Ryman full year underlying profit of $242 million, up 6.6%

Full Year Results11 June 2020RYMHealthcare

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Results for announcement to the market
Name of issuer Ryman Healthcare Limited
Reporting Period Year to 31 March 2020
Previous Reporting Period Year to 31 March 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing operations $422,111,000 10.8%
Fair value movement of investment
properties
$144,438,000 -50.7%
Total income $568,321,000 -15.8%
Net profit/(loss) from continuing
operations
$264,710,000 -18.8%
Total net profit/(loss) $264,710,000 -18.8%
Underlying profit (non-GAAP) – see
explanation below
$242,031,000 6.6%
Interim/Final Dividend
Amount per Quoted Equity Security 12.7 cents
Imputed amount per Quoted Equity
Security
Not imputed
Record Date 26 June 2020
Dividend Payment Date 10 July 2020
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security (cents per share)
452.6 428.4
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 12 June 2020

Audited financial statements accompany this announcement.

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

MEDIA RELEASE June 12, 2020
Ryman reports audited full year underlying profit of $242 million, up 6.6%
Highlights:
• Audited underlying profit up 6.6% to $242 million in the year to March 31, 2020
• Audited reported (IFRS) profit, including unrealised valuation gains, down 19% to $265
million, due to changes in valuation assumptions impacted by COVID-19
• Final dividend of 12.7 cents, taking the full year dividend lifted to 24.2 cents per share, in line
with growth in underlying profit
• Operating cash flows rose 12% to $449.8 million, cash receipts up 12% to $1.13 billion
• Significant investment in keeping residents and staff safe from COVID-19
• Record $711.4 million invested in portfolio, and construction under way on 12 new villages
with 841 beds and units built in the year, up 11%
• Total assets of $7.68 billion, up 15%
• Continued strong demand for villages with only 1.7% of resale units unsold at year end, and
98% occupancy at established care centres
• New Takapuna site acquired, thirteenth site in Auckland – landbank at 6600 beds and units
• Seven new villages approved by councils; another seven new village applications lodged
• Named Most Trusted Brand in the NZ industry for sixth time, awarded the Dementia
Friendly tick from Alzheimers NZ, staff and residents happier than ever
• Targeting having five villages open in Victoria by December 31, 2020
Ryman Healthcare’s audited full year underlying profit rose 6.6% to $242 million thanks
to strong demand at new villages and the company is in good shape to recover from the
disruption caused by COVID-19.
Audited reported (IFRS) profit, which includes unrealised fair value gains on investment property,
was $265 million, down 19%. The unrealised fair value movement was down $173 million in the year
due to changes in valuation assumptions impacted by COVID-19.
This was partially offset by the reintroduction of tax depreciation by the New Zealand Government
on commercial buildings which resulted in a deferred tax credit of $86 million.

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

Shareholders will receive an increased final dividend of 12.7 cents per share, taking the total dividend
for the year to 24.2 cents per share, in line with the increase in underlying profit. The dividend will
be paid on July 10, the record date for entitlements is June 26.
The growth in underlying profits was driven by strong development margins, particularly from
Ryman’s Melbourne and Auckland villages.
Cash generation was strong during the year with operating cashflows up 12% to $449.8 million.
Total assets were $7.68 billion, up 15%, reflecting the value created by ongoing development and
strong demand. Ryman invested $711.4 million during the year with construction across 12 sites and
continued investment in innovation and its existing portfolio.
Chairman Dr David Kerr said it was a solid result given the disruption caused by COVID-19.
“The most important thing for us was to continue to keep COVID-19 out and to look after our
11,600 residents and 6,000 staff. We have been successful so far, but we take nothing for granted.
“We have had huge commitment from our team, and a massive amount of goodwill from our
residents and their families throughout. I thank everyone who has played a part in this and continues
to do so during the recovery.’’
The COVID challenge had proven the Ryman model of retirement living and care was more relevant
to our residents and their families than ever, Dr Kerr said.
“We took some big decisions, including starting to ban visitors from countries with COVID-19
infections in January, locking down access to our villages in March, increasing pay at our villages
during lockdown and stocking up on PPE to keep everyone safe. Our decisions mean we are in good
shape for the recovery.
“We are a values-based company – people come first. With this approach we will weather the storm
and enhance our reputation as a safe haven for people in retirement and a great place to work.’’
Ryman was able to reassign members of its construction team to help with security and grocery
deliveries during the Level 4 lockdown and its marketing and sales staff worked in support roles,
helping with welfare calls and communications, Dr Kerr said.
Chief Executive Gordon MacLeod said Ryman had been on track to finish the year strongly before
the profound impact of COVID-19 began to be felt.
“We had our strongest February ever with record sales and we had built a lot of momentum for
March, which is the end of the selling season for us and traditionally our biggest month,’’ Mr
MacLeod said.
“The decisions we took to close down our villages to visitors early had an impact on sales activity in
March, and we had to shut our construction sites at short notice.’’
Ryman’s villages and high-quality care offering continued to be in strong demand, with low resale
stock. Care occupancy in established villages was at 98% at March 31.
“We are beginning to see sales activity ramp up, it is good to be building again, and our sales and
construction teams are up for the challenge,’’ Mr MacLeod said.
Ryman’s balance sheet remains well placed to support the build programme, but all development
decisions would be carefully considered as the New Zealand and Victorian economies recover from
the impact of COVID-19.

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

Ryman has work under way on 12 sites in New Zealand and Victoria, and its strongest ever land
bank with 60% of units and beds consented.
“We have had a busy 12 months with seven new villages approved by councils, and we have another
seven new village applications lodged,” Mr MacLeod said.
Ryman has purchased a new village site in Takapuna, which will become its thirteenth village in
Auckland.
Mr MacLeod confirmed that Ryman is still targeting to have its fifth village open in Victoria by the
end of the year.
During the year Ryman was voted the Most Trusted Brand in the New Zealand industry for the
sixth time and was awarded Dementia Friendly status for all its villages by Alzheimers NZ.
Staff and residents were happier than ever, with significant lifts in survey results during the COVID
emergency.
“We are incredibly grateful to our team for the care and support they provided for our residents
over the past three months. We know our residents think the world of them, and so do I,’’ Mr
MacLeod said.

New villages currently under way
Brandon Park, Melbourne (Nellie Melba) Havelock North, Hawkes Bay
Lynfield, Auckland (Murray Halberg) Hobsonville, Auckland
Devonport, Auckland (William Sanders) Highton, Geelong
River Road, Hamilton (Linda Jones) Aberfeldie, Melbourne
Burwood East, Melbourne (John Flynn) Riccarton Park, Christchurch
Lincoln Road, Auckland Ocean Grove, Victoria

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

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 11,600 residents, and
the company employs more than 6,000 staff.
Contacts: For media information or images contact David King, Corporate Affairs Manager, on 021
499 602 (+64 21 499 602) or email david.king@rymanhealthcare.com
For investor relations information contact Michelle Perkins, Investor Relations Manager, on 027 222
9684 (+64 27 222 9684) or email michelle.perkins@rymanhealthcare.com

RYMAN HEALTHCARE LIMITED
KEY STATISTICS

Mar 20 Mar 19

Full Year Full Year

Audited Audited

Underlying profit (non-GAAP)
1
$m 242.0 227.0
Plus unrealised fair-value movement on
retirement-village units $m (70.9) 102.4
Less deferred tax movement $m 93.6 (3.4)
Reported net profit after tax $m 264.7 326.0

Net operating cash flows $m 449.8 401.4

Earnings per share - basic and diluted cents 52.9 65.2

Dividend per share cents 24.2 22.7

Net tangible assets - basic and diluted cents 452.6 428.4

Sales of Occupation Right Agreements

New sales of occupation rights
2
no. 513 414
Resales of occupation rights no. 923 824
Total sales of occupation rights no. 1,436 1,238

New sales of occupation rights $m 386.7 290.7
Resales of occupation rights $m 483.2 417.4
Total sales of occupation rights $m 869.9 708.1

Portfolio:

Aged-care beds no. 3,911 3,660
Retirement-village units no. 7,423 6,878
Total units and beds no. 11,334 10,538

Land bank (to be developed)
3

Aged-care beds no. 1,891 2,062
Retirement-village units no. 4,704 4,950
Total units and beds no. 6,595 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 movements on investment properties because
these items do not reflect the trading performance of the company. Underlying profit determines the dividend payout to
shareholders.

2
513 new sales of occupation rights for March 2020 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 year ended 31 March 2020

Notes 2020 2019 Variance
$000 $000 %

Care fees 333,398 302,003 10.4%
Management fees 88,713 78,944 12.4%
Interest received 547 532 2.8%
Other income 1,225 855 43.3%
Total revenue 423,883 382,334 10.9%

Fair-value movement of investment properties 4 144,438 292,910 -50.7%
Total income 568,321 675,244 -15.8%

Operating expenses (349,249) (303,745) 15.0%
Depreciation and amortisation expense (28,616) (23,125) 23.7%
Finance costs (19,309) (18,959) 1.8%
Total expenses (397,174) (345,829) 14.8%

Profit before income tax 171,147 329,415 -48.0%
Income-tax credit/(expense) 93,563 (3,429) -2828.6%
Profit for the year
264,710 325,986 -18.8%

Earnings per share

Basic and diluted (cents per share) 7 52.9 65.2 -18.9%

Consolidated statement of comprehensive income
For the year ended 31 March 2020

2020 2019
$000 $000

Profit for the year 264,710 325,986

Items that may be later reclassified to profit or loss
Fair-value movement and reclassification of interest-rate
swaps

(10,416)

(5,181)
Deferred tax movement on interest-rate swap reserve 2,916 1,451
Gain on hedge of foreign-owned subsidiary net assets 1,205 1,333
Loss on translation of foreign operations (5,674) (4,966)
(11,969) (7,363)
Items that will not be later reclassified to profit or loss
Revaluation of property, plant and equipment (unrealised) - 24,456
- 24,456
Other comprehensive income (11,969) 17,093
Total comprehensive income 252,741 343,079

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 financial statements.

2

RYMAN HEALTHCARE LIMITED
Consolidated statement of changes in equity
For the year ended 31 March 2020

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

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

Balance at 1 April
2018 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

Balance at 1 April
2019 33,290 257,775 (9,643) (5,876) (27,465) 1,922,049 2,170,130
Profit and total
comprehensive income
for the year - - (7,500) (4,469) - 264,710 252,741
Treasury stock
movement - - - - (4,894) - (4,894)
Dividends paid to
shareholders - - - - - (117,000) (117,000)
Closing balance at
31 March 2020 33,290 257,775 (17,143) (10,345) (32,359) 2,069,759 2,300,977

The accompanying notes form part of these financial statements.

3

RYMAN HEALTHCARE LIMITED
Consolidated balance sheet
At 31 March 2020

Notes 2020 2019
$000 $000

Assets
Cash and cash equivalents 34,374 -
Trade and other receivables 425,942 344,814
Advances to employees 10,224 8,152
Property, plant and equipment 3 1,386,072 1,188,940
Investment properties 4 5,760,060 5,081,607
Intangible assets 38,119 27,968
Deferred tax asset (net) 22,455 -
Total assets 7,677,246 6,651,481

Equity
Issued capital 7 33,290 33,290
Asset revaluation reserve 257,775 257,775
Interest-rate swap reserve (17,143) (9,643)
Foreign-currency translation reserve (10,345) (5,876)
Treasury stock (32,359) (27,465)
Retained earnings 2,069,759 1,922,049
Total equity 2,300,977 2,170,130

Liabilities
Trade and other payables 9 183,975 126,909
Employee entitlements 25,678 23,834
Revenue in advance 64,301 57,845
Interest-rate swaps 23,809 13,393
Refundable accommodation deposits 74,571 34,013
Bank loans (secured) 1,741,613 1,324,003
Occupancy advances (non-interest bearing) 5 3,247,177 2,827,690
Lease liabilities 15,145 -
Deferred tax liability (net) - 73,664
Total liabilities 5,376,269 4,481,351

Total equity and liabilities 7,677,246 6,651,481

Net tangible assets
Basic and diluted (cents per share) 7 452.6 428.4

The accompanying notes form part of these financial statements.

4

RYMAN HEALTHCARE LIMITED
Consolidated statement of cash flows
For the year ended 31 March 2020

Notes 2020 2019
$000 $000

Operating activities
Receipts from residents 1,129,933 1,009,496
Interest received 573 588
Payments to suppliers and employees (345,765) (306,234)
Payments to residents (315,903) (283,736)
Interest paid (19,047) (18,689)
Net operating cash flows 2 449,791 401,425

Investing activities
Purchase of property, plant and equipment (265,177) (150,252)
Purchase of intangible assets (9,712) (6,918)
Purchase of investment properties (401,612) (364,186)
Capitalised interest paid (34,911) (31,003)
Advances to employees (2,071) (2,316)
Net investing cash flows (713,483) (554,675)

Financing activities
Drawdown of bank loans (net) 421,874 266,718
Dividends paid (117,000) (108,500)
Purchase of treasury stock (net) (4,895) (4,968)
Repayment of lease liabilities (1,913) -
Net financing cash flows 298,066 153,250

Net increase in cash and cash equivalents 34,374 -
Cash and cash equivalents at the beginning of the year - -
Cash and cash equivalents at the end of the year 34,374 -

The accompanying notes form part of these financial statements.

5

Ryman Healthcare Limited
Selected notes to the consolidated financial statements
For the year ended 31 March 2020

1. Summary of Accounting Policies
Ryman Healthcare Limited is a profit-oriented entity incorporated in New Zealand and 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 company and its wholly-owned subsidiaries comprise the Ryman Group (the Group).

Basis of preparation

These financial statements for the year ended 31 March 2020 have been extracted from the audited annual
Group financial statements for the year ended 31 March 2020 and have been prepared to satisfy the Group’s
NZX reporting obligations.

Apart from the new standards adopted in the current period (see below), the audited financial statements
have been prepared under the same accounting policies and basis as those used in the prior year’s interim
and annual financial statements.

The financial statements were approved by the Board of Directors on 11 June 2020.

The information is presented in thousands of New Zealand dollars.

Uncertainty due to COVID-19

The outbreak of COVID-19, declared by the World Health Organization as a global pandemic on 11 March
2020, has resulted in an increase in uncertainty in both global and local markets.

Both New Zealand and Australia have responded well to the virus with strong public health measures and a
range of economic stimulus packages. However, despite the response, there remains uncertainty as to the
impact of the virus on market conditions in New Zealand and Australia.

The Group’s primary focus in responding to the pandemic has been to protect the safety of both residents
and staff. Access restrictions were put in place at villages, additional personal protective equipment was
procured for staff, and other costs were incurred in supporting residents and staff.

Under the lockdown the ability of new residents to enter villages was limited, meaning few sales could be
settled, and the restrictions at development sites resulted in construction activity being suspended.

The Group has assessed the impact of COVID-19 and has concluded that additional uncertainty regarding
the valuation of property, plant and equipment (note 3) and valuation of investment properties (note 4) has
resulted from the pandemic. Further disclosure as to the impact of COVID-19 is included in the relevant
notes.

Adopting of new and amended standards and interpretations

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

NZ IFRS 16 Leases was effective for the Group from 1 April 2019. The new standard introduced 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.

6

Ryman Healthcare Limited
Selected notes to the consolidated financial statements
For the year ended 31 March 2020

1. Summary of Accounting Policies (continued)
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.

The Group used several 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 at the date of initial application were 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 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, and the related cash flows
through operating activities in the cash flow statement.

The Group recognises all long-term leases of land within property, plant and equipment and investment
property. NZ IFRS 16 has not impacted how these leases have been accounted for. Future lease payments
required under the terms of the contract continue to be recognised as a liability.

A lease contract may contain both lease and non-lease components. For construction leases (for example,
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.

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 incremental borrowing rate for the Group on transition
was 3.75 percent.

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.

7

Ryman Healthcare Limited
Selected notes to the consolidated financial statements
For the year ended 31 March 2020

1. Summary of Accounting Policies (continued)
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.

We are not aware of any NZ IFRS Standards or Interpretations that have recently been issued or amended
that have not yet been adopted by the Group that would materially impact the Group for the annual report
period ending 31 March 2020.

2. Reconciliation of net profit after tax with net cash flow from operating
activities
2020 2019
$000 $000

Net profit after tax 264,710 325,986

Adjusted for:
Movements in balance sheet items
Occupancy advances 482,962 367,538
Accrued management fees (64,051) (54,652)
Refundable accommodation deposits 40,558 3,256
Revenue in advance 6,456 5,890
Trade and other payables 5,507 2,165
Trade and other receivables (81,124) 12,669
Employee entitlements 1,844 3,597

Non-cash items:
Depreciation and amortisation 26,829 23,125
Depreciation of right-of-use assets 1,787 -
Deferred tax (93,563) 3,429
Unrealised foreign-exchange loss 2,314 1,332

Adjusted for:
Fair-value movement of investment properties (144,438) (292,910)
Net operating cash flows 449,791 401,425

Net operating cash flows includes net occupancy advance receipts from retirement-village residents of
$755.3 million (2019: $703.6 million).

Also included in operating cash flows are net receipts from refundable accommodation deposits of
$41.1 million (2019: $3.8 million).

Net operating cash flows also include management fees collected of $44.6 million (2019: $39.0 million).

8

Ryman Healthcare Limited
Selected notes to the consolidated financial statements
For the year ended 31 March 2020

3. Property, plant and equipment
All completed resthomes and hospitals included within the definition of freehold land and buildings were
revalued to fair value based on an independent valuation report prepared by registered valuers, CBRE
Limited, at 31 March 2019, in line with NZ IFRS 13. These revaluations are undertaken every 2 years, unless
there is sustained market evidence of a significant change in fair value.

The valuers used multiple valuation techniques to estimate and determine fair value. The valuer made key
assumptions that include capitalisation of earnings (using capitalisation rates ranging from 11 percent to 15
percent), together with observed transactional evidence of the market value per care bed (ranging from
$60,000 to $150,000 per care bed).

As the valuer uses several valuation techniques a significant decrease in the capitalisation rate could but may
not necessarily result in a significantly higher fair-value measurement. Conversely, a significant increase in
the capitalisation rate could but may not necessarily result in a significantly lower fair-value measurement.

A significant increase in the market value per care bed could but may not necessarily result in a significantly
higher fair-value measurement. Conversely, a significant decrease in the market value per care bed could
but may not necessarily result in a significantly lower fair-value measurement.

The completed resthomes and hospitals were last valued at 31 March 2019. The Group has considered the
fair value of these assets and determined that there is no indication that the carrying value of the assets is
materially different to fair value at 31 March 2020.

