Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — Investor Day (October 2022)
51 slides from Ryman Healthcare's investor day presentation, Oct 17, 2022
Slide 1: Investor Day and Village Tour
RYMAN HEALTHCARE Investor Day and Village Tour 17 October 2022
Slide 2: Today's format
Today’s Information session format Welcome David Bennett Opening remarks Richard Umbers The best continuum of care for ageing well Cameron Holland Unparalleled resident experience Cheyne Chalmers Expansion targeting high value Chris Evans Leadership for sustainable performance Marsha Cadman Close an
Slide 3: Welcome
Welcome David Bennett Chief Financial Officer Artist’s impression of our Bert Newton Village in Melbourne. 3
Slide 4: Opening remarks
Opening remarks Richard Umbers Group Chief Executive Artist’s impression of our Kevin Hickman Village in Christchurch. 4
Slide 5: Our Speakers today
Our Speakers today Richard Umbers David Bennett Cheyne Chalmers Cameron Holland GROUP CHIEF GROUP CHIEF CHIEF EXECUTIVE CHIEF EXECUTIVE EXECUTIVE FINANCIAL OFFICER OFFICER OFFICER – NEW ZEALAND – AUSTRALIA Marsha Cadman Chris Evans Irihapeti Bullmore Hayden Strickett CHIEF SALES AND CHIEF DEVELOPMEN
Slide 6: Purpose of today
Purpose of today • Meet some of our senior team • Introduce the strategic framework for value creation • Launch our sustainability strategy • Experience our strategy in action through the village tours Image: Fit-out Site Manager Jason-QY Zhao and Site Administrator Matakeu Timms at our Miriam Corba
Slide 7: Ryman at a glance
Ryman at a glance 45 13,200 9 Operational Residents Million care villages hours provided 16 6,700 8x Villages under Team members Reader’s Digest construction Most Trusted Brand Note: All figures reflect FY22. 7
Slide 8: Strategic framework: purpose, ambition and quadrants
for people as we grow older. PURPOSE Enhancing freedom, connection and well-being BRAND POSITIONING Ryman puts great care into creating communities that challenge the conventions of ageing. OUR AMBITION Grow underlying profit | Maintain high occupancy | Achieve resident NPS target | Achieve staff NP
Slide 9: Responding to a changing market
Responding to a changing market • Targeting higher value locations • Targeting wealthier demographics • Rebalancing care to independent living • Introducing care suites • Expanding into home care • DMF phasing for ILUs decreased to four years Image: Artist’s impression of our upcoming Takapuna Villa
Slide 10: Demographics underpinning demand
Demographics underpinning demand 2.4x New Zealand 75+ population1 2021 - 2051 2.1x Victoria 75+ population2 2021 - 2051 1,000,000 1,000,000 800,000 800,000 600,000 600,000 400,000 400,000 200,000 200,000 - - 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046 2051 2001 2006 2011 2016 2021 2026 2031 20
Slide 11: The best continuum of care for ageing well
The best continuum of care for ageing well Cameron Holland Chief Executive Officer – Australia Rosemary, a resident at our Diana Isaac Village in Christchurch, enjoys a stroll with Registered Nurse Sandra Hendriks. 11
Slide 12: The best continuum of care for ageing well
The best continuum of care for ageing well • Leverage competitive advantage from our quality care brand • Expand our continuum of care offering with care suites and home care services • Continue to develop our dementia services to enhance resident’s wellbeing • Focus on the resident journey Image: N
Slide 13: Discussion Document: Key Recommendations
Discussion Regulation Workforce Document: Synchronizing regulation by Clear training and immigration Key Recommendations establishing a national regime pathways and removing tax to govern the retirement living inequities between private and and aged care sectors as one, not-for-profit operators. in
Slide 14: Expanding our continuum of care offering
Expanding our Continuum of care continuum of care offering Independent Living Home Care* Assisted Living 24/7 Care Special Care Ryman offer • Deliver Home Care Townhouse services to existing formats to improve Independent apartment return per unit Serviced apartment • Introduce new care suites to ou
Slide 15: Home Care opportunity in Australia
Home Care opportunity in Australia Home Care funding settings in Australia work well within our existing continuum of care model Personal Care Domestic tasks Companionship Allied Health Aids & equipment Carer support Image: Ryman carer demonstrating our Home Care services. 15
Slide 16: Unparalleled resident experience
Unparalleled resident experience Cheyne Chalmers Chief Executive Officer – New Zealand Ryman resident Terry at our Logan Campbell Village in Auckland, who won an Olympics@RYMAN gold medal in swimming. 16
Slide 17: Raising the bar on resident experience
Raising the bar on resident experience • Pricing review of ILU and SA to realise full value for access to community assets • Leverage our scale • Invest in digital innovation • Continue to invest in our communities • Focus on operational excellence • Shift to a ‘COVID normal’ environment Image: Bert
Slide 18: Competitors and supporters celebrating the Olympics@Ryman
Competitors and supporters celebrating the Olympics@Ryman 18
Slide 19: Watch video online
Watch video online www.youtube.com/watch?v=eKfS1Z08y6s 19
Slide 20: Proud to be voted New Zealand's most trusted brand
PROUD TO BE VOTED NEW ZEALAND’S MOST TRUSTED AGED CARE AND RETIREMENT VILLAGE BRAND FOR THE EIGHTH TIME. Sesessss.
