Annual Report FY2019

ANNUAL REPORT 2019
AT THE
HEART
OF IT

Pat Caspersen & son
Lives at Greenvalley
89-year-old Patricia Caspersen
moved into Greenvalley over
a year ago. “The first thing we
noticed about Greenvalley was
that the staff were extremely
approachable and friendly,”
says son Lex. “From the
managers, to the cleaners –
everyone we met had a smile
on their face.”
For Lex, it’s a relief to know
his Mum is in good hands.
“When Mum was living on her
own, she’d go days without
talking to anyone. Nowadays,
she’s a happier person – she’s
lost that loneliness. Her medical
needs are looked after, she gets
great food, and she’s the first to
sign up for van trips – she loves
to get out and about!”
Oceania Healthcare Limited | Annual Report 2019

It’s at the heart of Oceania Healthcare.
It’s what sets us apart. By taking the time
to know our residents, understand them
and personalise their care we make a huge
difference to their happiness, every day.
It's this care, and the care we show in all
aspects of our business, that creates value.
In this report, as we move towards an
integrated approach, we take a close up
look at how we do what we do, what this
means for our stakeholders, and why this
makes us strong today and in the long term.
Delight
Letter from the Chair02
At a glance04
Highlights06
Working on what matters08
How we create value09
Letter from Chief Executive Officer10
Chief Executive Officer’s Q+A14
Our value outcomes
Residents love living in our
communities
16
– Our care suite strategy explained17
– Developments and design19
We delight our residents with
hospitality inspired, customer
led services
28
– Dining to delight29
We are passionate about the
wellbeing of our residents, their
families and our teams of staff
31
– Developing great leaders32
We lead the way in how we
do things
34
– Going digital to improve care35
Board of Directors36
Three Year Summary38
Financial Statements39
Corporate Governance97
01

During the year, the Directors have had
the pleasure of visiting many of our
sites, either as a Board or individually,
meeting with our staff and residents and
observing the culture and day-to-day
operations at our sites. It is great to see
our residents enjoying the services that
we deliver and the enthusiasm, passion
and capabilities of our team. We have
outstanding staff members and we
care about their wellbeing. During
these visits, the Directors welcomed
comments from residents and their
families which were incorporated
into Oceania Healthcare's continuous
improvement processes.
This year we have started the journey
towards preparing our Annual
Report using the integrated reporting
framework. We recognise that value
for Oceania Healthcare extends
beyond purely financial performance
and that it includes other dimensions,
such as our social and environmental
performance, that are important to us
and our stakeholders. We are currently
embedding the principles of integrated
thinking throughout the business so
that the reporting step will follow in
the years to come.
We are now well into the cycle of
decommissioning older sites and
replacing them with our new, premium
offering. For our key brownfields
locations, this redevelopment process
typically involves the construction of
new aged care buildings on our sites
as a first stage (adjacent to the existing
buildings), the transfer of residents from
the existing aged care centre to the new
centre once opened, and then the sale
(under ORA) of remaining premium beds
in the new centre.
There is a period at the beginning of
this cycle where earnings from our aged
care segment are negatively impacted,
and we have seen this in the 2019
financial year as we opened our new
care centre at The BayView in Tauranga
and neared completion of our new
care centre at Awatere in Hamilton. We
have also converted standard rooms
into 47 care suites within a number of
existing sites and in the process of this
conversion temporarily held rooms
vacant while construction works were
completed. This naturally reduces
earnings in the short term from the care
segment of our business until these
rooms are complete and sold under
ORA, in the process recovering the
capital costs of the conversion
and significantly enhancing aged
care earnings per bed.
As these new care suites at our
redevelopment sites, and rooms
converted into care suites at other
existing sites, are sold over the coming
year, earnings from our aged care
segment will increase materially due
to the enhanced earnings from the
care suite model.
We are about to commence the
redevelopment of our Lady Allum Village
in Milford, Auckland, with Stage One
comprising the new (replacement) care
centre located adjacent to the existing
care centre on the site. Again, this
redevelopment will cause a short term
negative impact to aged care earnings
as the existing site is impacted by this
construction, however considerable long
term value creation is unlocked through
the increased intensity of both aged care
and retirement village on the site, as
well as the enhanced earnings from
our new care suites.
We have continued to successfully
execute our strategy of developing
our brownfield sites in major cities and
upgrading our other aged care sites
throughout New Zealand during the
past year. In doing so, we are able to
offer a superior product and service
for both our care and independent
living residents.
Our care strategy is to develop premium
rooms that are sold under occupation
right agreements (our care suites) as well
as transform our existing portfolio into
a mix of premium and standard rooms.
Oceania Healthcare not only receives
the daily care fee for our premium
rooms (for providing care services to
each resident), but also a return from
the deferred management fee (if the
resident is occupying a care suite) or the
daily premium accommodation charge.
We explain our care suite strategy in
more detail on page 17 and our CEO
expands on the success of this strategy
during the last financial year in his report.
Our strategy in our independent living
business is to redevelop our premium
locations with high quality independent
living accommodation and spacious,
well-appointed community facilities.
By doing this, we maximise value and
yield through the revenue generated
from the selling prices and the trail
deferred management income (being
the deferred management fees payable
on the ORA). We also continue to
purchase property adjoining existing
sites in order to expand our villages and
in the year ahead will identify more well-
located greenfield sites to support our
future growth. Further information on
our development philosophy is set out
on page 19.
I am pleased to report another strong
performance for Oceania Healthcare
in the year ending 31 May 2019, with
Underlying Net Profit after Tax from
continuing operations of $49.7m and
Total Comprehensive Income of $99.8m.
Letter from the Chair
02
Oceania Healthcare Limited | Annual Report 2019

Liz Coutts
Chair
Liz Coutts has been a
Director of Oceania Healthcare
since 5 November 2014 and
was appointed Chair in 2014.
Liz is also the Chair of Ports
of Auckland Limited and
Skellerup Holdings Limited,
and a director of EBOS
Group Limited.
INSIGHT:
Keeping a happy balance
I use some of my leisure time to stay fit
and active. I run 6km on the treadmill
most days and enjoy walking around
Auckland’s waterfront and tracks
around the Queenstown area. I enjoy
yoga - a personal instructor keeps me
on track with my fitness goals!
Tennis is my favourite sport. Recently
I have been fundraising for the
redevelopment of the Auckland
Tennis Centre and I am actively
involved with the governance of the
ASB Classic international tennis
tournament held in January each year.
When I’m not working, my husband
and I love to travel overseas and
experience new cultures and places.
Given Oceania Healthcare’s current
position in the redevelopment and
conversion cycle, our Underlying
Net Profit after Tax from continuing
operations was consistent with
the prior year at $49.7m. This was
largely a reflection of the timing for
completion of our two key development
sites (Meadowbank Stage Four and
The Sands) near the very end of our
financial year, which only allowed for a
small number of residents to move into
these sites before the end of May. We
are pleased to report that sales have
been very strong over these two sites
during June and July to date, and we
expect this to continue as both sites are
sold down over the coming year.
Reported Net Profit after Tax is $45.4m
and reflects the valuation of new
brownfields developments delivered
in the year. This is below last year due
to the valuation of our existing villages
remaining stable.
Total Comprehensive Income has
increased by 22.1% to $99.8m over the
year. This measure takes into account the
enhanced value that we are adding to our
aged care business as we bring new care
suites onto the market.
We have continued to increase our
total assets as a result of our ongoing
capital development programme and
revaluations with total assets valued at
$1.4bn as at 31 May 2019, an increase of
22.0% on prior year.
Operating cash flow of $89.3m was also
8.6% higher than the prior corresponding
period with sale proceeds from previously
completed developments contributing
$75.5m. We continue to maintain
sufficient headroom and flexibility
to accelerate the execution of our
development pipeline.
With net debt of $248.2m as at 31 May
2019, our gearing remains prudent with
net debt to net debt plus equity of 28.9%.
The Directors have declared a final
dividend of 2.6 cents per share, taking
full year dividends (non-imputed) to
4.7 cents per share, which represents
57% of Underlying Net Profit after Tax.
I am also pleased to advise that the
Board has approved the implementation
of a dividend reinvestment plan for
our New Zealand and Australian
shareholders, to take effect from the
dividend payable on 26 August 2019.
This provides a cost effective and
convenient way for our shareholders
to increase their investment in Oceania
Healthcare without any brokerage fees
by reinvesting all or part of any dividend
paid on their shares in additional
Oceania Healthcare shares instead of
receiving that distribution in cash.
On behalf of the Board, I would like
to thank our staff for their valuable
contribution again this year. The energy
and commitment that our staff bring
to our business is second to none and
we call upon the passion, skill and
experience of our staff every day to
continue to deliver high quality care
and services to our residents.
I am looking forward to the year ahead
as we continue to execute our strategy
to transform our product portfolio
and focus on delivering services which
exceed our residents’ expectations.
Yours sincerely,
Elizabeth Coutts
Chair, Oceania Healthcare Limited
03

At a glance
Oceania Healthcare is a leading provider
of premium healthcare services, with sites
located in metropolitan areas across
New Zealand. We are dedicated to delivering
exceptional and innovative hospitality services
that delight our residents.
04
Oceania Healthcare Limited | Annual Report 2019

We have a strong platform for growth
with a substantial development pipeline
and proven expertise and experience
in managing and delivering construction
projects.
We have sufficient land to build 1,995
new residences with 1,310 of these
already consented.
As at 31 May 2019
2,654
Care beds and care suites
2,600
Staff
1,202
Units
3,500
Residents
We pride ourselves in being a recognised
industry leader in the provision of clinical
care to our residents. Throughout the
year, we have continued to transform our
aged care offering and are continuously
innovating in both clinical care and
hospitality led service delivery.
4623
Existing sites with
mature operations
21
Existing sites with
brownfield developments
(current and planned)
2
Undeveloped
sitesTotal sites
05

$49.7m
Highlights
Financial
Underlying Net Profit after Tax – continuing operations
1
$99.8m$89.3m
Reported Total
Comprehensive IncomeOperating Cash Flow
22.1%
Ahead of 31 May
2018 reported total
comprehensive
income of $81.7m
1.8%
Behind 31 May 2018
underlying net profit
after tax – continuing
operations
$1.4b
Total Assets
22.0%
Higher than
31 May 2018 total
assets of $1.1b
1 Underlying net profit after tax – continuing operations contains a
proforma adjustment to underlying net profit after tax of $50.2m
and $52.1m respectively for FY2019 and FY2018 that excludes the
earnings from sites divested in 1HY2019.
8.6%
Ahead of 31 May 2018
operating cash flow
of $82.2m
06
Oceania Healthcare Limited | Annual Report 2019

Operational
Resale Care Suites
94
New Care Suites
57
Resale Units
83
Total Sales
310
Developments
Units + Care Suites
272
COMPLETED
272 units and care suites
completed in FY2019 at:
– The BayView (Tauranga);
– Meadowbank (Auckland);
and
– The Sands (Auckland).
Units + Care Suites
265
TO COMPLETE IN FY2020
265 units and care suites
to complete by the end of
FY2020 at:
– Awatere (90 care suites);
– Green Gables (89
apartments and care suites);
– Meadowbank
(26 apartments);
– Gracelands (32 villas);
– Woodlands (6 villas);
– Whitianga (10 villas); and
– Elderslea (12 villas).
Units + Care Suites
308
CONSENT SECURED
Resource consents
received during FY2019 for:
– Elmwood (142 care
suites in Auckland);
– Eden (49 apartments
in Auckland);
– Meadowbank (35 care
suites in Auckland);
– Eversley (61 care suites
in Hastings); and
– Eldon (21 villas on the
Kapiti Coast).


67. 3%
of the total development
pipeline is now consented.
Units + Care Suites
411
UNDER CONSTRUCTION
411 units and care suites
under construction as at
31 May 2019:
– Awatere (Hamilton);
– Green Gables (Nelson);
– Meadowbank (Auckland);
– Windermere (Christchurch);
– The BayView (Tauranga);
– Gracelands (Hastings);
– Whitianga (Coromandel);
and
– Elderslea (Upper Hutt).
New Units
76
10.7
%
Ahead of total sales
for the 12 months
to 31 May 2018
For the 12 months to 31 May 2019
07

We have set our strategy by considering
what is important to our key stakeholders
and which risks and opportunities have
the greatest impact on our ability to
create value in the short and long term.
Working on what matters
Our key stakeholders
– Residents and Families
– Staff
– DHBs
– Regulators
– Investors and Funders
– Communities
– Suppliers/Contractors
For the purposes of this report the
Board and Senior Management have
considered our key stakeholders and the
material risks in our internal risk register.
We have prioritised these to determine
four outcomes (or material matters) that
guide our strategy.
As we are at the early stages of
embedding the Integrated Reporting
framework, the material matters reflect
our customer and staff engagement
surveys, feedback from other
stakeholders and the views of Board and
Senior Management. We have reviewed
how we measure our performance of the
four material matters (set out on page 9
under Our Value Outcomes) and have
included some key performance
indicators in the subsequent sections
of this report, along with some examples
of our strategy in action.
We intend to build on this for future
reports, by conducting a formal
materiality review including interviews
with representatives of the various
stakeholder groups to refine what
matters most to them. This will enable
us to report on the matters that are
most relevant for our stakeholders.
08
Oceania Healthcare Limited | Annual Report 2019

How we create value
Ray and Vi
The BayView – 6 months
“Mum and Dad have been happily married for over
60 years, but when they needed rest home care, my goal
was to help them stay together. They moved into a large
care suite and it’s a relief to know they won’t ever have to
move again, even if one of them needs hospital care”.

