Ryman first half underlying profit of $97.1m, up 13.9%

Half Year Results22 November 2018RYMHealthcare

Ryman Healthcare Ltd, 92 Russley Rd, Avonhead, Christchurch 8140

MEDIA RELEASE NOVEMBER 23, 2018
Ryman reports unaudited first half underlying profit of $97.1 million, up 13.9%
Highlights:
 Underlying profit up 13.9% to $97.1 million
 Reported (IFRS) profit down 16.3% to $169.5 million
 Interim dividend lifted 13.7% to 10.8 cents per share
 Full year underlying profit expected to be between $223 million and $238 million
(between +10% and +17%)
 Operating cashflows up 24.4% to $217.8 million
 Net assets $2.1 billion, up 13.7% on September last year
 Increased investment in care, staff pay and development
 Ninth site secured, and second village opened, in Victoria
 Construction due to begin at third and fourth villages in Victoria
Ryman Healthcare’s unaudited first half underlying profit rose 13.9% to $97.1
million thanks to strong demand at new villages, and momentum is expected to
build in the second half, with two new Auckland villages coming on stream.
Ryman shareholders will receive an increased interim dividend of 10.8 cents per share, up 13.7%
in line with underlying profit growth, which will be paid on December 14. The record date for
entitlements is December 7.
Reported (IFRS) profit, which includes unrealised fair value gains on investment property, was
$169.5 million, down $33.1 million (16.3%). Last year’s first half result was boosted by changes
to the independent valuation assumptions. There have been no significant changes to the
assumptions in the first half.
The growth in underlying profit was driven by strong development margins, particularly from
Ryman’s second village in Melbourne. Ryman’s unique villages and high-quality care offering
continued to be in strong demand, with low resale stock and care occupancy in established
villages at 97%. Operating cashflows were $217.8 million, up 24.4% on the same period last year.
“We’ve had another solid first half result as new villages have come on stream and we have a
great pipeline of villages to develop. Demand for our new villages is strong, with the highest
ever value of contracts for new units sold off plan going into the second half,” Chairman Dr
David Kerr said.
“We’re in a strong financial position to support our care ambitions; net assets passed the $2
billion mark and we invested a record $304 million in new and existing villages in the first half.”

Ryman Healthcare Ltd, 92 Russley Rd, Avonhead, Christchurch 8140

“Investment in our core business – the care of residents and the happiness of the staff who look
after them – stepped up in the first half and we are committed to constantly improving.”
Ryman’s New Zealand village teams achieved the best audit results in the company’s history,
with 23 care centres now having ‘gold standard’ four-year Ministry of Health accreditation, up
from 15 last year.
“The rollout of myRyman Care in New Zealand finished in the first half; we are delighted with
the benefits to residents, and to see staff spending less time on paperwork. We are also really
excited about the potential for using the data to give us even better insights into resident care,”
said Dr Kerr.
Ryman had increased pay rates in June for its registered nurses to compete with the public
sector, despite no additional government funding, at a cost of $5 million in this financial year
alone.
“This investment, along with other initiatives, has ensured that we are not in the position of
many other aged care providers who are reporting significant nursing vacancies,” Dr Kerr said.
Chief Executive Gordon MacLeod said a highlight of the first half was progress in Victoria,
where Ryman now has nine sites in total.
“Welcoming our first residents to Nellie Melba, our second village in Melbourne, is another
significant milestone in our continued expansion into Victoria.
“We’ve now got two villages open, two about to start and a number of development
applications in the pipeline. We’re building momentum towards achieving our target of having
five villages open in Victoria by 2020,’’ Mr MacLeod said.
Ryman bought two new sites - at Ocean Grove in Victoria and Aberfeldie in Melbourne - during
the first half, and development approval was received for a new village at Burwood East.
Ryman is in advanced discussions with the council over its application to build in Geelong and
applications are due to be lodged in the next few months for its Aberfeldie, Mt Martha and Mt
Eliza villages. Ryman is also expecting to have work under way at its new villages at Burwood
East and Coburg shortly.
Expansion continued in New Zealand. Ryman has received consent to build a new village at
Lincoln Road in Auckland, and planning applications are due to be lodged over the next three or
four months for villages in Karori, Havelock North and Hobsonville.
Ryman’s Devonport and Lynfield villages will come on stream in the second half, and work has
restarted at River Road in Hamilton.
On outlook, Dr Kerr said full year underlying profit was expected to be in the range of $223
million to $238 million.
“We’ve had a good first half and it’s really exciting to see our progress in Victoria where, by
2055, the 80-plus population is expected to exceed one million. Just like in New Zealand, our
long-term success is defined by building trust and communities where people choose to live and
work. That’s why we will continue to invest in developing our people, care and systems so that
our residents and staff are delighted with their choice.”

