Ryman Healthcare Limited 2018 Annual Report

Annual Report21 June 2018RYMHealthcare

Good Enough
for Mum
RYMAN HEALTHCARE ANNUAL REPORT 2018
IT’S GOT TO BE

The care we provide must be, in the words
of our co-founder, good enough for Mum.

CREATING VALUE
How we create
value over time
A strong focus
on our day-to-day
operations
We do it safely
or not at all
Our residents
are connected
to vibrant
communities
We care about
and invest
in our people
Our villages are
people’s homes
An extraordinary
curve of demand
lies ahead
We are in
a strong financial
position
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637175
8187

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We look after older people.
ANNUAL REPORT ftfifltt
5

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6

CHAIR’S REPORT
Care is at the
heart of
everything
we do
Ryman Healthcare Chair Dr David Kerr
My first visit to a Ryman village was to the company’s second village,
a converted motel just down the road from my medical practice.
That day I learned what the Ryman founders were doing and why, and
from that visit grew a strong relationship and a deep sense of trust.
I learned from John Ryder that his business partner Kevin Hickman
had been appalled by the lack of privacy and dignity for residents in
a fire-damaged resthome he’d visited. That was the driver for these
guys – to raise the standard of aged care in New Zealand.
ANNUAL REPORT 2018
7

We’re driven by what works for our residents
Kevin’s view was that he wouldn’t put his own mother in such a place. It was the
start of Ryman’s metaphor for the highest standard of care: it’s got to be good
enough for Mum.
Early on in their business venture, Kevin and John committed to providing
integrated care. It didn’t seem right that residents who became too sick had
to be moved somewhere else for higher levels of care. So before long, they
bought a hospital.
The same philosophies are deeply embedded in the way Ryman operates
today. We make sensible business decisions driven by what works for
our residents.
We want to share a broader narrative
In those early days, recycling capital made the
developments possible. We still recycle capital
today – it’s one of the reasons we create so much
value for our shareholders.
Ryman’s story of sustainable value creation goes
beyond our financial achievements. Our history
shows a company committed to putting care at
the heart of its unique business model. The wider
Ryman story is an important story to tell and one
that we haven’t told before in our annual reporting.
This year, for the first time, we’ve chosen to adopt
the principles of Integrated Reporting* <IR> in our annual report.
Our stakeholders are increasingly interested in how we create value over
time, and the <IR> Framework helps us to tell that broader narrative.
I would like to take this opportunity to acknowledge all of the board and the
executive team for their support in preparing and presenting this annual report.
They have all shared their time, experience, and wisdom to maintain the clarity
and integrity of our reporting.
*Visit integratedreporting.org for more information on Integrated Reporting.
We make
sensible
business
decisions
driven
by what
works for our
residents.
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Kevin Hickman’s 34 years of service at Ryman
In May 2018 Kevin Hickman let us know that he wished to stand down from the
board, ending 34 years of service at Ryman.
Ryman Healthcare would not be the company it is today without Kevin. He is
one of New Zealand’s foremost entrepreneurs who saw an opportunity to build
an ethical business to meet an important social need – the care of older people.
Kevin’s founding philosophy – that Ryman’s care has to be good enough for
Mum – remains our guiding principle today. He always put residents first, he
sought to raise the bar in care and the quality of our villages, and he’s had a
profound impact on improving the quality of life for generations of older people.
Kevin always led by example and invested in developing people. Not only did
he create a special company with a great model, he ensured it was always in
good hands.
Kevin has never been the type of entrepreneur who is out to make as much
money as possible and reluctant to let go of the reins. He’s been a wonderful
motivator of others assuming responsibility, and shown little interest in
personal remuneration.
We thank him and we wish him all the best in his retirement.
We look to the long term
One of the measures used in business is TSR or total shareholder return.
The board focuses on another TSR – talent, strategy, and risk – to increase
our total shareholder return.
We work closely with the executive team on our medium and long-term strategy
and to determine and monitor our material issues. Like all companies, we have
to look in the rearview mirror from time to time, but our long-term orientation is
much more important.
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9

We believe in growing social and human capital
We believe in growing social and human capital – in what we do for residents
and communities, in how we use our influence in the sector, and in the
employment opportunities we offer.
When we build a village, we’re building care facilities for the benefit of our
residents and also for the wider community. To meet the future needs of
our ageing population, we’re building critical infrastructure on a major scale.
Our investment in care is a key point of difference.
We employ a large number of people and offer part-time employment that
recognises and supports the other commitments people have in their lives.
We have a real commitment to keeping our people safe, and to their education
and career progression through the company.
We work to create a positive impact on the environment
We develop and improve natural capital. We take a piece of land, often where
the environment is degraded, clean it up, and construct a village designed
to last. We create pleasant living with grass, bushes, ponds, and streams.
We establish and maintain gardens all around our villages.
We work to create a positive impact on the environment. Our villages are
energy-efficient in their design, and we reduce the vehicle traffic in the areas
around our villages.
The development team needs to meet many environmental requirements
to get consents. We’re measuring our carbon footprint, and we’ve joined the
CEMARS carbon reduction programme so that we can identify savings
targets for the future.
We take an integrated approach to growth
One of the ways in which the board supports the company is by engaging and
employing very competent people. That’s part of our philosophy. That competence
means that people can take a sudden left-field idea, use the governance
structure as a sounding board, and get on with turning the idea into reality.
Looking to the future, we have the confidence of knowing we’re in a strong
financial position. That confidence enables us to commit to constantly
improving our offering.
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We’re always looking at ways to improve the resident experience. Of the larger
operators, Ryman has the highest proportion of care centres in New Zealand with
4 years’ certification – the ‘gold standard’ in care – from the Ministry of Health.
We continue to build and upgrade our villages in New Zealand. And in Victoria,
we’ve made a successful start, with one village already open, one opening later
in the year, and six more in the pipeline.
We want to make sure that as we continue to grow, we do so at a pace
that means we can stay connected to the original vision of being ethical,
transparent, honest, and fair.
We aim to double our underlying profit every 5 years. We believe that’s a
sustainable pace that takes into account the growth opportunities and the
challenges we face, as well as making sure we have a happy, healthy, well-
functioning team.
We work to make an investment in Ryman grow sustainably
and do good in the world
Ryman’s investors are often in for the long haul. They know we’re a stable,
well-run company that can weather financial crises.
Many of our residents and team members are also shareholders. Residents
who invest in Ryman share in the company’s growth and can use dividends
to pay their weekly fees. Team members who own a share in the company
reap a double reward for the goodwill and energy they bring to their work.
The board is pleased to report another solid year for Ryman, with underlying
profit up 14.2 percent to $203.5 million and our reported profit, including
unrealised gains, up 8.8 percent to $388.2 million.
We’ve matched the growth in underlying profit with a similar increase in
dividend to shareholders. The dividend has been increased by 14.6 percent,
with a total annual dividend to shareholders of 20.4 cents per share.
If you are considering an investment in a place to live or looking for a stable
platform to build wealth into the future, or both, we welcome you to join us.
Dr David Kerr
Chair, Ryman Healthcare
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THE RYMAN STORY
Finding
the perfect
business
In 1983, Kevin Hickman walked into a fire-
damaged old villa to investigate how the fire
had started. The building was a resthome,
and Kevin didn’t like what he saw.
“There were four people to a room with shared
toilets down the corridor. The people running
the resthome were nice and did a good job in
as much as they were expected to. But to me,
it was crazy. The standards were so poor.
But that’s how resthomes were in those days.”
It started Kevin thinking about what the
standards should be. “I thought, what would
I want for Mum? I’d want a single room with
an ensuite, for a start.”
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Both were natural entrepreneurs
and together they made a
formidable combination
Kevin and his business partner, accountant John
Ryder, had met a few years earlier. Kevin had left
the police to set up his own private investigation
business and needed an accountant. Kevin says
the partnership worked because they had
complementary skills. He thinks he and John
would have been successful on their own, but
nowhere near as successful as they were together.
The pair were already on the look-out for a
business opportunity. “The perfect business,”
Kevin says, “had to combine residential property
– because it’s a good long-term investment and
the banks always like to lend on property – and a
strong cash flow.’’
After Kevin’s experience with the fire-damaged
resthome, they knew they’d found what they
were looking for. It was a great business idea
and they could improve the way older people
lived and how they were cared for. It was a
business they could feel good about and believe
in completely.
They soon found a block of 14 two-bedroom
flats on River Road in Christchurch, which they
would convert into their first resthome. But they
didn’t have much capital.
“The vendor accepted a part payment and agreed
that we could repay the remaining amount at an
8 percent interest rate,” says Kevin.
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A care company
from the start
1984
Ryman Healthcare was
founded in 1984.
4,700
We employ over 4,700 staff.
34 years
We’ve been driven by the same
values for 34 years.
70
We offer integrated care to people
70 years and older.
10,60 0
Our villages are home to
over 10,600 residents.
730
We have 730 dementia beds.
32 villages
We own and operate 32 retirement
villages in New Zealand and Australia.
5,000
More than 5,000 residents receive
care tailored to their individual needs.
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And with that, Ryman – formed
from combining Ryder and Hickman
– was born
They renamed the resthome Riverside, the cash
flow started to come in, and Ryman was soon in
the market for a second property.
A motel complex on Woodcote Ave in Hornby
became their next development. “Because we
didn’t have much money, I lived there while we
rebuilt it,” Kevin says. “We needed to squeeze
every drop of cash flow out of it while we were
rebuilding.”
Kevin and John didn’t spend money on expensive
lifestyles. They supported each other.
“When you’re broke, it’s good having someone
to share the pain. We wanted it to be the best
period of older people’s lives. For some of our
residents, it was the first time they’d lived in a
new house.”
Kevin and John believed in reinvesting to grow
the company. Profits were reinvested to lay the
foundations for future earnings so that the value
of the investment was always compounding.
The Ryman recipe was to buy the right site in a
well established suburb, use working capital to
build the first stage of the village, sell that, and
use the capital to fund the next stage. They’d then
build a care wing and operate the village using
home-grown staff trained in Ryman systems.
Kevin calls the current leaders
‘the Ryman kids’
‘Kids’ pretty much describes what they were
when they started. Chief Sales and Marketing
Officer Debbie McClure started out as a village
administrator in 1990. Chief Operations Officer
Barbara Reynen-Rose was a young nurse
manager in Dunedin when she was hired in 1992.
A golden rule was always to put faith in our
team members, and both Kevin and John
believed in bringing young, talented people
through the ranks to top roles, rather than hiring
outsiders. “You get lifted up by the people you
employ. Or you get dropped pretty quickly”,
Kevin says.
People had to have the Ryman way of working
in their DNA to become Rymanians. “I’m a great
believer in training your own people. This whole
idea of bringing someone new in to run riot is just
a disaster.”
“I’m a great believer
in training your own
people.”
Creating shareholder value
over time
Ryman listed on the stock exchange in 1999,
raising $25 million. It brought new capital to
invest in future growth. And John and Kevin
were rewarded for 15 years of hard work and
risk-taking.
At the time, the company was valued at
$135 million. Today, Ryman is worth over
$5 billion and has paid more than $690 million
in dividends. More than $3.1 billion has been
invested in new villages since listing.
Three decades on, Kevin says Ryman’s ethos
hasn’t changed. Everything we do must be
good enough for Mum – or Dad.
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If we get our care and resident experience right, the financial results take care of themselves.
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If we get our care and resident experience right, the financial results take care of themselves.
ANNUAL REPORT 2018
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CHIEF EXECUTIVE’S REPORT
It’s all about
people
Chief Executive Gordon MacLeod
At Ryman, it’s all about people. I believe that, ultimately, our resident
experience defines our success. If we get our care and resident
experience right, the financial results take care of themselves.
We’ve only just got started on growth, and it’s an exciting time to be
part of Ryman. To meet our growth aspiration, we’ll need around
70 percent more leaders in 5 years’ time than we have now. That’s why
we’re investing in our Ryman Leaders’ programme and bringing our own
people through and supporting them to grow and achieve.
We’ve always valued our people and their wealth of organisational
knowledge. I want our people to be safe, happy, well versed in how
we work, and to know the residents like family.
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Safety of our people is my number one priority
I talk frequently about very specific aspects of health and safety. It’s never
a general chat. We want people to go home safe every night.
The importance of safety was brought home to us all on 9 January this year
when we lost Graeme Rabbits at one of our construction sites in Auckland.
Graeme was well liked, with friends all over the world. His death was
devastating for his family, his friends, and all his colleagues on the site and
right across Ryman.
Ryman is cooperating fully with WorkSafe’s investigation and will continue
to strive for very high standards in health and safety.
Graeme’s family told me they were determined that his loss is not in vain,
and we, as a team, will make sure of that.
We’re investing in our people for the future
This year, we have invested heavily in staff through extra training, leadership
programmes, and in pay increases and improved entitlements, particularly
for staff at our villages.
Behind the scenes, we’ve been busy recruiting in Melbourne, Auckland,
and Christchurch. We have more than doubled the size of our design and
development teams in Christchurch, and have ramped up our teams in
Auckland and Melbourne.
We’re investing more than ever in the resident experience
We’re investing more than ever in the resident experience. We’re also investing
in health and safety, technology, and infrastructure.
Meals are a big part of a resident’s day and so the food has to be great. We’ve
invested in our Delicious project, making more fresh food options on site so
that meals are served at their best. Residents can choose from a menu that
includes a vegetarian option, and they’re telling us they love it.
One of the benefits of village life is having neighbours and friends nearby for
socialising. We’ve built new village cafés that create a place for residents to
relax and catch up with each other and with visiting friends and family.
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The myRyman Care revolution has begun
Our biggest-ever investment in improving care systems is in full swing.
Twenty-five villages are now live on the myRyman Care app, with the roll-out
in New Zealand due to be completed this year.
We’ve installed more than 2,000 tablet devices in residents’ rooms and trained
2,100 nurses and caregivers in how to use the system. 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 – simply by referring to a tablet in every care room. In most
healthcare settings, the information is in paper files or on desktops back at the
nurses’ station.
The message that comes up on the login screen says, “It’s all about people”. I think
that sums up the person-centric approach we take to designing everything.
Our people are happier than ever
Another highlight of the year for me has been the feedback we’re getting from
our people. Every survey result has lifted, which shows that our residents, their
families, and our staff are happier than ever.
Since I became Chief Executive in July last year, I have had the pleasure of
visiting 30 of our villages and all seven Ryman construction sites. I must have
met hundreds of residents, family members, and fellow Rymanians, and I’ve had
many in-depth discussions about how we are performing – both as a place to
live and work.
Based on the feedback I’ve had, the strong survey results are consistent
with what I’ve seen and heard personally – as Kevin would say, by “walking
the shop floor”.
Our results reflect the growing need for what we do
It has been another solid year of progress, and two numbers stand out for me.
At the end of the year, we had less than 1 percent of our portfolio available for
resale, and our care centres were 97 percent full, compared to an industry
average of around 87 percent.
While real estate volumes dropped 14 percent during the year in New Zealand,
our resales volumes lifted 15 percent.
These numbers stand out because they’re an indicator of the demand we’re
seeing, and that what we do is driven by a growing need.
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Momentum is building in Victoria
In Victoria, we set ourselves the goal of opening five villages by 2020 to match
the roll-out rate in New Zealand. We have one village open, one about to open,
and the potential to be building at three more sites by the end of the year.
Collectively, our villages in Victoria have the potential to become home to more
than 4,000 residents.
Our first residents are due to move into their new apartments at our Brandon
Park village shortly. The village was named after Australia’s favourite opera
singer, Dame Nellie Melba.
In January this year, we secured consent to begin work on a new village in
Coburg, and our construction team will be on site later in the year.
We are in advanced discussions with local councils about both our Burwood
East and Geelong villages. We hope to be building at both sites this year,
subject to development approval. We also have two villages planned for the
Mornington Peninsula – Mt Martha and Mt Eliza.
We were delighted to recently announce that we have bought our eighth site
in Victoria, at Aberfeldie in north-west Melbourne.
There’s been a big gap between our first and second villages in Victoria.
We have learned a lot from this, not least of which is that we needed more
resources on the ground and in development and design during this early
phase of our expansion.
New Zealand development continues at pace
Our new Logan Campbell village in Greenlane welcomed its first residents in
February this year. The teams at Devonport and Lynfield are now well into their
construction programmes, and presales continue to be strong.
The next villages to be submitted for resource consent in Auckland will be
Lincoln Road and Hobsonville. We have received consent for our new village
on River Road in Hamilton and early site works are under way.
We have bought new sites in Karori and in Havelock North. The Karori site was
formerly a Victoria University campus and is a site we’ve had our eye on for
many years.
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The board is part of the
Ryman family
All of Ryman benefits from the collegial
relationship that exists between
the senior executive team and the
board. Several of our directors have
or have had family members living
at our villages. That experience and
perspective is incredibly valuable
around the board table.
We put a lot of emphasis on all of the
board understanding the reality of
what we do, so the board gets out
and about around the villages and
construction sites.
On a personal note, I feel I owe Kevin Hickman a lot. I want to repay the faith he’s
put in both me and the team. I am honoured to continue Kevin’s legacy at Ryman,
and I will work to preserve the culture he created.
We’re just getting started
When I reflect on the year that’s been, we are building momentum right across
the business – whether that’s in delivering great care for our residents, developing
our team of people, or scaling up in Victoria. We have an extraordinary opportunity
ahead and a team of people to see us well into the future.
I want to thank the thousands of Rymanians who work tirelessly for our residents.
You do an incredible job and make a difference every day.
Gordon MacLeod
Chief Executive
For the fourth
consecutive
year, Boston
Consulting Group
ranked Ryman
one of the top 10
best-performing
healthcare
companies in
the world for
shareholder return.
ANNUAL REPORT 2018
23

Debbie
McClure
CHIEF SALES AND
MARKETING OFFICER
Debbie joined Ryman as
an administrator in 1990
before moving into sales.
She moved to Melbourne
in 2013 to lead Ryman’s
sales expansion in
Victoria. Debbie is chair
of the Property Council
of Australia’s Retirement
Living Committee in
Victoria.
Andrew
Mitchell
CHIEF DEVELOPMENT
OFFICER
Andrew joined Ryman in
2007 after working as a
Regional Development
Manager for Sunrise
Senior Living in the UK.
Andrew has a Bachelor
of Commerce degree in
Valuation and Property
Management.
David
Bennett
CHIEF FINANCIAL
OFFICER
David was appointed in
2013 as Financial Controller
and promoted to Chief
Financial Officer in 2017.
David has a Bachelor of
Commerce degree and is
a chartered accountant.
Before joining Ryman, he
worked as an accountant
and auditor.
THE SENIOR EXECUTIVE TEAM
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Gordon
MacLeod
CHIEF EXECUTIVE
Gordon joined Ryman in
2007. He had previously
been a corporate finance
partner with PwC and
finance director of a London
listed hi-tech engineering
company. Gordon has a
Bachelor of Commerce
degree and is a chartered
accountant. He is a board
member of the New Zealand
Aged Care Association and
the Retirement Villages
Association.
Nicole
Forster
CHIEF PEOPLE AND
TECHNOLOGY OFFICER
Nicole joined Ryman in
2011 as Senior Human
Resources Advisor. Prior
to joining Ryman Nicole
worked in a variety of
human resource and
healthcare related roles.
Nicole was promoted to
Group Shared Services
Manager before taking
up her current role earlier
this year.
Tom
Brownrigg
CHIEF CONSTRUCTION
OFFICER
Tom joined Ryman in 2006
and has overseen the
construction of 19 Ryman
villages. He has over 20
years’ experience in the
construction industry in
New Zealand and the
United Kingdom, in roles
ranging from carpentry to
project management.
Barbara
Reynen-Rose
CHIEF OPERATIONS
OFFICER
Barbara joined Ryman in
1992 as a nurse manager
and is now our Chief
Operations Officer.
Barbara has an Advanced
Diploma in Nursing, a
Postgraduate Diploma
in Management, and a
Master of Health Sciences
(Gerontology).
ANNUAL REPORT 2018
25

Dr David
Kerr
MB CHB, FRNZCGP
CHAIR
David joined Ryman’s board
in 1994 and has held the
role of chair since 1999. A
general practitioner, David is
a fellow and past president
of the New Zealand Medical
Association and was
awarded a Fellowship with
Distinction by the Royal
New Zealand College of
General Practitioners. He
is chair of EcoCentral and
Centercare Limited and a
director of Forté Health and
Ngāi Tahu Property.
George
Savvides
BE (HONS), MBA, FAICD
DIRECTOR
George lives in Melbourne
and has 20 years’ experience
in Australia’s healthcare
industry. After 14 years
as managing director of
Medibank, Australia’s largest
health insurer, he retired
in 2016. George joined
Ryman’s board in 2013
and is chair of Kings Group,
Macquarie University
Hospital, and deputy chair
of SBS.
Claire
Higgins
BCOM, FCPA, FAICD
DIRECTOR
Based in Melbourne, Claire is
a director and consultant with
board experience in Australia
and New Zealand. She joined
Ryman’s board in 2014 and is
chair of REI Superannuation
Pty Ltd, and NorthWest
Healthcare Properties
Management Ltd, and a
director in the property, health,
and philanthropic sectors.
Claire had a long executive
career at BHP and OneSteel
Limited before becoming a
professional director.
THE BOARD
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RYMAN HEALTHCARE

Jo
Appleyard
LLB (HONS)
DIRECTOR
Jo is a partner with
Chapman Tripp and a
skilled advocate and
litigator specialising in
commercial, employment,
and resource management
law. Before her appointment
as a director in 2009,
Jo had acted for Ryman
for several years on
employment and resource
management matters, both
of which are critical to the
success of the company.
Geoffrey
Cumming
BA(HONS), MSC (ECON), LLD
DIRECTOR
Geoff re-joined the board in
June 2018, having previously
served as a director from 1999
to 2000. He 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.
Warren
Bell
MCOM
DIRECTOR
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.
ANNUAL REPORT 2018
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ANNUAL REPORT 2018

Our villages
Tauranga
Dunedin
Invercargill
Gisborne
Napier
Havelock North
Waikanae
Wellington
New Plymouth
Whanganui
Nelson
Palmerston North
Hamilton
1
1
1
1
2
1
1
2
Auckland
272
Rangiora
Christchurch
1
1
6
Key
Ryman village
Under construction
Proposed village
4
1
1
1
1
1
1
Whangarei
1
Our villages in New Zealand
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Key
Ryman village
Under construction
Proposed village
Geelong
Mt Martha
Nellie Melba
Burwood East
Mt Eliza
1
1
1
1
1
1
1
1
•
Aberfeldie
•
Burwood East
•
Coburg
•
Geelong
•
Mt Eliza
•
Mt Martha
•
Nellie Melba
•
Weary Dunlop
Our villages in New Zealand
Our villages in Victoria, Australia
Our villages in Victoria, Australia
Whangarei
•
Jane Mander
Auckland
•
Bert Sutcliffe
•
Bruce McLaren
•
Devonport
•
Edmund Hillary
•
Evelyn Page
•
Grace Joel
•
Hobsonville
•
Lincoln Road
•
Logan Campbell
•
Lynfield
•
Possum Bourne
Hamilton
•
Hilda Ross
•
River Road
Tauranga
•
Bob Owens
Gisborne
•
Kiri Te Kanawa
New Plymouth
•
Jean Sandel
Napier
•
Princess Alexandra
Havelock North
•
Te Aute Road
Whanganui
•
Jane Winstone
Palmerston North
•
Julia Wallace
Waikanae
•
Charles Fleming
Wellington
•
Bob Scott
•
Karori
•
Malvina Major
•
Newtown
•
Rita Angus
•
Shona McFarlane
Nelson
•
Ernest Rutherford
Rangiora
•
Charles Upham
Christchurch
•
Anthony Wilding
•
Diana Isaac
•
Essie Summers
•
Margaret Stoddart
•
Ngaio Marsh
•
Park Terrace
•
Woodcote
Dunedin
•
Frances Hodgkins
•
Yvette Williams
Invercargill
•
Rowena Jackson
Coburg
Aberfeldie
Weary Dunlop
ANNUAL REPORT fiflff
29

