Financial Results for the Year Ended 31 December 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

22 FEBRUARY 2019

21% FY18 UNDERLYING PROFIT GROWTH, TWO SITES ACQUIRED

Retirement village operator Summerset Group Holdings Limited has announced a net profit after
tax for the year ending 31 December 2018 of NZ$214.5 million, down 11% on FY17.

Underlying profit, which excludes the impact of unrealised movements in the fair value of
investment property was NZ$98.6 million, up 21% on the same period last year. Annual growth
in underlying profit has averaged 43% in the seven years since the company listed on the NZX
in November 2011.

Summerset CEO Julian Cook said “Summerset’s performance continues to be sound with the
21% growth in underlying profit achieved in an environment where property price growth in key
markets such as Auckland has moderated compared to prior years. This reflects good progress
made throughout the business and the consistent demand for what we offer residents.”

Net profit after tax was NZ$214.5 million, down 11% on the previous year, impacted by the fair
value movement on investment property. The lower fair value movement versus the
corresponding period in 2017 largely reflects the more moderate property market in some areas
of the country.

Mr Cook said Summerset was the fastest growing retirement village operator in New Zealand.
“In 2018 we built 454 new homes, in line with our guidance of 450 retirement units. This made
Summerset the largest builder in New Zealand of retirement units in the 2018 financial year. This
has never been a goal of the company but is indicative of the strong growth in the business
since listing.”

“In 2018 we completed villages in Wigram, Trentham, Katikati and Karaka. In 2019, we will
continue construction work on our Ellerslie, Hobsonville, Rototuna, Casebrook, Richmond, and
Avonhead villages, and commence construction in both Kenepuru, Wellington and Te Awa,
Napier.”

Summerset now has 25 villages completed or in development, and a land bank of nine
properties, including two new land purchases. The new sites are in Milldale, north of Auckland
and Waikanae on the Kapiti Coast, north of Wellington.

 Underlying profit for FY18 of NZ$98.6 million, up 21% on FY17
 Net profit after tax of NZ$214.5 million, down 11% on FY17
 Total assets of NZ$2.8 billion, up 24% on FY17
 640 total sales of occupation rights, down 6% on FY17
 454 new retirement units delivered, up 1% on FY17
 Land bank total of 3,910 retirement units and 540 care beds
 Final dividend of NZ 7.2 cents per share
 Development margin of 33.2%, up from 27.3% for FY17
 New land acquired in Milldale and Waikanae

Mr Cook said the new sites are in areas with strong demographics and he expects the villages to
be popular.

Estimated
village size
(hectares)
Location Approximate
number of
homes
Approximate
investment
(NZ$ million)
Milldale 6.0 New Milldale sub-division, 7km
north-west of Silverdale
292 200
Waikanae 8.0 Park Avenue, bordering on
Waikanae Park
290 150

Summerset’s care business continued its strong performance over 2018 with occupancy at
96.5% in established care centres. Resident satisfaction was also steady at industry-leading
levels of 97% for care residents and 95% for retirement village residents. This satisfaction result
was independently reviewed by KPMG.

Mr Cook said Summerset started work this year to become New Zealand’s first retirement village
operator with Dementia Friendly Accreditation.

Summerset has partnered with Dementia New Zealand and has a three year programme to help
educate New Zealanders about dementia, and to reduce the stigma of having the degenerative
brain disease.

Mr Cook said he was also pleased with the higher retention rate for staff this year, given
traditionally high levels of turnover in the aged care industry.

“We are continuing to invest in our people and in the technology they use,” he said.

“All of our village staff are now using VCare, a resident management system on iPads. This
allows them to see vital resident information at the touch of a button, and provides much
improved data which we analyse for trends and improvements.”

Staff engagement increased again to 69% in 2018. This puts Summerset in the top quartile of
the Aon Hewitt engagement survey which includes around 700 companies in New Zealand and
Australia.

Looking ahead, Mr Cook said Summerset’s focus in 2019 will be to continue delivering high
quality retirement living around New Zealand, and to further plans to set up across the Tasman.

“We’ve continued to progress in Australia and are now seeking land opportunities. We are
mindful of the property market conditions in the wider Melbourne area, which is our main area of
interest. We will apply the appropriate safety buffers to our financial feasibilities on any sites
acquired. We believe underlying demand for quality retirement village and aged care is strong.
Any site we acquire now would not be selling retirement units until two to three years from now,
by which time property market conditions will most likely have improved,” Mr Cook said.

The board has declared an unimputed final 2018 dividend of NZ 7.2 cents per share. The record
date will be Friday 8 March 2019 and the payment date Thursday 21 March 2019. This brings
the total dividend payment for 2018 to NZ 13.2 cents per share, up 20% on 2017. The dividend
reinvestment plan will apply to the dividend, with a discount of 2% applicable to those
shareholders participating in the plan.

ENDS

For investor relations enquiries: For media enquiries:
Scott Scoullar Jenny Bridgen
Deputy CEO and CFO Communications Manager
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 25 villages completed or in development across the country. In addition,
Summerset has nine sites for development in Parnell (Auckland), St Johns (Auckland),
Milldale (Auckland), Waikanae (Kapiti Coast), Te Awa (Napier), Pohutukawa Place (New
Plymouth), Papamoa (Tauranga), Kenepuru (Wellington) and Lower Hutt (Wellington),
bringing the total number of sites to 34.
 It provides a range of living options and care services to more than 5,000 residents.
 Silver Award winner in the Reader’s Digest Quality Service Awards 2019.
 The Summerset Group has villages in Aotea, Avonhead, Casebrook, Dunedin, Ellerslie,
Hamilton, Hastings, Havelock North, Hobsonville, Karaka, Katikati, Levin, Manukau,
Napier, Nelson, New Plymouth, Palmerston North, Paraparaumu, Richmond, Rototuna,
Taupo, Trentham, Wanganui, Warkworth and Wigram.

---

Annual Report 2018

Cover: Trentham resident Gail with Duke the dog.
Inside cover: Three generations of the Holmes family, Summerset on the Course.
This document is printed on 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
Chair and CEO Report6
Year in Review18
Business Performance30
Our Residents39
Our People49
Our Community59
Reducing Our Impact64
Board of Directors66
Executive Leadership Team68
Financial Statements71
Governance112
Remuneration122
Disclosures130
Directory136
Company Information138

ANNUAL REPORT 2018
4
Summerset
Snapshot
More than
5,000
residents
Largest builder of
retirement village units in
FY18 in New Zealand1
Fastest growing
retirement village operator
in New Zealand
1 As per 2018 full-year financial results
More than
1,400
staff members
3,732
Retirement units in
portfolio
454
Retirement units
built in FY18
858
Care beds in
portfolio
52
New care beds
delivered in FY18

SUMMERSET SNAPSHOT
5
2 As per 2018 full-year financial results
3 Independently reviewed by KPMG
97%
Care resident
satisfaction3
5
Land purchases
95%
Village resident
satisfaction3
Land bank of
3,910
retirement units
Land bank of
540
care beds
Largest land bank of
retirement units and care
beds in New Zealand2
25
Villages completed or
under construction
9
Greenfield sites

ANNUAL REPORT 2018
6
Chair and
CEO Report
Welcome to Summerset’s annual report for the financial year
ending 31 December 2018. We are pleased to report continued sound
financial performance with an underlying profit of $98.6 million, an
increase of 21% on 2017, and a net profit after tax of $214.5m. We now
have more than 5,000 residents who call Summerset home and over
1,400 staff.
You will see some changes in our annual report
this year. Readers of our reports over the last few
years will have noted our continuing investment
in improving our resident experience, the overall
attractiveness of our staff offering, and our
desire to play a greater part in our communities.
In this year’s report we have dedicated sections,
so readers can see our progress in each of
the business and financial, resident, staff and
community realms. We have also amalgamated
the Chair and CEO letters into a single letter
focused on key themes and issues for the
business.
Business and financial performance
Financial performance for the 2018 year has been
strong with the 21% growth in underlying profit
achieved in an environment where property
price growth, in key markets such as Auckland,
has moderated compared to prior years.
This is a pleasing result and due in a large part to
the consistent demand for what we offer.
Our customers are, on average, aged around
80 on entry to a village and it is the desire for
security, care and community that drives their
decision to move into a retirement village.
We note that our net profit after tax of $214.5m
was down 11% on the previous year. This
was due to the moderating property market
which impacted the fair value movement on
investment property.
We sold 339 new occupation rights in 2018, down
slightly on the previous year, and completed 301
resales. The slight dip in new sales was largely due

CHAIR AND CEO REPORT
7
to timing, some of our larger builds were delivered
late in the year. However, we are seeing continued
good demand for our retirement units. Offsetting
this lower number of new sales were strong
development margins, with a 33.2% development
margin on new sales for 2018 compared to
27.3% in 2017. In the longer term we expect
development margins in the 20%-25% range.
Operating cash flow for 2018
totalled $217.8 million and total
assets reached $2.8 billion.
The board has declared a final dividend of 7.2
cents per share. This is a total dividend payment
for 2018 of 13.2 cents per share and represents
30% of underlying profit.
In 2018 we built 454 retirement units, in line
with our earlier guidance. This result makes
Summerset the largest builder of retirement units
in New Zealand for 2018. While this is not one of
our goals, the achievement clearly demonstrates
Summerset’s growth since its listing in 2011, when
we built 122 retirement units.
We have previously signalled that we see our build
rate increasing to an average of 600 retirement
units a year. We are on track to achieve this within
the next two to three years. We will continue to
build only when customer demand and financial
return levels are appropriate, but market demand,
viable projects, and our ability to deliver make this
increase a natural progression.
To support our building programme and meet our
target build rates, we announced the acquisition
of three sites during 2018. These were Te Awa,
Napier and sites in New Plymouth and Papamoa.
In February 2019 we announced the acquisition
of two further sites; Waikanae (on the Kapiti Coast
north of Wellington) and Milldale (near Orewa,
north of Auckland).
These sites are described in more detail further in
this report. Overall they represent a mix of urban
and attractive regional areas with good underlying
customer demand. These recent acquisitions
bring our total number of greenfield sites to 9,
on top of our 25 villages completed or under
construction.
A villa from our Ellerslie village, Summerset at Heritage Park.

ANNUAL REPORT 2018
8
As Summerset continues to grow, so will our land
banking programme. We are currently seeing a
range of attractive sites around New Zealand. We
have held back from acquiring smaller urban sites
that would require high rise buildings over the
last few years, due to having a good selection of
these projects in Auckland already (for example
Hobsonville, Ellerslie, St Johns, Parnell). The
pressurised construction market, high vendor
expectations for land prices, and flattening
residential property prices are other factors.
We continue to see good
underlying customer demand
in these areas and expect
this to only pick up over time.
Villages in these urban locations are attractive
and, at the right time, we will return to purchasing
such sites. Having a diverse portfolio in terms of
geography and construction types (ie single-level
units and high-rise urban) has been a strength of
the business. This has meant having the flexibility
to focus our landbanking and growth in the
market providing the best risk-adjusted returns.
Pleasingly we received a number of resource
consent approvals in 2018 with Te Awa (Napier),
Richmond (Nelson), Kenepuru (Wellington) and
Avonhead (Christchurch) all getting the official
go-ahead. Earthworks and civil works have
started on each of these three sites and we have
seen good early customer interest. Our consent
application for the St Johns village in Auckland
was declined. We have appealed this decision
and are engaging with parties in mediation, and
we remain confident of a positive resolution.
The land-use resource consent for our Boulcott
village in Lower Hutt has been referred to the
Environment Court on our request and this case
will be heard in 2019.
Our flagship Parnell project is progressing well. We
have appointed renowned architects Warren and
Mahoney to the project and will have concepts of
the village ready for resource consent lodgement
later this year, or early 2020. Our Parnell village will
provide all the benefits of retirement village living
while taking advantage of the city fringe location
and, its proximity to Parnell village, the Auckland
Domain, and the adjacent train station.
White Tie Catering at our Divine Café, Summerset at Heritage Park.

CHAIR AND CEO REPORT
9
We are still seeing capacity constraints for
construction in many areas of New Zealand with
Auckland being the worst affected. We do not
expect the pressure in the construction market
to reduce in 2019. There were a number of
construction-related company failures in 2018 and
while we have had very limited exposure to any
of these, we believe 2019 may bring more issues
and Summerset will continue to be vigilant in this
area. We maintain strong relationships with our
contractors at all times.
Last year we completed our second bond issue
with a seven-year senior bond. The issue attracted
strong demand which saw us take $50m in
oversubscriptions and a final issue size of $125m
and coupon of 4.20%. Our two bonds provide
us an attractive form of funding, with long tenors,
competitive pricing, and attractive terms. They
also diversify the range of funding sources.
The gearing under our banking and bond
covenants remains conservative at 32.3%. This is
considerably below the maximum level of gearing
allowable under our debt agreements of 50%.
Unlike many businesses, our debt position is not
“core” debt but effectively working capital as
it funds only development assets for the business
such as land, work in progress, and completed
retirement units. As such we are able to
reduce our debt levels quickly by altering the
pace of our development business. Given the
increased degree of uncertainty in property and
global markets generally, we plan to maintain a
relatively conservative approach to gearing. This
is designed to protect us against any unforeseen
shocks as well as provide the ability to pursue
attractive opportunities should they emerge. We
believe we are able to achieve our guidance of
building around 600 retirement units per annum
whilst maintaining this conservative approach
to gearing.
Operations and care
Our operations and care business has continued
to perform well with care centre occupancy at
96.3% for 2018.
We finished the rollout of two large IT projects
in 2018. VCare, our new resident management
system, has been introduced across all our
villages and corporate offices. It replaced our
previous internally developed system. This has
been an important project with a large dedicated
project team and significant investment. Using
VCare means our nurses and caregivers have
up-to-date health information at their fingertips,
and can record patient notes quickly and easily
for care residents.
We also completed the implementation of a new
Human Resources Information System (HRIS),
transitioning payroll for all staff onto a modern
system; thereby streamlining processes and
improving usability.
A government review of care funding is underway
currently, and results are expected for release
in 2019. Our strategy in the care business is to
focus on being a leading provider of quality
care, and investing in facilities, equipment and
people in order to do this. This position ensures
we can charge additional service fees for the
superior care and accommodation we provide.
The strategy has worked well for us and we
will continue to pursue it, given constraints on
government funding.
From a sector perspective, hearings for the
Australian Royal Commission into Aged Care and
Quality and Safety started in January and, as with
their inquiry into banking, we expect there will
be a number of negative revelations.  Everyone
has a right to safe, respectful and quality aged
care.  We will be following the inquiry very closely
and will continue to invest time into ensuring we
stay ahead of expectations and are providing
services we are proud of.
We will continue to do what
we’ve done since we started
21 years ago – consistently
lifting the quality of retirement
and aged care for older people.

