Financial Results for the Year Ended 31 December 2017

Summerset Group Holdings Limited
Level 27 Majestic Centre, 100 Willis St, Wellington
PO Box 5187, Wellington 6140
Phone: 04 894 7320 | Fax: 04 894 7319
Website: www.summerset.co.nz

NZX & ASX RELEASE

23 FEBRUARY 2018

SUMMERSET ACHIEVES A 54% GROWTH IN PROFIT



 Net profit after tax of NZ$223.4 million, up 54% on FY16
 Underlying profit for FY17 of NZ$81.7 million, up 44% on FY16
 Total assets of NZ$2.2 billion, up 30% on FY16
 682 total sales of occupation rights, up 4% on FY16
 450 new retirement units delivered, up 10% on FY16
 Land bank total of 2,841 retirement units and 396 care beds
 Final dividend of NZ 7.1 cents per share
 Development margin of 27.3%, up from 22.2% for FY16

Retirement village operator Summerset Group Holdings Limited has announced net profit after
tax for the year ending 31 December 2017 of $223.4 million, an increase of 54% on the same
period last year.

Summerset’s underlying profit, which excludes unrealised valuation gains on the fair value of
investment property, was $81.7 million for the year ending 31 December 2017, up 44% on the
previous year. Annual growth in underlying profit has averaged 47% in the six years since listing
in November 2011.

Summerset’s total asset value increased by 30% to NZ$2.2 billion. The development margin on
new retirement units also increased to 27.3%, up from 22.2% for FY16.

Summerset CEO Julian Cook said the company’s profit growth has been driven by strong
demand for homes, the continued benefits of in-house construction of new villages and the well-
run operation of existing villages. “We saw good demand for our homes across the country
throughout 2017, including in Auckland. This is despite the slowing Auckland property market,
which reflects the demographic we serve.”

“An exciting milestone for us in 2017 was celebrating the 20
th
anniversary of Summerset’s first
village in Wanganui. We’ve come a long way since opening that village. Last year we welcomed
500 new residents and 200 staff to the Summerset family. At the end of 2017, we had more than
4,700 residents living at our 23 villages and more than 1,200 staff,” he said.

Other key achievements for the company in 2017 were:

 Purchasing two new development sites in Avonhead, Christchurch and Wellington’s
Kenepuru, bringing the total number of sites to 29
 Opening the main building at Summerset Heritage Park in Ellerslie
 Receiving the New Zealand Aged Care Association’s Best Built Environment award for
the innovative Levin memory care centre

 Achieving a village resident satisfaction score of 97%, (up from 94% in 2016) and a care
resident satisfaction result of 97%, (up from 94% in 2016)
 Improving staff wellbeing with a range of employee benefits, including day to day health
insurance and funeral cover
 Achieving employee engagement results in Aon Hewitt’s Australia and New Zealand top
quartile
 Launching a new brand and website to better reflect Summerset’s purpose of bringing
the best of life to its residents
 Issuing the first retail bonds in the retirement and aged care sector
 Delivering 58 new care beds, (total number of care beds across villages is 806)
Mr Cook said Summerset was delighted to receive the Aged Care Association Built Environment
Award for its Levin memory care centre. “We’re particularly proud of this innovative model of
dementia care as we are the first in New Zealand to offer one bedroom apartment style living for
people with dementia. We’ll be incorporating memory care in all our new villages.”

The staff benefits package introduced during the year includes the following:
 Health insurance covering everyday health care costs such as GPs, dentist, and physios
 Funeral cover – $10,000 for every permanent employee or their spouse
 Long service leave – after five years’ service with Summerset
 Continuation of the share plan for all staff
 Buyers’ group trade discounts and Summerset supplier discounts from a range of
companies

“Our staff are at the heart of our business and it is important that we value them appropriately,”
said Mr Cook. “These benefits are a further boost to the 1 July 2017 government funded pay
increase for caregivers, diversional and occupational therapists.”
Summerset also completed a rebranding in the latter half of 2017. Mr Cook said, “We asked our
residents and their families what makes Summerset stand out from its competitors and how we
could realign our brand to better reflect our purpose of bringing the best of life, and show that our
residents are at the heart of everything we do.”

Looking ahead, Mr Cook said Summerset’s focus in 2018 will be to continue delivering high
quality retirement village living to residents whether they are living independently, needing a little
extra assistance in a serviced apartment, or care centre.

Summerset announced a final 2017 dividend of NZ 7.1 cents per share, a total dividend payment
of NZ 11 cents per share for the year. This is an increase of NZ 3.3 cents per share on the total
dividend paid for the previous year. The dividend reinvestment plan will apply to the dividend,
with a discount of 2% applicable to those shareholders participating in the plan.

ENDS

For investor relations enquiries: For media enquiries:
Scott Scoullar Michelle Brooker
Chief Financial Officer Senior Communications Advisor
scott.scoullar@summerset.co.nz michelle.brooker@summerset.co.nz
04 894 7320 or 029 894 7317 04 830 1106 or 021 225 9624

ABOUT SUMMERSET
 Summerset is one of the leading operators and developers of retirement villages in New
Zealand, with 23 villages completed or in development across the country. In addition,
Summerset has six sites for development in Avonhead (Christchurch), Richmond (Nelson),
Kenepuru (Wellington), Lower Hutt (Wellington), St Johns (Auckland) and Parnell
(Auckland), bringing the total number of sites to 29.
 It provides a range of living options and care services to more than 4,700 residents.
 Four-time winner of Retirement Village of the Year and Silver Award winner in the Reader’s
Digest Quality Service Awards 2017.
 The Summerset Group has villages in Aotea, Casebrook, Dunedin, Ellerslie, Hamilton,
Hastings, Havelock North, Hobsonville, Karaka, Katikati, Levin, Manukau, Napier, Nelson,
New Plymouth, Palmerston North, Paraparaumu, Rototuna, Taupo, Trentham, Wanganui,
Warkworth and Wigram.

---

Full year results
presentation
Year e nded 31 December 2017
Summerset Group H oldings Limited
23 February 2018

Agenda
1
2
3
5
4
FY17 result highlights
Business overview
Financial results
Final dividend
Appendix
FY17 results presentation
2

FY17 result
highlights

FY17 result highlights
Another record full year profit for Summerset
FY17 results presentation
4
* Underlying profit differs from NZ IFRS reported profit after tax. The measure has been audited by Ernst & Young. Refer to the appendix for a reconciliation between the two measures, and note 2 of the financial
statements for detail on the components of underlying profit
FY17FY16YOY c hangeFY15
Fina
nc
ia
l
(N
Z$
m)
Net profit before tax (IFRS)223.7145.654%82.8
Net profit after tax (IFRS)223.4145.554%84.2
Underlying profit*81.756.644%37.8
Total assets2,2161,70730%1,364
Net operating cash flow207.7192.68%140.3
Ope
ra
tional
New sales of occupation rights382414-8%333
Resales of occupation rights30024423%245
Total sales of occupation rights6826584%578
New retirement units delivered45040910%303

FY17 result highlights
FY17 results presentation
5
Record full year profit for Summerset
FY17 net profit after tax ( NZ I FRS) o f $223.4m, up 54% on FY16
FY17 underlying p rofit of $81.7m, up 44% on FY16 –record full year p rofit
Tracked ahead of our $77.0m to $79.0m guidance with b etter than expected
resale settlements, stronger t han expected margins on both new and resale
settlements, a nd positive y ear-end valuation impacts relating t o retail bonds
382 new sales with delivery of 171 retirement u nits in 1H17 and 279
retirement u nits in 2H17 for a total of 450 new retirement units in FY17
Record development margin of 27.3%, up from 22.2% in FY16
300 resales, a full year r ecord, up from 244 in FY16
Resale gain of 21.7%, up from 18.6% in FY16
Final dividend of 7.1 cents per share declared, amounting to $15.9m
Total dividends for the 2017 year (interim a nd final) of 11.0 cents per share,
amounting to $24.6m
Operating cash flow of $207.7m, and gearing r atio down to 30.7%
Total assets now over $ 2.2b, up 30% on FY16

FY17 result highlights
Strong trends continue across the business
FY17 results presentation
6
450
409
303
261
209
0
100
200
300
400
500
FY17FY16FY15FY14FY13
Retirement unit delivery
382
414
333
286
228
300
244
245
172
174
0
200
400
600
800
FY17FY16FY15FY14FY13
Occupation right sales
New sales o f o ccupation ri ghtsResales o f o ccupation ri ghts
$81.7m
$56.6m
$37.8m
$24.4m
$22.2m
$0m
$20m
$40m
$60m
$80m
$100m
FY17FY16FY15FY14FY13
Underlying profit
$2,216m
$1,707m
$1,364m
$1,043m
$845m
$0m
$500m
$1,000m
$1,500m
$2,000m
$2,500m
FY17FY16FY15FY14FY13
Total assets

Business
overview

Summerset snapshot
FY17 results presentation
8
Second largest retirement village developer in New Zealand
20 years o f consistent delivery and growth
Listed on the NZX i n 2011, and the ASX i n 2013
Balance sheet growth of 259% since listing
3,278 retirement u nits (villas, apartments, serviced apartments and memory
care apartments) a nd 806 care beds
More than 4,700 residents
23 operating villages completed or under development
Six g reenfield sites at Avonhead, Kenepuru, Lower Hutt, P arnell, Richmond,
and St Johns
Land bank of 2,841 retirement units as at 31 December 2017
Four-time w inner o f Best Retirement Village O perator at the Australasian O ver
50s Housing Awards
Received a Highly C ommended in the Reader’s Digest Trusted Brands Survey
three years r unning, from 2015-2017

FY17 review
FY17 results presentation
9
450 retirement units delivered, record underlying profit of $81.7m
Celebrated our 20
th
anniversary year
Completed the Ellerslie m ain building and delivered f inal retirement u nits in Hamilton and
New Plymouth
Received the New Zealand Aged Care Association’s B est Built Environment award for the
innovative Levin memory care centre
Construction and earthworks underway o n Casebrook and Rototuna villages, with f irst
retirement u nit delivery expected in FY18
Successfully raised $100.0m of retail bonds to provide further funding diversification and
tenor
Total debt facilities l ifted from $450.0m to $600.0m (inclusive of retail bonds)
Undrawn bank facility capacity o f $252.2m at 31 December 2017
Announced new land acquisitions in Avonhead (Christchurch), Kenepuru(Wellington),
and additional land in Casebrook (Christchurch)
Summerset finance team awarded Finance Team of the Year award at the 2017 CFO
Awards
Underlying profit differs from NZ IFRS reported profit after tax. The measure has been audited by Ernst & Young. Refer to the appendix for a
reconciliation between the two measures, and note 2of the financial statements for detail on the components of underlying profit

Summerset strategy
FY17 results presentation
10
Summerset builds, owns and operates
retirement villages across New Zealand
Focus on continuum of care model
High quality c are and facilities across a ll villages
Villages d esigned to integrate i nto local communities
Internal development and construction m odel
Nationwide brand offering
Customer centric philosophy –bringing t he best of life
Investigation of expansion into Australia c ontinuing with GM Development
transferring to lead this

Operations and staff
FY17 results presentation
11
Focus on staff initiatives and systems and process improvements
97% care customer satisfaction r ating a nd 97% village c ustomer satisfaction r ating
Focused on food offering to residents –introducing new providers i n FY18
New Summerset brand established, quarterly magazine and website c ompleted, positive
feedback from residents a nd prospects
Strong certification audit results c ontinue with t en care centres achieving t hree years’, and
four care centres awarded the maximum four years’ certification
Strengthened staff engagement; results n ow in top quarter for Australia and New Zealand
(AON H ewitt)
Second year of the all staff share scheme with 8 3% of our employees signing u p. New staff
benefits scheme launched, includes health insurance and funeral cover. New staff uniforms
to be introduced in FY18
Pay equity d ecision, largely funded by Government, i s a positive o utcome for our caregivers
Continuing to invest i n Health and Safety systems –implemented a risk management
framework a cross the company and achieved ACC accredited employer status
Successfully implemented new asset management system a cross all villages
Rollout of VCarecustomer management system u nderway f or village o perations. Care
operations to commence in FY18 -will i nclude iPad interface for all care staff

FY17 results presentation
12

FY17 results presentation
13
Ellerslie
Ellerslie
Hobsonville
Hobsonville
Ellerslie
Nelson
Casebrook

FY17 development activity
FY17 results presentation
14
Delivery of 450 retirement units in FY17 across nine sites
450 retirement units delivered across nine villages –171 in 1H17 and 279 in 2H17
Completed main buildings and serviced apartment modules in Ellerslie, H amilton, Karaka, and New Plymouth
Hamilton and New Plymouth villages fully c ompleted
Construction and earthworks underway o n Casebrook and Rototuna villages
Unit delivery FY17VillasApartmentsServiced apartments
Total
retirement units
Total
care beds
Ellerslie22235710258
Hamilton14-3044-
Hobsonville8241143-
Karaka33-3972-
Katikati41--41-
New Plymouth32-2052-
Trentham33--33-
Warkworth25--25-
Wigram38--38-
Total2464715745058

FY17 development activity
FY17 results presentation
15
Delivery of 450 retirement units in FY17 across nine sites
Ellerslie
Wigram
Trentham
New Plymouth
Karaka

FY17 development activity
FY17 results presentation
16
Delivery of 450 retirement units in FY17 across nine sites
Hobsonville
HamiltonKatikati
Warkworth

Future development
FY17 results presentation
17
Land bank of 2,841 retirement units and 396 care beds
Land bank of 2,841 retirement units spread across brownfield and greenfield sites
Targeting d elivery of around 450 retirement units in FY18. Land bank provides around six y ears o f supply at FY18 build rate
* Land bank reflects current intentions as at December 2017
Land bank -as at 31 December 2017*
VillageVillasApartments
Serviced & memory
care apartments
Total
retirement units
Total
care beds
Avonhead156129826643
Casebrook260127634843
Ellerslie8196-204-
Hobsonville1036418752
Karaka71--71-
Katikati38--38-
Kenepuru1009310629943
Lower Hutt42964318149
Parnell-2647634048
Richmond234-7631043
Rototuna187-7626343
St Johns-2367631232
Trentham--2020-
Warkworth54--54-
Wigram48--48-
Total1,2089456882,841396

Development margin
FY17 results presentation
18
Record development margin of 27.3% with a realised margin of $51.0m
Record development margin achieved in FY17 w ith strong m argins
across all villages that settled new retirement units within t he year
Realised development margin of $51.0m, up 31% from $39.0m in
FY16
Development margin of 27.3% in FY17, t his is up from 22.2% in
FY16
Benefits of in-house design and construction t eams continue to be
realised
Continuing to see good development margins coming out of our
regional villages with the average m argin across o ur non-Auckland
sites being around 28% for the year
Sales of new occupation rights were predominately in regional New
Zealand with 39% in our Auckland region villages and 61% across
the rest of our developing villages
$6.9m
$10.5m
$16.7m
$26.1m
$39.0m
$51.0m
12.0%
13.2%
15.7%
20.0%
22.2%
27.3%
0%
5%
10%
15%
20%
25%
30%
$0m
$10m
$20m
$30m
$40m
$50m
$60m
FY12FY13FY14FY15FY16FY17
Realised development margin -full year margins
Realised d evelopment margin ($m)Development margin (%)

New sales of occupation rights
FY17 results presentation
19
New sales gross proceeds of $186.4macross 382 settlements
New sales gross p roceeds of $186.4m in FY17
New sales of occupation rights slightly down versus F Y16:
Villas: 2 35, down 20% on FY16
Apartments: 2 9, up 93% on FY16
Serviced a partments: 111, up 7% on FY16
Memory c are apartments: 7 , up 250% on FY16
Lower new sales driven by timing differences. Compared
to FY16 we opened with five less units in stock a nd we
delivered 60 more units in the second half leaving l ess
time to settle units
Comfortable with h ow sales tracked, c ontinue to see
strong d emand with good waitlist numbers, presales are
tracking well, a nd days to settle i mproved through the year
Although there was a higher proportion of serviced and
memory care apartments in FY17, t he average gross
proceeds per new sale settlement achieved of $488k was
up on FY16 ($424k) and FY15 ($393k)
New salesFY17FY16YOY changeFY15
Gross proceeds ($m)186.4175.66%131.0
Villas235293-20%279
Apartments291593%5
Serviced apartments1111047%49
Memory care apartments72250%0
Total occupation rights382414-8%333
141
162
190
219
171
279
160
173
183
231
179
203
0
50
100
150
200
250
300
0
50
100
150
200
250
300
1H152H151H162H161H172H17
New sales and r etirement unit delivery
Retirement unit deliveryNew sale s ettlements