Slide 21: Innovations in resident experience
Innovations in resident experience Above: New resident app. 21 Left: Improved food service delivery through new Saffron software.
Slide 22: Our new normal: Living with COVID
Our new normal: Living with COVID Ernest Rutherford Village in Nelson. 22
Slide 23: Meeting the wero (challenge)
Meeting the wero (challenge) • New Ngā Paerewa Ministry of Health standards govern all publicly funded providers • Partnership approach to • Provide safe, equitable workplaces, and • Deliver safe, equitable and culturally appropriate care and services for residents and their whanau. • Taha Māori Kai
Slide 24: Expansion targeting high value
Expansion targeting high value Chris Evans Chief Development & Construction Officer Artist’s impression of our upcoming Northwood Village in Christchurch. 24
Slide 25: Optimising construction for value creation
Optimising construction for value creation Focusing on value created per unit built • New communities in premium locations • Introducing new care suites and unit finishes • Rebalancing care to independent living • Diversifying landbank to manage capital intensity Group platform delivering operationa
Slide 26: Newer sites: Higher value locations
Newer sites: Higher value locations Victoria1 New Zealand2 7of 7 new sites in catchment areas 6 of 9 new sites in catchment areas above NZ median house price (>1.0x) above VIC median house price (>1.0x) KEY Sites opened 2.5 2.5 2.4 2.5 before 2015 2.4 2.4 2.2 2.2 2.2 Sites opened from 2.0 2.0 1.9 1.
Slide 27: The benefit of focusing on high value sites
The benefit $8.0bn of focusing on high $6.0bn value sites $4.0bn • We anticipate generating $6.8 billion of capital proceeds from the 29 sites in our land bank when $2.0bn they are fully occupied and sold down • Our 32 fully sold villages currently contribute - $3.6 billion of 32 fully developed vil
Slide 28: Diversifying our land bank
Nukuhau, Taupō Rolleston, Canterbury Diversifying our land bank Four of the last five sites added to our land bank will be townhouse style developments Coburg North, Melbourne More efficient capital recycling and lower peak project debt Nukuhau, Taupō - Announced June 2022 Rolleston, Canterbury - An
Slide 29: Newer sites: Smaller care centres
Newer sites: Smaller care centres Sites opened before 2015 104 Average no. beds New care centre design typically 40-80 beds (vs 120+ historically) Sites opened 112 from 2015 Average no. beds New sites 73 225 (U/C or 194 193 landbank) Average no. beds 200 175 157 151 148 150 124 123 120 120 120 120 1
Slide 30: Cross-laminated Timber pilot
Cross-laminated Timber pilot • Mass timber construction using cross-laminated timber (CLT) is being used at our Kevin Hickman development • This replaces some structural elements previously made from concrete and steel • Expected reduction in embodied carbon in the cross-laminated structure is up to
Slide 31: Leadership for Sustainable Performance
Leadership for Sustainable Performance Marsha Cadman Chief Sales and Marketing Officer Image: Artist’s impression of our Kevin Hickman Village apartment buildings. 31
Slide 32: Sustainable development quote
“ Sustainable development is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Gro Harlem Brundtland 32
Slide 33: Sustainability Strategy
RYMAN HEALTHCARE Sustainability Strategy OCTOBER 2022 Artist’s impression of our Raelene Boyle Village in Melbourne. 33
