Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — H1 FY2021 Earnings Presentation
52 slides from Ryman Healthcare's earnings presentation, November 2020
Slide 1: Half year result
R Y M A N H E A LT H C A R E Half year result 30 September 2020 1
Slide 2: First half highlights
First half highlights Underlying profit* of $88.4 million, a decrease of 14.2% Reported (IFRS) profit of $212.4 million, up 12.8% Interim dividend of 8.8 cents per share, reflecting 50% of underlying profit Total assets of $8.34 billion, up 14.9% Building across 12 sites, up from four new sites two
Slide 3: First half underlying profit
First half underlying profit Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Refer to slide 21 for a breakdown of underlying profit. 3
Slide 4: Construction safety
a RY Mi | s0uSTRUCTION | | We do it SAFELY ~ ornotatall
Slide 5: The 'gold' standard of care – 4 year certification
The ‘gold’ standard of care – 4 year certification Source: Ministry of Health. Large operators reflects aged care providers with 15 or more care centres. Data at 9 November 2020. 5
Slide 6: Ryman pioneers
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Slide 9: William Sanders
William Sanders 9
Slide 10: We’
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Slide 12: Highton John Flynn
Highton John Flynn 12
Slide 13: Ocean Grove Weary Dunlop Nellie Melba
Ocean Grove Weary Dunlop Nellie Melba Highton John Flynn 13
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Slide 15: Nellie Melba Linda Jones
Nellie Melba Linda Jones 15
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Slide 17: Development pipeline (Sept 2018)
Villages Design Consenting Council Construction Village Final Development Nellie Melba approval open stages pipeline Murray Halberg William Sanders Linda Jones (Sept 2018) Miriam Corban John Flynn Coburg Highton Aberfeldie Hobsonville James Wattie Mt Martha Mt Eliza Karori Park Terrace Ocean Grove N
Slide 18: Development pipeline (Sept 2020)
Villages Design Consenting Council Construction Village Final Development Nellie Melba approval open stages pipeline Murray Halberg William Sanders Linda Jones (Sept 2020) Miriam Corban Highton James Wattie John Flynn Aberfeldie Hobsonville Riccarton Park Ocean Grove Highett Coburg Northwood Mt Mart
Slide 19: Value of contracts not settled
$450m Value of contracts $400m not settled $350m $300m $250m $200m $150m $100m $50m - Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Note: Contracts not settled are unconditional occupation-right agreements which have been entered into by residents but have not been settled as the resident has not
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Slide 21: Reported profit
Reported profit Half year Half year Full year Sep 20 Sep 19 Mar 20 Underlying profit (non-GAAP) $88.4m $103.0m $242.0m Unrealised revaluations of investment properties +124.1m +$92.7m -$70.9m Deferred tax credit / expense -$0.1m -$7.4m +$93.6m Reported net profit $212.4m $188.3m $264.7m Underlying p
Slide 22: First half reported profit
First half reported profit 22
Slide 23: Cash receipts from residents
Cash receipts from residents 23
Slide 24: Investing cash flows $406 million
Investing cash flows $406 million 24
Slide 25: Total assets
Total assets Note: As documented in the Group's facility agreement, the Group has a right to off-set cash balances held against bank debt. Debt shown is total secured bank loans net of cash held at balance date. 25
Slide 26: Development margin
35% 30% Development margin 25% 20% 15% 10% 5% - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* *Development margin at 30 September 2020. All other values at 31 March. 26
Slide 27: $945 million resales bank
$945 million resales bank 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. 27
Slide 28: Long-term capital efficiency
Long-term capital efficiency $25 million raised at IPO in 1999 Invested $4.78 billion in portfolio since 1999 with no fresh capital Dividends of over $965 million paid since float* Self-funded growth Strong balance sheet *Includes interim dividend of 8.8 cents per share that has been declared and is
Slide 29: Questions
R Y M A N H E A LT H C A R E Questions 30 September 2020 29
Slide 30: Appendix 1: Half year highlights
Appendix 1: Half year highlights Underlying profit* of $88.4 million, a decrease of 14.2% Reported (IFRS) profit of $212.4 million, up 12.8% Interim dividend of 8.8 cents per share, reflecting 50% of underlying profit Total assets of $8.34 billion, up 14.9% 306 units and beds built, up 58.5% Record
Slide 31: Appendix 1: Half year highlights
Appendix 1: Half year highlights Resales bank of $945 million underpins future growth and market resilience Record cash collections from new sales of $275 million anticipated in the second half $50 million investment in COVID-19 measures since January 2020 Continued strong demand for villages with o
Slide 32: Appendix 2: Sale of occupation rights
Appendix 2: Sale of occupation rights Half year Half year Full year Sep 20 Sep 19 Mar 20 Existing units Independent 196 212 425 Serviced 260 242 498 456 454 923 New units Independent 98 196 426 Serviced 23 33 87 121 229 513 32
Slide 33: Appendix 3: Development