ANNUAL REPORT 2018
10
Residents
Bringing the best of life to our residents is our key
focus and we measure our success through
an annual resident satisfaction survey. 2018 results
continued the trend of strong satisfaction levels
with village resident satisfaction at 95% (97% in
2017) and care resident satisfaction at 97% (the
same as in 2017). Over the last few years we have
focused on lifting property standards, resolving
issues faster, and having greater presence of head
office staff with our residents.
Food and hospitality is an essential part of village
life and we introduced new food providers across
our villages in 2018, including in-house catering
at our Levin and Paraparaumu villages. This has
seen resident satisfaction levels rise and we will
continue to work on lifting standards further in
2019 and beyond.
Summerset was a silver winner
in the Reader’s Digest annual
2019 Quality Service Awards.
We also opened our Casebrook village in
Christchurch and Rototuna village in Hamilton
in 2018 with our first residents now settled in,
and main buildings, including our new memory
care concept, planned for completion towards
the end of this year.
The Summerset brand
In 2017 we rebranded Summerset, introducing
a fresh, vibrant look and feel – with a new logo,
website, redesigned marketing materials, and an
upgraded social media presence on Facebook
and LinkedIn. Our new staff uniforms are
consistent with this branding. The last step of
this rebrand was a new television advertisement
which went to air in late 2018.
We have started tracking our brand penetration,
that is, who knows about us and what they think
about us. Our research shows that people who
know us, like us a lot, but we have the opportunity
to lift awareness in a number of areas around the
country where we are less well known.

We published four editions
of our new quarterly magazine,
Summerset Scene, in 2018,
celebrating the lives of our
amazing residents.
The magazine brings the best of our residents’
lives into print each quarter, reminding us all of
the vibrant life lived in our villages.
Our People
Our people strategy is simple – to be the
employer of choice in our sector. Skilled and
experienced staff, who are engaged in their
work, are absolutely critical to our ability to
provide the best of life for our residents. We have
invested heavily in improving what we do for staff
and how we work together. We measure staff
engagement through the Aon survey. In 2015,
our first year using the Aon survey, we had a
credible staff engagement score of 53%. This year
our engagement score was 69%. We are proud
of this result and it puts us in the top quartile of
Australasian employers, as measured against
the 700 Australian and New Zealand companies
participating in the survey.
We continued to strengthen our employment
offering throughout 2018 and benefits now
include 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 each staff member’s birthday,
contributions to staff charity fundraising efforts,
and various types of special leave, including
domestic abuse leave.
Last year we also introduced a brand new uniform
for frontline staff from Wellington designer Lucilla
Gray. Developed to better suit the work our staff
undertake each day, it has been well received by
our people. We now have a beautiful, professional,
and tailor-made uniform with enough variation
to suit most people’s tastes. We were delighted
to unveil our new look at the 2018 New Zealand
Fashion Week with Auckland staff providing willing
and able runway models.

CHAIR AND CEO REPORT
11
We signalled in our 2018 half year report a
growing shortage of care workers, particularly
nurses. The Government is currently considering
placing nurses back onto the long-term skills
shortage list, which would encourage additional
nurses to come to this country. We believe this is a
very important step given the demands for nurses
from the growth in aged care as well as demand
from District Health Boards (DHBs).
In response to the DHB wage
settlement for nurses, we
lifted wages significantly. It is
essential we have a skilled and
stable nurse workforce.
We have made good improvements in the staff
arena in the last few years but have more to do.
Our main focus in 2019 and beyond will be staff
training and development programmes. We will
be greatly assisted in this with the appointment of
a new General Manager Human Resources, Dave
Clegg. Dave was previously General Manager
of People and Culture at leading steel solutions
supplier, Steel & Tube Holdings Limited.
Keeping our people safe is an important aspect of
our work. We have continued our good progress
in health and safety with reductions in Reportable
Injury Frequency Rates (RIFR) and Lost-Time
Injury Frequency Rates (LTIFR) for the third year
running. We introduced compulsory gloves and
glasses on all Summerset construction sites this
year, and completed a pilot of improved training
on moving residents in our care centres. In 2017
we were accepted into the ACC Accredited
Employers Programme. In 2018 we advanced to
secondary status in this programme. This allows
us to manage our own workplace injury claims
and we are now working with specialist WorkAon
to manage assistance for our staff injured at work.
Summerset’s health and safety plans also
incorporate our residents, contractors and visitors.
Everyone who lives at or visits a Summerset
village can be confident the village meets every
health and safety standard.
Summerset’s new uniforms designed by Lucilla Gray.

ANNUAL REPORT 2018
12
Summerset’s place in the community
Our villages and residents are part of a wider
community and we believe in playing a positive
role in these communities. Last year we signalled
our intention to lift our social and environmental
presence. To this end we have announced a
number of key partnerships and completed
initiatives in 2018, including:
• Taking our first steps toward reducing
greenhouse gas emissions through the
Certified Emissions Measurement and
Reduction Scheme (CEMARS)
• Partnering with Dementia New Zealand, to
provide more education on this growing
disease while reducing the stigma of having it
• Partnered with Dementia New Zealand and
The New Zealand Dementia Coopoertative
to commission Nielsen to research dementia
perceptions, awareness and understanding in
New Zealand
• Sponsoring Bowls New Zealand and New
Zealand Indoor Bowls, helping players come
together to enjoy these popular sports
• A host of community relationships, including
Wellington Free Ambulance, the Orokonui
Ecosanctuary in Dunedin, sports tournaments
and health conferences around the country,
as well as the many local fundraising events
involving our residents and staff
Expansion across the Tasman
Taking the Summerset business into Australia has
been an active consideration for us over the last
year and we are now in the process of identifying
potential sites for acquisition. We completed
a restructure of our banking facilities in 2018,
introducing the Commonwealth Bank of Australia
to the banking syndicate (also comprising
ANZ and BNZ), and subsequently have the ability
to borrow funds in Australian dollars to fund
our expansion.
Property prices in the Melbourne residential
market are softening and have fallen 8%-9% over
the 2018 calendar year. A number of factors
appear to be at play, including reduced foreign
buyer demand, tightening credit conditions,
and fewer investors buying property. However,
underlying demand for retirement village
and aged care is not property market-related
and continues to grow. Nevertheless we are
proceeding cautiously given the property market
changes and will apply appropriate safety buffers
when considering the financial returns of any sites
purchased. We believe we are well protected
as any land purchase now would see units being
sold some two to three years from now, by which
time the residential property market should
have stabilised. We also note we expect some
good land-buying opportunities to emerge
in the current market.
Looking ahead
Our business is very well positioned for the
coming years. Although we may be entering a
period of greater uncertainty, we believe
our steady investment in the business will provide
stability. These include continual improvements
in people capability, our employment offer,
systems and processes, enhanced village designs,
and a stronger brand and service offering.
We have leading resident satisfaction results,
top-quartile staff engagement, solid earnings and
cashflow growth, and a strong balance sheet.
We are in a very strong position to not only
continue our growth but to meet the increasing
demand for the quality lifestyle we offer.
We would like to thank our residents for choosing
to live at Summerset, our staff for their hard
work bringing the best of life to our residents, to
our wider stakeholders for their involvement
in the business and to you, our shareholders, for
your ongoing support.
Rob Campbell
Chair
Julian Cook
Chief Executive Officer

Our residents enjoy performing to each other accross our villages.

ANNUAL REPORT 2018
14
From humble
beginnings
John wanted to build a retirement
village that would be good enough
for his Nana.
Room designed for four people at Jubilee Hospital in Wanganui.
Similar to the room John’s grandmother was in.
Prime Minister Jenny Shipley opening the Paraparaumu village
in 2000 with John and Rose O’Sullivan.
Mary Finnerty, John’s Nana, who was the catalyst for Summerset.
John wanted to build a retirement village
that would be good enough for his Nana.
In the mid 1990s, Summerset’s founder
John O’Sullivan visited his Nana, who had
moved into a geriatric ward in Waikanae.
“She was in what was basically a dormitory
with only a plastic curtain between beds,”
John remembers. “What room she had was
so pokey you could stretch out your arms
and touch all four walls. And all the facilities
were shared – nothing was hers, nothing
was private. When I investigated the market
I found all aged care was like that.”
That was the trigger for John to build an
aged care facility that he deemed good
enough for his Nana.
Twenty-one years later,
Summerset is a listed
company with 25 villages,
9 sites for development,
more than 5,000 residents,
more than 1,400 employees
and many thousands of
shareholders.
Residents can move in with the peace
of mind that Summerset will provide them
with the continuum of care they need.
While we’ve grown a lot bigger, and
are looking to double in size over the next
five years, we still put everything to the
ultimate test – is it good enough for Nana?

FIVE YEAR HISTORICAL SUMMARY
15
Five Year
Historical Summary
Key operational and financial statistics for the five year period up
to and including FY18 are as follows:
1 Fair value movement of investment property and the investment property balance have been restated for 2017.
Refer to note 1 of the financial statements comparative information for further details.
Operational
UNITFY18FY17FY16FY15FY14
New sales of occupation rightsNo.339382414333286
Resales of occupation rightsNo.301300244245172
Total sales of occupation rightsNo.640682658578458
Development margin%33.2%27.3%22.2%20.0%15.7%
New retirement units deliveredNo.454450409303261
Retirement units in portfolioNo.3,7323,2782,8282,4192,116
Care beds in portfolioNo.858806748616485
Financial
UNITFY18FY171FY16FY15FY14
Net operating cash flow$m2 17.8207.7192.6140.3110.4
Total assets$m2,766.42,232.81,706.81,363.51,043.2
Net assets$m978.8785.8545.6409.8332.3
Underlying profit$m98.681.756.637.824.4
Profit before income tax (IFRS)$m216.2240.2145.682.854.0
Profit for the period (IFRS)$m214.5239.9145.584.254.2
Dividend per shareCents13.2011.007.705.253.50
Basic earnings per shareCents97.13109.7866.9338.9425.16

ANNUAL REPORT 2018
16
250
200
150
100
50
Strong Financial
Performance
Financial performance since listing on the NZX in 2011
Total assets
$m
$m
$m
Net operating cash flow
0
0
0
‘11‘11‘12‘12‘13‘13‘14‘14‘15‘15‘16‘16‘17‘17‘18‘18
3,000
120
2,500
100
2,000
80
1,500
60
1,000
40
500
20
Underlying profit
‘11‘12‘13‘14‘15‘16‘17‘18
250
200
150
100
50
$m
Net profit after tax
0
‘11‘12‘13‘14‘15‘16‘17‘18

STRONG FINANCIAL PERFORMANCE
17
Care beds in portfolio
Units
Beds
0
0
3,000
600
800
4,0001,000
2,500
500
3,500
700
900
2,000
400
1,500
300
1,000
200
500
100
Retirement units in portfolio
‘11
‘11
‘12
‘12
‘13
‘13
‘14
‘14
‘15
‘15
‘16
‘16
‘17
‘17
‘18
‘18
Cents per share
0
12
14
10
8
6
4
2
Dividends per share
‘11‘12‘13‘14‘15‘16‘17‘18
Net tangible assets per share
Cents per share
0
300
400
450
250
350
200
150
100
50
‘11‘12‘13‘14‘15‘16‘17‘18

ANNUAL REPORT 2018
18
Year in Review
February
August
March
September
April
First residents moved into
Summerset on Cavendish,
Casebrook
Purchased land for second
New Plymouth village
Partnership with Dementia
New Zealand launched
Summerset announced
partnership with Bowls
New Zealand
Showcased new staff uniform at
New Zealand Fashion Week
$125m retail bond issued with
$50m oversubscription,
Summerset’s second bond issue
Purchased land in Te Awa,
Napier

YEAR IN REVIEW
19
October
May
November
June
December
July
Purchased land in Papamoa,
Tauranga
New payroll system
implemented for Village and
Care staff
Additional staff benefits are
announced
Implementation of new payroll
system for Head Office staff
Completed implementation of
VCare system for resident data
Construction completed on
Karaka, Katikati and Wigram
villages
Applications opened for staff
to share in Summerset’s
success with the all staff free
share scheme
First retirement village operator
in New Zealand to obtain
CEMARS certification
Purchased land at Waikanae in
Kapiti and Milldale in Auckland
Construction completed on
Trentham village
First residents welcomed to
Summerset Rototuna, Hamilton

ANNUAL REPORT 2018
20
Portfolio Growth
21 years of consistent delivery and growth
’98’97
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
’99’00’01’02’03’04’05’06
129
90
188
63
58
124
63
126
219
407
470
528
652
732
795
921
129
80
129219407470528652732795
’07
62
983
921
* 2011 existing stock including 12 units acquired as part of the Nelson site acquisition

PORTFOLIO GROWTH
21
’08
126
1,109
983
163
80
122
160
209
261
303
1,272
1,352
1,486
1,646
1,855
2,116
2,419
2,828
’09’10’11’12’13’14’15’16’17’18
3,278
3,732
409
450
454
1,1 091,2721,364*1,4861,646
1,855
2,1162,4192,8283,278
Existing stock
New retirement units delivered

ANNUAL REPORT 2018
22
Strong Wave
of Growth
0
5,000
10,000
15,000
20,000
25,000
30,000
NZ population 75+ (left hand axis)
% of total population 75+ (right hand axis)
NZ population 75+ Per Annum Growth
New Zealand population aged 75+
Annual 75+ population growth, 2002 to 2068
(in five yearly intervals)
35,000
The New Zealand
population aged 75
and over is forecast
to more than triple in
the next 50 years.
The number of people aged
75 and over is projected to
increase from 315,000 in 2018
to 1,090,000 by 2068.
The number of people aged
85 and over is projected to
increase from 87,000 in 2018 to
400,000 in 2068.
Summerset will continue to
provide high quality retirement
living for this strong wave
of demand.
1998–2002
2003–2007
2008–2012
2013–2018
2019–2023
2024–2028
2027–2033
2032–2038
2037–2043
2042–2048
2047–2053
2052–2058
2057–2063
2058–2068
0
0
200,000
2%
400,000
4%
600,000
6%
800,000
8%
1,000,000
10%
1,200,000
12%
16%
1,400,000
14%
18%
Source: Statistics New Zealand - National Population Projections
‘97‘02‘07‘12‘18‘23‘33‘4 3‘53‘63‘28‘38‘4 8‘58‘68

STRONG WAVE OF GROWTH
23

ANNUAL REPORT 2018
24

BUSINESS HIGHLIGHTS
25
Business
Highlights
$ 2 17. 8 m
Operating cash flow
$2.8b
Total assets
33.2%
Development margin
$214.5m
Net profit after tax
$98.6m
Record underlying profit
640
Occupation right sales
Completed our Wigram,
Katikati, Karaka and
Trentham villages
Opened villages at
Casebrook in Christchurch
and Rototuna in Hamilton

ANNUAL REPORT 2018
26
Our
Villages
Dunedin
Casebrook
Paraparaumu
Levin
Palmerston North
Wanganui
New Plymouth
Richmond
Nelson
Lower Hutt
Papamoa
Havelock North
Hastings
Napier
Te Awa
Taupo
Katikati
Manukau
St Johns
Warkworth
Milldale
Hobsonville
Ellerslie
Karaka
Parnell
Hamilton
Rototuna
Completed villages
In development
Proposed villages
Aotea
Kenepuru
Wigram
Avonhead
Pohutukawa Place
Waikanae
Trentham

OUR VILLAGES
27
OUR VILLAGES
Mahjong is just one of the many games our residents enjoy playing.

