Ryman unaudited first half underlying profit $103m, up 6.2%

Half Year Results20 November 2019RYMHealthcare

Results for announcement to the market
Name of issuer Ryman Healthcare Limited
Reporting Period 6 months to 30 September 2019
Previous Reporting Period 6 months to 30 September 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$207,751,000 11.0%
Total Revenue $387,760,000 13.2%
Net profit/(loss) from
continuing operations
$188,281,000 11.1%
Total net profit/(loss) $188,281,000 11.1%
Underlying profit (non-GAAP)
–see explanation below
$103,042,000 6.2%
Interim/Final Dividend
Amount per Quoted Equity
Security
11.5 cents
Imputed amount per Quoted
Equity Security
Not imputed
Record Date 6 December 2019
Dividend Payment Date 13 December 2019
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security (cents per
share)
452.5 405.6
A brief explanation of any of
the figures above necessary to
enable the figures to be
understood
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

Authority for this announcement
Name of person authorised to
make this announcement
David Bennett
Contact person for this
announcement
David Bennett
Contact phone number +64 3 366 4069
Contact email address david.bennett@rymanhealthcare.com
Date of release through MAP 21 November 2019

Unaudited financial statements accompany this announcement.

Ryman Healthcare Ltd, 92 Russley Rd, Avonhead, Christchurch 8140
MEDIA RELEASE NOVEMBER 21, 2019
Ryman reports unaudited first half underlying profit of $103 million, up 6.2%
Highlights:
•Unaudited underlying profit $103 million, up 6.2%, driven by resales
•Reported (IFRS) profit increased 11.1% to $188.3 million
•Interim dividend lifted to 11.5 cents per share, in line with underlying profit growth
•Full year underlying profit expected to be between $250 million and $265 million
(between +10% and +17%)
•Operating cashflows up 17.6% to $256.1 million
•Total assets $7.26 billion, up 17.4% on September last year
•New sites in Highett in Victoria and Northwood in Christchurch
•Record activity in Victoria, target remains to have 5 villages open by the end of 2020
•Increased investment in resident experience, team development and safety
•Continued strong demand with 97% occupancy at established care centres
•Only 1.6% of resale stock unsold at the end of September
R
yman Healthcare’s unaudited first half underlying profit rose 6.2% to $103 million, driven
by record resales volumes. As previously signalled, the second half is expected to be
stronger as the build programme lifts, and full year underlying profits are expected to range
from $250 million to $265 million.
Reported (IFRS) profit, which includes unrealised fair value gains on investment property,
increased 11.1% to $188.3 million.
Shareholders will receive an increased interim dividend of 11.5 cents per share in line with
the increase in underlying profit. The record date for entitlements is December 6, and the
dividend will be paid on December 13.
Cash generation was strong in the half, with operating cashflows up 17.6% to $256.1 million.
Total assets were $7.26 billion, up 17.4% on last year, reflecting the value created by
ongoing development and strong demand.
Full year profits are expected to lift in line with growth in the build programme, and
construction is targeted to be under way at 12 sites by March 2020, up from eight a year
ago.

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

Chief Executive Gordon MacLeod said: “We have significantly lifted our land bank over the
past three years to match our growth aspirations in New Zealand and Victoria.
“We are now moving into our biggest ever build programme on stunning sites, which is
exciting for the team and our next generation of residents.’’
Chairman Dr David Kerr said Ryman’s unique integrated villages and high-quality care
continued to be in strong demand, with care occupancy in established villages running at
97%. Only 1.6% of the retirement village portfolio was available for resale at September 30.
Ryman’s New Zealand resales volumes grew 11. 3%, while volumes in the wider real estate
market declined 15%, which demonstrated the continued appeal of Ryman villages.
“The first half result has been achieved against a background of tough market conditions in
Melbourne and Auckland, so we are satisfied with what has been achieved,’’ Dr Kerr said.
Mr MacLeod said the focus continued to be on delivering new villages, innovating to
improve the experience of living and working in a Ryman community, and making sure
everyone got home safe each day.
Ryman acquired two new sites – Highett in Victoria and Northwood in Christchurch –
during the first half taking the land bank to 7, 074 units and beds.
“The 22 sites in our land bank, 10 of which already have development under way, represent
the equivalent of 66% of our existing portfolio. On development of the existing land bank
over the coming years Ryman expects to be providing homes and care for more than 20,000
people.’’
Ryman is targeting a build rate of 900 units and beds this year, up from 757 in the 2019
financial year. The build rate is lifting to meet Ryman’s financial aspirations of doubling
underlying profit every five years and to create a tail of growing earnings.
A highlight of the half was the progress in Victoria, Mr MacLeod said.
“The team exchanged a record 260 new sales, resales and care contracts in the first half in
Victoria. We are interacting with more people than ever and there is no doubt our brand
awareness is growing.’’
We have recently submitted our tenth development application in Victoria. Five
development approvals have been granted already, and Ryman continues to target having
five villages open by the end of 2020 calendar year.
“As well as a record amount of construction activity, we have a whole lot of innovations
feeding through that will make life in a Ryman village better than ever for our residents,’’ Mr
MacLeod said.
“We have had great feedback from our residents and their families in our recent surveys,
and we continue to strive to get even better.’’
The Ryman operations team would continue to rollout a revamp of dementia care called
myRyman Life, and the trial of its new Ryman Delight entertainment and wellbeing
programme for residents continued.

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

Dr Kerr announced the board had been further strengthened with the appointment of
Melbourne-based director Paula Jeffs. Paula is a human resources executive with experience
across healthcare, finance and government sectors.
“We’re a high growth business and we know that finding and developing the right sort of
people is critical to our success,’’ Dr Kerr said.
“Paula brings great insight into people and talent, and I am sure she will be a great
contributor. We have got a wealth of talent and an excellent mix of skills and diverse views
on the board which will see us into the future.’’
Dr Kerr said Ryman had now invested $4 billion in building communities and returned $860
million in dividends since listing in 1999.
“We are moving into a record expansion phase in the next 18 months, but it is not growth
for growth’s sake. Our growth reflects the fact that we want to build as many communities
as we can so that more people can benefit from the Ryman experience.’’
Ten new villages currently under way:
New Zealand Victoria
Lynfield, Auckland (Murray Halberg) Brandon Park, Melbourne (Nellie Melba)
Devonport, Auckland (William Sanders) Burwood East, Melbourne
River Road, Hamilton (Linda Jones) Highton, Geelong
Lincoln Road, Auckland Aberfeldie, Melbourne
Havelock North, Hawkes Bay
Hobsonville, Auckland

New villages in planning and design phase:
New Zealand Victoria
Riccarton Park, Christchurch Ocean Grove, Victoria
Kohimarama, Auckland Highett, Melbourne
Bishopspark/Park Terrace, Christchurch Ringwood East, Melbourne
Newtown, Wellington Mt Eliza, Victoria
Northwood, Christchurch Mt Martha, Victoria
Karori, Wellington Coburg, Melbourne

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

About Ryman: Ryman Healthcare was founded in Christchurch in 1984 and owns and
operates 36 retirement villages in New Zealand and Australia. Ryman villages are home to
11,400 residents, and the company employs over 5,700 staff.
Contacts: For media information or images contact David King, Corporate Affairs
Manager, on 021 499 602 (+64 21 499 602) or email david.king@rymanhealthcare.com
For investor relations information contact Michelle Perkins, Investor Relations Manager, on
027 222 9684 (+64 27 222 9684) or email michelle.perkins@rymanhealthcare.com

RYMAN HEALTHCARE LIMITED
KEY STATISTICS

Sept 19 Sept 18 Mar 19

Half Year Half Year Full Year

Unaudited Unaudited Audited

Underlying profit (non-GAAP)
1
$m 103.0 97.1 227.0
Plus unrealised gains on retirement-
village units $m 92.7 72.8 102.4
Less deferred tax movement $m (7.4) (0.4) (3.4)
Reported net profit after tax $m 188.3 169.5 326.0

Net operating cash flows $m 256.1 217.8 401.4

Earnings per share - basic and diluted cents 37.7 33.9 65.2

Dividend per share cents 11.5 10.8 22.7

Net tangible assets - basic and diluted cents 452.5 405.6 428.4

Sales of Occupation Right Agreements

New sales of occupation rights
2
no. 229 168 414
Resales of occupation rights no. 454 405 824
Total sales of occupation rights no. 683 573 1,238

New sales of occupation rights $m 160.7 120.4 290.7
Resales of occupation rights $m 234.8 202.1 417.4
Total sales of occupation rights $m 395.5 322.5 708.1

Portfolio:

Aged-care beds no. 3,660 3,448 3,660
Retirement-village units no. 7,071 6,613 6,878
Total units and beds no. 10,731 10,061 10,538

Land bank (to be developed)
3

Aged-care beds no. 2,098 1,841 2,062
Retirement-village units no. 4,976 4,237 4,950
Total units and beds no. 7,074 6,078 7,012

1
Underlying profit is a non-GAAP* measure and differs from NZ IFRS profit for the period. Underlying profit does not have a
standardised meaning prescribed by GAAP and 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.

2
229 new sales of occupation rights for September 2019 includes 47 units rebuilt at Malvina Major.

3
The land bank is subject to resource and building consent and various regulatory approvals.

*Generally Accepted Accounting Principles

1

RYMAN HEALTHCARE LIMITED
Consolidated income statement
For the six months ended 30 September 2019

Six months ended Six months ended Year ended
30 Sept 2019 30 Sept 2018 31 March 2019
unaudited unaudited audited
Notes $000 $000 $000

Care fees

163,093 147,748 302,003
Management fees

43,913 38,840 78,944
Interest received

230 211 532
Other income

515 391 855
Total revenue

207,751 187,190 382,334

Fair-value movement of
investment properties 3 180,009 155,438 292,910
Total income

387,760 342,628 675,244

Operating expenses

(168,729) (152,528) (303,745)
Depreciation and
amortisation expense

(13,751) (11,250) (23,125)
Finance costs

(9,557) (8,958) (18,959)
Total expenses

(192,037) (172,736) (345,829)

Profit before income tax 195,723 169,892 329,415
Income-tax expense

(7,442) (359) (3,429)
Profit for the period 188,281 169,533 325,986

Earnings per share

Basic and diluted (cents per share) 37.7 33.9 65.2

All profit and total comprehensive income is attributable to parent company shareholders and is derived from
continuing operations.

The accompanying notes form part of these interim financial statements.

2

RYMAN HEALTHCARE LIMITED
Consolidated statement of comprehensive income
For the six months ended 30 September 2019

Six months ended Six months ended Year ended
30 Sept 2019 30 Sept 2018 31 March 2019
unaudited unaudited audited
$000 $000 $000

Profit for the period 188,281 169,533 325,986

Items that may be later reclassified to profit or loss
Fair-value movement and reclassification
of interest-rate swaps (7,479) (753)

(5,181)
Deferred tax movement on interest-rate
swap reserve 2,094 211

1,451
(Loss) / Gain on hedge of foreign-owned
subsidiary net assets (2,471) (2,051)

1,333
Gain / (Loss) on translation of foreign
operations 8,839 5,375 (4,966)

983 2,782 (7,363)
Items that may be later reclassified to profit or loss
Revaluation of property, plant and
equipment (unrealised) - - 24,456

- - 24,456

Other comprehensive income 983 2,782 17,093
Total comprehensive income 189,264 172,315 343,079

All profit and total comprehensive income is attributable to parent company shareholders and is derived from
continuing operations.

The accompanying notes form part of these interim financial statements.

