Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — FY2022 Earnings Presentation
39 slides from Oceania Healthcare's earnings presentation, Jun 2, 2022
Slide 1: Oceania
OCEANIA in better. : F
Slide 2: Brent Pattison
Brent Pattison
Slide 3: FY2022 highlights
FY2022 highlights We delivered 16% growth in Underlying EBITDA in FY2022 underpinned by premium revenues and strong sales performance. 1 underpin 16% growth in Underlying EBITDA, increasing to $76.2m In F¥2022, up 16% from $65.6m in the prior corresponding period (“pop”)! Village DMF 30% growth in v
Slide 4: FY2022 highlights (continued)
FY2022 highlights (continued) D OCEANIA We have put steps in place to increase our annual build rate to 300+ units and care suites. We have increased our bank facilities from $350m to $500m to facilitate an increased growth trajectory. . . Oceania has recently entered into an agreement with its lend
Slide 5: Additions to our team
Additions to our team ¥) OCEANIA The appointment of two new Directors and a new Executive team member during the year have added important experience to Oceania. Andrew Buckingham MRICS, AAP! Andrew joined the team as Group General Manager Property & Development in January 2022. Andrew is an accompl
Slide 6: Introduction: Growth and Performance
Introduction: Growth and Performance @D oceania We have refreshed our strategic pillars and are committed to increasing our build rate in conjunction with increasing our land bank to futureproof the development pipeline. Strategic focus It has now been five years since Oceania listed on the NZX and
Slide 7: Developments completed in FY2022
Developments completed in FY2022 He) OCEANIA 171 units and care suites completed in FY2022 across five sites.! COVID-19 level 4 lockdowns in the second half of 2021 caused the delay of 113 care suites at Lady Allum, which will now be delivered in the first half of FY2023. Eden Auckland Completed in
Slide 8: Developments under construction
Developments under construction Oceania has 550 uni Q OCEANIA and care suites under construction as at FY2022, an increase of 156 from March 2021. Oceania commenced development on 326 units and care suites during FY2022. Lady Allum Stage 1, ‘Auckland Elmwood, Auckland _ Commenced in September 2021.
Slide 9: Acquisitions add ILU optionality to our pipeline
Acquisitions add ILU optionality to our pipeline @ oceania Waterford and Franklin were settled in FY2022 using the proceeds of our successful $100m capital raise completed in April 2021. Progress update , Waterford Franklin Progress update Hobsonville Point Post-settlement we have more than doubled
Slide 10: Execution of M&A: Remuera Rise
Execution of M&A: Remuera Rise i) OCEANIA ig apartment complex constructed in 2013, in a highly attractive Auckland location. Remuera Rise is a premium retirement About the site + Eight-storey premium apartment complex situated in Broadway Park, Newmarket in central Auckland, offering commanding vie
Slide 11: Execution of M&A: Bream Bay Village
Execution of M&A: Bream Bay Village Bream Bay Village comprises 83 villas and community fa: adjacent development land. About the site + Bream Bay Village is situated on 4.7 hectares of land in Ruakaka, Northland + Bream Bay Village comprises 75 existing 2 bedroom villas plus the final eight villas i
Slide 12: The Helier: Reimagining aged care and retirement living
The Helier: Reimagining aged care and retirement living a) OCEANIA As part of the reimagination of Resident Experience at The Helier, we are focusing on intelligent design and superior resident services. 1
Slide 13: Kathryn Waugh
Kathryn Waugh.
Slide 14: Creating Value Sustainably
Creating Value Sustainably i) OCEANIA Our strategy has been refreshed, taking into consideration what is important to our key stakeholders and evaluating which risks and opportunities have the greatest impact on our ability to create value in the short and long term. Our purpose To relmagine the ret
Slide 15: ESG Highlights — 2022
ESG Highlights — 2022 Focus on ESG is providing opportunity for us to engage with our residents, our people and our suppliers At the end of 2021, we refreshed our materiality matrix, building on the deep dive work we started in 2020, where we looked into what mattered most to our key stakeholders, a
Slide 16: Capital structure: Oceania is positioned for growth
Capital structure: Oceania is positioned for growth Follo facilities, bringing total facil Oceania has recently entered into an agreement with its lenders to increase total facility limits from $350m to $500m for a periodof five Years out to FY2028 The full $150m increase has been applied to Oceania
Slide 17: FY2022 trading highlights
FY2022 trading highlights @D oceania Recurring premium revenue underpins our result with DMF and PAC revenue for FY2022 of $52.0m, a 28% increase on pcp2021. Premium revenue (DMF and PAC reveni Underlying EBITDA’ NZDm NZDm 52.0 752 76.2 40.7 32.0 pop2020 pop20zt Fy2022 pop2020 pop202 Fy2022 NZDb 408
Slide 18: Developments — key indicators
Developments — key indicators @ oceania Development margin of 28% in FY2022 was above pep. Sales prices reflect the higher proportion of new stock we are selling outside of Auckland at sites like Green Gables, The Bayview and The Bellevue. New sales volumes and margins Average CBRE affordability rat
Slide 19: Resales — key indicators
Resales — key indicators Q OCEANIA Resale volume of 266 in FY2022 represents a 25% increase compared to pcp2021. Apartment resale prices averaged $734k, an increase of 6.7% on pep2021. Resales volumes and margins 300 nes 27.2% 30.0% 200 20.0% 100 10.0% pep2020 pep2021 Fy2022 == Villa ms Apartment mm
