Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — 1H25 Earnings Presentation
62 slides from Ryman Healthcare's earnings presentation, Nov 28, 2024
Slide 1: Half year result
RYMAN HEALTHCARE Half year result For the period ended 30 September 2024 Presented 28 November 2024
Slide 2: Acknowledging the passing of one of our founders
RYMAN HEALTHCARE | 1H25 Result Presentation 2 Acknowledging the passing of one of our founders Kevin Hickman 4 APRIL 1950 – 23 AUGUST 2024 Ryman co-founder Kevin Hickman
Slide 3: Agenda and Presenters
RYMAN HEALTHCARE | 1H25 Result Presentation 3 Agenda Presenters Highlights 6 Governance and leadership 9 Business improvement 12 Financials 16 Capital management 26 Sales and stock 31 Dean Hamilton Naomi James Rob Woodgate CHAIR CHIEF EXECUTIVE CHIEF FINANCIAL Development 36 OFFICER OFFICER Outlook
Slide 4: Ryman at a glance
RYMAN HEALTHCARE | 1H25 Result Presentation 4 Ryman at a glance Open villages Retirement village units Residents 49 (Includes 9 villages under construction) 9,575 15,085 NZ: 40 | AU: 9 NZ: 8,195 | AU: 1,380 NZ: 12,921 | AU: 2,164 Sites under construction Aged care beds Team members 9 (All open and u
Slide 5: Ryman – a trusted brand
RYMAN HEALTHCARE | 1H25 Result Presentation 5 Ryman – a trusted brand We continue to deliver best in class experiences for our retirement and aged care residents.
Slide 6: Highlights
RYMAN HEALTHCARE | 1H25 Result Presentation 66 Highlights Ryman team member Darryl at Kevin Hickman Village
Slide 7: Highlights
RYMAN HEALTHCARE | 1H25 Result Presentation Highlights 7 Highlights Governance and leadership • Completion of Board renewal by end of calendar year 2024. • New executive team, including new CEO (started 4 November). All on new remuneration structure. Financials • Net profit before tax and fair value
Slide 8: 1H25 performance metrics
RYMAN HEALTHCARE | 1H25 Result Presentation Highlights 8 1H25 performance metrics Open villages Completed build rate Total sales of RV unit ORAs (occupation basis) 49 NZ: 40 AU: 9 667 827 One village opened in 1H25 RV units: 387 | Care beds: 280 +5% vs 787 in 1H24 (Hubert Opperman in Melbourne) +5%
Slide 9: Governance and leadership
RYMAN HEALTHCARE | 1H25 Result Presentation 99 Governance and leadership Diana Isaac Village residents June, Philip, Gillian and Russell
Slide 10: Board of directors
RYMAN HEALTHCARE | 1H25 Result Presentation Governance and leadership 10 Board of directors Board changes Dean Hamilton James Miller CHAIR NON-EXECUTIVE • Completion of Board renewal by end of Joined: June 2023 DIRECTOR calendar year 2024 with five new directors Joined: June 2023 commencing since Ju
Slide 11: Executive team
RYMAN HEALTHCARE | 1H25 Result Presentation Governance and leadership 11 Executive team Executive changes Naomi James Rob Woodgate CHIEF EXECUTIVE CHIEF FINANCIAL • New Chief Executive Officer. OFFICER OFFICER • Executive team reset from a regional Joined: November 2024 Joined: November 2023 structu
Slide 12: Business improvement
RYMAN HEALTHCARE | 1H25 Result Presentation 12 12 Business improvement James Wattie Village residents Barry and Mary
Slide 13: Business improvement programme update
RYMAN HEALTHCARE | 1H25 Result Presentation Business improvement 13 Business improvement programme update • New RV pricing • New services and • Deliver in-flight • Continue to deliver • High-performance structure support structure in projects to cost and great care while culture that balances implem
Slide 14: New pricing structure for retirement village units