3

RYMAN HEALTHCARE LIMITED
Consolidated statement of changes in equity
For the six months ended 30 September 2019

Issued
capital
Asset
revaluation
reserve
Interest-
rate
sw ap
reserve
Foreign-
currency
translation
reserve
Treasury
stock
Retained
earnings
Total
equity

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

Six months ended 30 Sept 2018 unaudited

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

Year ended 31 March 2019 audited

Opening balance
33,290 233,319 (5,913) (2,243) (22,497) 1,704,563 1,940,519
Profit and total comprehensive income
for the year

-
24,456 (3,730) (3,633) - 325,986 343,079
Treasury stock movement
-
- - - (4,968) - (4,968)
Dividends paid to shareholders
-
- - - - (108,500) (108,500)
Closing balance at 31 March 2019 33,290 257,775 (9,643) (5,876) (27,465) 1,922,049 2,170,130

Six months ended 30 Sept 2019 unaudited

Opening balance
33,290 257,775 (9,643) (5,876) (27,465) 1,922,049 2,170,130
Profit and total comprehensive income
for the period
- - (5,385) 6,368 - 188,281 189,264
Treasury stock movement
- - - - (5,413) - (5,413)
Dividends paid to shareholders
- - - - - (59,500) (59,500)
Closing balance at 30 Sept 2019 33,290 257,775 (15,028) 492 (32,878) 2,050,830 2,294,481

The accompanying notes form part of these interim financial statements.

4

RYMAN HEALTHCARE LIMITED
Consolidated balance sheet
At 30 September 2019

The accompanying notes form part of these interim financial statements.

30 Sept 2019 30 Sept 2018 31 March 2019
unaudited unaudited audited
Notes $000 $000 $000

Assets
Trade and other receivables 332,792 298,880 344,814
Advances to employees 10,996 8,524 8,152
Property, plant and equipment 1,456,181 1,093,717 1,188,940
Investment properties
3
5,423,813 4,754,479 5,081,607
Intangible assets

32,008 24,574 27,968
Total assets

7,255,790 6,180,174 6,651,481

Equity

Issued capital
6
33,290 33,290 33,290
Asset revaluation reserve

257,775 233,319 257,775
Interest-rate swap reserve

(15,028) (6,455) (9,643)
Foreign-currency translation reserve
492 1,081 (5,876)
Treasury stock

(32,878) (28,108) (27,465)
Retained earnings

2,050,830 1,819,596 1,922,049
Total equity

2,294,481 2,052,723 2,170,130

Liabilities

Trade and other payables 7
181,648 76,990 126,909
Employee entitlements
25,471 22,607 23,834
Revenue in advance
60,817 55,071 57,845
Interest-rate swaps
20,872 8,965 13,393
Refundable accommodation deposits
61,788 31,189 34,013
Bank loans (secured)
1,505,012 1,214,337 1,324,003
Occupancy advances
(non-interest bearing) 4 3,015,635 2,646,458 2,827,690
Lease liabilities
11,297 - -
Deferred tax liability (net)
78,769 71,834 73,664
Total liabilities 4,961,309 4,127,451 4,481,351

Total equity and liabilities 7,255,790 6,180,174 6,651,481

Net tangible assets
Basic and diluted (cents per share) 452.5 405.6 428.4

5

RYMAN HEALTHCARE LIMITED
Consolidated statement of cash flows
For the six months ended 30 September 2019

Six months ended Six months ended Year ended
30 Sept 2019 30 Sept 2018 31 March 2019
unaudited unaudited audited
Notes $000 $000 $000

Operating activities

Receipts from residents

582,834 518,267 1,009,496
Interest received

177 265 588
Payments to suppliers and
employees

(166,583) (149,785)

(306,234)
Payments to residents

(150,800) (145,286) (283,736)
Interest paid

(9,557) (5,624) (18,689)
Net operating cash flows
2
256,071 217,837 401,425

Investing activities

Purchase of property, plant and
equipment

(197,778) (104,564)

(150,252)
Purchase of intangible assets

(3,819) (3,060) (6,918)
Purchase of investment
properties

(140,922) (181,546) (364,186)
Capitalised interest paid

(17,230) (14,775) (31,003)
Advances to employees

(2,843) (2,688) (2,316)
Net investing cash flows

(362,592) (306,633) (554,675)

Financing activities

Drawdown of bank loans (net)

172,268 148,907 266,718
Dividends paid

(59,500) (54,500) (108,500)
Purchase of treasury stock
(net)

(5,414) (5,611) (4,968)
Repayment of lease liabilities

(833) - -
Net financing cash flows

106,521 88,796 153,250

Net increase in cash and
cash equivalents

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

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

- - -

The accompanying notes form part of these interim financial statements.

6

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 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 Act reporting entity under the Financial Reporting Act
2013 and the Financial Markets Conduct Act 2013. Its financial statements comply with these Acts.

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

Basis of preparation

The financial statements for the six months ended 30 September 2019 and the comparative six months ended 30
September 2018 are unaudited.

Apart from the new standards adopted in the current period (see below), these financial statements have been
prepared under the same accounting policies and methods as the Company’s Annual Report at 31 March 2019.
These financial statements should be read in conjunction with the financial statements and related notes included
in the Company’s Annual Report for the year ended 31 March 2019.

The financial statements were approved by the Board of Directors on 20 November 2019.

The information is presented in thousands of New Zealand dollars.

All references to AUD refer to Australian dollars.

1. Summary of significant accounting policies

Adoption of new and revised standards and interpretations

In the current period the Group adopted all mandatory new and amended standards and interpretations.

During the period, NZ IFRS 16 Leases has been adopted with effect from 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 (less than a year). Adopting the standard has not had a material impact on the financial statements.

The Group has chosen to adopt the modified retrospective approach to transition. Comparative periods
presented have not been restated.

Operating leases that were previously off balance sheet are now included on the balance sheet under NZ IFRS 16
through the recognition of right-of-use assets and associated liabilities. Rental and operating lease expenses
previously recognised within other operating expenses are now recognised as depreciation for right-of-use assets
and finance costs for lease liabilities in the income statement. In the statement of cash flows, operating lease
payments previously classified as cash flows from operating activities are now classified as cash flows from financing
activities for principal repayments of the lease liability and cash flows from operating activities for the interest
payments. There has been no impact on actual cash payments as a result of the adoption of NZ IFRS 16.

7

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2019

The Group used a number of practical expedients when applying NZ IFRS 16 to leases previously classified as
operating leases. In particular, the Group:
• did not recognise right-of-use assets and liabilities for leases for which the lease term ends within 12
months of the date of initial application
• did not recognise right-of-use assets and liabilities for leases of low-value assets (for example, IT
equipment)
• excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application
• applied a single discount rate to portfolios of leases with similar characteristics
• used hindsight when determining the lease term

Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid
or accrued lease payments. Following the adoption of NZ IFRS 16 the group has presented right-of use assets
within ‘property, plant and equipment’.

The group leases office buildings, sales offices, office equipment (for example, photocopiers), and plant and
equipment for the use in the construction of retirement-village units and aged-care beds. After using the available
recognition exemptions allowed in NZ IFRS 16 for short-term leases and leases of low-value assets it is only the
Group’s lease of office premises, sales offices and tower cranes for which right of use assets and lease liabilities
have been recognised under the new standard. The expenses incurred for short-term and low-value leases
continue to be recognised on a straight-line basis in the income statement.

The Group recognises all long-term lease of land within property, plant and equipment and investment property.
There has been no impact on how the leases have been accounted for under NZ IFRS 16 other than the
recognition of any future lease payments required under the terms of the contract.

A lease contract may contain both lease and non-lease components. For construction leases (for example,
scaffolding and tower cranes), the Group has elected not to separate non-lease components from lease
components, and instead accounts for the whole contract as a lease.

As a result of adopting the new standard the Group recognised $13.4 million of right-of-use assets and
associated lease liability in the balance sheet at 1 April 2019.

At 30 September 2019, the right-of-use asset was $11.1 million and the lease liability was $11.3 million. The
profit for the six months to 30 September 2019 is $0.2 million lower than the profit that would have been
reported had the standard not been in place. This comprises a decrease in operating expenses of $0.8 million, an
increase in depreciation expense of $0.8 million and an increase in finance costs of $0.2 million. Net operating
cash flows have increased by $0.8 million and net financing cash flows have decreased by $0.8 million because of
the adoption of the standard.

When measuring lease liabilities, the Group discounts lease payments using its incremental borrowing rate. This
is calculated with reference to the external borrowing facilities available to the Group and the specific
characteristics of the lease. The weighted average borrowing rate for the Group is 3.75%.

The depreciation and finance costs associated with the right-of-use asset and lease liability for tower cranes is
capitalised as a cost of constructing the asset.

For leases where the Group is the lessor there has been no change to the recognition or measurement on
adoption of NZ IFRS 16. There is no change in how occupation-right agreements and associated management
fees are recognised. 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.

8

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2019

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

Six months ended Six months ended Year ended
30 Sept 2019 30 Sept 2018 31 March 2019
unaudited unaudited audited
$000 $000 $000

Net profit after tax 188,281 169,533 325,986

Adjusted for:
Movements in balance-sheet items
Occupancy advances 223,837 157,615 367,538
Accrued management fees (35,271) (25,417) (54,652)
Refundable accommodation deposits 27,775 432 3,256
Revenue in advance 2,972 3,116 5,890
Trade and other payables 676 (271) 2,165
Trade and other receivables 12,022 58,603 12,669
Employee entitlements 1,637 2,370 3,597

Non-cash items:
Depreciation and amortisation 13,751 11,250 23,125
Deferred tax 7,442 359 3,429
Unrealised foreign-exchange (gain) / loss (7,042) (4,315) 1,332

Adjusted for:
Fair-value movement of investment
properties (180,009) (155,438) (292,910)

Net operating cash flows 256,071 217,837 401,425

Net operating cash flows include occupancy advance receipts from retirement village residents of $393.5 million
(six months ended 30 September 2018: $370.6 million and year ended 31 March 2019: $703.6 million).

Also included in operating cash flows are net receipts from refundable accommodation deposits of $26.6 million
(six months ended 30 September 2018: net payments of $0.4 million and year ended 31 March 2019: net receipts
of $3.8 million).

Net operating cash flows also include management fees collected of $21.2 million (si x months ended 30 September
2018: $20.2 million and year ended 31 March 2019: $39.0 million).

9

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2019

3. Investment properties

Six months ended Six months ended Year ended
30 Sept 2019 30 Sept 2018 31 March 2019
unaudited unaudited audited
$000 $000 $000
At fair value
Balance at beginning of financial period 5,081,607 4,398,304 4,398,304

Additions 147,316 192,213 395,931
Fair-value movement:
Realised fair-value movement:
• new retirement-village units 31,835 32,850 87,866
• existing retirement-village units 55,493 49,762 102,600
87,328 82,612 190,466
Unrealised fair-value movement 92,681 72,826 102,444
180,009 155,438 292,910

Net foreign-currency exchange
differences 14,881 8,524 (5,538)

Net movement for period 342,206 356,175 683,303

Balance at end of financial period 5,423,813 4,754,479 5,081,607

The realised fair-value movement arises from the sale and resale of occupancy advances to residents. Investment
properties are not depreciated and are fair valued.

The carrying value of completed investment property is the fair value as determined by an independent valuation
report prepared by registered valuers CBRE Limited, at 30 September 2019.

The valuer used significant assumptions that include long-term house-price inflation (ranging from 0 percent to 3.5
percent nominal) (30 September 2018 and 31 March 2019: 0.5 percent to 3.5 percent) and discount rate (ranging
from 12 percent to 16 percent) (30 September 2018: 12 percent to 16.5 percent and 31 March 2019: 12 percent
to 16 percent).

Investment property includes investment property work in progress of $318.9 million (six months ended 30
September 2018: $329.0 million and year ended 31 March 2019: $325.1 million), which has been valued at cost.

The CBRE valuation for the six months ended 30 September 2018 included 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 was $10 million over a remaining 6-month period. (31 March 2019: $6 million over
a remaining 6-month period). The estimates were based on information available at the time. No costs have been
included in the six months ended 30 September 2019.

