Financial Results for the Year Ended 31 December 2021

Summerset Group Holdings Limited
Level 27 Majestic Centre, 100 Willis St, Wellington
PO Box 5187, Wellington 6140
Phone: 04 894 7320 | Fax: 04 894 7319
Website: www.summerset.co.nz

NZX & ASX RELEASE

24 February 2022


SUMMERSET POSTS $141.1M FULL YEAR UNDERLYING PROFIT

Retirement village operator Summerset Group Holdings Limited today announced a full year
underlying profit for the year ending 31 December 2021 of NZ$141.1 million, up 44% on FY20.
Net (IFRS) profit after tax, which includes the impact of revaluation of investment property, was
up 136% on FY20 at NZ$543.7 million.
Summerset Chief Executive Scott Scoullar said 2021 had been an extraordinarily good year for
Summerset with record demand and build rates, reflecting the focus that Summerset has had
over the last couple of years in keeping our residents safe and well cared for throughout the
prevalence of COVID-19.
“We have had a very strong year for occupation right sales, up 25% overall on FY20, and our
strongest ever year for pre-sales as well. In 2021, 72% of all deliveries were pre-sold, and as a
result both the net profit after tax and the underlying profit for Summerset are company records,”
said Mr Scoullar.
In 2022, Summerset will start construction at two new sites in Milldale (Auckland) and Blenheim
(Marlborough) and continue construction at another 15 sites around New Zealand.
Mr Scoullar said Summerset had land for another 5,313 units in New Zealand, of which 81% was
already consented, and Summerset continues to have the largest NZ listed retirement village
land bank in terms of number of units.
“Every new unit we build over the next four years has resource consent, so we are well
positioned for further growth in the New Zealand market,” Mr Scoullar said.
Summerset now owns five Australian properties, with earthworks having started at its first
Australian retirement village in Melbourne in late 2021. The first retirement units there are
expected to be ready by early 2023.
• Underlying profit for FY21 of NZ$141.1 million, up 44% on FY20
• Net profit after tax of NZ$543.7 million, up 136% on FY20
• Total assets of NZ$4.9 billion, up 26% on FY20
• 978 total sales of occupation rights, up 25% on FY20
• 619 new units under occupation right agreement (ORA) delivered, up 74% on FY20
• Land bank total of 5,406 retirement units and 1,208 care units across NZ and Australia
• Gearing ratio of 27.8%, down from 32.6% at FY20, lowest level since 2013
• Final dividend of NZ8.6 cents per share


• F

Mr Scoullar said 2021 had been a record year of construction with 619 units under ORA built to
keep up with customer demand. The company’s build rate guidance for 2021 was 550 - 600
units under ORA and even with the disruptions associated with COVID events we were still able
to exceed our market guidance. “Summerset has been the top listed retirement village builder in
New Zealand for several years in terms of number of units, but this year our record build rate
means we are one of the top residential builders in the country. We continue to focus on
providing quality, warm homes at reasonable prices for retirees,” he said.
Finding nursing staff has been an ongoing issue for the sector this year. Increases to public
sector nursing wages and immigration delays induced by COVID-19 have created a perfect
storm for nursing shortages in aged care. The New Zealand Aged Care Association’s survey-
based estimates indicate there are around 700 vacant positions for registered nurses (RNs)
across the aged care industry.
“We increased nurses' pay rates to remain competitive with the public sector again in 2021 to
attract and retain the vital nursing staff we need to care for our elderly residents. We continue to
be concerned about underfunding in the aged care sector,” said Mr Scoullar.
Shareholders will receive a final dividend of NZ8.6 cents per share, bringing the total dividend
payable for FY21 to NZ18.5 cents per share, up 42% on FY20.
ENDS


For investor relations enquiries: For media enquiries:
Will Wright Louise McDonald
Chief Financial Officer Senior Communications & Media Advisor
will.wright@summerset.co.nz louise.mcdonald@summerset.co.nz
021 490 251 021 246 3793


ABOUT SUMMERSET

• Summerset is one of the leading operators and developers of retirement villages in New
Zealand, with 37 villages completed or in development at Aotea, Avonhead, Bell Block,
Blenheim, Cambridge, Casebrook, Cranbourne North (Australia), Dunedin, Ellerslie,
Hamilton, Hastings, Havelock North, Hobsonville, Karaka, Katikati, Kenepuru, Levin,
Lower Hutt, Manukau, Napier, Nelson, New Plymouth, Palmerston North, Pāpāmoa
Beach, Paraparaumu, Prebbleton, Richmond, Rototuna, St Johns, Taupō, Te Awa,
Trentham, Waikanae, Wanganui, Warkworth, Whangārei and Wigram.

• In addition, Summerset has proposed sites at Half Moon Bay (Auckland), Milldale
(Auckland), Parnell (Auckland), Rangiora (Canterbury) and Kelvin Grove (Palmerston
North), and four properties in Victoria, Australia, bringing the total number of sites to 46.

• Summerset provides a range of living options and care services to approximately 7,000
residents.

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A nnual
Report
2021

Subsection Heading
SECTION HEADING
4

Annual Report 2021
5
Artist’s impression of Summerset Prebbleton village, Canterbury
Summerset is one of New Zealand’s best-known
and fastest-growing retirement village operators.
Our business spans the design, construction and operation of
retirement villages and care centres on both sides of the Tasman.
Our continuum of care model reflects our commitment to bring the
best of life to our residents throughout their time at Summerset.

0 2

Contents
Chair and CEO’s report06
Highlights14
Snapshot
14
2021 highlights
16
Our people and community20
Our villages28
Our commitment to sustainability36
Our performance44
Five-year summary49
Financial statements50
Governance
92
Board of Directors
106
Executive Leadership Team
108
Remuneration
110
Disclosures
121
Directory
132
Company information
135
0 3

This Annual Report of Summerset
Group Holdings Limited (Summerset)
is prepared in accordance with
New Zealand equivalents to
International Financial Reporting
Standards (NZ IFRS), the NZX Listing
Rules and Corporate Governance Code
and the Companies Act 1993.
It covers all our business operations
for the year ended 31 December 2021.
Last year, we started to align our
reporting to the International
Integrated Reporting Framework
to improve the way we communicate
and improve transparency. We will
continue to build on this approach.
ABOUT THIS REPORT
Heritage apartments, Ellerslie
Annual Report 2021
0 4

BRINGING THE BEST OF LIFE
Our strategic goals are underpinned by our desire
to bring increased wellbeing to our customers
and sta by harnessing the power of innovation
and weaving sustainability into our work.
INNOVATION SUSTAINABILITY
WELLBEING
OUR STRATEGY
OUR CUSTOMERS
We continue to improve
and enhance our oering
to residents.
OUR PEOPLE
We want to create a
great place to work, where
our people can thrive.
GROWTH
We look for expansion
opportunities in New Zealand
and Australia that deliver
competitive returns
for our shareholders.
0 5

Annual Report 2021
Chair and CEO’s
r
eport
Mark Verbiest
Chair
Scott Scoullar
Chief Executive Officer
Welcome to our annual report for the
1
2 months ended 31 December 2021.
This has been a year of significant
achievements for Summerset,
albeit one where the COVID–19
pandemic has continued to impact
the business.
Protecting our residents and staff
from COVID-19 has been a key
feature of the year. Despite this,
the appeal of retirement village
life, a strong housing market and
ongoing enhancements to our
product offering have continued
to see high numbers of new
residents moving into Summerset
communities, resulting in a strong
underlying profit.
Resident satisfaction rates remained
high at 96% for village residents
and 98% for care residents.
Summerset topped off the year
with an award for best provider
nationwide in the Aged Advisor
People’s Choice Awards, based on
over 2,000 in-depth reviews.
Our development pipeline has
continued to grow this year, allowing
us to offer the Summerset way
of life to more people in more places
in the future. Of particular note
is progress on our expansion into
Australia, with three new pieces
of land purchased and construction
started on our first Melbourne
retirement village.
This year’s report incorporates the
fuller picture of Summerset’s entire
business, which we began last
year,
with financial and sustainability
elements once again included.
Business performance
Underlying profit for the full year is
$1
41.1 million, an increase of 44% on
2020. Our IFRS net profit after tax
is $543.7 million, a new record, up
136% on 2020. Operating cash flows
of $383.4 million have increased
44% from last year. The value of
our investment property is now
$4.6 billion, up 26% on 2020.
We are pleased with the overall
performance of the business for
2021. Increases in both our IFRS net
profit after tax and our underlying
profit reflect healthy growth and
sustained demand for homes in our
villages. At the same time, our low
gearing ratio shows sound control of
debt and a strong balance sheet that
highlights the advantages of
our measured approach to growth.
The Board is pleased
to declare a final
dividend of 8.6 cents
per share, payable on
23 March 2
022.
Combined with our interim dividend
of 9.9 cents per share, shareholders
have received 1
8.5 cents per
share this year — a 30% pay-out of
underlying profit.
0 6

C H A I R A N D C E O ’ S R E P O R T
Bringing Daffodil Day to residents at Avonhead during lockdown
Our COVID-1
9 response
We continued our proactive
response to the threat of COVID-19
this year, with $4.7 million spent
on COVID-19 related costs. This
included strict entry conditions at
our villages, no new admissions
to our care facilities or within our
villages during lockdown, separated
care staff rosters, enhanced
personal protective equipment (PPE)
for our people and no sales or
construction activities at alert level 4.
Inevitably, there have been
COVID-19 related impacts beyond
our control. Border closures
and limited availability in managed
isolation and quarantine have
affected our ability to source vital
workers such as nursing and
construction staff. The construction
industry has experienced
significant delays and supply chain
pressures, but we have managed
these risks well. It is testimony
to our teams and to our relationships
that we have been able to keep
our residents safe and deliver a
record 619 new homes on schedule.
More positively, the ongoing
COVID-19 situation has proven
a catalyst for those considering
retirement living thanks to the safety,
security, companionship and
care that come with living in one
of our villages.
We welcomed many
new residents into
our communities this
year, have high
presales for new
villages, and record
waitlist numbers.
As COVID-1
9 itself evolves, so does
our response. We welcomed the
government-mandated compulsory
vaccination for all village-based
roles that came into effect in
November. We followed this with
compulsory vaccination
for all Summerset roles, including
our construction teams, and
the introduction of full vaccination
requirements for all new
independent-living residents that
same month. This means we will
be selling new homes to vaccinated
people only, helping to protect our
existing residents and staff.
In late 2
021, we became the first
retirement village and aged care
operator to introduce rapid antigen
testing for COVID-19. We will use
these tests, which provide a result
in 15 minutes, to assist in determining
the status of visitors and staff to help
protect residents in our care centres.
Villages and care
We continue to evolve the
Summerset way of life for our
residents.
We made design changes
in our villages and care centres
to ensure that residents coming
to Summerset enjoy attractive and
modern village designs as well as
amenities that meet their needs.
This year, we continued our
investment in the care side of our
business, creating new roles. We will
invest $4.5 million into additional
frontline staff and introduce digital
0 7

Annual Report 2021
innovations next year, not just to
keep our residents safer but also to
improve their experiences every day.
We
continue to be concerned about
underfunding in the wider aged
care sector. Overall public funding
for care services, including daily
care rates, is insufficient to provide
the exacting standards of service
that are rightly expected. In terms
of our own services, we will not
compromise on standards.
Furthermore, we have seen the
public sector increase wages for
their nurses, with no equivalent
increase in aged care funding for the
private sector to do the same. This
year, we’ve again invested heavily
in care wages — and continue to
pay nursing rates that are equal to
the best in the sector in order to
attract and retain the qualified and
dedicated nursing staff we need.
However, given the heavily not-for-
profit nature of aged care in New
Zealand, we hold fears about the
sustainability of the sector as a
whole. There are approximately
40,000 rest-home or hospital-level
care beds available to New Zealand’s
elderly, of which half are provided by
not-for-profit organisations. On top
of funding shortages, aged care has
had two years of additional cost to
keep residents safe from COVID-1
9.
In addition, finding nursing staff has
been an ongoing issue for the sector
this year. The increased public
sector pay rates alongside COVID-19
induced immigration delays have
created a perfect storm for nursing
shortages in aged care.
According to the New Zealand
Aged Care Association’s survey-
based estimates, there are around
700 vacant positions for registered
nurses (RNs) across the aged care
industry, plus a further 50 vacant
Clinical Nurse Manager positions for
a total of around 750. The annual
turnover rate for RNs in the sector is
now 48%, up from 33% in December
2019. In the same timeframe, the
sector vacancy rate for RNs is now
13.1%, up from 7.5%.
While Summerset and some other
listed providers are able to use their
relative financial strength to invest
in care services, wage increases
and additional COVID-19 protection,
smaller and less well resourced
care providers may struggle to
keep operating.
The sector has seen numerous
instances of care centres around
New Zealand closing, pausing
admission or reducing numbers
recently as a shortage of registered
nurses has impacted their ability to
continue to deliver nursing care.
Care will continue to
be an important part
of our continuum of
care model; offering
residents access to the
various levels of service
they need at different
stages of life.
Trentham staff with CEO Scott Scoullar
0 8

