INGENIA COMMUNITIES GROUP — Investor Presentation 2016

Sep 19, 2016

Presented by Simon Owen 20 September 2016

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Ingenia Lifestyle South West Rocks
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INGENIA COMMUNITIES GROUP

ASX CEO SESSIONS

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Business Overview

Creating Australia’s best lifestyle communities

Ingenia has

Over 5,000 Residents

4,000 Occupied permanent homes

Annual revenue >$100 million $ Stable rent base - $1 million/pw

Over 2,100 new home sites secured

29 LIFESTYLE & HOLIDAY PARKS

31 RENTAL VILLAGES

Portfolio now $550

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million
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8 DMF VILLAGES
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68 AustralianCommunities & growing

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35
NSW
10
VIC
TAS [5]
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Strategy

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Ingenia Holidays Broulee, NSW
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Strategy Underpinned by Significant Opportunity Rapidly ageing population with limited assets outside of family home

Australia's Over 50's Population Projections

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39% 18m
38% 16m
37% 14m
36% 12m
35% 10m
34% 8m
33% 6m
32% 4m
31% 2m
30% 0m
2016 2021 2026 2031 2036 2041 2046 2051
Population Percentage of Population
Source: ABS.
No. Persons
Portion of Population
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Superannuation account balances (by age group)

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100%
6%
14% 13% 4%
90% 22% 24% 20%
7% 10%
80% 14%
70% 14% 10% 10% 15%
60% 19%
50% 34%
54% 43%
40% 81%
66%
30%
51%
20%
32%
10% 17% 22% Super balance
0% <$100k
50-54 years 55-59 years 60-64 years 65-69 years 70-74 years 75 years +
Nil $1-99k $100-199k $200k+
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Source: ASFA Research and Resource Centre.

• The 2011 Census indicated that 77% of single people over 65 rely on Commonwealth pension as their primary source of income

• The maximum pension is $437 per week which is insufficient to fund a comfortable retirement

• Australia’s growing pool of retirees is living longer – for people aged 65–69 some 70% have <$100k in accumulated superannuation

• For many retirees, the sole source of accumulated wealth is ownership of the family home – releasing equity whilst retaining Government payments is increasingly attractive

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Business Model: Land Lease Rental

• Resident owns the above ground structure

• Resident pays a weekly ground lease rent to reside on the home site

• Upon departure, resident can on-sell the home or remove it from site

• Ingenia owns the freehold land

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Why Land Lease Communities?

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Ingenia Lifestyle Lara, VIC
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Convergence of Ageing Population and Housing Affordability Crisis Creates Opportunity

Australian house price index versus wage price index

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400
350 House Price Index Wage price index
300
250 CAGR 7.89%
200
150
100
CAGR 3.41%
50
0
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Property ownership without a mortgage (by age group)

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100%
80%
60%
40%
20%
0%
55–64 65–74 75 and
over
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Source: Colliers Edge and ABS (as at June 2015), INA Analysis.

Source: ABS.

As house prices rise, affordability is decreasing

The rate of wage (and pension) growth has been far outstripped by growth in house prices

For many retirees home ownership is the sole source of wealth accumulation

Releasing equity to fund a comfortable retirement while retaining access to the pension and receiving rent assistance is attractive to many seniors

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Low Penetration in Australia Model well established in US

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UNITED STATES

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>6% of population live in a lifestyle community

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• Resident population a mix of individuals, families and retirees

• Homes commonly purchased on credit

Lifestyle communities have significant scale and recognition

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AUSTRALIA

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<1% of population live in a lifestyle community

• Resident population predominantly retirees

• Cash buyers only – no credit available

Lifestyle communities a small portion of housing stock and (presently) have low penetration

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Lifestyle and Holiday Communities: The Evolution

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• Established in the 1950’s to accommodate families and couples on holidays

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• ˃ Caravan parks began to offer increasing mix of temporary caravan sites and permanent manufactured home sites

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• ˃ Today, lifestyle communities primarily built for permanent manufactured home sites

• ˃ Affordable yet better quality manufactured homes

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Efficient Development Process

