Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — Shareholder Meeting (September 2017)
28 slides from Oceania Healthcare's shareholder meeting presentation, September 2017
Slide 1: Oceania Healthcare 2017 Annual General Meeting
OCEANIA HEALTHCARE LIMITED 2017 ANNUAL GENERAL MEETING SEPTEMBER 2017
Slide 2: Agenda
Agenda 01 Welcome 02 Introduction to Directors and Management 03 Chair’s Address 04 CEO’s Address 05 Business of Meeting 06 Other Business 1
Slide 3: Introduction to Oceania's Directors
Introduction to Oceania’s Directors Oceania has a highly experienced Board with a diverse range of skills Liz Coutts Alan Isaac Kerry Prendergast Hugh FitzSimons Patrick McCawe Chair and Independent Director Independent Director Non-Executive Director Non Executive Director Independent Director CNZM
Slide 4: Chair's Address – Liz Coutts
1 Chair’s Address – Liz Coutts “Oceania is a care business – it is at the core of what we deliver to our residents” STRICTLY CONFIDENTIAL 3
Slide 5: CEO's Address – Earl Gasparich
2 CEO’s Address – Earl Gasparich “This is a company with a heart and a strong sense of purpose” STRICTLY CONFIDENTIAL 4
Slide 6: We are a "needs based" business
We are a “needs based” business Oceania is well positioned to deliver services to meet the increasing demand for aged care and retirement village living Estimated population growth1 800,000 700,000 227,800 600,000 Population Aged 85+ 500,000 489,800 400,000 Population 300,000 Aged 75 to 84 200,000 1
Slide 7: Our growth will be delivered from executing our existing pipeline
Our growth will be delivered from executing our existing pipeline Oceania is well positioned to take advantage of increasing demand for aged care and retirement village living Portfolio and Oceania’s site locations landbank overview Care Care Auckland Units Total Beds Suites Tauranga Total Existing1
Slide 8: FY2017 Financial Results
33 FY2017 Financial Results STRICTLY CONFIDENTIAL 7
Slide 9: FY2017 Financial highlights
FY2017 Financial highlights We exceeded the FY2017 IPO Forecasts with Reported NPAT $19.6m ahead of the IPO Forecast Reported Net Profit After Tax (NPAT) Operating revenue and expenses were slightly ahead of the IPO Forecast 60.0 The revaluation of our retirement village assets was $57.2m, $19.9m ab
Slide 10: FY2017 Financial highlights
FY2017 Financial highlights We exceeded the FY2017 IPO Forecasts with Pro Forma Underlying NPAT ahead of the IPO Forecast Pro Forma Underlying Net Profit After Tax (NPAT) Pro Forma Underlying NPAT for FY2017 of $34.0m was ahead of the IPO Forecast of 40.0 $33.5m. 35.0 $33.5m $34.0m Underlying NPAT i
Slide 11: Care segment
Care segment The Care segment was $0.2m ahead of the IPO Forecast with EBITDA per bed (excluding decommissioned sites) of $12,648 compared to $12,614 in the IPO Forecast NZ$m FY2014 FY2015 FY2016 FY2017 (A) FY2017 (F) Operating revenue 149.1 151.1 155.8 152.8 152.4 Expenses (120.6) (121.5) (122.0) (
Slide 12: Village segment
Village segment The Village segment was $0.3m ahead of the IPO Forecast with strong resale and development margins. NZ$m FY2014 FY2015 FY2016 FY2017 (A) FY2017 (F) Operating revenue 14.8 17.0 19.7 20.6 20.1 Realised gains on resales 4.8 7.0 14.1 12.7 12.8 Realised development margin 1.9 2.5 4.5 5.2
Slide 13: Village segment
Village segment The Village segment was $0.3m ahead of the IPO Forecast with strong resale and development margins. Resales volume and margin Development sales volume and margin NZD $000s NZD $000s 250 30% 100 30% 28.0% 27.4% 25.5% 25% 93 25% 200 80 24.3% 82 22.9% 21.2% 193 20% 20% 19.2% 150 60 16.6
Slide 14: Embedded value
