Ryman Healthcare Limited Notice of Meeting 2018

Notice of Annual Meeting
Dear Shareholder,
We warmly invite you to join us for the Annual Meeting of Shareholders of Ryman Healthcare Limited.
Where: Possum Bourne Retirement Village, Lisle Farm Drive, Pukekohe, Auckland.
When: Thursday 26 July 2018 at 10 am.
You are welcome to join us after the meeting for refreshments and to enjoy a tour of the village.
ORDINARY BUSINESS
1. To consider and receive the Annual Report of the company for the year ended 31 March 2018.
2. Director election and re-election:
2.1 Mr Geoffrey Cumming retires having been appointed by the board and offers himself for
election as a director of Ryman Healthcare Limited.
2.2 Mr Warren Bell retires by rotation and, being eligible, offers himself for re-election as a director
of Ryman Healthcare Limited.
2.3 Ms Jo Appleyard retires by rotation and, being eligible, offers herself for re-election as a
director of Ryman Healthcare Limited.
3. To record that Deloitte continue in offi ce as auditors and to authorise the directors to fi x their
remuneration for the ensuing year.
4. To approve an increase in the maximum directors’ fees payable to $985,000 per annum, such
amount to be divided amongst the directors in such proportion and such manner as the directors
from time to time determine (see details of increase in explanatory notes overleaf).
NOTES
1. Proxies:
A shareholder entitled to vote at the meeting but who cannot attend is entitled to appoint a proxy to
attend the meeting and vote on their behalf. A proxy need not be a shareholder in the company.
To be valid, a completed proxy form (and any certifi cate of appointment of a corporate representative
or power of attorney - refer to the notes on the proxy form) must be deposited at the company’s
registry, Link Market Services, no later than 10 am (New Zealand time) on 24 July 2018.
A proxy notice may be deposited by delivering it to the company’s registry as per the instructions on
the reverse of the proxy, which includes online voting this year.
2. Eligibility to Vote:
Any Shareholder whose name was recorded in the company’s share register at close of business on
24 July 2018 is entitled to attend the meeting and vote on the resolutions either in person or by proxy.
The resolutions required for agenda items 2, 3 and 4 are ordinary resolutions, requiring a simple
majority of the votes of those shareholders entitled to vote and voting on the resolutions.
By order of the board,
David Bennett
Company Secretary
Christchurch, 22 June 2018

Explanatory Notes
ORDINARY RESOLUTIONS 2.1 TO 2.3
Ryman Healthcare Limited’s constitution and NZX Main Board Listing Rule 3.3.6 require that any director
appointed by the board must retire from offi ce at the next annual meeting but is eligible to seek election.
Director Geoffrey Cumming retires in accordance with this requirement and offers himself for election.
The board unanimously supports the election of Geoffrey.
Geoffrey Cumming
Geoffrey Cumming is a Canada-based New Zealand citizen who is an economist, investor and
philanthropist.
He has more than 30 years’ experience as a chief executive and as a company director, having
served on more than 25 corporate boards in a wide range of countries and industries.
Geoff is a long-standing, substantial shareholder of Ryman Healthcare and previously served on
Ryman’s board at the time of the IPO.
Ryman Healthcare Limited’s constitution and NZX Main Board Listing Rule 3.3.11 require one-third of
the directors (or, if their number is not a multiple of three, then the number nearest to one-third) to
retire from offi ce at the annual meeting each year (with the retiring directors being those who have
been longest in offi ce since they were last elected or deemed elected).
Director Warren Bell and Director Jo Appleyard retire by rotation in accordance with these requirements
and, being eligible, offer themselves for re-election.
The board unanimously supports the re-election of Warren and Jo.
Warren Bell
Warren joined the board in 2011 and chairs the Audit and Financial Risk Committee.
He is an experienced public and private company director, and was previously an audit partner.
He is currently chair of Hallenstein Glasson and St George’s Hospital, and is a director of several
private companies.
Jo Appleyard
Jo Appleyard is a partner with Chapman Tripp, and is a skilled advocate and litigator specialising in
commercial, employment and resource management law.
She is recognised as a leading individual by Legal 500 Asia Pacifi c 2018. She is also recognised as
a leading lawyer by Chambers Asia Pacifi c 2018 and Chambers Global 2018.
Jo specialises in employment and resource management matters, both of which are pivotal to the
success of the company.
ORDINARY RESOLUTION 3
Deloitte is automatically reappointed as the auditor of Ryman Healthcare Limited under section 207T
of the Companies Act 1993. Pursuant to section 207S of the Companies Act 1993, this resolution
authorises the board to fi x the auditor’s remuneration.
ORDINARY RESOLUTION 4
The resolution seeks shareholder approval to increase the maximum aggregate amount of director
remuneration (“fee pool”) that may be paid each year to the directors of Ryman for their services from
$910,000 (calculated based on a board of seven directors) to $985,000 (calculated based on a board of
seven directors). Shareholder approval for the increase to $985,000 is required under NZX Listing Rule 3.5.1.
This increase in the fee pool from $910,000 to $985,000 refl ects growth in the business and the
increase in complexity that comes with expansion on both sides of the Tasman. Following the success
of Ryman’s fi rst village in Melbourne, the pace of growth in Victoria is set to increase with the goal of
opening fi ve villages by 2020. Ryman Healthcare’s 32 villages are home to more than 10,600 people, in
two countries, and there are another 16 villages in the pipeline to keep up with the demand ahead. The
corporate governance workload for directors has increased as the company expands in two countries,
and the increase in the pool refl ects this.
In accordance with NZX Main Board Listing Rule 9.3.1, no non-executive director or their associated
persons (as defi ned under the NZX Main Board Listing Rules) may vote on this resolution, unless
casting votes under an express proxy of a person who is not disqualifi ed from voting.

---

LODGE YOUR PROXY
Online
https://investorcentre.linkmarketservices.co.nz/voting/RYM
Scan& Email
meetings@linkmarketservices.co.nz
Fax
+64 9 375 5990
Deliver in person
Link Market Services Limited,
Level 11, Deloitte Centre
80 Queen Street, Auckland 1010
Mail
Link Market Services Limited
PO Box 91976
Auckland 1142

New Zealand
SCAN THIS QR CODE WITH YOUR SMARTPHONE AND
VOTE ONLINE
PROXY FORM FOR THE 2018 ANNUAL MEETING
Annual Meeting of Shareholders of Ryman Healthcare Limited (“Ryman”) will be held on Thursday 26 July 2018 at
10.00am at the Possum Bourne Retirement Village, Lisle Farm Drive, Pukekohe, Auckland.
A
PPOINTMENT OF PROXY
Any shareholder who is entitled to attend and vote at

the meeting may appoint a proxy (or representative in
the case of a corporate shareholder) to attend and vote
in their place. A proxy need not be a
shareholder of
Ryman.
For this Proxy to be valid, you must produce it to
the
company by either appointing your proxy online,

delivering, posting, faxing or emailing it, to be received
by Link Market Services no later than
10.00am,
Tuesday 24 July 2018.
If you return this form without directing the proxy how
to
vote on any particular matter, the proxy may vote
as he/
she thinks fit or abstain from voting, unless
specifically restricted from voting. Any non-executive
Director, or their associated persons, may not exercise
any discretionary proxy votes on Resolution 4. If you
return this form
without appointing a proxy your proxy
form will be invalid.
Appointing the Chairman of the meeting or a
director
as your proxy
The Chairman of the meeting or any other director is

