Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — FY2025 Earnings Presentation
51 slides from Oceania Healthcare's earnings presentation, May 22, 2025
Slide 1: Results presentation for the year ended FY25
Results presentation for the year ended FY25 22 MAY 2025
Slide 2: Key messages
Key messages • Strategic sales focus and incentive programme provides sales momentum • Successful bank refinance shows support of banking syndicate • Unsold stock remains the largest lever to reducing debt • Development to focus on villas in the medium-term to retain flexibility • Enhancement plan s
Slide 3: Financial summary
Financial summary Oceania delivered a solid financial result in FY25 with an increase in underlying EBITDA and sales volumes, despite market conditions. Delivering to strategy Underlying EBITDA1 ORA Receipts Operating Cashflow $86.0m $294.5m $110.3m Increase of Increase of Increase of 4.1% 30.1% 6.7
Slide 4: Operational highlights
Operational highlights Solid progress in sales execution was demonstrated, and an operating model optimisation programme was initiated to improve investor returns. • Total new sales volumes at The Helier increased 100% from FY24, with 24 apartments and care suites sold in FY25 • Total development ca
Slide 5: Business overview
Business overview
Slide 6: Sales update
Sales update Total sales volumes increased 9.2% from FY24, driven by the execution of selling down unsold stock. Focus on sales execution Sales volumes FY23 FY24 FY25 256 258 293 Strong ILU and care suite sales performance 218 227 87 74 68 across both new and existing stock 152 97 89 54 182 190 206
Slide 7: Strategic sales focus
Strategic sales focus Additional tools outside of pricing adjustments to increase sales volumes. Sales focus Impact 9.2% 17.2% Alignment: accountability, alignment and increase in total sales increase in new sales appropriate sales incentives for the sales volumes YoY volumes YoY Increases in new IL
Slide 8: The Helier marketing
The Helier marketing Prioritising marketing spend to drive quality leads. The Helier Repositioning: A refined marketing approach introduced to shift perceptions of The Helier as exclusively high end and expensive. Messaging now emphasises ‘affordable luxury’ in a connected community, supported by we
Slide 9: Developments completed in FY25
Developments completed in FY25 Completion* of all high density developments under construction, the FY26 focus is getting construction ready villa products. A total of 224 units were delivered in FY25, made up of 106 care suites and 118 apartments. Awatere, Hamilton Elmwood, Auckland Waterford, Auck
Slide 10: Stock update
Stock update Sell down of new stock remains a key focus for Oceania. Key stock movements since FY24 Our development stock will be used to repay development debt • Total unsold stock (including resale stock) of $392m, vs $396m at Mar-241 c. $120m of development stock added during FY25 • $104m of deve
Slide 11: Financial
Financial
Slide 12: Profit and loss
Profit and loss Total operating profit increased by 7.8% driven by the 48% uplift in change in fair value of IP.1 NZDm FY25 FY24 Var • Fair value and impairment of IP and PPE: Increased 25.1% Operating revenue 260.6 265.5 (1.8%) from FY24 to FY25 at mature and existing villages Operating expenses (2
Slide 13: Trading results
Trading results Underlying EBITDA1 increased 4.1% despite continuing to divest, driven by a 22.6% increase in capital gains. Village capital gains are strong while care costs reduce Key themes Underlying EBITDA increased 4.1% despite a reduction in Underlying EBITDA1 Care premiumisation operating re
Slide 14: Care dashboard
Care dashboard Group care occupancy continued to rise, up 1.2% since FY24. Care EBITDA per bed also increased by 2.7% YoY. Care occupancy • Care EBITDA per bed including capital gains has increased 90.4% 92.0% 91.1% 92.6% 92.3% 94.5% 7.5% reflecting a modernised care portfolio • Care suite developme
Slide 15: Care business