C H A I R A N D C E O ’ S R E P O R T
$141.1
m
Underlying profit
This year we started upgrading our
care offering to make it feel more
like home, with new decor and the
introduction of small cooking areas.
This is a commitment that we are
making to residents and that our
business will fund.
Our people provide an excellent
service — recording a remarkable
96% satisfaction rating among our
village residents and 9
8% among
care residents — but a review of
aged care funding is required. The
intended health reforms should be a
cue for this to happen.
Growth and development
Our design and consenting
programme is well positioned in
both New Zealand and Australia.
There have been inevitable delays
in Australia, due to lockdowns
in Melbourne, but overall we are
pleased with progress.
Five Australian sites give us the
capacity to build approximately
1,300 units, with our first
retirement village consented and
construction underway.
Consenting is also underway for
other sites as we move to create
scale and deliver growth. We have
done a great deal of research
in the market and have tailored
our offering to ensure it meets
the specific needs of Australians.
An experienced team on the
ground in Australia, with industry
knowledge and relationships will
help us take advantage of the many
opportunities the country offers.
This year, we delivered
61
9 units under
Occupation Right
Agreement (ORA)
and 52 care beds in
New Zealand.
This is the first time we have
reached this level of construction:
a record level of build achieved
in a year of record demand, and
a development margin within our
medium-term target range of 20%–
25%. While we anticipate continuing
challenges in the sector associated
with COVID-19 related impacts,
scarcity of product supply and
labour shortages due to the inability
to recruit some workers from
overseas, our mature procurement
practices and relationships will
lessen the impact.
We continue to hold the largest land
bank in the New Zealand retirement
village sector, allowing us to double
our current village population. In
2021 we received resource consent
for seven new villages in New
Zealand, although one (Parnell)
was subsequently appealed and is
due to be heard in 2022. In the
meantime, we also lodged a fast-
track application for the Half Moon
Bay village.
We have land for another 5,313
units in New Zealand, of which
81% is already consented. In the
medium term every unit scheduled
for development over the next four
years has resource consent, so
we are well positioned for further
growth in the New Zealand market.
We also benefit from a
geographically diverse portfolio
and a relatively high proportion
of broadacre single storey village
developments. These give us
the flexibility to adapt our
build rate depending on local
market conditions.
We have been the top listed
retirement village builder in New
Zealand for several years. This
year, our record build rate means
we are one of the top residential
builders in the country. As New
Zealand continues to grapple with
an ongoing residential housing
shortage, we are providing high-
quality warm homes at reasonable
prices for retirees, and we have the
capacity, the consents, and the team
to continue to do so.
Our people
This year, we continued our
investment in the care side of our
business, creating new frontline
roles. Ultimately, we can deliver as
many high-quality villages as we
do because of the diverse talents
of those who design and build
them,
and the individuals and teams
who run them. We’ve continued to
extend reimbursement to our staff
for the commitment and care they
bring to work every day.
Market-leading pay is part of that,
alongside new staff initiatives such
as a diversity and inclusion strategy.
The strategy acknowledges the
value we place on the multicultural
make-up of our working population.
We’ve also invested
in core care roles
and introduced
mobile technology to
help free up our busy
frontline staff.
0 9

Annual Report 2021
Our work in leadership development
this year, and refreshing our health
and safety practices, are further
examples of building a culture where
people feel well directed, safe, and
valued for who they are.
Acknowledging that alert level 4
places extra stress on our frontline
staff, we paid our village and care
staff a sector-leading $3 extra per
hour during that period, reflecting
the high value we place on the work
of our employees. Our full-page ad in
the major daily newspapers was our
way of publicly recognising those
who work so selflessly to meet the
needs of our residents.
We are pleased to
report that over
1,300 permanent
staff received free
Summerset shares
this year as part
of our annual staff
share scheme.
We increased the value of shares
issued to each participating staff
member from $800 to $1,000
in recognition of their hard work
and dedication.
Sustainability
Last year we also committed to our
sustainability goals with a long-term
science-aligned carbon reduction
target that
commits Summerset to a
62% reduction in carbon emissions
per square metre of building area by
2032 (from 2017 levels).
This year, we added a
NZ$700 million sustainability
linked loan, with financial incentives
based on meeting climate and social
targets. This loan was the first in
our sector and the largest of its
type in New Zealand at the time. To
retain a discount, we must continue
to invest in dementia care (through
our memory care apartments), lower
the carbon intensity of our villages
and improve
our construction waste
diversion from landfill.
The Board retains oversight of
our climate-related risks and
opportunities, with the loan being
used to support growth in
operations and development over
the next five years. This practical
example of looking after the
environment and the community
is a signal to investors that
we will continue to explore
ways to pursue our commercial
objectives responsibly.
Looking forward
Despite the persistence of
COVID-19,
the optimism we
expressed for growth in 2021 has
proven well founded. We achieved
our target build rate in New Zealand
and have started building our first
retirement village in Victoria. We
continue to add to our significant
land bank, giving us the pipeline and
the flexibility to grow in Australia
and meet ongoing demand in
New Zealand. At the same time,
strong cash recycling is keeping
our debt and our gearing at
conservative levels.
We will continue to
invest in the welfare of
our residents, through
new technology and
quality of care, and
in our staff through
competitive pay and
a culture that values
diversity and inclusion.
Subject to economic conditions, and
uncertainties around how COVID-19
will track, we look forward to
continued growth in the year ahead.
Finally, a sincere thank you, on behalf
of the Board and management,
to our investors, residents and
partners for your commitment to,
and belief in, Summerset’s goals.
And a special thank you to our
Summerset team, their families and
their support networks for another
very successful year.
Mark Verbiest
Chair
Scott Scoullar
Chief Executive Officer
1 0

C H A I R A N D C E O ’ S R E P O R T
1 1

O
N
E

T
E
A
M


DIVERSIFIED
PORTFOLIO
We beneit from a geographically
diverse portfolio that gives us
the lexibility to adapt our build
rate depending on local market
conditions. For investors, we
are primarily a growth stock,
with a clear strategy to
continue expanding in New
Zealand and Australia.
BU
ILD HIGHQUALITY
ASSETS
We pride ourselves on building
and maintaining villages that are
well designed, well located, and
that enable our residents to
interact with the community.
Our expanding geographical
presence is based on being in
growing regions with strong
potential for investment gains.
P
ROTECT THE
ENVIRONMENT
We have short, medium and
long-term sustainability plans
in place to reduce our carbon
emissions intensity over time
and to monitor our progress
and performance. Our innovative
medium-term sustainability linked
loan arrangement was a irst for
the sector in New Zealand.
Build and maintain
high-quality villages
Hire skilled sta
and help them thrive
Look after our
residents and provide
excellent care
Bringing
the best
of life



















S
T
R
O
N
G

E
N
O
U
G
H

T
O

C
A
R
E




S
T
R
I
V
E

T
O

B
E

T
H
E
B
E
S
T
HIRE SKILLED STAFF
AND HELP THEM THRIVE
We recognise our people as
our most important asset.
They underpin our ability to
deliver the best of life to our
residents. We celebrate their
diversity and are committed to
ensuring all our sta are well
remunerated, motivated and safe.
LOOK AFTER
OUR RESIDENTS
We want our residents to feel
secure and respected, and our
consistently high satisfaction
rates relect that. Our villages are
part of their local communities
and provide jobs and amenities.
DELIVERING VALUE
TO OUR STAKEHOLDERS
Buy land in desirable
places where people
want to retire
Create sustainable value
for stakeholders while
protecting the
environment
1 2

INVESTORS
RESIDENTS
AND FAMILIES
RESIDENTS
AND FAMILIES
Our residents are the many
thousands of New Zealanders
who choose to live in our
villages, and their family and
whānau. Families are important
to us for the enormous role they
play in residents’ lives and their
decision-making around
retirement living and care.
INVESTORS
Our investors range from
individuals to institutions.
As a growth-focused company,
we manage risks prudently
and look to provide our
shareholders with an
appropriate return through
our dividend policy and share
price appreciation.
COMMUNITIES
Our villages form part of local
communities and we also
provide signiicant sponsorship
for local community groups.
We help boost residential
housing supplies and provide
invaluable services, including
rest-home, hospital and
dementia care.
SUPPLIERS
We invest in national
infrastructure in the
form of our villages, and
generate work and incomes
through our supply chain,
beneiting businesses and
local economies.
EMPLOYEES
Our highly trained sta
combine expertise in clinical
care, design, construction
and operations. That
combination of knowledge
enables us to provide a
high-quality oering.
GOVERNMENT
Through our villages,
we help the government take
care of elderly New Zealanders.
In particular we oer
specialised care for those
who are frail or are living
with dementia.
COMMUNITIESEMPLOYEES
SUPPLIERS
REGULATORS
STATUTORY
SUPERVISOR
COMPETITORS
GOVERNMENT
Our
stakeholders
I
N
F
L
U
E
N
C
E

W
H
A
T

W
E

D
O
I
N
F
L
U
E
N
C
E

A
N
D

B
E
N
E
F
I
T

F
R
O
M

T
H
E

V
A
L
U
E

W
E

C
R
E
A
T
E
PUBLIC
1 3

Annual Report 2021
Snapshot
Our people
6,900+
Residents
2,100+
Staff members
96%
Village resident
satisfaction
Our care
98%
Care resident
satisfaction
1,098
Care units
(which includes beds)
in portfolio
1,208
Care units
(which includes beds)
in land bank in
New Zealand and Australia
Our portfolio
4,930
Retirement units
$4.9b
Total assets
FY2
0
$3.9b
5,406
Retirement units
in land bank in
New Zealand
and Australia
36
Villages completed or
under development
978
Sales of
Occupation Rights
10
Greenfield sites
Our performance
$543.7m
Net profit after tax
FY2
0
$230.8m
$141.1m
Underlying profit
FY20
$98.3m
$383.4m
Operating cash flow
FY20
$266.8m
1 4

Accommodation and care services
OUR PHILOSOPHY
OF CARE
Rest-home
care
Memory
care
Hospital
care
Villa
Independent
apartment
Serviced
apartment
Independent-living
units
Assisted
living
Specialised
care
1 5

May
Design and Construction teams
win Gold at New Zealand
Commercial Project Awards
Richmond main building opens
in Nelson/Tasman
January
Title sponsor of the
New Zealand National
Bowls Championship,
in Auckland
February
Heritage apartments in
Ellerslie open, completing
the village
March
HR team wins Talent
Acquisition award
Purchase of third Australian site
in Chirnside Park, Melbourne
April
First residents receive
COVID-19 vaccine
Waitaha Te Houhou Health
Scholarship awarded to
Aaliyah Te Atarau Thocolich
and Tyler Grant
June
First units delivered in
Whangārei, Northland
Stage one civils at St Johns
(Auckland) completed
Annual Report 2021
2021 highlights
1 6

September
Fifth site purchased in Australia at
Oakleigh South, Melbourne
Waikanae (Kāpiti Coast) resource
consent received
October
First New Zealand retirement
operator to acquire a sustainability
linked loan
July
Trial approved for AI-driven
pain check technology for
care residents
August
Record half-year results announced
Planning permit approved
for first Australian village in
Cranbourne North
Purchase of Kelvin Grove site
in Palmerston North and
Craigieburn, Melbourne
November
Summerset receives Aged Advisor Award
Rapid antigen tests trialled to speed
up detection of COVID-19
December
Country and smoking
ceremony performed by
the Bunurong People at
Cranbourne North
H I G H L I G H T S
1 7

Annual Report 2021
Portfolio growth
24 years of consistent growth and delivery (total units
1
in portfolio)
6,0286,028
5,3575,357
4,9444,944
4,5904,590
4,0844,084
3,5763,576
3,0353,035
2,6012,601
2,2972,297
1,9731,973
1,8011,801
1,6791,679
1,5991,599
1,3841,384
1,2581,258
1,1961,196
1,0221,022
959959
879879
755755
656656
593593
337337
247247
5,3575,357
4,9444,944
4,5904,590
4,0844,084
3,5763,576
3,0353,035
2,6012,601
2,2972,297
1,9731,973
1,8131,813
1,6791,679
1,5991,599
1,3841,384
1,2581,258
1,1961,196
1,0221,022
959959
879879
755755
656656
593593
337337
247247
247247
671671
413413
354354
506506
508508
541541
434434
304304
324324
160160
122122
8080
215215
126126
6262
174174
6363
8080
124124
9999
6363
256256
9090
New units delivered
Existing stock
'21
'20
'19
'18
'17
'16
'15
'14
'13
'12
'11
'10
'09
'08
'07
'06
'05
'04
'03
'02
'01
'00
'99
'98
01,0002,0003,0004,0005,0006,0007,000
1 Units include all retirement units and care units (including care beds)
1 8

