Annual General Meeting 20 November 2019 Welcome from the Chairman - - PowerPoint PPT Presentation

20 November 2019

Annual General Meeting

Welcome from the Chairman

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Agenda Overview

• Outline of scheduled proceedings
• Please turn your phones to silent
• Amenities and evacuation process
• Tea and coffee facilities

Martyn Pickersgill

The Second Annual Meeting as Longevity Group Australia Ltd

Introducing the Board

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Philip Lovel AM Director Martyn Pickersgill Director/Chairman Derek Cafferty Managing Director Gerry Bullon Director Sharon Brearley Roberts Director/Company Secretary

Introducing Management

Management

Back row

• Matthew Jones CPA – Group

Accountant

• Sally Eddison – Executive Assistant
• Frank McMullen – Project Manager

Front row

• Sharn Jenkins – Interiors Manager
• Annelies Gonzaga – Communications

& Marketing Manager

• James Choi - Development Manager

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Our Partners

Our Partners

• Auditors - RSM
• Financial Advisors - JBWere
• A panel of legal advisors including:

Gadens and Russell Kennedy

• Share Registry - Computershare
• Banker – Westpac
• Builders – FLUX by Figurehead &

Virgon

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Overview from the Chairman

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Minutes of the 2018 AGM

• Available for viewing at the registration desk

Martyn Pickersgill

Overview from the Chairman

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Notice of Meeting 2019 AGM

• Available for viewing at the registration desk

Martyn Pickersgill

Chairman’s Report

A year of opportunities, challenges and progress

• We continue to pursue our vision of a new model for

downsizer living.

• One project “out of the ground” a second has works

commenced with the third not far behind!

• The slow-down in the property market appears to have

turned a corner. This is good news for Longevity as its projects come on to the market.

• The national challenges the retirement sector face are

a validation of the importance of the sale of The Mornington.

• The sale of the Swan Street property was a fantastic

result! With the final sale price being well above the sworn valuation, it exceeded all expectations allowing us to use the funds for our new strategy.

The Future

• Review of senior management and key staff has been

undertaken and we are now in a good position to ensure that the business is agile and competitive.

• Construction underway now but the aim is to have two

more projects out of the ground next year – four in total.

• Noticing an increase in enquiries after the unsettled

period where the Federal Election and Banking Royal Commission caused uncertainty in many areas not just building and real estate.

• Continuation of our pipeline (purchasing appropriate

sites) requires cash funding therefore the decision to sell 487 Swan St.

• My thanks to all staff who have contributed to the
• peration of the company in the last financial year.
• It is important that we thank our shareholders who

have supported us and also those who provide us with feedback so that we can incorporate this into our business practices and strategies.

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Managing Director’s Report

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2019 - Continuing to face the challenges and grow from these experiences

• Four sites, and we now have four council planning permits.
• Construction is well underway on our Camberwell Avenue Rise
• project. Structural work will be completed this year! The fit out

work will continue through to the end of 2020.

• We have appointed builders and will commence construction on

the Kings Vue Project in Balwyn by the end of the year.

• Finally obtained VCAT approval for the Castle Rise project –

Castran have been appointed as the sales team for this project which we hope to commence in the first half of 2020.

• Redefined our designs based on customer needs and feedback.
• Continued growth and awareness of the Longevity brand and

launched project brands along with regular updates to both potential purchasers and shareholders.

• Achieved strong pre-sales and interest of Longevity branded

residences/homes for projects – Over 50% of Avenue Rise has been sold.

• Regrouped and implemented a revised strategy to improve

project and asset management to deliver maximum benefits to all stakeholders.

Derek Cafferty Managing Director

Managing Director’s Report

Our Model

As we have previously reported, Longevity identified a market gap for a new housing product for

• lder Australians. This was based on our extensive knowledge of retirement living, research and

feedback from older people seeking their next home. We could have ignored what we had uncovered and stood still, we chose to act and create an alternative.

