Slides
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22 MAY 2025 Results presentation for the year ended FY25
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1 Key messages • Strategic sales focus and incentive programme provides sales momentum • Successful bank refinance shows support of banking syndicate • Unsold stock remains the largest lever to reducing debt • Development to focus on villas in the medium-term to retain flexibility • Enhancement plan strengthens business before launch of new strategy
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2 Total Sales Volume 520 units Increase of 9.2% From 476 units in FY24 Total Comprehensive Income $74.6m Increase of 5.8% from $70.5m in FY24 Financial summary Oceania delivered a solid financial result in FY25 with an increase in underlying EBITDA and sales volumes, despite market conditions. Delivering to strategy 1. A reconciliation to the reporting statutory figures is included in Appendix 01. 2. Restated in prior periods, this restatement increases Operating Cashflow from $85.4m in March 2024 . Refer to note 1.2(ii) of financial statements. Operating Cashflow $110.3m Increase of 6.7% from $103.4m2 in FY24 ORA Receipts $294.5m Increase of 30.1% from $226.3m in FY24 Underlying EBITDA1 $86.0m Increase of 4.1% from $82.6m in FY24 Dividend The Directors have resolved not to declare a final dividend. Work is underway toreview our Dividend Policy so that it better aligns with the operating cashflows of the business. Our revised Dividend Policy will be announced at the time of the ASM in June Total Assets $2.9b Increase of 5.7% from $2.8b in FY24
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3 Operational highlights Solid progress in sales execution was demonstrated, and an operating model optimisation programme was initiated to improve investor returns. 1. Care occupancy for the entire portfolio increased to 92.3% from 91.1% FY24. • Total new sales volumes at The Helier increased 100% from FY24, with 24 apartments and care suites sold in FY25 • Total development cash cost recovery of The Helier expected by FY26 (including land and finance costs) • Awatere and Waterford developments completed in FY25 with forecast cash recovery on first sell down in aggregate • >90% of apartments at The Bellevue sold within 18 months of opening, with the final 3 scheduled to settle within 3 months • Record sell down rate of new care suite development site. Redwood 62% occupied within 12 months of opening • Care occupancy for sites not affected by development1 increased to 94.5% from 92.6% FY24
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Business overview
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5 Strong ILU and care suite sales performance across both new and existing stock 41% total occupancy1 at The Helier, increased from 14% at FY24 Partnership with Marketability at The Helier has delivered an increase in 2HY25 ILU sales vs 1HY25 Sales incentives have assisted to increase new sales volumes, up 17.2% on FY24 43 of 46 apartments at The Bellevue sold down in 18 months since opening in September 2023 Average sales prices (new sales) NZD000s Sales volumes 1. Total occupancy at The Helier includes both apartment and care residents (including respite) as at 20th May 2025. Occupancy a s at 31 March 2025 was 36%. Sales update Total sales volumes increased 9.2% from FY24, driven by the execution of selling down unsold stock. FY25FY24FY23 Resales New sales Focus on sales execution 599 1,135 1,032 1,108 334 373 356 FY23 FY24 FY25 98 182 129 190 130 20654 74 89 68 97 87 152 256 218 258 227 293 Average sales prices (resales) NZD000s 468 361 425 520 578 618 208 283 283 FY23 FY24 FY25 Villa Apartment Care Suite
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6 9.2% increase in total sales volumes YoY 17.2% increase in new sales volumes YoY Awatere 28% *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. Strategic sales focus Additional tools outside of pricing adjustments to increase sales volumes. Sales focus Impact Alignment: accountability, alignment and appropriate sales incentives for the sales team Centralised pricing office: managed by the finance function to increase the frequency of unit pricing reviews and ensure optimum pricing Resident incentives: cash incentives, furniture packages and moving costs have been used in a targeted manner The Helier 113% Increases in new ILU sales volumes (year on year) The Bellevue 61% The Bayview 44%
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7 Repositioning: A refined marketing approach introduced to shift perceptions of The Helier as exclusively high end and expensive. Messaging now emphasises ‘affordable luxury’ in a connected community, supported by well positioned weekly pricing The Helier marketing Prioritising marketing spend to drive quality leads. The Helier Early Performance Indicators: 190% increase in qualified leads from 31-Jan to 31-Mar vs PCP 450% increase in website traffic from 31-Jan to 31-Mar vs PCP
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8 Developmentscompletedin FY25 Completion* of all high density developments under construction, the FY26 focus is getting construction ready villa products. A total of 224 units were delivered in FY25, made up of 106 care suites and 118 apartments. 50 Apartments completed in Dec-24 *Meadowbank dementia will welcome residents in May 2025. Elmwood, Auckland 106 Care suites completed in Sep-24 Build Costs c. $55m - $4.0m units sold - 55% of 22 units available for sale sold - Remaining units occupied with transferred residents Build Costs c. $50m - $9.5m units sold - 16% of units sold Waterford, Auckland Awatere, Hamilton Stage 2- Apartments completed in May-2263 Build Costs c. $55m - $5.1m units sold. 7% of units sold Build Costs c. $38m - $33.9m units sold. 76% of units sold 68 Stage 3- Apartments completed in Nov-24
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9 $51m $213m $88m • Total unsold stock (including resale stock) of $392m, vs $396m at Mar-241 • $104m of development stock remaining from Awatere, Waterford and Elmwood at FY25 • Development stock has reduced from $353m at FY241 to $342m despite the addition of c. $120m of new stock during FY25. Sales in the period totaled $131m • The value of new stock over 12 months old increased primarily due to aging stock at: • The Helier ($112m of remaining stock), final stage completed Feb-24, and • The Bayview stage 3 ($40m of remaining stock), 28 apartments completed Dec-23 1. Based on CBRE Limited Valuations. 2. Units developed currently occupied by transferred residents and residents occupying care suites under a PAC. Stock update Sell down of new stock remainsa key focus for Oceania. Our development stock will be used to repay development debt FY241 $353m Value of unsold new stock unavailable for immediate sale2 Value of unsold new stock completed within the last 12 months Value of unsold new stock completed over 12 months ago Key stock movements since FY24 $55m $104m $183m FY251 $342m c. $120m of development stock added during FY25
