Ryman reports audited full year underlying profit of $224.4

Full Year Results20 May 2021RYMHealthcare

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Results for announcement to the market
Name of issuer Ryman Healthcare Limited
Reporting Period Year to 31 March 2021
Previous Reporting Period Year to 31 March 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing operations $452,411 7.2%
Fair value movement of investment
properties
$416,847 188.6%
Total income $872,641 53.5%
Net profit/(loss) from continuing
operations
$423,061 59.8%
Total net profit/(loss) $423,061 59.8%
Underlying profit (non-GAAP) – see
explanation below
$224,449 -7.3%
Interim/Final Dividend
Amount per Quoted Equity Security 13.6 cents
Imputed amount per Quoted Equity
Security
Not imputed
Record Date 4 June 2021
Dividend Payment Date 18 June 2021
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security (cents per share)
557.4 452.6
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Underlying profit is a non-GAAP (Generally Accepted Accounting
Principles) measure and differs from NZ IFRS profit for the year.
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 includes realised movement on investment
property for units in which a right-to-occupy has been sold during
the period and for which a legally binding contract is in place at the
reporting date. The occupancy advance for these units may have
been received or be included within the trade receivables balance at
reporting date.

Underlying profit excludes deferred taxation, taxation expense,
unrealised movement on investment properties, and impairment
losses on non-trading assets because these items do not reflect the
trading performance of the Company. Underlying profit determines
the dividend pay-out to shareholders.
Authority for this announcement
Name of person authorised to make
this announcement
David Bennett
Contact person for this
announcement
David Bennett
Contact phone number +64 3 366 4069
Contact email address david.bennett@rymanhealthcare.com
Date of release through MAP 21 May 2021

Audited financial statements accompany this announcement.

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

MEDIA RELEASE May 21, 2021
Ryman reports audited full year underlying profit of $224.4 million
Key points:
• Audited underlying profit $224.4 million, 7.3% down due to COVID-19 challenges
• Audited reported (IFRS) profit increased 59.8% to $423.1 million, due to investment
property revaluations
• Final dividend of 13.6 cents, taking the full year dividend to 22.4 cents per share, 50%
of underlying profit.
• Ryman has returned more than $1.03 billion to shareholders since it listed in 1999,
when it raised $25 million
• Record final quarter new sales and resales as market recovers
• Total assets of $9.17 billion, up 19.5%
• Continued strong demand for aged care in New Zealand and Victoria, mature care
occupancy at 97%
• Only 1.4% of resale units unsold at the end of March
• Five villages opened in Victoria by December 2020
• Three new sites purchased, one in Melbourne and two in New Zealand
• No cases of COVID-19 to date among 12,500 residents and 6,100 staff across New
Zealand and Victoria

Ryman Healthcare has reported a full year underlying profit of $224.4 million, with a second
half recovery driven by record sales.
Audited reported (IFRS) profit, which includes unrealised fair value gains on investment
property, increased 60% to $423.1 million in the year to March 31, 2021.
Shareholders will receive a final dividend of 13.6 cents per share, taking the total dividend
for the year to 22.4 cents per share, which is 50% of underlying profit. The record date for
entitlements is June 4, and the dividend will be paid on June 18, 2021.
Chief Executive Gordon MacLeod said transactions and building activity had recovered after
a challenging first half due to COVID-19.
“We bore the brunt of the COVID-19 lockdowns in the first half. In the final quarter we
achieved record new sales and resales, which was no mean feat after a tough year.’’
“I couldn’t be more proud of how the team has performed – not only to keep COVID-19
out of all of our villages and keep everyone safe – but also to power through and keep on
innovating, developing and growing,’’ Mr MacLeod said.

