Business for Purpose Results Presentation Year ended 30 June 2018 - PowerPoint PPT Presentation

Business for Purpose Results Presentation Year ended 30 June 2018 15 August 2018 LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 1

Contents Appendix 3 1. Overview A.1 Sales and settlements 29 10 2. Financial & operational results A.2 Deferred management fee 30 17 3. Outlook A.3 Investment property analysis 31 21 4. Business model A.4 Cash fmow analysis 33 26 5. Summary A.5 Fair value breakdown 35 This document should be read with the Disclaimer on page 36 LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 2

Our Story 2003 “Lifestyle Communities James Kelly, Dael Perlov redefines the way Australians and Bruce Carter develop business plan can downsize in a resort-style community, while still having all the benefits of owning 2004 Development of fjrst your home and having total community at Brookfjeld - Opened in June 2005 independence.” 2007 Listed on the Australian Stock Exchange 2012 2014 2016 2018 Major capital raising 1,000th 2,000th homeowner Acquired 16th of $36m homeowner moves in/ community site moves in 10th Community Clubhouse opens LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 3

A Business for Purpose An afgordable housing option for the 50% of Australians aged over 50 who have less than $550,000 in total equity An afgordable and sustainable fjnancial model where homeowners can prosper An empowering and engaging customer service strategy High quality resort style facilities that exceed expectation LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 4

Community Overview How does the Lifestyle Communities model of living work? Homeowners at Lifestyle Communities own their own home and lease the land upon which their Homeowners at homes are located, via a weekly site fee. Lifestyle Communities are protected by the Residential Tenancies Act. Homes typically priced at 75-80% 70- 80% 70- 80% of the median house price. On average, release of Release of equity upon sale of existing approximately $129,000 equity home. upon sale of old home. A 90 year lease provides AFFORDABLE LIVING security of tenure. The weekly site fee is approx. 20% of the Age Pension The weekly site fee is approximately 20 - 22% of the Age Pension after receipt of the Commonwealth Rental Assistance. after receipt of Commonwealth Rental Assistance. LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 5

Financial Summary FY2018 FY2017 Overview ($ Million) ($ Million) Net profjt after tax attributable to shareholders $52.7 $27.7 FY2018 results snapshot Underlying net profjt after tax attributable to shareholders $33.8 $25.0 Total assets $358.2 $266.1 Equity $204.6 $155.5 Dividends (interim and fjnal) 4.5 cents per share 3.5 cents per share Net debt $31.4 $43.4 Net debt to net debt plus equity 13.3% 21.8% Growing annuity income streams Site Rental Fees (gross) Deferred Management Fees (cash) $22,000,000 $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Financial Year 2017 2018 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total number of homes settled 1,626 1,947 100 138 202 305 412 546 695 906 1,146 1,348 (Cumulative) Number of resales 73 59 - - 4 11 8 11 10 23 34 52 attracting a DMF LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 6

Overview A repeatable business model structured for sustainable growth FY2018 Highlights Home sites (annuities) under management (1) 2200 • 344 new homes sold and 321 settled • 1,947 (1) occupied home sites 1,947 2000 • 2,859 homeowners • Portfolio of 2,995 (2) homes and home sites 1800 • 59 resale settlements during the year (3) 1600 • Contracted land at Kaduna Park (4) , Wollert North and an additional 1.3ha at Ocean Grove (5) 1400 • Underlying profjt after tax attributable to shareholders increased to $33.8 million compared to 1200 $25.0 million in the prior year 1000 • Dividend of 4.5 cents per share fully franked (2.0 cents per share interim paid and 2.5 cents per share 800 fjnal declared). 600 400 200 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Financial year Notes: (1) Represents gross numbers not adjusted for joint venture interests (2) Settled, under development or subject to planning (3) Total resales were 87, of which 59 attracted a DMF (4) Settlement of purchase subject to planning approval (5) 1.3 ha contracted in April 2018 and due to settle with the rest of the site in Q2 of FY2019 LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 7

