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

<h2>Summerset (SUM) 1H21 Result – Initial Impressions</h2>
Summerset (SUM) reported a strong 1H21 result, in-line with our estimates on most P&amp;L metrics but ahead of our estimates on both cash generation and NTA per share, &nbsp;which should give some support today. Annuity EBITDA of NZ$45.3 m was up +45% on 1H20 and +2% ahead of our estimates. We view it as particularly pleasing that SUM covered its capex, including land acquisitions and maintenance, from new sales cash flow. &nbsp;Net Tangible Assets (NTA) per share increased by +19% versus 2H20 (December 2020) and now sits at NZ$7.07 ahead of our expectation. Even though we don’t view NTA as a key valuation driver, we view it as a clear net positive and a “reward” for SUM’s superior annuity EBITDA growth.
Key points of interest
<ul>
<li>Balance sheet/cash recovery: Strong – net debt reduced ~NZ$20m from FY20 and was ahead of our expectations driven by strong cash recovery in the half.</li>
<li>Build rate strong: SUM delivered have 284 retirement units and 63 care beds/memory care/care suites in the half – a record result. SUM also lifted its FY21 build rate guidance from between 500 to 550 units under ORA and 50 care beds in New Zealand to 550 to 600 units under ORA and 52 care beds, this is ahead of our expectations at the mid-point (FB; 500 ILUs, 50 care beds and 50 care suites).</li>
<li>Outlook commentary: Unsurprisingly vague, qualitative guidance at SUM's 2Q update was for a softer second half given product mix skew towards lower priced serviced apartments and care suites (longer sales lead times) – this was reiterated and is currently incorporated in our forecasts. FY21 new sales margin is expected to be in SUM’s medium term target range of 20% to 25% (FB; ~22%).</li>
<li>Australia update: SUM have announced the purchase of an additional site in Australia (taking its total to 4). This is SUM’s second Australian site purchase this year (guidance at FY20 was for three site acquisitions in CY21)</li>
<li>Dividend: &nbsp;9.9cps, up from 6cps last year and&nbsp; compares to FY20 dividend of 13cps.</li>
</ul>
Investor briefing – 11am NZT
New Zealand; 09 280 5280, Australia; 1 800 175 864. Passcode; 6017737
1H21 result summary
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 163.05pt; height: 13pt;"></td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
1H20 (adj for wage subsidy)
</td>
<td style="width: 70.85pt; height: 13pt;">
2H20
</td>
<td style="width: 70.85pt; height: 13pt;">
1H21
</td>
<td style="width: 70.85pt; height: 13pt;">
% chg vs 1H20
</td>
<td style="width: 70.85pt; height: 13pt;">
% chg vs 2H20
</td>
<td style="width: 70.85pt; height: 13pt;">
Forsyth Barr
</td>
<td style="width: 70.85pt; height: 13pt;">
Actual vs FB
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Care fees
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
53.3
</td>
<td style="width: 70.85pt; height: 13pt;">
58.3
</td>
<td style="width: 70.85pt; height: 13pt;">
59.5
</td>
<td style="width: 70.85pt; height: 13pt;">
12%
</td>
<td style="width: 70.85pt; height: 13pt;">
2%
</td>
<td style="width: 70.85pt; height: 13pt;">
58.1
</td>
<td style="width: 70.85pt; height: 13pt;">
2%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
DMF
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
28.7
</td>
<td style="width: 70.85pt; height: 13pt;">
32.0
</td>
<td style="width: 70.85pt; height: 13pt;">
35.4
</td>
<td style="width: 70.85pt; height: 13pt;">
23%
</td>
<td style="width: 70.85pt; height: 13pt;">
10%
</td>
<td style="width: 70.85pt; height: 13pt;">
34.0
</td>
<td style="width: 70.85pt; height: 13pt;">
4%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Resale gains
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
15.7
</td>
<td style="width: 70.85pt; height: 13pt;">
30.4
</td>
<td style="width: 70.85pt; height: 13pt;">
29.4
</td>
<td style="width: 70.85pt; height: 13pt;">
87%
</td>
<td style="width: 70.85pt; height: 13pt;">
-3%
</td>
<td style="width: 70.85pt; height: 13pt;">
31.4
</td>
<td style="width: 70.85pt; height: 13pt;">
-6%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
New sales gains
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
17.4
</td>
<td style="width: 70.85pt; height: 13pt;">
30.8
</td>
<td style="width: 70.85pt; height: 13pt;">
40.7
</td>
<td style="width: 70.85pt; height: 13pt;">
134%
</td>
<td style="width: 70.85pt; height: 13pt;">
32%
</td>
<td style="width: 70.85pt; height: 13pt;">
42.3
</td>
<td style="width: 70.85pt; height: 13pt;">
-4%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Total revenue
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
115.1