Slide 20: Premium care revenue
Premium care revenue @D oceania Despite cost pressure in the sector, including the significant impact of COVID-19, the increase in premium revenue streams has enabled us to maintain margins. ion charge (PAC) and ca Premium care revenue Care segment total revenue, EBITDA and EBITDA margin NZDm 18.9 2
Slide 21: Embedded value
Embedded value Q OCEANIA The embedded value in our portfolio has increased 42% over the year to $368.3m as at FY2022 and will underpin the future realisation of cash flows from deferred management fees and resale gains. Embedded Value NZDm 400.0 368.3 3,000 + Embedded value in Oceania’s portfolio is
Slide 22: Balance sheet
Balance sheet Q OCEANIA Total assets increased by $312m from March 2021 driven by growth in the value of retirement village and care properties through acquisitions and continued development. Oceania’s net adjusted value has increased to $1.38 per share as at March 2022. Balance sheet (CNAV”) NZDm F
Slide 23: Questions
Slide 24: Appendix contents
14 15 H+) OCEANIA Underlying earnings Income Statement Care segment Village segment Cash flow Borrowings Portfolio summary Future development outlook Development pipeline Reconciliation of portfolio movements Summary of unit sales Capital expenditure and reconciliation of resales cashflow Definition
Slide 25: Underlying earnings
01 Underlying earnings a) OCEANIA Underlying EBITDA of $76.2m for the 12 month period ended 31 March 2022, a 16% increase on pcp2021. Reconciliation of underlying adjustments Segmental underlying adjustments NZDm Fy2022 10m2021 NZDm Fy2022 pep2021 Var pep2020 Reported Net profit after tax ou 857 ‘Ag
Slide 26: Income statement
O2 Income statement i) OCEANIA Total Comprehensive Income for the period of $114.4m. Key valuation assumptions remained largely consistent from 10m2021 with IP growth and discount rates unchanged and only minor adjustments to growth rates. Summary of income statement Key IP and PP&E CBRE valuation a
Slide 27: Care segment
03 Care segment @ oceania EBITDA per bed of over $9,500. Key drivers of care performance were group occupancy of 92% and continued increases in premium revenue as our care suite portfolio matures. Aged care underlying EBITDA Occupancy rates NZDm FY2022 pep202t Var pep2020 91.8% 94.0% 92.0% 93.2% 92.
Slide 28: Village segment
O4 Village segment Sales volumes ahead of pcp2021 and delivering improved DMF capture despite COVID-19. Village underlying EBITDA Villa and apartment DMF revenue NZDm NZDm Fy2022 —_pep2021 Var pep2020 Villa and apartment DMF 33.4 25.5 76 a3 33.4 Retirement village service fees 7.6 62 14 6.0 255 Othe
Slide 29: Cash flow
O05 Cash flow 4g) OCEANIA Operating cash flow of $105.5m for FY2022 compared to $96.0m for 10m2021. Operating cash flow was driven by first time sales proceeds of $114.8m. Statement of cash flows NZDm Fy2022 410m2021 Receipts from customers 190.1 142.3 + First time sales receipts at development site
Slide 30: Borrowings
06 Borrowings Following a second successful retail bond issue of $100m in September 2021, Oceania has recently secured a $150m increase to its banking facilities, bringing total facilities to $500m extended to FY2028. Net debt Debt facilities Facility limit as at 31 Drawn amount Headroom as at 31 Ad
Slide 31: Portfolio summary
O7 Portfolio summary As at 31 March 2022 Facility NORTH ISLAND Region Care suites Village units Facility Region Care beds SOUTH ISLAND Care suites Village units Total Totara Park Rodney z z 30 30 Marine Cove Picton : : 26 2 The Sands North Shore z oH 108 ERICTES Nelson E ai 00 ior Greenvalley Lodge
Slide 32: Future development outlook
O8 Future development outlook #) OCEANIA 54% of our existing portfolio is now premium units and care suites as we progress to ~72% premium / ~28% standard at the end of our current pipeline. Current & future portfolio composition Carebeds Care suites ILUs Total North Island 1,388 522 1,275, 3,185 So
Slide 33: Development pipeline
O09 Development pipeline Status as at 31 March 2022 32
Slide 34: Reconciliation of portfolio movements
10 Reconciliation of portfolio movements Changes Conversion Conversion Changes in ‘Changes in Asat in existing of beds to of units to New units pipeline — gross. pipeline — Asat 10m2021 capacity care suites care suites New units acquired delivered units added decommissions Fy2022 Care beds 807 (75)
Slide 35: Summary of unit sales
. 11 Summary of unit sales OCEANIA New Sales Fy2017 FY2018 Fy2019 pep2020 pcp2021 Fy2022 Villa 7 26 23 19 40 26 Apartment. 20 47 53 59 67 92 Care suite 15 27 57 128 15 66 Total 52 100 133 206 222 184 Average development margin 22.9% 33.5% 36.0% 37.2% 26.1% 28.0% Resales FY2017 FY2018 FY2019 pep2020
Slide 36: Capital expenditure and reconciliation of resales cash flow
12 Capital expenditure and Reconciliation of resales cash flow P oceania Significant increase in capital expenditure in FY2022 relative to pcp due to the acquisitions of Waterford and Franklin, as well as an increase in Oceania’s development activity Breakdown of Capital Expenditure Reconciliation o
Slide 37: Definition of Underlying NPAT
13 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 38: Glossary
14 Glossary ARCC Aged Residential Care Contract Care suite Aroom 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 39: Important notice and disclaimer
15 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