Care business Care business remains stable with EBITDA per bed increasing since FY24. NZDm FY25 FY24 Var • Increase in EBITDA per bed including capital gains up 7.5% Daily care fees 174.1 181.4 (4.0%) to $19.4k PAC revenue 7.5 6.4 17.2% Care suite DMF 17.9 16.2 10.5% • Impact of divestments: See App
Slide 16: Our retirement villages
Our retirement villages Total sales have increased on FY24, as we continue to execute on our sales targets. Sales volumes FY23 FY24 FY25 • Village weekly fees are now index linked for new 256 258 293 ORAs, resulting in a $15m valuation gain at HY25 218 227 87 74 68 152 89 97 54 • Strong development
Slide 17: Retirement village business
Retirement village business Increase in sales volumes leads to a 13.7% increase in Retirement Village Underlying EBITDA. NZDm FY25 FY24 Var • Resale margins grew 7.1% on pcp, driven by ILU resale margins of $8.0m at Meadowbank Villa and Apartment DMF 39.5 38.6 2.3% Retirement village service fees 10
Slide 18: Cash flow
Cash flow Cash flow from operating activities increased by 6.7%, $110.3m in FY25 compared to $103.4m for FY24. NZDm FY25 FY24 Var • Development capital expenditure reduced $54.7m as Receipts from residents for village and care fees 201.0 207.9 (3.3%) FY25 saw completion of remaining high density dev
Slide 19: Future cash recycling
Future cash recycling Oceania’s debt is primarily development related, supported by current and future new sales stock, providing a clear path to debt repayment. In aggregate we have $146m of asset coverage to our current development related debt. Development debt from completed (but not yet fully r
Slide 20: Balance sheet
Balance sheet The balance sheet has demonstrated both growth and stability, NTA per share increased 5.9% YoY. NZ$m FY25 FY24 Var • Covenants: All financial banking covenants met Assets Cash and trade receivables 126.1 135.4 (6.9%) • Gearing1: Gearing has decreased 5.1% to 36.3% at Property assets 2,
Slide 21: Bank refinance - strong lender support
Bank refinance - strong lender support Successfully refinanced existing $500m debt facilities with no amendment to covenants. Effective 1 May 2025. Pro-forma debt tenor profile has improved (NZDm) • Good demand from both existing and new lenders, with optimal pricing, reflecting a strong market Pre
Slide 22: Balance sheet management
Balance sheet management Oceania holds sufficient headroom in its $725m of debt facilities, for future developments and land acquisitions, and complies with all banking covenants. Debt facilities Facility limit Drawn amount Headroom Covenants exceeded: ICR coverage of 3.5x General / corporate $185m
Slide 23: Sustainability and Climate
Sustainability and Climate Sustainability underpins Oceania’s strategic pillars, and we are committed to integrating thinking across the business. Environment E Social S Green star ILU developments: All new ILU developments are Finalist in Sustainability Leadership Deloitte Top 200 continuing to be
Slide 24: Portfolio
Portfolio
Slide 25: Portfolio direction
Portfolio direction The portfolio's evolution from IPO reflects a strategic shift focused on growth and modernisation. Since IPO in 2017, 88% of sites in the Oceania portfolio have been redeveloped or acquired, resulting in a new modern portfolio % of sites developed or acquired since IPO (by valuat
Slide 26: Divestment programme
Divestment programme Over the course of FY25, 7 sites have been sold for aggregate proceeds of ~$35m1. The divestment programme will continue to consider the portfolio’s strategic direction and appropriate use of capital. Progress since March 23: FY25 divestments ($35.5m) ~$55m from divestment progr
Slide 27: Developments under construction - Meadowbank
Developments under construction - Meadowbank The opening of the Dementia Building marks the sixth and final stage of a 15 year modernisation journey for Meadowbank Village. Build cost c. $26m Meadowbank 40 Dementia beds Auckland Completed in May-25 • The dementia development concludes the sixth and