New sales stock up but still historically low on a relative basis
Uncontracted new sales stock o f 145 retirement u nits at FY17, u p from 67 at FY16. Uplift driven by deliveries being weighted to the second
half (up 27% on FY16) a nd a large number of serviced apartment deliveries i n the second half. On average, t he uncontracted villa a nd
apartment new sales stock have only been available to settle for two months
Serviced a partments, a needs based product, make up the majority o f new sales stock w ith 95 deliveries in the second half of the year
Historically still a low level of new sales stock w ith uncontracted new sales stock making up 4.4% of our total retirement u nit portfolio, this
compares to over 6% four years a go
New sales stock
FY17 results presentation
20
* Uncontracted new sales stock as a proportion of the total retirement unit portfolio at balance date
New sales stockFY17FY16FY15
Contracted596960
Uncontracted1456781
Total new sales stock204136141
Contracted264452
Uncontracted411262
Villas6756114
Contracted500
Uncontracted1413
Apartments1913
Contracted28258
Uncontracted905416
Serviced & memory care apartments1187924
6.4%
7.1%
6.7%
4.1%
3.9%
3.3%
2.8%
2.4%
2.2%
4.4%
0%
1%
2%
3%
4%
5%
6%
7%
8%
1H132H131H142H141H152H151H162H161H172H17
Available new sales stock*

Resales of 300 occupation rights in FY17
Resale of 300 occupation rights i n FY17, an increase of 23%
on FY16
Gross proceeds of $114.9m, up 38% on FY16
Realised resale gain of 21.7%
Embedded value up to $152k per retirement u nit, as at 31
December 2017, up from $114k as at 31 December 2016
Embedded resale gain of $100k per retirement u nit, up from
$70k as at 31 December 2016
Resales of occupation rights
FY17 results presentation
21
ResalesFY17FY16YOY changeFY15
Gross proceeds ($m)114.983.138%77.0
Realised resale gains ($m)24.915.462%12.3
Realised resale gains (%)21.7%18.6%17%16.0%
DMF realisation ($m)13.810.335%9.4
Villas17214221%139
Apartments46445%63
Serviced apartments825841%43
Memory care apartments00N/A0
Total occupation rights30024423%245
$105m
$133m
$159m
$199m
$274m
$327m
$87m
$97m
$109m
$124m
$145m
$170m
$0m
$100m
$200m
$300m
$400m
$500m
$600m
1H152H151H162H161H172H17
Embedded value
Resales g ain ($m)DMF ($m)
110
135
123
121
144
156
16.6%
15.6%
19.8%
17.3%
20.2%
23.0%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
1H152H151H162H161H172H17
Realised resale gain and volume
Resale s ettlementsRealised resale g ains (%)

Resales stock levels continue to sit at record lows
Resales stock r emains low with 63 retirement u nits under contract and 47 retirement u nits uncontracted at FY17
Resales stock i s up on FY16, we experienced a historically high number of terminations over the second half of the year –provides good
opening inventory levels to sell down in FY18. We continue to see good demand for resale units across a ll villages
As a proportion of our total retirement unit stock, u ncontracted resales stock makes up 1.4%
Resales stock
FY17 results presentation
22
* Uncontracted resales stock as a proportion of the total retirement unit portfolio at balance date
Resales stockFY17FY16FY15
Contracted635647
Uncontracted472936
Total resales stock1108583
Contracted372934
Uncontracted241713
Villas614647
Contracted995
Uncontracted547
Apartments141312
Contracted17188
Uncontracted18816
Serviced & memory care apartments352624
1.8%
1.3%
1.6%
1.2%
1.1%
1.5%
1.0%
1.0%
1.2%
1.4%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
1H132H131H142H141H152H151H162H161H172H17
Available resales stock*

Financial results

FY17 reported profit (IFRS)
Net profit after tax up 54% versus FY16
FY17 results presentation
24
Record NPAT of $223.4m, up $78.0m or 54% relative t o FY16
NPAT has seen an annual compounded increase of 93% since we
listed in 2011
Strong growth in investment p roperty f air value movements with
$218.0m for FY17 –refer to next slide for further details
FY17 expenses are driven from a mix of growth in developing
villages, some additional operating costs i n existing villages a nd
project-related costs as we enhance systems and processes
Net finance costs o f $11.5m are up 27% relative to FY16 due to
higher gross d ebt balance, re-financing of banking facilities, a nd
issuance of retail b ond facility
NZ$mFY17FY16
YOY
change
FY15
Total revenue110.586.128%68.8
Reversal of impairment
on land & buildings
0.0-N/A-
Fair value movement of
investment property
218.0143.552%83.5
Total income328.5229.543%152.2
Total expenses93.274.825%61.1
Net finance costs11.59.127%8.4
Net profit before tax223.7145.654%82.8
Tax expense / (credit)0.30.284%(1.5)
Net profit after tax223.4145.554%84.2

Fair value movement
$218m fair value movement of investment property
FY17 results presentation
25
Fair value movement of $218.0m for FY17, u p 52% on FY16
Fair value movement has been driven b y:
Retirement unit pricing ( $99.7m): strong retirement u nit
price inflation on existing retirement units within t he
portfolio resulting i n uplift in operators interest
Value of new investment p roperty b uilt ($86.2m): operator’s
interest o n new retirement units delivered in FY17
Development margin ($51.0m): realised development
margin on new retirement u nits sold in FY17
Discount rates ($5.6m) and growth r ates ($2.3m): c hange
in assumptions used by valuer
Other movements ($22.1m): changes in resident recycling
profiles, and all other valuation assumptions
Refer to the appendices (slide 4 3) for key a ssumptions
associated with the investment p roperty v aluation
$218.0m
$86.2m
$51.0m
$5.6m
$2.3m
$22.1m
$99.7m
$ -
$ 50m
$ 100m
$ 150m
$ 200m
$ 250m
$ 300m
Unit pricingValue of
new IP
built
Development
margin
on new units
sold
Discount
rates
Growth
rates
OtherFY17 fair
value
movement of
IP
FY17 f air value movement of investment property

FY17 underlying profit
Underlying profit up 44% on FY16, 47% CAGR over last six years
FY17 results presentation
26
Record full year u nderlying p rofit of $81.7m, up 44% on FY16
Uplift in profit driven by the continued benefits of bringing o ur design
and development team in-house, coupled with the maturing nature
of our operating business
Tracked ahead of our $77.0m to $79.0m guidance with b etter than
expected resale settlements, s tronger than expected margins on
both new and resale settlements, a nd positive y ear-end valuation
impacts relating t o retail b onds
Realised development margin of $51.0m achieved in FY17, u p from
$39.0m in FY16 driven by a record high margin of 27.3%
Realised gain on resales of $24.9m achieved in FY17, a record full
year result, d riven b y a higher sales volume and strong s ales price
growth
Underlying profit has seen an annual compounded increase of 47%
since we listed in 2011
UnderlyingprofitdiffersfromNZIFRSreportedprofitaftertax.TheDirectorshaveprovidedanunderlyingprofitmeasuretoassistreadersindeterminingtherealisedandnon-realisedcomponentsof
fairvaluemovementofinvestmentpropertyandtaxexpenseintheGroup’sincomestatement.Themeasureisusedinternallyinconjunctionwithothermeasurestomonitorperformanceandmake
investmentdecisionsandhasbeenauditedbyErnst&Young.UnderlyingprofitisanindustrywidemeasurewhichtheGroupusesconsistentlyacrossreportingperiods.Seenote2ofthefinancial
statementsfordetailonthecomponentsofunderlyingprofit
NZ$mFY17FY16
YoY
change
FY15
Care fees and village
services
74.557.829%46.5
Deferred management
fees
35.828.028%21.8
Realised gain on resales24.915.462%12.3
Realised development
margin
51.039.031%26.1
Other income & interest
received
0.20.2-26%0.5
Total income186.4140.433%107.2
Operating expenses88.671.125%57.3
Depreciation and
amortisation
4.63.724%3.7
Net finance costs11.59.127%8.4
Total expenses104.783.925%69.4
Underlying profit81.756.644%37.8

FY17 cash flows
Continued investment in new village builds
FY17 results presentation
27
Continuing to see benefits of maturing portfolio -net operating
business cash flows u p 67% from $15.7m in FY16 to $26.1m in
FY17
Cash flow from care fees and village s ervices was up $15.2m on
FY16
Net receipts f rom resales was up $7.3m on FY16 with u plift in
resale volume and margin
Gross r eceipts from new sales was up on FY16 despite lower
sales volume
Investing cash flows were u p $57.6m on FY16 with additional
land purchases and continued investment i n village
developments
Net proceeds from borrowings includes the $100m retail bond
issuance within t he year
NZ$mFY17FY16YOY change
Net operating business cash
flow
26.115.767%
Receipts for residents' loans -
new sales
181.6176.93%
Net operating cash flow207.7192.68%
Purchase of land(27.8)(18.5)51%
Construction of new IP & care
facilities
(213.1)(168.1)27%
Refurb of existing IP & care
facilities
(4.7)(3.3)40%
Other investing cash flows(6.1)(5.0)23%
Capitalised interest paid(5.8)(5.0)15%
Net investing cash flow(257.5)(199.9)29%
Net proceeds from borrowings73.925.8187%
Net dividends paid(12.3)(8.9)38%
Other financing cash flows(12.9)(7.6)69%
Net financing cash flow48.79.2428%

FY17 balance sheet
Total assets of $2.2b, up 30% from $1.7b in FY16
FY17 results presentation
28
Total assets of $2.2b, up 30% on FY16
Retained earnings have increased from $289.1m as at 31
December 2016 to $492.6m as at 31 December 2017. This
will c ontinue to positively impact balance sheet strength a nd
company gearing r atios
Investment p roperty v aluation of $2.1b, up 29% on FY16
Other assets include land and buildings (primarily care
centres)
Care centres valued as at 31 December 2017 (three yearly
cycle)
Embedded value of $497.1m, $152k per retirement unit, as
at 31 December 2017:
$327.4m resale gains
$169.7m deferred management fees
NZ$mFY17FY16
YOY
change
FY15
Investment property2,0581,59129%1,261
Other assets158.2115.437%102.4
Total assets2,2161,70730%1,364
Residents' loans966.6801.321%637.2
Face value of bank loans &
bonds*
347.8274.027%248.2
Other liabilities132.685.954%68.3
Total liabilities1,4471,16125%953.8
Net assets**769.3545.641%409.8
Embedded value497.1322.654%229.7
NTA (cents per share)347.6249.939%188.5
** Net assets includes share capital, reserves, and retained earnings
*Facevalueofdrawnbankdebtandretailbonds.Excludescapitalisedandamortisedbondissuecosts,andfairvaluemovementonhedgedborrowings

Gearing ratio
Gross debt of $348m* and gearing ratio of 30.7%
FY17 results presentation
29
Gross d ebt of $347.8m as at 31 December 2017, up $32.5m from
30 June 2017
Uplift in gross d ebt principally d ue to settlement of land in
Avonhead and Casebrook, a nd development spend in Ellerslie
(main building and apartment block), H obsonville m ain building,
and civil w orks in Casebrook, Rototuna and Warkworth
Successfully raised $100.0m of retail bonds to provide further
funding diversification and tenor
Bank facility o f $500.0m with undrawn capacity of $252.2m at 31
December 2017
Gearing ratio of 30.7% is down from 32.5% as at 30 June 2017
Our new land purchase in Kenepuru, Wellington was not fully
settled in FY17 –as such it is not fully reflected in the net debt
figure
*Facevalueofdrawnbankdebtandretailbonds.Excludescapitalisedandamortisedbond
issuecosts,andfairvaluemovementonhedgedborrowings
**Gearingratiocalculation(netdebt/netdebtplusbookequity)differsfromtheSummerset
Group’sbankandbondLVRcovenant(TotalDebtoftheSummersetGroup/PropertyValue
oftheSummersetGroup)
NZ$mFY171H17ChangeFY16
Face valueof bank loans
& retail bonds*
347.8315.310%274.0
Cash and cash
equivalents
(7.6)(13.1)-42%(8.7)
Net debt340.3302.213%265.3
Net assets769.3627.623%545.6
Gearing ratio (%)**30.7%32.5%-6%32.7%
Bank & bond LVR(%)**31.4%34.3%-8%34.0%
$161m
$248m
$263m
$274m
$315m
$348m
29.8%
37.1%
36.1%
32.7%
32.5%
30.7%
0%
10%
20%
30%
40%
50%
$0m
$100m
$200m
$300m
$400m
$500m
$600m
1H152H151H162H161H172H17
Gross borrowings* and gearing ratio**
Bank l oans & retail b ondsGearing ratio (%)

Project cash profits
Delivering significant positive cash flow villages
FY17 results presentation
30
Positive cash flows allow us to recycle our capital into future
deliveries
Our high rise sites require a large amount of capital but are
forecast to deliver s ignificant cash profits upon sell down of the
village
Our broad acre sites r equire a lower amount of capital, while a ll
producing positive c ash flows
From the time construction o f a village starts t hrough to the last
retirement u nit being delivered t akes, on average, a round four to
six y ears
*Forecastnetpositionrepresentscashprofitspostlandcost,retirementunitdevelopment
costs,recreationandadministrationfacilitycosts,carefacilitycosts,managementfeesand
interestcosts
Village
Forecast Capital
Investment ($m)
Forecast Net Cash
Position* ($m)
Casebrook
Ellerslie
Hobsonville
Karaka
Rototuna
$100m +$20m +
Hamilton
Trentham -Extension
Warkworth -Extension
Wigram
$35m +
$5m -$20m
Katikati
New Plymouth
$0m -$5m
Hamilton
Katikati
Hobsonville
Karaka
Trentham - Extension
New Plymouth
Wigram
Ellerslie
Warkworth - Extension
Casebrook
Rototuna
20162017201820192020
Summerset developments
201020112012201320142015

$135m
$172m
$119m
$ -
$ 50m
$ 100m
$ 150m
$ 200m
$ 250m
$ 300m
$ 350m
$ 400m
$ 450m
$ 500m
Net d ebtUnderlying assets
Net debt* to underlying assets -FY17
Net DebtUndeveloped L andDevelopment WIPUnsold Stock
Composition of drawn debt
Strong asset backing to net debt
FY17 results presentation
31
Development projects are debt funded. Development assets
exceed the value of net debt by $85.3m or 25%
All debt is associated with d evelopment activities
Development assets could be realised to reduce debt
Total underlying a ssets of around $425.5m are made up of:
Undeveloped land of $135.0m
Development WIP of $171.5m
Vacant new sale stock of $119.0m
$340m
$426m
*Facevalueofdrawnbankdebtandretailbonds

Final dividend

FY17 final dividend
Summerset board declares FY17 final dividend
FY17 results presentation
33
The Summerset Board have declared a final dividend of 7.1 cents per share, unimputed. This compares to a 2016 final dividend of 5.1 cents
per share
This represents a pay-out for the second half of 2017 of approximately $15.9m
Total dividends for the 2017 year (interim a nd final) of 11.0 cents per share, being approximately $24.6m, representing 30% of underlying
profit and up 45% of FY16
The dividend reinvestment plan (DRP) w ill a pply to this dividend enabling shareholders to take shares in lieu of the cash dividend
A discount of 2% will b e applied when determining the price per share of shares issued under the DRP
Eligible investors wishing to take up the DRP must register by 5pm NZT o n Monday the 12th of March 2 018. Any applications received o n or
after this time will b e applied to subsequent dividends
The final dividend will b e paid on Thursday t he 22nd of March 2018. The record date for final determination of entitlements to the final
dividend is Friday the 9th of March 2018
The dividend policy r emains 30% to 50% of underlying p rofit for the full year p eriod. As previously indicated, dividend payments are likely t o
continue to be at the bottom end of this range given t he growth opportunities present for the business at this time

Questions?
FY17 results presentation
34

Disclaimer
FY17 results presentation
35
This presentation may contain projections o r forward looking statements regarding a variety of items. Such forward-looking statements are
based upon current e xpectations a nd involve r isks and uncertainties
Actual results m ay differ materially from those stated in any forward looking statement based on a number of important factors and risks
Although management may indicate and believe the assumptions underlying t he forward l ooking statements are reasonable, any ofthe
assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results c ontemplated in the forward
looking statements will b e realised
Furthermore, while all reasonable care has been taken in compiling this presentation, Summerset accepts no responsibility forany errors o r
omissions
This presentation does not constitute investment advice

Appendix

Demographics
FY17 results presentation
37
Population over 75 years forecast to grow 254% from 2017 to 2068
0
5,000
10,000
15,000
20,000
25,000
1
9
9
7
-2
0
0
2
2
0
0
2
-2
0
0
7
2
0
0
7
-2
0
1
2
2
0
1
2
-2
0
1
7
2
0
1
7
-2
0
2
2
2
0
2
2
-2
0
2
7
2
0
2
7
-2
0
3
2
2
0
3
2
-2
0
3
7
2
0
3
7
-2
0
4
2
2
0
4
2
-2
0
4
7
2
0
4
7
-2
0
5
2
2
0
5
2
-2
0
5
7
2
0
5
7
-2
0
6
2
2
0
6
2
-2
0
6
7
Per annum population growth 75 years and over
Source: Statistics New Zealand –National Population Projections
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1
9
9
7
2
0
0
2
2
0
0
7
2
0
1
2
2
0
1
7
2
0
2
2
2
0
2
7
2
0
3
2
2
0
3
7
2
0
4
2
2
0
4
7
2
0
5
2
2
0
5
7
2
0
6
2
2
0
6
7
Population growth 75 y ears and over
NZ population 7 5+ (left h and axis)% p opulation 75+ (right h and a xis)

