Eureka Group Holdings Limited · ASX:EGH
Eureka — Investor Presentation (August 2024)
34 slides from Eureka's investor presentation, Aug 28, 2024
Slide 1: FY24 Results Presentation
FY24 Results Presentation August 2024
Slide 2: Contents
Contents Portfolio Capital FY24 Highlights About Eureka Review Management Strategic Growth Outlook Appendix Initiatives
Slide 3: FY24 Highlights
FY24 Highlights
Slide 4: Key achievements
Key achievements Continued strong underlying financial performance Strong results ✓ Portfolio value uplift ✓ Acquisitions and developments ✓ Capital management ✓ ESG highlights ✓ Strengthened Board and management team ✓ 1. Refer to page 29 for adjustments to derive underlying EBITDA and page 32 for
Slide 5: FY24 Highlights
FY24 Highlights Revenue and earnings growth driven by strong resident demand, rental growth and property valuations $9.1m $14.1m $41.1m $15.2m Underlying profit Revenue Underlying EBITDA1 Valuation uplift before tax1 13% FY23 20% FY23 $25.3m FY23 13% FY23 > 90% of the portfolio has been Like-for-lik
Slide 6: Portfolio Summary
Portfolio Summary Eureka operates a pure play, specialist strategy of providing affordable seniors rental accommodation NATIONAL FOOTPRINT PORTFOLIO SNAPSHOT 52 Villages 2,835 $328m Units under management Assets under management1 QLD 11% FY23 31% FY23 $161m 98% $274m Occupancy Investment property1,2
Slide 7: Village portfolio analysis
Village portfolio analysis Unit numbers Village Contribution1 Asset values at at 30 June 2024 (excluding revaluations) ($m) 30 June 2024 ($m) FY24 FY23 19.5 321 16.7 47 254 34 2,835 5 328 1,640 620 242 2.8 2.4 Owned units Managed units 1.3 1.2 Owned units Management rights Joint venture units Manage
Slide 8: Underlying EBITDA
Underlying EBITDA1 Continued Underlying EBITDA growth, with margins improving $16m 40% 36.9% 38.3% 35.3% 34.6% $14m 35.1% 35% 33.7% $12m 30.8% 30% 26.2% $10m 25% Underlying EBITDA 1 $8m 20% $6m 15% $4m 10% $2m 5% $m 0% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1H 2H Underlying EBITDA margin 1. Refer D
Slide 9: Strong ESG focus
Strong ESG focus Creating sustainable, socially responsible communities and value for stakeholders Achievements and focus areas include: Solar power • Commitment to energy conservation through a continuation of village solar programs targeting solar power installations in at least 50% of villages by
Slide 10: About Eureka
About Eureka 10
Slide 11: Scalable affordable build-to-rent seniors living portfolio
Scalable affordable build-to-rent seniors living portfolio Eureka is the only ASX-listed pure play specialist in seniors rental accommodation What Eureka offers ✓ ✓ ✓ ✓ ✓ ✓ 1. Refer page 17. Includes share of assets held in joint venture and WA fund and management rights assets 11
Slide 12: Eureka’s build-to-rent portfolio is well positioned
Eureka’s build-to-rent portfolio is well positioned A leading provider of affordable accommodation for independent seniors living Seniors rental Residential home Government social housing Land lease communities Retirement village Aged care ‘Eureka’ Community-based independent Care services available
Slide 13: Cash flows backed by the Australian Government pension
Cash flows backed by the Australian Government pension Government backed age pension and rent assistance payments support Eureka’s revenue streams Commentary Payments backed by Government Age pension payments Rent assistance payments Rental payments Accommodation and catering services 1. Services Au
Slide 14: A growing ageing population with limited superannuation
A growing ageing population with limited superannuation Limited independent community living options for seniors on the age pension Australians aged 65+ years old1,2 Seniors superannuation balances are low # Millions 5.8 Superannuation balances ($k)4 People with no superannuation (%)3 5.6 5.2 $690k
Slide 15: Future demand supported by favourable industry trends
Future demand supported by favourable industry trends A growing reliance on the Government age pension increases demand for low-cost, quality rental accommodation Average property prices in capital cities1 Median weekly rent2 Rebased to 100 $ per week $750 220 210 $700 200 $650 190 $600 180 $550 170
Slide 16: Portfolio Review
Portfolio Review 16
Slide 17: Diversified Portfolio
