Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — FY2021 Earnings Presentation
61 slides from Ryman Healthcare's earnings presentation, Mar 31, 2021
Slide 1: Full year result
R Y M A N H E A LT H C A R E Full year result 31 March 2021 1
Slide 2: Full year highlights
Full year highlights Underlying profit* of $224.4 million, a decrease of 7.3% Reported (IFRS) profit of $423.1 million, up 59.8% Full year dividend of 22.4 cents per share, reflecting 50% of underlying profit We have now returned more than $1 billion to shareholders since 1999 Cash receipts of $1.18
Slide 3: Full year underlying profit
Full year underlying profit Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Refer to slide 27 for a breakdown of underlying profit. 3
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Slide 6: Olympics at Ryman
OLYMPICS “AT RYMAN
Slide 7: Cameron Holland, Greg Campbell, Chris Evans
Cameron Holland Greg Campbell Chris Evans CEO - Australia Director Chief Construction Officer 7
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Slide 12: Ocean Grove, John Flynn, Nellie Melba
Ocean Grove Nellie Melba John Flynn Charles Brownlow Weary Dunlop 12
Slide 13: Essendon, Melbourne
Essendon, Melbourne Site boundary is indicative only 13
Slide 14: Keith Park, James Wattie, Miriam Corban
Keith Park James Wattie Miriam Corban 14
Slide 15: Murray Halberg, William Sanders, Linda Jones
Murray Halberg William Sanders Linda Jones 15
Slide 16: Kohimarama, Northwood, Takapuna
Kohimarama, Auckland Northwood, Christchurch Takapuna, Auckland 16
Slide 17: Cambridge Karaka
Cambridge Karaka Site boundaries are indicative only 17
Slide 18: Village construction sites
Murray Halberg Linda Jones Nellie Melba William Sanders James Wattie Charles Brownlow Miriam Corban John Flynn Ocean Grove Keith Park Aberfeldie Riccarton 18
Slide 19: 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 Charles Brownlow Aberfeldie Keith Park James Wattie Mt Martha Mt Eliza Karori Park Terrace Ocean
Slide 20: Development pipeline (March 2021)
Villages Design Consenting Council Construction Village Final Development William Sanders approval open stages pipeline Charles Brownlow Nellie Melba Murray Halberg (March 2021) Linda Jones John Flynn Miriam Corban James Wattie Ocean Grove Aberfeldie Keith Park Riccarton Park Highett Ringwood East T
Slide 21: Ryman Pioneers
RYMAN PIONEERS
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Slide 27: Reported profit
Reported profit Mar 21 Mar 20 Underlying profit (non-GAAP) $224.4m $242.0m Unrealised revaluations of investment properties +$201.2m -$70.9m Deferred tax credit +$12.6m +$93.6m Impairment - loss on disposal -$15.1m - Reported net profit $423.1m $264.7m Underlying profit is a non-GAAP (Generally Acce
Slide 28: Full year reported (IFRS) profit
Full year reported (IFRS) profit 28
Slide 29: Cash receipts from residents
Cash receipts from residents 29
Slide 30: Value of contracts not settled
Value of contracts not settled 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 yet occupied the unit. These are for new sales only. 30
Slide 31: Investing cash flows $844 million
Investing cash flows $844 million 31
Slide 32: Total assets
Total assets Note: Interest bearing debt represents “interest-bearing loans and borrowings” in the balance sheet and includes secured bank loans, unsubordinated fixed-rate retail bonds and USPP notes. As documented in the Group's facility agreement, the Group has a right to off-set cash balances hel
Slide 33: Gross occupancy advances
$4.5bn $4.0bn Gross occupancy advances $3.5bn c a ° oO eo $2.5bn $2.0bn $1.5bn $1.0bn 33
Slide 34: Debt profile and source of funding
Debt profile and source of funding Note: Debt profile and source of funding represents total interest-bearing loans and borrowings following the refinancing of the Group’s NZD and AUD bank loan facilities and the entering into of an A$250 million institutional term loan (ITL) which occurred subseque
Slide 35: Development margin
Development margin 35% 30% 25% 20% 15% 10% 5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2024 35
Slide 36: $1.15 billion resales bank
$1.15 billion 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. 36
Slide 37: Long-term capital efficiency
Long-term capital efficiency $25 million raised at IPO in 1999 Invested $5.24 billion in portfolio since 1999 with no fresh capital Dividends of over $1.03 billion paid since float* Self-funded growth Strong balance sheet *Includes final dividend of 13.6 cents per share that has been declared and is
Slide 38: Questions
RYMAN HEALTHCARE
Slide 39: Appendix 1: Full year highlights
Appendix 1: Full year highlights Underlying profit* of $224.4 million, a decrease of 7.3% Reported (IFRS) profit of $423.1 million, up 59.8% Full year dividend of 22.4 cents per share, reflecting 50% of underlying profit We have now returned more than $1 billion to shareholders since 1999 Record fin
Slide 40: Appendix 1: Full year highlights
Appendix 1: Full year highlights Record $843.6 million invested in the portfolio Resales bank of $1.15 billion underpins future growth and market resilience $53 million investment in COVID-19 measures since January 2020 Continued strong demand for villages with only 1.4% of resale stock unsold 97% o