Slide 28: Developments under construction - Franklin
Developments under construction - Franklin Stage one of the Franklin development is set to be completed in FY26, Oceania’s first greenfield broadacre site. Stage one build cost including community centre c. $50m Franklin 31 villas1 Auckland Stage one to be Community completed in FY26 Centre • Villag
Slide 29: Oceania landbank
Oceania landbank Oceania’s landbank currently includes 23.5ha of development land adjoining existing villages. Providing optionality to further develop as market conditions improve. Some key land banks are listed below. Villa Developments High Density Developments Elmwood, Auckland Bream Bay, Ruakak
Slide 30: Strategy
Strategy
Slide 31: Strengthening the foundations: before launching the strategy
Strengthening the foundations: before launching the strategy We’re focused on executing our near term Enhancement Plan, strengthening our core ahead of full strategy rollout. FY26 Enhancement Plan Execute on operational optimisation plan - $15 - $20m cost savings Consolidate and enhance our foundati
Slide 32: Strengthening the foundations: progress update
Strengthening the foundations: progress update At HY25, we set clear near term objectives for the business which have been achieved. Priorities FY25 Performance Focus for FY26 • Total sales volumes up 9% on FY24 • Continue improving sales cadence at sell down sites Sales • New sales up 17%, resales
Slide 33: Strengthening the foundations: cost out programme
Strengthening the foundations: cost out programme An Enhancement Plan is in place to improve both operational and financial efficiency during FY26 and supporting strategic priorities. Overview Optimisation of the operating model Oceania has launched a company wide programme to improve both financial
Slide 34: Strengthening the foundations: before launching the strategy
Strengthening the foundations: before launching the strategy We’re focused on executing our near term enhancement plan, strengthening our core ahead of full strategy rollout. FY26 Enhancement Plan Strategy - Scale for Growth Execute on operational optimisation plan - $15 - $20m cost savings Our five
Slide 35: Appendices
Appendices 01 Underlying earnings 02 Income Statement 03 Proforma group underlying earnings 04 Cash flow 05 Resales cash flow and capital expenditure 06 Embedded value and affordability 07 Balance sheet 08 Future cash recycling 09 Portfolio summary 10 Future development outlook 11 Development pipeli
Slide 36: Underlying earnings
01 Underlying earnings Underlying EBITDA of $86.0m for the 12 month period ended 31 March 2025, 4.1% increase on FY24. Reconciliation of underlying adjustments Segmental underlying adjustments NZDm FY25 FY24 Var FY23 NZDm FY25 FY24 Var FY23 Reported net profit after tax 30.4 31.5 (1.1) 15.4 Aged Car
Slide 37: Income statement
02 Income statement Key valuation assumptions remained largely consistent from FY24 except for moderate increases applied to incoming prices across all typologies. Summary of income statement Key IP and PP&E CBRE valuation assumption changes NZDm Drivers FY25 FY24 FY25 FY24 Var FY23 Operating revenu
Slide 38: Proforma group underlying earnings
03 Proforma group underlying earnings Proforma group underlying earnings for FY25 of $84.5m. Adjustments include normalising for the impact of divesting, closing and exiting several sites from our ongoing operations. In the last 24 months to 31 March 2025 several sites have been exited, closed and d
Slide 39: Cash flow
04 Cash flow Operating cash flow of $110.3m for the 12 months to FY25 compared to $103.4m in relation to FY24. Statement of cash flows Net cashflows from operating activities1 NZDm FY25 FY24 Var FY23 NZDm Receipts from customers 201.0 207.9 (6.9) 196.7 Payments to suppliers and employees (266.0) (24
Slide 40: Reconciliation of resales cash flow and capital expenditure
