Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — FY2018 Earnings Presentation
53 slides from Ryman Healthcare's earnings presentation, May 2018
Slide 1: Full year result - 31 March 2018
Ryman Healthcare Full year result - 31 March 2018
Slide 2: Full year highlights
Full year highlights Underlying profit up 14.2% to $203.5 million Reported profit up 8.8% to $388.2 million Full year dividend 20.4 cents per share; up 14.6% $5.8 billion of total assets 16 new villages in the pipeline
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Slide 4: Kevin Hickman
Kevin Hickman
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Slide 10: myRyman
myRyman
Slide 11: Four year certification
Four year certification 70% 60% 60% 50% 39% 40% 33% 35% 32% 30% 27% 20% 15% 13% 10% 0% Note: Percent of villages with 4 year certification. Includes aged care providers with 15 or more villages. Data as at 23 April 2018
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Slide 13: Aberfeldie
Aberfeldie Melbourne 2Vida street Ourlady.of the! Nativity,ScHOo} Essendonsplinds @ aScreens Pe ae ee
Slide 14: Nellie Melba
Nellie Melba Wheelers Hill, Melbourne
Slide 15: Coburg
Coburg Melbourne
Slide 16: Burwood East
Burwood East Melbourne
Slide 17: Geelong
Geelong Victoria
Slide 18: Mount Eliza
Mount Eliza Mornington Peninsula, Melbourne
Slide 19: Mount Martha
Mount Martha Mornington Peninsula, Melbourne
Slide 20: Victoria
Victoria . a a a 3 ™ _Burwood East a) Ce elcid ¥ Weary Dunlop - ee es, 4 & 4 - Now . lex “ . Mount Eliza K Mount Martha
Slide 21: Logan Campbell
Logan Campbell Greenlane, Auckland
Slide 22: Devonport Lynfield
Devonport Lynfield Auckland Auckland
Slide 23: Karori Havelock North
Karori Havelock North Wellington, New Zealand Hawkes Bay, New Zealand
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Slide 25: 16 years of underlying profit growth
$0m $50m $100m $150m $200m $250m 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 16 years of underlying profit growth 2017 2018
Slide 26: Reported profit growth
Reported profit growth $500m $400m $300m $200m $100m $0m 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 27: FY18 investing cash flows
FY18 investing cash flows $600m $500m $44 $35 $45 $27 $400m $300m $350 $296 $200m $100m $97 $111 $0m Mar-17 Mar-18 Purchase of land New villages Projects Village upgrades
Slide 28: Total assets
$0bn $1bn $2bn $3bn $4bn $5bn $6bn $7bn 2007 2008 Total assets 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 29: Bank facilities
Bank facilities $700m $600m $500m $400m $300m $200m $100m $0m 1 Year 2 years 3 years 4 years 5 years Gearing Mar-18 Mar-17 (millions) (millions) Net debt $1,060 $838 Net assets $1,941 $1,652 Gearing ratio * 35% 34% * Gearing ratio calculated as net debt / net debt plus equity
Slide 30: Development margin
Development margin 30% Target range 20% 10% 0% 2012 2013 2014 2015 2016 2017 2018 Group development margin Margin excluding Bob Scott Note: 2018 margin restated to exclude Bob Scott.
Slide 31: $815 million resales bank
$815 million resales bank $1,000m $800m $600m $400m $200m $0m 2014 2015 2016 2017 2018 New Zealand Melbourne Note: 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 32: Sales price vs median house price
Sales price vs median house price $1.6m $1.4m $1.2m $1.0m $0.8m $0.6m $0.4m $0.2m $0.0m Melbourne Auckland Median house price - area Ryman - Independent Ryman - Serviced
Slide 33: Long term capital efficiency
Long term capital efficiency $25 million raised at IPO in 1999 Invested $3.1 billion in portfolio since 1999 with no fresh capital Dividends of $690 million paid since float* Self-funded growth Strong balance sheet * Includes 2H18 dividend of 10.9 cents per share that has been declared and
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Slide 35: Appendices
Appendices
Slide 36: Appendix 1: Reported profit
Appendix 1: Reported profit Underlying profit $203.5m Unrealised revaluations of retirement village units +$185.3m Deferred tax expense -$0.6m Reported net profit $388.2m
Slide 37: Appendix 2: Sale of occupation rights
Appendix 2: Sale of occupation rights Mar-18 Mar-17 Existing units Independent 377 327 Serviced 448 391 825 718 New units Independent 365 437 Serviced 93 163 458 600
Slide 38: Appendix 3: Development
Appendix 3: Development Mar-18 Mar-17 Units and beds built Retirement village units built 446 621 Aged care beds built 86 160 532 781 Mar-18 Mar-17 Total retirement village units Independent 4,513 4,131 Serviced 1,901 1,837 6,414 5,968 Total aged care beds 3,367 3,281 Total retirement village units
Slide 39: Appendix 4: Margins
