Slide 1: Aspen Group 2013 Annual Results Presentation
For personal use only ASPEN GROUP 2013 ANNUAL RESULTS PRESENTATION 1
Slide 2: Agenda
Agenda 1. Business analysis and strategy to restore value For personal use only 2. Financial results 3. Business lines Accommodation Commercial property Non-core activities 4. FY14 priorities on the strategy to restore value Appendices 2
Slide 3: FY13 - a year of change
FY13 - a year of change Clear path of business simplification and focus For personal use only Progress achieved on strategic initiatives: - Permanent CEO appointed - Gearing reduced to 40%, debt pay-downs achieved, debt extended to August 2015 - Non-core asset disposals of $203 million - FY13 earn
Slide 4: Business analysis
Business analysis FY13 Performance - Key Points For personal use only Historically very complex business Simplification process to continue and accelerate Share price discount is the immediate strategic issue to be addressed 4
Slide 5: Aspen's business lines
Aspen’s 3 business lines FY13 Performance - Key Points For personal use only Core business “Non-Core Assets “ Accommodation Commercial Property Assets held for sale Aspen Karratha Village 4 office and industrial Aspen Living residential syndicates Aspen Parks Property Fund properties Man
Slide 6: Accommodation business
Accommodation business Strong position in this FY13 Performance industry - Key Points For personal use only Accommodation Business analysis Strong industry characteristics Aspen Karratha Village Good market leadership position Aspen Parks Property Fund Management Approx 9% equity interes
Slide 7: Commercial property
Commercial property Value realisation by -looking FY13 Performance to dispose of the entire portfolio Key Points For personal use only Commercial Property Business analysis Little strategic rationale for Aspen to retain 4 office and industrial properties Supportive market conditions – especial
Slide 8: Indicative disposal process
Indicative disposal process Disposal process to commence shortly For personal use only Return of capital to shareowners and / or investment in the business Seek shareowner approval for an on-market buyback at the upcoming AGM; other forms of capital return are also under consideration Pro-forma
Slide 9: Business value proposition
Business value proposition Components of assessed NTA For personal use only 50 Cents / share 0.0 4.2 40 7.8 16.5 30 5.3 4.7 20 26.0 22.1 10 0 Commercial Accomodation Non-core gross Cash Net other assets Debt Non-core debt NTA assessed property assets 9
Slide 10: 2. 2013 Financial results
For personal use only 2. 2013 Financial results 10
Slide 11: Core Operating Profit – 2.0 cps
Core Operating Profit – 2.0 cps Exceeded guidance of 1.8 cps For personal use only 2013 2012 $m CPS $m Revenue from operations Net Commercial property 25.4 2.1 16.0 Net Accommodation 13.5 1.1 10.7 - Aspen Karratha Village - Aspen Parks Property Fund 7.8 0.7 8.1 Other revenue 0.1 - 0.2 Total Revenue
Slide 12: Group Financial Result
Group Financial Result Statutory loss over the full year For personal use only 2013 2012 $m $m CPS Core operating profit 23.4 2.0 12.4 Non core operating profit (7.0) (0.6) 20.9 Total operating profit 16.4 1.4 33.3 Revaluation of commercial properties 15.0 1.2 28.2 Revaluation of accommodation prope
Slide 13: Balance sheet
Balance sheet Reduction in gearing over the year 30 June 13 31 Dec 12 30 June 12 For personal use only $m $m $m Cash 38.1 53.2 3.1 Subsidiary assets held for sale 136.3 174.2 119.9 Investment properties 360.5 366.3 379.1 Equity investments 14.7 18.2 23.8 Inventories / assets held for sale 26.1 40.9
Slide 14: NTA per security as at June 2013
