Summerset Group Holdings Limited · NZX:SUM
Summerset — Debt Investor Presentation (May 2025)
43 slides from Summerset's debt investor presentation, May 12, 2025
Slide 1: Retail Bond Presentation
Retail Bond Presentation Summerset Group Holdings Limited 12 May 2025 Joint Lead Managers 1 Summerset at St Johns (Auckland)
Slide 2: Disclaimer
Retail Bond Presentation Disclaimer Disclaimer This presentation has been prepared by Summerset Group Holdings Limited (SGHL or the Issuer) in relation to the offer of Bonds described in this presentation (Bonds). The offer of the Bonds is made in reliance upon the exclusion in clause 19 of schedule
Slide 3: Agenda
Agenda 01 Offer Highlights 02 Business Overview 03 Financial Performance 3 04 Funding and Security Structure 05 Offer Terms and Timetable 06 Questions 07 Appendix Summerset Waikanae, Kapiti Coast
Slide 4: Offer highlights
Retail Bond Presentation Offer Highlights Offer highlights Bond offer further diversifies funding sources and provides tenor ▪ Total bank debt facilities of approximately $1.9b and total retail bonds of $575m before the offer ▪ Net debt of $1.7b as at 31 December 2024 ▪ The net proceeds of the 2025
Slide 5: Business Overview
Business Overview 5 Summerset at Monterey Park (Hobsonville)
Slide 6: Investment highlights
Retail Bond Presentation Business Overview Investment highlights Compelling fundamentals in the retirement village and aged care sector, driven 1 by an ageing population and increasing market penetration Well positioned for growth with largest New Zealand land bank for a retirement 2 village operato
Slide 7: Summerset snapshot
Retail Bond Presentation Business Overview Summerset snapshot Diversified portfolio and land bank throughout New Zealand and Australia Our capital Our portfolio Our care Our people $2.6b 6,671 1,299 8,700+ Market Retirement units Care units in Residents capitalisation1 in portfolio2 portfolio3 7 Dua
Slide 8: Summerset background
Retail Bond Presentation Business Overview Summerset background Continuum of care continues to offer a compelling proposition to our residents ▪ Continuum of care provides peace of mind for our Summerset Provides Comprehensive Continuum of Care residents as they will be cared for when their health n
Slide 9: Large and geographically diverse landbank provides flexibility
Retail Bond Presentation Business Overview Large and geographically diverse landbank provides flexibility Summerset is the second largest and fastest growing operator in the New Zealand retirement sector Total portfolio by main operator (units) Summerset has the second largest existing portfolio and
Slide 10: Operational overview
Retail Bond Presentation Business Overview Operational overview A design, build, own, operate model. Cash flows are generated from three key sources Operations Cash flows Provision of care in serviced apartments, memory ■ Rest home, hospital and memory care fees Lumin technology care apartments, res
Slide 11: Our sustainability framework and targets
Retail Bond Presentation Business Overview Our sustainability framework and targets Our vision is to develop villages responsibly, creating a sustainable future for all STRATEGIC Contribute to the economic GOALS Reduce our impact on the planet Create caring communities for our prosperity of New Zeal
Slide 12: Our product
Retail Bond Presentation Business Overview Our product 12 Summerset Cranbourne North (Melbourne) Summerset Half Moon Bay (Auckland) Summerset St Johns (Auckland) Summerset by the Dunes (Pāpāmoa Beach, Tauranga)
Slide 13: Our product
Retail Bond Presentation Business Overview Our product 13 Summerset Palms (Te Awa, Napier) Summerset Boulcott (Lower Hutt) Summerset Richmond Ranges (Tasman District) Summerset Prebbleton (Selwyn District)
Slide 14: Financial Performance
Financial Performance 14 Summerset Cranbourne North (Vic, Australia)
Slide 15: 1Q25 sales update
Financial Performance 1Q25 sales update Market conditions stable with some early signs of improvement. Steady settlements across 1Q25 • Summerset achieved a 12% increase in settlement volumes from FY23 to FY24 despite a challenging operating environment across FY24 • Q1 2025 settlements of 290 (132
