Ryman Healthcare Limited 2019 Annual Report

All about people
RYMAN HEALTHCARE ANNUAL REPORT 2019

We see it as a privilege
to look after older people.

RYMAN HEALTHCARE
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Chair’s report
04
Chief executive’s report
Our senior executives
Our directors
How we create value over time
Enhancing the resident experience
Our people are our greatest resource
12
18
20
23
35
47
55
65
We are in a strong financial position
75
We value strong corporate governance
123
The long-term opportunities are significant
Serving our communities
ANNUAL REPORT 2019
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CHAIR’S REPORT
We continue
to create value
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RYMAN HEALTHCARE CHAIR
Dr David Kerr
Ryman has been a care company since it started 35 years ago.
As we continue to grow, we continue to create value for our
residents and their families, our staff, and our shareholders by
putting care at the heart of everything we do.
We’re a company with a purpose – to look after older people.
We know that if we get our care and resident experience right,
and have happy staff, the financial results take care of themselves.
I believe purpose and profitability are comfortable companions.
Integrating the two supports us in creating value over time.
This year, we continue to use the Integrated Reporting <IR> Framework*
to share the wider story of how we create that value.
*For more information on the <IR> Framework, visit integratedreporting.org
ANNUAL REPORT 2019
5

Producing strong financial results
I’m pleased to report a solid year that included
challenging market conditions. Our underlying
profit rose 11.5 percent to $227 million. Our
reported profit, which includes unrealised
valuations, declined 16 percent to $326 million.
The 2018 full-year reported profit was boosted
by changes to the independent valuation
assumptions. There were no significant changes
to the assumptions in the 2019 year. The full-year
dividend lifted to 22.7 cents per share, in line with
the growth in underlying profit.
Our net assets reached $2.17 billion, up from
$1.94 billion. Our operating cashflows rose
15 percent to $401.4 million, with cash receipts
from residents exceeding $1 billion for the
first time. This has allowed us to invest a record
$552 million in new and existing villages during
the year, up from $478 million last year.
Our medium-term target is to continue to
double our underlying profit every 5 years.
To achieve this, we aim to increase underlying
profit by around 15 percent each year, over the
medium term.
We fell short of this 15 percent increase this
year, for two reasons. Firstly, we made some
longer-term strategic decisions to reinvest
in the business, which we believe will help
performance in the coming years. Secondly,
resale volumes were flat. It’s hard to predict
the number of resales we get in the short term,
but we would expect volumes to grow in the
medium term in line with portfolio growth.
As a company we’re very focused on growth,
but we will not compromise our core value of
putting our residents first.
We think it’s a solid result given the decline in the
Melbourne housing market and a cooling-off in
the New Zealand market, particularly in Auckland.
It has not dented our plans to invest further.
Our villages remained in demand during the year.
Occupancy at our established care centres was
97 percent. While resales were flat, we sold almost
all of our stock that came up, which we take as a
positive sign that our villages are hitting the mark.
At 31 March, only 1 percent of our resale stock
was unsold.
Our build rate during the year lifted by
42 percent, and we have 20 new villages either
in development or in our land bank, giving us a
strong platform for growth in the years ahead.
Building sustainably
Our villages are built to be sustainable. It’s in
everyone’s long-term interests that we build
them to the highest standards.
Our villages are an extraordinarily
efficient use of land when compared to a
conventional subdivision. We are committed
to a programme of work to make them even
more environmentally sustainable.
We’ve measured our carbon footprint, and we
are working on ways to reduce our impact
by saving on energy consumption and waste
within each village.
We will be trialling solar-powered townhouses,
and we’ve installed an electric car-charging
network in Auckland.
We’ve introduced electric cars into our fleet,
and we’re trialling an eCab service at three
villages, using low-emission vehicles.
“I believe purpose
and profitability are
comfortable companions.”
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Managing risk to create value over time
As a board, we are constantly focused on the
risk involved in everything we do.
The safety of our people is our top priority.
We’re committed to doing everything we can
to make sure our people are happy and healthy
in their work and get home safe each day.
A risk for us is not having the right people to
meet the demand that lies ahead. Long term,
we’re focused on succession planning and
attracting the talent we need. I’m pleased to see
the significant progress that’s been made to add
strength and depth to the teams. Our new learning
and development initiatives are creating Ryman’s
future leaders.
Investing in our people
During the year, we made a strategic decision
to act quickly on a pay increase for registered
nurses in New Zealand, to maintain our leadership
position in the industry. We immediately matched
the increased pay rates for District Health
Board nurses.
That decision, worth $5 million a year, has kept
us ahead of the curve, and I believe we have a
team that remains extremely loyal.
We have decided to increase pay again for all
of our team. On top of this general pay increase,
from July 2019 the minimum adult hourly rate at
our New Zealand villages will lift to $20.
We also invested in developing our people, by
establishing the Ryman Academy. With several
excellent education providers, including the
Melbourne Business School, we will provide
world-class development courses and support
for our senior leaders.
We are working with other training establishments
and universities to provide more courses for other
members of the team.
Our Lead, Energise and Perform (LEAP)
leadership programme is now well into its
second year, with 280 of our leaders participating.
We’ve refined and developed the programme
and will launch the next version, LEAP 2.0,
in the coming year.
Initiatives such as the LEAP programme and the
Ryman Academy recognise that we value our
people. We know our team want to build their
careers and gain expertise with us.
Having a career path at a company with purpose
and a strong future makes for a highly engaged
workforce. Our latest team survey shows that
engagement levels are at a record high.
Our aim is to be the employer of choice in a
competitive market. Our residents will continue to
benefit from being cared for by a highly engaged,
stable, and well-prepared team.
Ryman is successful because of our team.
We were delighted to learn recently that we’d
been named Most Trusted Brand in the aged
care and retirement sector in New Zealand.
“We will not compromise
our core value of putting
our residents first.”
“The safety of our people
is our top priority.”
ANNUAL REPORT 2019
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Pursuing clinical excellence
Over the year, our pursuit of clinical excellence
continued. We’ve created a new Medications
Advisory Committee, which includes respected
geriatricians, a specialist pharmacist, researchers,
and a representative from the Health, Quality
& Safety Commission. The aim is to better
understand how medications affect the people
they’re designed to help and to make sure
medications are appropriately prescribed.
We’ve also engaged a specialist health researcher
to analyse the data we gather in myRyman. As a
clinician, I’m fascinated by the valuable insights
this innovation is delivering.
The secure data provides insights into the health
challenges of our residents, directly linking visiting
doctors with clinical health outcomes. We could
never have done this without the significant
investment we made in myRyman.
In May 2019, myRyman achieved international
recognition when it was named Innovation of the
Year – Care Model at the Asia Pacific Eldercare
Innovation Awards in Singapore.
During the year, we refreshed our approach
to dementia care. Ryman has been providing
dementia care for more than 20 years, and it
is a core part of our care offering. We currently
have 841 dementia beds and 665 more to come
from our land bank.
We will be introducing myRyman Life, a new
approach to dementia care, during the coming
year. The approach supports the resident living
with dementia to be happy in the moment, in the
best environment possible.
We also introduced our first telehealth clinics
during the year, which use technology to connect
our clinical teams in New Zealand and Victoria.
Bringing them together online makes efficient
use of time and resources to improve care.
Achieving the ‘gold standard’ in care
Achieving excellence in care is critical for us.
I’m delighted to report that 81 percent of our
care centres have now achieved ‘gold standard’
Ministry of Health 4-year certification.
Our investment in myRyman has helped,
as has our constant focus on improvement and
on building an internal audit team to work with
our village teams. When you treat every day as
audit day, excellent outcomes follow.
Ryman delivers more than 7 million hours of
care each year. We’re confident in our team, our
systems, and in our ability to constantly improve.
If we make mistakes, we learn from them so that
we can deliver the best possible care.
Investing in Ryman Delight
Our operations team has been busy working on
initiatives to enhance the quality of life of our
7,500 independent residents. The initiatives
are collectively known as Ryman Delight. For
many of our residents, cooking can sometimes
be a bit of a chore, so we’ve taken our Delicious
recipes and turned them into ready-to-eat meals.
Independent residents can buy them from us, and
heat and eat them at home.
We’ve introduced a new hosting service to make
our village centres more of a destination in the
evenings. Residents, their families, and friends can
enjoy a drink and bar snacks in our village lounge.
We’re also showing more films and adding later
session times so that after meeting for a drink and
snacks, they can enjoy a night out at the movies.
Our Ryman Benefits card provides discounts
for our team with more than 50 of our suppliers.
We wanted our residents to share the same
benefits, so we’ve now extended the benefits
card to them. Our residents and team can
make the most of our buying power, and our
suppliers are more than happy to be part of
the Ryman community.
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Strengthening our corporate
governance structure
During the year, we welcomed two new
directors to the board – Geoff Cumming and
Anthony Leighs.
Geoff, an economist and world-class business
thinker, was one of our directors when we listed
in 1999. Geoff sees his long-term shareholding
in Ryman as an investment in a company with
purpose and with strong growth prospects.
Anthony is a successful construction entrepreneur
with expertise in commercial building. Ryman
invests more than $500 million a year in
construction and is one of New Zealand’s largest
housebuilders. Anthony chairs our newly formed
Development and Construction Committee.
Reinvesting for the future
Twenty years ago when we listed on the NZX, we
had eight villages. At that time, our shareholders
invested $25 million in capital. Since then, we’ve
invested more than $3.7 billion in our new and
existing villages. We’ve opened 28 villages over
two decades and we have a significant future
development pipeline.
Through our rolling refurbishment programme,
we continually reinvest in the 36 villages currently
in operation.
Our shareholders benefit from the value created
by this reinvestment. Since listing, we’ve paid
out more than $800 million in dividends and
grown our shareholders’ capital by 21 percent
per annum.
We’ve been able to grow and invest while paying
a growing dividend stream, without the need for
any fresh capital.
Recognising the people who make
it happen
Ryman’s team of over 5,000 people does a
superb job. The board values the contribution
you make every day.
We’d like to say thank you to our residents, and
your families, for putting your trust in our team.
The board values the contribution that each one
of our team members makes each day, and we
are extremely grateful for what you do.
And to our shareholders, thank you for your
support. We’re glad you’ve shared in the success
of the past 20 years, and we’re looking forward to
sharing future successes with you.
It really is all about people.
Dr David Kerr
CHAIR, RYMAN HEALTHCARE
“When you treat every
day as audit day, excellent
outcomes follow.”
ANNUAL REPORT 2019
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A care company
from the start
1984
Ryman Healthcare
was founded in 1984.
5,3 0 0
We employ over
5,300 staff.
36
villages
We own and operate
36 retirement villages in
New Zealand and Australia
and have a land bank of 16 more.
Our villages
are home to over
11,000 residents.
11,0 0 0
residents
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20
It’s 20 years
since we listed
on the NZX.
35
We’ve been driven
by the same values
for 35 years.
8 41
We have 841 beds dedicated to
dementia care and plan to add
another 665 from our land bank.
$3.7 billion
We’ve invested $3.7 billion
in new and existing
villages since 1999.
7,000,000
We provided more than
7 million hours of care during the year.
20
ANNUAL REPORT 2019
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CHIEF EXECUTIVE’S REPORT
We’re building
momentum for the
growth ahead
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We’ve had a busy year ramping up investment in our people,
our residents, our systems, and making sure that everyone
gets home safe, every day.
We’ve built a lot of the momentum we need to tackle
the extraordinary years of growth we see ahead.
Our focus has been on improving the resident experience
and developing our people. If our residents and their families
love the experience of living in a Ryman village, and our people
love what they do and feel safe at work, our financial results
take care of themselves.
And that means our shareholders will continue
to share in our success as well.
RYMAN HEALTHCARE CHIEF EXECUTIVE
Gordon MacLeod
ANNUAL REPORT 2019
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Lifting our build rate
During the year, we lifted our build rate by
42 percent to 757 units and beds.
All going well with consents and development
applications, we’re expecting to have work under
way on 12 sites in the coming year. This will take
us into our biggest-ever build programme.
Our land bank now totals more than 7,000 beds
and units, and 40 percent of these are consented.
We’ve got quality sites, and we’re turning them into
villages ready for sale to meet the demand ahead.
We encountered some headwinds during the year.
In Melbourne the housing market has come off
around 10 percent from its highs, and we’ve seen
a cooling-off in the wider Auckland market, with
volumes down 18 percent.
At a time when almost every newspaper
published in the past 365 days has had a negative
story about the property market on both sides
of the Tasman, our demand has held steady.
This is demonstrated by ending the year
with just 1 percent of our resale stock unsold,
and 97 percent occupancy in our established
care centres.
Making residents happy in Victoria
This year, we opened our second Melbourne
village, Nellie Melba. It’s now home to nearly
200 residents in independent living and care.
The village was opened by Lord Samuel Vestey,
an English peer and great grandson of
Dame Nellie. He told us he’d thought long
and hard before lending such a treasured
name to the village.
Lord Vestey told me on opening night that he’d
asked as many residents as he could about how
they were finding life in the village - because he’d
never seen anything like it in England. He couldn’t
believe how happy everyone was. To me that says
it all. Our success is defined by whether we make
people happy.
We’re conscious that it took longer than
anticipated to open our Nellie Melba village.
We’ve learned a lot. We’re our own worst critics,
and that’s how we keep improving.
“Our success is
defined by whether we
make people happy.”
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The aged-care sector in Australia has
come under intense scrutiny from the Royal
Commission into Aged Care Quality and Safety.
We’ve made a submission to the Royal
Commission on how we believe the system
can be improved. We think that anything that
improves care for older people, and the way
it is delivered, is a good thing.
As a result of the Commission, and the bad press
about the retirement-village sector, residents
moving in with us have done their research.
They’re pleased with the experience of living at
a Ryman village, and they’re reassured to know
care options are available on the same site –
something that’s rare in Australia.
Growing in Victoria
We’ve added three sites in Victoria during the
year – taking us to a total of 10.
Our Aberfeldie site is not far from Melbourne’s
CBD, and in a good area with a shortage of
retirement-living options and care. Ocean Grove
is on the Bellarine Peninsula, just down the road
from Geelong, and is also an excellent prospect.
Our new site at Ringwood East is close to Eastland
Shopping Centre and is in Melbourne’s green belt,
bordered by Ringwood Lake Park. It has everything
we look for – a good-sized retired population
and a shortage of quality living options for them.
We think it’s a stunner.
Work has started at our Burwood East site,
our third village in Melbourne. We’ve also
recently received development approval for
our Highton site in Geelong and we plan to
start work there soon.
We’ve started early site works at Coburg and
we’ve applied for development approval for
Aberfeldie. At this stage, we’re likely to shuffle the
Aberfeldie site ahead of Coburg. Aberfeldie is a
shorter build and will allow us to get a beachhead
in that part of Melbourne faster, which will pave
the way for Coburg.
We’re well on the way to having five villages open
in Victoria by the end of 2020, and our Melbourne
development and construction team is fired up
about the future.
“Our Melbourne development
and construction team is
fired up about the future.”
ANNUAL REPORT 2019
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Growing in New Zealand
We’ve made great progress at our Lynfield,
Hamilton, and Devonport villages in New Zealand,
where our first residents are settling in.
Our Auckland land bank has been boosted by
the acquisition of a premier site at Kohimarama.
We’ve also bought the medical centre next door
to our Grace Joel village in St Heliers. We have
no immediate plans to develop the site, but it’s
an important strategic deal for us.
We’ve bought two new sites in Christchurch,
subject to Overseas Investment Office approval.
The first is in Riccarton Park with views of the
racecourse, the Port Hills, and the Southern Alps.
It will provide us with a village near prime suburbs
with ageing populations, and it fits nicely within
our existing portfolio of Christchurch villages.
The second site we’ve bought is Bishopspark
village, from Anglican Care. Bishopspark is
near our existing Park Terrace site and looks
across Hagley Park in the heart of Christchurch.
Bishopspark suffered significant earthquake
damage and will be rebuilt.
We will take on the obligations to Bishopspark’s
existing residents and we are reviewing plans to
redevelop both sites as one village. The combination
of the sites right on Hagley Park, overlooking the
Avon, makes it an exciting prospect.
We have recently received resource consent for
our Havelock North village, so we’re gearing up
to start work there. Work has already started at
Lincoln Road in Auckland.
I want to acknowledge Andrew Mitchell, who
has led our development team for 12 years and
is moving into a consulting role, working on
special projects. Andrew has made a significant
contribution to Ryman and has built a strong
team that will continue to drive our expansion
in New Zealand and Victoria.
Jeremy Moore, who has been with us for 7 years
in the development team, has stepped up to lead
the team as acting chief development officer.
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Standing with our Muslim community
On 15 March this year, we placed all of our
Christchurch villages and our Christchurch office
into lockdown after we learned that a gunman
was being pursued by police near Hagley Park.
Our Margaret Stoddart village is a short distance
from Al Noor Mosque and while none of our team
were caught up directly in the attacks, many of
our people were affected.
I’m proud of how our team responded. They
did everything possible to make sure our
residents were safe and comfortable as the
events unfolded.
Our Ryman family came together and raised
$100,000 for the victims and families of these
horrific terror attacks in New Zealand.
Giving back to our communities
During the year, we increased our engagement
with community organisations.
One example is our work with the
Stroke Foundation. We funded the purchase
and fit-out of a stroke van in New Zealand.
The van has travelled the length of the country
delivering around 10,000 free blood-pressure
checks. We’ve committed to funding the van
for another 3 years, and we’re putting an identical
van on the road in Melbourne.
“It is a privilege to
work alongside our team
of difference makers.”
All about people
As we celebrate 20 years on the NZX, I want
to acknowledge the support my team and I have
enjoyed from shareholders over the years. I look
forward to seeing you at our annual meeting.
Ryman is a success story thanks to the trust
that people have placed in us. We all look forward
to continuing to create value for our residents,
our people, and our shareholders for many years
to come.
Finally, I’d like to thank the team. In our
strongest-ever team survey results, our people
have told us they feel safe at work, and are
happier than ever. This is incredibly important
because our people make a massive difference
to the lives of our residents.
It is a privilege to work alongside our team
of difference makers. Our residents think the
world of you, and so do I.
Gordon MacLeod
CHIEF EXECUTIVE, RYMAN HEALTHCARE
ANNUAL REPORT 2019
17