Ryman Healthcare Ltd, 92 Russley Rd, Avonhead, Christchurch 8140

New village programme:
Greenlane, Auckland: Final stage nearing completion.
Brandon Park, Melbourne: First residents in, new care centre due to open early 2019.
Lynfield, Auckland: First residents due late November.
Devonport, Auckland: First residents due 2019.
River Rd, Hamilton: Earth works under way.
Coburg, Melbourne: Early site works due to begin.
Burwood East, Melbourne: Early site works due to begin.
Lincoln Rd, Auckland: Consent received, work set to begin.
New villages in planning and design phase:
Geelong, Victoria.
Mt Eliza, Victoria.
Mt Martha, Victoria.
Aberfeldie, Victoria.
Ocean Grove, Victoria.
Hobsonville, Auckland.
Havelock North, Hawkes Bay.
Karori, Wellington.
Newtown, Wellington.
Park Terrace, Christchurch.
About Ryman: Ryman Healthcare was founded in Christchurch in 1984 and owns and
operates 33 retirement villages in New Zealand and Australia. Ryman villages are home to
11,000 residents, and the company employs over 5,000 staff.
Contacts: For media information or images contact David King, Corporate Affairs Manager, on
021 499 602 (+64 21 499 602) or email david.king@rymanhealthcare.com.
For investor relations information contact Michelle Perkins, Investor Relations Manager, on 027
222 9684 (+64 27 222 9684) or email michelle.perkins@rymanhealthcare.com.

RYMAN HEALTHCARE LIMITED
KEY STATISTICS

Sept 18 Sept 17 Mar 18
Half Year Half Year Full Year
Unaudited Unaudited Audited

Underlying Profit (non-GAAP)
1
($m) 97.1 85.2 203.5
less deferred tax expense ($m) (0.4) (0.9) (0.6)
plus unrealised fair-value movement ($m) 72.8 118.3 185.3
Reported Profit after tax ($m) 169.5 202.6 388.2

Operating Cash Flows ($m) 217.8 175.1 349.3

Earnings per share (cents) – Basic and diluted 33.9 40.5 77.6

Dividend per share (cents) 10.8 9.5 20.4

Net Tangible Assets per share (cents)
– Basic and
diluted
2

405.6 358.4 384.0

Sales of Occupation Right Agreements

New Units (no.) 168 157 458
Existing Units (no.) 405 394 825
Total (no.) 573 551 1,283

New Units ($m) 120.4 90.5 307.3
Existing Units ($m) 202.1 201.8 414.6
Total ($m) 322.5 292.3 721.9

Asset Base

Retirement Village Units (no.) 6,613 6,060 6,414
Residential Care Beds (no.) 3,448 3,281 3,367
Total (no.) 10,061 9,341 9,781

Landbank - to be developed
Retirement Village Units (no.) 4,237 4,036 4,232
Residential Care Beds (no.) 1,841 1,604 1,720
Total (no.) 6,078 5,640 5,952

1
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying profit
does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar
financial information presented by other entities. Underlying profit is used by the Group, in conjunction with
other measures, to measure performance. Underlying profit is a measure which the Group uses consistently
across reporting periods.

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.

2
Net tangible assets exclude intangible assets across all periods presented.

---

RYMAN HEALTHCARE LIMITED
UNAUDITED RESULTS FOR ANNOUNCEMENT TO THE MARKET

Reporting Period Six months to 30 September 2018
Previous Reporting Period Six months to 30 September 2017

Amount (000s) Percentage change
Revenue from ordinary activities $187,190 + 13.3%
Total Income from ordinary
activities
$342,628 - 2.6%
Underlying Profit (non-GAAP)
1
$97,066 + 13.9%
Profit (loss) from ordinary
activities after tax attributable
to security holders
$169,533 - 16.3%
Net profit (loss) attributable to
security holders
$169,533 - 16.3%

Interim Dividend Amount per security Imputed amount per security
10.8 cents Not imputed

Record Date 7 December 2018
Dividend Payment Date 14 December 2018

Audit The financial statements for the six months ended 30 September 2018
have not been audited.

Comments Refer to Media Release below

1
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying profit
does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar
financial information presented by other entities. Underlying profit is used by the Group, in conjunction with
other measures, to measure performance. Underlying profit is a measure which the Group uses consistently
across reporting periods.

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, and is reconciled to reported profit in the key statistics attached to this release.

RYMAN HEALTHCARE LIMITED
Consolidated income statement
For the six months ended 30 September 2018

Six months ended Six months ended Year ended
30 Se
pt 2018 30 Sept 2017 31 March 2018
unaudited unaudited audited
Notes $000 $000 $000

Care fees

147,748 130,494 270,483
Mana
gement fees

38,840 33,756 70,087
Interest received

211 201 441
Other income

391 725 1,528
Total revenue

187,190 165,176 342,539

Fai
r-value movement of
investment properties

3 155,438 186,775 351,514
Total income

342,628 351,951 694,053

Operating expenses

(152,528) (130,506) (268,040)
Depreciation and
amortisation ex
pense

(11,250) (9,832) (20,580)
Finance costs

(8,958) (8,045) (16,577)
Total ex
penses

(172,736) (148,383) (305,197)

Profit before income tax

169,892 203,568 388,856
Income-tax ex
pense

(359) (938) (640)
Profit for the
period 169,533 202,630 388,216

Earnin
gs per share

Basic and diluted (cents
per share)

33.9 40.5 77.6

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 interim financial statements.

RYMAN HEALTHCARE LIMITED
Consolidated statement of comprehensive income
For the six months ended 30 September 2018

Six months ended Six months ended Year ended
30 Sept 2018 30 Sept 2017 31 March 2018
unaudited unaudited audited
$000 $000 $000

Profit for the
period 169,533 202,630 388,216

Items that may be reclassified subsequently to profit or loss
Fai
r-value movement and reclassification
of interest-rate swa
ps (753) (523)

(725)
Movement in deferred tax related to
interest-rate swa
ps 211 146

203
(Loss) / Gains on hedge of foreign-owned
subsidiar
y net assets (2,051) 150

2,193
Gain / (Loss) on translation of foreign
o
perations 5,375 (251) (5,502)

2,782
(478) (3,831)
Items that will not be reclassified subsequently to profit or loss
Revaluation of property, plant and
e
quipment (unrealised) - - -

- - -

Other com
prehensive income 2,782 (478) (3,831)
Total comprehensive income 172,315 202,152 384,385

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 interim financial statements.