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Financial
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11 Profit and loss Total operating profit increased by 7.8% driven by the 48% uplift in change in fair value of IP .1 • Fair value and impairment of IP and PPE: Increased 25.1% from FY24 to FY25 at mature and existing villages • Finance expenses: Finance costs increased by 26.8% primarily due to the expensing of $10.5m of interest on completed developments during FY25 (FY24: nil). This was partially offset by a loan modification gain as a result of the refinance • Operating expenses: Increased 1.5%. Focused optimisation of the operating model resulted in $5m in cost savings, to be realised in FY26. The programme is on track to realise a further $10-$15m in cost savings in FY27 • Business closure: With changes to the certification pathways for overseas nurses recently introduced, a decision was made during FY25 to close the Wesley Institute of Nursing Education, with the final course concluding in Apr-25. Wesley contributed EBITDA of $4.7m in FY25 and $6.8m in FY24 1. The change in fair value equates to an uplift of $29.4m or 48%. See appendix 02. 2. Includes change in fair value of IP, other revenue, rental expense in relation to ROU asset, impairment of goodwill and impairment of PPE. See appendix 02. NZDm FY25 FY24 Var Operating revenue 260.6 265.5 (1.8%) Operating expenses (260.6) (256.7) 1.5% Change in fair value of IP, impairment of PP&E and other2 68.8 55.0 25.1% Operating Profit 68.8 63.8 7.8% Finance costs (20.8) (16.4) 26.8% Depreciation (buildings) (14.4) (12.8) 12.5% Depreciation and amortisation (chattels and other) (7.7) (6.2) 24.2% Profit before Income tax 25.9 28.4 (8.8%) Taxation benefit 4.5 3.1 45.2% Reported Net Profit after Tax 30.4 31.5 (3.5%) Other Comprehensive Income 44.2 39.0 13.3% Total Comprehensive income 74.6 70.5 5.8%
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12 Trading results Underlying EBITDA1 increased 4.1% despite continuing to divest, driven by a 22.6% increase in capital gains. 1. This slide provides trading and underlying measures. A reconciliation to the reporting statutory figures is included in Appe ndix 01. Village capital gains are strong while care costs reduce Underlying EBITDA1 Care premiumisation $25.4m 12.5% increase from FY24 Total occupancy (excl dev sites) 94.5% Underlying NPAT1 4.1% increase from FY24 $62.1m in FY24 22.6% increase from FY24 Realised capital gains1 (DMF and PAC fees)$86.0m $52.5m $83.2m 2.0% increase from FY24 Key themes Underlying EBITDA increased 4.1% despite a reduction in operating revenue, increased expenses and continued divestments in the period Underlying NPAT decreased by $9.6m. A key driver for the reduction was the FY25 interest expense which included $10.5m relating to interest on completed developments (FY24 nil) Realised capital gains have increased $15.3m since FY24, driven by strong resale margins at Meadowbank and capital gains from The Helier Premium care revenue is up 12.5%, driven by our recently completed developments at Elmwood, Lady Allum, Redwood and The Helier Total occupancy (not affected by development sites) is up 2.0% from FY24
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13 Care segment total revenue, EBITDA and EBITDA margin (incl. capital gains) (%) NZDm Care dashboard Group care occupancy continued to rise, up 1.2% since FY24. Care EBITDA per bed also increased by 2.7% YoY . Care EBITDA per bed NZD Care occupancy • Care EBITDA per bed including capital gains has increased 7.5% reflecting a modernised care portfolio • Care suite development margin increased 7.0%, driven by higher margin sales at The Helier • Increase in EBITDA per bed excluding capital gains up 2.7% to $10.3k 9,044 10,106 10,374 16,639 18,033 19,385 FY23 FY24 FY25 Care EBITDA per bed Care EBITDA per bed including capital gains 90.4% 91.1% 92.3%92.0% 92.6% 94.5% FY23 FY24 FY25 Group Occupancy Occupancy of sites not affected by development 19.3% 18.7% 19.0% 10.5% 10.5% 10.2% FY23 FY24 FY25 Revenue EBITDA EBITDA margin (cap gains incl.) EBITDA margin
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14 Care business Care business remains stable with EBITDA per bed increasing since FY24. NZDm FY25 FY24 Var Daily care fees 174.1 181.4 (4.0%) PAC revenue 7.5 6.4 17.2% Care suite DMF 17.9 16.2 10.5% Other revenue 1.6 4.2 (61.9%) Total aged care operating revenue 201.1 208.2 (3.4%) Staff and resident expenses (140.2) (146.0) (4.0%) Occupancy and site overhead expenses (40.5) (40.2) 0.7% Total aged care expenses (180.7) (186.2) (3.0%) Aged Care Underlying EBITDA 20.4 22.0 (7.3%) EBITDA per care bed / suite 10,374 10,102 2.7% Plus: Other aged care related earnings included within the Village Segment1 Care suite development margin 9.2 8.6 7.0% Care suite resale gains 8.5 8.6 (1.2%) Aged care related underlying EBITDA 38.2 39.0 (2.1%) Aged care related underlying EBITDA per bed 19,395 18,033 7.5% • Increase in EBITDA per bed including capital gains up 7.5% to $19.4k • Impact of divestments: See Appendix 03 for summarised P&Ls of sold and exited care sites in FY25 and FY24 • Lower revenue following divestments and lower gain on divestments (recognised in FY24 as Other Revenue) contributed to 80% of the 3.4% aged care operating revenue decline • Aged care expenses decreased 3.0% in totality, but were 8.1% higher than FY24 excluding divestments, partially driven by new care suites opening at The Helier and Redwood • EBITDA Impact: Aged Care Underlying EBITDA increased 4.3% excluding divestments. See normalised view in Appendix 03 1. Development margin & resale gains on care suites are included within the Village Segment for underlying profit and statuto ry reporting purposes as the ORAs are issued by Oceania Village Company Limited. As these margins are in lieu of daily premium c harges under the traditional model, these earnings are aggregated above to present a more complete picture for the Care segment.