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 NextScience Limited
and deputy chair of Special
Broadcasting Service.
He is also a Fellow of
the Australian Institute
of Directors.
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 holds director positions
in the property, health,
and philanthropic sectors.
Claire had a long executive
career at BHP and OneSteel
Limited before becoming a
professional director.
Anthony
Leighs
NZCB
DIRECTOR
Anthony is managing
director of Leighs
Construction, which he
founded in 1995 and built
into one of New Zealand’s
leading commercial
construction contractors.
He is a former chairman
of the New Zealand
Registered Master Builders’
Association. Anthony joined
the Ryman board in 2018.
Our
directors
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Jo
Appleyard
LLB (HONS)
DIRECTOR
Jo is a partner at Chapman
Tripp. She is a skilled
advocate and litigator
specialising in commercial,
employment, and resource
management law. Jo has
been a member of the
NZ Markets Disciplinary
Tribunal since 2011.
Geoffrey
Cumming
BA (HONS), MSC (ECON), LLD
DIRECTOR
Geoff rejoined 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, FCA
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. Warren is currently
chair of Hallenstein Glasson
and St George’s Hospital,
and is a director of several
private companies.
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. He 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,
Third Age Health Services,
and Ngāi Tahu Property.
ANNUAL REPORT 2019
19

Our senior
executives
Nicole
Forster
CHIEF PEOPLE AND
TECHNOLOGY OFFICER
Nicole joined Ryman in
2011 as a senior human
resources advisor. Before
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 in 2018.
Gordon
MacLeod
CHIEF
EXECUTIVE
Gordy 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.
Gordy 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.
Barbara
Reynen-Rose
CHIEF OPERATIONS
OFFICER
Barb joined Ryman in
1992 as a nurse manager
and is now our Chief
Operations Officer. Barb
has an Advanced Diploma
in Nursing, a Postgraduate
Diploma in Management,
and a Master of Health
Sciences (Gerontology).
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To m
Brownrigg
CHIEF CONSTRUCTION
OFFICER
Tom joined Ryman in 2006
and has overseen the
construction of more than
20 Ryman villages. He has
over 30 years’ experience
in the construction industry
in New Zealand and the
United Kingdom, in roles
ranging from carpentry to
project management.
Debbie
McClure
CHIEF SALES AND
MARKETING OFFICER
Debbie joined Ryman
as an administrator in
1990 before moving into
sales. In 2013, she moved
to Melbourne to lead
Ryman’s sales expansion
in Victoria. Debbie is a
member of the Property
Council of Australia’s
Retirement Living
Committee in Victoria.
David
Bennett
CHIEF FINANCIAL
OFFICER
Dave joined Ryman in
2013 and was promoted to
Chief Financial Officer in
2017. Dave has a Bachelor
of Commerce degree and
is a chartered accountant.
Before joining Ryman,
he worked as an
accountant and auditor.
ANNUAL REPORT 2019
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RYMAN HEALTHCARE
22

How we create
value over time
ANNUAL REPORT 2019
23

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24

We put
care first
As a company, we don’t have a
complicated mission statement. We simply
put care at the heart of everything we do.
In 1984 when Ryman’s co-founder Kevin Hickman
was deciding how Ryman would do things, he thought about
how he’d like his Mum to be cared for. Kevin’s universal
benchmark became ‘It’s got to be good enough for Mum’.
Kevin set the bar high and, more than three decades later,
Ryman still works to maintain the same high standard
across the company.
Our residents, and their families, place their trust in us to
care for them. We see it as a privilege. We want our residents
to love the experience of living in a Ryman village.
ANNUAL REPORT 2019
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1
Identify and
buy site
2
Design,
consult, and
consent village
3
Construction,
sales and
marketing begin
4
Recruit staff,
village opens
5
Village
complete and
fully operational
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Our business
model revolves
around care
We design villages to meet the needs of
our residents. It starts with finding the right
site, developing a village and a community,
recycling cash, and reinvesting in the next village.
The development
team identifies
and buys a site
close to good
amenities in
an established
residential area
that needs quality
aged care and
independent living.
Our development and design teams design the
village and work through the consenting process.
Our construction team builds the village, our sales
team sells it down, and the operations team runs it.
The development
and community
relations teams
gather feedback
from the
community and
our internal teams
to form the plan
submitted for
resource consent.
The construction
team begins
work on the new
village and the
sales, marketing,
and community
relations 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
serviced-apartment
and care residents.
The village grows
until it is fully built
and occupied,
and becomes
fully operational.
The capital that
residents pay
when they move
in is recycled to
buy the next site,
and the cycle
begins again.
12 3 4 5
ANNUAL REPORT 2019
27

