Oceania Refinance and Market Update

OCEANIA HEALTHCARE

Level 26, HSBC Tower, 188 Quay Street, Auckland CBD, Auckland 1010
PO Box 9507, Newmarket, Auckland 1149, New Zealand
P +64 9 361 0350 F + 64 9 361 0351
www.oceaniahealthcare.co.nz




Oceania Refinance and Market Update

05 March 2025

Oceania Healthcare Limited (NZX: OCA) today announced a market update outlining progress made
during 2H25 across key strategic areas of the business.

Banking syndicate reaffirms support
A refinance of debt facilities was successfully completed on 4 March 2025. Good demand from existing
and new lenders resulted in the addition of a new syndicate member, optimal pricing, extended tenor
and no change to covenants. The Group has no requirement for additional capital or bank borrowings.

Improving sales momentum
Sales are improving with new sales volumes +29% and resales volumes +6% in 3Q25 vs 3Q24, with
pleasing sell down progress at The Helier (Auckland), now 34% occupied, and the newly completed
apartment developments at Waterford (Auckland) and Awatere (Hamilton).
Oceania’s CEO Suzanne Dvorak noted “We have a clear priority to continue to increase our sales
cadence. Unsold stock remains our biggest lever to reduce debt.”

Developments
A more flexible short term development pipeline provides a focus on reducing gearing while balancing
continued growth.

Portfolio transition
Development completions and continued divestment of non core sites are transitioning the portfolio
toward a >50% retirement portfolio mix, currently 54% care / 46% ILU, with a focus on premium
offerings and amenities.

Business Optimisation
A centralised dedicated team is being established to support the delivery of long term savings
expected to be in the range of $10-15m annually, reflecting the right sizing of support functions in light
of divestments. The $5m annualised cost right sizing program signaled at HY25 has been completed
with benefits to be realised from FY26.
With changes to the certification pathways for overseas nurses recently introduced, a decision has
been made to close the Wesley Institute of Nursing Education, with March 2025 being the final intake.

For more fulsome detail on each of these strategic areas of the business please refer to the attached
‘Refinance and Market Update’ document.

OCEANIA HEALTHCARE







This announcement has been authorised for release by Oceania's board of directors.

ENDS.

For all enquiries, please contact email investor@oceaniahealthcare.co.nz or phone 0800 333 688.

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Believe
in better.
REFINANCE AND MARKET UPDATE
5 MARCH 2025

1
FY25 market update
Progress across multiple key strategic areas of thebusiness has been made during 2H25.
1. Expected by 31 March 2025.
Improving sales momentum
Sales are improving with new sales volumes +29% and resales volumes +6% in 3Q25 vs 3Q24. Pleasing sell down progress at The Helier (Auckland), now 34%
occupied
1
, alongsidenewly completed apartment developments at Waterford (Auckland) and Awatere (Hamilton). Unsold stock of $361m remains our biggest lever to
reduce debt. Recently appointed both aChief Sales and Marketing Officer, andGeneral Manager Sales.
Banking syndicate reaffirms support
Refinance of debt facilities successfully completed on 4 March 2025 at existing levels of $500m effective 1 May 2025. Good demand from existing and new lenders
resulted in the addition ofa new syndicate member, optimal pricing, extended tenor and no change to covenants. Prudent headroom in place to executecurrent and
future development plans. Interest Cover Ratio (ICR) as at 30 September 2024 was4.2x compared to the 2.0x ICR covenant. No requirement for additional capital or
bank borrowings.
Business optimisation
Team established to support the delivery of long term savings expected tobe in the range of $10-15m annually reflecting theright sizing of support functionsin light
of divestments. The $5m annualised cost right sizing program signalled at HY25 has been completed with benefits to be realised from FY26.
With changes tothe certification pathways for overseas nursesrecently introduced, a decision has been made to close the Wesley Institute of Nursing Education,
with March 2025 being the finalintake. The contribution to underlying EBITDA of the training school was $6.8m in FY24 and circa $5.0m in respect of FY25.
Developments
A more flexible short term development pipeline provides a focus on reducing gearing while balancing continued growth. The Meadowbank dementia building (40
care suites) and the Franklin development (31 villas and community centre)are currently under construction and on track for completion in in May 2025and January
2026respectively.
Portfolio transition accelerated by targeted divestments
Development completions andcontinued divestment of non core sites are transitioning the portfolio toward a >50% retirement portfolio mix, currently 54% care / 46%
ILU, with a focus on premium offerings and amenities.Divestments to date have been sold at book value (in aggregate). Further divestments are in the later stages of
due diligence and on track to settle during HY26.

