Financial Results for the Half Year Ended 30 June 2018

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

14 AUGUST 2018

SUMMERSET REPORTS UNDERLYING PROFIT GROWTH OF 27% FOR 1H18


 Net profit after tax of NZ$82.0 million, down 9% on 1H17
 Underlying profit for 1H18 of NZ$45.2 million, up 27% on 1H17
 Total assets of NZ$2.4 billion, up 25% on 1H17
 299 total sales of occupation rights, down 7% on 1H17
 165 new retirement units delivered, on track for delivery of 450 for FY18
 Interim dividend of NZ 6.0 cents per share
 Development margin of 33%, up from 28% in 1H17

Retirement village operator Summerset Group Holdings Limited has announced an underlying
profit of $45.2m, an increase of 27%, in line with the profit guidance provided in early July.

Summerset CEO Julian Cook said the underlying profit result was driven primarily by strong
margins on both new and resales settled during the period.

“We are pleased with our underlying profit result, which reflects strong development and resales
margins in the period. While sales volumes were lower than the same period of 2017, we are
seeing good levels of contracts on homes – both on resales and homes to be completed before
the end of 2018 – many of which will settle in the second half of the year.”

Summerset’s net profit for the first half of 2018, which includes unrealised valuation gains in the
fair value of investment property, is $82.0m, down 9% on the same period last year.

“IFRS profit includes fair value movement on investment property of $78.3m relative to $87.1m
in the first half of 2017. The lower fair value movement versus the corresponding period in 2017
reflects lower levels of retirement unit price increases across our portfolio in response to the
flattening property market being seen in some areas of the country,” said Mr Cook.

In the first six months of 2018 Summerset reported a record development margin of 33%, up
from 28% for the same period last year. Mr Cook noted that “the development margin result is
pleasing but reflects the particular mix of retirement units settled in this period and our long run
expectations for development margin are less than this.”

The total value of assets for the Group grew to NZ$2.4b at 30 June 2018, up 25% on the same
period last year.

Assets include Summerset’s recent purchase of 9.4 hectares of land in Te Awa, Napier. The
proposed village will be Summerset’s fourth in Hawke’s Bay and will provide around 320 homes.
The company has also bought 8.1 hectares near Ngamotu Golf Course in New Plymouth, with

plans to build a retirement village offering around 300 homes. This will be Summerset’s second
New Plymouth village.

“We delivered 165 new homes this half year and we are on target to meet our build rate of 450
homes for the year. This is despite continuing pressure from the Auckland construction market.
Our key construction activity in Auckland is to complete our Hobsonville village, main apartment
buildings at Ellerslie, and new villa builds at Karaka and Warkworth,” said Mr Cook.

Residents have also moved into the first homes at Summerset’s Casebrook (Christchurch) and
Rototuna (Hamilton) villages over the first half of 2018.

Summerset recently received resource consent for its proposed Avonhead village in
Christchurch, and is awaiting the outcome of consent applications for proposed villages in
Boulcott (Lower Hutt) and Kenepuru (Wellington). Resource consent for our proposed village in
St Johns (Auckland) has recently been declined.

“We are currently working through this decision but remain confident we will be able to progress
a successful village on this site.

“There is strong demand for all of these villages and we are keen to progress them as soon as
possible”, Mr Cook said.

In May, Summerset announced additional staff benefits including a day of leave for staff
birthdays, travel voucher prizes each quarter and paid sick leave from the first day of
employment. These complement the staff benefits announced in 2017.

“Pleasingly we’ve seen the staff attrition rate at our villages drop by 8% in the last 12 months,
and the company-wide attrition rate has reduced almost 7% over the same period. We believe
this is a result of both the investment we are making in our staff and the Government’s equal pay
settlement,” said Mr Cook.

“However we are seeing the shortages in care staff increase due to the changes introduced to
immigration last year by the previous Government. We believe it is important the current
Government recognises the importance of immigration alongside local training and development
to ensure there are sufficient qualified and competent people in the aged care sector.”

Summerset continues to investigate the feasibility of an Australian expansion. It has opened an
office in Melbourne with a dedicated team who are working through the appropriate diligence
process. The company noted that good progress was being made and further updates will be
made when appropriate.

The board has declared an unimputed interim dividend of NZ 6.0 cents per share. The record
date will be Tuesday 28 August 2018 and payment date Monday 10 September 2018.


ENDS

For investor relations enquiries: For media enquiries:
Scott Scoullar Jenny Bridgen
Chief Financial Officer Senior Communications Advisor
scott.scoullar@summerset.co.nz jenny.bridgen@summerset.co.nz
04 894 7320 or 029 894 7317 04 830 1106 or 021 408 215

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 eight sites for development in Parnell (Auckland), St Johns (Auckland),
Avonhead (Christchurch), Te Awa (Napier), Pohutukawa Place (New Plymouth),
Richmond (Tasman), Kenepuru (Wellington) and Lower Hutt (Wellington), bringing the
total number of sites to 31.
 It provides a range of living options and care services to more than 5,000 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.

---

Half year results
presentation
Six months ended 30 June 2018
Summerset Group Holdings Limited
14 August 2018

Agenda
1
2
3
5
4
1H18 result highlights
Business overview
Financial results
Interim dividend
Appendix
1H18 results presentation
2

1H18 result
highlights

1H18 result highlights
Underlying profit up 27%, driven by strong margins
1H18 results presentation
4
* Underlying profit differs from NZ IFRS reported profit after tax. The measure has been reviewed 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
1H181H17VarianceFY17
Financial (NZ$m)
Net profit after tax (IFRS)82.090.3-9%223.4
Underlying profit*45.235.727%81.7
Total assets2,4201,93225%2,216
Net operating cash flow92.886.47%207.7
Operational
New sales of occupation rights145179-19%382
Resales of occupation rights1541447%300
Total sales of occupation rights299323-7%682
New retirement units delivered165171-4%450

1H18 result highlights
1H18 results presentation
5
165 retirement units delivered, on track for
delivery of 450 retirement units in FY18
1H18 underlying profit of $45.2m, up 27% on 1H17, relative to guidance of
$43.0m to $45.0m
Delivery of 165 retirement units in 1H18, on track for delivery of 450
retirement units in FY18
Record development margin of 33.0%, up from 28.0% in 1H17
Resale gain of 23.3%, up from 20.2% in 1H17
Interim dividend of 6.0 cents per share declared, amounting to $13.5m
Net operating business cash flow up 35%
Gearing ratio of 30.3%, down from 32.5% at 1H17
Total assets now over $2.4b, up 25% on 1H17

1H18 result highlights
Record first half underlying profit result
1H18 results presentation
6
165
279
171
219
190
0
100
200
300
1H182H171H172H161H16
Retirement unit delivery
145
203
179
231
183
154
156
144
121
123
0
200
400
1H182H171H172H161H16
Occupation right sales
New sales of occupation rightsResales of occupation rights
$45.2m
$46.0m
$35.7m
$31.9m
$24.7m
$0m
$10m
$20m
$30m
$40m
$50m
1H182H171H172H161H16
Underlying profit
$2,420m
$2,216m
$1,932m
$1,707m
$1,521m
$0m
$500m
$1,000m
$1,500m
$2,000m
$2,500m
1H182H171H172H161H16
Total assets

Business
overview

Summerset snapshot
1H18 results presentation
8
Second largest retirement village developer in New Zealand
21 years of consistent delivery and growth
Balance sheet growth of 292%since listing on the NZX in 2011
3,443 retirement units (villas, apartments, serviced apartments and memory
care apartments) and 858 care beds
More than 5,000 residents
23 operating villages completed or under development
Eight greenfield sites at Avonhead, Kenepuru, Lower Hutt, Parnell, Richmond,
St Johns, Te Awa, and our newly announced acquisition in New Plymouth
Land bank of 3,041 retirement units as at 30 June 2018*
Four-time winner of Best Retirement Village Operator at the Australasian Over
50s Housing Awards
Received a Highly Commended in the Reader’s Digest Trusted Brands Survey
three years running, from 2015-2017
* Excludes acquisition of new land in New Plymouth post balance date. This adds a further ~300 retirement units

1H18 review
1H18 results presentation
9
165 retirement units delivered, underlying profit of $45.2m
Opened our Casebrook and Rototuna villages
Granted resource consent for our Avonhead village
Special housing area status granted and land earthworks consented for Richmond village
Announced new land acquisitions in Te Awa (Napier) and New Plymouth
Delivered 165 retirement units and on track to meet our build rate target of 450 retirement
units in FY18
Continued to progress with the planning and design of our two new Auckland sites in
Parnell and St Johns
Applied to Hutt City Council for a land use resource consent to develop our Boulcott
village, and have applied for earthworks and land use resource consent to develop our
Kenepuru village
Continued our investigation into possible Australian expansion. We have established an
office in Melbourne with a dedicated team focused on working through the appropriate
diligence required before we make a decision on whether we enter this market
Underlying profit differs from NZ IFRS reported profit after tax. The measure has been reviewed 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
1H18 results presentation
10
Summerset builds, owns and operates
retirement villages across New Zealand
Focus on continuum of care model
High quality care and facilities across all villages
Villages designed to integrate into local communities
Internal development and construction model
Nationwide brand offering
Customer centric philosophy –bringing the best of life
Investigation of expansion into Australia continuing

Operations and staff
1H18 results presentation
11
Focus on staff initiatives and systems and process improvements
97% care customer satisfaction rating and 97% village customer satisfaction rating
Successfully completed the rollout of VCarecustomer management system for village
operations and rollout of clinical care functionality underway and due to be completed this
year
Introduced a new payroll system across head office and construction staff. Will implement
across remainder of business in the second half of the year
Introduced additional staff benefitsincluding staff hardship assistance, staff charity
fundraising assistance for good causes, and the day off on staff birthday
Provision of new uniforms to all village staff in 2H18. Throughout the first half of this year
we have been conducting wearer trials
Working towards Certified Emissions Measurement and Reduction Scheme certification –
will allow us to manage and reduce our impact on the environment

