mmFINANCIAL REPORT

2014/2015

1

Financials

Financials

Amana Living has a culture of looking for better ways to do things. This has paid off in a surplus this year of $6.5 million, which will be invested in enriching the lives of residents and clients, funding our strategic projects and minimising the cost of borrowings.

Government subsidies are our main source of income and rose 19% this year, reflecting growth in demand for home care services, the higher care needs of residents and the new transition care service that commenced in July 2014. These gains were balanced by rising staff costs (11%) to meet the increased demand.

Increased cash holdings resulted from sale of units at Amana Living Treendale, operational efficiencies and legislative changes that enable us to receive higher entry payments for top-level residential care centres.

Amana Living is now in a very strong financial position, with reduced debt. The most significant liabilities are refundable accommodation deposits and resident entry contributions.

OVERVIEW

WHAT WE EARN AND SPEND

What we earned

Government subsidies

Other income

Rent, fees and charges

Income of a capital nature19%

4%9%

67%

What we spent

Employee benefits

Expenses related to assets

Catering and food supplies

Other expenses

Maintenance and repairs

6%

5%

8%

11%

71%

Financials

2 Financials

3

WHAT WE OWN AND OWE

What we owe

Trade and other payables

Resident accommodation bonds

Provisions

Resident entry contributions

Borrowings

Other liabilities

9%

24%6%

7%1%

53%

What we own

Cash and deposits

Property, plant and equipment

Debtors

Investment property

Financial assets

Other assets

3% 0% 6% 6%10%

76%

Financials

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FINANCIAL REPORTS

Deloitte Touche Tohmatsu ABN 74 490 121 060

Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au

Report of the Independent Auditor on the Summary Financial Statements to the Members of Amana Living Incorporated

The accompanying summary financial statements prepared by Amana Living Incorporated, which comprises the summary balance sheet as at 30 June 2015 and the summary statement of profit or loss and other comprehensive income for the year then ended, is derived from the audited general purpose financial report of Amana Living Incorporated (the Association) and special purpose financial report of Amana Living Anglican Foundation Incorporated (the Subsidiary) for the year ended 30 June 2015. We expressed an unmodified audit opinion on the Association’s financial report in our report dated 23 September 2015 and a qualified audit opinion on the Subsidiary’s financial report in our report dated 23 September 2015.

The summary financial statements do not contain all the disclosures required by the Australian Accounting Standards to the extent described in Note 1 of the financial report of the Association and the Subsidiary. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial reports of the Association and the Subsidiary.

Board of Directors’ Responsibility for the Summary Financial Statements

The Board of Directors are responsible for the preparation of the summary financial statements in accordance with the basis described in the note to the summary financial statements.

Auditor’s Responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Auditing Standard ASA 810 Engagements to Report on Summary Financial Statements.

Opinion

In our opinion, the summary financial statements derived from the audited financial report of the Association and the Subsidiary for the year ended 30 June 2015 are consistent, in all material respects, with those audited financial reports, in accordance with the basis described in note to the summary financial statements.

Basis of Accounting and Restriction on Distribution and Use

Without modifying our opinion, we draw attention to the “The Board of Directors’ Responsibility for the Summary Financial Statements” paragraph above which states that the summary financial statements have been prepared in accordance with the basis described in note to the summary financial statements. The summary financial statements have been prepared to assist Amana Living Incorporated to meet the financial reporting requirements of the Association.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

As a result, the summary financial statements may not be suitable for another purpose. Our report is intended solely for the Members of Amana Living Incorporated and should not be distributed to or used by parties other than the Members of Amana Living Incorporated.