In reaching this conclusion the Group has considered the impact of COVID-19, the response of the aged-
care sector to the pandemic and the positive response to the virus in both Australia and New Zealand.
Consideration was given to the earnings per bed, market evidence of comparable sales, and the fact that the
need for aged care has not reduced as a result of the pandemic.

Occupancy in the Group’s mature aged-care facilities has not been impacted by COVID-19.

9

Ryman Healthcare Limited
Selected notes to the consolidated financial statements
For the year ended 31 March 2020

4. Investment properties
2020 2019
$000 $000
At fair value
Balance at beginning of financial year 5,081,607 4,398,304

Additions 541,272 395,931
Fair-value movement:
Realised fair-value movement:

• new retirement village units
105,757 87,866
• existing retirement village units
109,565 102,600
215,322 190,466
Unrealised fair-value movement (70,884) 102,444
144,438 292,910

Net foreign-currency exchange differences (7,257) (5,538)

Net movement for the year 678,453 683,303

Balance at end of financial year 5,760,060 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. As the fair value of investment property is
determined using inputs that are unobservable, the Group has categorised investment property as Level 3
under the fair-value hierarchy in line with NZ IFRS 13 Fair Value Measurements.

The carrying value of completed investment property is the fair value as determined by an independent
valuation report prepared by registered valuers CBRE Limited, at 31 March 2020. This report combines
discounted future cash flows and occupancy advances received from residents for retirement-village units
that are complete or nearing completion, for which there is an unconditional agreement to occupy.

Uncertainty due to COVID-19

The valuation of investment properties performed by CBRE Limited at 31 March 2020 is based on the
information available to them at the time of the valuation and relies on several inputs, as outlined below.
Given the current situation with COVID-19 there is an increase in the estimation uncertainty in determining
the fair value of investment property at 31 March 2020 compared to previous years.
CBRE have noted that it is difficult to determine the effect that COVID-19 will have on the retirement sector.
The impact will depend on the scale and length of the outbreak and the impact on the economy.
Comparable transactions and market evidence has been limited during the pandemic and CBRE have placed
less reliance on previous market evidence for comparison purposes.
The valuer has reported on the basis of ‘material valuation uncertainty’ and therefore less certainty and a
higher degree of caution is attached to the valuation than would normally be the case.
To reflect this uncertainty CBRE Limited have adjusted their assumptions on recycle frequencies for
independent units at mature villages, near-term house price inflation for independent units, and discount rates.

10

Ryman Healthcare Limited
Selected notes to the consolidated financial statements
For the year ended 31 March 2020

5. Investment properties (continued)

Key assumptions

The valuer used significant assumptions that include house-price inflation (ranging from -2.0 percent to 3.5
percent nominal) (2019: 0.5 percent to 3.5 percent) and discount rate (ranging from 12.25 percent to 16.25
percent) (2019: 12 percent to 16 percent).

Sensitivity

A 0.5 percent decrease in the discount rate would result in a $75.6 million higher fair-value measurement.
Conversely, a 0.5 percent increase in the discount rate would result in a $71.8 million lower fair-value
measurement.
A 0.5 percent decrease in the 5-year plus growth rate would result in a $118.4 million lower fair-value
measurement. Conversely, a 0.5 percent increase in the 5-year plus growth rate would result in a $134.8 million
higher fair-value measurement.
Other inputs used in the fair-value measurement of the Group’s investment property portfolio include the
average age of residents and the occupancy period.
A significant increase in the average age of entry of residents or the long-term nominal house-price inflation
rate would result in a significantly higher fair-value measurement. Conversely, a significant decrease in the
average age of entry of residents or the long-term nominal house-price inflation rate would result in a
significantly lower fair-value measurement.

Work in progress

Investment property includes investment property work in progress of $508.2 million (2019: $325.1 million),
which has been valued at cost. For work in progress cost represents fair value.
The CBRE valuation for the year ended 31 March 2019 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 $6 million over a remaining 6-month period. The estimates were based on
information available at the time. This remediation work has been completed and no costs have been included
in the year ended 31 March 2020.

11

Ryman Healthcare Limited
Selected notes to the consolidated financial statements
For the year ended 31 March 2020

6. Occupancy advances (non-interest bearing)
2020 2019
$000 $000

Gross occupancy advances (see below) 3,686,813 3,203,851
Less management fees and resident loans (439,636) (376,161)
Closing balance 3,247,177 2,827,690

Movement in gross occupancy advances
Opening balance 3,203,851 2,836,314
Plus net increases in occupancy advances:
• new retirement village units
• existing retirement village units.

386,673
109,566

290,701
102,600
Net foreign-currency exchange differences (4,276) (3,408)
Decrease in occupancy advance receivables (9,001) (22,356)
Closing balance 3,686,813 3,203,851

Gross occupancy advances are non-interest bearing.

7. Dividend
On 11 June 2020 a final dividend of 12.70 cents per share was declared and will be paid on 10 July 2020. The
record date for entitlements is 26 June 2020.

8. Share capital
Issued and paid-up capital consists of 500,000,000 fully paid ordinary shares (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 (2019: 500,000,000 shares).
Shares purchased on market under the leadership share scheme are treated as treasury stock until vesting to
the employee.

9. Commitments
The Group had commitments relating to construction contracts amounting to $200.9 million at 31 March
2020 (2019: $127.3 million).

10. Trade and other payables
Trade payables are typically paid within 30 days of the invoice date or on the 20th of the month following the
invoice date. Other payables at 31 March 2020 includes $102.4 million (2019: $68.1 million) for the purchase
of land.

12

Ryman Healthcare Limited
Selected notes to the consolidated financial statements
For the year ended 31 March 2020

11. Operating Segments
The Ryman Group operates in one industry, being the provision of integrated retirement villages for older
people in New Zealand and Australia. The service provision process for each of the villages is similar, and the
class of customer and methods of distribution and regulatory environment is consistent across all the villages.

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
Year ended 31 March 2020

Revenue 383,117 40,766 423,883

Underlying profit (non-GAAP) 199,877 42,154 242,031
plus deferred tax credit 86,142 7,421 93,563
plus unrealised fair-value movement (note 4) (44,092) (26,792) (70,884)
Profit for the year 241,927 22,783 264,710

Non-current assets 6,260,370 946,336 7,206,706

New Zealand
$000
Australia
$000
Group
$000
Year ended 31 March 2019

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 (note 4) 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

12. Subsequent events
The directors resolved to pay a final dividend of 12.70 cents per share or $63.5 million, with no imputation
credits attached, to be paid on 10 July 2020.

---

Section 1: Issuer information
Name of issuer Ryman Healthcare Limited
Financial product name/description Ordinary shares
NZX ticker code RYM
ISIN NZRYME0001S4
Type of distribution

Full Year X Quarterly
Half Year Special
DRP applies
Record date 26/06/2020
Ex-Date 25/06/2020
Payment date 10/07/2020
Total monies associated with the
distribution
$63,500,000
Source of distribution Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.12700000
Total cash distribution $0.12700000
Excluded amount N/A
Supplementary distribution amount $0.00000000
Section 3: Imputation credits and Resident Withholding Tax
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
$0.04191000
Section 4: 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 12 June 2020

---

11
Full year
result
RYMAN HEALTHCARE
31 March 2020

2
Full year highlights
Underlying profit* of $242 million, up 6.6%
Reported (IFRS) profit of $265 million, down
19%
Full year dividend increased to 24.2 cents,
in line with growth in underlying profit
Operating cashflows of $449.8 million, up 12%
Cash receipts of $1.13 billion, up 12%
Total assets of $7.68 billion, up 15%
Land bank of6,595 beds and units
* Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Refer to
slide 27 for a breakdown of underlying profit.
Update

3
18 years of underlying
profit growth
-
$50m
$100m
$150m
$200m
$250m
2002200320042005200620072008200920102011201220132014201520162017201820192020

44
4

5
5

88
5

99
9

1010
10

1111
11

1212

1313
13

1414
14

1515
15

1616
Highett
Melbourne
Northwood
Christchurch
Ringwood East
Melbourne

1717
Takapuna
Auckland

1818
Havelock North
Hobsonville
Highton
Aberfeldie
Ocean Grove
Highett
Riccarton
18

1919
Land bank of
6,595 beds
and units
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
20162017201820192020
ConsentedNot consented

2020
Mt Eliza
Mt Martha
Karori

21
William Sanders
Linda Jones
Burwood East
Lincoln Road
Havelock North
Highton
Aberfeldie
Hobsonville
Ocean Grove
Construction
activity
(March 2019)
Murray Halberg
Riccarton Park
Nellie Melba

22
William Sanders
Linda Jones
Burwood East
Lincoln Road
Havelock North
Highton
Aberfeldie
Hobsonville
Ocean Grove
Construction
activity
(March 2020)
Murray Halberg
Riccarton Park
Nellie Melba
Highett

2323
Linda Jones
Hamilton –January 2019

2424
Linda Jones
Hamilton –March 2020

2525
25

26
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)Victoria (LHS)
Forecasts

27
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 movement on investment properties because these items do not
reflect the trading performance of the company. Underlying profit determines the dividend payoutto shareholders.
Reported profit
Mar 20Mar 19
Underlying profit (non-GAAP)$242.0m$227.0m
Unrealised revaluations of investment properties-$70.9m+$102.4m
Deferred tax credit / expense+$93.6m-$3.4m
Reported net profit$264.7m$326.0m

28
Cash receipts from
residents
-
$200m
$400m
$600m
$800m
$1,000m
$1,200m
20102011201220132014201520162017201820192020

29
Investing cash flows
$711 million
$54m
$101m
$430m
$497m
$35m
$44m
$33m
$39m
$30m
-
$100m
$200m
$300m
$400m
$500m
$600m
$700m
$800m
20192020
Purchase of landNew villages
Care / systems / projectsVillage upgrades
Bed licences

30
Total assets
-
$1bn
$2bn
$3bn
$4bn
$5bn
$6bn
$7bn
$8bn
$9bn
Sep 15Mar 16Sep 16Mar 17Sep 17Mar 18Sep 18Mar 19Sep 19Mar 20
Bank debtTotal assets

31
Development margin
-
5%
10%
15%
20%
25%
30%
35%
201220132014201520162017201820192020
Target range

32
$856 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
2014201520162017201820192020
New ZealandVictoria

33
Value of contracts
not settled
Contracts not settled are unconditional occupation-right agreements which have been entered into by
residents but have not been settled as the resident has not yet occupied the unit.
$0m
$70m
$140m
$210m
$280m
$350m
20162017201820192020

34
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
-
$0.2m
$0.4m
$0.6m
$0.8m
$1.0m
$1.2m
$1.4m
MelbourneAuckland
Median house price - village areasRyman - 2 bed independentRyman - serviced

35
Long-term capital efficiency
$25 million raised at IPO in 1999
Invested $4.4 billion in portfolio
since 1999 with no fresh capital
Dividends of over $920 million
paid since float*
Self-funded growth
Strong balance sheet
* Includes final dividend of 12.7 cents per share that has been declared and is payable
on 10 July 2020.

3636
Questions
RYMAN HEALTHCARE
31 March 2020

37
Appendix 1:
Full year highlights
Underlying profit of $242 million, up 6.6%
Reported (IFRS) profit of $265 million, down 19%
Full year dividend increased to 24.2 cents, in line
with growth in underlying profit
Operating cash flows of $449.8 million, up 12%
Cash receipts of $1.13billion, up 12%
Total assets of $7.68 billion, up 15%
841units and beds built, up 11%
Record $711 million invested in the portfolio

38
Appendix 1:
Full year highlights
Significant investment in keeping residents and
staff safe from COVID-19
Continued strong demand for villages with
only 1.7% of resale stock unsold
98% occupancy at established care centres
Seven new villages approved by councils
totalling 2,029 beds and units
Another seven new village applications lodged
Land bank of 6,595 beds and units
Construction underway on 12 new villages

39
Appendix 2: Sale of occupation rights
Mar 20Mar 19
Existing units
Independent425378
Serviced498446
923824
New units
Independent426302
Serviced87112
513414
Total 1,4361,238

40
Appendix 3: Development
Mar 20Mar 19
Units and beds built
Retirement village units added545464
Plus units demolished (Malvina Major)*450
Aged care beds built251293
Total units and beds built841757
Total retirement village units
Independent5,2644,915
Serviced2,1591,963
7,4236,878
Total aged care beds3,9113,660
Total retirement village units and beds11,33410,538
* Units demolished at Malvina Major reflect redevelopment of Figaro block following Kaikoura earthquakes.

41
Appendix 4: Margins
Mar 20Mar 19
Reference$000s$000s
New sales
Realised fair value movement(Note 7)105,757 87,866
Sale of occupation rights(Key statistics)386,673 290,701
Gross development margin27%30%
Resales
Realised fair value movement(Note 7)109,565 102,600
Resale of occupation rights(Key statistics)483,190 417,358
Gross resales margin23%25%

42
Appendix 5: Cash management fees
Mar 20Mar 19
Reference$000s$000s
Accrued management fees – opening(Note 13)376,161 321,631
Less: Accrued management fees – closing(Note 13)(439,636)(376,161)
Movement in accrued management fees(63,475)(54,530)
Plus: DMF incomeIncome statement88,713 78,944
Plus: Revenue in advance movement(Note 22)6,456 5,890
Plus: GST / accommodation credit adjustmentNot disclosed(599)(105)
Plus: Movement in resident loanNot disclosed13,486 8,914
Cash management fees44,581 39,113

43
Appendix 6: Investment property summary
CBRE unit price inflation assumption
Discount rate
As at 31 March 2020Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland-1.5%0.2%2.1%3.0%3.5%12.9%
Rest of New Zealand-1.0%0.3%2.0%2.7%3.4%13.5%
Melbourne0.0%0.6%2.8%3.7%4.1%14.6%
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%
Melbourne0.7%2.6%3.6%4.0%3.9%14.1%

44
Appendix 7: Operating cash flows
Mar 20Mar 19
$000s$000s
Resident receipts333,476 302,046
Refundable accommodation deposits (net)41,120 3,807
Development sales305,540 300,351
Resales449,797 403,292
Total receipts from residents1,129,933 1,009,496
Interest received573 588
Payments to suppliers and employees(345,765)(306,234)
Payments to residents(315,903)(283,736)
Interest paid(19,047)(18,689)
Net operating cash per the cash flow statement449,791 401,425

45
Appendix 8: Available resales stock
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%
1.7%
-
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
Mar 20
* Uncontracted resales stock as a percentage of total retirement unit portfolio
Mar 20Sep 19Mar 19
Independent living units60 48 29
Serviced apartments67 63 40
Total resales stock127 111 69
Total retirement portfolio7,423 7,071 6,878
Uncontracted stock percentage *1.7%1.6%1.0%

46
Appendix 9:
Capital management
Gearing ($m)Mar 20Mar 19
Bank debt$1,707 $1,324
Net assets$2,301 $2,170
Total asset$7,677 $6,651
Bank debt/(bank debt + eq)42.6%37.9%
Bank debt/total assets22.2%19.9%
$366m
$816m
$229m
$76m
$45m
$175m
-
$200m
$400m
$600m
$800m
$1,000m
$1,200m
$1,400m
$1,600m
$1,800m
Mar 19Sep 19Mar 20
Use of debt
Systems and
other assets
Other village
capex
Village upgrades
New sale debtors
Development
WIP
Undeveloped
land

47
Appendix 10: Resident average
age and tenure (years)
Average ageMar 20Mar 19
Independent82.282.3
Serviced87.587.5
Care centre86.686.4
Average tenure - vacated unitsMar 20Mar 19
Independent5.75.5
Serviced3.02.6
75
77
79
81
83
85
87
89
91
93
Mar 13
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
Mar 20
IndependentServicedCare centre

48
Appendix 11:
Value of contracts
not booked
-
$40m
$80m
$120m
$160m
20162017201820192020
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.

49
Appendix 12:
Gross occupancy
advances
$0bn
$1bn
$2bn
$3bn
$4bn
20102011201220132014201520162017201820192020

50
Appendix 13:
Operating cash flow
-
$100m
$200m
$300m
$400m
$500m
2014201520162017201820192020

51
Appendix 14:
Average new
and resale prices
$0k
$200k
$400k
$600k
$800k
19981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020
New salesResales

52
Appendix 15: The ‘gold standard’ of care
4 year certification
81%
48%
RymanLarge operators
Source: Ministry of Health. Large operators reflects aged care
providers with 15 or more care centres. Data at 29 May 2020.

53
Appendix 16: Our build rate
0
100
200
300
400
500
600
700
800
900
1000
1999200020012002200320042005200620072008200920102011201220132014201520162017201820192020

54
Appendix 17:Eleven sites in Victoria
Ryman village
Under construction
Proposed village
Mount Eliza
Mount Martha
Ocean Grove
Highton
Aberfeldie
Nellie Melba
John Flynn
Weary Dunlop
Coburg
Ringwood East
Highett
54

55
Appendix 18: 13 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
Takapuna

56
Appendix 19: 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
Havelock NorthHawkes Bay----25 25
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 JonesHamilton40 -40 20 107 207
Malvina MajorWellington90 -30 39 123 282
Margaret StoddartChristchurch--46 20 20 86
Ngaio MarshChristchurch81 -30 40 119 270
Princess AlexandraNapier60 24 24 54 70 232
Rita AngusWellington49 -20 49 99 217
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)1,152 523 838 1,337 3,093 6,943

57
Appendix 19: Asset base
Auckland
VillageLocationHospitalDementiaResthomeServicedIndependentTotal
Bert SutcliffeBirkenhead40 40 40 81 225 426
Bruce McLarenHowick41 40 42 74 192 389
Edmund HillaryRemuera114 30 50 60 372 626
Evelyn PageOrewa60 37 20 66 248 431
Grace JoelSt Heliers77 -20 80 69 246
Lincoln RoadAuckland----30 30
Murray HalbergLynfield42 42 40 86 111 321
Logan CampbellGreenlane43 30 43 80 116 312
Possum BournePukekohe40 40 40 84 259 463
William SandersDevonport40 36 36 77 81 270
Total units & beds Auckland497 295 331 688 1,703 3,514
Total units & beds New Zealand1,649 818 1,169 2,025 4,796 10,457
Victoria
VillageLocationHospitalDementiaResthomeServicedIndependentTotal
Weary DunlopMelbourne30 20 32 48 200 330
John FlynnMelbourne----53 53
Nellie MelbaMelbourne80 39 74 86 215 494
Total units & beds Victoria110 59 106 134 468 877
New Zealand and Victoria
Total units & beds1,759 877 1,275 2,159 5,264 11,334
Total% of asset base
Care (hospital, dementia, resthome and serviced)6,070 53.6%
Independent5,264 46.4%

58
Appendix 20: Land bank (New Zealand)
Existing villages
Location
HospitalDementiaResthomeServicedIndependentTotal
Diana IsaacChristchurch----30 30
Grace JoelAuckland----96 96
Havelock NorthHawkes Bay35 35 20 76 122 288
Jean SandelNew Plymouth----59 59
Lincoln RoadAuckland42 37 42 77 156 354
Linda JonesHamilton-40 -73 141 254
Murray HalbergAuckland----230 230
William SandersAuckland----111 111
Total existing villages77 112 62 226 945 1,422
New sites
Location
Hospital Dementia Resthome Serviced Independent Total
HobsonvilleAuckland40 40 40 101 276 497
KaroriWellington20 20 20 84 178 322
KohimaramaAuckland20 40 20 78 125 283
Takapuna*Auckland15 15 15 31 67 143
NewtownWellington20 15 20 56 40 151
NorthwoodChristchurch30 30 30 60 156 306
Park Terrace / BishopsparkChristchurch36 40 40 79 130 325
Riccarton ParkChristchurch40 40 40 66 226 412
Total new sites221 240 225 555 1,198 2,439
Total land bank New Zealand 298 352 287 781 2,143 3,861
The land bank is subject to resource and building consent and various regulatory approvals.
* Site acquisition at Takapuna is subject to Overseas Investment Office approval.