NTA per security as at June 2013 Majority of decline over the year in first half For personal use only 50 Cents / share 40 14.7 30 1.1 0.6 1.7 0.8 1.0 1.0 20 40.8 26.1 24.1 22.1 10 0 14
Slide 15: Progress on debt management
Progress on debt management Gearing reduced to 40% For personal use only Extended core debt facility to August 2015 Met milestone debt repayments to date Asset sale programme achievements in excess of bank requirements June 2013 Dec 2012 June 2012 Total drawn debt 1 196.7 208.5 199.9 Total d
Slide 16: Business overhead reduction
Business overhead reduction Continue process of reducing overhead For personal use only Overheads, pre-restructuring Overheads FY13 FY12 charges, down over the year $m $m Admin pre-restructuring 16.1 16.7 One-off restructuring charge of $3.7 million in FY13 Restructuring charge (1H) 1.3 - Restru
Slide 17: 3. Business lines
For personal use only 3. Business lines 17
Slide 18: Aspen Karratha Village
Aspen Karratha Village 180 room freehold transient (“FIFO”) worker accommodation facility For personal use only Fully leased to Woodside, expiring in January 2014 (option not exercised) Independent valuation - $50 million - Cap rate 26% - FY13 net income of $13.5 million Key management task
Slide 19: Aspen Parks Property Fund
Aspen Parks Property Fund Key statistics For personal use only June June Geographic allocation 2013 2012 (% of latest valuation) VIC Number of parks 1 21 24 16% SA WA - North Total assets ($m) 311.4 309.9 6% 29% Gearing (excl. cash) 36.3% 30.7% NSW Perth 21% Metro NTA per security 1.00 1.18 WA - Mid
Slide 20: Priorities for Aspen Parks
Priorities for Aspen Parks For personal use only Parks with significant mining services Portfolio allocation (% of latest valuation) customers, total 28% of assets Capital recycling Management process improvement: Mining Parks 28% • Marketing initiatives and revenue optimisation Holiday Parks
Slide 21: Commercial property portfolio
Commercial property portfolio For personal use only Book Value Property Sector Indep. Valuation Jun-13 Jun-12 1 Cap Rate WALE Occup. Date ($m) ($m) (%) (yrs) (%) Septimus Roe, WA Office June 2012 105.5 105.5 8.75 2.2 91 Spearwood Industrial Estate, WA Industrial Dec 2012 82.0 73.0 10.00 3.8 100 Nobl
Slide 22: Progress on non-core asset sales
Progress on non-core asset sales For personal use only $203 million of non-core asset sales in FY13 Non-core assets directly held on balance sheet exposure of $26 million as at 30 June • Post 30 June, the Ballina retirement village sale contract has become unconditional, at book value of $20 mil
Slide 23: 4. FY14 outlook
For personal use only 4. FY14 outlook 23
Slide 24: Outlook
Outlook Priorities in strategy to restore value For personal use only Disposal of the commercial property portfolio Continue non-core asset divestments Continue overhead cost reduction Seek approval for buy back and consolidation at the AGM Managing the impact of the changed mining capex c
Slide 25: Questions
For personal use only ASPEN GROUP 2013 ANNUAL RESULTS PRESENTATION Questions 25
Slide 26: Appendices
For personal use only Appendices 26
Slide 27: Appendices
Appendices 1. Group structure – 30 June 2013 For personal use only 2. Business value proposition 3. Major valuations / impairments in FY13 4. NTA changes over FY13 5. Debt Summary 6. Aspen Parks Property Fund Portfolio 7. Five year gross fee income from Aspen Parks Property Fund 8. Commercial Proper
Slide 28: Group Structure - June 2013
Appendix 1 Group Structure - 30 June 2013 For personal use only ASPEN GROUP LIMITED (ASX: APZ) Stapled APT AGL ASPEN PARKS PROPERTY FUND 9% 75%* ADF 54%* AWSS 43% ADLL 45% FBSV ADF: Aspen Development Fund No. 1 ADLL: Aspen Dunsborough Lakes Limited 10% EASL AGL: Aspen Group Limited APT: Aspen Proper