1H18 results presentation
12
Ellerslie
Ellerslie
Hobsonville
Hobsonville

1H18 development activity
1H18 results presentation
13
Delivery of 165 retirement units in 1H18 across seven sites
165 retirement units and 52 care beds delivered across seven villages
Completed the serviced apartment and care centre module in Hobsonville
First deliveries in Casebrook and Rototuna villages
On track to complete Karaka, Katikati, and Wigram villages by year end
We will lift our build rate up to 600 retirement units per annum over the next two to three years. The 600 retirement units perannum is an
average with potential for uneven deliveries across financial periods due to timing of main building and apartment block deliveries
Unit delivery 1H18VillasServiced apartments
Total
retirement units
Total
care beds
Casebrook31-31-
Hobsonville-181852
Karaka32-32-
Katikati22-22-
Rototuna14-14-
Warkworth16-16-
Wigram32-32-
Total1471816552

1H18 development activity
1H18 results presentation
14
Delivery of 165 retirement units in 1H18 across seven sites
CasebrookKaraka
Katikati
Rototuna
Wigram

1H18 development activity
1H18 results presentation
15
Delivery of 165 retirement units in 1H18 across seven sites
Hobsonville
Warkworth
Karaka
Warkworth

Future development
1H18 results presentation
16
Land bank of 3,041 retirement units and 368 care beds
Land bank of 3,041 retirement units spread across brownfield and greenfield sites
Targeting delivery of around 450 retirement units in FY18. Land bank provides around seven years of supply at FY18 build rate
* Land bank reflects current intentions as at June 2018. Excludes acquisition of new land in New Plymouth post balance date. This adds a further ~300 retirement units and ~40 care beds
Land bank -as at 30 June 2018*
VillageVillasApartments
Serviced & memory care
apartments
Total
retirement units
Total
care beds
Ellerslie8196-204-
Hobsonville10362369-
Karaka39--39-
Parnell-2647634048
St Johns-2367631232
Warkworth38--38-
Auckland957321751,00280
Rototuna174-7625043
Waikato174-7625043
Katikati16--16-
Bay of Plenty16--16-
Te Awa252-7632843
Hawke's Bay252-7632843
Kenepuru1009310629943
Lower Hutt421096621730
Trentham--2020-
Wellington14220219253673
Richmond234-7631043
Nelson-Tasman234-7631043
Avonhead156129826643
Casebrook229127631743
Wigram16--16-
Christchurch4012417459986
Total1,3149587693,041368

Development margin
1H18 results presentation
17
Record development margin of 33.0% with a realised margin of $25.8m
Record development margin achieved in 1H18 with strong margins
across all villages that settled new retirement units
Consistent margins across both regional and Auckland villages
Realised development margin of $25.8m, up 21% from $21.3m in
1H17
Development margin of 33.0% in 1H18, this is up from 28.0% in
1H17
Sales of new occupation rights were split 37% in our Auckland region
villages and 63% across the rest of our developing villages
Over the medium to long term we expect margins at levels more
consistent with the last few years’ performance
$11.3m
$14.8m
$15.6m
$23.4m
$21.3m
$29.7m
$25.8m
18.4%
21.4%
20.3%
23.6%
28.0%
26.9%
33.0%
0%
5%
10%
15%
20%
25%
30%
35%
$0m
$5m
$10m
$15m
$20m
$25m
$30m
$35m
1H152H151H162H161H172H171H18
Realised development margin -half on half margins
Realised development margin ($m)Development margin (%)

New sales of occupation rights
1H18 results presentation
18
New sales gross proceeds of $78.3m across 145 settlements
New sales of occupation rights of 145 in 1H18, down from
179 in 1H17
Despite a lower number of new sales, gross proceeds
were up from $75.9m in 1H17 to$78.3m in 1H18
Average gross proceeds per new sale settlement of
$540k, up from $424k in 1H17
We continue to see strong demand for our product with
waitlist numbers across our villages up 22% over the past
year
Average monthly presale contracts were 45% higher than
what we were achieving in 2H17, and days to settle have
remained around three months
Serviced and memory care apartments made up 28% of
the new sales of occupation rights in 1H18
New sales1H181H17VarianceFY17
Gross proceeds ($m)78.375.93%186.4
Villas97115-16%235
Apartments71600%29
Serviced apartments4060-33%111
Memory care apartments13-67%7
Total occupation rights145179-19%382
141
162
190
219
171
279
165
160
173
183
231
179
203
145
0
50
100
150
200
250
300
0
50
100
150
200
250
300
1H152H151H162H161H172H171H18
New sales and retirement unit delivery
Retirement unit deliveryNew sale settlements

New sales stock remains historically low on a relative basis
Uncontracted new sales stock of 143 retirement units at 1H18, down from 145 retirement units at FY17. Contract levels strongwith 81
retirement units contracted at 30 June 2018 and likely to settle in the near future
Serviced and memory care apartments are selling down steadily with uncontracted stock reducing from 90 at FY17 to 74 at 1H18.
Uncontracted villa and apartment stock of 69 at 1H18, up from 55 at FY17. The uncontracted villa and apartment new sales stock has been
available to settle for around four months. Stock levels provide good momentum moving into the second half of the year
Low levels of new sales stock continue with uncontracted new sales stock making up 4.2% of our total retirement unit portfolio, this compares
to over 6% four years ago and 4.4% at FY17
New sales stock
1H18 results presentation
19
* Uncontracted new sales stock as a proportion of the total retirement unit portfolio at balance date
New sales stock1H18FY171H17
Contracted815962
Uncontracted14314566
Total new sales stock224204128
Contracted552636
Uncontracted624114
Villas1176750
Contracted550
Uncontracted7140
Apartments12190
Contracted212826
Uncontracted749052
Serviced & memory care apartments9511878
6.4%
7.1%
6.7%
4.1%
3.9%
3.3%
2.8%
2.4%
2.2%
4.4%
4.2%
0%
1%
2%
3%
4%
5%
6%
7%
8%
1H132H131H142H141H152H151H162H161H172H171H18
Available new sales stock*

Resales of 154 occupation rights in 1H18
Resales of 154 occupation rights in 1H18, an increase of 7%
on 1H17
Gross proceeds of $64.0m, up 20% on 1H17
Realised resale gain of 23.3%, up 15% on 1H17
Embedded value of $156k per retirement unit, as at 30 June
2018, up from $140k as at 30 June 2017
Embedded resale gain of $101k per retirement unit, up from
$91k as at 30 June 2017
Resales of occupation rights
1H18 results presentation
20
Resales1H181H17VarianceFY17
Gross proceeds ($m)64.053.420%114.9
Realised resale gains ($m)14.910.838%24.9
Realised resale gains (%)23.3%20.2%15%21.7%
DMF realisation ($m)7.76.224%13.8
Villas86825%172
Apartments2225-12%46
Serviced apartments453722%82
Memory care apartments10N/A0
Total occupation rights1541447%300
$105m
$133m
$159m
$199m
$274m
$327m
$346m
$87m
$97m
$109m
$124m
$145m
$170m
$189m
$m
$100m
$200m
$300m
$400m
$500m
$600m
1H152H151H162H161H172H171H18
Embedded value
Resales gain ($m)DMF ($m)
110
135
123
121
144
156
154
16.6%
15.6%
19.8%
17.3%
20.2%
23.0%
23.3%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
1H152H151H162H161H172H171H18
Realised resale gain and volume
Resale settlementsRealised resale gains (%)

Resales stock levels continue to sit at record lows
Resales stock remains low with 56 retirement units under contract and 47 retirement units uncontracted at 1H18
We continue to see good demand for resale units across all villages. On average only ~2 uncontracted retirement units per village
As a proportion of our total retirement unit stock, uncontracted resales stock makes up 1.4%
Resales stock
1H18 results presentation
21
* Uncontracted resales stock as a proportion of the total retirement unit portfolio at balance date
Resales stock1H18FY171H17
Contracted566353
Uncontracted474735
Total resales stock10311088
Contracted283730
Uncontracted252418
Villas536148
Contracted893
Uncontracted258
Apartments101411
Contracted201720
Uncontracted20189
Serviced & memory care apartments403529
1.8%
1.3%
1.6%
1.2%
1.1%
1.5%
1.0%
1.0%
1.2%
1.4%
1.4%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
1H132H131H142H141H152H151H162H161H172H171H18
Available resales stock*

Financial results

1H18 reported profit (IFRS)
1H18 net profit after tax of $82.0m with total revenue up 29%
1H18 results presentation
23
IFRS NPAT of $82.0m, down $8.3m or 9% relative to 1H17
Lower IFRS profit result for the half due to a lower fair value
movement in investment property –refer to next slide for further
details
Total revenue of $65.7m, up $15.0m or 29% relative to 1H17
1H18 expenses are driven from a mix of growth in new and
developing villages, additional operating costs in existing villages
(including the impact of pay equity and the introduction of our
premium food offering to residents), and project-specific costs
Net finance costs of $5.4m are down 2% relative to 1H17 principally
due to costs associated with the re-financing of banking facilities
recognised in 1H17
NZ$m1H181H17VarianceFY17
Total revenue65.750.729%110.5
Reversal of impairment
on land & buildings
---0.0
Fair value movement of
investment property
78.387.1-10%218.0
Total income144.0137.84%328.5
Total expenses55.841.734%93.2
Net finance costs5.45.5-2%11.5
Net profit before tax82.890.7-9%223.7
Tax expense / (credit)0.80.4104%0.3
Net profit after tax82.090.3-9%223.4