59
Appendix 20: Land bank (Victoria)
Existing villagesLocation
Hospital Dementia Resthome Serviced Independent Total
Nellie MelbaMelbourne----113 113
John FlynnMelbourne38 38 38 96 121 331
Total existing villages38 38 38 96 234 444
New sites
Location
Hospital Dementia Resthome Serviced Independent Total
AberfeldieMelbourne25 25 24 27 64 165
CoburgMelbourne35 35 36 76 200 382
HightonVictoria40 20 40 60 80 240
HighettMelbourne30 30 20 37 94 211
Mount ElizaVictoria40 44 40 55 217 396
Mount MarthaVictoria40 40 36 37 70 223
Ocean GroveVictoria40 40 40 53 83 256
Ringwood EastMelbourne40 40 40 55 242 417
Total new sites290 274 276 400 1,050 2,290
Total land bank Victoria328 312 314 496 1,284 2,734
Total land bank New Zealand & Victoria626 664 601 1,277 3,427 6,595
The land bank is subject to resource and building consent and various regulatory approvals.

60
Disclaimer
This presentation
This presentation sets out information relating to Ryman Healthcare Limited’s full year
result for the period to 31 March 2020. 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
Annual Shareholders Meeting 2020
13 August 2020

Page 1 of 35
Start of Transcript
David Kerr: Kia ora koutou, good morning everyone and welcome to Ryman Healthcare's
Annual Shareholders Meeting. My name is David Kerr and I am the Chair of Ryman's
Board.
Firstly, I'd like to thank you all for your patience and flexibility. We have moved to a fully
online Annual Meeting following the announcement made by the New Zealand Government
on Wednesday evening. When we began planning this event we were in the middle of the
COVID-19 emergency and we were conscious that flexibility might be required to respond
to any escalation in the government threat level. With this in mind we had planned a
hybrid meeting, a combination of a physical and an online meeting, knowing that we may
need to adapt.
Given the identification of community cases in Auckland this week, and with the safety of
our residents, our staff, and you our shareholders and the wider New Zealand community
in mind, we took the decision to move to a fully online meeting.
So welcome wherever you are, as online participants through our virtual meeting platform
which has been our share registrar Link Market Services. As with a normal Annual Meeting
you will be able to ask questions and vote. I would encourage you to do so. I will provide
you with further instructions as we go through the meeting.
But if you encounter any issues please refer to the Virtual Annual Meeting Online Portal
Guide, or you can phone a helpline on 0800 200 220. You can send through your questions
at any time through the online portal, but I would encourage you to do so as early as
possible as that will allow us to answer the questions at the appropriate time of the
meeting.
Now the Agenda for the morning includes a review from me, then I will hand over to our
Chief Executive, Gordy MacLeod, to give you an overview from his point of view. We will
then move to formal business, which includes the resolutions before the meeting. Voting
on resolutions will be conducted by way of a poll.
At this stage I want to advise shareholders that the motion relating to Directors' fees has
been withdrawn. This decision was taken yesterday consequent on the changes in COVID-
19 alert levels here in New Zealand, which have clearly limited both the travel and the

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format of the Annual Meeting today. These alert level changes mean that the opportunity
for discussion and debate is reduced, and the Board's wish is that such an important
matter is openly debated.
Proxies received to date identify that the resolution would be passed. But the discussions
that take place are regarded by the Directors as important. Hence the decision.
Before we formally begin I would like to introduce you to my fellow Board members. I’ll
start with our Victoria-based Directors, who are all at home as part of the lockdown in
Melbourne.
First of all is Claire Higgins. Claire is a professional director and a consultant who also has
extensive board experience in Australia and New Zealand. Prior to becoming a professional
director, Claire worked in senior management roles with BHP and OneSteel. She is Chair of
the REI Superannuation Limited, and her background in the heavy industry has been
invaluable for her role as Chair of our Health and Safety Committee. You will hear from
Claire a little later.
Paula Jeffs. Paula is our newest Board recruit, she joined us last year. She is a Melbourne-
based human resources executive with experience across healthcare, finance and
government sectors an deep expertise in workplace planning, organisational capability, and
executive coaching. In the early stages of her working life Paula actually spent several
years as a carer in the aged and disability sector. Her insights into talent management and
HR have been fantastic. You will also hear from her a little later.
George Savvides lives in Melbourne and he has 20 years’ experience in the Australian
healthcare industry. Earlier this year he was made a Member of the Order of Australia for
his considerable contributions to community, charitable groups and business. George
served as the Managing Director of Medibank, Australia's largest health insurer, before
moving into governance.
He is Chairman of NextScience Limited and Deputy Chair of the Australian broadcaster,
SBS. George is a Fellow at the Australian Institute of Directors and he Chairs our Clinical
Governance Committee. George has made a huge contribution since joining us seven years
ago.

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If we now switch to Canada to our Director Geoff Cumming. Geoff was a Director of Ryman
when the Company joined the NZX some 21 years ago. He rejoined the Board in 2019
following the retirement of Kevin Hickman. Geoff's been a long-time supporter and
shareholder in the Company. An economist by trade, he has had more than 30 years’
experience as a chief executive, director and investor. He has served on more than 25
corporate boards in a range of companies and industries.
Now the New Zealand-based Directors who are here with me in Christchurch. Jo Appleyard.
Jo is a Partner with Chapman Tripp and is a skilled advocate and litigator specialising in
commercial employment and resource management law. Her skills are sought after by the
larger corporates nationally.
Jo's experience in relation to civil disputes is particularly wide and varied, acting on all
manner of commercial issues. Jo's been a member of the NZ Markets Disciplinary Tribunal
since 2011, and is a member of our Health and Safety, our Clinical Governance, and
Development and Construction Committees.
Warren Bell. Warren is an experienced public and private company director, and is the
Deputy Chair of the Board. He is currently Chairman of Hallenstein Glasson, who operate
both here in New Zealand as well as in Australia. He is also Chair of St George's Hospital,
the largest private hospital in the South Island. He is a director of a number of private
companies as well.
Anthony Leighs. Anthony joined our Board in 2018. He is the Managing Director of Leighs
Construction, which he founded in 1995. He has built that into a leading commercial
construction contracting company. Anthony is a former chair of the New Zealand
Registered Master Builders Association. He Chairs our Development and Construction
Committee and has added significant construction expertise to the Board.
Then there's the team, Gordy MacLeod our Chief Executive is here beside me. So too is
David Bennett, our Chief Financial Officer and Company Secretary.
So the Company Secretary has confirmed to me that the Notice of Meeting has been sent
to shareholders and other persons entitled to receive it. We have received no apologies at
this stage.

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The Company's Constitution prescribes a quorum of shareholders. Based on the
information from the Registrar I can confirm that we have a quorum present. Because
proxies have been appointed for the purposes of the meeting in respect of approximately
273 million shares, representing over 54% of the total number of shares. So I would like to
thank shareholders for their level of participation in today's meeting.
My fellow Directors and I intend to vote all the discretionary proxies we have received in
favour of the resolutions as set out in the Notice of Meeting. Our Annual Report for the
year ended 31 March, including the Auditor's Report, has been circulated to shareholders
and is taken as read.
So what a year we've had and what a challenge the whole world faces in the months and
years ahead. Before I get to the COVID-19 challenge, I want to quickly just run through
the last year's results.
The 2020 financial year seems a long time back now, but the main points were these. The
audited underlying profit was $242 million, up 6.6%, driven by strong demand at our new
villages. The reported, or IFRS, profit was down 19% to $265 million, which is of course
due to COVID-19 related property valuation changes.
The full year dividend was lifted to $0.242 per share, in line with the underlying profit,
which resulted in a dividend of $0.127 per share. Operating cash flows rose 12% to $449.8
million. The cash receipts were up 12% to $1.13 billion.
Our full year underlying profit growth came in below our medium-term target of 15%. This
15% annual growth in underlying profit has been our target for many years. As it means
we double profits every five years and you as shareholders should know that we continue
to believe that this remains an achievable aim.
At half year we said we expected to end the year with an underlying profit in the range of
$250 million to $265 million, which gave a range of between 10% and 17% higher than
the prior year. We believe at that time that this was entirely achievable. But as you know
COVID-19 got in the way, effectively freezing our sales and construction activity and
increasing our costs substantially.
I am pleased to say though that the Board has reviewed the trading which has been
satisfactory in the first quarter, and earnings are expected to be significantly weighted

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towards the end of the second half in line with the construction program, and in light of the
impact of COVID-19 in both territories during the first half.
We need to appreciate that Victoria, which is a significant part of our growth opportunity,
construction has reduced by 75% at three sites, and sales have been affected by the
lockdown. It's difficult to predict the impact this will have at this early stage of the
lockdown.
Yesterday we learned that new lockdown restrictions were required in New Zealand, with a
focus on Auckland. So we have restricted visits to all of our New Zealand village care
centres, and tighter Level 3 restrictions have been introduced in Auckland. It is too early to
say what the impact of these will be.
But COVID-19 is first and foremost a human tragedy which reaches across the globe. It's
causing extraordinary disruption and distress to many countries and their citizens. It is a
once in 100-year challenge. It is highly infectious and difficult to detect, and it is extremely
hard on older people.
I have been a practising physician for more than 40 years and I have never seen anything
like this. But it's fascinating how fast medicine is adapting. Each day means progress. The
reality is that COVID-19 is here to stay. We know much more about it with every passing
day, and we know a lot more than we did eight months ago.
The latest restrictions are a setback, but not unexpected. In short, it is an enormous
healthcare challenge and we are doing everything we can to keep it at bay. Thanks to the
extraordinary efforts of our 6000 staff we have been successful to date. I cannot thank
them enough. Their care, their professionalism, their can-do attitude, positivity and sheer
dedication to the people they care for has been inspirational.
They have been led by a superb team. So, thanks to Gordy, to Cheyne, to David, Mary-
Anne, Nicole, Jeremy, Tom, for all your leadership of our people.
I wanted also to give a special thank you to our teams in Victoria and New Zealand. We
are conscious they are still in the thick of it. They need to know we value them highly and
how happy we are that they are on our Ryman Team. Our Company is in reality a human
organisation made up of people who deliver value for all the stakeholders.

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COVID-19 has stress-tested our clinical systems and in particular, our infection control
plans. They have been robust. We had to learn a whole lot of new things and work in a
way we never have before.
The sheer logistics of implementing a lockdown, of gathering the right equipment to keep
our residents and staff safe, of adapting systems and communicating with everyone in the
Ryman bubble, have been enormous.
As we all know, Victoria has suffered a massive set back in its fight against COVID. We put
our villages into a second lockdown in Victoria in early July and our team has done a
fantastic job keeping everyone safe over there in very difficult circumstances over a
number of weeks now. We hope that the latest lockdowns in New Zealand will be short
lived and we fully support, however, a cautious approach to try and eliminate the virus as
quickly as possible.
The graph here shows how COVID-19 cases have been steadily increasing in Victoria. The
red bar shows the time at which the Ryman team decided to institute a second full
lockdown of the villages.
It is clear we’ve acted early but not precipitately. Currently, there are over 100 care
facilities that are affected by COVID-19 in Melbourne. In addition, there are in excess of
1500 residents and carers who have contracted the virus in the city.
One can just imagine the complexity of staffing the care facilities with staff numbers
severely depleted, consequent on either them being infected by the virus or having been
contacts of people with the virus and so are being stood down. Ryman executives saw this
risk in advance and undertook additional recruitment so we were better able to provide
cover for our full rosters.
Furthermore, the Company has guaranteed the staff remuneration if they are off work for
any reason or if they have ceased working at another facility to meet our needs for our
staff to be working at only our villages.
We have also had a number of staff who faced possible exposure to COVID at home
because of their living arrangements, who have moved into spare apartments at our
villages to reduce the risk to residents.

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This next picture shows staff who are wearing masks and face shields. I show this because
we all need to be aware of how challenging it is to wear this sort of PPE for a whole shift.
Yes, they are valuable in terms of protecting our staff and residents but it’s a big ask of
our care-giving staff to wear this PPE and we’re grateful for the way in which they’ve risen
to this additional challenge.
We recently had a Victorian State Health Service-led Pandemic Preparedness Audit
undertaken at our Nellie Melba village and the auditors were impressed at the initiatives
that we had in place.
The latest lockdown will have an impact on construction and sales activity but it’s too early
to say what the effect on this year’s build volume will be. One of the targets that the
Company has had, has been to have five villages open in Victoria by the end of December
2020, although there is a risk of this being slightly delayed because of COVID-19. It is a
big challenge now and it will depend on how quickly COVID is brought under control in the
Victorian state.
What COVID-19 has done is to reinforce the attraction of living in our villages where
residents enjoy security, companionship and a strong sense of community. They regard
our villages as safe havens where they find it reassuring to know there is the best of care
on hand if they need it.
What was really pleasing for us as a company was that our net promoter scores for
independent residents and our staff, rose to record levels during the COVID-19 era. We
have tried our absolute best to look after everyone and they have appreciated it.
If you think about it, the three factors that deliver a raised net promoter score are care,
which is really an ability to empathise. Effort, which is how easy or how hard it is to do
business with you and resolution. How you do when things go wrong. Our staff have
clearly excelled in all of these areas.
Customer satisfaction and employee satisfaction are of course two sides of the same coin.
The investment we have made in training and developing our staff and making them feel
valued stood us in good stead.
We treasured our people long before the pandemic with constant efforts to train, reward
and remunerate in the upper quartile but, in addition, the COVID lockdown saw additional

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remuneration, adequate supplies of PPE as needed, personal wellbeing packages and high
quality communication.
There is some research suggesting that increasing employee engagement will result in a
20% increase in productivity but I reckon our team delivered much more than this, for
which we are very grateful.
The challenge we now have is guarding against fatigue so we are working on our people
taking leave where possible and have further enhanced our wellbeing programs.
Always the challenge with bigger organisations, is to retain both the stability that comes
with being larger as well as the agility that a crisis demands. So decisions were taken early
and without hesitation. Where it was felt that it would protect our staff and residents, it
was implemented the same day. The Board was entirely supportive of all the decisions and
all the expenditure that was consequent upon those decisions.
In a nutshell, we did it if it was the right thing to do and if it was in tune with the North
Star of the Company, this being to ensure that everything was good enough for mum or
dad.
ESG is important to us as a Board. The environment and governance gets significant
attention so that now, attention in these areas is almost a given. The S of ESG of course,
relates to social and the importance of social responsibility.
This pandemic has brought the S to the fore where attention to staff safety, staff
remuneration, staff conditions, relationships within the community and between the village
and the community, are all critical. The attention that has been shown to the S in this
company will go directly to our bottom line, in my opinion as the support from our staff
has been outstanding.
I have read that companies will generally excel at one of three areas. The first possible
area is operational excellence, as with FedEx or a bank where the best price or ease to do
business with, matters. The second is product leadership, as with Apple and the ability to
innovate and deliver the best possible product. The third possibility is customer intimacy
where there is a focus on developing deep, long-lasting customer relationship building
examples.

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So examples of that particular realm are evident often with companies like Marriott but I’d
like to think Ryman Healthcare would be recognised for its excellence in this area also.
Being the most trusted brand in New Zealand for the sixth time is evidence to support this.
It is now my pleasure to hand over to Gordy to give his commentary.
Gordon MacLeod: Thanks very much, David and hi, everybody. Morena. This morning, I’d
like to give you a quick overview of the FY20 year and what we have got coming up. My
first job though, is to reiterate David’s thanks to the team.
I am absolutely humbled by what our teams have achieved during the COVID challenge.
We have been through an extraordinary eight months and our team in Victoria and more
recently, New Zealand, are now still very much in the thick of it.
We have had an autonomous management team in place in Victoria for some time now
and it’s really paid off. In the early years, we managed our operations from afar but now
we have 750 residents and 559 staff so there is now substantial operation over there and I
wouldn’t be surprised if they’re not missing so many people flying over from Christchurch
each week, either.
So if we flick onto the team, the team includes Victorian operations manager, Paul Sutton.
Sales and community relations manager, Debra Richardson. Construction manager, Marty
Osborn and development manager, David Laing. They are a tight team and they are doing
an amazing job.
The aged care industry is in the spotlight over there. The scrutiny is intense from every
corner and I cannot thank everyone enough. I cannot thank our leadership and all of our
people on the ground enough. It has crystallised for me, more than ever how important
our mission at Ryman is.
Our villages are safe havens. They are places where people who have worked hard and
deserve a peaceful and comfortable retirement can move to and relax, have fun, enjoy the
company of others and sit tight, knowing they are in our good hands.
Our residents have told us that the COVID crisis made what we do more relevant than ever
for them. They felt part of a community of care where everyone takes collective
responsibility for the wellbeing and safety of the whole.

