Annual Meeting – Chair’s Address

OCEANIA HEALTHCARE

2 Hargreaves Street, St Mary’s Bay, Auckland 1011
PO Box 9507, Newmarket, Auckland 1149, New Zealand
P +64 9 361 0350 F + 64 9 361 0351
www.oceaniahealthcare.co.nz

ANNUAL MEETING - CHAIR’S ADDRESS
28 AUGUST 2018

It has been another successful year, with Oceania Healthcare exceeding forecast profit as well
as making great progress with the execution of our strategy to create long-term value.
We are well underway with the build out of our brownfields development pipeline, with
Meadowbank Stage Three and 25 new villas at Elmwood (both here in Auckland) completed in
the past year, as well as new villas in Nelson and in Taupo. All of these projects were delivered
on time and on budget.
We have five major construction projects underway at the moment, at The BayView (previously
called Melrose, in Tauranga) with Stage One being on track for completion in October 2018,
Stage Four development at Meadowbank, due to complete by May 2019, The Sands (in Browns
Bay, Auckland), which is also scheduled to be completed in May 2019,at Trevellyn in Hamilton
where Stage One is well underway, and at Green Gables in Nelson, where we have just
commenced our new development.
Earl will take you through the details of each of these projects shortly, but with all this
development going on, I think it is worthwhile pausing for a moment and reflecting on the fact
that we are effectively undertaking the “once in every 50 years” redevelopment of sites that have
been acquired over a long period of time. It is a fantastic opportunity to properly consider the
overall design of these amazing sites, such as The BayView and Trevellyn, and to maximise the
significant potential at these sites, for the benefit of future residents. Most of the sites that are
being redeveloped are located in premium locations close to major centres, and the quality of
the end product is very high as a consequence of this.
In planning the design of our new developments, our team is very focused on anticipating future
requirements and trends in aged care. We are looking not only at what the requirements of our
current residents are, but we are also looking ahead and thinking about how to provide our
service delivery to meet the desires of future residents. These future residents are likely to
demand premium services and expect to have a choice in the range of hospitality services
available to them. We are working hard to build quality products and deliver exceptional services
that exceed the expectations of our residents.
We have a clear growth strategy in the aged care sector. Once the current pipeline of
developments has been completed and our new care beds are sold as care suites under the
ORA model or have premium accommodation charges attached to them, there will be
sustainable earnings in the care model. The balance sheet will also be strong enough to enable
the acquisition of new greenfields or development sites.
Over the last year, our Directors have visited many of our sites around the country. A number
of our Board Meetings are held at sites, where the Directors get the opportunity to speak with
our Business and Care Managers and other staff. It is great to see the enthusiasm, energy and
passion of our staff and the commitment that they have to providing top quality care to our
residents. In addition, the Directors regularly visit construction sites around the country (both
individually and collectively as a Board) to observe progress on the developments.

OCEANIA HEALTHCARE







We were pleased to declare and pay a final dividend of 2.6 cents per share, which takes full year
dividends (non-imputed) to 4.7 cents per share, which represents 55% of Underlying Net Profit
after Tax. Looking ahead, we will be releasing our financial results for the six months to 30
November 2018 in late January 2019 and we will provide a further update on progress with our
developments at that time.
Thank you once again for attending this afternoon and I’d now like to hand over to Earl
Gasparich, our CEO, who will present our operating results and further detail on how we are
delivering growth this coming year.

ENDS