RYMAN HEALTHCARE LIMITED
Consolidated statement of changes in equity
For the six months ended 30 September 2018

Issued
ca
pital
Asset
revaluation
reserve
Interest-
rate
swap
reserve
Foreign-
currency
translation
reserve
Treasury
stock
Retained
earnings
Total
equity

$000 $000 $000 $000 $000 $000 $000

Six months ended 30 Sept 2017 unaudited

Opening balance
33,290 233,319
(5,391) 1,066 (20,540) 1,410,347 1,652,091
Profit and total comprehensive
income for the period
- -
(377) (101) - 202,630 202,152
Treasury stock movement
- - - -
(2,295) - (2,295)
Dividends paid to shareholders
- - - - -
(46,500) (46,500)
Closin
g balance at 30 Sept 2017 33,290 233,319 (5,768) 965 (22,835) 1,566,477 1,805,448

Year ended 31 March 2018 audited

Opening balance
33,290 233,319
(5,391) 1,066 (20,540) 1,410,347 1,652,091
Profit and total comprehensive
income for the year

-
- (522) (3,309) - 388,216 384,385
Treasury stock movement
-
- - - (1,957) - (1,957)
Dividends paid to shareholders
-
- - - - (94,000) (94,000)
Closing balance at 31 March
2018 33,290 233,319
(5,913) (2,243) (22,497) 1,704,563 1,940,519

Six months ended 30 Sept 2018 unaudited

Opening balance
33,290 233,319
(5,913) (2,243) (22,497) 1,704,563 1,940,519
Profit and total comprehensive
income for the period
- - (542) 3,324 - 169,533 172,315
Treasury stock movement
- - - -
(5,611) - (5,611)
Dividends paid to shareholders
- - - - -
(54,500) (54,500)
Closin
g balance at 30 Sept 2018 33,290 233,319 (6,455) 1,081 (28,108) 1,819,596 2,052,723

The accompanying notes form part of these interim financial statements.

RYMAN HEALTHCARE LIMITED
Consolidated balance sheet
At 30 September 2018

The accompanying notes form part of these interim financial statements.

30 Sept 2018 30 Sept 2017 31 March 2018
unaudited unaudited audited
Notes $000 $000 $000

Assets
Trade and other receivables 298,880 248,034 357,483
Advances to em
ployees 8,524 6,264 5,836
Pro
perty, plant and equipment 1,093,717 1,011,950 1,014,514
Investment
properties 3 4,754,479 4,002,859 4,398,304
Intan
gible assets 24,574 13,390 20,713
Total assets

6,180,174 5,282,497 5,796,850

E
quity

Issued ca
pital
6
33,290 33,290 33,290
Asset revaluation reserve

233,319 233,319 233,319
Interest-rate swa
p reserve

(6,455) (5,768) (5,913)
Forei
gn-currency translation reserve 1,081 965 (2,243)
Treasur
y stock

(28,108) (22,835) (22,497)
Retained earnin
gs

1,819,596 1,566,477 1,704,563
Total e
quity

2,052,723 1,805,448 1,940,519

Liabilities

Trade and other payables 7
76,990 77,491 98,308
Employee entitlements
22,607 18,491 20,237
Revenue in advance
55,071 49,064 51,955
Interest-rate swaps
8,965 8,010 8,212
Refundable accommodation
de
posits

31,189 29,485 30,757
Bank loans (secured)
1,214,337 945,038 1,060,493
Occupancy advances
(non-interest bearing)

4 2,646,458 2,277,429 2,514,683
Deferred tax liability (net)
71,834 72,041 71,686
Total liabilities 4,127,451 3,477,049 3,856,331

Total e
quity and liabilities 6,180,174 5,282,497 5,796,850

Net tangible assets
Basic and diluted
(cents per share) 405.6 358.4 384.0

RYMAN HEALTHCARE LIMITED
Consolidated statement of cash flows
For the six months ended 30 September 2018

Six months
ended
Six months
ended Year ended
30 Se
pt 2018 30 Sept 2017 31 March 2018
unaudited unaudited audited
Notes $000 $000 $000

O
perating activities

Recei
pts from residents

518,267 423,887 875,140
Interest received

265 160 515
Payments to suppliers and
em
ployees

(149,785) (132,753)

(270,231)
Pa
yments to residents

(145,286) (109,078) (241,676)
Interest
paid

(5,624) (7,105) (14,491)
Net o
perating cash flows 2 217,837 175,111 349,257

Investin
g activities

Purchase of property, plant and
equipment, and intangible assets

(107,624) (114,965)

(185,304)
Purchase of investment
properties

(181,546) (106,683)

(269,936)
Ca
pitalised interest paid

(14,775) (10,985) (22,701)
Advances to employees

(2,688) (1,380) (952)
Net investing cash flows

(306,633) (234,013) (478,893)

Financin
g activities

Drawdown of bank loans
(net)

148,907 107,697

225,592
Dividends
paid

(54,500) (46,500) (94,000)
Purchase of treasury stock (net)

(5,611) (2,295) (1,956)
Net financing cash flows

88,796 58,902 129,636

Net increase in cash and
cash e
quivalents

- - -
Cash and cash equivalents at
the beginning of the period

- - -
Cash and cash equivalents
at the end of the
period

- - -

The accompanying notes form part of these interim financial statements.