Slide 16: Summary financial metrics
Retail Bond Presentation Financial Performance Summary financial metrics Resilient balance sheet with consistent cash flows and profitability Net operating cash flows Total assets Underlying profit $500m $9,000m $250m $8,000m $400m $7,000m $200m $6,000m $300m $150m $5,000m $443.2m $4,000m $8,066m $2
Slide 17: FY24 underlying profit
Retail Bond Presentation Financial Performance FY24 underlying profit $206.4m $133.4m • Record underlying profit of $206.4m, up 8% on Underlying profit 8% Annuity EBITDA 19% FY23 with improved performance in both care and village operations NZ$m FY24 FY23 Variance FY22 • Care EBITDA of $2.7m, with m
Slide 18: FY24 cash flows
Retail Bond Presentation Financial Performance FY24 cash flows • $443.2m $138.2m Record operating cash flows of $443.2m, up 11% Operating cash flows 11% Net resales receipts 32% on FY23 • Operating cash flow growth driven by increases NZ$m FY24 FY23 Variance FY22 from ongoing operations, being care
Slide 19: FY24 balance sheet
Retail Bond Presentation Financial Performance FY24 balance sheet $8.1b $2.4b • Management continues to emphasise a prudent Total assets 16% Retained earnings 13% approach to balance sheet management • With economic conditions remaining restrictive, we NZ$m FY24 FY231 Variance FY22 will continue to
Slide 20: Capital management framework
Retail Bond Presentation Financial Performance Capital management framework Guiding principles to sustainably grow the business over the short to medium term Guiding principles FY24 in review • Grow the business by delivering sustainable expansion opportunities in New Zealand and Australia, that pro
Slide 21: Debt metrics
Retail Bond Presentation Financial Performance Debt metrics 36.4% 3.98x ▪ Strong financial discipline has ensured Summerset Gearing ratio1 Interest cover ratio2 is compliant with all lending covenants and obligations Interest cover ratio FY24 FY23 Variance ▪ Gross debt of $1,709m, up from $1,399m at
Slide 22: Development assets
Retail Bond Presentation Financial Performance Development assets $2.0b Underlying development $317.8m ▪ At 31 December 2024, net debt was $1,697m and Excess assets the value of development assets exceeded the value assets of net debt by $317.8m, or 19%. This means that the value of our land bank, d
Slide 23: Funding and Security Structure
Funding and Security Structure 23 Summerset Casebrook (Christchurch)
Slide 24: Purpose of debt and maturity profiles
Funding and Security Structure Retail Bond Presentation Purpose of debt and maturity profiles Bank facility as at 31 December 2024 approximately $1.9b, plus existing $575m of retail bonds Summerset uses debt to fund the acquisition of land for future Summerset debt maturity profile development, and
Slide 25: Loan to value ratio covenant
Funding and Security Structure Retail Bond Presentation Loan to value ratio covenant Significant headroom on loan to value ratio (LVR) covenant 38.0% Bank & bond LVR Key terms of bond LVR covenant 1: Loan to value ratio 50% ▪ LVR must not exceed 50% ▪ Reported breach of LVR on a test date is an Even
Slide 26: Security
Funding and Security Structure Retail Bond Presentation Security Assets of $5.1b available as security for financiers as at 31 December 2024 excluding residents’ loans ▪ Total assets as at 31 December 2024 of $8.1b, including Financial Position as at 31 December 2024 investment property ($7.3b) and
Slide 27: Security structure
Funding and Security Structure Retail Bond Presentation Security structure Summerset Group syndicated lending structure simplified - at 31 December 2024 Listed Bond Issuer and Debtor Summerset Group Bank Debt Borrower and Debtor Retirement Village Summerset Debtor Group Holdings Listed Bond Issuer D
Slide 28: Offer Terms and Timetable
gm merset Offer Terms and Timetable ~
Slide 29: Key terms of the offer
