INGENIA COMMUNITIES GROUP — AGM Information 2017

Nov 13, 2017

14 NOVEMBER 2017

==> picture [960 x 374] intentionally omitted <==

----- Start of picture text -----

Ingenia Lifestyle Latitude One, NSW
----- End of picture text -----

INGENIA COMMUNITIES GROUP 2017 Annual General Meeting

==> picture [960 x 37] intentionally omitted <==

Meeting outline

==> picture [960 x 440] intentionally omitted <==

2

Chairman’s welcome

==> picture [960 x 440] intentionally omitted <==

3

Ingenia Communities Group Board of Directors

==> picture [960 x 441] intentionally omitted <==

4

Jim Hazel, Chairman

==> picture [960 x 441] intentionally omitted <==

5

FY17 achievements

Expansion of Lifestyle and Holidays portfolio	Lifestyle and holiday communities portfolio growth – twelve assets acquired or contracted 
Capital initiatives	Successful capital raising to fund growth DRP in place Debt facility extended to $300 million   
Development contribution increased	Development underway in twelve communities Settlement of 211 new homes 
Strong financial results and increased return to investors	Distribution per security up 9.7% Earnings Before Interest and Tax (EBIT) up 32.6%  ~~~~

6

Solid base for growth established

35 LIFESTYLE AND HOLIDAY COMMUNITIES

31 RENTAL VILLAGES

$170 million acquisitions in past 12 months	$170 million acquisitions in past 12 months	$170 million acquisitions in past 12 months
Oct 16	Ingenia Holidays Hervey Bay, NSW
Oct 16	Ingenia Holidays Avina, NSW
Dec 16	Ingenia Lifestyle Latitude One, NSW
Jan 17	Ingenia Holidays Blueys Beach, NSW
Mar 17	Ingenia Holidays Cairns Coconut, QLD
May 17	Ingenia Holidays Bonny Hills, NSW
Jun 17	Ingenia Lifestyle Durack Gardens, QLD
Aug 17	Ingenia Lifestyle Eight Mile Plains, QLD
Aug 17	Ingenia Lifestyle Plantations, NSW
	KEY
		Recent acquisitions
		Ingenia Lifestyle and Holidays
		Ingenia Gardens

7

Simon Owen, CEO

==> picture [960 x 441] intentionally omitted <==

----- Start of picture text -----

Ingenia Lifestyle Latitude One, NSW
----- End of picture text -----

8

Business overview

Creating Australia’s best lifestyle and holiday communities

Ingenia has 66

Australian communities & growing

Portfolio value now $689

million

==> picture [131 x 125] intentionally omitted <==

----- Start of picture text -----

36
NSW
10
VIC
----- End of picture text -----

==> picture [45 x 45] intentionally omitted <==

----- Start of picture text -----

TAS [5]
----- End of picture text -----

9

A five year story Delivering growth with significant embedded value

==> picture [10 x 446] intentionally omitted <==

EBIT (Continuing Operations)

Income Generating Sites

==> picture [353 x 181] intentionally omitted <==

----- Start of picture text -----

35
30
32.1
25
20 24.2
15 18.1
10
12.1
5 8.9
0
FY13 FY14 FY15 FY16 FY17
$m
----- End of picture text -----

==> picture [350 x 177] intentionally omitted <==

----- Start of picture text -----

8,000
7,000
6,000 6,843
5,000
5,337
4,000
4,435
3,932
3,000
2,000
1,000 1,750
0
FY13 FY14 FY15 FY16 FY17
----- End of picture text -----

==> picture [871 x 8] intentionally omitted <==

New Home Settlements

Ingenia Gardens Occupancy (%)

==> picture [367 x 178] intentionally omitted <==

----- Start of picture text -----

250
200
211
150
100
107
50
5252
12
0 0
FY13 FY14 FY15 FY16 FY17
----- End of picture text -----