willing to act as proxy for any shareholders who
appoints
him or her for that purpose. In making such an
appointment you acknowledge that they may exercise
your vote even if they have an interest in the outcome
of
that resolution.
V
OTING OF YOUR HOLDING
Vote by making the appropriate election, either online or
on
this form, in respect of each item of business. If you
make
more than one election in respect of a resolution
your
vote will be invalid for that resolution.
ATTENDING THE MEETING
If you propose to attend the Annual Meeting please
bring
this Proxy Form intact to the meeting, the barcode is

required for registration at the meeting.
SIGNING INSTRUCTIONS FOR PROXY FORMS
Individual
This Proxy Form must be signed by the shareholder or
his/
her/its attorney duly authorised in writing.
Joint holding
This Proxy F
orm must be signed by each, or on
behalf of, the joint shareholders (or their duly authorised
attorney).
Power of Attorney
If this Proxy Form is signed under a power of attorney,
a
copy of the power of attorney and a signed certificate
of
non-revocation of the power of the attorney, under
which
it is signed, must be produced to Ryman
Healthcare Limited
with this proxy form.
Company
This Proxy Form must be signed by a director or a
duly
authorized officer acting under the express or
implied
authority of the shareholder, or an attorney duly
authorised
by the shareholder.
VOTE ONLINE
To appoint a proxy online please go to
https://investorcentre.linkmarketservices.co.nz/voting/RYM
.
Holders will require their CSN/Holder Number and
Authorisation Code (FIN)
to complete a proxy appointment
online.
Go online to https://investorcentre.linkmarketservices.co.nz/voting/RYM to vote or turn over to complete the
Proxy Form.
SAMPLE

PROXY FORM


STEP 1: APPOINT A PROXY TO VOTE ON YOUR BEHALF

I/We being a shareholder of Ryman Healthcare Limited

Hereby appoint ____________________________________ of ________________________________________

or failing him/her ____________________________________ of ________________________________________

as my/our proxy to vote for me/us on my/our behalf at the Annual Meeting of Ryman Healthcare Limited to be held at
the Possum Bourne Retirement Village, Lisle Farm Drive, Pukekohe, Auckland on Thursday 26 July 2018 at 10.00am,
and at any adjournment of that meeting. Please indicate with a tick in the appropriate boxes below how you wish
your proxy to vote. If you wish, you may appoint as your proxy ‘The Chairman of the Meeting’ or any other director.


STEP 2: ITEMS OF BUSINESS – PROXY VOTING INSTRUCTIONS


Tick () in box to vote
ORDINARY BUSINESS For Against Proxy Abstain
Discretion

2.1 To elect Mr Geoffrey Cumming as a director of Ryman
Healthcare Limited.

2.2 To re-elect Mr Warren Bell as a director of Ryman
Healthcare Limited.

2.3 To re-elect Ms Jo Appleyard as a director of Ryman
Healthcare Limited.

3. To authorise the Directors to fix the auditor’s remuneration
for the ensuing year.
4. To approve an increase in the maximum directors’ fees
payable to $985,000 per annum.




SIGN: SIGNATURE OF SECURITY HOLDER(S) This section must be completed.

Security holder 1 Security holder 2 Security holder 3




Contact Name ________________________ Daytime Telephone ______________________ Date ______________



Electronic Investor Communication:
If you received the Notice of Meeting & Proxy by mail and you wish to receive your future communications by

email please provide your email address below:


