New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Summerset Group Holdings / Equity Bottom-Up

<ul><li>Summerset (SUM) reported an in-line 1H24 annuity EBITDA result.</li><li>In the result, SUM: (1) gave new earnings breakdowns, which showed stronger Village earnings and softer Care earnings than we expected, and (2) cited a ~NZ$15m cost-out programme.</li><li>The strong cost control contributed to SUM delivering ~+20% growth in annuity EPS over one of the toughest periods on record, an impressive result. SUM also delivered higher-than-expected dividends, suggesting confidence in continued strong cash recovery of development capex. SUM acknowledged slightly slower than hoped for sales at its flagship St John development; it needs to execute well over the coming 12 months.</li></ul>

Summerset (SUM) reported an in-line 1H24 annuity EBITDA result.In the result, SUM: (1) gave new earnings breakdowns, which showed stronger Village earnings and softer Care earnings than we expected, and (2) cited a ~NZ$15m cost-out programme.The strong cost control contributed to SUM delivering ~+20% growth in annuity EPS over one of the toughest periods on record, an impressive result. SUM also delivered higher-than-expected dividends, suggesting confidence in continued strong cash recovery of development capex. SUM acknowledged slightly slower than hoped for sales at its flagship St John development; it needs to execute well over the coming 12 months.

Summerset Group - 1H24 Result — New Metrics, New Valuation