Highton
1
Mt Martha
1
Mt Eliza
1
Aberfeldie
1
Coburg
Weary Dunlop
1
Nellie Melba
1
Ringwood
East
•
Aberfeldie
•
Burwood East
•
Coburg
•
Highton
•
Mt Eliza
•
Mt Martha
•
Nellie Melba
•
Ocean Grove
•
Ringwood East
•
Weary Dunlop
Our villages in Victoria, Australia
Our villages in New Zealand
Whangarei
•
Jane Mander
Auckland
•
Bert Sutcliffe
•
Bruce McLaren
•
Edmund Hillary
•
Evelyn Page
•
Grace Joel
•
Hobsonville
•
Kohimarama
•
Lincoln Road
•
Logan Campbell
•
Murray Halberg
•
Possum Bourne
•
William Sanders
Hamilton
•
Hilda Ross
•
Linda Jones
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*
•
Riccarton Park*
•
Woodcote
Dunedin
•
Frances Hodgkins
•
Yvette Williams
Invercargill
•
Rowena Jackson
Ocean Grove
Ryman village
Under construction
Council approval
Burwood East
1
1
1
1
Proposed village
*Subject to Overseas Investment Office approval
RYMAN HEALTHCARE
28

Our villages
Invercargill
1
Dunedin
Rangiora
1
Christchurch
62
Nelson
1
Wellington
42
Waikanae
1
Palmerston North
1
Whanganui
1
New Plymouth
1
Havelock
North
1
Napier
1
Gisborne
1
Tauranga
1
Hamilton
2
Whangarei
1
Auckland
9
2
2
1
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29

“We create a village
environment that
people want to live in.”
Debbie McClure
CHIEF SALES AND
MARKETING OFFICER
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30

Our pipeline
of villages
Brandon Park – Victoria
Lynfield – NZ
Devonport – NZ
River Road – NZ
Burwood East – Victoria
Lincoln Road – NZ
Highton– Victoria
Havelock North – NZ
Coburg – Victoria
Aberfeldie – Victoria
Hobsonville – NZ
Ocean Grove – Victoria
Riccarton Park – NZ
Mt Martha – Victoria
Kohimarama – NZ
Ringwood East – Victoria
Mt Eliza – Victoria
Park Terrace – NZ
Karori – NZ
Newtown – NZ
DesignVillagesConsentingConstructionVillage
open
Final
stages
Council
approval
The pipeline is subject to resource and building consent and various regulatory approvals.
ANNUAL REPORT 2019
31

We create value over
time through six capitals
Everything we do is the result of integrated thinking and planning.
Putting residents first benefits all our stakeholders
Ryman’s stakeholders include residents and their families, team members, neighbours
and local communities, investors, funders, suppliers, and our sponsorship partners.
Our first concern is the care,
companionship, quality of life, and
security of our residents. It is our
privilege to care for people at a
critical time of their life.
Our culture is to look after and
support each other. We value
kindness, health, and wellbeing.
Our people are our greatest
resource. We want them to get
home safe each day, and to go
home knowing they’ve made
a difference to the lives of our
residents.
We want our people to be well
trained and guided by strong
leadership. We want them to work
at Ryman for their entire career.
We develop our talent internally
and build our inhouse capability.
Constantly getting better at what
we do means we can be nimble as
we continue to grow.
Each time we build a Ryman
village, we establish a new
community dedicated to
meeting an important and
growing social need – the care
of older people.
We make it possible for older
people to move into a lifestyle
that directly benefits them. They
enjoy security, companionship,
and social connectedness.
In turn, the wider community
benefits from the long-term
sustainable jobs we create, and
the release of family homes for
new owners.
Our residents, and their families,
benefit from knowing their future
is assured with us.
LOOKING
AFTER
PEOPLE
CREATING AND
NURTURING
COMMUNITIES
Our business model creates a
high level of financial certainty
for residents and shareholders.
Our contracts are fair and easy
to understand. Residents, and
their families, have the certainty
of knowing that our management
fee is capped at one of the lowest
rates in the sector, and that their
weekly fee is fixed.
We create financial certainty
for our sub-contractors and
suppliers by building long-term
and sustainable partnerships
with them, and by paying on time.
For shareholders, we’ve provided
a steady pay-out and delivered
consistent growth for 20 years.
We distribute 50 percent of
our underlying profit to our
shareholders and invest the other
50 percent for future growth.
CREATING
FINANCIAL
CERTAINTY
213
CREATING AND
NURTURING
COMMUNITIES
2
RYMAN HEALTHCARE
32

Identifying material issues
We identify material issues through regular communications with our residents and their families,
our team members, and other stakeholders in New Zealand, Victoria, and around the world.
We collate the information and assess its effect on our ability to create value over time.
Our integrated thinking achieves
the best possible outcomes for
our residents. Everyone at Ryman
is encouraged to share their ideas
with others in different areas of
the business.
We value clear communication
and train our people to
communicate in plain language.
We invest heavily in innovative
technology that enables us to
improve the resident experience
and to share what we learn for the
good of all older people.
Our constant focus on learning
and improving raises our
expectations of what we can
achieve. Our achievements raise
the standard of what older
people should expect at a
retirement village.
SHARING
OUR
KNOWLEDGE
Retirement villages offer a low
impact and sustainable way to
house a community of people
with similar needs.
Building our villages using
energy-efficient designs and
reducing waste are the best
ways to ensure the sustainability
of our business over time.
As a Certified Emissions
Measurement And Reduction
Scheme (CEMARS®) company,
we’re measuring the impact we
make on the environment.
As well as reducing our energy
use and our waste streams, we
aim to work only with suppliers
and contractors who share our
sustainability values.
CONTINUING
TO BUILD
OUR ASSETS
When Ryman Healthcare listed
on the NZX 20 years ago in 1999,
$25 million in capital was raised
from its first investors. Since then,
the model has evolved to generate
more than $6.6 billion worth of
assets.
We have returned $800 million
worth of dividends to shareholders
and we’ve never had to raise
fresh capital.
We continue to recycle the cash
investment in each village and
establish recurring revenue streams
that will grow over time.
CARING
FOR THE
ENVIRONMENT
465
SHARING
OUR
KNOWLEDGE
CARING
FOR THE
ENVIRONMENT
46
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34

Enhancing
the resident
experience
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35

36
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Our villages are people’s homes.
We provide our residents with the care,
companionship, quality of life,
and security they need.
We want our residents to be happy living in a Ryman village.
We constantly innovate and challenge everything we do so
that we can continue to enhance the resident experience.
We provide a range of retirement-living options to suit our
residents’ needs. We’ve cared for over 30,000 residents in
New Zealand and Victoria in villages that we’ve designed
and built, and operate ourselves.
ANNUAL REPORT 2019
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RYMAN HEALTHCARE
38

We put our residents first
Our villages are affordable, our terms are fair,
and our contracts are easy to understand.
Residents, and their families, have the certainty
of knowing that our management fee is capped
at one of the lowest rates in the sector, and that
their weekly fee is fixed.
Our care options give independent residents
and their families the security of knowing that
we’re dedicated to caring for them now and into
the future.
Residents can choose from independent
apartments, townhouses, or serviced apartments.
And if their health needs change, they have
priority access to a range of care options, often
including secure dementia care.
We maintain an ongoing programme of
refurbishment, across all our villages, that enables
us to meet the changing needs of our residents.
Keeping the lines of
communication open
We regularly survey our residents, their families,
and our team members. They tell us what’s
working well and where we could improve.
We listen to what they say and we act on it.
When our independent residents asked us to
provide nutritious ready-to-eat meals for the days
when they didn’t feel like cooking, we acted on it.
This year, our ready-to-eat Delicious meals will
become a valuable service to our residents.
Village life meets older people’s
social needs
At Ryman, we create the kind of environment that
residents grew up in – a close community where
neighbours care about each other and have time
for a chat.
Feeling connected to a community can improve
physical health and wellbeing in older people.
It also helps to prevent loneliness and the risk
of depression and other mental health issues.
This year, we’ve started to roll out a new
programme of activities that take place in the
afternoons and evenings in our village centres.
Residents can come along to the village centre
for a drink and bar snacks. They can choose to
see a movie from the extra screenings at our
village cinemas.
We want the village centre to become even more
of a social destination where residents can meet
with their friends and families.
ANNUAL REPORT 2019
39

Sharing our buying power
Our team members enjoy using the Ryman
Benefits card to get discounts on purchases
from Ryman’s suppliers. During the year, we
extended the card to our residents, and they’re
now enjoying the same benefits.
Providing sustainable transport
for residents
At three of our villages, we’re trialling new Ryman
eCabs and a car-sharing scheme as a way to
help residents get to appointments. It’s also a
way to reduce our collective carbon footprint.
We provide a low-emissions eCab and a driver
to get them around safely. We also provide a
low-emissions car that residents can hire for a
minimal charge. The shared car is for residents
who no longer own a car, but still need one for
the occasional outing.
Achieving record results in our
clinical audits
Last year, 19 of our villages had achieved
4-year certification from the Ministry of Health.
We’ve now achieved the ‘gold standard’ in care
in six more villages, bringing the number to 25,
which is 81 percent of our New Zealand villages.
Our clinical audit results in Victoria have
also been excellent. We already exceed the
government standards in Australia and will
continue to improve.
Innovating to promote excellent
clinical care
Last year, we completed the roll-out of our
myRyman electronic care app, and more than
3,400 care residents are now benefitting from
the innovation.
This innovation promotes clinical excellence.
Clinical staff can identify and communicate any
changes in a resident’s health more quickly to
other team members, doctors, and family.
Using myRyman eliminates paperwork and
speeds up shift handovers. It creates links and
prompts, so our nursing and caregiving teams
know exactly what they need to do. Everything
is securely recorded.
Our teams can now spend more time with
residents and access and update their clinical
data more efficiently.
The app has proved its reliability, and the team
has embraced the change. Our most experienced
clinical team members describe myRyman as
‘magic’. It has made a once-in-a-generation
improvement to the way we deliver care.
“People aged 65 and
over are the most
under-researched
group in the
healthcare system.”
Dr Kathleen Potter
HEALTH RESEARCHER AND
MEMBER OF RYMAN’S MEDICATIONS
ADVISORY COMMITTEE
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40

Working to improve the health
of all older people
The data we’re collecting can help improve
the wellbeing of all older people. By combining
myRyman with our standard medication system,
we can make connections between GPs, the
medications they prescribe, and the health
outcomes we observe and record.
We’ve engaged Dr Kathleen Potter, a health
researcher, to analyse the data. Dr Potter is
excited about the potential for learning from
this data. She says that people aged 65 and over
are the most under-researched group in the
healthcare system.
Ryman has set up a new Medications Advisory
Committee to better understand how
medications can affect the people they’re meant
to help. The committee meets quarterly, and
includes Dr Potter; Emeritus Professor Richard
Sainsbury from the University of Otago; clinicians
from different disciplines; and a representative
from the Health Quality & Safety Commission.
The Ryman Medications
Advisory Committee
Victoria Brevoort
Clinical Nurse Specialist, Ryman
Meegan Potts
Data Analyst, Ryman
Professor Richard Sainsbury
Consulting Geriatrician
Alex de Roo
Pharmacist
Dr Murray Robson
General Practitioner
Billy Allan
Health Quality & Safety Commission
Dr Kathleen Potter
Health Researcher
Jenny Thiele
Regional Operations Manager, Ryman
Melanie Asuncion
Clinical Manager, Ryman
Janine Snape
Operations Project Clinical Manager, Ryman
Karen Lake
Clinical and Quality Manager, Ryman
ANNUAL REPORT 2019
41