OUR DRIVERS
Our people
Highly motivated, passionate and safe staff
Our expertise
The capability of our people and quality of
our systems
Our villages
The quality of our villages and landbank
Our relationships
The strength of the relationships we have
with our key stakeholders and our brand
reputation
Our financial capital
The combination of shareholder funds,
banking facilities and operating cashflow
employed to maintain and grow our business
Our natural capital
The quality of the natural resources we
rely on to run our business today and in
the future
OUR VALUE OUTCOMES
Residents love living in
our communities
We delight our residents
with hospitality inspired,
customer led services
We are passionate about
the wellbeing of our
staff, residents and their
families
We lead the way in how
we do things
How we create value
+
$

G
R
O
W
T
H
D
e
v
e
l
o
p
m
e
n
t

o
f

o
u
r

l
a
n
d
b
a
n
k

b
y
r
e
c
y
c
l
i
n
g

c
a
p
i
t
a
l

f
r
o
m

s
a
l
e
s
F
r
o
m

s
u
p
e
r
i
o
r

c
a
r
e

a
n
d

i
n
d
e
p
e
n
d
e
n
t

l
i
v
i
n
g

e
x
p
e
r
i
e
n
c
e
s
DELIGHT
DEVELOPSELL
$

Y
I
E
L
D
OUR PURPOSE
OUR VALUES
“We enhance the wellbeing of our residents and provide peace of mind to their families”
Kindness – Respect – Passion – Excellence
09

We have had another great year at Oceania
Healthcare as we go about delivering care and
services to our residents while diligently building,
selling and operating new sites. We are continuing
to push the boundaries by reinventing aged care
with more innovation than ever seen in New Zealand,
and delivering hospitality inspired services that
continue to delight our residents.
Letter from Chief Executive Officer
The weighting of our portfolio in care
and superior financial returns from
our care suite product differentiate us
from other operators in the market and
provide resilience against downturns in
the property cycle. We have continued
to prove our capability to design, build,
sell and operate premium aged care and
retirement villages throughout the last
financial year and we are particularly
thrilled to have welcomed residents
into our brand new care suite building
at The BayView in Tauranga and our
first apartment residents to their brand
new waterfront village, The Sands, in
Auckland’s Browns Bay in May 2019.
Care
We have continued to transform our
aged care offering during the year
and are continuously innovating in
both clinical care and hospitality-led
service delivery. We have a significantly
higher weighting of aged care beds to
retirement village units in our portfolio
compared to our peers and this will
remain the case as we build out our
brownfields development pipeline.
We pride ourselves in delivering
excellent care to our residents and
in being a recognised industry
leader in the provision of clinical
outcomes.
We were pleased to win both the
Innovative Service Delivery and the
Excellence in Food awards at the annual
New Zealand Aged Care Association
conference in September 2018.
Care suites are at the core of our
growth strategy in aged care. These
premium rooms are fully certified by
the Ministry of Health to provide rest
home through to hospital level care,
enabling residents to remain in the same
room throughout their care journey.
This full-service, round-the-clock care
capability sets care suites apart from
serviced apartments.
By selling premium rooms as care suites
under an occupation right agreement,
we not only generate aged care earnings
during the resident’s tenure by providing
care services, but we also realise a
deferred management fee at the end of
the tenure. These two revenue streams
provide the returns required to justify a
continued investment in aged care and
meet the significant expected increase
in demand as the population ages.
An important feature of our aged care
strategy is the enhancement of care and
hospitality service standards, that go
hand-in-hand with the redevelopment
of our premium care suite product.
We introduced our new superior service
delivery model to our Meadowbank
care suite residents last year, which
provides them personalised, resident-
centred services. Our residents enjoy
the benefits of having a guest service
manager (similar to a concierge at a
hotel), a choice of meals from a menu
in the dining room or from the in-room
menu, morning and afternoon tea
served in their suite or in the lounge,
a range of engaging leisure activities
on offer seven days a week and personal
laundry pressed and folded. Following
the success of this new model at
Meadowbank, we introduced the same
model at The BayView where it has
also been well received and sales of our
new suites that opened in January are
tracking ahead of expectation. We are
now looking forward to implementing
this model in our new care suites at
The Sands, Awatere (formerly Trevellyn in
Hamilton) and Green Gables (in Nelson)
when these sites open during FY2020.
10
Oceania Healthcare Limited | Annual Report 2019

11
During the year we appointed a National
Culinary Manager who has been working
with the Executive Chefs at our sites
to raise the standard of our dining
experience and ensure that our residents
are being served tasty and nutritious
meals. Our new winter 2019 menu was
rolled out across all of our aged care
sites in May 2019 and we have received
fantastic feedback from our residents.
We are also improving our clinical care
delivery with the necessary investment
in our IT platform. We are rolling out a
Resident Clinical Management System,
e-Case, across the country and, as at 31
May 2019, this has been implemented at
six of our sites. E-Case is revolutionising
the way that we manage resident
information.
In addition to building new care suites,
we have been transforming our aged
care portfolio by converting standard
rooms to premium rooms across a
number of sites around the country.
This process involves reconfiguring
internal layouts, enlarging room sizes,
and in some cases retrofitting ensuites
in order to bring the product up to a
superior standard. The new rooms are
certified as care suites and the capital
invested is recovered with the sale of the
occupation right agreement.
Aged care returns are also enhanced by
generating a deferred management fee
from the occupation right agreement.
Over the last year, we have completed
47 care suite conversions at Woodlands
(Motueka, Nelson), Holmwood (Rangiora,
Canterbury), St Johns Wood (Taupo),
Atawhai (Hawkes Bay), Middlepark
(Christchurch), Otumarama (Nelson)
and Addington Gardens (Christchurch).
Demand has been strong for these
premium rooms and we are now
planning the next stage of conversions
across nine sites.
Developments
We have made good progress on our
development sites during the year, with
all 272 retirement village units and
aged care beds completed as signalled
to investors last year. We are pleased
to have delivered the 81 care suites at
The BayView, 83 apartments and care
suites in Stage Four at Meadowbank
and 108 apartments and care suites at
The Sands, all on time and on budget.
As you will see from this Annual Report,
our new developments are meticulously
designed with their unique location
in mind. Residents at Meadowbank
enjoy spectacular views over the
neighbourhood and across the Orakei
Basin towards the Auckland CBD.
The Sands is a development right on the
waterfront at Browns Bay on Auckland’s
North Shore. Situated just across the
road from the beach, this boutique
village boasts stunning views across the
water looking out towards Rangitoto.
The apartments at Meadowbank and
The Sands are spacious and a significant
amount of care and planning has gone
into their design including enclosable
glass balconies, large showers and
wide corridors to make it easier for
our residents to enjoy their homes.
Make page 400 wide
210 + 190
add couple page to here

LETTER FROM CHIEF EXECUTIVE OFFICER
In addition to the completion of these
prominent Auckland projects, our
development team has been working
hard to complete 90 care suites at
Awatere (formerly Trevellyn) in July 2019.
In a similar approach to that taken at
The BayView in December, we intend
to move residents of the previous care
centre into the new care centre and then
sell the balance of the new care suites
under occupation right agreement. Later,
as rooms become available, we will sell
these under occupation right agreement.
We are also making good progress at
our Green Gables development in Nelson
(comprising 89 apartments and care
suites). This development is in a premium
location in central Nelson and we are
looking forward to completing this in the
second half of FY2020.
Construction is also well underway
on Stage Five at Meadowbank (26
apartments), Stage Two at The BayView
(74 apartments and community centre),
Gracelands (32 villas), Whitianga
(10 villas) and Windermere in
Christchurch (93 apartments and
c are suites).
We are also skilled in the management
of our resource consent processes, with
several new consents achieved during
the past year that significantly de-risk
our future redevelopment plans. New
consents were obtained during the year
at Eden, Eldon, Elmwood, Eversley, Lady
Allum and for Stage Six at Meadowbank.
Of the 1,995 retirement village units and
aged care beds in our pipeline, 67.3%
now have planning approvals in place.
Our people
Despite the substantial development
programme ahead of us, Oceania
Healthcare is very much a people
business. We have over 2,600 staff
caring for our residents and we
recognise that the passion of our staff is
the key to delivering outstanding care
to our residents. Two prominent features
of our culture at Oceania Healthcare are
leadership empowerment and teamwork,
and these are modelled on a daily basis
throughout our sites. I have personally
visited all 36 of our aged care sites
three times over the past year, both to
provide support and encouragement
to our site management, but also to
connect directly with our staff. I spend
three hours at every site visit, with half of
this dedicated to meeting with staff and
hearing their stories on a one-on-one or
group basis.
We have made a significant investment
again this year in learning and
development, with most of our Business
and Care Managers and Clinical
Managers now having completed the
Step-Up for Leaders training programme.
This upskilling enables them to lead
their people better than ever before.
We are also encouraged that 14% of
our healthcare assistants and 9% of our
cleaners completed the New Zealand
Certificate in Health and Wellbeing
qualification in the past year, enabling
them to move into higher pay bands,
with a further 32% of our healthcare
assistants and 28% of our cleaners
currently enrolled in these courses.
As well as providing our healthcare
assistants with substantial remuneration
increases through the Government’s
equal pay regime, in October 2018 we
increased our pay scales for registered
nurses to recognise the importance of
retaining these key employees in the
face of shortages across the health
sector. Our pay rates are now leading
the industry and new pathways have
been established for registered nurses
to progress through our pay scales with
high levels of professional development.
During the year we also achieved a
two year accreditation status with
Immigration New Zealand, which
enables Oceania Healthcare to
recruit internationally and provides a
faster turnaround for our employees’
work visas. This enhances Oceania
Healthcare’s employment brand and
builds on our reputation as a preferred
employer in the sector.
We are announcing the introduction
of an employee share scheme which
will be offered to all of our permanent
employees. This will give staff an
opportunity to own a stake in Oceania
Healthcare and share in our growth.
This year our staff will be invited to
participate in the scheme and receive
an allocation of $800 per annum (for
full-time employees) or $400 per annum
(for part-time employees) of Oceania
Healthcare shares. The shares will be held
in trust for three years before they are
transferred into the employee’s name. We
are delighted that our staff will be further
recognised for the crucial part that they
play in Oceania Healthcare’s success.
12
Oceania Healthcare Limited | Annual Report 2019

As well as working hard to deliver real
benefits for our staff, we have also
continued our focus on enhancing our
health and safety training and support
programmes across our sites. We
have developed a robust contractor
management process and training
programme and are rolling this out
nationwide. It is very pleasing to see
that our ongoing focus in this area has
had a positive impact on our business,
as we have made a further significant
reduction in our injury rates and in
doing so provided our staff with a safer
workplace than ever before.
Outlook
In the two years since our Initial Public
Offering we have been extremely busy
developing, selling and operating new
sites as well as transforming our care
offering – both in product and service
delivery.
INSIGHT:
My passion away from work
My family owned a sailing yacht from
when I was about 7 years old, and
we spent holidays sailing around the
Hauraki Gulf, one of the most beautiful
harbours in the world. I used to love
coming into a bay at the end of a day
out of the wind, weaving amongst the
larger yachts and launches moored
further off the shore, and finding a
spot closer in because our boat was
smaller. As soon as we had dropped
anchor I would jump in our little
dinghy and row ashore, exploring
the beaches and rocks. When I was
9 years old, I got my own sailing
dinghy, which we towed behind our
boat and when we moored I’d put up
the mast and sail around on my own.
Sailing is a sport that, once you’ve
experienced it as a youngster, you
always have in your blood. I don’t get
a lot of opportunity to get out on the
water nowadays but when I do the
exhilaration of being powered only
by the wind, at the edge of control,
is very addictive. It’s great that I can
now experience this with my kids and
pass on the passion for this great
New Zealand pastime.
We have a substantial development
pipeline at our brownfields sites for
the next six years and are in the financial
position to make further acquisitions of
development land should opportunities
arise during the next year. We are
looking forward to further executing
our development pipeline and care suite
conversion projects in order to deliver the
highest standards of care to our residents.
I am excited for the next year, with our
experienced and strong Board and
leadership team in place, a clear strategy
for growth, and our passionate staff who
are totally committed to their residents.
Yours sincerely,
Earl Gasparich
Chief Executive Officer
13

Q+A
It's been a busy two years for Oceania
Healthcare’s Chief Executive Officer,
Earl Gasparich, since Oceania Healthcare
listed on NZX and ASX in May 2017. We had
a chat with Earl about the challenges and
opportunities for Oceania Healthcare and
what makes him tick.
Q: It sounds as though you’ve had a
pretty busy time at work lately. What
do you like to do in your time off to help
you relax and recharge?
A: We’ve been incredibly busy over the
past two years executing our strategy
- there’s a lot going on and the team
are working very hard. Relaxing and
recharging is a very tough question –
my family would say that I don’t! I’ve
always been a bit of a workaholic but in
this role you have to intentionally create
time for family and friends or else it just
won’t happen. I did make a decision
several years ago that I wouldn’t work
on the weekends while the kids were
awake, and I’ve generally managed to
stick to that despite it meaning some
very late nights after they are asleep.
So I spend most of the time when not
at work with my wife and three children
doing a variety of sports, entertaining
and relaxing at home. We live on a
lifestyle block out in the western part
of Auckland which is a great haven.
I also make sure that I take time off
during school holidays which are good
times for making family memories.
Q: Oceania Healthcare has been listed
for two years now. What has been
achieved in that time?
A: The listing gave us the capital we
needed to execute our brownfields
development pipeline and transform
our existing aged care portfolio. From
a development perspective, we’ve
completed 364 units and care suites in
two years at The Sands, Meadowbank
Stages Three and Four and The BayView
care suites all on time and on budget.
We’ve also converted 114 standard rooms
and apartments into premium offerings
that are being sold under ORAs as care
suites at 12 sites. With our premium care
strategy we’ve launched our enhanced
care services at all sites with care suites,
and are now delivering unparalleled
levels of service in our new sites. We’ve
achieved an enormous amount in just
two years – the considerable investment
in our people is echoed in our staff
satisfaction, reduced injury rates and the
training that we’re providing at all levels.
We’ve lifted our culinary experience, our
activities on site, the list goes on and
on. I’m incredibly proud of our people
who are passionate and dedicated to
providing the best care and service to
our residents.
Q: How do you perceive the reported
slow down in the residential property
market in New Zealand and how is
Oceania Healthcare positioned to
respond to this?
A: There is no doubt that the growth in
residential property values has slowed
and in some parts of the country we
are seeing a slight easing in prices.
However, there is still a significant gap
in most regions between the average
house price and the asking price for
independent living units. For us at
Oceania Healthcare, we’ve been saying
for some time that, while Oceania
Healthcare is certainly not immune to the
effects of the slowing property market,
our business is a lot more resilient to it
than others. This is simply because of
the scale of our Care business, which
we describe as “needs-based”. What we
mean by this is that the decision to move
into an Oceania Healthcare aged care
site by an incoming care resident is not
driven by what the property market is
doing, it is driven by their need for care,
which is often urgent. These residents
are not factoring into their decision
how much they will sell their residential
properties for, that is the last thing on
their minds when their needs are such
that moving into aged residential care
is imperative. Even when looking to
purchase a care suite, the lower entry
price for these rooms means that
affordability is not compromised.
14
Oceania Healthcare Limited | Annual Report 2019

Q: Oceania Healthcare sold five of its
sites to Heritage Lifecare last year. Are
you intending to sell any other sites
over the next 12 months?
A: We undertook a portfolio review last
year that identified a small number of
sites that were not suitable for upgrade
or redevelopment and therefore did not
fit within our future aged care plans. As
a result of this review, we sold five of our
aged care sites to Heritage Lifecare last
year. At this stage we are not intending
to sell any other aged care sites.
Q: There has been a lot of discussion
recently about wage rates in the sector.
How is Oceania Healthcare rewarding
its people?
A: We have been investing a lot in our
people over the past two years. We
delivered a significant increase in the
pay rates for registered nurses last year,
as well as delivering the second year of
the Government’s equal pay settlement
for healthcare assistants. The starting
rate for other housekeeping staff also
increased significantly. Our pay rates for
registered nurses are now well aligned
to the recent DHB settlement and this
has certainly eased the pressure on
the retention of our registered nurses.
We provide direct support to our
registered nurses to complete their
professional development requirements
and for healthcare assistants to progress
through qualification levels, and have
also invested considerably in our
tailored leadership development
training programme, StepUp.
On top of this, we have just launched
our employee share scheme which
all of our permanent staff will be
invited to participate in. Our staff
will be able to own a stake in Oceania
Healthcare and will be further
recognised for the vital role they
play in Oceania Healthcare’s success.
Q: Your development at The BayView
in Tauranga has been the first major
development out of Auckland for some
time. Now that some of the residents
have been living in the care suites there
for six months, what feedback are you
getting for this product?
A: The feedback at The BayView is
wonderful. We took 60 residents from
an older building on site and moved
them into their brand new care suites
with new furniture in every room, and a
completely new model of care service
delivery. We have also sold 17 care suites
to new residents, who are enjoying
fabulous food, leisure activities and
beautiful common areas. I’m also really
pleased with the feedback from staff,
who have told me how much of a lift
in wellbeing they have noticed in their
residents simply from the move into the
new environment. It's great to see how
well this new service model is going.
Q: Oceania Healthcare delivered 272
units and care suites during FY2019.
How confident are you that the team
will be able to deliver the 250+ units
and care suites promised from FY2020?
A: We are confident that Oceania
Healthcare will be able to deliver our
increased build rates of 250 units and
care suites in FY2021 and 300 units
and care suites each year thereafter,
starting with 265 units and care suites
due for completion in FY2020. With
the completion of The Sands and
Meadowbank Stage Four on programme
this past year, and the completion of
Awatere Village ahead of programme
in July 2019, we have proven our
development capability to the market.
All of our current developments are
progressing well according to plan
and therefore we’ve got high levels
of confidence in the team continuing
to deliver.
Q: What level of acquisitions will
Oceania Healthcare need to achieve
this level of growth?
A: We acquired the properties at
Waimarie Street in St Heliers, Auckland
last year and our team has been busy
consenting this development. In addition
to this, we have bought some properties
adjacent to our Elmwood, Lady Allum
and Eden sites (also in Auckland),
so we’ve got plenty of development
ahead of us. Having said that, if a good
opportunity came up, we would certainly
look to acquire this in the same way
that we acquired the properties in St
Heliers. The reality is that we’re a good
five years away from needing to turn dirt
on another site in order to maintain our
build rate.
15

