A Business for Purpose Results Presentation Year ended 30 June 2019 - PowerPoint PPT Presentation

A Business for Purpose Results Presentation Year ended 30 June 2019 14 August 2019

Appendix Contents 1. Overview 5 A.1 Model of living 24 2. Financial and operationls results 9 A.2 Growing recurring revenue 25 3. Outlook 19 A.3 Likely home settlement program 26 4. Summary 23 A.4 Dividend policy 27 A.5 Sales and Settlements 28 A.6 Investment Property Analysis 29 A.7 Investment Valuation Metrics 30 A.8 Deferred management fees 31 A.9 Cash fmow analysis FY19 32 A.10 Cash fmow analysis FY18 33 A.11 Fair value breakdown 34 This document should be read with the Disclaimer on page 35 Render of the Lifestyle Mount Duneed Clubhouse LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 2

Our Story 2004 2007 2012 2014 2016 2019 2003 Development of fjrst Listed on the Major capital raising 1,000th 2,000th homeowner Acquired 18th Founders James Kelly, community at Brookfjeld - Australian Stock of $36m homeowner moves in/ community site / Dael Perlov and First homeowner Exchange moves in 10th Community 3,000th homeowner Bruce Carter develop moved in June 2005 Clubhouse opens moves in business plan “It's been a consistent strategy of delivering an amazing lifestyle to our homeowners and sustainable returns to our shareholders.” Executive Team - Lifestyle Communities LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 3

A Business for Purpose Photo of Aqua Club, taken at Lifestyle Ocean Grove An afgordable housing option for 50% of An empowering and engaging customer Australians aged over 50 who have less service strategy that completely than $620,000 in total equity reimagines traditional retirement A sustainable fjnancial model which High quality resort style facilities provides an aspirational lifestyle that exceed expectation and are for our homeowners actively maintained and refurbished LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 4

Overview FY19 FY18 FY19 results snapshot Financial Summary ($ million) ($ million) Net profjt after tax attributable to shareholders $55.1 $52.7 Underlying net profjt after tax attributable to shareholders $41.1 $33.8 Total assets $463.5 $358.2 Equity $254.7 $204.6 Dividends (interim and fjnal) 5.5 cents per share 4.5 cents per share Net debt $95.0 $31.4 Net debt to net debt plus equity 27.1% 13.3% Growing annuity income streams Site Rental Fees Deferred Management Fees $26,000,000 $24,000,000 $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 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total number of homes 100 138 202 305 412 546 695 906 1,146 1,348 1,626 1,947 2,284 settled (Cumulative) Number of resales - - 4 11 8 11 10 23 34 52 73 59 53 attracting a DMF LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 5

Overview (cont.) FY19 Highlights • 337 new home settlements • 2,284 1 occupied home sites • 3,346 homeowners living in our communities • Portfolio of 3,563 2 homes and home sites • 53 resale settlements during the year 3 • Acquired new sites at Plumpton and Tyabb 4 and an additional 4ha at Wollert • Underlying profjt after tax attributable to shareholders increased to $41.1 million compared to $33.8 million in the prior year • Dividend of 5.5 cents per share fully franked (2.5 cents per share interim paid and 3.0 cents per share fjnal declared). A thoughtful and repeatable business model structured for sustainable growth Notes: 1. Represents gross numbers not adjusted for joint ventures 2. Settled, under development or subject to planning 3. Total resales were 71, of which 53 attracted a DMF Watch 'A day in the life of Bella at Lifestyle Lyndarum' http://bit.ly/2TqCBcm 4. Settlement of purchase subject to planning approval LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 6

