Financial results for the year ended 31 May 2020

MEDIA RELEASE 23 July 2020
Oceania Healthcare reports steady underlying earnings for
the year ended 31 May 2020 despite impacts of COVID-19

Highlights
• Underlying Earnings before Interest, Tax, Depreciation and Amortisation* in line with
prior corresponding period at $63.5m, despite Government lockdown restricting sales
of retirement village units in final quarter.
• Total Assets increased by 10.7% to $1.5bn reflecting significant development capital
expenditure and new aged care centres completed.
• Operating revenue increased by $7.0m (3.7%) due to increased aged care
occupancy, higher income from premium rooms and increased income from
retirement village operations.
• Reported net loss after tax of $13.6m due to unrealised movements in the valuation
of Investment Property, including changes to key valuation assumptions made in
response to COVID-19.
• Underlying net profit after tax* of $42.9m was $7.8m (15.4%) lower than the prior
corresponding period due to higher interest costs to fund development activity and
higher depreciation charges from completed projects.
• Operating cashflow increased 11.3% to $99.4m as a result of sale proceeds from
developments completed in the previous financial year.
• Aged care occupancy of 93.7% at aged care sites not impacted by redevelopment
activity, as compared to the prior corresponding period occupancy of 93.2%.
• Final dividend per share declared of 1.2 cents per share (not imputed) payable on 17
August 2020 with record date of 3 August 2020, representing a full year dividend of
3.5 cents per share (not imputed).

$ million Year to 31 May Growth

2020
(this year)
2019
(last year)
$m %
Operating Revenue 196.4 189.4 7.0 3.7
Reported NPAT (13.6) 45.4 (59.0) (130.0)
Underlying EBITDA* 63.5 63.8 (0.3) (0.5)
Underlying NPAT* 42.9 50.7 (7.8) (15.4)
Operating Cash Flow 99.4 89.3 10.1 11.3
Total Assets 1548.7 1399.4 149.3 10.7
Total Dividend (cents/ share) 3.5 4.7
*From continuing operations. Adjustment is included to 2019 for sites divested during 2019

Aged care and retirement village operator and developer Oceania Healthcare reported
steady Underlying Earnings before Interest, Tax Depreciation and Amortisation* of $63.5m
for the year ended 31 May 2020 despite being unable to sell retirement village units during
the final quarter of its financial year due to the Government lockdown.
Oceania Healthcare CEO Earl Gasparich advised that “while Oceania Healthcare’s reported
loss of $13.6m reflects changes to key valuation assumptions made in response to COVID-
19, it excludes the increase in value of property, plant and equipment from the care suites
completed at Awatere (Hamilton) and Green Gables (Nelson). Together, these 151 new
care suites added $21.9m to our assets this year”. In total, Oceania Healthcare’s asset base
increased by 10.7% to $1.5bn in 2020.
Mr Gasparich said “our Underlying Earnings before Interest, Tax, Depreciation and
Amortisation – that are adjusted to remove the impact of unrealised movements in the
valuation of our investment properties – were in line with the prior corresponding period
which is a good result given the challenges presented by COVID-19 and the lockdown that
our business endured over the final few months of the year.”
During Level 4 of the lockdown, retirement village operators were unable to show
prospective residents through villages or settle applications for new occupation right
agreements, which negatively impacted earnings over this time. “We had achieved good
sales in the months leading up to the lockdown and were on track to meet our targets for the
full year after a strong first half” said Mr Gasparich. “Once restrictions were lifted in Level 2
of the lockdown, we experienced a strong increase in inquiries and have taken significantly
higher applications over late May and June than we recorded last year. Many incoming
residents have reflected on their wellbeing during the lockdown and now appreciate the
benefits of living in a retirement village with a community of neighbours and an environment
that provides security and peace of mind.”
None of Oceania Healthcare’s residents living in its aged care centres or retirement villages
contracted COVID-19 and staff were also well protected throughout the pandemic. A
number of actions were implemented early on to reduce this risk, including restricting visitor
access to sites, taking declarations from staff and monitoring travel, enhancing infection
control training and ensuring clear and regular communication to staff, residents and their
families. “Our teams came up with many innovative ways to keep daily activities going and
provide service and attention to our residents. Every one of our 1,200 retirement village
residents received a daily wellbeing call from our staff, every day through the lockdown” said
Mr Gasparich. “We received a lot of positive feedback from residents and their families
regarding the way in which we managed our aged care centres and retirement villages
during the lockdown period”.
Mr Gasparich was pleased to report that Oceania Healthcare’s aged care business traded
resiliently despite the restrictions of the Government lockdown. “As an essential business,
our aged care centres continued to operate throughout the Government Alert Levels, with
new admissions taken and stable occupancy levels recorded during this period. We
maintained a strong cashflow position as we continued to receive payment from the

