Eureka Group Holdings Limited · ASX:EGH
Eureka — H1 2023 Earnings Presentation
30 slides from Eureka's earnings presentation, Feb 28, 2023
Slide 1: 1H23 Results Presentation
1H23 Results Presentation February 2023
Slide 2: Contents
Contents 1H23 About Operational Highlights Eureka Performance Capital Strategic Appendix Management Priorities 2
Slide 3: 1H23 Highlights
1H23 Highlights 3
Slide 4: 1H23 Highlights
1H23 Highlights Revenue and earnings growth driven by strong resident demand and rental growth across the portfolio $17.5m $5.9m $7.8m 41.5 cents Revenue Underlying EBITDA1 Profit after tax NTA per share 18% 1H22 14% 1H22 92% 1H22 9% FY22 Whole-of-portfolio Like-for-like revenue Like-for-like villag
Slide 5: 1H23 Highlights
1H23 Highlights Eureka operates a pure play, specialist strategy of providing affordable seniors rental accommodation GEOGRAPHIC OVERVIEW PORTFOLIO SNAPSHOT 47 Villages 2,692 $203m Units under Investment property QLD management value1 $120m +185 units FY22 $172m FY22 98% 9.35% Occupancy WACR3 NSW 98
Slide 6: Segment information
Segment information Solid contributions from all segments Village contributions1 Unit numbers at 31 December 2022 Asset values at 31 December 2022 (excluding revaluations) $7.8m $13m $7m $7.0m 254 2,692 870 units 1,568 $1.2m $0.7m $0.6m $0.5m $190m Owned Managed Joint Venture (50%) Owned Managed Joi
Slide 7: Underlying EBITDA
Underlying EBITDA1 Continued Underlying EBITDA growth, with margins expected to improve 38.3% $14m 35.3% 35.1% 33.7% 34.0% $12.1m $12m 30.8% $11.8m 26.2% $10m Underlying EBITDA 1 $8m $6m $4m $2m $m FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H 2H 2H low guidance 2H high guidance Underlying EBITDA margin 1.
Slide 8: 1H23 Highlights
1H23 Highlights Eureka has a sound financial base, a sustainable business model and significant growth opportunities Strong results ✓ Portfolio value uplift ✓ Acquisitions and developments ✓ Capital management ✓ Resident-first approach ✓ Strengthened management team ✓ 8
Slide 9: About Eureka
About Eureka 9
Slide 10: Well placed within the seniors living spectrum
Well placed within the seniors living spectrum Eureka is a leading operator of affordable and scalable seniors rental accommodation Residential Government social Seniors rental Land lease communities Retirement village Aged care home housing ‘Eureka’ Community-based Care services available Advanced
Slide 11: Favourable industry dynamics
Favourable industry dynamics Positioning Eureka’s portfolio strongly for the future Australians aged 65+ years old (m) Median weekly rent ($) People with no superannuation Superannuation (%) balances ($000’s) 600 5.6 5.4 5.2 550 4.8 500 4.6 4.3 450 4.0 400 3.8 3.6 350 300 250 Sep-17 Sep-18 Sep-19 Se
Slide 12: Operational Performance
Operational Performance 12
Slide 13: Investment properties
Investment properties Portfolio enhanced by active management Commentary Strong portfolio growth2 supported by acquisitions and developments Investment property value ($m) • Valuation uplift of 22% on the 4 properties 7 independently valued during the period, largely driven by increased village earn
Slide 14: Portfolio diversified across owned, JV and managed units
Portfolio diversified across owned, JV and managed units Commentary Portfolio statistics 1H23 FY22 • Eureka maintains a core portfolio of 1,568 owned Owned units [#] 1,568 1,392 units and 254 units held in a 50% Joint Venture JV units [#] 254 254 • Eureka’s interest in these units is valued at $203m
Slide 15: Disciplined acquisition strategy
Disciplined acquisition strategy Completed 3 village acquisitions1 in 1H23 and actively assessing other opportunities Completed acquisitions Acquisition objectives $6.7m acquisition 50 units settled November 2022 Tamworth, NSW $5.1m acquisition 46 units settled November 2022 Horsham, VIC $7.3m acqui
Slide 16: Development strategy – building long term value
Development strategy – building long term value Committed to growing the portfolio via greenfield and brownfield development opportunities Proven development track record which includes Ability to unlock embedded development potential Development opportunities well swift ramp up to steady state occu
Slide 17: Sustainability
Sustainability Resident first philosophy enhances resident experience, creating sustainable value for shareholders Initiatives Achievements Targets / Focus Solar power • Solar to be implemented in a further 6 villages in Environment Commitment to energy conservation through a CY2023, reducing reside
Slide 18: Capital Management
Capital Management 18
Slide 19: Robust capital management
Robust capital management Capital management planning provides optionality for future funding requirements Commentary • Funding of Brassall development and targeted 2H23 Key debt metrics 1H23 FY22 acquisitions is well supported by existing cash flows, covenant headroom and undrawn and available debt
Slide 20: Dividends
Dividends Consistent returns to shareholders since commencement of paying dividends Dividends Key dates Dividend track record (cps) 1H23 interim dividend Ex-dividend date 16 March 2023 0.67 0.67c per share 0.63 0.63 Record date 0.59 0.59 • Dividend reinvestment 0.55 0.55 plan (DRP) operative 17 Marc
Slide 21: Strategic Priorities
Strategic Priorities 21
Slide 22: Delivering on strategy
Delivering on strategy Building long term value through a disciplined growth plan, backed by an ESG focused, resident first philosophy Resident experience initiatives ✓ Portfolio value ✓ Portfolio management ✓ Capital management ✓ People ✓ Technology ✓ Brand repositioning ✓ 22
Slide 23: Guidance and outlook
Guidance and outlook Updated FY23 full year guidance 1. Refer Definitions 23
Slide 24: Appendix
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Slide 25: Profit and loss
Profit and loss ($ '000) 31-Dec-22 31-Dec-21 • Profit after tax increased 92% to $7.8m Rental income 11,765 10,293 Catering income 2,699 2,402 • 18% increase in total revenue driven by like-for-like Service and caretaking income 2,991 2,107 village growth (+8%) and acquisitions Total revenue 17,455
Slide 26: Balance sheet
Balance sheet ($ '000) 31-Dec-22 30-Jun-22 • Strong balance sheet with financial capacity for Assets expansion Cash and cash equivalents 2,068 1,837 • Competed $28.2m capital raise to fund acquisitions, Trade, other and loans receivable 549 1,138 expand the Brassall village and retire debt Joint ven
Slide 27: Cash flow statement
Cash flow statement ($ '000) 31-Dec-22 31-Dec-21 Cash flows from operating activities • Reliable operating cash flows Receipts from customers 17,659 14,796 • Net cash from operating activities was $3.7m Payments to suppliers and employees (13,047) (10,919) (+33% on pcp) Distributions from joint vent
Slide 28: 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 29: 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 repres
Slide 30: Contact details
Contact details Eureka Group Holdings Limited ABN 15 097 241 159 REGISTERED ADDRESS Suite 2D, 7 Short Street Southport QLD 4215 BRISBANE OFFICE Level 5, 120 Edward Street Brisbane QLD 4000 POSTAL PO Box 10819 Southport BC QLD 4215 T: 07 5568 0205 E: info@eurekagroupholdings.com.au www.eurekagrouphol
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