</td>
<td style="width: 70.85pt; height: 13pt;">
151.6
</td>
<td style="width: 70.85pt; height: 13pt;">
165.0
</td>
<td style="width: 70.85pt; height: 13pt;">
43%
</td>
<td style="width: 70.85pt; height: 13pt;">
9%
</td>
<td style="width: 70.85pt; height: 13pt;">
165.7
</td>
<td style="width: 70.85pt; height: 13pt;">
0%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Total costs
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
66.4
</td>
<td style="width: 70.85pt; height: 13pt;">
80.4
</td>
<td style="width: 70.85pt; height: 13pt;">
79.0
</td>
<td style="width: 70.85pt; height: 13pt;">
19%
</td>
<td style="width: 70.85pt; height: 13pt;">
-2%
</td>
<td style="width: 70.85pt; height: 13pt;">
79.1
</td>
<td style="width: 70.85pt; height: 13pt;">
0%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
EBITDA
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
48.7
</td>
<td style="width: 70.85pt; height: 13pt;">
71.2
</td>
<td style="width: 70.85pt; height: 13pt;">
86.0
</td>
<td style="width: 70.85pt; height: 13pt;">
77%
</td>
<td style="width: 70.85pt; height: 13pt;">
21%
</td>
<td style="width: 70.85pt; height: 13pt;">
86.6
</td>
<td style="width: 70.85pt; height: 13pt;">
-1%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Depreciation &amp; amortisation
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
3.9
</td>
<td style="width: 70.85pt; height: 13pt;">
4.2
</td>
<td style="width: 70.85pt; height: 13pt;">
5.2
</td>
<td style="width: 70.85pt; height: 13pt;">
32%
</td>
<td style="width: 70.85pt; height: 13pt;">
25%
</td>
<td style="width: 70.85pt; height: 13pt;">
4.6
</td>
<td style="width: 70.85pt; height: 13pt;">
13%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
EBIT
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
44.7
</td>
<td style="width: 70.85pt; height: 13pt;">
67.0
</td>
<td style="width: 70.85pt; height: 13pt;">
80.8
</td>
<td style="width: 70.85pt; height: 13pt;">
81%
</td>
<td style="width: 70.85pt; height: 13pt;">
21%
</td>
<td style="width: 70.85pt; height: 13pt;">
82.0
</td>
<td style="width: 70.85pt; height: 13pt;">
-1%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Net interest
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
8.3
</td>
<td style="width: 70.85pt; height: 13pt;">
5.1
</td>
<td style="width: 70.85pt; height: 13pt;">
5.3
</td>
<td style="width: 70.85pt; height: 13pt;">
-36%
</td>
<td style="width: 70.85pt; height: 13pt;">
3%
</td>
<td style="width: 70.85pt; height: 13pt;">
9.1
</td>
<td style="width: 70.85pt; height: 13pt;">
-41%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Underlying profit
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
36.5
</td>
<td style="width: 70.85pt; height: 13pt;">
61.9
</td>
<td style="width: 70.85pt; height: 13pt;">
75.5
</td>
<td style="width: 70.85pt; height: 13pt;">
107%
</td>
<td style="width: 70.85pt; height: 13pt;">
22%
</td>
<td style="width: 70.85pt; height: 13pt;">
72.9
</td>
<td style="width: 70.85pt; height: 13pt;">
4%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;"></td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Annuity EBITDA
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
31.3
</td>
<td style="width: 70.85pt; height: 13pt;">
40.4
</td>
<td style="width: 70.85pt; height: 13pt;">
45.3
</td>
<td style="width: 70.85pt; height: 13pt;">
45%
</td>
<td style="width: 70.85pt; height: 13pt;">
12%
</td>
<td style="width: 70.85pt; height: 13pt;">
44.3
</td>
<td style="width: 70.85pt; height: 13pt;">
2%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;"></td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
EPS (cents)
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
16.2
</td>
<td style="width: 70.85pt; height: 13pt;">
27.5
</td>
<td style="width: 70.85pt; height: 13pt;">
33.6
</td>
<td style="width: 70.85pt; height: 13pt;">
107%
</td>
<td style="width: 70.85pt; height: 13pt;">
22%
</td>
<td style="width: 70.85pt; height: 13pt;">
32.4
</td>
<td style="width: 70.85pt; height: 13pt;">
4%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
DPS (cents)
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
6.0
</td>
<td style="width: 70.85pt; height: 13pt;">
7.0
</td>
<td style="width: 70.85pt; height: 13pt;">
9.9
</td>
<td style="width: 70.85pt; height: 13pt;">
65%
</td>
<td style="width: 70.85pt; height: 13pt;">
41%
</td>
<td style="width: 70.85pt; height: 13pt;">
9.0
</td>
<td style="width: 70.85pt; height: 13pt;">
10%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;"></td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Operating cash flow
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
92.8
</td>
<td style="width: 70.85pt; height: 13pt;">
177.5
</td>