ANNUAL REPORT 2018
28

FINANCIAL HIGHLIGHTS
29
Financial
Highlights
$214.5m
Net profit after tax FY18
11%
Decrease on FY17
$98.6m
Underlying profit FY18
21%
Increase on FY17
$2.8b
Total assets
24%
Increase on FY17
$ 2 17. 8 m
Operating cash flow
5%
Increase on FY17

ANNUAL REPORT 2018
30
Business
Performance
Our land bank
* New sites purchased
VillagesDesignConsentingConstructionVillage openFinal stages
Warkworth, Auckland
Hobsonville, Auckland
Ellerslie, Auckland
Rototuna, Hamilton
Casebrook, Christchurch
Richmond, Tasman
Avonhead, Christchurch
Kenepuru, Wellington
Te Awa, Napier*
St Johns, Auckland
Lower Hutt, Wellington
Parnell, Auckland
Papamoa, Tauranga*
Pohutukawa Place, New Plymouth*
Waikanae, Kapiti*
Milldale, Auckland*

BUSINESS PERFORMANCE
31
In 2018 we completed
construction on four
villages in Karaka,
Katikati, Wigram and
Trentham.
We warmly welcomed our
first residents into Hamilton’s
Rototuna and Christchurch’s
Casebrook villages. Meanwhile,
construction started at our
Richmond and Avonhead
properties with first residents
expected to move in during 2019.
Bevan and Margaret Bradding, our first residents at Rototuna village.
Rita Browne, our first Casebrook resident.

ANNUAL REPORT 2018
32
New sites acquired in 2018
The population of people aged over 75 years in New Zealand is forecast to more than triple in the
next fifty years. This statistic clearly shows why demand for quality retirement living will continue to
grow. Summerset now holds nine sites in its landbank, including the five land purchases made during
the year. We have increased the master planning capability in our development team to manage the
increasing demands of finding, securing and managing the resource consents for new pieces of land.
298 homes
Rest home and hospital level care
Memory care centre
Pohutukawa Place, New Plymouth
Summerset’s second New Plymouth property
is on an 8.1ha property in Waiwhakaiho.
New Plymouth’s over 75-year old population
is forecast to grow by around 37% over the
next decade.
Te Awa, Napier
We bought 9.0ha of land on Eriksen Road, Te
Awa for our fourth Hawke’s Bay village.
Napier City has a current over 75-year old
population of around 5,570 with a forecast
40% increase by 2028. Neighbouring Hastings
District’s over 75-year old population is
also forecast to increase strongly over the
next decade.
317 homes
Rest home and hospital level care
Memory care centre

BUSINESS PERFORMANCE
33
287 homes
Rest home and hospital level care
Papamoa, Tauranga
Summerset’s purchase of an 8.0ha property in
Papamoa Beach will become the site of
Summerset’s first Tauranga retirement village.
The village will provide much needed care
beds for Tauranga’s elderly population.
292 homes
Rest home and hospital level care
Milldale, Auckland
We purchased 6.0ha in the planned suburb of
Milldale on the Hibiscus Coast. Once complete,
the subdivision is expected to have 4,500 homes
with a town centre, schools and recreational
facilities.
Population forecasts show a 50% increase in the
number of people aged 75-years and over living
in the Hibiscus Coast area by 2028.
Waikanae, Kapiti Coast
Summerset purchased 25.5ha (estimated village
size of 8.0ha) on Park Avenue, Waikanae, for our
second Kapiti retirement village.
Forecasts show Waikanae’s over 75-year old
population will grow by around 22% over the
next decade.
290 homes
Rest home and hospital level care
Memory care centre
Memory care centre
Memory care centre

ANNUAL REPORT 2018
34
VillageDesignConsent
Richmond, Tasman
Secured FY18
Kenepuru, WellingtonSecured FY18
Avonhead, ChristchurchSecured FY18
Te Awa, NapierSecured FY18
St Johns, AucklandOngoing
Lower Hutt, WellingtonOngoing
Resource consents update
This year we were pleased
to receive resource consent
for our sites in Richmond in
Tasman, Kenepuru in Wellington,
Avonhead in Christchurch and
Te Awa in Napier.
Our consent application for the
St Johns village in Auckland
was declined by the application
hearing committee. The decision
of the hearing panel for the
application stated that the
site was ideal for a retirement
village but ultimately declined
the application as it stood. We
have appealed this decision
to the Environment Court and
are currently working through
mediation with the affected
parties and Auckland City
Council.
We hope to reach an
agreement with the
various parties and
are keen to build a
high quality village
which fits into its
surroundings well
and is an asset to this
community.
If we cannot reach an
agreement, the Environment
Court will hear our appeal later
this year.
Land use resource consent for
our Boulcott village in Lower Hutt
has, at our request, been referred
to the Environment Court. The
hearing will take place in 2019.
Artist impression of Summerset at Avonhead.
Artist impression of Summerset Richmond Ranges.

BUSINESS PERFORMANCE
35
Summerset was a founding
member of the Lifemark
organisation which aims to
ensure houses are built with
accessibility and safety in mind.
BUSINESS PERFORMANCE
35
We were the first retirement village operator
in New Zealand to become fully certified
for village accessibility at all of our villages
by Lifemark.
Designing to Lifemark standards
This year, we were the first retirement operator
in New Zealand to become fully certified for
village accessibility at all of our villages. This
certification covers the overall village precinct
and access throughout it including communal
grounds and wider facilities. The certification
signals that Summerset’s products and services
meet the needs of any New Zealand occupant,
at any age, stage, and ability – an assurance that
Summerset villages will be right for your stage of
life. This means our villages are easy to navigate
for people with mobility issues. The certification
process has taken two years and included
a robust independent audit and remedial
programme to ensure all our facilities meet the
standards. We plan to have all future villages
certified for village accessibility by Lifemark.

ANNUAL REPORT 2018
36
Our service offering
93%
97%97%97%
96%
89%
Overall our care occupancy levels were 96%
for established centres with our newly opened
centres also filling well. Industry average
occupancy stands at 89%*.
Our occupancy rates are
consistently above this which
demonstrates the quality
of the care and facilities that
we offer to people.
96%
100%
Occupancy – Existing care centres
80%
‘15‘17‘16‘18‘18
94%
98%
92%
90%
88%
86%
84%
82%
Actual DHB (as at Sept ‘18)
* According to DHB Quarterly Occupancy Statistics
1.6%
Uncontracted resales stock as a percentage
of total retirement units in portfolio
0%
1.5%
1.0%
1.4%
1.4%
1.2%
20142015201620172018
1.4%
1.2%
1.0%
0.8%
0.6%
0.4%
0.2%
In addition the demand for our retirement units
remains strong with uncontracted resale stock
steady at 1.4% of Summerset’s total retirement
units portfolio. Demand remains strong despite
flattening property markets across the country.
This reflects consistent demand
for what we offer, with the
decision to enter a village driven
by the desire for security, care
and community.
Care centres opened
In 2018 we opened our Hobsonville care centre.
This has filled quickly, reflecting the quality
of the facilities and care provided, as well as the
strong demand in the Auckland market.
Refurbishments and upgrades
In 2018 we completed a three-year programme
to upgrade leisure centres in our older villages.
Upgrades to the leisure centres included:
improvements to resident kitchen and bars, activity
spaces, presentation areas, and upgrading audio
visual equipment. As a result all villages can now
have a commercial café operation.
We continue to invest in
upgrading facilities in our
existing villages to maintain
resident experience.
Following this we commenced a cycle of
refurbishments in our older care centres (Levin,
Wanganui, Paraparaumu, Havelock North,
Palmerston North and Trentham). In 2018 we
completed the second year of a four-year
programme of care centre upgrades. We have
refreshed the aesthetics of our older care
centres and aligned them to our modern building
standards. Our sun lounges, dining rooms,
lounges, care rooms and ensuites have been given
new drapes, refreshed art work, paint and new
furniture. We are aiming to have this programme
completed in 2019.

BUSINESS PERFORMANCE
37
Emergency infrastructure improvements
In 2018 we completed an 18 month programme
to deploy mobile emergency power back-up to
our regional sites to use in the event of a power
outage. These have already come in handy during
a power outage in Taupo in November. The new
generators keep power flowing to the main
village building during an outage, maintaining
essential services for residents. All generators are
subject to a monthly testing regime and annual
certificates. From here on, all regional main
buildings will have power back-up at hand. For
urban villages, the main buildings and apartment
blocks will have generator access.

ANNUAL REPORT 2018
38
SUMMERSET ANNUAL REPORT 2018
38
Dunedin resident, Gaynor Haig, teaching piano.

OUR RESIDENTS
39
Our Residents
Resident Satisfaction Survey
Each year we run a resident
satisfaction survey to see how
we are going. This year we
were pleased to have maintained
our satisfaction levels with
care residents at 97% and
independent living residents
at 95%. Our industry-leading
satisfaction levels in 2018 were
independently reviewed
by KPMG.
“Despite these high
levels of satisfaction
it is important that
we continue to listen
to suggestions for
improvement from
those who are
satisfied, as well as
understanding
the concerns of
those who are not.”
– Julian Cook
Retirees have an abundance of choices for their retirement,
so our mission is to support residents to love the life they choose.
We evolve our offering to meet the needs of residents in their retirement
years. As their needs, wants, and dreams change, so do we.
Independent Care
Resident Satisfaction Survey 2014-2018
70%
20142015201620172018
97%
93%
95%
92%
94%94%
97%97%
97%
95%
100%
95%
90%
85%
80%
75%

ANNUAL REPORT 2018
40
Becoming a dementia friendly
organisation
Summerset recognises that
dementia is a significant and
growing health challenge
in New Zealand and around the
world. In August we launched
our dementia strategy, aiming to
make Summerset a place where
people living with dementia can
lead fulfilling and meaningful
lives. As part of our strategy we
signed up to Alzheimers New
Zealand’s Dementia Friendly
Recognition Programme.
We aim to be the
first retirement
village provider
in New Zealand to
be accredited as a
dementia friendly
organisation.
Summerset by the Ranges in
Levin was our first village
to achieve the accreditation.
A lot of what we already do is
dementia friendly, so to achieve
our accreditation, we have
improved two key aspects:
1. Provided education and
training to every employee,
including corporate office
staff, about dementia.
This especially helps our
people communicate with
people that have dementia
and learn about dementia.
2. Reducing the stigma for
residents who have
dementia. We have created
support groups within our
villages to help people be
more comfortable talking
about dementia.
Stimulating speakers for
our residents
The Summerset Connect
speaker series was a new
addition to our activity
programme in 2018. Speakers
travelled to each of our villages
and presented on a range
of topics. In 2018 we were
pleased to host:
• International speaker,
Eva Bennett, on the six
ingredients to cook up a
good life,
• Gillian Eadie from the
Memory Foundation talking
about brain health, and
• Sue Dwan for an interactive
session on getting your
affairs in order
The 2018 series concluded with
New Zealand author, entertainer
and broadcaster Peta Mathias
at Summerset at Heritage Park
in Ellerslie. The speaker series
has been a success throughout
our villages. The 2019 series will
feature brand new speakers,
talks on understanding
dementia, and a concert series
from the Dame Malvina Major
Foundation.
Locally sourced, wholesome
food is well received
Food is a very important part
of a resident’s experience
at Summerset. In 2018, we
invested in overhauling the food
service at our villages. The new
food offering is provided by
three regionally-based caterers
and an in-house team at two
sites, and focuses on locally
sourced, wholesome food
prepared onsite. The kitchen
teams are responsible for all the
food for our Divine cafés, the
‘Divine at Home’ meal service
and care centre meals.
We’ve been
delighted to see
satisfaction levels for
food increase from
91% to 93% in the
2018 resident survey.

OUR RESIDENTS
41
OUR RESIDENTS
Silver award winner in the Retirement
Village category in Reader’s Digest 2019
Quality Service Awards.

ANNUAL REPORT 2018
42
Summerset wants to make meaningful
contributions to charities our residents have
a connection with.
Fay Clayton, continues writing from her home at Summerset on the Coast.

OUR RESIDENTS
43
Our residents give back to their communities
Throughout our villages residents give back to their local communities and charities close to their
hearts. To support the amazing work they do, Summerset makes a contribution to the money they
raise. Some of the events our residents were involved with in 2018 were:
Jo Seagar cooking demonstration for
Mary Potter Hospice
Residents at Summerset at Aotea spent an
afternoon with renowned New Zealand chef
Jo Seagar. Proceeds from tickets and a
raffle sale went to the Mary Potter Hospice,
Aotea residents’ charity of choice since 2015.
SPCA day
Summerset in the Vines opened their village to
the public to fundraise for the SPCA. They had
over 120 people attend the event and check out
some of the SPCA pets available for adoption.
Hair today, gone tomorrow for cancer research
Summerset at Wigram resident Liz Johnston
shaved her hair off, for the third time in support
of the Cancer Research Trust New Zealand.
Liz was joined by Wigram Village Manager
Russell Walters, who shaved his beard off in front
of a crowd of 125 people.

ANNUAL REPORT 2018
44

SUMMERSET ON SCREEN
45
You may have noticed a new Summerset
TV commercial on your screens in 2018.
This is the final touch on
our rebranding exercise
that will continue to
grow Summerset’s brand
awareness.
Residents at our Karaka village took part
in a three-day TV shoot for the commercial
that demonstrates the rich and vibrant
lives of our residents. We hope you like it
as much as we do.
Summerset
on screen
love the life you choose
summerset.co.nz

ANNUAL REPORT 2018
46
All Summerset villages are now using
VCare as their centralised database for
resident records and care residents’ health
information. VCare is a New Zealand-
developed technology solution specifically
designed for the retirement village and
aged care sector. Summerset introduced
VCare with a pilot programme in September
2017 and rolled it out in two phases.
Summerset is the first to use VCare’s mobile
solution and the first to have caregivers
using iPads. Using VCare means our nurses
and caregivers have up-to-date health
information at their fingertips, and can
record patient notes quickly and easily for
our care residents.
Frailan Datic, a registered nurse from
Summerset by the Ranges in Levin, says,
“At first I was worried about technology
taking over the human touch, but since my
training I have a lot of positive things to say
about VCare.”
Caregivers now use iPads to enter their
notes into the VCare system. Summerset by
the Ranges caregiver Michele Hall says that
moving to iPads has helped a lot.
“You don’t have to try to understand
everyone’s handwriting, everything’s there
at your fingertips and you get notifications,”
she explains.
Staff training on VCare has been running
since August 2017, with more than 1,880
training sessions held between August 2017
and November 2018.
Resident
records
go digital

RESIDENT RECORDS GO DIGITAL
47
Aotea resident enjoying a game of Bridge.

ANNUAL REPORT 2018
48
Hobsonville resident Chrissy, with caregiver Vimlesh Kumar.