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

In December Ryman achieved its long-term target of having five villages open in Victoria by
the end of 2020, and Ryman has another six villages in the pipeline in Australia.
Ryman has bought new village sites at Essendon in Melbourne, and at Karaka and Cambridge
in New Zealand. Ryman has sold its Coburg site in Melbourne after opting to buy a more
attractive site in nearby Essendon.
Approval was received to build new villages at Ringwood East in Melbourne, Northwood in
Christchurch and two Auckland villages at Takapuna and Kohimarama.
Ryman’s total assets grew by 19.5% during the year. The company has diversified $825
million of debt funding.
A NZ$150 million retail bond issue in New Zealand, a US$300 million USPP private debt
placement and an A$250 million institutional term loan were all oversubscribed, Mr
MacLeod said.
“The debt issuances allowed us to take our plans to a wider audience of funders and we
were delighted with the response. We ended the year with a stronger balance sheet, and
new diversified long-term debt funding with weighted average tenor of nine years with
plenty of headroom.
“We have had record cash collections of $1.18 billion during the year to support our largest
ever building programme, and we are planning to have 14 villages under construction, seven
in Australia and seven in New Zealand later this year.
Ryman’s integrated villages and high-quality care continued to be in strong demand, with
care occupancy in established villages running at 97%.
Only 1.4% of Ryman’s portfolio was available for resale at March 31, down from 1.9% at
September 30, 2020. Ryman built 736 new beds and units during the year.
Chairman Dr David Kerr said a highlight was the response to the COVID-19 vaccine
rollout, with both residents and staff jumping at the chance to get vaccinated.
“Getting vaccinated is the best thing anyone can do to keep themselves and their loved ones
safe,’’ Dr Kerr said.
“We’re achieving care resident vaccine rates above 95%, which is really pleasing.’’
“Our villages are safe havens for older people where they can expect to live well and with
the best of care on hand if they need it. The COVID pandemic has made this security about
the future top of mind for older people, and we expect demand will continue to grow.’’
Ryman’s development pipeline of 25 new villages would provide homes for more than 6,800
residents and would generate anticipated capital proceeds of $5.3 billion with recurring
income of $420 million, subject to market conditions and consenting outcomes.
“With the vaccine rollout in full swing and huge potential in our pipeline of new villages,
we’ve put ourselves in a tremendous position for the years ahead,’’ Dr Kerr said.
Ryman will have returned more than $1.03 billion to shareholders since listing in 1999 after
its next dividend is paid on June 18. In 1999 Ryman raised $25 million from investors.

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

Twelve new villages currently under construction:
New Zealand Australia
Lynfield, Auckland (Murray Halberg) Brandon Park, Melbourne (Nellie Melba)
Devonport, Auckland (William Sanders) Burwood East, Melbourne (John Flynn)
River Rd, Hamilton (Linda Jones) Highton, Geelong, Victoria (Charles Brownlow)
Lincoln Rd, Auckland (Miriam Corban) Ocean Grove, Victoria
Havelock North, Hawkes Bay (James Wattie) Aberfeldie, Melbourne
Hobsonville, Auckland (Keith Park)
Riccarton Park, Christchurch

Sites in the land bank:
New Zealand Australia
Kohimarama, Auckland Highett, Melbourne
Bishopspark/Park Terrace, Christchurch Ringwood East, Melbourne
Northwood, Christchurch Mt Eliza, Victoria
Karori, Wellington Mt Martha, Victoria
Newtown, Wellington Essendon, Melbourne
Takapuna, Auckland
Karaka, Auckland
Cambridge, Waikato

About Ryman: Ryman Healthcare was founded in Christchurch in 1984 and owns and
operates 41 retirement villages in New Zealand and Australia. Ryman villages are home to
12,500 residents, and the company employs 6,100 staff.
Contacts: For investor relations information contact Michelle Perkins, Investor Relations
Manager, on 027 222 9684 (+64 27 222 9684) or email
michelle.perkins@rymanhealthcare.com
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

RYMAN HEALTHCARE LIMITED
KEY STATISTICS

Mar 21 Mar 20

Full Year Full Year

Audited Audited

Underlying profit (non-GAAP)
1
$m 224.4 242.0
Unrealised fair-value movement on
retirement-village units $m

201.2 (70.9)
Deferred tax movement $m 12.6 93.6
Impairment – loss on disposal $m (15.1) -
Reported net profit after tax $m 423.1 264.7

Net operating cash flows $m 413.1 449.8

Earnings per share - basic and diluted cents 84.6 52.9
Dividend per share cents 22.4 24.2
Net tangible assets - basic and diluted cents 557.4 452.6

Sales of Occupation Right Agreements

New sales of occupation rights no. 503 513
Resales of occupation rights
no. 925 923
Total sales of occupation rights no. 1,428 1,436