Appendix 4: Margins Reference Mar-18 Mar-17 New sales $000s $000s Realised fair value movement (Note 7) 58,955 62,959 Sale of occupation rights (Key statistics) 307,282 263,282 Gross development margin 19.2% 23.9% Resales Realised fair value movement (Note 7) 107,233 77,286 Sale of occupation rights
Slide 40: Appendix 5: Asset base
Appendix 5: 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 89 207 410 Charles Fleming Waikanae 40 40 40 79 201 400 Charles Up
Slide 41: Appendix 5: Asset base
Appendix 5: Asset base Auckland Village Location Hospital Dementia Resthome Serviced Independent Total Bert Sutcliffe Birkenhead 40 40 40 81 169 370 Bruce McLaren Howick 41 40 42 74 192 389 Edmund Hillary Remuera 114 30 50 60 373 627 Grace Joel St Helliers 77 - 20 80 69 246 Logan Campbell Greenlane
Slide 42: Appendix 6: Land bank (New Zealand)
Appendix 6: Land bank (New Zealand) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Jean Sandel New Plymouth - - - - 59 59 Kiri Te Kanawa Gisborne - - - - 6 6 Bob Scott Lower Hutt - - - - 47 47 Bert Sutcliffe Auckland - - - - 88 88 Logan Campbell Auckland - 30 - - 10
Slide 43: Appendix 6: Land bank (Australia)
Appendix 6: Land bank (Australia) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Nellie Melba Melbourne 80 39 80 94 286 579 Total existing villages 80 39 80 94 286 579 New sites Location Hospital Dementia Resthome Serviced Independent Total Coburg Melbourne 35 35 36
Slide 44: Appendix 7: Cash management fees
Appendix 7: Cash management fees Reference Mar-18 Mar-17 $000s $000s Accrued management fees – opening (Note 12) 270,370 227,154 Less: Accrued management fees – closing (Note 12) (321,631) (270,370) Movement in accrued management fees (51,261) (43,216) Plus: DMF income Income statement 70,087 60,988
Slide 45: Appendix 8: Investment property summary
Appendix 8: Investment property summary CBRE unit price inflation assumption Discount As at 31 March 2018 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5+ rate Auckland 0.9% 1.9% 2.4% 3.0% 3.5% 12.51% Rest of New Zealand 0.9% 1.5% 2.0% 2.8% 3.3% 13.42% Melbourne 3.6% 3.6% 3.6% 3.8% 3.9% 14.00%
Slide 46: Appendix 9: Operating cash flows
Appendix 9: Operating cash flows Mar-18 Mar-17 $000’s $000’s Resident receipts 268,359 227,665 Refundable accommodation deposits (net) 3,101 572 Development sales 238,820 246,116 Resales 364,860 285,476 Total receipts from residents 875,140 759,829 Interest received 515 476 Payments to suppliers and
Slide 47: Appendix 10: Available resale stock
Appendix 10: Available resale stock Mar-18 Mar-17 2.5% Independent Living Units 26 4 Serviced Apartments 25 28 Total Resales stock 51 32 2.0% Total retirement portfolio 6,414 5,968 Uncontracted stock percentage * 0.8% 0.5% 1.5% 1.4% 1.3% 1.2% 1.0% 1.0% 0.8% 0.5% 0.5% 0.0% 2013 2014 2015 2016 2017 20
Slide 48: Appendix 11: Capital management
Appendix 11: Capital management Use of debt Gearing Mar-18 Mar-17 $1,200m Projects (millions) (millions) $ 82 m Net debt $1,060 $838 $1,000m $ 30 m Generators $ 10 m Net assets $1,941 $1,652 $ 45 m Gearing ratio * 35% 34% $800m $ 178 m Other village capex $7bn 70% $6bn 60% $600m Village $5bn 50% upg
Slide 49: Appendix 12: Value of contracts not booked
Appendix 12: Value of contracts not booked $150m $100m $50m $0m 2016 2017 2018
Slide 50: Appendix 13: Resident average age and tenure (years)
Appendix 13: Resident average age and tenure (years) Average age Mar-18 Mar-17 88 Independent 82.2 82.3 87 Serviced 87.6 87.6 Care centre 86.2 86.1 86 Average tenure - vacated residents Mar-18 Mar-17 85 Independent 4.8 4.9 Serviced 3.0 2.7 84 83 82 81 80 Independent Serviced Care centre
Slide 51: Appendix 14: 16 villages in the pipeline
Petone - NZ Rangiora - NZ Birkenhead - NZ Greenlane - NZ Brandon Park - Victoria Lynfield - NZ Devonport - NZ River Road - NZ Coburg - Victoria Burwood East - Victoria Geelong - Victoria Pipeline Hobsonville - NZ of 16 villages Newtown - NZ Village Design Consenting Construction Village Open Final S
Slide 52: Appendix 15: Population growth
Appendix 15: Population growth 40,000 1.6m 30,000 1.2m 20,000 0.8m 10,000 0.4m 0 0.0m 2006-2011 2011-2014 2014-2018 2018-2023 2023-2028 2028-2033 2033-2038 2038-2043 2043-2048 NZ avg annual increase in population aged 75+ Victoria avg annual increase in population aged 75+ NZ total population aged 7
Slide 53: Appendix 16: Number of births in New Zealand and Victoria
Appendix 16: Number of births in New Zealand and Victoria 80,000 60,000 40,000 20,000 0 1872 1892 1912 1932 1952 1972 1992 2012 New Zealand Victoria Source: Statistics NZ, ABS. Number of births in New Zealand and Victoria