SAMPLE

=== IR PAGE TRANSCRIPT: Webcast transcript ===

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 1 of 27
Start of Transcript
David Kerr: Tena koutou katoa. Good morning everyone and welcome to Ryman
Healthcare's full year results presentation for the year ended 31 March 2018. I'm David
Kerr, the Chairman of Ryman Healthcare and to my right I have Gordy MacLeod, our Chief
Executive Officer and beyond him, Dave Bennett, our CFO. So the format this morning will
include a bit of an overview from me, followed by presentations then by Gordy and then by
Dave; Gordy's going to give you a review of the operational progress of the year and
discuss some of the challenges we've experienced, the worst of which was the tragic death
of one on our construction sites of a young man, Mr Graeme Rabbits, who had much of his
life ahead of him. Gordy will also give you some of his views on what lies ahead for the
Company in the next couple of years and David will give you greater detail on the financial
results.
You will note that we're each wearing pink shirts today and that's to support Pink Shirt
Day, which is a global day and which every year workplaces, schools, organisations and
individuals join that movement to make a stand against bullying. At the end of the
presentation we want to open up for questions from the floor and then following that, we'll
take questions from callers on the conference call line. We'll bring you a microphone if
you're in the room so that everybody can hear you and so that people in the conference
call can also hear you. For those of you listening on a phone conference, the operator will
advise you when you can ask a question, so we anticipate wrapping up around 9:45 or so.
So, the Board are more than satisfied with the full year result. I think it's fair to describe
the results as a very solid result. The numbers are before you and to a degree they speak
for themselves and Dave will talk you through them in greater detail later, but it's certainly
been a very pleasing year and we've got some great villages well underway, we've got
some great sites which are now acquired and at various stages in the consenting and
construction sequence and we've also made good progress on a number of other fronts in
an operational sense.
So the headline numbers were that the underlying profit rose 14.2% to $203.5 million. The
IFRS reported profit, including the revaluations, is up 8.8% to $388.2 million and the full
year dividend has been lifted 14.6% to $0.204 per share, meaning we'll pay a final
dividend of $0.109 per share on 22 June with a record date of 8 June. The assets currently
sit at $5.8 billion so our balance sheet continues to be strong.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 2 of 27
Some of you might recall that at the time of the half year result, I mentioned the fact that
as a Company and as a Board, we are very focused on taking a long-term view, as
opposed to being concerned about short-term results that are frequently the discussion
that ensues.
We are prepared to invest in areas and activities where the returns may yet be some years
away because we know this Company is special both in terms of what is its purpose, also
in terms of how it's performed over time and how we believe it will continue to perform in
the future. So Gordy's going to talk to you about some of these investments we've been
making because we are investing to make the task of caring for our residents even better.
One of the measures that's often applied to company performance of course is TSR or total
shareholder return and indeed that's important, but I quite like the other TS&R, which is
the importance of a board to focus on talent, strategy and risk. We support the view that
focusing on those three areas will greatly increase the chances of increasing total
shareholder return.
Risk management is embedded in the day-to-day thinking of our people and so risk is
regularly reviewed by the Board, of course. A big focus of the Company of the past year
has been on our people, their capability and growing our talent pool. Gordy will expand on
this, but risk and talent have appropriate attention.
When I think of strategy, I'm thinking more about the strategic direction that the Company
is headed on. This of course can be and often is copied. We see this in our sector not
uncommonly. As a Company, we've talked about providing a continuum of care or a fully
integrated village with emphasis on the word fully.
It needs to be noted we really do provide the whole range of options, from independent
apartments to adequate numbers of serviced apartments and rest home beds, hospital
beds and dementia care beds. Every village we have built since 2007 has had secure
dementia care and wherever we can, we have added in dementia care to existing villages.
We've now been providing dementia care for 25 years. 50% of all our beds and units are
care related, so there's not a token number of care beds.
We aim to provide certainty that we can provide appropriate care to our residents and we
also see a sense of social responsibility to the communities that we live in, by seeing that
we provide that full spectrum of care to them also, if at all possible. So this is our strategy
and it has been for as long as I can recall.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 3 of 27
However, what cannot be copied is the culture. Strategy actually sets the direction, clearly,
but it's the culture that really is the kicker and drives the performance along. McKinsey
suggests that companies that have top quartile cultures, as measured by an organisational
health index, will outperform median companies by 60% on total shareholder return and
lower quartile companies by 200% on total shareholder return.
The saying is, of course, that culture eats strategy for breakfast. I always think of this
particular picture where the tourist's strategy was to see the animals, but the culture they
should have adopted is one where you're always very aware of everything around you and
your surroundings, because you're in a game park.
I mention culture because that's something that's always discussed at the board table, but
also because one of the important announcements today is that Kevin Hickman is retiring
as a Director as of 1 June. Now clearly we're very sad to see his retirement, but we most
sincerely wish him well. To be fair, he's served the Company continuously for nigh on 35
years, so it'd be hard to argue that he hasn't earned a break. He stayed on over the last
year to assist Gordy with the transition he's made to be Chief Executive and Kevin wholly
feels confident that the business and the team generally are in great shape and that the
values and the culture that underpin the business are in good heart.
It's difficult to know where to start when thinking of describing how he's contributed to this
Company, but clearly as a co-founder, as a managing director and as a director, he's been
mission critical. When you think of a successful founder, what you often find is that person
is someone who takes on an industry norm and does so to benefit a customer. Maybe also
someone who builds the company from the inside outwards with respect to staff and who
then has close personal relationships with those early employees. And those early
employees will share the same vision and passion and will be able to carry those values
forward. The founder will also often have what I'd call an owner mindset, as opposed to a
custodian or minder mindset, always taking a long-term view.
Some other research says that 80% of a company's culture is established by the early
leaders or founder and this has certainly been the case with Ryman. You've heard us talk
of Kevin's mantra that it's got to be good enough for mum. This was the early challenge
against industry norms and was quite clearly to benefit the customer or in our case, the
resident.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 4 of 27
Those of you who followed the Company for some time will be aware that our senior
executives have extraordinary long tenure of service, which we celebrate and they were,
many of them, so-called early hires or employees by Kevin and his team to build the
Company from the inside.
So if culture is why we do things the way we do, then our culture of it's got to be good
enough for mum has its very roots in Kevin. He's ensured everyone has stayed true to
their culture, but also encouraged creativity and innovation where it supported the vision.
Interestingly, we also find that many of our longstanding stakeholders and suppliers who
have grown with the Company also strongly identify with that culture. Typically one would
regard an entrepreneur as a person who is out to make as much money as possible and
reluctant to let go of the reins. But in reality, Kevin's been pretty much the opposite. He's
been a wonderful motivator of others and shown little interest in his personal
remuneration. So his contribution has been profound, critical to the establishment of the
underlying values and culture of the Company such as the Company's purpose and desire
to do good in a social sense and that focus on caring and development, trusting and
supporting long-term relationships.
I can advise that with his resignation, Kevin and his family are intent on remaining
significant shareholders in the Company and knowing Kev well, he will always be available
for advice.
The Board have spent some considerable time reviewing the skill sets of the Directors and
the specific skill sets that we require going forwards for the next five to 10 years. As a
result of this, I'm able to announce that the Board will appoint on 1 June Geoff Cumming
as a Director. We're delighted at this announcement. Geoff's been a long-term, very
significant investor in the Company and has always been a strong supporter. He's got very
extensive governance and executive experience in large corporates and he brings to the
board table a true international view. This is clearly important, given our rate of growth.
We're also well advanced in making a further appointment with a specific skill set that we
believe we require, but we're very focused on only recruiting a director who embraces
what we do as a company and thereby our culture. That doesn't mean that we're going to
recruit clones of what - or anything like that, or recruit for sameness, I can assure you that
we've just had a couple of days of board meetings and we have a pretty diverse range of
views around the table from the Directors and these are welcomed.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 5 of 27
So as a Company, we're very focused on care provision and very aware of the critical role
we play in the lives of older and vulnerable citizens. Inevitably, from time to time, things
don’t go as well as we would have liked and the important thing is that we always should
learn from each incident and this is something that our caregivers do wonderfully well.
Their skills and qualities are what actually underpin our got to be good enough for mum
value.
Clearly they spend very significant periods of time with our residents and they display a
wide range of skills which constantly impresses me when I'm visiting villages. They are
empathic in that they understand what the resident is going through. They are patient and
flexible, things don’t always go the way you want them to. They have passion for the role
and they genuinely display an enjoyment in caring and I believe they're great
communicators and great encouragers to ensure that in fact our residents achieve their full
capability.
Finally, they have a great sense of humour, often not only because laughter is good
medicine, but because they and the residents often experience difficult situations which are
best coped with, with some humour.
Caregivers have had a major lift in pay rates and we supported them in achieving this. We
also improved their terms of employment in the second half of last year by increasing sick
leave from five days to 10 days annually, in recognition of the fact that there are
significant challenges working in the healthcare arena and one of these days is to be taken
as a wellbeing day. Gordon's going to discuss with you some of the feedback we've been
getting from our staff generally, but I just want everyone to be aware of the wonderful job
that this particular group the caregivers undertake and how well they achieve on a
continuing basis.
So to summarise, a solid financial result achieved again. Medium term goal of doubling the
profit every five years, we did that over the last five years, $100 million to over $200
million and that's the same, of course, as averaging 15% growth in the underlying profit
annually, so that goal remains alive and well. A sadness on the resignation of Kevin, but
also a celebration of the very significant contribution he's made; a big welcome to Geoff
Cumming who'll be up for election, obviously, at the AGM in July; and a specific
acknowledgement of the critical role and skills our caregivers across all 32 villages bring to
us.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 6 of 27
So thank you very much, I'll hand it over to Gordy.
Gordon MacLeod: Thanks David and good morning. I just wanted to start my recap by
mentioning an event that had a profound impact on us this year. In January I got a call
with the worst possible news, that we'd had a fatality on our Lynfield construction site. The
loss of Graeme Rabbits was devastating for his family and for everyone connected with
him. We've never had a workplace fatality before and we're determined to do everything
we can as a team to make sure it never happens again.
Of course moments like this make you realise that despite the best efforts, the best things
that you do, there are always thing that you can do better and we've already made a lot of
improvements across the Company, most particularly in construction. Graeme's family told
me that they were determined that his loss is not in vain and we will make sure of that and
in fact we're doing quite a lot of work with Graeme's father, Selwyn, as we speak.
I'd also like to add to David's comments about Kevin. Kevin had great instincts about
leadership and finding the right people. He realised he couldn't achieve anything on your
own. He had a saying, which was: recruit above the line and there are great stories in the
Company about Kevin turning up to, say, a village manager's office, taking the whiteboard
from the wall, walking up to the whiteboard and just drawing a line and then explaining
that that is the line of your best people and all your recruitment should be above that line,
because that's how you get better and if you can't find the right person, never
compromise, keep on looking.
We love Kev's saying and we train people about it right to this day, along with a whole lot
of other, we call them Kev-isms. On a personal note, Kevin has been a great sounding
board for me and for the entire senior team. We cannot thank him enough and we wish
him all the best.
As David touched on it, it's been another solid year. The two numbers that stand out for
me are that at the end of the year we had less than 1% of our portfolio available for resale
and our care centres were 97% full, compared to the industry average of 87%. When you
think about the fact that the real estate markets dropped 14% in the year in New Zealand
and yet our resale volumes lifted 15%, you'd have to say that Debbie McClure, our chief
sales and marketing officer and the team have done a great job, outperforming volume
change in the market by nearly 30%.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 7 of 27
These numbers stand out because they are great indicator of the demand that we are
seeing. We gained momentum everywhere in the business and that is set to continue.
The other highlight has been the feedback we're getting from our people. Every single
survey result has lifted this year, which shows that our residents, their families and our
staff are happier than ever.
When I became CEO in July, I've had a huge amount of visits around our portfolio. I
visited 30 villages. I've visited our seven construction sites, quite a few of the different
locations I've been to a number of times and look, I've met hundreds of residents, staff,
family members, fellow Rymanians, subcontractors and had lots of good chats about how
we are doing, how we are performing. What can we do better?
So it's always reassuring when you get good survey results in and it does actually bear a
resemblance to what you're seeing on the ground and certainly, from what I've seen on
the ground, we're providing a great environment and great care to our residents. We've
invested heavily in staff, through extra training, leadership, leadership programs and pay
increases and improved entitlements, most particularly for staff at villages.
Behind the scenes, we've been reorganising and we've been busy recruiting in Melbourne,
Auckland and in Christchurch. We have more than doubled our design and development
teams in Christchurch, who also do work for the Victorian market and we have ramped up
our teams in Auckland and in Melbourne. The point of all this recruitment is to double the
rate at which we are rolling out villages, so that we match the New Zealand growth rate in
Victoria.
This year has been the first year of Ryman Delicious and it's been a huge hit. Look at that
food. It looks pretty good, aye? We've introduced seasonal menus and choice. Residents
who dine with us can pick from three options every day for their main meal, including a
vegetarian option. Now this was actually a big and complex operational change and
highlighted the value of our chefs and their teams, who cook more than 10,000 meals
fresh on site every day. Paul, who is our head chef at Anthony Wilding and our recent
prize winner, says it is like running his own a la carte restaurant.
The runaway favourites with residents and Gordon MacLeod are so far salmon fillets, pork
belly and beef cheeks and of course, you can't beat the traditional roast. For the first
time, we've introduced a structured leadership program. As part of making sure that we
are very deliberate about how we grow our own people and preserve our culture. We can't