Retail Bond Presentation Offer Terms and Timetable Key terms of the offer Summary Detail Issuer Summerset Group Holdings Limited Instrument Fixed rate, guaranteed, secured, unsubordinated bonds (Bonds) Bondholders share the benefit of the same security package as bank lenders. In New Zealand, the St
Slide 30: Key dates of the offer
Retail Bond Presentation Offer Terms and Timetable Key dates of the offer Retail bond offer Date Opening Date Monday, 12 May 2025 Closing Date 11am, Thursday, 15 May 2025 Closing Date and Rate Set Date Thursday, 15 May 2025 Issue Date and Allotment Date Friday, 23 May 2025 30 Expected Date of Initia
Slide 31: Questions
Questions 31 Summerset Cranbourne North (Vic, Australia)
Slide 32: Appendix
Appendix 32 Summerset Down the Lane (Hamilton)
Slide 33: Board of Directors
Retail Bond Presentation Appendix Board of Directors Dr Marie Bismark Stephen Bull Venasio-Lorenzo Crawley Mark Verbiest Independent Independent Independent Chair, Independent MBChB, LLB, MBHL, MPH, MD, MPsych, FAICD, BCom, BPsych (Hons), CA (Australia and NZ), MBA, BA LLB CFInstD FAFPHM MAICD, MIns
Slide 34: Board of Directors
Retail Bond Presentation Appendix Board of Directors Gráinne Troute Andrea Scown Dr Andrew Wong Fiona Oliver Independent Future Director (IoD) Independent Independent BA, Grad DipBusStuds, CMinstD, CFInstD BBUS, ACA, MInstD BHB, MBChB, MPH LLB.BA, CFInstD Gráinne is Chair of Summerset’s Andrea is a
Slide 35: Management
Retail Bond Presentation Appendix Management Scott Scoullar Margaret Warrington Kay Brodie Chris Lokum Fay French Chief Executive Officer Chief Financial Officer | CA, BCA, Chief Marketing Officer | BCA, BSc Chief People Officer | GAID, BMS, Chief Sales Officer CA, FCPA, BCA DipTeach DipSocSci RNZcm
Slide 36: Management
Retaill Bond Presentation Appendix Management Aaron Smail Dean Tallentire Eleanor Young Stewart Scott Robyn Gillespie Chief Development Officer NZ Chief Construction Officer NZ Chief Operating Officer NZ | BSc (Hons) Chief Operating Officer Australia | Masters Chief Digital Officer | BA BE (Civil),
Slide 37: Glossary
Retail Bond Presentation Appendix Glossary Summerset glossary of key definitions Adjusted EBIT is EBIT less fair value movement of investment property, less deferred management fees (calculated under NZ GAAP), plus Adjusted EBIT net cash from resales, plus development margin, less/plus other one off
Slide 38: Glossary
Retail Bond Presentation Appendix Glossary Summerset glossary of key definitions Head office functions that support the business in effectively operating our retirement villages and care centres. These include employee Head office expenditure expenses (e.g. management), sales and marketing costs for
Slide 39: How an Occupation Right Agreement works
Retail Bond Presentation Appendix How an Occupation Right Agreement works Summerset earns a deferred management fee (percentage of incoming price) and all capital gains on resale of the Occupation Right Illustrative example (independent living unit): ▪ Residents moving into a retirement village in N
Slide 40: Security
Retail Bond Presentation Appendix Security Bondholders on an equal ranking security basis with bank lenders ▪ The bonds share the security provided by the Guaranteeing Group on an equal ranking basis with Summerset’s bank lenders as per the Security Trust Deed ▪ The Statutory Supervisor’s mortgage i
Slide 41: Customer profile and occupancy
Retail Bond Presentation Appendix Customer profile and occupancy Occupancy, tenure and resident demographic statistics Occupancy – retirement villages Occupancy – established care centres 100% 100% 80% 80% 60% 60% 96% 96% 95% 95% 94% 96% 97% 93% 93% 94% 40% 40% 20% 20% 41 - - FY20 FY21 FY22 FY23 FY2
Slide 42: Summerset growth and key demographics
Retail Bond Presentation Appendix Summerset growth and key demographics 27 years of consistent delivery and growth Summerset build rate New Zealand population growth 75 years and over 9,000 1,200,000 16% 1,000,000 14% 7,970 12% 8,000 800,000 10% 600,000 8% 7,000 400,000 6% 4% 200,000 2% 6,000 - - 42
Slide 43: Ngā mihi
Ngā mihi 43 For more information: Margaret Warrington Chief Financial Officer [email protected] +64 4 894 7320
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