2
Banking syndicate reaffirms support
Successfully refinanced debt facilities. Sufficient headroom remains to execute the current development pipeline and provide forfuture growth.
1. Oceania accounting policy, finance costs on working capital facility and in relation to completed developments recognised in NPAT. Finance costs in relation to developments under construction capitalised to WIP. Total finance costs in relation to completed developments circa $10m
for FY25.
•New syndicated facility agreement negotiated and effective from 1 May 2025
•Completed refinance of bank facilitiesat existing levels of $500m with the
current syndicate remaining supportive of the business and its ongoing
growth
•Good demand from both existing and new lenders, withoptimal pricing,
reflecting a strong market appetite for the business
•Expanded syndicate with BNZ now joining the three incumbent lenders
•No waivers or amendments to banking covenants sought, with confidence in
current and ongoing compliance
•No new requirements forsyndicate approval of land purchases or
development commencement
•Secured estimated line and margin fee cost savings of c.$1.0m per annum
1
•Split and increase in tenor introduced with the use of 3 and 5 year facilities
separating the maturity profile of term and retail debt
•At HY25, gearing was 37.5%with prudent net debt headroom (including
cash) of $96m. Gearing reduction tobelow 35% is being targeted through
the ongoing focus on unsold stockand a reduced intensity development
pipeline
Increased tenure out to FY31 separates the maturity profile of debt
Pro-forma debt tenor profile has improved (NZDm)
Post re-financePre re-finance
Syndicated banking facility
Facility size$500m
Headroom (30 Sep 24)$96m
Banking partnersANZ, BNZ, ASB, ICBC
Margin and line fee decrease(0.3%)
125
100
50
450
FY26FY27FY28FY29FY30FY31
125
100
500
FY26FY27FY28FY29FY30FY31

3
Improving sales momentum
Oceania has made good progress on the sell down of unsold stock, with sales momentum improving through 3Q25.
1. Discontinued an additional fee charged at the Helier which was the equivalent of 1% of annual DMF per annum over the first 5 years of the residents tenure.
•Active management ofour $361m of unsold stock (as at 30 Sep 24)remains our biggest
lever to reduce debt
•A robust review of portfolio pricing has been completed, with the net impact of actioned
upward and downward price revisions being neutral. Further sales effortswere
supported by the appointment of a dedicated Chief Sales and Marketing Officer and GM
Sales during FY25
•Third quarter (October, November, December) new sales and resales volumes
increased 29%, and 6% respectively, vs 3Q24. Applications received duringJanuary
and February 2025were 28% higher than the prior comparative period
•Apartments and care suites at The Helier continue to sell down with 6 ILU and care
suite sales settled and on track to settle in Q4. Enquires have been bolstered through
recent sales and marketing efforts, including a review of the proposition
1
•The 5 applications currently in place with expected settlement in Q1 FY26 will bring total
occupancy to 39%
•Acceptance of the care suite modelremains strong in both urban and regional locations,
with c.50% of the 55 care suites at Redwood in Blenheim now sold, 10 months since
opening
•Revenue recognition policy remains consistent with prior years. ORA sales are only
recognised when a contract becomes unconditional and has either cooled off or the
resident has occupied the unit
•No changes have been made to DMF structures. Since 2012 the Oceania ORA
structure has included a 30% DMF
Sales volumes1Q252Q253Q25YTD Dec
New sales395040129
Resales779274243
Total116142114372
1Q242Q243Q24YTD Dec
New sales305331114
Resales6810470242
Total98157101356
Q1Q2Q3YTD Dec
ILU and CS sales volumes
38
44
64
53
5151
153
148
60
72
93
89
50
63
203
224
98
116
157
142
101
114
356
372
FY24FY25FY24FY25FY24FY25FY24FY25
ILU
CS