OUR PEOPLE
49
Our People
We attract and retain the best employees
Our annual staff survey, conducted by external
provider Aon, showed our staff engagement
score increased by two percentage points from
2017 to 2018. Summerset has been building on
the momentum from 2017 when there was
a 14 percentage point increase. We remain in
the top quartile for employee engagement
amongst the 700 Australian and New Zealand
organisations conducting the Aon surveys. We are
above the industry average engagement rate
of 51%. We also measure our staff response rate,
at 76% we are pleased that the majority of
our staff have responded and are optimistic
their feedback will be heard. The feedback helps
us assess our progress on improving our staff
experience and helps identify key actions for
further improvements.
Aon has been measuring staff engagement
for over 50 years, working with New Zealand
businesses for more than a decade to measure
the engagement of their people and provide a
complete picture of the work experience
and the factors that lead to higher engagement.
In New Zealand Aon also works alongside
other large employers such as Air New Zealand,
Coca-Cola Amatil, Foodstuffs and Auckland
Council.
10%
201520172018Industry
average1
80%
70%
60%
50%
40%
30%
20%
Our purpose is to bring the best of life to residents everyday. To
achieve our purpose we need a team of engaged people. This is why we
have invested in attracting and retaining the best employees.
Staff engagement survey
1 Source for industry average: Australia Aged Care Workforce Strategy Taskforce, 2018
Employee engagement is often
confused with satisfaction or
happiness. Employee engagement
is defined as “the level of an
employee’s psychological
investment in their organisation.”
Summerset scores in the
top quartile of employers when
measured on this basis.
53%
67%
69%
51%

ANNUAL REPORT 2018
50
We refreshed our LinkedIn presence to give
potential employees a better sense of what it’s like
to work for Summerset. You can follow us on
LinkedIn to stay up to date with our achievements
and career opportunities.
We recognise the hard work of our staff
We continued to strengthen our employment
offering throughout 2018 and benefits now include
(but are not limited to):
•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
•an additional day of leave on each staff
member’s birthday
•contributions to staff charity fundraising efforts
We know that there are times when our staff may
come into difficult circumstances and require extra
support. From May 2018, Summerset staff were
able to access exceptional leave and hardship loans
to help support them through difficult times.
Staff turnover is a key measure that we track in
the business. The aged care and retirement
sector has traditionally had high staff turnover.
Over the last three years we have seen turnover
drop at Summerset, the result of a number of
factors including improved staff benefits, increased
engagement, better and more visible leadership
throughout the business and the caregiver pay
equity settlement. Our turnover is now lower than
the industry average but we still want to do much
better in this area and will report to shareholders
annually on how we progress.
Retaining talent
There has been a drop in attrition across village
roles since December 2016.
Stable and engaged staff are
key to providing great villages
and care for residents and
for a successful business.
Attracting talent
In November we launched our culture-fit
assessment, an interactive video assessment
to attract and recruit potential employees. The
screen shot below is from the filming that took
place at our Hobsonville village. The purpose
of the assessment is two-fold, to showcase
Summerset’s culture to candidates to help them
determine if Summerset is the right workplace for
them, and to provide managers with insights into
potential candidates’ values.
15%
40%
35%
30%
25%
20%
Staff attrition
201620172018
34.1%
29.2%
26.6%
26.9%
Industry
average2
2 New Zealand Aged Care Association, Aged Residential Industry Profile 2017– 18 .

OUR PEOPLE
51
Each year Summerset staff are invited to share in
the company’s success through the staff share
scheme. Staff that choose to participate in the
scheme receive an allocation of $800 per annum
of Summerset shares at no cost. In 2018 87%
of eligible staff subscribed to the scheme. The
shares are held in trust for three years before they
are transferred into the employee’s name to keep
or trade. The first shares were allocated in 2016
and will be transferred into employees’ names in
July 2019. This is one of the ways we recognise the
part staff play in the company’s success.
We invest in our people
We support our people to advance their skills and
career opportunities. We continue to partner with
CareerForce, an independent training organisation,
to help our 600+ care staff gain Level 2 and 3
qualifications in Health and Wellbeing.
We re-launched our programme for Summerset’s
overseas registered nurses to apply for funding
to gain their New Zealand nursing registration.
Fees for New Zealand registration can be as high
as $10,000. Our first recipient, a caregiver from
our Wigram village, was delighted to have the
opportunity to register as a New Zealand nurse
and use their skills again.
OUR PEOPLE
STRONG ENOUGH TO CAREONE TEAMSTRIVE TO BE THE BESTBRINGING THE BEST OF LIFE++=
Summerset is offering scholarships to nursing
students completing their final year of study
at Massey University as a way to support
those who are passionate about aged care and
primary health.
Three nursing scholarships
are offered annually, each with
a value of up to $2,000.
Investing in software and systems
Summerset is growing rapidly and we are
investing in new technology to support our
workforce. In 2018 we introduced new
Human Resources Information System (HRIS)
software, streamlining our employee payroll
and reporting.
The journey continues
Our human resources function is becoming
increasingly important as the scope of our
business and the number of staff increase. Our
main focus in 2019 and beyond will be staff
training and development programmes. We will
be greatly assisted in this with the appointment
of a new General Manager Human Resources,
Dave Clegg. Dave was previously General
Manager of People and Culture at leading steel
solutions supplier, Steel and Tube Limited.

ANNUAL REPORT 2018
52

A CUT ABOVE THE REST
53
In 2017 we started the process to design,
test, and refine a new uniform for more
than 1,000 village staff. We partnered with
Wellington-based designer Lucilla Gray
(pictured top right) and Arrow Uniforms to
deliver the uniforms. Lucilla graduated from
Massey University and showed her debut
collection at London Fashion Week. She has
since set up a small studio in Wellington,
where she focuses on high-end fashion and
bespoke garments.
We were determined that our new uniforms
should feel just right. We tested the
uniforms in our villages, with staff providing
feedback on design, wear and comfort. We
made refinements to the uniform based
on this feedback and in 2018 we launched
a fit-for-purpose uniform that is uniquely
Summerset. Each role has different style
options to give staff choices to suit their
body shape and personal preferences. The
uniforms use a Summerset signature print
featuring motifs of the ti kouka (cabbage
tree) and the harakeke (flax) flower.
“It represents the journey
through life – a fitting
theme for the business.”
– Lucilla Gray
To celebrate the launch, Summerset
showcased the garments at the 2018
New Zealand Fashion Week in a private
show. Staff modelled the uniform on
the catwalk to an audience of 150 guests,
including residents from our villages.
A cut above
the rest

ANNUAL REPORT 2018
54
Health and Safety
Summerset’s vision is that all of our staff go home safe from
harm each day.
As our staff numbers grow, our vision of ensuring
staff go home safe each day and our duty
to provide a safe workplace remains critically
important, and we continue to invest in our
processes and procedures to maintain our health
and safety ratings and accreditations.
We also want to make our villages a safe place
for our residents, their families, contractors and
communities around us. We continually take
health and safety into consideration, from the
design of the village to its daily operations.
Our health and safety committees are the
champions and role models of our health and
safety culture and we proudly display our health
and safety culture statement at every village,
office, and construction site, to remind us that it
is everyone’s responsibility.
Each year staff contribute to the
health and safety plan so we can
understand and address the
issues highlighted by our people.
2018’s themes were: leadership, people and
capability, and systems and processes. The themes
inform our initiatives and we are very pleased to
report our 2018 health and safety achievements.
Over the last three years there have been consistent
reductions in our recordable injury frequency
rate and our lost time injury frequency rate. We
calculate these rates using the industry standard of
multiplying the total number recorded in a 12 month
period by 200,000 i.e. 100 employee years and then
divide by the total number of hours worked. The
goal is to continue to see these statistics reduce
and there are a range of initiatives in play to achieve
this. Improvements will be driven by enhancing
our people’s safety culture, knowledge and
communication. Going forward we will also focus
more on the general wellness for our staff.
We already offer free health
insurance, hardship loans and free
flu vaccinations every winter.
We see opportunities to assist in areas such as
mental health, health awareness (i.e. diabetes, diet
and smoking), and bullying and workplace culture.

HEALTH AND SAFETY
55
4.61
5.62
8.41
8.0
9.0
LTIFR and RIFR
0
201620172018
7.0
6.0
5.0
4.0
3.0
2.0
1.0
RIFR LTIFR
HEALTH AND SAFETY
Health and safety achievements in 2018
• In our staff survey, 95% of respondents
agreed that employee safety is considered
important at Summerset – this was one
of the top ten most positive responses
• Advanced to secondary status in the ACC
Accredited Employers Programme
• Increased our reporting against all types
of health and safety incidents including near
misses, hazard observations, and injuries
• Introduced mandatory eye and hand
protection on all construction sites
• Increased training for health and safety
committee members
• Manual handling trial completed for villages
• Became a member of the Construction
Industry Council
• Introduced dedicated health and safety
personnel on all high rise construction sites
• Partnered with WorkAon to help rehabilitate
staff back to work after a workplace injury
Key terms:
LTIFR = lost time injury frequency rate, is calculated by multiplying
the total number of LTI’s (lost time injuries) recorded in a 12 month
period by 200,000 and then dividing by the total number of hours
worked, i.e. an LTIFR of 4.0 means that there have been four LTI’s
per 200,000 hours worked on average over a 12-month period.
RIFR = recordable injury frequency rate, is calculated by
multiplying the total number of MTI’s (medical treatment injuries)
and LTI’s (lost time injuries) recorded in a 12-month period by
200,000 and then dividing by the total number of hours worked.
2.65
1.90
1.51

ANNUAL REPORT 2018
56
A good health and safety culture relies on
people in the organisation championing
and modelling best practice. We recognise
these people each year with a health and
safety hero category at our staff recognition
awards. Recipients are selected for their
deep respect for others, team focus, and
attitude of continuous improvement.
In 2018, our heroes were Christchurch’s
Stephanie Meehan, our Casebrook Village
Manager, and Steve Trenberth, Site Manager
at Wigram and Casebrook villages (both
pictured top left with Aaron Smail, General
Manager Development).
Steve and Stephanie make health and safety
a priority in their busy roles. They operate in
an unusual work environment, where some
parts of the village are occupied while other
areas are under construction.
Stephanie says, “I work closely with the
construction project manager as there is
still a lot of construction at our village
but it is also our residents’ home. It’s a
juggling act but it can be balanced with
good communication.”
Stephanie says that at Summerset
everybody takes responsibility.
“At other organisations,
people are happy to leave
health and safety to the
committees, but our villages
know that everyone must
actively participate – we are
all responsible.”
Health and
safety heroes
at work

HEALTH AND SAFETY HEROES AT WORK
57
Stephanie identified the placement of hot
water urns in the care centre as a risk
for staff and residents. Staff were holding
up large tea pots that could spill and result
in serious burns. This led to a full review by
the national health and safety team into
the design, placement and controls on hot
water urns to reduce the risks.
Steve says he recognises health and safety
takes a lot of understanding.
“We’re all learning on a
daily basis. There is more
communication than there
has ever been, and that’s
a really good thing for this
organisation.”
Steve says, “My advice is always to look
out for the small things. Big hazards
will announce themselves but picking
up the near misses will always result
in fewer injuries.”

ANNUAL REPORT 2018
58

OUR COMMUNITY
59
Our Community
Summerset supports the wider community by sponsoring individuals,
organisations, local clubs and groups with a direct relationship with
our villages.
At a national level, Summerset
announced two significant
partnerships in 2018: Dementia
New Zealand and Bowls
New Zealand.
Summerset teams up with
Bowls New Zealand
Bowls is extremely popular
with our residents, each village
has its own bowling green and
residents hold several bowling
sessions a week, so it was only
natural for Summerset to partner
with Bowls New Zealand.
Through this collaboration we
help bring players together to
enjoy a popular sport with over
500 clubs and 35,000 registered
players in New Zealand. We are
also working with Bowls New
Zealand to achieve their vision
of New Zealand being the best
bowling country in the world.
This year we have supported
Bowls New Zealand in the
following ways:
• Promoting Bowls3Five,
a faster, modernised
version of the traditional
bowls game, screened on
SKY during October to
November 2018
• Sponsoring the Bowls
New Zealand annual
awards dinner
• Sponsoring the purchase
of tablets for each bowls
club throughout
New Zealand to capture
membership details
and visitor data
• Sponsoring the New
Zealand national bowls
tournament
Giving back to our
communities
Summerset is proud to support
a number of other organisations
across the country, including:
• Wellington Free Ambulance
• Orokonui Ecosanctuary
• The Sir Paul Callaghan
Eureka! Awards
• Age Concern New Zealand
• Alzheimers New Zealand
• New Zealand Indoor Bowls
Recognising our people’s
fundraising
Our staff often take the initiative
to do their own fundraising and
we recognised their efforts in
2018 by topping up individual
fundraising efforts with an extra
donation from Summerset.
We’ve been delighted to see
many staff take up this offer,
which is part of our staff
benefits package.
In 2018, we made donations to:
• Alzheimers Manawatu
• Cancer Research Trust
New Zealand
• CanTeen
• Cerebral Palsy Society
• Daffodil Day
• The Movember Foundation
• Nelson Tasman Hospice
• Pink Ribbon Breakfasts
• Relay for Life
• Ronald McDonald House
in Auckland, Christchurch
and Wellington
• St John New Zealand
• Wellington Free Ambulance

ANNUAL REPORT 2018
60
Dementia is a significant and
growing health challenge
in our communities and villages,
with more than 170,000
New Zealanders forecast to have
dementia by 2050.
Our aim is to raise awareness of dementia,
de-stigmatise the disease and become the
leading provider of care for people living with
dementia in New Zealand.
To achieve this aim, we launched our dementia
strategy in mid-2018, which included:
• Signing a three-year partnership with
Dementia New Zealand, a leading provider of
community dementia services
• Partnering with Dementia New Zealand and
the New Zealand Dementia Cooperative to
commission research into New Zealanders’
awareness and perceptions of dementia
• Launching the Dementia Friendly Recognition
Programme across Summerset with the aim
of accreditation by 2020. We celebrated
our first village to achieve accreditation in
November at Summerset by the Ranges
in Levin. Corporate staff are also involved,
having started basic dementia awareness
training in October
• Sponsoring and presenting at Dementia
Knowledge Exchanges for health
professionals, community service providers
and other aged-care providers
• Signing Dementia New Zealand up as a key
presenter in our Summerset Connect speaker
series across our villages
Dementia care
More than 60% of the New Zealand adult population have a
personal experience with the disease, yet nearly half the population
cannot name an organisation that supports people with dementia.
Estimated number of people in New Zealand
with dementia from 2016 to 2050
0
201620302050
125,000
175,000
100,000
150,000
75,000
50,000
25,000
Estimated number of people with dementia

DEMENTIA CARE
61
• More than 60% of New Zealanders
have a current personal experience
with dementia
• Dementia is second only to cancer
as the disease Kiwis most fear being
diagnosed with
• Fewer than 20% feel they know a lot or
great deal about dementia
• 50% of respondents say they would like
to learn more about how to better look
after people with dementia and those
caring for them
• Most Kiwis say they would be fearful of
letting their employers know that they
had been diagnosed with the disease.
This is particularly significant in the
context of our aging population and
later retirement age.
Commissioning research into dementia
Summerset is committed to increasing awareness
and reducing the stigma of dementia in
New Zealand. We partnered with Dementia
New Zealand and The New Zealand Dementia
Cooperative to commission Nielsen to survey
1,000 New Zealanders about their awareness and
perceptions of dementia.
The research shows that little is understood about
dementia yet it is deeply feared. More than half
the population have a personal experience with
the degenerative brain disease.

