Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — FY2022 Earnings Presentation
45 slides from Ryman Healthcare's earnings presentation, Mar 31, 2022
Slide 1: Full year result 2022
RYMAN HEALTHCARE Full year result RYMAN HEALTHCARE Full year2022 31 March result 1
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Slide 4: Full year highlights
Full year highlights Underlying profit* of $255.0 million, an increase of 13.6% Reported (IFRS) profit of $692.9 million, up 63.8% Final dividend of 13.6 cents per share, unchanged from the prior year Total assets of $10.97 billion, up 19.6% Net assets of $3.43 billion, up 21.4% Cash receipts of $1.
Slide 5: Four new villages under construction
Highett, Melbourne Takapuna, Auckland Four new villages under construction Northwood, Christchurch Ringwood East, Melbourne Artists impressions 5
Slide 6: Four new sites added to our land bank
Rolleston, Canterbury Kealba, Melbourne Four new sites added to our land bank • Mix of apartment (Coburg North) and townhouse (Rolleston, Mulgrave, Mulgrave, Melbourne Coburg North, Melbourne Kealba) style developments • Additional land at Deborah Cheetham and Essendon acquired Site boundaries are i
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Slide 9: Voted New Zealand's most trusted aged care brand
PROUD TO BE VOTED : NEW ZEALAND’S MOST SE TRUSTED AGED CARE = AND RETIREMENT VILLAGE BRAND FOR THE EIGHTH TIME. Seeeeess é.. rh ee tna ne ‘ange em ee \
Slide 10: Artist impression, Raylene Boyle Retirement Village
Artist impression, Raylene Boyle Retirement Village 10
Slide 11: Australian village locations
Australian village locations 11
Slide 12: Full year reported (IFRS) profit
Full year reported $700m (IFRS) profit $600m $500m $400m • Reported IFRS profit of $692.9 million, up 63.8% on the prior year $300m • This includes the addition of new units and an unrealised valuation $200m gain of $467.1 million $100m • These gains reflect the pricing lift we have achieved over th
Slide 13: Underlying profit up 13.6%
Underlying profit up 13.6% $300m $250m $200m • Underlying profit of $255.0 million, an increase of 13.6% on the prior year $150m • Growth underpinned by robust demand and a strong lift in resale $100m earnings, despite COVID impacts $50m - 2017 2018 2019 2020 2021 2022 New Zealand Victoria Note: Und
Slide 14: Embedded value lifted to $2.45 billion
Embedded $2.5bn value lifted to $2.0bn $2.45 billion $1.5bn • Resale bank up 62.7% to $1.87 billion to underpin future earnings $1.0bn • Implied resale margin of 27.8% • Embedded value* now $2.45 billion $0.5bn - 2017 2018 2019 2020 2021 2022 Resale bank Accrued management fees & resident loans * Em
Slide 15: Combined margin of 25.8%
Combined margin 35% of 25.8% 30% 25% 20% • Combined margin 25.8%, up from 24.2% 15% • New sale margin 24.3%, reflecting 10% our ability to lift prices, offsetting rising construction costs and supply 5% challenges 0% 2017 2018 2019 2020 2021 2022 Combined margin Development margin Resales margin 15
Slide 16: Average new and resale price
Average new $900k and resale price $800k $700k $600k $500k • New sale pricing reflects our focus on high value locations $400k • Resale pricing reflects the maturing $300k of villages in Auckland and Melbourne $200k $100k $0k 2008 2019 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011 2012
Slide 17: Affordability provides resilience
Affordability $1.8m $1.6m provides $1.4m resilience $1.2m $1.0m • Our offering remains highly affordable relative to local house $0.8m prices $0.6m • Pricing in Auckland is 27% below the $0.4m median local house price $0.2m • Residents continue to free up significant capital when moving into - a Rym
Slide 18: Strong cash receipts from residents
Strong cash $1.6bn receipts from $1.4bn residents $1.2bn $1.0bn • Cash receipts from residents up 18.7% to $1.40 billion $0.8bn • Operating cash flows up 41.8% to $0.6bn $586.0 million $0.4bn $0.2bn - 2017 2018 2019 2020 2021 2022 18
Slide 19: We have diversified the tenor and source of our debt