Slide 29: Business value proposition
Appendix 2 Business value proposition For personal use only Per Per Per Commercial Property $m security Cash $m security Debt $m security Cash on hand - 30 June Commercial property bank Septimus Roe 105.5 8.9 2013 38.1 3.2 facility 117.5 9.9 Assets held for sale bank Spearwood 82.0 6.9 Cash - ADPF s
Slide 30: Major valuations / impairments in FY13
Appendix 3 Major valuations / impairments in FY13 For personal use only 1HY13 2HY13 FY13 total $m $m $m Sale of Aspen Diversified Property Fund properties (1.4) (3.4)* (4.8) Devaluation of Aspen Karratha Village - (7.6)* (7.6) Revaluation of commercial property 13.6 1.4* 15.0 Provision for project c
Slide 31: NTA change over 2HY13
Appendix 4 NTA change over 2HY13 For personal use only Per Per Core Earnings $m security Non-underlying $m security Commercial property income 7.6 0.6 Net finance expense (1.2) (0.1) Devaluation in accomodation Accommodation income 16.8 1.4 investments (10.2) (0.9) Devaluation in commercial Net fina
Slide 32: Debt Summary
Appendix 5 Debt Summary For personal use only W. ave. Cost Group Facilities Drawn debt Maturity Hedging Debt Core Facility $117.5m Aug-15 Ballina1 $5.4m Dec-14 7.5% 74% ATO Facility $58.8m Dec-17 (FY12: 8.1%) (FY12:67%) Convertible Note $15.0m Sep-15 $196.7m Consolidated entities Diversified Propert
Slide 33: Aspen Parks Property Fund Portfolio
Appendix 6 Aspen Parks Property Fund Portfolio For personal use only Total Independent Capitalisation Latest Underlying Fund Property State Land Area Valuation Date Rate Valuation ($m) (Ha) Balmoral Holiday Park2 WA 6.3 Jun-13 13.00% 9.9 Coogee Beach Holiday Park1 WA 4.1 Dec-11 21.60% 5.2 Cooke Poin
Slide 34: Five year gross fee income from Aspen Parks Property Fund
Appendix 7 Five year gross fee income from Aspen Parks Property Fund ($) For personal use only 34
Slide 35: Commercial Property Portfolio
Appendix 8 Commercial Property Portfolio For personal use only ATO Building, SA Spearwood Industrial Estate, WA Geographic allocation (by value) Sector allocation (by value) SA 32% Industrial 34% WA Office VIC 60% 66% 8%
Slide 36: Commercial Property Portfolio (continued)
Appendix 8 Commercial Property Portfolio (continued) For personal use only Septimus Roe Square is a medium rise office building comprising two The property is a multi-tenanted complex of office/warehouse buildings levels of basement parking, ground, and 16 upper office levels. The incorporating trad
Slide 37: Commercial Property Portfolio (continued)
Appendix 8 Commercial Property Portfolio (continued) For personal use only The asset is a large industrial facility consisting of warehousing and The ATO Building is a major new office tower of 36,700 sqm within the abundant hardstand areas. The buildings comprise two large industrial Adelaide City
Slide 38: Non-core assets
Appendix 9 Non-core assets For personal use only On balance sheet $m Managed funds $m $m ADF Ballina retirement village1, 2 20.3 Assets (net of selling costs) Morrison Rd, Midland 2.9 Adelaide 27.3 Other 2.9 Byford2 8.9 3 other properties 13.9 26.1 Total Assets 50.1 1 Associated resident loan liabil
Slide 39: Non-core assets – managed funds
Appendix 10 Non-core assets – managed funds For personal use only Assets Liabilities* Aspen Carrying Value Equity Loan $m $m $m $m Aspen Development Fund 50.1 36.8 0.0 13.3 Whitsunday Shores 7.0 7.0 0.0 0.0 Dunsborough Lakes 27.2 18.3 0.0 8.3 Fern Bay 16.2 14.6 0.0 0.6 Enclave 13.9 9.9 0.9 Nil Total
Slide 40: 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