Revolutionising dementia care
Caring for residents with dementia has been a
core part of our clinical care for the past 20 years.
Today, we provide more than 840 dementia
care beds.
We are always looking to improve by learning from
the latest research. During the year, we reviewed
our dementia care. The review team had one
focus: for the person living with dementia to be
happy in the moment.
The team consulted with residents, their families,
our staff, and leading industry researchers.
They also organised a 2-day summit on designing
dementia-friendly environments for our residents.
The summit brought together 50 of our
architects, designers, clinicians, and contractors
with experts from the University of Stirling in
Scotland who specialise in designing for people
living with dementia.
The result is a new approach to dementia care
we’ve called myRyman Life. The approach
supports the person living with dementia
to be happy in the moment, in the best
environment possible.
We think myRyman Life will revolutionise the way
we deliver dementia care, adding value to our
clinical operations for many years to come.
The roll-out starts soon, and we will be closely
monitoring the benefits.
Taking innovation to new places
The potential for myRyman is growing as we gain
new insights from the data we’re collecting.
We can track which aspects of our care are going
exceptionally well and share that knowledge to
continuously improve what we do. We can also
quickly identify a spike in the number of falls,
infections, or other health issues we need to
know about.
The data in myRyman is secure and more
accurate than ever before. We can see that,
in the future, we’ll be able to use advanced
predictive tools to help us better assess the
clinical needs of our care residents.
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42

Adopting telehealth technology to
improve care
We’ve adopted telehealth technology as another
way to improve our care for residents. Our clinical
teams across New Zealand and Victoria can use
this tool to connect and learn from each other.
One application of this technology is to help
treat people’s wounds – a core clinical skill.
Each of our village teams has a wound care
specialist. The specialists are all linked to a
telehealth clinic, led by a wound care clinician.
Bringing them together online makes efficient
use of time and resources to improve care
across all locations.
“We get excited about
innovation and the
future, and I’m very
excited about myRyman
Life, our new approach
to dementia care.”
Barbara Reynen-Rose
CHIEF OPERATIONS OFFICER
Understanding risk in care
Providing the range and level of care that Ryman
offers involves risk. Many of our residents are frail,
and their care is complex.
Putting care at the heart of everything we do
relies on team members who are passionate
about caring for people and understand the
risks involved.
All our team members are highly trained and
have the resources to provide our residents
with the best possible care. We make sure
everyone understands our universal standard
of care: ‘It’s got to be good enough for Mum’.
Ryman recognised for innovation
and trust
In May 2019, our myRyman care app was named
Innovation of the Year - Care Model at the Asia
Pacific Eldercare Innovation Awards in Singapore.
The award recognises the best care model that
improves the quality of life for older people.
Ryman also won the top award in the aged
care and retirement village category of the
New Zealand Reader’s Digest 2019 Most Trusted
Brands. These awards profile the brands Kiwis
trust the most. This is the fifth year we’ve won
the award.
The voters’ comments acknowledged our
kind staff, fair terms, and high standards of care.
ANNUAL REPORT 2019
43

For Julie Howell, visiting her husband Michael
in the special care unit at Ryman’s Bob Owens
village has been a surprisingly healing experience.
Michael, 79, was diagnosed with Alzheimer’s
8 years ago and now needs round-the-clock care.
The care Julie sees every day has changed her
view of the progressive illness.
“I wouldn’t be worried about having Alzheimer’s
now. It’s been such a loving, caring experience,”
says Julie. “There’s no pain, and Mike’s happy
and comfortable and safe.”
Moving into the village has given the couple
time to really appreciate life and their love,
which spans nearly 70 years. Julie is thankful
to have that time to share with their two children
and six grandchildren.
“I have a saying now, which is ‘I accept the gift
that life has given me, which is today’. I live by that.
As soon as I said that, I just relaxed about the past
and the future, and accepted that some things are
out of my control.”
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A loving, caring
experience
Julie was nine when she set her sights on
Mike Howell.
“He got the dux at primary school and I thought,
‘Gosh, Mike Howell must be clever. I’m going to
marry him!’”
Indeed, Michael was an associate professor at
the Australian National University when he retired
at 53. He’d played for the university cricket team
against India at the age of 50.
“He did all the things you’re supposed to do –
he was very mentally active, and we had veggie
gardens and ate oily fish. We’d led a balanced sort
of a life, so this illness was quite a shock.”
After the diagnosis, Julie realised she’d need
support. In 2015 the couple moved into an
independent apartment at Bob Owens, knowing
that dementia care was on site for later.
That time came in March 2017. The move into
care lifted a huge weight off Julie’s shoulders.
“The 24-hour care is absolutely amazing.
It takes very special people to give care like that.
I feel it’s the jewel in the crown of the care centre.”
CONVERSATIONS
45
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46

Our people are
our greatest
resource
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47

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48

Our culture is to look after
and support our people. They
make Ryman the company it is.
We will continue to do everything possible to make
sure health and safety is top of mind every day for all
our people, no matter where in the business they work.
Our commitment to safety starts with the board.
Ryman’s directors regularly visit our construction sites
and villages, and talk to people on the ground
to see for themselves what’s going on.
Health and safety is about more than what happens at work.
It’s about wellbeing in our broader lives. We’ve introduced
a wellness day for our operations staff, and we make sure
our leaders know how to best support their teams.
ANNUAL REPORT 2019
49

Speak up
Speak up on safety. Tell your manager or
supervisor if you’re not being supported in
working safely. Escalate it if nothing happens.
If you feel uncomfortable doing so, then call
the Confidential HR line.
3
1
Stop
If you don’t feel safe or comfortable doing
something, please stop. We will support you in
this decision even if it affects build timeframes
or any other project deadlines at our villages,
offices, or construction sites.
Intervene
If you see anyone doing something unsafe,
don’t sit back or walk by – please intervene.
2
We tell all our team members they are empowered
to keep everyone safe through three key actions.
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50

A shared commitment to
health and safety
This year we launched our Stop. Think. Is it Safe?
campaign across the company. It’s a practical
campaign aimed at making sure the safety
message is part of our daily conversations.
In September 2018, we shut down all of
our construction sites for one day to hold
Safer Together, a safety expo attended by
350 people. Our construction team was joined
by village managers, gardeners, maintenance
people, directors, and external contractors to
take part in an interactive programme on safety.
Following the expo, we set up two safety forums
– one for construction and one for operations.
Members meet three times a year, providing
ongoing opportunities to discuss health and
safety. Their input helps us to continually
improve our safety performance at work.
“Safety is a 24/7
commitment for us.”
Claire Higgins
DIRECTOR
In honour of Graeme
In January 2018 Graeme Rabbits,
a contractor who worked on one
of our Auckland construction sites,
died in an accident on the site.
Graeme was a keen gardener and
loved the environment. To honour
him, we’ve set up an education
scholarship and a sustainability
award in his name. Graeme’s family,
who liked the idea of offering an
award as part of his legacy, is helping
to select the winners.
The first scholarship has been
awarded to George Hola, who works
on the construction team building our
Murray Halberg Retirement Village in
Auckland. George will benefit from a
3-year development programme that
will allow him to take on extra study
to pursue his dream career.
Key improvements in 2019
increase in safety observations
and near-miss reporting within
construction
27%
7%
decrease in frequency of
injury claims within operations
and offices
George Hola
Recipient of the Graeme Rabbits
Scholarship 2019
ANNUAL REPORT 2019
51

Ryman offers a lifetime career
We want our people to realise their full
potential with us.
Ryman has an important social purpose and
exceptional growth opportunities to build a
long-term career alongside like-minded people.
We believe in being kind, and we focus on
supporting and caring for each other.
We support our people to progress in their role
under the guidance of strong leadership.
During the year, Ryman senior leaders attended
tailored one-on-one coaching sessions as part
of a new individualised coaching programme.
We delivered our LEAP development programme
to 280 team members, and now we’re rolling out
the next stage.
We’ve provided extra leadership development
and coaching for Ryman’s construction project
managers. These managers work remotely with
the highest levels of responsibility on complicated
construction sites, and give very positive
feedback on the coaching.
The Ryman Academy will deliver
world-class education
This year, we will introduce the Ryman
Academy. The Academy will deliver a
portfolio of easily accessible learning
and development programmes.
We are partnering with leading education
providers, including polytechnics and
academies, to deliver the programmes.
One of our partners is Melbourne Business
School, and we’re excited about the world-class
programme of learning they will deliver for
our people.
The University of Auckland, another new
academic partner, will provide high-quality
courses for our property development team.
Finding the right people as we grow is a challenge.
It takes time to bring people up to speed.
By creating these career development
opportunities, we will attract and retain people
from Australasia and around the world to help
meet the demand ahead.
“The leadership
development and
coaching we’ve
delivered in construction
has given our team more
tools to do the job.’’
Tom Brownrigg
CHIEF CONSTRUCTION OFFICER
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52

Providing more pathways for nurses
We’ve introduced an additional pay step for
our nurses that will further reward our more
experienced nurses for their advanced
knowledge and skills.
We’ve also developed our own Nursing Entry to
Practice programme so that graduate nurses with
a passion for aged care can start their careers in
a supportive and industry-leading environment.
We’re recruiting more apprentices
We continue to recruit apprentices to create
a pipeline of people to support the work
programme ahead.
We currently have 14 apprentices working in
construction while, in our inhouse kitchens,
four kitchen hands are training to become chefs.
“We want to be known
as the employer that’s
going to give you the
best development,
the best opportunities,
the place you can grow
and achieve the most.”
Nicole Forster
CHIEF PEOPLE AND TECHNOLOGY OFFICER
We increased wages again this year
Over the past 2 years, nursing and care staff have
received substantial wage increases; all village
staff received more sick-leave entitlements and
the option to take an annual wellness day.
The above-inflation increases we’ve introduced
mean that our adult minimum wage rate (in
New Zealand) will lift to $20 an hour by July 2019.
We’re pleased to break this barrier for our team.
We will continue to look for more ways to improve
the experience of working at Ryman, such as
extending the Ryman Benefits scheme we
introduced last year. All our staff receive a Ryman
Team Benefits card, which entitles them to a
range of discounts with leading retailers.
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54

