Annual Meeting – Chair’s Address

ANNUAL MEETING - CHAIR'S ADDRESS 28 AUGUST 2018 It has been another successful year, with Oceania Healthcare exceeding forecast profit as well as making great progress with the execution of our strategy to create long-term value. We are well underway with the build out of our brownfields development pipeline, with Meadowbank Stage Three and 25 new villas at Elmwood (both here in Auckland) completed in the past year, as well as new villas in Nelson and in Taupo. All of these projects were delivered on time and on budget. We have five major construction projects underway at the moment, at The BayView (previously called Melrose, in Tauranga) with Stage One being on track for completion in October 2018, Stage Four development at Meadowbank, due to complete by May 2019, The Sands (in Browns Bay, Auckland), which is also scheduled to be completed in May 2019,at Trevellyn in Hamilton where Stage One is well underway, and at Green Gables in Nelson, where we have just commenced our new development. Earl will take you through the details of each of these projects shortly, but with all this development going on, I think it is worthwhile pausing for a moment and reflecting on the fact that we are effectively undertaking the "once in every 50 years" redevelopment of sites that have been acquired over a long period of time. It is a fantastic opportunity to properly consider the overall design of these amazing sites, such as The BayView and Trevellyn, and to maximise the significant potential at these sites, for the benefit of future residents. Most of the sites that are being redeveloped are located in premium locations close to major centres, and the quality of the end product is very high as a consequence of this. In planning the design of our new developments, our team is very focused on anticipating future requirements and trends in aged care. We are looking not only at what the requirements of our current residents are, but we are also looking ahead and thinking about how to provide our service delivery to meet the desires of future residents. These future residents are likely to demand premium services and expect to have a choice in the range of hospitality services available to them. We are working hard to build quality products and deliver exceptional services that exceed the expectations of our residents. We have a clear growth strategy in the aged care sector. Once the current pipeline of developments has been completed and our new care beds are sold as care suites under the ORA model or have premium accommodation charges attached to them, there will be sustainable earnings in the care model. The balance sheet will also be strong enough to enable the acquisition of new greenfields or development sites. Over the last year, our Directors have visited many of our sites around the country. A number of our Board Meetings are held at sites, where the Directors get the opportunity to speak with our Business and Care Managers and other staff. It is great to see the enthusiasm, energy and passion of our staff and the commitment that they have to providing top quality care to our residents. In addition, the Directors regularly visit construction sites around the country (both individually and collectively as a Board) to observe progress on the developments. We were pleased to declare and pay a final dividend of 2.6 cents per share, which takes full year dividends (non-imputed) to 4.7 cents per share, which represents 55% of Underlying Net Profit after Tax. Looking ahead, we will be releasing our financial results for the six months to 30 November 2018 in late January 2019 and we will provide a further update on progress with our developments at that time. Thank you once again for attending this afternoon and I'd now like to hand over to Earl Gasparich, our CEO, who will present our operating results and further detail on how we are delivering growth this coming year. ENDS End CA:00322928 For:OCA Type:MEETING Time:2018-08-28 12:46:55