New sales of occupation rights
$m 395.1 386.7
Resales of occupation rights $m 498.0 483.2
Total sales of occupation rights $m 893.1 869.9

Portfolio:

Aged-care beds no. 4,087 3,911
Retirement-village units no. 7,983 7,423
Total units and beds no. 12,070 11,334

Land bank (to be developed)
2

Aged-care beds
no. 1,592 1,891
Retirement-village units no. 4,554 4,704
Total units and beds no. 6,146 6,595

1
Underlying profit is a non-GAAP* measure and differs from NZ IFRS profit for the year. 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 includes realised movement on investment property for units in which a right-to-occupy has been sold during the period
and for which a legally binding contract is in place at the reporting date. The occupancy advance for these units may have been received or be
included within the trade receivables balance at reporting date.

Underlying profit excludes deferred taxation, taxation expense, unrealised movement on investment properties, and impairment losses on
non-trading assets because these items do not reflect the trading performance of the Company. Underlying profit determines the dividend
payout to shareholders.

2
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 2021

Notes 2021 2020 Variance
$000 $000 %

Care fees 359,241 333,398 7.8%
Management fees 93,170 88,713 5.0%
Interest received 103 547 -81.2%
Other income 3,280 1,225 167.8%
Total revenue 455,794 423,883 7.5%

Fair-value movement of investment properties 4 416,847 144,438 188.6%
Total income 872,641 568,321 53.5%

Operating expenses (395,306) (349,249) 13.2%
Depreciation and amortisation expense (32,368) (28,616) 13.1%
Finance costs (19,365) (19,309) 0.3%
Loss on disposal (15,102) - 0.0%
Total expenses (462,141) (397,174) 16.4%

Profit before income tax

410,500 171,147 139.9%
Income-tax credit

12,561 93,563 -86.6%
Profit for the year

423,061 264,710 59.8%

Earnings per share

Basic and diluted (cents per share) 7 84.6 52.9 59.8%

Consolidated statement of comprehensive income
For the year ended 31 March 2021

2021 2020
$000 $000

Profit for the year 423,061 264,710

Items that will not be later reclassified to profit or loss
Revaluation of property, plant and equipment (unrealised) 195,793 -
195,793 -
Items that may be later reclassified to profit or loss

Fair-value movement and reclassification of cash flow hedge
reserve

7,057 (10,416)
Deferred tax movement recognised in cash flow hedge
reserve (1,976) 2,916
Movement in cost of hedging reserve 3,753 -
Deferred tax movement in cost of hedging reserve (1,051) -
(Loss)/Gain on hedge of foreign-owned subsidiary net assets (4,414) 1,205
Gain/(Loss) on translation of foreign operations 16,546 (5,674)
19,915 (11,969)

Other comprehensive income 215,708 (11,969)
Total comprehensive income 638,769 252,741
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 2021

Issued
capital
Asset
revaluation
reserve
Cash flow
hedge
reserve
Cost of
hedging
reserve
Foreign-
currency
translation
reserve
Treasury
stock
Retained
earnings
Total
equity

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

Balance at
1 April 2019 33,290 257,775 (9,643) - (5,876) (27,465) 1,922,049 2,170,130
Profit for the year - - - - - - 264,710 264,710
Other comprehensive
income for the year - - (7,500) - (4,469) - - (11,969)
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)
Balance at
31 March 2020 33,290 257,775 (17,143) - (10,345) (32,359) 2,069,759 2,300,977

Balance at
1 April 2020 33,290 257,775 (17,143) - (10,345) (32,359) 2,069,759 2,300,977
Profit for the year - - - - - - 423,061 423,061
Other comprehensive
income for the year - 195,793 5,081 2,702 12,132 - - 215,708
Total comprehensive
income for the year
- 195,793 5,081 2,702 12,132 - 423,061 638,769
Treasury stock
movement - - - - - (3,030) - (3,030)
Dividends paid to
shareholders - - - - - - (107,500) (107,500)
Balance at
31 March 2021 33,290 453,568 (12,062) 2,702 1,787 (35,389) 2,385,320 2,829,216

The accompanying notes form part of these financial statements.