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 8 of 27
leave it to chance. More than 200 of the Company's leaders have already taken part in the
Ryman Leap Program.
The feedback has been very positive about the days and the study that's done and how it's
been so well tailored for our people. So there is no generic content in it. It's purely been
designed for people who work at Ryman and so our people and technology officer, Nicole
Forster and her leadership development team have done a great job of developing Leap
from scratch and getting it going really fast. Our biggest ever investment in improving
care systems is in full swing.
This time last year we had no villages live on myRyman. Now we have 25 villages live on
myRyman care app and the rollout in New Zealand is due to complete this year, ahead of
schedule, which I've been sort of secretly told is July, but I'm not supposed to say and it's
amazing really. For a technology project - how many do you read about that come in on
time? Remember, this is rolling out a completely revolutionised way of running a care
floor across thousands of people and for nursing and clinical practices that have hardly
changed in 30 or 40 years.
So the training and development teams, and of course, the system itself, has just been
superb. So practically, we've installed more than 2000 tablet devices in residents' rooms
and we've trained 2100 nurses and caregivers on the system so far. I've sat in on a few of
those training days and thankfully I'm not in charge of actually operating the system, but
I've sort of got a fairly good idea how it works and the responses in the room, when people
get shown the functionality and how it works, is amazing.
You'd normally expect that sort of thing to occur over a few days, wouldn't you? Well the
sessions that give people their core training as a group take one session of an hour to
introduce it and then another session of about two hours, just to solidify that training and
then it's all out in the field. People just take to it straight away because it's so user
friendly. So care plans are now all stored in myRyman and can be accessed via the tablet
in the residents' room.
Our staff can see at a glance everything they need to know about each resident and what
they need to do to care for them. So we get feedback from caregivers, for example, that
it's great to have very systemised reminders in myRyman in the room, saying that perhaps
someone has some red skin under a fold or something. They need certain ointment
treatment and it's just really reassuring for everyone to know that that's being literally

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 9 of 27
checked off live on the system every single day and how the resident likes to be handled
and look after during those sort of protocols.
In most healthcare settings, information you'll find on clipboards, sometimes hung over
the end of a bed, paper file, often somewhere which no-one quite knows where it is or on
desktops back at the nurses' station. Our clinical team for the myRyman had great
potential, but they've been blown away by how successful it has actually been and we are
now starting to show it more and more to family members, to help them understand the
complexities with mum and dad.
How we're looking after them, the activities that they're going to, making sure the
attention to daily tasks and all that sort of thing is all there and people have been really,
really impressed. So we've talked about myRyman for a long time. Since July last year,
the rollout team though, has made that dream a reality. I'd like to offer my thanks to that
team. It has actually been quite fun, from my perspective, to watch Operations, who are
sort of like nurses principally and the Technology team, who are principally sort of young
guys in their twenties, often, becoming BFFs.
They're actually working together as a really cohesive team and it's been fantastic and
that's why we're getting good outcomes. Good teamwork. At the same time, we've been
achieving better clinical outcomes as well. Eighteen of our villages now have four year
certification in terms of New Zealand, which is the gold standard of approval from the
Ministry of Health. I'm hopeful actually that we will have another two shortly. One of
those ones had an amazing seven continuous improvements awarded to them in their
recent audit, just a couple of weeks ago.
In Australia Weary Dunlop has been reaccredited, I think it was on Thursday or Wednesday
this week, with zero findings. So again, whether it's in New Zealand or Australia, the
clinical outcomes are fantastic. Our clinical quality though and the constant innovation,
you have to say, is a real testament to the positive leadership of Barbara Reynen-Rose,
who is our chief operating officer and also to her deputy, Liz Dilger, who has worked for us
for many, many years as well and of course, the whole Operations team.
I spoke with one of their people, Karen Lake, the other day, just about some of the
success they were having and she very simply said to me that what she loves and what
her team love, is being part of something which is successful and where they can be
creative. So they love the opportunity within Operations that they can be creative and

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 10 of 27
taking things to another level all the time. So on to Triple A. For more than 10 years
we've been running fitness classes for our residents, aimed at keeping them active for
longer.
Each week thousands of residents take part in our Triple A classes and this year we won
official recognition for our work, when we received accreditation from ACC for their Live
Stronger for Longer program. Our residents love the classes and that's why so many
attend and it's great to get the official stamp of approval for the work that the team have
put in. I want to just take a bit of time now to update you on our expansion in Victoria.
We're building up the Victorian team, as I mentioned and there is a lot going on. We're
delighted to announce today that we have bought our eighth site in Victoria. It is a one
hectare site in Aberfeldie in north-west Melbourne. Aberfeldie is just nine ks from the
CBD. You can see the CBD in the foreground to that photo and it is an established suburb,
which is home to a number of excellent schools, making it a sought after area for families.
The site has everything we look for. It is a short distance - in fact actually, literally a
stone's throw from a local supermarket and also a local retail precinct. There is an aging
population in the wider area, which includes Essendon and Moonee Ponds and there is a
shortage of retirement options in the area. Our first residents are due to move into their
new apartments at our Brandon Park Village in the next couple of months.
The Village has been named after Australia's favourite opera Diva, Dame Nellie Melba. It
is the biggest investment we've ever made in a village and it will be similar in scale to
Edmond Hillary in Auckland and in fact, we - it's so important, the village, that we
recruited our village manager several months ago, to make sure they were Rymanianised
as much as possible before that village opens.
It's fair to say there's been a big gap between our first and second villages in Melbourne
and we've learnt a lot from this. Not least of which is we actually needed more resources
on the ground and in design and development, whether that be in Christchurch or in
Melbourne, in the early phases particularly, so that we are able to do more things in
parallel.
So we've learnt that lesson and the other lesson we've learnt is that Brandon Park actually
took quite a long time to get started after the development approval was gained, because
in Australia what happens is that rather than a building consent for each individual building
that you get. They basically consent the whole site in every single building. Perhaps in