RYMAN HEALTHCARE | 1H25 Result Presentation Business improvement 14 New pricing structure for retirement village units Revenue workstream Strategy Previous structure New structure • Increase in DMF and weekly fees to capture longer resident tenure and increasing village Deferred • 20% DMF standard c
Slide 15: New services and support structure
RYMAN HEALTHCARE | 1H25 Result Presentation Business improvement 15 New services and support structure Services and support workstream Strategy Progress to date Financial impact • New structure based on functional • Structure for executive team and senior • $18 million of annualised savings achieved
Slide 16: Financials
RYMAN HEALTHCARE | 1H25 Result Presentation 16 16 Financials James Wattie Village Photo, 30 September 2024
Slide 17: 1H25 financial metrics
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 17 1H25 financial metrics Cash flow from existing Cash flow from IFRS profit before tax and fair operations1 development activity1 value movements (PBTF) 1 ($7.8m) ($44.7m) ($79.8m) Down -$24.8m | 1H24: $17.1m Up $132.6m | 1H24: ($177.3m) Down -
Slide 18: Changes to financial reporting
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 18 Changes to financial reporting Ryman is continuing an extensive review of its financial reporting with the goal of enhancing the transparency of its results and ensuring greater comparability with others in the sector. The changes detailed be
Slide 19: Statutory profit and loss
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 19 Statutory profit and loss Profit and loss ($m) 1H24 1H25 YoY • Financial reporting changes in the period have had a number of Care and village fees 249.0 277.0 11% impacts in 1H25, including restatements to 1H24 financials. Deferred managemen
Slide 20: Revenue by operating segment
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 20 Revenue by operating segment Aged care beds ($m) 1H24 1H25 YoY Aged care Care fees (adjusted)2 201.5 224.9 12% • Occupancy across all 43 operational care centres decreased 1.4pp DMF3 - 0.1 - from 93.1% in 1H24 to 91.7% in 1H25, predominantly
Slide 21: Operating expenses
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 21 Operating expenses Operating expenses by function ($m) 1H24 1H25 YoY Gross operating expenses Employee expenses (221.2) (247.3) 12% Operations (42.2) (43.3) 3% • Gross operating expenses up 12% to $385.7 million. Up 11% to $375.8 Building and
Slide 22: Finance costs
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 22 Finance costs Finance costs ($m) 1H24 1H25 YoY Gross finance costs on borrowings up 15% Interest paid on borrowings (82.1) (92.9) 13% • Higher interest paid on borrowings reflects increase in debt balance and Amortisation of issuance costs (1
Slide 23: Cash flow from existing operations (CFEO)
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 23 Cash flow from existing operations (CFEO) $m 1H24 1H25 YoY Village operations • Net cash flow from village operations increased $24.2 million to $16.6 Care and village fees 251.6 284.1 32.5 million reflecting growth in care and village fees b
Slide 24: Cash flow from development activity (CFDA)
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 24 Cash flow from development activity (CFDA) $m 1H24 1H25 YoY Resident receipts • Cash flow from resident receipts declined by -$10.1 million to $250.9 New sale settlements of occupation rights 209.4 203.8 (5.6) million reflecting a 5% reductio
Slide 25: Free cash flow
RYMAN HEALTHCARE | 1H25 Result Presentation Financials 25 Free cash flow $m 1H24 1H25 YoY • Free cash flow1 improved by $107.7 million from -$160.2 million in 1H24 to Alternative cash flow presentation -$52.5 million in 1H25. Cash flow from existing operations (CFEO1) 17.1 (7.8) (24.8) • Improvement