10

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2019

4. Occupancy advances (non-interest bearing)

Six months ended Six months ended Year ended
30 Sept 2019 30 Sept 2018 31 March 2019
unaudited unaudited audited
$000 $000 $000

Gross occupancy advances (see
below) 3,427,688 2,993,929 3,203,851
Less management fees and resident
loans (412,053) (347,471) (376,161)
Closing balance 3,015,635 2,646,458 2,827,690

Movement in gross occupancy advances

Opening balance
3,203,851 2,836,314 2,836,314
Plus net increases in occupancy advances:

• new retirement-village units
160,726 120,447 290,701
• existing retirement-village
units. 55,493 49,762 102,600

Net foreign-currency exchange
differences 8,766 5,245

(3,408)

Decrease in occupancy advance
receivables (1,148) (17,839)

(22,356)
Closing balance 3,427,688 2,993,929 3,203,851

Gross occupancy advances are non-interest bearing.

5. Dividend

On 21 November 2019 an interim dividend of 11.5 cents per share was declared and will be paid on 13
December 2019 (prior year: 10.8 cents per share). The record date for entitlements is 6 December 2019.

6. Share capital

Issued and paid-up capital consists of 500,000,000 fully paid ordinary shares (30 September 2018: 500,000,000
and 31 March 2019: 500,000,000). All shares rank equally in all respects.

Basic and diluted earnings and net tangible assets per share have been calculated on the basis of 500,000,000
ordinary shares (30 September 2018: 500,000,000 and 31 March 2019: 500,000,000 shares).

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

11

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2019

7. Trade and other payables

Trade payables are typically paid within 30 days of invoice date or the 20
th
of the month following the invoice
date. Other payables at 30 September 2019 includes $105.4 million (30 September 2018: $19.6 million and 31
March 2019: $68.1 million) for the purchase of land.

8. Operating segments

The Ryman Group operates in one industry, being the provision of integrated retirement villages for older
people in New Zealand and Australia. In presenting information on the basis of geographical areas, net profit,
underlying profit, and revenue are based on the geographical location of operations. Assets are based on the
geographical location of the assets.

New Zealand
$000
Australia
$000
Group
$000

Six months ended 30 Sept 2019 unaudited
Revenue 194,817 12,934 207,751

Underlying profit (non-GAAP) 92,812 10,230 103,042
less deferred tax expense (19,804) 12,362 (7,442)
plus unrealised fair-value movement 79,352 13,329 92,681
Profit for the period 152,360 35,921 188,281

Non-current assets 6,016,085 895,917 6,912,002

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

Underlying profit (non-GAAP) 75,659 21,407 97,066
less deferred tax expense (359) - (359)
plus unrealised fair-value movement 60,701 12,125 72,826
Profit for the period 136,001 33,532 169,533

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

Year ended 31 March 2019 audited
Revenue 358,524 23,810 382,334

Underlying profit (non-GAAP) 189,903 37,068 226,971
less deferred tax expense (3,429) - (3,429)
plus unrealised fair-value movement 90,167 12,277 102,444
Profit for the year 276,641 49,345 325,986

Non-current assets 5,598,182 700,333 6,298,515

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.

12

RYMAN HEALTHCARE LIMITED
Notes to the consolidated interim financial statements
For the six months ended 30 September 2019

9. Commitments

The Group had commitments relating to construction contracts amounting to $147.4 million at 30 September
2019 (30 September 2018: $129.9 million and 31 March 2019: $127.3 million).

10. Subsequent events

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

---

Section 1: Issuer information
Name of issuer Ryman Healthcare Limited
Financial product name/description Ordinary shares
NZX ticker code RYM
ISIN (If unknown, check on NZX
website)
NZRYME0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 06/12/2019
Ex-Date (one business day before the
Record Date)
05/12/2019
Payment date (and allotment date for
DRP)
13/12/2019
Total monies associated with the
distribution
1

$57,500,000
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.11500000
Total cash distribution
3
$0.11500000
Excluded amount (applicable to listed
PIEs)
$0.00
Supplementary distribution amount $0.00
Section 3: Imputation credits and Resident Withholding Tax
4

Is the distribution imputed No imputation
If fully or partially imputed, please state
imputation rate as % applied
N/A
Imputation tax credits per financial
product
N/A
Resident Withholding Tax per financial
product
$0.03795000

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
4
The imputation credits plus the RWT amount is 33% of the gross distribution for the purposes of this form. If the distribution is fully
imputed the imputation credits will be 28% of the gross distribution with remaining 5% being RWT. This does not constitute advice
as to whether or not RWT needs to be withheld.

Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for determining
market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme (new
issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in accordance
with DRP participation terms
N/A
Section 5: Authority for this announcement
Name of person authorised to make this
announcement
David Bennett
Contact person for this announcement David Bennett
Contact phone number +64 3 366 4069
Contact email address david.bennett@rymanhealthcare.com
Date of release through MAP 21 November 2019

---

11
Half year
result
R Y M A N H E A L T H C A R E
30 September 2019

2
First half highlights
Underlying profit* of $103.0 million, up 6.2%
Reported (IFRS) profit up 11.1% to $188.3
million
Interim dividend increased to 11.5 cents,
in line with underlying profit growth
Operating cashflows $256.1 million, up 17.6%
Total assets up 17.4% to $7.26 billion on
September last year
Land bank lifted to 7,074 beds and units
* Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Refer to
slide 38 for a breakdown of underlying profit.
Update

3
First half underlying
profit
-
$40m
$80m
$120m
2002200320042005200620072008200920102011201220132014201520162017201820192020

4
Total assets
-
$1.0bn
$2.0bn
$3.0bn
$4.0bn
$5.0bn
$6.0bn
$7.0bn
$8.0bn
Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17
Sep 18Sep 19

6
The ‘gold standard’ of care
4 year certification
Source: Ministry of Health. Large operators
reflects aged care providers with 15 or more care
centres. Data at 11 November 2019.
84%
47%
RymanLarge operators

10
Medical advisory committee
Professor Richard Sainsbury
Emeritus Professor, Geriatric Medicine, Otago University -Geriatrician
Alex de Roo
Pharmacist
Billy Allan
Medication Safety Specialist, Health Quality & Safety Commission
Dr Murray Robson
General Practitioner
Dr Kathleen Potter
Research Doctor
Jenny Thiele
Regional Operations Manager, Ryman. Registered Nurse
Karen Lake
Clinical and Quality Manager, Ryman. Registered Nurse
Victoria Brevoort
Clinical Systems Manager, Ryman. Registered Nurse
Janine Snape
Operations Project Clinical Manager, Ryman
Melanie Asuncion
Clinical Manager, Ryman. Registered Nurse
Meegan Potts
Data Analyst, Ryman

1111

1212

13
Paula Jeffshas joined our board
Dr David
Kerr
Jo
Appleyard
Warren
Bell
George
Savvides
Claire
Higgins
Geoff
Cumming
Anthony
Leighs
Paula
Jeffs
Governance
✓✓✓✓✓✓✓
Executive Leadership
✓✓✓✓✓
Finance and Accounting
✓✓✓✓✓
Risk Management
✓✓✓✓✓✓✓✓
Property and
Construction
✓✓✓✓
Health and Safety
✓✓✓✓✓
Health, Clinical and
Aged Care
✓✓✓✓✓✓✓
Digital and Technology
✓✓
Human Resources
✓✓✓✓✓
Strategy
✓✓✓✓✓✓✓✓

1515
We are lifting
our build rate
Note: All data as at 31 March
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1999200020012002200320042005200620072008200920102011201220132014201520162017201820192020
Medium term
ActualTarget

1616
Our land bank
is at record
levels
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Sep 09Sep 10Sep 11Sep 12Sep 13Sep 14Sep 15Sep 16Sep 17Sep 18Sep 19

17
William Sanders
Linda Jones
Burwood East
Lincoln Road
Havelock North
Highton
Aberfeldie
Hobsonville
Highett
Current sites
(as at
Sept 2018)
Murray Halberg
Ocean Grove
Nellie Melba
Riccarton

18
William Sanders
Linda Jones
Burwood East
Lincoln Road
Havelock North
Highton
Aberfeldie
Hobsonville
Highett
Construction
activity target
March 2020
Murray Halberg
Ocean Grove
Nellie Melba
Target by March 2020
Subject to resource and building consent and
various regulatory approvals.
Targeting 12 sites but potential for 13
Riccarton

1919
Aberfeldie
Melbourne

2020
Highett
Victoria

2121
Nellie Melba
Melbourne

2222
Highton
Victoria

2323
Burwood East
Melbourne

2424
Ocean Grove
Victoria

25
Eleven sites in Victoria
Ryman village
Under construction
Proposed village
Mount Eliza
Mount Martha
Ocean Grove
Highton
Aberfeldie
Nellie Melba
Burwood East
Weary Dunlop
Coburg
Ringwood East
Highett

2626
Northwood
Christchurch

2727
Linda Jones
Hamilton
William Sanders
Auckland
Murray Halberg
Auckland

2828
Lincoln Road
Auckland
28

2929
Havelock North
Hawkes Bay

303030
Hobsonville
Auckland

3131
Cheyne Chalmers
Chief Operations Officer

3232

3333

34
World population
growth 80+
Source: United Nations World Population Prospects 2019, Australian Bureau of Statistics (Series A). Victoria
data projections end 2060.
-
100m
200m
300m
400m
500m
600m
700m
800m
900m
-
0.1m
0.2m
0.3m
0.4m
0.5m
0.6m
0.7m
0.8m
0.9m
1950196019701980199020002010202020302040205020602070208020902100
World (RHS)New Zealand (LHS)Vic (LHS)

35
World population
growth 80+
-
100m
200m
300m
400m
500m
600m
700m
800m
900m
-
0.1m
0.2m
0.3m
0.4m
0.5m
0.6m
0.7m
0.8m
0.9m
1950196019701980199020002010202020302040205020602070208020902100
World (RHS)NZ (LHS)Vic (LHS)
Source: United Nations World Population Prospects 2019, Australian Bureau of Statistics (Series A). Victoria
data projections end 2060.

36
World population
growth 80+
-
100m
200m
300m
400m
500m
600m
700m
800m
900m
-
0.1m
0.2m
0.3m
0.4m
0.5m
0.6m
0.7m
0.8m
0.9m
1950196019701980199020002010202020302040205020602070208020902100
World (RHS)NZ (LHS)Vic (LHS)
Source: United Nations World Population Prospects 2019, Australian Bureau of Statistics (Series A). Victoria
data projections end 2060.

38
Underlying profit is a non-GAAP (Generally Accepted Accounting Principles) 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 payoutto
shareholders.
Reported profit
Half yearHalf yearFull year
Sep 20Sep 19Mar 19
Underlying profit (non-GAAP)$103.0m$97.1m$227.0m
Unrealised revaluations of investment properties+$92.7m+$72.8m+$102.4m
Deferred tax expense-$7.4m-$0.4m-$3.4m
Reported net profit$188.3m$169.5m$326.0m

39
Operating cashflows
-
$40m
$80m
$120m
$160m
$200m
$240m
$280m
Sep 14Sep 15Sep 16Sep 17Sep 18Sep 19

40
Investing cash flows
$360 million
$48m
$78m
$208m
$238m
$20m
$18m
$28m
$26m
-
$50m
$100m
$150m
$200m
$250m
$300m
$350m
$400m
Sep 19Sep 20
Purchase of landNew villagesCare / systemsVillage upgrades

41
Total assets
-
$1bn
$2bn
$3bn
$4bn
$5bn
$6bn
$7bn
$8bn
Sep 15Mar 16Sep 16Mar 17Sep 17Mar 18Sep 18Mar 19Sep 19
Bank debtTotal assets

42
Development margin
*Development margin at 30 September 2019. All other values at 31 March.
-
5%
10%
15%
20%
25%
30%
35%
201220132014201520162017201820192020*
Group development marginMargin excluding Malvina Major
Target range

43
$867 million
resales bank
Note: The resale bank represents the extent that the current price exceeds the price paid by the current
resident for the unit's occupancy rights.
-
$200m
$400m
$600m
$800m
$1,000m
Sep 15Sep 16Sep 17Sep 18Sep 19Sep 20
New ZealandVictoria

44
Value of contracts
not booked
*Contracts not booked at 30 September 2019. All other values 31 March. Presales are unconditional
occupation right agreements which have been entered into by residents but have not been booked as
the unit is not yet near complete.
-
$40m
$80m
$120m
$160m
20162017201820192020*

45
The median house price reflects the average median house price over the last 6 months in the area surrounding
our villages.
Sales price vs
median house price
$0.4m
$0.5m
$0.6m
$0.7m
$0.8m
$0.9m
$1.0m
$1.1m
$1.2m
MelbourneAuckland
Median house price - village areasRyman - 2 bed independentRyman - serviced

46
Long term capital efficiency
$25 million raised at IPO in 1999
Invested $4 billion in portfolio
since 1999 with no fresh capital
Dividends of over $860 million
paid since float*
Self-funded growth
Strong balance sheet
* Includes interim dividend of 11.5 cents per share that has been declared and is payable
on 13 December 2019.