<td style="width: 70.85pt; height: 13pt;">
229.7
</td>
<td style="width: 70.85pt; height: 13pt;">
148%
</td>
<td style="width: 70.85pt; height: 13pt;">
29%
</td>
<td style="width: 70.85pt; height: 13pt;">
198.8
</td>
<td style="width: 70.85pt; height: 13pt;">
16%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Investing cash flow
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
-123.5
</td>
<td style="width: 70.85pt; height: 13pt;">
-195.3
</td>
<td style="width: 70.85pt; height: 13pt;">
-192.4
</td>
<td style="width: 70.85pt; height: 13pt;">
56%
</td>
<td style="width: 70.85pt; height: 13pt;">
-2%
</td>
<td style="width: 70.85pt; height: 13pt;">
-179.0
</td>
<td style="width: 70.85pt; height: 13pt;">
7%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Net debt
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
641.9
</td>
<td style="width: 70.85pt; height: 13pt;">
671.3
</td>
<td style="width: 70.85pt; height: 13pt;">
651.5
</td>
<td style="width: 70.85pt; height: 13pt;">
1%
</td>
<td style="width: 70.85pt; height: 13pt;">
-3%
</td>
<td style="width: 70.85pt; height: 13pt;">
671.7
</td>
<td style="width: 70.85pt; height: 13pt;">
-3%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
NTA per share
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
4.91
</td>
<td style="width: 70.85pt; height: 13pt;">
5.94
</td>
<td style="width: 70.85pt; height: 13pt;">
7.07
</td>
<td style="width: 70.85pt; height: 13pt;">
44%
</td>
<td style="width: 70.85pt; height: 13pt;">
19%
</td>
<td style="width: 70.85pt; height: 13pt;">
6.3
</td>
<td style="width: 70.85pt; height: 13pt;">
12%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;"></td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Sales - new units
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
128
</td>
<td style="width: 70.85pt; height: 13pt;">
276
</td>
<td style="width: 70.85pt; height: 13pt;">
302
</td>
<td style="width: 70.85pt; height: 13pt;">
136%
</td>
<td style="width: 70.85pt; height: 13pt;">
9%
</td>
<td style="width: 70.85pt; height: 13pt;">
302
</td>
<td style="width: 70.85pt; height: 13pt;">
0%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
New sales margin (%)
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
22%
</td>
<td style="width: 70.85pt; height: 13pt;">
18%
</td>
<td style="width: 70.85pt; height: 13pt;">
22%
</td>
<td style="width: 70.85pt; height: 13pt;">
-1%
</td>
<td style="width: 70.85pt; height: 13pt;">
3%
</td>
<td style="width: 70.85pt; height: 13pt;">
22%
</td>
<td style="width: 70.85pt; height: 13pt;">
0%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Sales - resold units
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
136
</td>
<td style="width: 70.85pt; height: 13pt;">
245
</td>
<td style="width: 70.85pt; height: 13pt;">
243
</td>
<td style="width: 70.85pt; height: 13pt;">
79%
</td>
<td style="width: 70.85pt; height: 13pt;">
-1%
</td>
<td style="width: 70.85pt; height: 13pt;">
243
</td>
<td style="width: 70.85pt; height: 13pt;">
0%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Resales margin (%)
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
25%
</td>
<td style="width: 70.85pt; height: 13pt;">
27%
</td>
<td style="width: 70.85pt; height: 13pt;">
23%
</td>
<td style="width: 70.85pt; height: 13pt;">
-2%
</td>
<td style="width: 70.85pt; height: 13pt;">
-3%
</td>
<td style="width: 70.85pt; height: 13pt;">
27%
</td>
<td style="width: 70.85pt; height: 13pt;">
-4%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;"></td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
<td style="width: 70.85pt; height: 13pt;">
&nbsp;
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Average unit price - new sales (NZ$000's)
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
609
</td>
<td style="width: 70.85pt; height: 13pt;">
607
</td>
<td style="width: 70.85pt; height: 13pt;">
623
</td>
<td style="width: 70.85pt; height: 13pt;">
2%
</td>
<td style="width: 70.85pt; height: 13pt;">
3%
</td>
<td style="width: 70.85pt; height: 13pt;">
637
</td>
<td style="width: 70.85pt; height: 13pt;">
-2%
</td>
</tr>
<tr>
<td style="width: 163.05pt; height: 13pt;">
Average unit price - resales (NZ$000's)
</td>
<td style="width: 79.55pt; height: 13pt;"></td>
<td style="width: 70.85pt; height: 13pt;">
457
</td>
<td style="width: 70.85pt; height: 13pt;">
468
</td>
<td style="width: 70.85pt; height: 13pt;">
413
</td>
<td style="width: 70.85pt; height: 13pt;">
-10%
</td>
<td style="width: 70.85pt; height: 13pt;">
-12%
</td>
<td style="width: 70.85pt; height: 13pt;">
478
</td>
<td style="width: 70.85pt; height: 13pt;">
-13%
</td>
</tr>
</tbody>
</table>
&nbsp;Source: Forsyth Barr analysis, Company reports

