Eureka Group Holdings Limited · ASX:EGH
Eureka — H1 FY2022 Earnings Presentation
26 slides from Eureka's earnings presentation, Feb 24, 2022
Slide 1: Half Year Results Presentation
Half Year Results Presentation 31 December 2021
Slide 2: Contents
Contents HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 1H22 Results Overview 3 COVID-19 Update 12 1H22 Financial Metrics 4 FY22 Outlook 13 Underlying EBITDA 5 FY22 Priorities 14 Portfolio Update 6 1H22 Results in Detail 15 Operating Platform 7 Capital Management 19 Operational Highlights 8 About Eu
Slide 3: 1H22 Results Overview
1H22 Results Overview HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 • 31% increase in profit after tax to $4.03M “Investing in • Essential investment in people, technology and brand revitalisation. Upskilling key growth.” business functions - finance, facilities, food service, people, safety and pr
Slide 4: 1H22 Financial Metrics
1H22 Financial Metrics HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 UNDERLYING EBITDA 1 NET DEBT 1 “Key financial metrics remain strong.” $5.13M $63.80M $8.52M [30 June 2021] 2% INVESTING IN PEOPLE OCCUPANCY NET OPERATING CASH FLOW BALANCE SHEET GEARING 1 97% at 31 December 2021 98% [30 June 2021]
Slide 5: Underlying EBITDA
Underlying EBITDA1 HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 • Annual revenue and Underlying EBITDA continue to grow • 1H22 Underlying EBITDA and Underlying EBITDA margin lower than prior year due to essential investment in people 1 • Investment in resource base is a prerequisite to deliver org
Slide 6: Portfolio Update
Portfolio Update HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 ACQUISITIONS DEVELOPMENTS CAPITAL VILLAGES VILLAGE EXPANSION 3% RECYCLING • Brassall Qld: +59 units. $6.5M • Wynnum Qld: +22 units • $0.9M from sale of 13 units in Qld Settled July 2021 Complete. Fully leased from January 2022 managed v
Slide 7: Operating Platform
Operating Platform HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Five Pillar Operating Platform - FY2022 Update Occupancy, Revenue Team Culture Safety, Risk Information Systems Applications & Cost Initiatives + Engagement & Engagement & Technology • Resident First culture • Redefined roles • Regular
Slide 8: Operational Highlights
HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Operational Highlights • Resident First focus - Independent ‘Voice of Resident’ survey conducted across 50% of residents. Overall satisfaction of 84% across key village areas – community rooms, safety & security, access to social & recreational activiti
Slide 9: Environmental, Social and Governance (ESG)
HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Environmental, Social and Governance (ESG) Environmental Social Governance Solar energy Resident First Ethical business practices Waste management & One team Risk management systems recycling Social connections Safety & compliance Water conservation Vil
Slide 10: ESG
ESG HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 COMMITMENT • Eureka has a fundamentally strong social and governance focus • Developing an environmental program to reduce the impact of operations on the environment • Established framework to proactively consider and action ESG initiatives SOCIAL
Slide 11: ESG
ESG HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 ENVIRONMENTAL INITIATIVES • Committed to energy conservation through a village solar program - solar energy program completed in 13 villages with a further 6 villages in 2022 • Solar installations have enhanced Eureka’s affordability proposition for
Slide 12: COVID-19 Update
COVID-19 Update HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 • Effective policies and risk management protocols in response to the threat of COVID-19 • Mandated vaccination policy for village and support staff. 100% of staff have received at least the first two vaccinations and are required to obt
Slide 13: FY2022 Outlook
FY2022 Outlook HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 FY22 UNDERLYING EBITDA1 FORECAST • Guidance range - $10.9M - $11.1M • Subject to timing of settlement dates for existing and any further acquisitions. Prior to asset revaluations, asset disposals and non-recurring items including costs as
Slide 14: FY22 Priorities
FY22 Priorities HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 • Growth – pursue and deliver further earnings accretive acquisition and development opportunities to continue to scale the business • Technology – select preferred technology systems across all business units for FY23 implementation • R
Slide 15: 1H22 Results In Detail
1H22 Results In Detail WG Fif\ \S GROUP HOLDINGS
Slide 16: Profit & Loss
Profit & Loss HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Profit and Loss Summary Half year ended 31-Dec-21 31-Dec-20 ($ '000) • Profit after tax increased by 31% to $4.03M Rental income 10,293 9,311 Catering income 2,402 2,195 • 8.5% increase in Total revenue driven by acquisitions and organic S
Slide 17: Balance Sheet
Balance Sheet HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Balance Sheet Summary As at 31-Dec-21 30-Jun-21 ($ '000) Assets • Strong balance sheet with financial capacity for expansion Ca s h a nd ca s h equi va l ents 1,584 1,890 Tra de, other a nd l oa ns recei va bl e 859 974 • Weighted capitali
Slide 18: Cash Flow
Cash Flow HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Cash Flow Summary Half year ended 31-Dec-21 31-Dec-20 ($ '000) Cash flows from operating activities Receipts from customers 15,046 14,589 Payments to suppliers and employees (10,919) (9,447) • Reliable operating cash flows Interest received 11
Slide 19: Capital Management
Capital Management HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 DIVIDENDS DEBT FACILITY • FY22 interim dividend of 0.63 cps • Expiry: 31 March 2024 • Dividend reinvestment plan (DRP) • Limit: $77.5m. Increases to $80M upon settlement of the deferred operative consideration for the Hervey Bay acqui
Slide 20: About Eureka
About Eureka 20 20
Slide 21: Snapshot of Eureka
HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Snapshot of Eureka • Eureka is a specialist owner, operator and manager of rental retirement villages • We provide essential social infrastructure, services and community for a growing cohort of residents • Our revenue streams are economically stable an
Slide 22: Strategic Objectives
Strategic Objectives HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 • Maintain strong cashflow for growth and payment of dividends • Upscale and grow core business through: ➢ Disciplined acquisitions and greenfield “build-to-rent” developments ➢ Organic growth from maintaining occupancy, rental grow
Slide 23: Eureka Village Locations
Eureka Village Locations HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 2,261 UNITS UNDER MANAGEMENT 41 VILLAGES 32 OWNED 9 UNDER MANAGEMENT 23
Slide 24: Definitions
Definitions HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Balance sheet gearing • Calculated as net debt (being interest-bearing drawn debt net of cash) divided by net debt plus equity EBITDA (Earnings before interest, tax, depreciation and amortisation) • An unaudited non-IFRS measure. The Directo
Slide 25: Disclaimer
Disclaimer HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 No responsibility for contents of presentation To the maximum extent permitted by law, Eureka Group Holdings Limited (ABN 15 097 241 159) its officers, advisers and representatives: • make no representation, warranty or undertaking, and accep
Slide 26: Contact Details
HALF YEAR RESULTS PRESENTATION | FEBRUARY 2022 Contact Details Company Eureka Group Holdings Limited ABN 15 097 241 159 Registered Address Suite 2D, 7 Short St, Southport, QLD 4215 Brisbane Office Level 5, 120 Edward St, Brisbane QLD 4000 Postal PO Box 10819, Southport BC QLD 4215 Phone 07 5568 0205
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