ANNUAL REPORT 2018
62
Despite being diagnosed with dementia
almost 15 years ago, Hamilton resident
Neil Timmo still lives an independent and
active life: he likes to go to the gym,
potter in the garden and build impressive
remote-control boats from scratch.
However, while Neil says it’s possible
to keep his mind active, it doesn’t come
without its challenges. “I have basic
routines I do, and I put everything in
certain places. I struggle to get up in the
morning because I don’t know who I
am for a moment. But I don’t worry about
it now – I make my porridge, and head
to the gym. The gym is my saviour,” says
Neil, adding that he goes every
day because working out strengthens
his concentration.
“Life doesn’t stop because
you have dementia. I accept
the fact that I have it, and
that there are limitations,
but then I get on and do
what I enjoy.”
Neil started building boats as a result
of his diagnosis, and says he has become
more hands on. “I wanted something
to do. I’d never built anything in my life
– I worked in the native timber industry
but if it couldn’t be done with an axe
or chainsaw, I couldn’t do it,” he says,
laughing.
Building
a life with
dementia

BUILDING A LIFE WITH DEMENTIA
63
•
His son helps him to select model boats to
build, then Neil purchases the materials and
sets to work moulding, shaping, and gluing
the structure, before wiring the electronics.
“I like making things with my
hands. It stimulates me.”
He colours the boats using paint and
an airbrush, and says every boat is different
– and is a replica of a boat still in use today.
Neil is also heavily involved with Dementia
Waikato, and attends regular workshops
and meetings – which his family drives him
to. “Family is a big thing with dementia.
I’m really lucky with mine; they look after
me.” Neil has also helped to start a monthly
club at Summerset down the Lane with
Dementia Waikato and other residents living
with dementia or supporting someone
with the disease. “Accepting dementia is a
big thing. But once I was diagnosed and got
my head around it, I was fine. It’s like having
a broken leg, only it doesn’t mend – but you
learn to do other things. I feel like I’d never
done anything before I got dementia,” says
Neil, adding that his days are now filled with
various activities and projects.

ANNUAL REPORT 2018
64
Reducing our
Impact
We took the first step on our sustainability
journey by joining CEMARS®, (Certified Emissions
Measurement and Reduction Scheme) in early
2018. We were the first retirement village operator
to be CEMARS certified through a verification
audit by Enviro-Mark Solutions in December 2018.
Our carbon emissions are measured under
three scopes:
Environmental responsibility is now fundamental to the success of
any modern business. At Summerset we want to actively manage our
environmental impact and leave a positive legacy for our descendants.
Electricity is widely used throughout our villages
for heating, cooling and lighting. We have included
resident data in our measurements for both
electricity and waste. Including them is important
to us as we are all part of the community and can
all contribute to positive change.
In November 2018, independent auditor
Enviro-Mark Solutions completed the CEMARS
verification audit of our 2017 base year and
we confirmed our targets. As part of the audit
we submitted our reduction plan for the next
five years and this was approved by Enviro-Mark
Solutions.
Our 2018 emissions data has been collected and
was audited by Enviro-Mark Solutions in January
2019. This data was certified in February 2019.
Our construction activities have been excluded
from our measured 2017 base year and 2018
emissions. In 2019 we will begin to measure the
carbon emissions of our construction business
unit and make an action plan to reduce our
emissions in this area.
As Summerset continues to grow and the number
of villages in operation increases, it means we
will continue to increase our absolute carbon
emissions. To measure the effect of our initiatives,
we will measure our reductions on an intensity
basis i.e. carbon emissions per dollar of total
revenue. This is an acceptable reduction basis
under the CEMARS programme.
• Scope 1: Direct emissions from
sources that are owned or controlled
by the organisation, for example,
air conditioning systems and petrol
and diesel to fuel our motor vehicles
and lawnmowers
• Scope 2: Indirect emissions are
those that occur as a consequence
of the activities of the organisation
but are from sources owned or
controlled by another company, for
example, emissions generated from
purchased electricity
• Scope 3: Mandatory emissions
from other indirect emissions due to
the activities of the organisation,
for example, air travel, taxis and waste
to landfill
• Scope 3 additional: Additional
emissions from other indirect emissions
such as paper use and residents
electricity

REDUCING OUR IMPACT
65
Emissions by intensity (tCO2e/$m of
total revenue)
-
50.00
60.00
40.00
30.00
20.00
10.00
2018 2017
Scope 1
Scope 2
Scope 3

Mandatory
Scope 3

Additional
Total gross
emissions
From the graph, already in 2018 we have seen
a decrease in our emissions by intensity. As we
introduce initiatives in 2019 we hope to drive
down our emissions by intensity further.
An internal Summerset ‘Green Team’ has been
formed to lead this work and they will be
announcing new initiatives in 2019, as well as
a wider sustainability framework.
Reducing our carbon
emissions is an important step
toward being socially and
environmentally responsible.
As we learn more, we will be able to take action
in a number of areas over the coming years.
We will introduce initiatives to reduce the carbon
emissions created by electricity, waste, travel,
paper and fertiliser over the next five years.
Energy – reducing our electricity and gas usage
Waste – minimising our waste to landfill
Travel – being more efficient in the way we travel
Paper – reducing our paper consumption
through paperless systems
Fertilisers – selecting fertilisers with less
greenhouse gases for our village gardens

ANNUAL REPORT 2018
66
Board of
Directors
Rob Campbell
(BA (Hons. 1st), MPhil (Econ))
Chair, Independent
Rob is the Chair of the Board. He
has over 30 years’ experience as a
director and an investor.
He is currently the Chair of
SKYCITY Entertainment Group,
WEL Group Limited, Tourism
Holdings Limited and a director of
Precinct Properties NZ Limited.
Rob is also an investor and director
of a number of substantial private
companies and is a director of, or
an advisor to, a number of private
investment funds.
Rob has been Chair of Summerset
since 2011, when he was appointed
to Summerset to lead its listing on
the NZX.
Dr Marie Bismark
( MBChB, LLB, MBHL, MPH,
MD, FAICD, FAFPHM)
Independent
Marie is the Chair of Summerset’s
Clinical Governance Committee.
She holds degrees in law,
medicine, bioethics and public
health, and has completed a
Harkness Fellowship in Healthcare
Policy at Harvard University.
Marie works as a psychiatry
registrar with Melbourne Health,
and as an Associate Professor at
Melbourne University.
Her research focuses on patients’
rights, quality of care, and medical
regulation. Marie is an experienced
company director, serving on
the board of GMHBA Health
Insurance and on the Veterans’
Health Advisory Panel.
Marie has been a director of
Summerset since 2013.
James Ogden
( BCA (Hons), FCA, CFinstD,
INFINZ (Cert))
Independent
James is the Chair of Summerset’s
Audit Committee. He is a director
of Vista Group International
Limited and Foundation Life
(NZ). James is the Chair of
the Investment Committee of
Pencarrow Private Equity and MMC
Limited.
James has had a career as an
investment banker, including six
years as Country Manager for
Macquarie Bank and five years as
a director of Credit Suisse First
Boston. He also worked in the
New Zealand dairy industry for
eight years in chief executive and
finance roles.
He holds a Bachelor of Commerce
and Administration with First Class
Honours and is a Chartered Fellow
of the Institute of Directors and a
Fellow of Chartered Accountants
Australia and New Zealand
(CAANZ).
James has been a director of
Summerset since 2011 when he
was appointed to Summerset prior
to its listing on the NZX.

BOARD OF DIRECTORS
67
Anne Urlwin
( BCom, FCA, CFInstD,
MAICD, ACIS, FNZIM)
Independent
Anne is the Chair of Summerset’s
Development and Construction
Committee. She is a professional
director with experience in
a diverse range of sectors
including construction, health,
infrastructure, financial services
and telecommunications.
She is the Deputy Chair of
Southern Response Earthquake
Services Limited, and a director
of Chorus Limited and Steel and
Tube Holdings Limited. Her other
directorships include City Rail
Link Limited, Cigna subsidiary
OnePath Life (NZ) Limited and
Tilt Renewables Limited.
Anne is a former Chair of national
commercial construction group
Naylor Love Enterprises Limited
and of the New Zealand Blood
Service.
Anne is a Chartered Accountant
with experience in senior finance
management roles in addition to
her governance roles.
Anne has been a director of
Summerset since 2014.
Dr Andrew Wong
(BHB, MbChB, MPH, FNZCPHM)
Independent
Andrew is registered with the
New Zealand Medical Council as a
Public Health Medicine specialist.
He is the Managing Director
of Mercy Ascot Hospitals and
HealthCare Holdings, having held
these positions since 2009.
He is also a director of a number
of medical organisations. These
cover a diverse range of areas
such as surgical hospitals, day
surgeries, diagnostic radiology
and cancer care.
Andrew has been a director of
Summerset since 2017.
Gráinne Troute
(GradDipBusStuds, CMInstD)
Independent
Gráinne is the Chair of Summerset’s
Nomination and Remuneration
Committee. She is a Chartered
Member of the Institute of Directors
and is also a director of Tourism
Holdings Limited, Evolve Education
Group Limited and Investore
Property Limited.
Gráinne is a professional director
with many years’ experience in
senior executive roles. She was
General Manager, Corporate
Services at SKYCITY Entertainment
Group and Managing Director
of McDonald’s Restaurants (NZ)
Limited. She also held senior
management roles with Coopers
and Lybrand (now PwC) and HR
Consultancy Right Management.
Gráinne has vast expertise in
operating customer-focused
businesses in highly competitive
sectors. She has also spent many
years as a trustee and Chair in
the not-for-profit sector, including
having been the Chair of Ronald
McDonald House Charities New
Zealand for five years.
Gráinne has been a director of
Summerset since 2016.

ANNUAL REPORT 2018
68
Julian Cook
(MAF, MSc, BSc, BA)
Chief Executive
Officer

Julian has overall
responsibility for
Summerset and is
focused on developing
and operating vibrant
villages, and ensuring
that respect for our
customers is always at
the core of everything
we do.
Prior to becoming Chief
Executive Officer in 2014,
Julian was Summerset’s
Chief Financial Officer
after joining Summerset
in 2010. He oversaw
Summerset’s transition
to become a publicly
listed company on the
New Zealand Stock
Exchange and the
Australian Securities
Exchange.
Julian is a member of the
Executive Committee
for the New Zealand
Retirement Villages
Association.
Scott Scoullar
( CA ANZ, FCPA, BCA)
Deputy Chief
Executive Officer
and Chief Financial
Officer
Scott has overall
responsibility for the
financial management
of the company. He
also leads the corporate
services functions at
Summerset.
Before joining
Summerset in 2014,
Scott held CFO roles at
Housing New Zealand
and Inland Revenue, as
well as various roles at
National Bank.
A Chartered Accountant,
Scott was the recipient
of NZICA’s Public Sector
CFO of the Year award
for 2011, and received a
Special Commendation
at the 2012 New Zealand
CFO Summit Awards.
Scott is also a Fellow of
CPA Australia and a CPA
New Zealand Council
Board Member.
Dave Clegg
(MBA)
General Manager
Human Resources

Dave is responsible for
leading Summerset’s
Human Resources
and Health and Safety
teams to build and
grow Summerset’s
people capability and
engagement.
Before joining
Summerset in 2018,
Dave was the General
Manager of People and
Culture at Steel & Tube.
Dave has over 25 years’
experience in human
resources leadership
roles in New Zealand and
overseas.
Dave holds an MBA
from Southern Cross
University in Australia.
Fay French
(RNZcmpN)
General Manager
Sales

Fay leads our national
sales team and can be
found at Summerset’s
Wellington office or at
one of our many New
Zealand villages.
Fay has a breadth of
experience across sales,
hospitality and the health
sector. Prior to joining
Summerset in 2015, she
held a sales leadership
role at a leading New
Zealand e-commerce
platform where she was
responsible for leading
a team of business
development managers.
A registered nurse, Fay
has worked in various
nursing roles and
medical sales for Roche
Pharmaceuticals.
Executive
Leadership Team

EXECUTIVE LEADERSHIP TEAM
69
Paul Morris
(Dip. BS)
General Manager
Development
Australia

Paul leads Summerset’s
investigation of
development
opportunities in the
Australian market.
Paul has been with
Summerset since early
2000. He commenced
in the GM Development
Australia role in 2018
having previously been
GM Development New
Zealand since 2003.
Aaron Smail
(BE (Civil), BBS)
General Manager
Development

Aaron leads Summerset’s
development team in
New Zealand, which
covers identifying and
purchasing new sites,
project feasibilities,
consents, design
concepts, master
planning and design
standards for villages.
Previous roles in his 25+
years of property and
development experience
include senior positions
at Todd Property Group
and Kiwi Property.
Aaron has been with
Summerset since 2015.
D e a n Ta ll e ntire
(BSc (Hons), HND, RICS)
General Manager
Construction

Dean leads our design
management, building
consents, procurement,
cost management,
construction
management and
administration
support teams in the
construction team.
Dean has extensive
construction and
development experience
and has led teams in
public and private
sectors within developer
and main contractor
environments.
Eleanor Young
(BSc (Hons))
General Manager
Operations and
Customer Experience

Eleanor oversees the
operational performance
across all Summerset
villages. Her focus on
service experience
and delivery ensures
Summerset’s residents
receive the highest quality
facilities and care.
Before joining Summerset
in 2016, Eleanor held senior
roles at Inland Revenue.
This included four years
as the Group Manager
of Customer Services,
managing over 2,000
staff across New Zealand
to deliver services to
customers.
Eleanor has a background
in human resources within
both the public and private
sector, having worked
in managerial roles for
the Ministry of Social
Development, Mighty
River Power and Air New
Zealand.

ANNUAL REPORT 2018
70
Financial Highlights
Results Highlights - Financial
FY18
FY17
Restated
1
% Change
Net profit before tax (NZ IFRS) ($000)216,173240,228-10.0%
Net profit after tax (NZ IFRS) ($000)214,503239,938-10.6%
Underlying profit ($000)98,61181,66320.8%
Total assets ($000)2,766,3672,232,83023.9%
Net tangible assets (cents per share)438.44355.0723.5%
Net operating cash flow ($000)217,803207,7164.9%
1 Fair value movement of investment property and the investment property balance have been restated for 2017. Refer to note 1 of the financial statements for further details.
Results Highlights - Operational
FY18FY17% Change
New sales of occupation rights339382-11.3%
Resales of occupation rights3013000.3%
New retirement units delivered4544500.9%
Realised development margin ($000)63,68350,97024.9%
Gross proceeds (new sales) ($000)191,963186,4283.0%
Realised gains on resales ($000)28,68524,93615.0%
Non-GAAP Underlying Profit
$000FY18
FY17
Restated
1
% Change
Profit for the period
2
214,503239,938-10.6%
Less: fair value movement of investment property
2
(209,930)(234,456)-10.5%
Less: reversal of impairment on land
2
-(15)-100.0%
Add: realised gain on resales28,68524,93615.0%
Add: realised development margin63,68350,97024.9%
Add: deferred tax expense
2
1,670290476.1%
Underlying profit98,61181,66320.8%
1 Fair value movement of investment property has been restated for 2017. Refer to note 1 of the financial statements for further details.
2 Figure has been extracted from the financial statements
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying profit does not have a standardised
meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities.
The Directors have provided an underlying profit measure in addition to IFRS profit to assist readers in determining the realised and
unrealised components of fair value movement of investment property and tax expense in the Group’s income statement. The
measure is used internally in conjunction with other measures to monitor performance and make investment decisions and has
been audited by Ernst & Young. Underlying profit is a measure which the Group uses consistently across reporting periods.
Underlying profit is used to determine the dividend pay-out to shareholders.