We have diversified $900m $800m the tenor and $700m source of our debt $600m $500m • Debt to debt-plus-equity ratio reduced to 43% $400m • Headroom of $737 million at 31 $300m March $200m • Strong position to continue to invest $100m - FY23 FY25 FY27 FY29 FY31 FY33 FY35 FY37 Bank facilities Retail b
Slide 20: The benefit of focusing on high value sites
The benefit of $8.0bn focusing on high $6.0bn value sites • We anticipate generating $6.80 $4.0bn billion of capital proceeds from the 29 sites in our land bank when they are fully occupied and sold down $2.0bn • Our 32 fully sold villages currently contribute $3.60 billion of capital proceeds - 32
Slide 21: Total assets of $10.97 billion
Total assets of $12bn $10.97 billion $10bn $8bn $6bn $4bn $2bn - 2017 2018 2019 2020 2021 2022 Total assets Interest bearing debt Note: Interest bearing debt represents “interest-bearing loans and borrowings” in the balance sheet and includes secured bank loans, unsubordinated fixed-rate retail bond
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Slide 23: Questions
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Slide 24: Appendix 1: Reported (IFRS) profit
Appendix 1: Reported (IFRS) profit 12 months to 31 Mar 22 12 months to 31 Mar 21 $m NZ Aust Group NZ Aust Group Underlying profit (non-GAAP) 203.8 51.2 255.0 192.3 32.2 224.4 Unrealised revaluations of investment properties 436.8 30.3 467.1 192.6 8.6 201.2 Deferred tax credit / expense -50.9 21.7 -2
Slide 25: Appendix 2: Sale of occupation rights
Appendix 2: Sale of occupation rights Year to 31 Mar 22 Year to 31 Mar 21 NZ Aust Group NZ Aust Group Existing units Independent 444 34 478 415 18 433 Serviced 479 26 505 483 9 492 923 60 983 898 27 925 New units Independent 251 177 428 268 144 412 Serviced 67 65 132 64 27 91 318 242 560 332 171 503
Slide 26: Appendix 3: Development
Appendix 3: Development Total units Independent Serviced Total units Care beds and beds New Zealand James Wattie 45 0 45 0 45 Keith Park 11 0 11 0 11 Kevin Hickman 38 0 38 0 38 Linda Jones 58 0 58 0 58 Miriam Corban 44 0 44 0 44 William Sanders 49 0 49 0 49 Total build - New Zealand 245 0 245 0 245
Slide 27: Appendix 4: Margins
Appendix 4: Margins $000s Reference 31 Mar 22 31 Mar 21 New sales Realised fair value movement (Note 7) 110,681 108,377 Sale of occupation rights (Key statistics) 455,856 395,094 Gross development margin 24.3% 27.4% Resales Realised fair value movement (Note 7) 168,071 107,317 Resale of occupation r
Slide 28: Appendix 5: Cash management fees
Appendix 5: Cash management fees $000s Reference Mar 22 Mar 21 Accrued management fees and resident loans – opening (Note 14) 502,890 439,636 Less: Accrued management fees and resident loans – closing (Note 14) (578,254) (502,890) Movement in accrued management fees (75,364) (63,254) Plus: DMF incom
Slide 29: Appendix 6: Investment property summary
Appendix 6: Investment property summary CBRE unit price inflation assumption Discount As at 31 March 2022 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5+ rate Auckland 0.9% 1.0% 2.1% 3.0% 3.5% 12.8% Rest of New Zealand 0.9% 1.0% 2.0% 2.7% 3.4% 13.3% Australia 3.2% 3.5% 3.5% 3.5% 3.8% 14.2% CBRE unit price inflation assum
Slide 30: Appendix 7: Operating cash flows
Appendix 7: Operating cash flows Year to Year to $000s 31 Mar 22 31 Mar 21 Resident receipts 400,618 360,855 Refundable accommodation deposits (net) 87,411 27,884 New sale of occupation rights 383,601 330,503 Resales of occupation rights 524,525 457,159 Total receipts from residents 1,396,155 1,176,
Slide 31: Appendix 8: Available resales stock
Appendix 8: Available resales stock Mar 22 Sep 21 Mar 21 Independent living units 45 34 45 Serviced apartments 75 67 69 Total resales stock 120 101 114 Total retirement portfolio 8,538 8,195 7,983 Uncontracted stock percentage* 1.4% 1.2% 1.4% 3% 1.7% 1.9% 2% 1.6% 1.4% 1.4% 1.2% 1.2% 1.0% 1% 0.8% 0.8
Slide 32: Appendix 9: Investing cash flows
