Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — FY2014 Earnings Presentation
43 slides from Ryman Healthcare's earnings presentation, May 15, 2014
Slide 1: Ryman Healthcare Limited Annual Results Briefing
Ryman Healthcare Limited Annual Results Briefing 15 May 2014
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Slide 3: Underlying Profit
Underlying Profit 120 100 80 $ million 60 40 20 0 2
Slide 4: IFRS Profit
IFRS Profit Underlying Profit $118.2m Plus Unrealised revaluations of RV units +$85.1m Less Deferred tax movement -$8.5m Reported Net Profit – IFRS $194.8m Our emphasis is on trading profits not unrealised valuation movements 3
Slide 5: Dividend History
Dividend History 12.0 10.0 cents per share 8.0 6.0 4.0 2.0 0.0 (adjusted for share split) 4
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Slide 7: Median Caregiver Pay Rate
Median Caregiver Pay Rate Industry $15.13 Ryman $16.30 $14.00 $14.50 $15.00 $15.50 $16.00 $16.50 $17.00 Source: NZACA Survey – In Touch (Issue 2 2014) 6
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Slide 9: Large Operators
Large Operators BUPA Oceania Summerset Metlifecare Ryman - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Aged Care Beds Retirement Village Units 8
Slide 10: Lounge - Dementia Facility, Diana Isaac Retirement Village, Christchurch
Lounge - Dementia Facility, Diana Isaac 9 Retirement Village, Christchurch
Slide 11: Lounge - Dementia Facility, Diana Isaac Retirement Village, Christchurch
Lounge - Dementia Facility, Diana Isaac 10 Retirement Village, Christchurch
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Slide 14: Sir Edward Weary Dunlop
Sir Edward Weary Dunlop • He was born in Victoria in 1907 and trained first as a pharmacist and then as a doctor • He was an Australian surgeon who is renowned for his leadership and courage while being held prisoner by the Japanese during World War II • He was also an outstanding rugby player, and
Slide 15: Weary Dunlop Retirement Village, Melbourne
14 Weary Dunlop Retirement Village, Melbourne
Slide 16: Charles Fleming Retirement Village, Waikanae
15 Charles Fleming Retirement Village, Waikanae
Slide 17: Net Promoter Score Benchmarks
Net Promoter Score Benchmarks All Industries -15 Retirement Villages 25 Ryman 66 -20 0 20 40 60 80 Net Promoter Score Source: McCrindle Baynes Villages Census Report 2013 16
Slide 18: Relatives Survey September 2013
17 Relatives Survey September 2013 Care Centre How would you rate your relative’s overall experience at this village? Anthony Wilding 0% | Very good 0 Good Ryman Average 1% reir (0) Poor Industry Average We received 85 responses to the survey, and we appreciated the time taken by relatives to respon
Slide 19: Shopping mall Flash Mob, Christchurch
18 Shopping mall Flash Mob, Christchurch
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Slide 21: Andrew Mitchell and Rob Hutchinson at Devonport site
Andrew Andrew Mitchell (development manager) and Rob Hutchinson (chief executive, Whai Rawa) at 20 Devonport site
Slide 22: Population Growth 75+
Population Growth 75+ 25,000 20,000 Growth pa 15,000 10,000 5,000 0 21
Slide 23: Population Growth 75+
Population Growth 75+ 25,000 20,000 Growth pa 15,000 10,000 5,000 0 22
Slide 24: NZ Development Activity
NZ Development Activity Jane Mander Evelyn Page Devonport Birkenhead Bruce McLaren Edmund Hillary Bob Owens Jean Sandel Kiri Te Kanawa Charles Fleming Petone Beckenham Courts Diana Isaac 23
Slide 25: Highlights – Beckenham Courts Retirement Village, Christchurch
Highlights – BC 24 Beckenham Courts Retirement Village, Christchurch
Slide 26: Highlights – Bruce McLaren Retirement Village, Auckland
Highlights – BM – Matt & Chrissie on site 25 Bruce McLaren Retirement Village, Auckland
Slide 27: Weary Dunlop Retirement Village, Melbourne
26 Weary Dunlop Retirement Village, Melbourne
Slide 28: Weary Dunlop residents first drinks/nibbles
WD – residents first drinks/nibbles Residents cocktail function at Weary Dunlop, 27 Melbourne
Slide 29: Underlying Profit
Underlying Profit 120 100 80 $ million 60 40 20 0 28
Slide 30: Shareholders Equity
Shareholders Equity 1000 800 $ million 600 400 200 0 29
Slide 31: Interest Bearing Debt to Equity %
Interest Bearing Debt to Equity % 50 40 Percentage % 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 2014 New Zealand Australia 30
Slide 32: Landbank
Landbank 5,000 4,000 Units / beds 3,000 2,000 1,000 0 2008 2009 2010 2011 2012 2013 2014 New Zealand Australia 31
Slide 33: Long Term Capital Efficiency
Long Term Capital Efficiency $25m raised at IPO in 1999 Invested $1.4bn in portfolio since With no fresh capital Dividends of $349m paid* since float Self funded growth Conservative bank debt 32 * includes $31m final dividend payable 20 June 2014
Slide 34: Summary
Summary Strong profit growth Big investment in care Acquired six new sites in NZ Lifted build rate target for 2017 Melbourne off to a good start Secured 2nd Melbourne site 33
Slide 35: Appendices
Appendices 34
Slide 36: App 1: Share Performance
App 1 : Share Performance Ryman 9.00 8.00 7.00 Share Price $* 6.00 5.00 4.00 NZX 50 3.00 2.00 1.00 0.00 * Adjusted for share split 35
Slide 37: App 2: Statistics
App 2 : Statistics Sales of Occupation Rights Mar-14 Mar-13 Mar-12 Mar-11 Mar-10 Existing units Independent 239 232 186 153 157 Serviced 302 247 220 198 205 541 479 406 351 362 New units Independent 358 385 283 251 168 Serviced 78 121 91 97 101 436 506 374 348 269 Units Independent 2,882 2,533 2,145
Slide 38: App 3: Asset Base
App 3 : Asset Base As at 31 March 2014 Village Name Location Aged Care Beds Retirement Village Units Total Woodcote Christchurch 49 25 74 Beckenham Courts Christchurch 40 54 94 Margaret Stoddart Christchurch 41 45 86 Frances Hodgkins Dunedin 51 74 125 Rowena Jackson Invercargill 157 149 306 Malvina
Slide 39: App 4: Landbank
App 4 : Landbank As at 31 March 2014 Village Name Location Aged Care Beds Retirement Village Units Total Existing Sites 80 311 391 New Sites Bruce McLaren Auckland 123 272 395 Petone Wellington 114 321 435 Birkenhead Auckland 102 299 401 Narrow Neck (Site B) Auckland 110 240 350 Site A Auckland 100
Slide 40: App 5: Portfolio Growth
App 5 : Portfolio Growth 7000 6000 5000 units / beds 4000 3000 2000 1000 0 Retirement Village Units Aged Care Beds 39
Slide 41: App: Median NZ House Price
App 6 : Median NZ House Price $450,000 $400,000 Median House Price $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 40 Source : REINZ
Slide 42: App: Sales of Occupation Rights
App 7 : Sales of Occupation Rights 1000 900 800 700 Number 600 500 400 300 200 100 0 Resales New Sales 41
Slide 43: Villages and proposed villages
| Friendly Villages Proposed village