47
Underlying profit
growth
-
$40m
$80m
$120m
$160m
$200m
$240m
$280m
2002200320042005200620072008200920102011201220132014201520162017201820192020
First half underlying profitSecond halfTarget range

Appendices
48

49
Appendix 1:
First half highlights
Underlying profit of $103 million, up 6.2%
Reported (IFRS) profit up 11.1% to $188.3 million
Interim dividend increased to 11.5 cents, in line
with underlying profit growth
Full year underlying profit expected to be
between $250 million and $265 million
Operating cash flows $256.1 million, up 17.6%
Total assets up 17.4% to $7.26 billion from
September last year
$4.0 billion invested in the portfolio since listing
49

50
Appendix 1:
First half highlights
Increased investment in resident experience,
team development and safety
Continued strong demand for villages with
only 1.6% of resale stock unsold
97% occupancy at established care centres
Eleventh site secured in Victoria, target remains
to have five villages open by the end of 2020
Record land bank of 7,074 beds and units
Build rate lifting with 12 sites targeted to be
under construction by March 2020
50

51
Appendix 2:
Sale of occupation rights
Half yearHalf yearFull year
Sep 19Sep 18Mar 19
Existing units
Independent212186378
Serviced242219446
454405824
New units
Independent196120302
Serviced3348112
229168414
Note: 229 new sales of occupation rights for September 2019 includes 47 units rebuilt at Malvina Major

52
Appendix 3: Development
* Units demolished at Malvina Major reflect redevelopment of Figaro block following Kaikoura earthquakes
Sep 19Sep 18Mar 19
Units and beds built
Retirement village units added193199464
Plus units demolished (Malvina Major)*4100
Aged care beds built081293
Total units and beds built234280757
Total retirement village units
Independent5,0134,6904,915
Serviced2,0581,9231,963
7,0716,6136,878
Total aged care beds3,6603,4483,660
Total retirement village units and beds10,73110,06110,538

53
Appendix 4: Margins
Half yearHalf yearFull year
Sep 19Sep 18Mar 19
Reference$000s$000s$000s
New sales
Realised fair value movement(Note 3)31,835 32,850 87,866
Sale of occupation rights(Key statistics)160,726 120,447 290,701
Gross development margin20%27%30%
Gross development margin excl Malvina Major25%--
Resales
Realised fair value movement(Note 3)55,493 49,762 102,600
Resale of occupation rights(Key statistics)234,826 202,081 417,358
Gross resales margin24%25%25%

54
Appendix 5: Cash management fees
Half yearHalf yearFull year
Sep 19Sep 18Mar 19
Reference$000s$000s$000s
Accrued management fees –opening(Note 4)376,161 321,631 321,631
Less: Accrued management fees –closing(Note 4)(412,053)(347,471)(376,161)
Movement in accrued management fees(35,892)(25,840)(54,530)
Plus: DMF incomeIncome statement43,913 38,840 78,944
Plus: Revenue in advance movement(Note 2)2,972 3,116 5,890
Plus: GST / accommodation credit adjustmentNot disclosed623 423 (105)
Plus: Movement in resident loanNot disclosed9,566 3,757 8,914
Cash management fees21,182 20,296 39,113

55
Appendix 6: Investment property summary
CBRE unit price inflation assumption
Discount rate
As at 30 September 2019Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland0.4%1.0%2.4%3.0%3.5%12.6%
Rest of New Zealand0.5%1.0%2.0%2.8%3.4%13.3%
Victoria3.0%3.4%3.9%4.1%3.7%14.1%
CBRE unit price inflation assumption
Discount rate
As at 30 September 2018Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland0.9%1.9%2.4%3.0%3.5%12.5%
Rest of New Zealand0.9%1.5%2.0%2.8%3.3%13.4%
Victoria2.0%2.8%3.6%4.0%3.9%14.1%
CBRE unit price inflation assumption
Discount rate
As at 31 March 2019Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland0.9%1.8%2.2%2.7%3.2%12.5%
Rest of New Zealand0.8%1.4%1.9%2.7%3.2%13.3%
Victoria0.7%2.6%3.6%4.0%3.9%14.1%

56
Appendix 7: Operating cash flows
Sep 19Sep 18Mar 19
$000s$000s$000s
Resident receipts162,748 148,059 302,046
Refundable accommodation deposits (net)26,623 (417)3,807
Development sales187,577 162,619 300,351
Resales205,886 208,006 403,292
Total receipts from residents582,834 518,267 1,009,496
Interest received177 265 588
Payments to suppliers and employees(166,583)(149,785)(306,234)
Payments to residents(150,800)(145,286)(283,736)
Interest paid(9,557)(5,624)(18,689)
Net operating cash per the cash flow
statement
256,071 217,837 401,425

57
Appendix 8: Available resale stock
* Uncontracted resales stock as a percentage of total retirement unit portfolio
Half yearHalf yearFull year
Sep-19Sep-18Mar-19
Independent living units48 42 29
Serviced apartments63 36 40
Total resales stock111 78 69
Total retirement portfolio7,071 6,613 6,878
Uncontracted stock percentage*1.6%1.2%1.0%
0.9%
1.4%
1.0%
1.3%
1.4%
1.2%
0.8%
0.5%
0.8%
0.8%
1.2%
1.0%
1.6%
-
1.0%
2.0%
3.0%
Sep 13
Mar 14
Sep 14
Mar 15
Sep 15
Mar 16
Sep 16
Mar 17
Sep 17
Mar 18
Sep 18
Mar 19
Sep 19

58
Appendix 9:
Capital management
Half yearHalf yearFull year
Gearing ($m)Sep 19Sep 18Mar 19
Bank debt$1,505 $1,214 $1,324
Net assets$2,294 $2,053 $2,170
Total assets$7,256 $6,180 $6,651
Bank debt/(bank debt + eq)39.6%37.2%37.9%
Bank debt/total assets20.7%19.6%19.9%
$325m
$757m
$144m
$82m
$46m
$151m
-
$200m
$400m
$600m
$800m
$1,000m
$1,200m
$1,400m
$1,600m
Sep 18Mar 19Sep 19
Use of debt
Systems / care
investment
Other village
capex
Village upgrades
New sale
debtors
Development
WIP
Undeveloped
land

59
Appendix 10:
Resident average age
and tenure (years)
75
77
79
81
83
85
87
89
91
93
Sep 13
Mar 14
Sep 14
Mar 15
Sep 15
Mar 16
Sep 16
Mar 17
Sep 17
Mar 18
Sep 18
Mar 19
Sep 19
IndependentServicedCare centre
Average ageSep 19Sep 18Mar 19
Independent82.282.382.3
Serviced87.487.587.5
Care centre86.586.486.4
Average tenure -vacated
units
Sep 19Sep 18Mar 19
Independent5.65.35.7
Serviced2.82.62.5

60
Appendix 11: 12 sites in Auckland
Ryman village
Under construction
Proposed village
Kohimarama
Murray Halberg
Lincoln Road
William Sanders
Grace Joel
Bert Sutcliffe
Edmund Hillary
Bruce McLaren
Logan Campbell
Hobsonville
Evelyn Page
Possum Bourne

61
Appendix 12: Asset base
New Zealand (ex Auckland)
VillageLocationHospitalDementiaResthomeServicedIndependentTotal
Anthony WildingChristchurch80 33 35 50 110 308
Bob OwensTauranga40 40 40 79 218 417
Bob ScottPetone40 40 34 89 254 457
Charles FlemingWaikanae40 40 40 79 201 400
Charles UphamRangiora40 40 40 93 261 474
Diana IsaacChristchurch40 40 40 79 256 455
Ernest RutherfordNelson49 25 20 75 124 293
Essie SummersChristchurch41 24 30 58 22 175
Frances HodgkinsDunedin--51 32 42 125
Hilda RossHamilton68 40 43 51 167 369
Jane ManderWhangarei60 32 20 71 183 366
Jane WinstoneWhanganui20 20 29 50 54 173
Jean Sandel New Plymouth39 33 39 62 171 344
Julia WallacePalmerston North43 21 20 50 111 245
Kiri Te KanawaGisborne46 15 34 62 105 262
Linda JonesHamilton----73 73
Malvina MajorWellington90 -30 39 123 282
Margaret StoddartChristchurch--41 25 20 86
Ngaio MarshChristchurch81 -30 40 119 270
Princess AlexandraNapier60 24 24 54 70 232
Rita AngusWellington49 -20 50 99 218
Rowena JacksonInvercargill70 26 61 46 103 306
Shona McFarlaneLower Hutt59 -20 50 130 259
WoodcoteChristchurch--49 7 18 74
Yvette WilliamsDunedin57 30 3 32 -122
Total units & beds New Zealand (ex Auckland)1,112 523 793 1,323 3,034 6,785

62
Appendix 12: Asset base
Auckland
VillageLocationHospitalDementiaResthomeServicedIndependentTotal
Bert SutcliffeBirkenhead40 40 40 81 225 426
Bruce McLarenHowick41 40 42 74 192 389
Edmund HillaryRemuera114 30 50 60 373 627
Evelyn PageOrewa60 37 20 66 248 431
Grace JoelSt Heliers77 -20 80 69 246
Murray HalbergLynfield42 42 40 86 81 291
Logan CampbellGreenlane43 30 43 80 116 312
Possum BournePukekohe40 40 40 84 259 463
William SandersDevonport---29 53 82
Total units & beds Auckland457 259 295 640 1,616 3,267
Total units & beds New Zealand1,569 782 1,088 1,963 4,650 10,052
Victoria
VillageLocationHospitalDementiaResthomeServicedIndependentTotal
Weary DunlopMelbourne30 20 32 51 200 333
Nellie MelbaMelbourne49 39 51 44 163 346
Total units & beds Victoria79 59 83 95 363 679
New Zealand and Victoria
Total units & beds1,648 841 1,171 2,058 5,013 10,731
Total% of asset base
Care (hospital, dementia, resthome and serviced)5,718 53.3%
Independent5,013 46.7%

63
Appendix 13: Land bank (New Zealand)
The land bank is subject to resource and building consent and various regulatory approvals.
* Site acquisition at Northwood (Christchurch) is subject to Overseas Investment Office approval.
Existing villages
Location
HospitalDementiaResthomeServicedIndependentTotal
Diana IsaacChristchurch----30 30
Grace JoelAuckland----96 96
Jean SandelNew Plymouth----59 59
Linda JonesHamilton40 40 40 93 175 388
Murray HalbergAuckland----260 260
William SandersAuckland40 36 36 48 139 299
Total existing villages80 76 76 141 759 1,132
New sites
Location
Hospital Dementia Resthome Serviced Independent Total
Havelock NorthHawkes Bay35 35 20 76 147 313
HobsonvilleAuckland40 40 40 101 276 497
KaroriWellington20 20 20 84 178 322
KohimaramaAuckland20 40 20 78 125 283
Lincoln RoadAuckland42 37 42 77 186 384
NewtownWellington20 15 20 56 40 151
Northwood*Christchurch30 30 30 60 156 306
Park Terrace / BishopsparkChristchurch36 40 40 79 130 325
Riccarton ParkChristchurch40 40 40 66 226 412
Total new sites283 297 272 677 1,464 2,993
Total land bank New Zealand 363 373 348 818 2,223 4,125