• We understand that people want to own their own home outright.
• We understand that large Deferred Management Fees erode family wealth.
• We realised that homes should be designed so that people can age in place.
• We know that people want a simplified lifestyle with less maintenance but don’t want to be

squeezed into a few tiny rooms.

• We understand that people want to stay living in the communities they have helped to build.

The homes we design and build are helping to fill this gap and provide comfortable, dignified next stage living.

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Strategic decisions made - Where we were

Prior to demutualisation we struggled to operate businesses in heavily regulated sectors, decisions have been made which ensured the continuance of service delivery, no loss of jobs and no negative financial impact on the company. Sector Our exposure Decision Industry 2019 Private health insurance Third smallest fund nationally, increased regulation & competition First ever sale of a private health fund to large ASX listed entity Increased regulation, royal

• commission. Industry now

under APRA regulation Aged care One 60 bed facility, which is heavily regulated nationally, a changed funding model that we saw as unsustainable Sold to large not for profit- high reputation operator Royal Commission, sector under increased regulation, large operators struggling to deliver Dental services One 3 chair outlet, only clients our own heavily subsidized health fund members Sold to large ASX listed

• perator that has multiple

service delivery sites Greater exposure to competition and expensive new technology Retirement Village One completed aging village, no vacant land. Major industry downturn due to bad national

• publicity. Initially unable to

sell at valuation Improved performance and management of village led to sale of village to large national not for profit operator at valuation Royal Commission, sector under increased regulation, large operators struggling to survive. Unpopular service model for next generation of retirees

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The Vision

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What we do

• Today, under the banner of Longevity Group

Australia Ltd, we’ve developed an innovative way to continue doing what we’ve always done: improving the quality of people’s lives.

• With our experience, Longevity discovered a gap

in the thinking and approach to next stage living for empty nesters. This presented a significant market opportunity for a unique property solution that satisfied both lifestyle aspirations and financial security needs.

To build on our strengths and develop innovative solutions.

Managing Director’s Report

Our Future Pipeline

We have spoken in detail about our current projects and will elaborate in further slides, but what’s next after Avenue Rise and Kings Vue are completed? Castle Rise – Finally after great frustration and 3 attempts we have achieved a realistic outcome for our Eaglemont site: 8 3-bedroom townhouses will be constructed commencing 2020.

• We now have appointed Castran project property sales to develop and implement our sales campaign, a

sneak preview of the sales campaign will shortly commence.

• An onsite sales office depicting the plans and finishes will be used on this project to engage potential

buyers.

• There has been an unexpectedly strong pre-launch interest from the local community in this project.

Kings Reserve

• We intend to kick this project off after the Kings Vue project is completed.
• The project consists of 8 townhouses with a mix of two and three-bedroom options.

Other suburbs are also on our horizon:

• Northern suburbs and Frankston in the south are areas we are keeping a close eye on – we are keen to

provide a more economic version of our houses in other well established suburbs.

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Managing Director’s Report

580 Riversdale Road, Camberwell Marketed as Avenue Rise

• A luxury apartment site
• 11 bespoke apartments over three levels with

basement car parking

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• Over 50% pre sales which include the large

penthouse

• Project to be completed in the summer of 2020
• Structure to be completed by end of 2019

Managing Director’s Report

26-28 King St, Balwyn – Marketed as Kings Vue

• With interest picking back up in the property market and the on-site sales suite, we are receiving strong

enquiries on purchasing off-the-plan.

• The site has secured development approval for seven low-maintenance future-proof spacious townhouses
• ver two levels with individual basement garages.
• The builder has been appointed and has taken possession of the site, construction commencing by year end.

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Managing Director’s Report

15 Castle St, Eaglemont – Marketed as Castle Rise

• 8 spacious architect designed townhouses.
• 2019sqm in size with 60% of the land allotted to garden space creating room for spacious outdoor living.
• Five minute walk to train station, bus/smart bus stop, retail shops, activity centre, major supermarkets, park

reserves and public/private hospitals.

• We are receiving strong enquiries on purchasing off-the-plan with Castran being appointed as the Sales

Team.

• Our in-house Interiors Manager has revamped the internal fixtures and fittings to align with customer

feedback and ensure all LHA standards are achieved.