==> picture [350 x 175] intentionally omitted <==

----- Start of picture text -----

94.0
92.0
92.8
90.0
90.7 90.7
88.0
86.0
84.0 85.1
84.6
82.0
80.0
FY13 FY14 FY15 FY16 FY17
----- End of picture text -----

10

Scott Noble, CFO (Acting)

==> picture [960 x 440] intentionally omitted <==

11

Key financials Strong operating earnings and cashflow

KEY FINANCIAL METRICS	FY17	FY16	CHANGE	CHANGE
Revenue	$149.9m	$107.1m	40.0%		Revenuegrowth, reflecting strong performance from the core business and contribution from acquisitions
EBIT	$32.1m	$24.2m	32.6%		EBITabove guidance - result driven by significant sales
Statutory profit1	$26.4m	$24.3m	8.6%		momentum
Underlying profit – continuing operations2	$23.5m	$20.2m	16.3%
					Underlying EPSimpacted by May 17 capital raising – funds
Underlying profit EPS – continuing operations	13.0c	13.4c	(3.0%)		not fully deployed until August 17
Operating cashflow	$30.3m	$21.0m	44.3%		Strongoperating cashflowdriven by rental and tourism earnings and new home sales
Distribution per security	10.2c	9.3c	9.7%		Distributionof 10.2c – up 9.7% on FY16
Effective tax rate	7%	-	NM		Increase intax ratedriven by increased contribution from
					development

1. FY17 statutory profit includes $12.7 million fair value write-off of acquisition transaction costs (FY16: $5.5 million), loss on sale of Settlers $7.6 million.

2. Underlying profit is a non-IFRS measure designed to present, in the opinion of the Directors, the results from the ongoing operating activities of INA in a way that reflects underlying performance. Underlying profit excludes items such as unrealised fair gains/(losses), and adjustments arising from the effect of revaluing assets/liabilities (such as derivatives and investment properties). These items are required to be included in Statutory Profit in accordance with Australian Accounting Standards. Underlying profit has not been audited or reviewed by EY.

12

Capital management Well positioned to fund development pipeline

1. Pro forma, post acquisition of Ingenia Lifestyle Eight Mile Plains and Ingenia Lifestyle Plantations.

==> picture [364 x 198] intentionally omitted <==

----- Start of picture text -----

$175m
210
(58%)
180
$125m
150
(42%) 64
120
11
90 59
60
100
30 66
0
Feb-20 Feb-22
Drawn BG's Undrawn
Drawn BG’s Undrawn
----- End of picture text -----

13

Ingenia value levers Significant embedded opportunity within the portfolio to create superior value

==> picture [960 x 385] intentionally omitted <==

1. Includes some site conversions.

14

Embedded growth Ingenia Holidays Cairns Coconut offers significant opportunity

Acquired March 2017

• One of Australia’s leading holiday resorts

• Ingoing yield of >8%

Strong performance since acquisition

• Occupancy up 8% on prior year

• Average daily rate up 5% on prior year

Significant organic growth upside

• Approvals in place for 34 new cabins

• Targeted return on new capital invested of 18 – 20% (IRR)

• Four new villas installed ($138,000 each) – anticipated yield >24%

15

Investing in growth

Acceleration of new home settlements driving earnings growth

==> picture [457 x 381] intentionally omitted <==

FY17 settled 211 new homes (up 97% on FY16)

• Contributing to improved operating margin and yield at key development communities

Large metro and coastal projects support future sales and margin growth

• Metro and coastal projects offer higher margins and greater sales velocity

Three new projects now commenced – settlements forecast from March 18

• Latitude One, The Grange and Lake Conjola (NSW)

16

Sales update

Note: Includes First Choice Club deposits.

