Oceania Healthcare Ltd. · NZX:OCA
Oceania Healthcare — 1HY2024 Earnings Presentation
33 slides from Oceania Healthcare's earnings presentation, November 2023
Slide 1: Results Presentation for the Six Month Period Ended 30 September 2023
@ OCEANIA RESULTS PRESENTATION FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2023
Slide 2: Brent Pattison
Brent Pattison
Slide 3: Market conditions and key highlights
Market conditions and key highlights @ oceania Strong sales performance and improved property prices favour the future performance of our business. Macro environment Strong village sales performance Care recovery underway 10.0% Inflation (year on year) * Total sale volum * Improving aged care CHUGSL
Slide 4: Funds deployed for growth
Funds deployed for growth $20m of capital deployed for future growth and existing portfolio strategic po: Completed 6.7ha greenfield acquisition at Bream Bay * The site is adjacent to Bream Bay in Ruakaka, Northland. * Strategic greenfield acquisition takes the total development land to 7.5ha, which
Slide 5: Developments completed in 1HY2024
Developments completed in 1HY2024 63 apartments across two sites completed in 1HY2024, with The Bellevue achieving 35% presales. Q OCEANIA The Bellevue Papanui, Christchurch Completed in September 2023 46 35] ) Apartments a Completed in 1H¥2024 139 Total units completed The Helier Auckland Completed
Slide 6: Developments under construction
Developments under construction Oceania currently has 382 units and care suites under construction at 8 sites in Auckland, Bay of Plenty, Waikato and Blenheim. s nation ¥) OCEANIA Oceania currently has construction underway across 8 Elmwood, Auckland Commenced in September 2021. 106 Care Suites (5 W
Slide 7: Strategy and portfolio transformation
Strategy and portfolio transformation Since IPO we have added over 1,400 units and care suites through developments and acquisitions to reweight to a premium portfolio. Portfolio valuation Independent valuation of remaining sites Average sales prices achieved NZDOOO 847 63 377 351 Apartment Villa mF
Slide 8: Kathryn Waugh
Kathryn Waugh
Slide 9: Trading results
Trading results OCEANIA Net assets have surpassed $1b and sales recovery from FY2023 evident. Meaningful increases to care revenue and DMF Strong sales reflective of the scaled premium portfolio Underlying EBITDA Care premiumisation Net assets Occupane: $37.6 m Total assets pancy tO) et ee $2.7b $1.
Slide 10: Trajectory of trading results
Trajectory of trading results Q OCEANIA Sales performance and care EBITDA has rebounded positively since 2HY2023, while premium care revenue continues to grow. Village Care Sales volumes 1HY2023 2H¥2023 1HY2024 146 154 33 110 AO 7 j oe, & &, j 8, 8, Me “eg | Resales | &@ Newsales Development and res
Slide 11: Cash recycling from developments
Cash recycling from developments Oceania has a history of achieving strong cash recovery from first time sales in key urban locations. The 50 villas at Gracelands in Hastings were developed Meadowbank is one of Oceania's first developments across three sub-stages, an advantage of villa style post-IP
Slide 12: Cash recycling from developments
Cash recycling from developments Despite increasing construction and funding costs, Oceania continues to recover in excess of its all-in development costs from at development sites. The Bayview is Oceania’s premium integrated retirement and aged care living option in Tauranga, with three stages of d
Slide 13: Investment in portfolio transformation
Investment in portfolio transformation @ oceania Strategic investment has been made during a lower interest rate environment, which unlocks future build ready programmes despite market headwinds. More than doubling of NTA since IPO The Bayview, Tauranga NZDm 2,690 po® ek Pals 1,011 4ST IPO 1HY2024 C
Slide 14: Future cash recycling
Future cash recycling @D oceania Oceania’s debt is primarily development related, supported by current and future new sales stock, provi ling a clear path to debt repayment. Development debt to underlying development assets (NZDm)! irrentand fu velopment stock will be used to repay development gets
Slide 15: Sustainability in action
Sustainability in action Sustainability underpins Oceania’s strategic pillars, and we are committed to integrating thinking across the business. Integrated initiatives for our residents and workplaces Measurable performance of our sustainability framework underway Site and corporate office activitie
Slide 16: Appendix contents
ol 02 03 04 os 06 07 08 09 10 nN 12 13 14 15 16 17 H+) OCEANIA Underlying earnings Income Statement Care segment Village segment Proforma group underlying earnings Cash flow and balance sheet management Balance sheet Embedded value Portfolio summary Development pipeline Future development outlook Re
Slide 17: Underlying earnings
° ° 01 Underlying earnings 4g) OCEANIA Underlying EBITDA of $37.6m for the 6 month period ended 30 September 2023. Reconciliation of underlying adjustments Segmental underlying adjustments NZDm tHy2024 —1HY2023 Var Fy2023 NZDm tHY202 —1HY2028. «Var Fy2023, Reported Net profit after tax 35.2 12 24.0
Slide 18: Income statement
O2 Income statement i) OCEANIA Total Comprehensive Income for the period of $61.6m. Key valuation assumptions remained largely consistent from FY2023 with minor adjustments to average incoming prices. Summary of income statement Key IP and PP&E CBRE valuation assumption changes NZDm tHy202% © 12023
Slide 19: Care segment
03 Care segment @ oceania EBITDA per bed of ~$9,000. Key drivers of care performance were group occupancy of 90.3% and continued increases in premium revenue as our care suite portfolio matures. Aged care underlying EBITDA Occupancy rates NZDm 4Hy2024 — 1HY2023 Var Fy2023 91.0% 92.0% 29.9% 92.0% 90.