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15 • Village weekly fees are now index linked for new ORAs, resulting in a $15m valuation gain at HY25 • Strong development margins: The value of development margins increased 36.4%, taking the average capital gain to 36% as a result of elevated sales performance at The Helier, Bellevue and Redwood • Sales volumes: increased by 9.2% (520 vs. 476 units). Notably a large increase in new sales of 17% • Care suite total sales increased by 13.6% from FY24, with new care suite sales increasing by 27.9% and resales increasing by 8.4% 38% 31% 36% 31% 29% 28% FY23 FY24 FY25 Development Margin Resale Margin Sales volumes Our retirement villages Total saleshave increased on FY24, as we continue to execute on our sales targets. FY25FY24FY23 Development and resale margins Resales New sales 98 182 129 190 130 20654 74 89 68 97 87 152 256 218 258 227 293
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16 Retirement village business Increase in sales volumes leads to a 13.7% increase in Retirement Village Underlying EBITDA. 1. This slide provides trading and underlying measures. A reconciliation to the reporting statutory figures is included in Appe ndix 01. 2. Other revenue in FY24 included $2.7m of insurance income relating to Lady Allum. NZDm FY25 FY24 Var Villa and Apartment DMF 39.5 38.6 2.3% Retirement village service fees 10.8 9.7 11.3% Other revenue2 3.3 4.6 (28.3%) Total retirement village operating revenue 53.6 52.9 1.3% Realised gains on resales 34.8 32.5 7.1% Realised development margin 48.3 35.4 36.4% Total retirement village expenses (40.3) (36.1) 11.6% Retirement village underlying EBITDA 96.4 84.8 13.7% Total resale volume 336 319 5.3% Total new sales volume 184 157 17.2% Total sales volume 520 476 9.2% Less: Aged care related earnings included within the Village Segment Care suite development margin & resale gains (17.8) (17.2) 3.5% Retirement village underlying EBITDA (ex care) 78.6 67.6 16.3% • Resale margins grew 7.1% on pcp, driven by ILU resale margins of $8.0m at Meadowbank • Development margin increased 36.4%, driven by sales at The Helier, The Bellevue and Redwood (contributing c.$35m) • Retirement village underlying EBITDA grew 16.3% ex care: driven primarily by resale and capital gains 83.0 84.8 96.4 FY23 FY24 FY25 Retirement village underlying EBITDA1 ($m)
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17 Cash flow Cash flow from operating activities increased by 6.7%, $110.3m in FY25 compared to $103.4m for FY24. 1. Restated in prior periods, this restatement increases Operating Cashflow from $70.2m to 78.8m in March 2023 and $85.4m to $10 3.4 in March 2024. Refer to note 1.2(ii) of financial statements. NZDm FY25 FY24 Var Receipts from residents for village and care fees 201.0 207.9 (3.3%) Payments to suppliers and employees (266.1) (241.6) 10.1% Net occupational rights agreements 187.9 147.5 27.4% Net interest, goods and services tax and other (12.5) (10.4) 20.2% Net cash inflow from operating activities 110.3 103.41 6.7% Payments for PPE and intangible assets (39.9) (52.0) (23.3%) Payments for IP and IP under development (73.7) (128.4) (42.6%) Interest paid in relation to development borrowings (18.4) (18.0) 2.2% Proceeds from sale and / or disposal of PP&E and IP 31.6 19.2 64.6% Net cash outflow from investing activities (100.3) (179.2)1 (44.0%) Net borrowings (8.4) 84.8 (109.9%) Principal Payment for lease liabilities (1.5) (2.1) (28.6%) Dividend paid - (6.8) - Net cash inflow from financing activities (9.9) 75.9 (113.0%) Net increase in cash and cash equivalents 0.1 0.1 0.0% Cash and cash equivalents at beginning of the period 7.5 7.4 1.4% Cash and cash equivalents at end of the period 7.6 7.5 1.3% • Development capital expenditure reduced $54.7m as FY25 saw completion of remaining high density developments • Net cashflow from operating activities has increased to $110.3m from FY24 largely attributed to a net 27.4% increase in new occupation right agreements Net cash flow from operating activities1 ($m) 78.8 103.4 110.3 FY23 FY24 FY25
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18 34.9 34.4 51.9 60.4 86.8 94.8 Development debt from projects under construction and land purchases Value of related land assets and WIP Land WIP 1. Development debt balance includes The Helier, Elmwood care suites, Redwood care suites, Waterford apartments and Awatere apar tments (Stage 3). 2. The estimated value of 44 care suites (which are occupied by ORA transfers) at Elmwood. These units are not currently valued as unsold stock, but will be used to repay development debt once the transferred ORA resident vacates and the unit is sold. 3. The future and current development debt and associated value includes the land at Franklin, Bream Bay, Gracelands and Woodlands, plus WIP balances at Franklin and Meaadowbank. The cost of land purchased at Gracelands and Woodlands was funded by facility A/core debt. Future cash recycling Oceania’s debt is primarily development related, supported by current and future new sales stock, providing a clear path to debt repayment. In aggregate we have $146m of asset coverage to our current development related debt. Development debt from completed (but not yet fully repaid)1 developments to underlying development assets (NZDm) Development debt – future and current developments • $8m / 1.09x coverage from land and WIP values • Faster cash recycling from villa products in the medium term Development debt – completed sites in sell down • Our unsold new stock will be used to repay development debt, with excess proceeds of $138m available to pay down working capital borrowings or additional development borrowings Development debt from land purchases and developments under construction3 to underlying development assets3 (NZDm) 2 3 31 218.4 341.8 15.0 218.4 356.8 Development debt from completed developments Value of unsold new stock Estimated value of 44 care suites at Elmwood
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19 Balance sheet The balance sheet has demonstrated both growth and stability, NTA per share increased 5.9% YoY . • Covenants: All financial banking covenants met • Gearing1: Gearing has decreased 5.1% to 36.3% at FY25 from 38.3% at FY24 • Borrowings: Decrease of 2.0% reflective of sell down of unsold stock and divestments offset by ongoing development costs • Asset Growth: Total assets rose $158m to $2.9b, driven by completions of care suites at Elmwood, and apartments at Awatere and Waterford • Net Tangible Assets: rose by 8 cps to $1.51 cps in FY25 from FY24 1. Gearing refers to net debt/(net debt+equity), a financial ratio that measures a reliance on debt vs equity financing. NZ$m FY25 FY24 Var Assets Cash and trade receivables 126.1 135.4 (6.9%) Property assets 2,800.5 2,586.3 8.3% Other assets 14.1 60.7 (76.8%) Total assets 2,940.7 2,782.4 5.7% Liabilities Refundable occupation right agreements 1,106.8 1,004.8 10.2% Borrowings 627.7 640.5 (2.0%) Other liabilities 104.3 110.6 (5.7%) Total liabilities 1,838.8 1,755.9 4.7% Equity Contributed Equity 716.0 716.0 0.0% Retained Deficit 7.0 (34.3) (120.4%) Reserves 378.8 344.8 9.9% Total equity 1,101.8 1,026.5 7.3% Net tangible assets 1,097.1 1,020.8 7.5%