OUR VALUE OUTCOMES
Residents love living in
our communities
We are creating premium aged care
and independent living environments by
executing our development pipeline of 1,995
suites and units and by converting standard
rooms to care suites. As a result our
portfolio will increase by 38% to over 5,000
suites and units, with 55% of these being
care beds and care suites. Our care portfolio
will comprise ~67% premium beds.
FY2017
FY2018FY2019
3.0
3.6
5.1
13.3
15.0
17.1
Care suitesIndependent living units
INCREASING DEFERRED MANAGEMENT FEE
($M’S PER ANNUM)
CARE PORTFOLIO COMPOSITION
FY2018
1
FY2019FY2020Fully Built Pipeline
2,593
Beds
2,654
Beds
2,724
Beds
2,902
Beds
Standard bedsPAC beds
500
1,000
1,500
2,000
2,500
3,000
3,500
Care units
Care suites
63%
24%
13%
56%
23%
21%
48%
22%
30%
33%
21%
46%
1 FY2018 portfolio restated for the sites that were divested in 1H2019.
16
Oceania Healthcare Limited | Annual Report 2019

At Oceania Healthcare, we are changing the face
of premium aged residential care in New Zealand.
As baby-boomers retire and later require permanent
assisted living, they are demanding standards of
accommodation and service well beyond what
traditional rest homes are capable of providing.
In addition, it is well recognised that the Government’s
fixed daily care fee falls well short of what is required
to give operators anything like a reasonable return on
the capital investment needed for new aged care sites.
Our care suite strategy explained
Our executive chef prepares tailored
meals just the way our residents like it,
and residents can choose if they want
to eat in their own suite, or in the dining
room. We also have dedicated guest
services roles (like concierges within
hotels) to help coordinate a resident’s
diary, ensuring it is full of the things they
love to do. This guest services function
also provides an important role liaising
with friends and families so the resident
can stay socially connected with both
their families, and their local community.
Our care suites are all fully certified
by the Ministry of Health to provide
aged residential care services from rest
home to hospital level, meaning that
the resident does not need to move
out of the care suite as their needs
increase. This is a significant advantage
of the care suite model compared with
serviced apartments, which are generally
only certified, at best, to provide low
levels of care. When the resident within
a serviced apartment requires higher
levels of care, they are usually moved
into a more traditional aged residential
care centre and, if a premium room is
chosen, they will pay a PAC every day
for the remainder of their stay. In some
cases, the resident may even have to
move again – a third time – if their needs
increase from rest home to hospital level
of care. This is highly undesirable for
residents at the most vulnerable time of
their lives.
In contrast, when a resident moves into
an Oceania Healthcare care suite, they
have the peace of mind of having the
right to remain in their suite and can
stay in that suite for the duration of their
time in care without being required to
move again. Families also find it very
reassuring to know that there are more
care staff and registered nurses on hand
in a care suite environment compared
with serviced apartments.
Other operators generally offer
their retirement village residents a
“free” transfer from an independent
living unit to a serviced apartment
when the resident needs additional
living assistance. When that resident
subsequently requires a higher level
of care, the resident will usually be
moved into an aged care centre.
At that point, they will pay for a premium
room (by way of a PAC). In contrast,
Oceania Healthcare village residents
remain in their independent living unit
slightly longer, receiving some daily
assistance if required (provided by
the DHB or otherwise), and when their
needs increase to rest home level, they
move only once into their “forever” care
suite, enjoying the incredible living
environment and highest standards of
service seen anywhere in New Zealand.
In response, the DHBs have for some
time recognised the ability of operators
to provide residents with premium
rooms, and charge residents additional
fees to stay in these types of superior
accommodation. These fees take the form
of premium accommodation charges
(PACs) or deferred management fees
(DMFs) on occupation right agreements
(ORAs). These two premium charging
models have strong similarities to the
Australian aged care accommodation
funding model of daily accommodation
payments (DAPs) and refundable
accommodation deposits (RADs).
We offer residents both types of
premium rooms at Oceania Healthcare
(PACs and ORAs). At our new aged
residential care sites these premium
rooms are called care suites and they
are all licensed under ORAs. Each care
suite has its own kitchenette and seating
area and most have a balcony, so it feels
more like an apartment than simply a
bedroom. Our focus on great design,
and our passion for creating delightful
customer experiences, ensures that our
care suite environments do not look
or feel anything like a traditional rest
home either. Our design ensures that
any medical equipment is hidden away,
and the café, dining area and lounges
look like an independent living area of a
retirement village.
17

Thomas Kingham
New Meadowbank resident
“We looked around at so many
places, but Meadowbank’s Care
Suites stood out as the best
by a long way,” says resident
Thomas Kingham. “It doesn’t
feel like a hospital at all and the
standard of care and service
here are second to none.”
“Just after I moved into
Meadowbank, the Guest
Services Manager put on a
welcome event for me,” says
Thomas. “She invited my sister
and her family, as well as a few
friends, so they could meet
everyone.”
“The food is amazing and the
chef’s just great,” says Thomas.
“He makes a fantastic hotpot -
that’s my absolute favourite.”
And, Thomas knows all the little
things are taken care of. “It’s
great having the Guest Services
Manager to help me make the
most of my days. I feel better
than I have done in years.”
Thomas is delighted to continue
doing the things he loves. “The
Guest Services Manager even
arranged for my friends from
Remuera Bridge Club to come
to Meadowbank and play with
me,” he says. “There’s a lot to
keep me occupied and living
the way that I’m used to.”
OUR VALUE OUTCOMES
18
Oceania Healthcare Limited | Annual Report 2019

Developments and design
Pre IPO
FY2018FY2019
67
30
159
254
101
113
Care suitesIndependent living units
Current
Post Development
54.7%
14.1%
31.2%
29.7%
25.4%
44.9%
Care bedsCare suitesUnits
Gareth Wright
Design Manager
Harpreet Sharma
Registered Nurse
Getting the small things right
is at the heart of creating
spaces that staff and residents
love to work and live in.
Our development team knows the
importance of getting all of the design
detail right. It is often the attention we
give to the small things that make living
and working in the places we build
even more enjoyable for residents, their
families and our staff.
Residents in our care have told us that
they want their living spaces to feel
more like home. They told us that seeing
hoists and wheelchairs in the corridors
made them feel like they were living in
a hospital. Through close collaboration
with the nursing team, our designers
were able to build care suites where all
medical equipment is stored out of plain
sight, and yet is still handy for our staff.
The design team are key catalysts for us
to be able to delight our residents. As
an example, the designers helped create
a more social vibe in our dining rooms.
Traditionally care centre dining rooms
use vinyl on the floor, but this surface
tends to bounce noise around the room
making conversation difficult.
The design team researched many
flooring options and worked with
manufacturers globally to solve the
problem. We now specify a high-tech
carpet that is very easy to clean, to
create a warm and inviting space for
residents and their families to get
together over a meal.
Our apartment residents also appreciate
the value of good design - whether it
is the encloseable glass balconies, the
wide apartment corridors, the full height
bedroom windows, or simply wardrobes
that do not feel flimsy – these quality
details set us apart from other operators.
Our passion for getting it right drives us
to design and build products that are
stylish, suitable, and highly valued by our
residents. A focus on great design plays
a big part in enabling our residents to
enjoy living well, for longer.
UNIT DELIVERY (PER ANNUM)
TOTAL PORTFOLIO COMPOSITION
19

OUR VALUE OUTCOMES
The Sands
Browns Bay, Auckland
STAT U S
COMPLETED MAY 2019
44
CARE SUITES
64
APARTMENTS
20
Oceania Healthcare Limited | Annual Report 2019

21

Meadowbank, Stage 4
Meadowbank, Auckland
STAT U S
COMPLETED MAY 2019
34
CARE SUITES
49
APARTMENTS
OUR VALUE OUTCOMES
22
Oceania Healthcare Limited | Annual Report 2019

The BayView, Stage 2
Tauranga
STAT U S
STAGE TWO UNDER CONSTRUCTION
COMMUNITY
CENTRE
74
APARTMENTS
23

STAT U S
STAGE ONE SCHEDULED FOR COMPLETION JULY 2019
Awatere, Stage 1
Hamilton
90
CARE SUITES
OUR VALUE OUTCOMES
24
Oceania Healthcare Limited | Annual Report 2019

Green Gables
Nelson
STAT U S
UNDER CONSTRUCTION
61
CARE SUITES
28
APARTMENTS
25

Windermere
Christchurch
STAT U S
UNDER CONSTRUCTION
71
CARE SUITES
22
APARTMENTS
OUR VALUE OUTCOMES
26
Oceania Healthcare Limited | Annual Report 2019

Gracelands
Hastings
STAT U S
UNDER CONSTRUCTION
32
VILLAS
27

By listening to our residents and their
families and personalising our services, we
are delighting our residents with hospitality
inspired, customer led services. Our focus
is on the total wellbeing of our residents,
underpinned by high quality clinical care.
We delight our residents
with hospitality inspired,
customer led services
FY2017
FY2018FY2019
91.3
92.8
90.1
OCCUPANCY AT NON DEVELOPMENT
OR CONVERSION SITES
FY2018 – 33
FY2017 – 35
CARE CUSTOMER SATISFACTION
– NET PROMOTER SCORE
OUR VALUE OUTCOMES
32
FY2019
VILLAGE CUSTOMER SATISFACTION
– NET PROMOTER SCORE
FY2018 – 43
FY2017 – 53
56
FY2019
28
Oceania Healthcare Limited | Annual Report 2019

We are incredibly passionate about creating
delightful dining experiences for our residents at
Oceania Healthcare. We know that when it comes to
dining, our residents look forward with anticipation
to one of the many highlights of their day. It is a way
for them to share time with friends and family, and it
fulfils and nourishes the body and soul.
Dining to delight
Vincent Marshall
Chef
Vincent has been a chef for 25 years and has worked
around the world, even cooking for the Queen!
29

Fabulous food experiences start
with a team of executive chefs across
New Zealand who are highly talented,
experienced and know about creating
food for our residents that not only
tastes great, but it looks good and is
served in a high quality environment that
you’d expect in any restaurant. Over 90%
of our culinary teams across Oceania
Healthcare’s care sites are now led by
qualified executive chefs, who show real
heart in serving their residents.
This year we appointed a National
Culinary Manager, who supports our
teams and champions them to deliver
dining experiences that create a real
point of difference for our business.
Vincent Marshall has been a chef for
25 years and has worked around the
world, even cooking for the Queen!
He has gathered our residents’
favourite recipes across the country,
held workshops with the culinary teams,
and created new menus that included
both old favourites as well as delightful
new dishes that make the most of fresh,
seasonal ingredients.
“This was a really fun process to lead.
Our residents were just great as they
shared stories and memories of why
recipes were special to them. For
example, our chefs knew that lamb stew
was an absolute favourite, so we put
together a lamb hotpot with a crispy
pastry top and a minted pea puree
recipe, which is a modern twist on it –
and our residents loved it.
Similarly, everyone loved fish and chips
on a Friday, but it absolutely has to be
made with fresh fish! So we searched for
new suppliers who could deliver fresh
fish, just on time, across all our sites
nationwide. The extra effort we put into
getting this right was all worth it when
we saw just how delighted the residents
were to be served fresh, tasty beer
battered fish and chips each week”.
“I was very proud and humbled this
year when Oceania Healthcare received
the Excellence in Food award at the
New Zealand Aged Care Association
conference and was also a medallist at
the Senior Lifestyle Cuisine competition.
Winning these awards proves that
Oceania Healthcare is an innovator in
this industry and this helps to attract
executive chefs who may not have
previously thought of food in aged care
as being so exciting, challenging and
rewarding to create”.
Vincent spends most of his time
upskilling the culinary team across
Oceania Healthcare and working
with them to create warm and inviting
dining experiences. He also works
with our development team designing
kitchens for our new sites as we look to
reach even greater standards to delight
our residents.
Oceania Healthcare’s famous
lamb hotpot with crispy pastry
top and minted pea puree.
OUR VALUE OUTCOMES
30
Oceania Healthcare Limited | Annual Report 2019

We are passionate about the
wellbeing of our residents,
their families and our teams
of staff.
A culture of kindness and respect
leads to engaged staff who show great
empathy for our residents. We will
nurture and develop our leaders, provide
opportunities for our staff to learn and
grow, and maintain our focus on the
safety and welfare of our staff.
FY2017
FY2018FY2019
22.03
11.6611.65
LOST TIME INJURY FREQUENCY RATE
(DAYS)
FY2017
FY2018FY2019
52.7
57.0
61.4
STAFF ENGAGEMENT
(%)
1
1 Staff engagement is measured as the employees who 'agreed' or 'strongly agreed' with
the statement "I would recommend this as a great place to work".
31

We are passionate about our people and support
their learning and development at all levels. The
many national awards we have won for our in-house
training programmes, and the quality of our teams,
is testimony to the investment we put into helping
our people reach their full potential.
Developing great leaders
“ The distinction between managing
and leading a team showed me that
I needed to be there to support and
coach my staff more frequently,
rather than step-in and do the job
myself. I learnt that leadership is a
mindset and that hard-wiring of my
brain from previous experiences
impacts my approach to problem
solving, motivating others and
collaboration. I now realise that a
growth mindset allows me greater
freedom in my role as Clinical
Manager, and this has facilitated
change and a new perspective
on my role as a leader. I found
my approach has become more
solution orientated and I now
encourage staff to contribute
solutions rather than them
frequently looking to me to solve
their problems. Since completing
the course, I have an easier
relationship with staff and a greater
confidence to lead.”
Jane Coles
Palm Grove
“ This programme has dramatically
changed the way I lead. I feel more
confident and calmer in my role. It
gave me the tools to focus on the
vision for Heretaunga and helped
me to prioritise my day to focus
on what is important. I used to get
pulled into a lot of ‘drama’, now I
have the skills to successfully coach
people to find their own solutions.
This has been empowering and
motivating for my team, who now
feel they have more control over
their work. It has also freed up a lot
of my time, which means I spend
more time with our residents and
their families.”
Micky Sahni
Heretaunga
“ The programme has taught me so
much about myself, my leadership
style, and my approach to work.
I enjoy my job so much more
and have a better understanding
of people. Both my Clinical
Leaders have also benefited from
participating in the programme,
and one in particular, is a lot more
productive at work. She felt like
she didn't have enough time to get
everything done and now using the
tools she learnt on the programme,
she is better at prioritising her
work and can spend more time
with our residents. I have enjoyed
how our relationship has grown -
we now plan together, and have
more effective conversations. She
used to shy away from challenging
conversations with her staff, but
now she addresses these issues in
a confident and respectful way. I'm
so proud of how she has grown,
she’s doing an amazing job."
Sharon Blackbeard
Whareama
Our Step-Up for Leaders programme,
launched in 2017, is designed to
empower our managers, clinical leaders
and registered nurses to be better
leaders. We know that when our people
are well led, teamwork is more effective,
staff are more engaged and aligned to
our vision and values, and delivery of
services to our residents is of a higher
standard.
Step-Up for Leaders is an incredible
programme that takes people through
a six month journey of personal learning
experiences and group workshops. To
date, 75% of our managers, 86% of our
clinical leaders and our first four cohorts
of registered nurses have completed
the programme. The programme is
transforming the leadership capability
of our managers which is enabling them
to deliver strategy more effectively
within their sites through greater staff
engagement.
These testimonies show the
extraordinary impact that Step-Up has
had on participants, both within the
workplace and to their overall wellbeing:
OUR VALUE OUTCOMES
32
Oceania Healthcare Limited | Annual Report 2019