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The feedback we have had from residents, staff and families makes us more determined
than ever to pursue our long-term mission of bringing as many Ryman communities as we
can to places that need them.
As you will be aware, we have been constantly investing on improving the experience of
living in a Ryman village for our residents. Developing our teams and our leaders and
improving clinical outcomes.
Our LEAP training program, advanced leadership program, together with coaching of our
senior people, have all contributed to lifting the capability of our leaders and we have seen
a massive improvement in our staff survey results this year. I’ve got no doubt that this
investment in quality and developing our leaders has been a big factor in our ability to
cope with COVID.
So the proof of the pudding, I guess, is what those survey results actually showed and I
just want to start with independent residents. If we just stop here for a moment.
We have had really high scores over the last few years. We don’t disclose what they are
but I can tell you that they are extremely high. So we wondered how residents would fare
coming out of COVID, having been in such a restricted environment.
You can see that residents actually were happier than ever with their decision to choose to
live in a Ryman village and what our staff achieved for them. So that was great to see that
feedback.
We also did a lot of work thinking about staff engagement because it’s really difficult
working in this sort of environment. We undertook a lot of measures, ranging - oh, it’s just
too much detail to go into really but we did a range of measures to help with people’s
wellbeing and pay and of course personal protection equipment. So here are the results.
You can see that our net promoter score from previous years lifted really significantly after
the pandemic, which is a great achievement from our leaders on the ground but we are not
complacent.
For residents, the focus will continue to be on improving their experience of living in a
Ryman village, which - with additional services through our Delight program and food is a
renewed area of focus. Of course, I have volunteered my services as a taste tester,
although my friends and colleagues at work don’t think that that will be very helpful.

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Our ambition is to build as many Ryman communities as we can, wherever they are
needed to meet the enormous demand ahead for retirement living and aged care. So it
makes sense that we will need more working capital debt to build and our balance sheet
has grown to support our ambitions.
You can see that in that chart as total assets have increased really significantly over the
last five, 10 years and you can see there how the bank debt has also grown but that’s in
line with the fact that we are growing in Melbourne and have been - and are lifting our
build rate and land bank.
So building out the portfolio is capital intensive and we are in the midst of our largest ever
investment and growth. We have very supportive banks and we need to carry working
capital debt because we are in growth mode. That’s the nub of it.
We are not blasé about it and we spend very carefully. We expect debt to peak a little
earlier than we thought in 2021 because of the impact of Melbourne - of COVID in
Melbourne and New Zealand but in terms of current trading, what I’ve been really pleased
about is with the sales results between April and July this year.
So new sales and resales combined in New Zealand have actually tracked higher than the
same period this time last year. Given that we lost the first six weeks of this period to
COVID, I am really happy with the early progress that we’re making.
Aged care demand is as strong as ever with our established care centres running at 97%
occupancy. We have a significant amount of cash coming in as well over the next 12
months and already, there is $327 million of unconditional contracts in place which will
settle as we complete new stages.
The good news is that it’s just the current pre-sales so there will be more than that. While
building requires capital, the villages that we build bring in capital sums as soon as the
first resident moves in, and this then initiates a tale of growing recurring cashflows.
Given the growth in our portfolio that we’ve seen over the past five years, we expect to
see a sustained increase in resal e gains, deferred management fees and also fresh care
earning streams develop as we build new care beds. Our aim remains to double underlying
profits every five years, which represents approximately 15% growth per year, and we

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were confident of achieving this in FY20, had it not been for the COVID effect which started
to kick in during March, our biggest selling month.
The growth in a build rate coming up reflects our ongoing ambition to grow at 15% per
annum over the medium term. Looking ahead, Victoria and New Zealand and the rest of
the world, at some point, will get COVID under control. We have a land bank of 6595 beds
and units across New Zealand and Victoria, and of those, 3900 are consented. That’s 1000
more than in FY19. We have a further seven sites under consent right now which
represents another 2235 units and beds that are currently being processed by councils.
Here are the seven sites, you can see them on screen. There’s some really beautiful
designs there and lovely locations. Look, it may take longer to get approval in some places
than others, and that’s why we’ve got plenty of irons in the fire more than ever before. So
our pipeline is in really good shape. It’s a real credit to the development team and the
whole team actually. It means we’re well placed for growth over the next few years.
At this moment we’re building on 12 sites right now, and we’re not planning on starting
any other new sites this year, even though we have options to do so, particularly at
Highett, where we’ve just got new endorsed plans. These 12 sites represent a good mix of
high, medium and low density. To put this activity into context, in 2017 we only had six
sites on the go.
Now if we just stop there for a sec, if we go back to March ’19, that’s the slide that’s there,
that list shows the 12 sites that we now have on the go. So you can see that there were a
number that needed to work right through some key processes to move into the
construction phase, and this is where we’re at now. So we were - that’s where we’re at
now, and so it’s just Highett where we have the full ability to get going if we want to, but I
think 12 sites for now is plenty on the go.
What’s the size of the prize for these 12 sites? Once they are fully developed, they will be
worth $2.6 billion in capital proceeds, and they will provide homes and care for another
4700 Ryman residents. They will generate $210 million in recurring income from sales and
deferred management fees and will also generate fresh care earnings as new care beds are
built, and of course, that’s on top of the development margins which will occur.
So I just wanted to now, take you on a quick five minute whistle-stop tour of our sites
around New Zealand and Australia. Gosh there’s a lot on there. We’ve been busy in

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Auckland where we have construction continuing at Murray Halberg in Lynfield, William
Sanders in Devonport, Miriam Corban on Lincoln Road in West Auckland.
The great news is, we just moved our first residents in there yesterday, and the feedback
from our new residents is that they love their new homes, and the photos and speaking
with the construction and sales team yesterday, went really well - and of course, Scott
Road in Hobsonville. We are all set to hold our grand opening at Murray Halberg as soon as
COVID allows, and we are expecting to open the care centre at William Sanders later in the
year.
Our Linda Jones Village in Hamilton is also going great guns, and the village is selling well.
We will open its care centre in the next few months. Gary Cox, or Coxy as we call him, and
the team there won our Ryman Construction Team of the Year Award, which they were
delighted about a couple of weeks ago. We had to do those awards virtually as well, so
we’re learning on our feet all the time.
And so to Victoria. We had to significantly reduce our building activity at Burwood East,
Aberfeldie, and Nellie Melba sites last week, in line with the lastest COVID-19 lockdown
rules over there for metropolitan Melbourne. We have been able to continue to build at our
Highton and Ocean Grove sites because they are in regional Victoria, and they are in Level
3 restrictions, so that means we can keep on going.
All going well, we are actually planning to welcome our first Highton residents - I think
Marty said to me - next Friday. Hopefully that’s not wrong, but very soon, and the first
Ocean Grove townhouses are targeted for move-ins in December this year. So I can tell
you, just stopping there for a little bit. When I spoke to Marty last night, I said, would you
describe our goal about getting five villages open by December 2020 as hoping or
planning? He said, no we’re planning for it. So they are really going for it over there and
I’m proud of them.
In our home town in Christchurch, we’re underway at Riccarton Park. Not only does it have
grandstand views of Riccarton Racecourse, it also has vistas towards the Southern Alps.
We’re working through the consenting process with Christchurch City Council for our new
Bishopspark/Park Terrace site. There is a lot of interest for this village right on Hagley Park
and there’s been some strong interest, not least from certain people, maybe to my right. I

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don’t know. Our Northwood Village plans are also progressing and it’s going to be another
great village.
In Wellington, we have completed demolition of the buildings destined to go at our Karori
Teachers' College site. We are preserving three significant historic buildings, and we are
working through the consenting process with Wellington City Council. The one thing we
know is that the local preschool children across the road have thoroughly enjoyed the
demolition, and I think our demolition company even might have left them with a couple of
diggers, which they are loving.
In Victoria we are working through the planning process for our Mt Eliza, Mt Martha and
Ringwood villages. We have just received endorsed plans for our Highett site, which is
another great achievement for the Victorian team; amazing what you can do just working
from home, isn't it?
Our plans for Mt Eliza have been knocked back by the local council, despite a lot of
compromise and consultation, but that was what we expected, to have to go to VCAT. I'll
tell you why we are, and that is because we have over 300 people who have lived in that
region their whole life, and they would absolutely love us to build a village there. It's got
really strong demand, it's a beautiful site, and we are very committed to making a success
not just for us and our residents, but for the community.
As you can see, our growth and ambitions haven't changed. We think long-term and the
goal is to grow to meet the demand ahead. COVID has made what we do more important
than ever. We've been through a pretty challenging year, I would say. As David said, the
good news is that we know a lot more about COVID each day.
Finally, I'd like to thank you, our shareholders, for your ongoing support. It means a lot to
me and the team.
Back to you, David.
David Kerr: Thank you, Gordy. Look, we'll now turn to any questions on the financial
statements or the management of the Company. Dave King, our Corporate Affairs
Manager, will relay the questions that come through online. We'll do our best to answer all
your questions, and where we have a number of questions on the same topic we may

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consolidate the response. Please feel free to continue to enter any questions through the
portal.
For questions relating to the actual resolutions, we'll respond to these as we deal with each
of the resolutions in turn.
Dave, questions.
David King: First question; how many employees will Ryman employ at 31 August, 2020? I
am concerned that your drive is becoming more about extension of building more villages,
rather than concentrating on the care of the inmates. Bigger is not always best.
David Kerr: What a good question. What a good question. Maybe Gordy and I will tag-
team on this. Firstly, I'd like to identify that we'd prefer our residents to be called residents
rather than inmates. That aside, at August, I'm anticipating the staffing numbers to be
around 6000.
Bigger is not always best is absolutely correct. What makes us bigger is our determination
to meet the needs of citizens who want to have the Ryman experience. Our drive to get
bigger is really to reflect the demand that exists for what we have to offer in a village. It's
not more about big villages, it's about providing more care. That's what I see as the driver.
Gordon MacLeod: Yes.
David Kerr: Do you want to add to that, Gordy?
Gordon MacLeod: I really agree with that, David. I'll give you an example of when we have
a construction stage delay, because unfortunately they do happen. When that happens,
the first thing I think about is how incredibly inconvenient that's going to be for people.
That's when you really see how much it affects people's lives.
We have hundreds and thousands of people who want to come and live with us each year.
When I spend time with people, just quietly one-on-one, it's been a really big decision for
them. They are inevitably just delighted that they have found the place that's really going
to be working great for them for the rest of their days.
When I see our build program not going as fast as it could, I don't look at it and go, what
about the money coming through? I more think about the fact we don't want to let
residents down. When we do a grand opening at a new village, one of the most beautiful

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things is that people come up to you all night and they just tell you what a change it's
made to their life, moving into a village, and how great it's been. I kind of just see our
build program and what we do build-wise as creating that home for people.
Our focus on care I think has really never been more to the fore over the last eight
months, where people and their families have trusted us with their lives. We've done
everything we can to make sure we repay that faith.
David Kerr: Thanks, Dave.
David King: Another question, have you considered having a dividend reinvestment plan?
David Kerr: Another good question. In fact, that has been a live discussion at the Board
table in the last couple of Board meetings. The challenge we have is that a good number of
our shareholders enjoy the dividend streams that they now achieve, and it steadily has
been growing.
On the other hand, there are a number of investors who would prefer that we reinvested in
the business. That has driven the conversation around a dividend reinvestment plan.
We haven't settled on a decision around that yet, but I can maybe best answer it by saying
it is a live discussion at present.
David King: Thank you. Question from Kim Santer. With the border being closed, what
issues, if any, are arising with filling staff vacancies at your care centres?
David Kerr: Do you want to go first?
Gordon MacLeod: Hello, Kim. Sorry, you couldn't - I think you've been to every AGM for
many years, so it must be very frustrating being online. So, hi. I guess you're in Napier,
are you? Staff-wise, I think - so we review staffing really closely all the time. On Tuesday
when I looked at it, we had - it was either four or five permanent registered nurse
vacancies in the whole Group, and we employ about 527 registered nurses. On the nursing
front, no issues with employment. Then generally on the caregiver front and stuff,
obviously it's always hard to find good people, but we are able to find shifts and fill shifts
really well.
One of the things your question does point to though, is that longer-term immigration
strategy is obviously really important, as is workforce planning with people within New

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Zealand and also within Australia. It's never one or the other, you work on both fronts.
We've got a good relationship with government on both sides of the Tasman, and both
understand how critical the overseas workforce play in caring for older people, together
with wanting to see people trained locally as well, of course.
David King: A question from Graeme Geddes. Bearing in mind the negative effect COVID
has had on trading results, and also the widespread example set by other boards,
executive teams, civil servants and politicians, why is this Board not demonstrating the
same self-awareness and empathy by taking a 20% reduction in fees for at least the
current financial year?
David Kerr: Yes, thanks for the question, Graham. Firstly, I'd observe that during this
COVID crisis, we have had no staff let go. All staff have continued to be employed. We
have increased remuneration for all our staff across all village caregiving staff and
administrative staff. The senior executive team have not taken an increase in
remuneration, and of course the directors have not sustained any increase in remuneration
for in excess of two years. That of course was one of the considerations that drove the
decision to withdraw the motion.
I would observe, though that the directors have been exemplary in their preparedness to
jump in and help over the last six months. There's been innumerable Board meetings
called at short notice, and people have freed themselves up and contributed actively, read
the documents, given good and deep thought, to make the right decisions. There has been
an increase in workload, there has been an acknowledgement that in fact there's been no
staff lost, and staff have actually experienced an increase in remuneration. It's different
from many other companies.
David King: Thank you. Another one from Kim Santer. Interest bearing debt has grown
exponentially in the last five years or so. Given the very uncertain times ahead, should the
Company slow down new development on a temporary basis to the point where it is largely
or fully funded from net operating cashflows?
Gordon MacLeod: Yes, great question, Kim. We monitor capital recycling really closely. One
of the measures there you can see is how our total assets have grown over time
significantly. Our debt has grown I guess in line with that, and so have our underlying

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profits. Our operating cashflows were up 12% to 31 March 2020, and our receipts from
residents were also up 12% as well, to $1.1 billion I think it was.
I guess Kim, what you're wondering is the 12 sites we've got on the go, we don't commit
to stages unless we can see good demand. The thing that I would worry about if I was you
as a shareholder is, would we just box on and build a village out if sales weren't keeping
up?
One of the things that me and Dave do, and the Board look at as well, is we keep a very
close eye on making sure we don't overbuild. It's key for me to know that we've got $327
million of unconditional new sale contracts currently today that underpins the stages of
independent apartments and townhouses and so on that we recommitted to after COVID.
Of course, we've got more sales to come. Even yesterday when we were going into
lockdown 3 here in Auckland, which is a big market for us, we still did 12 sales amazingly.
Yes, so we watch it really closely, Kim. Really closely.
David King: A question from Helen and Edwin Hignett. Regarding reported outbreak of
COVID-19 cases in Victoria, what effect is it having on our operations in that area? How
many cases of COVID-19 has Ryman experienced in Victoria?
Gordon MacLeod: We have had no COVID-19 cases of our active staff or current residents.
Our villages have been COVID-free from a staff and resident point of view, which is an
incredible achievement by the team.
We have had the occasional contractor who has had COVID, and they have been isolated
very quickly and the relevant testing done just to make sure there's no issues here, which
there have not been.
It's a very - we do extremely rigid checks for everyone entering in the village gates,
ranging from scent checks because people can lose their sense of smell, through to
temperature declarations, knowing where people live, who they live with, whether they've
had exposure to quarantine departures. We try and develop a very thorough
understanding of who's coming into our village. Certainly, visitors can't come in now, and
we're very, very careful with our staff checks.
Then in addition to that, we have significant layers of personal protection equipment, PPE,
which is just religiously worn, and we do quite significant checks to make sure that is done

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all the time. Look, it was really good, the audit that David referred to earlier where the
health authorities came out a week ago to check on our procedures, and they thought they
were excellent.
Probably one of the biggest practical effects would be managing staff stand-downs for
illness. I think that's probably one of the most difficult operational things to do. Right now,
in Australia there are 57 staff off who are off on a precautionary basis because they are
either not feeling well, or they have a second-removed association with someone who is
COVID-positive, or something like that.
We just stand people down immediately, on pay, for 14 days, and we make sure they are
tested. Across two villages, that's a lot of people to reorganise, 57 people. You know what,
across the whole Group, since February this year when we started doing this, or the start
of February or late January, we’ve had 1000 staff members who have taken COVID
precautionary leave. It’s extraordinary and I really take my hat off to the Operations team
for managing what is usually a fairly stable roster to manage.
David Kerr: And it’s also a great credit to the staff because they’ve been absolutely honest
about their environment that they live in and the risks that they have been exposed to, so
it’s - everybody’s made a fabulous effort, which is why we are at this moment, COVID free.
But one has to be constantly aware that there is - and I hate to use the word - but there is
an element of luck, because something can go through. It’s the Swiss cheese scenario. But
I just couldn’t thank our staff enough for their attention they’ve paid to being honest about
this.
Gordon MacLeod: There’s one other thing I think we should say. That is it’s very serious
business COVID but our residents are also having fun. So we’re doing things like Zumba on
the balconies outside of social distancing. We’re delivering happy hour in a bag. I think at
last count we’ve delivered 80,000 happy hours in a bag. We do fantastic digital activities
for people to do in their own homes and that sort of thing.
We do welfare check-ins for people to make sure they’re okay or just someone to chat to.
So there’s a ton of things going on which means that life in the village just isn’t sitting in
your room. There’s lots of ways we’re supporting people with activities. Even Zoom,
there’s been - there must be about 10,000 Zoom calls we’ve made now across the Group
since COVID started, just as a way to keep people in touch.

