Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — FY2016 Earnings Presentation
40 slides from Ryman Healthcare's earnings presentation, May 20, 2016
Slide 1: Ryman Healthcare Full year results
Ryman Healthcare Full year results 20 May 2016
Slide 2: Slide 2
Slide 3: Full year highlights
Full year highlights Underlying profit up 16% to $158 million Reported profit up 26% to $305 million Full year dividend lifted to 15.8 cents per share Record build, four villages opening A big year for innovation
Slide 4: Growing dividend stream
Growing dividend stream 16.0 14.0 12.0 10.0 cents per share 8.0 6.0 4.0 2.0 0.0 2002 2004 2006 2008 2010 2012 2014 2016 (adjusted for share split)
Slide 5: Slide 5
Slide 6: Care Residents Survey February 2016
Care Residents Survey ruary 2016 Grace Joel Rank Net Promoter Score: nla (max. range -100% co 100%) Average Score: 4.33 40.44 #1 lo (our of 5) of 15 Swing I'm happy with: Neutra Agree Agree ..the staff care for me > -» ...the way staff communicate with me & a ...the laundry service ‘ *
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y te, “ -“ = ~ - “ “4 “ey 7 N55 C ry an %
Slide 8: 14 years of underlying profit growth
14 years of underlying profit growth 160 140 120 100 $ million 80 60 40 20 0 2002 2004 2006 2008 2010 2012 2014 2016
Slide 9: Record operating cashflows
Record operating cashflows 350 300 250 200 $ million 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 10: Build programme stepping up
Build programme stepping up 1600 1400 1200 1000 Units/Beds 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 New Zealand Australia Build Target
Slide 11: Key building activity – FY17
Key building activity — FY17 RYMAN WRALTHCARE
Slide 12: Development margin
Development margin 35% 30% 25% Target range 20% 15% 10% 5% 0% 2012 2013 2014 2015 2016
Slide 13: Resales bank
Resales bank 600 500 400 $ millions 300 200 100 0 2014 2015 2016 New Zealand Melbourne
Slide 14: Sales pricing vs median house price
Sales pricing vs median house price 1400 1200 1000 $ thousands 800 600 400 200 0 Melbourne Auckland Median house price - area Ryman - Independent Ryman - Serviced
Slide 15: Total assets have doubled in 4 years
Total assets have doubled in 4 years 4.5 4.0 3.5 3.0 2.5 $ billions 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 2016
Slide 16: Building higher value villages
Building higher value villages Rest of NZ Auckland Melbourne 0 50 100 150 200 250 Indicative capital proceeds - $ million Retirement Unit Accommodation Bonds
Slide 17: Long term capital efficiency
Long term capital efficiency $25m raised at IPO in 1999 Invested $2.1bn in portfolio since With no fresh capital Dividends of $500m paid since float Self-funded growth Conservative bank debt
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Slide 19: It's all about people
€ em 2° A RYMAN eX. wel S It's all about people . fas ie j o4
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Slide 21: Slide 21
Slide 22: Brandon Park, Melbourne
Brandon Park, Melbourne
Slide 23: Village rollout - Melbourne
Village rollout - Melbourne RYMAN WRALTHCARE, Financial Year 2012) 2013 2014 2015 2016 2017 2018 2019 2020 punwood en — Site 7
Slide 24: Brandon Park, Melbourne
oe y Brandon Park, Melbourne
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Slide 26: Slide 26
Slide 27: Appendices
Appendices RYMAN
Slide 28: Appendix 1: Reported profit
Appendix 1: Reported profit Underlying Profit $157.7m Taxation Expense $0.0m Unrealised revaluations of RV units +$151.6m Deferred tax expense -$3.9m Reported Net Profit $305.4m
Slide 29: Appendix 2: Statistics
Appendix 2: Statistics Sales of Occupation Rights Full year Full year Mar-16 Mar-15 Existing units Independent 297 300 Serviced 393 330 690 630 New units Independent 400 407 Serviced 118 138 518 545 Portfolio and Build Rate Retirement village units Independent 3,688 3,300 Serviced 1,699 1,492 5,387
Slide 30: Appendix 3: Margin
Appendix 3: Margin Full year Full year Mar-16 Mar-15 New Sales $000s $000s Reference Realised Fair Value movement – new RV units (Note 3) 62,396 61,597 Sale of occupation rights – new RV units (Key statistics) 226,215 249,096 Gross development margin % 28% 25% Resales Realised Fair Value movement –
Slide 31: Appendix 4: Asset base
Appendix 4: Asset base Hospital Special Care Resthome Serviced Independent Total Woodcote Christchurch - - 49 7 18 74 Essie Summers Christchurch 41 24 30 58 22 175 Margaret Stoddart Christchurch - - 41 25 20 86 Frances Hodgkins Dunedin - - 51 32 42 125 Rowena Jackson Invercargill 70 26 61 46 103 306
Slide 32: Appendix 5: Land bank
Appendix 5: Land bank Hospital Special Care Resthome Serviced Independent Total (as at 31 March 2016) Existing Sites Princess Alexandra Napier - - - - 2 2 Jean Sandel (extn) New Plymouth - - - - 69 69 Kiri Te Kanawa Gisborne - - - 32 20 52 Bob Scott Wellington - - - - 198 198 Birkenhead Auckland - -
Slide 33: Appendix 6: Cash management fees
Appendix 6: Cash management fees Full year Full year Mar-16 Mar-15 $000s $000s Reference Accrued Management Fees – Opening (Note 4) and PY financials 191,679 163,327 Less: Accrued Management Fees – Closing (Note 4) -227,154 -191,679 Movement in Accrued Management Fees -35,475 -28,352 Plus: DMF incom
Slide 34: Appendix 7: Units and beds built – FY16
Appendix 7: Units and beds built – FY16 Bob Scott Bert Sutcliffe Possum Bourne Charles Upham Weary Dunlop Bruce McLaren Jean Sandel Charles Fleming Kiri Te Kanawa - 50 100 150 200 250 300 Units Beds
Slide 35: Appendix 8: Retirement Village Portfolio
Appendix 8: Retirement Village Portfolio 10000 8000 6000 Units/Beds 4000 2000 0 2006 2008 2010 2012 2014 2016 Serviced Apartments & Care Beds Independent Units
Slide 36: Appendix 9: Investing cash flows
Appendix 9: Investing cash flows 400 350 300 250 $ millions 200 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 37: Appendix 10: Occupation rights sales volume
Appendix 10: Occupation rights sales volume 1400 1200 1000 800 Volume 600 400 200 0 2009 2010 2011 2012 2013 2014 2015 2016 Resales New sales
Slide 38: Appendix 11: Population growth 75+
Appendix 11: Population growth 75+ 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 New Zealand Victoria
Slide 39: Appendix 12: 2020 – our share of 75+ market
Appendix 12: 2020 – our share of 75+ market New Zealand Victoria 1,500 14,000 350,000 467,000 75+ Population Ryman
Slide 40: Appendix 13: Our share of 75+ market
Appendix 13: Our share of 75+ market Auckland only 2015 2020 2,120 4,500 75,000 95,000 75+ Population Ryman