Our business model is unique
}
Ryman’s development team identifies
an area with a shortage of aged care and
independent-living options, and buys a suitable
site close to good amenities.
The development and community
relations teams consult with neighbours,
health professionals, and the community.
The development and design teams
develop detailed plans and submit
them for approval.
The construction team begins work
on the new village and the sales and
marketing teams begin work to
attract residents.
The operations team recruits village
staff and begins day-to-day operations
at the village. Independent residents
move in, closely followed by care and
serviced apartment residents.
The village grows until it is fully
built and occupied, and becomes
fully operational. The capital paid
by residents moving in is recycled
to buy the next site, and the cycle
begins again.
At every stage,
it’s got to be
good enough
for Mum.
1
4
5
2
3
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Our business model revolves
around care
Our business model revolves around care.
It starts with finding the right site, developing
a village and a community, recycling cash,
and reinvesting in the next village.
Our development and design teams design
the village to meet the residents’ needs, our
construction team builds it, our sales team
sells it down, and the operations team runs it.
Looking after our people
We put our residents’ quality of life,
companionship, and security first.
Our culture is to look after and
support each other. We invest in our
people to support their health and
wellbeing.
We develop our people and build
our in-house capability. Doing things
ourselves means that we’re better
placed to evolve our offering to
residents. We can maintain quality
control, build our knowledge, and
be more nimble in supporting the
business to grow.
Developing communities
within communities
When we develop a village, we develop
a community within the residents’
wider community. We make it possible
for older people to move into a
lifestyle that directly benefits them.
In turn, that move benefits the local
area as homes are released for other
families to live in.
Social connectedness for older
people is important for their health
and wellbeing. Our residents feel
connected to their neighbours and
friends, and secure in their homes.
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When we put our residents first,
all of our stakeholders benefit
Ryman’s stakeholders include residents and
their families, team members, neighbours and
local communities, investors, funders, suppliers,
and our sponsorship partners.
Creating financial certainty
Our business model provides a high level
of financial certainty. For the residents in
our townhouses and apartments, it’s the
financial certainty of fixed and capped
fees for life.
For the shareholders, it’s the constant
pay-out and constant growth recipe.
Our aim is always to distribute 50 percent
of our underlying profits to our shareholders
and to invest the other 50 percent back
into the business. And so far, that’s
exactly what we’ve done.
For the banks, it’s the knowledge that we’re
not a risk. We recycle capital. We build
and develop a village and sell it down,
so we can get on with the next one. If
we were to stop developing, we’d have
very little bank debt while still generating
strong earnings and cash flows.
Sharing our knowledge
Our integrated thinking leads to the
best possible outcomes for our
residents. Everyone at Ryman is
encouraged to share their ideas with
others in different areas of the business.
Our institutional knowledge includes
years of experience and information
handed down from Ryman leaders
who have been with the company
for almost 30 years. We value
clear communication and train our
team members in communicating
effectively.
We invest heavily in innovative
technology to increase our ability to
share and access information that will
improve the resident experience.
We believe it’s a risk not to invest.
RYMAN HEALTHCARE
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Identifying material issues for
our business
At Ryman, we identify material issues through
a range of regular communications with our
residents and their families, our team members,
and other stakeholders in New Zealand
and overseas.
We review and collate the information and
assess its effect on our ability to create value
in the short, medium, and long term.
Caring about the
environment
As long-term owners, we’re careful to
build energy-efficient buildings that
will take us well into the future. Having
400 or 500 people living in one of our
villages is more thermally efficient
than running 400 houses on quarter-
acre sections.
A Ryman village improves the
environment for people living in
the neighbourhood. The demand
on infrastructure is low. Our traffic
generation is 20 percent of a typical
residential household. It’s small and
it’s generally off-peak.
Continuing to build
our assets
Ryman’s two founders invested
$10,000 when they started the
first development. The same model
has evolved to enable us to turn
$25 million into over $5 billion worth
of assets.
Today, we continue to recycle our
cash investment and establish future
recurring income streams.
By the time we’ve sold the occupation
rights to the apartments and
townhouses in a new village, they’ve
paid for the construction of those
apartments and townhouses as well
as the community assets and the care
centre of that village.
ANNUAL REPORT 2018
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Crea
val
RYMAN HEALTHCARE
3434

ting
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Crea
val
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36

CREATING VALUE
How we
create value
over time
Each village we build represents a long-term
investment in care for the communities we operate in.
And each village creates a new economic engine to
support our future growth as a company.
ANNUAL REPORT 2018
37

We constantly evolve what we do but
stay true to our business model
When Gordon MacLeod first took over as chief
executive, Ryman’s leaders were often asked
about his vision for the business.
Having been part of the Ryman family since
2007, Gordy’s transition to the role was
seamless. His approach is to constantly evolve
what we do but stay true to our business model.
“Gordy’s been very clear that he’s here to honour
what we’ve always done and to keep moving us
forward so that the business model continues to
be as successful in the next 5, 10, and 20 years
as it is now.”
David Bennett, Chief Financial Officer
Everyone is encouraged to share
their ideas
Everyone at Ryman is encouraged to share
their ideas with others in different areas of the
business. And that’s because our goal is to
keep improving every aspect of the resident
experience.
“The board and the executives have unified
conversations. We’re all on the same team,
rowing the boat in a way that synchronises
the oars. The board’s not an enquiry panel
where the execs are lining up to have their
homework checked.”
George Savvides, Director
Community and care for older people was at the
heart of the business model 34 years ago. Today,
using the same model, we offer independent
and assisted living, resthome care, hospital care,
and specialised dementia care. We look after
our residents no matter how their health needs
might change.
We build our own
operational assets
and recycle capital.
That’s how we
create value for our
shareholders.
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The demand for our style of village in Victoria
is high. One reason is that many couples who’ve
been together for 50 years are having to be
separated because many of the villages don’t
cater for people at the different stages of their
health span.
We recognised the need for integrated care
30 years ago because we’ve always focused
on the needs of the residents.
Providing integrated care is one
of our points of difference
Providing integrated care adds a massive amount
of complexity, risk, and cost to what we do. If we
wanted to de-risk our business and focus purely
on the short term, we would build our villages
with fewer care beds. But developing integrated
care is critical if New Zealand and Victoria are
to meet the needs of their ageing populations.
Residents moving into independent living in our
villages are aged, on average, 79. The average
age of residents moving into our assisted living
is 86.
We’ll always have older people who need help
and who can’t live at home. Being able to
provide integrated care is a real strength of our
company compared to lifestyle operators with
only independent-living units and a more limited
care offering.
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We build critical aged-care
infrastructure
We build critical aged-care infrastructure, for
the benefit of older people, which is otherwise
not being built.
Developing our aged-care offering takes
pressure off the public healthcare system and
alleviates funding pressures for district health
boards. Hospitals have limited beds available,
and the cost of caring for someone in our care
centres is significantly cheaper than caring for
them in a public hospital.
A house one of our residents vacates will
already have water and electricity going up to it.
It’ll be on a road with a bus stop nearby. There’ll
be a school and library just down the road. It’s a
lot easier for council.
Our villages create an economic
cycle of benefits to the community
When we develop a village, there’s an economic
cycle of benefits to the community. Some intrinsic
value is generated by people releasing their
homes onto the market. It also takes considerable
pressure off the public health system.
We have 11 villages in Auckland now: seven
operating, two under construction, and two in
design. When we finish building the remaining
four villages, 1,600 more houses will be freed
up in Auckland and we’ll have built another
1,600 homes.
Our business also creates value for other
businesses. The trusted relationships that we’ve
built with suppliers create considerable value
over time.
We’ve got plumbers, electricians, and equipment
suppliers who’ve been there for us, any time of
the day or night, for a long time.
“My business has been supplying the joinery for
Ryman villages for 31 years. Because Ryman
grows by about 15 percent a year and doubles
in size every 5 years, we’re growing at the same
rate. Today, we operate two factories and
employ around 30 staff to meet the demand.
We invest heavily in training and bringing
apprentices through the system.”
Bernie Hunt, owner of Sydenham Joinery and
Aspire Joinery
The council may not need to build a
new subdivision – we do it for them
We help solve a problem that councils also have
– the availability of housing. When we build a
village, it becomes home to over 400 people.
That means there’ll be around 400 houses on
the market, which helps to solve a major housing
problem. Effectively, the council may not need
to build a new subdivision in that area. We do it
for them.
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People are welcoming what the
retirement village model has to offer
People are getting busier in their lives and having
Mum or Dad, or both, move in with them is not
always an option.
When our grandparents reached retirement
age, not many villages were around, and most
people stayed in their homes until they needed
care. As the generations come through, more
and more people are welcoming what the
retirement-village model has to offer.
Village life meets older people’s social needs as
well as their physical healthcare needs. The rate
of depression and loneliness in older people is a
major societal issue. People can underestimate
the social isolation and disconnectedness that
exists in the broader community.
It’s a matter of making sure we’re
top of mind
A risk for us in the medium and longer term
would be a reversal in residential property
prices. We have all sorts of mitigations to reduce
the impact of that. We’re careful about where
we buy land. The demographics have to be right
and the property prices have to be right so that
our villages are affordable in the local area.
A person’s decision to come into one of our
villages is usually based on needs. Often things
happen on the medical front that mean a person
needs more care and support, or they may not
be enjoying living on their own anymore.
We keep a good eye on our occupancy rates.
Even when we had only seven villages, the goal
was full occupancy. With 32 villages, it’s still
non-negotiable.
ANNUAL REPORT 2018
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42

We’re one
big family
Murray and Margaret Daniels made the move
to their Ryman townhouse 6 years ago, and
Murray says they’re now “part of the furniture”.
“They call us the early settlers,” Margaret
jokes.
The pair had a busy life managing a courier
business until they retired and moved to
their holiday home at the beach.
“We lived there for 14 years. We loved it. But
we were getting to the stage where we were
too far away – 50 kilometres to the nearest
doctor and the nearest shop. So, we decided
it was time.”
They first went to see another Ryman village
and were impressed with the way it was
run. Diana Isaac was yet to be constructed,
but the couple signed up early, along with
a friend who now lives just across the road.
In fact, 28 people from Murray and
Margaret’s square-dancing club are now
also living at the village. They’ve made lots
of new friends too.
“We really are quite busy. We do a lot
of voluntary work here,” says Murray.
“We’ve done it for 5 years. It gives us a real
interest.” Margaret looks after the raffles
in the bar every Thursday and works in the
village shop on Friday mornings.
They go to Triple A exercises and enjoy
regular trips with other residents – picnics
in the park, days at the beach, and trips to
restaurants and wineries.
It’s a very social life for those who choose to
mix and mingle. There are opportunities for
the quiet life too if that’s what people prefer.
Margaret enjoys tending the garden outside
their townhouse. The gardeners do the
lawns and the edges and Margaret knows
she only needs to ask if she needs help
looking after the plants.
Family come to visit – a daughter, son-
in-law, and grandson visit on Saturday
mornings.
“And our daughter comes one day during
the week and has lunch with us. It’s a
family atmosphere in the village, as well.
We say it often: we’re one big family.” ¢
It’s a very social
life for those who
choose to mix and
mingle. There are
opportunities for the
quiet life too if that’s
what people prefer.
ANNUAL REPORT 2018
43

Being Ryman in Australia
We’ve got 34 years of reputation in
New Zealand, and we’re only getting started
in Victoria, in Australia.
We need to make sure that the Ryman culture
is preserved as we expand into Victoria. We’re
looking now to find the right people and to bring
them into the Ryman family.
In Victoria, Ryman has become known as
a disruptor in the aged-care sector because
people can see that we’ve come in and disrupted
the market place. Providers in Victoria are mostly
in aged care or retirement living, but generally
not both.
One of the biggest risks for us in the Australian
market is the amount of negative media attention
the sector has had over the last year.
Ryman supports opportunities for more
resident protections in Australia such as those
established 10 years ago in New Zealand.
Debbie McClure is the chair of the Property
Council of Australia’s Retirement Living
Committee in Victoria. She is working with
our colleagues in the sector to enhance the
perception of retirement villages.
“In Victoria, we were quickly seen as being
trustworthy. I wasn’t over here long before I
started to get phone calls from people asking
when a Ryman village was coming to their
neighbourhood.”
Debbie McClure, Chief Sales and
Marketing Officer
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Our offer is affordable for people
Security for our residents is about more than
looking after their physical safety. As we see it,
security also includes having financial certainty.
Most of our residents come from within 10
kilometres of the village. Based on the local
property market, our village living is affordable
for people in the local area who want to stay in
their own community.
When people decide to move into one of our
villages, they sell their house – often the family
home. A portion of that money buys their
occupancy right in the village. They will have
money left over to give them financial certainty.
“We concentrate on making sure that the offer
we have available is affordable for people. We
look at residential property prices in the area
and pitch the offering so that it is luxurious, but
still leaves them with enough of a buffer that
they don’t feel vulnerable.”
Dr David Kerr, Chair
Our agreement sets us apart in
the market
Ryman offers some of the most resident-
friendly terms in Australasia. The weekly fees
for townhouses and apartments are fixed for life,
and the deferred management fee is one of the
lowest in the retirement sector.
The waiting list tells us that people know
what they want – whether it’s a townhouse, an
independent apartment, a serviced apartment,
or aged care.
Our agreement is written in plain language.
The terms and conditions are transparent and
easy for everyone to understand.
Many agreements, especially in Australia,
are dense and hard to understand, causing
confusion and unexpected costs when it
comes time to leave.
Someone buying a townhouse or an
independent or serviced apartment with us
knows exactly how much they’re paying and
what they’re going to get back at the end of
their occupancy.
They know their fees are fixed for life. They
know the deferred management fee is capped
at 20 percent. They know they don’t have to pay
refurbishment, selling, or administration costs
when they leave. And they know their fees will
stop the day they move out.
Our promise to residents
is ‘no surprises’.
ANNUAL REPORT 2018
45

Fixed weekly fee
We know how important it
is for you to have certainty
regarding your living costs.
“We guarantee that we will
never increase your base
weekly fee for the entire time
you occupy your townhouse
or apartment at the village,
regardless of any changes
to the operating costs at the
village. Your base weekly
fees are permanently fixed
for you.”
1
Continuum of care
This gives you the peace
of mind of knowing that if
the need arises, you can
remain living within the village
community and in close
contact with your spouse or
friends in the village.
“We guarantee that you will be
granted priority access to the
care facilities within the village
or to another Ryman care
facility if you so choose.”
2
Fees stop immediately
You will also want to know
that you do not continue to
carry the cost of outgoings
when you leave your unit. We
see it as our responsibility
(not yours) to carry the cost
of outgoings once you have
left your unit and we are in the
process of on-selling your unit.
This gives us an incentive to
on-sell your unit quickly.
“We guarantee that the weekly
fee and deferred
management fees will cease
on the day you permanently
vacate your unit.”
3
Ryman’s
Peace of Mind
Guarantees
We’ve developed nine
peace of mind guarantees
to protect residents and
their families.
RYMAN HEALTHCARE
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Deferred management
fee is capped
The deferred management fee
is your contribution to the
refurbishment and management
of the village. It is charged on an
“enjoy now, pay later” basis,
and is deducted when your
occupancy advance is repaid
to you. If you wish to transfer
to another unit or to another
Ryman village, you will want to
be assured that your deferred
management fees will be no
more than 20 percent overall.
“We guarantee that our deferred
management fee will be capped
at a maximum of 20 percent of
the occupancy advance – even
if you transfer to another unit
within the village or transfer to
another Ryman village.”
4
No hidden costs
You will want to know that
there are no hidden costs
when you move into a
retirement village, or when you
leave your unit.
We accept total responsibility
for undertaking the
refurbishing, marketing, and
sale of your unit. These costs
are covered by the deferred
management fee.
“We guarantee not to
charge for any sales,
administration, marketing, or
refurbishment (except where
there is more than fair wear
and tear to your unit) when we
on-sell your unit.”
5
Repayment protection
It is standard practice for
retirement villages to repay
your occupancy advance when
the unit has been on-sold.
However, you will want to know
that if the on-sale is delayed for
some reason, you will be repaid.
“We guarantee that if the new
resident has not settled within
six months of you vacating your
unit, we will pay you interest on
your occupancy advance until it
is paid in full.”*
Over 30 years, the longest time
a Ryman resident has ever
waited to be repaid
their occupancy advance
is 6 months.
6
No capital loss
It will be important to you
and your family that you have
certainty about the amount
you are repaid when you leave
the village, and that you are
not exposed to any capital
loss when the unit is on-sold.
“We guarantee to repay you
the balance of your
occupancy advance, and that
the amount repaid will not be
affected by a decline in the
value of the unit.”
7
Changing your mind
Buying your new home in
a retirement village is an
important decision, and we
want you to be confident you
have made the right choice in
selecting a Ryman village.
“We guarantee that if you
change your mind within 15
working days of signing your
occupancy agreement (and
you have not yet taken up
residence)*, then we will agree
to cancel the agreement and
refund your deposit in full.”
8
90-day money-back
guarantee
We’re so confident you’ll be
happy with your decision to
move to one of our villages, we
will provide you with a 90-day
money-back guarantee.
“We guarantee that if you are
unhappy with your decision to
move into your unit, on the
expiry of 90 days after you
take up permanent residence
and you wish to leave the
village, then we will repay your
occupancy advance in full.”
(Some conditions apply)
9
*Australia: 21 days of signing your application
form or 3 working days of signing the resident’s agreement.
For more information on how our guarantees work, see our residents’ disclosure statement.
* Terms differ in Australia.
ANNUAL REPORT 2018
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48

CREATING VALUE
We do it
safely or
not at all
Our goal is to continue to increase awareness
and commitment to safety throughout the business
to our team members, residents, contractors,
and visitors at all sites.
ANNUAL REPORT 2018
49

Protecting people’s health,
safety, and wellbeing is a core
value at Ryman
We strive to continually develop an
organisational culture with safety at its core.
Providing safe equipment, systems, and
procedures is not enough if the culture
doesn’t drive people to do things safely.
We make sure we create an environment
where people feel comfortable and confident
discussing safety.
This year, we have further developed our
processes, resources, training programmes,
and audit tools.
Areas of focus include critical risks, contractor
management, worker engagement, and safety
leadership.
We invest heavily
in health and safety
because we want
people to go home safe
every night.
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50

During the year, we:
• introduced Stop Think! What could go wrong?
– this home-grown initiative has been rolled
out across Ryman and gives staff a simple
framework to assess risks and stay safe
• rolled out Assura safety software at all our
sites and trialled new apps for construction
equipment safety checks
• reviewed competency assessment and
improved on-site training for mobile-plant
operators and safety spotters
• broadened the staff survey to encompass
sub-contractors, whose experience, opinions,
and observations enable us to strengthen our
health and safety management practices
• expanded the health and safety team by
creating additional roles to assist and advise
construction and village teams
• continued our education in critical risk for the
senior executive and senior leadership teams
• achieved the highest possible rating in the
ACC Partnership Programme – Ryman
was awarded tertiary status for the sixth
consecutive year.
The future of health and safety management
throughout Ryman will see continued efforts in
proactively managing critical risks. Supporting
these efforts with confident, well-trained
leaders helps to reinforce this health and
safety culture and maintain consistently high
standards. We are committed to safety as a
core value in the way Ryman does business.
Sharing this commitment with all our people
encourages more engaging and empowering
strategies.
“Over the past year, we’ve worked collaboratively
with our contractors and suppliers on health
and safety. Our leadership teams at the villages,
construction sites, and offices have received
further training on contractor management
and on leading safety. We’ve appointed
additional resources for each part of the
business to extend our reach and reinforce
clear expectations.”
Matt Poskitt, Group Health and Safety Manager
Our staff survey
now goes out to
our sub-contractors
whose insights help
us to strengthen
our health
and safety
management.
ANNUAL REPORT 2018
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52

CREATING VALUE
A strong
focus on our
day-to-day
operations
People come to us with varying needs. Some residents are
completely independent, still driving and doing everything
for themselves. Others need 24-hour nursing care or secure
dementia care. Or they could be anywhere in between.
ANNUAL REPORT 2018
53

A great resident experience depends
on staff who are passionate about
caring for people
Of Ryman’s 4,700 staff, more than 4,000 work in
our villages. Our teams need to be enormously
responsive and flexible as they focus on providing
the best possible experience for our residents.
We’re constantly looking to improve. We’re
always prepared, and we’ve got good systems.
When we need to improve our systems, we do it.
The risk in day-to-day operations is considerable.
The reality is we’re caring for thousands of
residents, and a lot of them are very unwell.
A great resident experience depends on staff
who are passionate about caring for people. We
make sure everyone understands our values and
that our values are indisputable. The standard is
always: it’s got to be good enough for Mum.
We’ve been providing specialist
dementia care for 20 years
Ryman villages have an exceptional activities
programme for residents in dementia care.
We have dedicated lounge carers plus activities
staff 7 days a week, so that in itself is quite
different from most other providers.
“Our dementia team is amazing. They just have
something special about them – the way they
interact with the residents and talk to them.
It’s such a nice feeling to walk into that space.
It’s on the top floor so it has beautiful views and
plenty of sunshine. The residents have lots of
outings. And relatives will take them out into
the garden, or one of our team will. They just
need to always have someone with them.”
Adrienne Sincock, Clinical Manager, Diana Isaac
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54