3

RYMAN HEALTHCARE LIMITED
Consolidated balance sheet
At 31 March 2021

Notes 2021 2020
$000 $000

Assets
Cash and cash equivalents 20,171 34,374
Trade and other receivables 542,798 425,942
Inventory 26,738 -
Advances to employees 11,141 10,224
Property, plant and equipment 3 1,658,583 1,386,072
Investment properties 4 6,837,278 5,760,060
Intangible assets 42,444 38,119
Deferred tax asset (net) 32,456 22,455
Total assets 9,171,609 7,677,246

Equity
Issued capital 7 33,290 33,290
Reserves 410,606 197,928
Retained earnings 2,385,320 2,069,759
Total equity 2,829,216 2,300,977

Liabilities
Trade and other payables 9 106,072 183,975
Employee entitlements 32,034 25,678
Revenue in advance 71,817 64,301
Derivative financial instruments 28,611 23,809
Refundable accommodation deposits 113,666 74,571
Interest-bearing loans and borrowings 2,274,093 1,741,613
Occupancy advances (non-interest bearing) 5 3,702,215 3,247,177
Lease liabilities 13,885 15,145
Total liabilities 6,342,393 5,376,269

Total equity and liabilities 9,171,609 7,677,246

Net tangible assets
Basic and diluted (cents per share) 7 557.4 452.6

The accompanying notes form part of these financial statements.

4

RYMAN HEALTHCARE LIMITED
Consolidated statement of cash flows
For the year ended 31 March 2021

Notes 2021 2020
$000 $000

Operating activities
Receipts from residents 1,176,401 1,129,933
Interest received 229 573
Payments to suppliers and employees (421,135) (345,765)
Receipt from Government for wage subsidy 14,227 -
Repayment to Government for wage subsidy (14,227) -
Payments to residents (323,810) (315,903)
Interest paid (18,566) (19,047)
Net operating cash flows 2 413,119 449,791

Investing activities
Purchase of property, plant and equipment (219,416) (265,177)
Purchase of intangible assets (9,462) (9,712)
Purchase of investment properties (577,504) (401,612)
Capitalised interest paid (37,179) (34,911)
Advances to employees (917) (2,071)
Net investing cash flows (844,478) (713,483)

Financing activities
(Repayment)/drawdown of bank loans (net) (36,713) 421,874
Proceeds from the issue of retail bonds 150,000 -
Proceeds from US Private Placement notes 416,874 -
Dividends paid (107,500) (117,000)
Purchase of treasury stock (net) (3,029) (4,895)
Repayment of lease liabilities (2,476) (1,913)
Net financing cash flows 417,156 298,066

Net (decrease)/increase in cash and cash equivalents (14,203) 34,374
Cash and cash equivalents at the beginning of the year 34,374 -
Cash and cash equivalents at the end of the year 20,171 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 2021

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 2021 have been extracted from the audited annual
Group financial statements for the year ended 31 March 2021 and have been prepared to satisfy the Group’s
NZX reporting obligations.

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 20 May 2021.

The information is presented in thousands of New Zealand dollars.

Adopting new and amended standards and interpretations

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

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 2021.

COVID-19

The outbreak of COVID-19, declared by the World Health Organization as a global pandemic on
11 March 2020, 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
ongoing impact of the virus on market conditions in New Zealand and Australia. In Australia, Victoria has
been through two waves of infection and corresponding lockdowns, succeeding in reducing the spread of
infection, and New Zealand has responded with localised increases in alert level to supress transmission of
the virus.

Throughout the pandemic the Group’s primary focus has been to protect the safety of both residents and
staff. When necessary access restrictions have been put in place at villages, additional personal protective
equipment has been procured for staff, and other costs incurred in supporting residents and staff.

Under lockdown conditions the ability of new residents to enter villages is limited, meaning fewer sales can
be settled, and the restrictions at development sites results in construction activity being reduced. The Group
continues to adapt its policies and procedures to operate in the conditions created by COVID-19.

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.