Government for subsidised residents every fortnight and we completed sales of care suites
during this time”.
Aged care occupancy was 93.7% over the year ended 31 May 2020, compared to 93.2%
last year, primarily due to the investment made in refurbishing Oceania Healthcare’s existing
portfolio and in particular converting older, standard aged care rooms into its premium care
suite product, which is sold under occupation right agreement. “Aged care is a needs based
product” said Mr Gasparich, “hence is a very good, stable business to be in during a time of
economic uncertainty.”
Oceania Healthcare’s development programme was slowed in mid-March and then
temporarily suspended during Level 4 of the lockdown, with construction at nine sites
recommencing in late April. The delay meant the annual build rate for the year ended 31
May 2020 was 176 retirement village units and care suites compared to 265 originally
scheduled. “Our development model and construction procurement methodology gives us
the flexibility to match our investment cash outflow with future sale proceeds from retirement
village units, meaning that we can prudently manage our cash balances and risk”, said Mr
Gasparich. Oceania Healthcare is anticipating the completion of 217 retirement village units
and care suites for the next financial year, including sites in Tauranga (The BayView) and
Christchurch (The Bellevue, formerly Windermere).
Mr Gasparich said “we continue to invest in our people at Oceania Healthcare and paid all
site based operational staff an additional $2 per hour during Level 4 of the lockdown in
recognition of the additional work they were doing in difficult conditions. We also provided
training to record numbers of our Healthcare Assistants which enabled them to achieve
qualifications and receive increases in wage rates during the year. Our employee share
scheme achieved a 70% uptake last year and will be offered to all permanent employees
again in August this year, giving staff an opportunity to own a stake in Oceania Healthcare
and share in our growth”.
Oceania Healthcare Chair Liz Coutts advised that Directors had declared a final 2020
dividend of 1.2 cents per share (not imputed) to be paid on 17 August 2020 with a record
date of 3 August. This represents a full year dividend of 3.5 cents per share (not imputed)
and a dividend payout ratio of 50% of underlying net profit after tax. A dividend reinvestment
plan for our New Zealand and Australian shareholders will apply to this dividend.
Participating shareholders will be able to reinvest their final dividend, or part thereof, with a
discount of 2.5% on the five day volume weighted average price commencing from the ex-
dividend date.
ENDS
For all media enquiries, please contact (0800) 333688
Oceania Healthcare Limited is New Zealand’s third largest residential aged care provider and sixth largest
retirement village operator. Oceania Healthcare has a total of 3,846 beds, suites and units located at 46 sites in
the North and South Islands.
This release should be read in conjunction with the Financial Statements contained within the Annual Report.
All financial results referred to in this release have been audited.

Appendix
Reconciliation of reported net profit after tax to underlying net profit after tax

$ million 2020
(this year)
2019
(last year)
Growth

Reported net profit after tax (13.6) 45.4 (59.0)
add/(less): Change in fair value of investment
property and impairment of PPE
5.6 (39.6) 45.2
add: Impairment of goodwill 0.5 8.1 (7.6)
add: Realised gains on resales 11.5 15.1 (3.6)
add: Realised development margin 34.3 29.5 4.8
less: Deferred tax (14.7) (13.6) (1.1)
add: Rental expenses in relation to right to use asset 19.2 6.2 13.0
add: Other 0.1 0.0 0.1
Underlying NPAT 42.9 51.2 (8.3)
less: Divested site earnings 0.0 (0.5) 0.5
Underlying NPAT - Continuing operations 42.9 50.7 (7.8)

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1. Underlying EBITDA and NPAT from continuing operations excludes the earnings from sites divested in FY2019 in all reportingperiods. Underlying EBITDA & NPAT includes pro forma adjustments in FY2017 to i)
adjust for the pre-IPO capital structure by applying the post IPO capital structure retrospectively for that financial year, andii) exclude transaction costs. Refer to slide 21 for a reconciliation of Underlying
Profit to Reported Net Profit After Tax.