We use clever design to create
resident-friendly secure
environments
Our dementia areas feature a raft of innovative
design features in lighting, textures, furniture,
and wayfinding.
For people with cognitive impairments, a beige
hotel corridor is confusing. Each of our hallways
is a different colour with distinct visual images
that the residents can identify as they make
their way around.
Bright lighting, low sound levels, and making
good use of large open areas are among the
keys to good design.
By using clever design, we can create secure
environments that make it easy for residents to
find their way around and feel comfortable.
If we stopped listening to our
residents, we’d lose touch with
what they really want
We ask a lot of questions and we take a lot of
notice of what our residents and their families
tell us. We’ve done that for a long time now.
If we stopped listening to our residents, we’d
lose touch with what they really want.
We’ve had a lot of feedback from our residents
over the years about what they like and
don’t like. We’ve got the will and the in-house
capability to respond effectively.
We do regular surveys, and our residents’
happiness scores are the highest they’ve ever
been. Our residents and their families are telling
us how they’re feeling in the village, what the
food is like, how the laundry service works, and
how the staff are communicating with them.
We identify areas for improvement, and this year
the survey results led us to focus on improving
the gardens and grounds in some of our villages.
Our caregivers
answered over
4 million call
bells this year.
We’ve installed emergency power
generators at all our villages
We’ve invested over $10 million in having our
own on-site electricity generator at every village.
These powerful hardwired generators keep the
essential services functioning in a power outage.
We’re not required to provide them, but we
believe it’s important.
Since the roll-out, the generators have fired up
on 142 different occasions.
Our generators
have fired up
142 times.
ANNUAL REPORT 2018
55

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It’s got to be
good enough
for Dad
When Karen Nickson leaves her
desk at 3pm every Tuesday and Thursday,
her workmates at the bank know exactly
where she’s going.
“I tell them I’m off for a wine at Hilda
Ross!” she laughs.
Karen’s father Colin moved into dementia
care at Ryman’s Hilda Ross village in
Hamilton last year. While life has now
settled into a good routine, Karen is the first
to admit that the journey to this point has
been hard.
Colin has dementia, and for some years
Karen’s mum Lynette was his primary
caregiver. When Lynette became unwell
early in 2017 and died within just a few
weeks, life turned upside down for the
whole family.
The shock of the change in Colin’s life
affected him more than the family had
expected. Within a short space of time, he
lost the ability to shower himself and get
dressed. “I was in denial and fought what
the experts were saying,” Karen says.
The family investigated the various
dementia care facilities in the Hamilton
area and chose Hilda Ross. While the
beautiful aesthetics immediately drew her
in, what made it really stand out was the
standard of care.
“We were worried that Dad was going to be
lonely because he’s the sort of person who
likes company, and I felt there was more
engagement for him here. The activities
programme has impressed me the most.”
“What really blows me away is how caring
the staff are and how much they engage the
residents in what’s going on outside these
doors. On the day of the Melbourne Cup,
the staff all made a special effort to build
the Cup theme into the day and help the
residents enjoy everyday life. It was great to
see the residents dressed up – the women
wore hats and fascinators.”
Karen is open about the fact that there is
nothing easy about leaving a loved one in a
locked environment. “I was really struggling.
I had to come to terms with my sense of guilt
and accept that Dad’s in the best place. And
I’m confident now that he is.”
Karen says she recommends to anyone
she meets who has a family member
with dementia that they start having a
conversation about care, sooner rather
than later. “The assessment can take time,
so it’s better to start early.”
As Colin has settled in, Karen has learned
to delight in the simple joys of time with her
father. “We go for a walk around the garden
for some fresh air and then I say, ‘Let’s go
and have a wine’. He and Mum used to do
that, so that’s our routine now.” ¢
ANNUAL REPORT 2018
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Delicious goes down a treat
with the residents
We deliver over 10,000 Delicious meals a day
to our residents.
Food is really important for older people.
They look forward to meal time, and the
food needs to taste good and be nutritious.
Last year, residents’ feedback told us that the
meals didn’t suit everyone’s taste. We want to
delight all of our residents, so we set up Project
Delicious to work out what we could change.
We decided if we were going to really change
our food offering, we needed to review all of
our catering processes and resourcing.
Within 8 months, Project Delicious became
simply Delicious – the name of our new food
offering. Our Delicious menu offers residents
more choice at every meal, including a
vegetarian dish.
19 of our
villages have
achieved the
‘gold standard’ in
external auditing.
We deliver
over 10,000
meals every day.
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Delicious provides good old-fashioned home-
cooked meals, as well as some exotic new
creations, all made by our in-house village chefs.
The feedback tells us that Delicious is going
down a treat with residents.
“Over the years our organisation has come of age.
Ideas are tabled and very quickly the best ones
become reality. Once we come up with a good
idea, we really go for it and make it happen fast.”
Barbara Reynen-Rose, Chief Operations Officer
Ryman has the highest proportion
of care centres with the ‘gold
standard’ in care
The Ministry of Health regularly audits our
care centres. Of all the large providers with
15 villages or more in New Zealand, Ryman
has the highest proportion of care centres with
4 years’ certification, which we regard as the
gold standard in care.
We have our own in-house quality and training
team who ensure that all our villages are
consistently operating at a high standard.
We don’t talk a lot about compliance. We just
make it happen so that, to the resident, it
appears seamless.
This approach has helped us gain the 4-year
certification status that we now have in so
many of our villages.
We constantly monitor our
clinical data
We constantly monitor our clinical data and look
to see what we can do better.
Three times a year, our clinical governance
committee meets. It’s an opportunity for our
clinicians to meet with members of the board
to review our clinical indicators – anything from
falls to norovirus.
The committee provides a useful sounding
board for our clinical team. We can draw on the
collective wisdom of George Savvides, who ran
a large healthcare insurance company; Dr David
Kerr, a general practitioner; Jo Appleyard, a
lawyer; and Tim Wilkinson, a professor at Otago
Medical School and a consulting geriatrician.
Innovative technology allows
us to record personalised care
data in real time
We’ve developed our own app that streamlines
the administrative and reporting tasks involved
in providing care.
The app, called myRyman Care, gives nurses
and caregivers all the personalised care
information they need, at the bedside, to provide
the best care for every resident.
Innovative technology allows us to record data
in real time on a tablet in the resident’s room.
We can record measurements and observations;
create and assign tasks; and record the
outcome of those tasks.
The data also helps us to identify trends and
patterns in our residents’ daily lives. These
insights can help us to continue to improve the
outcomes for our residents.
Our residents’ happiness
scores are the highest
they’ve ever been.
ANNUAL REPORT 2018
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It’s essential that we continue
to innovate
By August this year, myRyman Care will have
been rolled out to every Ryman village in
New Zealand with Victoria next. Feedback from
our team is that they’re enjoying working in a
paperless environment and being freed up to
spend more time with residents. It’s another way
we can provide exceptional care.
It’s essential that we continue to innovate with
improvements such as myRyman Care. Writing
up notes on paper was unsatisfactory. It made
us vulnerable to errors and took up a lot of time.
Our myRyman Care engages residents and their
families in the care plan. Our staff can sit down
with them in the resident’s room and talk about
the information on screen together.
Our myRyman Care
app engages residents
and their families in
the care plan.
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We have endless opportunities to
continue to innovate
We hear a lot about how smart technology is
going to revolutionise our industry. We believe
one of the ways in which technology can truly
revolutionise the industry is by increasing
the amount of human interaction that older
people experience.
We believe myRyman Care is the biggest
investment in technology by any aged-care
provider in Australasia.
As well as investing in the myRyman Care app,
we also designed and installed Never Alone. It’s
a system that uses motion-sensor technology
to alert us if there’s been no movement in an
independent apartment or townhouse over
the course of a day. It gives us another layer
of assurance that our independent residents
are safe.
Our innovation has wider applications. The
technologies used to create Never Alone
and myRyman Care can be applied to other
functions, in other parts of the business.
We have endless opportunities to continue to
innovate and make some remarkable advances
with the technology that’s available.
The Ryman Prize promotes
innovation to support the
wellbeing of older people
Through the Ryman Prize, we create an
international focus on advances for older
people. Because older people are an often
overlooked group of society, our association
with the prize has enormous potential.
A prizewinner’s work could benefit the entire
aged-care sector. We want to recognise and
reward those who have dedicated themselves
to working for the benefit of older people.
Making a material difference
to our chosen charities
Every year we make a material difference
to a chosen organisation through our charity
work. We choose one charity and make a
real difference to it. We connect that charity
into the villages.
This year, we chose to support charity partners
Alzheimers New Zealand and Dementia Australia,
with a combined donation of $415,000.
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CREATING VALUE
Our residents
are connected
to vibrant
communities
We bring life into the villages so that people who can’t
get out and about as much can still experience a lot of life
and a lot of fun. There’s always plenty going on.
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We want our residents to enjoy living with us.
Our residents can see art exhibitions, fashion
shows, music and dance performances, and
enjoy a colourful mix of visitors.
Young parents’ groups bring children into the
villages, and our residents go out into schools
and help children with their reading.
It’s not unusual to find farm animals in our
villages: we have had visits from horses, lambs,
rabbits, dogs, and chickens.
People moving into our independent or serviced
apartments may bring their cat with them. Some
of our townhouse and independent apartment
residents have a dog.
People who have no experience of a Ryman
village can have the idea that we build
impersonal, gated communities. Actually, we
create the kind of community environment that
the residents grew up in.
“The reality is that residents love the village
environment and they feel connected to
neighbours and friends. People in their seventies
and eighties often may not drive. At a village,
they can zip down to the café or village centre,
have a cup of tea, and catch up with people. It’s
right there. It’s all covered. It’s perfect for them.”
Gordon MacLeod, Chief Executive
Each week around
3,200 residents take
part in our Triple A
exercise programme.
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Our villages are transformed with
music and dance
The arts are really important to our residents,
so we sponsor the Royal New Zealand Ballet
and the New Zealand Symphony Orchestra.
We don’t just write a cheque; our sponsorships
are a two-way engagement for both sides to
really get something out of it.
Our villages are transformed with music and
dance, and our residents love it.
Residents feel connected to their
neighbours and friends
Our Engage programme offers daily activities
to keep residents stimulated and entertained in
a social setting. There are plenty of events they
can attend inside the village or out and about.
Residents catch the village van to the shops and
go on day trips together.
Triple A (Ageless, Active and Aware) is a fun
exercise programme for any residents who want
to join in. Residents tell us that taking part in the
programme improves their balance and mobility.
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Breaking
through the
fourth wall
Ryman is a season sponsor of the
Royal New Zealand Ballet (RNZB). The RNZB’s
Executive Director Frances Turner says the
relationship that began in 2014 very quickly
became one of RNZB’s most enjoyable and
rewarding partnerships.
“Ryman has used the relationship with us
as a way of engaging with their people, with
staff, and with residents in a whole new way.
And what they’ve done has inspired us.”
What started out as quite a traditional
sponsorship has changed into a celebration
of creativity, connection, and movement
designed to enrich the residents’
experience. The partnership is no longer
just a case of putting a logo on some
promotional material and giving out free
tickets to the ballet.
“Ryman is an unusual company in the
way they put people at the heart of their
business,” Frances says.
For The Wizard of Oz season, Ryman’s team
turned every village into Oz.
“They put down yellow brick roads and
emerald cities and used the ballet as a way
to get together and tell stories, dress up, and
have fun.”
Last year, with Ryman sponsoring the
season of Romeo and Juliet, the villages
have been celebrating history and love
stories. The residents have built balconies,
had tea for two in the dining room, and
taken part in quizzes, movie nights, and
a masquerade ball.
RNZB visits Ryman villages regularly.
“Over the last few years, our own super
senior Sir Jon Trimmer has gone out to
villages to chat to residents and share
stories about his life.”
When residents and staff celebrated
10 years of Ryman’s Triple A indoor
exercise programme, five RNZB dancers
joined an exercise session at Bob Scott
village in Petone.
“The young bodies in the ballet company
do extraordinary things,” Frances says.
“The investment that Ryman puts into
keeping older bodies moving is also an
extraordinary thing. It was wonderful to
have both ends of extraordinary meet in
that celebration.”
Frances says ballet is part of a lot of people’s
pasts and a lot of people’s memories.
“In theatre, you often hear the expression
‘breaking through the fourth wall’, the
invisible wall that separates the world on
stage from the audience. Our relationship
with Ryman has broken through that
fourth wall. It’s joined up what happens at
the RNZB and on stage with what happens
in the villages with the residents. And that
makes it something much bigger.” ¢
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Rae’s special
place to live
Ninety-year-old Rae Blackmore first came
to the Diana Isaac village 3 years ago when
her husband Stan was being admitted to the
hospital wing.
Stan was losing his sight and needed more
care than he could get at home. Rae became
a regular visitor, making her own way there
initially, then supported by her children.
“I’ve got three girls, all with families, and
they live nearby. I’m very lucky, I get a lot
of good support.”
The family suggested Rae might like to
move into Diana Isaac to be closer to Stan.
“So, I came over and we all had a look
through the serviced apartments and I
loved it.”
Rae’s home was auctioned off in 6 weeks.
“That was interesting – I went to the
auction. It was time to start giving stuff
away, you know.”
Rae remembers well the day Stan
passed away.
“I had been sitting with Stan all morning
and went away to have some lunch. It was
quite strange the way it happened. I got the
message to come quickly. I ran through the
corridors, and just got there. Our daughters
were there. I just sat down and put my arm
around Stan and he gave me a wee smile.
We were all crying, you know.”
Rae enjoys the activities and keeps herself
fit with exercise classes and walking
around the bowling green. “I did it eight
times yesterday.”
Rae’s friends in other apartments take
trips out to the country, maybe for lunch or
afternoon coffee. “I like the library here and
I can always find lots of books to read.”
Rae loves all the music and entertainment in
the village. “The pianists are my favourite.”
A highlight of the year for Rae was when
the over-70s brass band played at the village.
They surprised Rae by asking her to conduct
as they played The Invercargill March.
“It was a real thrill. I came back and started
to cry. I was emotional about it all and
thought it couldn’t have been me up there
conducting a band. It was lovely.”
Rae likes to make her own breakfast in
her apartment and gets specially prepared
meals at other times in the dining room.
“It’s easier for me. It’s always nicely cooked
and the gravy is lovely.”
Though supported by our team, Rae likes to
help out with keeping her own place tidy.
“I said to just tell me which days you’re
coming because I forget, and I want to
make sure I’ve done the dusting before they
come in with the vacuum cleaner.”
Rae has some advice for anyone considering
a move to Ryman.
“Don’t even worry about it. Just come.
You have to be on a waiting list, so get your
name on the list. It’s such a special place
to live.” ¢
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CREATING VALUE
We care
about and
invest in
our people
At Ryman, it’s all about people.
We care about our people, we want them to
enjoy the work they do, and we want them to
get home safely every day.
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Kindness underpins everything
we do
We believe in treating people with kindness – our
residents, their families, our teams, and every
person we come into contact with. We show
kindness in many different ways – from thinking
about how we can help others, to having the
courage to have a tough conversation.
“When it’s got to be good enough for Mum,
being kind is non-negotiable. I want my loved
ones to be treated with kindness; we all do.
That kindness starts with us.”
Nicole Forster, Chief People and
Technology Officer
Communication is key
We don’t use jargon at Ryman: we use simple,
clear language with honesty and respect.
We have a diverse group of people from
different cultures and backgrounds working
for us. To work as a strong team, we need to
understand and trust each other. Positive,
honest communication helps to build that
understanding and trust.
We stay close to our people by communicating
directly with them. We receive their feedback
in its clearest and most open form, and act
on it quickly.
We still recruit ‘above the line’
We’ve got a saying at Ryman: ‘Recruit above the
line’. It comes from our co-founder Kevin Hickman
who would walk into a village manager’s office,
draw a line on the wall, and say, “That’s your best
caregiver. When you’re employing a new caregiver,
recruit above that line”.
We look for people who have the right attitude
and passion for what we do. We can train people
in the technical skills, and we often do. If they
have the aptitude to learn, the energy, and the
commitment, we will invest in people whose
values align with ours.
As Ryman has grown to become a large
organisation, we’ve been able to keep our
‘family business’ feel. This is the result of our
commitment to recruit people who are a good fit
with our culture and who keep our values strong.
We’re investing in developing
our people for the future
We want our people to grow and to become the
best they can be. Kevin Hickman took many of
our current leaders under his wing and coached
them to success. Those leaders are now doing
the same for our future leaders through support
and mentoring.
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This year, we rolled out the first phase of our
leadership development programme, LEAP
(Lead, Energise and Perform). LEAP helps to
develop what we know are the characteristics
of a successful Ryman leader. By the end of
the year, over 300 of our leaders will have
completed their first year of the programme.
We’re excited about the growth ahead. We’re
doing the work now to make sure we have
the people strength to enable our growth and
maintain our culture. At the same time as our
staff numbers increase, we’re providing higher
remuneration, more benefits, and greater
development opportunities.
To keep up with our growing teams, this year
we expanded our office space in Christchurch
and in Auckland. We are planning to move into
bigger premises in Melbourne next year.
We do it differently and we
do it ourselves
Ryman has always focused on building
capability in-house. It’s part of our business
model. Analysts often ask why we would have
our own chefs and gardeners and designers, and
not get specialist contractors in.
We develop and promote our own people for
many reasons. Doing things ourselves means
that we’re better placed to evolve our offering
to residents. We can maintain quality control,
build our knowledge, and be more nimble in
supporting the business to grow.
“We work hard to make sure that as we grow,
we maintain our culture. Who we are, why we do
what we do, and how we do it are very important
to us. It’s what makes us Ryman.”
Nicole Forster, Chief People and
Technology Officer
Ryman named the most trusted
brand in the retirement village
industry
For the fourth time, Ryman has won the top
award in the retirement village category in the
Reader’s Digest 2018 Most Trusted Brands
awards. The awards profile the brands that Kiwis
recognise and trust the most.
Working in aged care means that there has to
be a high degree of trust between our staff, our
residents, and their families. We’ve spent the
past 34 years building this trust and we work
hard to maintain it.
“We were delighted to win the first time. To win
four times is testament to the amazing work our
staff do. As a company that cares for thousands
of older New Zealanders, I can’t think of a better
accolade to win.”
Gordon MacLeod, Chief Executive
Our most recent
staff survey told us
that our people are
happier than ever.
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CREATING VALUE
Our villages
are people’s
homes
Because we’ve got our own design
and construction teams, we can be quite flexible.
We can quickly come up with solutions to a
complex set of problems. That’s the beauty
of the way we operate.
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We design villages that are specifically for
older people. We think about how we can make
it easier for our residents to move around the
village unaided. We think about how we can keep
them feeling warm and comfortable around the
village, all year round.
We always ask ourselves the simple question: Is
it good enough for Mum? Our designers also ask:
Is it homely – would you have that in your own
home? If the answer is no, it doesn’t go in. Some
things are regulatory, but we work hard to hide
them from view.
“I was at a business breakfast in Melbourne
with a lot of aged-care providers in the room.
Because they knew I was from Ryman, I was
asked to comment on my view of the industry.
I said the thing that strikes me with aged care
in Australia is the language being used.
They were talking about their ‘facilities’. And I
challenged them on that. Actually, these villages
are people’s homes. They’re not facilities.”
Claire Higgins, Director
We’re not building ‘cookie cutter’
townhouses
There’s no one size fits all. Every site has
different attributes and so we design different
villages to suit the sites.
Whenever we bring technicians in and show
them a development, they’re shocked to find
we’re not building ‘cookie cutter’ townhouses.
They often don’t realise how challenging the
work is, how diverse our buildings are.
At Bob Scott village, for example, we’ve got one
of the only apartment blocks in New Zealand
built on base isolators, as a safeguard against
earthquakes.
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A construction company runs
alongside our villages
Generally, people don’t realise we do all
the construction as well. We’ve got a large
construction company that runs alongside
our care centres and retirement villages.
The main difference for people working on a
Ryman construction is they get to see people
move in. They see the construction site turn
into a home. The people who’ve been with us
for a long time feel a real sense of pride.
Around 5 years ago, we were building villages
for around $100 million each. Now we’re building
villages for around $200 million. The returns
are greater, basically double, but the risk
involved when one stage of a development
is late also doubles.
Because we build our own villages, we can
mitigate that risk by being flexible in the
construction process. We can speed up and
slow down the process to match demand.
We think about the fit of the village in the local
community as well.
“We don’t buy existing villages, we design and
build our own. That gives us the opportunity to
create something unique. We have a continuous
improvement programme for how they should
be built, refurbished, and maintained. Buying and
developing your own and making sure they’re
kept up to scratch creates long-term value.”
Warren Bell, Director
We constantly look to improve
how we do things
Integrated thinking enables us to constantly
improve how we do things.
Sometimes our design thinking changes,
and we’ll incorporate new thinking even if the
building is under construction.
“A technical ‘draughty’ suggested we flip an
apartment around at the end of a building
to give a better aspect out to the bush. I was
designing for the sun. Flipping it around meant
the resident would still get sun until about
2 o’clock and a beautiful outlook. Sometimes
you can miss this stuff. We definitely encourage
everybody to share their ideas.”
Taylor Allison, Group Concept and Design
Manager
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We incorporate our neighbours’
concerns into our design thinking
Mainly we look at how to avoid shading,
overlooking, and dominance for our neighbours.
We know the demand on infrastructure is going
to be low.
A Ryman village makes the best neighbour:
the gardens look good; the traffic is low; and the
residents are lovely. There’ll be no loud parties
keeping anyone awake at night.
Our construction team is part
of the community
We think about our neighbours. A lot of residential
builders who turn up in neighbourhoods don’t
need to, because there’s no reputational
comeback for them.
When we build, we want to be good neighbours
and protect our brand. If people have a complaint,
we respond swiftly and constructively.
“We put a lot of effort into communicating with
our neighbours to make sure they’re happy
throughout the construction process. At our
Devonport site, we’ve built a safe viewing
platform with a perspex window so locals can
come and watch progress. Kids love having a
look at the diggers.’’
Tom Brownrigg, Chief Construction Officer
Finding the site is a science in itself
Finding the site is a science in itself. There’s a
lot of risk involved in building in the wrong place.
We need to find the right site, the right-sized site,
then draft and draw, design, get it through the
council, keep the neighbours happy, and build it.
When we’re buying the land, we do a lot of
research and analysis up front. We look at the
demographics in the area to make sure there
are enough people nearing 70 years of age. No
matter how beautifully designed a village is or
how good our marketing is, if we’re not in the
right area, it’s not going to go well.
We have procedures in place to
identify and manage risk
We’re good worriers: we think and plan and talk
to add value to our processes for identifying and
managing risk.
Getting consents through is a risk, and we deal
with that by having robust procedures in place.
Right from when we buy a site, Debbie (Sales)
and Andrew (Development) get involved in
talking to the neighbours and anyone else who
might be affected by the construction.
David (Corporate Affairs) and Jenn (Marketing)
get involved in building Ryman’s reputation
through communications and marketing within
the area.
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We build energy-efficient buildings
that will take us into the future
As long-term owners, we build energy-efficient
buildings that will take us well into the future.
For all our new sites, we use leading design
and construction techniques that are more
sustainable.
Ryman meets the Green Star rating in
Australia, and all of our villages in Victoria meet
environmentally sustainable design (ESD)
requirements.
With the decreasing cost of harnessing solar
energy, we’re thinking about how we can
continue to reduce our impact.
We can do more, environmentally
The reality is the construction industry in
New Zealand is responsible for more than half
of what goes into landfill. We can do more,
environmentally, to offset that.
Our villages are already energy-efficient in their
design. We reduce vehicle traffic in the areas
where they’re built.
We’ve signed up to CEMARS (Certified
Emissions Measurement and Reduction
Scheme). CEMARS supports us in calculating
and reducing our carbon footprint. Third-party
certification is important for accurate carbon
measurement and reporting.
A Ryman village
makes the best neighbour:
the gardens look good;
the traffic is low; and the
residents are lovely.
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CREATING VALUE
An
extraordinary
curve of
demand lies
ahead
We’re building our capability
to meet the demand.
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The United Nations has described the ageing of
the world’s population as “unprecedented and
unparalleled”, and we are only just at the start of it.
The number of people aged 75+ in New Zealand
and Victoria is forecast to nearly triple over the
next 30 years. In New Zealand, the population
in this age group will rise from around 300,000
today to over 850,000 by 2048. In Victoria, it will
lift from around 400,000 today to over 1.2 million
by 2048.
In 1936, the birth rate in New Zealand and
Victoria increased for the first time since the
end of WWI. For another 35 years, the birth rate
in both countries continued to grow.
Most of Ryman’s residents were born in the late
1930s or early 1940s, so we are just at the start
of this demographic change. The baby-boomer
(people born after WWII) phenomenon that has
been talked about for years still lies ahead.
80,000
60,000
40,000
20,000
0
Number of births in New Zealand and Victoria
Source: Statistics NZ, Australian Bureau of Statistics, number of births in New Zealand and Victoria.
New ZealandVictoria
19921952193219121892187220121972