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So we’re doing everything we can in difficult circumstances for people to have fun, to feel
connected and for us to try and look after their every need.
David Kerr: And I think that’s reflected in the net promoter scores that you identified in the
presentation Gordy. Yes, thanks David.
David King: Okay, from Kuan Ying Cheah, with the Company extended its business
interests in Australia, does it intend to seek a listing on the ASX?
Gordon MacLeod: No.
David Kerr: Not at this time. We have contemplated dual listing but we are not - that’s not
an active discussion at this moment.
David King: Thanks. Question from Neil Anderson: Knowing how many of Ryman’s skilled
nursing and caregivers are migrants, how is Ryman now managing expansion plans with
being able to recruit sufficient skilled workers with the COVID pandemic and the
restrictions that it has brought? With that in mind, what is Ryman doing about accessing
the Government’s recently announced apprenticeship and training packages to recruit
more New Zealanders from schools and universities?
Gordon MacLeod: So we’ve been doing a lot of work with the Nurse Entry to Practice
program, which is called NETP. We are doing work for building apprentices. We’ve actually
got an apprentice trainer who works in the office here and travels around doing some great
training stuff, which he I think showed me how to make something square the other day.
We’ve got apprenticeship programs which we have implemented for kitchens and that sort
of thing and we are working with schools and polytechs and obviously job shows to make
sure that for people in New Zealand that they understand the tremendous career
opportunity that Ryman Healthcare represents.
We’ve actually started a Ryman Academy so that people can see the training opportunities
and the range of scholarships, apprenticeships and just ability to work with us has been, I
think put forward really well by the team. And so we’re seeing really good applications for
jobs and that sort of stuff.
Of course, we are conscious of the fact that there are immigrants within New Zealand

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currently who are working for us who will be worried about their long-term future under
COVID for all sorts of reasons. And my commitment to you is that we make sure that we
have very strong dialogue with Government, with the previous immigration minister and
who the next one will be.
And we want to make sure that people are treated fairly and their significant contribution
to New Zealand’s healthcare over many years and during this time, is recognised by the
country. So that will be one of our key priorities after the election on [23 ] September.
David King: This is what a shareholder has described as a ‘non-question’ but they asked
for it to be read out. The shareholder is Andrew Ott. Just wanted to say I have heard very
complimentary reports from a number of people who are living at Ryman Villages of the
care they have received through the New Zealand lockdown.
He'd like to express his appreciation and thanks to all of Ryman’s staff, management and
Board for their efforts and ongoing work. Thank you very much.
David Kerr: Thank you Andrew and look, I see some of the incoming messages to Gordy
and the team and it makes me immensely humble to think that people are so grateful and
that I think we’re very fortunate to be in a position to make that sort of situation possible,
where they do feel safe and do feel cared.
Gordon MacLeod: Thanks Andrew.
David King: A question from Kirin Bhalla. What is the rationale of having dementia and
critical care beds within Ryman villages? I ask this as it is a regulated rate of recovery at
least in Victoria and that would cause the return to you to be crimped.
Gordon MacLeod: I don’t really understand that question Dave. You might have to read
that out one more time.
David King: What is the rationale of having dementia and critical beds within Ryman
villages? I ask this as it is a regulated rate of recovery, at least in Victoria and would that
cause the return to be crimped?
David Kerr: I think what the question is asking is that there’s control over the fees
associated with dementia care provision.

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David Kerr: But what we’re much more focused on is what do the residents need? And so
we would - to actually move somebody out of our village who’d been maybe in an
independent apartment and then rest home care and then to say no, you have dementia
and you need to go somewhere else, it just is unconscionable to us.
So yes, the remuneration associated with dementia care and care generally is not ideal but
that’s part of the promise that we give people.
Gordon MacLeod: Yes and look this is why we report underlying profit, just one underlying
profit for the Group. That’s because we see what we do at a village as providing a
continuum of care for our residents at one village. And that means independent living,
assisted living, rest home, hospital, dementia level care or in Australia, high care, low care
dementia. So they are the names for them right now.
Now, inevitably at any point in time, different points in time, government funding changes
or some sort of short term measure but for dementia care what we think about is when
you go and visit a dementia unit and you see an independent resident that you know well
visiting his wife say, or a lady visiting her husband in dementia, the ability for them to visit
their loved onsite, without having to drive and spend as much time as they like with them
is a huge benefit for people.
And that’s part of our promise of having a continuum of care. So if that particular part of
the business in dementia care had some financial constraints on capping out earnings,
then we really need to look at the whole picture, which is what we do. So we are okay with
that.
David Kerr: I wonder how hard is it for us to actually go to George as Chairman of our
Clinical Governance Committee? Is that a complicated thing for us to do to have George
pass a comment?
George Savvides: Yes, can you hear me David?
David Kerr: Yes, thank you.
George Savvides: Fantastic. Yes, so what is unique about Ryman, especially when you
compare the Australian landscape is that continuum of care and the ability to be able to
engage a couple coming into say independent living in one of our villages. And then to

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follow their journey. And one part of that couple might have a different kind of need evolve
over time.
And as you get older, the ability to make critical decisions, sophisticated and complex
decisions around healthcare become really challenging. And what I really appreciate about
the Ryman model, which from an Australian perspective is still very unique is the ability to
offer that continuum of care in whatever complexity it presents, other than obviously acute
hospital admission, is really unique.
And it’s one of the things that I think gives people a peace of mind. We talk about a safe
haven in a time of pandemic but also that journey of life in our older years. Ryman
provides that safe haven of context to be supportive to families.
We continue to do this in an environment where it is deeply complex. For an organisation
to provide that kind of continuum of care right up into high quality dementia care, on a
single campus is rare and unique. And the Australian market will continue to embrace it
because nobody dares to try to offer that kind of continuum in any great numbers. So
that’s what makes it very special.
David Kerr: Thanks George and isn’t that a tribute to the technology team or the guys who
make this all happen. Dave, back to you for another question.
David King: A question from...
Gordon MacLeod: It’s amazing isn’t it?
David Kerr: Isn’t it.
David King: A question from Jessica Buddendijk: As you have confirmed, all staff have and
are working very hard to keep residents safe under very challenging circumstances and
risking their own health. How do you respond to negative stories dragging up old cases
and once again putting the sector in a bad light? This does not help staff’s morale.
David Kerr: Yes, so look there are always going to be situations where expectations are
not met and I guess that maybe the most live example of that has been with the Royal
Commission in Australia. And aged care quality standards have not been ideal in all
situations over there and that’s been reflective in some instances of inadequate resourcing.

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But yes, what we’ve tried to do is to always set ourselves a high standard and strive to
achieve that high standard. So we hope that the quality that we offer will meet people’s
expectations.
There will be - because there are people involved there will always be moments when
people are disappointed, and we have learnt that the best situation then is to try and
apologise and work out how to do it better. And so our general approach is that we aim for
100% but 99.9% is pretty good.
Gordon MacLeod: And we’re getting really good feedback on recruitment in Australia where
there’s been a lot of pressure. So like Joanne Wang, who’s our Clinical Lead in Victoria, she
was saying to me the other day that she’s been interviewing quite a few people to fill up
the ranks of the two villages there.
And people are coming to us because they’ve heard about how we have treated our staff in
terms of care parcels, wellbeing initiatives, making sure that people have got all the right
PPE, making sure that the rosters are full and that there’s plenty of staff coverage and all
those sort of things that make your work experience in this sort of environment so crucial.
And so for us, that’s what’s really important is to create a great impression for people so
they want to come and work for us and can see that we’re going to look after them really
well as staff members. And then in turn, that means that the resident gets a better
outcome too.
David Kerr: It’s interesting that the Royal Commission’s early recommendations around
staffing levels, we meet or exceed those already. So I think that the resourcing of aged
care in Australia has not really enabled the quality of care that people now expect.
David King: Another question from [Kwan Ying Chi]. Is the Company not considering
taking advantage of the current low interest rates and REO by refinancing and issuing low
coupon medium to long term bonds? This may help the Company to reduce significantly its
financing costs.
Gordon MacLeod: Look, we’re always looking at different options for the diversity of our
capital flows within debt. Currently it’s traditional interest-bearing bank debt. But we’re
certainly open to other ways of doing that and that we actively explore those avenues all
the time and if we ever decide to do anything, obviously we would let shareholders know.

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David Kerr: Yes, maybe a call out to the banks. Our banks have been very supportive at
difficult times. When COVID first became a problem in New Zealand, we were in a very
short period of time able to secure our funding lines and they have been very supportive
over many years and we are grateful of that.
Gordon MacLeod: Yes, our banking partners are terrific and they know our – the thing that
I like is that you never want to have a lend from a banker who doesn't understand your
business. When you speak with our banking syndicate, they know what we do really well
and they've taken the time and effort to understand it.
So that's why we get a really good hearing from the banks and it's a two-way street. We
see them as partners, not as people that we transact with. I believe that that results in a
really good position for both of us.
David King: Question from Kirin Bhalla: Congratulations on having a COVID free
environment in Victoria. It has been a major achievement. I saw an item on TV as to the
actions taken at the Nellie Melba site which was very complimentary. However, there was
no mention at all that it was a Ryman Village. Had this been publicised, that would have
helped in the marketing of other villages. Just a missed opportunity.
Gordon MacLeod: Yes.
David Kerr: Yes, and I do agree.
Gordon MacLeod: Fair enough. Fair enough, that's the downside of dual branding, isn't it?
Because of course in Australia, Nellie Melba's on the $100 note, isn't she? Is it the $50 or
$100, Dave?
David King: $100.
Gordon MacLeod: On the $100 note and an amazing opera singer, so well-known and
Ryman isn't so well-known, so we should be trying to get both brand names out there, but
we've had that dual-brand strategy for a while and that didn't quite work on that occasion.
So we're sorry about that.
David King: Janet Chambers’ question; no visitors, how is this impacting the emotional and
mental well-being of your residents?

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Gordon MacLeod: Yes, oh, look, I think it's really challenging for our staff, for our residents
and for their families. There are things that we can do such as Zoom calls, phone calls.
Our staff are just naturally very caring and have a small sort of cohort of people that they
look after themselves. So they get to know the residents really well and you can see that
when you visit villages that it's not just someone doing a round with lots of different
people, they really know Dave really well, they really know David well and there's a good
banter and good chat.
It's not the same as seeing your family of course, but I really think that at times like this,
that sort of measure is justifiable. It's just another way that we can keep people safe
which is the main thing and use alternative tools to really try and reconnect with people.
The challenge therefore in the care centre is for our staff to spend that little bit more time
with people, maybe have an even closer relationship and from what I can hear and what
I'm seeing, is that that's going really well.
Of course, it's not easy wearing a mask and now a face shield, that just makes the
challenge all the more.
David Kerr: It was a great initiative to cohort carers into small groups of residents because
that means that there is that level of intimacy and that oh, how are you today and
yesterday, you were feeling so good. So is the conversation that actually makes one feel
loved and as if one belongs.
But as Gordy says, it's not the same as family and that's why the Zoom has been really
successful. Zooming between families and their other family members, so it's not ideal, but
we're doing the best we can, Janet.
David King: Steve Nelson asks could you please give us a brief review of Ryman's Victoria
operations? Are there any COVID infections in staff or residents in the current lockdown
and Ryman's New Zealand operating model being replicated in Australia, does it give you a
significant advantage over many other operating models in that market?
Gordon MacLeod: Righteo, if I forget various parts of that question, can you prompt me?
David King: Yes, I'll prompt you.
Gordon MacLeod: So what was the first bit?

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David King: We have answered that actually.
Gordon MacLeod: Yes, we have answered...
David King: Are there any COVID infections?
Gordon MacLeod: Yes, so no COVID so far, touch wood. So I think maybe the heart of the
question is, is Victoria better to operate in than New Zealand if you take COVID out of the
picture which we should do. COVID is a temporary thing.
So for us, we see in Melbourne a very strong opportunity for quite a number of reasons.
Principally though because what we're doing is we are offering a Ryman experience which
is the same as what we do in New Zealand which people have loved here and people are
really embracing in Melbourne and Victoria with things like a deferred management fee
capped for life at 20%. With things like fixed weekly fees for life, most importantly with a
continuum of care village with aged care on-site, including right up to secure dementia
care.
So the problem we are trying to solve for people is the majority of people will want to stay
in their own home for the rest of their days and so for you to make a decision that changes
that, you need to be moving somewhere and wanting to live somewhere where you really
trust the other party that they can look after you for the rest of your days and that's what
we've been able to do in New Zealand and that's what we're doing in Victoria. That's
proving to be really popular.
So people like our really fair terms, they like what we physically do in terms of providing
care and my perception as they really like the ethos of Ryman Healthcare which is simply
encapsulated as we strive to do stuff that would be as good as it would be for your own
mum and dad. For me, that's the highest standard you can think of. We don't get it right
all the time, but that's what we're trying to do and doing it all within one company.
So there is a lot of trust that's building up and we've just got to keep on doing it.
David Kerr: I think as George just mentioned, the uniqueness of our offering is
advantageous. So I think that there was maybe that question included that concern.
David King: Question from John O'Malley: Given that Melbourne house prices are forecast
to decline by 20%, what income – what impact will this have on future unit sales?

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Gordon MacLeod: Well, first of all, we don't know what's going to happen with house
prices. I must admit, I've been at Ryman for 15 years and I think economists have
predicted [15 ] of the [last two] housing downturns. It's amazing how [negative is taking
New Zealand things around housing and speaking to real estate agents], it's the exact
opposite, properties are just getting snapped up.
I suppose the reason for that is that we are actually seeing very strong migration inward to
both Australia and New Zealand of permanent migrants returning back from countries
where they will be coming back to live permanently with cash. Probably in higher numbers
than just a normal immigration year. Combined with very low interest rates and
government support for jobs.
I'm not underplaying the challenges that the economies face, but all I can say is what
we're seeing right now. What we're seeing right now is that the markets have been pretty
stable. People are transacting, and the stuff of life goes on. Of course we will be very
cautious and watch the housing market.
To my earlier point on demand. We won't be building new apartment buildings where we
don’t have pre-sales and we don’t have demand with pricing that works for us. So we'll
keep a real close eye on that.
David Bennett: Just to add to that, sorry Gordy, as we reported at our [full] year, we've
got over 30% sort of price buffer between the current real estate market where we're
developing and what we are selling our villages for.
David Kerr: Yes.
David Bennett: So there's significant headroom in that pricing as well.
David Kerr: Maybe before I make one point I'll just need to apologise to Geoff, who is an
economist and for Gordy's comments about economists predicting so many housing price
crashes.
So the other point that is broad of mind is, the average age of people entering a village is
in the vicinity of 80 years. Most of the decisions are driven by a need. The need might be a
healthcare need or a loneliness need. So these are needs-based decisions. It's not sort of a
lifestyle choice. So that also will drive demand.

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They will by and large be mortgage-free in their home. So a reduction in the value of their
home was really, and it was money they never actually had in their pocket. All right. So
provided we keep that buffer between the cost - the money that they realise from selling
their home and that we charge them for entering our village, then I believe the demand
will continue.
David King: A question from John Boscawen. Did you claim any New Zealand taxpayer
subsidies? If so, how much? If not, why not?
Gordon MacLeod: Yes, we did, we claimed the wage subsidy. At a Group level we would
have been entitled to, I think it was about $25 million. We actually took advice from a
large accounting firm to see what the most prudent approach would be. That was to do it
on a village-by-village basis. The total was $14 million. We applied for that and we
received that.
We had detailed discussions with the government departments just to make sure that they
understood and we were clear on why we put the claim in. So essentially it's a result of
having a six week period where we couldn’t transact in relation to our retirement village
units and incurred obviously major costs associated with that.
We haven't made anyone redundant, which I think is really crucial.
David King: Okay, last question which is from G R E Whitely. It's not so much a question I
think as a comment. It says, this has been the best AGM presentation I have watched.
What I want to let you know is what comes through loud and clear is that you are all
empathetic. That is a treasured value that is not often seen. I want to thank you for that.
All the best with your endeavours.
Also thanks for looking after my Dad and Step-Mum who live in one of your villages. I can
see - I can now see why my Dad loves it so much and enjoys the best of care, i.e. it is led
at the top by Ryman, so it flows on through. Now that is leadership. Cheers.
David Kerr: Well, that makes me feel quite emotional really to hear someone say that. So
thank you very much.
So look we have gone quite a wee while and I think we need to move to the formal part of
the business. So that really is the matters which require resolution. They have been

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outlined in the Notice of Meeting. So shareholders can ask questions on each matter being
put to the shareholders through the online portal.
So moving to the resolutions. I'll call a poll on each of these resolutions. You'll be able to
cast your vote using the electronic voting card you will receive when your online
registration is validated. So to vote you will need to click, get voting card within the online
meeting platform. You will then be asked to enter your shareholder or proxy number to
validate it. Please then mark your voting card in the way you wish to vote by clicking
either for or against or abstain on the voting card. Once you’ve made your selection please
click the submit vote on the bottom of the card to lodge your vote.
So refer to the virtual meeting online portal guide, or use the helpline that I gave at the
beginning if you require any help. Voting is going to remain open until five minutes after
the conclusion of the meeting. The results of the meeting will be announced via the NZX.
So each resolution, set out in the Notion of Motion, is to be considered as an ordinary
resolution. As such must be approved by a simple majority of the votes cast by
shareholders entitled to vote and voting on the resolutions.
So in accordance with the Company's Constitution and NZX Main Board Listing Rule 2.7.1,
Paula Jeffs having been appointed by the Board retires from office. She is eligible to seek
election. Paula has offered herself for election. Maybe Paula, if you could just introduce
yourself now?
Paula Jeffs: Thank you David. Good morning everyone. I am delighted to be in a position
to be offering myself up for election for a Board position with such a purpose-led company
at Ryman Healthcare. Not only does Ryman construct beautiful villages in primary
locations offering full continuum of care, it excels through its outstanding culture to turn
these villages into thriving communities and happy homes for its residents.
This unique and special culture is underpinned by the simple mantra that everything has to
be good enough for Mum or Dad.
Earlier in my working life I spent several years working as a personal carer in aged care
sector, supporting me through my undergraduate studies. Through that experience I saw
everything that was good, bad and everything in between when it comes to caring for our
elders.

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I have never before experienced anything like the vibe that you get when you walk
through a Ryman village. It's quite extraordinary and it's very special. I want to help
preserve and leverage this to support the Company achieve its strategic aspirations for
growth.
So a bit about my credentials. I am a career human resources professional, having worked
in the field for over 25 years across multiple sectors, with my great love being healthcare.
I spent six years as the executive director of human resources and clinical education at
Austin Health, one of Melbourne's largest tertiary teaching hospitals. That included two
large aged care facilities and two large research institutes.
During my time at Austin I was heavily involved in cultural transformation programs,
sector workforce reform, patient experience, health and safety, industrial relations, clinical
governance, education and training. Earlier in my career I spent 15 years at ANZ Banking
Group, most relevantly heading up their global talent and succession management
function. Ensuring that ANZ both had the depth and breadth of talent to meet its needs in
the areas of strategic and geographic priority.
I currently hold the role of General Manager People and Capability at Melbourne Water.
Which is another organisation with deep purpose and a strategic imperative to meet the
needs of a growing population and enhance the liveability of Victoria for its residents.
I offer both listed and government sector experience at the senior executive level. My
professional qualifications are in psychology and media studies, with postgraduate
qualifications in business, executive coaching and industrial relations. I am a graduate of
the Australian Institute of Company Directors and a Certified Member of the Australian
Human Resources Institute.
I would see it as a great privilege to be elected to serve as a Ryman Board member. I offer
my skills mix to the Board, who are keen to see management well-supported in the areas
of people, talent and culture as critical enablers for navigating a pathway to achieve our
growth aspirations. So thank you, I'll pass back to you now David.
David Kerr: Thank you Paula. You can see shareholders why we have been so delighted to
have identified Paula. The contribution that she has already made has been really
impressive. So I now propose that Paula Jeffs be elected a Director of the Company. Dave,
are there any questions for the Board or Paula concerning the motion from shareholders?