6

RYMAN HEALTHCARE LIMITED
Selected notes to the consolidated financial statements (continued)
For the year ended 31 March 2021

2. Reconciliation of net profit after tax with net cash flow from operating
activities
2021 2020
$000 $000

Net profit after tax 423,061 264,710

Adjusted for:
Movements in balance sheet items
Occupancy advances 518,292 482,962
Accrued management fees (59,116) (64,051)
Refundable accommodation deposits 32,470 40,558
Revenue in advance 7,515 6,456
Trade and other payables 4,845 5,507
Trade and other receivables (92,565) (81,124)
Inventory (26,738) -
Employee entitlements 6,356 1,844

Non-cash items:
Depreciation and amortisation 29,892 26,829
Depreciation of right-of-use assets 2,476 1,787
Loss on disposal 15,102 -
Deferred tax (12,561) (93,563)
Unrealised foreign-exchange (gain)/loss (19,063) 2,314

Adjusted for:
Fair-value movement of investment properties (416,847) (144,438)

Net operating cash flows 413,119 449,791

Net operating cash flows includes net occupancy advance receipts from retirement-village residents of
$7 87.7 million (2020: $755.3 million).

Also included in operating cash flows are net receipts from refundable accommodation deposits of
$27.9 million (2020: $41.1 million).

Net operating cash flows also include management fees collected of $48.0 million (2020: $44.6 million).

7

RYMAN HEALTHCARE LIMITED
Selected notes to the consolidated financial statements (continued)
For the year ended 31 March 2021

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 2021, in line with NZ IFRS 13 – Fair Value Measurement. 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 11.0 percent to
15.0 percent), together with observed transactional evidence of the market value per care bed (ranging
from $70,000 to $230,000 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.

Uncertainty due to COVID-19

The valuation of completed resthomes and hospitals performed by CBRE Limited at 31 March 2021 is based
on the information available to them at the time of the valuation and relies on several inputs.

Given the current situation with COVID-19 there is an increase in the estimation uncertainty in
determining the fair value of completed resthomes and hospitals at 31 March 2021 compared to previous
valuations.

CBRE comment that the ultimate economic impact COVID-19 will have on the aged care sector is
unknown and will depend on both the scale and longevity of the pandemic, future outbreaks, and the lock
down responses of the Governments in New Zealand, Victoria and Australia.

Given the heightened uncertainty and unknown impact that COVID-19 may have in the future, a higher degree
of caution should be exercised when relying upon the valuation. Values and incomes may change more rapidly
and significantly than during standard market conditions.

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

Disposal of land

During the year, the Group sold the land in Coburg, Melbourne. The sale led to a loss on disposal of $15.1
million which has been recognised in the income statement.

8

RYMAN HEALTHCARE LIMITED
Selected notes to the consolidated financial statements (continued)
For the year ended 31 March 2021

4. Investment properties
2021 2020
$000 $000
At fair value
Balance at beginning of financial year 5,760,060 5,081,607

Additions 624,926 541,272
Fair-value movement:
Realised fair-value movement:
• new retirement-village units
108,377 105,757
• existing retirement-village units
107,317 109,565
215,694 215,322
Unrealised fair-value movement 201,153 (70,884)
416,847 144,438

Net foreign-currency exchange differences 35,445 (7,257)

Net movement for the year 1,077,218 678,453

Balance at end of financial year 6,837,278 5,760,060

The realised fair-value movement arises from the sale and resale of rights to occupy 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 Measurement.

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 2021. 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 2021 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 2021 compared to previous years.

The material valuation uncertainty within the New Zealand and Australian valuations at 31 March 2020 has
been removed. This has been replaced with CBRE commenting on higher than normal market uncertainty
within their valuations.

Given the heightened uncertainty and unknown impact that COVID-19 may have in the future, a higher degree
of caution should be exercised when relying upon the valuation. Values and incomes may change more rapidly
and significantly than during standard market conditions.

Comparable transactions and market evidence has been limited during the pandemic and CBRE have placed
less reliance on previous market evidence for comparison purposes.

9

RYMAN HEALTHCARE LIMITED
Selected notes to the consolidated financial statements (continued)
For the year ended 31 March 2021

4. Investment properties (continued)
To reflect this uncertainty CBRE Limited adjusted their assumptions on recycle frequencies for independent
units at mature villages, near-term house price inflation for independent units, and discount rates in their
valuation at 31 March 2020. As the level of uncertainty has decreased and markets have become more
accustom to operating under COVID-19 conditions, CBRE have reversed some of the adjustments in
determining the valuation at 31 March 2021.

Key assumptions

The valuer used significant assumptions that include house-price inflation (ranging from 0.5 percent to 4.20
percent nominal) (2020: -2.0 percent to 3.5 percent) and discount rate (ranging from 12.00 percent to 16.50
percent) (2020: 12.25 percent to 16.25 percent).