P O R T F O L I O G R O W T H
24 years of consistent growth and delivery (total units
1
in portfolio)
6,0286,028
5,3575,357
4,9444,944
4,5904,590
4,0844,084
3,5763,576
3,0353,035
2,6012,601
2,2972,297
1,9731,973
1,8011,801
1,6791,679
1,5991,599
1,3841,384
1,2581,258
1,1961,196
1,0221,022
959959
879879
755755
656656
593593
337337
247247
5,3575,357
4,9444,944
4,5904,590
4,0844,084
3,5763,576
3,0353,035
2,6012,601
2,2972,297
1,9731,973
1,8131,813
1,6791,679
1,5991,599
1,3841,384
1,2581,258
1,1961,196
1,0221,022
959959
879879
755755
656656
593593
337337
247247
247247
671671
413413
354354
506506
508508
541541
434434
304304
324324
160160
122122
8080
215215
126126
6262
174174
6363
8080
124124
9999
6363
256256
9090
New units delivered
Existing stock
'21
'20
'19
'18
'17
'16
'15
'14
'13
'12
'11
'10
'09
'08
'07
'06
'05
'04
'03
'02
'01
'00
'99
'98
01,0002,0003,0004,0005,0006,0007,000
1 Units include all retirement units and care units (including care beds)
1 9

Annual Report 2021
2 0

Our people and
community
Our 2
9 retirement villages are vibrant
and diverse communities. Summerset is proud
to be home to over 6,900 residents and to
employ over 2,100 staff.
This year was a challenging
year for our residents as the
ongoing COVID-19
pandemic saw
many locked down for extended
periods of time. We focused
on vaccination in 2021, with many
of our communities welcoming
on-site vaccination clinics, and with
a major focus on ensuring our staff
were protected.
Protecting our villages
The protracted presence of
COVID-19 saw many activities
shift online. There was plenty to
keep residents entertained, with
guest speakers on Zoom and live-
streaming of music and quizzes
for those in our villages and the
wider community as well. We
appreciated the Student Volunteer
Army stepping in to help with
grocery and shopping support, just
as they did last year.
COVID-19 also generated a lot of
interest from those keen to find out
more about everything Summerset
offers. For families looking at
care options, we introduced our
webinars: the ‘Navigating Care’
series, explaining how we can
help; and our ‘Moving Made Easy’
series, explaining how we can
make the transition to a Summerset
village easier.
Naturally, infection prevention
and control remained a priority.
We continued with many of
the hygiene and safety measures
introduced last year, including good
physical distancing practices, use
of extensive personal protective
equipment (PPE) and cohorting of
our teams to minimise any chance
of cross-contamination.
We again made good use of iPads in
our care centres, allowing residents
to maintain connection with their
families without exposing them to
undue risk.
We also postponed sales
appointments and delayed move-
ins at our villages to retain a
‘bubble’ status.
By year end, over 96% of our village
population and 95% of our care
residents had received two doses
of the Pfizer vaccine. All of our staff
have received at least two doses of
the vaccine.
Our frontline staff were inspiring,
caring for people in these
challenging times, keeping them
informed and helping them stay
positive. The deep appreciation that
our residents have for our teams was
once again reflected in our annual
satisfaction survey results, with 96%
of those living independently and
98% of our care centre residents
recording how
satisfied they were
with Summerset. Throughout the
year we put a huge emphasis on
encouraging our frontline staff to
be vaccinated, putting us in a
good position in October when the
government mandated vaccination
for healthcare workers.
Enhancing our services and
our care
Despite COVID-19, we continued to
introduce and roll out new measures
and initiatives to improve the lives
of our residents and to ensure that
those who are more vulnerable
receive excellent care.
In Kenepuru (Wellington), we have
been trialling a digital services
platform for our independent-living
residents. Households have
been supplied a dedicated
17-inch screen or iPad to try out the
online entertainment
and information channel.
2 1

Annual Report 2021
Our memory care centres are a
specialist feature of our villages and
are tailored for those needing secure
dementia care. This year we were
delighted to be finalists for a national
award
for the design of our memory
care centres at the NZ Aged Care
Association Awards.
We appointed a specialist nurse
practitioner based in Christchurch
to support our memory care
teams nationally and to offer them
knowledge and expertise in the
growing field of dementia care.
In our care centres, we will be
introducing a new ‘household’
model in 2023, with upgraded
care rooms and changes to the
layout to encourage small groups
of residents to enjoy more of one
another's company. The upgrades
will be accompanied by a change in
staffing, with small teams dedicated
to each household of no more than
18 residents.
Seeing the same familiar staff each
day will help to form the bonds
between residents and staff that
enrich both their lives.
That said, finding nursing staff has
been an ongoing issue for the sector
this year. Increases to public sector
nursing wages and immigration
delays induced by COVID-1
9 have
created a perfect storm for nursing
shortages in aged care.
The New Zealand Aged
Care Association’s survey-based
estimates indicate there are around
700 vacant positions for registered
nurses (RNs) across the aged care
industry. The RN turnover rate in the
sector has also increased, now at
48%, up from 33% in December 2019.
Summerset increased nurses' pay
rates to keep up with the public
sector again in 2021 in order to
attract and retain the vital nursing
staff we need to care for our
elderly residents.
We also continue to be concerned
about underfunding in the aged care
sector. Overall public funding for
care services, including daily care
rates, is insufficient to provide the
exacting standards of service that
are rightly expected, and we will not
compromise on those standards.
In November we started a
modernisation programme for our
older care centres, beginning with
the 2
0-year-old care centre in
Havelock North. The multi-million
dollar upgrade will include new ‘care
suites’ with individual ensuites and
more open-plan communal resident
lounges and dining rooms.
We also rolled out our
accredited falls-prevention exercise
programme to more villages
this year and brought the
classes online for residents under
COVID-19 restrictions.
Elevating our clinical care
Important improvements are also
taking place in our clinical care
with the introduction of medication
optimisation in our Auckland
villages. Many of our residents
have been prescribed a range
of medications for multiple health
conditions. Sometimes, though,
people are on medications they
no longer need or that are no
longer the best option for them.
To address that, we’ve introduced
a new advanced pharmacist role
to work with other experts and
Casebrook nurses help our sustainability
efforts by using rechargeable batteries in pagers
2 2

O U R P E O P L E A N D C O M M U N I T Y
our prescriber network to optimise
medications for better quality of
life. By removing and/or changing
the medication residents take, we
can do our best to ensure better
outcomes for them.
Benchmarking
is another key aspect
of best practice clinical care, and
we continue to lead the sector in
this regard. Reducing the likelihood
and effects of adverse events —
such as falls and medication errors
— depends on sharing generalised
information. It is pleasing to see
most of the major participants in the
sector now sharing their data so that
we can all learn and improve.
Technology is an increasingly
important part of the way our
teams work. This year, we’ve been
looking at shifting away from manual
processes to using technology more
effectively in everyday care. In
Nelson, we’ve been trialling staff
access to our resident management
system, VCare, via a mobile app
to allow them to do their jobs
more effectively. We’ve also begun
piloting PainChek, a new app to
help recognise pain in residents who
struggle to verbalise it. The app uses
facial recognition technology and is
assisting our staff to respond more
quickly to residents.
Over the last 12 months we have
been progressively moving our
food services in-house. We expect
this to be completed at all of
our retirement villages in New
Zealand by March 2022. Our goal
is to increase our consistency
of service and to develop clear
service standards. No job losses
are expected, as current staff will
become Summerset employees
and receive our market-leading
staff benefits.
Lifting our profile
A noticeable increase in
competitiveness this year reflects
the strong growth mode that
the whole sector is experiencing.
In August we kicked off a new
marketing campaign to highlight
Summerset’s brand of active, vibrant
life across a range of media. The
campaign celebrates our belief
that age is just a number. It’s
been pleasing to see our brand
go from strength to strength
in such an environment, with
research indicating Summerset is
now the market leader nationally for
consideration and a close second for
awareness in the market.
Our marketing activities are
designed to reach older
New Zealanders in their
communities and to reinforce
the support we offer locally.
In early 2022 we signed a new
agreement to support the
New Zealand Symphony Orchestra
as a principal sponsor. We are
delighted to be partnering with
one of New Zealand’s cultural
icons, whose music gives so
much joy to communities around
the country. We continue to
support Dementia New Zealand
and this year we renewed our
sponsorship of Bowls New Zealand
for another three years. We were
pleased to support Wellington Free
Ambulance’s campaign for a new
ambulance with a $40,000 donation
after their annual street appeal was
disrupted by lockdown.
Summerset is delighted to be playing its part
in supporting the New Zealand Symphony Orchestra
2 3

Annual Report 2021
We also supported community
group Qtopia for the nationwide
vaxathon to increase vaccination
rates among Māori, Pacific peoples,
and the Rainbow and Disability
communities.
Our villages are
currently working with
150 local community
clubs, including bowls,
golf, croquet, bridge
and tennis groups. We
also work with Rotary,
Age Concern, the RSA,
Working Men’s Clubs
and Lions.
Engaging our people
Our people are an integral part of
everything that Summerset
offers
and we are immensely proud of
them and the work they do. The
extended challenges of COVID-19
during
2021, particularly in Auckland,
saw our overall staff engagement
score decrease in the second half of
the year from 7.9 to 7.7 out of 10.
The drop in our engagement score
of 0.2 was the same as the drop in
both the New Zealand and global
health sector benchmarks advised
by our survey provider. These
decreases resulted from increases
in workload and decreases in career
path growth and reward drivers
during this period.
The move in early 2021 from
the traditional annual survey to
a continuous listening approach
involving smaller groups, more
regular feedback, and deeper
engagement has been a positive
one. We are very aware of the
stresses that COVID-19 has placed
on our teams, particularly with the
long, hard alert levels 3 and 4 in
some regions during the year, and
Staff engagement
1
Percentage (%)
Peakon
5353%6767%6969%6767%7.77.77.87.87.77.7
Past survey providerPeakon
2016201720182019201920202021
0
10
20
30
40
50
60
70
0
4
8
1 Peakon was provided with the 2019 raw data to ensure year-on-year consistency,
noting different scoring scales (67% = 7.7)
Employee retention
Percentage (%)
74%74%
79%79%
82%82%
75%75%
2018
2019
2020
2021
0255075100
Workplace injury rates
3.683.68
2.522.52
2.152.15
2.732.73
4.254.25
4.534.53
8.418.41
5.625.62
4.614.61
5.055.05
6.226.22
6.216.21
Recordable injury frequency rate
Lost-time injury frequency rate
2016
2017
2018
2019
2020
2021
0
2.557.510
2 4

O U R P E O P L E A N D C O M M U N I T Y
the new survey approach provides
regular interactions with staff and
the ability to better monitor and
support mental health and wellbeing
within our organisation.
In 2
020 we started a leadership
development programme for clinical
leaders. We continued to roll out that
programme this year, broadening it
to include operational management
in our villages. We’ve also introduced
similar tailored programmes for our
construction and corporate leaders.
Attracting those with the
right skills
Border closures and immigration
restrictions have generated new
ways of undertaking recruitment
and induction. We’ve significantly
upgraded our employee onboarding
programmes and rolled these out
successfully to new employees.
That’s meant more of our staff,
including nurses and caregivers,
are able to be onboarded remotely
during periods of lockdown,
and can attend training that is
delivered digitally.
Our recruitment activities show
no signs of slowing down. We
are now thinking two years ahead
when it comes to recruiting nurses
and construction leaders for our
construction programme
and operations.
Recruitment will
continue to be a priority
going forward as
we build capacity
and grow.
In such a competitive recruitment
environment, remuneration is a key
issue. To ensure we retained market-
leading pay rates, we reviewed our
nurses’ pay rates based on
the Ministry of Health’s initial
settlement offer with the district
health boards (DHBs). We added
5
0¢ an hour to the DHB’s proposed
rates and continue to pay our nurses
rates that are equal to the best in
the sector.
Building safety into
everything we do
We remain committed to creating
safe work environments for our
people and ensuring that we are
leaders in health and safety. We have
a three-year strategy underway that,
this year, has focused on the areas of
greatest risk within our construction
and operations teams.
Within Construction, we have
extensive leadership safety training,
covering project management and
trade-specific competencies.
It is paramount our sites are safe,
and to this end we continue to use
SiteWise pre-qualification as well as
quarterly external Site Safe audits
to check our performance against
best practice. Both Operations and
Construction have robust site-based
processes and internal audits. All
these measures are in addition to the
extensive processes and practices
we use to manage the health and
safety of our residents and staff at
our villages because of COVID-19.
Expanding our commitment to
diversity and inclusion
Diversity and inclusion is something
our staff are passionate about.
This year we launched a three-year
plan to progress this important
aspect of our culture. Research
with our staff has provided
important insights on how we
can best accommodate the needs
and expectations of our diverse
multicultural workforce. Over the
medium term, we will look to build
our capabilities through a series of
programmes and initiatives.
2021 Applause Awards
Every year, our staff
nominate colleagues across 23
categories for our Applause
Awards. This year, we
received a record 1,200-plus
nominations. We brought
together all our finalists and
winners and their managers
at a gala event in Wellington
in July. The event was live-
streamed on Facebook around
the world to the families of our
many international staff.
Picture: Michelle Kitson,
Caregiver at Summerset by the
Ranges, with her 'Bringing the
Best of Life' award.
2 5