Embedded value The embedded value in Oceania’s portfolio has increased significantly over the last three years to $183.1m and will underpin ongoing DMF cash flows and resale gains Embedded value per unit1 NZD $000s 160 141.3 140 133.3 120 115.5 100 86.4 80.5 86.8 80 68.1 66.8 60 38.0 31.0 40 20 42.6
Slide 15: Strong cashflows
Strong cashflows A core strength of Oceania is our recurring cashflows from our care segment and mature village portfolio supplemented by cashflow from development of our landbank Operating cash flows NZD $Ms We generated $38.9m of operating cashflow in FY2017, $7.1m ahead of the IPO Forecast. 45.0
Slide 16: Our balance sheet is robust
Our balance sheet is robust The capital raised from the IPO has significantly improved our financial position Development debt to Underlying development assets NZD $Ms Our total assets increased from $782.9m as at FYE2016 to $918.2m as at FYE2017 140.0 131.2 Our conservative gearing of 15.3% and hea
Slide 17: Acquisition of 22-24 View Rd, Mt Eden
Acquisition of 22-24 View Rd, Mt Eden We have entered into an agreement to acquire 22-24 View Rd, adjacent to our Eden Facility in Auckland Development debt to Underlying development assets NZD $Ms We have secured a 2,668m2 site (in red) adjacent to Eden Village (in orange) Eden Village currently ha
Slide 18: Our Key Developments
43 Our Key Developments STRICTLY CONFIDENTIAL 17
Slide 19: Meadowbank Village
Meadowbank Village Two stages of 56 units already complete and sold down Stage Three (62 apartments and 30 care suites) due to complete in January/February 2018. 22 under application. 187 apartments and 102 care beds on completion Artist’s Impression 18
Slide 20: Maureen Plowman Village
Maureen Plowman Village Prime waterfront location in Browns Bay, Auckland Comprises 64 apartments and 44 care suites Completion expected in May 2019, pre-sales to commence in February 2018 Strong levels of interest from potential purchasers Artist’s Impression 19
Slide 21: Elmwood Village
Elmwood Village Extension of large existing village (125 units, 27 care suites and 111 care beds) in The Gardens, Manurewa, Auckland 25 villas under construction Completion expected in October, November 2017 7 pre-sales at prices above our IPO Forecasts 20
Slide 22: Melrose Village
Melrose Village Prime 5.7 hectare site in Tauranga overlooking the Tauranga Harbour Stage One comprises 81 care suites and commenced in July 2017 Remaining stages (216 apartments and villas) have a resource consent with Stage Two building consent process now underway Approximately 250 retirement vil
Slide 23: Stoke Village
Stoke Village We have commenced a further stage of 10 Nikau villas at our Stoke Village in Nelson. These are based on an affordable villa concept that retains a high quality finish 22
Slide 24: Operational highlights
Operational highlights FY2017 was another excellent year for Oceania Continued our excellent Ministry of Health audit results (8 facilities at the maximum of 4 years, all others at 3 years) Commenced the implementation of a new clinical information system Winner of the Senior Lifestyle Cuisine Award
Slide 25: Resolutions
RESOLUTIONS , i @ OCEANIA HEALTHCARE
Slide 26: Resolutions
Resolutions 01 02 03 That Elizabeth Coutts, That Hugh FitzSimons, That the Directors be who retires by rotation, who retires by rotation, authorised to fix the and being eligible, offers and being eligible, offers remuneration of herself for re-election, be himself for re-election, be Pricewaterhous
Slide 27: General Business Questions from the floor
General Business Questions from the floor Please state your name, whether you are a shareholder, or if a proxy holder, the name of the shareholder represented 26
Slide 28: Thank you
*% THANK YOU a | if ‘ by ys s a Lune. \ A (| oe 3 4 it OCEANIA HEALTHCARE
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