Overview Lifestyle Communities’ Portfolio snapshot portfolio continues to grow organically 30 June 2018 Homes occupied or sold Total homes in Homes sold & Homes sold & and awaiting settlement Communities communities occupied awaiting settlement # % Existing Communities – Sold out Brookfjeld at Melton 228 228 - 228 100% Seasons at Tarneit 136 136 - 136 100% Warragul 182 182 - 182 100% Casey Fields at Cranbourne (1) 217 217 - 217 100% Chelsea Heights (1) 186 186 - 186 100% Hastings 141 141 - 141 100% Lyndarum at Wollert 154 154 - 154 100% Offjcer 151 151 - 151 100% Existing Communities – Under construction Shepparton 301 247 21 268 89% Geelong 164 143 17 160 98% Berwick Waters 216 137 72 209 97% Bittern 209 25 163 188 90% Ocean Grove 221 - 96 96 43% New Communities – Awaiting commencement Mount Duneed 191 - - - - Kaduna Park at Offjcer South (2) 165 - - - - Wollert North 133 - - - - Total Home Sites (3) 2,995 1,947 369 2,316 77% Notes: (1) Represents 100% of the development of which Lifestyle Communities shares 50% (2) Commencement of construction subject to planning approval and contract becoming unconditional (3) Lifestyle Communities will have an economic interest in 2,794 home sites LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 8

Portfolio Overview 16 communities in planning, development or under management Focus remains in Victoria • Favourable planning legislation • Better access to zoned, fmat land for development Community Homes Settled • Low saturation of land lease communities Brookfjeld at Melton 228 100% • Balanced and supportive state legislation for the Seasons at Tarneit 136 100% management of communities Casey Fields at Cranbourne 217 100% Chelsea Heights 186 100% Warragul 182 100% Hastings 141 100% Offjcer 151 100% Lyndarum at Wollert 154 100% Shepparton 301 82% Shepparton Geelong 164 87% Berwick Waters 216 63% Bittern 209 12% Wollert North Ocean Grove 221 - Lyndarum Mount Duneed 191 - Brookfield Officer Kaduna Park at Offjcer South (1) 165 - Kaduna Park Seasons Berwick Waters Wollert North 133 - Chelsea Heights Geelong Warragul Casey Fields 2,995 (2) 65% Mount Duneed Hastings Ocean Grove Bittern Correct as at 30 June 2018 Notes: (1) Commencement of construction subject to planning approval and the contract becoming unconditional. (2) Represents gross numbers not adjusted for joint venture interests at Cranbourne and Chelsea Heights. LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 9

Section 2 Financial & operational results 10

2.1 FY 2018 Sales and Settlements Sales Commitments • Shepparton and Geelong continued to perform well achieving 41 and 37 net sales respectively. Geelong has only 4 display homes left to sell • Berwick Waters is 97% sold out with 72 homes awaiting settlement • Bittern sold 116 homes in FY2018 and has 163 homes sold awaiting settlement • Ocean Grove has achieved 96 sales since the project was launched in late March 2017. Construction has commenced and fjrst homeowners are expected to move in during the second quarter of FY2019 Settlements • 321 settlements in FY2018 • 48 settlements at Shepparton, 40 at Lyndarum, 57 at Geelong, 26 at Offjcer, 125 at Berwick Waters and 25 at Bittern * Photograph above shows Suzi and Brendan, the Community Managers at Lifestyle Ocean Grove • Lyndarum and Offjcer have completely settled. Referrals provided 54% of 344 net sales and 321 settlements LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 11

2.2 Sales rates Sales profjle from date of fjrst sale • Lifestyle Communities has continued to evolve our pre-sales process. This reduces risk by Sales supporting a more aggressive construction Berwick Waters Bittern program to enable faster capital recycling Chelsea Heights Offjcer • Evolution in the sales launch process Casey Fields has provided improved early sales at Brookfjeld Berwick Waters, Bittern and Ocean Grove Geelong Lyndarum Hastings • Both Bittern and Ocean Grove were launched Seasons Ocean Grove in March 2017. Bittern has achieved 163 homes sold and awaiting settlement in FY2019 Warragul Shepparton • Ocean Grove has achieved 96 sales with settlements due to commence in the second quarter of FY2019. Month The higher the sales rate, the faster capital is recycled to undertake more communities LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 12