Summerset growth
20 years of consistent delivery and growth
FY17 results presentation
38
-
129
219
407
470
528
652
732
795
921
983
1,109
1,272
1,364
1,486
1,646
1,855
2,116
2,419
2,828
129
90
188
63
58
124
80
63
126
62
126
163
80
122
160
209
261
303
409
450
129
219
407
470
528
652
732
795
921
983
1,109
1,272
1,352
1,486
1,646
1,855
2,116
2,419
2,828
3,278
0
500
1,000
1,500
2,000
2,500
3,000
3,500
199719981999200020012002200320042005200620072008200920102011201220132014201520162017
Ret
i
re
m
e
n
t
u
n
i
ts
Summerset build rate
Existing unitsNew retirement u nits d elivered

Customer profile & occupancy
Occupancy, tenure and resident demographic statistics
FY17 results presentation
39
Occupancy w ithin o ur established care centres i s stable with a n average
occupancy of 96% for 2H17
Average t enure on 2H17 resale retirement units was 5.0 years f or villas, 4.5
years f or independent apartments, and 1.9 years f or serviced a nd memory
care apartments
Average e ntry a ge on 2H17 new and resale retirement units was 80 years f or
villas a nd independent apartments, and 86 years f or serviced a nd memory
care apartments
5.6
4.9
5.0
5.0
3.0
3.3
4.7
4.5
2.5
2.3
1.4
1.9
0
1
2
3
4
5
6
7
1H162H161H172H17
Average tenure (years) on r esales*
VillasApartmentsServiced & memory c are a partments
* Average tenure has been calculated using the previous resident’s occupancy on resales within the reporting period
78
79
79
80
83
82
83
80
86
85
86
86
60
65
70
75
80
85
90
1H162H161H172H17
Average entry age of residents (years)
VillasApartmentsServiced & memory c are a partments
98%
99%
98%
96%
0%
20%
40%
60%
80%
100%
1H162H161H172H17
Occupancy -established care centres

Portfolio as at 31 December 2017
3,278 retirement units and 806 care beds
FY17 results presentation
40
Existing portfolio -as at 31 December 2017
VillageVillasApartmentsServiced apartmentsMemory care apartments
Total
retirement units
Total
care beds
Ellerslie342357-11458
Hobsonville1153711-1630
Karaka111059-17050
Manukau896727-18354
Warkworth148244-19441
Auckland497129198-824203
Hamilton183050-23349
Taupo943418-1460
Waikato2773468-37949
Katikati118020-13849
Bay of Plenty118020-13849
Hastings14650-1510
Havelock North94280-12245
Napier942620-14048
Hawke's Bay3345920-41393
New Plymouth108040-14852
Taranaki108040-14852
Levin64220109641
Palmerston North90120-10244
Wanganui701812-10037
Manawatu-Wanganui224521210298122
Aotea963338-1670
Paraparaumu92220-11444
Trentham2311220-26344
Wellington4196758-54488
Nelson214055-26959
Nelson214055-26959
Wigram111053-16449
Christchurch111053-16449
Dunedin612020-10142
Otago612020-10142
Total2,363361544103,278806

Land bank as at 31 December 2017
Land bank of 2,841 retirement units and 396 care beds
FY17 results presentation
41
* Land bank reflects current intentions as at December 2017
Land bank -as at 31 December 2017*
VillageVillasApartments
Serviced & memory
care apartments
Total
retirement units
Total
care beds
Ellerslie8196-204-
Hobsonville1036418752
Karaka71--71-
Parnell-2647634048
St Johns-2367631232
Warkworth54--54-
Auckland1437321931,068132
Rototuna187-7626343
Waikato187-7626343
Katikati38--38-
Bay of Plenty38--38-
Kenepuru1009310629943
Lower Hutt42964318149
Trentham--2020-
Wellington14218916950092
Richmond234-7631043
Nelson234-7631043
Avonhead156129826643
Casebrook260127634843
Wigram48--48-
Christchurch4642417466286
Total1,2089456882,841396

FY17 underlying profit reconciliation
Reconciliation of underlying profit to reported net profit after tax
FY17 results presentation
42
UnderlyingprofitdiffersfromNZIFRSreportedprofitaftertax.TheDirectorshaveprovidedanunderlyingprofitmeasuretoassistreadersindeterminingtherealisedandnon-realisedcomponentsof
fairvaluemovementofinvestmentpropertyandtaxexpenseintheGroup’sincomestatement.Themeasureisusedinternallyinconjunctionwithothermeasurestomonitorperformanceandmake
investmentdecisionsandhasbeenauditedbyErnst&Young.UnderlyingprofitisanindustrywidemeasurewhichtheGroupusesconsistentlyacrossreportingperiods.Seenote2ofthefinancial
statementsfordetailonthecomponentsofunderlyingprofit
NZ$mFY17FY16YOY changeFY15
Reported net profit after tax223.4145.554%84.2
Less reversalof impairment on land & buildings(0.0)-N/A-
Less fair value movement of investment property(218.0)(143.5)52%(83.5)
Add realised gain on resales24.915.462%12.3
Add realised development margin51.039.031%26.1
Add/(less) deferred tax expense/credit0.30.284%(1.5)
Underlying profit81.756.644%37.8

Fair value movement
Fair value movement of investment property –key assumptions
FY17 results presentation
43
*Valueofnon-landcapitalworkinprogressnotrepresentedintheabovetable
Fair value movement of
investment property
Value of investment
property*
Fair value
gain/(loss)
Keyvaluation assumptions
VillageLocationNZ$mNZ$mDiscount rate
Growth rate
Yr 1
Growth rate
Yr 2
Growth rate
Yr 3
Growth rate
Yr 4
Growth rate
Yr 5+
Summerset by the ParkManukau137.56.813.50%1.5%2.0%2.5%3.0%3.5%
Summerset by the LakeTaupo52.71.515.75%0.0%0.5%1.5%2.5%3.5%
Summerset in the BayNapier62.63.414.00%0.0%1.0%2.0%2.5%3.5%
Summerset in the OrchardHastings62.25.015.00%0.0%0.5%1.0%2.5%3.5%
Summerset in the VinesHavelock North52.02.814.75%0.0%1.0%2.0%2.5%3.5%
Summerset in the River CityWanganui25.20.516.00%0.0%1.0%1.5%2.0%2.5%
Summerset on SummerhillPalmerston North40.70.914.75%0.0%1.0%2.0%2.5%3.0%
Summerset by the RangesLevin23.72.215.75%0.0%1.0%1.5%2.0%2.5%
Summerset on the CoastParaparaumu48.04.914.50%0.5%1.0%2.0%2.5%3.5%
Summerset at AoteaAotea86.24.614.25%1.0%1.0%2.0%2.5%3.5%
Summerset in the SunNelson130.19.314.00%0.5%1.0%1.0%2.5%3.5%
Summerset at BishopscourtDunedin42.22.715.00%0.0%1.0%1.5%2.5%3.0%
Summerset Down the LaneHamilton116.415.414.25%0.0%1.0%2.0%2.5%3.5%
Summerset Mountain ViewNew Plymouth66.411.415.00%0.0%0.5%1.5%2.5%3.0%
Total for completed villages945.971.5
Summerset FallsWarkworth124.822.314.50%0.5%1.5%2.0%3.0%3.5%
Summerset at Monterey ParkHobsonville174.730.014.00%1.0%1.0%2.0%2.5%3.5%
Summerset at Heritage ParkEllerslie105.726.315.00%1.0%1.0%2.0%2.5%3.5%
Summerset at KarakaKaraka121.829.414.25%1.0%1.0%2.0%2.5%3.5%
Summerset by the SeaKatikati69.810.115.50%0.0%0.5%1.5%2.5%3.5%
Summerset at the CourseTrentham129.915.814.00%0.5%1.0%2.0%2.5%3.5%
Summerset at WigramWigram85.012.915.00%0.5%1.5%2.0%3.0%3.5%
Total for villages in development811.7146.8
Total for proposed villages129.0(0.3)n/an/an/an/an/an/a
Total for all villages1,886.6218.0

Care centre valuation
Care centre valuation –key assumptions
FY17 results presentation
44
*Builtsubsequenttothelastcarecentrevaluationasat31December2014**Valueincludescarebedsandassociatedcareprofitsfromservicedandmemorycareapartments
Value of care facilitiesTotal care bedsValue of care facility
Assumed
capitalisation rate
Assumed value p er
equivalent bed**
VillageLocationNo.NZ$m%NZ$'000
Summerset at BishopscourtDunedin426.713.50%133
Summerset Down the LaneHamilton497.113.50%118
Summerset in the VinesHavelock North454.114.00%95
Summerset by t he RangesLevin414.514.50%87
Summerset by t he ParkManukau5410.612.00%173
Summerset in the BayNapier486.512.00%113
Summerset in the SunNelson598.613.75%108
Summerset on SummerhillPalmerston North444.914.25%109
Summerset on the CoastParaparaumu444.314.00%97
Summerset at the CourseTrentham445.113.00%95
Summerset in the River CityWanganui372.915.00%68
Summerset FallsWarkworth416.913.25%129
Total for existing care facilities54872.0--
Summerset at Heritage ParkEllerslie5811.013.50%157
Summerset at KarakaKaraka508.813.75%147
Summerset by t he SeaKatikati496.813.75%126
Summerset Mountain ViewNew Plymouth527.113.75%109
Summerset at WigramWigram497.813.00%122
Total for new care facilities*25841.5--
Total for all villages806113.4--

7year metrics summary
FY17 results presentation
45
*Compoundannualgrowthrate
**UnderlyingprofitdiffersfromNZIFRSreportedprofitaftertax.ThemeasurehasbeenauditedbyErnst&Young.Refertoappendixforareconciliationbetweenthetwomeasures,andnote2of
thefinancialstatementsfordetailonthecomponentsofunderlyingprofit
Underlying profit 6 year CAGR of 47%
Full Year Results6 Year CAGR*FY17FY16FY15FY14FY13FY12FY11
Op
e
r
a
t
ion
a
l
New sales of occupation rights23%382414333286228167108
Resales of occupation rights16%300244245172174164123
Total sales20%682658578458402331231
New retirement units delivered24%450409303261209160122
Retirement units in portfolio14%3,2782,8282,4192,1161,8551,6461,486
Care beds in portfolio16%806748616485442327327
Fina
n
c
ial
(
N
Z$m
)
Total revenue ($m)22%110.586.168.854.345.238.133.7
Net profit after tax ($m)93%223.4145.584.254.234.214.84.3
Underlying profit** ($m)47%81.756.637.824.422.215.28.1
Net operating cash flow ($m)30%207.7192.6140.3110.488.666.343.7
Total assets ($m)24%2,216.31,706.81,363.51,043.2844.9702.3616.9
Total equity ($m)22%769.3545.6409.8332.3281.9248.8233.4
Interest bearing loans and borrowings ($m)31%347.2274.0248.2150.8105.378.269.1
Cash and cash equivalents ($m)-3%7.68.76.74.93.02.89.0
Gearing ratio (Net D/ Net D+E)7%30.7%32.7%37.1%30.5%26.6%23.3%20.5%
EPS (cents) (IFRS profit)87%102.2366.9338.9425.1615.996.962.39
NTA (cents)21%347.56249.90188.52153.33131.24116.49109.33
Development margin (%)28%27.3%22.2%20.0%15.7%13.2%12.0%6.2%

---

Annual Report 2017

Pg 68
Contents
Summerset Snapshot 1
Business Highlights 4
Portfolio Grow th 5
Financial Highlights 8
People Highlights 12
Chair’s Report 13
Chief Executive Officer’s Report 15
Health and Safety 19
Community Support 22
Directors’ Profiles 23
Executive Team Profiles 25
Five Year Historical Summary 27
Financial Statements 30
Governance 67
Remuneration 75
Disclosures 82
Company Information 89
Directory 91
Cover image: Aotea resident Margaret with her granddaughter
This document is printed on an environmentally responsible paper produced using Elemental Chlorine Free (ECF) pulp sourced from
sustainable and legally harvested farmed trees, and manufactured under the strict ISO14001 Environmental Management System.

Pg 2Pg 1
More than
1,200
staff members
3,278
Retirement units in
portfolio
23
Villages completed
or under development
Summerset
Snapshot
Land bank of
396
care beds
2,841
retirement units
Land bank of
More than
4,700
residents
806
58
Care beds in portfolio
New care beds
delivered in 2017
450
Retirement units
built in 2017
6
Greenfield sites

Pg 4Pg 3
Business
Highlights
2 7. 3 %
development margin
Milestone
1
Care centre opened
Ellerslie
682
occupation rights
Sales of
3
Land acquisitions
Kenepuru in Wellington, Avonhead in Christchurch
and additional land at Casebrook in Christchurch
58
New care beds
delivered
450
New retirement units
delivered

Pg 6Pg 5
The New Zealand population
aged over 75 years is forecast
to more than triple in the next
50 years.
The number of people aged
75 and over is projected to
increase from 300,000 in
2017 to 1,090,000 by 2068.
This is an increase from 6% of
the population to 17%.
The number of people aged
85 and over is projected to
increase from 85,000 in
2017 to 400,000 in 2068.
This is an increase from 1.7%
of the population to 6.1%.
2017 Highlights
450
new retirement units completed
10%
more units built than in 2016
3,278
retirement units in portfolio
Portfolio Grow th
20 years of consistent delivery and growth

New retirement units delivered

Existing stock
3,500
3,000
2,500
2,000
1,500
1,000
500
0
’98’97’99’00’01’02’03’04’05’06’07’08
163
80
122
160
209
261
303
1,272
1,352

1,486
1,646
1,855
2,116
2,419
2,828
129
90
188
63
58
124
63
126
126
62
219
407
470
528
652
732
795
921
983
1,109
’09’10’11’12’13’14’15’16’17
3,278
409
450
129
80
129
219
407470528652
732
7959219831,109
1,272
1,3641,4861,646
1,855

2,1162,4192,828

Pg 8Pg 7
Financial
Highlights
44%
Increase on FY16
$81.7m
Underlying profit FY17
30%
Increase on FY16
$2.2b
Total assets
8%
Increase on FY16
$208m
Operating cash flow
54%$223m
Net profit after tax FY17Increase on FY16
Clark Coastal Villa, Hobsonville

Pg 10Pg 9
Financial Highlights
Underlying profit
$000
FY2017FY2016% Change
Profit for the period *223,436145,48053.6%
Less fair value movement of investment property *(217,954)(143,459)51.9%
Less reversal on impairment of land *(15)-N/A
Add realised gain on resales24,93615,42361.7%
Add realised development margin50,97038,95430.8%
Add deferred tax expense *29015883.5%
Underlying profit81,66356,55644.4%
*Figure has been extracted from financial statements
Underlying profit differs from NZ IFRS profit for the period. The Directors have provided an underlying profit measure to
assist readers in determining the realised and non-realised components of fair value movement of investment property
and tax expense in the Group’s income statement. The measure is used internally in conjunction with other measures
to monitor performance and make investment decisions and has been audited by Ernst & Young. Underlying profit is an
industry-wide measure which the Group uses consistently across reporting periods.
Results Highlights – Financial
FY2017FY20166% Change
Net profit before tax (NZ IFRS) ($000)223,726145,63853.6%
Net profit after tax (NZ IFRS) ($000)223,436145,48053.6%
Underlying profit * ($000)81,66356,55644.4%
Total assets ($000)2,216,3281,706,77329.9%
Net tangible assets (cents per share)3 47.56249.9039.1%
Net operating cash flow ($000)207,7 16
192,6107.8%
*Underlying profit differs from NZ IFRS profit for the period
Results Highlights – Operational
FY2017FY2016% Change
New sales of occupation rights382414( 7.7 %)
Resales of occupation rights30024423.0%
New retirement units delivered45040910.0%
Realised development margin ($000)50,97038,95430.8%
Gross proceeds (new sales) ($000)186,428175,6416.1%
Realised gains on resales ($000)24,93615,42361.7%
Moira, Paraparaumu

Pg 12Pg 11
1,200
staff members
More than
More than
4,700
97%
Village resident
satisfaction
97%
Care resident and
family satisfaction
New staff benefits
initiative launched
People Highlights
More than
residents
200
new roles created

Pg 14Pg 13
C h a i r ’s
Report
dementia. We intend to implement it in future
villages, starting with Casebrook in Christchurch
and Rototuna in Hamilton, both of which are
currently under development.
With 23 villages and another six for development
in New Zealand, Summerset has grown quickly
since its first village opened in Wanganui on 21
November 1997. This year we also celebrated our
sixth year since listing on the NZX. Since listing
we have more than doubled our size and we are
likely to double again in the next five years as we
continue to grow our footprint and as the ageing
population continues to increase. We continue to
assess potential entry into the Australian market.
The Board has declared a final dividend of NZ 7.1
cents per share. This is a total dividend payment
for 2017 of NZ 11 cents per share and represents
30% of underlying profit.
Looking ahead to 2018, social and environmental



sustainability is becoming increasingly important
in the way businesses operate. Summerset
already undertakes a range of activities
that contribute to social and environmental
sustainability. However, we recognise we are in
the early stages of our sustainability journey, and
plan to review our approach to this important area
over the coming year to improve our contribution.
Summerset will continue to work hard to deliver
high quality retirement living for its residents
and subsequent financial results that benefit our
investors, residents and staff.
On behalf of the Board, thank you for your
continued support.