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20 125 100 500 FY26 FY27 FY28 FY29 FY30 FY31 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. Bank refinance - strong lender support Successfully refinanced existing $500m debt facilities with no amendment to covenants. Effective 1 May 2025. Split and increase in tenor provided a spread of the maturity profile of term and retail debt Pro-forma debt tenor profile has improved (NZDm) Pre re-finance 125 100 50 450 FY26 FY27 FY28 FY29 FY30 FY31 • Good demand from both existing and new lenders, with optimal pricing, reflecting a strong market appetite for the business • Expanded syndicate: BNZ joined the three incumbent lenders • No waivers or amendments to banking covenants sought, with confidence in current and ongoing compliance • No new requirements for syndicate approval of land purchases or development commencement • Secured line and margin fee cost savings of estimated c.$1.0m per annum1 Post re-finance Retail bonds Bank facilities
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21 Covenants exceeded: ICR coverage of 3.5x compared to the covenant of 2.0x. The covenants were unchanged through the refinance process Flexibility to repay debt: Oceania has the flexibility to pay down core debt once a development has been fully paid off Fixed interest rates: We have $225 of retail bonds with a blended interest rate of 2.7%, expiring in FY28 and FY29. $50m of 3.4% interest rate swaps expire FY27 Current average interest rate: (including margin and hedging) on bank debt of 4.81% Debt facilities Facility limit Drawn amount Headroom General / corporate $185m $112.1m $72.9m Development facility $315m $298.5m $16.5m Retail Bonds $225.0m $225.0m - Total limits / borrowings $725.0m $635.6m $89.4m Cash n/a $7.6m $7.6m Total net debt / headroom $628.0m $97.0m Oceania holds sufficient headroom in its $725m of debt facilities, for future developments and land acquisitions, and complies with all banking covenants. Balance sheet management Covenants Debt covenant As at FY25 As at FY24 Net debt n/a $628.0m $636.5m Net debt / (net debt + equity) n/a 36.3% 38.3% Loan to value ratio <50% 37.8% 38.8% ICR1 ≥ 2.0x 3.5x 3.4x
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221. FY25 Climate-Related Disclosure to be published in early June 2025. Sustainability and Climate Sustainability underpins Oceania’s strategic pillars, and we are committed to integrating thinking across the business. Environment Green star ILU developments: All new ILU developments are continuing to be designed to NZGBC Homestar ratings Waste target achieved in FY25: achieved a construction waste away from landfill diversion rate of >85% for Auckland and >75% for regional areas, exceeding targets Reduction in absolute Scopes 1 and 2: GHG emissions by 42% by FY2030 from a FY2022 base year: -29% (reduction against FY2022 base year) Social Finalist in Sustainability Leadership Deloitte Top 200 business awards Supported RVA sector negotiations that improve transparency, enhance resident wellbeing and support the long-term sustainability sector Staff retention improved to 77.4% demonstrating the building of a more supportive and stable workplace Governance Refresh: of FY27 – FY31 strategic plan Climate transition plan1: providing strategic direction to reduce climate risks and build resilience by transitioning to a low-emissions future Growth: Focus on growth and building new developments that align with the modernisation of the portfolio Implementation: of new IT systems to create efficiencies in the workforce E S G
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Portfolio
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24 Portfolio direction The portfolio's evolution from IPO reflects a strategic shift focused on growth and modernisation. • Since listing, the majority of the portfolio (88%) has been significantly improved through acquisition and development Since IPO in 2017, 88% of sites in the Oceania portfolio have been redeveloped or acquired, resulting in a new modern portfolio % of sites developed or acquired since IPO (by valuation) FY17 vs FY25 Portfolio • There has been a focus on modernising the existing portfolio and increasing the number of independent living units • 18 sites have been sold or exited since IPO 2,580 242 1,054 3,876 1,068 1,090 2,003 4,161 Care Beds Care Suites ILUs Total FY17 FY25 88% 12%
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25 Progress since March 23: Divestment programme Over the course of FY25, 7 sites have been sold for aggregate proceeds of ~$35m1. The divestment programme will continue to consider the portfolio’s strategic direction and appropriate use of capital. 1. Woburn was under contract as at 31 March 2025, and settled 13 May 2025. 10 sites sold1 ~$55m from divestment programme (past 24 months) Otumarama Woburn1 Totara Park FY25 divestments ($35.5m) Victoria Place Middlepark Holmwood Takanini
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26 Developmentsunder construction- Meadowbank The opening of the Dementia Building marks the sixth and final stage of a 15 year modernisation journey for Meadowbank Village. Build cost c. $26m 40 Dementia beds Completed in May-25 • The dementia development concludes the sixth and final stage of a key integrated Auckland site • Innovative ORA offering for dementia suites, prices starting from $695k • Certification has been granted for Oceania to offer excellent resident centered care • The Oceania integrated enriched model of care guides and supports residents, families, and staff Meadowbank Offering Total serviced apartments 36 Total apartments 157 Total care suites 64 Total dementia suites 40 Years to develop entire site >15 years Meadowbank Auckland
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27 Developmentsunder construction- Franklin Stage one of the Franklin development is set to be completed in FY26, Oceania’s first greenfield broadacre site. Stage one build cost including community centre c. $50m 31 villas1 Community Centre Full Site Statistics inclusive of new development Total villas 132 Total apartments 43 (developed > 2030) Total care & dementia units 81 Years to develop entire site 7-10 Years Forecast peak development debt on site c. $110m Total cost of development c.$200m-$250m • Village and Sales manager at Franklin appointed and commenced April 2025 • First Oceania Homestar 72 villas and first Green Star community • Residents will receive amenity from the moment they join the village, creating an immediate community • 3 on site showhomes are complete Franklin Auckland Stage one to be completed in FY26 1. 1 villa is currently being used as a sales office and 30 villas will be available for immediate sale. 2. The Homestar 7 rating is achieved using the new tool Version 5 (v5), which is higher specification to the previous 4.1 version.