FINANCIAL STATEMENTS
71
Financial
Statements

ANNUAL REPORT 2018
72
Income Statement
For the year ended 31 December 2018
NOTE
2018
$000
2017
Restated
$000
1
Care fees and village services491,15474,505
Deferred management fees445,63735,804
Interest received4226184
Total revenue137,017110,493
Reversal of impairment on land9-15
Fair value movement of investment property11209,930234,456
Total income346,947344,964
Operating expenses5(112,442)(88,587)
Depreciation and amortisation expense9, 10(6,685)(4,628)
Total expenses
(119,127)
(93,215)
Operating profit before financing costs227,820251,749
Net finance costs6(11,647)(11,521)
Profit before income tax216,173240,228
Income tax expense7(1,670)(290)
Profit for the period214,503239,938
Basic earnings per share (cents)1997.13109.78
Diluted earnings per share (cents)1995.42107.88
1 Fair value movement of investment property has been restated for 2017. Refer to note 1 comparative information for further details.
The accompanying notes form part of these financial statements.

FINANCIAL STATEMENTS
73
Statement of Comprehensive Income
For the year ended 31 December 2018
NOTE
2018
$000
2017
Restated
$000
1
Profit for the period214,503239,938
Fair value loss on interest rate swaps14(6,125)
(3,043)
Tax on items of other comprehensive income71,715
851
Gain on translation of foreign currency operations5-
Other comprehensive income which will be reclassified subsequently to
profit or loss for the period net of tax
(4,405)(2,192)
Revaluation of land and buildings
9-
18,934
Tax on items of other comprehensive income
7-
(5,036)
Other comprehensive income which will not be reclassified
subsequently to profit or loss for the period net of tax
-13,898
Total comprehensive income for the period
210,098251,644
1 Fair value movement of investment property has been restated for 2017. Refer to note 1 comparative information for further details.
The accompanying notes form part of these financial statements.

ANNUAL REPORT 2018
74
Statement of Changes in Equity
For the year ended 31 December 2018
SHARE
CAPITAL
$000
HEDGING
RESERVE
$000
REVALUATION
RESERVE
$000
RETAINED
EARNINGS
$000
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$000
TOTAL
EQUITY
$000
As at 1 January 2017249,030(3,520)11,043289,062-545,615
Profit for the period
restated
1
---239,938-239,938
Other comprehensive
income for the period
-(2,192)13,898--11,706
Total comprehensive
income for the period
restated
-(2,192)13,898239,938-251,644
Dividends paid---(19,857)-(19,857)
Shares issued7,564----7,564
Employee share plan
option cost
820----820
As at 31 December 2017
restated
1
257,414(5,712)24,941509,143-785,786
As at 1 January 2018
restated
1
257,414(5,712)24,941509,143-785,786
Profit for the period---214,503-214,503
Other comprehensive
income for the period
-(4,410)--5(4,405)
Total comprehensive
income for the period
-(4,410)-214,5035210,098
Dividends paid---(29,138)-(29,138)
Shares issued11,339----11,339
Employee share plan
option cost
714----714
As at 31 December 2018269,467(10,122)24,941694,5085978,799
1 Fair value movement of investment property has been restated for 2017. Refer to note 1 comparative information for further details.
The accompanying notes form part of these financial statements.

FINANCIAL STATEMENTS
75
Statement of Financial Position
As at 31 December 2018
NOTE
2018
$000
2017
Restated
$000
1
Assets
Cash and cash equivalents7,4827,566
Trade and other receivables829,83625,416
Interest rate swaps144,6261,193
Property, plant and equipment9132,746123,431
Intangible assets106,6285,562
Investment property112,585,0492,069,662
Total assets2,766,3672,232,830
Liabilities
Trade and other payables1287,23851,858
Employee benefits139,4526,733
Revenue received in advance471,08350,493
Interest rate swaps1414,0597,934
Residents’ loans151,136,792966,627
Interest-bearing loans and borrowings16452,760347,170
Deferred tax liability716,18416,229
Total liabilities1,787,5681,447,044
Net assets978,799785,786
Equity
Share capital18269,467257,414
Reserves1814,82419,229
Retained earnings694,508509,143
Total equity attributable to shareholders978,799785,786
1 Investment property has been restated for 2017. Refer to note 1 comparative information for further details.
The accompanying notes form part of these 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 21 February 2019

ANNUAL REPORT 2018
76
Statement of Cash Flows
For the year ended 31 December 2018
2018
$000
2017
$000
Cash flows from operating activities
Receipts from residents for care fees and village services90,31372,424
Interest received226184
Payments to suppliers and employees(107,144)(80,565)
Receipts for residents’ loans - new occupation right agreements187,273181,574
Net receipts for residents' loans - resales of occupation right agreements47,13534,099
Net cash flow from operating activities217,803207,716
Cash flows to investing activities
Payments for investment property:
- land(54,699)(27,840)
- construction of new villages(203,781)(197,819)
- refurbishments in established villages(5,423)(3,937)
Payments for property, plant and equipment:
- construction of new care centres(9,960)(15,244)
- refurbishments in established care centres(1,017)(752)
- other(3,702)(1,643)
Payments for intangible assets(2,489)(4,457)
Capitalised interest paid(9,325)(5,802)
Net cash flow to investing activities(290,396)(257,494)
Cash flows from financing activities
Net repayments of bank borrowings(21,337)(26,136)
Proceeds from issue of retail bonds125,000100,000
Interest paid on bank loans and retail bonds(13,374)(12,881)
Net dividends paid(17,780)(12,293)
Net cash flow from financing activities72,50948,690
Net decrease in cash and cash equivalents(84)(1,088)
Cash and cash equivalents at beginning of period7,5668,654
Cash and cash equivalents at end of period7,4827,566
The accompanying notes form part of these financial statements.

FINANCIAL STATEMENTS
77
Reconciliation of Operating Results and Operating Cash Flows
For the year ended 31 December 2018
2018
$000
2017
Restated
$000
1
Profit for the period214,503239,938
Adjustments for:
Depreciation and amortisation expense6,6854,628
Reversal of impairment on land
-(15)
Loss on disposal of property, plant and equipment11382
Fair value movement of investment property(209,930)(234,456)
Net finance costs paid11,64711,521
Deferred tax expense1,670290
Deferred management fee amortisation(45,637)(35,804)
Employee share plan option cost714820
(234,738)(252,934)
Movements in working capital
Increase in trade and other receivables(2,390)(9,824)
Increase in employee benefits2,7081,731
Increase in trade and other payables2,007877
Increase in residents’ loans net of non-cash amortisation235,713227,928
238,038220,712
Net cash flow from operating activities217,803207,716
1 Fair value movement of investment property has been restated for 2017. Refer to note 1 comparative information for further details.
The accompanying notes form part of these financial statements.

ANNUAL REPORT 2018
78
Dunedin resident enjoys a coffee with friends in the village’s Divine café.

FINANCIAL STATEMENTS
79
Notes to the
Financial Statements
For the year ended 31 December 2
018
1. Summary of accounting policies
Reporting entity
The consolidated financial statements
presented for the year ended 31 December 2018 are for Summerset Group Holdings Limited
(the ‘Company’) and its subsidiaries (collectively referred to as the ‘Group’). The Group develops, owns and operates integrated
retirement villages in New Zealand, including independent living, care centres with rest home and hospital-level care and memory
care centres.
Summerset Group Holdings Limited is registered in New Zealand under the Companies Act 1993 and is a FMC Reporting Entity for
the purposes of the Financial Markets Conduct Act 2013. The reporting entity is listed on the New Zealand Stock Exchange (NZX),
being the Company’s primary exchange, and is listed on the Australian Securities Exchange (ASX) as a foreign exempt listing.
Basis of preparation
These consolidated financial statements have been prepared in accordance with generally accepted accounting practice in New
Zealand (NZ GAAP), except for Note 2: Non-GAAP underlying profit, which is presented in addition to NZ GAAP compliant information.
NZ GAAP
in this instance refers to New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) as appropriate
for profit-oriented entities. These financial statements also comply with International Financial Reporting Standards.
These financial statements are expressed in New Zealand dollars, which is the Company’s and New Zealand subsidiaries' functional
currency. The functional currency of the Company's Australian subsidiaries is Australian dollars. All financial information has been
rounded to the nearest thousand, unless otherwise stated.
All amounts are shown exclusive of goods and services tax (GST) except for trade receivables and trade payables, and except where
the amount of GST incurred is not recoverable. When this occurs GST is recognised as part of the cost of the asset or as an expense
as applicable.
The measurement basis adopted in the preparation of these financial statements is historical cost with the exception of the items
noted below.
•Interest rate swaps – Note 14
•Investment property – Note 11
•Land and buildings – Note 9
•Retail bonds – Note 16
Basis of consolidation
Subsidiaries are fully consolidated at the date on which the Group obtains control, and continue to be consolidated until the date
when such control ceases. The financial statements are prepared for the same reporting period as the parent company, Summerset
Group Holdings Limited, using consistent accounting policies. All intra-group transactions and balances arising within the Group
are eliminated in full.
All subsidiary companies are 100% owned and incorporated in New Zealand or Australia with a balance date of 31 December.

ANNUAL REPORT 2018
80
Notes to the Financial Statements (continued)
The New Zealand subsidiaries are:
Summerset Care Limited
Summerset Holdings Limited
Summerset LTI Trustee Limited
Summerset Management Group Limited
Summerset Properties Limited
Summerset Retention Trustee Limited
Summerset Villages (Aotea) Limited
Summerset Villages (Avonhead) Limited
Summerset Villages (Bell Block) Limited
Summerset Villages (Casebrook) Limited
Summerset Villages (Dunedin) Limited
Summerset Villages (Ellerslie) Limited
Summerset Villages (Hamilton) Limited
Summerset Villages (Hastings) Limited
Summerset Villages (Havelock North) Limited
Summerset Villages (Hobsonville) Limited
Summerset Villages (Karaka) Limited
Summerset Villages (Katikati) Limited
Summerset Villages (Kenepuru) Limited
Summerset Villages (Levin) Limited
Summerset Villages (Lower Hutt) Limited
Summerset Villages (Manukau) Limited
Summerset Villages (Napier) Limited
Summerset Villages (Nelson) Limited
Summerset Villages (New Plymouth) Limited
Summerset Villages (Number 3
3) Limited
Summerset Villages (Palmerston North) Limited
Summerset Villages (Papamoa) Limited
Summerset Villages (Paraparaumu) Limited
Summerset Villages (Parnell) Limited
Summerset Villages (Richmond) Limited
Summerset Villages (Rototuna) Limited
Summerset Villages (St Johns) Limited
Summerset Villages (Taupo) Limited
Summerset Villages (Te Awa) Limited
Summerset Villages (Trentham) Limited
Summerset Villages (Wanganui) Limited
Summerset Villages (Warkworth) Limited
Summerset Villages (Wigram) Limited
Welhom Developments Limited
The Australian subsidiaries are:
Summerset Care (Australia) Pty Ltd
Summerset Holdings (Australia) Pty Limited
Summerset Management Group (Australia) Pty Limited
Welhom Developments (Australia) Pty Ltd
Accounting policies
Accounting
policies that summarise the measurement basis used and are relevant to the understanding of the financial statements
are provided throughout the accompanying notes.
The accounting policies adopted have been applied consistently throughout the periods presented in these financial statements,
except as outlined below with the adoption of NZ IFRS 15 - Revenue from contracts with customers.
The Group adopted all mandatory new and amended NZ IFRS Standards and Interpretations. These new and amended NZ IFRS
Standards and Interpretations had a disclosure impact only on these financial statements.
NZ IFRS 15 -
Revenue from contracts with customers was effective for the Group from 1 January 2018. There was no material impact
for the Group in relation to accounting or disclosures due to the nature of the Group's transactions. Care fees and village services
are consumed within the same period as they are invoiced and deferred management fee revenue is not impacted as it is covered
currently by NZ IAS 17 - Leases and from 1 January 2019 by NZ IFRS 16 - Leases.
The Group early adopted NZ IFRS 9 –
Financial Instruments from 1 July 2017. There was no material impact on transition.
NZ IFRS Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been
adopted by the Group for the annual report period ending 31 December 2018 are outlined below:
NZ IFRS 16 – Leases
This standard will replace NZ IAS 17 – Leases. NZ IFRS 16 - Leases requires a lessee to recognise a lease liability reflecting future lease
payments and a ‘right-of-use asset’ for virtually all lease contracts. The Group has completed its evaluation of the impact of adopting
this standard and it is not expected to be significant.
Operating leases will be recognised on the balance sheet as a right-of-use asset and a corresponding lease liability, based on the
discounted value of the operating lease commitments of approximately $12.2 million as at 31 December 2018 as disclosed in note
23. The recognition exemption under NZ IFRS 16 -
Leases for short term or low value assets of less than $5,000 USD or leases
terminating within one year will be applied, and these expenses will continue to be recognised on a straight-line basis in the income
statement .
Rental and operating lease expenses previously recognised on a straight-line basis within other expenses will be recognised as
amortisation for right-of-use assets and finance costs for lease liabilities in the income statement. The impact on the income
statement for the year ended 31 December 2019 is expected to be an approximately $0.2 million increase in expenses.
Operating lease payments previously classified as cash flows from operating activities will be reclassified as cash flows from financing
activities for principal repayments of the lease liability. There will be no impact on actual cash payments.

