Ryman Healthcare Ltd. · NZX:RYM

Ryman Healthcare — Investor Presentation (May 2011)

46 slides from Ryman Healthcare's investor presentation, May 2011

  1. Slide 1: Ryman Healthcare Investor presentation May 2011

    Ryman Healthcare Investor presentation May 2011

  2. Slide 2: Overview

    Overview  What we offer our residents  How we make money  12 years of being listed  Underlying growth drivers  Build programme  Q&A

  3. Slide 3: What we offer our residents

    What we offer our residents

  4. Slide 4: Our Business

    Our Business  We offer our residents:  Home  Community  Companionship  Security  Peace of Mind  Care

  5. Slide 5: Swimming Pool

    Swimming Pool

  6. Slide 6: Nurse & Resident

    Nurse & Resident

  7. Slide 7: Ryman Village

    Ryman Village  Independent Living  Two bedroom townhouse  Property services and community activities  Assisted Living  One bedroom apartment (not self contained)  Housekeeping & Meals (plus care packages)  Rest Home / Hospital / Dementia  Village Centre

  8. Slide 8: EH aerial finished

    EH aerial finished

  9. Slide 9: Childrens Party

    Childrens Party

  10. Slide 10: Movie

    Movie

  11. Slide 11: Er3

    Er3

  12. Slide 12: Triple A

    Triple A

  13. Slide 13: Gardens

    Gardens

  14. Slide 14: Our cash flows and financials

    Our cash flows and financials

  15. Slide 15: Cash flow streams

    Cash flow streams  Care fees  Receive weekly fee for service and achieve margin  New sales of Occupation Rights  Where we collect an Occupancy Advance from new residents for the right to occupy new units we have constructed  The Occupancy Advance is greater than the cost of construction  Resal

  16. Slide 16: Example

    Example Single Retirement Village Unit Cash Flows When First Built: Cost to build unit -$200,000 Receive capital sum from first resident +$250,000 Net Cash Gain +$50,000 When Unit Vacated (e.g. after 5 years): Repay capital sum to first resident -$200,0001 Receive capital sum from next resident +$30

  17. Slide 17: Sustained growth in over 12 years since listing

    Sustained growth in over 12 years since listing

  18. Slide 18: Share Performance since float

    Share Performance since float 3.00 Ryman 2.50 Share Price $* 2.00 1.50 1.00 0.50 NZSX 50 0.00 09 10 11 01 02 03 04 05 06 07 08 99 00 20 20 20 20 20 20 20 20 20 20 20 19 20 * Adjusted for share split

  19. Slide 19: Underlying Profit

    $ million 0 10 20 30 40 50 60 70 80 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 Underlying Profit 20 09 20 10 20 11

  20. Slide 20: Dividend History

    Dividend History 8.0 7.0 cents per share 6.0 5.0 4.0 3.0 2.0 1.0 0.0 09 01 04 06 07 08 10 11 00 02 03 05 20 20 20 20 20 20 20 20 20 20 20 20 (adjusted for share split)

  21. Slide 21: Shareholders Equity

    Shareholders Equity 600 560 520 480 440 400 $ million 360 320 280 240 200 160 120 80 40 0 01 02 00 04 05 03 06 07 09 10 08 11 20 20 20 20 20 20 20 20 20 20 20 20

  22. Slide 22: Long Term Capital Efficiency

    Long Term Capital Efficiency  $25m raised at IPO in 1999  Invested $845m in portfolio since  With no fresh capital since listing  Meanwhile dividends of $200m paid out  Self funded growth from operating cash flows  Conservative bank debt – 28% D/E

  23. Slide 23: Interest Bearing Debt to Equity %

    Interest Bearing Debt to Equity % 50 45 40 35 Percentage % 30 25 20 15 10 5 0 2007 2008 2009 2010 2011

  24. Slide 24: Underlying Profits excl non cash

    Underlying Profits excl non cash Underlying Profit $72.1m Plus Unrealised revaluations of RV units +$30.7m Less Deferred tax movement -$2.6m Reported Net Profit - IFRS $100.2m Our emphasis is on trading profits not unrealised valuation movements