Fair value movement
$78.3m fair value movement of investment property
1H18 results presentation
24
Fair value movement of $78.3m for 1H18, down 10% on 1H17
Fair value movement has been driven by:
Retirement unit pricing ($35.6m): retirement unit price
inflation on existing retirement units within the portfolio
resulting in uplift in operators interest
New retirement units built ($44.8m): value of new
retirement units delivered in 1H18
Refurbishment cost assumptions ($7.9m): uplift in
refurbishment cost assumption used by valuer
Discount rates ($4.4m) and growth rates ($0.2m): change
in assumptions used by valuer
Other movements ($1.2m): changes in all other valuation
assumptions
Refer to the appendices (slide 42) for key assumptions
associated with the investment property valuation
$78.3m
$44.8m
$4.4m
$0.2m
$1.2m
$7.9m
$35.6m
$-
$10m
$20m
$30m
$40m
$50m
$60m
$70m
$80m
$90m
Retirement
unit pricing
New
retirement
units built
Refurbishment
cost
assumptions
Discount
rate
assumptions
Growth
rate
assumptions
OtherFair value
movement
1H18
1H18 fair value movement of investment property

1H18 underlying profit
Underlying profit up 27% on 1H17, 41% CAGR over last seven years
1H18 results presentation
25
1H18 underlying profit of $45.2m, up 27% on 1H17, relative to
guidance of $43.0m to $45.0m
Uplift in underlying profit principally driven by the maturing nature of
our operating business
Realised development margin of $25.8m achieved in 1H18, up from
$21.3m in 1H17 driven by a record high development margin of
33.0%
Realised gain on resales of $14.9m achieved in 1H18 driven by a
higher sales volume and strong sales price growth across our
villages
Underlying profit has seen an annual compounded increase of 41%
since listing on the NZX in 2011
UnderlyingprofitdiffersfromNZIFRSreportedprofitaftertax.TheDirectorshaveprovidedanunderlyingprofitmeasuretoassistreadersindeterminingtherealisedandnon-realisedcomponentsof
fairvaluemovementofinvestmentpropertyandtaxexpenseintheGroup’sincomestatement.Themeasureisusedinternallyinconjunctionwithothermeasurestomonitorperformanceandmake
investmentdecisionsandhasbeenreviewedbyErnst&Young.UnderlyingprofitisanindustrywidemeasurewhichtheGroupusesconsistentlyacrossreportingperiods.Seenote2ofthefinancial
statementsfordetailonthecomponentsofunderlyingprofit
NZ$m1H181H17VarianceFY17
Care fees and village
services
43.334.127%74.5
Deferred management
fees
22.316.535%35.8
Realised gain on resales14.910.838%24.9
Realised development
margin
25.821.321%51.0
Other income & interest
received
0.10.028%0.2
Total income106.482.829%186.4
Operating expenses52.939.634%88.6
Depreciation and
amortisation
2.92.140%4.6
Net finance costs5.45.5-2%11.5
Total expenses61.247.130%104.7
Underlying profit45.235.727%81.7

1H18 cash flows
Net operating business cash flows up 35%
1H18 results presentation
26
Continuing to see benefits of maturing portfolio -net operating
business cash flows up 35% from $12.7m in 1H17 to $17.1m in
1H18
Have seen a consistent maturing operating cash flow since
listing of 23% CAGR
Net receipts from resales was up $8.8m on 1H17 with uplift in
resale volume and margin
Gross receipts from new sales was up on 1H17 despite lower
sales volume
Investing cash flows were down slightly on 1H17 with lower land
purchase settlements within the period
The other PP&E cash flows of $2.4m are largely made up of
minor equipment purchases for head office, village, and care
centre locations
NZ$m1H181H17Variance
Net operating business cash
flow
17.112.735%
Receipts for residents' loans -
new sales
75.773.73%
Net operating cash flow92.886.47%
Purchase of land(2.0)(7.6)-73%
Construction of new IP & care
facilities
(89.1)(94.6)-6%
Refurb of existing IP & care
facilities
(2.6)(1.6)59%
Other investing cash flows(4.1)(3.4)22%
Capitalised interest paid(4.0)(2.5)60%
Net investing cash flow(101.8)(109.7)-7%
Net proceeds from borrowings31.441.3-24%
Net dividends paid(9.9)(7.6)30%
Other financing cash flows(5.4)(6.1)-12%
Net financing cash flow16.227.6-42%

1H18 balance sheet
Total assets of $2.4b, up 25% from $1.9b in 1H17
1H18 results presentation
27
Total assets of $2.4b, up 25% on 1H17
Retained earnings have increased from $368.2m as at 30
June 2017 to $558.9m as at 30 June 2018. This continues
to positively impact balance sheet strength and company
gearing ratios
Investment property valuation of $2.2b, up 24% on 1H17
Other assets include land and buildings (primarily care
centres). Care centreswere valued as at 31 December
2017 (three yearly cycle), with additional care centres
recorded at cost and tested for impairment
Intangibles of $6.7m at 1H18. Principally made up of the
VCarecustomer management system, our new Human
Resources Information System (HRIS), and our new asset
management system
Embedded value of $535.4m, $156k per retirement unit, as
at 30 June 2018:
$346.0m resale gains
$189.4m deferred management fees
NZ$m1H181H17VarianceFY17
Investment property2,2411,80624%2,058
Other assets178.8125.842%158.2
Total assets2,4201,93225%2,216
Residents' loans1,037867.220%966.6
Face value of bank loans &
bonds*
379.3315.320%347.8
Other liabilities162.5122.033%132.6
Total liabilities1,5791,30521%1,447
Net assets**840.5627.634%769.3
Embedded value535.4418.928%497.1
NTA (cents per share)377.9285.732%347.6
** Net assets includes share capital, reserves, and retained earnings
*Facevalueofdrawnbankdebtandretailbonds.Excludescapitalisedandamortisedbondissuecosts,
andfairvaluemovementonhedgedborrowings

Gearing ratio
Gross debt of $379m* and gearing ratio of 30.3%
1H18 results presentation
28
Gross debt of $379.3m as at 30 June 2018, up $31.4m from 31
December 2017
Uplift in gross debt principally due to development spend in
Ellerslie, Casebrook, Hobsonville, Rototuna, Karaka, and
Warkworth
Bank facility of $500.0m with undrawn capacity of $220.7m at 30
June 2018
Retail bonds of $100.0m successfully raised in FY17
Gearing ratio of 30.3% is down from 32.5% as at 30 June 2017
Maturing net assets are the principal driver of overall risk
reduction
Our recent land purchases in Kenepuru (Wellington), Te Awa
(Napier), and New Plymouth were not fully settled as at 30 June
2018 –as such they are not fully reflected in the net debt figure
*Facevalueofdrawnbankdebtandretailbonds.Excludescapitalisedandamortisedbond
issuecosts,andfairvaluemovementonhedgedborrowings
**Gearingratiocalculation(netdebt/netdebtplusbookequity)differsfromtheSummerset
Group’sbankandbondLVRcovenant(TotalDebtoftheSummersetGroup/PropertyValue
oftheSummersetGroup)
NZ$m1H181H17VarianceFY17
Face valueof bank loans
& retail bonds*
379.3315.320%347.8
Cash and cash
equivalents
(14.7)(13.1)13%(7.6)
Net debt364.5302.221%340.3
Net assets840.5627.634%769.3
Gearing ratio (%)**30.3%32.5%-7%30.7%
Bank & bond LVR(%)**31.6%34.3%-8%31.4%
$161m
$248m
$263m
$274m
$315m
$348m
$379m
29.8%
37.1%
36.1%
32.7%
32.5%
30.7%
30.3%
0%
10%
20%
30%
40%
50%
$0m
$100m
$200m
$300m
$400m
$500m
$600m
1H152H151H162H161H172H171H18
Gross borrowings and gearing ratio
Bank loans & retail bondsGearing ratio (%)

Project cash profits
Delivering significant positive cash flow across new villages
1H18 results presentation
29
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 significant cash profits upon sell down of the
village
Our broad acre sites require a lower amount of capital, while all
producing positive cash flows
From the time construction of a village starts through to the last
retirement unit being delivered takes, on average, around four to
six years
*Forecastnetpositionrepresentscashprofitspostlandcost,retirementunitdevelopment
costs,recreationandadministrationfacilitycosts,carefacilitycosts,managementfeesand
interestcosts
Village
Forecast Capital
Investment ($m)
Forecast Net Cash
Position* ($m)
Ellerslie$200m +$40m +
Casebrook
Hobsonville
Karaka
Rototuna
$100m +$20m +
Trentham -Extension
Warkworth -Extension
Wigram
$35m +
$5m -$20m
Katikati$0m -$5m
Katikati
Hobsonville
Karaka
Trentham - Extension
Wigram
Ellerslie
Warkworth - Extension
Casebrook
Rototuna
20192020
Summerset developments
2012201320142015201620172018

$135m
$133m
$172m
$209m
$119m
$135m
$-
$100m
$200m
$300m
$400m
$500m
$600m
Net debt FY17Underlying assets
FY17
Net debt 1H18Underlying assets
1H18
Net debt* to underlying assets -1H18 & FY17
Net DebtUndeveloped LandDevelopment WIPUnsold Stock
Composition of drawn debt
Strong asset backing to net debt
1H18 results presentation
30
Development projects are debt funded. Development assets
exceed the value of net debt by $112.5m or 30%, this has lifted
from $85.3m or 25% as at FY17
All debt is associated with development activities
Development assets could be realised to reduce debt
Total underlying assets of around $477.1m are made up of:
Undeveloped land of $133.3m
Development WIP of $209.2m
Vacant new sale stock of $134.5m
$365m
$477m
*Facevalueofdrawnbankdebtandretailbonds
$426m
$340m
$112.5m excess assets
$85.3m excess assets