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2018

1. Summary of significant accounting policies

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 unaudited condensed consolidated interim 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 Accounting Standard 34 (NZ IAS 34) Interim Financial Reporting and International
Accounting Standard 34 (IAS 34) Interim Financial Reporting.

Basis of preparation

The financial statements for the six months ended 30 September 2018 and the comparative six months ended 30
September 2017 are unaudited.

Apart from the new standards adopted in the current period (see below) these financial statements have been
prepared under the same accounting policies and methods as the Company’s Annual Report at 31 March 2018.
These financial statements should be read in conjunction with the financial statements and related notes included
in the Company’s Annual Report for the year ended 31 March 2018.

The financial statements were approved by the Board of Directors on 22 November 2018.

The information is presented in thousands of New Zealand dollars.

All references to AUD refer to Australian dollars.

Adoption of new and revised standards and interpretations

In the current period, the Group adopted all mandatory new and amended standards and interpretations. During
the period, NZ IFRS 15 Revenue from Contracts with Customers and NZ IFRS 9 Financial Instruments have been adopted
with no material impact on the accounting policies or disclosures of the Group.

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2018

2. Reconciliation of net profit after tax for the period with net cash flow from operating activities

Six months ended Six months ended Year ended
30 Se
pt 2018 30 Sept 2017 31 March 2018
unaudited unaudited audited
$000 $000 $000

Net profit after tax 169,533 202,630 388,216

Adjusted for:
Movements in balance-sheet items
Occupancy advances 157,615 167,034 428,670
Refundable accommodation de
posits 432 1,012 2,284
Accrued management fees (25,417) (26,901) (51,571)
Revenue in advance 3,116 4,362 7,253
Trade and other payables (271) (8,317) (2,402)
Trade and other receivables 58,603 8,580 (100,869)
Em
ployee entitlements 2,370 2,324 4,070

Non-cash items:
De
preciation and amortisation 11,250 9,832 20,580
Deferred tax 359 938 640
Unrealised foreign-exchange loss (4,315) 392 3,900

Adjusted for:
Fai
r-value movement of investment
properties (155,438) (186,775) (351,514)

Net operating cash flows 217,837 175,111 349,257

Net operating cash flows include occupancy advance receipts from retirement village residents of $370.6
million (six months ended 30 September 2017: $292.8 million and year ended 31 March 2018: $603.7 million).

Also included in operating cash flows are net payments from refundable accommodation deposits of $0.4
million (six months ended 30 September 2017: net receipts of $1.1 million and year ended 31 March 2018:
net receipts of $3.1 million).

Net operating cash flows also include management fees collected of $20.2 million (six months ended 30
September 2017: $14.9 million and year ended 31 March 2018: $34.7 million).

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2018

3. Investment properties

Six months ended Six months ended Year ended
30 Se
pt 2018 30 Sept 2017 31 March 2018
unaudited unaudited audited
$000 $000 $000
At fair value
Balance at beginning of financial period 4,398,304 3,661,445 3,661,445

Additions 192,213 155,041 391,221
Fai
r-value movement:
Realised fai
r-value movement:
 new retirement-villa
ge units
32,850 15,612 58,955
 existin
g retirement-village units
49,762 52,844 107,233
82,612 68,456 166,188
Unrealised fair-value movement 72,826 118,319 185,326
155,438 186,775 351,514

Net foreign-currency exchange
differences 8,524
(402) (5,876)

Net movement for period 356,175 341,414 736,859

Balance at end of financial
period 4,754,479 4,002,859 4,398,304

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.

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 30 September 2018.

The valuer used significant assumptions that include long-term house-price inflation (ranging from 0.5 percent
to 3.5 percent nominal) (30 September 2017 and 31 March 2018: 0.5 percent to 3.5 percent) and discount
rate (ranging from 12 percent to 16.5 percent) (30 September 2017 and 31 March 2018: 12 percent to 16
percent).

Investment property includes investment property work in progress of $329.0 million (six months ended 30
September 2017: $198.4 million and year ended 31 March 2018: $252.9 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 $10m
over a remaining 6-month period (30 September 2017: $17.5m over an 18-month period and 31 March 2018:
$17.5m over an 18-month period). The estimates are based on currently available information.

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2018

4. Occupancy advances (non-interest bearing)

Six months ended Six months ended Year ended
30 Se
pt 2018 30 Sept 2017 31 March 2018
unaudited unaudited audited
$000 $000 $000

Gross occupancy advances (see
below
) 2,993,929 2,574,678 2,836,314
Less management fees and resident
loans (347,471) (297,249) (321,631)
Closing balance 2,646,458 2,277,429 2,514,683

Movement in gross occupancy advances

Opening balance
2,836,314 2,407,644 2,407,644
Plus net increases in occupancy advances:
 new retirement-village units
120,447 90,520 307,282
 existing retirement-village units.
49,762 52,844 107,233

Net foreign-currency exchange
differences 5,245
(305)

(4,457)

(Decrease)/increase in occupancy
advance receivables
(17,839) 23,975

18,612
Closing balance 2,993,929 2,574,678 2,836,314

Gross occupancy advances are non-interest bearing.