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 11 of 27
some of the smaller councils there, that's just a huge amount of work to do actually, for
such a large scale development. We are learning now to get ahead of that and get into
councils earlier, to have those discussions about how that could work.
In January this year we secured consent to begin work on a new village in Coburg. In fact,
I was at the hearing that night with Andrew and the Development team and it was - it
received, I think it was unanimous approval, from the local council, after a significant
community consultation process, hearing everybody's views. Our construction team will be
underway on site later in the year. This village includes five multistorey buildings and the
team is working hard on detailed construction drawings at the moment.
Look, you can see by looking at it, it's a more complex build because of the extensive
basement work required. It's a higher level than perhaps most of the ones we've done
previously and we're targeting our first residents to arrive probably actually in 2020, by
the time we get all the basement stuff done and all that sort of thing. By the way, it's next
door to the Coburg Lions, who we sponsor.
The next cab of the rank is our Burwood East Village, which is in east Melbourne. We hope
to secure planning permission soon and assuming that is the case, I'd really hope we could
be starting to work there later this year. Obviously it's subject to development approval.
We are in very advanced discussions regarding that. Following closely on Burwood East
heals is our Geelong Village and in fact the Board - we went Geelong just a few weeks ago.
It's really beautiful actually. The highway is a bit barren, isn't it, between Melbourne and
Geelong.
But yes, Geelong is really beautiful and it is in the suburb of Highton and it's close to a
large shopping centre. The Village is a townhouse scheme, which will be our first in
Victoria and we are well advanced in our discussions with the local council and also the
community and we hope to be building on site in the next few months, again subject to
development approval.
We have two villages planned for the Morning Peninsula, which is really popular with
Melbourne's retired community. We've recently held open days for the Mount Eliza site
that we've talked about in the past, with the local community and various stakeholders to
consult about our plans and what we are thinking. That's important work to do, ahead of
the application for development approval.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 12 of 27
Our second site on the Peninsula is at Mount Martha. We're still consulting and working
through the design phase and probably realistically the target would be to submit
something later this year or perhaps more into next year.
So that's Victoria; there's actually a lot going on, isn't there? Just to recap, we've got one
village open, we've got one about to open, and all going well we should be able to start at
three additional sites this year, and one of those three has already consented. Collectively,
all eight villages have the potential to be home to more than 4000 Victorians and you can
see we have a huge amount of momentum building as we look to match the New Zealand
rollout rate in Victoria. Look, they are all great sites. Andrew Mitchell, our Chief
Development Officer, and his team have done a fantastic job in finding them and
shepherding them through the design, the consultation and the consenting processes to
date.
I'd also like to pay thanks to Tom Brownrigg who is our Chief Construction Officer, and in
fact his whole team. They have been working very hard in New Zealand, as you'll hear
about in a minute, as well as preparing for this very significant lift in the build rate in
Victoria that we have ahead of us.
We've also been busy in New Zealand, of course, and our new Logan Campbell in
Greenlane has welcomed its first residents. I was actually there on the day and the
residents that I met were just thrilled, actually, really thrilled with the teamwork between
construction and operations and sales to make the experience really good. One of the
chaps told me, he said he actually had very high expectations it would be beautiful when
he moved in but he was actually quite emotional about the fact that it was far better than
he thought it was going to be. It was quite humbling, actually. Him and his wife were just
thrilled, actually. We've got 100 residents there already and we opened the doors in
February.
The teams at Devonport and Lynfield are now well into their construction programs, and
presales have continued to be strong. In fact, at the Devonport site Matt Hutchinson has
built a little deck so that the kids in the area can come and watch behind Perspex some of
the diggers in action, which has gone down a treat. I've had cards from children aged 1.5
and 2.5, because you don't do halves at school now, you do it to one decimal place. We're
hoping to welcome our first residents at those two sites again later in the year.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 13 of 27
The next villages to go through our community consultation and consenting process in
Auckland will be Lincoln Road and Hobsonville. I'm also really pleased to be able to share
with you today that we have received consent for our new village on River Road in
Hamilton and early works are underway, and that site is an absolute stunner.
We have recently bought new sites in Karori in Wellington and in Havelock North. The
Karori site was formally a Victoria University campus and is a site that we have had our
eyes on for many years, so we were delighted to secure it. We had a very positive
response from local residents at the recent community drop-in days that we held on the
campus not last week - in the last two weeks, anyway.
We've also secured an excellent site in Havelock North, which was also announced today.
It is an area that is popular with retirees and there's a real shortage of care in the area.
When I think about all the sites that we have just walked through, and there's a fair few
that we've just discussed, I think about actually the various visits that I do to sites, our
villages, our communities, during the year, and you meet people that are dealing with
really difficult things personally with their husband or wife, perhaps one has got dementia
or health things have changed for them, and they're struggling and the support that they
proactively come and tell you about which they receive from our staff is amazing to hear,
actually. Of course, lots of people too that are just so relieved to not be at home anymore,
to be able to relax and enjoy life.
When I think about all these sites, you can look at them on the screen there and go okay,
that's a nice bit of land and a good community, and that's important, but the thing that
really motivates us is that our mission is to make sure that the Ryman care philosophy
that David has talked about, the culture that's so important to us, is that we're able to get
into as many communities as we can so that people can experience life in a Ryman village,
and we see that as our mission, really. That's what we must do.
When I reflect on the year that's been, I feel we are building great momentum across the
board, whether that be in delivering great care for our residents, developing our team of
people, investing in better care systems or really scaling up in Victoria. We've got an
amazing opportunity here and a great team of people and we are only just getting started.
On a personal note, I feel I owe Kevin a lot. I really want to repay the faith that he has put
in me since I joined the Company in 2007. I feel very honoured to continue Kevin's legacy
at Ryman and I'm going to strive to preserve the culture that he created at this Company