Slide 26: Capital management
RYMAN HEALTHCARE | 1H25 Result Presentation 26 26 Capital management Miriam Corban Village Photo, 5 September 2024
Slide 27: Capital management
RYMAN HEALTHCARE | 1H25 Result Presentation Capital management 27 Capital management Balance sheet ($m) Mar-24 Mar-24 Sep-24 Change (reported) (restated) (vs restated) Balance sheet Cash and cash equivalents 42 42 23 (19) • Restatements of several balance sheet items at March 2024, in-line Trade and
Slide 28: Investment property movement
RYMAN HEALTHCARE | 1H25 Result Presentation Capital management 28 Investment property movement Movement in investment property ($m) Restatement of March 2024 investment property • Land held for development totalling $466.4 million has been reclassified to investment property from property, plant and
Slide 29: Investment property valuation
RYMAN HEALTHCARE | 1H25 Result Presentation Capital management 29 Investment property valuation Investment Property ($m) Mar-24 Sep-24 Independent valuation assumptions Subject to valuation Independent valuation – units occupied at least once1 - 3,964 At 30 September 2024 Valuer unit price inflation
Slide 30: Funding and treasury
RYMAN HEALTHCARE | 1H25 Result Presentation Capital management 30 Funding and treasury Debt facilities (NZ$m) Mar-24 Sep-24 Debt funding NZD & AUD Bank facilities 2,603 2,602 NZD retail bond 150 150 • Total debt facilities of $3,024 million at 30 September 2024. AUD institutional term loan 273 272 •
Slide 31: Sales and stock
RYMAN HEALTHCARE | 1H25 Result Presentation 31 31 Sales and stock Bert Newton Village Photo, 30 September 2024
Slide 32: Sales of ORAs now recognised on occupation
RYMAN HEALTHCARE | 1H25 Result Presentation Sales and stock 32 Sales of ORAs now recognised on occupation 1H25 sales volume 1H25 gross margins Sales are now recorded on occupation $151.9m 827 843 $140.1m From 1H25, ORAs are now recognised on occupation of a retirement unit (previously when an applic
Slide 33: New sales of ORAs
RYMAN HEALTHCARE | 1H25 Result Presentation Sales and stock 33 New sales of ORAs Independent units • New sale volumes down -5% YoY to 224 300 o Independent units up 2% to 169 sales. Top three villages were 242 Miriam Corban (26 sales), Keith Park (24 sales) and Northwood 250 (21 sales). 200 169 165
Slide 34: Resales of ORAs
RYMAN HEALTHCARE | 1H25 Result Presentation Sales and stock 34 Resales of ORAs Independent units • Resales volumes up 9% YoY to 603 350 o Resales of independent units steady at 278 (vs 272 in 1H24). 287 278 300 272 o Resales of serviced apartments up +16% to 325 driven by the 31 41 36 250 214 maturi
Slide 35: Unoccupied retirement village unit stock
RYMAN HEALTHCARE | 1H25 Result Presentation Sales and stock 35 Unoccupied retirement village unit stock • Asset base increased by 388 completed units to 9,575. • Unoccupied retirement unit stock up 182 units from 974 at March 2024 to 1,156 at September 2024, reflecting 12.1% of all completed units.
Slide 36: Development
RYMAN HEALTHCARE | 1H25 Result Presentation 36 36 Development Northwood Village Photo, 1 October 2024
Slide 37: Development summary
RYMAN HEALTHCARE | 1H25 Result Presentation Development 37 Development summary 1H25 completed build rate Completed build rate Village Townhouse Apartment Serviced Total Aged care Total units • 667 retirement village units and aged care beds delivered in 1H25 1. RV units beds and beds • 79% of delive
Slide 38: New Zealand development pipeline