5. Dividend

On 22 November 2018 an interim dividend of 10.8 cents per share was declared and will be paid on
14 December 2018 (prior year: 9.5 cents per share). The record date for entitlements is 7 December
2018.

6. Share capital

Issued and paid-up capital consists of 500,000,000 fully paid ordinary shares (30 September 2017:
500,000,000 and 31 March 2018: 500,000,000). 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 (30 September 2017: 500,000,000 and 31 March 2018: 500,000,000 shares).

Shares purchased on market under the senior management share scheme are treated as treasury stock
until vesting to the employee.

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2018

7. Trade and other payables

Trade payables are typically paid within 30 days of invoice date or the 20
th
of the month following the
invoice date. Other payables at 30 September 2018 includes $19.6 million (30 September 2017: $39.3
million and 31 March 2018: $45.5 million) for the purchase of land.

8. Operating segments

The Ryman Group operates in one industry, being the provision of integrated retirement villages for older
people 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 Zealand
$000
Australia
$000
Group
$000

Six months ended 30 Sept 2018 unaudited
Revenue 176,872 10,318 187,190

Underlying profit (non-GAAP) 75,659 21,407 97,066
less deferred tax ex
pense (359) - (359)

plus unrealised fair-value movement 60,701 12,125 72,826
Profit for the period 136,001 33,532 169,533

Non-current assets 5,237,233 635,537 5,872,770

Six months ended 30 Se
pt 2017 unaudited
Revenue 155,994 9,182 165,176

Underlying profit (non-GAAP) 80,899 4,350 85,249
less deferred tax ex
pense (938) - (938)
plus unrealised fai
r-value movement 118,470 (151) 118,319
Profit for the period 198,431 4,199 202,630

Non-current assets 4,596,719 431,480 5,028,199

Year ended 31 March 2018 audited
Revenue 324,672 17,867 342,539

Underlying profit (non-GAAP) 184,813 18,717 203,530
less deferred tax ex
pense (640) - (640)
plus unrealised fai
r-value movement 179,164 6,162 185,326
Profit for the yea
r 363,337 24,879 388,216

Non-current assets 4,939,996 493,535 5,433,531

Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying
profit does not have a standardised meaning prescribed by GAAP and therefore may not be comparable
to similar financial information presented by other entities. Underlying profit is used by the Group, in
conjunction with other measures, to measure performance. Underlying profit is a measure which the
Group uses consistently across reporting periods.

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.

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2018

9. Commitments

The Group had commitments relating to construction contracts amounting to $129.9 million at 30
September 2018 (30 September 2017: $87.9 million and 31 March 2018: $101.2 million).

10. Subsequent events

Other than the dividends in note 5, there are no subsequent events.

---

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03 366 406903 366 486122112018
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EMAIL: announce@nzx.com
Notice of event affecting securities
1
Ryman Healthcare Limited
David BennettDirectors' Resolution

---

Ryman Healthcare
Half year result –September 2018

First half highlights
Unaudited underlying profit* up 13.9%
to $97.1 million
Reported profit down 16.3%
to $169.5 million
Interim dividend
10.8 cents per share; up 13.7%
Operating cashflows $217.8 million, up
24.4%
16 new villages in the pipeline, nine in
NZ and seven in Victoria
* Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the
period. Refer to appendix 1 for a breakdown of underlying profit.
2

Net assets
3
-
$0.5bn
$1.0bn
$1.5bn
$2.0bn
$2.5bn
Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17
Sep 18

Nurses
4

Four year certification – ‘gold standard’ of care
Source: Ministry of Health. Percentage of care centres with four years’ certification by operator (aged care providers with 15 or more care centres). Data as at 22 November 2018.
6
74%
35%
31%
33%
27%
44%
41%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
RymanProvider AProvider BProvider CProvider DProvider EProvider FProvider G

7
Rowena JacksonMalvina Major

8
Dementia summit

Devonport
construction
team
9

Population growth 80+
Source: Statistics NZ, Australian Bureau of Statistics (Series A)
11
-
0.2m
0.4m
0.6m
0.8m
1.0m
1.2m
20082013201820232028203320382043204820532058
NZ total population aged 80+Victoria total population aged 80+

Population growth 80+
Source: Statistics NZ, Australian Bureau of Statistics (Series A)
12
-
0.2m
0.4m
0.6m
0.8m
1.0m
1.2m
20082013201820232028203320382043204820532058
NZ total population aged 80+Victoria total population aged 80+

16
Ocean Grove –Victoria

Nine sites in Victoria

Aberfeldie
18
Aberfeldie – Melbourne

Geelong – Victoria
19

20
Nellie Melba – Melbourne

Weary Dunlop (Wheelers Hill)
Nellie Melba (Brandon Park)
Coburg
Burwood East
Geelong
Mt Eliza
Mt Martha
Aberfeldie
Ocean Grove
Pipeline
of 7
villages
VillageDesignConsenting
Development
approval
ConstructionVillage open
21
Pipeline of 7 villages in Victoria

22
Lincoln Road – Auckland

23
River Road –Hamilton

24
Lynfield – Auckland

25
William Sanders – Devonport, Auckland

Lynfield
Devonport
River Road
Lincoln Road
Karori
Havelock North
Hobsonville
Park Terrace
Newtown
Pipeline
of 9
villages
26
Pipeline of 9 villages in New Zealand
VillageDesignConsentingResource consentConstruction