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 14 of 27
because it is a privilege to look after older people and I want to continue that culture that
Kevin created.
Thank you for your time. I'd like to hand over to Dave Bennett, our CFO, but I should just
say that Dave - this is Dave's first year as a CFO of a publicly-listed company and he's
doing an absolutely fantastic job. He's got my full confidence. He's a hell of a lot better
than the last CFO too, a big step, actually.
If we just perhaps roll over one more slide, just to leave you with a smile on your face
before David talks about the numbers, we've been doing a bit of parasailing with our
residents at our Jane Mander village. The lady on the left there, Dorothy, guess how old
she is. She's parasailing at 250 metres up, being towed behind a boat. She's 100, 100
years old, and her friend Uma is 88. The group we took out on the boat that day had a
combined age of 522 years.
I love seeing stuff like that coming through on our internal Yammer network because it's
inspiring when you meet people who are making the most of life and really enjoying it and
that we're able to do everything we can to make that happen for them. So, thank you very
much.
David Bennett: Thank you, Gordy and good morning. I guess it's time for some numbers.
This year, our underlying profit of $203.5 million is an increase of 14.2% on last year. This
means we have quadrupled our underlying profit in the past 10 years. Earnings from our
existing villages were the main driver of the result with resale gains being the biggest
contributor. Development margin declined slightly because our build was lower. Our
reported profit was up 8.8% to $388.2 million on the back of good trading and valuation
gains of $185 million.
The valuation rose because (1) we added 458 new units to the valuation; (2) prices lifted
over the year reflecting strong demand in the housing market; and (3) our valuer lifted our
five-year-plus long-term growth rates from 2.8% to 3.4% in the first half.
During the year, we invested $479 million. This was spent on the following: $111 million
on land, with the land bank lifting 7%; $296 million building new villages where we will
recycle capital; $27 million on a range of projects, including myRyman, completing the last
of our emergency generator program; and $45 million was invested in upgrading our
existing villages.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 15 of 27
With such a major investment during the year, our working capital debt has increased to
$1.06 billion. We are in a very strong financial position with total assets of $5.8 billion and
shareholder equity has lifted by 17% to $1.9 billion. This means both our total assets and
our net assets have more than doubled over the past five years.
We've seen a $100 million increase in our debtors to $357 million at year end, which is
similar to an increase we experienced back in 2015. This is a function of a really strong last
quarter and an increase in the average sale price of our new units of $300,000. Our
average sale price for new units lifted from $440,000 last year to $740,000 this year. This
shows the impact of building in higher-value locations. Our average resale pricing has also
increased from $447,000 to $516,000.
Our debt to debt plus equity ratio is 35% and consistent with last year. Our debt is
productive debt, investing the bulk of it in new villages where we recycle capital, which
establishes a tail of recurring cash flows. We continue to have very supporting banking
partners; they understand our growth plans and they back us. I have increased our facility
to $1.3 billion and extended our tenor with 75% of our facility now either four or five
years. Previously, all of our bank facility had a maturity of three years or less.
Development margin was 19.2%, which is just outside the range we normally target of
20% to 25%. We have previously advised you that Bob Scott with Tony has been a very
low-margin site due to its seismic requirements. Without Bob Scott, our margin would
have been 22%. Our dollar margin per unit has increased by $35,000 to $138,000, which
shows again the benefit of building in higher-value locations.
Resales have been the big driver of our earnings this year and the resales bank of gains
still to come has increased by $56 million to $815 million. The $815 million of pent-up
gains means we can expect our resale earnings to keep on growing, even if the housing
market was flat for several years, because volumes increase as villages mature. Deferred
management fees also reset to new price levels with each resale, creating a compound
effect.
We continue to monitor affordability. Our residents in Auckland and Melbourne free up
significant amounts of cash when they move into a Ryman village. Residents moving into
an independent unit in a village in Auckland typically free up $200,000 when they sell their
house, and service departments are freeing up nearly $600,000. In Melbourne this is even
greater.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 16 of 27
I just want to add to what David and Gordy have mentioned earlier, Kev has left us with a
great business model that has stood the test of time. It is a model which is able to recycle
capital that creates a growing tail of earnings and doubles profits every five years and
continues to reward shareholders with a growing dividend stream from those profits. This
year is another example of the model in action. We have invested $479 million without
needing to raise extra capital, our profits increased this year thanks to a growing tail of
earnings at existing village where we have already recycled capital. Our underlying profit
was over $200 million, double the $100 million we reported in 2013, and our dividend has
also doubled in line with our growth in profits, grown from $50 million to $100 million over
the past five years. The model has worked since listing in 1999 when we raised $25
million. We have now invested $3.1 billion in our portfolio, paid a growing dividend stream
to shareholders of $690 million and we've never had to raise new capital.
Thank you, and over to David.
David Kerr: Thank you, Gordy and Dave, those were great presentations, really
marvellous. Look, an opportunity now for some questions from the floor in the first
instance, and if you just would wait for the microphone, that's great.
Unidentified Participant: Thank you, and congratulations on the result. Just a quick
question about bank debt. You have just given the growth plans that you took us through
during the presentation and there's a number of new villages coming through, can you
give us a little bit of a sense of where you see that going in the next 12 months?
David Kerr: Dave, would you like to answer that?
Dave Bennett: The big thing, I guess we've got a significant number of debtors which we
will realise over the first half of this year. Our debt will continue to lift as we invest in the
new sites but we don't expect it to lift significantly, and the facility we have in place is
more than adequate to meet those growth demands.
Gordon MacLeod: I guess the comment I'd make is that the debt we have predominantly is
basically construction debt. It's what enables our development. If we stopped developing,
and we are not going to, our debt would be - our core debt would be very low.
David Bennett: [Steven], we're going to see some really good cashing up at Campbell
Road, at Brandon Park. You're going to see cash coming in at Lynfield and Tropicana.
Obviously, the year-end debtors coming through, resales are lifting, so generally earnings

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 17 of 27
are lifting. Of course, you get the kicker of the bonds coming through at Brandon Park as
well, which we wouldn't normally see at a New Zealand site.
So the model and action of sites and progress starting to deliver cash in, while new ones
like, say, getting going at Burwood East and Geelong and Coburg and so on, that sort of
recycling of capital model was very much what we have in mind.
Unidentified Participant: (Analyst) Just in terms of where the land bank sits at the
moment, 4200 units, do you see that increasing in the next 12 months or perhaps at a
slightly faster pace than it has in the last year?
Gordon MacLeod: That's just the New Zealand one, isn't it?
David Bennett: That would just be the units without the care, I assume.
[Over speaking]
Gordon MacLeod: Yes. Okay. Yes. I don't really sort of think about it like that, I suppose,
with - it's about 6000, isn't it, with the land.
David Bennett: Yes.
Gordon MacLeod: Yes. The land bank is about 6000 units and beds. In New Zealand it's
adequate for the sort of rollout that we're doing, around about 800 beds in units per
annum, a couple of villages opening a year. We will just continue to add to that. The
Melbourne one, Steven, is that we will want to lift that over time, so really the Melbourne
land bank numbers should fairly be similar-ish to New Zealand in the next couple of years.
Yes.
Unidentified Participant: (Analyst) Gordon, you talked a little bit about some learnings
you've had in Australia...
Gordon MacLeod: Yes.
Unidentified Participant: (Analyst) ...and some slight tweaks to strategy. Are there other
learnings you've had during the Brandon Park development process and your other site
development processes and you've made a few tweaks to the go forward plan?
Gordon MacLeod: Yes. Look, probably something we would have started much earlier at
Brandon Park, had we known more, is that the construction team would have been more
engaged with the local council about how to get the building drawings endorsed, so that
we could start work faster on the site. So we were ready to go, but they have to basically