Flexible home designs

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Quality Homes with Flexible Floor Plans

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Business Update: Acquisitions

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Ingenia Lifestyle Bethania, QLD
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Acquisitions

Building scale in key metro and coastal locations

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Avina
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The Gables
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Avina Van Village, Greater Sydney ($33 million)

• Existing 180 site lifestyle and tourism park with vacant land for ~150 homes (STA)

• Due to settle October 2016

• Last family owned institutional-grade caravan park in Sydney

• Extends development pipeline in a key growth corridor with potential for strong sales velocity and development margins

• Three-year option over additional land capable of developing further 95 homes

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The Hills of Carmel
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Acquisitions Building scale in key metro and coastal locations

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Happy Wanderer, Fraser Coast ($9.5 million)

• Establishes a new cluster in the popular retiree market of Hervey Bay, Queensland

• Adds 149 additional permanent and tourism sites in a prime coastal location

• Under contract – due to settle October 2016

Ocean Lake Caravan Park, NSW ($9.2 million)

• Existing 254 site lifestyle and tourist park in NSW South Coast cluster

• Permanents and annuals represent over 50% of revenue

• Settled 3 August 2016

• Immediate earnings accretion at an attractive yield with significant reconfiguration opportunities and potential for future permanent conversions

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Acquisitions Building scale in key metro and coastal locations

‘Latitude One’, Port Stephens, NSW ($7.0m)

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Soldiers Point
Latitude One
One Mile Beach
Newcastle
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Cessnock
The Grange &
Lake Macquarie
Chain Valley Bay &
Lake Macquarie
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• DA approved site within a 5 minute drive of Anna Bay shops and Birubi Beach, within existing Hunter – Newcastle cluster

• DA approved greenfield site for 229 lot land lease community

• Under contract – due diligence well progressed

• Vendor retains minority interest in longer term operations

• Extends development pipeline in key Newcastle retiree market

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Nearby Birubi Beach Surf Club and Café
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Recent Performance

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FY16 Highlights

FY16 Highlights	FY16 Highlights	FY16 Highlights	FY16 Highlights
STRATEGY Ingenia now owns 27 Lifestyle Communities with six under contract or option Over 2,100 development sites secured (83% in metro and coastal locations) Quality deal flow (metro and coastal) in place ~~~~
FINANCIAL Operating cashflows strong at $21.0 million –up 133% on FY15 Underlying Profit from continuing operations $20.2 million–up 20% on FY15 Distribution per security 9.3 cents -up 15% on FY15 Successful equity raising of $68.5 million  ~~~~ 
OPERATIONS Rapid increase in Lifestyle Communities rental revenue –up Sales momentum building with 107 new home settlements – High occupancy across Garden Villages – 90.7%  ~~~~	up		67% on FY15 up 106% on FY15
DEVELOPMENT Development now underway in 13 communities Investment in development pipeline and platform delivering growing returns 

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Sales Platform Delivering Results Progress of development strategy

• Focus on large-scale, multi-year development projects in quality metro and coastal markets which can deliver increased sales velocity and attractive margins

• Supplemented by expansion and conversion of existing and targeted lifestyle and tourism parks

0 20 40 60 80 100 120 140 160	12 52 107 150+ FY14 FY16 FY17 (Forecast) FY15
		Existing Large Scale Projects
		1. Lara – Outer Melbourne	161 sites
		2. Bethania – Brisbane	194 sites
		3. Chambers Pines – Brisbane	256 sites
		4. Stoney Creek – Sydney	78 sites
		5. Conjola – NSW South Coast	135 sites
		Under Contract / Option
		6. Avina Van Village – Sydney	250 sites
		7. Upper Coomera – Bris/Gold Coast	180 sites
		8. Latitude One – NSW Coast	229 sites

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Outlook

• Continue to improve performance of existing assets including incremental revenue growth

• Complete DMF divestment and recycle capital into accretive acquisition and development opportunities

• Achieve 150+ settlements in FY17 and position for further growth over medium term

• Continue to build quality development pipeline in key metro and coastal locations

• Maintain distribution growth in line with improving Group outlook

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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 20 September 2016 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 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.

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

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