Slide 20: Village segment
O4 Village segment @ oceania Sales volumes increased 13% relative to 1HY2023 and 40% relative to 2HY2023, however underlying EBITDA marginally decreased due to higher operating expenses. Village underlying EBITDA Villa and apartment DMF revenue NZDm NZDm 1HY2024 12028 Var Fy2023 Villa and opartment
Slide 21: Proforma group underlying earnings
05 Proforma group underlying earnings several sites from our ongoing operations. Proforma group underlying earnings for 1HY2024 of $37.5m. Adjustments include normalising for the impact of divesting, closing and exiting During the period to 30 September 2028 several sites have been exited, closed an
Slide 22: Cash flow and balance sheet management
06 Cash flow and balance sheet management a) OCEANIA Operating cash flow of $48.0m for 1HY2024 compared to $31.4m for 1HY¥2023. Statement of cash flows Debt facilities (as at 30 Sep 23) Facility limit Drawn amount Headroom NZDm tHy2024 — 1HY2023 Var Fy2023 General / corporate $i85m $112.5m $72.5m Re
Slide 23: Balance sheet
O7 Balance sheet @ oceania Total assets increased by $145m from 31 March 2023 driven by growth in the value of retirement village and care properties through acquisitions and continued development. Oceania’s net adjusted value is $1.48 per share as at 30 September 2023. Balance sheet (“NAV”) NZDm tH
Slide 24: Embedded value in existing portfolio
O08 Embedded value in existing portfolio @ oceania The embedded value in our portfolio has increased 5% since March 2023 to $480.2m as at 1HY2024 and will underpin the future realisation of cash flows from deferred management fees and resale gains. Embedded Value NZDm 500 e020 yse7 480.2 3.000 + Emb
Slide 25: Portfolio summary
09 Portfolio summary As at 30 September 2023. Facility NORTH ISLAND Region Care beds Care suites Village units Facility Region Care beds Care suites Village units SOUTH ISLAND Bream Boy Ruokake 5 E 83 33 Marina Cove’ Picton E E 26 26 Totora Park Rodney 5 E 30 30 Green Gables Nelson : ai 40 701 The S
Slide 26: Development pipeline
10 Development pipeline a) OCEANIA Status as at 30 September 2023. Sites Stage Stotus ILUs Core suites Gross units Net units Notes Stage 6 Under Construction - 40, 40 40 ‘Commenced construction FY2024 y Trevellyn) : Under Construction a - a a ‘Commenced construction FY2022 Under Construction 28 - 28
Slide 27: Future development outlook
11 Future development outlook @D oceania 60% of our existing portfolio is now premium units and care suites as we progress to ~74% premium / ~26% standard at the end of our current pipeline. ent & future portfolio composition! Existing portfolio Carebeds Care suites ILUs Total 17 1,396 1,699 ad Care
Slide 28: Reconciliation of portfolio movements
12 Reconciliation of portfolio movements +) OCEANIA Changes Conversion Conversion Changes in Changes in As at in existing of beds to of units to New units pipeline - gross pipeline - Asat Fy2023 capacity care suites care suites New units acquired delivered units added decommissions 1HY2024 Care beds
Slide 29: Summary of unit sales
. 13. Summary of unit sales a) OCEANIA New Sales. pep2019 pep2020 pep2021 4HY2022 4HY2023 4HY2024 Villa a 5 9 13 - 5 Apartment. 32 eo] 38 4 28 43 Care suite 25 63 65 Gy 33 36 Total 78 99 122 101 or Bu Average development margin 30.1% 39.6% 27.1% 26.0% 34.6% 23.1% Resales pop2019 pcp2020 pep2021 4HY2
Slide 30: Capital expenditure and reconciliation of resales cash flow
14 Capital expenditure and reconciliation of resales cash flow ) oceania 1HY2024 capital expenditure is lower than 1HY¥2023 due to the acquisition of Remuera Rise and Bream Bay Village in July 2022, offset by an increase in development capital expenditure. Breakdown of Capital Expenditure Reconcilia
Slide 31: Definition of Underlying NPAT
15 Definition of Underlying NPAT Underlying Profit (or Underlying NPAT) Underlying Profit is a non-GAAP measure used by the Group to monitor financial performance and is a consideration in determining dividend distributions. Underlying profit measures require a methodology and a number of estimates
Slide 32: Glossary
16 Glossary ARCC Aged Residential Care Contract Care suite A room or studio certified for the provision of care by the Ministry of Health which has been licensed under an ORA. DMF Deferred Management Fees, charged under an ORA, of a maximum of 30% of the Occupation Licence Payment, which are deducte
Slide 33: Important notice and disclaimer
17 Important notice and disclaimer This presentation has been prepared solely by Oceania Healthcare Limited ("Oceania"). You must read this disclaimer before making any use of this presentation and the accompanying material or any information contained in it (‘Document’). The presentation includes n