Serving our
communities
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55

56
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Ryman builds and operates
retirement villages that become part of the
communities we serve. Our villages enable
residents to stay in the areas they love.
Staying connected to their communities is important
for our residents. We recognise those connections by
supporting many of the groups they support.
We open our villages to community groups,
providing a venue for a range of organisations such
as Rotary, Lions, Probus, and SeniorNet.
The residents, themselves, give back to their local
communities through initiatives such as school reading
programmes. Helping children with their reading makes
great use of their skills, experience, and time.
Every Ryman village contributes to its local economy
by providing jobs that support thousands of families
across New Zealand and Victoria.
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We value the support of our suppliers
Ryman has a network of more than 3,000
suppliers across diverse industries in New Zealand
and Australia.
Many of our suppliers have been with us for a long
time and have grown their businesses with us.
They understand our mission to look after older
people, and they’ve shared in our success.
We value the support our suppliers have given us,
and we look forward to working with them in the
years ahead.
Supporting people in times of need
The Christchurch mosque attacks had a profound
impact on our people and their families.
We gave assistance packages to our team
members who were directly affected, and
provided counselling services for residents
and our teams in Christchurch and around the
country. We held fundraisers for the victims
of the attacks, and donated $100,000 to the
Victim Support fund.
In August 2018, we gave assistance packages to
62 of our team members who had family directly
affected by the floods in Kerala in Southern India.
We donated $10,000 to Kerala’s flood relief fund.
In February this year, several team members
at our Ernest Rutherford village in Stoke were
caught up in the Wakefield fire evacuations.
We gave assistance packages to those
affected and donated $10,000 to the
Tasman Mayoral Fund.
We’re reducing our carbon footprint
Our communities tell us that caring for the
environment is important to them. They want
to know we’re doing our best to leave the
environment in good shape for future generations.
In 2018, Ryman signed up to the Certified
Emissions Measurement And Reduction Scheme
(CEMARS). We’ve measured our carbon footprint
and developed an emissions management and
reduction plan.
CEMARS certified companies are independently
audited each year on their carbon emissions
performance to ensure accurate measurement
and reporting.
Ryman has bought its first fleet of electric cars.
In Auckland, we’re building a network of electric
car-charging stations that our residents can
also use.
We also plan to trial the use of new-generation
solar technology in our townhouses.
We’re committed to improving our environmental
capital over time by:
• reducing travel, using renewable energy
wherever possible, and adopting
waste-reduction programmes to reduce
waste to landfill
• moving to village designs that exceed
existing building-code requirements and
include renewable energy sources, such
as solar power.
ISO 14064-1
certifi ed
organisation
RYMAN HEALTHCARE
58

Our communities benefit from
our support
Over the past 20 years, Ryman has contributed
more than $4 million to charity.
Since 1999 we’ve chosen one charity partner
each year as a focus for our fundraising efforts.
We now choose two charity partners each year -
one in New Zealand and one in Australia.
Ryman matches, dollar for dollar, the amount
our people and residents raise.
We’re making a difference to
people’s health
This year we partnered with the
Stroke Foundation in New Zealand and
the Stroke Foundation in Victoria.
We funded the purchase and fit-out of a stroke
van in New Zealand. During the year, the van
travelled the length of the country, delivering
more than 10,000 blood-pressure checks.
The van, which we’ve committed to supporting
for another 3 years, has made a tangible
difference to the health of thousands of people.
We’ve also funded a stroke van in Victoria,
which will be on the road later this year.
We build strong relationships with
many different groups
This year we supported 20 not-for-profit
partners, including Alzheimers New Zealand,
the New Zealand Dementia Co-operative,
Dementia Australia, Well Foundation,
New Zealand Red Cross, Christchurch City
Mission, and the Christ Church Cathedral
Restoration Fund.
We support large-scale arts organisations,
including the Melba Opera Trust, Royal
New Zealand Ballet, New Zealand Symphony
Orchestra, Melbourne Symphony Orchestra,
and the Dame Malvina Major Foundation.
“Climate action is a
critical issue for the
health sector, and I’m
delighted that Ryman
Healthcare has taken a
lead on tackling it.”
Dr Ann Smith
CHIEF EXECUTIVE,
ENVIRO-MARK SOLUTIONS
ANNUAL REPORT 2019
59

We support local sports clubs
We’ve been a major supporter of bowls in
New Zealand and have individual relationships
with more than 120 bowls clubs. We’re a key
sponsor of the Ultimate Bowls Competition
in Australia, and we’re proud to support
Ryman’s own bowls team, Southern Storm,
in the competition.
We continue to support sport in Victoria through
our partnerships with local bowls clubs and
Victorian football league club, the Coburg Lions.
“Ryman is investing in
and encouraging work
that’s so important
– particularly as our
age and demographic
profile in New Zealand
changes.’’
The Right Honourable
Jacinda Ardern
PRIME MINISTER OF NEW ZEALAND
The Ryman Prize recognises the world’s
most innovative thinkers
Every year, we award work anywhere in the
world that enhances the quality of life for older
people. The Ryman Prize is a $250,000 award
that encourages the world’s most innovative
thinkers to help solve the problems that older
people experience.
The Right Honourable Jacinda Ardern presented
the 2018 prize to Professor Takanori Shibata,
a Japanese inventor and robotics pioneer.
Previous winners include founding director
of the Fred Hollows Foundation Gabi Hollows,
who has helped to restore sight for millions of
people in developing countries. World-renowned
researchers into Alzheimer’s disease
Professor Henry Brodaty and Professor
Peter St George-Hyslop won the prize in 2016
and 2017, respectively.
RYMAN HEALTHCARE
60

ANNUAL REPORT 2019
61

Apprentices at Ryman’s William Sanders village
in Devonport mastered some new skills and
made some local schoolchildren very happy.
Regional Construction Manager Matt Hutchinson
needed a project to allow his apprentices to
work on their weatherboarding skills. Matt’s
apprentices needed to master the material to
complete their qualifications. The problem was,
the village didn’t need any weatherboard work.
“We’ve built a strong relationship with the
Devonport community, so we put the word
out that we were looking for a special project.”
Matt received dozens of suggestions, including
one from Stanley Bay School who said they’d
love a playhouse for their playground.
“We thought that idea would work perfectly.”
Apprentice Rory Tai was involved in the project.
“It’s awesome that local kids get to enjoy a
playhouse. I’m really happy about that.
And I’m really happy that I’ve now got that
knowledge of weatherboard, which gets
me closer to completing my apprenticeship.”
62
RYMAN HEALTHCARE

Building community
connections
CONVERSATIONS
Lucy Naylor, principal at Stanley Bay School,
was thrilled when she saw their new playhouse
being lifted into place.
“The Ryman team did a fabulous job, and the
playhouse has been a hit with the children.”
Lucy says the timing was perfect after their
swing, which had reached the end of its life,
had to be removed.
“We were facing years of fundraising to replace it,
so we were really pleased when this opportunity
came up.”
“Thank you very much, Ryman Healthcare.”
“We’ve built a strong
relationship with the
Devonport community.”
Matt Hutchinson
REGIONAL CONSTRUCTION MANAGER
ANNUAL REPORT 2019
63

RYMAN HEALTHCARE
64

The long-term
opportunities
are significant
ANNUAL REPORT 2019
65

RYMAN HEALTHCARE
66

As the proportion of older people
in the population increases, so will
the demand for quality aged care.
Ryman will continue to create value for shareholders by
building Ryman communities wherever there’s a need.
The number of people aged 80 and over in New Zealand
and Victoria is forecast to nearly quadruple over the
next 40 years. In New Zealand, the population in this age
group is forecast to rise from around 175,000 today to
over 620,000 by 2058. In Victoria, it will rise from around
255,000 today to around 1.1 million by 2058.
We have a significant ongoing development programme
stretching out ahead in New Zealand and Victoria.
ANNUAL REPORT 2019
67

We’re planning ahead to meet
the demand
Our land bank is the strongest it’s ever been.
By the end of 2020, we plan to have five villages
open in Victoria. Our goal is to keep the land banks
in both countries at a supply of not less than 4 years.
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 maintaining a solid
land bank at different stages of development –
planning, design, consenting, and construction.
We will develop more villages in Victoria. In 7 years,
Victoria alone will have a population of seven
million people. That in itself creates enormous
potential for Ryman.
Happiness creates long-term value
We put our residents’ interests first, and that’s
what drives all our decisions.
We create value for stakeholders by making sure
that our residents are happy. To do this, we have
to make sure our people are happy and that they
share our values.
We constantly look to improve the experience
of working at Ryman. This year, we increased
pay rates and invested heavily in learning and
development.
FORECAST TOTAL POPULATION AGED 80+ OVER THE NEXT 40 YEARS
0
0.4M
NEW ZEALANDVICTORIA
0.8M
1.2M
20082013201820232028203320382043204820532058
RYMAN HEALTHCARE
68

Careful decision-making
minimises the risks
We are in a strong financial position. This allows
us to constantly innovate and improve, and to fulfil
our promises to our residents and their families.
While there is extraordinary demand ahead,
continued success is never guaranteed. Our
reputation is one of our greatest assets. We need
to deliver excellent care and a great experience
for our residents and families every day.
Our 35 years of experience assessing and
responding to market cycles helps us to make
sound decisions. We know what drives people
to choose Ryman. Affordability is key, as is a
location that’s connected to the local community
and facilities. We tailor our offering to meet local
demand and demographics.
We manage our occupancy rates closely.
We know that our good reputation results in
high occupancy and that, in turn, high occupancy
enhances our reputation as we impact the lives
of more people.
We’ve strengthened our
governance capacity
A fundamental part of what we do involves
buying land, consulting, designing and consenting
villages, and then building them safely. As the
scale and number of projects we’re working on
grows, so too does the complexity.
This year, the board responded by establishing
the Development and Construction Committee,
chaired by Anthony Leighs. As founder and
managing director of one of New Zealand’s
leading construction companies, Leighs
Construction, Anthony brings invaluable insights
and expertise.
Our development and construction executive
team has direct contact with the committee.
The committee, which reports to the main board,
is a valuable resource for the executive team as
they work through complex projects.
Good governance challenges and
supports our decision-makers
The board and the senior executive team work
collaboratively. The board’s role is to challenge
and support the team, making sure they have the
tools and resources to do their job.
If the board supports the views the executive
team puts forward, they let them know. If they
don’t support the views, they ask questions and
challenge them to reach the best decision.
ANNUAL REPORT 2019
69

We invest in our people and
our processes
To meet the demand ahead, we need to be
constantly evolving the way we do things.
We’ve made substantial progress on building
capacity in our inhouse development,
consultation, design, and construction teams.
In Melbourne, Auckland, and Christchurch,
we’ve added to all our teams so that we can
identify sites more quickly, create concept
designs, consult with the community, and get the
designs through the consenting process faster.
We’re always thinking ahead. As soon as one
team starts doing something differently, other
teams start to think about how they can continue
to evolve and develop their processes.
We’ve expanded our construction apprentice
scheme and we’re adding resources to our
quantity surveying and in-house design teams.
We’ve refined the way our design teams work
and we’ve added a new interior design team.
By using better technology and systems,
we continue to streamline our design processes.
The work we’ve done to recruit and train people
means we can have more projects on the go,
at one time.
We continue to build depth. If a team member
steps up to a new role, our goal is that the next
person is ready to take their place.
We are extending our use of building information-
management systems, and starting to use virtual
reality to bring our designs to life.
These system enhancements will help our
builders interpret information on site, and allow
our operations team to give better feedback
on concepts.
“We’ve now got more depth,
more muscle, more people
to do the work. We don’t
rely on any one person.”
Gordon MacLeod
CHIEF EXECUTIVE
RYMAN HEALTHCARE
70