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28 High Density Developments 1.4 ha – 140 units consented Future high density apartments to complete the site (artistic image shown) The Bayview, Tauranga 1.5 ha – 120-150 units consented Future 20-40 dementia suites and apartments to complete integrated site 2.6 ha - 70 villas planned Adjoining land was added to this site in FY25 further expansion of lower density development to a mature site. 7.6 ha – 23 villas consented Broadacre villa product with future potential for >105 villas and 40-60 care suites on adjacent section Oceania landbank Oceania’s landbank currently includes 23.5ha of development land adjoining existing villages. Providing optionality to further develop as market conditions improve. Some key land banks are listed below. 1.8 ha – 70-100 villas planned Villa product with optionality for future apartments Bream Bay, Ruakaka Waterford, Auckland 0.2 ha – 60-80 care units planned Opportunity for care suites completing integrated offering Lady Allum, Auckland Villa Developments Elmwood, Auckland Gracelands, Hawkes Bay
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Strategy
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30 Strengthening the foundations: before launching the strategy We’re focused on executing our near term Enhancement Plan, strengthening our core ahead of full strategy rollout. Address performance and capability pain points Execute on operational optimisation plan - $15 - $20m cost savings Tighten operational execution to drive ongoing cashflow improvements Consolidate and enhance our foundations FY26 Enhancement Plan
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311. Woburn proceeds received 13 May 2025. Strengthening the foundations: progress update At HY25, we set clear near term objectives for the business which have been achieved. Priorities FY25 Performance Focus for FY26 Sales • Total sales volumes up 9% on FY24 • New sales up 17%, resales up 5% on FY24 • 24 ILU and CS sales at The Helier in FY25 • Continue improving sales cadence at sell down sites • Reduce stock levels • Continued upskilling of inhouse capability Capital Management • Gearing reduced to 36.3% vs 38.3% in FY24 • Further reduction in gearing • Review of Dividend Policy Cost Control • Right sizing programme established with $5.0m cost savings to be realised in FY26 • Broader business optimisation programme underway targeting $10m to $15m of sustainable annualised savings with full benefits to be realised during FY27 • $5.2m of cost savings have been actioned and will be realised from 2HY26 • Investment in systems and software to increase operational efficiency Portfolio Alignment • $10.5m from divestment of 3 sites since HY251 • Total FY25 divestment proceeds of $35.5m relating to 7 sites1 • Continued review of portfolio return on investment • Continue broadacre villa developments Our People • Established a full executive team, that has the expertise required for the next strategic phase • Align operating structure to strategic objectives
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32 The programme spans a broad range of areas, focusing on both cost saving and cash generating opportunities Establishment of a transformation office and investment in ICT systems to improve efficiency and productivity Oceania has launched a company wide programme to improve both financial and operational efficiency from FY26 Strengthening the foundations: cost out programme An Enhancement Plan is in place to improve both operational and financial efficiency during FY26 and supporting strategic priorities. Overview Scope The FY27 target savings range reflects our commitment to operational efficiency while allowing for strategic investments that support sustainable, long term cost optimisation Target Savings Range Optimisation of the operating model Targeted cost saving benefits $15 - $20m in total Item Annualised amount Full benefit during Reduction in professional service fees $5.0m FY26 Right sizing support functions $5.2m FY27 Business optimisation programme $4.8m - $9.8m FY27 $5.0m $5.2m $4.8m $15.0m $5.0m $20.0m Reduction in professional service fees Right sizing support functions Business optimisation programme Targeted cost saving benefits (low) Business optimisation programme Targeted cost saving benefits (high)
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33 Strengthening the foundations: before launching the strategy We’re focused on executing our near term enhancement plan, strengthening our core ahead of full strategy rollout. Address performance and capability pain points Execute on operational optimisation plan - $15 - $20m cost savings Tighten operational execution to drive ongoing cashflow improvements Consolidate and enhance our foundations Our five year strategy will scale Oceania’s integrated village model, deepen our care and living offer, and position the business for disciplined, long term growth. Further detail on strategy will be provided over the coming months FY26 Enhancement Plan Strategy - Scale for Growth
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Appendices 01 Underlying earnings 02 Income Statement 03 Proforma group underlying earnings 04 Cash flow 05 Resales cash flow and capital expenditure 06 Embedded value and affordability 07 Balance sheet 08 Future cash recycling 09 Portfolio summary 10 Future development outlook 11 Development pipeline 12 Reconciliation of portfolio movements 13 Summary of unit sales 14 Definition of Underlying NPAT 15 Glossary 16 Important notice and disclaimer
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35 Underlying EBITDA of $86.0m for the 12 month period ended 31 March 2025, 4.1% increase on FY24. Underlying earnings Reconciliation of underlying adjustments Segmental underlying adjustments 01 NZDm FY25 FY24 Var FY23 Reported net profit after tax 30.4 31.5 (1.1) 15.4 less: Change in fair value of investment property and impairment of PPE, ROU asset (64.1) (46.4) (17.7) (13.4) less: Fair value of loan modification (5.4) - (5.4) - add: Impairment of goodwill 0.2 0.6 (0.4) 2.3 add: Realised gains on resales 34.8 32.5 2.3 27.0 add: Realised development margin 48.3 35.4 12.9 32.4 less: Deferred tax (4.6) (3.1) (1.5) (3.4) Add: Care Suite Depreciation 11.8 10.3 1.5 9.0 add: Rental expenses in relation to right to use asset - - - 0.2 less: Insurance income on material damage due to weather events 0.2 0.4 (0.2) (10.0) add: Other 0.9 0.9 (0.1) (0.9) Underlying NPAT 52.5 62.1 (9.6) 58.6 add: Depreciation and amortisation (buildings) 2.6 2.4 0.2 2.3 add: Depreciation and amortisation (chattels, leasehold improvements & software) 7.7 6.2 1.6 6.6 add: Finance costs 23.1 11.9 11.2 12.6 Underlying EBITDA 86.0 82.6 3.4 80.0 NZDm FY25 FY24 Var FY23 Aged Care 20.4 22.0 (1.6) 20.5 Retirement Village 96.4 84.8 11.6 83.0 Other (30.9) (24.2) (6.6) (23.5) Underlying EBITDA 86.0 82.6 3.4 80.0 Oceania successfully refinanced its banking facilities which resulted in $5.4m of a gain on loan modification. The $5.4m gain has been removed from Underlying NPAT in line with our policy to remove fair value adjustments.