4
Developments
Meadowbank and Franklin developments provide a less capital intensive, more flexible development pipeline allowing afocus on reduction of debt
while maintaining flexibility for growth.
1. The Directors adopt the CBRE Limited valuation with any Directors adjustments at annual reporting dates being downwards only.
•Increased levels of occupation, applications and enquiries at the latest stage
developments atAwatere andWaterford Villages, completed inOctober 2024
andJanuary 2025, with 8 residents in occupation as at 28 February 2025 and 5
applications together representing 11% of new stock at these sites
•Developing villages for locals, in highly desirable areas with aging local
demographics. Meadowbank dementia centre (40 care suites) and Franklin Stage
One(31 villas and community centre) are under construction and on track to be
delivered in FY2026
•Village manager at Franklin appointed and commences 28 April 2025
•A more flexible short term development pipeline allowsa focus on reducing gearing.
The in house development team works with trusted partners to ensure the effective
cost management in delivering the development pipeline
•Current brownfield landbank largely includes development land adjoining current
sites, providing optionality to further develop as market conditions improve. This
pipeline is focused on adding lower density developments to mature sites.
Gracelands, Hawkes Bay, was complemented in FY25 with the purchase of 2.6
hectares of adjoining land
•The property portfolio is independently valued by CBRE Limited and partially peer
reviewed by Colliers Limited at each reporting date
1

5
Portfolio transition accelerated by targeted divestments
Divestment strategy continues to progress,with further settlements expected throughoutHY26.
•Seven strategic divestments over the last 18 months have settled across
FY24 and FY25, achieving total proceeds of $45m
•Divestment proceeds in aggregate have been at an amount which is
equal to independent valuations
•Further divestments are in the later stages of due diligence and on track
to settle during HY26, with negotiations well progressed
•Divestments support the rebalancing of Oceania’s portfolio and debt
reduction
•Future development and divestments will reduce the standard care bed
component of Oceania’s portfolio as we move towarda >50% ILU
portfolio mix
Victoria Place, TokoroaMiddlepark, Christchurch
Holmwood, Christchurch
Takanini, Auckland
FY25 settlements

6
Business optimisation
Successfully completed$5m cost right sizing program.Currently identifying longer term savings reflecting the right sized support functions post the
divestment programmes and optimisation of the business
•Completed cost right sizing program announced in HY25, achieving $5m in
annual cost savings with benefits expected to be realised in FY26
•Identifying long term savings via a 12 month optimisation programme,
targeting $10-15min annual savings
•Further right sizinginitiatives will bemanaged by a central dedicated team
•Establishmentof new digital platforms will assist in streamlining business
operations
•The Wesley Institute of Nursing Education (Wesley) has provided training to
nurses in New Zealand for several years. With changesto certification
pathways for overseas nurses recently introduced, a decision has been
made to close the training institute with March 2025 thefinal intake. Wesley
contributed $6.8m to underlying EBITDA in FY24 and will contribute circa
$5.1m to underlying EBITDA in FY25

7
Important notice and disclaimer
This presentation has been prepared solely by Oceania Healthcare Limited
("Oceania"). You must read this disclaimer before making any use of this
presentation and the accompanying material or any information contained in it
("Document").
The presentation includes non-GAAP financial measures for development
sales and resales which assist the reader with understanding the volumes of
units settled during the relevant periods and the impact that development
sales and resales during the relevant periods had on occupancy as at the end
of such periods.
The addition of totals and subtotal within tables and percentage movements
may differ due to rounding.
The information set out in this Document is an update only and does not
contain all information necessary to make an investment decision.
The information contained in this Document has been prepared in good faith
by Oceania. No representation or warranty, expressed or implied, is made to
the accuracy, adequacy or reliability of any statements, estimates or opinions
or other information contained in this Document, any of which may change
without notice. To the maximum extent permitted by law, Oceania, its
directors, officers, employees and agents disclaim all liability and
responsibility (including without limitation any liability arising from fault or
negligence on the part of Oceania, its directors, officers, employees and
agents) for any direct or indirect loss or damage which may be suffered by
any person through the use of or reliance on anything contained in, or omitted
from, this Document.
This Document may contain certain forward-looking plans and projections.
Those plans and projections reflect current expectations, but are inherently
subject to risk and uncertainty, and may change at any time. There is no
assurance that those plans will be implemented or that projections will be
realised. You are strongly cautioned not to place undue reliance on any
forward-looking statements. No person is under any obligation to update this
Document at any time after its release or to provide further information about
Oceania.
This Document is not a product disclosure statement, prospectus, investment
statement or disclosure document, or an offer of shares for subscription, or
sale, in any jurisdiction.
This Document in unaudited.
Receipt of this Document constitutes acceptance of the terms set out above in
this disclaimer.