ANNUAL REPORT 2019
71

Turning an investment
into a lifestyle
CONVERSATIONS
RYMAN HEALTHCARE
72

What started out as a small speculative
investment 20 years ago, has turned into
a way of life for investor-turned-resident,
John Harwood.
“I guess you could say I’ve been completely
Rymanised,’’ laughs John as he reflects on
his association with Ryman Healthcare over
two decades.
John invested when Ryman listed in 1999, and
sold a few shares along the way to pay back that
original investment. Thanks to steady growth over
the years, he now has a substantial investment.
His faith in Ryman has paid dividends – literally.
Around 5 years ago, John and his wife Marlene
were looking for a place to live with security
for the years ahead. They needed to know that
care would be available in the future, in case
something happened. The couple lived in
Orewa for 15 years after they’d retired, so knew
Evelyn Page Retirement Village well.
“I think the challenge
for Ryman is to keep
on growing and to
keep the same culture
and philosophy.”
John Harwood
INVESTOR-TURNED-RESIDENT
“The relief on our children’s faces when we said
we were moving in here was immense. Two of our
daughters work in health, so they know just how
good it is to be in a place where there’s care if you
need it. One of our daughters works in America
and says there’s nothing over there like Ryman.’’
John and Marlene love their life at Evelyn Page.
“There’s no doubt it’s a different life from normal
retirement. There’s so much here – there’s not
much else we need.’’
As a shareholder, John takes a keen interest
in Ryman. He’s attended annual meetings and
likes to have a chat with Chief Executive
Gordon MacLeod when he visits the village.
As a former business owner himself, he knows
there is always plenty to worry about. He’s
observed over the years, through his visits
to friends in other retirement villages, that
the competition has to work hard to catch
up to Ryman.
“I think the challenge for Ryman is to keep
on growing and to keep the same culture and
philosophy. The best thing you can do is to
keep on doing what you do – providing homes
and care that’s good enough for Mum – or Dad.’’
ANNUAL REPORT 2019
73

RYMAN HEALTHCARE
74

We are in a
strong financial
position
ANNUAL REPORT 2019
75

FINANCIAL RESULTS
Happy residents,
happy staff,
happy shareholders
We have a strong balance sheet. For the first
time, our net assets exceeded $2 billion.
We received $1 billion in cash receipts from
residents and we built 757 units and beds.
RYMAN HEALTHCARE
76

6-year summary
FOR THE YEAR ENDED 31 MARCH 2019
201920182017201620152014
Financial
Underlying profit (non-GAAP)$m2 27.0203.5 178.3 1 57.7 136.3
118.2
Reported net profit after tax$m326.0388.2 356.7 305.4 241.9
194.8
Net operating cash flows$m401.4349.3 322.8 315.5 234.0
238.4
Net assets$m2 ,170.11,940.5 1,652 .1 1 ,3 27.5 1,101.3 926.7
Interest-bearing debt to interest-

bearing debt plus equity ratio %38%35% 34% 29% 27% 23%
Dividend per sharecents22 .720.4 1 7. 8 15.8 13.6 11.8
Villages
New sales of occupation rightsno.414458600518545
436
Resales of occupation rightsno.
824825718690630541
Total sales of occupation rightsno.1,2381,2831,3181,2081,175
977
Land bank (to be developed)
1, 2, 3, 4
no.6,5935,9525,5544,2114,228
4,208
Portfolio:
Aged-care bedsno.3,6603,3673,2813,12 12,807
2,517
Retirement-village unitsno.6,8786,4145,9685,3474,7924,207
Total units and bedsno.10,5389,7819,2498,4687,5996,724
1 Includes retirement-village units and aged-care beds.
2 Included in the 6,593 beds and units are site acquisitions at Bishopspark (Christchurch) and Riccarton Racecourse (Christchurch) which are
subject to Overseas Investment Office approval.
3 In May 2019, Ryman entered into an unconditional sale and purchase agreement for the acquisition of land at Ringwood East (Melbourne). This
site adds an additional 299 retirement-village units and 120 residential-care beds to the land bank at 31 March 2019.
4 Of the 6,593 units and beds in the land bank, 3,681 are subject to resource and building consent.
201920182017201620152014
Underlying profit (non-GAAP)$m 2 27.0 203.5 178.3 1 57.7 136.3 118.2
Plus unrealised gains on
retirement-village units$m 102.4 185.3 184.7 151.6 105.7
85.1
Less deferred tax movement$m
(3.4) (0.6) (6.3) (3.9) (0.1) (8.5)
Reported net profit after tax$m
326.0 388.2 356.7 305.4 241.9 194.8
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 so may not be comparable to similar financial information presented by other entities.
The Group uses underlying profit, with other measures, to measure performance. Underlying profit is a measure that 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.
*Generally Accepted Accounting Principles
ANNUAL REPORT 2019
77

RYMAN HEALTHCARE
78

Financial
statements
80Primary statements
80Consolidated income statement
80Consolidated statement of comprehensive income
81Consolidated statement of changes in equity
82Consolidated balance sheet
83Consolidated statement of cash flows
85
Notes to the consolidated financial statements
85Statement of compliance
85Basis of preparation
85Measurement base
85Critical judgements in applying accounting policies
86Summary of significant accounting policies
94Other notes
94Operating expenses
94Depreciation and amortisation expense
95Finance costs
95Income tax
97Trade and other receivables
98Property, plant and equipment
100Investment properties
101Bank overdraft
101Trade and other payables
101Employee entitlements
102Borrowings
102Occupancy advances
103Share capital
103Reserves
104Dividends
104Related-party transactions
105Key management personnel compensation
106Financial instruments
111Commitments
111Contingent liabilities
112Reconciliation of net profit after tax with net cash flow from operating activities
113Subsidiary companies
113Segment information
115Employee share schemes
116Subsequent events
116Authorisation
118Independent auditor’s report
ANNUAL REPORT 2019
79

Consolidated income statement
FOR THE YEAR ENDED 31 MARCH 2019
Notes20192018
$000$000
Care fees302,003270,483
Management fees78,94470,087
Interest received532441
Other income8551,528
Total revenue382,334342,539
Fair-value movement of investment properties7292,910351,514
Total income675,244694,053
Operating expenses1(303,745)(268,040)
Depreciation and amortisation expense2(23,125)(20,580)
Finance costs3(18,959)(16,577)
Total expenses(345,829)(305,197)
Profit before income tax329,415388,856
Income-tax expense4(3,429)(640)
Profit for the year325,986388,216
Earnings per share
Basic and diluted (cents per share) 1365.27 7.6
Consolidated statement of comprehensive income
FOR THE YEAR ENDED 31 MARCH 2019
Notes20192018
$000$000
Profit for the year325,986388,216
Items that may be later reclassified to profit or loss
Fair-value movement and reclassification of interest-rate swaps14(5,181)(725)
Deferred tax movement on interest-rate swap reserve141,451203
Gain on hedge of foreign-owned subsidiary net assets141,3332,193
Loss on translation of foreign operations14(4,966)(5,502)
(7,363)(3,831)
Items that may be later reclassified to profit or loss
Revaluation of property, plant and equipment (unrealised)6, 1424,456–
24,456–
Other comprehensive income17,093(3,831)
Total comprehensive income343,079384,385
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 financial statements.
RYMAN HEALTHCARE
80

Consolidated statement of changes in equity
FOR THE YEAR ENDED 31 MARCH 2019
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 201733,290233,319(5,391)1,066(20,540)1,410,3471,652,091
Profit and total
comprehensive income
for the year14––(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 201833,290233,319 (5,913) (2,243) (22,497) 1,704,563 1,940,519
Balance at 1 April 201833,290233,319(5,913)(2,243)(22,497)1,704,5631,940,519
Profit and total
comprehensive income
for the year14–24,456(3,730)(3,633)–325,986343,079
Treasury stock
movement14––––(4,968)–(4,968)
Dividends paid to
shareholders15–––––(108,500)(108,500)
Closing balance at
31 March 201933,2902 5 7,7 7 5(9,643)(5,876)( 2 7, 4 6 5 )1,922,0492 ,1 7 0,1 3 0
The accompanying notes form part of these financial statements.
ANNUAL REPORT 2019
81

Consolidated balance sheet
AT 31 MARCH 2019
Notes20192018
$000$000
Assets
Trade and other receivables5344,8143 57,4 8 3
Advances to employees248,1525,836
Property, plant and equipment61,188,9401,014,514
Investment properties75,081,6074,398,304
Intangible assets27,96820,713
Total assets6,651,4815,796,850
Equity
Issued capital1333,29033,290
Asset revaluation reserve142 57,7 75233,319
Interest-rate swap reserve14(9,643)(5,913)
Foreign-currency translation reserve14(5,876)(2,243)
Treasury stock14, 24(27,4 6 5 )(22,497)
Retained earnings141,922,0491,704,563
Total equity2 ,1 7 0,1 3 01,940,519
Liabilities
Trade and other payables9126,90998,308
Employee entitlements1023,83420,237
Revenue in advance57,84551,955
Interest-rate swaps1813,3938,212
Refundable accommodation deposits34,01330,757
Bank loans (secured)111,324,0031,060,493
Occupancy advances (non-interest bearing) 122,827,6902 ,514,683
Deferred tax liability (net)473,66471,686
Total liabilities 4,481,3513,856,331
Total equity and liabilities6,651,4815,796,850
Net tangible assets
Basic and diluted (cents per share)13 428.4384.0
The accompanying notes form part of these financial statements.
RYMAN HEALTHCARE
82

Consolidated statement of cash flows
FOR THE YEAR ENDED 31 MARCH 2019
Notes20192018
$000$000
Operating activities
Receipts from residents 211,009,496875,140
Interest received588515
Payments to suppliers and employees(306,234)(270,231)
Payments to residents(283,736)(241,676)
Interest paid(18,689)(14,491)
Net operating cash flows21401,425349,257
Investing activities
Purchase of property, plant and equipment(150,252)(178,897)
Purchase of intangible assets(6,918)(6,407)
Purchase of investment properties(364,186)(269,936)
Capitalised interest paid(31,003)(22 ,701)
Advances to employees(2,316)(952)
Net investing cash flows(554,675)(478,893)
Financing activities
Drawdown of bank loans (net)266,718225,592
Dividends paid(108,500)(94,000)
Purchase of treasury stock (net)(4,968)(1,956)
Net financing cash flows153,250129,636
Net increase in cash and cash equivalents––
Cash and cash equivalents at the beginning of the year––
Cash and cash equivalents at the end of the year––
The accompanying notes form part of these financial statements.
ANNUAL REPORT 2019
83

RYMAN HEALTHCARE
84

Notes to the consolidated financial statements
FOR THE YEAR ENDED 31 MARCH 2019
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. Its financial statements comply
with these Acts.
The consolidated financial statements have been
prepared in line with Generally Accepted Accounting
Principles 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.
Apart from the new standards adopted in the current
period (see (t) below), the accounting policies
set out below have been consistently applied in
preparing the financial statements for the year ended
31 March 2019. These policies have also been applied
to the comparative information presented for the
year ended 31 March 2018.
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 (d) and note 6
• Valuation of investment property – policy (e)
and note 7
ANNUAL REPORT 2019
85

