Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — FY2015 Earnings Presentation
45 slides from Ryman Healthcare's earnings presentation, May 22, 2015
Slide 1: Ryman Healthcare Annual Results Briefing
Ryman Healthcare Annual Results Briefing 22 May 2015
Slide 2: Slide 2
Slide 3: Landmark year
Landmark year • Underlying profit up 15.3% to $136.3m – 13th consecutive year of profit growth • First village opened in Melbourne, second site acquired – target set to open five villages by 2020 • Six new villages under way in Auckland
Slide 4: Underlying Profit
Underlying Profit 140 120 100 80 $ million 60 40 20 0
Slide 5: Dividend History
Dividend History 14 12 cents per share 10 8 6 4 2 0 (adjusted for share split)
Slide 6: Landmark year
Landmark year • Underlying profit up 15.3% to $136.3m – 13th consecutive year of profit growth • First village opened in Melbourne, second site acquired – target set to open five villages by 2020 • Six new villages under way in Auckland
Slide 7: Slide 7
Slide 8: NZ Aged Care Bed Demand
NZ Aged Care Bed Demand 50,000 Demand 45,000 Aged care beds 40,000 Capacity 35,000 30,000 25,000
Slide 9: MyRyman
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Slide 10: it “fella ‘ni pao
— A it “fella ‘ni pao a uN wii
Slide 11: Birkenhead Village
7) oT) x > 3 oO o £ < o x — ao
Slide 12: Slide 12
Slide 13: Step Up in Build Rate
Step Up in Build Rate 1,500 1,000 Units/ Beds 500 0 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Slide 14: Photo on site
Photo on site at WD
Slide 15: Major Operators (Australia)
Major Operators (Australia) Japara Ality Estia Regis Opal BUPA Australian Unity Retire Australia Stockland Aveo Lend Lease - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Aged Care Beds Retirement Village Units
Slide 16: 2020 - Our Share of 75+ Market
2020 - Our Share of 75+ Market New Zealand Victoria 1,500 14,000 350,000 467,000 75+ Population Ryman
Slide 17: Auckland map
RYMAN HEALTHCARE v Riverhead Forest Riverhead u APUNA ry Rangitoto Island Scenic Reserve Devonport land Muriwai Bethells Beach Auckland Centennial Park Piha Q Karekare Manukau Heads Clarks Beach Glenbrook Pukekohe Manga’
Slide 18: Birkenhead Village
7) oT) x > 3 oO o £ < o x — ao
Slide 19: Our share of 75+ Auckland market
Our share of 75+ Auckland market 2015 2020 2,120 4,500 75,988 94,892 75+ Population Ryman
Slide 20: Slide 20
Slide 21: Slide 21
Slide 22: Underlying Profit
Underlying Profit 140 120 100 80 $ million 60 40 20 0
Slide 23: Sales Volume
Sales Volume 1400 1200 1000 800 Units 600 400 200 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Resales New Sales
Slide 24: Slide 24
Slide 25: Step Up in Build Rate
Step Up in Build Rate 1,500 1,000 Units/ Beds 500 0 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Slide 26: Resales
Resales • 63 units available for resales at year end – 1 month’s stock • Resale bank lifts to $420m – Difference between last price and current price
Slide 27: sade >,
sade 3 >,
Slide 28: Total Assets
Total Assets 3.5 3.0 2.5 2.0 $b 1.5 1.0 0.5 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 29: Step up in Investment
Step up in Investment 350 300 250 200 $ million 150 100 50 0 2009 2010 2011 2012 2013 2014 2015
Slide 30: Long term capital efficiency
Long term capital efficiency • $25m raised at IPO in 1999 • Invested $1.7bn in portfolio since • With no fresh capital • Dividends of $418m* paid since float • Self-funded growth • Conservative bank debt * Includes $36.5 million dividend to be paid on June 26, 2015
Slide 31: Landmark Year
Landmark Year • Underlying profit up 15.3% to $136.3m – 13th consecutive year of profit growth • First village opened in Melbourne, second site acquired – target set to open five villages by 2020 • Six new villages under way in Auckland
Slide 32: Appendices
Appendices
Slide 33: App 1: Statistics
App 1 : Statistics Sales of Occupation Rights March 2015 March 2014 Existing units Independent 300 239 Serviced 330 302 630 541 New units Independent 407 358 Serviced 138 78 545 436 Portfolio and Build Rate Retirement village units Independent 3,300 2,882 Serviced 1,492 1,325 4,792 4,207 Units built
Slide 34: App 2: Margin
App 2 : Margin March 2015 March 2014 New Sales $000s $000s Reference Realised Fair Value movement – new RV units (Note 3) 61,597 50,324 Sale of occupation rights – new RV units (Key statistics) 249,096 173,964 Gross development margin % 25% 29% Resales Realised Fair Value movement – existing RV unit
Slide 35: App 3: Asset Base
App 3 : Asset Base Hospital Special Care Resthome Serviced Independent Total (as at 31 March 2015) Woodcote Christchurch - - 49 7 18 74 Beckenham Courts Christchurch 41 24 30 58 22 175 Margaret Stoddart Christchurch - - 41 25 20 86 Frances Hodgkins Dunedin - - 51 32 42 125 Rowena Jackson Invercargil
Slide 36: App 4: Landbank
App 4 : Landbank Hospital Special Care Resthome Serviced Independent Total (as at 31 March 2015) Existing Sites Princess Alexandra Napier - - - - 3 3 Jane Winstone Wanganui - - - 2 - 2 Rowena Jackson Invercargill - - - - 2 2 Edmund Hillary Auckland - - 1 2 - 3 Jean Sandel (extn) New Plymouth - - - -
Slide 37: App 5: Cash Management Fees
App 5 : Cash Management Fees March 2015 March 2014 $000s $000s Reference Accrued Management Fees – Opening (Note 4) and PY financials 163,327 137,415 Less: Accrued Management Fees – Closing (Note 4) -191,679 -163,327 Movement in Accrued Management Fees -28,352 -25,912 Plus: DMF income Income stateme
Slide 38: App 6: New units/beds
App 6 : New units/beds New units / Beds Built 2015 2014 2013 2012 Retirement units New Zealand 412 421 517 388 Australia 173 - - - Group 585 421 517 388 Care beds New Zealand 208 186 226 322 Australia 82 - - - Group 290 186 226 322 Total new units and beds New Zealand 620 607 743 710 Australia 255 -
Slide 39: App 7: Portfolio Growth
App 7 : Portfolio Growth 8000 7000 6000 units / beds 5000 4000 3000 2000 1000 0 Retirement Village Units Aged Care Beds
Slide 40: App 8: Shareholders' Equity
App 8: Shareholders’ Equity 1200 1100 1000 900 800 $ million 700 600 500 400 300 200 100 0
Slide 41: App 9: Population growth 75+
App 9: Population growth 75+ 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 New Zealand Victoria
Slide 42: NZ Current Development Activity
NZ Current Development Activity Birkenhead Devonport Tropicana Greenlane Bruce McLaren Pukekohe Jean Sandel Kiri Te Kanawa Jane Winstone Charles Fleming Bob Scott Newtown Rangiora
Slide 43: App 10: Development Timeframe
App 10: Development Timeframe
Slide 44: Slide 44
Slide 45: Slide 45