Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — H1 FY2017 Earnings Presentation
32 slides from Ryman Healthcare's earnings presentation, Sep 30, 2016
Slide 1: Ryman Healthcare Half Year Results
RYMAN HEALTHCARE HALF YEAR RESULTS 30 September 2016
Slide 2: Slide 2
Slide 3: First Half Highlights
FIRST HALF HIGHLIGHTS Underlying profit up 9% to $76.5 million Reported profit up 41% to $187 million Interim dividend lifted to 8.5 cents per share Eleven new villages in the pipeline
Slide 4: Investing Cash Flows
INVESTING CASH FLOWS 300 250 200 $Million 150 100 50 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2011 2012 2013 2014 2015 2016 2017
Slide 5: Development Margin
DEVELOPMENT MARGIN 35% 30% 25% 20% 15% 10% 5% 0% 2012 2013 2014 2015 2016 2017* Target range *Represents first half only
Slide 6: Resales Bank
RESALES BANK 800 700 600 500 $ Million 400 300 200 100 0 2014 2015 2016 2017* New Zealand Melbourne *As at 30 September. All other years at 31 March. The resale bank represents the extent that the current price exceeds the price paid by the current resident for the unit's occupancy rights
Slide 7: Sales Pricing vs Median House Price
SALES PRICING VS MEDIAN HOUSE PRICE 1400 1200 1000 $ Thousand 800 600 400 200 0 Melbourne Auckland Median house price - area Ryman - Independent Ryman - Serviced
Slide 8: Total Assets
TOTAL ASSETS 5 4 3 $ Billion 2 1 0 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16
Slide 9: Capital Proceeds
CAPITAL PROCEEDS Gross Occupancy Advances 6 5 4 $ Billion 3 2 1 0 Sep 11 Sep 16 Sep 21 * * Indicative occupancy advances
Slide 10: Long Term Capital Efficiency
LONG TERM CAPITAL EFFICIENCY $25m raised at IPO in 1999 Invested $2.3bn in portfolio since With no fresh capital Dividends of $540m paid since float Self funded growth Strong balance sheet
Slide 11: 15 Years of Underlying Profit Growth
15 YEARS OF UNDERLYING PROFIT GROWTH 200 180 160 140 120 $ Million 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 First half Second half Target range
Slide 12: Bob Scott
kK kK oO oO n co oO a (J) c fe) P=) vO a
Slide 13: Villages Under Construction
VILLAGES UNDER CONSTRUCTION
Slide 14: Possum Bourne, Pukekohe
POSSUM BOURNE Pukekohe
Slide 15: Charles Upham, Rangiora
CHARLES UPHAM Rangiora
Slide 16: Bert Sutcliffe, Birkenhead
BERT SUTCLIFFE Birkenhead
Slide 17: Eleven Sites in the Pipeline
ELEVEN SITES IN THE PIPELINE * Site A excluded
Slide 18: Coburg, Melbourne
COBURG Melbourne
Slide 19: Mt Eliza, Melbourne
MT ELIZA Melbourne
Slide 20: Greenlane, Auckland
GREENLANE Auckland
Slide 21: Village Rollout - Melbourne
VILLAGE ROLLOUT - MELBOURNE Weary Dunlop Brandon Park Burwood East Coburg Mt Eliza No 2 No 4 Sep 2018 Sep 2019 No 1 No 3 No 5 Jun 2014 Mar 2019 Jun 2020 Today 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 22: Capital Proceeds
CAPITAL PROCEEDS
Slide 23: Ryman by Annah Stretton
RYMAN BY ANNAH STRETTON
Slide 24: Project Delicious
PROJECT : DELICIOUS PROJECT delicious )SUMMER MENU WEEK 2
Slide 25: Appendices
APPENDICES
Slide 26: Appendix 1: Reported Profit Up 41%
APPENDIX 1: REPORTED PROFIT UP 41% Underlying profit $76.5M Taxation expense $0.0M Unrealised revaluations of RV units +$118.2M Deferred tax expense -$7.7M Reported net profit $187.0M
Slide 27: Appendix 2: Statistics
APPENDIX 2: STATISTICS Half year Half year Full year Sales of Occupation Rights Sept-16 Sept-15 Mar-16 Existing units Independent 166 144 297 Serviced 185 193 393 351 337 690 New units Independent 184 170 400 Serviced 59 36 118 243 206 518 Portfolio and Build Rate Retirement village units Independen
Slide 28: Appendix 3: Margin
APPENDIX 3: MARGIN Half year Half year Full year Sept-16 Sept-15 Mar-16 New Sales $000s $000s $000s Reference Realised Fair Value movement – new RV units (Note 3) 23,004 28,245 62,396 Sale of occupation rights – new RV units (Key statistics) 110,522 103,226 226,215 Gross development margin % 21% 27%
Slide 29: Appendix 4: Asset Base
APPENDIX 4: ASSET BASE Hospital Dementia Resthome Serviced Independent Total (as at 30 September 2016) Woodcote Christchurch - - 49 7 18 74 Beckenham Courts Christchurch 41 24 30 58 22 175 Margaret Stoddart Christchurch - - 41 25 20 86 Frances Hodgkins Dunedin - - 51 32 42 125 Rowena Jackson Inverca
Slide 30: Appendix 5: Land Bank
APPENDIX 5: LAND BANK Hospital Dementia Resthome Serviced Independent Total NEW ZEALAND Existing Sites Jean Sandel New Plymouth - - - - 69 69 Kiri Te Kanawa Gisborne - - - 32 9 41 Bob Scott Lower Hutt - - - 0 152 152 Bert Sutcliffe Auckland - - - 0 218 218 Possum Bourne Pukekhoe - - - 45 123 168 Cha
Slide 31: Appendix 6: Cash Management Fees
APPENDIX 6: CASH MANAGEMENT FEES Half year Half year Full year Sept-16 Sept-15 Mar-16 $000s $000s $000s Reference Accrued Management Fees – Opening (Note 4) and PY financials 227,154 191,679 191,679 Less: Accrued Management Fees – Closing (Note 4) -246,409 -210,103 -227,154 Movement in Accrued Manag
Slide 32: Appendix 7: Population Growth 75+
APPENDIX 7: POPULATION GROWTH 75+ 35000 30000 Annual increase in population 25000 20000 15000 10000 5000 0 2006 - 2011 2011 - 2014 2014 - 2018 2018 - 2023 2023 - 2028 2028- 2033 2033 - 2038 New Zealand Victoria