Rob Campbell
Chair
These results come from achieving our purpose
of bringing the best of life to our residents by
ensuring they have the best homes, care and
lifestyle and making life at a Summerset village
a great experience.
We continue to expand our offering with three
land purchases in 2017, being Kenepuru in
Wellington, Avonhead in Christchurch and an
additional two hectares alongside our Casebrook
village. We opened the main building in our
new Ellerslie village and won the best built
environment award at the New Zealand Aged
Care Association annual awards for our purpose-
built memory care centre in Levin.
Our memory care concept sees people with
dementia living in their own one bedroom
apartment, supported by leading technology
and within a wider secure memory care centre.
This gives them their own home and a sense of
independence in a safe and caring environment.
Summerset is the first in New Zealand to launch
this style of apartment living for people with
Welcome to Summerset’s Annual Report for the financial year to
31 December 2017. The results reflect continued sound performance from
the business in its 20
th
year of operation. In 2017 Summerset delivered net
profit after tax of $223.4 million, a 54% increase on 2016, and an underlying
profit of $81.7 million, an increase of 44% on 2016.
Award-winning Levin memory care centre

Pg 16Pg 15
2016.
Summerset is New Zealand’s fastest growing retirement
village and care operator, the second largest builder
of retirement units and third largest by number of
residents. We are also the youngest of all the large
operators. Summerset has come a long way in its
20 years, but we couldn’t have accomplished any of
these things without the dedication and support of our
people, both residents and staff.
Our aim is to provide the highest quality care
Our resident satisfaction results continue to perform
very strongly with village resident satisfaction last
year of 97%, up from 94% in 2016. Our care resident
satisfaction result was 97%, up from 94% in 2016. Over
the last two years we have focused on ensuring better
communications with residents and their families
through the year, faster resolution of issues, lifting
property standards and more presence from our head
office staff, including the Executive Leadership Team
and myself, on sites to ensure our service standards are
being met and any issues are resolved quickly.
For 2018 we have further initiatives aimed at continuing
to improve the village and care experience for residents.
From March 2018 three regionally based food providers,
White Tie Health Services, Kerr & Ladbrook and Cater
Plus, will provide food for our villages. There will also
be an in-house team at our Levin and Paraparaumu
villages. Food is an essential part of the offering in the
care business, but also in the village as well. Our focus
has been on finding local food providers for whom food
is a core competency and where the owners have a
personal connection, close contact with our residents
and really care about what they do. Using a number
of local providers also ensures our food will have local
variation suited to each region and season as opposed
to serving the same meal in all villages at the same time.
As Rob has already mentioned, we received the New
Zealand Aged Care Association best built environment
award for our first memory care centre in September.
We are particularly proud of this innovative model of
dementia care as we are the first in New Zealand to offer
apartment style living for people living with dementia.
The genesis of this was simple: there must be a better
way to care for people with dementia. We intend to
incorporate memory care centres in our new villages
and the next two will be ready towards the end of 2019
in Casebrook, Christchurch and Rototuna, Hamilton.
For the third year in a row, we also received a Highly
Commended award in the Aged Care and Retirement
Villages category of the annual Reader’s Digest Trusted
Brand awards.
We have previously flagged investments we are making
in systems, and in particular the resident management
system VCare. The roll-out of this system is progressing
well with the village modules largely in place across the
group. Through the course of 2018 we will look to roll
out the clinical modules of this system. This will take
what is currently a paper based management system
onto VCare. In the initial work for this care roll-out, we
can already see considerable opportunity in removing
duplication of effort, streamlining workflows and
increasing the visibility of how our sites are performing
to our regional and central operations and clinical teams
to ensure we are delivering quality care at all times.
Investing in our people
In October, we introduced a range of market leading
benefits to reward our staff for their contribution,
enhance our employee brand and improve staff
retention. For me this was an important move to
show staff how much we value them, in particular our
frontline staff, who are at the heart of our business.
These incentives are a further boost to the 1 July 2017
government funded pay increase for caregivers,
diversional and occupational therapists and cover
all Summerset permanent full or part time staff. The
benefits include:
• Health insurance covering everyday health care costs
such as GPs, dentists, physios and optometrists
• Funeral cover – $10,000 for every permanent
employee or their spouse
• Long service leave – after five years’ service with
Summerset
• Buyers group trade discounts and Summerset
supplier discounts from a range of companies
We also continue to offer staff the opportunity to
participate in an all staff share scheme, with 83% of
employees signing up, an increase on 81% in 2016. The
scheme provides staff with $780 worth of shares that
vest after three years if they remain at Summerset.
These benefits have been very well received by staff
and place us as a leading provider in this area.
In 2017 we have worked to develop a new uniform range
for our staff. Our Katikati and Trentham village staff have
taken part in user trials and we are now refining the
designs before rolling out the range across all villages
in 2018.
Staff engagement is an important measure within any
business. This year we received an overall company
engagement score of 67%. This is 9% above the
average engagement score of 58% for New Zealand
and Australian companies and places Summerset in
the highest quartile of New Zealand and Australian
companies for staff engagement. This is a pleasing
result although we have ongoing work we want to do in
this area.
Health and safety continues to be an important area of
focus for Summerset. In the past 12 months, we have
In John’s words: “I started thinking. I knew there had
to be an opportunity for proper aged care, where
everyone has their own room and facilities. Our nanas
and grandads needed somewhere they could live with
dignity.” This was the start of Summerset.
In November last year we celebrated the 20
th
birthday
of our first village in Wanganui. It was wonderful to share
this experience with staff and residents in Wanganui
and across the country, and it certainly reinforced the
importance of our purpose: bringing the best of life to
our residents.
In our 20th anniversary year, we welcomed around
500 new residents and 200 staff to the Summerset
family. Summerset now has more than 4,700 residents
and more than 1,200 staff. That is a real achievement
for a company that started out with a single village
in Wanganui in 1997. I think we can fairly say that
Summerset has been a real New Zealand success story.
In 2017, Summerset recorded a number of
achievements including scoring record levels of
resident satisfaction, winning an award for our Levin
memory care centre, moving to the top quartile of
employers for staff engagement in New Zealand and
Australia, releasing a market leading range of staff
benefits, issuing the first retail bonds in the retirement
and aged care sector, building 450 new homes,
completing 682 occupation right sales (new sales and
resales), achieving a development margin of 27.3% and
recording an $81.7 million underlying profit, up 44% on
Chief
Executive
O ffi c e r ’s
Report
In the mid 1990’s, Summerset’s founder, John O’Sullivan, went to visit
his grandmother who had moved into an old fashioned geriatric ward in
Waikanae. She was in what amounted to a dormitory for a number of people
with plastic curtains between the beds. John remembers stretching his arms
out and being able to touch all the “walls”.

Pg 18Pg 17
St Johns village will include two and three bedroom
villas and apartments, one bedroom serviced
apartments and high quality rest-home and hospital
care. The village will also include Summerset’s award
winning memory care centre concept.
Design planning for Summerset’s seventh Auckland
village in Cheshire Street, Parnell is also underway.
Work on our Casebrook village in Christchurch is
progressing well with the first two and three bedroom
villas and townhouses available for residents to move
into next month. The village will offer our first memory
care centre in Christchurch.
Like other large developers in Auckland’s tight
construction market, Summerset has experienced
some delays to its Ellerslie build. However, despite
this, we delivered our targeted 2017 build rate of 450
retirement units. This is testament to the dedication
of Summerset’s in-house construction team. We
continue to watch the Auckland market closely given
the construction pressures and plateauing residential
housing market. We are seeing good interest in sites and
good sales rates. Our days to settle metric for new sales
in Auckland has not changed despite the changes in the
housing market, which is indicative of the needs based
demand we see for our villages, with an average age of
80 on entry.
In 2017, we purchased two new sites for development, in
the Christchurch suburb of Avonhead and Wellington’s
Kenepuru. An additional 2.1 hectares in Cavendish Road
was also purchased to provide for an additional 71 villas
at our Casebrook village.
Plans for our Boulcott, Lower Hutt village continue
to progress. During 2017 we received a plan change,
which rezoned the land to residential usage. We also
submitted our resource consent for the village and
will progress this through 2018. For various reasons,
consenting for this site is taking longer than desired but
are we making slow but sure progress.
These purchases bring the total number of Summerset
locations to 29 nationwide.
At the end of 2017, Summerset’s total land bank
represented approximately 2,841 retirement units and
396 care beds. This is a total of around six years’ supply
based on our intended build programme for retirement
units in 2018 of around 450 retirement units.
Executive Team changes
Last year we announced we had started to look at
Australia as a potential market for Summerset. To further
this work we have appointed Paul Morris, currently GM
Development, as GM Development Australia and he will
be relocating to Australia in 2018.
Paul has been with Summerset for 17 years, overseeing
the development function integral to Summerset’s
success. It is very pleasing to have someone of Paul’s
experience and proven track record leading our
Australian activity.
Aaron Smail, Summerset’s Senior Development
Manager, has been promoted to the GM Development
role.
In the sales team we appointed Fay French as GM Sales
last year. Fay was previously one of Summerset’s Group
Sales Managers, responsible for our South Island and
developing villages.
Looking ahead
Our focus in the coming year will be to continue to
deliver high quality retirement village living by bringing
the best of life to our residents whether they are
living independently in our villages, need a little extra
assistance in our serviced apartments, or are living in
our care centres.
Our residents are why we are here and developing
further homes for future residents is a key part of our
business and its financial success, from which our
residents, staff and investors all benefit.
We will continue to look for opportunities to purchase
land for more retirement villages in New Zealand and
continue to investigate whether to move into the
Australian market.
I would like to thank our residents for choosing to live at
Summerset and creating our vibrant villages; our staff, in
particular our caregivers and nurses, for the hard work
they do bringing the best of life to our residents each
day; and our investors for supporting our business.


Julian Cook
Chief Executive Officer
moved further towards improving our systems. We
implemented a risk management framework across
the company; participated in two external health and
safety audits, which identified where we are making
good progress and how we can further enhance our
practices; achieved ACC accredited employer status;
employed a health and safety team member dedicated
to construction, and advanced relationships with other
companies in similar industries to progress industry
specific health and safety benchmarks. We continue to
achieve positive results with our Site Safe New Zealand
audits across our construction sites.
Bringing the Best of Life
In 2017, we also undertook a rebranding exercise. This
has resulted in an updated brand appearance, new
website and redesigned customer facing collateral
across our operations. Residents are at the heart of
what we do and we have tried to reflect this in our brand
imagery, the stories we tell in our website and collateral
and how our website functions, with a number of new
features designed to make understanding what we offer
and how to get in touch with us easier for residents
and their families. We have also been spending time
increasing our social media presence and would invite
you to visit our page on Facebook which can be found
by searching for Summerset. There are some great
stories on here about the life in our villages. We can
also be found on LinkedIn, which has a more business-
focused orientation.
As part of turning 20 years old in 2017, we have written
a book (available free by contacting our Wellington
office) which tells the story of Summerset, from John
O’Sullivan’s desire to build a place where he would be
proud to have his nana stay, through to where we are
today. Summerset was founded on John’s vision of
putting residents first, doing the right thing for people
and ensuring that we would all be proud to have our
own family in a Summerset village. As we have grown
we have found the ability to be able to articulate these
values clearly is important to staff, residents, families
and other stakeholders. To this end we have formalised
our values with our three overarching values of “strong
enough to care”, “one team” and “strive to be the best”
encapsulating the spirit of what is Summerset.
Growth and development
Auckland and Christchurch continue to be focus areas
of growth for Summerset.
In July 2017 we opened the main building of our
Ellerslie village, which is part of a $1.3 billion investment
programme in the region, including further villages in
St Johns and Parnell. The development of our Ellerslie
village represents another step forward in our Auckland
growth plans, which will strengthen our position as New
Zealand’s fastest growing retirement village and aged
care provider.
Summerset is playing a role in freeing up Auckland
property at a time when land supply in the city is under
pressure. The higher density nature of our Ellerslie
village means it is expected to free up the equivalent of
about 18 hectares of residential land in Auckland.
When complete, Summerset at Heritage Park will house
400 residents in a mix of two and three bedroom villas,
apartments, and serviced apartments, while 58 care
rooms will provide rest home and hospital-level care.
Summerset has also applied to Auckland Council for
resource consent to develop over 340 homes on 2.5
hectares on St Johns Road. Homes at the proposed

Pg 20Pg 19
Our people (Summerset’s expectation of all staff):
• Take responsibility for the health and safety of
themselves and others;
• Follow our health and safety practices and
procedures;
• Report work related injuries, near-miss situations
and/or potential hazards;
• Contribute to the continual improvement
of our practices;
• Speak out if in doubt.
At a governance level, Summerset manages health
and safety as part of the Company’s overall risk
management plan. In addition, Summerset has a rolling
three-year health and safety strategy and an annual
plan.
Health and safety achievements in 2017
Specific achievements in 2017 in the ongoing
development of the Company’s health and safety
programme include:
• A refreshed Summerset Health and Safety Policy
aimed specifically at sharing the Company’s vision
for health and safety;
• Confirmation from the 2017 all-staff survey of
positive staff perceptions of health and safety
practices and efforts to advance;
• Appointment of additional resourcing to specifically
provide health and safety expertise to the
Company’s construction sites;
• Increased reporting against all types of health and
safety incidents including near misses, hazard
observations and injuries;
• Successful achievement of ACC Accredited
Employers Programme status;
• Successful acceptance into third party claims
management programme;
• Implementation of internal health and safety audit
programmes across the Company’s operations and
construction business units;
• Increased focus on critical risks and on learnings
from incidents;
• Continued active participation in key external
networking forums, including the Business Leaders
Health & Safety Forum.
The Group’s lost time injury frequency rate (LTIFR) and
recordable injury frequency rate (RIFR) are showing a
downward trend and near miss frequency rate (NMFR)
is showing an upward trend. We believe this is a result
of the strong focus on good health and safety practices
across the business.
Key terms:
LTIFR = lost time injury frequency rate, is calculated by
multiplying the total number of LTI’s (lost time injuries)
recorded in a 12 month period by 200,000 and then
dividing by the total number of hours worked, i.e. an LTIFR
of 4.0 means that there have been four LTI’s per 200,000
hours worked on average over a 12-month period.
RIFR = recordable injury frequency rate, is calculated by
multiplying the total number of MTI’s (medical treatment
injuries) and LTI’s (lost time injuries) recorded in a
12-month period by 200,000 and then dividing by the
total number of hours worked.
Summerset believes that a fundamental part of being
able to achieve its purpose of Bringing the Best of Life
to our older generations is a safe and healthy workforce.
Summerset completed a full review of all Company
health and safety practices in 2014 in preparation for
the new Health and Safety at Work Act 2015. This led
to the creation of the health and safety system now in
place at Summerset, the implementation of a health and
safety system to report and process health and safety
incidents, and the recruitment of a dedicated health and
safety team.
Summerset has continued to advance health and safety
practices by establishing and evolving a strong National
Health and Safety Committee. As a demonstration of
the commitment to health and safety by the Executive
Team, the majority of the Executive sit as part of the
National Health and Safety Committee.
Summerset’s approach focuses on doing the right thing,
working together and continually raising the bar.
Summerset’s commitment and vision for health and
safety is confirmed in a one-page policy that can easily
be understood by all staff across the Company.
We believe (Summerset’s vision):

• It is up to every one of us;
• We can all go home safe from harm each day;
• A safe and healthy operation is an efficient operation.
We will (Summerset’s commitment):
• Actively lead safe working practices;
• Invest in the capability of our people,
systems and practices;
• Identify, eliminate and/or control things that could
hurt our people;
• Encourage and value our people’s input into
finding ways to keep us all safe;
• Seek to continually improve our health and
safety performance.
Health and Safety
Summerset’s vision is that all of our staff go home safe from harm each day.
9.0
20162017
RIFR LTIFR
Number of recordable injuries
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0
RIFR and LTIFR as at 31 December