64
Appendix 13: Land bank (Victoria)
The land bank is subject to resource and building consent and various regulatory approvals.
Existing villagesLocation
Hospital Dementia Resthome Serviced Independent Total
Nellie MelbaMelbourne31 -29 50 165 275
Total existing villages31 -29 50 165 275
New sites
Location
Hospital Dementia Resthome Serviced Independent Total
AberfeldieMelbourne25 25 24 27 64 165
Burwood EastMelbourne38 38 38 96 174 384
CoburgMelbourne35 35 36 76 200 382
GeelongVictoria40 20 40 60 80 240
Mount ElizaVictoria40 44 40 55 217 396
Mount MarthaVictoria40 40 36 37 70 223
HighettMelbourne30 30 20 37 94 211
Ocean GroveVictoria40 40 40 53 83 256
Ringwood EastMelbourne40 40 40 55 242 417
Total new sites328 312 314 496 1,224 2,674
Total landbank Victoria359 312 343 546 1,389 2,949
Total land bank New Zealand & Victoria722 685 691 1,364 3,612 7,074
Total% of landbank
Care (hospital, dementia, resthome and serviced)3,462 48.9%
Independent3,612 51.1%

65
Appendix 14:
Population
growth 80+
Source: Statistics NZ, Australian Bureau of Statistics (Series A)
-
0.2m
0.4m
0.6m
0.8m
200820132018202320282033203820432048
NZ total population aged 80+Victoria total population aged 80+

66
Disclaimer
This presentation
This presentation sets out information relating to Ryman Healthcare Limited’s half year
result for the period to 30 September 2019. It should be read in conjunction with all
other material which we have released, or may release, to NZX from time to time. That
material is also available on our website at www.rymanhealthcare.com.
Purpose of this presentation
This presentation is for information purposes only. It is not an offer of financial
products, or a proposal or invitation to make any such offer. It is not investment
advice or a recommendation in relation to financial products, and does not take into
account any person’s individual circumstances or objectives. Every investor should
make an independent assessment of Ryman on the basis of expert financial advice.
Forward-looking statements
This presentation contains forward-looking statements and projections. These reflect
our current expectations, based on what we think are reasonable assumptions.
However, any of these forward-looking statements or projections may be materially
different due to a range of factors and risks. Ryman gives no warranty or
representation as to our future financial performance or any future matter.
Non-GAAP information
Some of the financial information in this presentation has not been prepared in
accordance with generally accepted accounting principles (i.e. it is non-GAAP financial
information). This includes, in particular, our ‘underlying profit’ which Ryman has used
for many years as a means of showing our profit absent any unrealised valuation
movements. Ryman has historically used underlying profit as the basis for determining
dividend payments to shareholders. We show our underlying profit together with our
reported profit based on NZ IFRS (a GAAP measure).
Disclaimer
To the maximum extent permitted by law, we will not be liable (whether in tort
including negligence, contract, statute or otherwise) to you or any other person in
relation to this presentation, including any error or omission in it.

=== IR PAGE TRANSCRIPT: Transcript ===

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 1 of 23
Start of Transcript
David Kerr: Morena, tena koutou katoa. Good morning everyone and welcome to Ryman
Healthcare's first half results presentation. My name is David Kerr and I am the Chairman
of Ryman Healthcare. To my right we have Gordon MacLeod, our Chief Executive and
David Bennett, our Chief Financial Officer.
We have opted to make our half year presentation a virtual event again. We find this is the
best approach when we were planning this announcement because it takes the guesswork
out of which COVID level we are in. Of course, being virtual does not mean there will not
be plenty of opportunity to ask questions. You can do this over the phone, for those of you
who have called in and of course you can contact us afterwards if there's anything else you
would like to know.
I am going to give you a brief overview of the first half and update on the COVID pandemic
from our point of view. Gordy will give you his analysis of the half and thoughts on what he
sees ahead and what we plan to achieve. David will then give you some greater detail on
our financial results. At the end of the presentation we will then open the session up for
questions. You will see on the right-hand side of your screen you have the chance to ask a
question online. For those of you calling in by phone, our operator will advise when you are
free to ask a question. We anticipate wrapping up around 10:45am.
Well, another eventful six months for Ryman Healthcare. I am happy to report we are still
COVID-19 free. That's entirely down to some extraordinarily hard work on behalf of the
team and some outstanding patience and goodwill from our residents and their families.
It's been a huge team effort and the Board cannot thank everyone enough for what's been
achieved, particularly in Victoria.
It has been a very difficult six months and this is reflected in the results. I would also say
that we do not feel like we are quite out of the woods yet. We have spent roughly $50
million on a range of responses to COVID-19 as we put the protection of our people first
and as a result of that spend, we are now well supplied with PPE. We believe our staff are
familiar with how to respond to COVID and its associated threats and are well equipped to
respond to an outbreak in the vicinity of a village.
The recent news about a COVID-19 vaccine or vaccines is encouraging, but the reality is
that the impact of COVID will be with us for some time yet. I don't want to sound too
overly cautious, but in reality, the vaccine results being discussed are only interim results

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 2 of 23
and no data has yet been published to enable critical review. Press releases are not quite
the same as science. A lot more information is needed before a vaccine can be utilised and
then there are the massive logistical challenges of getting sufficient uptake for the virus to
then be controlled. I suspect we have at least another 12 or more months with a similar
knife edge for us all to be sitting on.
Nevertheless, let's look first though at the headline numbers. The unaudited underlying
profit was $88.4 million, which is a decrease of 14.2% due to these COVID-19 challenges.
The reported or IFRS profit increased 12.8% to $212.4 million, which is due to property
valuation changes and additional stock added during the half. Our half year dividend is
$0 .088
per share, which reflects 50% of our underlying profit. The record date is 11
December and the dividend will be paid on 18 December.
The total assets of the Company rose 14.9% to $8.34 billion. We are building across 12
sites, up from four new sites two years ago. As you can see, our half year underlying profit
came in well below our medium-term target of 15%. This target has been our holy grail for
many years. If we achieve 15% annual growth it means we double the profits every five
years, which indeed we have for many years. We are however very conscious that we have
not hit this target in recent years and this is an area of significant focus for the Board and
management.
For the year ending March 2020 we were indeed on target to hit 15% and then we were hit
by COVID which significantly impacted the last couple of months of the financial year,
which is always our biggest trading period. In the first half of this year we were expecting
strong growth from Victoria and this has been significantly impacted by COVID right across
all our trading despite the team's best efforts. On top of this New Zealand was of course
significantly affected as well.
The plain fact is that COVID-19 has been a once in a generation challenge and that is why
we are not in a position to be providing guidance for our annual result at this point, but we
have learned a lot about COVID and about ourselves and still managed to achieve an awful
lot this year. This puts us in a good position to again meet that target in the medium term.
Th e Board has just held deep dive strategy days with the Senior Executive Team. The sort
of areas we have been discussing are as diverse as what will our residents seek out in 10
years' time and what challenges might we face with staff recruitment. Everything was on
the table, as it should be, and we believe Ryman's business model remains entirely sound.
That's not to say there are not things to work on and places we can improve. Our model is

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 3 of 23
tried and tested and our aim remains to deliver as many Ryman communities as possible
in New Zealand and in Australia wherever there is demand.
Our main conclusion from the days was that major transformation is not required, but
continued iterative change that we have undertaken over 30 years is appropriate. Of
course, we will continue to listen to our residents and their families, innovate, improve and
make sure we are as relevant as possible to them. We will continue to reinvest 50% of our
underlying profits in expansion and the other half is returned to shareholders as dividends.
We have confirmed our commitment to our construction plans and we have 12 villages
being built and we remain absolutely committed to further expansion in Victoria and no
doubt beyond. We invested in a Victorian Leadership Team over the last couple of years
and they have performed superbly. The whole team has done an amazing job in very
tough circumstances.
There have been 1986 cases of COVID in aged care in Victoria, including 655 deaths. That
is a great tragedy and shows how devastating COVID is when it takes hold in aged care.
Our 18,000 staff and residents have stayed COVID free in both Victoria and New Zealand.
Gordy will outline our progress and what's next in a minute, but what is heartening is that
no -one has taken their foot off the gas during this COVID epidemic. Despite long hours in
PPE, COVID alerts and an everchanging work and home environment, our teams'
commitment to clinical excellence has never wavered and we have maintained our rate of
more than 80% of our villages achieving four year certification in New Zealand. This is the
gold star standard.
We are also acutely aware as a Board that continuing to invest record amounts in
expansion at a time when operating costs have risen substantially and trading has been
restricted, places pressure on our balance sheet. Supporting our team to ensure we are
doing everything possible to maintain our villages as COVID free safe havens costs money
and we are very mindful of our debt. While debt has risen in the first half and increasing
costs put pressure on cashflows, as David will outline in a minute, our balance sheet
remains strong with assets of more than $8.3 billion.
By continuing to invest and seeing through our current plans we will place ourselves in the
best possible position to continue to grow. Our focus remains long-term and while the here
and now of the past six months has been fully absorbing, believe me, we still have our
eyes on the long-term prize. The prize is the extraordinary demand for Ryman's quality
homes and for care needs of our communities that we see ahead of us.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 4 of 23
Only by investing and continuously developing now can we put ourselves in the best
position to meet that demand. Not only that, we'll be fulfilling a very important social need
through investing in long -term critical healthcare infrastructure, which will create more
than 2000 permanent jobs in addition to over what will probably be 5000 construction jobs
over the life of the project.
When these 12 villages are complete, we would have created over 4000 new homes for
older people and freed up their existing homes which eases pressure on a very tight
housing market supply in both countries.
So you can see why it's a win-win for everyone, from the government through to our
residents, our new team members and also home buyers. As I've mentioned, COVID is an
enormous challenge but adversity is a great teacher.
If we've learned one thing this year, it is that security and reassurance of living in a village
community is more important than ever. We think this will result in even more demand for
the quality of life that living in a Ryman village offers in the years ahead.
Our residents have told us that they love the comfort and security of living in a supportive
community where there's plenty of help on hand to take care of every need. They find it
reassuring that they can easily hunker down during the lockdown surrounded by caring
and experienced health professionals who are there to help with anything that they might
need. And their families love that we share the responsibility to keep their loved ones
safe.
I'll now hand over to Gordy to talk you through the year and what is next as we recover
from the COVID-19 emergency and live with the new reality of a pandemic world. Over to
you Gordy.
Gordon MacLeod: Thanks David. Hi everybody. Morena. As David has mentioned, the
team has put in a huge amount of work to keep us safe from COVID and I can't thank
them enough.
Our team in Victoria has been working in PPE for over six months now and in the care
centres, that includes wearing face shields on top of N95 masks for a huge amount of the
time.
The Melbourne team have not been able to work from our office in St Kilda Road in the
CBD since March. Finally we're seeing the light at the end of the tunnel and thank
goodness for that.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 5 of 23
As David touched on, operationally, the most obvious impact from COVID was an increase
in cost and a significant restriction on sales and construction activity in Victoria and New
Zealand during the first half.
Trading was severely restricted for almost all of the six-month period in Victoria and
allowable levels of construction activity in metropolitan Melbourne see-sawed as the rules
changed.
Our New Zealand construction sites were shut completely for more than five weeks in
March and April. Shutting down or reducing the activity levels on large construction sites
is not easy and it took a lot of time to reopen safely under COVID conditions to get the
flywheel moving again.
Despite this, we still managed to achieve some significant milestones. Following a number
of false starts due to COVID-19, Eliza McCartney and Phil Goff joined us to officially open
our Murray Halberg village in October.
It was a fantastic night with over 300 residents and staff in attendance. We also opened
our village and care centre at William Sanders at Devonport where we still have additional
large stages completing in the second half.
I've had a couple of great visits to William Sanders with our construction and operations
teams and I can tell you that the village looks incredible and is another real step up in
innovation and look and feel. You can see that from those beautiful pictures there. It's a
real credit to the whole team and the residents and families that I met onsite when I was
there a couple of weeks ago just loved it.
We also moved our first residents in at James Wattie in Havelock North. And I received a
number of really heart-warming messages from new residents who were super impressed
with the quality of their new homes.
Miriam Corban on Lincoln Road in West Auckland is looking great as well. It is a
contemporary design and again, the first residents that I met were also delighted with the
finish and the whole look and feel.
At Highton in Victoria, residents moved in in August, only seems like the other day, and
are loving the experience. You can see on the slide in fact some future residents popping
a sold sticker on their unit. It's one of their favourite activities that the team love to
capture.
Our new Ocean Grove village on the Bellarine Peninsula in Victoria will open in December.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 6 of 23
We're still planning to have our John Flynn village open in Burwood East just before
Christmas and phew, that will be number five.
Having five villages open in Victoria by 2020 was a stretched target when we set it for
ourselves back in July 2015. That's just a wee thank you, Simon Challies for that goal. To
achieve this in such a tough year is amazing and we're nearly there.
To take us forward from this great position, we've decided to recruit a chief executive of
Ryman Australia as a new member of the senior executive team. This reflects the growth
opportunity in Victoria and beyond and would not have been possible without the
significant achievements of our teams over recent years.
Across New Zealand and Victoria, we have 12 villages coming onstream and more on the
way which gives us a strong platform for growth. We are expecting conditions to improve
in the second half as the housing market picks up in New Zealand and sales start moving
again in Victoria. I'm really reassured that the governments in both countries are very
committed to managing the borders and quarantine facilities highly effectively.
Our integrated villages and high-quality care continue to be in strong demand in the first
half. Care occupancy in established villages dipped a little bit during COVID lockdowns but
recovered to 97%. Only 1.9% of the retirement village portfolio was available for resale at
30 September. The sales team did a great job of supporting residents and adapting to
really difficult conditions.
The main impact on operational costs from COVID are on additional staff resources and
PPE. We have had well over 1300 people on paid leave as a COVID precaution since
February this year, either because of their health or close contacts.
As you can imagine, it's been a huge logistical challenge for our teams at villages to
manage their rosters when we have taken such a conservative stance on COVID risk. We
consumed a lot of PPE during the higher alert levels and we need to carry a lot in reserve.
And this is an ongoing commitment.
Overall, we have spent around $50 million on our COVID response so far, of which roughly
$34 million was on PPE alone. But the biggest driver of our working capital increase is the
development program which we have expanded significantly in the last two years.
This time two years ago, we were building on just these four sites. See them there? Here
we are today, having lifted our development program from these four sites to 12 sites
today. It's a significant lift. As we have previously said, it's our biggest ever expansion

