1. 1 Retirement Living Attracting Investment

2. Our experience in Retirement & Aged Care… We have been active in the Retirement Village and Aged Care industries since 1985. Through our subsidiaries we have: Owned 14 and operated 45 retirement villages throughout Australia; Been one of the largest retirement community consultants in the USA; Assisted in the development of Retirement Village legislation in both SA and QLD; and Consulted with the Commonwealth Government on retirement village taxation issues. We remain a leading lender to the industry and maintain active involvement and support of key bodies. Our Vision To be a long term industry partner, consistently delivering financial solutions to the sector to build sustainable communities.

3. 3 WHAT IS YOUR PITCH TO INVESTORS/BANKERS Market segmentation has been occurring for some time; Integrated service model - NZ now seen as a shining example based on share market performance. Lifestyle Communities. Aged Care within a Retirement Village setting.

4. RELIABILITY OF PROFITS (STATUTORY & CASH) With portfolio’s, investors are looking for reduced volatility in earnings: Head line results impacted by market to market movements in asset values & derivatives. A focus has shifted over the years to underlying cash performance. Integrated developments where services are provided to Retirement residents tend to attract a greater level of needs based residents with a greater level of motivation to make the move. For various groups, this has assisted in reducing first time sale & resale performance through residential property market cycles. It is argued that lifestyle developments are more susceptible to property market cycles. Affordability the key here in order to increase motivation for potential residents to make the move.

5. GROWTH Investors are looking for groups who can grow organically: What history can you demonstrate to substantiate forecasts. In NZ, improved growth versus peers has directly correlated to improved share price performance versus the companies NTA (example on next slide). Is there an established pipeline of projects ? Are they located appropriately and acquired based on the right criteria. We have seen private equity enter the lifestyle segment in Australia where the operator had an excellent track record of growth execution and clear market strategy that it stuck to (no assets/acquisitions that didn’t fit the core target segment).

6. GROWTH (CONT) October 2013 New Zealand Listed Sector: Price / NTAILU GrowthILU's Period of Growth Aged care Growth Ryman 4.8x13%3,80010 years40% Summerset 2.5x13%1,7505 years21% Metlifecare 0.9x3%3,8001 year9% Source: Quadrant Presentation April 2014

7. SCALE / REGULATORY RISK There will be a minimum entry level that investors target, that is different between the private & listed sectors. The business requires appropriate empowerment of decision making through the management structure in order to ensure residents issues are resolved commercially & quickly. Many investors acknowledge there is reduced regulatory risk under the retirement Villages Acts versus Aged Care Act. This provides flexibility in packaging up home care services versus Aged Care.

8. COMPLEXITY A simple structure is preferred by investors. Bring skills in-house where possible and remove profit leakage through the value chain where possible. Consistent approach to project & operational management as well as acquisitions. Have a clear target market and offering and stick to your knitting.

9. GEOGRAPHICAL LOCATION Investors/Banks looking for assets located in Metropolitan areas and larger regional centres throughout Australia, where there is a need for retirement accommodation. Things to consider when looking at a needs analysis include: Census Data (Percentage of people in the area over 65) – over census periods, are % and number of people over 65 years increasing or decreasing. Market Penetration rate (usually about 4-5%, sometimes higher). Analysis of competitor supply and affordability. Median House Prices in the area (ideally sale price should be 75% of the median house price). Liquidity of local market and volume of sales to be analysed. Look at the type of homes selling for 65+ years.

10. DUE DILIGENCE Growth in average value of ILU’s – versus valuer assumption. Average Age of Residents (trend- increasing is good, length of stay is less). Remember people are living longer now also, taken into account in valuer model from ABS Life Tables). For mature villages reported turnovers now back to 8-10% range for ILU’s, 12-14% SA’s). Future capital work requirements, are they adequately funded going forwards and who by ? Is there obsolescence risk? Buy back risk – is there a contractual obligation for the operator to purchase a dwelling if not resold within a specified period of time ? How would this be funded?

11. CORPORATE GOVERNANCE If there an appropriate structure in place (i.e. independent Chairman, Directors with appropriate qualifications). Are appropriate reporting systems in place to monitor performance. Are there appropriate risk management frameworks & policies.

12. PROPERTY MARKET TRENDS

13. PROPERTY MARKET TRENDS (CONT) Sydney & Melbourne markets have rebounded strongly and this has seen improvement in performance of Villages. Diversification helps give we now have multi speed economy.