Eureka Group Holdings Limited · ASX:EGH
Eureka — MAM Micro Equities Investor Presentation (June 2017)
17 slides from Eureka's conference presentation, Jun 27, 2017
Slide 1: MAM Micro Equities Investor Presentation
Eureka Group Holdings Limited MAM Micro Equities Investor Presentation For personal use only June 2017
Slide 2: Overview of Eureka Group
Overview of Eureka Group • Eureka aims to provide the highest level of low cost rental accommodation and associated For personal use only care to independent retirees who are either completely or primarily reliant on the Australian Government Pension and Rent Assistance In Australia 77% of single
Slide 3: Company Snapshot
Company Snapshot Capital Structure¹ Share Price Performance For personal use only Share Price A$0.36 Shares Outstanding (m) 229.7 Market Capitalisation A$82.7M Cash (31-Dec-16) A$9.3M Debt (31-Dec-16) A$51.4M Directors & Senior Management Major Shareholders Robin Levison Non-Executive Chairman Natio
Slide 4: Market Primer: The Australian Retirement Industry
Market Primer: The Australian Retirement Industry • Eureka’s model caters to the 65+ year olds whose primary source of income is the full aged For personal use only pension and requires no upfront capital 77% of single people (over age 65) rely on pensions as their primary source of income High De
Slide 5: Market Primer: The Australian Retirement Industry (cont'd)
Market Primer: The Australian Retirement Industry (cont’d) • Through 2014 to 2015, retirement villages accounted for 18% of the A$17bn revenue spent For personal use only on aged care accommodation Low Penetration of Retirement Living in Australia Growth in Demand Anticipated Across Cities • Accordi
Slide 6: Business Units Overview
Business Units Overview The Eureka business model has three key business units: For personal use only • Real Estate Acquisition Team – The key to our Growth Strategy Searches regional Australia for low cost retirement villages or assets suitablefor re- purposing to low cost rental retirement accommo
Slide 7: Changes to Senior Management - CEO
Changes to Senior Management - CEO Eureka appointed Mr Jeff Weigh as the group’s Chief Executive Officer (CEO) in early February For personal use only 2017. The Board is confident Mr Weigh has the specific skills, vision and enthusiasm to continue Eureka’s next level growth pathway. Mr Weigh brings
Slide 8: Changes to Senior Management – CFO
Changes to Senior Management – CFO Eureka appointed Mr Paul Cochrane as the group’s Chief Financial Officer (CFO) in late May 2017. For personal use only Mr Cochrane starts in the role on Wednesday 28th June after completing his notice period with his previous employer. Mr Cochrane brings to Eureka
Slide 9: Key Operational Highlights
Key Operational Highlights Geographical Distribution of Villages For personal use only 35 villages under management 26 villages with freehold land and buildings owned NT 1,388 units owned QLD 19 Villages WA 2,069 units owned and/or managed SA 9 Villages 8-12 NSW villages to be acquired in next 12 mo
Slide 10: Eureka's Steady Growth Trajectory
Eureka’s Steady Growth Trajectory For personal use only • Eureka has grown over significantly the Units Owned/Managed (in units) last three years, with owned properties increasing 91% year-over-year in FY2016 • 200 low-cost rental accommodation assets identified and preliminary due diligence complet
Slide 11: Eureka's Ability to Improve Village Performance Post-Acquisition
Eureka’s Ability to Improve Village Performance Post-Acquisition • Historically earnings for most villages have increased since acquisition by Eureka For personal use only • Operating efficiencies and economies of scale benefits to continue to drive improved earnings Focus on increased rental rate
Slide 12: Key Financial Highlights – December 2016
Key Financial Highlights – 31 December 2016 • Revenue, EBITDA and NPAT have continued to increase as a result of village acquisitions For personal use only completed during the period • Cost control focus and scale benefits have flowed through to margins and bottom line results • Strong balance shee
Slide 13: Growth Strategy – Existing Properties
Growth Strategy – Existing Properties For personal use only Acquisition Growth 1 Acquired 26 villages in last 30 months and is targeting a further 8-12 low-cost accommodation asset acquisitions in the 2017-2018 Financial Year Organic Growth 2 Development on existing owned village sites will allow Eu
Slide 14: Growth Strategy - New
Growth Strategy - New For personal use only Acquisition Growth • Eureka has this morning announced it has gone unconditional on Freshwater Villas that will add 42 rooms to its existing portfolio • The acquisition of the 42 room Freshwater Villas at Gympie will be acquired for $4million and show a re
Slide 15: Select Case Study – Royal Terranora Resort
Select Case Study – Royal Terranora Resort Terranora Village Redevelopment For personal use only Acquired in December 2015 for $7M, the planned re-development will include: • Sale of 80 existing rental units, delivering $14M in net cash • 80 units re-engineered to 60 large apartments • 27 contracts
Slide 16: Improving Performance – Broken Hill
Improving Performance – Broken Hill Shorty O’Neil Village For personal use only Acquired the 42-unit village in August 2016 for $1.05 million • Includes a community centre, separate office building and large commercial kitchen • On acquisition Village acquired on “Vacant Possession” terms (i.e. comp
Slide 17: Disclaimer & Contact Information
Disclaimer & Contact Information 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: For personal use only • make no representation, warranty or undertaking, and accept
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