Slide 34: Who we spoke to
Who we spoke to Financiers Our people Investors Our residents (current and prospects) Shareholders Our senior leadership team ( 222 =eann Ky District leadership team stakeholders health boards Selected members Local of our Board councils Commercial partners indigenous communities Suppliers 34
Slide 35: Our materiality matrix
Our materiality matrix Top 5 material issues where our stakeholders thought Ryman has the most opportunity to improve its performance are marked with a diamond. 35
Slide 36: At a glance
At a glance Find Ryman’s Sustainability Strategy on our website www.rymanhealthcare.co.nz/about-us/sustainability 36
Slide 37: Top three priorities
Top Climate change three Establish science-based emission targets priorities Quality care Deliver future-focused dementia design Indigenous engagement Enhance indigenous engagement 37
Slide 38: Closing remarks
Closing remarks • Our core values are front and centre – our commitment to a continuum of care is unwavering • We have a very clear strategy to maximise value • We continue to innovate to capture the huge potential of Ryman • Shifting to COVID normal • Our brand is as strong as ever Image: Logan Cam
Slide 39: Questions?
Questions? James Wattie resident Caroline. 39
Slide 40: Village tour pack
Village tour pack Artist’s impression of our Miriam Corban Village in Auckland. 40
Slide 41: Investor day itinerary
Investor day itinerary 01 Investor day presentation 10:40am 02 Village tour of Murray Halberg 12:00pm 03 Lunch 1:00pm 04 Bus departs to Miriam Corban 1:30pm 05 Bus departs to Keith Park 2:30pm 06 Bus departs to Auckland CBD 3:30pm 07 Drop-off in Auckland CBD 4:00pm Image: Aerial view of Murray Halbe
Slide 42: Auckland Site Tour
Auckland Site Tour Takapuna 3 Keith Park Bert Sutcliffe William Sanders 2 Miriam Corban Grace Joel Kohimarama Evelyn Page Edmund Hillary Logan Campbell Karaka Bruce McLaren 1 Murray Halberg 42 Possum Bourne Google © 2021
Slide 43: Murray Halberg
Murray Halberg Key facts and figures Key facts Announced July 2014 8.9ha site Design No. Independent 341 Serviced 86 Care beds 124 Total 551 Note: All figures reflect FY22. 43
Slide 44: Murray Halberg site layout
Murray Halberg Site layout 44
Slide 45: Miriam Corban
MW design in progress Miriam Corban Key facts and figures Key facts Announced June 2017 4.5ha site Design No. Independent 207 Serviced 77 Care beds 60 Total 344 Note: All figures reflect FY22. 45
Slide 46: Miriam Corban site layout
Miriam Corban Site layout 46
Slide 47: Keith Park
Keith Park Key facts and figures Key facts Announced November 2016 4.1ha site Design No. Independent 276 Serviced 101 Care beds 120 Total 497 Note: All figures reflect FY22. 47
Slide 48: Keith Park site layout
Keith Park Site layout 48
Slide 49: Villages New Zealand + Australia
45 Villages 38 New Zealand + 7 Australia Victoria COBURG NORTH ESSENDON TERRACE ESSENDON RAELENE BOYLE KEALBA NELLIE MELBA JOHN FLYNN WEARY DUNLOP RINGWOOD EAST MULGRAVE CHARLES BROWNLOW MT ELIZA DEBORAH MT MARTHA CHEETHAM @ BERT NEWTON New Zealand WHANGAREI OOO sucktannd TAURANGA HAMILTON CAMBRIDGE
Slide 50: Thank you
RYMAN HEALTHCARE Full year result Thank you Ryman residents Arthur, Jeanette & Christine. 50
Slide 51: Disclaimer
Disclaimer This presentation sets out information relating to Ryman Healthcare Limited’s 2022 investor day and asset tour. 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 our website at www.