Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — Morgans Emerging Companies Conference 2013
20 slides from Lifestyle Communities's conference presentation, Dec 4, 2013
Slide 1: Morgans Emerging Companies Conference Presentation
For personal use only Morgans Emerging Companies Conference Presentation 4 December 2013 Lifestyle Communities - Downsize to a Bigger Life
Slide 2: Overview: Business Snapshot
OVERVIEW Business Snapshot 8 years of growing annuity income stream For personal use only • Founded in 2003 Annuity Income $6,000,000 –– • Develop and manage land lease communities which $5,000,000 –– generate long-term sustainable revenue streams $4,000,000 –– $3,000,000 –– • Focused on affordable
Slide 3: Our Communities
OUR COMMUNITIES For personal use only Lifestyle Communities Limited Downsize to a Bigger Life 3
Slide 4: Business Model
BUSINESS MODEL For personal use only • Develop and manage greenfield sites that target the over 50s retiree or pre retiree • The communities are a land lease model where the customer buys the home and enters into a 90-year lease • Two resultant annuity income streams: 1. Site Rental Fee 2. Deferred
Slide 5: Business Model: Low risk sustainable model
BUSINESS MODEL Lifestyle Communities has a low risk sustainable business model For personal use only Community roll out Community management Total homes (annuities) at year end Circulating Settled homes are transferred to the Capital Community Pool Management Business FY06 FY07 FY08 FY09 FY10 FY11 F
Slide 6: Business Model - Capital Recycled
BUSINESS MODEL - CAPITAL RECYCLED Capital fully recycled on completion of each community For personal use only Planning & Commencement of Completion and Land Acquisition Project Construction Documentation first stage ongoing management • Key corridors in • Obtaining necessary • Construction of • Sta
Slide 7: Eight Years of Growing Annuity Income Streams
BUSINESS MODEL Eight Years of Growing Annuity Income Streams For personal use only Annuity Income There are two components to the annuity stream: $6,000,000 –– $5,000,000 –– 1. Site Rental Fee • pproximately $160.00 per week per A $4,000,000 –– home $3,000,000 –– • Indexed at greater of CPI or 3.5%
Slide 8: Business Model - Risk Management
BUSINESS MODEL - RISK MANAGEMENT The company diligently manages risk at each stage of the development cycle For personal use only Community Financial Site Selection Community Roll Out Sales Management • Strong balance • Long-term • Level of pre-sales • Control customer • Rigorous staff sheet experie
Slide 9: Key Market Drivers
KEY MARKET DRIVERS Demographic changes are driving an increase in the size of the potential market The big housing market themes include: For personal use only Affordability • The median net worth of a single person over the age of 65 is approx. $380,000 • 77% of single people [over 65] rely on pens
Slide 10: Market Drivers - Baby Boomer
MARKET DRIVERS - BABY BOOMER For personal use only War Generation Baby Boomer Generation (1925-1945) (1946-1964) • Happy to give up control • Want to maintain control • Happy to not own their own • Home ownership is home important • Looking for more care • Don’t associate care • Co-dependent • Indep
Slide 11: Market Drivers - Baby Boomer
MARKET DRIVERS - BABY BOOMER Baby boomers want to be empowered and in control For personal use only • Impacts: - Product - Service delivery - Communication - Management • They want to be engaged • More single women who are looking for living solutions • Finance: banks and investors working out where
Slide 12: The Lifestyle Market Opportunity
THE LIFESTYLE MARKET OPPORTUNITY The three key emerging trends come together For personal use only Affordability Baby boomer • Opportunity to create a • Wants to maintain more affordable model control • Had to be sustainable • Wants to own their for pensioners home • Had to be able to • Wants to fre
Slide 13: Community Locations
COMMUNITY LOCATIONS For personal use only SHEPPARTON % Community Homes Sold Melton 228 SOLD OUT Tarneit 136 99% WOLLERT Warragul 182 92% MELTON Cranbourne 217 83% TARNEIT Shepparton 221 32% CHELSEA HEIGHTS CRANBOURNE Chelsea Heights 185 74% WARRAGUL HASTINGS Hastings 141 38% Wollert 155 - 1,465 66%
Slide 14: Communities by State
COMMUNITIES BY STATE For personal use only Number of MHEs / Residential Parks per state (1) Number of parks 80 –– 70 –– 60 –– 50 –– 40 –– 30 –– 20 –– 10 –– NSW QLD VIC WA SA TAS ACT NT Relative under-servicing in Victoria creates significant opportunity Note: (1) Jones Lang LaSalle research 2009 Lif
Slide 15: How We Market
HOW WE MARKET For personal use only Positioning Market Research Based Execution • Differentiated in homogenous clutter • Strategy based on in-depth qualitative • Multi-channel of ‘retirement’ sector segment analysis • Above the line - television (regional), • Unique language, tone, imagery and • Cha
Slide 16: How We Market
HOW WE MARKET A BIGGER The benefits life 9747 6909 111-139 Coburns Rd, Brookfield doWnSize to a BiGGeR LiFe D OW N S I Z E TO A B I G G E R L I F E of moving to a Lifestyle Communit y For personal use only $196,000 $199,900 $235,000 $235,900 Free up cash the things you’ve wanted to do for years! You
Slide 17: Marketing Results
MARKETING RESULTS Continued growth in sales and settlements For personal use only Sales Commitments Settlements • 190 new home sales in FY2013(1). • 149 settlements in FY2013(1). • 104 new home sales for year to 31 October 2013(2). • 60 settlements for year to 31 October 2013(2). • Chelsea Heights s
Slide 18: Outlook
OUTLOOK Lifestyle Communities continues to capitalise on the expansion of its community portfolio For personal use only • Continued strong customer support for the Lifestyle Communities brand and product offering • Settlements and net profit attributable to shareholders are both expected to increase
Slide 19: Investment Metrics
INVESTMENT METRICS For personal use only Market capitalisation value as at 2 December 2013 $112.9 million • Substantial shareholders other than Number of shares on issue 99,970,131 founders - Colonial First State Investment Net assets as at 30 June 2013 $81.4 million Limited - Perennial Investment P
Slide 20: Questions?
QUESTIONS? For personal use only Lifestyle Communities Limited Lifestyle Downsize Communities to a Bigger - Downsize Life to a Bigger Life 20
Lifestyle Communities — Morgans Emerging Companies Conference 2013 on 6ix