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 7 of 23
program.
We have deliberately continued our build program even though resident receipts have
been restricted by COVID. This is because it is extremely hard to get the construction
flywheel going again if you stop. And residents, of course, still need to move into our
villages as soon as possible.
We're conscious of our debt levels. The reality is that our working capital debt reflects the
significant increase in our development program. It takes a huge amount of work to lift
development from four to 12 sites, believe me. And in addition to this, the development
team are also busy progressing the remaining sites in our land bank through the design
and consenting process. So there's still a lot more to come.
In fact, we're in the advanced consenting stages for five new villages. Subject to council
processing, we're hoping that consents will issue for these in the second half, further
adding to our growth options.
To show this in a different way, here's how our development pipeline looked two years
ago. We were building new villages at Nellie Melba, Murray Halberg, William Sanders, and
we had just broken ground at Linda Jones.
This is our development pipeline today. You can see the huge amount of progress we've
made. The 12 villages currently in progress will generate $2.7 billion in capital proceeds
and recurring income of $220 million on completion.
Collectively, those sites will recycle capital which is always our objective. One of the key
statistics that we monitor very closely is the amount of new sales under contract.
Currently we have $430 million of unconditional new sale contracts in place which will be
collected in cash over the next 12 to 18 months.
So, we have a strong forward order book and in fact, it's the highest it has ever been. In
the short term, we're anticipating $275 million of these contracts to be collected in the
second half. Up from $118 million in the second half of last year.
This will be the biggest six months of new sales cash collection in the Company's history
and reflects both strong demand and that some of our large construction stages have been
pushed into the second half.
Gordon MacLeod: Before I hand over to Dave Bennett, I'd just like to add one more vote of
thanks to everyone in the Ryman family. While 2020 has been a bit of a nightmare, I'm
conscious that it could have been much, much worse. But the extraordinary teamwork

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 8 of 23
from our army of over 6000 Rymanians and the goodwill of our 12,000 residents and their
many thousands of family members have got us through.
Our investors, our banks and our thousands of business partners have also been
supportive in our battle to keep everyone safe. They've understood that we put people
fir st, they've been flexible and willing to help and all of this has been a huge support to us
and it really means a lot, so thank you. Over to Dave on the finances.
David Bennett: Thanks Gordy and good morning. Our first half underlying profit of $88.4
million was a decrease of 14.2% on the same period last year. Our reported IFRS profit,
which includes unrealised fair value movements on investment property was a record
$212.4 million, an increase of 12.8% on last year. This included the valuation gain of $124
million, an increase of 33.9% or $31 million on last year.
The lift in the valuation affected the addition of 120 new units, the removal of the negative
near-term growth rates, applied by our valuer at 31 March, an adjustment to our discount
rates back to pre-COVID levels and pricing increases to affect our recent sales activity.
During the half, we booked 456 resales. This is in line with the prior year and a strong
endorsement of the relevancy of our offering, given our restricted ability to sell, due to the
lockdown conditions in New Zealand and Victoria.
Our cash receipts from residents were $483.1 million for the half, a decrease of 17.1% and
this reflects the delays to our build programme, largely due to the COVID-19 restrictions.
These delays have pushed the delivery of some large construction stages into the second
half of the year, but as Gordy mentioned earlier, we have a very strong order book.
We have invested a record $406 million into our portfolio over the half. That $406 million
of investing cash flows was spent as follows: $326 million was spent building new villages,
$37 million on supporting our land bank of 6171 units and beds, $20 million was invested
on upgrading existing villages to further enhance the resident experience, and $23 million
was invested in a range of projects, including the development of the next stage of system
integration and technology to enhance our offering.
This record investment during the half, combined with the delay in new sales settlements
due to COVID restrictions has seen our working capital debt increase to $2.11 million. This
is because we are now building across 12 sites, up from four sites two years ago. This has
required an upfront capital investment into each site, but it provides a better spread from
a sales perspective.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 9 of 23
The 23 sites in our land bank will generate $4.4 billion of capital proceeds. This is why we
regard our debt as productive debt. We invest the bulk of it in new villages, where we
recycle capital, and which establishes a growing tail of recurring cashflows. In addition to
the $4.4 billion of capital proceeds, if you assume an 8% return from the deferred
management fee and resales, this will generate an additional $350 million of recurring
profits each year.
We have total assets of $8.3 billion, up 14.9% from September 2019. We continue to have
very supportive banking partners, and our syndicate of banks understand our growth plans
and strongly support us. The debt to debt plus equity ratio is 46.2%, and the debt to total
assets ratio is 25.3%. Our banking facility has lifted to $2.4 billion, and we are also
considering a retail bond offer to New Zealand institutional and retail investors to provide
diversification of our funding from both a source and tenor perspective.
While costs are always front of mind given the current environment, we have established a
task force that I am chairing to work with our design, construction and procurement
teams. The focus of this team is on making sure we are finding efficiencies in our design
and tendering, while of course always providing the best possible outcome to our residents
and team members.
We have also recently launched refundable accommodation deposits or RADs for our care
beds in Auckland. These RADs give our residents the choice of how to pay the
accommodation premium, with the amount of the RAD being returned to the resident when
they vacate the room. The model is consistent with the model we have adopted in Victoria
over the last five years.
The benefit to our resident of the RAD option is reduced total cost for their care. In other
words, it gives the resident choice of a capital sum or rental payment for their room
premium with no deferred management fee. We are continuing to see the benefit of
developments being concentrated in high value centres. Our development margin is 29.4%
for the half, which is higher than our target range of 20% to 25%.
The resale bank of gains still to come on our existing portfolio currently stands at $945
million. This is the amount of resales margin we could crystallise today based on current
prices. So, these pent up gains mean we can expect our resale earnings to keep on
growing even if the housing market was flat for several years because volumes increase as
villages mature, and of course deferred management fees also reset to the new price
levels with each resale and so this creates a compound effect.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 10 of 23
Demand remains strong with only 144 units or 1.9% of our portfolio available for resale at
the end of September. This represents approximately six weeks vacancies and is a solid
achievement if you consider the significant impact of COVID. Demand for the care we
provide remains very high and we closed the half with occupancy at 97%. The aged care
sector in general is averaging only 87%, so we continue to significantly outperform the
market.
What triggers our ability to grow is simple – our model of recycling capital in our villages.
Since listing in 1999 and raising $25 million, we have now invested $4.78 billion in our
portfolio and paid out a growing dividend stream to shareholders of more than $965
million, but we've never had to raise any new capital. We are in a strong position to
continue to grow and bring Ryman to more communities. So, I thank you very much, and
over to you again, David.
David Kerr: Thank you Gordy and David. I hope that these presentations give you a good
picture of how we've travelled and what challenges we've had to face, and we'll now open
up for questions. Do we have some callers with questions please?
Operator: If you wish to ask a question, please press star one on your telephone and wait
for your name to be announced. If you wish to cancel your request, please press star two.
If you're on a speaker phone, please pick up the handset to ask your question. Your first
question comes from Andrew Steele with Jarden. Please go ahead.
Andrew Steele: (Jarden, Vice President) Good morning guys. The first one from me is on
gearing. With gearing at 46%, which is pretty elevated versus history and given the
ongoing operational uncertainty, in the short-term are you taking any actions or changing
plans in order to reduce this? In the medium-term, where would you like it to normalise at
sort of a target range?
Gordon MacLeod: Look, the main driver, Andrew, for the short-term spike, if you look to
September for the debt level, is really due to the fact that there was some fairly large
apartment stages, which would have normally completed in the back half of the first half,
but have moved into the second part of the year. That's why we've talked with people
today about the significant amount of cash receipts we're going to see in half two.
We're always very conscious of our debt levels, so, as Dave said earlier, we're constantly
monitoring our - the wisest way to spend our money and watch it really carefully.
However, with 12 sites on the go and the outcome from those 12 sites for residents and
also for shareholders, we're just going to continue to really prudently manage our rollout

