Presentation Transcript

1. Investor PresentationMarch 2014
2. Cautionary Note Certain information in this presentation and oral answers to questions may contain forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material factors or assumptions were applied in drawing conclusions or making forecasts or projections as reflected in the forward-looking information. Additional information about the material factors and risks that could cause actual results to differ materially from the conclusions, forecasts or projections in the forward-looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information are disclosed in disclosure documents filed on SEDAR (www.sedar.com).
3. Business Overview Canada’s fifth largest operator of seniors housing / ~7,500 employees Assets ~$1 Billion Market capitalization: ~$447million 2013 Revenue - ~ $350million TSX: LW (36.2 million) TSX: LW.DB (convertible debentures)
4. Investment Highlights Sound Industry Fundamentals With Barriers To Entry Leading Market Position Strong Financial Position With An A- Bond Rating Management With Extensive Senior Care Experience Well-positioned For Organic And External Growth
5. Supply and Demand LTC Wait list in Ontario (Sept, 2013): Capacity - 77,500 LTC Beds; Wait List - 21,800 77,500 Provincial LTC Beds Ontario LTC Beds by Class
6. Demand for Seniors LivingHome Care, Retirement and LTC Favourable DemographicsCanadians over the age of 75 30% 27% 27% 70% 30% 73% 31% 30% 73% 70% 69% 70% Source: Statistics Canada
7. Occupancy and LTC Funding Rates History LTC Per Resident Day Funding Rates History Consistent High Occupancy Other Accommodation Rates History
8. Retirement Homes Active Living with Peace of Mind Private Pay – market driven rates for rent and services Regulated and licensed in Ontario by the Retirement Home Regulatory Authority Assisted Living and Independent Living – aging in place
9. Specialty Care Acquisition Proven retirement home platform and team Enhanced the team ~1,500 experienced employees Specialty Care assets acquired: 6 LTC homes 2 retirement residences 2 combined LTC / RR Excess land Management services business
10. StrongLeadership
11. Operating Focus High Quality Care and Services Staff focused on improving the lives of our residents Focus on continuous quality improvement All LTC homes have third party accreditation by CARF* Professional On-Site Administration Experienced management team on site Supported by experts in all areas of operations with common systems, tools, policies and education Asset Management Preventative maintenance program and annual capital plan by home Qualified environmental managers in all homes supported by asset management experts at head office Disciplined Cost Management Economies of Scale Centralized purchasing *Commission on Accreditation of Rehabilitation Facilities
12. Leisureworld Largest LTC Provider In The Province Top 5 Long Term Care Operators in Ontario Source: The Care Guide & Care Planning Partners Inc. (Jan. 2014)
13. Leisureworld LTC Portfolio Great locations Quality assets 61% are Class A 160 beds on average Total of 5,733 beds LTC generates 76% of 2013 NOI
14. RH Portfolio
15. Retirement Performance Retirement NOI Retirement Occupancy (%) ($ 000)
16. Retirement HomesPriorities Proven Retirement platform being implemented in all homes Assisted living services Sales and marketing program Enhance food, beverage and lifestyle choices Lease up of 5 RH is No. 1 priority
17. Growth in Home Care Funding provided by Ontario's CCACs Providing: Home care, education and training, relief staffing Nurses, personal support workers
18. Acquired Management Services Business Team with expertise Third party management Non-Owned Homes (External management contracts) Management Services Since 2004, Management Services provided to not for profit homes, small operators and developers Consulting Services
19. 2013 Financial Review Total Assets (C$ millions) EBITDA1 (C$ millions) $1.24 per share $1.25 per share $1.15 per share 1 EBITDA is defined as income from operations, before unusual items
20. 2013 Revenue and NOI Contribution NOI Contribution By Segment Revenue Contribution By Segment
21. Q42013FinancialReview
22. Leisureworld Debt Overview Pro Forma December 31st, the weighted average term to maturity is 5.7 years assuming the new debenture Pro Forma December 31st, the weighted average interest rate is 3.86% with the new debenture, representing a 67 bps decline
23. Financial Highlights Focused on growth and investing free cash flow in the business Redevelopment Reducing Debt Acquisition Targeting decline in level of indebtedness from 58%* to 50-52% on a gross book value basis * post refinancing of the bond 23
24. Business Overview Retirement Homes, Management Services And Home Care Long-Term Care GROWTHOPPORTUNITIES STABILITY 24
25. Growth Strategy Strengthening back office to support all four lines of business Organic growth with Retirement Lease up and efficiencies Planning for redevelopment when the time is right Tuck-in acquisitions, expanding geographic reach
26. Investment Highlights Sound Industry Fundamentals With Barriers To Entry Leading Market Position Strong Financial Position With An A- Bond Rating Management With Extensive Senior Care Experience Well-positioned For Organic And External Growth