Montage of Essie Summers art exhibition (include Margaret)
29

30
Bert Sutcliffe – Auckland
Photo courtesy of independent resident Graham Orbell

First half underlying profit growth
31
-
$20m
$40m
$60m
$80m
$100m
200220032004200520062007200820092010201120122013201420152016201720182019

First half operating cashflows
32
-
$50m
$100m
$150m
$200m
$250m
Sep 14Sep 15Sep 16Sep 17Sep 18

1H19 investing cash flows -$304m
33
$48m
$208m
$20m
$28m
-
$50m
$100m
$150m
$200m
$250m
$300m
$350m
1H182H181H19
Purchase of landNew villagesCare / systemsVillage upgrades

Total assets
34
-
$1bn
$2bn
$3bn
$4bn
$5bn
$6bn
$7bn
Mar 16Mar 17Mar 18Sep 18
Bank debtTotal assets

Development margin
*Development margin for the period to 30 September 2018. All other values full year.
35
-
10%
20%
30%
20122013201420152016201720182019*

$855 million resales bank
*Resales bank at 30 September 2018. All other values at 31 March. The resale bank represents the extent that the current
price exceeds the price paid by the current resident for the unit's occupancy rights.
36
-
$200m
$400m
$600m
$800m
$1,000m
201420152016201720182019*
New ZealandVictoria

Presales
Note: Presales are unconditional occupation right agreements which have been entered into by residents but have not
been booked as the unit is not yet near complete
37
-
$50m
$100m
$150m
$200m
$250m
1H162H161H172H171H182H181H19

Sales price vs median house price
38
-
$0.2m
$0.4m
$0.6m
$0.8m
$1.0m
$1.2m
$1.4m
MelbourneAuckland
Median house price - village areasRyman - 2 bed IndependentRyman - Serviced

Long term capital efficiency
$25 million raised at IPO in 1999
Invested $3.4 billion in portfolio
since 1999 with no fresh capital
Dividends of over $740 million paid
since float*
Self-funded growth
Strong balance sheet
* Includes 1H19 dividend of 10.8 cents per share that has been declared and is payable on
14 December 2018.
39

Underlying profit growth
40
-
$50m
$100m
$150m
$200m
$250m
200220032004200520062007200820092010201120122013201420152016201720182019
First halfSecond halfTarget range

41
Appendices

Appendix 1: Reported profit
Underlying profit (non-GAAP)$97.1m
Unrealised revaluation of investment properties+$72.8m
Deferred tax expense-$0.4m
Reported net profit$169.5m
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period.
Underlying profit does not have a standardised meaning prescribed by GAAP and therefore
may not be comparable to similar financial information presented by other entities. Underlying
profit is used by the Group, in conjunction with other measures, to measure performance.
Underlying profit is a measure which the Group uses consistently across reporting periods.
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.
42

Appendix 2:
First half highlights
Underlying profit up 13.9% to $97.1 million
Reported profit down 16.3% to $169.5 million
Interim dividend 10.8 cents per share, up 13.7%
Operating cashflows $217.8 million, up 24.4%
Net assets $2.1 billion, up 13.7%
Increased investment in care, staff pay and
development
Ninth site secured, and second village opened,
in Victoria
Construction due to begin at third and fourth
villages in Victoria
43

Appendix 3: Sale of occupation rights
44
Half yearHalf yearFull year
Sep 18Sep 17Mar 18
Existing units
Independent186 184 377
Serviced219 210 448
405 394 825
New units
Independent120 111 365
Serviced48 46 93
168 157 458

Appendix 4: Development
45
Half yearHalf yearFull year
Sep 18Sep 17Mar 18
Units and beds built
Retirement village units built199 112 446
Aged care beds built81 -86
280 112 532
Half yearHalf yearFull year
Sep 18Sep 17Mar 18
Total retirement village units
Independent4,690 4,241 4,513
Serviced1,923 1,819 1,901
6,613 6,060 6,414
Total aged care beds3,448 3,281 3,367
Total retirement village units and beds10,061 9,341 9,781

Appendix 5: Margins
46
Half yearHalf yearFull year
ReferenceSep 18Sep 17Mar 18
New sales$000s$000s$000s
Realised fair-value movement(Note 3)32,850 15,612 58,955
Sale of occupation rights(Key statistics)120,447 90,520 307,282
Gross development margin27%17%19%
Resales
Realised fair-value movement(Note 3)49,762 52,844 107,233
Sale of occupation rights(Key statistics)202,081 201,830 414,619
Gross resales margin25%26%26%

Appendix 6: Asset base
47
New Zealand (excluding Auckland)
VillageLocation
HospitalDementiaResthomeServicedIndependentTo t a l
Anthony WildingChristchurch8033 35 50 110 308
Bob OwensTauranga4040 40 79 218 417
Bob ScottPetone4040 34 89 207 410
Charles FlemingWaikanae4040 40 79 201 400
Charles UphamRangiora4040 40 93 225 438
Diana IsaacChristchurch4040 40 79 256 455
Ernest RutherfordNelson4925 20 75 124 293
Essie SummersChristchurch4124 30 58 22 175
Frances HodgkinsDunedin--51 32 42 125
Hilda RossHamilton6840 43 51 167 369
Jane ManderWhangarei6032 20 71 183 366
Jane WinstoneWanganui2020 29 50 54 173
Jean Sandel New Plymouth3933 39 62 171 344
Julia WallacePalmerston North4321 20 50 111 245
Kiri Te KanawaGisborne4615 34 62 105 262
Malvina MajorWellington90-30 39 117 276
Margaret StoddartChristchurch--41 25 20 86
Ngaio MarshChristchurch81-30 40 119 270
Princess AlexandraNapier6024 24 54 70 232
Rita AngusWellington49-20 50 99 218
Rowena JacksonInvercargill7026 61 46 103 306
Shona McFarlaneLower Hutt59-20 50 130 259
WoodcoteChristchurch--49 7 18 74
Yvette WilliamsDunedin5730 3 32 -122
Total units & beds New Zealand (excluding Auckland)1,112 523 793 1,323 2,872 6,623