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 11 of 23
and we've also got good sized bank facilities in place and other discussions obviously
ongoing as well.
Andrew Steele: (Jarden, Analyst) Thanks, Gordy. Does - reading between the lines on that
in terms of prudent rollout, does that mean that you will be looking to potentially temper
your development expectations or development rollout over the second half and into the
first half of next year?
Gordon MacLeod: Actually in the second half of the year, we'll probably see a lift in our
build rate from the first half, because the first half was quite significantly affected by
Melbourne's build rate reducing to 25% for basically two months and then only up to 85%
and then New Zealand having that - the loss of probably about a month and a half of
normal production levels. So all things being well, we should probably see a stronger
second half in terms of build numbers. But when we've got a forward-order book of $430
million of unconditional new sale contracts, we're not just boxing on with building for the
sake of it. We've got really strong forward orders.
Andrew Steele: (Jarden, Analyst) Great. Thanks, Gordy. Just to pick up on the point
about the delays in building as [unclear] the last result and the guidance you provided,
900 bed and units, if you were to look at that [composition] of the 900, are there any
particular projects which as a result of lockdown restrictions I guess mainly in Victoria that
are now unlikely to fall into this financial year or may [tip] the edge of this financial year,
next financial year?
Gordon MacLeod: Yes, look, we'd be really happy with an outcome of around the high
sevens for the year, so it hasn't been one particular project in particular. Probably
Aberfeldie we'd expect a bit less than what we were thinking, because that's obviously
been right in the heart of metro Melbourne and a couple of other sites too, so not a million
miles away from where we were, but it's probably taken about 100 or 130 or so off where
we thought it might have been.
Andrew Steele: (Jarden, Analyst) Okay. Thank you. You [reflect] then just that 130 units,
is the way to think about it into next year that you just - we sort of add 130 on to what
would have been the previous expectation or does it push out other projects in order to
manage the debt profile?
Gordon MacLeod: Yes. Possibly the latter, but, of course, it's really hard to know right
now, to be honest. If we're getting a good run on at different sites and things keep on
going back to normal, then obviously we'll be conscious of building in line with demand.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 12 of 23
Andrew Steele: (Jarden, Analyst) Okay. Thanks, Gordy. Just one final one for me. Based
on your current sales momentum, can you give an expectation on the seasonality between
1H and 2H for retail and new sales, assuming no further lockdown restrictions?
Gordon MacLeod: Yeah, we don't - look, we don't normally give sales - get down to sales
forecasts between halves, but if we - but here's maybe something to think about. As
we've said that we want to collect about $275 million of new sale cash collections in the
second half. Now, that will - on a full year basis, that will be the biggest new sale cash
collections we've ever achieved at Ryman. But that will represent 80% of our new sale
cash collections for the year will happen in the second half, ready with those stages, some
of those stages being shunted into H2.
So, the weighting for new sales definitely will be in the second half and that's also a
function of obviously the build program as well, as we signalled at the AGM. In terms of
resales, it's a little bit harder to say. We did about - what was it - 456 resales in the first
half, which was similar to the first half of last year. Of course, it's too soon to tell now.
It's early days that we could see a bit of a lift of that in the second half.
Andrew Steele: (Jarden, Analyst) Great. Thank you very much, Gordy.
Gordon MacLeod: Thank you.

Operator: Your next question comes from Jeremy Kincaid with UBS. Please go ahead.
Jeremy Kincaid: (UBS, Analyst) Good morning, team. Could I start with your gross
margins of 29%. They were quite strong, especially given Australia has historically been
slightly stronger than New Zealand on that front and so selling presumably more from New
Zealand suggests that number's even stronger, also in light of the fact that resale margins
declined, so could you just talk to that number and explain why it was quite so strong.
David Bennett: Yes, so the new sales margin, if we start with that one, as a function of the
sites that we sort of head to developments coming [through, and] so we touched on in the
presentation, there's some high value sites up in Auckland as well that are generating
some strong margins and some serviced apartment stock coming on onboard as well,
which typically generate good margins as well.
On the resale front, the lower margin is actually a function of the serviced apartment
resale weighting being slightly higher than normal. So if look at the sales stats, there'll be
a bigger weighting to serviced apartments, which on a resale perspective are lower
margin, because they are typically only a three or four year tenure, that the residents are,

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 13 of 23
so there's less house price inflation associated with each resale of a sales serviced
apartment.
Gordon MacLeod: I wouldn't mind giving a bit of a plug to the sales team. I think to
achieve the same sort of level of resales as the year before when we've lost such a
significant amount of trading time in New Zealand - a six-month period is a short trading
period and to lose the first month of that and a fair bit of momentum going into the second
month and obviously from March as well, it's just a really difficult time for the team and
obviously in Melbourne as well trying to do sales on Zoom is very difficult with older
people. So I think on the resale front to match last year's volume is a really terrific effort.
David Kerr: I agree.
Jeremy Kincaid: (UBS, Analyst) Great, thanks.
David Kerr: It's really a - it's impressive that they managed to achieve that - those resales
worth. Lots of our older people feeling quite nervous and anxious about the COVID
experience and so I think that it's a - the strong commendation to the sales team and they
are to be congratulated.
David Kerr: Carry on, Jeremy.
Jeremy Kincaid: (UBS, Analyst) Great. My next question is just around pent-up demand.
It's obviously something we've seen in New Zealand. I was just hoping if you could
provide some colour on how your experience in Melbourne has been in the early weeks
coming out of lockdown there.
Gordon MacLeod: Sure. Well, the sales activity, again, it's very early days, as you said,
but the sales activity is matching where we were at this time last year at this point in time,
so that's really good, so they've got back up to those levels straightaway. It's a big
change for people. I mean, if you think about the fact that people in our office haven't
worked in our office since March and there's been huge restrictions on people, I think it will
just take a few weeks for folk to get back into a normal rhythm and that sort of thing. But
our - speaking with our sales team, they are really upbeat; they are really looking forward
to getting back into it; they've done a lot of really good transactions in the last few weeks;
I think we'll get a lot of momentum when we're able to say that we have got those five
villages open by the end of 2020, which is going to be a great highlight.
Really importantly, we've had a lot of contracts in Victoria unconditional for some time
pending move-ins and we've hardly had any cancellations at all. The sales team have

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 14 of 23
done a wonderful job at keeping people happy and people are looking forward to moving
into our villages, so that - to me, that's the most important signal of demand when the
external situation is changing.
David Bennett: The wider property market is starting to show some good activity round
clearance rates and other bits and pieces too, so that will support that as well.
Jeremy Kincaid: (UBS, Analyst) Okay. Then just one final question for me, the new RAD
product on the care beds in Auckland - sorry - are you rolling that across the entire New
Zealand village base or is this rolling out across just new villages? Also, can you talk to
how popular the take-up has been for that?
Gordon MacLeod: Well, look, it's really early days just yet. We launched it with our village
management team and sales advisors in Auckland a few weeks ago, Dave and I, and, look,
it was really well received. The reason that it was well received is that our people
understand when we've got something that we are planning to do, which is a great deal for
residents and good for us. So being able to offer people choice, which is what people often
want and to do it in a way with no deferred management fee, I think, is going to hit a
really sweet spot.
We were keen to do it in Auckland to start with, because we always like to trial things first
of all, as you’d understand. We’ll find out and learn feedback from people during that time
and then the intention is to do it throughout New Zealand, subject to that feedback.
David Bennett: That’ll be across new and existing villages. We’ll take it to the whole
portfolio.
David Kerr: It’s really important maybe, to just observe that it will be a choice that people
have. We don’t have any expectation of any particular level of uptake. We’re just really
keen that the residents have this as a choice and we will just see how much they embrace
it.
Jeremy Kincaid: (UBS, Analyst) Okay. Are you willing to put some numbers around what
percentage of people that have purchased or considered this option have taken it up?
Gordon MacLeod: It’s such – look, it’s such early days, I don’t think – I think it’s something
we probably want to update on in a few months’ time, once we’ve – once the trial’s been
going. We’ve worked through a number of contracts with people. But we’ve had some
really great early feedback so, let’s see how we go.
Jeremy Kincaid: (UBS, Analyst) Okay. Thank you.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 15 of 23
Gordon MacLeod: Thank you.
Operator: Your next question comes from Stephen Ridgewell, with Craigs Investment
Partners. Please go ahead.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Yeah, good morning. Gordon,
just to follow up on Andrew’s question earlier. So, back in June, I mean, there was some
indication that perhaps we might be looking at 1300 units and beds for FY22. Is that still a
reasonable expectation, of course, subject to the normal kind of caveats around [COVID
etc.] But is that still something that you’d be aspiring to?
Gordon MacLeod: Yeah. Yeah, yep. Absolutely. Yep.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Okay. Okay, that was easy.
So, next one, perhaps, for David Kerr. David, just wondering if you could take us through
the thinking of why the Board’s decided to appoint an Australian CEO now, rather than
perhaps earlier or later, and whether there are organisational changes that the Board and
Gordon will sort of want the new CEO to oversee? Is there any hint in that appointment of
an Australian CEO rather than just the Victorian CEO that perhaps you’re looking to expand
into other states in the medium term?
David Kerr: Oh, look, thank you, Stephen. Look, in essence, we see Victoria as a great
growth opportunity and of course, there is growth potential beyond Victoria. I think what
we’ve learned, and I think Gordy’s term when we talked about it was, it’s very difficult to
lead a team from 30,000 feet. So, we have been very aware of the pressure on staff with
flying backwards and forwards and we’re really keen that the Australian team have their
own leadership.
That they are able to grow and that we don’t seem like a New Zealand company that’s
gone to Australia. That we feel part of Australia. So, I think it’s just those sorts of things,
Stephen, that have driven us to make that decision.
Gordon MacLeod: I want to reiterate, it’s not because of the Victorian leadership team
doing anything wrong. It’s actually the Victorian leadership we’ve got doing everything
right. They have created a tremendous opportunity for us. We established that team
about 18 months ago now, because we were keen that there was just a lot more
empowerment and self-determination in that key growth market for us, Stephen. They’ve
really done a great job.
David Kerr: They’ve done a wonderful job and... We’re going from two villages to five, I

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 16 of 23
think, by the end of this calendar year. So, and then a growth further beyond that. So,
it’s good that they have a level of leadership on the ground.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) That’s helpful, thanks. Then,
maybe just pivoting to the landbank where there’s still less acquisition activity in the half,
of course. Just wondering if you could – given that perhaps the green shoots you’re seeing
in the New Zealand business and be it through early days in the Victorian business, but –
which may well continue over the coming periods. Do you feel that the landbank’s kind of
right-sized or are you still actively looking for sites at the moment?
I guess, back in the June, indication was perhaps there was more of a tilt towards focusing
on building out existing sites, given the – as you alluded to, Gordy, there’s a lot of work
going on at 12 sites at the moment. But is there kind of openness to – or intent to go and
acquire further sites at this point?
Gordon MacLeod: Well, there’s always an openness and an intent to add really good sites
to the landbank. But it is fair to say that, with the landbank we currently do have, the 12
sites in progress, the five that we’re hoping to get consented between now and the end of
March, and then a number of others after that – coming shortly after that. We’re going to
have a really great development pipeline, which will give us options, plenty of irons in the
fire.
But of course, it’s really important to keep on replenishing it. I just think it hasn’t – we
just – with the amount of work we’ve got on the go, and with COVID-19, we just weren’t
rushing out of the blocks to buy significant parcels of land in the last sort of six months.
But the team have got good options, which we’re actually looking at as we speak, this
week, in fact. So, just watch this space.
David Kerr: Yeah. I mean, we would be presented, during our Board meetings this week,
with half a dozen good opportunities. It’s really – we do have to keep very mindful of
ensuring that the landbank will flow through, because the time between acquisition of
some land and actually turning it into a village is a number of years. So, we’re very
mindful of making sure that that landbank doesn’t diminish too much. So, we are aware of
the need, but these are challenging times.
Gordon MacLeod: We’re probably not that keen on the most difficult sites right now.
David Kerr: No, we’d like some not too expensive, easy sites, wouldn’t we?
Gordon MacLeod: Yeah. Yeah.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 17 of 23
Gordon MacLeod: Yeah, we’ve had a couple of – you always need a mix and we are
conscious that a few of the sites we’ve got on the go right now, are fairly complex from a
consenting point of view. So, any new additions would need to be less complex.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Okay, that’s good colour. Thank
you. Then maybe, for David Bennett, just on the COVID-19 -related costs, which I think
you called out as being for $50 million. I mean, how much of that sort of flowed through
in the first half and then could you just spell out perhaps how much of that was operating
cost? Then maybe just a rough guide to Aussie and New Zealand split, I presume – is it
perhaps a decent impact on the Australian kind of result?
David Bennett: Yeah, so, there’s about sort of $19 million worth of costs that flowed
through. Obviously, we did have some sort of additional funding that offset that. So, net
was about six, $6 mill that went through the P&L. In terms of the split between the two,
it's probably about 15, 20 per cent of it, I would say, would be in Australia. Because they
were in masks and visors for a longer period and we had the security measures in place for
a lot longer.
Gordon MacLeod: But what we can tell you, Ridgey, is that $34 million of the 50 was on
PPE. We also spent a million dollars on this thing called a fogging machine.
David Kerr: Four fogging machines.
Gordon MacLeod: Four fogging machines. Where you put hydrogen peroxide capsules in
and you turn them on like for 30, 60 seconds, and it completely cleans the room of all
bugs, including COVID-19. So, we’ve been using those and we’ve had them sort of spread
around the place. We also – of the balance of the $16 million to get to 50, we’ve had, as I
said earlier, 1300 staff on precautionary leave, either through just illness that we weren’t
happy for people to come in with, or close contacts.
That was all fully paid by us. That was a really key control measure that we had in place.
Was really trying to make sure working with our people that no-one was coming to work
sick. Of course, a lot of sort of staff welfare and resident welfare packs, additional
security, you name it. Happy Hours in a bag, it was a very intense and demanding time.
David Kerr: I think it’s – those of us who wear masks for short periods of time on public
transport, you just need to think about what it’s like to wear that for an eight-hour shift.
So, it was absolutely critical that we kept our rosters full, that we weren’t having skinny
rosters. Because that would’ve been just an added stress. So, the combination of making