Pg 22Pg 21
Summerset supports the wider community through sponsorships of
individuals and organisations, as well as a large number of local clubs
and groups that have direct relationships with our villages. In addition at a
national level we support the following organisations:
New Zealand Dementia Co-operative (NZDC)
An organisation that works to bring together people
with expertise in dementia to further how this country
deals with the challenge of dementia.
Eureka Trust
Set up in association with Sir Paul Callaghan to
encourage and develop young leaders within the
science, technology, engineering and mathematics
subject areas. Summerset sponsors the Ageing Well
category of the Eureka Award, which looks at advances
that harness science to sustain health and wellbeing
into the later years of life. Palmerston North Girls’ High
School student Maddison McQueen-Davies received
this award in September 2017 with her proposal to fix
cartilage and help osteoarthritis sufferers through the
use of a gel currently being developed and tested in
the United States.
Wellington Free Ambulance
In 2017 we made a donation to support the important
services they provide to the Greater Wellington and
Wairarapa regions.
Orokonui Ecosanctuary
A wildlife sanctuary whose vision is for a healthy,
self-sustaining ecosystem, free of all introduced
mammals and comprising indigenous species that
are appropriate to the Orokonui forest, where people
can enjoy a peaceful encounter with nature, and
from which they may take recreation, refreshment,
new knowledge, new skills and a new commitment
to conservation. In addition to the financial support
pledged by Summerset for the next three years to
the Orokonui Ecosanctuary in 2017, the residents of
Summerset Bishopscourt in Dunedin jumped on board
to volunteer their time and energy by giving practical
help and resources.
Communit y Support
Paraparaumu resident, Maria, spending time in her garden

Pg 24Pg 23
Directors’ Profiles
Rob Campbell
(BA (Hons. 1st), MPhil (Econ))
Chair, Independent
Rob is the Chair of the Board. He
has over 30 years’ experience as a
director and investor.
He is currently the Chair of WEL
Group Ltd, Tourism Holdings
Ltd and a director of Precinct
Properties NZ Ltd and SKYCITY
Entertainment Group.
Rob is also an investor and director
of a number of substantial private
companies and is a director of, or
an advisor to, a number of private
investment funds.
Rob has been Chair of Summerset
since 2011, when he was appointed
to Summerset to lead its listing on
the NZX.
Dr Marie Bismark
( MBChB, LLB, MBHL, MPH,
MD, FAICD, FAFPHM)
Independent
Marie is Chair of Summerset’s
Clinical Governance Committee.
She holds degrees in law,
medicine, bioethics and public
health, and has completed a
Harkness Fellowship in Healthcare
Policy at Harvard University.
Marie works as a psychiatry
registrar with Melbourne Health,
and as an Associate Professor at
Melbourne University.
Her research focuses on patients’
rights, quality of care, and medical
regulation. Marie is an experienced
company director, serving on
the boards of GMHBA Health
Insurance and on the Veterans’
Health Advisory Panel.
Marie has been a director of
Summerset since 2013.
James Ogden
( B CA (Hons), FCA, CFinstD,
INFINZ (Cert))
Independent
James is the Chair of Summerset’s
Audit Committee. He is a director
of Vista Group International Limited
and Chair of the Investment
Committee of Pencarrow Private
Equity. In October 2017, James
joined MMC Limited as Chair and
Foundation Life (NZ) as a director.
James has had a career as an
investment banker, including six
years as Country Manager for
Macquarie Bank and five years as
a director of Credit Suisse First
Boston. He also worked in the
New Zealand dairy industry for
eight years in chief executive and
finance roles.
James holds a Bachelor of
Commerce and Administration
with First Class Honours and is a
Chartered Fellow of the Institute of
Directors and a Fellow of Chartered
Accountants Australia and New
Zealand (CAANZ).
James has been a director of
Summerset since 2011, when he
was appointed to Summerset prior
to its listing on the NZX.
Gráinne Troute
(GradDipBusStuds, CMInstD)
Independent
Gráinne is Chair of Summerset’s
Remuneration Committee. She is a
Chartered Member of the Institute
of Directors and is also a director
of Tourism Holdings Ltd and Evolve
Education Group Ltd. 
Gráinne is a professional director
with many years’ experience in
senior executive roles. She was
General Manager, Corporate
Services at SKYCITY Entertainment
Group and Managing Director of
McDonald’s Restaurants (NZ) Ltd.
She also held senior management
roles with Coopers and Lybrand
(now PwC) and HR Consultancy
Right Management.
Gráinne has vast expertise in
operating customer-focused
businesses in highly competitive
sectors. She has also spent many
years as a trustee and chair in the
not-for-profit sector, including
having been the Chair of
Ronald McDonald House Charities
New Zealand for five years. 
Gráinne has been a director of
Summerset since 2016.
Anne Urlwin
( B Com, FCA, CFInstD,
MAICD, ACIS, FNZIM)
Independent
Anne is the Chair of Summerset’s
Development and Construction
Committee. She is a professional
director with experience in a
diverse range of sectors, including
construction, health, infrastructure,
telecommunications and financial
services.
She is the Deputy Chair of
Southern Response Earthquake
Services Ltd, and a director
of Chorus Ltd and Steel and
Tube Holdings Ltd. Her other
directorships include City Rail
Link Ltd and ANZ Bank subsidiary
OnePath Life (NZ) Ltd.
Anne is a former Chair of national
commercial construction group
Naylor Love Enterprises Ltd and of
the New Zealand Blood Service.
Anne is a Chartered Accountant
with experience in senior finance
management roles in addition to
her governance roles. She is also
the Independent Chair of the Ngai
Tahu Te Runanga Audit and Risk
Committee.
Anne has been a director of
Summerset since 2014.
Dr Andrew Wong
(BHB, MbChB, MPH, FNZCPHM)
Independent
Andrew is registered with the
New Zealand Medical Council as a
Public Health Medicine specialist.
He is the Managing Director
of MercyAscot Hospitals and
HealthCare Holdings, having held
these positions since 2009.
He is also a director of a number
of medical organisations.
These cover a diverse range of
areas such as surgical hospitals,
day surgeries, diagnostic radiology
and cancer care.
Andrew has been a director of
Summerset since 2017.

Pg 26Pg 25
Executive Team
Profiles
Julian Cook
(FCPA, MAF, MSc, BSc, BA)
Chief Executive
Officer
Julian has overall
responsibility for
Summerset and is focused
on developing and
operating vibrant villages,
and ensuring that respect
for our customers is always
at the core of everything
we do.
Prior to becoming Chief
Executive in 2014, Julian was
Summerset’s Chief Financial
Officer from 2010 onwards.
He oversaw Summerset’s
transition to become a
publicly listed company
on the New Zealand Stock
Exchange and the Australian
Securities Exchange.
Julian is a member of the
Executive Committee for
the New Zealand Retirement
Villages Association and a
Fellow of CPA Australia.
Scott Scoullar
(CA ANZ, FCPA, BCA)
Deputy Chief
Executive Officer
and Chief Financial
Officer
Scott has overall
responsibility for the
financial management of
the Company. He also leads
the corporate services
functions at Summerset.
Before joining Summerset in
2014, Scott held CFO roles
at Housing New Zealand
and Inland Revenue, as well
as various roles at National
Bank.
A Chartered Accountant,
Scott was the recipient of
NZICA’s Public Sector CFO
of the Year award for 2011,
and received a Special
Commendation at the 2012
New Zealand CFO Summit
Awards. Scott is also a
Fellow of CPA Australia and
a CPA New Zealand Council
Board Member.
Fay French
(RNZcmpN)
General Manager
Sales
Fay leads our national sales
team and can be found at
Summerset’s Wellington
office or at one of our many
New Zealand villages.
Fay has a breadth of
experience across sales,
hospitality and the health
sector. Prior to joining
Summerset in 2015, she
held a sales leadership role
at a leading New Zealand
e-commerce platform
where she was responsible
for leading a team of
business development
managers. A registered
nurse, Fay has worked in
various nursing roles and
medical sales for Roche
Pharmaceuticals.
Paul Morris
(Dip. BS)
General Manager
Development Australia
Paul leads Summerset’s
investigation of
development opportunities
in the Australian market.
Paul has been with
Summerset since early
2000. He commenced
in the GM Development
Australia role in 2018
having previously been GM
Development New Zealand
since 2003.
Aaron Smail
(BE (Civil), BBS)
General Manager
Development
Aaron leads Summerset’s
development team in New
Zealand, which covers
identifying and purchasing
new sites, project
feasibilities, consents,
design concepts, master
planning and design
standards for villages.
Previous roles in his 25+
years of property and
development experience
include senior positions at
Todd Property Group and
Kiwi Property.
Aaron has been with
Summerset since 2015.
Dean Tallentire
(BSc (Hons), HND, RICS)
General Manager
Construction
Dean leads our design
management, building
consents, procurement,
cost management,
construction management
and administration support
teams in the construction
team.
Dean has extensive
construction and
development experience
and has led teams in
public and private sectors
within developer and main
contractor environments.
Prior to joining Summerset
in 2015, Dean held a
number of senior roles at
Fletcher Building.
Eleanor Young
(BSc (Hons))
General Manager
Operations and
Customer Experience
Eleanor oversees the
operational performance
across all Summerset
villages. Her focus on
service experience
and delivery ensures
Summerset’s residents
receive the highest quality
facilities and care.
Before joining Summerset
in 2016, Eleanor held senior
roles at Inland Revenue.
This included four years
as the Group Manager
of Customer Services,
managing over 2,000
staff across New Zealand
to deliver services to
customers.
Eleanor has a background
in human resources within
both the public and private
sector, having worked
in managerial roles for
the Ministry of Social
Development, Mighty River
Power and Air New Zealand.

Pg 28Pg 27
Five Year
Historical Summary
Operational
UNITFY2017FY2016FY2015FY2014FY2013
New sales of occupation rightsNo.382414333286228
Resales of occupation rightsNo.300244245172174
Total sales of occupation rightsNo.682658578458402
Development margin%27.3%22.2%20.0%15.7%13.2%
New retirement units deliveredNo.450409303261209
Retirement units in portfolioNo.3,2782,8282,4192,1161,855
Care beds in portfolioNo.806748616485442
Financial
UNITFY2017FY2016FY2015FY2014FY2013
Net operating cash flow$000207,7 16192,610140,268110,43388,590
Total assets$0002,216,3281,706,7731,363,5401,043,189844,932
Net assets$000 769,284545,615409,786332,270281,912
Underlying profit$00081,66356,55637,8 0 024,42022,154
Profit before income tax (IFRS)$000223,726145,63882,77553,99431,755
Profit for the period (IFRS)$000223,436145,48084,24554,17334,223
Dividend per sharecents 11.007.705.253.503.25
Basic earnings per sharecents102.2366.9338.9425.1615.99
Key operational and financial statistics for the five year period up to and including FY2017 are as follows:

Pg 30Pg 29
Financial
Statements
INCOME STATEMENT
For the year ended 31 December 2017
NOTE
2017
$000
2016
$000
Care fees and village services474,50557,76 9
Deferred management fees435,80428,036
Interest received4 184249
Total revenue0110,49386,054
Reversal of impairment on land915-
Fair value movement of investment property11217,954143,459
Total income328,462229,513
Operating expenses5(88,587)(71,087)
Depreciation and amortisation expense9,10(4,628)(3,736)
Total expenses(93,215)(74 ,823)
Operating profit before financing costs235,247154,690
Net finance costs6(11,521)(9,052)
Profit before income tax223,726145,638
Income tax (expense)/credit7(290)(158)
Profit for the period223,436145,480
Basic earnings per share (cents)19102.2366.93
Diluted earnings per share (cents)19100.4666.03
Net tangible assets per share (cents)193 47.56249.90
The accompanying notes form part of these financial statements.
Hans, Paraparaumu

Pg 32Pg 31
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2017

NOTE
2017
$000
2016
$000
Profit for the period223,436145,480
Fair value movement of interest rate swaps14(3,043)(1,769)
Tax on items of other comprehensive income7851496
Other comprehensive income which will be reclassified
subsequently to profit or loss for the period net of tax
(2 ,192) (1,273)
Revaluation of land and buildings918,934-
Tax on items of other comprehensive income7(5,036)-
Other comprehensive income which will not be reclassified
subsequently to profit or loss for the period net of tax
13,898-
Total comprehensive income for the period23 5,142144,207
The accompanying notes form part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2017
Share
capital
$000
Hedging
reserve
$000
Revaluation
reserve
$000
Retained
earnings
$000
TOTAL
EQUITY
$000
As at 1 January 2016244,309 (2,247)11,043156,681409,786
Profit for the period - -
-
145,480145,480
Other comprehensive income
for the period
- (1,273) - - (1,273)
Total comprehensive income
for the period
-
(1,273)- 145,480144,207
Dividends paid - -
-
(13,099)(13,099)
Shares issued4,192 - - - 4,192
Employee share plan option cost529
-

- - 529
As at 31 December 2016 249,030 (3,520)11,043 289,062545,615
As at 1 January 2017 249,030 (3,520)11,043 289,062545,615
Profit for the period- - - 223,436223,436
Other comprehensive income
for the period
- (2,192)13,898-11,706
Total comprehensive income
for the period
-
(2 ,192)13,898223,43623 5,142
Dividends paid-- -(19,857)(19,857)
Shares issued 7,56 4 - - - 7,56 4
Employee share plan option cost820 - - - 820
As at 31 December 2017257,414(5,712)24,941492,641769,284
The accompanying notes form part of these financial statements.

Pg 34Pg 33

Rob Campbell
Director and Chair of the Board
James Ogden
Director and Chair
of the Audit Committee
On behalf of the Board
Authorised for issue on 22 February 2018
STATEMENT OF FINANCIAL POSITION
As at 31 December 2017
NOTE
2017
$000
2016
$000
Assets
Cash and cash equivalents 7,56 6 8,654
Trade and other receivables825,41615,369
Interest rate swaps141,193-
Property, plant and equipment9118,50689,825
Intangible assets105,5621,562
Investment property112,058,0851,591,363
Total assets2,216,3281,706,773
Liabilities
Trade and other payables1251,85834,687
Employee benefits136,7335,002
Revenue received in advance450,49329,519
Interest rate swaps147,93 44,890
Residents’ loans15966,627801,327
Interest-bearing loans and borrowings163 47,170273,976
Deferred tax liability716,22911,757
Total liabilities1,447,0441,161,158
Net assets769,284545,615
Equity
Share capital18257,414249,030
Reserves1819,2297,523
Retained earnings492,641289,062
Total equity attributable to shareholders769,284545,615
The accompanying notes form part of these financial statements.
STATEMENT OF CASH FLOWS
For the year ended 31 December 2017
2017
$000
2016
$000
Cash flows from operating activities
Receipts from residents for care fees and village services 72,424 57, 20 8
Interest received184249
Payments to suppliers and employees(80,565)(68,563)
Receipts for residents’ loans - new occupation right agreements181,574176,938
Net receipts for residents’ loans - resales of occupation right agreements34,09926,778
Net cash flow from operating activities 2 07,7 1 6 192,610
Cash flows from investing activities
Payments for investment property:
land (27,8 4 0) (18,461)
construction of new villages (202,744) (153,042)
refurbishments in established villages (3,937) (2,872)
Payments for property, plant and equipment:
construction of new care centres(10,319)(15,036)
refurbishments in established care centres (752)(467)
other(1,643)(3,938)
Purchase of intangible assets(4,457)(1,013)
Capitalised interest paid(5,802)(5,028)
Net cash flow from investing activities(2 57, 4 9 4)(199,857)
Cash flows from financing activities
Net (repayments)/proceeds from bank borrowings (26,136) 25,764
Proceeds from issue of retail bonds100,000 -
Repayment of limited recourse loans-1,520
Proceeds from issue of shares7,56 44,192
Interest paid on bank loans and retail bonds(12,881)(9,158)
Dividends paid(19,857)(13,099)
Net cash flow from financing activities48,690 9,219
Net increase in cash and cash equivalents (1,088) 1,972
Cash and cash equivalents at beginning of period8,6546,682
Cash and cash equivalents at end of period7, 5 6 68,654
The accompanying notes form part of these financial statements.