St Johns construction site
Annual Report 2021
2 6

Strong wave
of gro
wth
The New Zealand population aged 75 and over is forecast to more than triple in the next 50 years.
New Zealand population 75+
Percentage (%)
New Zealand population 75+
(left-hand axis)
% population 75+
(right-hand axis)
2002
2007
2012
2016
2021
2023
2028
2033
2038
2043
2048
2053
2058
2063
2068
2073
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
0
3
6
9
12
15
18
Per annum New Zealand population growth 75+
New Zealand population 75+
per annum growth
1997 – 2002
2002 – 2007
2007 – 2012
2012 – 2016
2016 – 2020
2020 – 2023
2023 – 2028
2028 – 2033
2033 – 2038
2038 – 2043
2043 – 2048
2048 –2053
2053 –2058
2058 –2063
2063 –2068
2068 – 2073
0
5,000
10,000
15,000
20,000
25,000
30,000
Source: Statistics New Zealand – National Population Projections
2 7

Cranbourne North
Our
villages
A sector-leading land bank and record build
rates enable us to meet increasing demand
for our high-quality villages.
Annual Report 2021
2 8

O U R V I L L A G E S
COVID-19 has had a significant
and accelerating effect on sales
in our villages over the last
year. Lockdowns and heightened
alert levels have highlighted the
positives of being part of a safe
and welcoming village community,
where residents can benefit from
our continuum of care model and
the opportunities to build new
friendships and pursue a range
of activities.
This impetus in interest and sales
drove a record level of trading that
has carried through to our
full-year result.
Record levels of interest
We had record levels of interest
in our developing villages.
The initial stage of villas at our
first Northland retirement village in
Whangārei
sold within three months
of going to market. Our Avonhead
main building, which opened in
September, is also selling well, with
our Sales team seeing ongoing
strong interest.
Families are
increasingly
involved in
these decisions, with
more and more of
our enquiries coming
from extended family
looking to secure a
home for their
loved ones.
Building on this interest, our Sales
team made thousands of calls
during the Auckland lockdown to
those who have expressed an
interest
in moving into a Summerset
village. These calls, which are part
of our ongoing relationship building,
have been very well received
and confirm a significant wave
of interest.
To further encourage
those who are looking
to downsize to
consider one of our
villages, we recently
introduced a moving
consultancy to help
with shifting into
a village.
We now have four moving
consultants
across our three busiest
markets — Hamilton, Auckland and
Christchurch — available to help
those interested in moving into one
of our villages. We are the only
retirement village provider offering
this service. It’s another example of
how we continue to innovate our
customer service to help people
make what can be challenging
choices about their retirement years.
A significant milestone in our
building programme
We have invested around
$32
0 million into our build
programme this year. Year-on-year
increases mean we remain the
largest constructor in the New
Zealand retirement village sector.
To this end, we successfully
completed our annual New Zealand
building target of 550-600 units
under Occupation Right Agreement.
That impetus and consistency
ensures we are well positioned
to meet ongoing increases in
sector demand.
Our teams were simultaneously
building on 16 sites this year,
including completing main buildings
at our Richmond and Avonhead
villages. These new buildings
incorporate our newest generation
of care suites, with individual small
kitchen spaces and more homely,
welcoming decor. The buildings also
feature memory care centres on the
ground floor, offering secure care for
those living with dementia.
Our show homes in Whangārei
opened this year and the first
residents will move in early in 2
022.
Work on our St Johns village
in Auckland has progressed
well, with bulk earthworks and
civil infrastructure done and the
basement structure 70% completed.
Work on the first three apartment
buildings will start early in 2022 and
we are on track for first deliveries
in 2024.
Although the
construction industry
has reported that more
than half of major
construction projects
have been delayed, we
have been able to meet
our delivery targets.
All our villages under construction
met their year-end delivery targets,
and several new sites were
mobilised. There are a number
of reasons for this, including
robust procurement, planning
and consenting processes, and
designing most of the villages in-
house. We also have long-standing
and reliable supply agreements that
have enabled us to secure materials
well in advance.
2 9

Annual Report 2021
At Avonhead this year, we delivered
our largest main building to date
through in-house full procurement
sourcing and management of
furniture, fittings and equipment.
This reduced costs and enabled us
to make the most of opportunities to
update the design.
The largest land bank in the sector
This year has seen much of our
large forward development pipeline
enabled through the receipt of
resource consents for villages at
Prebbleton, Rangiora, Blenheim,
Cambridge, Waikanae and Milldale.
This deliberate readiness gives
us flexibility.
At Waikanae, we were able to
consent the project using the
COVID-19
Recovery (Fast-track
Consenting) Act 2020, which is
targeted at shovel-ready projects
and intended to accelerate
employment. The new Act has strict
statutory consenting periods and
limited appeal rights, and so gives
greater certainty around the timing
for decisions. We have also applied
to use the fast-track process for our
Half Moon Bay retirement village in
east Auckland.
The existing depth of our New
Zealand land bank enables a
measured, considered acquisition
programme. This year we acquired
a new site in the suburb of Kelvin
Grove in Palmerston North, just 6km
from the city centre.
We will be starting construction
of two new villages next
year: Milldale (Auckland), and
Blenheim (Marlborough).
Construction highlights
Lightweight construction
This year we approved a lightweight
construction methodology for our
Whangārei main building. This is
particularly exciting as the building
will be more environmentally friendly,
with a reduction in embodied
carbon within the building materials.
Construction starts in 2
022.
National design team
Product quality remains a priority for
us. This year, we combined our two
in-house design teams into one national
team responsible for the design of
all New Zealand projects. Recently
we completed a contemporary design
refresh of village architecture and look
forward to this new aesthetic being
rolled out for the first time at Milldale
in Auckland.
We reach new heights
This year we purchased a self-erecting
crawler crane, the first of its kind in
New Zealand. The new crane is from
Switzerland and is ideally suited to
metropolitan builds.
We plan to use the
new crane at our Boulcott site in Lower
Hutt and we expect to see a noticeable
productivity gain. From there, we will
deploy it to work on our new lightweight
construction projects.
3 0

O U R V I L L A G E S
Artist’s impression of Summerset Cranbourne North, Melbourne
Our plans in Australia are
well advanced
Our Australian business continues
to progress with a team on the
ground.
We are excited to introduce
older Australians to our high-quality
integrated model of village living,
which includes a full range of
retirement units, from independent-
living villas, townhouses and
apartments to serviced apartments,
care and memory care beds.
Australia’s rapidly
growing elderly
population is forecast
to see those aged
75-plus increase by
140% to 4.1 million in
the next 30 years.
This year we acquired three
additional sites, meaning we now
have land at Cranbourne North,
Chirnside Park, Torquay, Craigieburn
and Oakleigh South, all in Victoria.
We secured the planning permit
for Cranbourne North in August for
the construction of 145 villas and
townhouses, 72 aged care units,
50 serviced apartments and
a one hectare public reserve.
Construction has now commenced.
Acquiring five sites in just over
two years, with planning permits
in place or being prepared, speaks
to our commitment to Australia
and the strong momentum we
have achieved in a short time. The
Australian team has grown from two
to 12 this year, as we gear up to
tailor the essence of the Summerset
offering for the Australian market.
While the New Zealand and
Australian markets have many
similarities, there are also important
differences. As our Victorian sites are
climatically different, the footprint of
our villas in Australia is larger and
there is more emphasis on outdoor
living. Our integrated offering of
independent living and care is also
relatively new in the market, with
aged care often being a stand-
alone offering.
We have confidence that there is
enormous potential here to roll out
an offering that brings to life the spirit
of Summerset living.
Each village will be tailored to
its location, with our Torquay
site adopting a coastal feel and
Chirnside Park taking its lifestyle
cues from the nearby Yarra Valley.
We will continue to acquire more
sites as part of our expansion plans.
3
new land acquisitions
in Australia in 2
021
3 1

11
Completed villages
In development
Proposed villages
4
Auckland Region
23
1
Northland
2
Waikato
2
11
Taranaki
3
Hawke’s Bay
1
3
Manawatū – Wanganui
3
Wellington Region
3
1
1
Nelson – Tasman
1
Marlborough
1
Canterbury
31
1
Otago
1
Our
villages
Bay of Plenty
Annual Report 2021
3 2

4
Victoria
1
MELBOURNE
Torquay
Oakleigh South
Chirnside Park
Craigieburn
Cranbourne North
MELBOURNE
O U R V I L L A G E S
3 3

* New sites purchased
New Zealand land bank
DesignConsentConstructionVillage openFinal stages
Hobsonville, Auckland
Rototuna, Hamilton
Casebrook, Christchurch
Avonhead, Christchurch
Richmond, Tasman
Kenepuru, Wellington
Te Awa, Napier
Pāpāmoa Beach, Tauranga
Bell Block, New Plymouth
Whangārei, Northland
St Johns, Auckland
Lower Hutt, Wellington
Cambridge, Waikato
Prebbleton, Canterbury
Waikanae, Kāpiti
Blenheim, Marlborough
Rangiora, Canterbury
Milldale, Auckland
Parnell, Auckland
Half Moon Bay, Auckland
Kelvin Grove, Palmerston North*
Annual Report 2021
Our pipeline
3 4

Construction at Summerset Mount Denby, Whangārei
Australian land bank
Design ConsentConstructionVillage openFinal stages
Cranbourne North, Melbourne
Chirnside Park, Melbourne*
Craigieburn, Melbourne*
Oakleigh South, Melbourne*
Torquay, Victoria
* New sites purchased
O U R V I L L A G E S
3 5

Annual Report 2021
3 6

Our commitment
to sustainability
Summerset was the
first New Zealand
retirement village operator to set
a science-aligned carbon reduction target.
It’s a commitment that sits well with
our business and with our residents.
We have been measuring,
managing, and reporting on our
carbon footprint since 20
17
(our base year). In fact, we were the
first carbonzero™ retirement village
operator in New Zealand. Toitū
Envirocare began independently
auditing our emissions to the
ISO14064-1 standard in 2018,
and we have been increasing
our commitment to sustainability
ever since.
This year, our decisions around
sustainability have largely been
driven by the size and scope of
our construction business. We saw
opportunities to reduce our carbon
emissions and future-proof our
villages against climate-related risks
by adopting modern technologies,
using more responsible building
materials where feasible, and
creating landscapes that are more
water efficient.
Today, we have three sustainability
targets, all of which are linked.
Together, our short, medium
and long-term targets provide
a systematic way for us to
approach sustainability.
Good gains against our
short-term targets
Our short-term target has been
in place since 2018 and will run
through to 2022. This Toitū-verified
carbonzero target aims to reduce
our emissions intensity by 5% from
our 2017 base year. This target
is intensity-based and focuses on
the key areas of energy, waste
to landfill, paper use, fertiliser and
travel. Our use of intensity-based
targets reflects the challenge of
looking to lower our emissions as we
continue to grow.
To measure this, we use two
key measures of efficiency: total
emissions per $million of revenue,
and total emissions per square
metre. So far, our emissions intensity
overall continues to drop and we
are making good progress against
both measures.
Our internal tracking, including
mandatory and voluntary emissions
from residents, shows we have
reduced our carbon emissions
intensity per $million of revenue
by 35% and our total gross carbon
emissions per square metre of build
by 22% since 2017.
22%
Reduction in carbon
emissions per square
metre since 20
17
Alongside actively working to
reduce our emissions, we offset the
emissions we can’t avoid through
purchasing carbon credits. This
year we chose to invest in Spray
Point Station, a native forest in the
Marlborough high country in New
Zealand, as well as in international
climate-related projects.
Choosing to invest in a New
Zealand native forest has allowed
us to contribute to a project
with broad environmental and
conservation benefits. The project
offers long-term carbon storage
in permanent forests. Landowners
agree to
permanently retire the land
and allow it to regenerate to native
forest. In return, they are able to
sell carbon credits from the verified
carbon sink.
At our villages, our residents are very
much behind what we are looking to
do environmentally.
3 7