Interim dividend

1H18 interim dividend
Summerset board declares 1H18 interim dividend
1H18 results presentation
32
The Summerset Board have declared an interim dividend of 6.0 cents per share, unimputed. This compares to a 2017 interim dividend of 3.9
cents per share
This represents a pay-out for the first half of 2018 of approximately $13.5m
This pay-out is 30% of 1H18 underlying profit
The dividend reinvestment plan (DRP) will apply to this dividend enabling shareholders to take shares in lieu of the cash dividend
A discount of 2% will be 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 on Wednesday the 29
th
of August 2018. Any applications received
on or after this time will be applied to subsequent dividends
The interim dividend will be paid on Monday the 10
th
of September 2018. The record date for final determination of entitlements to the interim
dividend is Tuesday the 28
th
of August 2018
The dividend policy remains 30% to 50% of underlying profit for the full year period. As previously indicated, dividend payments are likely to
continue to be at the bottom end of this range given the growth opportunities present for the business at this time

Questions?
1H18 results presentation
33

Disclaimer
1H18 results presentation
34
This presentation may contain projections or forward looking statements regarding a variety of items. Such forward looking statements are
based upon current expectations and involve risks and uncertainties
Actual results may 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 the forward looking statements are reasonable, any ofthe
assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward
looking statements will be realised
Furthermore, while all reasonable care has been taken in compiling this presentation, Summerset accepts no responsibility forany errors or
omissions
This presentation does not constitute investment advice

Appendix

Demographics
1H18 results presentation
36
Population over 75 years forecast to grow 245% from 2018 to 2068
0
5,000
10,000
15,000
20,000
25,000
1997-20022002-20072007-20122012-20172017-20222022-20272027-20322032-20372037-20422042-20472047-20522052-20572057-20622062-2067
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
199720022007201220172022202720322037204220472052205720622067
Population growth 75 years and over
NZ population 75+ (left hand axis)% population 75+ (right hand axis)

Summerset growth
21 years of consistent delivery and growth
1H18 results presentation
37
-
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
3,278
129
90
188
63
58
124
80
63
126
62
126
163
80
122
160
209
261
303
409
450
165
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
3,443
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1997199819992000200120022003200420052006200720082009201020112012201320142015201620171H
2018
Retirement units
Summerset build rate
Existing unitsNew retirement units delivered

Customer profile & occupancy
Occupancy, tenure and resident demographic statistics
1H18 results presentation
38
Occupancy within our established care centres is stable with an average
occupancy of 96% for 1H18
Average tenure on 1H18 resale retirement units was 4.9 years for villas, 3.3
years for independent apartments, and 2.0 years for serviced and memory
care apartments
Average entry age on 1H18 new and resale retirement units was 79 years for
villas and independent apartments, and 86 years for serviced and memory
care apartments
* Average tenure has been calculated using the previous resident’s occupancy on resales within the reporting period
78
79
79
80
79
83
82
83
80
79
86
85
86
86
86
60
65
70
75
80
85
90
1H162H161H172H171H18
Average entry age of residents (years)
VillasApartmentsServiced & memory care apartments
5.6
4.9
5.0
5.0
4.9
3.0
3.3
4.7
4.5
3.3
2.5
2.3
1.4
1.9
2.0
0
1
2
3
4
5
6
7
1H162H161H172H171H18
Average tenure (years) on resales*
VillasApartmentsServiced & memory care apartments
98%
99%
98%
96%
96%
0%
20%
40%
60%
80%
100%
1H162H161H172H171H18
Occupancy -established care centres

Portfolio as at 30 June 2018
3,443 retirement units and 858 care beds
1H18 results presentation
39
Existing portfolio -as at 30 June 2018
VillageVillasApartmentsServiced apartmentsMemory care apartments
Total
retirement units
Total
care beds
Ellerslie342357-11458
Hobsonville1153729-18152
Karaka143-59-20250
Manukau896727-18354
Warkworth164244-21041
Auckland545129216-890255
Hamilton183-50-23349
Rototuna14---14-
Taupo943418-146-
Waikato2913468-39349
Katikati140-20-16049
Bay of Plenty140-20-16049
Hastings1465--151-
Havelock North9428--12245
Napier942620-14048
Hawke's Bay3345920-41393
New Plymouth108-40-14852
Taranaki108-40-14852
Levin6422-109641
Palmerston North9012--10244
Wanganui701812-10037
Manawatu-Wanganui224521210298122
Aotea963338-167-
Paraparaumu9222--11444
Trentham2311220-26344
Wellington4196758-54488
Nelson214-55-26959
Nelson-Tasman214-55-26959
Casebrook31---31-
Wigram143-53-19649
Christchurch174-53-22749
Dunedin612020-10142
Otago612020-10142
Total2,510361562103,443858

Land bank as at 30 June 2018
Land bank of 3,041 retirement units and 368 care beds
1H18 results presentation
40
Land bank -as at 30 June 2018*
VillageVillasApartments
Serviced & memory care
apartments
Total
retirement units
Total
care beds
Ellerslie8196-204-
Hobsonville10362369-
Karaka39--39-
Parnell-2647634048
St Johns-2367631232
Warkworth39--39-
Auckland967321751,00380
Rototuna174-7625043
Waikato174-7625043
Katikati16--16-
Bay of Plenty16--16-
Te Awa252-7632843
Hawke's Bay252-7632843
Kenepuru1009310629943
Lower Hutt421096621730
Trentham--2020-
Wellington14220219253692
Richmond234-7631043
Nelson-Tasman234-7631043
Avonhead156129826643
Casebrook229127631743
Wigram16--16-
Christchurch4012417459986
Total1,3149587693,041368
* Land bank reflects current intentions as at June 2018. Excludes acquisition of new land in New Plymouth post balance date. This adds a further ~300 retirement units and ~40 care beds

1H18 underlying profit reconciliation
Reconciliation of underlying profit to reported net profit after tax
1H18 results presentation
41
UnderlyingprofitdiffersfromNZIFRSreportedprofitaftertax.TheDirectorshaveprovidedanunderlyingprofitmeasuretoassistreadersindeterminingtherealisedandnon-realisedcomponentsof
fairvaluemovementofinvestmentpropertyandtaxexpenseintheGroup’sincomestatement.Themeasureisusedinternallyinconjunctionwithothermeasurestomonitorperformanceandmake
investmentdecisionsandhasbeenreviewedbyErnst&Young.UnderlyingprofitisanindustrywidemeasurewhichtheGroupusesconsistentlyacrossreportingperiods.Seenote2ofthefinancial
statementsfordetailonthecomponentsofunderlyingprofit
NZ$m1H181H17VarianceFY17
Reported net profit after tax82.090.3-9%223.4
Less reversalof impairment on land & buildings--N/A(0.0)
Less fair value movement of investment property(78.3)(87.1)-10%(218.0)
Add realised gain on resales14.910.838%24.9
Add realised development margin25.821.321%51.0
Add/(less) deferred tax expense/credit0.80.4104%0.3
Underlying profit45.235.727%81.7

Fair value movement
Fair value movement of investment property –key assumptions
1H18 results presentation
42
*Valueofnon-landcapitalworkinprogressnotrepresentedintheabovetable
Fair value movement of investment
property
Value of
investment
property*
Fair value
gain/(loss)
Key valuation 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 ParkManukau139.11.413.50%1.5%2.0%2.5%3.0%3.5%
Summerset by the LakeTaupo53.60.615.75%0.0%0.5%1.5%2.5%3.5%
Summerset in the BayNapier63.00.214.00%0.0%1.0%2.0%2.5%3.5%
Summerset in the OrchardHastings63.81.515.00%0.0%0.5%1.0%2.5%3.5%
Summerset in the VinesHavelock North52.80.614.75%0.0%1.0%2.0%2.5%3.5%
Summerset in the River CityWanganui26.30.916.00%0.0%1.0%1.5%2.0%2.5%
Summerset on SummerhillPalmerston North41.80.914.75%0.0%1.0%2.0%2.5%3.0%
Summerset by the RangesLevin24.81.015.75%0.5%1.0%1.5%2.0%2.5%
Summerset on the CoastParaparaumu48.80.714.50%0.5%1.0%2.0%2.5%3.5%
Summerset at AoteaAotea88.62.314.25%0.5%1.0%2.0%2.5%3.5%
Summerset in the SunNelson133.73.514.00%0.0%1.0%1.0%2.5%3.5%
Summerset at BishopscourtDunedin44.41.714.75%0.5%1.0%1.5%2.5%3.0%
Summerset down the LaneHamilton121.04.814.00%0.5%1.0%2.0%2.5%3.5%
Summerset Mountain ViewNew Plymouth66.60.214.75%0.0%0.5%1.5%2.5%3.0%
Total for completed villages968.420.2
Summerset FallsWarkworth141.510.914.25%0.5%1.5%2.0%3.0%3.5%
Summerset at Monterey ParkHobsonville183.40.114.00%1.0%1.0%2.0%2.5%3.5%
Summerset at Heritage ParkEllerslie107.50.415.00%1.0%1.0%2.0%2.5%3.5%
Summerset at KarakaKaraka143.511.714.25%0.5%1.0%2.0%2.5%3.5%
Summerset RototunaRototuna20.35.316.50%0.0%1.0%2.0%2.5%3.5%
Summerset by the SeaKatikati82.57.715.00%0.0%0.5%1.5%2.5%3.5%
Summerset at the CourseTrentham130.50.714.00%0.5%1.0%2.0%2.5%3.5%
Summerset at WigramWigram105.711.714.75%0.0%1.5%2.0%3.0%3.5%
Summerset CasebrookCasebrook28.28.316.50%0.0%1.0%2.0%3.0%3.5%
Total for villages in development943.356.6
Total for proposed villages120.01.5n/an/an/an/an/an/a
Total for all villages2,031.678.3