Pg 36Pg 35
RECONCILIATION OF OPERATING RESULTS
AND OPERATING CASH FLOWS
2017
$000
2016
$000
Net profit for the period223,436145,480
Adjustments for:
Depreciation and amortisation expense4,6283,736
Reversal of impairment on land(15)-
Loss/(gain) on disposal of property, plant and equipment82(37)
Fair value movement of investment property(217,954)(143,459)
Net finance costs paid11,5219,052
Deferred tax expense290158
Deferred management fee amortisation(35,804)(28,036)
Employee share plan option cost820529
(236,432)(158,057)
Movements in working capital
(Decrease)/increase in trade and other receivables (9,824) 906
Increase in employee benefits1,731688
Increase in trade and other payables8771,456
Increase in residents’ loans net of non-cash amortisation2 27,928202,137
220,712205,187
Net cash flows from operating activities2 07,7 1 6192,610
The accompanying notes form part of these financial statements.
1. Summary of accounting policies
Reporting entity
The consolidated financial statements presented for the year ended 31 December 2017 are for Summerset Group Holdings
Limited (the ‘Company’) and its subsidiaries (collectively referred to as the ‘Group’). The Group develops, owns and operates
integrated retirement villages in New Zealand, including independent living, care centres with resthome and hospital-level
care and memory care centres.
Summerset Group Holdings Limited is registered in New Zealand under the Companies Act 1993 and is a FMC Reporting
Entity for the purposes of the Financial Markets Conduct Act 2013. The reporting entity is listed on the New Zealand Stock
Exchange (NZX), being the Company’s primary exchange, and is listed on the Australian Securities Exchange (ASX) as a
foreign exempt listing.
Basis of preparation
These consolidated financial statements have been prepared in accordance with generally accepted accounting practice in
New Zealand (NZ GAAP), except for note 2: Non-GAAP underlying profit, which is presented in addition to NZ GAAP compliant
information. NZ GAAP in this instance refers to New Zealand equivalents to International Financial Reporting Standards (NZ
IFRS) as appropriate for profit-oriented entities. These financial statements also comply with International Financial Reporting
Standards.
These financial statements are expressed in New Zealand dollars, which is the Company’s and Group’s functional currency. All
financial information has been rounded to the nearest thousand, unless otherwise stated.
All amounts are shown exclusive of goods and services tax (GST) except for trade receivables and trade payables, and except
where the amount of GST incurred is not recoverable. When this occurs GST is recognised as part of the cost of the asset or
as an expense as applicable.
The measurement basis adopted in the preparation of these financial statements is historical cost with the exception of the
items noted below.
• Interest rate swaps – Note 14
• Investment property – Note 11
• Land and buildings – Note 9
• Retail bonds – Note 16
Basis of consolidation
Subsidiaries are fully consolidated at the date on which the Group obtains control, and continue to be consolidated until the
date when such control ceases. The financial statements are prepared for the same reporting period as the parent company,
Summerset Group Holdings Limited, using consistent accounting policies. All intra-group transactions and balances arising
within the Group are eliminated in full.
For the year ended 31 December 2017
Notes to the
Financial Statements

Pg 38Pg 37
Summary of accounting policies (continued)
All subsidiary companies are 100% owned and incorporated in New Zealand with a balance date of 31 December.
The subsidiaries are:
Summerset Care LimitedSummerset Villages (Lower Hutt) Limited
Summerset Holdings LimitedSummerset Villages (Manukau) Limited
Summerset LTI Trustee LimitedSummerset Villages (Napier) Limited
Summerset Management Group LimitedSummerset Villages (Nelson) Limited
Summerset Properties LimitedSummerset Villages (New Plymouth) Limited
Summerset Villages (Aotea) LimitedSummerset Villages (Palmerston North) Limited
Summerset Villages (Avonhead) LimitedSummerset Villages (Paraparaumu) Limited
Summerset Villages (Casebrook) LimitedSummerset Villages (Parnell) Limited
Summerset Villages (Dunedin) LimitedSummerset Villages (Richmond) Limited
Summerset Villages (Ellerslie) LimitedSummerset Villages (Rototuna) Limited
Summerset Villages (Hamilton) LimitedSummerset Villages (St Johns) Limited
Summerset Villages (Hastings) LimitedSummerset Villages (Taupo) Limited
Summerset Villages (Havelock North) LimitedSummerset Villages (Trentham) Limited
Summerset Villages (Hobsonville) LimitedSummerset Villages (Wanganui) Limited
Summerset Villages (Karaka) LimitedSummerset Villages (Warkworth) Limited
Summerset Villages (Katikati) LimitedSummerset Villages (Wigram) Limited
Summerset Villages (Kenepuru) LimitedWelhom Developments Limited
Summerset Villages (Levin) Limited
Accounting policies
Accounting policies that summarise the measurement basis used and are relevant to the understanding of the financial
statements are provided throughout the accompanying notes.
The accounting policies adopted have been applied consistently throughout the periods presented in these financial
statements.
The Group adopted all mandatory new and amended NZ IFRS Standards and Interpretations. These new and amended NZ IFRS
Standards and Interpretations had a disclosure impact only on these financial statements. The Group chose to early adopt NZ
IFRS 9 – Financial Instruments from 1 July 2017 prior to the issue of retail bonds by the Company in July 2017 and related hedging
transactions being entered into. Certain note disclosures in the financial statements have been updated as a result of the early
adoption. There was no material impact on transition.
There are no new standards, amendments or interpretations that have been issued and are not yet effective, that are expected
to have a significant impact on the Group.
NZ IFRS Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been
adopted by the Group for the annual report period ending 31 December 2017 are outlined below:
NZ IFRS 15 – Revenue from contracts with customers
This standard will replace the current revenue recognition guidance in NZ IAS 18 – Revenue and NZ IAS 11 – Construction
contracts. This standard requires an entity to recognise revenue to depict the transfer of promised goods or services to
customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods
or services. This standard has been assessed as having no material impact for the Group due to the nature of our transactions.
Care fees and village services are consumed within the same period as they are invoiced and deferred management fee
revenue is not impacted as it is covered by NZ IFRS 16 – Leases. NZ IFRS 15 is effective 1 January 2018.
NZ IFRS 16 – Leases
This standard will replace NZ IAS 17 – Leases. NZ IFRS 16 requires a lessee to recognise a lease liability reflecting future lease
payments and a ‘right-of-use asset’ for virtually all lease contracts. The impact of this standard is not expected to be significant
for the Group as operating lease commitments are not a material amount for the Group ($12.8 million of operating lease
commitments relative to $769.3 million net assets as at 31 December 2017). The operating lease commitments disclosed will
be discounted and recorded as right-of-use assets with corresponding lease liabilities and will be adjusted for the Group’s
assessment at the inception of each lease of the likelihood of exercising any renewal options. NZ IFRS 16 is effective 1 January
2019.
Critical accounting estimates and judgements
In preparing the financial statements, management has made estimates and assumptions about the future that affect the
reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and
expenses during the period. Actual results may differ from those estimates.
Estimates and assumptions are regularly evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. The principal areas of judgement in
preparing these financial statements are described in the following notes:
• Deferred management fee – Note 4
• Deferred taxation – Note 7
• Interest rate swaps – Note 14
• Revenue in advance – Note 4
• Valuation of investment property – Note 11
• Valuation of land and buildings – Note 9
• Valuation of retail bonds – Note 16
Comparative information
Comparatives have been updated to reflect revised classifications in cash flow activities. No other comparatives have been
restated in the current year.
Notes to the Financial Statements (continued)

Pg 40Pg 39
Notes to the Financial Statements (continued)
2. Non-GAAP underlying profit
REF
2017
$000
2016
$000
Profit for the period
223,436145,480
Less fair value movement of investment propertya)(217,954)(143,459)
Add/(less) impairment/(reversal of impairment) on landb)(15)-
Add realised gain on resalesc)24,93615,423
Add realised development margind)50,97038,954
Add/(less) deferred tax expense/(credit)e)290158
Underlying profit81,66356,556
Underlying profit differs from NZ IFRS profit for the period. The Directors have provided an underlying profit measure to assist
readers in determining the realised and non-realised components of fair value movement of investment property and tax
expense in the Group’s income statement. The measure is used internally in conjunction with other measures to monitor
performance and make investment decisions. Underlying profit is an industry wide measure which the Group uses consistently
across reporting periods.
This statement presented is for the Group, prepared in accordance with the Basis of preparation: underlying profit described
below.
Basis of preparation: underlying profit
Underlying profit is determined by taking profit for the period determined under NZ IFRS, adjusted for the impact of the
following:
a) Less fair value movement of investment property: reversal of investment property valuation changes recorded in NZ
IFRS profit for the period, which comprise both realised and non-realised valuation movements. This is reversed and
replaced with realised development margin and realised resale gains during the period, effectively removing the unrealised
component of the fair value movement of investment property.
b) Add/(less) impairment/(reversal of impairment) of land and buildings: remove the impact of non-cash care centre valuation
changes recorded in NZ IFRS reported profit after tax. Care centres are valued at least every three years (most recently
valued as at 31 December 2017), with fair value gains flowing through to the revaluation reserve unless the gain offsets a
previous impairment to fair value that was recorded in NZ IFRS profit for the period. Where there is any impairment of a care
centre, or reversal of a previous impairment that impacts NZ IFRS profit for the period, this is eliminated for the purposes of
determining underlying profit.
c) Add realised gain on resales: add the realised gains across all resales of occupation rights during the period. The realised
gain for each resale is determined to be the difference between the licence price for the previous occupation right for a
retirement unit and the occupation right resold for that same retirement unit during the period. Realised resale gains are
a measure of the cash generated from increases in selling prices of occupation rights to incoming residents, less cash
amounts repaid to vacated residents for the repayment of the price of their refundable occupation right purchased in an
earlier period. Realised resale gains exclude deferred management fees and refurbishment costs.
d) Add realised development margin: add realised development margin across all new sales of occupation rights during
the period, with the recognition point being the cash settlement. Realised development margin is the margin earned on
the first time sale of an occupation right following the development of a retirement unit. The margin for each new sale is
determined to be the licence price for the occupation right, less the cost of developing that retirement unit.
Components of the cost of developing retirement units include directly attributable construction costs and a proportionate
share of the following costs:
• infrastructure costs
• land cost on the basis of the purchase price of the land
• interest during the build period
• head office costs directly related to the construction of retirement units
All costs above include non-recoverable GST.
Development margin excludes the costs of developing common areas of the main building within the retirement village
(including a share of the proportionate costs listed above). This is because they are assets that support the sale of
occupation rights for not just the new sale but for all subsequent resales. It also excludes the costs of developing care
centres, which are treated as property, plant and equipment for accounting purposes. These costs are both excluded in
line with industry standard.
e) Add/(less) deferred tax expense/(credit): reversal of the impact of deferred taxation.
Underlying profit does not include any adjustments for abnormal items or fair value movements on financial instruments that
are included in NZ IFRS profit for the period.
3. Segment reporting
The Group operates in one industry, being the provision of integrated retirement villages in New Zealand. The services provided
across all of the Group’s villages are similar, as are the type of customer and the regulatory environment. On this basis, the
Group has one reportable segment, and the Group results are the same as the results of the reportable segment. All resource
allocation decisions across the Group are made to optimise the consolidated Group’s result.
The Ministry of Health is a significant customer of the Group, as the Group derives care fee revenue in respect of eligible
government subsidised aged care residents. Fees earned from the Ministry of Health for the year ended 31 December 2017
amounted to $25.0 million (2016: $20.4 million). No other customers individually contribute a significant proportion of the Group
revenue. All revenue is earned in New Zealand.
4. Revenue
Care fees and villages services income is recognised over the period in which the service is rendered.
Deferred management fees, which entitle residents to accommodation and the use of the community facilities within the
village, are recognised over the period of service, being the greater of the expected period of tenure or the contractual right to
revenue. The expected periods of tenure, being based on historical Group averages, are estimated to be seven to eight years
for villas, five years for apartments and three years for serviced apartments and memory care apartments. Where the deferred
management fees over the contractual period exceeds the amortisation of the deferred management fee based on estimated
tenure, the amount is recorded as a liability (revenue in advance). Deferred management fees are recognised on a gross basis in
the receipts for residents’ loans section of the statement of cash flows.
Interest income is recognised in the income statement as it accrues, using the effective interest method.

Pg 42Pg 41
5. Operating expenses

2017
$000
2016
$000
Employee expenses50,48740,455
Property-related expenses13,86411,607
Other operating expenses24,23619,025
Total operating expenses88,58771,087
Other operating expenses include:
Remuneration paid to auditors:
Audit and review of financial statements185193
Audit of the underlying profit disclosures4-
Market analysis advisory services provided to the Group291-
Donations25-
Rent1,029647
6. Net finance costs
Interest expense comprises interest payable on borrowings and is calculated using the effective interest rate method.
2017
$000
2016
$000
Interest on bank loans, retail bonds and related fees 14,626 11,491
Interest on interest rate swaps3,2732,312
Capitalised finance costs (6,390)(4,782)
Fair value movement of interest rate swaps designated
as fair value through profit or loss
(1,193) -
Fair value movement of retail bonds designated as fair
value through profit or loss
1,171-
Finance charges on finance leases3431
Net finance costs11,5219,052
Borrowing costs are capitalised for property, plant and equipment (Note 9) and investment property (Note 11) if they are directly
attributable to the construction or production of a qualifying asset. Capitalisation of borrowing costs commences when the
activities to prepare the asset commence and expenditures and borrowing costs are incurred. Capitalisation of borrowing
costs continues until the assets are substantially ready for their intended use.
Borrowing costs of $6.4 million (2016: $4.8 million) have been capitalised during the period of construction in the current year.
The weighted average capitalisation rate on funds borrowed is 3.57% per annum (2016: 3.58% per annum).
The retail bonds are designated in a fair value hedging relationship. Details of fair value hedging are included in note 14.
Notes to the Financial Statements (continued)
7. Income tax
Tax expense comprises current and deferred tax, calculated using the tax rate enacted or substantively enacted at balance date
and any adjustment to tax payable in respect of prior years. Tax expense is recognised in the income statement except when it
relates to items recognised directly in the statement of comprehensive income, in which case the tax expense is recognised in
the statement of comprehensive income.
Deferred tax expense is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the amounts used for taxation purposes. A deferred tax asset is recognised only to the extent it
is probable it will be utilised. Temporary differences for the initial recognition of assets or liabilities that affect neither accounting
nor taxable profit, unless they arise from business combination, are not provided for.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the
Group intends to settle its current tax assets and liabilities on a net basis.
(a) Income tax recognised in the income statement
2017
$000
2016
$000
Tax expense comprises:
Deferred tax relating to the origination and reversal of temporary differences290158
Total tax expense/(credit) reported in income statement290158
The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the
financial statements as follows:
2017
$000

%
2016
$000

%
Profit before tax223,726145,638
Income tax using the corporate tax rate62,64328.0%40,77928.0%
Capitalised interest(1,789)(0.8%)(1,339)(0.9%)
Other non-deductible expenses2240.1%1480.1%
Non-assessable investment property revaluations (61,027)(27.3%)(40,168)(27.6%)
Non-assessable reversal of impairment(4)0.0%-0.0%
Other -0.0%4150.3%
Prior period adjustments2440.1%3230.2%
Total income tax expense/(credit)2900.1%1580.1%

(b) Amounts charged or credited to other comprehensive income
2017
$000
2016
$000
Tax expense comprises:
Net gain on revaluation of land and buildings 5,036-
Fair value movement of interest rate swaps(851)(496)
Total tax credit reported in statement of comprehensive income4,18 5(496)

Pg 4 4Pg 43
Notes to the Financial Statements (continued)
(c) Imputation credit account
There were no imputation credits received or paid during the year and the balance at 31 December 2017 is nil (2016: nil).
(d) Deferred tax
Movement in the deferred tax balance comprises:
Balance
1 Jan
2017
$000
Recognised
in income
$000
Recognised
in OCI*
$000
Balance
31 Dec
2017
$000
Property, plant and equipment 10,105 5005,03615,641
Investment property16,0973,267-19,363
Revenue in advance(8,266)(5,872)-(14,138)
Interest rate swaps(1,371)-(851)(2,222)
Income tax losses not yet utilised(3,578)2,053-(1,525)
Other items(1,230)341-(890)
Net deferred tax liability11,7572904,18416,229
Balance
1 Jan
2016
$000
Recognised
in income
$000
Recognised
in OCI*
$000
Balance
31 Dec
2016
$000
Property, plant and equipment 10,080 25 - 10,105
Investment property 12,896 3,201 - 16,097
Revenue in advance (5,681) (2,585)- (8,266)
Interest rate swaps (875)- (496) (1,371)
Income tax losses not yet utilised (3,620)42-(3,578)
Other items (705)(525)-(1,230)
Net deferred tax liability 12,095 158 (496)11,757
* Other comprehensive income
Income tax (continued)
8. Trade and other receivables
Trade and other receivables are stated at amortised cost less impairment losses. Trade receivables are not significant on an
individual basis and are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest rate, less an allowance for impairment. The allowance for doubtful debts is made up of expected credit losses based
on assessment of trade receivables debt at the individual level for impairment, plus an additional allowance on the remaining
balance for potential credit losses not yet identified. The expected credit losses allowance requirement on the remaining
balance has been set at 2%. There has been no material change in the allowance for doubtful debts from prior year.
Sundry debtors include amounts owing for occupation right agreements settled but not yet paid in full at balance date.
2017
$000
2016
$000
Trade receivables 2,0592,100
Allowance for doubtful debts(59)(96)
2,0002,004
Prepayments2,0281,564
Accrued income777617
Sundry debtors20,61111,184
Total trade and other receivables 25,416 15,369
9. Property, plant and equipment
Property, plant and equipment includes care centres, both complete and under development, and corporate assets held.
All property, plant and equipment is initially recorded at cost. Cost includes expenditure that is directly attributable to the
acquisition of the asset. The cost of self-constructed assets includes material and direct labour, and any other costs directly
attributable to bringing the asset to its working condition for its intended use.
Subsequent to initial recognition, land and buildings related to care centres are carried at a revalued amount, which is
the fair value at the date of the revaluation less any subsequent accumulated depreciation on buildings and accumulated
impairment losses, if any, since the assets were last revalued. Other plant and equipment is subsequently measured at cost less
accumulated depreciation and impairment losses, if any. Where an item of plant and equipment is disposed of, the gain or loss
recognised in the income statement is calculated as the difference between the net sales price and the carrying amount
of the asset.
Fair value is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged
between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction as at the valuation
date.
Any revaluation surplus is recognised in other comprehensive income unless it reverses a revaluation decrease of the same
asset previously recognised in the income statement. Any revaluation
deficit is recognised in the income statement unless
it directly offsets a previous surplus in the same asset in other comprehensive income. Any accumulated depreciation at
revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued
amount of the asset. Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained
earnings. Independent valuations are performed with sufficient regularity to ensure that the carrying amount does not differ
materially from the asset’s fair value at the balance sheet date.
Note 6 provides details on capitalised borrowing costs.