Appendix 9: $1,000m Investing $800m $2m $42m cash flows $45m $43m $57m $600m • $783.0 million invested in new villages and existing portfolio $400m $680m $620m • Work commenced on 4 new sites during the year $200m • Now building across 16 sites with a $75m $63m - further 13 sites in the land bank 20
Slide 33: Appendix 10: Capital management
Appendix 10: Capital $3,000m Use of debt management $2,500m $330m Gearing ($m) Mar 22 Sep 21 Mar 21 $177m Interest bearing debt $2,548 $2,435 $2,254 $2,000m $358m Debt at face value $2,589 $2,437 $2,275 Net assets $3,435 $3,034 $2,829 $1,500m Total assets $10,966 $9,849 $9,172 $1,210m $1,000m Intere
Slide 34: Appendix 11: Resident average age and tenure (years)
Appendix 11: Resident 93 Average age (current) average age and 91 tenure (years) 89 87 Average age (current) Mar 22 Mar 21 85 Independent 82.4 82.3 Serviced 87.5 87.5 83 Care centre 86.8 86.7 81 Average age (on entry) Mar 22 Mar 21 79 Independent 79.3 79.2 Serviced 85.7 85.1 77 Average tenure (vacat
Slide 35: Appendix 12: Net assets
Appendix 12: $4.0bn Net assets $3.5bn $3.0bn $2.5bn $2.0bn $1.5bn $1.0bn $0.5bn - 2017 2018 2019 2020 2021 2022 35
Slide 36: Appendix 13: Gross occupancy advances
Appendix 13: $6.0bn Gross occupancy $5.0bn advances $4.0bn $3.0bn $2.0bn $1.0bn - 2017 2018 2019 2020 2021 2022 36
Slide 37: Appendix 14: 14 sites in Auckland
Appendix 14: 14 sites in Auckland 37
Slide 38: Appendix 15: Development pipeline – NZ
Appendix 15: Development pipeline – NZ Auckland Peak capital Median Design Consenting Council Construction Village Final Targeted village requirement house price approval open stages completion 1 William Sanders High >$1.9m 2023 2 Miriam Corban Medium >$1.0m 2024 3 Keith Park High >$1.2m 2025 4 Murr
Slide 39: Appendix 16: Development pipeline - Australia
Appendix 16: Development pipeline - Australia Australia Peak capital Median Design Consenting Council Construction Village Final Targeted village requirement house approval open stages completion price 1 Charles Brownlow Low >$0.9m 2022 2 John Flynn High >$1.2m 2022 3 Raelene Boyle Medium >$2.0m 202
Slide 40: Appendix 17: Village centres under construction
Appendix 17: Village centres under construction Auckland Village centre Village centre Targeted village under construction open completion 1 William Sanders 2023 2 Miriam Corban 2024 3 Keith Park 2025 4 Murray Halberg 2026 Rest of New Zealand 1 Linda Jones 2023 2 James Wattie 2024 3 Kevin Hickman 20
Slide 41: Appendix 18: Asset base
Appendix 18: Asset base New Zealand (ex Auckland) Village Location Hospital Dementia Resthome Serviced Independent Total Anthony Wilding Christchurch 80 33 35 50 110 308 Bob Owens Tauranga 40 40 40 79 218 417 Bob Scott Petone 40 40 34 89 254 457 Charles Fleming Waikanae 40 40 40 79 201 400 Charles U
Slide 42: Appendix 18: Asset base
Appendix 18: Asset base Auckland Village Location Hospital Dementia Resthome Serviced Independent Total Bert Sutcliffe Birkenhead 40 40 40 81 225 426 Bruce McLaren Howick 41 40 42 74 192 389 Edmund Hillary Remuera 114 30 50 60 372 626 Evelyn Page Orewa 60 37 20 65 248 430 Grace Joel St Heliers 77 -
Slide 43: Appendix 19: Land bank
Appendix 19: Land bank New Zealand Existing villages Location Hospital Dementia Resthome Serviced Independent Total Grace Joel Auckland - - - - 96 96 James Wattie Havelock North 35 35 20 78 24 192 Jean Sandel New Plymouth - - - - 59 59 Keith Park Auckland 40 40 40 101 211 432 Kevin Hickman Christchu
Slide 44: Appendix 19: Land bank
Appendix 19: Land bank Australia Existing villages Location Hospital Dementia Resthome Serviced Independent Total Deborah Cheetham Victoria 40 40 40 53 99 272 Nellie Melba Melbourne - - - - 117 117 Total existing villages 40 40 40 53 216 389 New sites Location Hospital Dementia Resthome Serviced Ind
Slide 45: Disclaimer
Disclaimer Use same This presentation sets out information relating to Ryman Healthcare Limited’s full year result for the period to 31 March 2022. It should be read in conjunction with all other material which we have released, or may release, to NZX from time to time. picture as That material is a