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
SUMMARY OF 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
The Group recognises revenue and income from
the following major sources.
• Care fees
• Management fees
• Interest received
Revenue is recognised as follows.
Care fees
Care facility and retirement-village service
fees are linked to providing service on a specific
day (service date). Revenue from care and
retirement-village service fees are recognised
on completion of the service date.
Management fees
Residents of the Group’s independent-living units
and serviced apartments pay a management fee
for the right to share in the use of the village centre
and other common facilities. The management
fee is calculated as a percentage of the
occupation-right agreement amount. The fee
accrues monthly, for a set period, based on the
terms of individual contracts.
Management fees are recognised on a
straight-line basis over the period of service.
The period is determined as being the greater
of the expected period of tenure, or the
contractual right to management fees.
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. The estimated
expected periods of tenure are unchanged from
last year.
The timing of when management fees are
recognised is an accounting estimate.
Historical experience across all villages is
used in determining periods of tenure.
Interest received
Interest income is recognised in the income
statement as it accrues, using the effective
interest method.
RYMAN HEALTHCARE
86

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
c. Borrowing costs
Borrowing costs directly attributable to acquiring,
constructing, or producing 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. Property, plant and equipment
Property, plant and equipment comprises
completed care facilities, corporate assets and
land, and care facilities under development.
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.
e. 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 line with
accounting policy (b).
ANNUAL REPORT 2019
87

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
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. The Group
uses 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.
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. However, this is 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.
RYMAN HEALTHCARE
88

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
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.
Financial assets at amortised costs
Trade receivables are held to collect contractual
cash flows. The cash flows are the payment of
principal and interest.
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.
The allowance recognised is the lifetime expected
credit losses based on an assessment of each
individual debtor. It is estimated based on the
Group’s historical credit loss experience and
general economic conditions. Expected credit
loss represents the expected credit losses that
will result from all possible default events over the
expected life of the debtor.
Trade receivables are written off when there is no
realistic chance of recovery.
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 non-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 the termination of
the occupation agreement and the settlement
of a new occupancy advance for the same
retirement-village unit.
Refundable accommodation deposits
Refundable accommodation deposits relate to
deposits held on behalf of residents who reside in
rooms in the care centres 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. Any differences
between the initial amount recognised and the
redemption value is recognised in profit and loss
using the effective interest-rate method.
ANNUAL REPORT 2019
89

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
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.
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.
Hedge accounting
The Group designates certain derivatives
as hedging instruments. At the start of the
hedge relationship, the Group documents the
relationship between the hedging instrument and
the hedged item. Risk-management objectives
and strategies for undertaking hedge transactions
are documented. The Group also documents at
the start and on an ongoing basis whether the
hedging instrument is effective.
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.
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
when 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.
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) if it is unpaid (or refundable).
RYMAN HEALTHCARE
90

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
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 on 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 when it is
probable that future taxable profits will be available,
and against which the asset can be used. Deferred
tax assets are reduced if 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 leadership
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.
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
• 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.
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.
ANNUAL REPORT 2019
91

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
Operating activities represent all transactions and
other events that are not investing or financing
activities and include 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 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
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.
• Adequate technical, financial, and other
resources are available to complete the
development and 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.
RYMAN HEALTHCARE
92

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
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 amended standards
and interpretations
In the current year, 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.
NZ IFRS 15 Revenue from Contracts with
Customers was effective for the Group from
1 April 2018. NZ IFRS 15 requires identification
of discrete performance obligations within a
transaction. An associated transaction price is
then allocated to these obligations. Revenue is
recognised on satisfaction of these performance
obligations. These occur when control of the
goods or services are transferred to the customer
and can be at a point in time or over time.
The application of NZ IFRS 15 has not resulted
in changes in revenue recognition.
NZ IFRS 9 Financial Instruments was effective
for the Group from 1 April 2018. There was no
material impact of the adoption and therefore
no prior period restatements were required as
a result of the adoption. No financial assets or
financial liabilities were reclassified because of
the application of NZ IFRS 9. However, there have
been some updates to the note disclosures in
the financial statements.
Outlined below are 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 2019.
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 has assessed the impact of NZ IFRS 16.
Based on this assessment, the Group does not
expect any material impact on the financial
statements from adopting this standard.
The assessment 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
costs and amortisation, as opposed to only
operating costs.
The amount recognised on the balance sheet will
be based on the discounted value of the operating
lease commitments of approximately $8.9 million
at 31 March 2019 (see note 19).
The recognition exemptions allowed in NZ IFRS 16
for short-term leases or leases of low-value assets
will be applied. The expenses incurred for these
leases will continue to be recognised on a
straight-line basis in the income statement.
Rental and operating lease expenses previously
recognised within other operating expenses will
be recognised as amortisation for right-of-use
assets and finance costs for lease liabilities in the
income statement.
Operating lease payments previously classified
as cash flows from operating activities will be
reclassified as cash flows from financing activities
for principal repayments of the lease liability.
There will be no impact on actual cash payments.
For leases where the Group is the lessor there will
be no change to the recognition or measurement
on adoption of NZ IFRS 16.
ANNUAL REPORT 2019
93

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
1. OPERATING EXPENSES
20192018
$000$000
Employee costs (see below)212,514179,555
Property-related expenses38,91932,251
Other operating costs (see below)52,31256,234
Total operating expenses303,745268,040
Employee costs and other operating costs include:
Post-employment benefits (KiwiSaver/Superannuation) 5,4524,521
Auditor’s remuneration to Deloitte Limited comprises:
• Audit of financial statements
• Australia aged-care reporting
• IT and cyber-security assurance.
197
6
–
186
6
10
Directors’ fees (note 17)893828
Donations^386315
Lease and rental payments2,1981,577
^ No donations have been made to any political party (2018: $Nil).
2. DEPRECIATION AND AMORTISATION EXPENSE
20192018
$000$000
Depreciation
• Buildings6,9396,597
• Plant and equipment6,9895,7 76
• Furniture and fittings5,5105, 874
• Motor vehicles1,0861,020
20,52419,267
Amortisation
• Software2,6011,313
2,6011,313
Total2 3 ,1 2 520,580
RYMAN HEALTHCARE
94

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
3. FINANCE COSTS
20192018
$000$000
Total interest paid on bank loans47,4 2 236,427
Release of interest-rate swap reserve2,5402,851
Amount of interest capitalised (note 6)(31,003)(22 ,701)
Net interest expense on bank loans18,95916,577
4. INCOME TAX
20192018
$000$000
a. Income tax recognised in income statement
Tax expense comprises:
Current tax expense ––
Deferred tax expense 3,429640
Total income-tax expense3,429640
The 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 expense329,415388,856
Income-tax expense calculated at 28%92,236108,880
Tax effect of:
Non-taxable income(82,015)(98,423)
Other(6,792)(9,817)
Total tax expense3,429640
Non-taxable income arises principally from the fair-value movement of investment property.
The tax rate used in the above reconciliation is the corporate tax rate of 28 percent (2018: 28 percent)
payable by New Zealand corporate entities on taxable profits under New Zealand tax law.
Total Group tax losses available in New Zealand amounted to $193.4 million (2018: $114.9 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 (2018: $Nil).
Australian tax losses have not been recognised in the current year. Total tax losses available in
Australia amounted to $49.4 million (2018: $35.2 million).
ANNUAL REPORT 2019
95

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
4. INCOME TAX (CONTINUED)
20192018
%$000%$000
Reconciliation of effective tax rate
Profit before tax 329,415388,856
Income tax using the corporate tax rate 28.0%92,236 28.0%108,880
Non-taxable income (24.9)%(82,015) (25.3)%(98,423)
Other (2 .1)%(6,792) (2.5)%(9,817)
Total income-tax expense 1.0%3,429 0.2%640
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
2019
Property, plant and equipment(52,465)(6,109)–(58,574)
Investment properties(4 4,670)(5,707)–(50,377)
Deferred management-fee revenue in advance(12,744)(14,155)–(26,899)
Interest-rate swap2,300–1,4513,751
Other3,710565–4,275
Tax value of loss carry-forwards recognised32,18321,977–54,160
Total deferred taxation(71,686)(3,429)1,451(73,664)
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)
RYMAN HEALTHCARE
96

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
4. INCOME TAX (CONTINUED)
20192018
$000$000
c. Imputation credit memorandum account
Closing balance88108
Imputation credits available directly and indirectly to shareholders
of the parent company, through:
• parent company––
• subsidiaries.88108
Closing balance88108
5. TRADE AND OTHER RECEIVABLES
20192018
$000$000
Trade debtors 331,677 349,694
Other receivables13,1377,78 9
Total trade and other receivables344,8143 5 7, 4 8 3
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. Apart from the adoption of NZ IFRS 9, no changes have been made to the techniques
or significant assumptions used in determining expected credit losses during the reporting period.
ANNUAL REPORT 2019
97

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
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
2019
Gross carrying amount
Balance at 1 April 2018291,660335,144336,15166,7 7843,27410,0651,083,072
Additions–10,247174,18612,9631,7081,439200,543
Net foreign-currency exchange
difference(508)(199)(2,560)(18)(3)(1)(3,289)
Transfer from property under
development6,19025,790(36,733)2 ,4272,326––
Transfer from property under
development to investment property––(26,760)–––(26,760)
Revaluation24,456(11,500)––––12,956
Balance at 31 March 2019321,798359,482444,28482,15047,30511,5031,266,522
Accumulated depreciation
Balance at 1 April 2018–(6,662)–(23,771)(32,248)(5,877)(68,558)
Current-year depreciation–(6,939)–(6,989)(5,510)(1,086)(20,524)
Revaluation–11,500––––11,500
Balance at 31 March 2019–(2,101)–(30,760)(37,758)(6,963)(77,582)
Total book value321,798357,381444,28451,3909,5474,5401,188,940
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
RYMAN HEALTHCARE
98

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
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,
at 31 March 2019, in line with NZ IFRS 13. These revaluations are undertaken every 2 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 $60,000 to $150,000 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 $327.2 million (2018: $258.7 million) and is valued at cost.
Interest for the Group of $31.0 million (2018: $22.7 million) has been capitalised during the period of
construction in the current year. The weighted-average capitalisation rate on funds borrowed is 3.89 percent
per annum (2018: 3.64 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 land BuildingsTotal
$000$000$000
Carrying amount (at cost)
Carrying amount at 31 March 201981,062341,1154 2 2 ,1 7 7
Carrying amount (at cost)
Carrying amount at 31 March 201875,380312,216387,596
ANNUAL REPORT 2019
99

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
7. INVESTMENT PROPERTIES
20192018
$000$000
At fair value
Balance at beginning of financial year4,398,3043,661,445
Additions395,931391,221
Fair-value movement:
Realised fair-value movement:
• new retirement-village units87,86658,955
• existing retirement-village units.102,600107,233
190,466166,188
Unrealised fair-value movement102,444185,326
292,910351,514
Net foreign-currency exchange differences(5,538)(5,876)
Net movement for the year683,303736,859
Balance at end of financial year5,081,6074,398,304
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. 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 2019. 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) (2018: 0.5 percent to 3.5 percent) and discount rate (ranging from
12 percent to 16 percent) (2018: 12 percent to 16 percent).
A 0.5 percent decrease in the discount rate would result in a $72.0 million higher fair-value measurement.
Conversely, a 0.5 percent increase in the discount rate would result in a $67.1 million lower fair-value
measurement.
A 0.5 percent decrease in the 5-year plus growth rate would result in a $114.1 million lower fair-value measurement.
Conversely, a 0.5 percent increase in the 5-year plus growth rate would result in a $121.2 million higher
fair-value measurement.
Other 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 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.
RYMAN HEALTHCARE
100

