Summerset Group Holdings Limited · NZX:SUM
Summerset — H1 2015 Earnings Presentation
31 slides from Summerset's earnings presentation, Aug 29, 2015
Slide 1: Half Year Results Presentation
HALF YEAR RESULTS PRESENTATION SIX MONTHS ENDED 30 JUNE 2015 SUMMERSET GROUP HOLDINGS LIMITED 29 August 11 February 2015 2012 0
Slide 2: Agenda
AGENDA 2 1H15 Result Highlights 6 Business Overview 19 Financial Results 24 Interim Dividend 28 Appendix 1
Slide 3: 1H15 Result Highlights
1H15 RESULT HIGHLIGHTS 2
Slide 4: Strong sales and margins result in 1H15 underlying profit of $17.1m
1H15 RESULT HIGHLIGHTS STRONG SALES AND MARGINS RESULT IN 1H15 UNDERLYING PROFIT OF $17.1M 1H15 Actual vs. 1H15 Actual 1H14 Actual FY14 Actual 1H14 Actual* New sales of occupation rights 160 105 52% 286 Operational Resales of occupation rights 110 90 22% 172 Total sales 270 195 38% 458 New retiremen
Slide 5: Underlying profit growth of 81% on 1H14
1H15 RESULT HIGHLIGHTS UNDERLYING PROFIT GROWTH OF 81% ON 1H14 ■ 1H15 underlying profit of $17.1m, up 81% on 1H14 ■ 1H15 net profit after tax (NZ IFRS) of $35.7m, up 134% on 1H14 ■ New sales 52% higher than 1H14 – strong sales across NZ ■ Resales 22% higher than 1H14 – record number in a six month p
Slide 6: Strong trends continue across the business
1H15 RESULT HIGHLIGHTS STRONG TRENDS CONTINUE ACROSS THE BUSINESS TOTAL ASSETS UNDERLYING PROFIT $1200m $18m $16m $1100m $14m $1000m $12m $900m $10m $1161m $17.1m $8m $800m $6m $700m $921m $10.0m $9.4m $4m $764m $600m $2m $500m $m 1H13 Actual 1H14 Actual 1H15 Actual 1H13 Actual 1H14 Actual 1H15 Actu
Slide 7: Business Overview
BUSINESS OVERVIEW 6
Slide 8: 1H15 Underlying profit of $17.1m review
1H15 REVIEW 1H15 UNDERLYING PROFIT OF $17.1M ■ Delivered 141 retirement units in 1H15 ■ On track for delivery of 300 retirement units in FY15 ■ Commenced construction on the Ellerslie village - this will open in FY16 ■ Wigram village progressing well, and due to open in the third quarter ■ Record hi
Slide 9: Summerset Snapshot
SUMMERSET SNAPSHOT 25 SITES ACROSS NEW ZEALAND ■ 2,257 retirement units (villas, apartments and care apartments) ■ 523 care beds ■ More than 3,200 residents ■ 21 villages completed or in development ■ Four greenfield sites (including recent acquisitions in Auckland) 8
Slide 10: Summerset Strategy
SUMMERSET STRATEGY SUMMERSET BUILDS, OWNS AND OPERATES RETIREMENT VILLAGES IN NZ ■ Focus on continuum of care model ■ High quality care and facilities within every village ■ Internal development model ■ Nationwide brand offering ■ Customer centric philosophy – “we love the life you bring to us” ■ Ne
Slide 11: Operations and Staff
OPERATIONS AND STAFF FOCUS ON CLINICAL QUALITY AND STAFF TRAINING ■ Continued Careerforce training programme participation, and qualification attainment ■ 93% industry leading care customer satisfaction rating ■ 97% village customer satisfaction rating ■ Benchmarking of key clinical indicators a foc
Slide 12: Demographics
DEMOGRAPHICS POPULATION OVER 75 YEARS FORECAST TO TRIPLE FROM 2014 TO 2068 POPULATION GROWTH 75 YEARS AND OVER 1,200,000 18% 16% 1,000,000 14% 800,000 12% 10% 600,000 8% 400,000 6% 4% 200,000 2% - 0% 2014 2018 2023 2028 2033 2038 2043 2048 2053 2068 NZ population 75+ (left hand axis) % of population
Slide 13: Summerset Growth
SUMMERSET GROWTH 18 YEARS OF CONSISTENT DELIVERY AND GROWTH SUMMERSET BUILD RATE 2,500 2,257 2,116 141 2,000 261 1,855 1,646 209 1,486 160 1,500 Retirement Units 1,352 122 1,272 80 1,109 163 *2011 existing stock includes 12 units acquired 983 126 2,116 1,000 921 62 1,855 as part of the Nelson site a
Slide 14: 1H15 Development Activity
1H15 DEVELOPMENT ACTIVITY DELIVERY OF 141 RETIREMENT UNITS IN 1H15 ACROSS SIX SITES Care Unit Delivery 1H15 Villas Apartments Total Care Beds Apartments Hamilton 12 - 10 22 19 Hobsonville 22 - - 22 - Karaka 14 - - 14 - Nelson 18 - 10 28 19 New Plymouth 25 - - 25 - Trentham 30 - - 30 - Total 121 - 20
Slide 15: 1H15 Development Activity (village photos)
1H15 DEVELOPMENT ACTIVITY DELIVERY OF 141 RETIREMENT UNITS IN 1H15 ACROSS SIX SITES Hamilton Karaka Trentham Hobsonville Nelson New Plymouth 14