The number of people
aged 75+ in Victoria
is 40 percent greater
than the number of
people aged 75+ in
New Zealand.
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40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Population growth 75+: next 30 years
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Source: Statistics NZ, Australian Bureau of Statistics
NZ ave annual increase in population aged 75+
Victoria total population aged 75+ (RHS)
2038–20432033–20382023–20282018–20232014–20182011–20142006–20112043–20482028–2033
NZ total population aged 75+ (RHS)
Victoria ave annual increase in population aged 75+
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We’ve only just got
started on growth.
Developing a great pipeline
of villages
We’re busy getting the next generation of
villages through the design and consenting
process to create future growth. By 2020, we
plan to have five villages in Victoria. Our goal
is to keep the land banks in both countries at a
supply of not less than 4 years. And we’re well
on the way to achieving that.
From that point, we want to open four villages a
year: two in Victoria, one in Auckland, and one
somewhere else in New Zealand.
Our future growth depends on having a solid
land bank at different stages of development –
planning, design, consenting, and construction.
We continue to progress the sites through
these stages.
The long-term opportunities for Ryman in
Victoria are significant. We want to develop
more villages in Victoria and prove ourselves
in the market.
In 7 years’ time, Victoria alone will have a
population of seven million people. That in
itself creates enormous potential for Ryman.
RYMAN HEALTHCARE
84

Petone – NZ
Rangiora – NZ
Birkenhead – NZ
Greenlane – NZ
Brandon Park – Victoria
Lynfield – NZ
Devonport – NZ
River Road – NZ
Coburg – Victoria
Burwood East – Victoria
Geelong – Victoria
Mt Eliza – Victoria
Hobsonville – NZ
Newtown – NZ
Lincoln Road – NZ
Park Terrace – NZ
Mt Martha – Victoria
Karori – NZ
Aberfeldie – Victoria
Havelock North – NZ
DesignVillagesConsentingConstructionVillage openFinal stages
Our land bank
ANNUAL REPORT 2018
85

RYMAN HEALTHCARE
86

CREATING VALUE
We are in
a strong
financial
position
We are pleased to be able to report a
solid full-year result and excellent progress in
developing our people and care systems.
ANNUAL REPORT 2018
87

Our balance sheet is stronger than ever with
total assets of $5.8 billion. With 16 villages in
the pipeline, we have a strong development
programme stretching out ahead in New Zealand
and Victoria.
Resales volumes at our existing villages grew
by 15 percent while sales numbers in the wider
real estate market in New Zealand were down
by 14 percent.
Ryman ended the year with less than one percent
of its portfolio available for resale. Occupancy in
our care centres was 97 percent compared with
an industry average of 87 percent.
Ryman’s performance in the year
to 31 March 2018 in a snapshot
• Underlying profit up 14.2 percent to
$203.5 million
• Reported (IFRS) profit up 8.8 percent to
$388.2 million
• Full-year dividend up 14.6 percent to
20.4 cents per share
• Site for eighth village in Victoria secured;
target remains to open five villages by 2020
• New villages in Karori and Havelock North
planned
• 16 new villages in the pipeline
• Residents and staff happier than ever
Ryman Healthcare’s full-year underlying profit
has risen 14.2 percent to $203.5 million as a
result of growing demand for independent living
and aged care. And the company’s expansion
into Victoria is on track with the purchase of an
eighth site.
Ryman shareholders will receive an increased
final dividend of 10.9 cents per share in line with
the growth in underlying profits, taking the total
dividend for the year to 20.4 cents per share.
Increased earnings at our villages have driven
the result, as our high-quality care offering and
unique villages continue to be in strong demand.
The investments we’re making are
paying dividends right now
Our growth will be supported by the ageing
population, ongoing development, and the
maturing of our villages. Each new village takes
about 6 or 7 years to mature after the initial
influx of capital from the first sales. That’s the
point where the village matures in its earnings
potential and becomes business as usual.
We’ve built 12 large villages since 2011, so we
have a lot of potential earnings due to come
on stream as those villages mature. When you
consider that we have another 16 villages in the
pipeline, that’s a lot of potential future earnings
yet to be realised.
The company’s
expansion into
Victoria is on track
with the purchase
of an eighth site.
$6.0
$4.5
$3.0
$1.5
$0.0
Total assets ($bn)

RYMAN HEALTHCARE
88

We aim to double underlying profits
every five years
Looking back on Ryman’s history since we listed
on the NZX, we have doubled our underlying
profits every 5 years. Our plan is to continue to
do this, at a steady pace. What we don’t want
to do is put ourselves at undue risk by going
too quickly.
Our growth is sure and steady
Demand for what we do is needs-based and
growing. We’re planning to keep on growing and
to do it really well. We’re committed to bringing
Ryman to as many communities as we can while
preserving our culture and looking after our
residents and team members.
People from all over the world tell us we need to
take our model to their country. And investors
often ask why we’re not developing faster.
Our answer is that Ryman could be a huge
multinational company, but it’d be a huge risk.
We want to get everything right so that our care
is right for residents, and we want our people to
be Ryman-trained.
It’s up to us to be the best in the market and
that’s where we want to stay. We’ve managed
to do it so far. You’re only as good as your track
record. The market is very unforgiving if you
don’t continue to deliver to high standards.
While it has been another good year for Ryman,
there is plenty of work to be done to meet the
needs of an ageing society.
“We see it as a privilege to care for older people.
Ryman was founded 34 years ago with the aim
of providing the best of care for older people,
because they deserve it.”
Dr David Kerr, Chair
$220
$165
$110
$55
$0
Underlying prot growth ($m)

22.0
16.5
11.0
5.5
0
Dividend growth (cents)
ANNUAL REPORT 2018
89

RYMAN HEALTHCARE
90

A valuable
investment for
the future
Nearly 20 years ago, Sam Williams’ mother
acted on some advice from her financial
advisor and bought shares in Ryman
Healthcare for her three children. Sam
says it was good advice, and he now looks at
those shares as a valuable investment in the
future for his two daughters who are five
and three.
“Everything I look at now is with them in
mind. Aged care is a good investment. It’s
only going to get bigger with the ageing
population we have.”
“I think Ryman has done a great service
to New Zealanders with their aged care.
Dementia, especially, is something that
could affect any of us. Two thumbs up
for Ryman for the work they’re doing in
dementia care.”
Sam describes himself as “your average
Kiwi bloke with old-school values who
enjoys putting his feet up to watch
Country Calendar”.
“I’m a proud Kiwi and I really like the way
Ryman honours and remembers people
who’ve done great things for New Zealand,
in their village names. I think Ryman
sticks to those old-school values that people
remember.”
A concierge at the Commodore Hotel in
Christchurch, Sam’s been in the hospitality
business for many years.
“The Commodore hotel is a great place to
work because it’s family owned. Everyone
works together to do their part to create
the best overall experience for our guests.
And it can be just the little things, like
remembering people’s names. I reckon if
you focus on the quality of care you provide,
doing well is a natural consequence of that.”
Sam enjoys reading Ryman’s shareholders’
newsletter and feels well informed about
what’s going on.
“You can see in the photos – staff and
residents are all smiles. They’re not fake
smiles. Those people are genuinely happy.
They’re being looked after. They’re having
fun. And that’s important to see when it’s
all ahead of you.” For Sam, getting older
used to be “a picture of doom and gloom”.
“I see it more positively now. Those
retirement years can actually be some of
your most fun years, and I think more
people now can actually look forward to
that time.”
Sam adds that the shares are doing really
well. “As a family, we can go about our busy
lives and have complete confidence that
Ryman is working for us.” ¢
ANNUAL REPORT 2018
91

Financials
RYMAN HEALTHCARE
92

Financials
ANNUAL REPORT 2018
93

FINANCIAL RESULTS
The numbers
speak for
themselves
We have a strong balance sheet with total assets
of $5.8 billion. With 16 villages in the pipeline, we have a
significant development programme stretching out ahead
in New Zealand and Victoria.
RYMAN HEALTHCARE
94

6-year summary
For the year ended 31 March 2018
201820172016201520142013
Financial
Underlying profit$m203.5 178.3 1 57.7 136.3 118.2 100.2
Reported net profit after tax$m388.2 356.7 305.4 241.9 194.8 136.7
Net operating cash flows$m349.3 322.8 315.5 234.0 238.4 222.2
Net assets$m1,940.5 1,652 .1 1 ,3 27.5 1,101.3 926.7 734.5
Interest bearing-debt to interest
bearing-debt plus equity ratio %35%
34% 29% 27% 23% 23%
Dividend per sharecents
20.4
1 7. 8 15.8 13.6 11.8 10.0
Villages
New sales of occupation rightsno.458600518545436506
Resales of occupation rightsno.825718690630541479
Total sales of occupation rightsno.1,2831,3181,2081,175977985
Land bank (to be developed)
1, 2
no.5,9525,5544,2114,2284,2082,402
Portfolio:
Aged-care bedsno.3,3673,2813,12 12,8072,5172,400
Retirement-village unitsno.6,4145,9685,3474,7924,2073,791
Total units and bedsno.9,7819,2498,4687,5996,7246,191
1
Includes retirement-village units and aged-care beds.
2
In May 2018, Ryman entered into an unconditional sale and purchase agreement for the acquisition of land at Aberfeldie,
Melbourne. This site adds an additional 120 retirement-village units and 80 residential-care beds to the land bank.
201820172016201520142013
Underlying profit$m 203.5 178.3 1 57.7 136.3 118.2 100.2
Plus unrealised gains on
retirement-village units$m 185.3 184.7 151.6 105.7 85.1 50.0
Less deferred tax movement$m (0.6) (6.3) (3.9) (0.1) (8.5) (13.5)
Reported net profit after tax$m 388.2 356.7 305.4 241.9 194.8 136.7
Underlying profit excludes deferred taxation, taxation expense, and unrealised gains on investment properties because
these items do not reflect the trading performance of the company. Underlying profit determines the dividend payout
to shareholders.
ANNUAL REPORT 2018
95

Consolidated income statement
For the year ended 31 March 2018
Notes20182017
$000$000
Care fees270,483227,391
Management fees70,08760,988
Interest received441456
Other income1,528355
Total revenue342,539289,190
Fair-value movement of investment properties7351,514324,966
Total income694,053614,156
Operating expenses1(268,040)(225,573)
Depreciation and amortisation expense2(20,580)(14,934)
Finance costs3(16,577)(10,660)
Total expenses(305,197)(251,167)
Profit before income tax388,856362,989
Income-tax expense4(640)(6,295)
Profit for the year388,216356,694
Earnings per share
Basic and diluted (cents per share) 13 7 7.6 71.3
Consolidated statement of comprehensive income
For the year ended 31 March 2018
Notes20182017
$000$000
Profit for the year388,216356,694
Items that may be reclassified subsequently to profit or loss
Fair-value movement and reclassification of interest-rate swaps14(725) 1,790
Movement in deferred tax related to interest-rate swaps14203(501)
Gains on hedge of foreign-owned subsidiary net assets142,1931,102
(Loss) on translation of foreign operations14(5,502)(1,392)
(3,831)999
Items that will not be reclassified subsequently to profit or loss
Revaluation of property, plant and equipment (unrealised)6, 14–56,513
–56,513
Other comprehensive income(3,831)5 7, 5 1 2
Total comprehensive income384,385414,206
All profit and total comprehensive income is attributable to parent company shareholders and is derived from
continuing operations.
The accompanying notes form part of these financial statements.
RYMAN HEALTHCARE
96

The accompanying notes form part of these financial statements.
Consolidated statement of changes in equity
For the year ended 31 March 2018
Notes
Issued
capital
Asset
revaluation
reserve
Interest-
rate swap
reserve
Foreign-
currency
translation
reserve
Treasury
stock
Retained
earnings
Total
equity
$000$000$000$000$000$000$000
Balance at 1 April 201633,290176,806(6,680)1,356(15,900)1,138,6531 , 3 2 7, 5 2 5
Profit and total
comprehensive income
for the year –56,5131,289(290) –356,694414,206
Treasury stock movement14 – – – –(4,640) –(4,640)
Dividends paid to
shareholders15 – – – – –(85,000)(85,000)
Closing balance at
31 March 201733,290233,319(5,391)1,066(20,540)1,410,3471,652,091
Balance at 1 April 201733,290233,319(5,391)1,066(20,540)1,410,3471,652,091
Profit and total
comprehensive income
for the year – –(522)(3,309) –388,216384,385
Treasury stock movement14 – – – – (1,957) –(1,957)
Dividends paid to
shareholders15 – – – – –(94,000)(94,000)
Closing balance at
31 March 2018 33,290 233,319(5,913)(2,243)(22,497)1,704,5631,940,519
ANNUAL REPORT 2018
97

Consolidated balance sheet
At 31 March 2018
Notes20182017
$000$000
Assets
Trade and other receivables53 57,4 8 3256,614
Advances to employees245,8364,884
Property, plant and equipment61,014,5141,013,547
Investment properties74,398,3043,661,445
Intangible assets20,7138,329
Total assets5,796,8504,944,819
Equity
Issued capital1333,29033,290
Asset revaluation reserve14233,319233,319
Interest-rate swap reserve14(5,913)(5,391)
Foreign-currency translation reserve14(2,243)1,066
Treasury stock14, 24(22,497)(20,540)
Retained earnings141,704,5631,410,347
Total equity1,940,5191,652,091
Liabilities
Trade and other payables998,308149,855
Employee entitlements1020,23716,167
Revenue in advance51,9554 4,702
Interest-rate swaps188,2127,4 8 8
Refundable accommodation deposits30,75728,473
Bank loans (secured)111,060,4938 3 7,5 2 0
Occupancy advances (non-interest bearing) 122 ,514,6832 ,1 3 7, 2 74
Deferred tax liability (net)471,68671,249
Total liabilities 3,856,3313,292,728
Total equity and liabilities5,796,8504,944,819
Net tangible assets
Basic and diluted (cents per share)13 388.1 330.4
The accompanying notes form part of these financial statements.
RYMAN HEALTHCARE
98

Consolidated statement of cash flows
For the year ended 31 March 2018
Notes20182017
$000$000
Operating activities
Receipts from residents21 875,140759,829
Interest received515476
Payments to suppliers and employees(270,231)(214,028)
Payments to residents(241,676)(212,548)
Interest paid(14,491)(10,930)
Net operating cash flows 21 349,257322,799
Investing activities
Purchase of property, plant and equipment, and intangible assets(185,304)(192,364)
Purchase of investment properties(269,936)(314,920)
Capitalised interest paid(22 ,701)(16,991)
Advances to employees(952)(1,477)
Net investing cash flows(478,893)(525,752)
Financing activities
Drawdown of bank loans (net)225,592293,554
Dividends paid(94,000)(85,000)
Purchase of treasury stock (net)(1,956)(4,640)
Net financing cash flows129,636203,914
Net increase in cash and cash equivalents –961
Cash and cash equivalents at the beginning of the year –(961)
Cash and cash equivalents at the end of the year – –
The accompanying notes form part of these financial statements.
ANNUAL REPORT 2018
99

Notes to the consolidated financial statements
For the year ended 31 March 2018
Statement of compliance
The financial statements presented are those of
Ryman Healthcare Limited (the Company), and its
subsidiaries (the Group). Ryman Healthcare Limited is
a profit-oriented entity incorporated in New Zealand
that develops, owns, and operates integrated retirement
villages, resthomes, and hospitals for the elderly within
New Zealand and Australia.
Ryman Healthcare Limited is a Financial Markets
Conduct reporting entity under the Financial Reporting
Act 2013 and the Financial Markets Conduct Act 2013,
and its financial statements comply with these Acts.
The consolidated financial statements have been
prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP). The
statements comply with New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS)
and other applicable financial-reporting standards.
The consolidated financial statements also comply with
International Financial Reporting Standards (IFRS).
Basis of preparation
Accounting policies are selected and applied in a way
that ensures the resulting financial information satisfies
the concepts of relevance and reliability, and the substance
of the underlying transactions or other events is reported.
The accounting policies set out below have been
applied in preparing the financial statements for the year
ended 31 March 2018, and the comparative information
presented in these financial statements for the year
ended 31 March 2017.
The information is presented in thousands of
New Zealand dollars.
All reference to AUD refers to Australian dollars.
Measurement base
The Group follows the accounting principles recognised
as appropriate for measuring and reporting financial
performance and financial position on a historical-cost
basis, except when:
• certain property, plant and equipment is subject to
revaluation (note 6)
• investment property is measured at fair value (note 7)
• certain financial assets and liabilities are measured
at fair value (note 18).
Critical judgements in applying
accounting policies
In applying the Group’s accounting policies, management
must make judgements, estimates, and assumptions
about the carrying value of assets and liabilities that are
not readily apparent from direct sources.
The estimates and associated assumptions are based on
historical experience and various other factors that are
reasonable under the circumstances. The results form
the basis of making the judgements. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised, if the revision affects only that period. Revisions
to accounting estimates are recognised in the period of
the revision and future periods, if the revision affects both
current and future periods.
The following accounting policies and notes contain
information about significant areas of estimation
uncertainty and critical judgements in applying
accounting policies that have the most significant effect
on the amounts recognised in the financial statements.
• Valuation of property, plant and equipment – policy (e)
and note 6
• Valuation of investment property – policy (d) and
note 7
RYMAN HEALTHCARE
100

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Summary of significant accounting policies
Significant accounting policies
The following significant accounting policies have been
adopted to prepare and present the financial statements
of the Group.
(a) Basis of consolidation – purchase method
The consolidated financial statements are prepared
by combining the financial statements of all the
entities that comprise the Group, being the Company
(the parent entity) and its subsidiaries as defined in
NZ IFRS 10 Consolidated Financial Statements.
A list of subsidiaries appears in note 22 to the
financial statements.
Consistent accounting policies are used to prepare
and present the consolidated financial statements.
All significant inter-company transactions and
balances are eliminated in full on consolidation.
The financial statements of subsidiaries are prepared
for the same reporting period as the parent company,
using consistent accounting policies.
Income and expenses for each subsidiary whose
functional currency is not New Zealand dollars are
translated at exchange rates that approximate the
rates at the actual dates of the transactions. Assets
and liabilities of such subsidiaries are translated at
exchange rates at balance date.
All resulting exchange differences are recognised in
the foreign-currency translation reserve, which is a
separate component of equity.
(b) Revenue recognition
Care fees
Care facility and retirement village service fees are
recognised on an accruals basis.
Management fees
Management fees for retirement-village units are
recognised on a straight-line basis over the period
of service, being the greater of the expected period
of tenure, or the contractual right to revenue.
The expected periods of tenure, based on historical
experience across our villages, are estimated to be
7 years for independent units and 3 to 4 years for
serviced units.
Interest received
Interest income is recognised in the income statement
as it accrues, using the effective interest method.
(c) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction, or production of qualifying assets
(assets that take a substantial period of time to get
ready for their intended use) are added to the cost of
those assets until the assets are substantially ready
for use.
All other borrowing costs are recognised in profit and
loss in the period in which they are incurred.
(d) Investment properties
Investment properties include land and buildings,
equipment and furnishings relating to retirement-
village units and community facilities, including units
and facilities under development. They are intended
to be held for the long term to earn rental income and
for capital appreciation.
Retirement-village units and community facilities are
revalued on a semi-annual basis and restated to fair
value as determined by an independent registered
valuer. Any change in fair value is taken to the income
statement. The fair value is determined using
discounted cash flow methodology.
Rental income from investment properties, being
the management fee and retirement village service
fees, is accounted for in accordance with accounting
policy (b).
(e) Property, plant and equipment
Property, plant and equipment comprises completed
care facilities, corporate assets and land, and care
facilities under development.
ANNUAL REPORT 2018
101

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Summary of significant accounting policies (continued)
All property, plant and equipment is initially recorded
at cost. Typically, these costs include the cost of land,
materials, wages, and interest incurred during the
period required to complete and prepare the asset
for its intended use.
Following initial recognition at cost, completed
care-facility land and buildings are carried at a
revalued amount, which is the fair value at the date
of the revaluation, less any subsequent accumulated
depreciation on buildings and accumulated
impairment losses.
Independent valuations are performed with sufficient
regularity to ensure that the carrying amount does
not differ materially from the asset’s fair value at the
balance-sheet date.
Any revaluation surplus is recorded in other
comprehensive income and credited to the asset-
revaluation reserve included in the equity section of
the balance sheet, unless it reverses a revaluation
decrease of the same asset previously recognised
in the income statement. In this case, the increase is
credited to the income statement to the extent of the
decrease previously charged.
Any revaluation deficit is recognised in the income
statement unless it directly offsets a previous surplus
of the same asset in the asset revaluation reserve,
in which case the revaluation deficit is recorded in
other comprehensive income.
In addition, any accumulated depreciation at the
revaluation date is eliminated against the gross
carrying amount of the asset, and the net amount
is restated to the revalued amount of the asset.
On disposal, any revaluation reserve relating to the
particular asset being sold is transferred to retained
earnings.
An item of property, plant and equipment is
derecognised on disposal or when no future economic
benefits are expected to arise from the continued use
of the asset.
Any gain or loss arising on disposal of the asset
(calculated as the difference between the net
disposal proceeds and the carrying amount of the
item) is included in the income statement in the
period the item is derecognised.
(f ) Depreciation
Depreciation is provided on all property, plant and
equipment, other than freehold land, at straight-line
(SL) rates calculated to allocate the asset’s cost or
valuation, less estimated residual value, over their
estimated useful lives, starting from the time the
assets are ready for use, as follows.
• Buildings 2% SL
• Plant and equipment 10 – 20% SL
• Furniture and fittings 20% SL
• Motor vehicles 20% SL
The estimated useful lives residual value and
depreciation method are reviewed at the end of
each reporting period, with the effect of any changes
in estimate accounted for on a prospective basis.
No depreciation is provided for investment properties.
(g) Impairment of assets
At each interim and annual balance-sheet date, the
Group reviews the carrying amounts of its assets to
determine whether there is any indication that those
assets have suffered an impairment loss. If such
an indication exists, the recoverable amount of the
asset is estimated to determine the extent of any
impairment loss.
Where the asset does not generate cash flows
that are independent from other assets, the Group
estimates the recoverable amount of the cash-
generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less
costs to sell and value in use. In assessing value in
use, the estimated future cash flows are discounted
to their present value using a discount rate that
reflects current market assessments of the time
value of money and the risks specific to the asset for
which the estimates of future cash flows have not
been adjusted.
RYMAN HEALTHCARE
102

