Summerset Group Holdings Limited · NZX:SUM
Summerset — FY2012 Earnings Presentation
29 slides from Summerset's earnings presentation, February 2013
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION YEAR ENDED 31 DECEMBER 2012 SUMMERSET GROUP HOLDINGS LIMITED 29 February 2013 25 2012 0
Slide 2: Agenda
AGENDA 2 FY12 Result Highlights 5 Business Overview 17 Financial Results 22 Dividend 26 Appendix 1
Slide 3: FY12 Result Highlights
FY12 RESULT HIGHLIGHTS 2
Slide 4: FY12 Result Highlights: Ahead of IPO forecasts
FY12 RESULT HIGHLIGHTS AHEAD OF IPO FORECASTS AND STRONGLY UP ON FY11 FY12 IPO FY12 Actual vs. FY12 Actual vs. NZ$000 FY12 Actual FY11 Actual Forecast FY12 IPO Forecast FY11 Actual New sales of occupation rights 167 134 24.6% 108 54.6% Operational Resales of occupation rights 164 124 32.3% 123 33.3%
Slide 5: Ahead of IPO forecasts on all key metrics
FY12 RESULT HIGHLIGHTS AHEAD OF IPO FORECASTS ON ALL KEY METRICS ■ Strong growth in year on year performance versus FY11 results: ■ New sales up 55% ■ Operating cash flow up 52% ■ Operational performance in all key areas exceeded IPO forecasts ■ FY12 underlying profit of $15.2m, up 56% on IPO foreca
Slide 6: Business Overview
BUSINESS OVERVIEW hi mmerset
Slide 7: FY12 Review
FY12 REVIEW A YEAR OF SIGNIFICANT GROWTH ■ Significantly outperformed IPO forecasts ■ Strong growth in financial performance versus FY11 ■ Increased long term build rate guidance – no additional funds from shareholders required ■ “Best Retirement Village Operator in Australasia 2012” – third year in
Slide 8: Summerset Snapshot
SUMMERSET SNAPSHOT THIRD LARGEST OPERATOR, SECOND LARGEST DEVELOPER ■ 1,646 retirement units (villas, apartments and care apartments) ■ 327 care beds ■ Over 2,000 residents ■ 160 units delivered in FY12 ■ Build rate of at least 200 retirement units in FY13 ■ Build rate guidance of 300 retirement uni
Slide 9: Summerset Strategy
SUMMERSET STRATEGY SUMMERSET BUILDS, OWNS AND OPERATES RETIREMENT VILLAGES IN NZ ■ Focus on continuum of care model ■ Internal development model ■ Nationwide brand offering ■ Customer centric philosophy – “we love the life you bring to us” ■ Respect for everyday New Zealanders 8
Slide 10: Demographics
DEMOGRAPHICS POPULATION OVER 75 YEARS FORECAST TO DOUBLE BY 2031 POPULATION GROWTH 75 YEARS AND OVER 600,000 12% 500,000 10% 400,000 8% 300,000 6% 200,000 4% 100,000 2% 0 0% 2011 2016 2021 2026 2031 NZ population 75+ % of population 75+ Source: Statistics New Zealand (left hand axis) (right hand axi
Slide 11: Summerset Growth
SUMMERSET GROWTH 14 YEARS OF CONSISTENT DELIVERY AND GROWTH 2,000 1646 1,600 1486 160 1352 122 1272 80 Retirement Units 1,200 1109 163 983 126 921 62 795 126 800 732 63 652 1486 80 1364* 528 1272 124 470 1109 407 58 983 63 921 400 732 795 219 188 652 528 129 470 407 90 219 129 129 0 1997 1998 1999 2
Slide 12: FY12 Development Activity
FY12 DEVELOPMENT ACTIVITY DELIVERY OF 160 UNITS IN FY12 ACROSS FOUR SITES ■ 160 units delivered across four villages – above IPO forecast of 155 units Unit delivery FY12 Actual ■ Hastings main building completed Villas Apartment Care Apartment Total Dunedin 31 0 0 31 ■ Warkworth main building comple
Slide 13: FY12 Development Activity: Village sites
FY12 DEVELOPMENT ACTIVITY DELIVERY OF 160 UNITS IN FY12 ACROSS FOUR SITES Dunedin Nelson 12 Hastings Warkworth
Slide 14: Future Development
FUTURE DEVELOPMENT LAND BANK OF 1,400 RETIREMENT UNITS AND 400+ CARE BEDS Land bank - as at 31 December 2012 ■ Land bank of 1,400 retirement units spread across brownfield and greenfield sites Total Care Villas Apartments Retirement Care Beds Apartments Units ■ Additional pipeline of 400+ care beds