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36 02 Key valuation assumptions remained largely consistent from FY24 except for moderate increases applied to incoming prices across all typologies. Income statement Drivers FY25 FY24 Investment Property PPGR – Long Term (low-high) 2.50% 3.50% 2.50% 3.50% PPGR – Short Term (low-high) - 3.00% - 3.00% Discount Rates (low-high) 14.00% 20.00% 14.00% 20.00% Average Incoming Price - Villas $654,109 $634,427 Average Incoming Price - Apartments $1,080,126 $1,023,612 Property, Plant and Equipment Cap rate (low-high) 12.25% 15.00% 12.25% 17.50% EBITDAR per bed (low-high, $000's) $9,305 $52,060 $9.55 $56.95 Average Incoming Price - Care Suites $365,620 $340,241 NZDm FY25 FY24 Var FY23 Operating revenue 260.6 265.5 (4.9) 247.2 Change in fair value of investment property 90.2 60.8 29.4 21.4 Other Revenue 4.9 9.2 (4.3) 17.4 Total Income 355.7 335.4 20.3 286.0 Operating expenses (260.6) (256.7) (3.9) (231.3) Rental expenditure in relation to ROU Asset 0.0 0.0 0.0 (0.2) Impairment of goodwill (0.2) (0.6) 0.4 (2.3) Impairment of property, plant and equipment (26.0) (14.4) (11.6) (8.0) Total Expenses (286.8) (271.6) (15.2) (241.7) Operating Profit 68.8 63.8 5.0 44.2 Finance costs (20.8) (16.4) (4.4) (14.3) Depreciation (buildings) (14.4) (12.8) (1.6) (11.4) Depreciation and amortisation (chattels and other) (7.7) (6.2) (1.5) (6.6) Profit / (Loss) before Income tax 25.9 28.4 (2.5) 12.0 Taxation benefit/(expense) 4.6 3.1 1.5 3.4 Reported Net Profit / (Loss) after Tax 30.4 31.5 (1.1) 15.4 Other Comprehensive Income 44.1 39.0 5.1 19.1 Total Comprehensive income 74.6 70.5 4.1 34.5 • Discount rate assumptions are unchanged from FY24. • Continued moderate increases on average in incoming price assumptions adopted by CBRE for villas, apartments and care suites Summary of income statement Key IP and PP&E CBRE valuation assumption changes
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37 03 1. Including: Takanini (sold), Holmwood (sold), Middlepark (sold), Victoria Place (sold), Totara Park (sold). 2. No adjustment has been made in relation to acquisitions or development sites.. 3. Including sites in footnote 1, plus Amberwood (sold), Greenvalley Lodge (sold), Everil Orr (lease exited), Wesley (lease exited), Otumarama (closed). Proforma group underlying earnings for FY25 of $84.5m. Adjustments include normalising for the impact of divesting, closing and exiting several sites from our ongoing operations. Proforma group underlying earnings NZDm FY25 Divested Sites1 Normalised FY25 Aged care operations 20.4 (0.5) 20.9 Retirement village operations 13.2 0.6 12.7 Realised gains on resales 34.8 1.4 33.5 Realised development margin 48.3 - 48.3 Corporate (30.9) - (30.9) Group Proforma Underlying EBITDA2 86.0 1.5 84.5 Group Proforma Underlying NPAT2 52.5 1.5 47.9 Villa and apartment resales 130 4 126 Villa and apartment new sales 97 - 97 Care suite resales 206 - 206 Care suite new sales 87 - 87 Total sales volume 520 4 516 Group proforma Underlying EBITDA and NPAT (FY25) Group proforma Underlying EBITDA and NPAT (FY24)3 NZDm FY24 Divested Sites3 Normalised FY24 Care 21.9 1.8 20.0 Village Operations 16.9 (0.3) 17.2 Resales Capital Gains 32.5 1.6 30.9 Development Margin 35.4 - 35.4 Corporate (24.0) - (24.0) Group Proforma Underlying EBITDA2 82.6 3.1 79.5 Group Proforma Underlying NPAT2 62.1 3.0 59.1 Villa and apartment resales 129 4 125 Villa and apartment new sales 89 - 89 Care suite resales 190 7 183 Care suite new sales 68 - 68 Total sales volume 476 11 465 In the last 24 months to 31 March 2025 several sites have been exited, closed and divested1,3. We show here the unaudited Underlying Earnings attributed to these sites over the current and prior comparative period. We present unaudited Proforma Underlying Earnings Before Interest, Tax, Depreciation and Amortisation, and Proforma Underlying Net Profit After Tax for both periods, normalising for the impact of closing, exiting and divesting of these sites from our ongoing operations. Both of these measures are Non-GAAP and unaudited. Summarised care P&L of sold and exited sites (NZDm) FY251 FY243 Aged care operating revenue 4.4 25.5 Aged care expenses (4.9) (23.7) Underlying care EBITDA (0.5) 1.8
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38 04 1. Restated in prior periods, this restatement increases Operating Cashflow from $70.2m to 78.8m in March 2023 and $85.4m to $10 3.4 in March 2024. Refer to note 1.2(ii) of financial statements. Operating cash flow of $110.3m for the 12 months to FY25 compared to $103.4m in relation to FY24. Cash flow Statement of cash flows NZDm FY25 FY24 Var FY23 Receipts from customers 201.0 207.9 (6.9) 196.7 Payments to suppliers and employees (266.0) (241.5) (24.5) (220.3) Rental payments in relation to right of use investment property - - - (0.2) Receipts from new ORA 294.5 226.3 68.2 178.8 Payments for outgoing ORA (106.6) (78.8) (27.8) (79.3) Net goods and services tax received / (paid) (1.9) (3.7) 1.8 14.6 Receipts from insurance proceeds 4.7 8.7 (4.0) 1.1 Interest received 3.1 4.5 (1.4) 1.8 Interest paid on general borrowings (18.5) (20.0) 1.5 (14.4) Net cash inflow from operating activities1 110.3 103.4 6.9 78.8 Proceeds from sale and / or disposal of PP&E and IP 32.1 20.4 11.7 0.0 Interest Paid in relation to development borrowings (18.5) (18.0) (0.5) (8.6) Payments for PPE, intangible assets and assets held for sale (39.8) (52.0) 12.2 (55.2) Payments for investment property and investment property under development (73.7) (128.4) 54.7 (103.6) Payments for assets held for sale (0.4) (1.2) 0.8 (0.9) Payment for business assets - - - (59.9) Net cash outflow from investing activities (100.3) (179.2) 78.9 (228.2) Proceeds from borrowings 102.0 138.7 (36.7) 228.2 Repayment of borrowings (110.4) (53.9) (56.5) (54.3) Capitalised borrowing costs - - - (2.2) Dividend paid 0.0 (6.8) 6.8 (21.8) Principal Payment for lease liabilities (1.5) (2.1) 0.6 (2.8) Net cash inflow from financing activities (9.9) 75.9 (85.8) 147.1 Net increase in cash and cash equivalents 0.1 0.0 0.1 (2.3) Cash and cash equivalents at beginning of the period 7.5 7.4 0.1 9.7 Cash and cash equivalents at end of the period 7.6 7.5 0.1 7.4 Net cashflows from operating activities1 NZDm 78.8 103.4 110.3 FY23 FY24 FY25
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39 05 1. Net Buybacks is the difference between the gross ORA payments made in relation to units bought back (and not resold) durin g the year and the gross ORA receipts from units resold during the year that were bought back in prior financial years. Growth in resales cash flows as Oceania’s portfolio matures and resells at higher price points. Reconciliation of resales cash flow and capital expenditure Reconciliation of resales cash flow • Net resales cashflow for FY25 of $50.6m, 1.4% up vs. FY24. • This is driven by 30% greater New ORA receipts, offset by payments for outgoing ORA’s increasing by 35% and cash inflows for new sales also increasing by 41% YoY. • Buybacks include the closed building at The Oaks and at Elmwood relating to villas which have been ear marked for redevelopment. Breakdown of Capital Expenditure NZ$m FY25 FY24 Acquisitions 8.7 24.5 Development capital expenditure 102.2 136.3 Care suite conversions 0.2 - Maintenance capital expenditure - Care Suite refurbishment 1.8 1.8 - Other aged care 4.1 3.9 - Village refurbishment 11.0 7.3 - Other retirement village 2.6 2.2 - IT and other 1.8 5.5 Total refurbishment and maintenance 21.3 20.8 Total capex per statutory cashflow statement 132.4 181.6 NZD $m’s FY25 FY24 Receipts from New ORAs 294.5 226.3 less: Payments for Outgoing ORAs (106.6) (78.8) less: Cash Inflow From New Sales (137.4) (97.6) Net Resales Cash flow 50.6 49.9 Made up of : Resale Gains 35.4 32.5 DMF Realised 32.2 28.1 Add: Net Deferred Cash Settlements 5.6 (15.8) less: Development Buybacks (6.5) (12.3) less: Net Buybacks (15.5) 17.2 less: Resident Share of Capital Gains (1.2) (1.1) less: Other Cash amounts paid/received from resales 0.5 1.4 Net Cash flows from Resales 50.6 49.9