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 18 of 23
sure people didn’t come to work when they had any potential illness or contact and making
sure the roster was full was quite a cost.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Yeah, and just on that topic.
Well done to the company for keeping COVID-19 out, particularly in Melbourne. It’s
obviously a really difficult situation there for the last six months.
Gordon MacLeod: Thank you, Stephen.
David Bennett: Thank you.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) So, look, just one final one from
me. Just a slightly more technical question, the $275 million guide for cash inflows in the
second half. Just very approximately, how much of that is contracts in hand – you talked
to the $431 million, Gordy, earlier, on condition of the contracts you’ve got. How much is
assumed new – sales that – from here, if you like?
Gordon MacLeod: Oh, okay, yep.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Sort of high probability?
Gordon MacLeod: 100 per cent of the 275 unconditional new sale contracts. So the point of
trigger for us to collect it will be people moving into either completed units or units which
are going to be completed. To put it into context, the second half of last year, same
number was 118 and of course, so therefore...
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Yes, that’s great [unclear]...
Gordon MacLeod: Therefore, that 275 could be higher, depending on whether - if we make
sales where people can move in before Christmas from here...
David Kerr: No, [unclear] March.
Gordon MacLeod: Sorry, before the end of March from here. Yes.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Got it, okay. No, that’s very
helpful, thank you.
Gordon MacLeod: Thanks. Thanks, [Steven]
Operator: Your next question comes from Aaron Ibbotson with Forsyth Barr. Please, go
ahead.
Aaron Ibbotson: (Forsyth Barr, Analyst) Hi there. Good morning. Just two - a quick one for
me. The first one is on CapEx spend or investment cashflow, I guess. Do you have any sort

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 19 of 23
of rough guidance for the next six months and maybe also matching the 12 to 18 months
period that you discussed relative to collecting uncontracted sales?
Then secondly, I just had a quick follow up or clarification on this $50 million of cost that
you touched on before. You said $19 million had flown through, presumably you meant the
P&L, yes? So the others, should we expect some of that to flow through, through the
depreciation line basically? Is this CapEx? Or is the $30 million or $34 million PPE...
Gordon MacLeod: Yes.
Aaron Ibbotson: (Forsyth Barr, Analyst) Presumably will be consumed through the P&L in
the next six months? Thank you.
Gordon MacLeod: Yes, the balance of the personal protective equipment will be expensed
from the balance sheet as it is consumed. In terms of capital expenditure guidance, we
don’t really provide that normally. We normally talk about build rate, so we’re talking high
sevens, perhaps for 31 March ’21 and then lifting that again to 31 March ’22.
In terms of CapEx spend in the six months, I mean, Dave, do you have any thoughts on
that?
David Bennett: Yes, it’ll be sort of in the early to mid-threes. $300 mill, I think. So it’ll be
down on the first half as we’ve got going across the 12 sites but it’ll be of significant
investment.
Aaron Ibbotson: (Forsyth Barr, Analyst) Okay. Okay, thank you. That’s it.
David Bennett: Thank you. Thanks, Aaron.
Gordon MacLeod: Thanks, Aaron.
Operator: Your next question comes from Raveen Kuhadas with ICE Investors. Please, go
ahead.
Raveen Kuhadas: (ICE Investors, Analyst) Hi guys, I just had a question on slide 44 where
you have your average and new resale price. Can we just get some colour for the
difference between the new sales and resales prices? It’s a lot higher for the new sales? Is
it a function of mix or demand or some other factor there?
Gordon MacLeod: It’s really due to the location of the new villages, a number being in
Auckland and a number being in Melbourne. So the resale price includes also some
provincial New Zealand. So that brings it down. So that’s the main difference for the price.
Raveen Kuhadas: (ICE Investors, Analyst) Right, okay. Thanks.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 20 of 23
Multiple Speakers: Thank you.
Operator: Your next question comes from Jason Familton with ACC. Please, go ahead.
Jason Familton: (ACC, Analyst) Morning guys, first of all well done to David, Gordy and
your team for [unclear] challenging six months and you’ve done a really, really good job of
protecting [residents] so well done on that.
Gordon MacLeod: Thank you.
Jason Familton: (ACC, Analyst) Can you just - can you talk to - I’m just trying to
un derstand these RADs a little bit more. So just - there’s no premium charging. You
reduced the premium charging. Is it a swap out for the premium charge?
David Kerr: Yes. Yes, it is.
Jason Familton: (ACC, Analyst) How that...
Gordon MacLeod: Yes, it was just a choice...
Jason Familton: (ACC, Analyst) ...financial [unclear] might work.
Gordon MacLeod: Just a choice between one or the other.
Jason Familton: (ACC, Analyst) Okay and why no DMF then? Because clearly you’re taking
a financial hit in the short-term but obviously you don’t get a capital release.
Gordon MacLeod: We just feel it’s the right balance and we’ve looked very closely at what
works well for us in a different market as well and we think that will be a popular outcome
for residents and also good for us either way.
Jason Familton: (ACC, Analyst) Okay. The second one, I guess is for David. Just - can you
just talk to - around the Board’s decision to pay a dividend given you’ve taken the wage
subsidy in the six-month period and what consideration was given to not rewarding
shareholders for this period?
David Kerr: Yes, look, that was quite a lengthy discussion, I have to say. Just as the
decision to take a wage subsidy was a lengthy discussion. We felt that the wage subsidy
was a great initiative by government that we were, as a result of it, able to continue to
employ all our staff and redeploy staff and engage new staff to enable the villages to stay
safe.
So effectively, we kept and grew jobs and so when you then look at the other side of it in
terms of what we have spent to keep our villages safe and our staff safe, we’ve probably

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 21 of 23
spent about three times the wage subsidy.
So we felt that the whole thing balanced out. That it was appropriate to pay a dividend.
That’s been our practice over many years to pay 50% of the underlying profit and so the
Board decided that was the right call to make.
Jason Familton: (ACC, Analyst) Okay, thanks for that and just a final one from me. I know
it’s probably a question to answer but you talked to the $4.4 billion of proceeds from
development of a land bank. Are you willing to put a number - for CapEx that you need to
spend from now until that development is complete?
Gordon MacLeod: It’ll be just over four, I guess.
David Bennett: Or slightly less because we’ve spent quite a bit of that. So...
Gordon MacLeod: Oh. Yes, I mean, if they hadn’t started, I mean.
David Bennett: Yes, if they hadn’t started.
Gordon MacLeod: Yes.
David Bennett: So if you work on the basis that we’ve got about $400 million of core debt,
Jason, you can sort of do the maths with that. We’d expect the majority of that $4.4 billion
to pay down the remaining debt and the construction cost to complete that.
Jason Familton: (ACC, Analyst) Okay, cool. Thanks for that.
Multiple Speakers: Thank you, Jason.
Operator: Your next question comes from Nick Mah with Macquarie. Please, go ahead.
Nick Mah: (Macquarie, Analyst) Hey guys, lots of questions have been answered but one
on the pricing strategy at the moment, given how strong New Zealand house prices have
been. What are you thinking on prices, particularly on resale stock?
Gordon MacLeod: We’d like to see a bit more evidence in the market, I think, before we
push pricing too hard.
David Bennett: Yes.
Gordon MacLeod: Obviously, we’ve seen a price lift in the latter part of the first half and
we’ll just keep on monitoring that closely, Nick.
David Bennett: So we have taken a small portion of that, Nick, and you see that in our
resale bank but there’s - yes, if the market holds, there’s more upside to be taken.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 22 of 23
Gordon MacLeod: Look, I think the main message from it is the resale bank number that
you see and the development margin number that you see is not us pushing our pricing
right to the limit by any stretch.
We’re well under the sort of increases that you’ve seen in Auckland and I guess we’ll see
what plays out in Melbourne, but it might be something similar. So, we will keep a close
eye on it and we might lag - I guess we might just lag the market, which is our usual
conservative stance, by a few months to make sure it is sustained.
David Kerr: Yes, keeping that differential between what the resident gets for their home
when they sell it and what they pay to enter a Ryman Village is really important to us.
That natural buffer is important.
Nick Mah: (Macquarie, Analyst) Yes. No, that makes sense and then in terms of the
potential bond issue, would the intention be to cancel an equal amount of debt facility? Or
is this going to be additional debt capacity for the business?
Go rdon MacLeod: The intention of it is to repay bank debt and diversify funding lines but
not to cancel bank facilities.
Nick Mah: (Macquarie, Analyst) Okay, no, that’s great. Then lastly, just on the potential
new regions in Australia, what do you think the lead time from deciding you want to go
into say, New South Wales, to actually opening a first village could be on a hypothetical
basis?
Gordon MacLeod: Yes, look, really interesting one. Obviously for now, we’re really focussed
on getting our - and for many ways, just getting 2020 done. In that objective, we’ve got
another six great sites over there in our landbank as well, which we’re getting good
consenting flow through, too.
That should put us in a position where we can start looking at market outside of Victoria,
probably sometime in the next 12 months and it will be at a - obviously exploratory
thinking. We’ll learn lessons that are relevant to Victoria as well. But I guess maybe in say
three years’ time, it might be quite a realistic prospect.
David Kerr: Yes, there are so many uncertainties, aren’t there Nick? What are we going to
have - I see South Australia in lockdown again. Like all of these things are difficult to
predict. I think we’ll stick to knitting in Victoria for a bit.
Gordon MacLeod: Yes, but – yes, you know.

Ryman Healthcare Half Year Results Briefing
20 November 2020

Page 23 of 23
David Kerr: But yes...
Gordon MacLeod: We see opportunity, right?
David Kerr: Clearly.
Nick Mah: (Macquarie, Analyst) Yes, absolutely. Great, thanks a lot guys.
Gordon MacLeod: Thank you.
David Kerr: Thanks, Nick.
Operator: Thank you. There are no further questions at this time.
David Kerr: Look, thank you very much for your time and attention today. As I’ve said,
we’ve had quite a year, haven’t we, and we look forward to coming back to you in six
months’ time. So, I thank you, I hope you all have a good day. Bye.
Gordon MacLeod: Thank you very much.
David Bennett: Thank you.
End of Transcript

Paula Jeffs joins Ryman Healthcare’s board Ryman Healthcare interim results transcript

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