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 18 of 27
stamp the whole plan, and obviously it's a large scale development. Some of the - it's not
a criticism of the councils at all, but just some of the councils - what we do can be quite a
large scale development and if we're doing stuff in a suburban area, so it's good to start an
earlier dialogue about how that's going to be handled. We've certainly started doing that
at other sites now.
[David Bennett]: The other thing is, of course, that we're quite active in community
consultation, which we didn't used to pay as much attention to earlier years, whereas we
see that as being really important to get the community onside with us, so that the
opposition to the village doesn't rise and so that people understand that we want to be
good citizens in their community. So that takes time.
Gordon MacLeod: Yes. So, I mean, the Coburg consent process was a great example,
actually. I sort of hopped in on that on the promise that I wouldn't say anything to that
meeting. It was really interesting actually. All of the key people there, all of the
councillors, the neighbours, even some of the neighbours who perhaps weren't that
enamoured with us were very civil to Andrew and the team. It was clear they had been
having good discussions and we had heard people's concerns. We had actually made a
number of changes to the scheme to take into account community feedback. So that sort
of pre-consultation before we finalise plans is really, really important.
So we've got two lots of consultation teams ready, one with Debbie; she has got
community relations teams, where they're looking to build on the ground, build our
people's awareness of what Ryman and what Ryman is bringing to the community. Longer
term, some of those people will become sales advisors. Then in Andrew's area, they're
obviously consulting earlier with councillors and neighbours and that sort of thing and
having more drop in days and so on. Yes.
Unidentified Participant: (Analyst) Just maybe one last one from me before I give someone
else a turn, the new government in New Zealand has got a lot of reviews going on, some
of which affect your sector. Just wondering if you had any comments that you can share
with us in terms of your expectations of any potential changes in the regulatory framework
for the aged care side of the business, in particular, or the funding side, and any
comments you could make on the new impact from the wage equality settlement that's
already come through where there was an impact in the second half and going into next
year.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 19 of 27
Gordon MacLeod: Yes. Look, the reality is I think it's understood by all sides, government
and operators, that the equal pay settlement, which has a schedule of pay going out five
years agreed by the - between the Crown and the unions, is one which will be fully funded
by the government and the sector will contribute research and statistical data to show
what the appropriate amount is, so that the sector is no worse off for a settlement which
was reached between the Crown and the workforce. So there is a clear expectation that
that is fully funded. The extent of any relativity adjustments will be something that the
sector will discuss with the government, I am sure.
I believe that yesterday there wasn't clarity in the detail of the budget around what the
funding envelope is for aged care in New Zealand from 1 July, but that that will be worked
through over - again over the next two or three weeks. It will be a negotiation of some
sort. I suspect though that when you read articles like what's happening in Middlemore
Hospital, that really people in government understand that the sector provides an
incredibly important resource for the health infrastructure of New Zealand. The recent
data from interRAI, which is the international assessment tool used throughout New
Zealand, shows that the health outcomes achieved in aged care for social isolation,
loneliness and also pain medication substantially improve when people enter into an aged
care facility.
So from a government point of view, they are getting at actually a very, very good price
great health outcomes from what the sector does and with no capital expenditure exposure
like exists in a public hospital and most public hospitals are at capacity, as you know. So I
think that the way that the government or any government looks at the aged care sector is
generally one of course with a natural tension around standards and the funding and stuff.
But overall I would say that the government would see aged care as being a very positive
part of the mainstream health outcomes for people, for older people.
Unidentified Participant: (Analyst) Thank you.
Unidentified Participant: (Analyst) Hi. Gordon, just following on from that, do you think
you or and the industry at large makes enough of the fact that every new unit you bring
on board in the retirement village sector is equivalent to building a house just for the
general housing market? But I don't hear that publicity from industry players and it seems
like a very popular or - you know, it seems like in addition to the health benefits you bring,
it seems like there's an additional benefit.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 20 of 27
Gordon MacLeod: Yes. Well, that's certainly very right, Ross, and we do talk with
ministers about that. We've met with the Minister of Housing, Phil Twyford, and discussed
those very points, because obviously they've got challenging build targets in relation to
KiwiBuild, particularly in Auckland. It's important that people understand that when we
build a village like in Devonport that that's going to free up 500 homes in the Devonport
area where younger people can come in and use pre-existing infrastructure in the form of
schools and stormwater and roading and libraries and we create the perfect tailor made
environment for older people to really enjoy and get the health and care and
companionship that they need, so it's a win-win.
You're almost building two units for the price of one when we do it and so we are actually
explaining that sort of stuff quite carefully to regulators and officials. Yes.
David Kerr: Quite typically, these homes will be three bedroom homes, which - of which
one bedroom is being used and the bus stop will be outside, so it's set to actually address
some significant housing shortages that exists in Auckland. It makes a big difference.
Gordon MacLeod: Yes. We're part of the housing solution.
David Bennett: Yes.
Gordon MacLeod: Yes.
David Bennett: That's what we say. [Ari].
Unidentified Participant: (Analyst) Morning. Yes. First question just on the project CapEx
over the last couple of years, I think it's just over $60 million, and I notice you've got
about $20 million of intangibles, so myRyman has clearly been a significant amount. Can
you just talk about the other key components of that $60 million of project CapEx over the
last couple of years. With myRyman coming to an end - the generator project, I think, is
in there as well - what your guidance would be for the project CapEx level of investment
over the next couple of years.
Gordon MacLeod: Yes. The other part - you're right, Ari. It's myRyman has been a big
part of that over the last two or three years. It has been a really significant investment for
the company. Obviously generators have been a big investment for the company too. Did
you know...
[Over speaking]

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 21 of 27
Gordon MacLeod: Did you know that since we've put them in - I'm sure you haven't set me
up for a live question to link into this, but I can't help it. That since we've put them in, our
generators have fired up 150 times due to power grid failures - isn't that amazing - up and
down the country. In Auckland, you know when you had that night with category 2
hurricanes? Five of our Auckland villages all went on to generator that evening. I was
getting text messages through my emergency app going ping, Bruce McLaren's on; ping,
Edmund Hillary's on; ping, Hilda Ross is on. It even went on at Christchurch, so it was
certainly money well spent. We've also had some - I guess some one-off CapEx, in many
ways.
At Malvina Major, we've had to do a pretty significant refurbishment and redo the -
obviously post-earthquake and with some of the sort of water tightness issues at that
village. Also, we've had some work that's still ongoing down at Frances Hodgkins
regarding stability of the - just doing things like soil nailing into the cliff there, just to keep
it nice and tidy. Dave, what would you add to that?
David Bennett: Well, there's also a further IT spend as well, at the moment, at Ryman is
software aspect of that, but we're also rolling out a significant amount of tablets and IT
infrastructure across our villages to support that. So that has been a big investment as
well. We have to have wi-fi networks reliable right throughout so we've invested very
heavily in the IT infrastructure.
Gordon MacLeod: In terms of guidance, probably the best answer for you, [Ari], is that it
should be this, actually. It should be this, because we have broken the back of the
myRyman spend. We were - I mean, going into the end of December last, we were doing
$500,000 a month for some of our external consultants. That's dropped to zero, because
they're gone. So - and we've then sourced the team to a team of 16 developers, so that's
changed it a lot. So we're working hard on actually reducing that sort of ongoing nature of
that.
Unidentified Participant: (Analyst) Just going back to the debt question, and I think you
mentioned the receivables, which should be coming in in the next six months or so, as
Greenlane obviously settles in that. You mentioned the uptick in debtors in ['15], which is
$100 million, and it continued to increase from there and increased about $100 million this
year. So are you suggesting then that what we're going to see from this point is a release
of those debtors and that you would actually expect them to be less this time next year?

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 22 of 27
Gordon MacLeod: That could be the case. But, I mean, again, if we had an absolute
cracker in the last quarter of next year, which is - but we actually don't know with things
like resales what that could be. But given the way that just the new build landed at the
end and that sort of thing, it could be less.
Unidentified Participant: (Analyst) Predominately it has been over four years it has been
accumulating up and up and up.
Gordon MacLeod: Yes.
Unidentified Participant: (Analyst) Do you think there will be a release from debtors or do
you think it will keep accumulating?
David Bennett: It's a function of the build in that final quarter as well. So obviously all the
residents don’t move in on one day, so it just depends on our build program, if we can
bring that forward, so we're not doing as much in the second half and last quarter and
spread it more evenly over the year, then it's...
Gordon MacLeod: It's probably very hard to say just because of the time in the build
program, [Ari], but it could be this.
Unidentified Participant: (Analyst) Yes.
Gordon MacLeod: Yes.
Unidentified Participant: (Analyst) I understand. No, that's cool. Look, I think that's from
me - that's - just on Brandon Park, did you recognise 42 units...
Gordon MacLeod: Yes.
Unidentified Participant: (Analyst) Yes. Great. Cool.
Gordon MacLeod: Yes, we did. Yes.
Unidentified Participant: (Analyst) Good. Thank you.
Gordon MacLeod: Thank, Ari.
David Bennett: Thanks, Ari.
Unidentified Participant: (Analyst) Morning, guys. Just a quick question around Brandon
Park. The - what are you expecting for the price of the [bed] bonds and/or
accommodation bonds and also what kind of percentage of the stock do you think would
be on bonds? Then just lastly, how do you think around the risk around getting licences