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Managing Director’s Report

22-24 King St, Balwyn – Not yet marketed

• We have now achieved planning approval from Council to construct eight townhouses in the Longevity style on

this 1900sqm block.

• Although adjacent to the Kings Vue project, Kings Reserve will have a completely different look and feel.

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Managing Director’s Report

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Developing our future Staying ahead

• We are in the process of completing a refresh of our showroom in Camberwell to reflect the features and finishes in our

townhouse projects. Not many people have lived in a house with an individual lift so it is important that we show them how big they are.

• Our background and history are extremely important to purchasers, knowing that we are not fly-by-night developers is
• reassuring. Using knowledge built over the history of the company and continually adapting this to our market.
• We have engaged an Interiors Manager who is committed to our design principles which incorporate Livable Housing

Guidelines whilst developing a distinctive Longevity style. We are developing our own standards that specifically address the aspirations of older Australians.

• Learning from clients that they want to be able to add their own touches and incorporate items they have collected throughout

their life or new purchases that are special to them. Recognising that older buyers are experienced home owners with

• pinions.
• Keeping abreast of technology and services providers we can partner with, to provide better service for our clientele -

including Smart Home technology, and in-home care providers.

Managing Director’s Report

Why we sold The Mornington Retirement Village

• We developed a view three years ago that the time was right for us to sell The Mornington Retirement

Village.

• All available land had been developed and we had recently undertaken a major renovation of the

clubhouse.

• Initially we invited targeted potential purchasers to submit bids, during this process a documentary was

released exposing bad practice in retirement villages and aged care. The market for retirement village acquisitions evaporated.

• Some time later we went through a public campaign to sell The Mornington but withdrew it from the market

due to no acceptable offers being received.

• We concentrated on improving the financial performance of the village.
• Shortly after we received an approach from not for profit provider Southern Cross Care with an offer at

valuation.

• After a lengthy due diligence period the village was sold for a total of $17.475 million.
• The retirement village sector is now facing increased legislation including onerous operator buy back

requirements.

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Managing Director’s Report

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Feedback from Shareholders – we are receiving great feedback from shareholders including:

• How do you decide which suburbs you develop in?
• Would you buy my house?
• Has the Board considered a share buy-back?
• Has the Board considered selling the company?
• How do I sell my shares?
• Are Longevity looking to develop in my area?
• Where do we find information easily on what the

company is doing?

• Can you email us a regular update?

The Chairman has taken these questions on notice and more! He will respond at the end of the meeting.

General Meeting

2

General Meeting

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Financials

• To receive and consider the Financial Statements,

Director’s Report and Auditors Report for the financial year ended 30 June 2019.

• A copy of the Company’s 2019 Annual Report is

available at the Company’s website: www.longevityga.com.au

Item 1

Where we were vs now

Company value

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Where we were vs now

Cost analysis for admin Cost analysis for Board

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Voting Procedure

Formal Vote Requirements

The following items of business require a formal vote. As you arrived today you were issued with a Yellow or Green admission and voting card. These cards are colour coded to help us clearly identify those entitled to vote and ask questions on the various items.

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General Meeting

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Election of Ms Sharon Brearley Roberts as a Director of the company

• To consider and, if thought fit, to pass the

following Resolution as an ordinary resolution:

• That Ms Sharon Brearley Roberts, who was

appointed by the Directors in accordance with clause 14.1(c) of the Constitution on 25 February 2019, being eligible and having offered herself for election in accordance with clause 14.1(d) of the Constitution, be elected as a Director of the Company, with effect immediately after the passing of this Resolution.

Item 2 – Election of a director

General Meeting

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Re-election of Mr Philp Lovel as a Director

• f the company
• To consider and, if thought fit, to pass the

following Resolution as an ordinary resolution:

• That Mr Philip Lovel, AM who retires by rotation

in accordance with clause 14.3(b)(iv) of the Constitution and, being eligible, offers himself for re-election in accordance with the terms set out in the Explanatory Memorandum.