7year metrics summary
1H18 results presentation
43
*Compoundannualgrowthrate.Annualised1H18resultcomparedtoFY11
**UnderlyingprofitdiffersfromNZIFRSreportedprofitaftertax.ThemeasurehasbeenreviewedbyErnst&Young.Refertoappendixforareconciliationbetweenthetwomeasures,andnote2of
thefinancialstatementsfordetailonthecomponentsofunderlyingprofit
Underlying profit 7 year CAGR of 41%
Half Year Results7 Year CAGR*1H182H171H172H161H162H151H15FY11
Operational
New sales of occupation rights15%145203179231183173160108
Resales of occupation rights14%154156144121123135110123
Total sales15%299359323352306308270231
New retirement units delivered15%165279171219190162141122
Retirement units in portfolio14%3,4433,2782,99928282609241922571,486
Care beds in portfolio16%858806748748621616523327
Financial (NZ$m)
Total revenue ($m)21%65.759.850.746.040.036.232.633.7
Net profit after tax ($m)68%82.0133.290.394.950.648.535.74.3
Underlying profit** ($m)41%45.246.035.731.924.720.717.18.1
Net operating cash flow ($m)23%92.8121.386.4108.284.476.763.643.7
Total assets ($m)22%2,419.62,216.31,932.11,706.81,521.41,363.51,161.3616.9
Total equity ($m)20%840.5769.3627.6545.6448.7409.8363.7233.4
Interest bearing loans and borrowings ($m)28%379.7347.2315.3274.0262.7248.2160.969.1
Cash and cash equivalents ($m)7%14.77.613.18.79.46.76.59.0
Gearing ratio (Net D/ Net D+E)6%30.3%30.7%32.5%32.7%36.1%37.1%29.8%20.5%
EPS (cents) (IFRS profit)63%37.2260.8641.3743.623.322.416.52.39
NTA (cents)19%377.85347.56285.72249.9206.1188.5167.5109.33
Development margin (%)27%33.0%26.9%28.0%23.6%20.3%21.4%18.4%6.2%

---

Half Year Report 2018

Cover image: Hobsonville residents, John and Barbara, with their dog Pippin.
Inside cover: Wigram Village Centre.
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.

Contents
Summerset Snapshot5
Half Year Business Highlights6
Half Year Financial Highlights8
Joint Chair and CEO's Report10
Financial Statements14
Directory28
Company Information30

Pg 4

Pg 5
Summerset Snapshot
More than
5,000
residents
More than
1,300
staff members
23
Villages completed or
under development
8
Greenfield sites

Land bank of
3,041
retirement units*
Land bank of
368
care beds*
3,443
Retirement units
in portfolio
858
Care beds in portfolio

*
These figures exclude the purchase of land at our new site in New Plymouth

Pg 6
Half Year
Business Highlights
Sales of
299
occupation rights

165
New retirement units
delivered
33%
Development margin
52
New care beds delivered
Opened our Casebrook
and Rototuna villages
Granted resource consent
for our Avonhead village
Purchase of land in Napier
and New Plymouth

Pg 7
Summerset at Wigram's Village Centre lounge.

Pg 8
Half Year
Financial Highlights
$82.0m
Net profit after tax 1H2018
9%
Decrease on 1H2017
$45.2m
Underlying profit 1H2018
27%
Increase on 1H2017
$2.4b
Total assets 1H2018
25%
Increase on 1H2017
6.0
Cents per share interim dividend
54%
Increase on 1H2017

Pg 9
Half Year
Financial Highlights
For the six months ended 30 June 2018
Results Highlights - Financial
1H20181H2017% ChangeFY2017
Net profit after tax (NZ IFRS) ($000)81,97290,253-9.2%223,436
Underlying profit ($000)
1
45,21635,65326.8%81,663
Total assets ($000)2,419,6351,932,12225.2%2,216,328
Net tangible assets (cents per share)377.85285.7232.2%347.56
Net operating cash flow ($000)92,80986,4237.4%207,716
1 Underlying profit differs from NZ IFRS profit for the period
Results Highlights - Operational
1H20181H2017% ChangeFY2017
New sales of occupation rights
145179-19.0%382
Resales of occupation rights1541446.9%300
New retirement units delivered165171-3.5%450
Realised development margin ($000)25,82221,29421.3%50,970
Gross proceeds (new sales) ($000)
78,34575,9303.2%186,428
Realised gains on resales ($000)
14,91510,78538.3%24,936
Non-GAAP underlying profit
$0001H20181H2017% ChangeFY2017
Profit for the period
1
81,97290,253-9.2%223,436
Less: fair value movement of investment property
1
(78,332)(87,091)-10.1%(217,954)
Less: reversal of impairment on land
1
--N/A(15)
Add: realised gain on resales14,91510,78538.3%24,936
Add: realised development margin25,82221,29421.3%50,970
Add: deferred tax expense
1
839412103.7%290
Underlying profit
45,21635,65326.8%81,663
1 Figure has been extracted from the financial statements
Underlying profit differs from NZ IFRS reported profit after tax. Refer to note 2 of the financial statements for definitions
of the components of underlying profit.

Pg 10
Joint Chair and
CEO's Report
Welcome to Summerset’s half year report for the six months ended 30 June
2018. We are pleased to report that we have performed well, with good
financial results for shareholders alongside delivery of initiatives that will
continue to enhance the experience of our residents and staff.
In the first half of 2018, we recorded $82.0 million net
profit after tax, down 9% on the same period last year,
and $45.2 million underlying profit, up 27% on the first six
months of 2017. We now have more than 5,000 residents
who call Summerset home. These residents are
supported by more than 1,300 staff.
A total of 165 new retirement units were built in the
period. There were 145 new sales and 154 resales
in the six months to 30 June. A total of 37% of sales were
in Auckland, while 63% were across the rest of New
Zealand. The company’s development margin for
1H2018 was 33%, up from 28% for the same period
in 2017.
While new sales have been lower in the first half of 2018
than the corresponding period for 2017, we are seeing
good levels of contracts on homes – both on resales and
homes to be completed before the end of 2018 – and
strong development margins on the homes that have
settled over the first half of 2018. Resales volumes
continue to track well across all areas of the country,
including the Auckland market, despite the flattening
residential property market.
Growth and development
We continue to expand our offering at a number of sites
around the country. Residents have moved into the first
homes at our Casebrook (Christchurch) and Rototuna
(Hamilton) villages in the first half. We have also recently
received resource consent for our proposed Avonhead
(Christchurch) village, which will offer more than 260
homes and will include our award-winning memory care
concept for people living with dementia.
We continue to progress our Boulcott village in Lower
Hutt and have applied to Hutt City Council for resource
consent. This village will provide much-needed
accommodation and care to older people in the area as
there are limited options currently. The village will also
play a vital role in freeing up housing for the wider
community. We have a long wait list of people already
interested in the village. In addition, we have applied for
resource consent for our Kenepuru village in northern
Wellington. We hope to progress our consent
applications for these villages as quickly as possible.
The pressure we have seen in the Auckland construction
market is not reducing, although we remain on track to
deliver 450 retirement units across New Zealand this
year. Our construction focus in Auckland is to complete
our Hobsonville village, the main apartment buildings at

Pg 11
the Ellerslie village, and new villa builds at our Karaka and
Warkworth villages.
We continue to progress with the planning and design
of our two greenfield Auckland sites in Parnell and
St Johns. Resource consent for our proposed village in
St Johns has recently been declined. We are currently
working through this decision but remain confident we
will be able to progress a successful village on this site.
As with our Boulcott village, there is strong demand
already for homes in the village, which, if approved, will
consist of 344 homes.
Our Parnell site is strategically located beside the Parnell
train station, with close links to the Auckland Domain,
Parnell village and Auckland CBD. Given the higher
building density expected on this site, its strategic
location and the unique nature of the project, we have
appointed Warren and Mahoney as our lead architects
for the village. Concept planning has progressed well
and we are starting to prepare the appropriate resource
consent applications.
In April, we purchased our fourth Hawke’s Bay site on
Eriksen Road, Te Awa. The 9 hectare property is close to
the popular 18-hole Maraenui Golf Club, the coastline
along Marine Parade, and is about 4km south of
Napier’s CBD. We have also purchased land to build our
second New Plymouth village. The proposed 8.1 hectare
site is close to the coast, and is about 7km east of
New Plymouth’s CBD. It has sea views and outlook to
Mount Taranaki.
Our investigation into possible Australian expansion
continues and we are making good progress. We will
continue to work through the appropriate diligence
required, and will make further announcements
regarding the nature and timing of this expansion
as appropriate.
Our people
In May, we introduced additional staff benefits to further
strengthen our employee offering. Our range of staff
benefits includes free health insurance, funeral cover,
travel voucher prizes, discounts at a range of Summerset
suppliers, a free staff share scheme, sick leave from the
first day of employment, a day of leave on a staff
member's birthday, contributions to staff charity
fundraising efforts and various types of special leave,
including domestic abuse leave.
Pleasingly, we have seen the staff attrition rate at our
villages drop by 8% in the last 12 months. The company-
wide attrition rate has reduced almost 7% over the same
period. We believe this is a result of both the continued
investment we are making in our staff and the
Government’s equal pay settlement.
We are starting to see shortages in care workers in some
areas, and believe the immigration changes introduced
by the previous Government are causing this. We believe
it is important that the current Government recognises
the importance of immigration alongside local training
and development. This will ensure we have trained,
competent and caring staff available to look after our
older people. We have watched closely the pay
settlement for public sector nurses and will be making
the appropriate adjustments for our own nurses.
Our health and safety vision is that every staff member
goes home safely without harm each day. We continue
to implement measures to achieve this. Most recently,
following a trial of compulsory gloves for all construction
workers on site in Casebrook, Christchurch, we are now
introducing this practice in all our new construction sites.
The second half of the year will see the rollout of new
uniforms to our village staff. There will be more detail to
come on the uniforms themselves, but we look forward
to presenting our staff with a uniform that is designed to
be fit for purpose and that they will be proud to wear.
We have also made a significant investment in our
Human Resources Information System. This will see the
complete implementation of a new payroll system later
this year. This is being rolled out in two stages; the first
stage affected head office and construction staff in May.
The second stage is currently underway in our villages.
This will eliminate a large number of manual and
cumbersome processes and is one of a number of
systems-related investments we have been making in
the business.
Recent media around the Australian Prudential
Regulation Authority's investigation into the
Commonwealth Bank of Australia showed significant
shortcomings in governance, culture and accountability.
This report came out in the midst of a number of
revelations seen in the Australian inquiry into practices
in the banking sector. We have considered the relevance
of these for our business. A particular focus for us is
ensuring the voice of our customer is heard.
Summerset’s CEO and General Manager Operations and
Customer Experience visit all our villages each year to
talk to residents face to face. Board members also visit
villages on a regular basis to engage directly with
residents and staff. These are critical points of interaction
with our customers. In addition, we have subject matter
experts on key board committees, an annual resident
satisfaction survey, structured quarterly meetings with
friends and families of care residents, and our own
clinical quality audit team reviewing care centre
performance. We have also recently appointed a
Customer Advocate, who assists in ensuring
management are hearing from, and listening to, our
residents. However, we note that complacence is an
ever-present risk and we will continue to test and
challenge our approach in this area.

