Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — FY2017 Earnings Presentation
47 slides from Ryman Healthcare's earnings presentation, Mar 31, 2017
Slide 1: Ryman Healthcare Full Year Results
RYMAN HEALTHCARE FULL YEAR RESULTS 31 March 2017
Slide 2: Slide 2
Slide 3: Full Year Highlights
FULL YEAR HIGHLIGHTS Underlying profit up 13% to $178 million Reported profit up 17% to $357 million Full year dividend 17.8 cents per share – up 13% Record investment of $525 million
Slide 4: 15 Years of Dividend Growth
15 YEARS OF DIVIDEND GROWTH 20 18 16 14 Cents per share 12 10 8 6 4 2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 5: Tropicana, Auckland
TROPICANA Auckland
Slide 6: Investing in Care
INVESTING IN CARE
Slide 7: 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
Slide 8: Reported Profit Growth
REPORTED PROFIT GROWTH 400 350 300 250 $ Million 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 9: FY17 Investing Cash Flows
FY17 - INVESTING CASH FLOWS 400 350 300 250 $ Millions 200 150 100 50 0 Land New villages Projects Village upgrades
Slide 10: Essie Summers, Christchurch
ESSIE SUMMERS CHRISTCHURCH
Slide 11: Total Assets
TOTAL ASSETS 6 40% 35% 5 30% 4 25% $ Billion 3 20% 15% 2 10% 1 5% 0 0% Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Total Assets Bank debt to bank debt + equity
Slide 12: Development Margin
DEVELOPMENT MARGIN 35% 30% 25% Target range 20% 15% 10% 5% 0% 2012 2013 2014 2015 2016 2017
Slide 13: Resales Bank
RESALES BANK 800 700 Melbourne 600 500 $ Million 400 New Zealand 300 200 100 0 2014 2015 2016 2017 The resales bank represents the extent that the current price exceeds the price paid by the current resident for the unit's occupancy rights
Slide 14: 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 15: Capital Proceeds
CAPITAL PROCEEDS Gross Occupancy Advances 6 5 4 $ Billion 3 2 1 0 Mar 11 Mar 17 Mar 22 * * Indicative occupancy advances – estimate only
Slide 16: Long Term Capital Efficiency
LONG TERM CAPITAL EFFICIENCY $25m raised at IPO in 1999 Invested $2.6bn in portfolio since With no fresh capital Dividends of $585m paid since float Self-funded growth Strong balance sheet
Slide 17: New Villages Consented
3 NEW VILLAGES CONSENTED Brandon Park Devonport Tropicana
Slide 18: Age of Residents at Entry
AGE OF RESIDENTS AT ENTRY 450 400 350 Independent 300 Residents Care/Serviced Residents No of Residents 250 200 150 100 50 0 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 100 102
Slide 19: Number of Births in NZ by Year
° 1050 Number of Births in NZ by Year 1859 1860-1869 1670-1679 1660-1889 1880-1899 1900-1909 1910-1919 1920-1929 1830 1999 1980-1949 1950-1959 1960-1969 1970-1979 1980-1969 1950-1999,
Slide 20: Coburg, Melbourne
COBURG Melbourne
Slide 21: Village development stages: Petone, Pukekohe, Rangiora
Village Design Consenting Construction Village open Final stages Petone Pukekohe Rangiora Birkenhead Greenlane Brandon Park Tropicana Devonport
Slide 22: Village development stages: Burwood East, Coburg, Mt Eliza
Village Design Consenting Construction Village open Final stages Burwood East Coburg Mt Eliza Hamilton Hobsonville Newtown Geelong Site A, NZ Site B, NZ
Slide 23: Tropicana, Auckland
TROPICANA Auckland
Slide 24: Devonport, Auckland
DEVONPORT Auckland
Slide 25: Brandon Park, Melbourne
BRANDON PARK Melbourne
Slide 26: The Long Lunch
THE LONG LUNCH
Slide 27: MyRyman Care
MYRYMAN CARE < Wed, 17 May 2017 » > + & 6 Tasks to do Moming Caves Wound Assessment BBP crag vaterug Shower A Linen Change BH Bowel chart
Slide 28: MyRyman Care
Tue 16 May 16:31 Betty Smith e ms MYRYMAN CARE 8 + & < Sat, 13 May 2017 Sandra Shower Ensure adequate towels and flannel available Lorraine independant, but does need checking on when showering Ensure adequate toiletries available Remove wet towels once finished showering Lorraine will sit on a show
Slide 29: Ryman Leaders
RYMAN LEADERS
Slide 30: “« a . “ < e e . «
“« a . “ 2 < e e . « a m x <f _ x “« % _o-° ® | HEALTHCARE 7 "eH Se ae * *% # it’s allabout people * , te o ote FO eae eee & oe e @ OF 2 q ef e g ef @'— ue z ge 2 HP RS ete RS ae ey 9p * op & ip Sp ey iy 4
Slide 31: Charles Upham
CHARLES UPHAM
Slide 32: Charles Upham
CHARLES UPHAM
Slide 33: Retirement Village
R, as um urne RETIREMENT VILLAGE
Slide 34: wi S < s = my S ih ES = hi i
wi S < s = 7 my S ih ES = hi i
Slide 35: Retirement Village
TIREMENT VILLAGE
Slide 36: Slide 36
Slide 37: Slide 37
Slide 38: Slide 38
Slide 39: Mt Eliza, Melbourne
MT ELIZA Melbourne
Slide 40: Appendices
APPENDICES
Slide 41: Appendix 1: Reported Profit Up 17%
APPENDIX 1: REPORTED PROFIT UP 17% Underlying profit $178.3M Unrealised revaluations of RV units +$184.7M Income tax expense -$6.3M Reported net profit $356.7M
Slide 42: Appendix 2: Statistics
APPENDIX 2: STATISTICS Full year Full year Sales of Occupation Rights Mar-17 Mar-16 Existing units Independent 327 297 Serviced 391 393 718 690 New units Independent 437 400 Serviced 163 118 600 518 Portfolio and Build Rate Retirement village units Independent 4,131 3,688 Serviced 1,837 1,659 5,968
Slide 43: Appendix 3: Margin
APPENDIX 3: MARGIN Full year Full year Mar-17 Mar-16 New Sales $000s $000s Reference Realised Fair Value movement – new RV units (Note 3) 62,959 62,396 Sale of occupation rights – new RV units (Key statistics) 263,282 226,215 Gross development margin % 24% 28% Resales Realised Fair Value movement –
Slide 44: Appendix 4: Asset Base
APPENDIX 4: ASSET BASE Hospital Dementia Resthome Serviced Independent Total 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 Invercargill 70 26 61 46 103 306
Slide 45: Appendix 5: Land Bank
APPENDIX 5: LAND BANK Hospital Dementia Resthome Serviced Independent Total NEW ZEALAND Existing Sites Jean Sandel New Plymouth - - - - 73 73 Kiri Te Kanawa Gisborne - - - - 26 26 Bob Scott Lower Hutt - - - - 102 102 Bert Sutcliffe Auckland - - - - 151 151 Possum Bourne Pukekhoe - - - - 72 72 Charle
Slide 46: Appendix 6: Cash Management Fees
APPENDIX 6: CASH MANAGEMENT FEES Full year Full year Mar-17 Mar-16 $000s $000s Reference Accrued Management Fees – Opening (Note 4) and PY financials 227,154 191,679 Less: Accrued Management Fees – Closing (Note 4) -270,370 -227,154 Movement in Accrued Management Fees -43,216 -35,475 Plus: DMF incom
Slide 47: 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