Victory Offices Limited Annual General Meeting | 29 November 2019 - - PowerPoint PPT Presentation

Victory Offices Limited

Annual General Meeting | 29 November 2019

Contents

2

• 1. Introduction from Chairman

3

• 2. Presentation from CEO

5

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• 1. In

Introduction from Chairman

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Overview

▪ Successfully listed on ASX in June 2019 with capital used for growth ▪ Target of eight new locations in FY2020 will be exceeded ▪ Continue to pursue new locations with a disciplined approach ▪ Focused on maintaining premium service offering with premium amenities ▪ Well positioned to capitalise on the increasing trend to flexible workspace within the Australian market

• 2. Presentation from CEO

Overview – FY2019 Highlights

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• 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 FY2015 FY2016 FY2017 FY2018 FY2019 Number of locations 2 2 6 11 19 Locations opened 2

• 4

5 8

▪ Strong result in FY2019 in-line with recent Prospectus forecasts ▪ Net profit after tax up 67% to $9.6 million ▪ Operating revenue up 60% to $47.0 million ▪ Operating cash flows increased to $27.4 million ▪ Average total occupancy remains strong at 93% ▪ Eight locations opened in FY2019

Growing revenues from flexible workspace services

Total square metres 2,432 2,432 8,378 17,044 26,204

A solid year of growth in line with the recent Prospectus

Summary metrics FY2019 ($'million) FY2018 ($'million) Revenue from flexible workspace services $47.0 $29.4 Net profit after tax $9.6 $5.7 Operating cash flows $27.9 $18.9 Net assets $44.7 $6.9 Average total occupancy 93% 85%

New Locations (FY2020 openings)

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Continuing to secure high quality locations

State City Location Floor space (sqm) Expected

• pening

VIC Melbourne 180 St Kilda Road 2,952 Open (Aug-19) NSW North Sydney 100 Mount St 2,414 3QFY2020 QLD Fortitude Valley 900 Ann St 1,470 3QFY2020 NSW Sydney CBD 85 Castlereagh St 1,089 3QFY2020 VIC Cremorne 600 Church St 923 3QFY2020 NSW Sydney CBD 254 George St (Lounge) 232 3QFY2020 ACT Canberra 73 Northbourne Ave 1,020 3QFY2020 SA Adelaide CBD 11 Waymouth St 1,613 3QFY2020 NSW Sydney CBD 83 Castlereagh St 1,238 4QFY2020 QLD Brisbane CBD 275 George St 2,602 4QFY2020

▪ Ten locations secured and expected to open in FY2020,

• ne further location also expected (currently at HOA)

▪ 30 locations expected to be open by end FY2020 ▪ By end FY2020 will be second largest provider in Australia

Overview - Geographic Spread

▪ Victory Offices has 30 locations across Australia either open or scheduled to open in FY2020, with locations concentrated in Melbourne and Sydney as these are Australia’s two largest markets within Australia 8

Perth CBD 2 The Esplanade Fortitude Valley 900 Ann St(2) Brisbane CBD 175 Eagle St 275 George St(2) Sydney CBD 200 George St 85 Castlereagh St(2) 420 George St 254 George St (Lounge)(2) 300 Barangaroo Ave 83 Castlereagh St(2) 100 Mount St, North Sydney(2) Chadstone Chadstone Shopping Centre Chadstone Shopping Centre (Lounge) Box Hill 990 Whitehorse Rd 988 Whitehorse Rd Sunshine 12 Clarke St Dandenong 311 Lonsdale St Melbourne CBD 420 Collins St 35 Collins St 600 Bourke St 333 Collins St 727 Collins St 180 St Kilda Rd(1) 418 Collins St 416 Collins St (Lounge) 567 Collins St Notes: (1) 180 St Kilda Rd, Melbourne opened in August 2019 (2) New sites expected to open in 2HFY2020

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Diversified Australian portfolio

Cremorne 600 Church St(2) Canberra 73 Northbourne Ave(2) Adelaide 11 Waymouth St(2)

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Trading Update and Outlook

▪ 1QFY2020 revenue $12.2 million (pcp $8.9 million), 1QFY2020 EBITDA $7.7 million (pcp $5.4 million) (unaudited) ▪ Current overall occupancy 73% (impacted by a drop in occupancy at three VIC suburban sites – all expected to improve by Feb-20) ▪ Occupancy excluding the three locations currently 83% ▪ Eleven new locations (up on target of eight) will see 30 locations open by end of FY2020 (up from 19 at end FY2019) ▪ The growth in new locations will incur significant investment as well as growth in

• perating costs in the short-term

▪ VOL will now have an operational focus on existing locations and getting new locations up and running prior to further expansion ▪ Further update to be provided with the half- year results in February 2020

Important Notice and Disclaimer

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This presentation is issued by Victory Offices Limited, (“VOL, Victory Offices or Victory”) to provide summary information about Victory Offices Limited and its associated entities and their activities current as at the date of this document. The information contained in this document is of a general background nature and does not purport to be complete. It should be read in conjunction with VOL’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. This presentation has been prepared by VOL based on the information available. To the maximum extent permitted by law, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information,

• pinions or conclusions in this presentation and VOL, its directors, officers, employees, agents and advisers disclaim all liability and

responsibility (including for negligence) for any direct or indirect loss or damage which may be suffered by any recipient through use or reliance or anything contained in or omitted from this presentation. Past performance information contained in this presentation is given for illustrative purposes only and should not be relied upon (and is not) an indication of future performance. This presentation contains certain “forward looking statements” and prospective financial information. These forward looking statements and information are based on the beliefs of VOL’s management as well as assumptions made by and information currently available to VOL’s management, and speak only as of the date of this presentation. All statements other than statements of historical facts included in this presentation, including without limitation, statements regarding VOL’s forecasts, business strategy, synergies, plans and objectives, are forward looking statements. In addition, when used in this presentation, the words “forecast”, “estimate”, “expect”, “anticipated” and similar expressions are intended to identify forward looking statements. Such statements are subject to significant assumptions, risks and uncertainties, many of which are outside the control of VOL and are not reliably predictable, which could cause actual results to differ materially, in terms of quantum and timing, from those described herein. Readers are cautioned not to place undue reliance on forward looking statements and VOL assumes no obligation to update such information. The information in this presentation remains subject to change without notice. In receiving this presentation, you agree to the foregoing restrictions and limitations. All figures in this document are in Australian dollars (AUD) unless stated otherwise. This presentation is not for distribution or release in the United States or to, or for the account or benefit of, US persons.

WE MIND YOUR BUSINESS