Pg 12
Summerset CEO, Julian Cook, alongside Bowls New Zealand CEO, Mark Cameron.
Our residents
In September 2017, we began the rollout of our new
resident management system, VCare, which is
a New Zealand-made software system specifically
designed for retirement villages and care centres. VCare
has now been introduced in all our villages, replacing our
previous internally developed system. We are currently
implementing the clinical care functionality of VCare
and will train more than 800 care staff in VCare this year.
The move from a paper-based system to an electronic
one allows all vital care-related information to be
recorded in one place, from charts and measurements,
to progress notes from our staff and visiting GPs or
physiotherapists. Our caregivers will be using iPads to
access and update resident information. To date, the
rollout of the care functionality has gone well. We will
provide an update on this in the full year report.
Earlier this year, we introduced a new food service to
our villages. Three regionally based caterers, White Tie
Health Services, Kerr and Ladbrook and Cater Plus,
together with an in-house team at our Levin and
Paraparaumu villages, offer locally sourced, wholesome
food prepared onsite for our Divine cafés, Divine
at Home service and our care centres. Food is a very
important part of a resident’s experience and we
focused on getting the right providers for our villages.
We have partnered with both Bowls New Zealand and
New Zealand Indoor Bowls, which we think is a perfect
alignment with our purpose of bringing the best of life to
residents. Through these partnerships we are helping
bring players together to enjoy two popular sports,
including the many Summerset residents who play for
a local bowls club. We hope many more will discover
the joy of the game.
Looking ahead
As Summerset continues to grow, we want to ensure we
are responsible about the environmental impact of
our villages, so are pleased we will be working towards
Certified Emissions Measurement and Reduction
Scheme certification. The scheme allows us to measure
our greenhouse gas emissions accurately and put in
place strategies to manage and reduce our impact on
the environment. We are currently collecting data to help
measure the carbon footprint at our offices and villages,
with the intention of completing a verification audit
by the end of the year before setting short, medium and
long term reduction targets.
It is a pleasure to present this report to our investors.
Summerset will continue to work hard to deliver high-
quality retirement living for our residents and
subsequent financial results that benefit our investors,
residents and staff.
Rob Campbell
Chair
Julian Cook
Chief Executive Officer

Pg 13
An apartment lounge at Summerset by the Lake, Taupo.

Pg 14
Financial Statements
Income Statement
For the six months ended 30 June 2018
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
NOTE$000$000$000
Care fees and village services43,26834,12674,505
Deferred management fees22,34116,53935,804
Interest received5946184
Total revenue65,66850,711110,493
Reversal of impairment on land--15
Fair value movement of investment property4
78,33287,091217,954
Total income144,000137,802328,462
Operating expenses3
(52,920)(39,603)(88,587)
Depreciation and amortisation expense
(2,892)(2,060)(4,628)
Total expenses(55,812)(41,663)(93,215)
Operating profit before financing costs88,18896,139235,247
Net finance costs
(5,377)(5,474)(11,521)
Profit before income tax82,81190,665223,726
Income tax expense(839)(412)(290)
Profit for the period81,97290,253223,436
Basic earnings per share (cents)737.2241.37102.23
Diluted earnings per share (cents)736.5340.67100.46
Net tangible assets per share (cents)7377.85285.72347.56
The accompanying notes form part of these interim financial statements.

Pg 15
Statement of Comprehensive Income
For the six months ended 30 June 2018
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
NOTE$000$000$000
Profit for the period81,97290,253223,436
Fair value movement of interest rate swaps(1,851)(1,442)(3,043)
Tax on items of other comprehensive income519405851
Loss on translation of foreign currency operations(2)--
Other comprehensive income that will be reclassified
subsequently to profit or loss for the period net of tax
(1,334)(1,037)(2,192)
Fair value movement of care centre land and buildings--18,934
Tax on items of other comprehensive income--(5,036)
Other comprehensive income that will not be
reclassified subsequently to profit or loss for the period
net of tax
--13,898
Total comprehensive income for the period80,63889,216235,142
The accompanying notes form part of these interim financial statements.

Pg 16
Statement of Changes in Equity
For the six months ended 30 June 2018
SHARE
CAPITAL
FOREIGN
CURRENCY
TRANSLATION
RESERVE
HEDGING
RESERVE
REVALUATION
RESERVE
RETAINED
EARNINGS
TOTAL
EQUITY
$000$000$000$000$000$000
As at 1 January 2017249,030-(3,520)11,043289,062545,615
Profit for the period----90,25390,253
Other comprehensive
loss for the period
--(1,037)--(1,037)
Total comprehensive
income/(loss) for the
period
--(1,037)-90,25389,216
Dividends paid----(11,159)(11,159)
Shares issued3,545----3,545
Employee share plan
option cost
369----369
As at 30 June 2017
(unaudited)
252,944-(4,557)11,043368,156627,586
Profit for the period
----133,183133,183
Other comprehensive
income/(loss) for the
period
--(1,155)13,898-12,743
Total comprehensive
income/(loss) for the
period
--(1,155)13,898133,183145,926
Dividends paid
----(8,698)(8,698)
Shares issued
4,019----4,019
Employee share plan
option cost
451----451
As at 31 December 2017
(audited)
257,414-(5,712)24,941492,641769,284
Profit for the period----81,97281,972
Other comprehensive
loss for the period
-(2)(1,332)--(1,334)
Total comprehensive
income/(loss) for the
period
-(2)(1,332)-81,97280,638
Dividends paid----(15,711)(15,711)
Shares issued5,785----5,785
Employee share plan
option cost
504----504
As at 30 June 2018
(unaudited)
263,703(2)(7,044)24,941558,902840,500
The accompanying notes form part of these interim financial statements.

Pg 17
Statement of Financial Position
As at 30 June 2018
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
NOTE$000$000$000
Assets
Cash and cash equivalents14,73213,0607,566
Trade and other receivables27,23719,75025,416
Interest rate swaps2,082-1,193
Property, plant and equipment128,08989,458118,506
Intangible assets6,6803,5785,562
Investment property42,240,8151,806,2762,058,085
Total assets2,419,6351,932,1222,216,328
Liabilities
Trade and other payables
69,15859,65151,858
Employee benefits6,9794,8836,733
Revenue received in advance59,62339,37250,493
Interest rate swaps
9,7846,3317,934
Residents’ loans5
1,037,353867,226966,627
Interest-bearing loans and borrowings6
379,689315,309347,170
Deferred tax liability
16,54911,76416,229
Total liabilities1,579,1351,304,5361,447,044
Net assets840,500627,586769,284
Equity
Share capital
263,703252,944257,414
Reserves17,8956,48619,229
Retained earnings558,902368,156492,641
Total equity attributable to shareholders
840,500627,586769,284
The accompanying notes form part of these interim financial statements.
On behalf of the Board
Rob Campbell
Director and Chair of
the Board
James Ogden
Director and Chair of the
Audit Committee
Authorised for issue on 13 August 2018

Pg 18
Statement of Cash Flows
For the six months ended 30 June 2018
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
NOTE$000$000$000
Cash flows from operating activities
Receipts from residents for care fees and village services43,20334,89672,424
Interest received5946184
Payments to suppliers and employees(50,510)(37,759)(80,565)
Receipts for residents' loans - new occupation right
agreements
75,67673,698181,574
Net receipts for residents' loans - resales of occupation
right agreements
24,38115,54234,099
Net cash flow from operating activities92,80986,423207,716
Cash flows to investing activities
Purchase and construction of investment property:
Construction of new investment property
(79,818)(89,885)(202,744)
Purchase of land
(2,022)(7,578)(27,840)
Refurbishment of existing investment property
(2,313)(1,404)(3,937)
Purchase and construction of property, plant and
equipment:
Construction of new care facilities
(9,236)(4,678)(10,319)
Refurbishment of existing care facilities
(280)(230)(752)
Other(2,445)(1,034)(1,643)
Purchase of intangible assets(1,702)(2,357)(4,457)
Capitalised interest paid(3,983)(2,497)(5,802)
Net cash flow to investing activities(101,799)(109,663)(257,494)
Cash flows from financing activities
Net proceeds/(repayments) from bank borrowings31,44341,333(26,136)
Proceeds from issue of retail bonds--100,000
Proceeds from issue of shares5,7853,5457,564
Interest paid on borrowings(5,361)(6,073)(12,881)
Dividends paid8(15,711)(11,159)(19,857)
Net cash flow from financing activities
16,15627,64648,690
Net increase/(decrease) in cash and cash equivalents7,1664,406(1,088)
Cash and cash equivalents at beginning of period7,5668,6548,654
Cash and cash equivalents at end of period14,73213,0607,566
The accompanying notes form part of these interim financial statements.