Summerset (SUM) 1H21 Result – Initial Impressions
Summerset (SUM) reported a strong 1H21 result, in-line with our estimates on most P&amp;L metrics but ahead of our estimates on both cash generation and NTA per share, &nbsp;which should give some support today. Annuity EBITDA of NZ$45.3 m was up +45% on 1H20 and +2% ahead of our estimates. We view it as particularly pleasing that SUM covered its capex, including land acquisitions and maintenance, from new sales cash flow. &nbsp;Net Tangible Assets (NTA) per share increased by +19% versus 2H20 (December 2020) and now sits at NZ$7.07 ahead of our expectation. Even though we don’t view NTA as a key valuation driver, we view it as a clear net positive and a “reward” for SUM’s superior annuity EBITDA growth.
Key points of interest

Balance sheet/cash recovery: Strong – net debt reduced ~NZ$20m from FY20 and was ahead of our expectations driven by strong cash recovery in the half.
Build rate strong: SUM delivered have 284 retirement units and 63 care beds/memory care/care suites in the half – a record result. SUM also lifted its FY21 build rate guidance from between 500 to 550 units under ORA and 50 care beds in New Zealand to 550 to 600 units under ORA and 52 care beds, this is ahead of our expectations at the mid-point (FB; 500 ILUs, 50 care beds and 50 care suites).
Outlook commentary: Unsurprisingly vague, qualitative guidance at SUM's 2Q update was for a softer second half given product mix skew towards lower priced serviced apartments and care suites (longer sales lead times) – this was reiterated and is currently incorporated in our forecasts. FY21 new sales margin is expected to be in SUM’s medium term target range of 20% to 25% (FB; ~22%).
Australia update: SUM have announced the purchase of an additional site in Australia (taking its total to 4). This is SUM’s second Australian site purchase this year (guidance at FY20 was for three site acquisitions in CY21)
Dividend: &nbsp;9.9cps, up from 6cps last year and&nbsp; compares to FY20 dividend of 13cps.