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1. Fair value movement includes impact from right of use asset (Everil Orr village). This is a lease arrangement under which Oceania is the village operator. There is a corresponding rental expense of $19.2m
(excluded from Underlying Profit). Note Everil Orr also contributed $1.5m to DMF revenue ($0.7m in FY2019).
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1. Rental expense of $19.2m in FY2020 relates to the right of use asset at Everil Orr village. There is a corresponding credit in IP which is also removed as part of this adjustment.
2. “Other” is an aggregation of line items that are individually less than $2.0m and includes Gain on sale / Loss on sale or disposal of decommissioned assets. See note 2.1 of the FY2020 financial statements
for further detail.
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1. Based on all occupied beds across all care sites, including facilities that are ramping up / down as a result of past / future development.
2. Development margin & resale gains on care suites are included within the Village Segment for underlying profit and statutory reporting purposes as the ORAs are issued by Oceania Village Company
Limited. As these margins are in lieu of daily premium charges under the traditional model, these earnings are aggregated above to present a more complete picture for the Care segment.

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1. Includes lease liabilities of $13.0m as at FY2020 ($5.5m as at FY2019).

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1. Comprising 44 operating villages and 2 undeveloped sites. Facility numbers as at 31 May 2020.
2. Includes 325 care studios which may be initially sold with a PAC, and may subsequently be sold under an ORA.
3. Current and planned developments as at 31 May 2020.

1. Changes in capacity and pipeline now includes forecast care suite conversions in the pipeline. Totals for FY2020 reconcile to both the total existing and future post development portfolios on slide 30.

1. Calculated as the current/estimated sale or resale price of all units/care suites as determined by CBRE –note FY2020 as at 30 April 2020. The FY2018 figure has been adjusted for the divestment of
Dunblane Village.
2. Value of unsold stock represents the sales prices of units/care suites which are not under contract, as they are either newlyconstructed or have been bought back from the previous outgoing residents.
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1. Net Buybacks is the difference between the gross ORA payments made in relation to units bought back (and not resold) during the year and the gross ORA receipts from units resold during the year that
were bought back in prior financial years.

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Oceania Healthcare Limited
Results announcement

(for Equity Security issuer/Equity and Debt Security issuer)

Updated as at 17 October 2019

Results for announcement to the market
Name of issuer Oceania Healthcare Limited
Reporting Period 12 months to 31 May 2020
Previous Reporting Period 12 months to 31 May 2019
Currency NZD
Amount (000s) Percentage change
Revenue $ 196,389 4%
Total Revenue $ 196,389 4%
Underlying earnings before
interest, tax, depreciation
and amortisation from
continuing operations
$ 63,542 0%
Underlying net profit after tax
from continuing operations
$ 42,919 (15%)
Total net profit/(loss) $ (13,642) (130%)
Total Comprehensive
Income
$ 9,943 (90%)
Interim/Final Dividend
Amount per Quoted Equity
Security
1.2 cents
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date 3 August 2020
Dividend Payment Date 17 August 2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$ 0.95 $ 1.01
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to attached documents (audited consolidated
financial statements and annual report, media release and
results presentation).
Authority for this announcement
Name of person

authorised
to make this announcement
Anna Thorburn
Contact person for this
announcement
Anna Thorburn
Contact phone number +64 9 213 1022
Contact email address Anna.Thorburn@oceaniahealthcare.co.nz
Date of release through MAP

23/07/2020
Audited financial statements accompany this announcement.

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Oceania Healthcare Limited
Distribution Notice

Updated as at 18 December 2019



Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Oceania Healthcare Limited
Financial product name/description Ordinary Shares
NZX ticker code OCA
ISIN (If unknown, check on NZX
website)
NZOCAE0002S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies x
Record date 3/08/2020
Ex-Date (one business day before
the Record Date)
31/07/2020
Payment date (and allotment date for
DRP)
17/08/2020
Total monies associated with the
distribution
1

$7,416,674
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.01200000
Gross taxable amount
3
$0.01200000
Total cash distribution
4
$0.01200000
Excluded amount (applicable to listed
PIEs)
Na
Supplementary distribution amount Na

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. This should include any excluded amounts,
where applicable to listed PIEs.

Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed No imputation
If fully or partially imputed, please
state imputation rate as % applied
6

Na
Imputation tax credits per financial
product
Na
Resident Withholding Tax per
financial product
0.00396000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2.5%
Start date and end date for
determining market price for DRP
31/07/2020 6/08/2020
Date strike price to be announced (if
not available at this time)
07/08/2020

Specify source of financial products
to be issued under DRP programme
(new issue or to be bought on
market)
New issue
DRP strike price per financial product
[$tbc]
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
04/08/2020
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Anna Thorburn
Contact person for this
announcement
Anna Thorburn
Contact phone number + 64 9 213 1022
Contact email address Anna.Thorburn@oceaniahealthcare.co.nz
Date of release through MAP

23/07/2020





5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is fully imputed the imputation credits will be
28% of the gross taxable amount with remaining 5% being RWT. This does not constitute advice as to whether or not RWT needs to be withheld.
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.