RYMAN HEALTHCARE | 1H25 Result Presentation Development 38 New Zealand development pipeline At 30 September 2024 1H25 changes 5 Sites under construction 5 Greenfield sites in land bank 2,530 Units and beds in land bank Development pipeline1 Sites under construction 2 Main building (final stage) at M
Slide 39: Australia development pipeline
RYMAN HEALTHCARE | 1H25 Result Presentation Development 39 Australia development pipeline At 30 September 2024 1H25 changes 4 Sites under construction 5 Greenfield sites in land bank 2,174 Units and beds in land bank Development pipeline2 Sites under construction Village Land Asset Land Design Counc
Slide 40: Development progress
RYMAN HEALTHCARE | 1H25 Result Presentation Development 40 Development progress At 30 September 2024 Miriam Corban Opened: August 2020 Keith Park Opened: June 2021 Henderson, Auckland Hobsonville, Auckland Townhouse: 32 | Apartment: 176 | Serviced: 66 | Care: 71 Townhouse: 0 | Apartment: 276 | Servi
Slide 41: Development progress
RYMAN HEALTHCARE | 1H25 Result Presentation Development 41 Development progress At 30 September 2024 Patrick Hogan Opened: July 2023 James Wattie Opened: September 2020 Cambridge Havelock North Townhouse: 185 | Apartment: 0 | Serviced: 60 | Care: 68 Townhouse: 103 | Apartment: 44 | Serviced: 78 | Ca
Slide 42: Development progress
RYMAN HEALTHCARE | 1H25 Result Presentation Development 42 Development progress At 30 September 2024 Kevin Hickman Opened: June 2021 Northwood Opened: June 2023 Riccarton Park, Christchurch Christchurch Townhouse: 59 | Apartment: 172 | Serviced: 65 | Care: 80 Townhouse: 82 | Apartment: 83 | Serviced
Slide 43: Development progress
RYMAN HEALTHCARE | 1H25 Result Presentation Development 43 Development progress At 30 September 2024 Nellie Melba Opened: August 2018 Bert Newton Opened: June 2023 Wheelers Hill, Melbourne Highett, Melbourne Townhouse: 0 | Apartment: 332 | Serviced: 85 | Care: 190 Townhouse: 0 | Apartment: 85 | Serv
Slide 44: Development progress
RYMAN HEALTHCARE | 1H25 Result Presentation Development 44 Development progress At 30 September 2024 Hubert Opperman Opened: August 2024 Deborah Cheetham Opened: December 2020 Mulgrave, Melbourne Ocean Grove Townhouse: 70 | Apartment: 105 | Serviced: 54 | Care: 60 Townhouse: 203 | Apartment: 0 | Ser
Slide 45: Outlook
RYMAN HEALTHCARE | 1H25 Result Presentation 45 45 Outlook Bert Sutcliffe Village resident Kerry and her grandchildren
Slide 46: FY25 outlook
RYMAN HEALTHCARE | 1H25 Result Presentation Outlook 46 FY25 outlook Expect to see continuation of current environment in the second half of FY25 • Current economic conditions remain challenging in both New Zealand and Victoria. • Residential housing markets continue to be subdued in terms of both vo
Slide 47: Q&A
RYMAN HEALTHCARE | 1H25 Result Presentation 47 47 Q&A Artist’sPark Keith impression of our Northwood Village residents John andVillage. Robyn
Slide 48: Appendices
RYMAN HEALTHCARE | 1H25 Result Presentation 48 48 Appendices Diana Isaac Village resident Russell
Slide 49: Appendix 1: Aged care summary
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 49 Appendix 1: Aged care summary New Zealand aged care centres Australia aged care centres Unit 1H24 1H25 YoY Unit 1H24 1H25 YoY Operational care centres # 34 37 9% Operational care centres # 6 6 0% Mature care centres1 # 34 33 (3%) Mature care
Slide 50: Appendix 2: Occupied sales of ORAs
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 50 Appendix 2: Occupied sales of ORAs Occupied Volume Gross value Average unit price Gross margin booked Gross margin (#) ($000s) ($000s) ($000s) (%) new sales 1H24 1H25 YoY 1H24 1H25 YoY 1H24 1H25 YoY 1H24 1H25 YoY 1H24 1H25 YoY Independent NZ
Slide 51: Appendix 2: Occupied sales of ORAs cont.