Slide 15: Development Margin
DEVELOPMENT MARGIN REALISED DEVELOPMENT MARGIN $6.9M VERSUS IPO FORECAST $5.0M ■ Increased development margin REALISED DEVELOPMENT MARGIN ■ Development margins on sites with internal construction management 8 14% in line with medium term target in the IPO forecast 12.0% 7 12% ■ Project management an
Slide 16: New Sales of Occupation Rights
NEW SALES OF OCCUPATION RIGHTS NEW SALES OF 167 OCCUPATION RIGHTS VERSUS IPO FORECAST OF 134 FY12 Actual vs. FY12 IPO FY12 Actual vs. ■ New sales of occupation rights up versus IPO FY12 Actual FY12 IPO FY11 Actual Forecast FY11 Actual forecast: Forecast Gross proceeds 57,739 47,313 22.0% 37,259 55.0
Slide 17: Resales of Occupation Rights
RESALES OF OCCUPATION RIGHTS RESALES OF 164 OCCUPATION RIGHTS VERSUS IPO FORECAST OF 124 FY12 Actual vs. ■ Resales of occupation rights up versus IPO FY12 IPO FY12 Actual vs. FY12 Actual FY12 IPO FY11 Actual Forecast FY11 Actual forecast: Forecast Gross proceeds ■ Total realised resale gains: $14.3m
Slide 18: Financial Results
BUSINESS FINANCIALOVERVIEW RESULTS 17
Slide 19: FY12 Reported Profit (IFRS)
FY12 REPORTED PROFIT (IFRS) NET PROFIT AFTER TAX UP 12% VERSUS IPO FORECAST FY12 FY12 FY12 Actual ■ FY12 revenue up 13% versus FY11 NZ$000 FY12 IPO Actual vs. FY11 vs. FY11 Actual FY12 IPO Actual Forecast Actual Forecast ■ Fair value movement of investment property higher than IPO forecast Total rev
Slide 20: FY12 Underlying Profit
FY12 UNDERLYING PROFIT UNDERLYING PROFIT $15.2M, UP 56% VERSUS IPO FORECAST ■ Strong underlying profit performance FY12 FY12 FY12 Actual FY12 Actual vs. FY11 NZ$000 IPO vs. FY11 Actual FY12 IPO Actual ■ Key drivers are: Forecast Forecast Actual ■ Higher realised gains on resales Reported profit afte
Slide 21: FY12 Cash Flows
FY12 CASH FLOWS NET OPERATING CASH FLOW $66.3M UP 27% VERSUS IPO FORECAST FY12 FY12 FY12 Actual FY12 Actual vs. FY11 ■ Strong operating cash performance NZ$000 Actual IPO FY12 IPO Actual vs. FY11 Forecast Actual Forecast ■ Operating cash performance driven by: Care fees and village services 27,391 2
Slide 22: FY12 Balance Sheet
FY12 BALANCE SHEET TOTAL ASSETS OF $702M UP 14% FROM $617M IN FY11 FY12 FY12 FY12 Actual FY12 Actual vs. FY11 ■ Net asset growth of 6.6% from FY11 NZ$000 Actual IPO FY12 IPO Actual vs. FY11 Forecast Actual Forecast ■ Investment property valuation of $645m Investment property 644,506 632,622 1.9% 557
Slide 23: Dividend
DIVIDEND 22
Slide 24: 2012 Final Dividend
2012 FINAL DIVIDEND SUMMERSET BOARD DECLARES 2012 FINAL DIVIDEND ■ The Summerset Board have declared a final dividend of 2.5 cents per share, unimputed ■ This represents a total payout of approximately $5.4m compared with the $4.3m indicated in the IPO forecast. The increased dividend reflects the s
Slide 25: Questions?
BE SUMMERSET SURE QUESTIONS?
Slide 26: 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 27: Appendix
APPENDIX 26
Slide 28: Existing Portfolio at 31 Dec 2012
EXISTING PORTFOLIO AT 31 DEC 2012 1,646 EXISTING RETIREMENT UNITS AND 327 CARE BEDS Existing Portfolio– as at 31 December 2012 Villas Apartments Care Apartments Total Retirement Units Care Beds Aotea 96 51 20 167 - Dunedin 31 - - 31 - Hamilton 40 - - 40 - Hastings 104 5 - 109 - Havelock North 94 18
Slide 29: Land Bank at 31 December 2012
LAND BANK AT 31 DECEMBER 2012 LAND BANK OF 1,400 RETIREMENT UNITS AND 400+ CARE BEDS Land bank - as at 31 December 2012 Villas Apartments Care Apartments Total Retirement Units Care Beds Dunedin 30 20 20 70 40 Ellerslie 50 150 50 250 80 Hamilton 142 50 20 212 40 Hastings 42 0 0 42 0 Hobsonville 156
Summerset Group Holdings — FY2012 Earnings Presentation on 6ix