Appendix 6: Asset base
48
Auckland
VillageLocation
HospitalDementiaResthomeServicedIndependentTo t a l
Bert SutcliffeBirkenhead40 40 40 81 225 426
Bruce McLarenHowick41 40 42 74 192 389
Edmund HillaryRemuera114 30 50 60 373 627
Evelyn PageOrewa60 37 20 66 248 431
Grace JoelSt Helliers77 -20 80 69 246
LynfieldAuckland----40 40
Logan CampbellGreenlane43 30 43 82 106 304
Possum BournePukekohe40 40 40 84 259 463
Total units & beds Auckland415 217 255 527 1,512 2,926
Total units & beds New Zealand1,527 740 1,048 1,850 4,384 9,549
Victoria
VillageLocation
HospitalDementiaResthomeServicedIndependentTo t a l
Weary DunlopMelbourne30 20 32 51 200 333
Nellie MelbaMelbourne--51 22 106 179
Total units & beds Victoria30 20 83 73 306 512
New Zealand and Victoria
Total units & beds1,557 760 1,131 1,923 4,690 10,061
To t a l% of asset base
Care (hospital, dementia, resthome and serviced)5,371 53%
Independent4,690 47%
Total units & beds10,061100%

Appendix 7: Land bank (New Zealand)
The land bank is subject to resource and building consent.
49
Existing villages
Location
HospitalDementiaResthomeServicedIndependentTo t a l
Jean Sandel
New Plymouth----59 59
Bob ScottLower Hutt----47 47
Logan CampbellAuckland----10 10
Charles UphamRangiora----36 36
Total existing villages----152 152
New sites
Location
HospitalDementiaResthomeServicedIndependentTo t a l
William Sanders
Auckland40 36 36 77 192 381
LynfieldAuckland42 42 40 86 292 502
River RoadHamilton40 40 40 93 248 461
Lincoln RoadAuckland42 37 42 77 186 384
HobsonvilleAuckland40 40 40 80 250 450
KaroriWellington40 40 40 70 175 365
Park TerraceChristchurch35 20 16 66 53 190
NewtownWellington28 20 28 46 55 177
Diana IsaacChristchurch----50 50
Havelock NorthHawkes Bay34 33 33 59 166 325
Total new sites341 308 315 654 1,667 3,285
Total landbank New Zealand 341 308 315 654 1,819 3,437

Appendix 7: Land bank (Australia)
50
The land bank is subject to resource and building consent.
* In November 2018 Ryman entered into an unconditional sale and purchase agreement for the acquisition of land at Ocean Grove.
Existing villagesLocation
HospitalDementiaResthomeServicedIndependentTo t a l
Nellie Melba
Melbourne80 39 29 72 222 442
Total existing villages80 39 29 72 222 442
New sites
Location
HospitalDementiaResthomeServicedIndependentTo t a l
Coburg
Melbourne35 35 35 85 221 411
Burwood EastMelbourne44 44 44 91 174 397
Mount ElizaMelbourne40 40 40 70 315 505
GeelongVictoria34 33 33 60 86 246
Mount MarthaMelbourne20 20 40 56 79 215
AberfeldieMelbourne24 24 24 32 80 184
Ocean Grove*Victoria40 40 40 53 68 241
Total new sites237 236 256 447 1,023 2,199
Total landbank Australia317 275 285 519 1,245 2,641
Total land bank New Zealand & Australia6585836001,1733,0646,078
To t a l% of landbank
Care (hospital, dementia, resthome and serviced)3,014 50%
Independent3,064 50%
Total land bank6,078100%

Appendix 8: Cash management fees
51
Half yearHalf yearFull year
ReferenceSep 18Sep 17Mar 18
$000s$000s$000s
Accrued management fees – opening(Note 4)321,631 270,370 270,370
Less: Accrued management fees – closing(Note 4)(347,471)(297,249)(321,631)
Movement in accrued management fees(25,840)(26,879)(51,261)
Plus: DMF incomeIncome statement38,840 33,756 70,087
Plus: Revenue in advance movement(Note 2)3,116 4,362 7,253
Plus: GST / accommodation credit adjustmentNot disclosed423 (5)(310)
Plus: Movement in resident loanNot disclosed3,757 3,649 8,999
Cash management fees20,296 14,883 34,768

Appendix 9: Investment property
summary
52
CBRE unit price inflation assumption
Discount
rate
At 30 September 2018
Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland0.9%1.9%2.4%3.0%3.5%12.5%
Rest of New Zealand0.9%1.5%2.0%2.8%3.3%13.4%
Melbourne2.0%2.8%3.6%4.0%3.9%14.1%
CBRE unit price inflation assumption
Discount
rate
At 30 September 2017
Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland1.0%2.0%2.4%3.0%3.5%12.5%
Rest of New Zealand0.9%1.5%2.0%2.8%3.3%13.4%
Melbourne3.6%3.6%3.6%3.8%3.9%14.0%
CBRE unit price inflation assumption
Discount
rate
At 31 March 2017
Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland2.0%2.0%2.8%2.8%3.1%12.4%
Rest of New Zealand2.0%2.0%2.1%2.1%2.5%13.4%
Melbourne2.0%2.0%2.0%2.0%2.5%14.0%