Appendix 3: Development Half year Half year Full year Sep 20 Sep 19 Mar 20 Units and beds built Retirement village units built 266 234 590 Aged care beds built 40 0 251 306 234 841 Total retirement village units Independent 5,458 5,013 5,264 Serviced 2,231 2,058 2,159 7,689 7,071 7,423 Total aged ca
Slide 34: Appendix 4: Margins
Appendix 4: Margins Half year Half year Full year Sep 20 Sep 19 Mar 20 Reference $000s $000s $000s New sales Realised fair value movement (Note 3) 26,143 31,835 105,757 Sale of occupation rights (Key statistics) 90,052 160,726 386,673 Gross development margin 29% 20% 27% Resales Realised fair value
Slide 35: Appendix 5: Cash management fees
Appendix 5: Cash management fees Half year Half year Full year Sep 20 Sep 19 Mar 20 Reference $000s $000s $000s Accrued management fees and resident loans – opening (Note 4) 439,636 376,161 376,161 Less: Accrued management fees and resident loans – closing (Note 4) (469,507) (412,053) (439,636) Move
Slide 36: Appendix 6: Investment property summary
Appendix 6: Investment property summary CBRE unit price inflation assumption Discount rate As at 30 September 2020 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5+ Auckland 0.1% 0.2% 2.1% 3.0% 3.5% 12.7% Rest of New Zealand 0.1% 0.3% 2.0% 2.7% 3.4% 13.4% Victoria 0.0% 1.4% 3.1% 3.8% 4.0% 14.6% CBRE unit price inflation as
Slide 37: Appendix 7: Operating cash flows
Appendix 7: Operating cash flows Half year Half year Full year Sep 20 Sep 19 Mar 20 $000s $000s $000s Resident receipts 179,358 162,748 333,476 Refundable accommodation deposits (net) 12,710 26,623 41,120 New sales of occupation rights 70,983 187,577 305,540 Resales of occupation rights 220,019 205,
Slide 38: Appendix 8: Available resales stock
Appendix 8: Available resales stock Half year Half year Full year Sep 20 Sep 19 Mar 20 Independent living units 83 48 60 Serviced apartments 61 63 67 Total resales stock 144 111 127 Total retirement portfolio 7,689 7,071 7,423 Uncontracted stock percentage* 1.9% 1.6% 1.7% 3.0% 1.7% 1.9% 2.0% 1.6% 1.
Slide 39: Appendix 9: Capital management
Use of debt $2,400m Appendix 9: Capital management $2,000m $227m $153m $249m Systems and $1,600m other assets Half year Half year Full year Gearing ($m) Sep 20 Sep 19 Mar 20 Village capex Bank debt $2,109 $1,505 $1,707 $1,200m Net assets $2,454 $2,294 $2,301 New sale debtors Total assets $8,337 $7,2
Slide 40: Appendix 10: Resident average age and tenure (years)
Appendix 10: Resident average 93 age and tenure (years) 91 89 Average age Sep 20 Sep 19 Independent 82.3 82.2 87 Serviced 87.5 87.4 85 Care centre 86.6 86.5 83 Average tenure - vacated units Sep 20 Sep 19 81 Independent 6.0 5.6 Serviced 2.9 2.8 79 77 75 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar
Slide 41: Appendix 11: Value of contracts not booked
Appendix 11: Value of contracts not booked *Data as at 30 September. All other data as at 31 March. Presales are unconditional occupation right agreements which have been entered into by residents but have not been booked as the unit is not yet near complete. 41
Slide 42: Appendix 12: Gross occupancy advance
Appendix 12: Gross occupancy advance 42
Slide 43: Appendix 13: Sales price versus median house price
Appendix 13: Sales price versus median house price Note: The median house price reflects the average median house price over the last 6 months in the area surrounding our villages. 43
Slide 44: Appendix 14: Average new and resale price
Appendix 14: Average new and resale price *Data as at 30 September. All other data as at 31 March. 44
Slide 45: Appendix 15: World population growth 80+
Appendix 15: World population growth 80+ 45
Slide 46: Appendix 16: Eleven sites in Victoria
Ryman village Aberfeldie Coburg Under construction Proposed village Ringwood East John Flynn Nellie Melba Weary Dunlop Highett Highton Mount Eliza Mount Martha Ocean Grove Appendix 16: Eleven sites in Victoria 46 54
Slide 47: Appendix 17: Thirteen sites in Auckland
Takapuna Hobsonville Bert Sutcliffe William Sanders Miriam Corban Kohimarama Grace Joel Evelyn Page Edmund Hillary Logan Campbell Bruce McLaren Murray Halberg Ryman village Under construction Possum Bourne Proposed village Appendix 17: Thirteen sites in Auckland 47
Slide 48: 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 49: 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 50: Appendix 19: Land bank (New Zealand)
Appendix 19: Land bank (New Zealand) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Diana Isaac Christchurch - - - - 30 30 Grace Joel Auckland - - - - 96 96 James Wattie Hawkes Bay 35 35 20 78 83 251 Jean Sandel New Plymouth - - - - 59 59 Linda Jones Hamilton - - -
Slide 51: Appendix 19: Land bank (Victoria)
Appendix 19: Land bank (Victoria) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Highton Victoria 40 20 40 60 49 209 John Flynn Melbourne 38 38 38 96 104 314 Nellie Melba Melbourne - - - - 113 113 Total existing villages 78 58 78 156 266 636 New sites Location Hospi
Slide 52: Disclaimer
Disclaimer This presentation sets out information relating to Ryman Healthcare Limited’s interim result for the period to 30 September 2020. It should be read in conjunction with all other material which we have released, or may release, to NZX from time to time. That material is also available on o