Annual Report 2021
Many of them are keen recyclers,
cyclists and gardeners, with an
inspiring commitment
to do their bit
for the planet.
By year end we had confirmed
that our first public electric charge
station will be installed at our
Rototuna village in Hamilton.
Over time, we will incorporate
EV charging for residents as
we implement further charge
station options.
Summerset’s own fleet of vehicles
will gradually be replaced by electric
vehicles, starting with two cars
in 2022.
We introduced a powerful
medium-term target
This year we set medium-term
(2
026) performance targets based
on a Sustainability Linked Lending
facility. We were the first retirement
village operator in New Zealand
to link sustainability to our
funding arrangements.
The facility enables us to access
reduced lending rates by linking
our sustainability targets to our
medium-term business strategy.
There are three key deliverables
associated with this arrangement:
ongoing dementia certification and
increasing provision of dementia
beds; reduction in our emissions
intensity per square metre; and
a reduction in construction waste
going to landfill.
The goals for these targets
cover significant parts of our
business. Linking deliverables
around dementia care with
emissions intensity requires us to
take a whole-of-business approach
to achieving these targets.
The reward for doing so is ongoing
access to reduced lending rates.
Our construction waste
commitment requires us to think
about the whole building process,
from procurement through to on-
site, and for us to be more efficient
Emissions intensity – tCO
2
e per square metre
tCO
2
e
0.01560.0156
0.01490.0149
0.01330.0133
0.01220.0122
0.01220.0122
2017
2018
2019
2020
2021
00.0040.0080.016
Emissions intensity – tCO
2
e per $million of revenue
tCO
2
e
5454
4949
4242
3737
3535
2017
2018
2019
2020
2021
0204060
3 8

requires greater collaboration with
our supply chain.
We are pleased with our progress
to date.
The amount of construction
waste being diverted from landfill
continues to increase as we
implement site waste management
plans and look to minimise the
amount of waste being generated.
Our long-term goals
In late 2020, we introduced a
long-term science-aligned target
that supports our involvement
in the Climate Leaders Coalition,
Carbon Disclosure Project (CDP),
Toitū and now our Sustainability
Linked Lending arrangements. This
target means we have committed
to reducing our emissions intensity
by 62% per square metre by 2
032,
from our 2017 base year level. This
requires a year-on-year reduction in
our scope 1 and scope 2 emissions.
Energy use currently accounts for
80% of our carbon emissions, so
to achieve this target we recognise
that we will need to move to more
renewable energy sources. We have
made our first steps in this regard,
with the approval of a biomass boiler
using wood pellets as a fuel source.
This will be the alternative to gas for
water heating, cooking and laundry
at our new St Johns retirement
village in Auckland. The pellet boiler
provides a 93% emissions reduction
when compared to a gas boiler
and uses a by-product from the
timber industry that would otherwise
become waste.
We are introducing solar energy for
the first time to power our club
house buildings at our Nelson village.
This is our first step in understanding
the benefits of solar and how we
can integrate solar into both existing
villages and the design process for
new villages. We are also looking
at how we can introduce solar for
individual villas in our villages.
2021 key focus areas
Energy 80%
Travel 8%
Waste 12%
Paper 0.3%
Fertiliser 0.1%
Emissions intensity – tCO
2
e per resident
tCO
2
e
1.261.26
1.291.29
1.151.15
1.031.03
1.041.04
2017
2018
2019
2020
2021
00.511.5
3 9

Annual Report 2021
Governance
We take a multi-level approach to our sustainability governance as shown below.
Roles and responsibilities
BoardOversees climate-related issues and responsibility for sustainability
Reviews and approves our direction and monitors our progress against targets
CEOAssesses and manages climate-related risks and opportunities
Reports programme performance and progress at Board meetings
Sustainability ForumIncludes CEO and senior managers from across the business
Shapes and monitors our sustainability strategy
Key functional workstreamsCovers our operational impact areas related to the new build environment
Green TeamImplements specific actions and initiatives identified in our emissions reduction plan
Other initiatives this year
Our sustainability governance
structure has created a culture
of sustainability across the
organisation. Our long-term goals
offer
a
broader context within which
to further develop our governance,
report results and implement our
plans. We have also met expected
supply chain standards nationally
and internationally and compared
our efforts with what others are
doing globally.
As previously mentioned, we have
introduced a new lightweight
construction approach which
dramatically reduces the embodied
carbon within our buildings. This
approach sees a shift from
concrete to panelised mass timber
floors and structures. These are
manufactured off-site and then
brought to site ready to install.
This approach produces less
waste, is cost effective, is more
accurate, is safer to install, and will
increase on-site productivity. The
transition to lightweight structures
will ensure we are positioned for the
anticipated regulatory and building
code updates.
We have been a member of the
Climate Leaders Coalition since
its inception. Early in 2021, we
increased our commitment by
signing up to the 2019 Statement;
one of only 31 members to do so.
Signatories to the 2019 Statement
agree to reduce emissions in their
value chains through initiatives
ranging from energy efficiency
and energy procurement to waste,
partnerships and target setting.
After conducting a high-level
assessment of our key supply chains
across a number of risk areas,
we introduced anti-modern slavery
measures this year.
We also issued a new supplier
code of conduct that sets out the
standards we require for companies
we engage with.
Increasingly, investors are looking
for Summerset to disclose more
about what we are doing in
relation to environmental, social
and governance (ESG) activities. In
recent years, we have done well with
our third party ESG ratings, reflecting
the investment we have made in
this area.
The Carbon Disclosure Project
(CDP) is an international non-
profit organisation that helps
companies and cities disclose their
environmental impact. Last year,
we submitted a non-scored survey
for the first time. This year, we
chose to take part in the scored
survey. We were very pleased to
achieve a B scoring. Health care
organisations around the world
scored a C on average. Our CDP
Supplier Engagement Rating also
scored high with an A-.
B
Carbon
Disclosure
Project score
4 0

Climate-related disclosures
We continue to prepare to meet the requirements of the Task Force on Climate-related Financial Disclosures (TCFD).
TCFD PathwayPhase 1 2020Phase 2 2021Phase 3 2022Phase 4 2023
Governance
Describe and document
Board oversight
Sustainability policy
in place
Outline internal
management structure
Strategy
Sustainability-aligned business strategy
Scenario analysis commenced
Supply chain strategy and analysis
Risk
management
Describe risk management process
Define roles and impacts
Clarify climate-related risk issues
Incorporate into
risk framework
Metrics and
targets
Emissions intensity
targets
Science-aligned target
Report and monitor against targets
First Homestar main building
at St Johns
Our St Johns village in Auckland’s
eastern suburbs is one of our largest
builds to date. It will feature a 6-star
Homestar rated main building, one of
the first large retirement villages to
be rated to this level. The village will
include an on-site vegetable garden
and irrigation across a 3-hectare site.
The main building includes apartments,
care and memory care units, and a
two-level carpark. An environmentally
friendly wood pellet boiler will be used
to heat the building when it opens
in 2026.
Donating a house to
the community
A house on our Prebbleton site in
Canterbury was scheduled to be
demolished. Instead, we organised
for the structure to be uplifted and
transferred to a church group.
This resulting in no demolition
costs, no waste sent to landfill and a
wonderful opportunity to forge links
within the surrounding community.
O U R C O M M I T M E N T T O S U S T A I N A B I L I T Y
4 1

Mo
re responsible landscaping — we continue to reduce
our fertiliser emissions by choosing products that have a
low-carbon footprint. We’re also increasing our plantings
with lower water requirements and, in some areas, grass types.
In time, we are planning to introduce edible areas into our
communal gardens.
Across our short-term target key focus areas
we achieved the following:
ENERGY
Electricity and gas use has reduced by 17% per square metre
since our 2017 base year — we continued to fine-tune, maintain
and upgrade our equipment to ensure energy efficiencies.
Key initiatives included the use of building management
systems, improvements to insulation and LED lighting upgrades.
WASTE
Total waste volumes decreased overall when compared to the
previous year. However, a change in the carbon factor applied
to waste to landfill (per tonne) has resulted in an increase in
waste emissions this year. Our construction waste volumes to
landfill dropped by 21%, offset by a 18% increase in village waste
volumes. A highlight was the St Johns construction site,
which achieved a landfill avoidance rate of over 75%.
Operating facilities now also produce 53% less emissions from
waste to landfill per resident than we did in our 2017 base year.
TR AVEL
Travel stayed down — COVID-19 continued to affect the amount
of travel we undertake and we have made much use of Zoom for
remote meetings. Domestic, shor
t-haul and international flights
were down 2% in 2021 compared with 2020. Overall, travel
emissions have decreased by 22% since our 2017 base year.
PAPER
P
aper consumption reduced — we continued to encourage
people to do more things online. We now send invoices
by email to 58% of residents, up from 51% at the end of 2020,
and we also introduced a low-carbon paper during the year
for use across the company.
FERTILISERS
Summerset is proud to be
affiliated with:
DISCLOSURE INSIGHT ACTION
We invested in Spray Point Station’s native
forest regeneration site Marlborough.
Photo credit: Project owner
Annual Report 2021
4 2

Turning donated materials into
face masks — with all profits going
to charity — is the good work of
Shirley, a resident at Casebrook.
At our villages, our residents are very much
behind what we do environmentally.
Many of them are keen recyclers, cyclists and
gardeners, with an inspiring commitment to doing
their bit for the planet.
O U R C O M M I T M E N T T O S U S T A I N A B I L I T Y
4 3

Artist’s impression of St Johns, Auckland.
Annual Report 2021
4 4

Our
performance
Summerset has maintained strong
profitability
and balance sheet resilience throughout
2021 and is well positioned for future
sustained growth.
Financial performance overview
Underlying
profit for the year
ended 31 December 2021 increased
by 4
4% on the prior year to
$141.1 million (2020: $98.3 million),
driven principally by increased sales
of new and existing units.
This reflects the growing demand
for the Summerset lifestyle, and in
response we increased our delivery
of units for sale to 619 (2020: 356).
Sale volumes of new units have
increased by 34% and the robust
residential property market is also
contributing to strong
sale prices. Realised gains
on investment property are
$138.4 million (2020: $94.3 million).
Revenue for the year grew 19% to
$205.3 million (2020: $172.4 million),
reflecting the opening of two
main buildings, village revenue
growth from deliveries within our
developing villages and continued
high rates of care occupancy in
existing villages.
Profits from operations have
reduced due to wages and costs
increasing at a rate higher than
the increases to DHB funding, in
particular nurses’ wages, council
rates, insurance, and power. We
have also had ongoing costs relating
to COVID-19, and the additional
costs associated with opening two
new care centres.
Underlying profit is a non-GAAP
measure. A detailed explanation is
included in Note 2 to the Financial
Statements (see page 59). In
general terms, underlying profit
removes the fair value movement of
investment property and reinstates
the realised gains associated with
our resales and the development
margin associated with our new
sales. Underlying profit is used to
determine the dividend pay-out
to shareholders.
COVID-19 impact
Sales significantly reduced during
the two-week national level 4
lockdown in August/September, but
returned to pre-lockdown numbers
by mid-September. We continued
to sell and settle units in levels 3
and 2, with safeguards in place to
ensure we protect our residents.
As we have only two villages with
new units delivering in Auckland, the
longer lockdown in levels 4 and 3 in
this area did not have a significant
impact on overall sales.
We incurred $4.7 million of
one-off
operational costs due to COVID-19 in
2021. This was predominantly from
additional staff wages, pandemic kits
and personal protective equipment.
Village and care staff were paid
an additional $3 per hour during
level 4 lockdown, stand-down leave
was given as a precaution for staff
either because of their health or
that of their close contacts, and
we introduced security at our sites
during level 4. These costs are some
of the direct costs related to our
response, but we also incurred a
number of indirect costs. These
include the cost of paying the
construction staff during lockdown
while they were unable to be on-
site, and investment in marketing
and sales post-lockdown to support
our sales teams to ensure our sales
were successful. We will continue
to plan and prepare to ensure we
are well positioned to deal with any
future outbreaks and adapt to living
with COVID-19.
Long-term growth
A key component of underlying
profit is the realised development
margin on new sales, which
was $7
8.5 million in 2021
(2020: $48.2 million). The increase
was due to the net effect of an
4 5