17

Investing in growth Market leading pipeline secured

Expect to launch ten new or expansion projects over two years

Pipeline supplements current ‘in market’ projects

==> picture [853 x 372] intentionally omitted <==

----- Start of picture text -----

600
550 Latitude One
(greenfields)
> $500500 Plantations Avina
(greenfields) (expansion)
450
400 Upper Coomera Nerang
> $375 (greenfields) (greenfields)
Chambers Pines
350 The Grange Bethania Blueys Beach (expansion)
(expansion)
(expansion) (expansion)
300
Lake Conjola
Hervey Bay
> $250250 (expansion) (greenfields) Approved Not Approved Development Size
>200 sites
200 100-200 sites
<100 sites
150
Sep-17 Dec-17 Apr-18 Jul-18 Oct-18 Feb-19 May-19 Aug-19 Dec-19 Mar-20
Target first settlement date
Forecast Home Sales Price ($'000s)
----- End of picture text -----

18

Ingenia Lifestyle Latitude One (NSW, Port Stephens) First greenfield project on track

• Greenfield development comprising 229 new homes (seeking increase to 270 sites)

• Settlement forecast to commence from April 2018

  • › 82% of homes released SOLD

• Civil infrastructure works on schedule

• › Average price > $450,000

• Additional 12.8 hectares acquired for longer term expansion (STCA)

19

Ingenia Lifestyle Chambers Pines, Brisbane

• Major expansion (256 homes) underway

• Additional land optioned for 120 new homes

• Will create one of the largest lifestyle

• communities in SE Queensland

20

Ingenia Lifestyle Bethania, Brisbane

• Adjacent land acquired at $25,500 per site

• DA now in place for additional 188 homes

21

Updated and expanded guidance

	FY18 Previous (Aug 17)	FY18 New	Comment	Growth on FY17
New home settlements	260 - 280	260 - 280	Strong contracts and deposits on hand but dependent on Q4 settlements at Latitude One, Lake Conjola and The Grange	>23%
Margin on new home settlements	~$110k	$115k +	Driven by rising home prices and build cost scale efficiencies	>18%
EBIT	$42 - 46 million	$45 - 47 million	Improvement driven by higher home sales margins, operating performance and increasing certainty on asset sale timing	>40%
EPS (underlying profit)	N/A	15.6 cents +	New guidance (FY17: 13.0 cents)	>20%

Note: Guidance is subject to no material change in market conditions.

22

Outlook: organic growth and capital recycling

==> picture [960 x 440] intentionally omitted <==

23

Thank you

==> picture [960 x 440] intentionally omitted <==

----- Start of picture text -----

Ingenia Holidays One Mile Beach, NSW
----- End of picture text -----

24

Disclaimer

This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) and Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingenia Communities Fund (ARSN 107 459 576) and Ingenia Communities Management Trust (ARSN 122 928 410) (together Ingenia Communities Group, INA or the Group). Information contained in this presentation is current as at 14 November 2017 unless otherwise stated.

This presentation is provided for information purposes only and has been prepared without taking account of any particular reader’s financial situation, objectives or needs. Nothing contained in this presentation constitutes investment, legal, tax or other advice. Accordingly, readers should, before acting on any information in this presentation, consider its appropriateness, having regard to their objectives, financial situation and needs, and seek the assistance of their financial or other licensed professional adviser before making any investment decision. This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, nor does it form the basis of any contract or commitment.

The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, the Group. In particular, they speak only as of the date of these materials, they assume the success of the Group’s business strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from forward looking statements and the assumptions on which those statements are based. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements.

The Group, or persons associated with it, may have an interest in the securities mentioned in this presentation, and may earn fees as a result of transactions described in this presentation or transactions in securities in INA.

This document is not an offer to sell or a solicitation of an offer to subscribe or purchase or a recommendation of any securities.

Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this presentation. By reading this presentation and to the extent permitted by law, the reader releases each entity in the Group and its affiliates, and any of their respective directors, officers, employees, representatives or advisers from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising in relation to any reader relying on anything contained in or omitted from this presentation.

25