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Summary of significant accounting policies (continued)
If the recoverable amount of an asset (cash-
generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset
(cash-generating unit) is reduced to its recoverable
amount.
An impairment loss is immediately recognised as
an expense, unless the asset is carried at fair value.
In this case, the impairment loss is treated as a
revaluation decrease.
Where an impairment loss subsequently reverses, the
carrying amount of the asset (cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but only to the extent that the increased
carrying amount does not exceed the carrying
amount that would have been determined had
no impairment loss been recognised for the asset
(cash-generating unit) in prior years.
A reversal of an impairment loss is immediately
recognised as income, unless the asset is carried at
fair value. In this case, the reversal of the impairment
loss is treated as a revaluation increase.
(h) Operating leases
Leases under which all the risks and benefits of
ownership are effectively retained by the lessor
are classified as operating leases. Operating lease
payments are charged to the income statement
on a straight-line basis over the periods of
expected benefit.
(i) Revenue in advance
Revenue in advance represents those amounts by
which the management fees over the contractual
period exceed recognition of the management fee
based on expected tenure.
( j) Financial instruments
Financial assets and financial liabilities are
recognised on the Group’s balance sheet when the
Group becomes party to the contractual provisions
of the instrument.
Cash and cash equivalents
Cash and cash equivalents comprise cash on
hand, cash in banks and on-demand deposits, and
other short-term, highly liquid investments readily
convertible to a known amount of cash and subject
to an insignificant risk of changes in value. This
includes all call borrowing, such as bank overdrafts,
used by the Group as part of its day-to-day
cash management.
Trade and other receivables
Trade receivables are measured at amortised cost,
less any impairment. This is equivalent to fair value,
being the receivable face (or nominal) value, less
appropriate allowances for estimated irrecoverable
amounts (recognised in the income statement when
objective evidence shows the receivable is impaired).
The allowance recognised is measured as the
difference between the asset’s carrying amount
and the present value of estimated future cash flows
discounted at the effective interest rate calculated
at initial recognition. Advances to employees are on
the same basis.
Occupancy advances
Occupation agreements confer to residents the right
of occupancy of the retirement-village unit for life, or
until the resident terminates the agreement.
Amounts payable under occupation agreements
(occupancy advances) are non-interest bearing
and recorded as a liability in the balance sheet,
net of management fees receivable. The resident-
occupancy advance is initially recognised at fair value
and later at amortised cost.
As the resident may terminate their occupancy
with limited notice, and the occupancy advance is
not interest bearing, the occupancy advance has
demand features and so is carried at face value,
which is the original advance received.
The advance, net of management fee, is repayable
following both termination of the occupation
agreement and settlement of a new occupancy
advance for the same retirement-village unit.
ANNUAL REPORT ffifiā(
103

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Summary of significant accounting policies (continued)
Refundable accommodation deposits
Refundable accommodation deposits relate to
deposits held on behalf of residents who reside in
rooms in the care centre in Australia. Refundable
accommodation deposits confer to residents the
right of occupancy of the room for life, or until the
resident terminates the agreement.
Amounts payable under refundable accommodation
deposits are non-interest bearing and recorded as a
liability in the balance sheet.
As the resident may terminate their occupancy with
limited notice, and the refundable accommodation
deposit is non-interest bearing, the refundable
accommodation deposit has demand features
and so is carried at face value, which is the original
deposit received.
Trade and other payables
Trade and other payables are measured at amortised
cost. This is equivalent to the face (or nominal) value
of payables which is assumed to approximate their
fair value.
Interest-bearing loans and borrowings
Loans and borrowings are initially recorded at fair
value, less directly attributable transaction costs.
After initial recognition, loans and borrowings are
measured at amortised cost, with any differences
from the initial amount recognised and the redemption
value being recognised in profit and loss using the
effective interest-rate method.
In practice, this means that Group interest-bearing
borrowings are recognised at face (or nominal) value
due to the repayment and cost of borrowing terms
associated with them.
Interest-rate swaps
The Group enters into interest-rate swaps to manage
cash-flow interest-rate risk.
Interest-rate swaps are initially recognised at fair
value on the date a contract is entered into and
remeasured to their fair value at each reporting date.
When Group-swap arrangements meet the
requirements of cash-flow hedge accounting,
changes in the fair value of interest-rate swaps are
recognised in other comprehensive income, and
accumulated as a separate component of equity.
Amounts deferred in equity are recycled in profit
or loss in the periods when the hedged item is
recognised in profit.
Fair-value estimation
The fair value of financial assets and financial
liabilities must be estimated for recognition and
measurement, or for disclosure purposes.
The face (or nominal) value less estimated credit
adjustments of trade receivables and payables are
assumed to approximate their fair values.
Hedges of a net investment
Hedges of a net investment in a foreign operation,
including a hedge of a monetary item that is
accounted for as part of the net investment, are
accounted for in two ways. Gains or losses relating
to the effective portion of the hedge are recognised
in other comprehensive income. Any gains or losses
relating to the ineffective portion of the hedge are
recognised in profit or loss.
(k) Employee entitlements
A liability for benefits accruing to employees for
wages and salaries, annual leave, long-service leave,
and sick leave is accrued and recognised in the
balance sheet when it is probable that settlement will
be required and the liabilities are capable of being
measured reliably. The liability is equal to the present
value of the estimated future cash outflows as a result
of employee services provided at balance date.
(l) Taxation
Income tax on the profit or loss for the year
comprises current and deferred tax. Income tax is
recognised in the income statement except to the
extent that it relates to items recognised in other
comprehensive income or directly in equity. In this
case, it is recognised in other comprehensive income
or in equity.
RYMAN HEALTHCARE
104

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Summary of significant accounting policies (continued)
Current tax
Current tax is the expected tax payable on the
taxable income for the year, using tax rates enacted
or substantively enacted at the balance-sheet date,
and any adjustment to tax payable for previous
years. Current tax for current and prior periods is
recognised as a liability (or asset) to the extent that
it is unpaid (or refundable).
Deferred tax
Deferred tax is provided using the comprehensive
balance-sheet liability method. This method provides
for temporary differences between the carrying
amount of assets and liabilities for financial reporting
purposes and the amounts used for taxation.
Deferred tax is not provided for in non-depreciating
assets included within property, plant and equipment,
and investment properties.
The amount of deferred tax provided is based on
the way the carrying amount of assets and liabilities
are expected to be realised and settled. The tax
rates used are those expected to apply in the
period of settlement, based on tax rates enacted
or substantively enacted.
A deferred tax asset is recognised only to the extent
that it is probable that future taxable profits will be
available, and against which the asset can be used.
Deferred tax assets are reduced to the extent that it
is no longer probable that the related tax benefit will
be realised.
Deferred tax assets and liabilities are offset when
they relate to income taxes levied by the same
taxation authority and the Group intends to settle
current tax assets and liabilities on a net basis.
(m) Treasury stock
Shares purchased on market under the senior
management share scheme are treated as treasury
stock on acquisition at cost. On vesting to the
employee, treasury stock shares are credited to
equity and an employee advance is recorded initially
at fair value and later at amortised cost.
Any loss on disposal by the Company (for example,
when the employee elects not to take full responsibility
for the loan, or leaves before the end of the 3-year
restrictive period) accrues to the Company and is
taken directly against equity.
The directors estimate the fair value of these
employee advances when purchasing the shares
on market. The fair value is then spread over the
employee’s 3-year vesting period and taken to the
income statement.
(n) Consumables
Purchases of supplies by the villages are expensed
in the period they are incurred.
(o) Maintenance costs
Maintenance costs are accounted for in the period
they are incurred.
(p) GST
Revenues, expenses, assets, and liabilities are
recognised net of the amount of Goods and Services
Tax (GST) except when:
• the GST incurred on a purchase of goods and
services is not recoverable from the taxation
authority
• the GST is recognised as part of the cost of
acquisition of the asset or as part of the expense
item as applicable
• receivables and payables are stated with the
amount of GST included.
The net amount of GST recoverable from, or payable
to, the taxation authority is included as part of the
receivables or payables in the balance sheet.
Commitments and contingencies are disclosed net
of the amount of GST recoverable from, or payable
to, the taxation authority.
ANNUAL REPORT 2018
105

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Summary of significant accounting policies (continued)
(q) Statement of cash flows
The statement of cash flows is prepared exclusive of
GST. This is consistent with the method used in the
income statement.
Cash and cash equivalents comprise:
• cash on hand and demand deposits
• other short-term, highly liquid investments.
Short-term, highly liquid investments are investments
that are readily convertible to a known amount
of cash and are subject to an insignificant risk of
changes in value. These investments include all
call borrowing such as bank overdrafts used by the
Group as part of their day-to-day cash management.
Operating activities represent all transactions and
other events that are not investing or financing
activities, and includes receipts and repayments
of occupancy advances.
Investing activities are those activities relating to
the acquisition and disposal of investments and
any other property, plant and equipment, or
investment properties.
Financing activities are those activities relating to
changes in the equity and debt capital structure of
the Group and those activities relating to the cost
of servicing the Company’s equity capital.
All cash funds at balance date are applied against
term loans as per the bank facility.
(r) Foreign currency translation
Functional and presentation currency
Both the functional and presentation currency of
Ryman Healthcare Limited and its New Zealand
subsidiaries is New Zealand dollars ($). The functional
currency for its Australian subsidiaries is Australian
dollars (AUD$).
Transactions and balances
Transactions in foreign currencies are initially
recorded in the functional currency by applying the
exchange-rates ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange
ruling at the balance-sheet date.
All exchange differences on foreign-currency
borrowings relating to the following two items are
recognised in other comprehensive income and
accumulated in reserves.
• The effective portion of a hedge of a net
investment in foreign operations
• Differences arising on translation of a foreign
operation
Non-monetary items that are measured at historical
cost in a foreign currency are translated using the
exchange rate at the date of the initial transaction.
Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated
at the rates prevailing at the date when the fair value
was determined.
(s) Intangible assets
Expenditure on research activities is recognised as
an expense in the period in which it is incurred.
An internally generated intangible asset arising from
development (or from the development phase of
an internal project) is only recognised if all of the
following criteria have been demonstrated.
• It is technically feasible to complete the intangible
asset so that it is available for use or sale.
• The Group intends to complete the intangible asset
and use or sell it.
• The intangible asset can be used or sold.
• Probable future economic benefits of the intangible
asset can be generated.
RYMAN HEALTHCARE
106

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Summary of significant accounting policies (continued)
• Adequate technical, financial, and other resources
are available to complete the development and to
use or sell the intangible asset.
• The expenditure attributable to the intangible asset
can be measured during its development.
The amount initially recognised for internally generated
intangible assets is the sum of the expenditure
incurred from the date when the intangible asset
first meets the recognition criteria listed above.
Where no internally generated intangible asset can be
recognised, development expenditure is recognised
in profit or loss in the period in which it is incurred.
After initial recognition, internally generated intangible
assets are reported at cost less accumulated
amortisation and accumulated impairment losses,
on the same basis as intangible assets that are
acquired separately.
(t) Adopting new and revised standards
and interpretations
In the current year, the Group adopted all mandatory
new and amended standards and interpretations.
None of the new and amended standards and
interpretations had a material impact on the amounts
recognised in these financial statements.
NZ IFRS Standards and Interpretations that have
recently been issued or amended but are not yet
effective and have not been adopted by the Group
for the annual report period ending 31 March 2018
are outlined below.
NZ IFRS 15 Revenue from Contracts from
Customers – effective for the Group for the
period beginning 1 April 2018
The new standard provides detailed revenue
recognition guidance.
The Group has reviewed the impact of NZ IFRS 15
and has identified care fees and management fees
as the two main revenue streams that will be
impacted by the new standard.
The recognition of revenue from care fees is
specifically linked to the day the service is delivered.
We assessed that under the new standard revenue
will be recognised with this service date, consistent
with how we currently recognise this revenue.
As detailed in policy (b), management fees for
retirement-village units are recognised on a straight-
line basis over the period of service. The Group’s
initial assessment of NZ IFRS 15 is that the Group
will continue to recognise management fees on a
straight-line basis.
NZ IFRS 9 Financial Instruments – effective for
the Group for the period beginning 1 April 2018
NZ IFRS 9 Financial Instruments addresses the
classification and measurement of financial assets
and liabilities, the impairment of financial assets, and
hedge accounting.
The Group has reviewed NZ IFRS 9 and has concluded
that applying the standard will not have a significant
impact on the financial statements.
NZ IFRS 16 Leases – effective for the Group
for the period beginning 1 April 2019
The new standard introduces a single lessee
accounting model that brings all leases on balance
sheet except low-value or short-term leases.
The Group is currently reviewing the impact of
NZ IFRS 16. The assessment to date has identified
operating leases that are currently off balance sheet
that will be brought on balance sheet under NZ IFRS
16 through the recognition of right-of-use assets and
associated liabilities. This recognition will result in
lease expenses being classified as finance cost and
amortisation, as opposed to only operating costs.
Based on this assessment the Group does not
expect there to be any material impact on the
financial statements from adopting this standard.
Many of the Group’s leases have been identified as
short-term or leases of low-value assets, and will
qualify for an exemption from the new standard.
The Group will not be early adopting NZ IFRS 16.
ANNUAL REPORT ffifiā(
107

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
1. Operating expenses
20182017
$000$000
Employee costs (see below)179,555148,294
Property-related expenses32,25128,951
Other operating costs (see below)56,23448,328
Total operating expenses268,040225,573
Employee costs and other operating costs include:
Post-employment benefits (KiwiSaver/Superannuation)4,521 3,853
Auditor’s remuneration to Deloitte Limited comprises:
• Audit of financial statements186185
• Australia aged-care reporting66
• IT and cyber security assurance10 –
Directors’ fees (note 17)828867
Donations^315132
Lease and rental payments1,5771,196
^ No donations have been made to any political party (2017: $Nil)
2. Depreciation and amortisation
20182017
$000$000
Depreciation
• Buildings6,5975,309
• Plant and equipment5,7 763,870
• Furniture and fittings5, 8744,584
• Motor vehicles1,020957
19,26714,720
Amortisation
• Software1,313214
1,313214
Total20,58014,934
RYMAN HEALTHCARE
108

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
3. Finance costs
20182017
$000$000
Total interest paid on bank loans36,42725,571
Release of interest-rate swap reserve2,8512,080
Amount of interest capitalised(22 ,701)(16,991)
Net interest expense on bank loans16,57710,660
4. Income tax
20182017
$000$000
(a) Income tax recognised in income statement
Tax expense comprises:
Current tax expense – –
Deferred tax expense 6406,295
Total income-tax expense6406,295
The accepted income-tax expense on pre-tax accounting profit from operations reconciles to the income-tax expense
in the financial statements as follows.
Profit before income-tax expense388,856362,989
Income-tax expense calculated at 28%108,880101,637
Tax effect of:
Non-taxable income(98,423)(90,990)
Other(9,817)(4,352)
Total tax expense6406,295
Non-taxable income principally arises from the fair-value movement of investment property.
The tax rate used in the above reconciliation is the corporate tax rate of 28% (2017: 28%) payable by New Zealand
corporate entities on taxable profits under New Zealand tax law.
Total Group tax losses available in New Zealand amounted to $114.9 million (2017: $46.8 million). Recognition of the
deferred tax asset is based on expected taxable earnings in future periods. There are no unrecognised tax losses
in New Zealand (2017: $Nil).
Australian tax losses have not been recognised in the current year. Total tax losses available in Australia amounted
to $35.2 million (2017: $26.6 million).

ANNUAL REPORT 2018
109

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
4. Income tax (continued)
20182017
%$000%$000
Reconciliation of effective tax rate
Profit before tax 388,856362,989
Income tax using the corporate tax rate28.0%108,880 28.0%101,637
Non-taxable income(25.3)%(98,423) (25.1)%(90,990)
Other(2.5)%(9,817) (1.2)%(4,352)
Total income-tax expense0.2%640 1.7 %6,295
(b) Taxable and deductible temporary differences arise from the following items.
Opening
balance
Recognised
in income
Recognised
in equity
Closing
balance
$000$000$000$000
2018
Property, plant and equipment(46,958)(5,507) –(52,465)
Investment properties(40,740)(3,930) –(4 4,670)
Deferred management-fee revenue in advance(1,833)(10,911) –(12,744)
Interest-rate swap2,097 –2032,300
Other3,083627 –3,710
Tax value of loss carry-forwards recognised13,10219,081 –32,183
Total deferred taxation(71,249)(640)203(71,686)
2017
Property, plant and equipment(45,998)(960) –(46,958)
Investment properties(34,339)(6,401) –(40,740)
Deferred management-fee revenue in advance5,439( 7, 27 2 ) –(1,833)
Interest-rate swap2,598 –(501)2,097
Other2,827256 –3,083
Tax value of loss carry-forwards recognised5,0208,082 –13,102
Total deferred taxation(64,453)(6,295)(501)(71,249)
RYMAN HEALTHCARE
110

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
4. Income tax (continued)
(c) Imputation credit memorandum account
20182017
$000$000
Closing balance10896
Imputation credits available directly and indirectly to shareholders
of the parent company, through:
• parent company – –
• subsidiaries10896
Closing balance10896

5. Trade and other receivables
20182017
$000$000
Trade debtors 349,694251,722
Other receivables7,78 94,892
Total trade and other receivables3 5 7, 4 8 3256,614
Debtors are non-interest bearing, although the Group has the right to charge interest on overdue settlements of occupancy
advances or overdue care fees. Debtors principally comprise amounts due for occupancy advances and care fees.
Occupancy advances are payable by residents on occupation of a retirement-village unit. Care fees are received from
residents (payable 4-weekly in advance) and various government agencies. Government-agency payment terms vary,
but are typically paid fortnightly in arrears for care services provided to residents.
There is no significant concentration of credit risk as trade debtors are either individual residents or government agencies.
No allowance has been made for doubtful debts in the current period (2017: $Nil).
ANNUAL REPORT 2018
111

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
6. Property, plant and equipment
Freehold
land at
valuation
Buildings
at
valuation
Property
under
development
at cost
Plant and
equipment
at cost
Furniture
and
fittings
at cost
Motor
vehicles
at costTotal
$000$000$000$000$000$000$000
2018
Gross carrying amount
Balance at 1 April 2017268,837251,776447,68950,28135,1319,2141,062,928
Additions1,21512,498130,2177,4 8 82,085854154,357
Net foreign-currency exchange
difference(837)(324)(4,7 75)(26)(15)(3)(5,980)
Transfer from property under
development22 ,44574,393(111,946)9,0356,073 – –
Transfer from property under
development to investment property – –(125,034)

– – –(125,034)
Disposals –(3,199) – – – –(3,199)
Balance at 31 March 2018291,660335,144336,1516 6,7 7 843,27410,0651,083,072
Accumulated depreciation
Balance at 1 April 2017 –(155) –(17,995)( 2 6 , 3 74 )(4,857)(49,381)
Current-year depreciation –(6,597) –(5,7 76)(5,874)(1,020)(19,267)
Disposals –90 – – – –90
Balance at 31 March 2018 –(6,662) –(23,771)(32,248)(5,877)(68,558)
Total book value291,660328,482336,15143,00711,0264,1881,014,514
2017
Gross carrying amount
Balance at 1 April 2016212,164253,655262,86133,96732,8288,117803,592
Additions24013,764214,97716,3302,3181,09924 8,728
Net foreign-currency exchange
difference(80)(162)(1,249)(16)(15)(2)(1,524)
Transfer from property under
development – – – – – – –
Transfer from property under
development to investment property –(1,080)(28,900) – – –(29,980)
Revaluation56,513(14,401) – – – –42,112
Balance at 31 March 2017268,837251,776447,68950,28135,1319,2141,062,928
Accumulated depreciation
Balance at 1 April 2016 –(9,247) –(14,125)(21,790)(3,900)(49,062)
Current-year depreciation –(5,309) –(3,870)(4,584)(957)(14,720)
Revaluation –14,401 – – – –14,401
Balance at 31 March 2017 –(155) –(17,995)(2 6, 3 74 )(4,857)(49,381)
Total book value268,837251,621447,68932,2868 ,7574,3571,013,547
RYMAN HEALTHCARE
112

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
6. Property, plant and equipment (continued)
All completed resthomes and hospitals included within the definition of freehold land and buildings were revalued to fair
value based on an independent valuation report prepared by registered valuers, CBRE Limited, as at 31 March 2017 in
accordance with NZ IFRS 13. These revaluations are undertaken every 3 years, unless there is sustained market evidence
of a significant change in fair value.
To estimate and determine fair value, the valuer made key assumptions that include capitalisation of earnings (using
capitalisation rates ranging from 11 percent to 15 percent), together with observed transactional evidence of the market
value per care bed (ranging from $75,000 to $140,000 per care bed).
As the fair value of land and buildings is determined using inputs that are unobservable, the Group has categorised
property, plant and equipment as Level 3 under the fair-value hierarchy in line with NZ IFRS 13 – Fair Value Measurements.
The significant unobservable inputs used in the fair-value measurement of the Group’s freehold land and buildings are the
capitalisation rate and the market value per care bed.
A significant decrease in the capitalisation rate would result in a significantly higher fair-value measurement. Conversely,
a significant increase in the capitalisation rate would result in a significantly lower fair-value measurement.
A significant increase in the market value per care bed would result in a significantly higher fair-value measurement.
Conversely, a significant decrease in the market value per care bed would result in a significantly lower fair-value
measurement.
Property under development includes land held pending the development of a retirement village amounting to
$258.7 million (2017: $337.1 million) and is valued at cost.
Interest for the Group of $22.7 million (2017: $17.0 million) has been capitalised during the period of construction in the
current year. The weighted-average capitalisation rate on funds borrowed is 3.64 percent per annum (2017: 3.81 percent
per annum).
The assets shown at cost are care-facility assets under development, plant and equipment, furniture and fittings, and
motor vehicles, plus additions since the last valuation.
The carrying amount at which each revalued class of property, plant and equipment would have been carried had the
assets been measured under historical cost is shown below.
Freehold landBuildingsTotal
$000$000$000
Carrying amount (at cost)
Carrying amount at 31 March 201875,380312,216387,596
Carrying amount (at cost)
Carrying amount at 31 March 2017
52,557235,355287,912
ANNUAL REPORT 2018
113