Annual Report 2021
overall increase in the number of
new settlements
and improvements
in apartment margins following price
growth in the Auckland market,
offset against construction cost
inflation and programme delays
caused by COVID-19 supply
chain disruption and the
lockdowns imposed by the
New Zealand government.
The development margin was 23.1%,
up from 19.6% in the previous
year. Summerset’s medium-term
expectation of development
margins is in the 20–25% range. This
will continue to be an area of focus
for the Board and management.
Good margins reflect the
advantage of having strong
in-house capabilities for each
stage of village development
including land acquisition, planning,
consenting, design, procurement
and construction management.
We continue to work to manage
cost inflation across our build
pipeline through leveraging from
scale, standardisation and mature
procurement planning. This is
particularly important given the
construction industry is at a critical
point of supply and demand,
with supply constrained by the
ongoing impacts of COVID-19, and
strong demand with residential
and commercial consenting at
record levels.
Summerset continues
to maintain the
largest land bank for
a retirement village
operator in New
Zealand and acquired
four new sites in
New Zealand and
Australia in 2021.
Underlying profit
$ million
37.837.8
56.656.6
81.781.7
98.698.6
106.2106.2
98.398.3
141.1141.1
FY15
FY16
FY1
7
FY18
FY19
FY20
FY21
04080120160
Land bank over time (units)
2,9752,975
3,2373,237
4,4504,450
6,2066,206
6,1716,171
6,6146,614
FY16
FY17
FY1
8
FY19
FY20
FY21
02,5005,0007,500
4 6

O U R P E R F O R M A N C E
These are Kelvin Grove (Palmerston
North), Chirnside Park (Melbourne),
Oakleigh South (Melbourne) and
Craigieburn (Melbourne). This brings
our total land bank to 6,61
4 units.
Summary of sales
and developments
Summerset had a record sales year,
with 978 unit sales of Occupation
Rights (2020: 785), 540 of them
new unit sales and 438 resales.
Average gross proceeds per new
sale settlement of $630,000 were
up from $607,000 in 2020 due
to the price increases from the
strong housing market partially
offset by a different mix of unit types
and regions. Realised resale gain
increased by 30% to $59.9 million
in 2021. Average gross proceeds per
resale settlement were $528,000, up
14% from 2020.
Key development milestones
included the beginning of
construction of three new villages,
Prebbleton (Canterbury), Waikanae
(Kāpiti) and Cambridge (Waikato),
and completion of two new
village centres, Richmond (Tasman)
and Avonhead (Christchurch). For
developing villages still under
construction, new unit sales were
particularly strong at Rototuna
(Hamilton), Ellerslie (Auckland),
Richmond (Tasman), Te Awa
(Napier), Kenepuru (Wellington),
and Casebrook and Avonhead
(Christchurch). We had our
strongest year of presales ever
in 2021, with 72% of all villa
deliveries pre-sold.
In Australia we have continued
to acquire land and work on the
consenting of sites, and have begun
earthworks for our first village,
at Cranbourne North (Melbourne).
We expect the first deliveries in
early 2023.
Net profit after tax
Summerset recorded a net profit
after tax of $543.7 million for the
year ended 31 December 2021, up
from $230.8 million in 2020. This
increase is largely due to the price
increases from the strong housing
market partially offset by a different
mix of unit types and regions.
Fair value movement in 2021 of
$537.5 million reflects the delivery of
545 retirement units in the financial
year, the completion of two main
buildings and an uplift in land bank
values and unit pricing reflecting the
residential house price increases in
the last twelve months.
Business growth and expenses
Summerset derives its revenue from
selling units (deferred management
fees) and providing village and
care services. The company’s
revenue increased as a result
of higher volumes, reflective
of the continuing growth and
scale of our operations. Deferred
management fees on Summerset’s
units sold under Occupation Right
Agreement were $
75.2 million in
2021 (2020: $60.8 million). The
growth reflects the increase in the
number, occupancy and value of
Summerset’s portfolio of units.
At 31 December 2021, Summerset’s
total unit portfolio reached 6,028
(2020: 5,357) and at year end
there were only 262 new units
and 80 resale units available for
sale. Occupancy in our mature
care centres was 97% (2020: 96%),
which is above the industry average
of 90%.
Total expenses increased in 2021
by 20% to $190.6 million (2020:
$158.3 million), largely due to the
initial costs of new care centres
opening in line with Summerset's
ongoing business growth, and
increased care wage costs at a
rate above the level of funding
increases from DHBs. We have
also had increased uncontrollable
expenditure items such as rates
and power, and spent more on
additional sales and marketing for
future developments.
Net cash from operating activities
Summerset’s net cash from
operating activities was
$383.4 million for the year, up 44%
from 2020 (2020: $266.8 million).
This was principally driven by gross
receipts from new Occupation
Right Agreement sales, amounting
to $337.6 million, up from
$237.0 million in 2020.
Summerset is a growth company
and reinvests operating cash flows
back into the business to finance
future growth. In 2021 Summerset
invested $425.0 million, primarily
in new and existing retirement
villages and care centres (2020:
$318.8 million).
Investment activities are principally
the purchase of land and the
development and refurbishment of
new and existing retirement villages
and care centres.
Assets rose to $4.9 billion
Total assets rose 26% to $4.9 billion
at 31 December 2
021 (2020:
$3.9 billion), mainly due to growth
in the size and value of Summerset’s
investment property, which reached
$4.6 billion (2020: $3.6 billion).
At balance date, Summerset also
had property, plant and equipment
valued at $277.7 million (2020:
$181.1 million), most of this
being care centres (these are
operated to provide services and
are therefore not included as
investment property). An increased
embedded value of $1.4 billion
(2020: $883.6 million) demonstrates
future cash that can be generated
when units are resold.
Interest-bearing debt of
$747.0 million was 15% of
total assets at year end
(2020: $687.1 million). Summerset
refinanced approximately
$700.0 million of syndicated bank
4 7

Annual Report 2021
debt in August 2021, which included
$315.0 million of existing debt due to
mature on 31 March 2022. This has
a mix of four and
five-year tenures
and brings total lending facilities to
approximately $1.5 billion. Most of
the growth in bank debt facilities is
in Australia to fund the development
of our land bank in Victoria.
The year-end debt at face value
is made up of $374.9 million of
bank borrowings and $375.0 million
of retail bonds. Summerset also
has residents' loans of $1.8 billion
(2020: $1.5 billion). This is in
the form of licences paid by
residents under Occupation Right
Agreements. These are repayable
when residents vacate units and
the associated Occupation Rights
are resold.
2021 dividends
Summerset will pay a final dividend
of 8.6 cents per share (cps) on
23 March 2022, making a full
pay-out for the 2
021 year of
18.5 cps (2020: 13.0 cps). Board
policy remains for shareholder
distributions in the range of 30–50%
of each year’s underlying profit. The
2021 distribution of $42.5 million
represents 30% of underlying profit
($141.1 million), which is consistent
with the last six years. Summerset
continues to offer shareholders
a dividend reinvestment option,
including a 2% discount to market
share price.
Expense breakdown
Employee expenses
Employee
expenses 55%
Property-related
expenses 10%
Repairs and
maintenance
expenses 4%
Depreciation,
amortisation
and impairments 6%
Other operating
expenses 25%
Revenue breakdown
Revenue breakdown
Deferred
management fees 37%
Care fees and
village services 61%
Other 2%
Dividends (cents per share)
1.41.4
1.91.9
2.62.6
3.93.9
6.06.0
6.46.4
6.06.0
9.99.9
2.52.5
3.33.3
2.12.1
3.43.4
5.15.1
7.17.1
7.27.2
7.77.7
7.07.0
8.68.6
Final
Interim
FY12
FY13
FY1
4
FY15
FY16
FY17
FY18
FY19
FY20
FY21
05101520
4 8

Five-year
summary
Key operational and
financial statistics for
the five-year period up to and including
FY21 are shown below.
Results highlights – operational
UnitFY21FY20FY19FY18FY17
FY20 to
FY21 %
Change
New sales of Occupation RightsNo.54040432933938234%
Resales of Occupation RightsNo.43838132330130015%
Total sales of Occupation RightsNo.97878565264068225%
Development margin%23.1%19.6%27.9%33.2%27.3%18%
New Occupation Right
units delivered
No.61935635445445074%
Retirement units in portfolioNo.4,9304,3854,0763,7223,26812%
Care units in portfolioNo.1,09897286886881613%
Results highlights – financial
UnitFY21FY20FY19FY18FY17
FY20 to
FY21 %
Change
Net operating cash flow
$m
383.4266.8237.9217.8207.744%
Total assets
$m
4,923.73,893.23,337.92,766.42,232.826%
Net assets
$m
1,924.51,354.81,131.9978.8785.842%
Underlying profit
$m
141.198.3106.298.681.744%
Profit before income tax (IFRS)
$m
543.6221.7173.6216.2240.2145%
Profit for the period (IFRS)
$m
543.7230.8175.3214.5239.9136%
Dividend per share
cents
18.513.014.113.211.042%
Basic earnings per share
cents
238.2102.378.697.1109.8133%
4 9

Financial
statements
Annual Report 2021
5 0

Income Statement
For the year ended 31 December 2021
20212020
NOTE$000$000
Care fees and village services4126,884111,619
Deferred management fees475,17460,752
Other income43,29151
Total revenue205,349172,422
Reversal of impairment of property, plant and equipment
9
3,431-
Fair value movement of investment property11537,497221,142
Total income746,277393,564
Operating expenses5(179,045)(146,805)
Depreciation and amortisation expense9, 10(11,555)(8,097)
Impairment of property, plant and equipment9-(3,431)
Total expenses
(190,600)
(158,333)
Operating profit before financing costs555,677235,231
Finance costs6(12,040)(13,496)
Profit before income tax543,637221,735
Income tax credit7279,041
Profit for the period543,664230,776
Basic earnings per share (cents)20238.18102.30
Diluted earnings per share (cents)20236.86101.23
The accompanying notes form part of these financial statements.
5 1

Annual Report 2021
Statement of Comprehensive Income
For the year ended 31 December 2021
20212020
NOTE$000$000
Profit for the period543,664230,776
Fair value gain/(loss) on interest rate swaps1424,443
(7,075)
Tax on items of other comprehensive income7(6,881)
1,981
Gain/(loss) on translation of foreign currency operations222(491)
Other comprehensive income that will be reclassified subsequently to
profit or loss for the period net of tax
17,784(5,585)
Net revaluation of property, plant and equipment935,78312,712
Tax on items of other comprehensive income
7(10,019)
(3,145)
Other comprehensive income which will not be reclassified
subsequently to profit or loss for the period net of tax
25,7649,567
Total comprehensive income for the period
587,212234,758
The accompanying notes form part of these financial statements.
5 2

Statement of Changes in Equity
For the year ended 31 December 2021
SHARE
CAPITAL
$000
HEDGING
RESERVE
$000
REVALUATION
RESERVE
$000
RETAINED
EARNINGS
$000
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$000
TOTAL
EQUITY
$000
As at 1 January 2020284,074(15,173)24,941837,7712711,131,884
Profit for the period---230,776-230,776
Other comprehensive
income for the period
-(5,094)9,567-(491)3,982
Total comprehensive
income for the period
-(5,094)9,567230,776(491)234,758
Dividends paid---(31,222)-(31,222)
Shares issued16,395----16,395
Employee share plan
option cost
3,030----3,030
As at 31 December 2020303,499(20,267)34,5081,037,325(220)1,354,845
As at 1 January 2021303,499(20,267)34,5081,037,325(220)1,354,845
Profit for the period---543,664-543,664
Other comprehensive
income for the period
-17,56225,764-22243,548
Total comprehensive
income for the period
-17,56225,764543,664222587,212
Dividends paid---(38,943)-(38,943)
Shares issued20,602----20,602
Employee share plan
option cost
798----798
As at 31 December 2021324,899(2,705)60,2721,542,04621,924,514
The accompanying notes form part of these financial statements.
5 3