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40 06 1. Calculated as the current / estimated sale or resale price of all units / care suites as determined by CBRE. 2. Value of unsold stock represents the sales prices of units / care suites which are not under contract, as they are either newly constructed or have been bought back from the previous outgoing residents. The embedded value in our portfolio has increased 14.4% since FY24 to $591.0m as at FY25 and will underpin the future realisation of cash flows from deferred management fees and resale gains. CBRE embedded value and affordability ratio Summary of Embedded Value Calculation Embedded Value NZDm • Embedded value in Oceania’s portfolio is $591.0m, up 14.4% since FY24. • Embedded value includes: • $293m of accrued DMF cash flows to be realised; and • $298m of resale gains. • The growth in embedded value reflects growth in our portfolio, migration to our standard contractual terms at existing villages and a higher price point for the sale and resale of units and care suites. NZ$m FY25 FY24 FY23 Estimated sale / resale price of all Units 2,042.7 1,861.2 1,703.5 less: Unsold stock (392.2) (395.6) (409.0) less: Resident liabilities (contractual) (1,059.4) (948.8) (835.8) equals: Embedded value 591.0 516.8 458.7 Average CBRE affordability ratio of Oceania residences293.0 261.1 298.0 255.7 591.0 516.8 2,366 2,280 - 700 1,400 2,100 2,800 3,500 - 100 200 300 400 500 600 FY25 FY24 Accrued DMF Embedded Resales Gains Number of units (rhs) 73.4% 80.6% 34.6% Villas Apartments Care Suites
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41 Net adjusted value (“NAV”)Balance sheet NZ$m FY25 FY24 Assets Cash and trade receivables 126.1 135.4 Property, plant and equipment 828.5 770.9 Investment properties 1,972.0 1,815.4 Assets held for sale (0.0) 44.3 Intangible assets 4.7 5.7 Right of use assets 9.4 10.6 Total assets 2,940.7 2,782.3 Liabilities Trade, other payables and provisions 36.4 52.1 Deferred management fees 57.3 47.3 Refundable occupation right agreements 1,106.8 1,004.8 Borrowings 627.7 640.5 Lease liabilities 10.6 11.2 Total liabilities 1,838.8 1,755.9 Equity Contributed Equity 716.0 716.0 Retained Deficit 7.0 (34.3) Reserves 378.8 344.8 Total equity 1,101.8 1,026.5 Net tangible assets 1,097.1 1,020.8 07 Total assets increased by $158m from 31 March 2024. Oceania’s net adjusted value is $1.43 per share as at 31 March 2025. Balance sheet • Current headroom in bank facilities (plus cash) of $97m. • The NAV reflects the value of existing sites, plus the land and WIP at development sites. As such, the present value of net development cash flows and future earnings at development sites are excluded. NZ$m FY25 FY24 PP&E (inc WIP) 828.5 770.9 IP & ROU Assets (incl WIP) 1,981.4 1,826.2 Held for Sale (0.0) 44.3 Sub Total 2,809.9 2,641.3 less ORA Gross Up (913.1) (820.7) add: Adj for CBRE –Care Suites (197.3) (168.3) add: Other (33.6) 38.4 CBRE plus WIP 1,665.8 1,690.6 less: Net Debt (628.0) (636.5) Net Adjusted Value 1,037.8 1,054.2 Shares on Issue 724.2 724.2 Net Adjusted Value per Share 1.43 1.46
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42 08 225.0 341.8 102.7 271.9 122.6496.9 567.1 Development Related Debt Underlying Development Assets Bonds Unsold Stock WIP Development debt Development Land Total 1. Development debt excludes Oceania’s general / corporate facility but includes corporate bonds and accrued capitalised interest. The cost of constructing 44 care suites (which are occupied by ORA transfers) at Elmwood has been removed as they are not included as development assets. $15m has also been reduced to reflect the proceeds from new sales which were used to repay facility A/core debt during FY25. 2. The WIP balance has been adjusted to include GST, capitalised interest and chattels as per prior reporting periods. Oceania’s debt is primarily development related, supported by current and future new sales stock, providing a clear path to debt repayment. Development debt 1 to underlying development assets 2 (NZDm) • Our development assets remain at 114% of development debt1,2 at Mar- 25, compared to 115% at Mar-24 • 100% of bonds included as ‘development debt’ although $25m was used to paydown facility A in Oct-21 • No change to value of unsold stock at The Helier • Higher density, lower development margin completions in recent years has contributed to reduced asset to debt coverage • The value of development debt has been adjusted to exclude the development cost of 44 ORA residents at Elmwood, and $15m of proceeds from new sales which were used to repay facility A since Mar- 24 • The value of development land is like for like with FY24, including divested land bank • The WIP balance has been grossed up to include GST on the Awatere and Waterford developments which have been removed following the change of use to serviced apartments 1 2 Future cash recycling
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43 Site Region Care beds Care suites Village units Total NORTH ISLAND Bream Bay Ruakaka - - 83 83 The Sands North Shore - 44 64 108 Lady Allum North Shore - 113 129 242 Te Mana North Shore 46 - - 46 Waterford Waitakere - - 150 150 The Helier St Heliers - 32 79 111 Remuera Rise Remuera 12 - 58 70 Eden Mt Eden - 65 89 154 Meadowbank Meadowbank - 63 193 256 Elmwood1 Manukau 15 106 129 250 St Johns Auckland Manukau - - 18 18 Franklin Franklin 44 - - 44 Awatere Hamilton - 90 171 261 Whitianga Whitianga 53 - 10 63 Elmswood Tauranga 38 - - 38 The BayView Tauranga - 81 162 243 Ohinemuri Paeroa 68 - 8 76 St Johns Wood Taupo 38 40 6 84 Wharerangi Taupo 47 - 21 68 Duart Hastings 66 - - 66 Eversley Hastings 50 - 6 56 Gracelands Hastings 77 11 119 207 Atawhai Napier 55 28 46 129 Woburn2 Hawke's Bay 33 - - 33 Eldon Paraparaumu 80 15 - 95 Elderslea Upper Hutt 102 22 12 136 Heretaunga Upper Hutt 38 20 - 58 Hutt Gables Upper Hutt - - 46 46 Site Region Care beds Care suites Village units Total SOUTH ISLAND Marina Cove Picton - - 26 26 Green Gables Nelson - 61 40 101 Stoke Nelson - - 124 124 Redwood Blenheim 17 73 46 136 Woodlands Tasman 23 34 36 93 Palm Grove Christchurch 28 57 32 117 The Oaks Christchurch 69 36 32 137 The Bellevue Christchurch - 71 68 139 Addington Christchurch 69 28 - 97 TOTAL (NORTH AND SOUTH ISLANDS) 1068 1090 2003 4161 09 As at 31 March 2025. Portfolio summary 1. 15 beds in the old care building remain occupied as at 31 March 2025. 2. Woburn settled 13 May 2025.