Item 3 – Re-election of a director

General Meeting

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Election of Dr Trevor Hansen as a Director

• f the company
• To consider and, if thought fit, to pass the following

Resolution as an ordinary resolution:

• That Dr Trevor Hansen, being eligible for election as

a Director and having offered himself for election, be elected as a Director of the Company, with effect immediately after the passing of this resolution.

Item 4 – Election of a director

General Meeting

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Item 5 – Questions received with notice

• Q. How do you decide which suburbs you develop in?
• A. Sites are selected based on criteria that includes; proximity

to public transport, shops, hospital and a high % of home

• wners being over 60.
• Q. Would you buy my house?
• A. We would not give preference to a shareholder to buy their

house, however if it met the above criteria and represented a potential return we would evaluate the site as we do many

• thers.
• Q. Are Longevity looking to develop in my area?
• A. We are currently looking at sites that match the above

criteria across Melbourne.

• Q. Has the Board considered a share buy-back?
• A. The Board is currently assessing the feasibility of a share

buy-back and is in the process of communicating with ASIC regarding this matter. Shareholders will be kept updated regarding this matter.

General Meeting

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Item 5 – Questions received with notice

• Q. Has the Board considered selling or closing the company?
• A. The Board regularly conducts strategic planning and

reviews, as a component of this process all potential scenarios are considered and decisions are made based on what is in the best interests of all shareholders. Q How do I sell my shares?

• A. Longevity is accredited by ASIC to operate a low volume

market, you can register your shares and set the price you want to achieve. We are not licenced to give financial advice regarding share value.

• Q. Where do we find information easily on what the company

is doing?

• A. Our website has lots of information and we are soon to

commence quarterly email bulletins for shareholders.

• Q. Can you email us a regular update?
• A. Yes, but we need your email address and you will receive

the quarterly shareholder update plus our project specific updates.

General Meeting

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Item 5 – Questions received with notice

• Q. Can a shareholder request to see the Board Minutes, financial

projections other than those contained within the Annual and Half Yearly Financial Statements or other commercial information?

• A. Under continuous disclosure the Board assesses all

information and if it is considered necessary it will be released. Any information released to one shareholder must be made available to all shareholders.

• Q. Would Longevity consider the property market “strong” at

present?

• A. Our best advice is that the property market is starting to

recover however it is recovering from the worst downturn in 30

• years. We are hopeful and optimistic that it will continue to

improve.

• Q. Why is Longevity not sending hard copies of updates?
• A. This would be a large time consuming task and costly to
• shareholders. Postage of the quarterly updates alone would be

close to $16,000.

• Q. Will the Board disclose the remuneration to Directors and

Executives?

• A. This question is timely as this detail was disclosed earlier in the

meeting, furthermore the Board has agreed that this will be disclosed in the Annual Report moving forward.

General Meeting

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Item 5 – Questions received with notice

• Q. Do we have a forward guidance?
• A. If you mean do we have a Business Plan then yes we do.
• Q. When will the organisation turn to profits and likely dividends?
• A. We conduct extensive modelling on all the projects and
• perations of Longevity and if we did not see that in the future we

will be making profits and paying dividends then we should change

• ur direction.

Q Could you explain what the purpose of the “likely developments and expected results of operations” of the directors report contained within the annual report? The item reads as follows “information on likely developments in the operations of the group and the expected results of the

• perations have not been included in this report because directors

believe it would be likely to result in unreasonable prejudice to the group.” A This item has been in every annual report since 2010. It means that if we have a plan for example, to purchase a parcel of land, and it was disclosed then it would be possible for other parties to make an effort to prevent that from happening or even purchase it before us. Similar to most companies, we are not gong to provide competitors advance notice of what we are doing.

General Meeting

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A message from Longevity Board and Management

Morning Tea

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Morning tea will finish at 11.00

• Directors are to exit the room to the anti-chamber
• Staff are to exit through the rear entrance, and
• Shareholders and other attendees please make

your way out the main exit onto Johnson Street

Please help yourself to morning tea and mingle with both the Company’s Directors and Management