Pg 19
Reconciliation of operating results and operating cash flows
For the six months ended 30 June 2018
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
$000$000$000
Net profit for the period81,97290,253223,436
Adjustments for:
Depreciation and amortisation expense2,8922,0604,628
Reversal of impairment on land--(15)
Loss on sale of plant and equipment765182
Fair value movement of investment property(78,332)(87,091)(217,954)
Net finance costs paid5,3775,47411,521
Deferred tax839412290
Deferred management fee amortisation
(22,341)(16,539)(35,804)
Employee share plan option cost
521369820
(90,968)(95,264)(236,432)
Movements in working capital
Increase in trade and other receivables
(3,324)(3,984)(9,824)
Increase/(decrease) in employee benefits
246(119)1,731
Increase in trade and other payables
3,0413,299877
Increase in residents’ loans net of non-cash amortisation101,84292,238227,928
101,80591,434220,712
Net cash flows from operating activities92,80986,423207,716
The accompanying notes form part of these interim financial statements.

Pg 20
Notes to the
Financial Statements
For the six months ended 30 June 2018
1. Summary of accounting policies
The interim financial statements presented for the six months ended 30 June 2018 are for Summerset Group Holdings Limited ("the
Company”) and its subsidiaries (collectively, “the Group”). The Group develops, owns and operates integrated retirement villages,
rest homes, memory care centres and hospitals for older New Zealanders.
Summerset Group Holdings Limited is registered in New Zealand under the Companies Act 1993 and is an 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.
The interim 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. NZ GAAP in this instance being New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS) and is in compliance with NZ IAS 34 – Interim Financial Reporting and IAS 34 – Interim
Financial Reporting.
These interim financial statements have been prepared using the same accounting policies as, and should be read in conjunction
with, the Group’s financial statements for the year ended 31 December 2017. During the period, NZ IFRS 15 – Revenue from contracts
with customers has been adopted with no impact on the accounting policies or disclosures of the Group. The interim financial
statements for the six months ended 30 June 2018 are unaudited. They are presented in New Zealand dollars, which is the Group’s
functional currency. All financial information has been rounded to the nearest thousand, unless otherwise stated.
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. The chief operating decision
makers, the Chief Executive Officer and the Board of Directors, review the operating results of the Group as a whole on a regular
basis. 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 Group is considering expansion into Australia. To date, the expenditure incurred has been immaterial to the Group and relates
primarily to consultancy and employment costs associated with considering the expansion.
2. Non-GAAP underlying profit
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
REF$000$000$000
Profit for the period81,97290,253223,436
Less fair value movement of investment propertya)(78,332)(87,091)(217,954)
Less reversal of impairment on landb)--(15)
Add realised gain on resalesc)14,91510,78524,936
Add realised development margind)25,82221,29450,970
Add deferred tax expensee)839412290
Underlying profit45,21635,65381,663

Pg 21
Underlying profit differs from NZ IFRS profit for the period. The Directors have provided an underlying profit measure in addition to
IFRS profit measures 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 that the Group uses
consistently across reporting periods. Underlying profit determines the dividend payout to shareholders.
This statement 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)Less reversal of impairment on land: remove the impact of non-cash care centre valuation changes recorded in NZ IFRS profit
for the period. Care centres are valued every three years (last 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 resale gains: 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 refurbishments.
d)Add realised development margin: add realised development margin across all new sales of occupation rights during the
period, 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 incurred during the build period; and
•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 these areas 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 deferred tax expense: 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.

Pg 22
Notes to the Financial Statements (continued)
3. Operating expenses
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
$000$000$000
Employee expenses30,58122,80250,487
Property-related expenses7,6346,11813,864
Other operating expenses14,70510,68324,236
Total operating expenses52,92039,60388,587
4. Investment property
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
$000$000$000
Balance at beginning of period2,058,0851,591,3631,591,363
Additions
104,410127,857248,856
Disposals(12)(35)(88)
Fair value movement:
Realised40,73732,07975,906
Unrealised
37,59555,012142,048
Total investment property2,240,8151,806,2762,058,085
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
$000$000$000
Development land measured at fair value
155,500149,300152,750
Retirement villages measured at fair value
1,871,6131,475,4541,733,828
Retirement villages under development measured at cost213,702181,522171,507
Total investment property2,240,8151,806,2762,058,085
The Group has deemed it is unable to reliably determine the fair value of the non-land aspects of retirement villages under
development at 30 June 2018 and therefore these are carried at cost. This equates to $213.7 million of investment property (Jun
2017: $181.5 million; Dec 2017: $171.5 million).
The fair value of investment property as at 30 June 2018 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 cashflow analysis to derive a net present value.
A desktop valuation was completed as at 30 June 2018. There has been no change in valuation technique since the previous full
valuation which was completed as at 31 December 2017 (next full valuation due as at 31 December 2018).
Significant assumptions used by the valuer include a discount rate of between 13.5% and 16.5% (Jun 2017: between 13.75% and 16%;
Dec 2017: between 13.5% and 16%) and a long-term nominal house price inflation rate of between 0% and 3.5% (Jun 2017 and Dec
2017: between 0% and 3.5%). Other assumptions used by the valuer include the average entry age of residents and occupancy
periods of units.

Pg 23
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 units. A significant decrease (increase) in the discount rate or the occupancy
period of 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.
Security
As at 30 June 2018, all investment property relating to Summerset’s village companies (being the 23 retirement village companies
registered under the Retirement Villages Act 2003) is subject to a first-ranking registered mortgage in favour of the Statutory
Supervisor (Public Trust). That mortgage secures the rights that Summerset’s residents have under their occupation right
agreements.
5. Residents' loans
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
$000$000$000
Balance at beginning of period
1,134,069924,848924,848
Net receipts for residents' loans - resales of occupation right agreements
18,82412,52227,647
Receipts for residents' loans - new occupation right agreements75,67673,698181,574
Total gross residents’ loans1,228,5691,011,0681,134,069
Deferred management fees receivable(191,216)(143,842)(167,442)
Total residents’ loans1,037,353867,226966,627
The fair value of residents’ loans at 30 June 2018 is $706.2 million (Jun 2017: $558.3 million; Dec 2017: $648.2 million). The method
of determining fair value is disclosed in Note 15 of the Group’s financial statements for the year ended 31 December 2017. As the fair
value of residents’ loans is determined using inputs that are unobservable, the Group has categorised residents’ loans as Level 3
under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.

Pg 24
Notes to the Financial Statements (continued)
6. Interest-bearing loans and borrowings
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
Coupon$000$000$000
Repayable after 12 months
Secured bank loansFloating279,282315,309247,839
Retail bonds4.78%100,000-100,000
Total loans and borrowings at face value379,282315,309347,839
Issue costs for retail bonds capitalised opening balance(1,840)--
Issue costs for retail bonds capitalised during the period--(2,007)
Issue costs for retail bonds amortised during the period167-167
Total loans and borrowings at amortised cost377,609315,309345,999
Fair value adjustment on hedged borrowings2,080-1,171
Total loans and borrowings379,689315,309347,170
The weighted average interest rate for the six months to 30 June 2018 was 3.56% (Jun 2017: six-month average 3.49%; Dec 2017: 12-
month average 3.57%). This includes the impact of interest rate swaps. 74% of the secured bank loans are hedged with interest rate
swaps at 30 June 2018 (Jun 2017: 69%; Dec 2017: 89%).
The secured bank loan facility as at 30 June 2018 has a maximum limit of $500.0 million (Jun 2017: $600.0 million; Dec 2017:
$500.0 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 bank 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.

Pg 25
7. Earnings per share and net tangible assets
Basic earnings per share
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
Earnings ($000)81,97290,253223,436
Weighted average number of ordinary shares for the purpose of earnings
per share (in thousands)
220,267218,141218,555
Basic earnings per share (cents per share)37.2241.37102.23
Diluted earnings per share
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
Earnings ($000)81,97290,253223,436
Weighted average number of ordinary shares for the purpose of earnings
per share (in thousands)
224,420221,910222,407
Diluted earnings per share (cents per share)36.5340.67100.46
Number of shares (in thousands)
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
Weighted average number of ordinary shares for the purpose of earnings
per share (basic)
220,267218,141218,555
Weighted average number of ordinary shares issued under employee share
plans
4,1533,7693,852
Weighted average number of ordinary shares for the purpose of earnings
per share (diluted)
224,420221,910222,407
At 30 June 2018, there were 4,094,072 shares issued under employee share plans (Jun 2017: 3,929,248; Dec 2017: 4,227,907 shares).
Net tangible assets per share
6 MONTHS
JUN 2018
UNAUDITED
6 MONTHS
JUN 2017
UNAUDITED
12 MONTHS
DEC 2017
AUDITED
Net tangible assets ($000)
833,820624,008763,722
Shares on issue at end of period (basic and in thousands)
220,676218,396219,740
Net tangible assets per share (cents per share)
377.85285.72347.56
Net tangible assets are calculated as the total assets of the Group minus intangible assets and minus total liabilities. This measure
is provided as it is commonly used for comparison between entities.