Diversified Portfolio • Eureka’s core portfolio comprises 1,640 owned units and Portfolio statistics FY24 FY23 Change 254 units held in a 50% Joint Venture Owned units [#] 1,640 1,576 64 • Eureka has a 32% interest in, and manages, 321 units in the JV units [#] 254 254 - WA fund with a total investm
Slide 18: Eureka Villages WA Fund
Eureka Villages WA Fund Completed the acquisition of 6 well established villages for $44m1 Portfolio Overview of fund • The six villages were acquired by a new wholesale property fund, Eureka Villages WA Fund (the Fund) in December 2023 72 units 51 units • The Fund is managed by Eureka Asset Managem
Slide 19: Brassall, Qld Development
Brassall, Qld Development Successfully completed village expansion Site development information • Village was acquired in 2021, comprising 43 rental residences, 12 land lease Valuation (at 30 June 2024) $22.4m residences and surplus development land Total new residences 51 • Development of 51 new dw
Slide 20: Capital Management
Capital Management EE IND)
Slide 21: Capital management
Capital management Optionality for future funding requirements Key metrics FY24 FY23 Cash [$m] 2.3 1.8 • Core $96m bank facility in place until 2026, with no principal Debt [$m] 91.3 69.7 repayments required until expiry. Additional $5m facility in place until October 2025 Total assets [$m] 275.2 23
Slide 22: Dividends
Dividends Consistent returns to shareholders since commencement of paying dividends Dividends Key dates Dividend track record (cps) FY24 Final dividend Ex-dividend date 20 September 2024 0.7c per share Record date 0.70 0.70 0.67 0.67 • Dividend reinvestment 0.63 0.63 plan (DRP) operative 23 Septembe
Slide 23: Strategic Growth Initiatives
Strategic Growth Initiatives 23
Slide 24: Strategic growth initiatives
Strategic growth initiatives Building long term value via a disciplined growth plan, backed by a resident first philosophy • Relative trading Sector consolidation / acquisition Development opportunities Alternative capital sources Organic growth pipeline • Fragmented sector provides • Development po
Slide 25: Outlook
Outlook 25
Slide 26: Outlook
Outlook FY25 Expectations 1. Refer Definitions on page 32 26
Slide 27: Board refresh and CEO appointment
Board refresh and CEO appointment Eureka’s board and management are well positioned to deliver on future growth objectives • Relative trading Chief Executive Officer Appointment Board Refresh • Simon is a highly experienced and respected leader with • John is a highly credentialed and experienced ex
Slide 28: Appendix
- t ‘i il —=— | = pg i a ih Appendix
Slide 29: Profit and loss
Profit and loss ($ '000) 30-Jun-24 30-Jun-23 Change Rental income 29,311 24,795 • Underlying EPS of 3.02 cps Revenue from contracts with customers 11,830 6,902 Total revenue 41,141 36,420 13% • 13% increase in total revenue driven by like-for-like village growth (6%) and acquisitions Reconciliation
Slide 30: Balance sheet
Balance sheet ($ '000) 30-Jun-24 30-Jun-23 Assets • Net tangible assets per share grew by 7% to 48.3 Cash and cash equivalents 2,257 1,815 cents Trade and other receivables 741 499 • Investment property values increased by $18m due Investments accounted for using the equity method 20,219 10,934 to v
Slide 31: Cash flow statement
Cash flow statement ($ '000) 30-Jun-24 30-Jun-23 Cash flows from operating activities • Reliable operating cash flows Receipts from customers 40,813 36,964 Payments to suppliers and employees (30,084) (25,777) • Net cash from operating activities was $8.1m Distributions received 2,140 508 ($8.7m FY2
Slide 32: Definitions
Definitions Balance sheet gearing Underlying EBITDA Calculated as net debt (being interest-bearing drawn debt net of cash) divided An unaudited non-IFRS measure that represents the operating performance by net debt plus equity of the Group and excludes valuation adjustments, asset disposals and cert
Slide 33: Disclaimer
Disclaimer No responsibility for contents of presentation No offer to sell or invitation to buy To the maximum extent permitted by law, Eureka Group Holdings Limited This Presentation does not, and should not be considered to, constitute or form (ABN 15 097 241 159), its officers, advisers and repre
Slide 34: Contact details
Contact details Eureka Group Holdings Limited ABN 15 097 241 159 REGISTERED OFFICE Level 5, 120 Edward Street Brisbane QLD 4000 POSTAL ADDRESS GPO Box 2245 Brisbane QLD 4000 07 2145 6322 info@eurekagroupholdings.com.au eurekagroupholdings.com.au ENQUIRIES Murray Boyte, Executive Chair and Interim Ch
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