05 Reconciliation of resales cash flow and capital expenditure Growth in resales cash flows as Oceania’s portfolio matures and resells at higher price points. Reconciliation of resales cash flow Breakdown of Capital Expenditure NZD $m’s FY25 FY24 NZ$m FY25 FY24 Receipts from New ORAs 294.5 226.3 Acq
Slide 41: CBRE embedded value and affordability ratio
06 CBRE embedded value and affordability ratio The embedded value in our portfolio has increased 14.4% since FY24 to $591.0m as at FY25 and will underpin the future realisation of cash flows from deferred management fees and resale gains. Embedded Value NZDm 591.0 600 3,500 • Embedded value in Ocean
Slide 42: Balance sheet
07 Balance sheet Total assets increased by $158m from 31 March 2024. Oceania’s net adjusted value is $1.43 per share as at 31 March 2025. Balance sheet Net adjusted value (“NAV”) NZ$m FY25 FY24 NZ$m FY25 FY24 Assets PP&E (inc WIP) 828.5 770.9 Cash and trade receivables 126.1 135.4 IP & ROU Assets (i
Slide 43: Future cash recycling
08 Future cash recycling Oceania’s debt is primarily development related, supported by current and future new sales stock, providing a clear path to debt repayment. Development debt 1 to underlying development assets 2 (NZDm) • Our development assets remain at 114% of development debt1,2 at Mar- 25,
Slide 44: Portfolio summary
09 Portfolio summary As at 31 March 2025. Site Region Care beds Care suites Village units Total Site Region Care beds Care suites Village units Total NORTH ISLAND SOUTH ISLAND Bream Bay Ruakaka - - 83 83 Marina Cove Picton - - 26 26 The Sands North Shore - 44 64 108 Green Gables Nelson - 61 40 101 L
Slide 45: Future development outlook
10 Future development outlook 68% of our existing portfolio is now premium units and care suites as we progress to ~75% premium / ~25% standard at the end of our current pipeline. Current & future portfolio composition1 Existing portfolio 1,068 Care beds Care suites ILUs Total 2,003 Care RV units 1,
Slide 46: Development pipeline
11 Development pipeline Status as at 31 March 2025. Sites Stage Status ILUs Care suites Gross units Net units Meadowbank Stage 6 Under Construction 40 40 40 Stage 1 Under Construction 31 31 31 Franklin Stage 2-6 Consented 145 81 226 179 Stage 2 Consented 69 69 69 Lady Allum Stage 3 Consented 68 68 6
Slide 47: Reconciliation of portfolio movements
12 Reconciliation of portfolio movements Changes Conversion Conversion Changes in Changes in As at in existing of beds to of units to New units pipeline – gross pipeline – As at FY24 capacity care suites care suites New units acquired delivered units added decommissions FY25 Existing Care beds 1,396
Slide 48: Summary of unit sales
13 Summary of unit sales New Sales FY21 FY22 FY23 FY24 FY25 Villa 40 26 0 8 0 Apartment 67 92 54 81 97 Care suite 115 66 74 68 87 Total 222 184 128 157 184 Average development margin 26.1% 28.0% 37.6% 31.1% 35.5% Resales FY21 FY22 FY23 FY24 FY25 Villa 54 55 53 82 67 Apartment 34 37 45 47 63 Care sui
Slide 49: Definition of Underlying NPAT
14 Definition of Underlying NPAT Underlying Profit (or Underlying NPAT) Development Margin Underlying Profit is a non-GAAP measure used by the Group to monitor financial performance and is a The Directors’ estimate of realised development margin is calculated as the cash received, and consideration
Slide 50: Glossary
15 Glossary ARCC ORA Aged Residential Care Contract An occupation right agreement that confers on a resident the right to occupy a unit or care suite subject to certain terms and conditions set out in the agreement. Care suite A room or studio certified for the provision of care by the Ministry of H
Slide 51: Important notice and disclaimer
16 Important notice and disclaimer This presentation has been prepared solely by Oceania Healthcare Limited ("Oceania"). You including the merits and risks involved. Investors should consult their own legal, tax and/or must read this disclaimer before making any use of this presentation and the acco