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 23 of 27
for the beds in Melbourne and for the new development? How do you kind of manage that
and think about that outcome?
Gordon MacLeod: Yes. Should I do the licenses and you do the pricing?
Gordon MacLeod: Yes. Okay. So in relation - hello, Jeremy. In relation to the licensing -
so there's an active market for bond licensing. We allow for that in the feasibilities when
we do all of our sites, in the event that we don't get free licenses during a thing called an
ACAR round, which is the Aged Care Allocation Round, which happens once a year. The
next one is coming up fairly soon, isn't it?
David Bennett: Yes.
Gordon MacLeod: So with Brandon Park, we've already got roughly about 120, isn't it, 118
to be precise, beds for that. So that's plenty of beds there for the next 18 months. We
will apply in the next ACAR round, because ideally we would like to get obviously free
additional beds there. I suspect that one of the things that has been a bit of a hold up for
us is once we got that initial allocation, the reality is we hadn't actually started work there
for quite some over the last two or three years when we were applying.
Now that we are well underway, I suspect our application will be seen in a different light.
We've also been having better engagement with the Department of Health and Aging or
DoHA, as it's called there - have actually visited our Weary Dunlop facility and see the kind
of health and clinical outcomes that we're getting.
So - however, if that did not work for some reason, then there is a market for licences and
we would just simply acquire on-market.
David Bennett: In regards to the pricing, well, it will be similarly [unclear] to Weary Dunlop
nationally. Obviously, there is a restriction. You can apply to the Pricing Commissioner to
go above the $550,000. Initially, we won't do that, because for us getting the residents in
and filling what is a large scale care centre is probably the most important thing. But then
we can look to lift the prices in the future years. In terms of uptake, we would expect
similar levels again to Weary Dunlop, so...
Unidentified Participant: (Analyst) What's the mix there?
David Bennett: It's about 75%, 80% of them pay a bond of some combination, so
obviously some are full bond and some are a combination. So if you - I think there are

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 24 of 27
about $25 million of aged care bonds there. You divide that over the 82 rooms. It gives
you an average per room and we would expect a similar level.
Unidentified Participant: (Analyst) Yep. Great. Thanks, guys.
Gordon MacLeod: Thanks, Jeremy. Shall we move to any questions from people on the
telephone conference call line.
Operator: Thank you. If you wish to ask a question, please press star-1 on your telephone
and wait for your name to be announced. If you wish to cancel your request, please press
star-2. If you are on a speaker phone, please pick up the handset to ask your question.
Your first question comes from the line of Tony Sherlock from Morningstar. Please go
ahead.
Tony Sherlock: (Morningstar, Analyst) Good morning, gentlemen.
Gordon MacLeod: Hi, Tony.
Tony Sherlock: (Morningstar, Analyst) I've just got a quick question on the resident
average age and tenure in Australia or in the Melbourne area as distinct from New
Zealand. So on slide 50 of the presentation, appendix 13, you've outlined the different
ages of your portfolio, which is obviously heavily skewed to New Zealand. Can you
describe the difference in Melbourne as distinct from what you're seeing in New Zealand?
David Bennett: Yes. The resident age on entering is very similar.
Gordon MacLeod: Yes.
David Bennett: Obviously, we - the village is still relatively new, so we don't know the long
term tenure, but everything is pointing to it being a very similar mix.
Gordon MacLeod: Yes. I've been to Weary Dunlop probably two or three times this year,
Tony, and spent quite a bit of time with residents, and it is actually extraordinary how
similar just the general feel of people and the mixes to New Zealand. I'd possibly even -
I'd maybe even guess in some places - in some ways they're slightly older. The care
centre, some of the residents probably have slightly lower acuity than what we might see
in New Zealand would be one other observation. Not - you know, obviously not all, but
some.
Tony Sherlock: (Morningstar, Analyst) I think it was just more the average tenure of 4.8
years for vacated residents for the independent, which is obviously considerably lower than

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 25 of 27
what some of the ILUs in Australia would be at, so I'm just wondering - so your villages
are attracting residents that are nearly five years older than many of the established
Australian players. Is that right?
Gordon MacLeod: It could well be, because some of the established Australian players talk
about attracting people in their early seventies and we tend to be more late seventies and
beyond independent living and then up from there. Of course, because of the age of
Weary Dunlop, any independent living residents who do leave will, by default, be shorter
tenure, so I guess we will just have to see the maturity of the villages that it just changes
over time.
Tony Sherlock: (Morningstar, Analyst) Okay, that's fine. Just on the care fees per bed,
they were up quite considerably. Is that just purely a parcel of costs? I think it went from
nearly $70,000 to circa $80,000 per bed.
David Bennett: Yes. So that's a function of the villages we opened at the back end of last
year have been open for the full year this year. But also the government funding increase,
as a result of the equal pay has also lifted the care fees that we collect per bed.
Gordon MacLeod: Yes. That would be the biggest driver Dave, yes.
[Over speaking]
Gordon MacLeod: But all of that got spent.
Tony Sherlock: (Morningstar, Analyst) That's fine. I saw your margin in that area pretty
much flat, so...
Gordon MacLeod: Yes.
Tony Sherlock: (Morningstar, Analyst) ...that would explain it. Just on the - and this is the
last question - slide 45, appendix A, I notice you use a higher discount rate in Melbourne,
but you've also got a higher dwelling price or appreciation rate going forward. I'm just
wondering why that is the case.
Gordon MacLeod: First of all, we don't do that. Our external valuer does that and I - one
of the reasons is, I would imagine, is that the - we have one village only in Melbourne at
the moment and so perhaps I think they're just being a wee bit sensitive, a wee bit more
conservative on the discount rate for now. Initially in New Zealand, villages like Edmund
Hillary had a discount rate of 14% applied, so it's consistent in that way and then it
reduced once it became more mature. Then the house price assumptions going forward,

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 26 of 27
really their macroeconomic view for the state of Victoria, which is their inhouse view, so
we don't really have a comment on that actually.
Tony Sherlock: (Morningstar, Analyst) Okay. Just on the actual price that you're selling
the Brandon Park units at, how much have they differed from your feasibility going?
Gordon MacLeod: They're up massively. The feasibility feels so long ago, Tony. I actually
can't remember. We're talking quite a few years ago now. But they'd be up a few - a
couple of - $200,000 or $300,000, yes.
Tony Sherlock: (Morningstar, Analyst) Okay. That's...
Gordon MacLeod: Yes, it's a lot.
Tony Sherlock: (Morningstar, Analyst) So your sales rate of those units, you've only - can
you just refresh me as to the number that you've actually sold and the number that are
coming through maybe next year?
Gordon MacLeod: We have presold $65 million worth.
Tony Sherlock: (Morningstar, Analyst) Okay.
Gordon MacLeod: Hopefully by this time next year we would have sold a lot more. That's
the goal.
Tony Sherlock: (Morningstar, Analyst) Now, you've taken - what have you - so presold,
have you taken that through the accounts yet or you take it on settlement?
Gordon MacLeod: Some of it is in the accounts in the form of near completion, but not all
of it. There's still - well, most of it. Most of it actually not.
Tony Sherlock: (Morningstar, Analyst) Then the amount, just the order of magnitude, to
come through next year?
Gordon MacLeod: We'd be giving a forecast for an individual village, Tony, which we just
don't do.
Tony Sherlock: (Morningstar, Analyst) Okay. Thank you very much.
David Bennett: Thank you.
Gordon MacLeod: Thanks, Tony.
Operator: Thank you. There are no further questions at this time. I will now hand back to
Dr Kerr for closing remarks.

Ryman Healthcare
Full Year Results Presentation
18 May 2018


Ryman Healthcare Page 27 of 27
David Kerr: Thank you. Look, thank you for joining us. Why don't we have a cup of tea
and a chat and have some informal discussion. But thank you again for coming and thank
you for the questions.
David Bennett: Thank you.
End of Transcript