FINANCIAL STATEMENTS
81
Occupation right agreements confer the right to occupancy of a retirement unit and are considered leases under both NZ IAS 17 -
Leases and NZ IFRS 16 - Leases. There is no change to the recognition or measurement of occupation right agreements and the
associated deferred management fee revenue. Deferred management fee revenue will continue to be recognised on a straight-line
basis in the income statement over the period of service, being the greater of the expected period of tenure or the contractual right
to revenue. Refer to Note 4 for further detail on deferred management fee revenue.
The Group will apply NZ IFRS 16 - Leases from its effective date of 1 January 2019 using the modified retrospective approach. The
modified retrospective approach under NZ IFRS 16 - Leases means that on transition the Group is not required to restate comparative
information, instead opening equity is adjusted.
There are no new standards, amendments or interpretations that have been issued and are not yet effective, that are expected to
have a significant impact on the Group.
Critical accounting estimates and judgements
In preparing the financial statements,
management has made estimates and assumptions about the future that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during
the period. Actual results may differ from those estimates.
Estimates and assumptions are regularly evaluated and are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances. The principal areas of judgement in preparing these
financial statements are described in the following notes:
•Deferred management fees – Note 4
•Deferred taxation – Note 7
•Interest rate swaps – Note 14
•Revenue in advance – Note 4
•Valuation of investment property – Note 11
•Valuation of land and buildings – Note 9
•Valuation of retail bonds – Note 16
Comparative information
Comparative information has been updated to reflect the reclassification of work in progress for care centres under development
from investment property to property, plant and equipment.
2017
Reported
$000
Reclass
$000
2017
Reclassified
$000
Statement of Financial Position
Property, plant and equipment118,5064,925123,431
Investment property2,058,085(4,925)2,053,160
Statement of Cash Flows
Construction of new investment property(202,744)4,925(197,819)
Construction of new care centres(10,319)(4,925)(15,244)

ANNUAL REPORT 2018
82
Notes to the Financial Statements (continued)
The Group has also amended the comparative value of investment property. The fair value of investment property is determined
by
an
independent registered valuer by undertaking a cash flow analysis to derive a net present value. The fair value of investment
property has been amended to adjust for assets and liabilities recognised in the statement of financial position which are also
reflected in the cash flow analysis, as required by NZIAS 40 – Investment Property. This amendment moves the adjustment to assets
and liabilities from being based on the contractual right to deferred management fees to being based on the expected period of
tenure the deferred management fees are earned over. This amendment has been made by adjusting the investment property
balance for revenue received in advance recognised on the balance sheet. Investment property work in progress has also been
amended to adjust for timing differences associated with the recognition of infrastructure costs.
As a result of these amendments there was a requirement to restate the comparative period. There was no impact on underlying
profit as a result of this restatement. No adjustment has been made to periods prior to the comparative period on the basis of
materiality.
2017
Reported
$000
Amendment
$000
2017
Restated
$000
Income Statement
Fair value movement of investment property217,95416,502234,456
Profit for the period223,43616,502239,938
Statement of Financial Position
Investment property2,053,16016,5022,069,662
Retained earnings492,64116,502509,143
No other comparative information has been restated in the current year.
2. Non-GAAP underlying profit
Ref
2018
$000
2017
Restated
$000
1
Profit for the period214,503239,938
Less fair value movement of investment propertya)(209,930)(234,456)
Add/(less) impairment/(reversal of impairment) on landb)-(15)
Add realised gain on resalesc)28,68524,936
Add realised development margind)63,68350,970
Add/(less) deferred tax expense/(credit)e)1,670290
Underlying profit98,61181,663
1 Fair value movement of investment property has been restated for 2017. Refer to note 1 comparative information for further details.
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying profit does not have a standardised
meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities.
The Directors have provided an underlying profit measure in addition to IFRS profit to assist readers in determining the realised and
unrealised 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 a measure which the Group uses consistently across reporting periods. Underlying profit is used to determine the dividend
pay-out to shareholders.
This statement presented is for the Group, prepared in accordance with the Basis of preparation: underlying profit described below.
Basis of preparation: underlying profit
Underlying profit is determined by taking profit for the period determined under NZ IFRS, adjusted for the impact of the following:
a)Less fair value movement of investment property: reversal of investment property valuation changes recorded in NZ IFRS
profit for the period, which comprise both realised and non-realised valuation movements. This is reversed and replaced with

FINANCIAL STATEMENTS
83
realised development margin and realised resale gains during the period, effectively removing the unrealised component
of the fair value movement of investment property.
b)Add/(less) impairment/(reversal of impairment) of land: remove the impact of non-cash care centre valuation changes
recorded in NZ IFRS profit for the period. Care centres are valued at least every three years (last valued as at 31 December
20
17), with fair value gains flowing through to the revaluation reserve unless the gain offsets a previous impairment to fair
value that was recorded in NZ IFRS profit for the period. Where there is any impairment of a care centre, or reversal of a
previous impairment that impacts NZ IFRS profit for the period, this is eliminated for the purposes of determining underlying
profit.
c)Add realised gain on resales: add the realised gains across all resales of occupation rights during the period. The realised gain
for each resale is determined to be the difference between the licence price for the previous occupation right for a retirement
unit and the occupation right resold for that same retirement unit during the period. Realised resale gains are a measure of
the cash generated from increases in selling prices of occupation rights to incoming residents, less cash amounts repaid to
vacated residents for the repayment of the price of their refundable occupation right purchased in an earlier period. Realised
resale gains exclude deferred management fees and refurbishment costs.
d)Add realised development margin: add realised development margin across all new sales of occupation rights during the
period, with the recognition point being the cash settlement. Realised development margin is the margin earned on the first
time sale of an occupation right following the development of a retirement unit. The margin for each new sale is determined
to be the licence price for the occupation right, less the cost of developing that retirement unit.
Components of the cost of developing retirement units include directly attributable construction costs and a proportionate
share of the following costs:
•infrastructure costs
•land cost on the basis of the purchase price of the land
•interest during the build period
•head office costs directly related to the construction of retirement unit
All costs above include non-recoverable GST.
Development margin excludes the costs of developing common areas 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.
Where costs are apportioned across more than one asset, the apportionment methodology is determined by considering
the nature of the cost.
e)Add/(less) deferred tax expense/(credit): reversal of the impact of deferred taxation.
Underlying profit does not include any adjustments for abnormal items or fair value movements on financial instruments that
are included in NZ IFRS profit for the period.
3. Segment reporting
The Group operates in one industry, being the provision of integrated retirement villages in New Zealand. The services provided
across all of the Group’s villages are similar, as are the type of customer and the regulatory environment. 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
continues to consider 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.
The Ministry of Health is a significant customer of the Group, as the Group derives care fee revenue in respect of eligible government
subsidised aged care residents. Fees earned from the Ministry of Health for the year ended 31 December 2018 amounted to
$28.8 million (2017: $25.0 million). No other customers individually contribute a significant proportion of the Group revenue. All
revenue is earned in New Zealand.

ANNUAL REPORT 2018
84
Notes to the Financial Statements (continued)
4. Revenue
Care fees and villages services income is recognised over the period in which the service is rendered.
Deferred management fees, which entitle residents to accommodation and the use of the community facilities within the village,
are recognised over the period of service, being the greater of the expected period of tenure or the contractual right to revenue.
The expected periods of tenure, being based on historical Group averages, are estimated to be seven to eight years for villas, five
years for apartments and three years for serviced apartments and memory care apartments. Where the deferred management fees
over the contractual period exceeds the amortisation of the deferred management fee based on estimated tenure, the amount is
recorded as a liability (revenue in advance). At balance date, the majority of the revenue in advance balance is non-current. Deferred
management fees are recognised on a gross basis in the receipts for residents’ loans section of the statement of cash flows.
Interest income is recognised in the income statement as it accrues, using the effective interest method.
5. Operating expenses
2018
$000
2017
$000
Employee expenses65,38750,487
Property-related expenses10,9679,151
Repairs and maintenance expenses4,4884,713
Other operating expenses31,60024,236
Total operating expenses112,44288,587
Other operating expenses include:
2018
$000
2017
$000
Remuneration paid to auditors:
- Audit and review of financial statements193185
- Audit of underlying profit disclosures-4
- Market analysis advisory services provided to the Group-291
Donations5025
Rent1,3111,029
Employee expenses include post-employment benefits (KiwiSaver/Superannuation) of $1.7 million (2
017: $1.4 million) .

FINANCIAL STATEMENTS
85
6. Net finance costs
2018
$000
2017
$000
Interest on bank loans, retail bonds and related fees17,91814,626
Interest on interest rate swaps2,6883,273
Capitalised finance costs(8,953)(6,390)
Fair value movement of interest rate swaps designated as fair value through
profit or loss
(3,434)(1,193)
Fair value movement of retail bonds designated as fair value through profit
or loss
3,3761,171
Other5234
Net finance costs11,64711,521
Interest expense comprises interest payable on borrowings and is calculated using the effective interest rate method.
Borrowing costs are capitalised for property, plant and equipment (Note 9) and investment property (Note 11) if they are directly
attributable
to the construction or production of a qualifying asset. Capitalisation of borrowing costs commences when the activities
to prepare the asset commence and expenditures and borrowing costs are incurred. Capitalisation of borrowing costs continues
until the assets are substantially ready for their intended use.
Borrowing costs of $9.0 million (2017: $6.4 million) have been capitalised during the period of construction in the current year.
The weighted average capitalisation rate on funds borrowed representing the borrowing costs of the loans used to finance projects
is 4.17% per annum (2017: 4.10% per annum).
The retail bonds are designated in a fair value hedging relationship. Details of fair value hedging are included in note 14.
7. Income tax
Tax expense comprises current and deferred tax, calculated using the tax rate enacted or substantively enacted at balance date
and any adjustment to tax payable in respect of prior years. Tax expense is recognised in the income statement except when it
relates to items recognised directly in the statement of comprehensive income, in which case the tax expense is recognised in
the statement of comprehensive income.
Deferred tax expense is recognised in respect of temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the amounts used for taxation purposes. A deferred tax asset is recognised only to the extent it is
probable it will be utilised. Temporary differences for the initial recognition of assets or liabilities that affect neither accounting nor
taxable profit, unless they arise from business combination, are not provided for.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group
intends to settle its current tax assets and liabilities on a net basis.
(a) Income tax recognised in the income statement
2018
$000
2017
$000
Tax expense comprises:
Current tax expense--
Deferred tax relating to the origination and reversal of temporary differences1,670290
Total tax expense reported in income statement1,670290

ANNUAL REPORT 2018
86
Notes to the Financial Statements (continued)
The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the
financial statements as follows:
20182017 Restated
1
$000%$000%
Profit before income tax216,173240,228
Income tax using the corporate tax rate60,52828.0%67,26428.0%
Capitalised interest(2,007)(0.9%)(1,789)(0.7%)
Other non-deductible expenses2710.1%2240.1%
Non-assessable investment property revaluations(58,780)(27.2%)(65,649)(27.3%)
Non-assessable reversal of impairment-0.0%(4)0.0%
Other1,4310.7%-0.0%
Prior period adjustments2270.1%2440.1%
Total income tax expense/(credit)1,6700.8%2900.1%
1 Fair value movement of investment property has been restated for 2017. Refer to note 1 comparative information for further details.
Total Group tax losses available in New Zealand amounted to $109.6 million (2017: $5.4 million). There are no unrecognised tax losses
in New Zealand (2017: nil).
Australian tax losses have not been recognised in the Group in the current year .
(b) Amounts charged or credited to other comprehensive income
2018
$000
2017
$000
Tax expense comprises:
Net gain on revaluation of land and buildings-5,036
Fair value movement of interest rate swaps(1,715)(851)
Total tax (credit)/expense reported in statement of comprehensive
income
(1,715)4,185
(c) Imputation credit account
There were no imputation credits received or paid during the year and the balance at 31 December 2018 is nil (2017: nil).
(d) Deferred tax
Movement in the deferred tax balance comprises:
BALANCE
1 JAN 2018
$000
RECOGNISED
IN INCOME
$000
RECOGNISED
IN OCI*
$000
BALANCE
31 DEC 2
018
$000
Property, plant and equipment15,6411,421-17,062
Investment property19,3634,748-24,111
Revenue in advance(14,138)25,788-11,650
Interest rate swaps(2,222)-(1,715)(3,937)
Income tax losses not yet utilised(1,525)(30,277)-(31,802)
Other items(890)(10)-(900)
Net deferred tax liability16,2291,670(1,715)16,184

FINANCIAL STATEMENTS
87
BALANCE
1 JAN 2
017
$000
RECOGNISED
IN INCOME
$000
RECOGNISED
IN OCI*
$000
BALANCE
3
1 DEC 2
017
$000
Property, plant and equipment10,1055005,03615,641
Investment property16,0963,267-19,363
Revenue in advance(8,266)(5,872)-(14,138)
Interest rate swaps(1,371)-(851)(2,222)
Income tax losses not yet utilised(3,578)2,053-(1,525)
Other items(1,231)341-(890)
Net deferred tax liability11,7572904,18516,229
* Other comprehensive income
8. Trade and other receivables
Trade and other receivables are stated at amortised cost less impairment losses. Trade receivables are not significant on an individual
basis
and
are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate, less an
allowance for impairment. The allowance for doubtful debts is made up of expected credit losses based on assessment of trade
receivables debt at the individual level for impairment, plus an additional allowance on the remaining balance for potential credit
losses not yet identified. The expected credit losses allowance requirement on the remaining balance has been set at 2%. There has
been no material change in the allowance for doubtful debts from prior year.
2018
$000
2017
$000
Trade receivables
2,6322,059
Allowance for doubtful debts
(117)(59)
Net trade receivables
2,5152,000
Prepayments
4,9542,028
Accrued income
1,011777
Sundry debtors
21,35620,611
Total trade and other receivables29,83625,416

ANNUAL REPORT 2018
88
Notes to the Financial Statements (continued)
9. Property, plant and equipment
Property, plant and equipment includes care centres, both complete and under development, and corporate assets held.
All property, plant and equipment is initially recorded at cost. Cost includes expenditure that is directly attributable to the acquisition
of the asset. The cost of self-constructed care centres includes directly attributable construction costs and other costs necessary
to bring the care centres to working condition for their intended use. These other costs include professional fees and consents,
interest during the build period and head office costs directly related to the construction of the care centres. Where costs are
apportioned across more than one asset, the apportionment methodology is determined by considering the nature of the cost.
Subsequent to initial recognition, completed care centres are carried at a revalued amount, which is the fair value at the date of
the revaluation less any subsequent accumulated depreciation on care centres and accumulated impairment losses, if any, since
the assets were last revalued. Other corporate assets are subsequently measured at cost less accumulated depreciation and
impairment losses, if any. Where an item of plant and equipment is disposed of, the gain or loss recognised in the income statement
is calculated as the difference between the net sales price and the carrying amount of the asset.
Fair value is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged
between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction as at the valuation date.
Any revaluation surplus is recognised in other comprehensive income unless it reverses a revaluation decrease of the same asset
previously recognised in the income statement. Any revaluation deficit is recognised in the income statement unless it directly
offsets a previous surplus in the same asset in other comprehensive income. Any accumulated depreciation at revaluation date is
eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon
disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained earnings. Independent valuations
are performed with sufficient regularity to ensure that the carrying amount does not differ materially from the asset’s fair value at
the balance sheet date.
Note 6 provides details on capitalised borrowing costs.
Depreciation is charged to the income statement on a straight-line (SL) or diminishing value (DV
) basis over the estimated useful
life of each item of property, plant and equipment, with the exception of land, which is not depreciated. Depreciation methods,
useful lives and residual values are reassessed at the reporting date. Major depreciation rates are as follows:
•Buildings (
2% DV or SL)•Furniture and
fittings (2% to 80% DV or SL)
•Motor vehicles (10% to 36% DV or SL)•Plant and equipment (2% to 80% DV or SL)
Also included in the buildings category is building fit-out with depreciation rates ranging between 3% to 4
8% DV or SL.

