Oceania Healthcare (OCA) investor relations material

Executive summary

• Achieved record sales volumes in FY26, up 16% to 603 units, and record underlying EBITDA up 20.2% to $97.7 million, driven by operational improvements and portfolio repositioning despite subdued residential property conditions.

• Net debt reduced by over $121 million to $506.7 million, lowering gearing to 30.1%, at the lower end of the 30%-35% target range.

• Free cash flow from operations outflow improved by 64% to $15 million, with a positive trajectory targeted for FY27.

• No final dividend declared for FY26; resumption targeted for FY27 when positive free cash flow is achieved.

• Portfolio rebalanced through divestment of seven sites, generating $51.1 million in proceeds and improving portfolio quality.

Financial highlights

• Pro forma underlying EBITDA increased 20% year-over-year to $97.7 million, with underlying NPAT rising to $59.4 million.

• Free cash flow from operations outflow reduced by 64% to $15 million, and net tangible assets per share increased 7.3% to $1.62.

• Net debt reduced by $121 million to $506.7 million, with gearing at 30.1%.

• Record 201 settlements achieved, with average pricing up 9% and development margin at 29.9%.

• Statutory NPAT was $0.1 million, down from $30.4 million due to lower property revaluations and closure of the Wesley Institute.

Outlook and guidance

• FY27 priorities include achieving positive free cash flow from operations, resuming dividends at 40%-60% of operating free cash flow, and delivering 81 new units across three sites.

• Long-term ambition to lead sector in care quality, grow recurring cash flow, and steadily build development capabilities, with a development pipeline targeting 150 units per annum by FY31.

• Strategic focus on operational efficiency, margin improvement, and maintaining gearing levels.