Investor briefing – 11am NZT
New Zealand; 09 280 5280, Australia; 1 800 175 864. Passcode; 6017737
1H21 result summary






1H20 (adj for wage subsidy)


2H20


1H21


% chg vs 1H20


% chg vs 2H20


Forsyth Barr


Actual vs FB




Care fees



53.3


58.3


59.5


12%


2%


58.1


2%




DMF



28.7


32.0


35.4


23%


10%


34.0


4%




Resale gains



15.7


30.4


29.4


87%


-3%


31.4


-6%




New sales gains



17.4


30.8


40.7


134%


32%


42.3


-4%




Total revenue



115.1


151.6


165.0


43%


9%


165.7


0%




Total costs



66.4


80.4


79.0


19%


-2%


79.1


0%




EBITDA



48.7


71.2


86.0


77%


21%


86.6


-1%




Depreciation &amp; amortisation



3.9


4.2


5.2


32%


25%


4.6


13%




EBIT



44.7


67.0


80.8


81%


21%


82.0


-1%




Net interest



8.3


5.1


5.3


-36%


3%


9.1


-41%




Underlying profit



36.5


61.9


75.5


107%


22%


72.9


4%









&nbsp;


&nbsp;


&nbsp;


&nbsp;




Annuity EBITDA



31.3


40.4


45.3


45%


12%


44.3


2%









&nbsp;


&nbsp;


&nbsp;


&nbsp;




EPS (cents)



16.2


27.5


33.6


107%


22%


32.4


4%




DPS (cents)



6.0


7.0


9.9


65%


41%


9.0


10%









&nbsp;


&nbsp;


&nbsp;


&nbsp;




Operating cash flow



92.8


177.5


229.7


148%


29%


198.8


16%




Investing cash flow



-123.5


-195.3


-192.4


56%


-2%


-179.0


7%




Net debt



641.9


671.3


651.5


1%


-3%


671.7


-3%




NTA per share



4.91


5.94


7.07


44%


19%


6.3


12%









&nbsp;


&nbsp;


&nbsp;


&nbsp;




Sales - new units



128


276


302


136%


9%


302


0%




New sales margin (%)



22%


18%


22%


-1%


3%


22%


0%




Sales - resold units



136


245


243


79%


-1%


243


0%




Resales margin (%)



25%


27%


23%


-2%


-3%


27%


-4%









&nbsp;


&nbsp;


&nbsp;


&nbsp;




Average unit price - new sales (NZ$000's)



609


607


623


2%


3%


637


-2%




Average unit price - resales (NZ$000's)



457


468


413


-10%


-12%


478


-13%




&nbsp;Source: Forsyth Barr analysis, Company reports

Summerset (SUM): 1H21 Result – Initial Impressions