Catherine Larsen
Business & Care Manager
Developing great leaders
is at the heart of building
engaged teams.
33

By innovating, embracing technology
and making it easy to do business with
us, we will create sustainable profit and
deliver future growth.
We lead the way in how
we do things
OUR VALUE OUTCOMES
6

SITES LIVE
343
PAPER RESIDENT
RECORDS MIGRATED
268
STAFF WHO HAVE
RECEIVED TRAINING
AS AT 31 MAY 2019
34
Oceania Healthcare Limited | Annual Report 2019

We pride ourselves on the capability of our people
and the quality of care we provide our residents.
We understand that our residents, their families
and the DHBs place a lot of trust in us.
Going digital to improve care
April Ladia
(and Meadowbank resident)
Clinical Manager
Our new resident
management system allows
staff to spend more time
focusing on the resident
rather than on paperwork.
“We had some staff who had very basic
computer skills in the beginning but they
are now glad they’ve learnt”.
“It has improved the wellbeing of our
residents by enabling our team to
spend more time with them. Tasks are
prompted including what is required
if there are any changes in the health
of our residents. The families are very
happy that our staff are closer to the
daily needs of our residents.”
These sentiments are echoed by
her team.
Joseph, a registered nurse at
Meadowbank, has recently joined our
dedicated project implementation team
to provide training and support as we
implement e-Case at our other sites
throughout the country.
“Nurses love the new system. Before
when we went about our daily tasks,
we had a single copy of each resident’s
notes. Now we don’t have to wait for
access to a paper file and instead can
check and measure a resident’s progress
while we are with them in their care suite.
Multiple staff can update the resident’s
record without having to wait. I’m
therefore now able to spend a lot more
time with my residents and their families.”
With these high expectations comes the
need to continuously innovate and seek
ways to improve the way that we deliver
care and services.
Over the past year we have commenced
the implementation of a new resident
management system, e-Case, with six
sites now “live” on the new system.
The benefits of moving to a digital
system over a traditional paper-based
system have been immediate with
improved visibility of clinical indicators
and performance for our clinical quality
teams, providing greater assurance that
our residents are receiving the very best
care at all times.
We piloted e-Case at Meadowbank in
Auckland where April Ladia is the Clinical
Manager. Her team was happy to be the
test site for this very important project.
“Having a clinical information system
has helped me manage my team of
nurses and healthcare assistants more
productively. Information is captured in
real time about the care that needs to be
provided and we spend less time at our
nurses’ station writing notes and more
time with our residents”.
35

Greg Tomlinson
Non-Executive Director
AME
Sally Evans
Independent Director
BHSc, MSc, FAICD, GAIST
Patrick McCawe
Non-Executive Director
BCA (Hons), MBA, CA
Elizabeth Coutts
Chair and Independent Director
ONZM, BMS, FCA
Dame Kerry Prendergast
Independent Director
DNZM, CNZM, MBA (VUW), NZRN, NZM
Alan Isaac
Independent Director
CNZM, BCA, FCA
Hugh FitzSimons
Non-Executive Director
BEc LLB (Hons) (Syd)
From left to right
Board of Directors
Oceania Healthcare has an experienced
Board with a diverse range of skills.
The Board comprises an independent Chair,
three independent non-executive Directors
and three non-executive Directors.
36
Oceania Healthcare Limited | Annual Report 2019

Our Board Skill Set
Customer advocacy
Experience and understanding of sales,
marketing and brand strategy and practices.
Aged care, hospitality and customer
service market experience
Experience and understanding (either at
Board, leadership or senior consulting
level) the dynamics of the international
and domestic in either of the aged care,
hospitality and customer services markets,
and opportunities and challenges within
those markets.
Clinical experience
Experience and understanding of the
clinical requirements of the heathcare
sector at a governance, leadership and/or
practitioner level.
Customer advocacy
Aged care
4/7
Clinical experience
MARKETS AND CUSTOMERS
7/7
7/7
Growth
A track record of developing and
implementing a successful and sustainable
strategy of growth in business.
Strategy
Ability to think strategically and assess
strategic options and business plans.
Operational leverage
Experience in leading or advising organisational
change and creating value for the benefit of
customers and shareholders.
Business model and technology disruption
– Understanding of differing business models
and the potential for disruptive models
and practices to impact customers and the
supply chain
– Understanding of the opportunity and risks
provided by technology development.
7/7
Growth
Operational leverage
7/7
7/7
7/7
Strategy
Business model and
technology disruption
DELIVERING SUSTAINABLE GROWTH
Government relationships
An understanding of the functioning of
Government and experience developing and
maintaining a constructive relationship and
interactions with Government and regulators.
Shareholder/investment
community relationships
Experience in and understanding of
shareholder and investment community
concerns and developing constructive
relationships.
5/7
Government relationships
5/7
Shareholder/investment
community relationships
BUILDING AND MAINTAINING RELATIONSHIPS
– Experience as an investor, leader or adviser
in the property development market
– Experience as an investor, leader or adviser
in the construction industry.
PROPERTY AND CONSTRUCTION
3/7
Governance
– Commitment to the highest standard of
governance
– Board experience (NZX 50 or equivalent)
or experience as an adviser to Boards for
at least 5 years
– An ability to assess effectiveness of senior
management.
Finance and accounting
– Senior executive or board experience
in financial accounting and reporting,
corporate finance and internal controls
– Understanding of business and property
valuation principles and their implications
on the financial performance and position.
Risk management
– Developing and overseeing an appropriate
risk framework and culture
– Experience evaluating and managing
financial and non-financial risks.
Capital markets and structure
Experience with equity and debt markets,
capital structuring and investment analysis.
Regulatory knowledge and experience
An understanding of the regulatory
environment in which we operate and
the role that plays in ensuring sustainable
custodianship of our assets and providing
benefit to our customers.
Human resources
Familiarity with people and best practice
development and performance structures.
Health and safety
Experience and understanding of health
and safety and wellbeing requirements.
Governance
7/7
7/7
Risk management
CORE STRENGTHS
Finance and accounting
6/7
Health and safety
6/7
Regulatory knowledge and experience
7/7
Human resources
7/7
Capital markets and structure
7/7
37

38
Oceania Healthcare Limited | Annual Report 2019
Financial Metrics
$NZm May 2019May 2018
May 2017
1
Pro forma
Underlying net profit after tax
2
50.252.134.0
Underlying net profit after tax - continuing operations
3
49.750.632.3
Profit for the year45.47 7. 044.9
Total comprehensive income99.881.760.9
Total assets1,399.41 , 1 4 7. 2918.2
Operating cashflow89.382.239.0
Operating Metrics
May 2019May 2018May 2017
Units1,2021,1021,054
Care Suites542340242
Care Beds2,1122,5402,580
Total3,8563,9823,876
New Sales13310052
Resales177180151
Total310280203
Occupancy
4
92.8%90.1%91.3%
Three Year Summary
For the year ended 31 May 2019
1
Underlying net profit after tax for May 2017 has been adjusted to remove the impact of transaction and offer costs incurred for
the Initial Public Offering (“IPO”) and includes an estimate of listed company costs. Further, as the proceeds of the IPO were used
substantially to repay debt facilities an adjustment has also been made to reflect the interest expenses that would have been incurred
had a listed capital structure been in place from the start of the financial year.
2
This is a non-GAAP measure, see note 2.1 in the financial statements for further details.
3
Underlying net profit after tax - continuing operations contains a pro forma adjustment that excludes the earnings from sites divested
in 1HY2019.
4
Average annual occupancy in relation to sites not under development or conversion.

Consolidated Statement of Comprehensive Income 40
Consolidated Balance Sheet 4 1
Consolidated Statement of Changes in Equity 42
Consolidated Cash Flow Statement 43
Notes to the Consolidated Financial Statements 45
Independent Auditor's Report 90
Consolidated
Financial
Statements
For the year ended 31 May 2019
3939

40
Oceania Healthcare Limited | Annual Report 2019
$NZ000’s NotesMay 2019May 2018
Revenue2.2186,977 181,816
Change in fair value of investment property
3.146,60468,320
Other income
2.32,3772,226
Total income235,958252,362
Employee benefits and other staff costs
2.4119,786113,306
Depreciation and amortisation
2.49,5448,835
Finance costs
2.43,6402,944
Impairment / (reversal of impairment) of property, plant and equipment
3.26,982(1,142)
Impairment of goodwill
5.28,149-
Other expenses
2.456,06252,543
Total expenses204,163176,486
Profit before income tax31,79575,876
Income tax benefit
5.113,5761,096
Profit for the year45,37176,972
Other comprehensive income
Items that will not be subsequently reclassified to profit or loss
Gain on revaluation of property, plant and equipment for the year,
net of tax
3.256,1034,676
Items that may be subsequently reclassified to profit or loss
(Loss) / gain on cash flow hedges, net of tax
5.6(1,723)79
Other comprehensive income for the year, net of tax54,3804,755
Total comprehensive income for the year attributable to
shareholders of the parent99,75181,727
Basic earnings per share (cents per share)
4.27. 512.7
Diluted earnings per share (cents per share)
4.27. 512.7
Consolidated Statement of Comprehensive Income
For the year ended 31 May 2019
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

41
Consolidated Balance Sheet
As at 31 May 2019
$NZ000’s NotesMay 2019May 2018
Assets
Cash and cash equivalents22,76218,288
Trade and other receivables
5.343,54132,693
Investment property
3.1881,674755,561
Assets held for sale
3.2-19,653
Property, plant and equipment
3.2442,709303,561
Intangible assets
5.28,6681 7, 3 9 8
Total assets1,399,3541,147,154
Liabilities
Trade and other payables
5.438,5653 7, 5 9 2
Derivative financial instruments
5.62,443283
Deferred management fee
3.32 7,0 0 221,923
Refundable occupation right agreements
3.3436,481358,213
Borrowings
4.4270,159168,711
Deferred tax liabilities
5.114,82523,335
Total liabilities789,475610,057
Net assets609,8795 3 7,0 97
Equity
Contributed equity
4.1580,794579,498
Retained deficit(110,060)( 1 2 7, 8 9 9)
Reserves139,14585,498
Total equity609,8795 3 7,0 97
The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.

42
Oceania Healthcare Limited | Annual Report 2019
Consolidated Statement of Changes in Equity
For the year ended 31 May 2019
$NZ000’s Notes
Contributed
equity
Retained
deficit
Asset
revaluation
reserve
Cash flow
hedge
reserveTotal equity
Balance as at 31 May 2017579,498(195,966)84,603(182)467,953
Profit for the year - 76,972 - -76,972
Other comprehensive income
Revaluation of cash flow hedge
net of tax
5.6---7979
Revaluation of assets net of tax
3.2 - -4,676-4,676
Total comprehensive income - 76,9724,6767981,727
Transfer of revaluation reserve for
assets held for sale
3.2-3,678(3,678)--
Transactions with owners
Dividends paid
4.1-(12,692)--(12,692)
Employee share scheme
4.3-109--109
Total transactions with owners-(12,583) - -(12,583)
-
Balance as at 31 May 2018579,498( 1 2 7, 8 9 9)85,601(103)5 3 7,0 97
Profit for the year - 45,371 - -45,371
Other comprehensive income
Revaluation of cash flow hedge
net of tax
5.6---(1,723)(1,723)
Revaluation of assets net of tax
3.2 - -56,103-56,103
Total comprehensive income - 45,37156,103(1,723)99,751
Transfer of interest rate swaps reserve
on maturity
5.6-(4 0)-40-
Transfer of revaluation reserve for
assets held for sale
3.2-773(773)--
Transactions with owners
Dividends paid
4.1-(28,405)--(28,405)
Settlement of treasury shares
4.31,296---1,296
Employee share scheme
4.3-140--140
Total transactions with owners1,296(28,265) - -(26,969)
Balance as at 31 May 2019580,794(110,060)140,931(1,786)609,879
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

43
Consolidated Cash Flow Statement
For the year ended 31 May 2019
$NZ000’s May 2019May 2018
Cash flows from operating activities
Receipts from residents for village and care fees165,693161,786
Payments to suppliers and employees(164,829)(147,439)
Rental payments in relation to right to use asset(5,510)( 7,7 9 0)
Receipts from new occupation right agreements136,629113,517
Payments for outgoing occupation right agreements(39,656)(35,421)
Interest received145165
Interest paid(3,151)(2,588)
Net cash inflow from operating activities89,32182,230
Cash flows from investing activities
Proceeds from sale of property, plant and equipment and
investment property19,690170
Payments for property, plant and equipment and intangible assets(72,895)(33,389)
Payments for investment property and investment property under
development(100,569)(98,172)
Net cash outflow from investing activities(153,774)(131,391)
Cash flows from financing activities
Proceeds from borrowings180,387119,788
Repayment of borrowings(84,351)(50,508)
Dividends paid(28,405)(12,692)
Settlement of treasury shares1,296-
Net cash inflow from financing activities68,92756,588
Net increase in cash and cash equivalents4,4747, 4 2 7
Cash and cash equivalents at the beginning of the year18,28810,861
Cash and cash equivalents at end of year22,76218,288
The above Consolidated Cash Flow Statement should be read in conjunction with the accompanying notes.

44
Oceania Healthcare Limited | Annual Report 2019
Consolidated Cash Flow Statement (continued)
For the year ended 31 May 2019
Reconciliation of profit after income tax to net cash inflow from operating activities
$NZ000’s NotesMay 2019May 2018
Profit for the year45,37176,972
Non cash items included in profit for the year
Deferred management fees accrued but not settled
2.2(23,805)(18,74 8)
Depreciation and amortisation
2.49,5448,835
Impairment of goodwill
2.48,149-
Net (gain) / loss on disposal of property, plant and equipment(70)13
Fair value adjustment to investment property
3.1(46,604)(68,320)
Impairment / (reversal of impairment) of property, plant and equipment
3.26,982(1,142)
Loss allowance for trade and other receivables
2.462(156)
Interest accrued but not paid429356
Fair value movement on residents’ share of resale gains
2.4737(26)
Fair value loss on cash flow hedges
5.617-
Deferred tax benefit
5.1(13,576)(1,096)
Share based payments expense
4.3140109
Other non cash items (13)18
(58,008)(80,157)
Cash items excluded from profit for the year
Receipts from new occupation right agreements136,629113,517
Payments for outgoing occupation right agreements(39,656)(35,421)
Capitalised costs associated with refinance(645)-
96,32878,096
Increase in operating assets and liabilities
Decrease / (increase) in trade and other receivables290(3,222)
Increase in trade and other payables5,34010,541
Net cash inflow from operating activities89,32182,230
The Board of Directors of the Company authorised these consolidated financial statements for issue on
25 July 2019.
For and on behalf of the Board
Elizabeth Coutts Alan Isaac
Chairman Director
The above Consolidated Cash Flow Statement should be read in conjunction with the accompanying notes.