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
7. Investment properties
20182017
$000$000
At fair value
Balance at beginning of financial year3,661,4452,996,305
Additions391,221342,869
Fair-value movement:
Realised fair-value movement:
• new retirement-village units58,95562,959
• existing retirement-village units107,2337 7, 2 8 6
166,188140,245
Unrealised fair-value movement185,326184,721
351,514324,966
Net foreign-currency exchange differences(5,876)(2 ,695)
Net movement for the year736,859665,140
Balance at end of financial year4,398,3043,661,445
The realised fair-value movement arises from the sale and resale of occupancy advances to residents. Investment
properties are not depreciated and are fair valued. As the fair value of investment property is determined using inputs
that are unobservable, the Group has categorised investment property as Level 3 under the fair-value hierarchy in line
with NZ IFRS 13 – Fair Value Measurements.
The carrying value of completed investment property is the fair value as determined by an independent valuation report
prepared by registered valuers CBRE Limited, at 31 March 2018. This report combines discounted future cash flows and
occupancy advances received from residents for retirement-village units that are complete or nearing completion, for
which there is an unconditional agreement to occupy.
The valuer used significant assumptions that include long-term house-price inflation (ranging from 0.5 percent to
3.5 percent nominal) (2017: 1 percent to 3 percent) and discount rate (ranging from 12 percent to 16 percent) (2017:
12 percent to 16 percent). Other unobservable inputs used in the fair-value measurement of the Group’s investment
property portfolio include the average age of residents and the occupancy period.
A significant decrease in the discount rate or the unit occupancy period would result in a significantly higher fair-value
measurement. Conversely, a significant increase in the discount rate or the unit occupancy period would result in a
significantly lower fair-value measurement.
A significant increase in the average age of entry of residents or the long-term nominal house-price inflation rate would
result in a significantly higher fair-value measurement. Conversely, a significant decrease in the average age of entry of
residents or the long-term nominal house-price inflation rate would result in a significantly lower fair-value measurement.
Investment property includes investment property work in progress of $252.9 million (2017: $186.5 million), which has been
valued at cost.
The CBRE valuation also includes within its forecast cash flows the Group’s expected costs relating to rebuild works at
Malvina Major. The estimate of the gross cash outflows included for remediation works is $17.5m over an 18-month period.
The estimates are based on currently available information.
RYMAN HEALTHCARE
114

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
7. Investment properties (continued)
Operating expenses
Direct operating expenses arising from investment property that generated income from management fees during the
period amounted to $4.8 million (2017: $4.2 million). All investment property generated income from management fees
during the period for the Group, except for investment property work in progress.
Security
Residents make interest-free advances (occupancy advances) to the retirement villages in exchange for the right of
occupancy to retirement-village units. Under the terms of the occupancy agreement, the resident receives a unit title for
life and a first mortgage over the residual interest for security purposes, or a first mortgage is held over the individual title
by the statutory supervisor.
8. Bank overdraft
The bank overdraft facilities are secured by a general security agreement and mortgages over the freehold land
and buildings of the Group in the same manner as the bank loans (note 11). The interest rate on all overdraft facilities
at 31 March 2018 was 10.05% (2017: 10.05%).
9. Trade and other payables
20182017
$000$000
Trade payables48,66345,467
Other payables49,645104,388
Total trade and other payables98,308149,855
Trade payables are typically paid within 30 days of the invoice date or on the 20th of the month following the invoice date.
Other payables at 31 March 2018 includes $45.5 million (2017: $95.6 million) for the purchase of land.
10. Employee entitlements
20182017
$000$000
Holiday-pay accrual and other benefits20,23716,167
ANNUAL REPORT 2018
115

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
11. Borrowings
20182017
$000$000
Bank loans (secured) – NZD880,00774 4 ,6 1 4
Bank loans (secured) – AUD in NZD180,48692,906
Total bank loans (secured) 1,060,4938 3 7, 5 2 0
Less than 1 year14,0071 7,6 1 4
Within 1 – 5 years1,046,486819,906
Average interest rates – NZD 3.72% 3.40%
Average interest rates – AUD 3.80% 3.35%
The bank loans are secured by a general security agreement over the parent and subsidiary companies and supported
by first mortgages over the freehold land and buildings (excluding retirement-village unit titles provided as security to
residents – note 7).
The subsidiary companies listed at note 22 have all provided guarantees for the Group’s secured loans as parties to the
general security agreement.
The average interest rates disclosed above exclude the impact of interest-rate swap agreements described in note 18.
Full payment terms are disclosed in note 18.
12. Occupancy advances (non-interest bearing)
20182017
$000$000
Gross occupancy advances (see below)2,836,3142,407,644
Less management fees and resident loans(321,631)(270,370)
Closing balance2,514,6832 ,1 3 7, 2 74
Movement in gross occupancy advances
Opening balance2,407,6442,081,386
Plus net increases in occupancy advances:
• new retirement-village units307,282263,282
• existing retirement-village units. 107,2337 7, 2 8 6
Net foreign-currency exchange differences(4,457)(2,189)
Increase/(decrease) in occupancy advance receivables18,612(12,121)
Closing balance2,836,3142,407,644
Gross occupancy advances are non-interest bearing.
RYMAN HEALTHCARE
116

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
13. Share capital
Issued and paid-up capital consists of 500,000,000 fully paid ordinary shares (2017: 500,000,000) less treasury stock
of 2,477,076 shares (2017: 2,320,851 shares) (note 24). All shares rank equally in all respects.
Basic and diluted earnings and net tangible assets per share have been calculated on the basis of 500,000,000 ordinary
shares (2017: 500,000,000 shares). Net tangible assets are represented by net equity.
Shares purchased on market under the senior management share scheme (note 24) are treated as treasury stock until
vesting to the employee.
14. Reserves
20182017
$000$000
Asset revaluation reserve
Opening balance233,319176,806
Revaluation –56,513
Closing balance233,319233,319
Interest-rate swap reserve
Opening balance(5,391)(6,680)
Valuation of interest-rate swap(3,576)(290)
Released to income statement2,8512,080
Deferred tax movement on interest-rate swap reserve203(501)
Closing balance(5,913)(5,391)
Treasury stock
Opening balance(20,540)(15,900)
Acquisitions(9,420)(9,421)
Vesting /forfeiture of shares7,4634,781
Closing balance(22,497)(20,540)
Foreign currency translation reserve
Opening balance1,0661,356
Gain on hedge of foreign-owned subsidiary net assets2,1931,102
(Loss) on translation of net assets of foreign-owned subsidiary(5,502)(1,392)
Closing balance(2,243)1,066
Retained earnings
Opening balance1,410,3471,138,653
Net profit attributable to shareholders388,216356,694
Dividends paid(94,000)(85,000)
Closing balance1,704,5631,410,347

ANNUAL REPORT 2018
117

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
15. Dividends
2018201820172017
Cents
per share
Total
$000
Cents
per share
Total
$000
Recognised amounts
Final dividend paid – prior year 9.3046,500 8.5042,500
Interim dividend paid – current year 9.5047,500 8.5042,500
94,00085,000
Unrecognised amounts
Final dividend – current year 10.9054,500 9.3046,500
Full-year dividend – current year 20.40102,000 17.8089,000
16. Related-party transactions
Parent company
The parent entity in the Group is Ryman Healthcare Limited.
Equity interests in related parties
Details of the percentage of ordinary shares held in subsidiaries are disclosed in note 22.
Salaries and consulting fees paid to directors
Payments to directors are disclosed in note 17.
Transactions with companies associated to directors
20182017
$000$000
Rental expense 1,089875
In August 2012, Ryman Healthcare Limited entered into a new office lease agreement with Airport Business Park
Christchurch Limited (the Airport Business Park).
Kevin Hickman has a significant financial interest in this agreement through a trust that is a shareholder of the Airport
Business Park. Mr Hickman is also a director of the Airport Business Park.
Key terms of the agreement have been amended effective from 1 August 2017 with rental of $970,087 per annum
(excluding GST) for the remainder of the 8-year term ending July 2020, with a 2-year right of renewal (2017: $985,730
for 8 years, with a 2-year right of renewal). Extra car park spaces are additional to this agreement.
Warren Bell is a trustee of certain Airport Business Park shareholders, but has no personal financial interest.
RYMAN HEALTHCARE
118

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
17. Key management personnel compensation
20182017
$000$000
Compensation
Short-term employee benefits (senior management team)4,4953,895
Salary to managing director (resigned June 2017)8441,116
Directors’ fees 828867
Total key management personnel and directors’ compensation 6 ,1 6 75,878
Key management personnel are the senior management team of the Group and include the chief executive and nine
senior management team members at 31 March 2018 (2017: 10 excluding the managing director). In April 2018, the senior
management team was restructured. This restructure created the senior executive team and reduced the number of
members in the senior leadership group to seven (from 10). The short-term employee benefits detailed above are those
of the 10 members of the senior management team in place at 31 March 2018.
In addition, NZ IAS 24 Related Party Disclosures requires directors’ fees to be included within key management personnel
compensation. All directors are non-executive and are not involved in the day-to-day operations of the Group (2017: all
directors except the managing director). Directors’ fees above exclude remuneration paid to the managing director in
2017 and 2018.
Post-employment benefits (KiwiSaver/Superannuation) employer contributions included in short-term employee benefits
(senior management team) above is $110,881 and included in the salary to the managing director is $62,909 (2017: $94,521
and included in the salary to the managing director in 2017: $32,513).
In addition, the Company provides certain senior employees (2017: including the managing director) with limited recourse
loans on an interest-free basis to support employees’ participation in the Company share scheme (note 24).
Simon Challies, the managing director, resigned with effect from 30 June 2017. The salary and bonuses paid to the outgoing
managing director during the period to 30 June 2017 totalled $0.84 million. This was made up of salary $0.19 million, annual
leave $0.26 million, short-term incentives $0.33 million, and KiwiSaver $0.06 million. In addition to the compensation
detailed above, Simon Challies, following his resignation, received additional payments totalling $1.32 million including in his
role as an advisor to the board.
ANNUAL REPORT 2018
119

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
18. Financial instruments
The financial instruments consist of cash and cash equivalents, trade and other receivables, trade and other payables,
occupancy advances, refundable accommodation deposits, employee advances, loans, overdrafts, and interest-rate swaps.
Categories of financial instruments
20182017
$000$000
Financial assets
Loans and receivables363,319261,498
363,319261,498
Financial liabilities
Amortised cost3,704,2413,153,122
Derivative instruments in designated hedge accounting relationships
(interest-rate swaps)8,2127,4 8 8
3,712,4533,160,610
(a) Credit risk management
Credit risk is the risk of the failure of a debtor or counterparty to honour its contractual obligation resulting in financial
loss to the Group.
Financial assets, which potentially subject the Group to credit risk, consist principally of cash and cash equivalents,
trade and other receivables, and advances to employees. The maximum credit risk at 31 March 2018 is the fair value
of these assets. The Group’s cash equivalents are placed with high-credit, quality financial institutions. The Group does
not require collateral from its debtors.
The directors consider the Group’s exposure to any concentration of credit risk to be minimal, given that (typically):
• the occupation of a retirement-village unit does not take place until an occupation advance has been received
• care fees are payable 4-weekly in advance when due from residents
• care fees not due from residents are paid by government agencies.
The total credit risk to the Group at 31 March 2018 was $363.3 million (2017: $261.5 million) and there were no material
overdue debtors at 31 March 2018 (2017: $Nil). The composition of financial assets is shown in the table below.
20182017
$000$000
Trade and other receivables3 57,4 8 3256,614
Advances to employees5,8364,884
363,319261,498
RYMAN HEALTHCARE
120

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
(b) Interest-rate risk
The interest rate applicable to the bank overdraft is variable. The interest rates applicable to the bank loans are
reviewed at each 3-monthly rollover. The Group seeks to obtain the most competitive interest rate at all times.
The Group has entered into an interest-rate swap agreement to provide an effective cash-flow hedge against floating
interest-rate variability on a defined portion of core Group debt.
At 31 March 2018, the Group had several interest-rate swaps in place, which are set out in the table below. The agreement
effectively changes the Group’s interest-rate exposure on the principal of $120.0 million (2017: $120.0 million) from a
floating rate to a fixed rate of 4.26% (2017: 4.32%).
The fair value of the swaps at 31 March 2018 was a liability of $8.2 million (2017: liability of $7.5 million). The interest-rate
swaps cover notional debt amounts for a term of 5 years at a composite interest rate of 4.26% (2017: 4.32%).
No interest-rate swaps have been taken out for the Australian dollar borrowings.
The balance of the interest-rate swap reserve is expected to be released to the income statement over the maturity
profile of the underlying debt as detailed in the table below. At the end of the reporting period, the fair value of interest-
rate swaps is determined by discounting the future cash flows using the yield curves at the end of the reporting period
and the credit risk inherent in the contract.
The notional amortising principal amounts and remaining terms of interest-rate swap contracts outstanding at 31 March
are shown below.
Cash-flow hedges
Average contracted fixed-interest rateNotional principal amount
2018201720182017
%%$000$000
Outstanding
Less than 1 year 4.26% 4.32%120,000120,000
1 to 2 years 4.26% 4.32%110,000117,500
2 to 3 years 4.26% 4.32%110,000110,000
3 to 4 years 4.26% 4.32%90,000105,000
4 to 5 years 4.26% 4.32%90,00090,000

18. Financial instruments (continued)
ANNUAL REPORT 2018
121

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Without incurring
unacceptable losses or risking reputational damage, the Group manages liquidity to ensure that it has sufficient
liquidity to meet its liabilities when due. This includes under both normal and stressed conditions.
The Group manages the liquidity risk on occupancy advances through the contractual requirements in the
occupation agreement.
Following termination of the agreement, in New Zealand the occupancy advance is repaid at the earlier of:
• receipt of the new occupancy advance from the incoming resident
• at the end of 3 years.
Following termination of the agreement, in Australia the occupancy advance is repaid at the earlier of:
• 14 days after a new resident takes up residence
• receipt of the new occupancy advance from the incoming resident
• at the end of 6 months.
Ultimate responsibility for liquidity risk management rests with the directors, who have built an appropriate liquidity
risk management framework for the management of the Group’s short, medium, and long-term funding and liquidity
management requirements.
The Group manages liquidity risk by maintaining adequate reserves, banking facilities, and reserve borrowing facilities,
and by regularly monitoring forecast and actual cash flows and the maturity profiles of financial assets and liabilities.
At balance date, the Group had $239.5 million (2017: $165.3 million) of undrawn facilities at its disposal to further
reduce liquidity risk.
Maturity profile
The following table details the Group’s exposure to liquidity risk (including contractual interest obligations for bank loans).
Contractual maturity dates
20182017
On
demand
Less than
1 year
Greater
than
1 year Total
On
demand
Less than
1 year
Greater
than
1 year Total
$000$000$000$000$000$000$000$000
Financial liabilities:
Trade and other payables –98,308 –98,308 –149,855 –149,855
Interest-rate swaps –8,212 –8,212 –7,4 8 8 –7,4 8 8
Refundable
accommodation deposits30,757 – –30,75728,473 – –28,473
Bank loans (secured) –23,3581,046,4871,069,845 –22,510820,356842,866
Occupancy advances
(non-interest bearing) –315,4602,199,2232 ,514,683 –259,9271,877,3472 ,1 3 7, 2 74
3 0,757445,3383 , 24 5,7 1 03,721,80528,473439,7802 ,6 9 7,7 0 33,165,956
18. Financial instruments (continued)
RYMAN HEALTHCARE
122

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Gross occupancy advances and refundable accommodation deposits are non-interest bearing.
The above figures have been calculated on the anticipated level of occupancy advance repayments based on historical
experience. To date, new occupancy advances received have always exceeded repaid occupancy advances (net of
management fees), and represent a positive net operating cash flow to the Group.
The Group maintains the following lines of credit.
• $2.8 million (2017: $2.8 million) overdraft facility that is secured. Interest would be payable at the 3-month BKBM rate,
plus a specified margin (note 8).
• A loan facility of $1.3 billion (2017: $1.0 billion), of which $35.0 million (2017: $35.0 million) is for 1 year, $316.25 million
(2017: $965.0 million) is for 3 years, $632.5 million (2017: $0.0 million) is for 4 years, and $316.25 million (2017: $0.0 million)
is for 5 years.
• In 2018, the loan facility of $1.3 billion is provided by ANZ Bank New Zealand Ltd ($315.0 million), Commonwealth
Bank of Australia ($305.0 million), Bank of New Zealand / National Australia Bank ($300.0 million), Westpac
($255.0 million), and MUFG, previously the Bank of Tokyo-Mitsubishi, ($125.0 million) under the terms of a syndicated
loan agreement. The facility allows for the funds to be drawn down in either AUD or NZD, up to the $1.3 billion
NZD limit.
• In 2017, the loan facility of $1.0 billion was provided by ANZ Bank New Zealand Ltd ($280.0 million), Commonwealth
Bank of Australia ($280.0 million), Bank of New Zealand / National Australia Bank ($245.0 million), and Westpac
($195.0 million) under the terms of a syndicated loan agreement.
The Group renews its facilities annually to ensure an appropriate portion matures on a rolling 3, 4, and 5-year basis.
(d) Fair values
The carrying amounts of financial instruments in the Group’s balance sheet are the same as their fair value in all
material aspects, due to the demand features of these instruments and/or their interest-rate profiles.
The fair value of interest-rate swaps is derived using inputs supplied by third parties that are observable, either directly
(prices) or indirectly (derived from prices). The Group has therefore categorised these liabilities as Level 2 under the
fair-value hierarchy contained within NZ IFRS 13.
(e) Market risk
The Group is primarily exposed to interest-rate risk (note 18 (b)) and foreign-currency risk (note 18 (f)).
Based on the Group’s average net level of interest-bearing debt, the Group’s profit and total comprehensive income for
the year ended 31 March 2018 would not change materially if there was a movement of plus/(minus) 50 basis points.
(f ) Foreign-currency risk
Foreign-currency risk is the risk that the value of the Group’s assets, liabilities, and financial performance will fluctuate
due to changes in foreign-currency rates.
The Group is primarily exposed to currency risk as a result of its subsidiaries in Australia.
The risk to the Group is that the value of the overseas subsidiaries’ financial position and financial performance
will fluctuate in economic terms and, as recorded in the consolidated accounts, due to changes in the overseas
exchange rates.
18. Financial instruments (continued)
ANNUAL REPORT 2018
123

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
The Group’s profit and total comprehensive income for the year ended 31 March 2018 would not change materially by a
movement of plus/(minus) 1 cent in AUD/NZD.
The Group hedges the currency risk relating to its Australian subsidiaries by holding a portion of its bank borrowings in
Australian dollars. Any foreign-currency movement in the net assets of the Australian subsidiary is partially offset by an
opposite movement in the Australian dollar debt.
(g) Capital management
The Group’s capital includes share capital, reserves, and retained earnings. The objective of the Group’s capital
management is to ensure a strong credit rating to support business growth and maximise shareholder value.
The Group’s capital is managed at parent-company level. The Group is subject to capital requirements imposed by its
bank through covenants agreed as part of the lending facility arrangements. The Group has met all externally imposed
capital requirements for the 12 months ended 31 March 2018 and 31 March 2017.
The Group’s capital structure is managed and adjustments are made, with board approval, to the structure in light of
economic conditions at the time. There were no changes to objectives, policies, or processes during the year.
19. Commitments
Capital expenditure commitments
The Group had commitments relating to construction contracts amounting to $101.2 million at 31 March 2018
(2017: $68.6 million).
Operating lease and other commitments
Operating lease expenditure committed to, but not recognised, in the financial statements relating to property rental.
20182017
$000$000
Commitments within:
less than 1 year1,4451,041
between 1 and 5 years2,2712,333
more than 5 years 187 –
3,9033,374
The Group has an ongoing commitment for maintaining the land and buildings of the integrated retirement villages,
resthomes, and hospitals.
20. Contingent liabilities
The Group had no contingent liabilities at 31 March 2018 (2017: $Nil).
18. Financial instruments (continued)
RYMAN HEALTHCARE
124

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
21. Reconciliation of net profit after tax with net cash flow from operating activities
20182017
$000$000
Net profit after tax388,216356,694
Adjusted for:
Movements in balance-sheet items
Occupancy advances428,670326,259
Refundable accommodation deposits2,284171
Accrued management fees(51,571)(44,966)
Revenue in advance7, 2 5 37,670
Trade and other payables(2,402)13,100
Trade and other receivables(100,869)(36,798)
Employee entitlements4,0701,739
Non-cash items:
Depreciation and amortisation20,58014,934
Deferred tax6406,295
Unrealised foreign-exchange loss3,9002 ,667
Adjusted for:
Fair-value movement of investment properties(351,514)(324,966)
Net operating cash flows349,257322,799
Net operating cash flows includes occupancy advance receipts from retirement village residents of $603.7 million
(2017: $531.0 million).
Also included in operating cash flows are net receipts from refundable accommodation deposits of $3.1 million
(2017: $0.6 million).
Net operating cash flows also include management fees collected of $34.7 million (2017: $28.7 million).
ANNUAL REPORT 2018
125

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
22. Subsidiary companies
All trading subsidiaries operate in the aged-care sector in New Zealand and Australia, are 100 percent owned, and have
a balance date of 31 March. The operating subsidiaries are listed below.
• Anthony Wilding Retirement Village Limited
• Bert Sutcliffe Retirement Village Limited
• Bob Owens Retirement Village Limited
• Bob Scott Retirement Village Limited
• Bruce McLaren Retirement Village Limited
• Charles Fleming Retirement Village Limited
• Charles Upham Retirement Village Limited
• Diana Isaac Retirement Village Limited
• Edmund Hillary Retirement Village Limited
• Ernest Rutherford Retirement Village Limited
• Essie Summers Retirement Village Limited
• Evelyn Page Retirement Village Limited
• Frances Hodgkins Retirement Village Limited
• Grace Joel Retirement Village Limited
• Hilda Ross Retirement Village Limited
• Jane Mander Retirement Village Limited
• Jane Winstone Retirement Village Limited
• Jean Sandel Retirement Village Limited
• Julia Wallace Retirement Village Limited
• Kiri Te Kanawa Retirement Village Limited
• Logan Campbell Retirement Village Limited
• Malvina Major Retirement Village Limited
• Margaret Stoddart Retirement Village Limited
• Ngaio Marsh Retirement Village Limited
• Possum Bourne Retirement Village Limited
• Rita Angus Retirement Village Limited
• Rowena Jackson Retirement Village Limited
• Ryman Aged Care (Australia) Pty Limited
• Ryman Healthcare (Australia) Pty Limited
• Ryman Healthcare (Australia) No. 2 Pty Limited
• Ryman Napier Limited
• Shona McFarlane Retirement Village Limited
• Wheelers Hill Properties Pty Limited
• Yvette Williams Retirement Village Limited
RYMAN HEALTHCARE
126