Slide 41: Appendix 2: Sale of occupation rights
Appendix 2: Sale of occupation rights Mar 21 Mar 20 Existing units Independent 433 425 Serviced 492 498 925 923 New units Independent 412 426 Serviced 91 87 503 513 Total 1,428 1,436 41
Slide 42: Appendix 3: Development
Appendix 3: Development Mar 21 Mar 20 Units and beds built Retirement village units built 560 590 Aged care beds built 176 251 736 841 Total retirement village units Independent 5,693 5,264 Serviced 2,290 2,159 7,983 7,423 Total aged care beds 4,087 3,911 Total retirement village units and beds 12,0
Slide 43: Appendix 4: Margins
Appendix 4: Margins Mar 21 Mar 20 Reference $000s $000s New sales Realised fair value movement (Note 7) 108,377 105,757 Sale of occupation rights (Key statistics) 395,094 386,673 Gross development margin 27% 27% Resales Realised fair value movement (Note 7) 107,317 109,565 Resale of occupation right
Slide 44: Appendix 5: Cash management fees
Appendix 5: Cash management fees Mar 21 Mar 20 Reference $000s $000s Accrued management fees and resident loans – opening (Note 14) 439,636 376,161 Less: Accrued management fees and resident loans – closing (Note 14) (502,890) (439,636) Movement in accrued management fees (63,254) (63,475) Plus: DMF
Slide 45: Appendix 6: Investment property summary
Appendix 6: Investment property summary CBRE unit price inflation assumption Discount rate As at 31 March 2021 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5+ Auckland 1.7% 1.0% 2.1% 3.0% 3.5% 12.8% Rest of New Zealand 1.6% 1.0% 2.0% 2.7% 3.4% 13.4% Victoria 1.8% 2.4% 2.9% 3.3% 4.1% 14.6% CBRE unit price inflation assump
Slide 46: Appendix 7: Operating cash flows
Appendix 7: Operating cash flows Mar 21 Mar 20 $000s $000s Resident receipts 360,855 333,476 Refundable accommodation deposits (net) 27,884 41,120 New sale of occupation rights 330,503 305,540 Resales of occupation rights 457,159 449,797 Total receipts from residents 1,176,401 1,129,933 Interest rec
Slide 47: Appendix 8: Available resales stock
Appendix 8: Available resales stock Mar 21 Sep 20 Mar 20 Independent living units 45 83 60 Serviced apartments 69 61 67 Total resales stock 114 144 127 Total retirement portfolio 7,983 7,689 7,423 Uncontracted stock percentage * 1.4% 1.9% 1.7% *Uncontracted resales stock as a percentage of total ret
Slide 48: Appendix 9: Capital management
Appendix 9: Capital management Gearing ($m) Mar 21 Sep 20 Mar 20 Interest bearing debt $2,254 $2,109 $1,707 Net assets $2,829 $2,454 $2,301 Total assets $9,172 $8,337 $7,677 Interest bearing debt / (interest 44.3% 46.2% 42.6% bearing debt + equity) Interest bearing debt / total 24.6% 25.3% 22.2% ass
Slide 49: Appendix 10: Resident average age and tenure (years)
Appendix 10: Resident average age and tenure (years) Average age (current) Mar 21 Mar 20 Independent 82.3 82.2 Serviced 87.5 87.5 Care centre 86.7 86.6 Average age (on entry) Mar 21 Mar 20 Independent 79.2 79.3 Serviced 85.1 86.1 Average tenure (vacated units) Mar 21 Mar 20 Independent 6.0 5.7 Servi
Slide 50: Appendix 11: Value of contracts not booked
Appendix 11: Value of contracts not booked 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. 50
Slide 51: Appendix 12: Sales price versus median house price
Appendix 12: Sales price versus median house price Note: The median house price reflects the average median house price over the last 6 months in the areas surrounding our villages. 51
Slide 52: Appendix 13: Average new and resale price
Appendix 13: Average new and resale price 52
Slide 53: Appendix 14: The 'gold' standard of care – 4 year certification
Appendix 14: 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 20 May 2021. New Zealand only. 53
Slide 54: Appendix 15: World population growth 80+
Appendix 15: World population growth 80+ 54
Slide 55: Appendix 16: Eleven sites in Victoria
Ryman village Aberfeldie Under construction Essendon Proposed village Ringwood East John Flynn Nellie Melba Weary Dunlop Highett Charles Brownlow Mount Eliza Mount Martha Ocean Grove Appendix 16: Eleven sites in Victoria 55 54
Slide 56: Appendix 17: Fourteen sites in Auckland
Takapuna Keith Park Bert Sutcliffe William Sanders Miriam Corban Kohimarama Grace Joel Evelyn Page Edmund Hillary Logan Campbell Bruce McLaren Murray Halberg Karaka Ryman village Under construction Possum Bourne Proposed village Appendix 17: Fourteen sites in Auckland 56
Slide 57: 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 58: 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 59: 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 69 237 Jean Sandel New Plymouth - - - - 59 59 Linda Jones Hamilton - - -
Slide 60: Appendix 19: Land bank (Victoria)
Appendix 19: Land bank (Victoria) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Charles Brownlow Victoria 10 - 10 30 19 69 John Flynn Melbourne 19 19 19 68 104 229 Nellie Melba Melbourne - - - - 113 113 Total existing villages 29 19 29 98 236 411 New sites Location
Slide 61: Disclaimer
Disclaimer This presentation sets out information relating to Ryman Healthcare Limited’s full year result for the period to 31 March 2021. 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