45
Notes to the
Consolidated
Financial
Statements
For the year ended 31 May 2019
1. General Information 46
1.1 Basis of Preparation 46
1.2 Accounting Policies 47
1.3 Significant Events and Transactions 47
2. Operating Performance 48
2.1 Operating Segments 48
2.2 Revenue 54
2.3 Other Income 55
2.4 Expenses 56
3. Property Assets 57
3.1 Village Assets: Investment Property 59
3.2 Care Assets: Property, Plant and
Equipment 63
3.3 Refundable Occupation Right
Agreements 68
4. Shareholder Equity and Funding 71
4.1 Shareholder Equity and Reserves 71
4.2 Earnings Per Share 72
4.3 Employee Share Based Payments 72
4.4 Borrowings 73
5. Other Disclosures 76
5.1 Income Tax 76
5.2 Intangible Assets 80
5.3 Trade and Other Receivables 82
5.4 Trade and Other Payables 83
5.5 Related Party Transactions 83
5.6 Financial Risk Management 84
5.7 New Accounting Standards 87
5.8 Contingencies and Commitments 88
5.9 Events After Balance Date 89
Independent Auditor's Report 90
45

46
Oceania Healthcare Limited | Annual Report 2019
Notes to the Consolidated Financial Statements
For the year ended 31 May 2019
1. General Information
1.1 Basis of Preparation
(i) Entities Reporting
The consolidated financial statements of the “Group” entity are for the economic entity comprising
Oceania Healthcare Limited (the “Company”) and its subsidiaries, together “the Group”. Refer to note 5.5
for details of the Group structure.
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of
Oceania Healthcare Limited as at 31 May 2019 and the results of all subsidiaries for the year then ended.
The Group owns and operates various care centres and retirement villages throughout New Zealand. The
Group's registered office is Affinity House, 2 Hargreaves Street, St Mary's Bay, Auckland 1011, New Zealand.
(ii) Statutory Base
Oceania Healthcare Limited is a limited liability company which is domiciled and incorporated in
New Zealand. It is registered under the Companies Act 1993 and is a FMC Reporting Entity in terms of Part 7
of the Financial Markets Conduct Act 2013. The Company is also listed on the NZX Main Board (“NZX”) and
the Australian Securities Exchange (“ASX”) as a foreign exempt listing. The consolidated financial statements
have been prepared in accordance with the requirements of the NZX and ASX listing rules, and Part 7 of the
Financial Markets Conduct Act 2013.
The consolidated financial statements have been prepared in accordance with New Zealand Generally
Accepted Accounting Practice (“NZ GAAP”). They comply with New Zealand equivalents to International
Financial Reporting Standards (“NZ IFRS”), International Financial Reporting Standards (“IFRS”) and other
applicable New Zealand Financial Reporting Standards, as appropriate for for-profit entities. The Group is
a Tier 1 for-profit entity in accordance with XRB A1.
The Consolidated Balance Sheet has been prepared using a liquidity format.
(iii) Measurement Basis
These consolidated financial statements have been prepared under the historical cost convention, as
modified by the revaluation of certain assets and liabilities, including investment properties, property, plant
and equipment, assets held for sale and cash flow hedges.
(iv) Going Concern Basis of Accounting
These consolidated financial statements have been prepared on a going concern basis.
(v) Key Estimates and Judgements
The preparation of the consolidated financial statements in conformity with NZ IFRS requires the use of
certain critical accounting estimates. It also requires management and Directors to exercise their judgement
in the process of applying the Group’s accounting policies.
The Group makes estimates and assumptions concerning the future. The accounting estimates may not
equal the actual results. Estimates and judgements are periodically 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 areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements are disclosed in the following notes:
– Fair value of investment property and investment property under development (note 3.1)
– Classification of accommodation with a care or service offering (note 3)
– Fair value of freehold land and buildings (note 3.2)
– Revenue recognition of deferred management fees (note 3.3)
– Recognition of deferred tax (note 5.1)

47
1.2 Accounting Policies
Accounting policies that summarise the measurement basis used and which are relevant to understanding
the consolidated financial statements are provided throughout the notes to these consolidated financial
statements.
Other relevant policies are provided as follows:
(i) Principles of Consolidation
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are deconsolidated from the date that control ceases.
Intercompany transactions and balances between Group companies are eliminated. Accounting policies of
subsidiaries are consistent with the policies adopted by the Group.
(ii) Functional and Presentational Currency
These consolidated financial statements are presented in New Zealand Dollars which is the Company’s
functional and the Group’s presentational currency. Unless otherwise stated the consolidated financial
statements are presented in round thousands of dollars. The use of $m signifies millions of dollars.
(iii) Goods and Services Tax (“GST”)
The Consolidated Statement of Comprehensive Income and Consolidated Cash Flow Statement have been
prepared so that all components are stated exclusive of any GST that can be claimed. GST is only deductible
by the Group to the extent that it relates to care operations. All items in the Consolidated Balance Sheet are
stated net of GST, with the exception of receivables and payables, which include GST invoiced.
(iv) Comparative Information
Where a change has been made to the presentation of the consolidated financial statements to that used
in prior periods, comparative figures have been restated accordingly.
(v) Measurement of Fair Value
The Group classifies its fair value measurement using the fair value hierarchy that reflects the significance
of the inputs used in making the measurements. The fair value hierarchy has the following levels.
Level 1: Quoted prices (unadjusted) in active markets for the identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The carrying amount of all financial assets and liabilities is considered to approximate their fair value.
1.3 Significant Events and Transactions
The financial position and performance of the Group were affected by the following events and transactions
during the year to 31 May 2019:
– Disposals – five facilities were sold during the year resulting in a gain of $0.6m within the care segment
(net of goodwill disposal of $1.6m) recognised in other income in the Consolidated Statement of
Comprehensive Income (note 3.2).
– Recognition of tax on deferred management fee (“DMF”) revenue – during the period there was a change
in the timing of recognition of DMF income for tax purposes (note 5.1).

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
48
Oceania Healthcare Limited | Annual Report 2019
2. Operating Performance
2.1 Operating Segments
The Group's chief operating decision maker is the Board of Directors.
The operating segments have been determined based on the information reviewed by the Board of Directors
for the purposes of allocating resources and assessing performance. The assets and liabilities of the Group
are reported to the chief operating decision maker in total not by operating segment.
The Group operates in New Zealand and comprises three segments; care operations, village operations
and other.
CareVillageOther
ProductIncludes traditional care
beds and care suites.
Includes independent living
and rental properties.
N/A
ServicesThe provision of
accommodation, care
and related services to
Oceania’s aged care
residents.
Includes the provision
of services such as
meals and care packages
to independent living
residents.
The provision of
accommodation and
related services to
independent residents
in the Group’s retirement
villages.
Provision of support
services to the Group
(includes administration,
marketing and operations).
In addition this segment
includes the provision of
training by Wesley Institute
of Learning.
Recognition of
Operating Revenue
and Expenses
The Group derives
Operating Revenue from
the provision of care and
accommodation. The daily
fee is set annually by the
Ministry of Health.
In relation to the provision
of superior accommodation
above the Government
specification the Group
derives revenue from
Premium Accommodation
Charges (“PACs”) or, in
the case of care suites,
through DMF.
Operating Expenses
primarily include staff
costs, resident welfare
expenses and overheads.
The Group derives
Operating Revenue from
weekly service fees and
rental income. Operating
Revenue also includes DMF
accrued over the expected
occupancy period for the
relevant accommodation.
Operating Expenses
include village property
maintenance, sales
and marketing, and
administration related
expenses.
Includes support office
and corporate expenses
and operating lease costs
relating to the Group’s
three leasehold sites.
Finance costs relate to the
cost of bank debt acquired
for the purchase and
development of villages.
Income and expenditure
relating to the Wesley
Institute of Learning is
recognised in this segment.
Recognition of Fair
Value movements
on New
Developments
Fair value increases or
decreases are recognised
in other comprehensive
income (i.e. not in profit
or loss) for the fair value
movement above historic
cost.
Impairments below
historic cost are recognised
in comprehensive income
(i.e. profit or loss).
Fair value movements
are recognised in
comprehensive income
(i.e. profit or loss).
N/A

49
CareVillageOther
Recognition
of Fair Value
movements on
Existing Care
Centres and
Retirement
Villages
Fair value movements are
treated the same as above.
When sites are
decommissioned for
development this results
in an impairment of the
buildings and chattels
which is recognised in
comprehensive income
(i.e. profit or loss).
Fair value movements
are recognised in
comprehensive income
(i.e. profit or loss).
N/A
Recognition in
Underlying Profit
(refer note 2.1
overleaf)
Fair value movements
are removed
Fair value movements
are removed. Realised
gains on resales and the
development margins from
the sale of independent
living units and care suites
are included.
No material adjustments.
Asset
Categorisation
Assets used, or, in the
case of developments, to
be used, in the provision
of care are recognised
as property, plant and
equipment.
Assets used for village
operations are recognised
as investment property.
Support office assets are
recognised as property,
plant and equipment.
Assets include intangibles
(e.g. software).
Information regarding the operations of each reportable segment is included below. Amongst other criteria,
performance is measured based on segmental underlying earnings before interest, tax, depreciation and
amortisation (“EBITDA”), which is the most relevant measure in evaluating the performance of segments
relative to other entities that operate within the aged care and retirement village industries.
Additional segmental reporting information
Capital expenditure: Refer to notes 3.1 and 3.2 for details on capital expenditure.
Goodwill: Goodwill is allocated to care cash generating units.
What is Total Comprehensive Income?
Total comprehensive income is a measure of the total performance of all segments under NZ GAAP.
It includes fair value movements relating to the Group’s care centres and cash flow hedges.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
50
Oceania Healthcare Limited | Annual Report 2019
2.1 Operating Segments (continued)
2019
$NZ000’s
Care
Operations
Village
OperationsOtherTotal
Revenue 161,06824,7571,152186,977
Change in fair value of investment property-46,604-46,604
Other income591
1,622192,232
Total income161,65972,9831,171235,813
Operating expenses(136,350)(20,343)(19,155)(175,848)
Impairment of goodwill(8,149)--(8,149)
Impairment of property, plant and equipment(6,982)--(6,982)
Segment EBITDA10,17852,640( 1 7, 9 8 4)44,834
Interest income-21124145
Finance costs--(3,640)(3,640)
Depreciation and amortisation(9,042)-(502)(9,544)
Profit before income tax1,13652,661(22,002)31,795
Income tax benefit2,3787, 2 8 03,91813,576
Profit for the year attributable to shareholders3,51459,941(18,084)45,371
Other comprehensive income
Gain on revaluation of property, plant and
equipment for the year, net of tax56,103--56,103
Loss on cash flow hedges, net of tax--(1,723)(1,723)
Total comprehensive income for the year
attributable to shareholders of the parent59,61759,941(19,807)99,751
2018
$NZ000’s
Care
Operations
Village
OperationsOtherTotal
Revenue 159,08321,5681,165181,816
Change in fair value of investment property-68,320-68,320
Other income512
1,549-2,061
Total income 159,595 91,4371,165252,197
Operating expenses(130,658)(19,095)(16,096)(165,849)
Impairment of goodwill----
Impairment of property, plant and equipment1,142--1,142
Segment EBITDA 30,079 72,342(14,931)8 7, 4 9 0
Interest income-21144165
Finance costs--(2,944)(2,944)
Depreciation and amortisation(8,307)-(528)(8,835)
Profit before income tax 21,772 72,363(18,259)75,876
Income tax benefit / (expense)1,2501,982(2,136)1,096
Profit for the year attributable to shareholders23,02274,345 (20,395)76,972
Other comprehensive income
Gain on revaluation of land and buildings for
the year, net of tax4,676--4,676
Gain on cash flow hedges, net of tax--7979
Total comprehensive income for the year
attributable to shareholders of the parent27,69874,345(20,316)81,727

51
Underlying Net Profit after tax (“Underlying Profit”)
Underlying Profit is a non-GAAP measure of financial performance and considered in the determination
of dividends. The calculation of Underlying Profit requires a methodology and a number of estimates to
be approved by the Directors in their preparation. Both the methodology and the estimates may differ
among companies in the retirement village sector. Underlying Profit does not represent cash flow generated
during the period.
The Group calculates Underlying Profit by making the following adjustments to reported Net Profit after Tax:
Net Profit after Tax
Add back /
remove
Change in fair value of investment property (including right to use investment property
assets) and cash flow hedges and impairment / reversal of impairment of property, plant
and equipment
Add backImpairment of goodwill
RemoveDMF income in relation to right to use investment property assets
Add backRental expenditure in relation to right to use investment property assets
Add back /
remove
Loss / gain on sale or decommissioning of assets
Add backDirectors’ estimate of realised gains on resale of occupation right agreement (“ORA”) units
and care suites
1
Add backDirectors’ estimate of realised development margin on the first sale of new ORA units
or care suites following the development of an ORA unit or care suite, conversion of an
existing care bed to a care suite or conversion of a rental unit to an ORA unit
Add backDeferred taxation component of taxation expense so that only the current tax expense
is reflected
=Underlying Profit
RemoveInterest income
Add backFinance cost
Add backDepreciation and amortisation
=Underlying EBITDA
Following the sale of certain assets during the 12 months to 31 May 2019 the definition of Underlying Profit
has been adjusted to exclude any gain or loss on the sale of assets.
Resale gain – underlying profit
The Directors’ estimate of realised gains on resales of ORA units and care suites (i.e. the difference between
the incoming resident’s ORA licence payment and the ORA licence payment previously received from the
outgoing resident) is calculated as the net cash flow received, and receivable at the point that the ORA
contract becomes unconditional and has either “cooled off” (the contractual period in which the resident can
cancel the contract) or where the resident is in occupation at balance date.
Development margin – underlying profit
The Directors’ estimate of realised development margin is calculated as the ORA licence payment received,
and receivable, in relation to the first sale of new ORA units and care suites, at the point that the ORA
contract becomes unconditional and has either “cooled off” or where the resident is in occupation at balance
date, less the development costs associated with developing the ORA units and care suites.
1
Units and care suites sold under an occupation right agreement.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
52
Oceania Healthcare Limited | Annual Report 2019
2.1 Operating Segments (continued)
The Directors’ estimate of realised development margin for conversions is calculated based on the difference
between the ORA licence payment received, and receivable, in relation to sales of newly converted ORA
units and care suites, at the point that the ORA contract becomes unconditional and has either “cooled off”
or where the resident is in occupation at balance date, and the associated conversion costs.
The below table describes the composition of development and conversion costs.
IncludedNew builds:
– the construction costs directly attributable to the relevant project, including any required
infrastructure (e.g. roads) and amenities related to the units (e.g. landscaping) as well
as any demolition and site preparation costs associated with the project. The costs are
apportioned between the ORA units and care suites, in aggregate, using estimates
provided by the project quantity surveyor. The construction costs for the individual ORA
units or care suites sold are determined on a prorated basis using gross floor areas of the
ORA units and care suites;
– an apportionment of land value based on the gross floor area of the ORA units and
care suites developed. The value for Brownfield
2
development land is the estimated fair
value of land at the time a change of use occurred
3
(from operating as a care centre or
retirement village to a development site), as assessed by an external independent valuer.
Greenfield
4
development land is valued at historical cost; and
– capitalised interest costs to the date of project completion apportioned using the gross
floor area of ORA units and care suites developed.
Conversions:
– of care beds to care suites - the actual refurbishment costs incurred; and
– of rental units to ORA units - the actual refurbishment costs incurred and the fair value
of the rental unit prior to conversion.
Excluded– Construction, land (apportioned on a gross floor area basis) and interest
costs associated with common areas and amenities or any operational or
administrative areas.
2
Brownfield land refers to land previously utilised by, or part of, an operational aged care centre or retirement village.
3
The timing of a change of use is a Directors’ estimate. It is based on a range of factors including evidence of steps taken to secure
a resource consent and/or building consent for a particular development or stage of a development and the decommissioning
of existing operations (either through the buy-back of existing village ORA units or decommissioning of an existing care centre).
Note the cost of buybacks is not included in the development cost as an independent fair value of the land on an unencumbered
basis is used as the value ascribed to the development land.
4
Greenfield land refers to land not previously utilised by, or as part of, an operational aged care centre or retirement village.
Greenfield land is typically bare (undeveloped) land at the time of purchase.