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
23. Segment information
Products and services from which reportable segments derive their revenue
The Ryman Group operates in one industry, being the provision of integrated retirement villages for older people in
New Zealand and Australia. The service provision process for each of the villages is similar, and the class of customer
and methods of distribution and regulatory environment is consistent across all the villages.
Segment revenues and results
The accounting policies of the reportable segment are the same as the Group’s accounting policies. The segment profit
represents profit earned for the segment after all costs including all administration costs, directors’ fees, interest revenue,
finance costs, and income-tax expense.
The board makes resource allocation decisions to the segment, based on the expected cash flows and results of Group
operations as a whole. No operations were discontinued during the year. To monitor segment performance and allocate
resources to the segment, the board monitors assets attributable to the segment. All assets are allocated to the
reportable segment.
Information about major customers
Included in total revenue are revenues that arose from sales to the Group’s largest customers.
The Group derives care-fee revenue for eligible government-subsidised, aged-care residents who receive resthome,
hospital, or dementia-level care. The government aged-care subsidies received from the Ministry of Health included
in group care fees amounted to $96.7 million (2017: $86.6 million). There are no other significant customers.
Geographical information
The Group operates in New Zealand and Australia.
In presenting information on the basis of geographical areas, net profit, underlying profit, and revenue are based on the
geographical location of operations. Assets are based on the geographical location of the assets.
New ZealandAustraliaGroup
$000$000$000
Year ended 31 March 2018
Revenue324,67217,867342,539
Underlying profit184,81318,717203,530
less deferred tax expense (note 4) (640) –(640)
plus unrealised fair-value movement (note 7)179,1646,162185,326
Profit for the year363,33724,879388,216
Non-current assets4,939,996493,5355,433,531
ANNUAL REPORT 2018
127

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
New ZealandAustraliaGroup
$000$000$000
Year ended 31 March 2017
Revenue
275,49313,697289,190
Underlying profit172,8305,438178,268
less deferred tax expense (note 4)(6,295) –(6,295)
plus unrealised fair-value movement (note 7)
173,81710,904184,721
Profit for the year340,35216,342356,694
Non-current assets4,269,071414,2504,683,321
24. Employee share scheme
Senior management share scheme
The Group operates an employee share scheme for certain senior employees, other than non-executive directors,
to purchase ordinary shares in the Company.
The Group provides the employees with limited recourse loans on an interest-free basis to support employees’
participation in the scheme. These shares are treated as treasury stock when purchased on market, due to the features
of the scheme.
The loans are applied to the purchase of shares on market, so the number of shares and the consideration for each share
is determined by the market price at that time. The scheme holds 2,477,076 fully allocated shares, which represents 0.50%
of the total shares on issue (2017: 2,320,851 fully allocated shares, which represented 0.46% of the total shares on issue).
Shares purchased under the scheme are held by two directors as custodians, and the shares carry the same rights as all
other ordinary shares. The loan is repayable if the employee is no longer employed by the Group.
The following table reconciles the shares purchased on market under the scheme at the beginning and end of the
financial year.
20182017
Number of sharesNumber of shares
Balance at beginning of the financial year2,320,8512,000,372
Purchased on market during the year1,008,945986,491
Forfeited during the financial year(334,773)(124,883)
Vested during the financial year(517,947)(541,129)
Balance at end of the financial year2 , 47 7,0 7 62,320,851
Shares were purchased under the scheme in August 2017 at a price of $9.32 per share. Remaining shares held by the
scheme were purchased in July 2016 ($9.55) and July 2015 ($8.29).
23. Segment information (continued)
RYMAN HEALTHCARE
128

Notes to the consolidated financial statements (continued)
For the year ended 31 March 2018
Shares vested in August 2017 were originally purchased at $8.44 per share in 2014 and are now held directly by
employees. The amounts owed by employees in these vested shares are included within advances to employees.
This balance includes $4,176,836 owing by management personnel in the share scheme (2017: $2,916,548 and
$856,228 owing by the Managing Director).
The directors estimate the fair value of each employee advance granted at the time of the purchase of shares on market,
on behalf of the selected employee. Due to the on-market purchase and sale features of the scheme, and the scheme
agreement arrangements, the directors consider any such value to be immaterial. Shares subject to this scheme vest
3 years from the date of purchase.
All-employee share scheme
In addition, the Group operates a share scheme that is available for all staff.
Participants of this scheme contribute a minimum of $500 (and up to a maximum amount of $10,000) towards the
on-market purchase of Ryman Healthcare Limited shares. To help the staff member purchase more shares, the Group
advances an interest-free loan equal to the employee’s contribution towards the share purchase (financial assistance).
The loan is repayable when the staff member leaves the Group. Shares purchased under the scheme are held in the
employee’s name. The financial assistance provided by the Group is recorded in advances to employees.
25. Subsequent events
The directors resolved to pay a final dividend of 10.9 cents per share or $54.5 million, with no imputation credits attached,
to be paid on 22 June 2018.
26. Authorisation
The directors authorised the issue of these financial statements on 17 May 2018.
Warren Bell Dr David Kerr
Non-Executive Director Chair
and Chair of Audit and
Financial Risk Committee
24. Employee share scheme (continued)
ANNUAL REPORT 2018
129

Independent Auditor’s Report
To the shareholders of Ryman Healthcare Limited
Opinion
Basis for opinion
Audit materiality
Key audit matters
We have audited the consolidated financial statements of Ryman Healthcare Limited and
it s subsidiaries (the Group). These comprise the consolidated balance sheet as at
31 March 2018, an d the consolidated income statement, statement of comprehensive
income, statement of changes in equity an d statement of cash flows fo r the year then
ended, and notes to the consolidated financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying consolidated financial statements, on pages 94 to 129,
present fairly, in all material respects, the consolidated financial position of the Group as
at 31 March 2018, an d it s consolidated financial performance an d cash flo ws fo r the year
then ended in accordance with New Zealand Equivalents to International Financial
Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
We conducted our audit in accordance with the International Standards on Auditing (ISAs)
an d International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities
under those standards ar e further described in the Auditor’s Responsibilities fo r the Audit
of the Consolidated Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient an d appropriate to
provide a basis fo r our opinion.
We are independent of the Group as required by Professional an d Ethical Standard 1
(Revised) Code of Ethics fo r Assurance Practitioners issued by the New Zealand Auditing
an d Assurance Standards Board
an d the International Ethics Standards Board for
Accountants’ Code of Ethics fo r Professional Accountants, and we have fulfilled our other
ethical responsibilities under these requirements.
Our fir m carries out other assignments fo r the Group in the ar eas of Australian aged care
an d information technology an d cyber security assurance services. These services have
not impaired our independence as auditor of the Company an d Group.
In addition to this, partners an d employees of our fir m deal with the Company an d its
subsidiaries on normal ter ms within the ordinary course of trading activities of the
business of the Company and it s subsidiaries. The fir m has no other relationship with, or
interest in, the Company or any of it s subsidiaries.
We consider materiality primarily in terms of the magnitude of misstatement in the
financial statements of the Group that in our judgement would make it probable that the
economic decisions of a reasonably knowledgeable person would be changed or influenced
(the quantitative materiality).
We also assess whether other matters that come to our attention during the audit would in
our judgement change or influence the decisions of such a person (the qualitative
materiality). We use materiality both in planning the scope of our audit work an d in
evaluating the results of our work.
We determined materiality fo r the consolidated financial statements t
o be $18m.
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements of the current period.
These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion. We do not provide a separate opinion
on these matters.
RYMAN HEALTHCARE
130

Valuation of investment properties How our audit addressed the key audit matter
As explained in policy (d) and note 7 in the financial
statements, investment properties are carried at fair value
on the balance sheet. The fair value was determined by
independent registered valuers appointed by the Group.
These properties were valued at $4,398m (2017:
$3,661m). The revaluation gain recognised in the income
statement was $352m (2017: $325m).
We included the valuation of investment properties as a
key audit matter for two key reasons:
The significance to the financial statements:
the investment properties account for 76% of the
total assets (2017: 74%), making it the most
significant balance on the balance sheet.
The complexity of the valuation model:
the valuation model relies on various estimates and
underlying assumptions. It combines discounted
future cash flows and occupancy advances received
from residents. It uses significant assumptions,
including long term house price inflation and discount
rates. The valuation model also uses significant
unobservable inputs regarding the average age of
residents and occupancy period.
Our procedures focused on:
the appropriateness of the valuation methodology
the accuracy of the underlying data used for the
valuation
reasonableness of underlying assumptions in the
valuation model.
Our procedures included, amongst others:
evaluating the Group’s processes for the
independent valuation of the investment properties
reviewing the valuation methodology and the
reasonableness of the significant underlying
assumptions
assessing the competence, objectivity and integrity
of the independent registered valuers. We assessed
their professional qualifications and experience. We
also obtained representation from them regarding
their independence and the scope of their work
meeting with the valuer to understand the valuation
process adopted. The purpose of the meeting was to
identify and challenge the critical judgement areas
in the valuation model and to confirm the valuation
approach was in accordance with NZ IFRS 13 Fair
Value Measurement
utilising our in-house valuation specialists to assess
the appropriateness of the valuation methodology
and challenge the reasonableness of the underlying
assumptions. Our specialist particularly focused on
the assumptions in respect of long term house price
inflation and discount rates applied
agreeing a sample of sales and resales to contracts,
recalculating actual growth rates on resales, and
challenging the assumptions in respect of the
average age of residents and occupancy period
assessing the discount rates for reasonableness by
comparing the rates to those adopted in the prior
year and adjusting it for expected changes and the
rates adopted by comparable entities.
ANNUAL REPORT 2018
131

Valuation of care facility land and buildings How our audit addressed the key audit matter
As explained in policy (e) and note 6 in the financial
statements, care facility land and building are carried at
their fair value at the date of revaluation less any
subsequent accumulated depreciation and impairment
losses.
The net book value of care facility land and buildings as
reflected in note 6 is $620m (2017: $520m).
The Group obtains independent valuations at least every 3
years and performs annual internal assessments to ensure
that the carrying amount does not differ materially from
fair value at the balance sheet date.
The last independent valuation was completed as at
31 March 2017. A revaluation gain of $56.5m was
recognised in other comprehensive income in 2017.
In the current year, the Group have used judgement to
determine that there has been no significant changes to
the assumptions used in the 2017 valuation and that
there are no indicators that the fair value of developing
villages not subject to valuation in 2017, differ materially
from the fair values. They have therefore concluded that
an independent valuation is not required in the current
year.
We included the valuation of care facility land and
buildings as a key audit matter in the current year due to
the significant judgement exercised by the Group in
determining that the carrying values will not differ
materially from the fair values as at 31 March 2018 and
that no independent valuation is required in the current
year.
Our audit procedures focused on the appropriateness of
the Group’s assessment that the carrying value of land
and buildings classified as property, plant and equipment
as at 31 March 2018 is not materially different to fair
value.
Our procedures included, amongst others:
critically assessing, together with our internal
valuation specialist, the documentation prepared by
the Group supporting their assessment of whether
there have been any significant changes to the
assumptions used in the 2017 valuation that would
lead to the carrying value of care facility land and
buildings as at 31 March 2018 being materially
different to their fair values
critically assessing the documentation prepared by the
Group supporting their assessment that there were no
indicators that would result in the fair value of
developing villages not subject to revaluation in 2017,
being materially different to their fair values as
at 31 March 2018
agreeing material additions to supporting
documentation.
RYMAN HEALTHCARE
132

Other information The directors are responsible on behalf of the Group for the other information. The other
information comprises the information in the Annual Report that accompanies the
consolidated financial statements and the audit report. The Annual Report will be made
available to us after the date of this report.
Our opinion on the consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether it is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, when we read the Annual Report, we conclude that there is a material misstatement,
we are required to communicate this to the directors and consider further appropriate
actions.
Directors’ responsibilities for
the consolidated financial
statements
The directors are responsible on behalf of the Group for the preparation and fair
presentation of the consolidated financial statements in accordance with NZ IFRS and
IFRS. They are also responsible for such internal control as they determine is necessary to
enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf
of the Group for assessing the Group’s ability to continue as a going concern and
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for
the audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and
ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for -assurance-practitioners/auditors-responsibilities/audit-
report-1
This description forms part of our auditor’s report.
Restriction on use This report is made solely to the Company’s shareholders, as a body. Our audit was
performed so that we might state to the Company’s shareholders those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the
Company’s shareholders as a body, for our audit work, for this report, or for the opinions we
have formed.
Michael Wilkes, Partner
for Deloitte Limited
Christchurch, New Zealand
17 May 2018
ANNUAL REPORT 2018
133

Corporate
Governance
RYMAN HEALTHCARE
134134

Corporate
Governance
ANNUAL REPORT 9213
135135

Statement of corporate governance
Ryman believes in the benefit of good corporate
governance and the value it provides for our shareholders,
residents, staff, and other stakeholders.
The company’s approach to applying the recommendations
outlined in the NZX Corporate Governance Code (the
Code) are set out below. The section is set out in the
order of the principles detailed in the Code and explains
how Ryman is applying the Code’s recommendations.
Ryman’s policy documents referred to in this section are at
www.rymanhealthcare.co.nz/investor-centre/governance.
Principle 1 – Code of ethical behaviour
“Directors should set high standards of ethical
behaviour, model this behaviour and hold
management accountable for these standards
being followed throughout the organisation.”
Code of ethics
As part of the board’s commitment to the highest
standards of behaviour and accountability, the company
has adopted a code of ethics to guide directors, senior
management, and employees in carrying out their duties
and responsibilities.
Ryman’s code of ethics is the framework of standards by
which the directors, senior management, and employees
are expected to conduct their professional lives. It is
intended to support decision-making that is consistent
with Ryman’s values, business goals, and legal and policy
obligations, rather than to prescribe an exhaustive list of
acceptable and non-acceptable behaviour.
The board approves the code of ethics, which covers
matters such as:
• interacting with residents and their families, employees,
and suppliers
• accepting gifts or other benefits
• dealing with conflicts of interest
• protecting company assets
• complying with laws and policies
• maintaining confidentiality
• reporting breaches.
New employees receive a copy of the code of ethics,
which is accessible to all staff on the Ryman intranet
and the company website.
The company has a whistleblower and protected
disclosure policy. The purpose of the policy is to protect
an employee who wishes to raise concerns of serious
wrongdoing from reprisals or victimisation for reporting
their concerns.
Financial product trading policy
Ryman supports the integrity of New Zealand’s financial
markets. This integrity is maintained, in part, through the
insider trading laws that apply in New Zealand. Ryman’s
financial product trading policy outlines how those laws
apply, as well as the rules that Ryman has put in place so
that those laws are followed.
Directors, certain employees, and their related parties
must seek approval from the company to trade in the
company’s shares. Trading is limited to two ‘trading
windows’: between the full-year announcement date and
31 August, and between the half-year announcement
date and 31 January each year.
The directors’ shareholdings and all trading of shares
during the year by the directors is disclosed in the section
headed Directors’ disclosures. A director or senior
manager is obliged to advise the NZX promptly if they
trade in the company’s shares.
Principle 2 – Board composition
and performance
“To ensure an effective board, there should be
a balance of independence, skills, knowledge,
experience and perspectives.”
The board of directors
The directors are responsible for the corporate
governance practices of the company. The practices
adopted by the board are prescribed in a charter that
sets out the protocols for how the board operates.
The charter complies with the relevant recommendations
in the NZX Corporate Governance Code and is reviewed
annually.
The board’s primary role is to effectively represent and
promote the interests of shareholders with a view to
adding long-term value to the company’s shares.
RYMAN HEALTHCARE
136

The board carries out its responsibilities according to the
following mandate.
• The board should consist of a majority of non-executive
directors.
• At least a third of the directors should be independent
of management and free from any business or other
relationship or circumstance that could materially
interfere with the exercise of a director’s independent
judgement.
• The board’s chair should be a non-executive director
(and not the chief executive).
• Directors should possess a broad range of skills,
qualifications, and experience and remain up to date
on how best to perform their duties as directors.
• Management must provide information of sufficient
content, quality, and timeliness as the board considers
necessary to allow the board to effectively discharge
its duties.
• The effectiveness and performance of the board and
its individual members should be re-evaluated annually.
The board consists entirely of non-executive directors.
The directors of the company at 31 March 2018 are
Dr David Kerr, Jo Appleyard, Warren Bell, Claire Higgins,
Kevin Hickman, and George Savvides. Dr David Kerr,
Jo Appleyard, Warren Bell, Claire Higgins, and George
Savvides are all independent directors in accordance
with the NZX Main Board Listing Rules.
More information on the directors, including their interests,
qualifications, and shareholdings, is provided in the
Directors’ disclosures section of this report and is on the
company’s website.
Day-to-day management of Ryman is delegated to the
chief executive and the senior executive team.
The board’s responsibilities
The primary responsibilities of the board are to:
• ensure the company’s goals are clearly established
and that strategies are in place for achieving them
• establish policies for strengthening the performance
of the company and ensure that management is
proactively seeking to build the business
• monitor the performance of management
• appoint the chief executive and set the terms of the
chief executive’s employment agreement
• decide on what steps are needed to protect the
company’s financial position and its ability to meet its
debts and other obligations when they fall due, and
ensure that such steps are taken
• ensure the company’s financial statements are true
and fair and conform with the law
• ensure the company adheres to high standards of
ethics and corporate behaviour
• ensure the company has appropriate risk
management/regulatory compliance policies in place.
On appointment to the board by the shareholders, new
directors sign a written agreement that covers the terms
of their appointment.
Every year, the board and sub-committees critically
evaluate their own performance, and their own processes
and procedures. Through this process, the board
identifies any training opportunities for individual
directors to ensure they have relevant and up-to-date
skills for performing their role.
In line with NZX Main Board Listing Rules, one third of
the directors must retire by rotation each year. These
directors may offer themselves for re-election.
The Governance, Remuneration, and Nominations
Committee undertakes the process for nominating
and appointing directors on behalf of the board, and
makes appropriate recommendations to the board.
The committee’s terms of reference include the process
for nominating and appointing directors.
Independent professional advice
With the prior approval of the chair, each director has the
right to seek independent legal and other professional
advice at the company’s expense about any aspect of
the company’s operations or undertakings to assist in
fulfilling their duties and responsibilities as directors.
Diversity
The board and management ensure that all eligible
people get an equal opportunity to demonstrate that they
Statement of corporate governance (continued)
ANNUAL REPORT 2018
137

have the right skills and experience for a role, and this is
the basis of our diversity policy.
Ryman embraces the uniqueness in all of our people and
welcomes diversity. We encourage all of our employees to
listen to each other and to our residents and their families,
and to work to meet the needs of individual people.
Our approach to diversity is to continually develop a
work environment that supports equality and inclusion,
regardless of difference.
The board sets measurable objectives for assessing
performance against Ryman’s diversity policy (including
achieving gender diversity) and will assess progress
annually. The board will also ensure Ryman’s objectives
are appropriate for promoting diversity and inclusion.
Through this policy, we have achieved the following
gender diversity.
• Of the six directors, two are women and four are
men (2017: two women and six men, including the
managing director).
• Of the seven members of the senior executive team,
three are women and four are men (2017: four women
and six men). The senior executive team includes the
chief executive and his direct reports. *
• Of the 362 Ryman leaders, 257 are women and 105 are
men.
* In April 2018, the senior management team was
restructured, resulting in the creation of the senior
executive team. At 31 March 2018, the senior management
team consisted of 10 members: four women and six men.
Principle 3 – Board committees
“The board should use committees where this will
enhance its effectiveness in key areas, while still
retaining board responsibility.”
Board committees
The board has four standing committees: Audit and
Financial Risk; Health and Safety; Clinical Governance;
and Governance, Remuneration, and Nominations.
A separate Independent Directors’ Committee meets
as needed.
Each committee operates under specific terms of
reference approved by the board. Any recommendations
they make are recommendations to the board.
The terms of reference for each committee are
reviewed annually.
Audit and Financial Risk Committee
The objective of the Audit and Financial Risk Committee
(AFRC) is to assist the board in discharging its
responsibilities for financial reporting, and risk and
financial/secretarial compliance.
The committee makes recommendations to the board
on appointing external auditors to ensure that they are
independent and to ensure that the company provides
for 5-yearly rotation of the lead audit partner.
The committee provides a forum for the effective
communication between the board and external
auditors. The committee’s responsibilities include:
• reviewing the appointment of the external auditor, the
annual audit plan, and addressing any recommendations
from the audit
• reviewing any dividend proposals and financial
information to be issued to the public
• ensuring that appropriate financial systems and
internal controls are in place.
The AFRC must consist of at least three directors, who
must wherever possible be independent non-executive
directors. The board chair must also not be the chair of
the AFRC. The current members are Warren Bell (chair),
Dr David Kerr, Claire Higgins, and Jo Appleyard, who are
all independent non-executive directors. Warren Bell is a
member of Chartered Accountants Australia New Zealand
and Claire Higgins is a Fellow of CPA Australia.
The committee generally invites the chief executive,
chief financial officer, and the external auditors to attend
AFRC meetings as appropriate. The committee also
meets and receives regular reports from the external
auditors without management present, concerning any
matters which arise in connection with the performance
of their role.
Statement of corporate governance (continued)
RYMAN HEALTHCARE
138

Health and Safety Committee
The Health and Safety Committee assists the board
in discharging its responsibilities in overseeing and
reviewing health and safety matters arising out of
Ryman’s activities and the impact of these activities
on staff, contractors, residents, and visitors to Ryman.
The committee recognises the critical role health and
safety forms as part of its day-to-day operations and
wants to ensure a safety-first culture across all business
operations.
The members of the committee are Claire Higgins
(chair), Dr David Kerr, and Jo Appleyard.
The committee’s responsibilities include:
• considering and approving health and safety strategies,
policies, and procedures
• setting health and safety indicators in consultation
with management
• ensuring the board and directors are properly and
regularly informed on matters relating to health and
safety governance, performance, and compliance
• conducting regular assessments and audits of the risk
profile and control processes.
Clinical Governance Committee
The Clinical Governance Committee supports,
and enhances the quality of, the company’s clinical
performance and care and service provision.
The committee assists the board in discharging its
oversight of clinical reporting and clinical compliance
and is focused on innovation in healthcare and ensuring
alignment with emerging best clinical practice.
The committee consists of three non-executive directors:
George Savvides (chair), Dr David Kerr, and Jo Appleyard,
as well as Tim Wilkinson, a professor at Otago Medical
School and a consulting geriatrician.
The committee’s responsibilities are to:
• liaise with internal and external clinical auditors
• review internal and external clinical audit findings
• review significant changes to clinical policies
• review significant complaints and investigations
relating to care of residents
• ensure appropriate clinical information systems and
external controls are in place
• review changes in clinical practice in aged care.
The committee maintains direct lines of communication
with the external clinical auditors, the chief executive, the
chief operations officer, and the internal clinical auditor.
External clinical auditors are invited to attend a meeting
each year and report to the committee, including
presenting a review of the internal clinical audit function.
Governance, Remuneration, and
Nominations Committee
The Governance, Remuneration, and Nominations
Committee assists the board in establishing remuneration
policies and practices for the company in discharging the
board’s responsibilities for remuneration. The committee
also undertakes the process for nominating and
appointing directors on behalf of the board, and makes
appropriate recommendations to the board.
The committee’s terms of reference include the process
for nominating and appointing directors.
At 31 March 2018 the committee consists of Dr David
Kerr (chair), George Savvides, and Kevin Hickman, which
creates a majority of independent directors. Committee
members must be non-executive directors.
Management attends committee meetings only at the
invitation of the committee.
The committee’s objectives are to:
• assist the board in establishing remuneration policies
and practices for the company
• assist in discharging the board’s responsibilities for
reviewing the chief executive’s and the directors’
remuneration
• advise and assist the chief executive in setting
remuneration for the senior executive team
• regularly review and recommend changes to the
composition of the board and identify and recommend
individuals for nomination as members of the board
and its committees.
Statement of corporate governance (continued)
ANNUAL REPORT ftfifltt
139