Overview (cont.) Lifestyle Communities' portfolio continues to grow organically Portfolio snapshot—30 June 2019 through recycling capital Homes occupied or sold and awaiting settlement Total homes in Homes sold Homes sold and Communities communities and 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 development Shepparton 300 272 16 288 96% Geelong 164 163 1 164 100% Berwick Waters 216 209 3 212 98% Bittern 209 177 26 203 97% Ocean Grove 220 68 87 155 71% Mount Duneed 191 - 41 41 22% New Communities – Awaiting commencement Kaduna Park at Offjcer South 2 172 - 47 47 27% Wollert 2 246 - 18 18 7% Plumpton 2 265 - - 0 0% Tyabb 3 185 - - 0 0% Total Home Sites 4 3,563 2,284 239 2,523 71% Notes: 1. Represents 100% of the development of which Lifestyle Communities shares 50% 2. Commencement of construction subject to planning approval 3. Commencement of construction subject to planning approval and contract becoming unconditional. 4. Lifestyle Communities will have an economic interest in 3,363 home sites LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 7

Portfolio Overview and Land Acquisition Strategy 18 Communities in planning, development or under management Focus remains on Melbourne and Lifestyle undertakes a detailed vetting of each potential site, and Geelong’s growth corridors prioritises acquisitions based on the • Melbourne has the strategic benefjt of fmat following criteria topography which increases site choice • Land prices and location • Multiple communities can be built in each growth corridor • Population demographic • Forward planning has created large areas • Local amenities of serviced zoned land in each catchment • Public transport options Shepparton • Under its ‘just in time’ model, Lifestyle • Future development plans and competition starts the development as soon as possible after acquisition of the site Wollert North Lyndarum Plumpton Brookfjeld Offjcer Kaduna Park Seasons Berwick Waters Chelsea Heights Geelong Warragul Casey Fields Mount Duneed Hastings Ocean Grove Bittern Greatest growth opportunity Tyabb remains in Victoria with low saturation and accessible land LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 8

Section 2 Financial and operational results Render of the Lifestyle Mount Duneed Clubhouse 9

FY19 Sales and Settlements FY19 Highlights Community No. of homes Sold % Sold • Due to project phasing, the Company had limited new homes available for sale in Shepparton 300 288 96% the fjrst half. The Company commenced actively selling Kaduna Park and Wollert Geelong 164 164 100% during the second half Berwick Waters 1 216 212 98% • The Mount Duneed on-site sales suite opened in December 2018 Bittern 2 209 203 97% • The Kaduna Park and Wollert on-site sales suites opened in July 2019 Ocean Grove 220 155 71% Mount Duneed 191 41 22% Kaduna Park 172 47 27% Wollert 246 18 7% Notes: 1. Berwick Waters display homes have been retained for marketing of Kaduna Park 2. Bittern display homes have been retained for marketing of Tyabb Sales and settlements 500 400 300 200 100 0 2012 2013 2014 2015 2016 2017 2018 2019 Sales Settlements LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 10

Sales rates The higher the sales rate, the faster capital is recycled to undertake more communities Sales profjle from date of fjrst sale • Sales rates continue to be driven by 250 homeowner referral, brand awareness and sales team training • Market strategy focusing on the Berwick Waters driver for downsizing and bringing the Bittern decision forward 200 Ocean Grove Offjcer 150 Homes Pre-2015 historical average 100 50 Kaduna Park Mt Duneed Wollert 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Month LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 11

Sales Milestones and Customer Buying Triggers Typical sales profjle - Major sales milestones and customer buying triggers Sales Launch • Major customer event 250 • Local press marketing • Database engagement and EDM 200 Sales Suite opens onsite • First Impression! 150 • Typically construction activity on site 100 First frames go up • Houses taking shape on site 50 • Overcome fjrst major “buying hurdle” to wanting to see program 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Community opens - First Homeowners move in Months • Grand Opening Event • Local press and database engagement Sales rates increase as Community • Lived experience helps drives referral milestones are achieved Clubhouse opens • Clubhouse launch • Referral ramps up • Last major "buying hurdle" of seeing the clubhouse delivered LIFESTYLE COMMUNITIES LIMITED A BUSINESS FOR PURPOSE 12