53
2019
$NZ000’s
Care
Operations
Village
OperationsOtherTotal
Total comprehensive income for the year
attributable to shareholders of the parent 59,617
59,941(19,807)99,751
Adjusted for underlying profit items
(Less): Change in fair value of investment
property
5
and cash flow hedges and impairment
of property, plant and equipment(49,121)(46,604)1,723(94,002)
Add: Impairment of goodwill8,149--8,149
Less: DMF in relation to right to use asset-(727)-(727)
Add: Rental expenditure in relation to right to use
asset -6,200-6,200
Add: (Gain) / loss on sale or decommissioning
of assets(380)-43656
Add: Realised resale gain-15,124-15,124
Add: Realised development margin-29,202-29,202
Underlying net profit before tax18,26563,136(17,648)63,753
Add: Deferred tax benefit / (expense)(2,378)( 7, 2 8 0)(3,918)(13,576)
Underlying net profit after tax15,88755,856(21,566)50,177
Less: Interest income-(21)(124)(145)
Add: Finance costs--3,6403,640
Add: Depreciation and amortisation9,042-5029,544
Underlying EBITDA24,92955,835( 1 7, 5 4 8 )63,216
2018
$NZ000’s
Care
Operations
Village
OperationsOtherTotal
Total comprehensive income for the year
attributable to shareholders of the parent 2 7, 6 9 8
74,3 45 (20,316)81,727
Adjusted for underlying profit items
(Less): Change in fair value of investment
property
5
and swaps and reversal of property,
plant and equipment(5,818)(68,320)(79)(74,217)
Add: Impairment of goodwill----
Less: DMF in relation to right to use asset-(123)-(123)
Add: Rental expenditure in relation to right
to use asset -7,7 9 0-7,7 9 0
Add: (Gain) / loss on sale or decommissioning
of assets----
Add: Realised gain on resale-16,930-16,930
Add: Realised development margin-21,052-21,052
Underlying net profit before tax21,88051,674(20,395)53,159
Add: Deferred tax (benefit) / expense(1,250)(1,982)2,136(1,096)
Underlying net profit after tax20,63049,692(18,259)52,063
Less: Interest income-(21)(144)(165)
Add: Finance costs--2,9442,944
Add: Depreciation and amortisation8,307-5288,835
Underlying EBITDA28,93749,671(14,931)63,677
5
Includes fair value change in fair value of right to use asset.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
54
Oceania Healthcare Limited | Annual Report 2019
2.2 Revenue
How we earn revenue
CareVillageOther
Daily care fees for long term and
short term rest home, hospital and
dementia residents
Deferred management fees
– independent living
Training income
Premium accommodation chargesVillage service fees
– independent living
Interest income
Deferred management fees
– care suites
Rental income – residents without
a long term occupation right
agreement
Accounting Policy
On 1 June 2018, the Group adopted NZ IFRS 15 Revenue from contracts with customers (“NZ IFRS 15”).
The Group has determined that the new accounting standard has not resulted in a change to either the
recognition or measurement of revenue and therefore there is no requirement to restate revenue reported in
prior periods. Deferred management fees and rental income are considered leases under NZ IAS 17 Leases
and NZ IFRS 16 Leases (“NZ IFRS 16”) after its adoption from 1 June 2019 and are therefore excluded from the
scope of NZ IFRS 15. None of the Group’s revenue, as defined by NZ IFRS 15, contains significant financing
components.
Rest Home and Hospital Service Fees
A contract is in place with all care residents by means of an admission agreement. The resident receives
the benefit as the care is administered and each resident incurs a contracted daily care fee set by the
Government each year. Rest home and hospital service fees are recognised at the point in time the services
are rendered which is specifically linked to the day the service is delivered. Where applicable these are
recognised net of any associated rebates to residents.
Aged care subsidies received from the Ministry of Health, included in rest home, hospital and dementia fee
revenue within the care segment, amounted to $101.0m (2018: $101.0m).
Premium Accommodation Charges
Premium accommodation charges are payable by residents who occupy a premium room above the level
specified by the Government. The charge is included in their admission agreement and the charge is
recognised when the accommodation is provided.
Deferred Management Fees
Deferred management fees are considered leases and are payable by residents of the Group's units,
apartments and care suites under the terms of their ORA or unit title rights. See note 3.3.
Management fees are typically payable on termination of the ORA up to a maximum percentage of a
resident's occupation licence or unit title rights deposit for the right to share in the use and enjoyment of
common facilities.
The timing of the recognition of deferred management fees is a critical accounting estimate and judgement.
The deferred management fee is recognised on a straight-line basis over the longer of the term specified in
a resident's ORA or the average expected occupancy for the relevant accommodation which is 7 years for
units, 5 years for apartments and 3 years for care suites from the date of occupation. Estimates of deferred
management fee tenure are reviewed periodically. Where a change is made, it is the Group’s policy to
recognise the aggregate impact of this change in the period in which the change in estimate occurs.
Deferred management fees are recognised with respect to the leased site as per note 3.1.

55
Village Service Fees
Village service fees are charged to residents to recover a portion of village operating costs associated with
services provided including staff wages, rates, and electricity. An ORA is in place with all village residents
who receive the benefit of services throughout their stay. Village service fees are recognised over time as
services are rendered.
Training Income
Training income is received from students attending short term training courses at the Wesley Institute of
Learning. Income is recognised when the course is provided.
Rental Income
Rental agreements are in place with all rental residents and set out the relevant weekly / monthly rental fee.
The resident receives the benefit throughout their stay and revenue is recognised as it is earned.
$NZ000’s May 2019May 2018
Rest home, hospital, dementia fees 151,700151,660
Premium accommodation charge3,3813,205
Deferred management fees – independent living1 7, 1 5 615,000
Deferred management fees – care suites5,0653,625
Deferred management fees – leased site727123
Village service fees5,7825,341
Training income1,1711,193
Rental income1,2571,093
Other services provided to residents738576
186,977181,816
2.3 Other Income
Interest Income
Interest income is recognised on an accruals basis using the effective interest method.
Other Income
Other income includes administration and legal income derived from the settlement of ORAs.
$NZ000’s May 2019May 2018
Interest income145165
Net gain on disposal of property assets-95
Movement of residents’ share of resale gains-26
Other income2,2321,940
2,3772,226

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
56
Oceania Healthcare Limited | Annual Report 2019
2.4 Expenses
Accounting Policy
All operating expenses are recognised on an accrual basis.
$NZ000’s NotesMay 2019May 2018
Profit before income tax includes the following expenses:
Employee benefits and other staff costs
Wages and salaries116,854111,009
Termination benefits323206
Employee share scheme expense
4.3140149
Other staff costs
1
2,4691,942
119,786113,306
Depreciation and amortisation
Depreciation of property, plant and equipment
3.29,4358,694
Amortisation of software
5.2109141
9,5448,835
Finance costs
Interest on senior debt facilities 6,5833,490
Agency, commitment and line fees2,8831,673
Interest rate swaps217411
Capitalised interest and line fees(6,917)(3,341)
Amortisation of bank fees213214
Bank interest1-
Change in fair value of cash flow hedges17-
Interest on finance leases643497
3,6402,944
Impairment / (reversal of impairment) of property, plant
and equipment
3.26,982(1,142)
Impairment of goodwill
5.28,149-
Other expenses
Fees paid to auditor
Audit and review of consolidated financial statements405436
Other assurance services – Trustee reporting 66
Other services
2
48-
Total fees paid to auditor459442
Repairs and maintenance of property, plant and equipment3,2202,966
Repairs and maintenance of investment property741933
Loss on disposal of property, plant and equipment56-
Donations146
Loss allowance for trade and other receivables
5.362(156)
Rental expense relating to operating leases1,3411,266
Rental expense relating to leased investment property
3.16,2007,7 9 0
Resident consumables15,38815,394
Movement of residents’ share of resale gains 737-
Insurance2,3181,710
Legal and professional services2,8832,343
Other expense (no items of individual significance) 22,64319,849
56,06252,543
Total Expenses204,163176,486
1
Other staff costs include costs such as staff training, uniforms and recruitment.
2
Other services relate to market research and a peer review of the tax treatment of Everil Orr.

57
3. Property Assets
The Group operates care centres and retirement villages. As outlined in section 2.1, village sites are typically
investment property and care sites are typically property, plant and equipment.
What is Investment Property?
Land and buildings are classified as investment property when they are held to generate revenue either
through capital appreciation or through rental income.
As residents occupying our retirement villages live independently, the level of services provided is
seen as secondary to the provision of accommodation. Accordingly, these buildings are classified as
investment property as they are held primarily to generate DMF income.
What is Property, Plant and Equipment?
Land, buildings and chattels are classified as property, plant and equipment when they are used to
generate revenue through the provision of goods and services or for administration purposes.
As residents occupying our care centres, including care suites, require services including nursing care,
meals and laundry the buildings in which they live are considered to be operated by the Group to
generate this revenue and are classified as property, plant and equipment.
What is a Care Suite?
Care suites are a premium offering for a resident requiring rest home or hospital level care. The care suite
is located within a care centre. Rather than pay a daily premium accommodation charge for the provision
of the premium room the residents enter into an ORA with a net management fee.
Classification of Serviced Apartments and Care Suites
Where services are provided to residents who occupy accommodation under an ORA, it is the Group’s policy
to assess their level of significance in the context of the overall income derived from the serviced apartment
or care suite in ascertaining whether the serviced apartment or care suite is freehold land and buildings
(referred to as property, plant and equipment) or investment property.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
58
Oceania Healthcare Limited | Annual Report 2019
3. Property Assets (continued)
The Group applies the following principles when ascertaining the appropriate accounting treatment to
be applied:
CLASSIFICATION
CONSIDERATION OF SIGNIFICANCE OF CASHFLOWS
SCENARIO
Additional Services
are optional
Services are
compulsory but an
insignificant portion
of total revenue
from the unit.
Services are
compulsory and a
significant portion
of the total revenue
from the unit.
Full ARRC
1
funded
care is compulsory
for that unit/bed.
Independent living (villa or apartment)
Care suiteTraditional care bed
Qualitatively the
business model is the
provision of retirement
accommodation
Quantitatively
insignificant (a
guideline of under
20% of total revenue
is adopted) and
qualitatively the
business model is the
provision of
retirement
accommodation
Quantitatively
significant.
Qualitatively the
business model is
the provision of
care
Qualitatively the
business model is
the provision of care.
Quantitative
assessment not
relevant as price of
accommodation
does not change
overall purpose of
the accommodation
Investment Property
Village Assets
Property, Plant and
Equipment Care Assets
1
ARRC refers to age-related residential care.

59
3.1 Village Assets: Investment Property
Accounting Policy
Investment property includes both freehold land and buildings and land and buildings under development,
comprising independent units, serviced apartments and common facilities, provided for use by residents
under the terms of an ORA. Investment property is held for long-term yields and is not occupied by the
Group. Investment property is held at fair value.
The fair value of investment property is determined by the Directors having taken into consideration the
valuation conducted by CBRE Limited as an independent registered valuer and the cost of work undertaken
in relation to investment property under development, whereas previously the fair value of investment
property was held at the CBRE Limited valuation plus the cost of work undertaken in relation to investment
property under development.
The movement in the carrying value of investment property, net of additions, transfers and disposals is
recognised as a fair value movement in the Consolidated Statement of Comprehensive Income.
Fair value measurement on investment property under development is only applied if the fair value is
considered to be reliably measurable. Where the fair value of a property under development can be
determined, it is carried at fair value. Where the fair value of investment property under development cannot
be reliably determined, the carrying amount is considered to be the fair value of the land plus the cost of
work undertaken.
$NZ000’s NotesMay 2019May 2018
Investment property under development at fair value
Opening balance108,20479,486
Transfer to property, plant and equipment
3.2(6,626)(2,801)
Capitalised expenditure89,39683,259
Capitalised interest and line fees4,9101,070
Transfer to completed investment property(105,532)(56,970)
Disposals-(57)
Change in fair value during the year – developments as at balance date 8,0154,217
Change in fair value during the year – developments completed during
the year3,093-
Closing balance101,460108,204
Completed investment property at fair value
Opening balance6 47, 3 57531,530
Transfer from investment property under development105,53256,970
Transfer to property, plant and equipment
3.2(12,101)(18,686)
Transfer to held for sale-(2,338)
Capitalised expenditure3,93014,132
Capitalised interest and line fees-1,646
Change in fair value during the year - existing villages(6,100)32,788
Change in fair value during the year – recently completed

developments
1
41,59631,315
Closing balance780,2146 47, 3 57
Total investment property881,674755,561
1
Recently completed developments refers to those developments which were being sold down during the period.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
60
Oceania Healthcare Limited | Annual Report 2019
3.1 Village Assets: Investment Property (continued)
Change in Fair Value Recognised in the Consolidated Statement of Comprehensive Income
$NZ000’s May 2019May 2018
Increase in fair value of investment property126,113144,545
Add: Transfers to property, plant and equipment during the year18,72723,825
Less: Capitalised expenditure including capitalised interest(98,236) (100,107)
Add: Disposals-57
Change in fair value recognised in
Consolidated Statement of Comprehensive Income46,60468,320
A reconciliation between the valuation and the amount recognised on the Consolidated Balance Sheet as
investment property is as follows:
$NZ000’s May 2019May 2018
Investment property under development
Valuation101,460108,204
101,460108,204
Completed Investment Property
Valuation380,229312,109
Add: Refundable occupation licence payments456,349383,323
Add: Resident’s share of resale gains6,9007, 5 6 2
Less: Management fee receivable(61,745)(52,665)
Less: Resident obligations for units not included in valuation (1,519)(2,972)
780,2146 47, 3 57
Total investment property at fair value881,674755,561
Where an incoming resident has an unconditional ORA in respect of a retirement village unit and the
corresponding outgoing resident for that same accommodation has not yet been refunded, the CBRE
Limited valuation is adjusted for the incoming resident balances only. An adjustment of $1.5m (2018: $3.0m)
is included in the above reconciliation to reflect this.
The valuation of investment property is adjusted for cashflows relating to refundable occupation licence
payments, residents' share of resale gains and management fee receivable recognised separately on the
Consolidated Balance Sheet and also reflected in the valuation model.
Why do we adjust for the liability to residents?
In the CBRE Limited valuation the fair value of investment property includes an allowance for the
amount that is payable by the Group to residents already in occupation within the property. However,
this liability to existing residents is recognised in the Group’s Consolidated Balance Sheet (referred to as
refundable occupation right agreements - see note 3.3). Accordingly, the Group adds this net liability to
residents to the CBRE Limited valuation to “gross up” the fair value of investment property and avoid
double counting the liability to residents.
Valuation Process and Key Inputs
Investment Property under Development
CBRE Limited provided valuations of development land in respect of investment property under
development as at 30 April 2019.
The Directors do not judge there to have been a material movement in the adopted land value between 30
April 2019 and 31 May 2019 and therefore no adjustment has been made to this value. Any costs incurred to
31 May 2019 on the developments are included in arriving at the 31 May 2019 fair value.