Pg 26
Notes to the Financial Statements (continued)
8. Dividends
On 22 March 2018, a dividend of 7.1 cents per ordinary share was paid to shareholders (2017: 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).
A dividend reinvestment plan applied to the dividend paid on 22 March 2018 and 810,284 ordinary shares were issued in relation to
the plan (2017: 687,184 ordinary shares were issued in relation to the plan for the 22 March 2017 dividend and 593,876 ordinary shares
were issued in relation to the plan for the 11 September 2017 dividend).
9. Capital commitments and contingencies
Capital commitments
At 30 June 2018, the Group had capital commitments in relation to construction contracts of $67.3 million (Jun 2017: $61.9 million;
Dec 2017: $63.9 million).
Contingent liabilities
There were no known material contingent liabilities at 30 June 2018 (Jun 2017: none; Dec 2017: none).
10. Subsequent events
On 23 July 2018, 95,996 shares were issued under the Group’s all-staff employee share plan at $7.7435 per share. The shares are
held by Summerset LTI Trustee Limited and vest to participating employees after a three-year period, subject to meeting the criteria
of the plan.
On 13 August 2018, the Directors approved an interim dividend of $13.5 million, being 6.0 cents per share. The dividend record date
is 28 August 2018, with payment on 10 September 2018.
In July 2018, a piece of land was purchased at Pohutukawa Place for our second site in New Plymouth.
There have been no other events subsequent to 30 June 2018 that materially impact on the results reported.

Pg 27
Review Report to the Shareholders of Summerset Group Holdings Limited (“the company”) and its subsidiaries
(together “the group”)
We have reviewed the interim financial statements on pages 14 to 26, which comprise the statement of financial position of the
group as at 30 June 2018 and the income statement, statement of comprehensive income, statement of changes in equity and
statement of cash flows of the group for the six month period ended on that date, and a summary of significant accounting policies
and other explanatory information.
This report is made solely to the company's shareholders, as a body. Our review has been undertaken so that we might state to
the company's shareholders those matters we are required to state to them in a review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's
shareholders as a body, for our review work, for this report, or for our findings.
Directors’ Responsibilities
The directors are responsible for the preparation and fair presentation of interim financial statements which comply with New
Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting and for such internal control as the directors
determine is necessary to enable the preparation and fair presentation of the interim financial statements that are free from material
misstatement, whether due to fraud or error.
Reviewer’s Responsibilities
Our responsibility is to express a conclusion on the interim financial statements based on our review. We conducted our review in
accordance with NZ SRE 2410 Review of Financial Statements Performed by the Independent Auditor of the Entity. NZ SRE 2410
requires us to conclude whether anything has come to our attention that causes us to believe that the financial statements, taken
as a whole, are not prepared in all material respects, in accordance with New Zealand Equivalent to International Accounting
Standard 34: Interim Financial Reporting. As the auditor of the group, NZ SRE 2410 requires that we comply with the ethical
requirements relevant to the audit of the annual financial statements.
Basis of Statement
A review of interim financial statements in accordance with NZ SRE 2410 is a limited assurance engagement. The auditor performs
procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with
International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on those financial statements.
Other than in our capacity as auditor we have no relationship with, or interests in, the group.
Conclusion
Based on our review nothing has come to our attention that causes us to believe that the accompanying interim financial statements,
set out on pages 14 to 26, do not present fairly, in all material respects, the financial position of the group as at 30 June 2018 and its
financial performance and cash flows for the six month period ended on that date in accordance with New Zealand Equivalent to
International Accounting Standard 34: Interim Financial Reporting
1
.
Our review was completed on 13 August 2018 and our findings are expressed as at that date.
Ernst & Young
Wellington

Pg 28
Directory
Auckland
Summerset Falls
31 Mansel Drive, Warkworth 0910
Phone (09) 425 1200
Summerset at Heritage Park
8 Harrison Road, Ellerslie,
Auckland 1060
Phone (09) 950 7960
Summerset at Karaka
49 Pararekau Road, Karaka 2580
Phone (09) 951 8900
Summerset at Monterey Park
1 Squadron Drive, Hobsonville,
Auckland 0618
Phone (09) 951 8920
Summerset Parnell*
23 Cheshire Street, Parnell 1052
Phone (09) 950 8212
Summerset by the Park
7 Flat Bush School Road, Flat Bush,
Auckland 2019
Phone (09) 272 3950
Summerset St Johns*
188 St Johns Road, St Johns 1072
Phone (09) 950 7982
Waikato
Summerset by the Lake
2 Wharewaka Road, Wharewaka,
Taupo 3330
Phone (07) 376 9470
Summerset down the Lane
206 Dixon Road, Hamilton 3206
Phone (07) 843 0157
Summerset Rototuna
39 Kimbrae Drive, Rototuna North 3281
Phone (07) 981 7822
Bay of Plenty
Summerset by the Sea
181 Park Road, Katikati 3129
Phone (07) 985 6890
Hawke's Bay
Summerset in the Bay
79 Merlot Drive, Greenmeadows,
Napier 4112
Phone (06) 845 2840
Summerset in the Orchard
1228 Ada Street, Parkvale,
Hastings 4122
Phone (06) 974 1310
Summerset Te Awa*
136 Eriksen Road,
Te Awa, Napier 4110
Phone (06) 833 5852
Summerset in the Vines
249 Te Mata Road,
Havelock North 4130
Phone (06) 877 1185
Taranaki
Summerset Mountain View
35 Fernbrook Drive, Vogeltown,
New Plymouth 4310
Phone (06) 824 8900
Summerset New Plymouth*
56 Pohutukawa Place,
New Plymouth 4312
Phone (06) 824 8532
*
Proposed villages

Pg 29
Manawatu – Wanganui
Summerset by the Ranges
102 Liverpool Street, Levin 5510
Phone (06) 367 0337
Summerset in the River City
40 Burton Avenue, Wanganui East,
Wanganui 4500
Phone (06) 343 3133
Summerset on Summerhill
180 Ruapehu Drive, Fitzherbert,
Palmerston North 4410
Phone (06) 354 4964
Wellington
Summerset at Aotea
15 Aotea Drive, Aotea, Porirua 5024
Phone (04) 235 0011
Summerset on the Coast
104 Realm Drive, Paraparaumu 5032
Phone (04) 298 3540
Summerset at the Course
20 Racecourse Road, Trentham,
Upper Hutt 5018
Phone (04) 527 2980
Summerset Kenepuru*
Bluff Road, Kenepuru,
Porirua 5022
Phone (04) 230 6722
Summerset Lower Hutt*
Boulcott's Farm, Military Road,
Lower Hutt 5010
Phone (04) 568 1442
Nelson – Tasman
Summerset Richmond*
1 Hill Street North, Richmond 7020
Phone (03) 744 3432
Summerset in the Sun
16 Sargeson Street, Stoke,
Nelson 7011
Phone (03) 538 0000
Canterbury
Summerset Avonhead*
120 Hawthornden Road, Avonhead,
Christchurch 8042
Phone (03) 357 3202
Summerset on Cavendish
147 Cavendish Road, Casebrook,
Christchurch 8051
Phone (03) 741 3340
Summerset at Wigram
135 Awatea Road, Wigram,
Christchurch 8025
Phone (03) 741 0870
Otago
Summerset at Bishopscourt
36 Shetland Street, Wakari,
Dunedin 9010
Phone (03) 950 3110
*
Proposed villages

Pg 30
Company Information
Registered offices
New Zealand
Level 27, Majestic Centre,
100 Willis Street, Wellington 6011,
New Zealand
PO Box 5187,
Wellington 6140
Phone: +64 4 894 7320
Email: reception@summerset.co.nz
www.summerset.co.nz
Australia
Deutsche Bank Place,
Level 4, 126 Phillip Street,
Sydney, NSW 2000
Australia
Auditor
Ernst & Young
Bankers
ANZ Bank New Zealand Limited
ASB Bank Limited
Bank of New Zealand Limited
Statutory Supervisor
Public Trust
Bond Supervisor
The New Zealand Guardian Trust Company Limited
Share Registrar
Link Market Services
PO Box 91976, Auckland 1142,
New Zealand
Phone: +64 9 375 5998
Email: enquiries@linkmarketservices.co.nz
Directors
Rob Campbell
Dr Marie Bismark
James Ogden
Gráinne Troute
Anne Urlwin
Dr Andrew Wong
Company Secretary
Leanne Walker

Dunedin
Casebrook
Paraparaumu
Levin
Palmerston North
Wanganui
New Plymouth
Richmond
Nelson
Lower Hutt
Trentham
Havelock North
Hastings
Napier
Te Awa
Taup o
Katikati
Manukau
St Johns
Warkworth
Hobsonville
Ellerslie
Karaka
Parnell
Hamilton
Rototuna
Completed villages
In development
Proposed villages
Aotea
Wigram
Kenepuru
Avonhead
New Plymouth

---

Summerset Group Holdings Limited
Results for announcement to the market

Reporting Period Six months to 30 June 2018
Previous Reporting
Period
Six months to 30 June 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
NZ$65,668 +29.5%
Total income from
ordinary activities
NZ$144,000 +4.5%
Profit from ordinary
activities after tax
attributable to security
holder
NZ$81,972 -9.2%
Net profit attributable to
security holders
NZ$81,972 -9.2%
Underlying profit NZ$45,216 +26.8%

Final Dividend Amount per security Imputed amount per
security
NZ 6.0 cents per share Not imputed

Record Date 28 August 2018
Dividend Payment Date 10 September 2018
Dividend Reinvestment
Plan
Applies at 2% discount

Comments: A brief See also other attached documents (half year
report, media release, results presentation and
Appendix 7).

Underlying profit differs from NZ IFRS net profit
after tax. 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.

---

APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
x
whether:
Interim
X
YearSpecialDRP Applies
x
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
28 August, 201810 September, 2018
10 September, 2018
New Zealand DollarsNil
$13,492,458
Date Payable
$1.98 cents per shareNil
$
In dollars and cents
Revenue Reserves
6.0 cents per share
Nil
Enter N/A if not
applicable
Ordinary SharesNZSUME0001S0
(04) 894 736113082018
EMAIL: announce@nzx.com
Notice of event affecting securities
Summerset Group Holdings Limited
Leanne WalkerDirectors' Resolution