Statement of corporate governance (continued)
The directors’ and senior management’s remuneration
are set out in the Directors’ disclosures section of
this report.
Independent Directors’ Committee
The Independent Directors’ Committee is convened
as needed and consists of independent non-executive
directors who address significant conflicts of interest
and any other matters referred by the board.
Ryman has protocols that set out the procedures to be
followed if there is a takeover offer. These procedures
are set out in the Takeover Response Protocols that have
been adopted by the board.
Principle 4 – Reporting and disclosure
“The board should demand integrity in financial
and non-financial reporting, and in the timeliness
and balance of corporate disclosures.”
Reporting and disclosure
The board focuses on providing accurate, adequate, and
timely information both to existing shareholders and to
the market generally. This enables all investors to make
informed decisions about the company.
Ryman, as a company listed on the NZX Main Board, has
an obligation to comply with the disclosure requirements
under the NZX Main Board Listing Rules. Ryman
recognises that these requirements aim to provide equal
access for all investors or potential investors to material
price-sensitive information concerning issuers or their
financial products. This in turn promotes confidence in
the market.
Ryman’s market disclosure policy outlines the obligations
of Ryman and relevant Ryman personnel in satisfying
the disclosure requirements. It also covers other related
matters including external communications by Ryman.
The company has produced its first integrated report
for the year ended 31 March 2018. The decision to
adopt integrated reporting was made to further develop
Ryman’s disclosures. The integrated report provides
more information on the company’s business model and
future value creation.
Ryman publishes its key governance and other relevant
documents in the investor centre of the company’s
website at rymanhealthcare.co.nz/investor-centre/
governance.
All significant announcements made to the NZX and
reports issued are also posted on the company’s website.
Principle 5 – Remuneration
“The remuneration of directors and executives
should be transparent, fair and reasonable.”
The Governance, Remuneration, and Nominations
Committee makes recommendations to the board on
remuneration matters in keeping with the committee’s
terms of reference. The committee does not have the
authority to make decisions on behalf of the board.
The committee is also responsible for making
recommendations to the board on the remuneration
of the chief executive.
The total director remuneration pool is approved by
shareholders at the annual general meeting (AGM)
as required under the NZX Main Board Listing Rules.
The board is responsible for the setting of individual
directors’ fees in accordance with the permitted pool.
Details of the directors’ remuneration for the year are
in the directors’ disclosures section of this report.
Ryman has in place a remuneration policy that outlines
the key principles that influence Ryman’s remuneration
practices.
The remuneration of the chief executive and the senior
executive team is determined by the significance of their
role and the industry. The total remuneration is made
up of fixed remuneration and short-term cash-based
incentives. The chief executive and senior executive
team are also members of the senior management share
scheme (see note 24 of the financial statements).
RYMAN HEALTHCARE
140

Statement of corporate governance (continued)
The short-term incentives are at-risk payments that
reward performance. They are designed to motivate and
incentivise senior staff in the delivery of performance
over a 1-year operating cycle. The amount payable is
set annually. The payment of the short-term incentive
depends on achieving certain results and outcomes.
Performance over the financial year is measured against
‘stretch’ performance targets. The performance metrics
differ with each role.
Every year, the committee reviews the levels and
appropriateness of these incentives and weighting.
There are no long-term incentives for the senior
executive team that are subject to performance risk.
The senior management share scheme provides the
employees with limited recourse loans on an interest-free
basis to support employees’ participation in the scheme.
These shares are treated as treasury stock when
purchased on market, due to the features of the scheme.
Shares subject to this scheme have a restricted period of
3 years from the date of purchase, to appropriately
incentivise participants over a longer period. The loan is
repayable if the employee is no longer employed by Ryman.
Employees’ remuneration
The table below details the number of Ryman employees
who have earned over $100,000 during the year ended
31 March 2018. The remuneration includes salary,
short-term incentives, and employer’s contribution to
KiwiSaver and Superannuation.
RemunerationNo. employees
990,000 – 1,000,0001
580,000 – 590,0001
570,000 – 580,000 1
560,000 – 570,0001
480,000 – 490,0001
320,000 – 330,0001
270,000 – 280,0002
260,000 – 270,000 1
250,000 – 260,0001
240,000 – 250,0001
230,000 – 240,0003
220,000 – 230,0003
210,000 – 220,0003
200,000 – 210,0003
180,000 – 190,0004
170,000 – 180,0002
160,000 – 170,0006
150,000 – 160,00010
140,000 – 150,0008
130,000 – 140,00015
120,000 – 130,00026
110,000 – 120,00025
100,000 – 110,00029
Chief executive remuneration
Gordon MacLeod was appointed chief executive on 1 July 2017. Before this time, he was deputy chief executive.
His remuneration for the year is as follows.
SalaryKiwiSaverSubtotal
Short-term
incentive
Total
remuneration
Loan provided under the senior
management share scheme
FY18$762,978$28,889$791,867$200,000$991,867*$1,000,000
* There were no other benefits (including long-term incentives) received in this financial year.
The at-risk short-term incentive is payable on the achievement of certain key performance indicators (KPIs). These KPIs
are focused on the financial performance of Ryman, specific operational targets, and people-related expectations.
At 31 March 2018, the total number of shares owned by and/or held for the benefit of the chief executive totalled 610,059.
For these shares, loans totalling $2,533,974 are outstanding.
ANNUAL REPORT 2018
141

Statement of corporate governance (continued)
Principle 6 – Risk management
“Directors should have a sound understanding of
the material risks faced by the issuer and how to
manage them. The board should regularly verify
that the issuer has appropriate processes that
identify and manage potential and material risks.”
The board is responsible for overseeing the company’s
system of internal controls to manage key risks and have
overall responsibility for managing risk.
The company maintains a group risk register to identify
and manage risk. Specific health and safety, and clinical
risk registers are separately maintained given the
significance of these areas to the business. The senior
executive team is responsible for maintaining the risk
registers.
Ryman operates an extensive internal accreditation
programme that addresses issues such as service
delivery, health and safety, and administration. Internal
audits are undertaken regularly. The results of these audits
and critical indicators are regularly reported to the board.
Through the AFRC, the board considers the
recommendations and advice of external auditors,
and ensures that those recommendations are
investigated and, where considered necessary,
appropriate action is taken.
Principle 7 – Auditors
“The board should ensure the quality and
independence of the external audit process.”
The Audit and Financial Risk Committee makes
recommendations to the board on the appointment of
the external auditor as set out in the terms of reference.
The committee also monitors the independence and
effectiveness of the external auditor and reviews and
approves any non-audit services performed by the
external auditor.
The committee regularly meets with the external auditor
to approve the terms of engagement, audit partner
rotation (at least every 5 years) and audit fee, and to review
and provide feedback on the annual audit plan. Every
year, a comprehensive review and formal assessment
of the independence and effectiveness of the external
auditor is undertaken. The assessment uses an external
auditors’ assessment tool, which is internationally
recognised and endorsed by the Independent Directors
Council. The committee routinely has time with Ryman’s
external auditor, Deloitte, without management present.
Deloitte attends the company’s AGM.
The company continually monitors its internal control
environment. Clinical auditors and health and safety
officers regularly test and assess controls and report
their findings to the Clinical Governance Committee
and the Health and Safety Committee.
Principle 8 – Shareholder rights and
relations
“The board should respect the rights of shareholders
and foster constructive relationships with
shareholders that encourage them to engage with
the issuer.”
Information for shareholders
The company seeks to ensure that investors understand
its activities by communicating effectively with them and
providing access to clear and balanced information.
The company website rymanhealthcare.co.nz provides
an overview of the business and information about
Ryman. This information includes details of operational
sites, latest news, investor information, key corporate
governance information, and copies of significant NZX
announcements. The website also provides profiles of
the directors and the senior executive team.
Copies of previous annual reports, financial statements,
and results presentations are available on the website.
Shareholders have the right to vote on major decisions of
the company in accordance with requirements set out in the
Companies Act 1993 and the NZX Main Board Listing Rules.
Communicating with shareholders
Ryman has a dedicated investor relations manager and
corporate affairs manager. These two roles allow us to
develop strong relationships and ensure our shareholders
are kept informed.
Ryman’s investor centre sets out the investor relations
manager’s and corporate affairs manager’s contact
details for communications from shareholders.
We send the notice of the AGM to shareholders and
publish it on the company website at least 28 days before
the meeting each year.
RYMAN HEALTHCARE
142

General disclosures of interest
For the year ended 31 March 2018
Jo Appleyard
Partner Chapman Tripp^
Member NZX Disciplinary Committee
Trustee The Cathedral Grammar School
Foundation
Warren Bell
Chair Hallenstein Glasson Holdings Ltd Group
Chair St Georges Hospital Inc
Director Meadow Mushrooms Group of Companies
Director Cyprus Enterprises Ltd
Director Sabina Ltd
Director Bildeford Holdings Ltd
Director Warren Bell Ltd
Director CHC Properties Limited
Director Glasson Trustee Limited
Director 152 Hereford Limited
Director CraigPine Timber Limited
Director Amalgamated Holdings Limited
Trustee Emerald Trust
(part shareholder of Airport Business Park)
Trustee Waiwetu Trust
(part shareholder of Airport Business Park)
Bare trustee Ryman Healthcare Share Scheme
( jointly with Dr David Kerr)
Director Alpine Energy Group*
Director Maling and Co Ltd*
Director Palms Services Ltd*
Director Golflinks Holdings Ltd*
Kevin Hickman
Trustee The Hickman Family Trust
Director James Lloyd Developments Limited
Director Valachi Downs Limited
Director/
Shareholder Rita May Limited
Director Airport Business Park Christchurch Limited
Director Russley Estates No. 1 Limited
Director Russley Estates No. 2 Limited
Trustee Waiwetu Trust
(part shareholder of Airport Business Park)
Director/
Shareholder Fab Consortium
Claire Higgins
Chair REI Superannuation Fund Pty Ltd
Chair NorthWest Healthcare Properties
Management Limited (previously known
as Vital Healthcare Management Limited)
Acting chair Pancare Foundation Inc
Director Railway and Transport Health Fund Ltd
Director Transport Health Pty Ltd
Trustee Helen Macpherson Smith Trust
Dr David Kerr
Chair EcoCentral Limited
Chair Centercare Limited
Advisor Canterbury District Health Board
Bare trustee Ryman Healthcare Share Scheme
( jointly with Warren Bell)
Director Forté Hospital
Director Health Workforce New Zealand
Director Ngāi Tahu Property
Consultant Pegasus Health*
George Savvides
Chair Kings Group Pty Ltd
Chair Macquarie University Hospital
Deputy
chair Special Broadcasting Service (SBS)
Director/
Shareholder Teamflow Asset Management Pty Ltd
Partner CFMC Consulting Pty Ltd (Sodia)
Chair World Vision Australia*
Simon Challies (resigned June 2017)
Trustee St Andrews College Foundation
Doug McKay (resigned July 2017)
Chair Bank of New Zealand and subsidiaries
Director IAG NZ Holdings Ltd
Director IAG NZ Ltd
Director Genesis Energy Ltd
Director Tourism Transport Ltd
Chair Eden Park Trust Board
Board
member National Australia Bank Limited
* Resigned during the year
^ Jo has been a director since 2009 and since that time has performed no professional services for the company in her
capacity as a partner at Chapman Tripp.
ANNUAL REPORT 2018
143

Directors’ disclosures
For the year ended 31 March 2018
Shareholdings at 31 March 2018
DirectorRelevant interest
Jo Appleyard78,700(1)
Warren Bell22,000
Kevin Hickman35,834,955(2)
Claire Higgins12,650(3)
Dr David Kerr333,000(4)
George Savvides35,030(5)
Directors’ remuneration for the year
Director
Directors’
fees
Sub-
committee
chair
Foreign
exchange
Total
directors’
fees
Salaries,
bonuses
and other
remuneration
Jo Appleyard103,000 – –103,000 –
Warren Bell103,00016,500 –119,500 –
Kevin Hickman103,000 – –103,000 –
Claire Higgins103,00016,50011,011130,511 –
Dr David Kerr207,000 – –207,000 –
Doug McKay34,333 – –34,333 –
George Savvides103,00016,50011,011130,511 –
Simon Challies (6) – – – –2,159,882
756,33349,50022,022827,8552,159,882
Directors of subsidiary companies
Dr David Kerr, Warren Bell, Gordon MacLeod, and David Bennett are directors of all the Company’s New Zealand subsidiaries.
Claire Higgins, George Savvides, Gordon MacLeod, and David Bennett are directors of Ryman Healthcare (Australia) Pty Ltd
and its subsidiaries.
Kevin Hickman was a director of the Company’s New Zealand subsidiaries until 30 June 2017.
Simon Challies was a director of the Company’s New Zealand and Australian subsidiaries until 30 June 2017.
Membership of sub-committees
Directors do not receive additional fees for membership of sub-committees. Additional fees are paid to directors who
act as the chair of a sub-committee. During the year Warren Bell, George Savvides, and Claire Higgins held sub-committee
chair positions.
Specific disclosures
In line with the company’s constitution and the Companies Act 1993, the company has provided insurance for,
and indemnities to, directors of the company.
(1) Held as trustees of The Appleyard and Larkin Family Trust
(2) Held as trustees of The Hickman Family Trust
(3) Held as trustees of Adam Higgins Superannuation Fund Pty Ltd
(4) Shares held by DW & DJ Kerr and The DW Kerr Family Trust
(5) Shares held by Australian Executor Trustees Ltd
(6) Simon Challies, the managing director, resigned with effect from 30 June
2017. The salary, bonuses, and other remuneration paid to the outgoing
managing director during the year totalled $2.16 million. This was made up
of salary $0.19 million, annual leave $0.26 million, short-term incentives
$0.33 million, and KiwiSaver $0.06 million paid in the period to 30 June 2017,
and additional payments of $1.32 million, including in his role as an advisor to
the board, following his resignation
RYMAN HEALTHCARE
144

Share transactions during the year
DirectorNature of interest
Number of shares
acquired/(disposed)Consideration ($)Date
Simon ChalliesBeneficial (1,000,000)(9,080,000)1 7/ 0 7/ 2 0 1 7
Simon ChalliesBeneficial(212,914)0*1 7/ 0 7/ 2 0 1 7
Warren BellBeneficial2,00018,30010/08/2017
Warren Bell – Poraka Limited Beneficial( 2,000)(18,300)10/08/2017
* Forfeiture of 212,914 shares not vested under employee share scheme on cessation of employment
Dr David Kerr and Warren Bell, as joint custodians of the Ryman Healthcare Employee Share Purchase Scheme, acquired
1,008,945 shares during the year, disposed of 852,720 shares during the year, and held 2,477,076 shares in total at 31 March
2018 (also refer note 24).
Directors’ disclosures (continued)
For the year ended 31 March 2018
ANNUAL REPORT 2018
145

Shareholder information
Top 20 shareholders at 17 May 2018
RankInvestor nameNo. of shares% issued capital
1HSBC Nominees (New Zealand) Limited
1
99,890,394 19.98
2JPMORGAN Chase Bank
1
60,056,685 12.01
3Joanna Hickman & John Anthony Callaghan & Kevin James Hickman
2
35,834,955 7.1 7
4HSBC Nominees (New Zealand) Limited
1
34,492,918 6.90
5G A Cumming 25,425,000 5.09
6Citibank Nominees (NZ) Ltd
1
18,441,791 3.69
7Forsyth Barr Custodians Ltd 11,306,548 2.26
8Ngāi Tahu Capital Limited 9,895,669 1.98
9Custodial Services Limited 9,610,751 1.92
10Accident Compensation Corporation
1
9,545,140 1.91
11Tea Custodians Limited
1
9,318,316 1.86
12New Zealand Superannuation Fund Nominees Limited
1
6,496,260 1.30
13Premier Nominees Limited
1
5,882,290 1.18
14BNP Paribas Nominees NZ Limited
1
5,630,183 1.13
15Custodial Services Limited 4,885,118 0.98
16FNZ Custodians Limited 4,238,853 0.85
17Private Nominees Limited
1
4,142 ,716 0.83
18National Nominees New Zealand Limited
1
3,911,110 0.78
19Cogent Nominees Limited
1
3,764,416 0.75
20Custodial Services Limited 3,598,677 0.72
1
Held by New Zealand Central Securities Depository Ltd as custodian
2
Held as trustees of the Hickman Family Trust
Distribution of shareholders at 17 May 2018
Size of shareholdingNumber of shareholdersShares held
1–1,0004,421 30.88% 2,523,590 0.51%
1,001–5,0006,425 44.88% 17,013,226 3.40%
5,001–10,0001,809 12.64% 13,860,727 2 .7 7%
10,001–50,0001,391 9.72% 28,824,619 5.76%
50,001–100,000143 1.00% 10,230,682 2.05%
Greater than 100,000127 0.88% 427,547,156 85.51%
Total 14,316 100% 500,000,000 100.00%
Substantial product holder notices received at 31 March 2018
ShareholderRelevant interest%Date of Notice
G A Cumming 50,949,900 10.20% 15 January 2014
K J Hickman, J Hickman & J A Callaghan
1
35,834,955 7.20% 21 November 2006
1
Held as trustees of the Hickman Family Trust.
A substantial product holder notice was received from FMR LLC and a number of other entities on 14 May 2018, disclosing
a relevant interest in 33,662,403 ordinary Ryman shares (6.73 percent). These other entities comprise FMR Investment
Management (UK) Limited, Fidelity Institutional Asset Management Trust Company, FMR Co., Inc, FIAM LLC, Fidelity
Management and Research (Hong Kong) Limited, and Fidelity Capital Markets.
RYMAN HEALTHCARE
146

Retirement villages
Anthony Wilding Retirement Village
5 Corbett Crescent, Aidanfield,
Christchurch
Bert Sutcliffe Retirement Village
2 Rangatira Road, Birkenhead,
Auckland
Bob Owens Retirement Village
112 Carmichael Road, Bethlehem,
Tauranga
Bob Scott Retirement Village
25 Graham Street, Petone,
Lower Hutt
Bruce McLaren Retirement Village
795 Chapel Road, Howick, Auckland
Charles Fleming Retirement Village
112 Parata Street, Waikanae
Charles Upham Retirement Village
24 Charles Upham Drive, Rangiora
Diana Isaac Retirement Village
1 Lady Isaac Way, Mairehau,
Christchurch
Edmund Hillary Retirement Village
221 Abbotts Way, Remuera,
Auckland
Ernest Rutherford Retirement
Village
49 Covent Drive, Stoke, Nelson
Essie Summers Retirement Village
222 Colombo Street, Beckenham,
Christchurch
Evelyn Page Retirement Village
30 Ambassador Glade, Orewa,
Auckland
Frances Hodgkins Retirement
Village
40 Fenton Crescent, St Clair, Dunedin
Grace Joel Retirement Village
184 St Heliers Bay Road, St Heliers,
Auckland
Hilda Ross Retirement Village
30 Ruakura Road, Hamilton
Jane Mander Retirement Village
262 Fairway Drive, Kamo, Whangarei
Jane Winstone Retirement Village
49 Oakland Avenue, St Johns Hill,
Whanganui
Jean Sandel Retirement Village
71 Barrett Road, New Plymouth
Julia Wallace Retirement Village
28 Dogwood Way, Clearview Park,
Palmerston North
Kiri Te Kanawa Retirement Village
12 Gwyneth Place, Lytton West,
Gisborne
Logan Campbell Retirement Village
187 Campbell Road, Greenlane,
Auckland
Malvina Major Retirement Village
134 Burma Road, Khandallah,
Wellington
Margaret Stoddart Retirement
Village
23 Bartlett Street, Riccarton,
Christchurch
Ngaio Marsh Retirement Village
95 Grants Road, Papanui, Christchurch
Possum Bourne Retirement Village
Lisle Farm Drive, Pukekohe
Princess Alexandra Retirement
Village
145 Battery Road, Napier
Rita Angus Retirement Village
66 Coutts Street, Kilbirnie, Wellington
Rowena Jackson Retirement Village
40 O’Byrne Street North, Waikiwi,
Invercargill
Shona McFarlane Retirement Village
66 Mabey Road, Lower Hutt
Weary Dunlop Retirement Village
242 Jells Road, Wheelers Hill,
Melbourne
Woodcote Retirement Village
29 Woodcote Avenue, Hornby,
Christchurch
Yvette Williams Retirement Village
383 Highgate, Roslyn, Dunedin
Directory
Registered office
Airport Business Park
92 Russley Road, Christchurch
PO Box 771, Christchurch 8042
New Zealand
Share registrar
Link Market Services
PO Box 91976, Auckland 1142
New Zealand
P: +64 9 375 5998
E: enquiries@linkmarketservices.com
Melbourne office
Level 1, Suite 11 & 12
2 Brandon Park Drive
Wheelers Hill, Melbourne
PO Box 5391, Brandon Park
Victoria 3150, Australia
Auckland office
93 Ascot Avenue, Remuera
Auckland 1051, New Zealand
ANNUAL REPORT 2018
147

Directory
New villages in the pipeline
Aberfeldie
2 Vida Street, Aberfeldie, Melbourne
Burwood East
78 Middleborough Road, Burwood East,
Melbourne
Christchurch
78 Park Terrace, Christchurch
Coburg
81a Bell Street, Coburg, Melbourne
Devonport
2 Ngataringa Road, Devonport,
Auckland
Geelong
157 South Valley Road, Highton,
Victoria
Hamilton
1765 River Road, Hamilton
Havelock North
94-148 Te Aute Road,
Havelock North
Hobsonville
3 Scott Road, Hobsonville,
Auckland
Karori
26 Donald Street, Karori, Wellington
Lincoln Road
221 Lincoln Road, Henderson,
Auckland
Lynfield
20 Tropicana Drive, Lynfield, Auckland
Mt Eliza
70 Kunyung Road, Mt Eliza,
Melbourne
Mt Martha
180 Bentons Road, Mt Martha,
Melbourne
Nellie Melba
6 Brandon Park Drive, Wheelers Hill,
Melbourne
Newtown
192 Adelaide Road, Newtown,
Wellington
For more information on any of Ryman Healthcare’s retirement villages:
(NZ) 0800 588 222
rymanhealthcare.co.nz
(AUS) 1800 922 988
rymanhealthcare.com.au
RYMAN HEALTHCARE
148

rymanhealthcare.co.nz
rymanhealthcare.com.au

Initial disclosure notice – GA Cumming Ryman Healthcare 2018 Annual General Meeting Webcast

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.