61
The Group has applied the following methodology in relation to the measurement of investment property
under development:
Practical completion not achieved
Where the development still requires substantial work such that practical completion is not going to be
achieved, and a reliable estimate of fair value cannot be made, at or close to balance date, the fair value
recognised is the fair value of the development land per the Directors’ valuation plus the cost of any work
in progress. An amount of $33.5m as at 31 May 2019 (2018: $31.1m) has been recognised in relation to these
development sites.
Where an individual development is of both investment property and freehold buildings in nature, the
fair value of land and work in progress is apportioned between investment property under development
and freehold land and buildings under development, by applying the estimated gross floor area for these
respective areas of the development based on information obtained from the project quantity surveyors at
the planning and design stages.
Practical completion achieved
Where a development is practically completed, or likely to be completed at, or close to, balance date the
investment property is measured at its completed fair value per the Directors’ valuation with an adjustment
made for any estimated costs, in accordance with the project budget, to be incurred to complete the
development, and is then transferred to completed investment property.
Completed Investment Property
The fair value of completed investment property includes the right to use asset under a finance lease
(Everil Orr per below).
As required by NZ IAS 40 Investment Property, the valuation of investment property is adjusted for cash
flows relating to refundable occupation licence payments, residents’ share of resale gains and management
fees receivable recognised separately on the Consolidated Balance Sheet and also reflected in the valuation
model.
The Group's interest in all completed investment property was valued on 30 April 2019 by CBRE Limited
(2018: 30 April 2018 by CBRE Limited), at a total of $403.2m (2018: $332.1m). The CBRE Limited valuation
has been adjusted downwards by management for the impact of any sale, resale and repurchase of
ORAs between 1 May 2019 and 31 May 2019 of $23.0m (2018: adjusted downwards by $20.0m), with a
corresponding increase in refundable occupation licence payments of $34.0m (2018: $23.9m), to arrive
at the fair value of completed investment properties at 31 May 2019.
Property Specific Assumptions
Seismic and Weather Tightness Assessments
The CBRE Limited valuation, and accordingly the fair value of investment property, incorporates an
allowance in relation to remediation to properties where seismic strength testing has been carried out in prior
years. The 30 April 2018 valuation incorporated the estimated costs to address weather tightness at certain
sites based on estimates provided in building condition reports completed by CoveKinloch New Zealand
Limited in February 2017. As at 31 May 2019 all weather tightness issues have been addressed and as such
no allowance has been made in the 30 April 2019 valuation (2018: allowance of $1.1m).
Lease of Investment Property
The Group leases one site, Everil Orr, which meets the definition of investment property. The site comprises
both apartments and common facilities provided for use by residents under the terms of an ORA. Payments
to the lessor under this lease are made as ORAs are sold. Subsequent cash flows upon the sale and resale of
the units are shared between the lessor and the Group.
Due to the variability of these payments both the right to use asset and the corresponding lease liability
were initially recognised at nil value. Rental payments are recognised as a rental expense through the
Consolidated Statement of Comprehensive Income (note 2.4). The right to use asset is held
at fair value in accordance with NZ IAS 40 Investment Property and has been valued by CBRE Limited at
30 April 2019. The valuation has been adjusted by management for the impact of any sale of ORAs between
1 May 2019 and 31 May 2019 to arrive at the fair value as at 31 May 2019 and any changes in fair value are
taken to the Consolidated Statement of Comprehensive Income.
The carrying value of the right to use asset as at 31 May 2019 in respect of this leased site is $14.0m
(2018: $7.7m). It is included within completed investment property above.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
62
Oceania Healthcare Limited | Annual Report 2019
3.1 Village Assets: Investment Property (continued)
Assets Held for Sale
Investment property assets are classified as held for sale when their carrying amount is to be recovered
principally through a sale transaction and a sale is considered highly probable. They are stated at their
fair value. Refer note 3.2 for details of assets held for sale as at 31 May 2018 but settled during the year
to 31 May 2019.
Key Accounting Estimates and Judgements
All investment properties have been determined to be Level 3 (2018: Level 3) in the fair value hierarchy as
the fair value is determined using inputs that are unobservable.
Significant Unobservable Inputs
The significant unobservable input used in the fair value measurement of the Group’s development land is
the value per m
2
assumption. Increases in the value per m
2
rate result in corresponding increases in the
total valuation.
The significant unobservable inputs used in the fair value measurement of the Group's portfolio of completed
investment property are the discount rate and property price growth rate.
The following assumptions have been used to determine fair value:
Significant InputDescription20192018
Discount rateThe pre-tax discount rate14.0% - 20.0%
(median: 15 .0%)
14.0% - 22.0%
(median: 15 .0%)
Property price
growth rate
Anticipated annual property price
growth over the cash flow period
0-4 years
0.5% - 3.0%0.0% - 3.0%
Property price
growth rate
Anticipated annual property price
growth over the cash flow period
5+ years
2.5% - 3.5%2.5% - 3.5%
Sensitivities
At 31 May 2019
Adopted
Value
Discount Rate
+0.5%
Discount Rate
-0.5%
Property
Growth Rate
+50 bp
Property
Growth Rate
-50 bp
Completed investment
property
Valuation $NZ000’s380,229
Difference $NZ000’s(14,168)15,08222,006(18,546)
Difference %(3.7%)4.0%5.8%(4.9 %)
At 31 May 2018
Adopted
Value
Discount Rate
+0.5%
Discount Rate
-0.5%
Property
Growth Rate
+50 bp
Property
Growth Rate
-50 bp
Completed investment
property
Valuation $NZ000’s312,109
Difference $NZ000’s(11,105)11,88815,605(14,981)
Difference %(3.6%)3.8%5.0%(4.8 %)

63
The stabilised occupancy period is a key driver of the CBRE Limited valuation. A significant increase/
(decrease) in the occupancy period would result in a significantly lower/ (higher) fair value measurement.
Significant InputDescription20192018
Stabilised
occupancy period
3.6yrs – 8.3yrs
(m e dian: 7.7yrs)
3.1yrs – 8.4yrs
(m e dian: 7. 2 yrs)
Current ingoing price, for subsequent resales of ORAs, is a key driver of the CBRE Limited valuation.
A significant increase/ (decrease) in the ingoing price (as driven by the property growth rates) would
result in a significantly higher/ (lower) fair value measurement.
3.2 Care Assets: Property, Plant and Equipment
Accounting Policy
Property, plant and equipment comprises owner-occupied freehold land and buildings and plant and
equipment operated by the Group for the provision of care services, care suites and land and buildings that
are to be developed into care centres in the future.
Following initial recognition at cost, completed owner occupied freehold land and buildings and land and
buildings under development are carried at fair value. Independent valuations are performed with sufficient
regularity to ensure that the carrying amount does not differ materially from the assets’ fair value at balance
date. Any depreciation at the date of valuation is deducted from the gross carrying value of the asset, and
the net amount is restated to the revalued amount of the asset. In periods where no valuation is carried out,
the asset is carried at its revalued amount plus any additions, less any impairment and less any depreciation
incurred since the date of the last valuation.
All other plant and equipment is stated at historical cost less depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
In relation to land and buildings under development, fair value is determined by the Directors having
taken into consideration the valuation conducted by CBRE Limited as an independent registered valuer and
the cost of work undertaken, whereas previously the fair value was held at CBRE Limited valuation plus the
cost of work undertaken in relation to land and buildings under development.
A property under construction is classified as land and buildings within property, plant and equipment
where the completed development will be classified as such and as investment property where the
completed development will be classified as an investment property. Fair value measurement on property
under construction is only applied if the fair value is reliably measurable. Where the fair value of property
under construction cannot be reliably determined the value is the fair value of the land plus the cost of work
undertaken. Property under construction classified as land and buildings under development is revalued
annually and is not depreciated.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably. All other repairs and maintenance are expensed to
the Consolidated Statement of Comprehensive Income during the financial year in which they are incurred.
Increases in the carrying amount arising on revaluation of land and buildings above cost are credited to the
asset revaluation reserve in other comprehensive income; increases that offset previous decreases taken
through profit or loss are recognised in profit or loss. Decreases that offset previous increases of the same
asset are charged against the asset revaluation reserve in other comprehensive income; all other decreases
are charged to profit or loss. When revalued assets are sold, or held for sale, the amounts included in the
reserve are transferred to retained earnings.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
64
Oceania Healthcare Limited | Annual Report 2019
3.2 Care Assets: Property, Plant and Equipment (continued)
Land is not depreciated. Depreciation on other assets is calculated using the straight line method to allocate
their cost, net of their residual values, over their estimated useful lives, as follows:
CategoryUseful Life RangeWeighted Average
Depreciation Rate
– Freehold buildings10 - 50 years 3%
– Chattels and leasehold improvements 2 - 50 years20%
– Motor vehicles 5 years22%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
No depreciation is charged in the year of sale for all assets other than buildings in which case depreciation is
charged to the earlier of the date of classification to held for sale or the date of sale.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the net disposal proceeds with the carrying
amount of the asset. These are included in the Consolidated Statement of Comprehensive Income.
NZ$000’sNotes
Freehold
Land and
Buildings
Under
Development
Freehold
Land
Freehold
Buildings
Chattels and
Leasehold
ImprovementsTotal
Year ended 31 May 2019
Opening net book amount44,36367,1241 7 7, 6 9714,377303,561
Additions57, 6 6 547, 4 8 57, 3 5172,505
Capitalised interest and line fees2,858---2,858
Disposals - -(3)(295)(298)
Depreciation - -(5,797)(3,638)(9,435)
Transfer to assets held for sale-----
Transfer from / (to) investment
property
3.110,666(2,194)10,255 - 18,727
Reclassification within property,
plant and equipment(61,727)(2,180)62,3691,538-
Revaluation surplus
Comprehensive income
– Existing care centres-443( 7, 4 9 8 )-(7,055)
– Care centres recently developed
/ under development--73-73
Other comprehensive income
1
– Existing care centres1,9307, 4 6 530,390-39,785
– Care centres recently developed
/ under development14,542-7, 4 4 6-21,988
Closing net book amount70,29770,662282,41719,333442,709
At 31 May 2019
Cost - - - 48,30448,304
Valuation 70,29770,662282,417-423,376
Accumulated depreciation - - -(28,971)(28,971)
Net book amount70,29770,662282,41719,333442,709
1
The revaluation noted in the Statement of Comprehensive Income differs from the above due to deferred tax, refer note 5.1.

65
NZ$000’sNotes
Freehold
Land and
Buildings
Under
Development
Freehold
Land
Freehold
Buildings
Chattels and
Leasehold
ImprovementsTotal
Year ended 31 May 2018
Opening net book amount
2 7, 8 0 672,045153,468 14,653 267,972
Additions
23,659 -6,531 3,794 33,984
Capitalised interest and line fees
251 -375 - 626
Disposals
- -(12) (6) (18)
Depreciation
- -(5,375) (3,319)(8,694)
Transfer to assets held for sale
- (5,860)(10,710) (745)( 1 7, 3 1 5 )
Transfer from / (to) investment
property
3.1 2,987 (350)18,850 - 21,487
Reclassification within property,
plant and equipment(12,087)1,61210,475 - -
Revaluation surplus
Comprehensive income
– Existing care centres-451,530-1,575
– Care centres recently developed
/ under development-(433)--(433)
Other comprehensive income
1
– Existing care centres1,74765149-1,961
– Care centres recently developed
/ under development--2,416-2,416
Closing net book amount44,363 67,124 177,697 14,377 303,561
At 31 May 2018
Cost
- - - 46,526 46,526
Valuation
44,363 6 7, 1 2 4 1 7 7, 6 9 7 - 289,184
Accumulated depreciation
- - - (32,149)(32,149)
Net book amount44,363 67,124 177,697 14,377 303,561
Land and Buildings Under Development
A valuation in respect of development land was provided by CBRE Limited as at 30 April 2019. The Directors
do not judge there to have been material movement in the land value between 30 April 2019 and 31 May
2019 and therefore no adjustment has been made to this value. Any costs incurred to 31 May 2019 on the
developments are included in arriving at the 31 May 2019 fair value.
The Group has applied the following methodology in relation to the measurement of land and buildings
under development:
Practical completion not achieved
Where the development still requires substantial work such that practical completion is not going to be
achieved, and a reliable estimate of fair value cannot be made, at or close to balance date, the fair value
recognised is the fair value of the development land per the Directors’ valuation plus the cost of any work in
progress. An amount of $13.5m as at 31 May 2019 (2018: $26.0m) has been recognised in relation to
these development sites.
Where an individual development is of both investment property and freehold buildings in nature, the
fair value of land and work in progress is apportioned between investment property under development
and freehold land and buildings under development, by applying the estimated gross floor area for these
respective areas of the development based on information obtained from the project quantity surveyors at
the planning and design stages.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
66
Oceania Healthcare Limited | Annual Report 2019
3.2 Care Assets: Property, Plant and Equipment (continued)
Practical completion achieved
Where a development is practically completed, or likely to be completed at, or close to, balance date the land
and buildings are measured at its completed fair value per the Directors’ valuation with an adjustment made
for any estimated costs, in accordance with the project budget, to be incurred to complete the development,
and is then transferred to completed land and buildings.
Completed Land and Buildings
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 date. The Group’s previous valuation was completed
on 31 May 2017 and therefore the Directors determined an independent valuation should be sought as at
30 April 2019.
This valuation was undertaken by independent registered valuer CBRE Limited (2018: No independent
valuation). The valuation of the Group’s care centres was apportioned to land, improvements, chattels and
goodwill. The fair value of land and buildings as calculated by CBRE Limited is based on the level of rent able
to be generated from the maintainable net cash flow of the site subject to average efficient management. The
fair value of the Group’s land and buildings as determined by the Directors is based on these apportionments.
However, chattels are carried at historic cost less depreciation and the amount apportioned to goodwill by
CBRE Limited is not recorded in the consolidated financial statements. The CBRE Limited valuation included
$20.6m of goodwill (2018: $48.0m) in respect of completed land and buildings.
In arriving at fair value of freehold land and buildings as at 31 May 2019, the 30 April 2019 valuation has been
adjusted, in the case of freehold land and buildings under development, for any work in progress incurred
between 1 May and 31 May 2019 (2018: 31 May 2017 valuation adjusted for amounts recognised between
1 June 2017 and 31 May 2018).
The CBRE Limited valuation used in the determination of the fair value of freehold buildings, incorporates an
allowance in relation to remediation to properties where seismic strength testing has been carried out in prior
years. Further, the CBRE Limited valuation as at 31 May 2017 incorporated the estimated costs to address
weather tightness at certain sites based on building condition reports completed by CoveKinloch New
Zealand Limited in February 2017. As at 31 May 2019 all weather tightness issues have been addressed and as
such no allowance has been made in the 30 April 2019 valuation.
Care Suites and Serviced Apartments
As discussed earlier in note 3, where services are provided to residents who occupy accommodation
under an ORA, it is the Group’s policy to look at the significance of these services in the context of the
overall revenue derived from the care suite or serviced apartment in ascertaining whether the care suite or
serviced apartment is property, plant and equipment or investment property. Care suite residents occupying
accommodation under an ORA receive a significant level of services. Hence they are included in property,
plant and equipment. Care suite land and buildings are held at fair value.
Now that care suites are an established product, the valuer has performed a review of the valuation
methodology with the outcome that the value of all cash flows associated with the ORA have been allocated
to freehold land and buildings. This has resulted in a reduction in the level of goodwill in CBRE Limited’s
apportionment relating to care suites, see note 5.2. The treatment of the cashflows under the daily care fees
remain unchanged. These continue to be apportioned to land, buildings, chattels and goodwill in the same
manner as traditional care beds.
Where a site is in its first year of operation, the Directors assess the appropriateness of the fair value
of care suites by taking into consideration the CBRE Limited valuation and also more conservative
operating assumptions.
The CBRE Limited valuation includes $0.4m of goodwill (2018: $13.6m). This goodwill is not recognised in the
consolidated financial statements.
Key Accounting Estimates and Judgements
All land and buildings have been determined to be Level 3 (2018: Level 3) in the fair value hierarchy as the fair
value is determined using inputs that are unobservable.
Critical Judgements and Estimates in Applying Accounting Policies
Classification of Care Suites
An area of significant judgement is determining the classification of those properties which are operated as
care suites. Refer note 3 for further information.