Appendix 10: Operating cash flows
53
Half yearHalf yearFull year
Sep 18Sep 17Mar 18
$000s$000s$000s
Resident receipts148,059 129,971 268,359
Refundable accommodation deposits (net)(417)1,069 3,101
Development sales162,619130,324 238,820
Resales208,006162,523 364,860
Total receipts from residents518,267423,887 875,140
Interest received265160 515
Payments to suppliers and employees(149,785)(132,753)(270,231)
Payments to residents(145,286)(109,078)(241,676)
Interest paid(5,624)(7,105)(14,491)
Net operating cash per the cash flow statement217,837 175,111 349,257

Appendix 11: Available resale stock
Half yearHalf yearFull year
Sep 18Sep 17Mar 18
Independent living units42 16 26
Serviced apartments36 30 25
Total resales stock78 46 51
Total retirement portfolio6,6136,060 6,414
Uncontracted stock percentage*1.2%0.8%0.8%
* Uncontracted resales stock as a percentage of total retirement unit portfolio
54
0.9%
1.4%
1.0%
1.3%
1.4%
1.2%
0.8%
0.5%
0.8%
0.8%
1.2%
-
0.5%
1.0%
1.5%
2.0%
2.5%
1H142H141H152H151H162H161H172H171H182H181H19

Appendix 12: Capital management
* Gearing ratio calculated as bank debt / bank debt plus equity
55
Half yearHalf yearFull year
Gearing ($m)Sep 18Sep 17Mar 18
Net debt$1,214 $945 $1,060
Net assets$2,053 $1,805 $1,941
Gearing ratio *37%34%35%
$307m
$572m
$150m
$46m
$28m
$11m
$100m
-
$200m
$400m
$600m
$800m
$1,000m
$1,200m
$1,400m
Sep 17
Mar 18
Sep 18
Use of debt
Systems / care
investment
Generators
Other village capex
Village upgrades
New sale debtors
Development WIP
Undeveloped land

Appendix 13: Resident average age and tenure (years)
Average ageSep 18Sep 17Mar 18
Independent82.382.282.2
Serviced87.587.587.6
Care centre86.486.286.2
Average tenure - vacated unitsSep 18Sep 17Mar 18
Independent5.35.44.8
Serviced2.62.93.0
56
80
81
82
83
84
85
86
87
88
Sep 12
Mar 13
Sep 13
Mar 14
Sep 14
Mar 15
Sep 15
Mar 16
Sep 16
Mar 17
Sep 17
Mar 18
Sep 18
IndependentServicedCare centre

Lynfield – NZ
Devonport – NZ
River Road –NZ
Coburg – Victoria
Burwood East – Victoria
Lincoln Road – NZ
Geelong – Victoria
Karori – NZ
Mt Eliza –Victoria
Havelock North – NZ
Mt Martha – Victoria
Hobsonville – NZ
Aberfeldie – Victoria
Park Terrace – NZ
Newtown – NZ
Ocean Grove –Victoria
57
Appendix 14:
16 villages in the pipeline
nine in NZ, seven in Victoria
VillageDesignConsentingCouncil approvalConstruction

Appendix 15: Population growth 75+
Source: Statistics NZ, Australian Bureau of Statistics (Series A)
58
-
0.2m
0.4m
0.6m
0.8m
1.0m
1.2m
1.4m
1.6m
20082013201820232028203320382043204820532058
NZ total population aged 75+Victoria total population aged 75+

Disclaimer
This presentation
This presentation sets out information relating to Ryman Healthcare Limited’s half year result for the period to 30 September2018. It should be read in conjunction with
all other material which we have released, or may release, to NZX from time to time. That material is also available on our website at www.rymanhealthcare.com.
Purpose of this presentation
This presentation is for information purposes only. It is not an offer of financial products, or a proposal or invitation tomake any such offer. It is not investment advice or
a recommendation in relation to financial products, and does not take into account any person’s individual circumstances or objectives. Every investor should make an
independent assessment of Ryman on the basis of expert financial advice.
Forward-looking statements
This presentation contains forward-looking statements and projections. These reflect our current expectations, based on what wethink are reasonable assumptions.
However, any of these forward-looking statements or projections may be materially different due to a range of factors and risks.Ryman gives no warranty or
representation as to our future financial performance or any future matter.
Non-GAAP information
Some of the financial information in this presentation has not been prepared in accordance with generally accepted accountingpractice (i.e. it is non-GAAP financial
information). This includes, in particular, our ‘underlying profit’ which Ryman has used for many years as a means of showing our profit absent any unrealised valuation
movements. Ryman has historically used underlying profit as the basis for determining dividend payments to shareholders. Weshow our underlying profit together with
our reported profit based on NZ IFRS (a GAAP measure).
Disclaimer
To the maximum extent permitted by law, we will not be liable (whether in tort including negligence, contract, statute or otherwise) to you or any other person in relation
to this presentation, including any error or omission in it.
59

Notice of Half Year Result Announcement Ryman Healthcare Interim Result 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.