Sensitivity

A 0.5 percent decrease in the discount rate would result in a $91.3 million higher fair-value measurement.
Conversely, a 0.5 percent increase in the discount rate would result in a $85.3 million lower fair-value
measurement.
A 0.5 percent decrease in the 5-year plus growth rate would result in a $168.7 million lower fair-value
measurement. Conversely, a 0.5 percent increase in the 5-year plus growth rate would result in a
$140.8 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 $653.0 million (2020: $508.2 million),
which has been valued at cost. For work in progress cost represents fair value.

10

RYMAN HEALTHCARE LIMITED
Selected notes to the consolidated financial statements (continued)
For the year ended 31 March 2021

5. Occupancy advances (non-interest bearing)
2021 2020
$000 $000

Gross occupancy advances (see below) 4,205,105 3,686,813
Less management fees and resident loans (502,890) (439,636)
Closing balance 3,702,215 3,247,177

2021 2020
$000 $000
Movement in gross occupancy advances
Opening balance 3,686,813 3,203,851
Plus net increases in occupancy advances:
• new retirement-village units
395,094 386,673
• existing retirement-village units.
107,317 109,566
Net foreign-currency exchange differences 21,807 (4,276)
Decrease in occupancy advance receivables (5,926) (9,001)
Closing balance 4,205,105 3,686,813

Gross occupancy advances are non-interest bearing.

The decrease in occupancy advance receivables shows the net movement in occupancy advance that has
resulted from:
• units that have been re-sold but the previous resident has yet to be repaid; and
• units that have been repaid but the unit remains unsold at balance date.

6. Dividend
On 21 May 2021 a final dividend of 13.6 cents per share was declared and will be paid on 18 June 2021. The
record date for entitlements is 4 June 2021.

7. Share capital
Issued and paid-up capital consists of 500,000,000 fully paid ordinary shares (2020: 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 (2020: 500,000,000 shares).
Shares purchased on market under the leadership share scheme are treated as treasury stock until vesting to
the employee.

8. Commitments
The Group had commitments relating to construction contracts amounting to $180.6 million at
31 March 2021 (2020: $200.9 million).

11

RYMAN HEALTHCARE LIMITED
Selected notes to the consolidated financial statements (continued)
For the year ended 31 March 2021

9. 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 2021 includes $26.0 million (2020: $102.4 million) for the purchase
of land.

10. 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 Australia Group
$000 $000 $000
Year ended 31 March 2021

Revenue 405,396 50,398 455,794

Underlying profit (non-GAAP) 192,286 32,163 224,449
Deferred tax credit 5,861 6,700 12,561
Unrealised fair-value movement 192,582 8,571 201,153
Impairment – loss on disposal - (15,102) (15,102)
Profit for the year 390,729 32,332 423,061

Non-current assets 7,230,298 1,340,463 8,570,761

New Zealand Australia Group
$000 $000 $000
Year ended 31 March 2020

Revenue 383,117 40,766 423,883

Underlying profit (non-GAAP) 199,877 42,154 242,031
Deferred tax credit 86,142 7,421 93,563
Unrealised fair-value movement (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

12

RYMAN HEALTHCARE LIMITED
Selected notes to the consolidated financial statements (continued)
For the year ended 31 March 2021

11. Subsequent events
The directors resolved to pay a final dividend of 13.6 cents per share or $68.0 million, with no imputation
credits attached, to be paid on 18 June 2021.

Refinance of loans and borrowings

Subsequent to 31 March 2021, the Group refinanced the NZD and AUD bank loan facilities. Following the
refinance, the facilities total $1.65 billion (NZD bank loan facility) and AUD$370 million (AUD bank loan
facility).

The Group also entered into an AUD$250 million, 7-year institutional term loan (ITL).

Following the refinance, the total interest-bearing loans and borrowing facilities of the Group (including
bank loans, retail bonds, USPP notes and ITL) are NZD$2.18 billion and AUD$652 million. The weighted
average maturity profile of the Group’s interest-bearing loans and borrowings is 4.79 years.

