Eureka Group Holdings Limited · ASX:EGH
Eureka — FY2016 Earnings Presentation
22 slides from Eureka's earnings presentation, Sep 12, 2016
Slide 1: Year End Investor Update
Eureka Group Holdings Limited Year End Investor Update For personal use only September 2016
Slide 2: Overview
Overview For personal use only Capital Structure Major Shareholders National Nominees Limited 14.14% Share Price $0.75 J P Morgan Nominees Australia Limited 11.63% Fully Paid Ordinary Shares (m) 231.7 Robin Levison (through controlled entities) 5.54% Market Capitalisation (m) $173.3m Citicorp Nomine
Slide 3: Results - Highlights
Results - Highlights For personal use only • Revenue of $24.2m up 98% • EBITDA of $12.7m up 202% • Statutory NPAT of $10.5m up 237% • EPS of 5.19 cps up 132% • Strong balance sheet – net assets of $64.9m up 104% • Investment property book value of $86.5m up 118% • $43m invested for 13 village acquis
Slide 4: Eureka Group – Three distinct teams or business units
Eureka Group – Three distinct TEAMS or BUSINESS UNITS For personal use only • Eureka’s goal is to provide the highest level of low cost rental accommodation and associated care to independent retirees who are either completely or primarily reliant on the Australian Government Pension and Rent Assist
Slide 5: Growth Drivers
Growth Drivers For personal use only Eureka has 4 growth drivers available to it: • Acquisition growth - acquired 24 villages in last 28 months and is targeting a further 8-12 low cost accommodation asset acquisitions in the next 12 months from a very fragmented market. • Organic growth – Brownfield
Slide 6: Income Statement – year ending June 2016
Income Statement – 12 months ending 30 June 2016 For personal use only The table below summarises the results for the year ended 30 June 2016 compared with the results from the prior financial year: ($'000) FY2015 FY2016 $ change % change Total revenue 12,212 24,155 11,943 98% Key Points Operating e
Slide 7: Balance Sheet – June 2016
Balance Sheet – 30 June 2016 For personal use only The table below summarises the balance sheet at 30 June 2016 compared with the balance sheet at 30 June 2015: ($'000) 30 June 2015 30 June 2016 Key Points Assets • Healthy balance sheet to pursue an continued growth Cash and cash equivalents 5,154 6
Slide 8: EBITDA Pro Forma Annualised Basis
EBITDA Pro Forma Annualised Basis For personal use only The fourteen village acquisitions announced since 1 July 2015 are expected to contribute an additional $6.09m to Eureka’s EBITDA on an annualised basis. $12.09m Page 8
Slide 9: Improvement in village performance
Improvement in village performance For personal use only The tables below summarise the improvement of certain villages since acquisition by Eureka: Key Points • Earnings for all villages have grown since acquisition. • Operating efficiencies and economy of scale benefits continue to drive improved
Slide 10: Size & Scale Benefits
Size & Scale Benefits For personal use only Eureka has created the following economies of scale and scope: • Eureka “Buy & Build” strategy succeeding with a further 200 low cost rental accommodation assets identified and preliminary due diligence completed. • 34 villages under management. • 25 villa
Slide 11: Village Location
Village Location Clusters By State Bring Scale & Scope Benefits For personal use only 323 Units NT QLD 19 214 Units WA SA 9 599 Units NSW 4 315 Units 584 Units ACT VIC 2 TAS Page 11
Slide 12: Potential Opportunities | Ethical Investment
Potential Opportunities | Ethical Investment For personal use only • There is an expanding gap in the market as other service providers move their product up in market price and away from a rental option. They have lost sight of the ethical responsibility we have to the lower socio-economic sector o
Slide 13: Ageing Australian Population
Ageing Australian Population For personal use only The ABS forecast the number of Australians aged over 65 will increase from 3.6 million today to 4.2 million in 2020 and will increase to 8.8 million by 2050 Source: ABS Dataset: 3222.0 Population Projections, Australia 2012-2101, Table A9, Populatio
Slide 14: Low Penetration of Retirement Living
Low Penetration of Retirement Living For personal use only The proportion of Australian’s residing in retirement village is low compared to other countries. Around 12% of seniors reside in retirement villages in the US, compared to <6% in Australia. • If the penetration rate of retirement living com
Slide 15: Low Penetration of Retirement Living
Low Penetration of Retirement Living For personal use only Growth in demand for retirement living will continue to grow. Knight Frank estimates 31,035 new independent living units will be required across Australia’s capital cities by 2020 in order to meet expected consumer demand. Source: Knight Fra
Slide 16: Terranora Village Redevelopment
Terranora Village Redevelopment For personal use only The redevelopment of the 80 unit Terranora village that was acquired for $7m in December 2015 is expected to reap a significant financial windfall and bolster the strength of Eureka’s balance sheet. The redevelopment will involve: • The sale of 3
Slide 17: Terranora Village Redevelopment
Terranora Village Redevelopment For personal use only Page 17
Slide 18: Couran Cove Island Resort
Couran Cove Island Resort For personal use only • The Resort is an example of a complex re-engineering or re-repurposing opportunity that Eureka will continue to seek, in addition to its core buy and build acquisition strategy of existing seniors type rental accommodation. • Eureka has acquired 34 e
Slide 19: Summary
Summary For personal use only • Eureka is the only ASX listed company solely focused on providing affordable rental accommodation for seniors living independently in Australia. • Eureka is now the largest owner/operator of regional seniors low cost rental retirement accommodation in Australia. • Cle
Slide 20: Summary continued
Summary continued For personal use only • High cash conversion unaffected by movements in either global or Australian economies or share markets. • Incentive based agreements with Village Managers provide greater remuneration clarity and improved occupancy and village returns. • Eureka unaffected by
Slide 21: Contact Details
Contact Details For personal use only Robin Levison Executive Chairman Phone: +617 5568 0205 Email: robin.levison@eurekagroupholdings.com.au www.eurekagroupholdings.com.au Page 21
Slide 22: Disclaimer
Disclaimer For personal use only 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: • make no representation, warranty or undertaking, and accept no responsibility or l