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 51 Appendix 2: Occupied sales of ORAs cont. Occupied Volume Gross value Average unit price Gross margin booked Gross margin (#) ($000s) ($000s) ($000s) (%) new sales FY23 FY24 YoY FY23 FY24 YoY FY23 FY24 YoY FY23 FY24 YoY FY23 FY24 YoY Independe
Slide 52: Appendix 3: Asset base and land bank
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 52 Appendix 3: Asset base and land bank Asset base Land bank (indicative unit/bed mix) At 30 September 2024 New Zealand Australia Group At 30 September 2024 New Zealand Australia Group Townhouse 2,762 174 2,936 Townhouse 809 296 1,105 Apartment
Slide 53: Appendix 4: Unsettled RV units
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 53 Appendix 4: Unsettled RV units Unsettled RV units ($m) Mar-23 Sep-23 Mar-24 Sep-24 6-month change New sales Gross new sales receivable 23.1 25.0 27.4 29.3 1.9 Contracted and unoccupied new sales units 321.9 250.4 306.2 301.9 (4.2) Total unset
Slide 54: Appendix 5: Financial covenants
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 54 Appendix 5: Financial covenants Interest coverage ratio (ICR) for the 12 months ending 30 September 2024 Adjusted total liabilities to net tangible assets at 30 September 2024 $000s Sep-24 $000s Sep-24 Gross interest expense Adjusted total li
Slide 55: Appendix 6: Key funding metrics
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 55 Appendix 6: Key funding metrics Interest bearing debt ($000s) Financial statement reference Sep-22 Mar-23 Sep-23 Mar-24 Sep-24 NZD bank loans 1,192,740 1,277,590 1,415,130 1,483,980 1,476,980 AUD bank loans 686,141 645,179 676,357 653,099 691
Slide 56: Appendix 7: Fixed rate debt profile
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 56 Appendix 7: Fixed rate debt profile Notional value of fixed rate debt ($m) Average interest rate on fixed rate debt (%) 1,800 7.0% 6.5% 6.5% 6.5% 1,651 1,646 1,646 1,636 1,631 6.3% 6.4% 6.2% 6.3% 1,600 5.9% 6.0% 6.0% 5.9% 5.9% 6.0% 1,400 517
Slide 57: Appendix 8: Gross resale bank and resales affordability
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 57 Appendix 8: Gross resale bank and resales affordability Gross resale bank ($b)1 Resales affordability ($m) 1.95 $2.00b 1.87 $1.8m 0.18 1.78 1.60 0.13 1.71 1.61 1.63 0.18 $1.5m $1.60b 0.16 0.18 0.18 1.18 $1.2m 1.06 $1.20b 0.96 $0.9m 1.74 1.77
Slide 58: Appendix 9: Cash flow from ORA settlements
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 58 Appendix 9: Cash flow from ORA settlements Resident funding from RV units ($m) Financial statement reference 1H24 1H25 YoY New sales of occupation rights Gross new sale settlements 210.9 206.1 (4.8) Suspended contributions on new sales (1.5)
Slide 59: Appendix 10: Alternative cash flow detail
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 59 Appendix 10: Alternative cash flow detail Cash management fees ($m) Financial statement reference 1H24 1H25 YoY Accrued DMF - opening Note 11 (597.3) (713.8) (116.4) Accrued DMF - closing Note 11 (651.5) (766.2) (114.6) Movement in accrued DM
Slide 60: Appendix 11: Capex on existing operations
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 60 Appendix 11: Capex on existing operations Capex on existing operations ($m) 1H24 1H25 YoY Property projects1 12.2 10.3 (1.9) Property general2 10.9 7.1 (3.8) Technology projects1 5.6 2.4 (3.2) Technology general2 5.1 1.0 (4.1) Capex on existi
Slide 61: Glossary
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 61 Glossary Term Definition Term Definition AU Australia. Non-GAAP This is a non-GAAP measure which does not have a standardised meaning prescribed by GAAP (Generally Accepted Accounting Practice). This non-GAAP Care bed Rest home, hospital and
Slide 62: Disclaimer
RYMAN HEALTHCARE | 1H25 Result Presentation Appendices 62 Disclaimer This presentation has been prepared by Ryman Purpose of this presentation Healthcare Limited and its group companies This presentation is not an offer of financial products, or a proposal or invitation to make any such offer. It is