Slide 16: Future Development: Land Bank
FUTURE DEVELOPMENT LAND BANK OF 1,856 RETIREMENT UNITS AND 404 CARE BEDS Land Bank - as at 30 June 2015* ■ Land bank of 1,856 retirement units spread across Total brownfield and greenfield sites Care Villas Apartments Retirement Care Beds Apartments Units ■ Additional pipeline of 404 care beds. The
Slide 17: Development Margin
DEVELOPMENT MARGIN REALISED DEVELOPMENT MARGIN OF $11.3M ■ Development margin of $11.3m, over double that achieved in 1H14 ■ 18.4% development margin for 1H15, relative to 13.6% a year ago, exceeding the 17% IPO “medium term” guidance provided ■ Successful increase of margin while continuing to lift
Slide 18: New Sales of Occupation Rights
NEW SALES OF OCCUPATION RIGHTS NEW SALES GROSS PROCEEDS UP 69% ON 1H14, TO $61.8M ■ Level of sales associated with continued 1H15 Actual vs. build programme, strong across all sites New Sales 1H15 Actual 1H14 Actual FY14 Actual 1H14 Actual* ■ The four new villages opening in FY14 Gross proceeds ($m)
Slide 19: Resales of Occupation Rights
RESALES OF OCCUPATION RIGHTS RESALES OF 110 OCCUPATION RIGHTS IN 1H15 ■ Gross proceeds of $33.5m, up 16% on 1H15 Actual vs. 1H14 Resales 1H15 Actual 1H14 Actual FY14 Actual 1H14 Actual* ■ Occupation rights resold: 110, up 22% Gross proceeds ($m) 33.5 28.9 16.0% 54.9 on 1H14 Realised resale gains ($m
Slide 20: Financial Results
BUSINESS FINANCIALOVERVIEW RESULTS 19
Slide 21: Reported Profit (IFRS)
1H15 REPORTED PROFIT (IFRS) NET PROFIT AFTER TAX UP 134% VERSUS 1H14 ■ NPAT up $20.4m relative to 1H15 1H15 Actual vs. NZ$m 1H15 Actual 1H14 Actual FY14 Actual 1H14 Actual* ■ 1H15 total income up 70% versus 1H14 Total revenue 32.6 25.2 29.2% 54.3 ■ 1H15 total expenses up 34% versus 1H14 Reversal of
Slide 22: Underlying Profit
1H15 UNDERLYING PROFIT UNDERLYING PROFIT UP 81% ON 1H14 ■ Underlying profit of $17.1m, up 81% on 1H14 1H15 Actual vs. NZ$m 1H15 Actual 1H14 Actual FY14 Actual 1H14 Actual* ■ Realised development margin of $11.3m driven by both increased volume and the Reported profit after tax 35.7 15.3 134% 54.2 ma
Slide 23: Cash Flows
1H15 CASH FLOWS CONTINUED INVESTMENT IN NEW VILLAGE BUILDS ■ Net operating cash flow of $66.5m 1H15 Actual vs. NZ$m 1H15 Actual 1H14 Actual FY14 Actual for 1H15, up 82% on 1H14 1H14 Actual* ■ Positive cash flow increases in both Care fees and village services 21.7 16.7 30.1% 36.2 care and village re
Slide 24: Balance Sheet
1H15 BALANCE SHEET TOTAL ASSETS OF $1.2B, UP 26% FROM $0.9B IN 1H14 ■ Total assets of $1.2b, up 26% on 1H14 1H15 Actual vs. NZ$m 1H15 Actual 1H14 Actual FY14 Actual 1H14 Actual* ■ Investment property valuation of $1.1b, up 26% on 1H14 Investment property 1,066.9 844.6 26.3% 958.2 Other assets 94.4 7
Slide 25: Interim Dividend
INTERIM DIVIDEND 24
Slide 26: FY15 Interim Dividend
FY15 INTERIM DIVIDEND SUMMERSET BOARD DECLARES FY15 INTERIM DIVIDEND ■ The Summerset Board have declared an interim dividend of 1.85 cents per share, unimputed ■ This represents a total pay-out for the first half of 2015 of approximately $4.1m ■ The dividend reinvestment plan (DRP) will apply to thi
Slide 27: Questions?
BE SUMMERSET SURE QUESTIONS?
Slide 28: 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 29: Appendix
’ APPENDIX tie
Slide 30: Portfolio as at 30 June 2015
PORTFOLIO AS AT 30 JUNE 2015 2,257 RETIREMENT UNITS AND 523 CARE BEDS Existing Portfolio – as at 30 June 2015 Villas Apartments Care Apartments Total Retirement Units Care Beds Aotea 96 33 38 167 - Dunedin 61 20 20 101 41 Hamilton 110 0 20 130 49 Hastings 146 5 0 151 - Havelock North 94 28 0 122 41
Slide 31: Land Bank as at 30 June 2015
LAND BANK AS AT 30 JUNE 2015 LAND BANK OF 1,856 RETIREMENT UNITS AND 404 CARE BEDS Land Bank - as at 30 June 2015* Villas Apartments Care Apartments Total Retirement Units Care Beds Casebrook 179 - 53 232 49 Ellerslie 60 145 57 262 58 Hamilton 73 0 30 103 - Hobsonville 67 70 50 187 52 Karaka 138 - 5
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