Pg 46Pg 45
Depreciation is charged to the income statement on a straight-line (SL) or diminishing value (DV) basis over the estimated useful
life of each item of property, plant and equipment, with the exception of land, which is not depreciated. Depreciation methods,
useful lives and residual values are reassessed at the reporting date. Major depreciation rates are as follows:
Buildings (2% DV or SL)Furniture and fittings (8% to 40% DV or SL)
Motor vehicles (20% to 31% DV or SL)Plant and equipment (8% to 67% DV or SL)
Land
$000
Buildings
$000
Motor
vehicles
$000
Plant and
equipment
$000
Furniture
and fittings
$000
TOTAL
$000
Cost
Balance at 1 January 2016 3,080 64,316 2,7919,3405,04684,573
Additions - 12,0893212,4341,26916,113
Disposals - -(356)--(356)
Reclassification - 4,900(1,472)(4,080)(1,533)(2,185)
Balance at 31 December 2016 3,080 81,305 1,284 7,6 9 4 4,782 98,145
Additions - 10,527 2222,5302,07715,356
Disposals - (35)(211)(784)(664)(1,694)
Reclassification(250)(650)---(900)
Reversal of impairment through
profit or loss
15----15
Revaluations through other
comprehensive income
95013,544---14,494
Balance at 31 December 2017 3,795104,6911,2959,4406,195125,416
Accumulated depreciation
Balance at 1 January 2016 - 1,2281,6723,12 91,5037,532
Depreciation charge for the year - 1,5222391,0004713,232
Disposals - - (346)--(346)
Reclassification - (8) (934)(854)(302)(2,098)
Balance at 31 December 2016
-
2 ,742 6313,2751,6728,320
Depreciation charge for the year
- 1,7172191,5116614,108
Disposals - (18) (208)(698)(153)(1,077)
Reclassification - (4,441)---(4,441)
Balance at 31 December 2017
-
-6424,0882 ,1806,910
Carrying amounts
As at 31 December 2016 3,080 78,5636534,4193,11089,825
As at 31 December 20173,795104,6916535,3524,015118,506
Notes to the Financial Statements (continued)
Property, plant and equipment (continued)
Revaluations
An independent valuation to determine the fair value of all completed care centres which are classified as land and buildings
was carried out as at 31 December 2017 by CBRE Limited, an independent registered valuer. Valuations are carried out every
three years unless there are indicators of a significant change in fair value. CBRE determine the fair value of all care centre
assets using an earnings-based multiple approach. Significant assumptions used in the most recent valuation include market
value per care bed of between $68,000 and $173,000 and individual unit earning capitalisation rate of between
12.0% and 15.0%.
As the fair value of land and buildings is determined using inputs that are unobservable, the Group has categorised property,
plant and equipment as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.
Sensitivity analysis to significant changes in unobservable inputs within Level 3 of the hierarchy
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of
the entity’s portfolios of land and buildings are the capitalisation rates applied to individual unit earnings and the market value
per care bed. A significant decrease (increase) in the capitalisation rate would result in a significantly higher (lower) fair value
measurement and a significant increase (decrease) in the market value per care bed would result in a significantly higher (lower)
fair value measurement.
Cost model
If land and buildings were measured using the cost model, the carrying amounts would be as follows:
20172016
Land
$000
Buildings
$000
TOTAL
$000
Land
$000
Buildings
$000
TOTAL
$000
Cost2,865 83,64886,513 3,115 73,15576,270
Accumulated depreciation and
impairment losses
- (11,936)(11,936) - (10,218)(10,218)
Net carrying amount2,86571,71274 ,57 73,11562,93766,052
Security
At 31 December 2017, all care centres held by retirement villages registered under the Retirement Villages Act 2003 are subject
to a registered first mortgage in favour of the Statutory Supervisor.

Pg 48Pg 47
10. Intangible assets
Intangible assets acquired by the Group are measured at cost less accumulated amortisation and accumulated impairment
losses. Amortisation is recognised in the income statement on a diminishing value or straight-line basis over the estimated
useful lives of intangible assets from the date that they are available for use. The intangible assets are software. The major
amortisation rate at 31 December 2017 is 20% straight-line.
TOTAL
$000
Cost
Balance at 1 January 2016 2,801
Additions 1,014
As at 31 December 2016 3,815
Additions 4,522
Disposals (65)
As at 31 December 20178,272
Accumulated amortisation
Balance at 1 January 2016 1,749
Amortisation charge for the year 504
As at 31 December 2016 2,253
Amortisation charge for the year 520
Disposals (63)
Balance at 31 December 2017 2,710
Carrying amounts
As at 31 December 2016 1,562
As at 31 December 2017 5,562
11. Investment property
Investment property is held to earn current and future rental income. It comprises land and buildings and associated equipment
and furnishings relating to independent living units, serviced and memory care apartments and common facilities in the
retirement village. Investment property includes buildings under development. Initial recognition of investment property is at
cost and it is subsequently measured at fair value with any change in fair value recognised in the income statement.
Land acquired with the intention of constructing investment property on it is classified as investment property from the date of
acquisition.
Rental income from investment property, being deferred management fees, is accounted for as described in Note 4.
Depreciation is not charged on investment property.
Note 6 provides details on capitalised borrowing costs

2017
$000
2016
$000
Balance at beginning of period 1,591,363 1,261,170
Additions 248,856 186,747
Disposals(88) (13)
Fair value movement:
Realised75,906 54,377
Unrealised 142,048 89,082
Total investment property 2,058,085 1,591,363
Development land measured at fair value152,750140,900
Retirement villages measured at fair value1,733,8281,328,126
Retirement villages under development measured at cost171,507122,337
Total investment property2,058,0851,591,363
Manager’s net interest1,091,458790,036
Liability for residents’ loans966,627801,327
Total investment property2,058,0851,591,363
The Group has deemed it is unable to reliably determine the fair value of non-land retirement villages under development at
31 December 2017 and therefore these are carried at cost. This equates to $171.5 million of investment property (2016: $122.3
million).
The fair value of investment property as at 31 December 2017 was determined by CBRE Limited, an independent registered
valuer. The fair value of the Group’s investment property is determined on a semi-annual basis, based on market values, being
the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a
willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently
and without compulsion. To assess the fair value of the Group’s interest in the village, CBRE has undertaken a cash flow analysis
to derive a net present value. There has been no change in valuation technique since the previous period.
Significant assumptions used by the valuer include a discount rate of between 13.5% and 16.0% (2016: 13.75% to 16.0%) and a
long term nominal house price inflation rate of between 0% and 3.5% (2016: 0% to 3.5%). Other assumptions used by the valuer
include the average entry age of residents and occupancy periods of retirement units.
As the fair value of investment property is determined using inputs that are unobservable, the Group has categorised
investment property as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.
Sensitivity analysis to significant changes in unobservable inputs within Level 3 of the hierarchy
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of
the entity’s portfolios of investment property are the discount rate, the long-term nominal house price inflation rate, the average
entry age of residents and the occupancy period of retirement units. A significant decrease (increase) in the discount rate or
the occupancy period of retirement units would result in a significantly higher (lower) fair value measurement and a significant
increase (decrease) in the average entry age of residents or the long-term nominal house price inflation rate would result in a
significantly higher (lower) fair value measurement.
Notes to the Financial Statements (continued)Notes to the Financial Statements (continued)

Pg 50Pg 49
Operating expenses
Direct operating expenses arising from investment property that generated rental income during the period amounted to $26.1
million (2016: $21.9 million). There were nine retirement units excluding work in progress (2016: eight) in investment property
that did not generate rental income during the period.
Security
At 31 December 2017, all investment property relating to registered retirement villages under the Retirement Villages Act
2003 are subject to a registered first mortgage in favour of the Statutory Supervisor to secure the Group’s obligations to the
occupation right agreement holders.
12. Trade and other payables
Trade and other payables are carried at amortised cost. Due to their short-term nature they are not discounted.
2017
$000
2016
$000
Trade payables 1,752 2,966
Accruals39,62623,458
Other payables10,4808,263
Total trade and other payables51,85834,687
13. Employee benefits
A provision is made for benefits accruing to employees in respect of wages, salaries, annual leave and short-term incentives
when it is probable that settlement will be required and the amount can be estimated reliably.
2017
$000
2016
$000
Holiday pay accrual 3,899 2,781
Other employee benefits2,8342,221
Total employee benefits6,7335,002
14. Interest rate swaps
The Group uses interest rate swaps to manage its risk associated with interest rate fluctuations. Interest rate swaps are initially
recognised at fair value on the date a contract is entered into and are subsequently measured at fair value on each reporting
date. The fair values of the interest rate swaps are determined based on cash flows discounted to present value using current
market interest rates.
Cash flow hedges
The Group has entered into interest rate swaps to manage its interest rate risk in relation to the secured bank loans. These
interest rate swaps qualify for cash flow hedge accounting. When interest rate swaps meet the criteria for cash flow hedge
accounting, the effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income,
while the ineffective portion is recognised in the income statement. Amounts taken to reserves are transferred out of reserves
and included in the measurement of the hedged transaction when the forecast transaction occurs. When interest rate swaps do
not meet the criteria for cash flow hedge accounting, all movements in fair value of the hedging instrument are recognised in
the income statement.
Under the interest rate swap agreements that qualify for cash flow hedge accounting, the Group has a right to receive interest
at variable rates and to pay interest at fixed rates. At 31 December 2017, the Group had interest rate swap agreements in place
with a total notional principal amount of $319 million (2016: $251 million). Of the swaps in place, at 31 December 2017 $219
million (2016: $179 million) are being used to cover approximately 89% (2016: 65%) of the bank loans and retail bonds principal
outstanding. These agreements effectively change the Group’s interest exposure on the principal covered by the interest rate
swaps from a floating rate to fixed rates, which range between 2.78% and 4.47% (2016: 3.54% and 4.47%).
The fair value of these agreements at 31 December 2017 is a $7.9 million liability, comprised of $7.9 million of swap liabilities and
$0.0 million of swap assets (2016: liability of $4.9 million, comprised of $5.8 million of swap liabilities and $0.9 million of swap
assets). Of this, a liability of $333,000 (2016: $264,000) is estimated to be current. The agreements cover notional amounts for
a term of between one and ten years.
Fair value hedges
The Group has entered into interest rate swaps to manage its interest rate risk in relation to $100 million of retail bonds issued
by the Group in July 2017. The hedge is for the future fair value movements in the retail bonds as a result of market interest rate
movements. The Group has designated all of its $100 million retail bonds in fair value hedge relationships.
Both the hedging instrument (interest rate swap) and the hedged risk are recognised at fair value. The change in the fair value
of both items offset in the statement of comprehensive income to the extent the hedging relationship is effective. The increase
in fair value of the interest rate swaps of $1.2 million (2016: nil) has been recognised in finance costs and has been offset with a
similar fair value loss on the retail bonds to leave an ineffective amount in finance costs of $22,000 (2016: nil).
Under the interest rate swap agreements that qualify for fair value hedge accounting, the Group has a right to receive interest at
fixed rates and to pay interest at floating rates. At 31 December 2017, the Group had interest rate swap agreements in place with
a total notional principal amount of $100 million (2016: nil). Of the interest rate swaps in place, at 31 December 2017 $100 million
(2016: nil) are being used to cover 100% of the fixed interest rate retail bonds outstanding.
The notional principal amounts and the period of expiry of the interest rate swap contracts are as follows:

2017
$000
2016
$000
Less than 1 year 27,000 22,000
Between 1 and 2 years37,00027,000
Between 2 and 3 years40,00037,000
Between 3 and 4 years 25,000 40,000
Between 4 and 5 years50,00025,000
Between 5 and 6 years*110,00030,000
Between 6 and 7 years20,00010,000
Between 7 and 8 years25,00020,000
Between 8 and 9 years45,00025,000
Between 9 and 10 years40,00015,000
To t a l419,000251,000
*includes $100 million of receive fixed pay floating interest rate swaps
Notes to the Financial Statements (continued)
Investment property (continued)

Pg 52Pg 51
15. Residents’ loans
An occupation right agreement confers a right of occupancy to a villa, apartment, serviced apartment or memory care
apartment. The consideration received on the grant of an occupation right agreement is allocated to the resident’s loan in
full. Residents’ loans are amounts payable under occupation right agreements. These loans are non-interest-bearing and
are payable when both an occupation right agreement is terminated and there has been settlement of a new occupation
right agreement for the same retirement unit and the proceeds from the new settlement have been received by the Group.
Residents’ loans are initially recognised at fair value and subsequently measured at amortised cost.
The Group holds a contractual right to set-off the deferred management fee receivable on termination of an agreement against
the resident’s loan to be repaid. Residents’ loans are therefore recognised net of the deferred management fee receivable
on the balance sheet. Deferred management fees are payable by residents in consideration for the supply of accommodation
and the right to share in the use of community facilities. Deferred management fees are paid in arrears with the amount
payable calculated as a percentage of the resident’s loan amount as per the resident’s occupation right agreement. Deferred
management fee receivable is calculated and recorded based on the current tenure of the resident and the contractual right
to deferred management fee earned at balance date. Refer to Note 4 for further detail on recognition of deferred management
fee revenue.
2017
$000
2016
$000
Balance at beginning of period924,848732,578
Net receipts for residents’ loans - resales of occupation right agreements27,6 4715,332
Receipts for residents’ loans - new occupation right agreements181,574176,938
Total gross residents’ loans1,134,069924,848
Deferred management fees receivable(167,4 42)(123,521)
Total residents’ loans966,627801,327
Note 17 provides a split between current and non-current residents’ loans.
16. Interest-bearing loans and borrowings
Interest-bearing loans and borrowings include secured bank loans and unsubordinated fixed rate retail bonds.
Interest-bearing loans and borrowings are recognised initially at fair value net of directly attributable transaction costs.
Subsequent to initial recognition, the borrowings are measured at amortised cost with any difference between the initial
recognised amount and the redemption value being recognised in profit or loss over the period of the borrowing using
the effective interest rate. The retail bonds are designated in fair value hedge relationships, which means that any change in
market interest rates result in a change in the fair value adjustment on that debt. Retail bonds and bank issue expenses,
fees and other costs incurred in arranging finance are capitalised and amortised over the term of the relevant debt instrument
or debt facility.
Coupon
2017
$000
2016
$000
Repayable after 12 months
Secured bank loansFloating247,8 3 9273,976
Retail bonds4.78%100,000-
Total loans and borrowings at face value3 47, 8 3 9273,976
Issue costs for retail bonds capitalised during the period(2,007)-
Issue costs for retail bonds amortised during the period167-
Total loans and borrowings at amortised cost345,999273,976
Issue costs for retail bonds capitalised during the period1,171-
Carrying value of interest-bearing loans and borrowings3 47,170273,976
The non-cash movements included in the table above are the issue costs for retail bonds amortised during the period and the
fair value adjustment on hedged borrowings.
The weighted average interest rate for the year to 31 December 2017 was 3.57% (2016: 3.58%). This includes the impact of
interest rate swaps (see Note 14).
The secured bank loan facility at 31 December 2017 has a maximum of $500.0 million (2016: $450.0 million). Lending of $285.0
million expires in August 2020 and $215.0 million of lending expires in March 2022.
The retail bonds were issued for $100.0 million and have a maturity date of 11 July 2023. The retail bonds are listed on the NZX
Debt Market (NZDX) with the ID SUM010.
Security
The banks loans and retail bonds rank equally with the Group’s other unsubordinated obligations and are secured by the
following securities held by a security trustee:
• a first ranking registered mortgage over all land and permanent buildings owned (or leased under a registered lease) by
guaranteeing Group members that are not registered retirement villages;
• a second ranking registered mortgage over the land and permanent buildings owned (or leased under a registered lease)
by each registered retirement village that is a guaranteeing Group member (behind a first ranking registered mortgage in
favour of the Statutory Supervisor); and
• the General Security Deed, which secures all assets of the guaranteeing Group members, but in respect of which the
Statutory Supervisor has first rights to the proceeds of security enforcement against all assets of the registered retirement
villages to which the security trustee is entitled.
Notes to the Financial Statements (continued)