  25. Slide 25: Long term growth drivers

    Long term growth drivers

  26. Slide 26: Competitive Advantage

    Competitive Advantage  Brand reputation – 25 years in sector  Experienced team and Board  Unique integrated villages  ‘Needs’ focus  Greenfields sites  Vertical integration – we do it all  Pricing structure – Ryman Peace of Mind  Scale – replicating what we do  Access to capital

  27. Slide 27: Underlying Growth Drivers

    Underlying Growth Drivers  Growing elderly population  Long term care demand growing – people living older but frailer  Developing unique Ryman new villages  Growing acceptance of retirement villages  Strength of Ryman brand

  28. Slide 28: Growing Elderly Population

    Growing Elderly Population  Currently 250,000 aged 75+ years  Historically grown at rate of 5,000 pa  Will grow at rate of 16,000 pa by 2021  By 2031 75+ years population projected to more than double to 516,000  Within this the 85+ population is the fastest growing  From 66,000 today to 144,0

  29. Slide 29: NZ Aged Care Sector Review

    NZ Aged Care Sector Review  Joint Government, DHB and Industry review  The most extensive aged care review ever undertaken in NZ. Key findings:  By 2026 between 12,000 and 20,000 extra residents will require aged residential care (currently only 34,000 beds)  50% of current stock over 20 years o

  30. Slide 30: Population 75+

    population 000 0 100 200 300 400 500 19 96 19 98 20 00 20 02 20 04 20 06 20 08 20 10 20 12 20 14 20 16 20 18 20 Source: Statistics NZ 20 20 22 Population 75+ 20 24 20 26 20 28 20 30

  31. Slide 31: Population increase per annum

    population increase per annum 19 0 4,000 8,000 12,000 16,000 96 -2 00 1 20 01 -2 00 6 20 06 -2 00 9 20 09 -2 01 1 20 11 -2 01 6 20 16 -2 02 Source: Statistics NZ 1 20 21 -2 02 6 20 26 -2 03 1 Population 75+ rapidly increases

  32. Slide 32: Australian plans

    Australian plans  Actively seeking a site for first village in Australia  One village at a time  Relatively unique to offer Ryman model of full range of care on one integrated site  Initial focus Melbourne  Funded by bank debt / strong operating cash flows  Commitment to NZ growth unchanged

  33. Slide 33: Our Portfolio and Build Programme

    Our Portfolio and Build Programme

  34. Slide 34: Village portfolio map

    Jane Mander Evelyn Page Grace Joel Planning stage Edmund Hillary Bob Owens Construction activity Completed village Hilda Ross Kiri Te Kanawa Jean Sandel Princess Alexandra Jane Winstone Julia Wallace Waikanae Shona McFarlane Ernest Rutherford Malvina Major Rita Angus Ngaio Marsh Margaret Stoddart Be

  35. Slide 35: Build Programme now at volumes pa

    Build Programme now at 550 600 550 500 450 volumes pa 400 350 300 250 200 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Units Beds

  36. Slide 36: Portfolio Growth

    Portfolio Growth RV units have more than doubled 3000 2500 units / beds 2000 Aged care beds up 1500 two thirds 1000 500 0 2006 2007 2008 2009 2010 2011 Retirement Village Units Resthome/Hospital Beds

  37. Slide 37: Jane Mander

    Jane Mander

  38. Slide 38: Jane Mander

    Jane Mander

  39. Slide 39: rah Tal

    rah Tal

  40. Slide 40: Jane Mander

    Jane Mander

  41. Slide 41: EP site

    EP site

  42. Slide 42: EP main block

    —— 2 ; \ehatntn' =! se

  43. Slide 43: EP ILUs

    EP ILUs

  44. Slide 44: Summary

    Summary  Strong financial position from which to drive further growth from:  Completed villages  Care earnings  New units / beds – NZ at 550 pa – Australia  To meet needs of rapidly growing 75+ population over next 20 years of 12,000 per annum

  45. Slide 45: Summary (continued)

    Summary (continued)  Capacity and capability for growth  Proven execution ability of self funded growth  Financial strength  Tail of growing recurring earnings at mature villages  Supported by long term demographics  Strong brand position and reputation  Happy residents  Long term growth pro

  46. Slide 46: Malvina Ladies

    Malvina Ladies

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