FINANCIAL STATEMENTS
89
LAND
$000
BUILDINGS
$000
MOTOR
VEHICLES
$000
PLANT AND
EQUIPMENT
$000
FURNITURE
AND FITTINGS
$000
TOTAL
$000
Cost
Balance at 1 January 20173,08081,3051,2847,6944,78298,145
Additions-15,4522222,5302,07720,281
Disposals-(35)(211)(784)(664)(1,694)
Reclassification(250)(650)---(900)
Reversal of impairment
through profit or loss
15----15
Revaluations through other
comprehensive income
95013,544---14,494
Balance at 31 December
2017
3,795109,6161,2959,4406,195130,341
Additions-9,7012503,6081,12214,681
Disposals-(8)-(445)(14)(467)
Balance at 31 December
2018
3,795119,3091,54512,6037,303144,555
Accumulated depreciation
Balance at 1 January 2017-2,7426313,2751,6728,320
Depreciation charge for the
year
-1,7172191,5116614,108
Disposals-(18)(208)(698)(153)(1,077)
Revaluations through other
comprehensive income
-(4,441)---(4,441)
Balance at 31 December
2017
--6424,0882,1806,910
Depreciation charge for the
year
-2,3092151,9688135,305
Disposals-(2)-(395)(9)(406)
Balance at 31 December
2018
-2,3078575,6612,98411,809
Carrying amounts
As at 31 December 20173,795109,6166535,3524,015123,431
As at 31 December 20183,795117,0026886,9424,319132,746
Buildings includes $5.0 million of care centres under development carried at cost at 31 December 2018 (2017: $4.9 million).
Revaluations
An independent valuation to determine the fair value of all completed care centres which are classified as land and buildings was
carried out
as at 31 December 2017 by CBRE Limited, an independent registered valuer. Valuations are carried out every three years
unless there are indicators of a significant change in fair value. CBRE determine the fair value of all care centre assets using an
earnings-based multiple approach. Significant assumptions used in the most recent valuation include market value per care bed
of between $68,000 and $173,000 and individual unit earning capitalisation rate of between 12.0% and 15.0%.
As the fair value of land and buildings is determined using inputs that are unobservable, the Group has categorised property, plant
and equipment as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.

ANNUAL REPORT 2018
90
Notes to the Financial Statements (continued)
Sensitivity analysis to significant changes in unobservable inputs within Level 3 of the hierarchy
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of
the entity’s portfolios of land and buildings are the capitalisation rates applied to individual unit earnings and the market value per
care bed. A significant decrease (increase) in the capitalisation rate would result in a significantly higher (lower) fair value
measurement and a significant increase (decrease) in the market value per care bed would result in a significantly higher (lower) fair
value measurement.
Cost model
If land and buildings were measured using the cost model, the carrying amounts would be as follows:
20182017
LAND
$000
BUILDINGS
$000
TOTAL
$000
LAND
$000
BUILDINGS
$000
TOTAL
$000
Cost2,86593,34096,2052,86583,64886,513
Accumulated
depreciation and
impairment losses
-(14,245)(14,245)-(11,936)(11,936)
Net carrying amount2,86579,09581,9602,86571,71274,577
Security
At 31 December 2018, all care centres held by retirement villages registered under the Retirement Villages Act 2003 are subject to
a registered first mortgage in favour of the Statutory Supervisor.

FINANCIAL STATEMENTS
91
10. Intangible assets
Intangible assets
acquired by the Group are measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised in the income statement on a diminishing value or straight-line basis over the estimated useful lives of
intangible assets from the date that they are available for use. The intangible assets are software. The major amortisation rate at
31 December 2018 is 20% straight-line basis.
TOTAL
$000
Cost
Balance at 1 January 20173,815
Additions4,522
Disposals(65)
As at 31 December 20178,272
Additions2,489
Disposals(957)
As at 31 December 20189,804
Accumulated amortisation
Balance at 1 January 20172,253
Amortisation charge for the year520
Disposals(63)
As at 31 December 20172,710
Amortisation charge for the year1,380
Disposals(914)
As at 31 December 20183,176
Carrying amounts
As at 31 December 20175,562
As at 31 December 20186,628
11. Investment property
Investment property is held to earn current and future rental income (deferred management fees). It comprises land and buildings
and associated equipment and furnishings relating to retirement villages and common facilities in the retirement village. Investment
property includes buildings under development, excluding care centres under development which are included in property, plant
and equipment. Initial recognition of investment property is at cost and it is subsequently measured at fair value with any change
in fair value recognised in the income statement.
The cost of retirement villages includes directly attributable construction costs and other costs necessary to bring the retirement
villages to working condition for their intended use. These other costs include professional fees and consents, interest during the
build period and head office costs directly related to the construction of the retirement villages. Where costs are apportioned across
more than one asset, the apportionment methodology is determined by considering the nature of the cost.
Land acquired with the intention of constructing investment property on it is classified as investment property from the date of
acquisition.
Rental income from investment property, being deferred management fees, is accounted for as described in Note 4.
Depreciation is not charged on investment property.
Note 6 provides details on capitalised borrowing costs.

ANNUAL REPORT 2018
92
Notes to the Financial Statements (continued)
2018
$000
2017
Restated
$000
1
Balance at beginning of period2,069,6621,591,363
Additions305,492243,931
Disposals(35)(88)
Fair value movement209,930234,456
Total investment property2,585,0492,069,662
1 Fair value movement of investment property has been restated for 2017. Refer to note 1 comparative information for further details.
2018
$000
2017
Restated
$000
1
Development land measured at fair value
2
212,923152,750
Retirement villages measured at fair value2,204,3541,769,560
Retirement villages under development measured at cost167,772147,352
Total investment property2,585,0492,069,662
1 Investment property has been restated for 2017. Refer to note 1 comparative information for further details.
2 Included in development land is land acquired close to balance date and as such were excluded from the CBRE valuation of investment property. These pieces of land have
been accounted for at cost, which has been determined to be fair value due to the proximity of the transaction to balance date. At 31 December 2018 the land at cost was
$36.9 million (2017:$17.8 million).
2018
$000
2017
Restated
$000
1
Manager's net interest1,377,1741,052,542
Plus: revenue received in advance71,08350,493
Plus: liability for residents' loans1,136,792966,627
Total investment property2,585,0492,069,662
1 Investment property has been restated for 2017. Refer to note 1 comparative information for further details.
The Group is unable to reliably determine the fair value of non-land retirement villages under development at 31 December 2018
and therefore these are carried at cost. This equates to $167.8million of investment property (2017: $147.4 million).
The fair value of investment property as at 31 December 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 cash flow analysis to derive a net present value.
There has been no change in valuation technique since the previous period.
As required by NZ IAS 40 -
Investment Property, the fair value as determined by the independent registered valuer is adjusted for
assets and liabilities already recognised on the balance sheet which are also reflected in the cash flow analysis.
Significant assumptions used by the valuer include a discount rate of between 13.5% and 16.5% (2017: 13.5% to 16.0%) and a long
term nominal house price inflation rate (growth rate) of between 0% and 3.5% (2017: 0% to 3.5%). Other assumptions used by the
valuer include the average entry age of residents of between 72 years and 90 years (2017: 72 years and 96 years) and the stabilised
departing occupancy periods of retirement units of between 3.7 years and 9.0 years (2017: 3.7 years and 9.1 years).
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.

FINANCIAL STATEMENTS
93
Sensitivity analysis to significant changes in unobservable inputs within Level 3 of the hierarchy
To assess the market value of the Group's interest in a retirement village, CBRE has undertaken a cash flow analysis to derive a net
present value.
As the fair value of investment property is determined using inputs that are significant and unobservable, the Group
has categorised investment property as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 - Fair Value
Measurement.
The sensitivities of the significant assumptions are shown in the table below:
Fair value
Discount rate
+50 bp
Discount rate
-50 bp
Growth rates
+50bp
Growth rates
-50bp
31 December 2018
Valuation ($000)2,204,354
Difference ($000)(29,680)31,590130,057(116,831)
Difference (%)
(1.3%)1.4%5.9%(5.3%)
31 December 2017
Valuation ($000)1,769,560
Difference ($000)(23,880)25,410111,482(90,248)
Difference (%)
(1.3%)1.4%6.3%(5.1%)
Other key components in determining the fair value of investment property are the average entry age of residents and the average
occupancy of retirement units. A significant decrease (increase) in the occupancy period of retirement units would result in a
significantly higher (lower) fair value measurement and a significant increase (decrease) in the average entry age of residents would
result in a significantly higher (lower) fair value measurement.
Operating expenses
Direct operating expenses arising from investment property that generated rental income during the period amounted to
$2
9.3 million (2017: $26.1 million). There were 75 retirement units excluding work in progress (2017: nine) in investment property that
did not generate rental income during the period.
Security
At 31 December 2018, all investment property relating to registered retirement villages under the Retirement Villages Act 2003 are
subject to a registered first mortgage in favour of the Statutory Supervisor to secure the Group’s obligations to the occupation right
agreement holders.
12. Trade and other payables
Trade and other payables are carried at amortised cost. Due to their short-term nature they are not discounted.
2018
$000
2017
$000
Trade payables1,7231,752
Accruals - development of retirement units and care centres70,14437,520
Accruals - other11,3799,062
Sundry payables3,9923,524
Total trade and other payables87,23851,858

ANNUAL REPORT 2018
94
Notes to the Financial Statements (continued)
13. Employee benefits
A
provision
is made for benefits accruing to employees in respect of wages, salaries, annual leave and short-term incentives when
it is probable that settlement will be required and the amount can be estimated reliably.
2018
$000
2017
$000
Leave liabilities5,0373,899
Other employee benefits4,4152,834
Total employee benefits9,4526,733
14. Interest rate swaps
The Group uses interest rate swaps to manage its risk associated with interest rate fluctuations. Interest rate swaps are initially
recognised at
fair value on the date a contract is entered into and are subsequently measured at fair value on each reporting date.
The fair values of the interest rate swaps are determined based on cash flows discounted to present value using current market
interest rates.
Cash flow hedges
The Group has entered into interest rate swaps to manage its interest rate risk in relation to its floating rate debt. These interest rate
swaps qualify for cash flow hedge accounting. When interest rate swaps meet the criteria for cash flow hedge accounting, the
effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income, while the ineffective
portion is recognised in the income statement. Amounts taken to reserves are transferred out of reserves and included in the
measurement of the hedged transaction when the forecast transaction occurs. When interest rate swaps do not meet the criteria
for cash flow hedge accounting, all movements in fair value of the hedging instrument are recognised in the income statement.
Under the interest rate swap agreements that qualify for cash flow hedge accounting, the Group has a right to receive interest at
variable rates and to pay interest at fixed rates. At 31 December 2018, the Group had interest rate swap agreements in place with
a total notional principal amount of $354 million (2017: $319 million). Of the swaps in place, at 31 December 2018 $267 million (2017:
$219 million) are being used to cover approximately 59% (2017: 63%) of the floating rate debt principal outstanding. These
agreements effectively change the Group’s interest exposure on the principal covered by the interest rate swaps from a floating
rate to fixed rates, which range between 2.78% and 4.43% (2017: 2.78% and 4.47%).
The fair value of these agreements at 31 December 2018 is a $14.1 million liability, comprised of $14.1 million of swap liabilities and
$0.0 million of swap assets (2017: liability of $7.9 million, comprised of $7.9 million of swap liabilities and $0.0 million of swap assets).
Of this, a liability of $360,000 (2017: $333,000) is estimated to be current. The agreements cover notional amounts for terms of
between one and ten years.

FINANCIAL STATEMENTS
95
The notional principal amounts and the period of expiry of the cash flow hedge interest rate swap contracts are as follows:
2018
$000
2017
$000
Less than 1 year37,00027,000
Between 1 and 2 years40,00037,000
Between 2 and 3 years25,00040,000
Between 3 and 4 years70,00025,000
Between 4 and 5 years25,00050,000
Between 5 and 6 years20,00010,000
Between 6 and 7 years25,00020,000
Between 7 and 8 years52,00025,000
Between 8 and 9 years50,00045,000
Between 9 and 10 years10,00040,000
Total354,000319,000
Current267,000219,000
Forward starting87,000100,000
Total354,000319,000
Fair value hedges
The Group has entered into interest rate swaps to manage its interest rate risk in relation to its fixed rate
debt arising from the retail
bonds. The hedge is for the future fair value movements in the retail bonds as a result of market interest rate movements. The Group
has designated all of its $225.0 million retail bonds in fair value hedge relationships.
Both the hedging instrument (interest rate swap) and the hedged risk are recognised at fair value. The change in the fair value of
both items offset in the statement of comprehensive income to the extent the hedging relationship is effective. The increase in fair
value of the interest rate swaps of $3.4 million (2017: $1.2 million) has been recognised in finance costs and has been offset with a
similar fair value loss on the retail bonds to leave an ineffective amount in finance costs of $57,000 (2017: $22,000).
Under the interest rate swap agreements that qualify for fair value hedge accounting, the Group has a right to receive interest at
fixed rates and to pay interest at floating rates. At 31 December 2018, the Group had interest rate swap agreements in place with a
total notional principal amount of $225.0 million (2017: $100.0 million). Of the interest rate swaps in place, at 31 December 2018
$225.0 million (2017: $100.0 million) are being used to cover 100% (2017: 100%) of the fixed interest rate retail bonds outstanding.
The notional principal amounts and the period of expiry of the fair value hedge interest rate swap contracts are as follows:
2018
$000
2017
$000
Between 4 and 5 years100,000-
Between 5 and 6 years-100,000
Between 6 and 7 years125,000-
Total225,000100,000
Current225,000100,000
Forward starting--
Total225,000100,000

ANNUAL REPORT 2018
96
Notes to the Financial Statements (continued)
15. Residents' loans
Residents
’ loans are amounts payable under occupation right agreements. An occupation
right agreement confers a right of
occupancy to a villa, apartment, serviced apartment or memory care apartment. The consideration received on the grant of an
occupation right agreement is allocated to the resident’s loan in full. These loans are non-interest-bearing and are payable when
both an occupation right agreement is terminated and there has been settlement of a new occupation right agreement for the same
retirement unit and the proceeds from the new settlement have been received by the Group. Residents’ loans are initially recognised
at fair value and subsequently measured at amortised cost.
The Group holds a contractual right to set-off the deferred management fee receivable on termination of an agreement against
the resident’s loan to be repaid. Residents’ loans are therefore recognised net of the deferred management fee receivable on the
balance sheet. Deferred management fees are payable by residents in consideration for the supply of accommodation and the right
to share in the use of community facilities. Deferred management fees are paid in arrears with the amount payable calculated as
a percentage of the resident’s loan amount as per the resident’s occupation right agreement. Deferred management fee receivable
is calculated and recorded based on the current tenure of the resident and the contractual right to deferred management fee earned
at balance date. Refer to Note 4 for further detail on recognition of deferred management fee revenue.
2018
$000
2017
$000
Balance at beginning of period1,134,069924,848
Net receipts for residents' loans - resales of occupation right agreements34,19327,647
Receipts for residents' loans - new occupation right agreements187,273181,574
Total gross residents’ loans1,355,5351,134,069
Deferred management fees receivable(218,743)(167,442)
Total residents’ loans1,136,792966,627
Note 17 provides a split between current and non-current residents’ loans.