Pg 54Pg 53
17. Financial instruments
Exposure to credit, market and liquidity risk arises in the normal course of the Group’s business. The Board reviews and agrees
on policies for managing each of these risks as summarised below. The Group has no exposure to foreign currency or any other
substantial market price risk.
Categories of financial instruments
Financial assets
All financial assets of the Group are classified at amortised cost except for interest rate swaps which are classified as fair value
through profit and loss.
Financial liabilities
All financial liabilities except interest rate swaps and retail bonds are classified as liabilities at amortised cost. Refer to note 16 for
detail on the retail bonds.
Credit risk
Credit risk is the risk of financial loss to the Group if a resident or counterparty to a financial instrument fails to meet their
contractual obligations. The Group’s exposure to credit risk relates to receivables from residents and bank balances. The Group
manages its exposure to credit risk. The Group’s cash is held with its principal banker, with the level of exposure to credit risk
considered minimal with low levels of cash generally held. Receivables balances are monitored on an ongoing basis and funds
are placed with high-credit quality financial institutions. The level of risk associated with sundry debtors is considered minimal.
The Group does not require collateral from its debtors and the Directors consider the Group’s exposure to any concentration of
credit risk to be minimal.
The carrying amount of financial assets represents the Group’s maximum credit exposure. The status of trade receivables is as
follows:
20172016
Gross
receivable

$000
Impairment

$000
Gross
receivable

$000
Impairment

$000
Not past due1,931(29)1,797-
Past due 31 to 60 days72(2)162-
Past due 61 to 90 days27(3)47(2)
Past due more than 90 days29(25)94(94)
To t a l 2,059(59)2 ,100(96)
In summary, trade receivables are determined to be impaired as follows:
2017
$000
2016
$000
Gross trade receivables2,0592,100
Impairment(59)(96)
Net trade receivables2,0002,004
All amounts past due but not impaired have been reviewed and are considered recoverable.
Market risk
Market risk is the risk that changes in market prices such as interest rates will affect the Group’s income. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on
risk.
Interest rate risk
The Group’s exposure to interest rate risk is managed by seeking to obtain the most competitive rate of interest at all times. The
Group has entered into interest rate swap agreements in order to provide an effective cash flow hedge against the variability in
floating interest rates. The Group has also entered into other interest swap agreements to reduce interest rate repricing risk in
relation to retail bonds. See Note 14 for details of interest rate swap agreements.
To comply with the Group’s risk management policy, the hedge ratio is based on the interest rate swap notional amount to
hedge the same notional amount of bank loans or retail bonds. This results in a hedge ratio of 1:1. This is the same as used for
actual risk management purposes, and such a ratio is appropriate for purposes of hedge accounting as it does not result in an
imbalance that would create hedge ineffectiveness.
In these hedge relationships the main sources of ineffectiveness are:
• a significant change in the credit risk of either party to the hedging relationship;
• where the hedge instrument has been transacted on a date different to the rate set date of the bank loan or retail bonds,
interest rates could differ; and
• differences in repricing dates between the swaps and the borrowings.
Other than these sources, due to the alignment of the hedged risk in the hedged item and hedged instrument, hedge
ineffectiveness is not expected to arise.
At 31 December 2017 it is estimated that a general increase of one percentage point in interest rates would decrease the
Group’s profit before income tax by $3.4 million (2016: decrease by $2.6 million) and decrease total comprehensive income by
approximately $0.2 million (2016: decrease by $0.9 million).
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group manages
liquidity by maintaining adequate reserves and undrawn banking facilities by continuously monitoring forecast and actual cash
flows and matching the maturity profiles of financial assets and liabilities. The Group manages liquidity risk on residents’ loans
and related sundry debtors through the contractual requirements of occupation rights agreements, whereby a resident’s loan is
only repaid on receipt of the loan monies from the incoming resident.
The following table sets out the contractual cash flows for all financial liabilities for the Group (including contractual interest
obligations on bank loans):
20172016
Less than
1 year

$000
Greater than
1 year
$000
Less than
1 year
$000
Greater than
1 year
$000
Financial liabilities
Trade and other payables51,858-34,687-
Residents’ loans69,229897,39853,339747,9 8 8
Interest-bearing loans and borrowings13,629388,5109,809313,209
Interest rate swaps4,85619,4003,46510,478
To t a l 139,5721,305,308101,3001,071,675
Residents’ loans are non-interest bearing and are not required to be repaid following termination of an occupation right
agreement until receipt of cash for the new resident loan from the incoming resident. The figures above have been calculated
using best estimates of resident loan repayments based on historical information. To date, cash for new residents’ loans
received has always exceeded cash to repay residents’ loans, net of deferred management fees.
Notes to the Financial Statements (continued)

Pg 56Pg 55
Fair values
The carrying amounts shown in the balance sheet approximate the fair value of the financial instruments, with the exception of
residents’ loans and retail bonds, shown below:
20172016
Carrying
amount

$000
Fair value

$000
Carrying
amount

$000
Fair value

$000
Residents’ loans (966,627)(648,195)(801,327)(510,959)
Retail bonds(99,331)(104,600)--
To t a l (1,065,958)(752,795)(801,327)(510,959)
The fair value of residents’ loans is based on the present value of projected cash flows. Future cash flows are based on the
assumption that the average tenure periods are those disclosed above and have been discounted at 14% (2016: 14%). The fair
value of residents’ loans is categorised as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value
Measurement.
The fair value of retail bonds is based on the price traded at on the market as at 31 December 2017. The fair value of the retail
bonds is categorised as Level 1 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.
The fair value of interest rate swaps are determined using inputs from third parties that are observable, either directly (i.e.
as prices) or indirectly (i.e. derived from prices). Based on this, the Company and Group has categorised these financial
instruments as Level 2 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.
Capital management
The Group’s capital includes share capital, reserves and retained earnings. The objective of the Group’s capital management
is to ensure a strong credit position to support business growth and maximise shareholder value. The Group is subject to
capital requirements imposed by the bank lenders (through covenants in the Syndicated Facility Agreement) and bond holders
(through covenants in the Master Trust Deed). The Group has met all of these externally imposed capital requirements for the
year ended 31 December 2017 (2016: all requirements met). The Group capital structure is managed, and adjustments are made,
with Board approval. There were no changes to objectives, policies or processes during the year ended 31 December 2017
(2016: none).
Notes to the Financial Statements (continued)
Financial instruments (continued)
18. Share capital and reserves
At 31 December 2017, there were 223,968,019 ordinary shares on issue (2016: 221,337,808). All ordinary shares are fully paid and
have no par value. All shares carry one vote per share and carry the right to dividends.
2017
$000
2016
$000
Share capital
On issue at beginning of year249,030244,309
Shares issued under the dividend reinvestment plan6,5124,159
Shares paid under employee share plans1,050-
Shares vested under employee share plans2-
Employee share plan option cost820529
Other-33
On issue at end of year257,414249,030
Share capital (in thousands of shares)
On issue at beginning of year2 17,70 9216,817
Shares issued under the dividend reinvestment plan1,281892
Shares issued under employee share plans750-
On issue at end of year219,7402 17,70 9
The total shares on issue at 31 December 2017 of 223,968,019 for the Company differs from the share capital for the Group due
to shares held in 100% owned subsidiary, Summerset LTI Trustee Limited. As at 31 December 2017, 4,227,907 shares are held
by Summerset LTI Trustee Limited for employee share plans which are eliminated on consolidation. Refer to Note 20 for further
details on employee share plans.
Revaluation reserve
The revaluation reserve is used to record the revaluation of care centre land and buildings.
Hedging reserve
The hedging reserve is used to record gains or losses on instruments used as cash flow hedges. The amounts are recognised in
profit and loss when the hedged transaction affects profit and loss.
Dividends
On 22 March 2017 a dividend of 5.1 cents per ordinary share was paid to shareholders and on 11 September 2017 a dividend of
3.9 cents per ordinary share was paid to shareholders. (2016: on 24 March 2016 a dividend of 3.4 cents per ordinary share was
paid to shareholders and on 9 September 2016 a dividend of 2.6 cents per ordinary share was paid to shareholders).
A dividend reinvestment plan applied to the dividends paid. 687,184 ordinary shares were issued in relation to the plan for the
March 2017 dividend and 593,876 ordinary shares were issued in relation to the plan for the September 2017 dividend.
(2016: 557,924 ordinary shares were issued in March 2016 and 333,618 ordinary shares were issued in September 2016).

Pg 58Pg 57
19. Earnings per share and net tangible assets
20172016
Basic earnings per share
Earnings ($000)223,436145,480
Weighted average number of ordinary shares for the purpose
of earnings per share (in thousands)
218,5552 17,3 52
Basic earnings per share (cents per share)102.2366.93
Diluted earnings per share
Earnings ($000)223,436145,480
Weighted average number of ordinary shares for the purpose
of earnings per share (in thousands)
222,407220,322
Diluted earnings per share (cents per share)100.4666.03
Number of shares (in thousands)
Weighted average number of ordinary shares for the
purpose of earnings per share (basic)
218,5552 17,3 52
Weighted average number of ordinary shares
issued under employee share plans
3,8522,970
Weighted average number of ordinary shares for
the purpose of earnings per share (diluted)
222,407220,322
At 31 December 2017, there were a total of 4,227,907 shares issued under employee share plans (Dec 2016:
3,629,248 shares).
Net tangible assets per share
Net tangible assets ($000)763,722 544,053
Shares on issue at end of period (basic and in thousands)219,7402 17,70 9
Net tangible assets per share (cents per share)347.56249.90
Net tangible assets is calculated as the total assets of the Group minus intangible assets and minus total liabilities. This measure
is provided as it is a commonly calculated figure and is useful for comparison with other entities.
20. Employee share plans
Senior employee share plan
The Group operates employee share plans for selected senior employees (“Participants”) to purchase shares in the Company.
The shares for the plans are held by a nominee as share options on behalf of Participants, until such time after the vesting of
shares that the nominee is directed by the Participant they wish to exercise the share option, or the shares are sold or cancelled
by the nominee if vesting criteria are not met. The shares carry the same rights as all other ordinary shares.
The Group has provided Participants with interest-free limited recourse loans to fund the acquisition of the shares for these
plans. These loans are held by Summerset LTI Trustee Limited and eliminate on consolidation.
The issue price of shares under the 2013 share plan is determined from the volume weighted average price on the NZX during
the ten trading days prior to issue.
2013
Share plan
(2013 issues)
2013
Share plan
(2014 issue)
2013
Share plan
(2015 issue)
2013
Share plan
(2016 issue)
2013
Share plan
(2017 issues)
Commencement date16 Dec 201316 Dec 201316 Dec 201316 Dec 201316 Dec 2013
Issue price$3.20 & $3.47$2.68$3.91$4.76$5.19 & $5.24
Expiry date of interest-free
limited recourse loans
30 Jun 201830 Jun 201930 Jun 202030 Jun 202130 Jun 2022
Years that the performance
goals relate to
2014 to 20162015 to 20172016 to 20182017 to 20192018 to 2020
% of shares vested25%76%
1
35%
1
0%0%
Vesting date of final tranche31 Dec 201631 Dec 201731 Dec 201831 Dec 201931 Dec 2020
1
Vesting date 31 December 2017, release date 26 February 2018
The performance hurdles for each grant of shares under the 2013 share plan between 2013 and 2015 to Executive Team
members (CEO and direct reports) are based on the Group’s total shareholder return relative to the performance of relevant
peers and the NZX 50.
The performance hurdles for the grant of shares under the 2013 share plan between 2016 and 2017 to Executive Team members
are based on:
• 50% absolute earnings (cumulative actual underlying net profit after tax for the Group against budget)
• 25% relative earnings (earnings per share growth of the Group compared to a defined peer group)
• 10% employee initiatives
• 10% customer initiatives
• 5% clinical strategy initiatives
While there is a requirement to remain employed by Summerset up to vesting date, there are no performance hurdles for grants
of shares to senior management team members, other than the members of the Executive Team whose performance hurdles
are described above.
590,831 shares were vested and eligible for exercise at 31 December 2017 (2016: 750,000). The exercise prices range from
$2.68 to $3.47 (2016: $1.40). An additional 657,661 shares were vested on 31 December 2017 but are not eligible for exercise until
23 February 2018.
The share plans are equity-settled schemes and are measured at fair value at the date of the grant. The fair value determined at
the grant date of the equity-settled share-based payments is expensed over the vesting period, based on the Group’s estimate
that the shares will vest. These options were valued using the Black Scholes valuation model and the option cost for the year
ending 31 December 2017 of $711,000 has been recognised in the income statement of the Company and the Group for that
period (2016: $490,000).
2017
Share plan
(2013 issues)
Share plan
(2014 issue)
Share plan
(2015 issue)
Share plan
(2016 issue)
Share plan
(2017 issues)
Shares held at year end (in thousands)2837239008681,232
Share plan shares held at year end
as a percentage of shares on issue
0.1%0.3%0.4%0.4%0.6%
Valuation assumptions
Discount to reflect shares may
not meet vesting criteria
30%30%0-30%0-15%0-15%
Volatility21-22%21%22%23%23%
Notes to the Financial Statements (continued)

Pg 60Pg 59
Notes to the Financial Statements (continued)
2016
2011
Share plan
2013
Share plan
(2013 issues)
2013
Share plan
(2014 issue)
2013
Share plan
(2015 issue)
2013
Share plan
(2016 issue)
Shares held at year end
(in thousands)
750283723900868
Share plan shares held at year end
as a percentage of shares on issue
0.3%0.1%0.3%0.4%0.4%
Valuation assumptions
Discount to reflect shares may not
meet vesting criteria
20%30%30%0-30%0-15%
Volatility20%21-22%21%22%23%
The range of exercise prices at 31 December 2017 is $2.68 to $5.24 (2016: $1.40 to $4.76).
20172016
Weighted
average
exercise
price
Number
of shares
000’s
Weighted
average
exercise
price
Number
of shares
000’s
Balance at beginning of period$3.303,518$2.893,142
Issued during the year$5.231,232$4.76868
Exercised during the year$1.40(750)--
Forfeited during the year$3.99(231)$3.26(492)
To t a l $4.273,769$3.303,518
All staff employee share plan
The Group operates an all staff employee share plan. A total of 742 employees participated in the share issue under the plan for
the year ending 31 December 2017 (2016: 626 employees). The Group contributed $779 per participating employee. A total of
117,236 Company shares were issued under the scheme at $4.9183 per share (2016: 104,252 shares at $4.6603 per share). The
shares are held by Summerset LTI Trustee Limited and vest to participating employees after a three-year period.
The cost for the year ending 31 December 2017 of $109,000 has been recognised in the income statement of the Company
and the Group for that period (2016: $39,000).
21. Related party transactions
Refer to Note 20 for employee share plan details.
Certain Group Directors have relevant interests in a number of companies that we have transactions with in the normal course
of business. A number of Directors are also non-executive Directors of other companies. Any transactions undertaken with
these entities are in the ordinary course of business.
Employee share plans (continued)
22. Key management personnel compensation
The compensation of the key management personnel of the Group is set out below:
2017
$000
2016
$000
Directors’ fees616508
Short-term employee benefits2,7332,548
Share-based payments568429
Termination payments--
To t a l3,9173,485
An additional Director was appointed to the Board in March 2017. Refer to Note 20 for employee share plan details for key
management personnel and for loans advanced to key management personnel under the terms of employee share plans.
23. Commitments and contingencies
Operating lease commitments
Non–cancellable operating lease rentals are payable as follows:
2017
$000
2016
$000
Less than 1 year1,2901,074
Between 1 and 5 years4,8386,151
More than 5 years6,6747,18 3
Total operating lease commitments12,80214,408
During the year ended 31 December 2017 $1.0 million was recognised in the income statement in respect of operating leases
(2016: $0.6 million).
Guarantees
At 31 December 2017, NZX Limited held a guarantee in respect of the Group, as required by the NZX Listing Rules, for $75,000
(2016: $75,000).
Capital commitments
At 31 December 2017, the Group had $63.9 million of capital commitments in relation to construction contracts (2016: $73.8
million).
Contingent liabilities
There were no known material contingent liabilities at 31 December 2017 (2016: nil).
24. Subsequent events
On 22 February 2018, the Directors approved a final dividend of $15.9 million, being 7.1 cents per share. The dividend record
date is 9 March 2018 with a payment date of 22 March 2018.
There have been no other events subsequent to 31 December 2017 that materially impact on the results reported .