Annual Report 2021
Statement of Financial Position
As at 31 December 2021
20212020
NOTE$000$000
Assets
Cash and cash equivalents8,42215,817
Trade and other receivables844,99233,395
Interest rate swaps145,72318,412
Property, plant and equipment9277,715181,098
Intangible assets106,6645,709
Investment property114,580,1963,638,760
Total assets4,923,7123,893,191
Liabilities
Trade and other payables12202,257158,610
Employee benefits1321,58015,438
Revenue received in advance4141,393114,737
Interest rate swaps147,24328,150
Residents’ loans151,847,1361,520,298
Interest-bearing loans and borrowings17747,015687,099
Lease liability1612,63811,184
Deferred tax liability719,9362,830
Total liabilities2,999,1982,538,346
Net assets1,924,5141,354,845
Equity
Share capital19324,899303,499
Reserves1957,56914,021
Retained earnings1,542,0461,037,325
Total equity attributable to shareholders1,924,5141,354,845
The accompanying notes form part of these financial statements.
Authorised for issue on 23 February 2022 on behalf of the Board
Mark Verbiest
Director and Chair of
the Board
James Ogden
Director and Chair of the
Audit Committee
5 4

Statement of Cash Flows
For the year ended 31 December 2021
20212020
$000$000
Cash flows from operating activities
Receipts from residents for care fees and village services127,045110,719
Interest received5551
Payments to suppliers and employees(171,804)(142,205)
Receipts for residents’ loans - new occupation right agreements337,566237,000
Net receipts for residents' loans - resales of occupation right agreements90,54361,282
Net cash flow from operating activities383,405266,847
Cash flows to investing activities
Sale of investment property15,2011,154
Payments for investment property:
- land(87,164)(44,386)
- construction of retirement units and village facilities(285,234)(229,205)
- refurbishment of retirement units and village facilities(8,164)(8,244)
Payments for property, plant and equipment:
- construction of care centres(33,084)(16,651)
- refurbishment of care centres(380)(1,107)
- other(7,980)(7,760)
Payments for intangible assets(1,725)(668)
Capitalised interest paid(16,472)(11,910)
Net cash flow to investing activities(425,002)(318,777)
Cash flows from financing activities
Net proceeds from/(repayments of) bank borrowings67,145(71,542)
Proceeds from issue of retail bonds-150,000
Proceeds from issue of shares4,9434,201
Interest paid on borrowings(12,407)(15,436)
Payments in relation to lease liabilities(1,767)(1,549)
Dividends paid(23,712)(19,389)
Net cash flow from financing activities34,20246,285
Net decrease in cash and cash equivalents(7,395)(5,645)
Cash and cash equivalents at beginning of period15,81721,462
Cash and cash equivalents at end of period8,42215,817
The accompanying notes form part of these financial statements.
5 5

Annual Report 2021
Reconciliation of Operating Results and Operating Cash Flows
For the year ended 31 December 2021
20212020
$000$000
Profit for the period543,664230,776
Adjustments for:
Depreciation and amortisation expense11,5558,097
Reversal of impairment / impairment of property, plant and equipment(3,431)3,431
Fair value movement of investment property(537,497)(221,142)
Net finance costs paid12,04013,496
Gain on sale of investment property(3,236)-
Income tax credit(27)(9,041)
Deferred management fee amortisation(75,174)(60,752)
Employee share plan option cost1,4591,576
Other non-cash items43190
(593,880)(264,245)
Movements in working capital
Decrease/(increase) in trade and other receivables(1,619)1,632
Increase in employee benefits6,1424,004
Increase/(decrease) in trade and other payables(141)903
Increase in residents’ loans net of non-cash amortisation429,239293,777
433,621300,316
Net cash flow from operating activities383,405266,847
The accompanying notes form part of these financial statements.
5 6

Notes to the
financial
statements
For the year ended 31 December 2
021
1. Summary of accounting policies
Reporting entity
The consolidated financial statements
presented for the year ended 31 December 2021 are for Summerset Group Holdings Limited
(the "Company") and its subsidiaries (collectively referred to as the "Group"). The Group develops, owns and operates integrated
retirement villages.
Summerset Group Holdings Limited is registered in New Zealand under the Companies Act 1993 and is a FMC Reporting Entity for
the purposes of the Financial Markets Conduct Act 2013. The reporting entity is listed on the New Zealand Stock Exchange (NZX),
being the Company’s primary exchange, and is listed on the Australian Securities Exchange (ASX) as a foreign exempt listing.
Basis of preparation
These consolidated financial statements have been prepared in accordance with generally accepted accounting practice in New
Zealand (NZ GAAP), except for Note 2: Non-GAAP underlying profit, which is presented in addition to NZ GAAP compliant information.
They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) as appropriate for profit-oriented
entities. These financial statements also comply with International Financial Reporting Standards and the requirements of the
Financial Markets Conduct Act 2013.
These financial statements are expressed in New Zealand dollars, which is the Company’s and New Zealand subsidiaries' functional
currency. The functional currency of the Company's Australian subsidiaries is Australian dollars. All financial information has been
rounded to the nearest thousand, unless otherwise stated.
All amounts are shown exclusive of goods and services tax (GST), except for trade receivables and trade payables, and except where
the amount of GST incurred is not recoverable. When this occurs, GST is recognised as part of the cost of the asset or as an expense
as applicable.
The measurement basis adopted in the preparation of these financial statements is historical cost, with the exception of the items
noted below.
•Interest rate swaps – Note 14
•Investment property – Note 11
•Land and buildings – Note 9
•Retail bonds – Note 17
Basis of consolidation
Subsidiaries are fully consolidated at the date on which the Group obtains control, and continue to be consolidated until the date
when
such
control ceases. The financial statements are prepared for the same reporting period as the Company, using consistent
accounting policies. All intra-group transactions and balances arising within the Group are eliminated in full.
All subsidiary companies are 100% owned and incorporated in New Zealand or Australia with a balance date of 31 December.
5 7

Annual Report 2021
Notes to the financial statements (continued)
The New Zealand subsidiaries are:
Summer Land Developments Limited
Summerset Care Limited
Summerset Holdings Limited
Summerset LTI Trustee Limited
Summerset Management Group Limited
Summerset Properties Limited
Summerset Retention Trustee Limited
Summerset Villages (Aotea) Limited
Summerset Villages (Avonhead) Limited
Summerset Villages (Bell Block) Limited
Summerset Villages (Blenheim) Limited
Summerset Villages (Cambridge) Limited
Summerset Villages (Casebrook) Limited
Summerset Villages (Dunedin) Limited
Summerset Villages (Ellerslie) Limited
Summerset Villages (Half Moon Bay) Limited
Summerset Villages (Hamilton) Limited
Summerset Villages (Hastings) Limited
Summerset Villages (Havelock North) Limited
Summerset Villages (Hobsonville) Limited
Summerset Villages (Karaka) Limited
Summerset Villages (Katikati) Limited
Summerset Villages (Kelvin Grove) Limited
Summerset Villages (Kenepuru) Limited
Summerset Villages (Levin) Limited
Summerset Villages (Lower Hutt) Limited
Summerset Villages (Manukau) Limited
Summerset Villages (Milldale) Limited
Summerset Villages (Napier) Limited
Summerset Villages (Nelson) Limited
Summerset Villages (New Plymouth) Limited
Summerset Villages (Number 42) Limited
Summerset Villages (Number 4
4) Limited
Summerset Villages (Number 45) Limited
Summerset Villages (Palmerston North) Limited
Summerset Villages (Papamoa) Limited
Summerset Villages (Paraparaumu) Limited
Summerset Villages (Parnell) Limited
Summerset Villages (Prebbleton) Limited
Summerset Villages (Rangiora) Limited
Summerset Villages (Richmond) Limited
Summerset Villages (Rototuna) Limited
Summerset Villages (St Johns) Limited
Summerset Villages (Taupo) Limited
Summerset Villages (Te Awa) Limited
Summerset Villages (Trentham) Limited
Summerset Villages (Waikanae) Limited
Summerset Villages (Wanganui) Limited
Summerset Villages (Warkworth) Limited
Summerset Villages (Whangarei) Limited
Summerset Villages (Wigram) Limited
Welhom Developments Limited
The Australian subsidiaries are:
Summerset Care (Australia) Pty Limited
Summerset Holdings (Australia) Pty Limited
Summerset Management Group (Australia) Pty Limited
Summerset Villages (Cranbourne North) Pty Limited
Summerset Villages (Number 2) Pty Limited
Summerset Villages (Number 3) Pty Limited
Summerset Villages (Number 4) Pty Limited
Summerset Villages (Number 5) Pty Limited
Summerset Villages (Number 6) Pty Limited
Summerset Villages (Number 7
) Pty Limited
Summerset Villages (Number 8) Pty Limited
Summerset Villages (Number 9) Pty Limited
Summerset Villages (Number 10) Pty Limited
Summerset Villages (Number 11) Pty Limited
Summerset Villages (Number 12) Pty Limited
Summerset Villages (Number 13) Pty Limited
Summerset Villages (Number 14) Pty Limited
Summerset Villages (Number 15) Pty Limited
Summerset Villages (Number 16) Pty Limited
Summerset Villages (Number 17) Pty Limited
Summerset Villages (Number 18) Pty Limited
Summerset Villages (Number 19) Pty Limited
Summerset Villages (Number 20) Pty Limited
Summerset Villages (Number 21) Pty Limited
Welhom Developments (Australia) Pty Limited
Accounting policies
Accounting policies that summarise the measurement basis used and that are relevant to the understanding of the financial
statements are provided throughout the accompanying notes.
The accounting policies adopted have been applied consistently throughout the periods presented in these financial statements.
The Group adopted all mandatory new and amended NZ IFRS Standards and Interpretations and there has been no material impact
on the Group's financial statements.
Implementation of the April 2021 IFRIC agenda decision in relation to software-as-a-service arrangements
During the period, the Group reviewed its accounting policy in relation to upfront configuration and customisation costs incurred
in implementing software-as-a-service arrangements in response to the IFRIC agenda decision clarifying its interpretation of how
current accounting standards apply to these types of arrangements. The Group has completed its evaluation of the impact of this
interpretation on its financial statements and determined this to not be material.
5 8

There are no other new standards, amendments or interpretations that have been issued and are not yet effective, that are expected
to have a significant impact on the Group.
Critical accounting estimates and judgements
In preparing the financial statements,
management has made estimates and assumptions about the future that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during
the period. Actual results may differ from those estimates.
Estimates and assumptions are regularly evaluated and are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances. The principal areas of judgement in preparing these
financial statements are described in the following notes:
•Deferred management fees – Note 4
•Deferred taxation – Note 7
•Interest rate swaps – Note 14
•Leases – Note 16
•Revenue in advance – Note 4
•Valuation of investment property – Note 11
•Valuation of property, plant and equipment – Note 9
•Valuation of retail bonds – Note 17
Comparative information
No comparatives have been restated in the current year.
2. Non-GAAP underlying profit
20212020
Ref$000$000
Profit for the period543,664230,776
Less fair value movement of investment propertya)(537,497)(221,142)
Less reversal of impairment of assets / add impairment of assetsb)(3,431)3,431
Add realised gain on resalesc)59,90546,072
Add realised development margind)78,52548,208
Less deferred tax credite)(27)(9,041)
Underlying profit141,13998,304
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying profit does not have a standardised
meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities.
The Directors have provided an underlying profit measure in addition to IFRS profit to assist readers in determining the realised
and unrealised components of fair value movement of investment property, impairment and tax expense in the Group’s income
statement. The measure is used internally in conjunction with other measures to monitor performance and make investment
decisions. Underlying profit is a measure that the Group uses consistently across reporting periods. Underlying profit is used to
determine the dividend pay-out to shareholders.
This statement presented is for the Group, prepared in accordance with the Basis of preparation: underlying profit described below.
Basis of preparation: underlying profit
Underlying profit is determined by taking profit for the period determined under NZ IFRS, adjusted for the impact of the following:
•Less fair
value movement of investment property: reversal of investment property valuation changes recorded in NZ IFRS profit
for the period, which comprise both realised and non-realised valuation movements. This is reversed and replaced with realised
development margin and realised resale gains during the period, effectively removing the unrealised component of the fair value
movement of investment property.
•Less reversal of impairment of assets / add impairment of assets: remove the impact of non-cash care centre valuation changes
recorded in NZ IFRS profit for the period. Care centres are valued annually, with fair value gains flowing through to the revaluation
reserve unless the gain offsets a previous impairment to fair value that was recorded in NZ IFRS profit. Where there is any
5 9