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David King: There are none.
David Kerr: Thank you. So please could you mark your voting cards in the way you wish
to vote by ticking for, against or abstain in the appropriate place on the voting card. I'm
going to give you just a moment to do that.
Then in accordance with the Company's Constitution at the NZX Main Board Listing Rule
2.7.1, Claire Higgins having held office for three years retires from office. She is eligible to
seek re-election. Claire has offered herself for re-election. Claire, if you would be kind
enough to introduce yourself now?
Claire Higgins: Thank you very much David, and good morning everyone. Thank you for
the opportunity also to make some comments today. My role as a Board member has
expanded somewhat in the past 12 months to include the Chair role of the Audit and
Financial Risk Committee. Fortunately, we have not lost Warren's expertise on the
committee. Together with George and Geoff as members I think we have a strong very
experienced committee, which in the current environment has been particularly focused on
the financial outcomes and risk work of the committee and supporting the Board in this
area.
As in previous years, I have continued my role as Chair of what was the Health and Safety
Committee. Late in 2019 we expanded the role of this committee to explicitly include
wellbeing. Whilst Ryman has for some years had a focus on wellbeing, the inextricable link
between wellbeing and health and safety outcomes meant that this was a logical link with
the committee's work.
Early in 2020 we embarked on and approved a refresh of our health, safety and wellbeing
strategy. The work plan of the committee is now clearly aligned with our strategy. The
COVID-19 outbreak has also required us to bring a dual lens onto the committee workplace
to ensure that whilst adopting a new set of standards and procedures with respect to
COVID-19. The fundamental work across the organisation on managing health and safety
and our critical risks, together with the robustness of our system and program, has needed
to continue to remain prominent.
As you can imagine, bringing the focus on the overall wellbeing of the team in this
environment has complemented our work. Whilst the restrictions on our movement has
prevented us from attending sites as much as we have in the past, or would have liked to

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do, we have maintained a reasonably close relationship with our Health, Safety and
Wellbeing Leaders and our Construction and Operation Team Members during the COVID-
19 period.
Particularly today I would like to speak to my standing for re-election to the Board. The
experience of the last six months has made me even more passionate for the success of
the Company. I believe that Ryman offers the best in retirement living and care. I would
love to remain part of the team at Ryman who have the opportunity to care for our
vulnerable elderly people.
I would also love to remain part of a team that supports and invests in people who have
the same passion for care. It would be my privilege, and I would be very proud to continue
to contribute to that. Thank you very much David.
David Kerr: Thank you Claire, and I can advise shareholders that Claire's a consummate
director. She is always well-prepared, she thinks careful about the advice she offers and
she has been invaluable. So it's a pleasure for me now to propose that Claire Higgins be
re-elected a Director of the Company. So Dave, I need to see if there are any questions for
the Board or for Claire on that motion?
David King: There are no questions for Claire.
David Kerr: Okay, so thank you. Look, please mark your voting cards in the way you wish
to vote by picking for, against or abstain in the appropriate place on the voting card.
Resolution 3 concerns the authorisation of the Board to fix the auditors remuneration for
the coming year. Deloitte is automatically reappointed as the auditor of Ryman Healthcare
Limited under section 207T of the Companies Act 1993. Dave, are there any questions for
the Board concerning the motion from shareholders?
David King: There are no questions.
David Kerr: Thank you, very much. So look, please could you mark your voting cards in
the way you wish to vote by ticking for, against or abstain in the appropriate place on the
voting card?
So that concludes the formal part of the meeting and you can now submit your vote.
Voting will be open until five minutes after the close of the meeting and the results of the
vote will be announced by the NZX later today.

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So look, thank you everyone for your attention and your questions. As I’ve said, it has
been a challenge. We know there is a lot ahead of us. We are in the middle of a global
pandemic but as chair of this company, I have to say it has confirmed for me what I have
known for a long time, that Ryman is a special company with enormous potential ahead.
So I would like to thank my fellow directors, both here and on the screen, for all your
support and your wisdom and thank all of our 6000 staff and our marvellous 12,000
residents and their families.
A big thank you also to all our shareholders for all your support. We really do appreciate
the backing you give us, the advice you give us. We have got many long-term loyal
shareholders who realise we are in this for the long haul. We are about as excited as ever
about the future of Ryman and our mission continues to be to build as many Ryman
communities as we can to meet the demand that exists.
We look forward to seeing you again in 12 months’ time and we can look forward on
progress at that stage. So thank you, very much.
Gordon MacLeod: Thank you, everybody.
End of Transcript

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

June 12, 2020

Page 1 of 27
Start of Transcript
David Kerr: Tena Koutou Katoa. Good morning, everyone and welcome to Ryman
Healthcare’s full year results presentation for the year to 31 March 2020.
My name’s David Kerr. I am currently the Chairman of Ryman Healthcare. To my right, we
have Gordon MacLeod our Chief Executive Officer. Beyond him, David Bennett, our Chief
Financial Officer.
We decided to make our full year presentation a virtual event so everyone can keep
themselves socially distanced and safe. We didn’t realise at that stage; it would be Level
[1]. Despite it being a virtual event, however, there’ll be plenty of opportunity to ask
questions either online or over the phone, for those of you who have called in.
I’m going to give you a brief overview of the year. Talk about how we responded to the
COVID pandemic. Gordy will then give you his analysis of the year and thoughts on what’s
ahead. David will then give you some greater detail on our financial results.
At the end of the presentation we’ll 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 you when you are free to ask a
question. We anticipate wrapping up around 11 am.
So, 2020, what a year. We seem to have had more than our share of what might be called
one-in-a-lifetime experiences down here in a nutshell. It was a normal year for the first
nine months. We started hearing about and worrying about COVID-19 early January. We
immediately began preparing to cope. We really haven’t stopped worrying about it since
then. There’s still plenty of uncertainty about COVID-19 ahead, I’m afraid.
Let’s look, though, first at the headline numbers. The audited underlying profit was $242
million, which is up 6.6%. That was driven by strong demand at the new villages. The
reported or IFRS profit was down 19% to $265 million, which is due to COVID-related
property valuation changes.
The full year dividend was lifted to $0.242 per share, in line with the underlying profit.
Which results in a dividend of $0 .127 per share with a strike date of 26 June and will be
payable on 10 July. The operating cashflow rose 12% to $449.8 million. Cash receipts were
up 12% to $1.13 billion.
As you can see, our full year underlying profit came in below our medium-term target of

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15%. This 15% annual growth in underlying profit has been our target of many years, as it
means we double our profit every 5 years. We continue to believe that that remains an
achievable aim.
At the half year, we said we expected to end the year with an underlying profit in the
range of $250 million to $265 million. Which gave a range of between 10% and 17%
higher than the prior year. We believed this to be an entirely achievable range. However,
as you’re aware, we suspended this guidance prior to year-end to reflect the fact that sales
of occupation rights would be significantly restricted in March as a result of the COVID-
related emergency announcements. That we would be forced to seriously curtail
construction activity as we focused all our attention and our resources on our residents’
care and safety.
The months leading up to our suspension of guidance, was one of the best months ever in
terms of sales. Also, we incurred very significant costs, which David will talk about later, in
preparing for COVID and to cope during the lockdown, which has also impacted our bottom
li ne. We think that being able to report an underlying profit of $242 million, sti ll ahead
6.6% on the year before, und er those circumstances, is a solid result.
We believe the measures we took and the investments we made from January on, to
prepare for COVID-19, put us in good shape to weather the challenges of the virus in the
months of lockdown that we have experienced and for the future time that COVID-19 is a
threat.
I personally think there’s a risk of resurgence and this risk will be with us for some time.
There’s also a heightened risk of a recurrence with the colder temperatures that we’re now
experiencing and that we’ll also have with us for the next few months.
Some modelling has suggested that as few as three COVID-19 positive cases going about
their normal activity in the community for as little as three days, here in New Zealand, will
result in an exponential increase in cases. So, we need to be very cautious for quite some
time yet.
One of our team members described the last five months as being a bit like living on a
knife edge and that’s a fair description. My heart was in my mouth whenever I saw Gordy’s
name come up on my phone. But we got pretty good at quickly advising each other that
there was no infection present at any village, before then getting into the specific
discussion.

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It was clear from very early on, that older people were particularly vulnerable to the virus.
Sadly, that’s what’s played out in New Zealand, where all 22 people who’ve lost their lives
were aged over 60. In Victoria, 19 people have lost their lives. Nevertheless, there have
been in other countries many deaths in those younger than 60 , as well.
So, COVID-19 ’s been an enormous healthcare challenge for us as a company, as well as a
once-in-a-generation economic challenge. The clarity of purpose of this company has been
critical, really. The residents who entered any Ryman facility joined us because they
trusted us to do the right thing for them.
Our response, internally, was called Project Safe Haven. So, our aim was, firstly, to keep
COVID out of our villages at all costs. Secondly, to turn the villages into safe
[communities] where our care residents were secure, had the best of care and to give our
more independent residents the peace of mind that they could stay put without having to
leave, because our team would take care of everything else for them.
Finally, we needed to be fully prepared, if we did get COVID infections, for the plan to
contain it, eradicate it and then return to normal. We wanted to make sure that the well-
being of the residents, their families and our team didn’t suffer as a result of the measures
we took.
As a board and a management team, we were determined to do everything we could think
of to make sure everyone was happy as well as being safe. As you know, we haven’t had a
single case of COVID-19 among any of our residents or our teams. But we take nothing for
granted and we’re going to continue to be extra vigilant. The current COVID world is a
much different place from six months ago. We’ve had to change and adapt on a daily
basis.
We’ve managed throughout, primarily, because of the superb, professional, can-do
approach of all our team. Our people are amazing. They made huge sacrifices and they
continue to do so, to put our residents first and to keep them safe. They’ve been working
under very tough clinical conditions. They’ve done so with huge professionalism.
Without wanting to embarrass any specific staff, we had staff members who left their
families to go to other parts of the country throughout the lockdown. Some who took up
living separately from their families so they could focus only on their support to the
residents. There are many, many staff who went many extra miles. They showed
themselves to be very resilient and in some part, this was a function of the culture gas
tank in the company being full. They demonstrated, in a way, what a privilege it is to look

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after our residents. Our residents responded in kind.
We learnt that our infection control systems are resilient, and our nursing teams can cope
with long periods of time working in different patterns with strict controls in place. Our
rosters were robust and coped well with the demands that COVID placed on them. At its
peak, we had 282 residents and 345 staff in COVID isolation or off work as a precautionary
measure. And yet the care continued to flow.
Over 10 weeks our teams delivered 80,000 individual Happy Hours in a Bag, because we
couldn’t have the usual Happy Hour gatherings. More than 10,000 grocery deliveries were
undertaken for our more independent residents and, of course, the teams also kept all our
residents in care safe. All along the way, our team has enjoyed the trust, co-operation and
goodwill of our residents and their families.
Our residents have thanked them with poems, pot banging, home baking, impromptu
concerts and serenades. We’ve had thousands of emails and cards to say thank you to
them.
We asked our residents to go into lockdown early and they did so with no complaint. We
stopped all visits, which we know is an extraordinarily hard thing to do on our residents
and families alike. We had to make some tough calls. But our residents and families
understood our intentions and they gave us their support.
We explained carefully why we were taking the measures we took. Why we were taking a
conservative approach to risk. The communications that Gordy led, were excellent as they
were honest, authentic and frequent, and were tailored to the different groups of our
residents, their families, our staff and our leadership.
We went harder, earlier and we put additional resources and measures in place which, at
times, put us out of step with the Government and the Ministry of Health. That’s because
we had our own team of clinical specialists working on the unique problems that we faced.
While the Ministry takes the whole of the population view, our concern was purely confined
to the safety of our residents and our staff.
Our clinical governance committee met regularly with our operations team led by Cheyne
Chalmers and her team of highly experienced aged care nursing specialists. Our
independent advice comes from Ben Harris, a microbiologist and infection control
specialist; Dr Doug Wilson, a researcher and aging specialist , who’s spent a long career in
the pharmaceuticals industry; and University of Otago Gerontologist, Professor Tim

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Wilkinson. We were really blessed with his very good external advice and we’re even
looking to confer an honorary medical degree on Gordy. He’s expanded his medical
knowledge very quickly.
Cheyne worked closely with the Ministry and with other nursing leaders and we worked
collaboratively with the rest of the industry. It’s a tribute, really, to the leadership of Gordy
and his team, that our staff and independent residents were happier than ever during this
crisis as we’ve discovered in our most recent surveys. That’s an extraordinary result given
what they’ve all been through. So, thank you, Gordy and thank you Cheyne. Thank you to
everyone on the Ryman team.
The COVID challenge has really proven the Ryman model of retirement living and care was
more relevant than ever. Our residents have told us that living in a Ryman village during
the crisis gave them a great sense of security. The care we took was, indeed, good enough
for mum. We’re a values-based company. The safety of our people come first. If we
continue to do this, we’ll weather the storm and enhance our reputation as a safe haven
for people in their retirement years. I mentioned that COVID is an enormous healthcare
challenge as well as a business challenge. It will continue to be that healthcare challenge
for some time. So, you can expect us, as a company, to be taking a conservative stance.
In terms of the business challenge, we have a few key things in our favour. Our business
model is robust. We’ve tested it. It remains strong. We’re not a disrupted industry. Our
balance sheet was able to cope with the stress and our bankers have been very supportive
and this reflects our mutual respect of each other.
We are also fortunate that we operate in two of the few countries of the world, New
Zealand and Australia, that have dealt with COVID well. Our response and our
geographical advantages mean that we are well placed to continue to manage COVID in
the future and we have a great base to launch our recovery, which is already under way.
A few weeks in, we began putting together the lessons that we'd learned along the way
and what we'd do differently in the new normal. It may be that we’ll look at ways of
designing and building a little differently. But we remain nevertheless committed to the full
continuum of care.
We look at new ways of communicating and we've certainly learnt a lot about the digital
capacity of our residents and a host of new services, like the grocery deliveries, that they
enjoy.

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COVID-19 will in a way, help us to innovate and change, and we look forward to that
challenge. The big challenge we face is the balance between our aspirations for future
growth and the reality that currently exists with COVID-19.
We're committed to continue our growth as we see very real opportunity for our continued
significant build program. Gordy is going to tell you more of this. So I'll now hand over to
Gordy to talk you through the year and what's next as we recover from the COVID
emergency. Over to you, ‘doctor’ MacLeod.
Gordon MacLeod: Thank you very much. I've always wanted an honorary doctorate from a
doctor. Hi everyone. Thanks, David and thanks to everyone for tuning in. We started
January in good shape actually and we were travelling well towards our financial year end.
We had our strongest February ever with record sales and we were looking good for March
which is always the biggest month of the year and a natural peak in our selling season. I
was confident we would be hitting 15% for the year and we were launching into our
biggest ever build program with 12 sites underway and on track to be delivering over 1000
beds and units in the year ahead.
But a cloud started to appear across the horizon. We first began worrying about COVID-19
in January and we sent our first warning out to our residents, staff, and families about
restricting access to our villages to anyone who had travelled to China in late January.
Gosh that seems a long time ago now.
We allocated $2 million for our first order of PPE early in February to secure supplies. In
total to date, we've actually spent $26 million that we weren't expecting to spend to
protect our residents and our staff from COVID.
Over the next six weeks, we progressively closed down our villages to overseas visitors,
cancelled open days, and suspended our heavy-duty marketing activities. And we were
fully closed to all visitors in mid-March, ahead of the Level 4 lockdown in New Zealand.
On the construction side, we shut down all of our six sites in New Zealand from 26 March.
In Victoria, the rules were actually slightly different and we were able to continue with
building at Burwood and Geelong, albeit with reduced numbers. That's because of physi cal
distancing.
However, we [took] the decision to close our Nelli e Melba construction site because we had
a fully operational village in lockdown right alongside the builders and at that time, we just
thought the risk was too great.

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We sent home all of our Christchurch, Auckland, and Melbourne office staff. We redeployed
some of our office staff to support our vil lages by keeping in touch with residents, doing
welfare calls, and supporting of communication and logist ics.
And I want to give a shout out to our technology team because moving a few hundred
people to home base working pretty much overnight was no mean feat. We also had to
figure out how to keep our aged care residents in touch with their loved ones with no
visitors allowed.
This is a wonderful picture. This is our resident, Ella, up at Jane Mander, there with her
caregiver, Jazz, actually on her 106th birthday. So I was delighted that our technology
team were able to deploy Zoom across several thousand tablets overnight early on.
This was a real benefit in having deployed myRyman because there is a tablet in every
aged care room. Next thing you know, our residents have made 8500 Zoom calls, totalling
nearly 6,500 hours.
And you can even see Ella here, celebrating her 106th birthday over Zoom. I think her
104th one, when we showed it to you as shareholders a couple of years ago, was her
paragliding.
So, Zoom probably wasn’t quite as exciting but I think was a great next best thing. And I
let Simon know, our old Managing Director, because he was really passionate about
myRyman and he was delighted to hear that we'd been able to do that.
Hi, Simon, by the way. He's still a shareholder. And even the Prime Minister got in touch
with Bruce Cunningham over the tablet in his room. Now that's a true benefit of the digital
age for you.
When we redeployed our builders to help out at our villages, that worked out really well
too. They became our delivery and security team. Our sale advisors hit the phones to keep
in touch with people under contract and prospects and they are busy back selling again.
No staff were made redundant and everyone was flat out.
We're beginning to see sales activity returning after losing pretty much most of March,
April and May. And in fact, our last two weeks in resales were well up on this time last year
so that's good.
It's also great to be back building again. Our construction team were chafing at the bit to
get going, as you can imagine. We now have 1700 construction workers back on the job

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and we're at about 95% of where we were prior to COVID.
We faced a major logistical exercise to get building again and to handle our refurbs at
existing villages under the new COVID rules. At level three and level two, we had a nurse
on each site to make sure our constructive teams were fit and well on arrival.
We achieved a lot during the year. A whole lot of work to improve the experience of living
in a Ryman village continued and we were once again named the Most Trusted Brand in
the Aged Care and Retirement Sector in New Zealand.
That's actually the sixth time we have received this award and it was also backed by the
continued clinical excellence, with more than 80% of our villages achieving gold standard
four-year certification. So well done, team. We completed the rollout of our myRyman Life
Dementia Training Program which aims to support people living with dementia to live in
the moment and to feel kindness, love, and security.
It promotes spontaneity, laughter, and happiness by de-stressing their environment.
Allowing them to make sense of their world, lifting their quality of life, and demystifying
dementia for their loved ones.
More than 3200 of our team members have completed the training. And even better, more
than 840 family members took the time to train as well so they can better understand
dementia.
All of our New Zealand villages have been granted the ‘dementia friendly tick’ by
Alzheimers New Zealand. We are the largest organisation of our kind to receive this status
and we're really proud of this.
Every aspect of what we do was examined to ensure we are truly an organisation that is
committed to providing kind, caring, and supportive environments for people living with
dementia.
We're Alzheimers New Zealand lead partner and we support the mission to demystify and
destigmatise dementia. A whole lot of other work went into improving life for our team
members, including our Elite Program and senior leadership development work, health,
safety and wellbeing, and also, continuing to improve the pay conditions of our staff, you
name it.
The new result of all this work was the strongest staff survey results in our history which
we just received the good news about. This puts us in a great position to get better and
better.