67
Valuation of Freehold Land and Buildings
The valuation approach for the freehold land and buildings as at 30 April 2019 was an income capitalisation
approach and/or discounted cash flow analysis supplemented by the direct comparison approach.
The valuation is determined by the capitalisation of net cash flow profit/earnings before interest, tax,
depreciation, amortisation and rent (“EBITDAR”) under the assumption a positive cash flow will be generated
into perpetuity. Capitalisation rates used for the 30 April 2019 valuation range from 11.0% to 17.8% with
a median value of 13.4% (31 May 2017: 10.0% to 18.5% with median value of $13.5%). The valuation was
apportioned between land, buildings, chattels / plant and equipment and goodwill to determine the fair
value of the assets.
The significant unobservable input used in the fair value measurement of the Group’s development land
is the value per m
2
assumption. Increases in the value per m
2
rate result in corresponding increases in the
total valuation.
The significant unobservable input used in the fair value measurement of the Group's portfolio of completed
land and buildings is the capitalisation rate applied to earnings. A significant decrease/ (increase) in the
capitalisation rate would result in significantly higher / (lower) fair value measurement.
Sensitivities
At 31 May 2019Adopted valueCapitalisation rate +50 bpCapitalisation rate -50 bp
Freehold land and buildings
Valuation $NZ000’s
353,079
Difference $NZ000’s(19,922)23,951
Difference %(5.6%)6.8%
At 31 May 2018Adopted valueCapitalisation rate +50 bpCapitalisation rate -50 bp
Freehold land and buildings
Valuation $NZ000’s
244,821
Difference $NZ000’s(13,465)14,689
Difference %(5.5%)6.0%
At 31 May 2019
Adopted
Value
Discount Rate
+0.5%
Discount Rate
-0.5%
Property
Growth Rate
+50 bp
Property
Growth Rate
-50 bp
Completed Care Suite
Property Sensitivity
Valuation $NZ000’s 196,602
Difference $NZ000’s( 7, 3 2 6 )7,7 9 811,379(9,589)
Difference %(3.7%)4.0%5.8%(4.9 %)
At 31 May 2018
Adopted
Value
Discount Rate
+0.5%
Discount Rate
-0.5%
Property
Growth Rate
+50 bp
Property
Growth Rate
-50 bp
Completed Care Suite
Property Sensitivity
Valuation $NZ000’s 70,052
Difference $NZ000’s(2,493)2,6683,503(3,362)
Difference %(3.6%)3.8%5.0%(4.8 %)

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
68
Oceania Healthcare Limited | Annual Report 2019
3.2 Care Assets: Property, Plant and Equipment (continued)
Assets Held for Sale
Assets are classified as held for sale when their carrying amount is to be recovered principally through a sale
transaction and a sale is considered highly probable. They are measured at the lower of carrying amount and
fair value less costs to sell, except for investment property assets held for sale which are carried at fair value.
As at 31 May 2018, five facilities met the definition of held for sale. These facilities and their respective land,
buildings, investment property and plant and equipment were reclassified for reporting purposes and held
on the Consolidated Balance Sheet at $19.7m which was the lower of their fair value less costs to sell and
their carrying amount at that time. The revaluation reserve totalling $3.7m in respect of the properties held
for sale was reclassified to retained earnings on reclassification of the properties to held for sale.
On 27 September 2018 the sale of these properties was settled and funds of $19.7m received. These funds
were applied to the bank borrowings of the Group. A net gain of $0.6m has been recognised as other income
in the Consolidated Statement of Comprehensive Income (representing a gain on the carrying value of assets
held for sale of $2.2m, offset by the derecognition of goodwill associated with these assets of $1.6m). Further,
the remaining revaluation reserve in respect of these sites (of $0.7m) has been reclassified to retained earnings.
Finance Leases
The Group leases various equipment and motor vehicles under finance lease agreements. The lease terms
are between 3 and 6 years and have a net book value as at 31 May 2019 of $5.2m (2018: $6.6m). Refer to
note 5.7 for the impact of NZ IFRS 16 Leases which is to be adopted on 1 June 2019.
Carrying Value of Assets
The carrying amount at which both land and buildings would have been carried had the assets been
measured under historical cost is as follows:
$NZ000’s
Freehold
land
Freehold
buildings
Freehold land and
buildings under
developmentTotal
Carrying amount
– Historical cost 2019
41,806182,9498,867233,622
Carrying amount
– Historical cost 201839,843152,6054,231196,679
3.3 Refundable Occupation Right Agreements
What’s an ORA?
An ORA is a contract which sets out the terms and conditions of occupation of an independent living unit
or care suite. A new resident is charged a refundable occupation licence payment in consideration for
the right to occupy one of the Group's units, apartments or care suites. On termination of the ORA the
occupation licence payment is repaid to the exiting resident.
What’s DMF?
An amount equal to a capped percentage of the occupation licence payment is charged by the Group
as a management fee for the right to use and enjoy the common areas of the village. The deferred
management fee is payable by the resident on termination of the ORA.

69
Accounting Policy
The occupation licence payment becomes payable when the ORA is unconditional and has either “cooled
off” or where the resident is in occupation. The Group has a legal right to set-off any amounts owing to the
Group by a resident against that resident's licence payment. Such amounts include deferred management
fees, recovery of village operating costs and recovery of outstanding obligations to the village.
The management fee receivable is recognised in accordance with the terms of the resident’s ORA.
The deferred management fee represents the difference between the management fees receivable under
the ORA and the portion of the management fee accrued which is recognised on a straight-line basis over
the longer of the term specified in a resident's ORA or the average expected occupancy for the relevant
accommodation i.e. 7 years for units, 5 years for apartments and 3 years for care suites (2018: 7yrs, 5yrs, 3yrs).
The management fee recognised in the Consolidated Statement of Comprehensive Income represents
income earned in line with the average expected occupancy.
Included in the obligation to residents is an estimate of the amount expected to be paid to those residents
whose ORA or unit title arrangement allows them to participate in the resale gain of the unit or apartment
they occupy.
As the refundable occupation licence payment is repayable to the resident upon termination (subject to a
new ORA being issued to an incoming resident), the fair value is equal to the face value, being the amount
that can be demanded.
$NZ000’s May 2019May 2018
Village
Refundable occupation licence payments456,349383,323
Residents’ share of resale gains6,9007, 5 6 2
Less: Management fee receivable (per contract)(85,178)(72,269)
378,071318,616
Care Suites
Refundable occupation licence payments71,8114 7,7 3 4
Accommodation rebate738825
Less: Management fee receivable (per contract)(14,139)(10,763)
58,4103 7,7 9 6
Held for Sale
Refundable occupation licence payments-2,108
Residents’ share of resale gains-20
Less: Management fee receivable (per contract)-(327)
-1,801
Total refundable occupation right agreements436,481358,213

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
70
Oceania Healthcare Limited | Annual Report 2019
3.3 Refundable Occupation Right Agreements (continued)
Reconciliation of Management Fees recognised under NZ IFRS and per ORA
$NZ000’s May 2019May 2018
Village
Management fee receivable (per contract)(85,178)(72,269)
Deferred management fee23,43319,604
Management fee receivable (per NZ IFRS)(61,745)(52,665)
Care Suites
Management fee receivable (per contract)(14,139)(10,763)
Deferred management fee3,5692,222
Management fee receivable (per NZ IFRS)(10,570)(8,541)
Held for Sale
Management fee receivable (per contract)-(327)
Deferred management fee-97
Management fee receivable (per NZ IFRS)-(230)
Expected Maturity
Although the occupation licence payments are refundable to the residents on vacating the unit / apartment
/ care suite or on termination of the licence to occupy / unit title right (subject to new licences or unit title
rights being issued), average occupancy is estimated to be 7 years for units, 5 years for apartments and 3
years for care suites based on observed tenure at the Group's villages. It is therefore not expected that the
full obligation to residents will fall due within one year.
Based on past experience the expected maturity of the net obligation to residents is as follows:
$NZ000’s May 2019May 2018
Within 12 months53,13934,030
Beyond 12 months from Consolidated Balance Sheet date383,342324,183
Total refundable occupation right agreements436,481358,213

71
4. Shareholder Equity and Funding
4.1 Shareholder Equity and Reserves
Accounting Policy
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
May 2019
Shares
May 2018
Shares
May 2019
$NZ000’s
May 2018
$NZ000’s
Share capital
Authorised, issued and fully paid up capital610,254,535 610,254,535 580,794 579,498
Total contributed equity610,254,535 610,254,535 580,794 579,498
Movements
Opening balance of ordinary shares issued610,254,535610,254,535579,498579,498
Shares issued for long term incentive plan--1,296 -
Closing balance of ordinary shares issued610,254,535610,254,535580,794579,498
All ordinary shares are authorised and rank equally with one vote attached to each fully paid ordinary share.
The shares have no par value. The Company incurred no transaction costs issuing shares during the year
(2018: nil).
During the year an amount of $1.3m was recognised in equity in respect of 2,730,772 shares which had
previously vested but for which the loan was repaid in accordance with the terms of the 2015 Long Term
Incentive Plan (“LTIP”), see note 4.3 for further details.
Recognition and Measurement
None of the above issued shares are held by the Company or its subsidiaries with the exception of shares
issued to OCA Employees Trustee Limited, a subsidiary, on behalf of Oceania employees in relation to a long
term incentive plan.
The shares issued for the LTIP are classified as Treasury Shares as the Company has a beneficial interest in
the 3,164,556 shares until the vesting conditions are met. Refer note 4.3.
Dividends
On 25 July 2019, a full year dividend of 2.6 cents per share (not imputed) was declared and will be paid on
26 August 2019. The record date for entitlement is 12 August 2019.
May 2019
cents per share
May 2019
$NZ000’s
May 2018
cents per share
May 2018
$NZ000’s
Final dividend for the prior year 2.615,867--
Interim dividend for period 2.112,8152.112,815
Total dividends declared during the period
1
28,68212,815
Dividend Reinvestment Plan
Subsequent to 31 May 2019 the Group announced a dividend reinvestment plan. Refer to note 5.9 for details.
Asset Revaluation Reserve
The asset revaluation reserve is used to record the revaluation of freehold land and buildings and land and
buildings under development.
Cash Flow Hedge Reserve
The cash flow hedge reserve is used to record gains or losses on instruments used as cash flow hedges.
The amounts are recognised in the Consolidated Statement of Comprehensive Income when the hedged
transaction affects profit or loss. Refer note 5.6 for details of new swaps taken out during the year.
1
Total dividends declared during the period differs to dividends paid per the Consolidated Statement of Changes in Equity
as a result of dividends payable on LTIP shares which remain with the Group until vesting.

Notes to the Consolidated Financial Statements (continued)
For the year ended 31 May 2019
72
Oceania Healthcare Limited | Annual Report 2019
4.2 Earnings per Share
Basic
Basic earnings per share is calculated by dividing the profit after tax of the Group by the weighted average
number of ordinary shares outstanding during the year.
$NZ000’s May 2019May 2018
Profit after tax ($’000)45,37176,972
Weighted average number of ordinary shares outstanding ('000s)604,367604,359
Basic earnings per share (cents per share)7. 512.7
Diluted
Diluted Earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. As at 31 May 2019 there were no
shares with a dilutive effect (2018: 2,730,772).
May 2019May 2018
Profit after tax ($’000)45,37176,972
Diluted weighted average number of ordinary shares outstanding ('000s)607,090605,411
Diluted earnings per share (cents per share)7. 512.7
4.3 Employee Share Based Payments
Long Term Incentive Plan
The Company operated two LTIPs for certain members of the Senior Management Team (“the Participants”)
during the year. The vesting of shares depends upon the satisfaction of performance hurdles.
Under both schemes the Group provided interest free limited recourse loans to fund the acquisition of shares
by the Participants. In substance the arrangement has been determined as an employee share option. The
shares are treated as treasury stock when issued due to the features of the scheme.
Combined, the two schemes consist of 5,895,329 fully allocated shares, which represents 0.97% of the total
shares on issue.
A reconciliation of the share rights on issue is provided below.
May 2019May 2018
Opening balance3,164,5564,985,071
Granted during the year--
Vested during the year-(1,820,515)
Forfeited during the year--
Closing balance3,164,5563,164,556
2015 Share Plan
The 2015 share plan comprised of 2,730,772 shares. As at 31 May 2018 all shares were fully vested.
A non-recourse loan representing the amount payable by employees remained with a loan repayment date
of 31 May 2019. The amount owing of $1.3m was repaid during the period and has been recognised as an
increase in share capital.
2017 Share Plan
The 3,164,556 shares in the 2017 share plan are held by OCA Employees Trustee Limited on behalf of the
Participants and vest on the business day after the consolidated financial statements for the 31 May 2020
financial year are released. The vesting criterion is the achievement of a minimum Compound Annual Growth
Rate in Underlying net profit after tax per share of 35.0% per annum over the three year period until
31 May 2020.

73
The Participants are required to be employed by the Group at the vesting dates for the shares to vest.
A valuation of the scheme as at the grant date has been performed by a qualified independent party using
a combination of the Black Scholes and Binomial Option Pricing models. The weighted average fair value of
each option within the 2017 plan was determined at $0.143. The expense is spread over the expected vesting
period of the options and is recognised within retained earnings. For the year to 31 May 2019 the expense was
$0.1m (2018: $0.1m).
Employee Share Plan
Subsequent to 31 May 2019 the Group launched an Employee Share Plan. Refer to note 5.9.
Key Estimates and Assumptions
The combined cost for the year is $0.1m (2018: $0.1m) giving a total cost to date of $0.4m (2018: $0.3m).
4.4 Borrowings
Accounting Policy
Borrowings are initially recognised at fair value, including transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognised in the Consolidated Statement of Comprehensive Income over the
period of the borrowings using the effective interest method.
Specific borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets, until such a time as the assets are substantially ready for
their intended use. Other borrowing costs are recognised in the Consolidated Statement of Comprehensive
Income in the period in which they are incurred.
$NZ000’sMay 2019May 2018
Secured
Bank loans265,487163,283
Capitalised loan costs(845)(41 3 )
Finance leases5,5175,841
Total borrowings270,159168,711
Current1,6002,064
Non current269,4041 6 7, 0 6 0
Total borrowings excluding capitalised loan costs271,004169,124
Recognition and Measurement
Bank Loans
Interest is charged using the BKBM Bill rate plus a margin and line fee. Interest rates applicable in the year to
31 May 2019 ranged from 2.94% to 3.48% (2018: 2.99% to 3.94%).
Debt Financing
On 6 July 2018 an agreement was entered into with the banking syndicate to increase total debt facility limits
from $235m to $350m as follows:
(i) General Corporate Facility limit increased to $135m (formerly $75m); and
(ii) Development Facility limit increased to $215m (formerly $160m).
In addition to the above, the maturity of borrowings was extended to 31 July 2023.