DELOITTE TOUCHE TOHMATSU

Peter Rupp Partner Chartered Accountants Perth, 25 September 2015

Deloitte Touche Tohmatsu ABN 74 490 121 060

Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au

Report of the Independent Auditor on the Summary Financial Statements to the Members of Amana Living Incorporated

The accompanying summary financial statements prepared by Amana Living Incorporated, which comprises the summary balance sheet as at 30 June 2015 and the summary statement of profit or loss and other comprehensive income for the year then ended, is derived from the audited general purpose financial report of Amana Living Incorporated (the Association) and special purpose financial report of Amana Living Anglican Foundation Incorporated (the Subsidiary) for the year ended 30 June 2015. We expressed an unmodified audit opinion on the Association’s financial report in our report dated 23 September 2015 and a qualified audit opinion on the Subsidiary’s financial report in our report dated 23 September 2015.

The summary financial statements do not contain all the disclosures required by the Australian Accounting Standards to the extent described in Note 1 of the financial report of the Association and the Subsidiary. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial reports of the Association and the Subsidiary.

Board of Directors’ Responsibility for the Summary Financial Statements

The Board of Directors are responsible for the preparation of the summary financial statements in accordance with the basis described in the note to the summary financial statements.

Auditor’s Responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Auditing Standard ASA 810 Engagements to Report on Summary Financial Statements.

Opinion

In our opinion, the summary financial statements derived from the audited financial report of the Association and the Subsidiary for the year ended 30 June 2015 are consistent, in all material respects, with those audited financial reports, in accordance with the basis described in note to the summary financial statements.

Basis of Accounting and Restriction on Distribution and Use

Without modifying our opinion, we draw attention to the “The Board of Directors’ Responsibility for the Summary Financial Statements” paragraph above which states that the summary financial statements have been prepared in accordance with the basis described in note to the summary financial statements. The summary financial statements have been prepared to assist Amana Living Incorporated to meet the financial reporting requirements of the Association.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

Financials

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SUMMARY OF CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015

2015 2014

$’000s Consolidated ALI ALAF Consolidated ALI ALAF

Income

Revenue 99,244 99,147 97 86,860 86,644 216

Investment revenue 1,639 1,600 39 2,015 1,975 40

Other gain and losses 716 716 - 324 316 8

Revenue from ordinary activities 101,599 101,463 136 89,199 88,935 264

ExpenditureEmployee benefits 67,103 67,103 - 60,148 60,148 -

Catering and food supplies 5,319 5,319 - 5,340 5,340 -

Maintenance and repairs 4,982 4,982 - 4,520 4,520 -

Depreciation 7,432 7,432 - 6,857 6,857 -

Other expenses from ordinary activities 10,244 10,021 223 9,341 9,147 194

Expenses from ordinary activities 95,080 94,857 223 86,206 86,012 194

Profit/(loss) from ordinary activities 6,519 6,606 (87) 2,993 2,923 70

Total profit/(loss) for the year 6,519 6,606 (87) 2,993 2,923 70

Other comprehensive incomeNet value gain on available-for-sale financial assets

(133) (133) - 832 832 -

Transfer from specific purpose donation (1) (1) - - - -

Total comprehensive income for the year

6,385 6,472 (87) 3,825 3,755 70

2015 2014

$’000s Consolidated ALI ALAF Consolidated ALI ALAF

Current assets 31,272 30,097 1,299 22,449 21,187 1,462

Non-current assets 155,607 155,607 - 150,058 150,058 -

Total assets 186,879 185,704 1,299 172,507 171,245 1,462

Current liabilities 95,379 95,439 124 86,557 86,617 200

Non-current liabilities 93 93 - 455 455 -

Total liabilities 95,472 95,532 124 87,012 87,072 200

Net assets 91,407 90,172 1,175 85,495 84,173 1,262

Total accumulated funds 91,407 90,172 1,175 85,495 84,173 1,262

SUMMARY OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015

Financials

Amana Living Corporate Office541 Hay Street, Subiaco WA 6008

PO Box 933, Subiaco WA 6904Tel: 1300 26 26 26Fax: (08) 9388 3142

Website: www.amanaliving.com.auABN 45 582 438 433