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
7. INVESTMENT PROPERTIES (CONTINUED)
Investment property includes investment property work in progress of $325.1 million (2018: $252.9 million),
which has been valued at cost. For work in progress, cost represents fair value.
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 $6 million
over a remaining 6-month period (31 March 2018: $17.5 million over an 18-month period). The estimates are
based on currently available information.
Operating expenses
Direct operating expenses arising from investment property that generated income from management fees
during the period amounted to $5.1 million (2018: $4.8 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 to occupy 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 2019 was 10.05 percent (2018: 10.05 percent).
9. TRADE AND OTHER PAYABLES
20192018
$000$000
Trade payables55,28348,663
Other payables71,62649,645
Total trade and other payables126,90998,308
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 2019 includes $68.1 million (2018: $45.5 million) for the purchase of land.
10. EMPLOYEE ENTITLEMENTS
20192018
$000$000
Holiday-pay accrual and other benefits23,83420,237
ANNUAL REPORT 2019
101

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
11. BORROWINGS
20192018
$000$000
Bank loans (secured) – NZD1,063,342880,007
Bank loans (secured) – AUD in NZD260,661180,486
Total bank loans (secured) 1,324,0031,060,493
Less than 1 year4,34214,007
Within 1–5 years1,319,6611,046,486
Average interest rates – NZD 3.95% 3.72%
Average interest rates – AUD 3.69% 3.80%
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. Retirement-village unit titles provided
as security to residents are excluded (see 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 repayment terms are disclosed in note 18.
12. OCCUPANCY ADVANCES (NON-INTEREST BEARING)
20192018
$000$000
Gross occupancy advances (see below)3,203,8512,836,314
Less management fees and resident loans(376,161)(321,631)
Closing balance2,827,6902,514,683
Movement in gross occupancy advances
Opening balance2,836,3142,407,644
Plus net increases in occupancy advances:
• new retirement-village units290,701307,282
• existing retirement-village units.102,600107,233
Net foreign-currency exchange differences(3,408)(4,457)
(Decrease)/increase in occupancy advance receivables(22,356)18,612
Closing balance3,203,8512,836,314
Gross occupancy advances are non-interest bearing.
RYMAN HEALTHCARE
102

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
13. SHARE CAPITAL
Issued and paid-up capital consists of 500,000,000 fully paid ordinary shares (2018: 500,000,000) less
treasury stock of 2,577,272 shares (2018: 2,477,076 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 (2018: 500,000,000 shares).
Shares purchased on market under the leadership share scheme (note 24) are treated as treasury stock
(note 14) until vesting to the employee.
14. RESERVES
20192018
$000$000
Asset revaluation reserve
Opening balance233,319233,319
Revaluation24,456–
Closing balance2 5 7,7 7 5233,319
Interest-rate swap reserve
Opening balance(5,913)(5,391)
Valuation of interest-rate swap(7,721)(3,576)
Released to income statement2,5402,851
Deferred tax movement on interest-rate swap reserve1,451203
Closing balance(9,643)(5,913)
Treasury stock
Opening balance(22,497)(20,540)
Acquisitions(11,990)(9,420)
Vesting /forfeiture of shares7,0 2 27,463
Closing balance( 2 7, 4 6 5 )(22,497)
Foreign currency translation reserve
Opening balance(2,243)1,066
Gain on hedge of foreign-owned subsidiary net assets1,3332,193
Loss on translation of foreign operations(4,966)(5,502)
Closing balance(5,876)(2,243)
Retained earnings
Opening balance1,704,5631,410,347
Net profit attributable to shareholders325,986388,216
Dividends paid(108,500)(94,000)
Closing balance1,922,0491,704,563
ANNUAL REPORT 2019
103

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
15. DIVIDENDS
2019201920182018
Cents
per share
Total
$000
Cents
per share
Total
$000
Recognised amounts
Final dividend paid – prior year10.9054,5009.3046,500
Interim dividend paid – current year10.8054,0009.5047,500
108,50094,000
Unrecognised amounts
Final dividend – current year11.9059,50010.9054,500
Full-year dividend – current year22 .70113,50020.40102,000
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
20192018
$000$000
Rental expense 1791,089
In August 2012, Ryman Healthcare Limited entered into an 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.
Kevin Hickman resigned as a director of Ryman Healthcare Limited on 1 June 2018. The rental expense
for the period to the date Kevin Hickman resigned was $178,879.
Warren Bell is a trustee of certain Airport Business Park shareholders, but has no personal financial interest.
RYMAN HEALTHCARE
104

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
17. KEY MANAGEMENT PERSONNEL COMPENSATION
20192018
$000$000
Compensation
Short-term employee benefits (senior executive team)4,4884,495
Salary to managing director (resigned June 2017)–844
Directors’ fees893828
Total key management personnel and directors’ compensation5,3816 ,1 6 7
Key management personnel are the senior executive team of the Group and include the chief executive
and six senior executive team members at 31 March 2019 (2018: chief executive and nine members
of the senior management team). The short-term employee benefits detailed above are those of the
seven members of the senior executive team in place at 31 March 2019 (2018: chief executive and
nine members of the senior management team).
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 (2018: all directors). Directors’ fees above exclude remuneration
paid to the managing director in 2018.
Post-employment benefits (KiwiSaver/Superannuation) employer contributions included in short-term
employee benefits (senior executive team) above is $112,455 (2018: $110,881 senior management team
and included in salary to managing director in 2018: $62,909).
In addition, the Company provides certain senior employees with limited recourse loans on an interest-free
basis to support employees’ participation in the leadership 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. During the year to 31 March 2018, in addition to the compensation detailed
above, Simon Challies received additional payments totalling $1.32 million following his resignation,
including in his role as an advisor to the board.
ANNUAL REPORT 2019
105

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
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
20192018
$000$000
Financial assets
Financial assets at amortised cost (loans and receivables)352,966363,319
352,966363,319
Financial liabilities
Amortised cost4,312,6153,704,241
Derivative instruments in designated hedge accounting relationships
(interest-rate swaps)13,3938,212
4,326,0083,712,453
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 2019 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 2019 was $353.0 million (2018: $363.3 million) and there
were no material overdue debtors at 31 March 2019 (2018: $Nil). The composition of financial assets
is shown in the table below.
20192018
$000$000
Trade and other receivables (note 5)344,8143 57,4 8 3
Advances to employees (note 24)8,1525,836
352,966363,319
RYMAN HEALTHCARE
106

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
18. FINANCIAL INSTRUMENTS (CONTINUED)
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.
These interest-rate swaps qualify for cash-flow hedge accounting. 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. The effective portion of the change in the fair value of the swaps is recognised in other
comprehensive income and accumulated as a separate component of equity. The ineffective portion is
recognised in the income statement.
The hedge ratio is 1:1. The face value of the interest-rate swaps is the same value as the face value of the
bank loans. As the critical terms of the interest-rate swap contracts and the hedged item are the same,
significant hedge ineffectiveness is not expected.
At 31 March 2019, 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 $250 million
(2018: $120 million) from a floating rate to a fixed rate of 3.145 percent (2018: 4.260 percent).
The fair value of the swaps at 31 March 2019 was a liability of $13.4 million (2018: liability of $8.2 million).
The interest-rate swaps cover notional debt amounts for a term of 5 years at a composite interest rate
of 3.145 percent (2018: 4.260 percent).
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
2019201820192018
%%$000$000
Outstanding
Less than 1 year3.145%4.260%180,000120,000
1–2 years3.145%4.260%180,000110,000
2–3 years3.145%4.260%250,000110,000
3–4 years3.145%4.260%200,00090,000
4–5 years3.145%4.260%150,00090,000
ANNUAL REPORT 2019
107

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
18. FINANCIAL INSTRUMENTS (CONTINUED)
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 NZD $314.1 million (2018: NZD $239.5 million) and AUD $30.5 million
(2018: AUD $Nil) of undrawn facilities at its disposal to further reduce liquidity risk.
RYMAN HEALTHCARE
108

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
18. FINANCIAL INSTRUMENTS (CONTINUED)
Maturity profile
The following table details the Group’s exposure to liquidity risk (including contractual interest obligations
for bank loans).
Contractual maturity dates
20192018
On
demand
Less
than
1 year
Greater
than
1 yearTotal
On
demand
Less
than
1 year
Greater
than
1 yearTotal
$000$000$000$000$000$000$000$000
Financial liabilities:
Trade and other payables–126,909–126,909–98,308–98,308
Interest-rate swaps–13,393–13,393–8,212–8,212
Refundable
accommodation deposits34,013––34,01330,757––30,757
Bank loans (secured)–9,4501,319,6611,329,111–23,3581,046,4871,069,845
Occupancy advances
(non-interest bearing)–348,0862,479,6042,827,690–315,4602,199,2232 ,514,683
34,013497,8383,799,2654,331,1163 0,757445,3383 , 24 5,7 1 03,721,805
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 (2018: $2.8 million) overdraft facility that is secured. Interest would be payable at the
3-month BKBM rate, plus a specified margin (note 8).
• Bank debt facilities of the Group total approximately $1.7 billion (2018: $1.3 billion) made up as follows.
–An NZD loan facility of $1.46 billion (2018: $1.3 billion), of which 35.0 million (2018: $35.0 million) is for
1 year, $521.25 million (2018: $316.25 million) is for 3 years, $485.3 million (2018: $632.5 million) is for
4 years, and $416.25 million (2018: $316.25 million) is for 5 years.
–An AUD loan facility of AUD$220 million (2018: AUD$Nil), of which AUD$220.0 million (2018: AUD$Nil)
is for 4 years.
–In 2019, the NZD loan facility of $1.46 billion is provided by ANZ Bank New Zealand Ltd ($350.0 million),
Commonwealth Bank of Australia ($274.9 million), Bank of New Zealand / National Australia Bank
($320.5 million), Westpac ($237.4 million), MUFG ($175.0 million), and Bank of China ($100.0 million)
under the terms of a syndicated loan agreement. The facility allows for the funds to be drawn down in
NZD up to the $1.46 billion NZD limit.
ANNUAL REPORT 2019
109

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
18. FINANCIAL INSTRUMENTS (CONTINUED)
–In 2019, the AUD loan facility of AUD$220 million is provided by ANZ Bank New Zealand Ltd
(AUD$100.0 million), Commonwealth Bank of Australia (AUD$42.5 million), Bank of New Zealand/
National Australia Bank (AUD$42.0 million), and Westpac (AUD$35.5 million) under the terms of a
syndicated loan agreement.
–In 2018, the NZD loan facility of $1.3 billion was 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 ($125.0 million) under the terms of a
syndicated loan agreement.
–In 2018, our AUD borrowing was part of a facility which allowed us to draw down in either AUD or NZD,
up to the $1.3 billion NZD limit.
The Group renews its facilities annually to ensure an appropriate portion matures on a rolling 1, 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 2019 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.
The Group’s profit and total comprehensive income for the year ended 31 March 2019 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.
RYMAN HEALTHCARE
110

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2019
18. FINANCIAL INSTRUMENTS (CONTINUED)
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 2019 and 31 March 2018.
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 $127.3 million at 31 March 2019
(2018: $101.2 million).
Operating lease and other commitments
Operating lease expenditure committed to, but not recognised, in the financial statements relating to
property rental.
20192018
$000$000
Commitments:
less than 1 year1,8581,445
between 1 and 5 years6,7282,271
more than 5 years315187
8,9013,903
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 2019 (2018: $Nil).
ANNUAL REPORT 2019
111