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44 Care beds Care suites ILUs Total North Island 862 730 1,599 3,191 South Island 206 360 404 970 Total Existing 1,068 1,090 2,003 4,161 Development Pipeline - 518 766 1284 Less Decommissions (111) - (52) (163) Care Suite Conversions - - - - Net Development Pipeline (111) 518 714 1121 Total Post Development 957 1,608 2,717 5,282 10 1. As at 31 March 2025. 68% of our existing portfolio is now premium units and care suites as we progress to ~75% premium / ~25% standard at the end of our current pipeline. Future development outlook Current & future portfolio composition1 Existing portfolio Development pipeline Post development portfolio 26% 26% 48% 2,003 RV units 1,068 Care Beds 1,090 Care Suites 40% 60% 766 RV Units 518 Care Suites 5% 43%52% 663 Planned 550 Consented 71 Under Construction 32% 68% 2,821 Premium 1,340 Standard 18% 31% 51% 2,717 RV units 957 Care Beds 1,608 Care Suites 22% 78% 4,105 Premium 1,177 Standard
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45 Status as at 31 March 2025. Sites Stage Status ILUs Care suites Gross units Net units Meadowbank Stage 6 Under Construction 40 40 40 Franklin Stage 1 Under Construction 31 31 31 Stage 2-6 Consented 145 81 226 179 Lady Allum Stage 2 Consented 69 69 69 Stage 3 Consented 68 68 68 The BayView Stages 4-6 Consented 107 107 107 Eversley Consented 58 58 52 Bream Bay Stage 1 Consented 22 22 23 Stage 2 Planned 107 60 167 167 Waterford Stage 2 Planned 60 60 60 Gracelands Planned 70 80 150 62 Elmwood Stage 2-3 Planned 28 28 28 Stage 4+ Planned 76 76 76 Other Duart Planned 26 46 72 72 Eldon Planned 53 53 31 Stoke Planned 17 17 17 Bayview Planned 40 40 40 Total Consented / under construction 442 179 621 568 Total Pipeline 766 518 1284 1121 11 Development pipeline
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46 As at FY24 Changes in existing capacity Conversion of beds to care suites Conversion of units to care suites New units acquired New units delivered Changes in pipeline – gross units added Changes in pipeline – decommissions As at FY25 Existing Care beds 1,396 (328) 1068 Care suites 1,071 (87) 106 1090 Units 1,915 (30) 118 2003 Pipeline Care beds (164) 53 (111) Care suites 495 (106) 101 28 518 Units 967 (118) (144) 9 714 Total 5,680 (445) - - - - (43) 90 5282 12 Totals as at 31 March 2025 reconcile to both the total existing and future post development portfolios at appendix 09. Reconciliation of portfolio movements Movements in gross pipeline since FY24 1,571 1,284 150 Units 52 Units (106) Units (68) Units (50) Units (206) Units (18) Units (41) Units FY2024 Gracelands - additional land Bream Bay masterplanning update Elmwood- Completed Awatere - completed Waterford- completed Elmwood masterplanning update Divestments Other net movements FY2025
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47 Resales FY21 FY22 FY23 FY24 FY25 Villa 54 55 53 82 67 Apartment 34 37 45 47 63 Care suite 124 174 182 190 206 Total 212 266 280 319 336 Average resale margin 22.0% 21.2% 21.5% 21.2% 20.3% New Sales FY21 FY22 FY23 FY24 FY25 Villa 40 26 0 8 0 Apartment 67 92 54 81 97 Care suite 115 66 74 68 87 Total 222 184 128 157 184 Average development margin 26.1% 28.0% 37.6% 31.1% 35.5% Average resale gain per unit / care suite FY21 FY22 FY23 FY24 FY25 Villa 140,398 184,245 199,455 200,335 217,075 Apartment 102,409 66,338 67,400 130,421 71,683 Care suite 22,066 14,417 21,319 19,029 33,306 Average resale gain 89,427 88,315 96,399 101,792 105,220 13 Summary of unit sales
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48 14 Definition of Underlying NPAT Underlying Profit (or Underlying NPAT) Underlying Profit is a non-GAAP measure used by the Group to monitor financial performance and is a consideration in determining dividend distributions. Underlying profit measures require a methodology and a number of estimates to be approved by Directors in their preparation. Both the methodology and the estimates may differ among companies in the retirement village sector that report underlying financial measures. Underlying profit is a measure of financial performance and does not represent business cash flow generated during the period. Oceania calculates Underlying Profit by making the following adjustments to Net Profit after Tax: • Removing the change in fair value of investment properties (including right of use investment property assets) and any impairment or reversal of impairment of property, plant and equipment; • Removing any impairment of goodwill; • Removing any gains or loses from the sale or decommissioning of assets; • Removing any rental expenditure in relation to right of use investment property assets; • Adding back the Directors’ estimate of realised gains on resale of occupation right agreement units and care suites; • Adding back the Directors’ estimate of realised development margin on first sale of new ORA units or care suites following the development, or conversion of an existing care bed to a care site or conversion of a rental unit to an ORA Unit; • Adding back depreciation on care suites; and • Adding back the deferred taxation component of taxation expense so that only current tax expense is reflected. Resale Gain Directors’ estimate of realised gains on resales of ORA units and care suites (i.e. the difference between the incoming residents ORA licence payment and the ORA licence payment previously received from the outgoing resident) is calculated as the net cash flow received, and receivable, at the point that the ORA contract becomes unconditional and has either ‘cooled off’ or where the resident is in occupation at balance date. Development Margin The Directors’ estimate of realised development margin is calculated as the cash received, and receivable, in relation to the first sale of new ORA units and care suites, at the point that the ORA contract becomes unconditional and has either ‘cooled off’ or where the resident is in occupation at balance date, less the development costs associated with developing the ORA units and care suites. • Construction costs directly attributable to the relevant project, including any required infrastructure (e.g. roading) and amenities related to the units (e.g. landscaping) as well as any demolition and site preparation costs associated with the project. The costs are apportioned between the ORA units and care suites, in aggregate, using estimates provided by the project quantity surveyor. The construction costs for the individual ORA units or care suites sold are determined on a pro-rated basis using gross floor areas of the ORA units and care suites; • An apportionment of land valued based on the gross floor area of the ORA units and care suites developed. The value for Brownfield development land is the estimated fair value of land at the time a change of use occurred (from operating as a care facility or retirement village to a development site), as assessed by an external independent valuer. Greenfield development land is valued at historical cost; and • Capitalised interest costs to the date of project completion apportioned using the gross floor area of ORA units and care suites developed. Development costs do not include: • Construction, land (apportioned on a gross floor area basis) and interest costs associated with common areas and amenities or any operational or administrative areas. The Directors’ estimate of development margin for conversions of care beds to care suites and rental units to ORAs is calculated based on the difference between the ORA licence payment received on the settlement of sales of newly converted ORA units and care suites and the associated conversion costs. Conversion costs comprise: • In the case of conversion of care beds to care suites, the actual refurbishment costs incurred; and • In the case of conversions of rental units to ORA units, the actual refurbishment costs incurred and the fair value of the rental unit prior to conversion.
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49 15 Glossary ARCC Aged Residential Care Contract Care suite A room or studio certified for the provision of care by the Ministry of Health which has been licensed under an ORA. DMF Deferred Management Fees, charged under an ORA, of a maximum of 30% of the Occupation Licence Payment, which are deducted from the refund paid to the departing resident upon resale of the unit or care suite. These are in consideration for the right to use communal facilities etc over the entire length of stay. EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation FYXX 12 month audited financial year. ILU Independent living units (villas and apartments) licensed under an ORA. IP Investment Property. IPO Initial Public Offering (of shares in Oceania). NPAT Net Profit After Tax. ORA An occupation right agreement that confers on a resident the right to occupy a unit or care suite subject to certain terms and conditions set out in the agreement. PAC Premium accommodation charge on a care bed for accommodation provided above the mandated minimum. pcp20XX Prior corresponding periods. PPE Property, Plant and Equipment. PPGR Property Price Growth Rate. Resale Margin Resale gain, as included in the definition of underlying profit, divided by the ORA licence payment previously received from the outgoing resident. Unit Includes independent villas and apartments. WIP Work in progress.
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50 16 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 period and the impact that development sales and resales during the period had on occupancy as at the end of the period. 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 overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Oceania for the period ending 31 March 2025. Please refer to the Interim Financial Statements for the period ended 31 March 2025 that have been released along with this presentation. The information in this presentation does not purport to be a complete description of Oceania. In making investment decisions, investors must rely on their own examination of Oceania, including the merits and risks involved. Investors should consult their own legal, tax and/or financial advisors in connection with any acquisition of financial products. The information contained in this presentation 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 presentation, 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 presentation. This presentation is not a product disclosure statement, prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction. Receipt of this Document and/or attendance at this presentation constitutes acceptance of the terms set out above in this disclaimer.