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During the year, we purchased four new sites. Here's some of them coming up on the
screen now. The first up was Ringwood East in Melbourne in April. And in August we
purchased Northwood in Christchurch, and Highett in Melbourne.
And here's something new for you, just prior to year end, we purchased a new site at
Takapuna in Auckland which we're announcing today. It's a superb site - well, you can see
it, can't you? It just looks amazing.
A superb site with stunning views in one of the premier real estate markets in New
Zealand. Most importantly, it's an area people love and we think it's perfect for a Ryman
community. It's subject to OIO approval.
And in total, these new sites added another 1077 beds and units in our landbank. We also
had our best ever year at getting sites through planning. We secured seven resource
consents or development approvals for a whole range of villages and here they are;
Havelock North, Scott Road in Hobsonville, Riccarton Racecourse in Christchurch, Highton
in Victoria, Aberfeldie in Melbourne, Highett in Melbourne, and Ocean Grove in Victoria.
And that's an amazing list, isn’t it? When I first read that the first time, I thought I was
reading like the All Black team going to South Africa. It's an incredible work by the team
that should have so many sites approved in one year.
So in total, we received approval across those sites for 2029 beds and units in our
consented landbank, taking us to 3900 beds and units consented, up from 2900 beds and
units the year before.
And in addition to this, we've submitted a further seven applications, currently being
processed that are under review with local councils, and that's in addition to what I was
just talking about.
And those next seven sites are; Karori in Wellington, Mount Martha and Mount Eliza which
is in the Mornington Peninsula in Melbourne as shown here, Kohimarama in Auckland, Park
Terrace and Northwood in Christchurch, and also Ringwood East in Melbourne.
These seven additional sites represent another 2235 units and beds that are currently
being processed by councils. Now some may take longer than others and that's why we
have plenty of irons in the fire, as you can see.
And within my 15 years at Ryman, the pipeline has never been in this sort of shape, and
that includes the building consents that we've got lined up for villages we've got underway
right now. They're well into this year and in fact, we've got building consents going right

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through into 20 22 , 20 23.
So it's a real credit to the team and means we're well placed for growth over the next few
years. Now, before I get into some construction activity detail, I thought I'd show you
where construction activity was this last time last year and where we've got to today.
It's like a good flip-o-rama. So, if we start off with the 20 19 one. Ye s, that one there.
There might be an internet drag on this so do it a bit slower. So back in March 20 19, that's
where the construction activity was across our sites.
And then if you flick forward to 2020, you can see that the whole bunch have got council
approval and consenting sorted out and have moved onto the construction phase. So, let's
do that one more time. And again. I really like those flip-o-ramas. I had one of Geoff
Boycott batting in cricket, when I was a boy, which I always watched.
Anyway, we're building on 12 sites and we're not planning on starting any other new sites
this year even though we have options to do so. We're hoping to hit over 1000 beds and
units in this new financial year, well we were hoping to hit 1000 beds and units in this new
financial year in terms of our build rates.
However, we have basically lost a couple of months to COVID and we're probably a little
bit more conservative, I guess. So, I would expect us to be developing more like 900 beds
and units at this stage this year.
As my board remind me, it's possible we could do more than that. If the demand is there
and we're able to, then we will. But it's early days of course. And look, we're really proud
of the work our construction team do. This is another sort of flip-o-rama thing. And here's
a great example of their success.
The picture you see is Linda Jones, first taken in January 2019 and just a little while ago.
So let's go back, and forward. And look, that photo of our village goes right up to the top
of the screen where you see those townhouses there. That's not a residential subdivision,
that's the townhouses at the front of the village. So that's an extraordinary amount of
progress. We started work on the Hamilton site in June 2018, but we had to stop almost
immediately after some historic bones were found on the site and we lost about three
months as a result of the archaeological requirements.
Two years later we have 100 residents living in the village and townhouses and
apartments and the main block is opening soon. When I had a cup of tea with them in one
of the front townhouses there, oh a few months ago now, they were just absolutely loving

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living in the village and loving some of the new design features and just how the
construction team were looking after them as well, so that's great. Th ere's now 350
construction workers on site and as you can see it's going to be a beautiful village when
it's completed.
As well as stepping up the amount of new villages on the go, we have also put a lot of
energy and investment into improving the design of apartments, townhouses and villages
that we are delivering because you've always got to lift your game. For example, our
interiors team has revamped the design of our public areas, cafes and apartment kitche ns
and bathrooms. The new kitchens and bathrooms have been a hit with residents, they love
them. They feature Italian style wall and floor tiles, warm wood tones and new lighting and
cabinetry. We have introduced new kitchen cabinetry looks and materials and new
waterfall style benchtops. That was a new word I learnt last year, waterfall benchtops.
You can see there in the pictures we've got the bar on the left side there, we've got the
grand entrance at Murray Halberg, it's beautiful new reception desk there and then down
to the bottom left we've got the new café there. In the middle, just in the community
centre and then across the two bottom right ones, you’ve got a new kitchen island there
with waterfall benchtop going down the side and the new floor to ceiling tiling that we're
doing in the bathrooms. They look absolutely beautiful actually, so they’ve been great
enhancements.
Righto, we'll keep on going. We are fortunate to be operating in two markets that are
largely free from COVID right now, New Zealand and Australia, which puts us in a great
position to keep on growing. We have been through a short-term crisis no doubt and of
course there’s uncertain times ahead, but when you look at the slides showing the ageing
of the world's population, you see what an opportunity we have, it is extraordinary.
That's why I believe that the best years are ahead of Ryman yet. If you just look at the
graph where today is, that vertical line, if you just dwell on that for a moment, everything
to the left is where we are and where we've come and everything to the right is what's
planned to happen. Even just in 50 years' time the global world population of 80 plus will
go from 125 million to 425 million and that is an extraordinary change.
So, our plan is to get back to business as usual. Of course, there are some things that
won't be quite usual, but we are going for it. We plan to continuously improve what we do
for residents, build wonderful villages in great locations and make the best of new
technology and we are going to make sure our residents continue to get a great

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experience and our staff as well. Our growth is never growth for growth's sake. What we
do meets a real need and to be honest with you, COVID has taught me more than
anything else that that's the case.
Ju st one last thing to wrap up, well maybe one second to last thing, you as shareholders
can feel very proud of your investment in Ryman. The people that work for you and for
your company have done an incredible job and have done our residents a tremendous
service and have gone above and beyond the call and I hope you feel really proud of them.
We certainly do.
I just want to finish off just with one quick thing, is that we all have teams of people that
report directly to us in the company and I would just like to acknowledge my senior
executive team who have had to put up with meetings with me every single morning at
nine o'clo ck and that starts with Jane, my Executive Assistant, who's been great. Dave,
sitting beside me, Dave Bennett. Jeremy Moore, our Chief Development Officer. Cheyne
Chalmers, our new Chief Operations Officer, who probably wasn't expecting to deal with
this in her first few months on the job. Nicole Forster, our Chief People and Technology
Officer. Tom Brownrigg, our Chief Construction Officer and Mary-Anne Stone, who is our
Acting Chief Sales and Marketing Officer.
I can tell you that all of those people have gone above and beyond the call as well as their
teams and all people at Ryman, so I just want to thank you all. Take care. Over to you
Dave.
David Bennett: Thanks Gordy and good morning everyone. Our underlying profit of $242
million is an increase of 6.6% on last year. Our reported IFRS profit, which includes the
unrealised fair value movements on investment property, was $265 million, down 19% on
last year. This reflects a $173 million decline in unrealised fair value movements due to the
changes in valuation assumptions related to COVID-19.
CBRE Property Valuers have reduced its near-term growth rates to affect an expected
decline in the property market due to COVID and also softened its discount rates to reflect
the increased uncertainty at a macro level. During the year the New Zealand Government's
decision to reintroduce tax appreciation on buildings has reduced the deferred tax liability
and together with the increase in the recognised tax losses, ha s resulted in a $93.6 million
increase to the reported profit.
We got a record number of sales in the year of 1,436 units, which is a 16% increase on
last year. Our operating cashflows are a record $449.8 million, up 12% on last year. Also,

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pleasingly our cash receipts from residents were $1.13 billion for the year and that's also
up 12%. We have benefited from cash collections at some high value villages and from the
increase in average sale volumes.
We had strong cashflows throughout the year and this has allowed us to invest a record
$711.4 million in new villages and care. Our investing cashflows were spent as follows.
$497 million was spent on building new villages, $101 million was spent on land supporting
our land bank of 6,595 units and beds, $30 million on bed licences in Victoria, $39 million
was invested in upgrading our existing villages to further enhance the resident experience
and the care which we provide and $4 4 million was invested in a range of projects which
include development of the next stage of system integration and technology, along with
some new kit for our construction sites as we ramp up our build program.
With such a major investment during the year, our working capital debt has increased to
$1.7 billion. As we are now building across 12 sites, we have also significantly lifted our
investment in Victoria. We regard it as productive debt. We invest the bulk of it in new
villages where we recycle capital and this establishes a growing tail of recurring cashflows.
We have a strong financial position with total assets of $7.68 billion, which is up 15% from
March 2019.
We continue to have very supportive banking partners and our syndicate of seven banks
understands our growth plans and strongly support us. Our debt to debt plus equity ratio is
42.6%. Our bank facility has lifted to $2.3 billion, with more than 90% of this having a
tenor of three or more years.
We are continuing to see the benefit of the developments being concentrated in high value
centres and our development margin for the year is 27%, 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 $856 million. This is the amount of resale margin we would crystallise
today based on current prices. 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 will increase as our villages mature. Deferred management fees also reset to
these new price levels with each resale, so this creates a compound effect.
Our resale volumes in New Zealand increased by 10% over the year, while the volume in
the wider New Zealand market was up just 1.8%. Demand remains strong with only 127
units, or 1.7% of our portfolio, available for resale at the end of March. This represents a
little over one month of vacancies is a solid achievement if you consider the significant

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momentum lost in March due to COVID-19.
Th is demonstrates the continued appeal of a Ryman Village. Demand for the care we
provide remains very high and we closed the year with occupancy at 98%. The aged care
sector in general is averaging only 87%, so we are significantly outperforming the market.
At the end of March, we had a significant amount of unconditional sale contracts for new
units and this totalled $337 million. This is the highest amount we have ever had. At this
time last year, the number was $273 million. The majority of this will be collected over the
next 12 months as construction stages complete. However, some of these settlements
won't occur until the next financial year in line with the build program, so it shows the
strong forward book we have.
This has given us a very strong basis for which to restart our significant build program.
Affordability of our units is something we continue to monitor closely and our residents in
Auckland and Melbourne free up significant amounts of capital when they move into a
Ryman vill age. In fact, property prices in Auckland would have to drop 18% at our
developing villages before residents stopped freeing up capital and 30% in Melbourne.
This is obviously early days, but the housing market seems to be holding up in both
countries we operate, with more resilience than most commentators predicted. We have
the largest service department portfolio in the sector with approximately 30% of our
retirement village portfolio being serviced apartments and these are priced even lower in a
purely needs-based decision.
What triggers our ability to grow is simple, our model of recycling capital in each village.
Since listing in 1999 in raising $25 million, we have invested $4.4 billion in our portfolio.
We’ve paid out a growing dividend stream to shareholders of more than $920 million but
we have never had to raise any new capital.
As Gordy mentioned earlier, the importance of what we do for residents is higher than
ever. To give you a sense of how we are going, just on the resale front alone since the
beginning of May, we have transacted 131 resales, which is higher than the same period
last year. We are also seeing residents settling their homes in an orderly fashion as
restrictions have come off. In the last few weeks, we have seen over $60 million of
settlements.
It is also reassuring to know that our profits will continue to lift as our villages mature. So,
what this means is that we would expect our profits to lift by approximately $100 million
due to the increased resale volumes and deferred management fees on our existing

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portfolio. In addition to this, our land bank of 23 sites is expected to contribute capital
sums of a further $4.3 billion. If you assume an 8% return from the deferred management
fee and resales alone, it will generate an additional $350 million of recurring profits each
year. This excludes the development margin of course.
There's obviously a lot of water to pass under the bridge but we thought it was important
to paint a picture for you about what the land bank could deliver in terms of value and we
don't intend to stop there. We have got a lot of future growth ahead of us and we have
come to a time where what we do has really been valued by the people we look after.
Thank you very much and over again to you David.
David Kerr: Th ank you Gordy, thank you Dave, great presentations. So look, we will now
open up for questions and if we have any callers on the line maybe if they could introduce
themselves and then the question. Do we have any questions?
Operator: Thank you. 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 are on a speakerphone, please pick up the handset to ask
your question. The first question comes from Andrew Steele with Jarden. Please go ahead.
Andrew Steele: (Jarden, Analyst) Good morning guys. The first one from me is on your
thinking about development planning and I guess phasing. You've said that you have no
intention at this stage of starting off any new projects in this year. Now, if the
circumstances were to change, which style of projects would you be looking to accelerate
or potentially decelerate depending on market conditions and within that, thinking about
deploying incremental capital in the Victorian market versus the New Zealand market. Do
you have a preference at this stage from a risk perspective?
Gordon MacLeod: Oh, thanks for that question. With the 12 sites that we've got on the go
going into the next year, there are two new villages that we are committing to. Riccarton
Racecourse, which we're just starting. In fact Andrew Inch, who is going to be our project
manager, I saw him there a couple of days ago. He was recruiting people, so they’re busy
getting underway at the site there.
The second one is Ocean Grove, which is down the Bellarine Peninsula in Victoria. We are
just really waiting for the final dots and crosses to be signed on the endorsed plans from
Council. We've got the development approval. We are just getting the endorsed plans done
which is like the equivalent of the building consent for the entire site . Those discussions

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are going well and that is a site we expect to be our fifth village open in Melbourne by 31
December 2020.
In terms of other sites though I think it's probably better for us to just take a read on the
market. There's actually a number of sites we could start on. For example, we've got a
consent for Coburg and we've got one for Highett. We'll have other sites that have come
through, that might come quicker through [than] the seven that we've got in the pipeline
for example, and look, we'll just have to take them on a case by case basis Andrew
depending on how we travel.
But we think that a spread of 12 sites which we have under really good control, the ones
that we have been building out for a while now and we've got a really good sense of all the
timings and demand and the two new sites we’re adding in have a greater proportion of
townhouse elements too so they won't require quite the same capital commitment moving
into them. So, we think that's about the right sort of balance.
When we looked at the sales for the year ahead, if we get slightly more sales than we
expect at some of those sites, we can quite easily turn on another couple of stages. That's
why speaking with the board last week at our meeting, when we caught up, I think there is
a potential to flex between 900 and 1000, but it's early days yet. So, I would really take a
900 is where we are targeting to be.
Andrew Steele: (Ja rden, Analyst) Thanks Gordy and just two follow up questions just on
that. The first being that given the, I guess, the flex in the pipeline of, you know, you
highlighted between 900 and 1000 beds and units, is there a flow on impact into the
following year and can you get that to the pre-COVID trend if you wanted to in terms of
build rate?

Gordon MacLeod: Yes.
Andrew Steele: (Jarden, Analyst) Or is it sensible to expect that will be lower?
Gordon MacLeod: No. No, look, Dave hates it when I answer these questions so I'm going
to anyway, but we would want to do 900 this year. It's possible we could do more. In the
year ahead it's very much possible we could do in the region of 1300 as we lift our build
rate in Victoria, as we get some good sites underway in New Zealand which show good
momentum. So our overall plan Andrew is to continue to lift our build rate in Melbourne in
Victoria to match the historic build rate in New Zealand. It's roughly 800 on each side.
I guess just in answer to your question, which is our favourite nation, well we love them

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both, but there may be opportunities out there in Victoria and we decide to do some more
there for a period of time, or vice versa. We've got some really good options and we are
lifting our build rate and my goal would be that we would still get back to the 800 per
country type target that we were hoping for a couple of years ago actually.
David Kerr: I think Andrew maybe part of your question is are we going to pivot towards
Australia and that really isn't a decision we’ve taken. I think we will be driven more by
demand and what opportunities come up. Given the environment we are in now, there will
be opportunities around land acquisition that we will have to look at closely. So yes, we
need to stay reasonably agile around that.
Gordon McLeod: The main thing really actually is that we're getting good feedback from
residents in both countries, so we've got a lot of confid ence from which to build from and
as Dave said earlier, we've got a really substantial forward order book, so we're chafing to
get back into it and we are.
Andrew Steele: (Jarden, Analyst) Great, thanks guys. And just one last one related to that.
Given these updated development expectations, can you give us a sense as to how you
think development CapEx, how much development CapEx might be for this year?
Gordon McLeod: Yes, look, we don't normally give development CapEx forecasts, but I
would expect it to be less than what it was this year. It might sort of be in the fives, and
that would hopefully be with actually more units than beds delivered.
That really reflects the fact we've done a lot of pre- civil works and preli minary works at a
number of other sites. I guess it's just getting a bit of advantage from that.
Andrew Steele: (Jarden, Analyst) That's great. Thank you very much, guys.
Operator: Thank you. The next question comes from Stephen Ridgewell with Craigs. Please
go ahead.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Yes, good morning. First of all,
credit for the team at Ryman with the way you've protected your residents during the
pandemic. I think it's clear the company's been a world leader on the [serious side] so well
done to you all.
Just in terms of my questions, actually Andrew's asked a few of them, but in terms of
recent trading, Gordon and David, you just mentioned...
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Okay. I'm not sure if you heard

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anything I said before, but I will start again. David, you mentioned resales were 131 units,
I think it was, for resales, since May. And that's up on last year. Are you saying new sales
improved also, and perhaps could you split - are you seeing any different trends between
the New Zealand and Australian businesses?
Gordon MacLeod: We're really seeing resales as the first ones out of the blocks, because as
you can imagine, Ridgey, from our resident point of view, it's nice being able to see a fully
completed, mature village. It's something that people can look at quickly and have that
confidence. I think for new sales, we're starting to see new sale transactions absolutely
occurring in the last couple of weeks particularly, and we've got great sites with stages
coming on.
The build program is really important to initiate again, because we've got $336 million of
unconditional sale contracts, where our residents are keen to move into our villages, and
they've really worked with us during COVID delays and so on. And I think other
prospective residents, they're going to enjoy seeing the building teams being
recommenced.
I suspect it might just take another few weeks for new sales to pick up at the same sort of
rate, actually.
David Kerr: I think, just on that, Ridgey, you saw the value of the needs-based portfolio,
because in the first couple of weeks where we came out of Level 4, the demand for our
serviced apartments was really strong, and independents have caught up on the resale
front, in probably the past couple of weeks. So, I think we'll see the same with the ne w
sales now, as Gordy said. It just shows that a good mix of portfolio is important.
Gordon MacLeod: Australian transactions are coming through. They're still in a bit of a
tougher lockdown than we are actually. So they're still getting a few cases each day and
that sort of thing, but our teams are absolutely transacting with people, and the villages
have good vibrancy back again, so they can very much see that things are changing for
the better in Victoria as well.
David Kerr: Stephen, I mentioned that part of it is that the resales will be to people whose
health needs or care needs are highest, and they can't delay, and so they will transact
more rapidly. Whereas if you're looking at a building that may not be completed for two or
three months, that's potentially a different market. You can imagine that the resales will
potentially be higher-need residents.

