cabins 1 180 180 Short sites 4 - - Total 180 1
Slide 20: Development and pipeline: Tomago Van Village
Development and pipeline 4.5 Tomago Van Village For personal use only Development • Tomago – Development approval granted for 53 new homes, which will allow for progressive development and after consolidations (generally short stay), will provide for a net increase of circa 34 homes by the end of 20
Slide 21: Development and pipeline: Four Lanterns expansion
Development and pipeline 4.6 Four Lanterns expansion For personal use only Development • Secured development approval for 28 new homes • Strong community interest and demand for affordable product in metropolitan Sydney • Site recycling has enhanced the overall presentation of the park to deliver im
Slide 22: Non-core assets
Non – core assets 4.7 Aspen’s continues to divest its legacy assets For personal use only Spearwood South Industrial Estate • Contracted for sale at $28.0m (3.4% discount to 1H FY17 book value) • Settlement expected to occur 29 September 2017 Midland • Conditional contract $2.5 million • Anticipated
Slide 23: Operating Model
For personal use only Operating Model 23
Slide 24: Operating model
Operating model 5.1 Operating model aims to produce high yielding returns in affordable accommodation augmented by development returns through the upgrade of sites and expansion of parks For personal use only • Aspen continues to identify and pursue opportunities in our three existing sectors – Tour
Slide 25: Operating model: create, own and operate communities
Operating model 5.2 Create, own and operate communities at affordable prices For personal use only BUY ENHANCE OPERATE • 3 core sectors – Tourism, • Business plan • Distribution and revenue Retirement and management strategy • Opportunity driven (e.g.) Corporate intensification • Operational focus,
Slide 26: Outlook
For personal use only Outlook 26
Slide 27: Outlook
Outlook 6.1 For personal use only • Portfolio expansion targeting ~$90 million in acquisitions • Commence development at Tomago and Four Lanterns • Complete exit of non-core assets yielding ~$34 million • Earnings growth expected in line with portfolio expansion BIG4 Tween Waters Barlings Beach 6.1
Slide 28: Appendices
For personal use only Appendices 28
Slide 29: Aspen Portfolio
Aspen Portfolio 7.1 For personal use only 8 Property Number NSW Type of sites 1 Four Lanterns Retirement 102 2 Tomago Retirement 157 3 Koala Shores1 Tourism 143 4 Barlings Beach Tourism 258 7 1 2 5 Tween Waters Tourism 96 6 3 Total 756 4 5 Property Number Property Number WA Type of sites SA Type of
Slide 30: Acquisition: BIG4 Tween Waters Holiday Park
Acquisition: BIG4 Tween Waters Holiday Park 7.2 South Coast, NSW (7.5hrs South of Sydney) – December 16 For personal use only Location Far South Coast, adjacent Merimbula town centre (170kms south of Batemans Bay) Type Beachfront, full tourist park with recently renovated cabins and water play park
Slide 31: Acquisition: Barlings Beach Holiday Park
Acquisition: Barlings Beach Holiday Park 7.3 South Coast, NSW (6hrs South of Sydney) – January 2016 For personal use only Location Absolute beachfront adjacent to Tomakin Village 17km’s south of Batemans Bay Type Beachfront, predominantly tourism park with Canberra, Sydney and local region client RE
Slide 32: Acquisition: BIG4 Koala Shores Holiday Park
Acquisition: BIG4 Koala Shores Holiday Park1 7.4 Central Coast, NSW (2hrs North of Sydney) – November 2016 For personal use only Location 45km from Newcastle, 25km from Tomago Van Village – establishes NSW North Coach cluster. 15 minutes from Newcastle airport Type Full tourist park, water frontage,
Slide 33: Operating earnings
Operating earnings 7.6 For personal use only 1 FY17 FY16 $m $m Profit / (loss) from operations Accommodation - Aspen Group properties 7.0 7.2 - APPF properties - 9.3 - APPF management fees / equity - 0.4 Non-core 3.4 3.2 Total gross profit 10.4 20.1 Operating expenses and depreciation (6.5) (12.6) N
Slide 34: Balance sheet
Balance sheet 7.7 For personal use only Jun 17 Jun 16 $m $m Cash 22.7 48.8 Property Assets 1 71.2 80.0 Assets held for sale / other assets 40.2 11.7 Total Assets 134.1 140.5 Debt - - Other 9.5 10.9 Total Liabilities 9.5 10.9 Net Assets 124.6 129.6 Net Assets attributed to Aspen Group 124.6 129.6 NAV
Slide 35: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Aspen Group (“Aspen”) and should not be considered in any 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