Annual Report 2021
Notes to the financial statements (continued)
impairment of a care centre, or reversal of a previous impairment that impacts NZ IFRS profit for the period, this is eliminated for
the purposes of determining underlying profit.
•Add realised gain on resales: add the realised gains across all resales of occupation rights during the period. The realised gain
for
each
resale is determined to be the difference between the licence price for the previous occupation right for a unit and the
occupation right resold for that same unit during the period. Realised resale gains are a measure of the cash generated from
increases in selling prices of occupation rights to incoming residents, less cash amounts repaid to vacated residents for the
repayment of the price of their refundable occupation right purchased in an earlier period, with the recognition point being the
cash settlement. Realised resale gains exclude deferred management fees and refurbishment costs.
•Add realised development margin: add realised development margin across all new sales of occupation rights during the period,
with the recognition point being the cash settlement. Realised development margin is the margin earned on the first time sale
of an occupation right following the development of a unit. The margin for each new sale is determined to be the licence price
for the occupation right, less the cost of developing that unit.
Components of the cost of developing units include directly attributable construction costs and a proportionate share of the
following costs:
•Infrastructure costs
•Land cost on the basis of the purchase price of the land
•Interest during the build period
•Head office costs directly related to the construction of units
All costs above include non-recoverable GST.
Development margin excludes the costs of developing common areas within the retirement village (including a share of the
proportionate costs listed above). This is because these areas are assets that support the sale of occupation rights for not just
the new sale but for all subsequent resales. It also excludes the care centre development costs which relate to assets which are
not subject to the sale of occupation rights.
Where costs are apportioned across more than one asset, the apportionment methodology is determined by considering the
nature of the cost.
Where a unit not previously sold under occupation right agreement is converted to a unit sold under occupation right agreement,
realised development margin recognised on the new sale of these units includes the following costs:
•Conversion costs
•A fair value apportionment reflecting the value of the property immediately prior to conversion
•Add/(less) deferred tax expense/(credit): reversal of the impact of deferred taxation.
Underlying profit does not include any adjustments for abnormal items or fair value movements on financial instruments that are
included in NZ IFRS profit for the period.
3. Segment reporting
The Group operates in one industry, being the provision of integrated retirement villages. The services provided across all of the
Group’s villages are similar, as are the type of customer and the regulatory environment. The chief operating decision makers, the
Chief Executive Officer and the Board of Directors, review the operating results of the Group as a whole on a regular basis. On
this basis,
the Group
has one reportable segment, and the Group results are the same as the results of the reportable segment. All
resource allocation decisions across the Group are made to optimise the consolidated Group’s result.
The Group continues to proceed with its expansion into Australia with five sites purchased to date. These sites are either currently
being, or will be, developed into retirement villages. To date the expenditure incurred and assets acquired in Australia have been
immaterial to the Group and so are not reported as a separate operating segment as at 31 December 2021.
The Ministry of Health is a significant customer of the Group, as the Group derives care fee revenue in respect of eligible government
subsidised aged care residents. Fees earned from the Ministry of Health for the year ended 31 December 2021 amounted to
$34.6 million (2020: $31.5 million). No other customers individually contribute a significant proportion of the Group revenue. All
revenue is earned in New Zealand.
6 0

4. Revenue
Care fees and village services income are recognised over the period in which the service is rendered.
Deferred management fees, which entitle residents to accommodation and the use of the community facilities within the village,
are recognised over the period of service, being the greater of the expected period of tenure or the contractual right to revenue.
The expected periods of tenure, being based on historical Group averages, are estimated to be seven to eight years for villas,
five years for apartments, three years for serviced apartments and memory care apartments and two years for care suites. Where
the deferred management fees over the contractual period exceed the amortisation of the deferred management fee based on
estimated tenure, the amount is recorded as a liability (revenue in advance). At balance date, the majority of the revenue in advance
balance is non-current. Deferred management fees are recognised on a gross basis in the receipts for residents’ loans section of the
statement of cash flows.
Other income comprises:
20212020
$000$000
Interest received5551
Other income3,236-
Total other income3,29151
Interest income is recognised in the income statement as it accrues, using the effective interest method. Other income is recognised
in the income statement in the period in which the performance obligations have been satisfied.
5. Operating expenses
20212020
$000$000
Employee expenses105,62190,691
Property-related expenses18,54316,187
Repairs and maintenance expenses7,1185,824
Other operating expenses47,76334,103
Total operating expenses179,045146,805
Employee expenses include post-employment benefits (KiwiSaver/Superannuation) of $
2.9 million (
2020: $2.3 million).
Included in the above operating expenses is $4.7 million of additional costs incurred as a result of COVID-19 (2020: $9.2 million).
Other operating expenses include:
20212020
$000$000
Remuneration paid to auditors:
- Audit and other assurance related services review of
financial statements
254205
- Other assurance services - sustainability linked lending audit27-
- Executive remuneration review market analysis provided to the Group135-
- Tax policy advice provided to the Group5-
Donations5734
Rent
1
291158
1 Short term and low value amounts exempt under NZ IFRS 16 - Leases and outgoings.
6 1

Annual Report 2021
Notes to the financial statements (continued)
6. Finance costs
20212020
$000$000
Interest on bank loans, retail bonds and related fees26,23422,156
Interest on interest rate swaps2,1483,193
Interest on lease liability496466
Capitalised finance costs(16,841)(12,323)
Fair value movement of interest rate swaps through profit or loss16,243(5,795)
Fair value movement of retail bonds designated as fair value through profit
or loss
(16,240)5,782
Other-17
Finance costs12,04013,496
Interest expense comprises interest payable on borrowings and is calculated using the effective interest rate method.
Borrowing costs are capitalised for property, plant and equipment (Note 9), and investment property (Note 11), if they are directly
attributable
to the construction or production of a qualifying asset. Capitalisation of borrowing costs commences when the activities
to prepare the asset commence and expenditure and borrowing costs are incurred. Capitalisation of borrowing costs continues until
the assets are substantially ready for their intended use.
Borrowing costs of $16.8 million (2020: $12.3 million) have been capitalised during the period of construction in the current year. The
weighted average capitalisation rate on funds borrowed representing the borrowing costs of the loans used to finance projects is
3.00% per annum (2020: 3.15% per annum).
Two of the Group's retail bonds are designated in a fair value hedging relationship. Details of fair value hedging are included in Note 14.
7. Income tax
Tax expense comprises current and deferred tax, calculated using the tax rate enacted or substantively enacted at balance date and
any adjustment to tax payable in respect of prior years. Tax expense is recognised in the income statement, except when it relates to
items recognised
directly in the statement of comprehensive income, in which case the tax expense is recognised in the statement
of comprehensive income.
Deferred tax expense is recognised in respect of temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the amounts used for taxation purposes. A deferred tax asset is recognised only to the extent that it is
probable it will be utilised. Temporary differences for the initial recognition of assets or liabilities that affect neither accounting nor
taxable profit, unless they arise from business combination, are not provided for.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group
intends to settle its current tax assets and liabilities on a net basis.
(a) Income tax recognised in the income statement
20212020
$000$000
Tax expense comprises:
Deferred tax relating to the origination and reversal of temporary differences(27)(9,041)
Total tax credit reported in income statement(27)(9,041)
6 2

The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the
financial statements as follows:
20212020
$000%$000%
Profit before income tax543,637221,735
Income tax using the corporate tax rate152,21828.0%62,08628.0%
Capitalised interest(4,722)(0.9%)(3,450)(1.6%)
Other non-deductible expenses1970.0%2080.1%
Non-assessable investment property revaluations(150,339)(27.7%)(62,501)(28.2%)
Reinstatement of tax depreciation on non-
residential buildings
-0.0%(6,008)(2.7%)
Transfer of investment property to property, plant
and equipment
2,4720.5%-0.0%
Other1000.0%1800.1%
Prior period adjustments470.0%4440.2%
Total income tax credit(27)(0.0%)(9,041)(4.1%)
Total Group tax losses available amounted to $341.1 million at 31 December 2021 ($95.8 million tax effected) (
2020: $250.5 million
($70.3 million tax effected)). There are no unrecognised tax losses for the Group at 31 December 2021 (2020: nil).
(b) Amounts charged or credited to other comprehensive income
20212020
$000$000
Tax expense comprises:
Net gain on revaluation of land and buildings10,0193,145
Fair value movement of interest rate swaps6,881(1,981)
Total tax expense reported in statement of comprehensive income16,9001,164
(c) Amounts charged or credited directly to equity
20212020
$000$000
Tax expense comprises:
Deferred tax relating to employee share option plans233(1,812)
Total tax expense/(credit) reported directly in equity233(1,812)
(d) Imputation credit account
There were no imputation credits received or paid during the year and the balance at 31 December 2021 is nil (2020: nil).
6 3

Annual Report 2021
Notes to the financial statements (continued)
(e) Deferred tax
Movement in the deferred tax balance comprises:
BALANCE
1 JAN 2
021
$000
RECOGNISED
IN INCOME
$000
RECOGNISED
DIRECTLY IN
EQUITY
$000
RECOGNISED
IN OCI*
$000
BALANCE
3
1 DEC 2021
$000
Property, plant and equipment14,1714,706-10,01928,896
Investment property35,2317,433--42,664
Revenue in advance35,15914,306--49,465
Interest rate swaps(7,882)--6,881(1,001)
Income tax losses not yet utilised(70,309)(25,470)--(95,779)
Other items(3,540)(1,002)233-(4,309)
Net deferred tax liability2,830(27)23316,90019,936
BALANCE
1 JAN 2
020
$000
RECOGNISED
IN INCOME
$000
RECOGNISED
DIRECTLY IN
EQUITY
$000
RECOGNISED
IN OCI*
$000
BALANCE
3
1 DEC 2020
$000
Property, plant and equipment17,607(6,581)-3,14514,171
Investment property29,1886,043--35,231
Revenue in advance23,47911,680--35,159
Interest rate swaps(5,901)--(1,981)(7,882)
Income tax losses not yet utilised(51,631)(18,678)--(70,309)
Other items(223)(1,505)(1,812)-(3,540)
Net deferred tax liability12,519(9,041)(1,812)1,1642,830
* Other comprehensive income
8. Trade and other receivables
Trade and other receivables are stated at amortised cost less impairment losses. Trade receivables are not significant on an individual
basis
and are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate, less an
allowance for doubtful debts. The allowance for doubtful debts is made up of expected credit losses based on assessment of trade
receivables debt at the individual level for impairment, plus an additional allowance on the remaining balance for potential credit
losses not yet identified. The expected credit losses allowance requirement on the remaining balance has been set at 2%.
20212020
$000$000
Trade receivables
3,5413,357
Allowance for doubtful debts
(109)(237)
Net trade receivables
3,4323,120
Prepayments
13,34912,215
Accrued income
1,0571,092
Sundry debtors
27,15416,968
Total trade and other receivables44,99233,395
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9. Property, plant and equipment
Property, plant and equipment includes care centres (including memory care apartments and care suites), both complete and under
development, and corporate assets held.
All property, plant and equipment is initially recorded at cost. Cost includes expenditure that is directly attributable to the acquisition
of the asset. The cost of self-constructed care centres includes directly attributable construction costs and other costs necessary to
bring the care centres to working condition for their intended use. These other costs include professional fees and consents, interest
during
the build period and head office costs directly related to the construction of the care centres. Where costs are apportioned
across more than one asset, the apportionment methodology is determined by considering the nature of the cost.
Subsequent to initial recognition, completed care centres are carried at a revalued amount, which is the fair value at the date of
the revaluation less any subsequent accumulated depreciation and accumulated impairment losses, if any, since the assets were
last revalued. Other corporate assets are subsequently measured at cost less accumulated depreciation and impairment losses, if
any. Where an item of plant and equipment is disposed of, the gain or loss recognised in the income statement is calculated as the
difference between the net sales price and the carrying amount of the asset.
Fair value is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged
between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction as at the valuation date.
Any revaluation surplus is recognised in other comprehensive income unless it reverses a revaluation decrease of the same asset
previously recognised in the income statement. Any revaluation deficit is recognised in the income statement unless it directly offsets
a previous surplus in the same asset in other comprehensive income. Any accumulated depreciation at revaluation date is eliminated
against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal,
any revaluation reserve relating to the particular asset being sold is transferred to retained earnings. Independent valuations are
performed with sufficient regularity to ensure that the carrying amount does not differ materially from the asset’s fair value at the
balance sheet date.
Note 6 provides details on capitalised borrowing costs.
Depreciation is charged to the income statement on a straight-line (SL) basis over the estimated useful life of each item of property,
plant and equipment, with the exception of land, which is not depreciated. Depreciation methods, useful lives and residual values
are reassessed at each reporting date.
Major depreciation rates are as follows:
•Buildings (
2% to 14% SL)•Furniture and fittings (7% to 20% SL)
•Motor vehicles (
8% to 10% SL)•Plant and equipment (7% to 50% SL)
Also included in the buildings category is building fit-out.
Right of use assets are depreciated on a SL basis over the term of their lease. Refer to Note 1
6.
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