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Stephen Ridgewell: (Craigs Investment Partners, Analyst) That's helpful, thanks. Then I'd
also - we're seeing some operators offer promotional terms, if you like. Deferred
settlements or fee discounts. Is Ryman offering those sorts of promotions at all? Can you
talk us through what incentives you're offering or plan to offer, to get activity going again?
Gordon MacLeod: What we're doing, Stephen, is offering a set of terms and conditions that
are market leading. So for example, my perspective is, let's start with deferred
management fees. Now, deferred management fees are capped at 20% for your life in the
village as a resident. Now, I think in a situation where there's financial pressures on
families and other people, that some deferred management fees are different by, say, 5%
or 10%. If you apply that to say an $800,000-unit, people need to ask questions about
what does that $80,000 deliver? I think those sorts of questions will be scrutinised more
closely in these times. So, our Ryman Peace of Mind Gu arantees is around lower deferred
management fee, a fixed weekly fee for life, no-one's ever waited more than six months to
be repaid, and those sorts of things. Our terms really stand out.
The second thing is that obviously that with the large-scale care centres that we have.
Throughout COVID we've been able to offer people a huge amount of peace of mind and
very, very high-quality care, probably during the most trusted environment we've ever
experienced, where family couldn't see their loved ones for a number of weeks. That is a
very high-trust environment, and the feedback we've had has been great.
So I think that over COVID we have been able to build closer relationships with families
and our residents, enhance our brand. We already have what I would view as leading
terms in the sector. So, that's the basis on whi ch we are going to market.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Okay, that's helpful. Just on -
Andrew's already asked a few questions on CapEx plans, but just in terms of new site
acquisitions, it was interesting to see the site announcement on Takapuna today, just
given the context of the environment we're in. Was that a deal that was, if you like,
cemented a few months ago, before COVID, or is that a relatively recent agreement, and
should we read that as, right, Ryman's going back in the market?
Can you hear me?
Gordon MacLeod: We were delighted to buy that site, Stephen. I guess the only thing that
we could ever argue about if it's in a pre- or post-COVID environment is, might the price
being slightly different, but the bottom line is, that site is a cracker, and we wanted it. It's
really great that it's got the existing resource consent on it. With the levels and style, it

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actually looks really good. So, we'll make some enhancements to it and make some
changes, and then we'll look to get it into the pipeline. You can see from the photograph
we showed, it's really beautiful.
I think that during these times, obviously subject to capital constraints, and clearly we'd be
careful about committing to large cash outflows for land any time probably in the next six
to 12 months. There's lots of different ways we can deal with vendors to make sure that
they achieve what they want to achieve, and so do we. So, we're still having land being
brought to the board for review, actively so, and it's an important part of our growth.
We're not pulling back on our long-term growth.
David Kerr: Stephen, we had a Board meeting, several days this week. We had a good
stream of bits of land coming up, but one of the interesting comments from one of the
directors was, it's really good to miss out on something we want from time to time,
because it reinforces to you that in fact you're not paying over the top, you know? So we
do miss out from time to time, and it is a good thing. I had been, at times, thinking it
wasn't such a good thing, but there you are.
Stephen Ridgewell: (Craigs Investment Partners, Analyst) Okay. Then just maybe one final
one. Just one debt levels, and I can appreciate this a pretty unusual period. Settlements
have, at least for a period of time, have been unusually impacted and that has pushed up
net debt a bit higher than what the market was thinking, particularly pre-COVID.
With gearing at 42.6%, just interested in how the Board and management think about a
comfortable gearing ratio? Are you comfortable up at that 45% level, or just if you could
give us a steer on how the company's thinking about managing that debt gearing ratio?
Gordon MacLeod: The thing that we monitor most closely, Stephen, is the composition of
the debt. The vast majority of it is around the land bank and the work in progress that we
have at different sites. Obviously, we have timing differences where we invest in
ref urbishments at different villages and that sort of thing, or invest in myRyman. But the
vast majority of it is purely work in progress, reflecting our land bank and what we're
doing at sites. Given how much cash we free up each time we complete a village, that's
how we get the most comfort from debt. We do look at the amount of recurring income we
get from resales, deferred management fees and care-free income, because obviously that
provides good surety over servicing of debt, even without development margin actually.
So that makes us really comfortable with our debt levels, because we know that we're only
really incurring debt to make productive assets, which will fundamentally recycle capital

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and create a very long tail of growing earnings.
That's one of the reasons why Dave, at his presentati on, talked about even if we're doing
nothing else, our existing portfolio will increase in annual earnings by about $100 million,
just from our current villages maturing without any further expenditure. Then with the
overall rest of the land bank itself generating $4.4 billion at that 8% return, $350 million
wasn't it, they’re substantial amounts of recurring income that run into our portfolio. So,
we're happy to incur the work in progress required to do that. Of course, we are expanding
into a new state.
We do keep a careful eye on debt, of course. It's the right thing to do, and that's one of
the reasons why we've extended our syndication facility during March, to $2.3 billion. We
have an incredibly supportive range of bankers. As you'd expect, we are also and always
looking at maybe one or two different ways, through different debt type arrangements, to
diversify those funding lines.
Operator: Thank you. The next question comes from Jeremy Kincaid with UBS. Please go
ahead.
Jeremy Kincaid: (UBS, Analyst) Good morning, guys. Just following on from Ridgey's
question, it sounds as though recycling capital is probably one of the most important
things the banks are looking at. So, I suppose if worst case scenario, sales did slow or dry
up, what sort of levers would you be keen to pull first to encourage more sales? Would it
be price, age, incentives; can you let us know an idea on that?
Gordon MacLeod: No. I don't want to go into what our market reaction might be, other
than obviously Jeremy, we would be very mindful. Look one of the things that I'd be really
mindful of is making sure that we don't continue to build too much. If demand dried up,
the most important thing would be to not commit to another apartment building if there
weren't enough presales going on, or if there weren't enough sold in the previous one.
So I think that's the most important thing s that we do around managing our debt. If we -
we've obviously got land that we haven't committed to, I guess that's a potential. And
fundamentally the best way to just progressively over time sell units, is to do a great job
and to price them reasonably in the market so that people can free up capital.
I guess the graph that Dave showed earlier demonstrates that people have got pretty good
headroom there, and also the serviced apartments are incredibly affordable. So, don't
want to sound remotely complacent, because we're not. We're watching it all the time. If

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we needed to be a bit more responsive, then clearly we would be. But we see that the
fundamental selling points of what we do and pricing units fairly so that people can free up
capital is really our best strategy that we are very focused on.
Also we have that very strong forward book of $337 million worth of contracts. So we
matched that against our construction pipeline very closely. We do watch that. And if you
als o look at our existing portfolio, our embedded sort of gains in there at the moment are
$860 odd million worth of resale bank, about $440 million of accrued DMF as well, so there
is another $1.3 billion of pent up cash in the existing portfolio.
David Kerr: So that natural buffer that exist from wha’s realised from the sale of their
home and what our pricing is, is really important. But I think as Gordy is suggesting, the
fact that the vast majority of these people are 80 or more and they have a need, they
have a healthcare or a supportive need, so it's a needs-based decision.
So I think that that really means that people can make the decision because of the buffer
and they actually have a need that mean they are not prepared to delay. We've been
through difficult real estate times in the past and we've managed before so I think that
we'll be fine.
Jeremy Kincaid: Okay. Second question. Just on the value of contracts not yet settled, it
jumped up a little bit this year, was that a steady increase throughout the year or did the
jump ups really occur because of the Coronavirus issues?
Go rdon MacLeod: No, it was a steady increase during the year and really represents the
fact that we are preselling well out. For example, probably about $70 million or something
of those related to the first couple of stages at Burwood East in Melbourne.
And there's also - some of it actually, I think, $276 million is stages that we'll complete by
31 March 2021 . And then the balance is actually going right into the following year. So
we're sort of preselling well out actually which is great.
And our sales advisors have done a terrific job, well done guys, of making sure that our
residents have been really well looked after during lockdown, good communications, and
they're really looking forward to coming into those stages when they're complete.
Operator: Thank you. The next question comes from Jeremy Simpson with Forsyth Barr.
Please go ahead.
Jeremy Simpson: (Forsyth Barr, Analyst) Good morning guys. Hopefully you can hear me
loud and clear. Firstly, yes, well done on a good performance in terms of looking after your

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residents and your staff through this period. So that's great and certainly a market leader
and effective leader and all that sort of thing which is awesome.
In terms of some questions, just not too many from me but I guess I'm interested in I
guess your current thoughts around margins. Development and resales margins in this
environment. Year on year they came back a little bit but are still comfortably within your
target range. Is there any thoughts around the near term trajectory of those?
Gordon MacLeod: Yes, look, I think with development margin, that was a very good year
we have just had. So I would assume more development margin within the target range in
the year ahead in the 20s to 25s. You know, in that sort of region.
I think we've had a couple of years of really strong margin as we've had some exceptional
villages come through. But look, we've got a broader range across 12 sites now, Jeremy,
and I would expect the margin to just be more in where we would normally target.
And we wouldn’t see that as a negative. Probably the last just couple of years have been
really good.
Jeremy Simpson: (Forsyth Barr, Analyst) All right. And just on the construction side of
things, any initial throughs around perhaps some opportunities around construction costs
given the outlook? There's a lot of activity still happening but it doesn't look like there's a
lot of follow up activity if you like in terms of construction in New Zealand. I'm talking
outside of the [cur rent?] sector.
So any opportunities there? plus in Melbourne, around construction costs.
Go rdon MacLeod: Yes. Well look, it appears though, Jeremy, that the environment for
building from a cost and also labour supply point of view may be quite good over the next
two years.
It's always hard to predict of course. Governments do do things like commit to a massive
horizontal infrastructure projects and all that sort of thing. You're not quite sure where the
resource comes from.
But, certainly in residential and sort of midrise commercial, those are two sectors which
look like they'll be under a bit of pressure. And look, that's the sort of work that we're
going to be doing. So we're starting to see the first glimpses of perhaps a little bit of price
pressure coming off.
Certainly in the last three years, particularly in Auckland, there's been significant price rise

June 12, 2020

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pressure as everybody knows about, and resource pressure. In Melbourne, it's been not as
bad actually. So I'm not sure whether Melbourne will change significantly or not. But
hopefully New Zealand will have more resource availability and perhaps sort of more
settled price. But it's early days of course.
Jeremy Simpson: (Forsyth Barr, Analyst) Cool. And just lastly from me, just on the
regulatory/political environment in New Zealand. Where do you think your - I mean it's still
a funding shortfall I guess, particularly around nurses.
I mean you've had some extra costs with COVID clearly and a little bit of extra funding
associated with COVID but how do you think the sector is tracking from a regulatory sort
of lobbying perspective and the ability to perhaps get better funding, certainly around
nurses, over the sort of near to medium term?
Any sort of thoughts on how that's tracking?
Gordon MacLeod: Well how it's tracked to date this year has not been very good. The
sector wanted to receive around about $80 million which was built up in a very detailed
specific way through the finance people in the sector, which was shared with the Ministry
of Health officials of $80 million relating to COVID.
And the Government funding response was $26 million. Which I think worked out as about
the same as two takeaway cups of coffee per resident per day over a 12-week period. So I
would regard that, given the massive costs involved, I think that that is very low, actually.
But of course, there's more to come. There's a negotiation currently underway with the
aged care related contract groups between the 21 DHBs and the aged care sector. That fee
increase, whatever it is, will be effective from 1 July. Don't know what that's looking like at
the moment, Jeremy, however there wasn't much - well, there was nothing for aged care
in the budget that I can recall. So that's a shame given that I think this is probably a time
where I think really aged care has shown be an extremely effective part of the health care
system and also really a cost-effective part of the health care system.
I guess what I hope for is that there's a better dialogue with the Ministry, Governments,
DHBs, health care, as it becomes a much more important part of how we deliver health
care in New Zealand and particularly with COVID sort of hanging around. I don't hold out
any massive short-term hopes though of any significant funding changes, I have to say,
because I believe that would have probably been settled in the Budget if that was the
case.

June 12, 2020

Page 25 of 27
Operator: Thank you. The next question comes from Shane Solly with Harbour Asset
Management. Please go ahead.
Shane Solly: (Harbour Asset Management, Analyst) Good morning, guys, and I would just
like to echo the thoughts of the other callers that you have done a stunning job in what is
a very challenging time, so congratulations to your team.
I would just like to understand a little bit more about if there is further COVID waves, how
you would approach or deal with this. What have you learnt from the last few months and
how has that changed the way you would perhaps approach dealing with additional waves?
Gordon MacLeod: So the first thing we’d do if there's additional waves, we would shut the
vil lages down immediately. We would deploy masks, and any interaction with residents
immediately. All of our infection control procedures would be re-escalated, for example, if
there was a new admission they would be admitted for 14-days isolation in their room. We
would be insisting on COVID tests for any new admissions into aged care or serviced
apartments and ideally independent living units. That's been a bit of a challenge with the
DHBs actually, but the screening tests they introduced did help to make that more
frequent.
I think they'd want to see more testing availability for staff, new staff and probably
randomised testing of staff. I think one of the optimistic things from what we have been
through is that we've learnt to do actually some pretty simple protocols that can benefit all
of us. Even if you've taken out the complications of aged care, handwashing, distancing,
wearing a mask - the World Health Organisation has confirmed that mask-wearing is a
really helpful, good thing to do. Contact tracing, wearing surgical masks at least all of the
time if you're caring for people.
So, there's a bunch of stuff that I think we now know that we've got the equipment for,
the resources, we've done, we've trained, reducing visitors. I think we would move and be
able to movereally quick and our residents would want us just to make sure that safety
factor was in place. Obviously, I really hope we don't go back there, but you never know,
do you, this is an unknown time.
David Kerr: Exactly, we'd go back, Shane, to exactly the situation we had previously and
we'd hope for some higher level of cooperation around testing of residents before they
moved in, and testing of staff. I feel a high level of anxiety after seeing the television 1
News last night around the relatively loose arrangements that exist for people in
quarantine. I just feel that this could jeopardise the COVID-fre e status that we have. We

June 12, 2020

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are very aware of it, yes.
Gordon MacLeod: We'd like to see more - the fundamental thing we'd like to see is more
testing in aged care for new people coming in and new staff. That would be great. It's
great we have the capacity for it and we should be doing it. Actually, we've been insisting
on it, but it's been too much of a fight.
Look, we're running out of time, but if we take one more question and then we'll close.
Operator: The last question comes from Kirinjoat Bhalla with North Shore Corporate
Nominees. Please go ahead.
Kirinjoat Bhalla: (North Shore Corporate Nominees) Good morning, guys. Wonderful result
under the circumstances. A couple of questions. I'm based in Australia, alt hough a Kiwi,
and a couple of questions relative from that perspective. Any intentions of obtaining a
secondary listing in Australia?
David Kerr: I think your question was whether there's any intention to have a listing, a
secondary listing in Australia. Look, we've talked about that at times but to date we
haven't felt a need to do that. We're getting good volumes of trading and so we haven't
felt that's necessary.
Gordon MacLeod: So it's not something that we're actively looking at and we haven't
explored it for a long time.
Kirinjoat Bhalla: (North Shore Corporate Nominees) Now, there was a Royal Commission
on aged care in Australia. Was Ryman involved in that and has there been any feedback
from that Royal Commission?
Gordon MacLeod: So we submitted to the Co mmission at the start of last year by writing
and what we focused on was the fact that we don't believe that the aged allocation round
where people are allocated free aged care bed licences is a very ... and then keep them
and potentially don't use them for a long, long time and then if they decide not to use
them, to make an economic gain by selling them, we don't believe that that is a very
effective market for older people in Australia or obviously Victoria, where we operate.
For example, in the last year we've paid A$13 million for new bed licences off providers
who received those licences for free from the Government and then sold them to us on an
open market. Now, they're obviously very welcome to do that. From a resident's point of
view though, you have to ask the question what's the best thing for the resident, and I
think the best thing for residents in any nation in relation to aged care is that new

June 12, 2020

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providers are encouraged to come in and innovate and to be able to provide their version
of care which they think works and for the consumer to then decide, to have the
opportunity to make that decision.
I think with any licensing regime which makes it difficult for new entrants and which puts a
financial barrier in place as opposed to what the emphasis should be, which is truly around
care provision and the ability to look after people, well, we fed back to the Royal
Commission yesterday in fact, Dave and Cheyne and Paul Sutton, that those were our
main points of feedback really, that we think that the bond system, the way that the
licensing works, really needs to open up to encourage innovation and new players and let
consumers decide what they would prefer.
David Kerr: In a bigger picture, sense, I think that fundamentally we would welcome
anything that raised the standards of care and the reputation of the sector, because some
of the stories were pretty harrowing to read that the Royal Commission presented. We
looked carefully at how we perform against some of the recommendations that have been
evident from the Commission and our staff ratios are in excess of what they are talking
about anyway. Look, it' s probably damaging to the sector's reputation and that's not good
for anybody, so we want to engage and want to see some outcomes from it.
David Kerr: Look, I'm sorry, we're probably out of time now so if you have questions that
have been answered then we'll get back to you. It's really my role to thank you for your
time and for giving us your attention today. As I've said, what a year. We look forward to
reporting back to you in six months' time. Thank you very much. Goodbye.
Go rdon MacLeod: Thanks everybody. Catch you later.
End of Transcript

D&O Ongoing Disclosure – G.A. Cumming Ryman Healthcare Results Webcast

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