---

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 04/06/2021
Ex-Date 03/06/2021
Payment date 18/06/2021
Total monies associated with the
distribution
$68,000,000
Source of distribution Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.13600000
Gross taxable amount $0.13600000
Total cash distribution $0.13600000
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
$0.04488000
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 21 May 2021

---

11
Full year result
R Y M A N H E A L T H C A R E
31 March 2021

2
Full year highlights
Underlying profit* of $224.4 million, a
decrease of 7.3%
Reported (IFRS) profit of $423.1 million,
up 59.8%
Full year dividend of 22.4 cents per share,
reflecting 50% of underlying profit
We have now returned more than $1 billion to
shareholders since 1999
Cash receipts of $1.18 billion, up 4.1%
Total assets of $9.17 billion, up 19.5%
Net assets of $2.83 billion, up 23.0%
*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.

3
Full year underlying
profit
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.

77
Cameron Holland
CEO -Australia
Greg Campbell
Director
Chris Evans
Chief Construction Officer

1010

1111

1212
John FlynnCharles Brownlow
Nellie Melba
Weary Dunlop
Ocean Grove

1313
Site boundary is indicative only
Essendon, Melbourne

1414
Keith Park
James Wattie
Miriam Corban

1515
Murray HalbergWilliam Sanders
Linda Jones

1616
Takapuna, Auckland
Northwood, Christchurch
Kohimarama, Auckland

1717
KarakaCambridge
Site boundaries are indicative only

1818
Miriam Corban
Keith Park
Aberfeldie
John Flynn
Ocean Grove
Charles Brownlow
James Wattie
William Sanders
Nellie Melba
Linda Jones
Riccarton
Murray Halberg

1919
Development
pipeline
(Sept 2018)
VillagesDesign Consenting Council Construction VillageFinal
approval openstages
Nellie Melba
Murray Halberg
William Sanders
Linda Jones
Charles Brownlow
John Flynn
Aberfeldie
Mt Martha
Mt Eliza
Ocean Grove
Miriam Corban
Keith Park
James Wattie
Park Terrace
Newtown
Coburg
Karori

2020
Development
pipeline
(March 2021)
VillagesDesign Consenting Council Construction VillageFinal
approval openstages
Nellie Melba
Murray Halberg
William Sanders
Linda Jones
John Flynn
Charles Brownlow
Aberfeldie
Ocean Grove
Highett
Essendon
Mt Martha
Mt Eliza
Ringwood East
Miriam Corban
James Wattie
Keith Park
Riccarton Park
Takapuna
Park Terrace
Kohimarama
Karori
Newtown
Northwood
Cambridge
Karaka

2121

2222

2323

2424

27
Reported profit
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 includes realised movement on investment property for units in which a right-to-occupy has been sold during the period and for
which a legally binding contract is in place at the reporting date. The occupancy advance for these units may have been receivedor be included
within the trade receivables balance at reporting date.
Underlying profit excludes deferred taxation, taxation expense, unrealised movement on investment properties, and impairment-losses on non-
trading assets because these items do not reflect the trading performance of the Company. Underlying profit determines the dividend payoutto
shareholders.
Mar 21Mar 20
Underlying profit (non-GAAP)$224.4m$242.0m
Unrealised revaluations of investment properties+$201.2m-$70.9m
Deferred tax credit+$12.6m+$93.6m
Impairment -loss on disposal-$15.1m-
Reported net profit$423.1m$264.7m

28
Full year reported
(IFRS) profit

29
Cash receipts from
residents

30
Note: 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. These are for new sales
only.
Value of contracts
not settled

31
Investing cash flows
$844 million

32
Total assets
Note: Interest bearing debt represents “interest-bearing loans and borrowings” in the balance sheet and
includes secured bank loans, unsubordinated fixed-rate retail bonds and USPP notes. As documented in the
Group's facility agreement, the Group has a right to off-set cash balances held against bank debt. Included in
total interest bearing debt is total secured bank loans net of cash held at balance date.

33
Gross occupancy
advances

34
Debt profile and source of funding
Note: Debt profile and source of funding represents total interest-bearing loans and borrowings following the refinancing of theGroup’s NZD and AUD bank loan facilities and the entering
into of an A$250 million institutional term loan (ITL) which occurred subsequent to 31 March 2021.

35
Development margin

36
$1.15 billion 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.

37
Long-term capital efficiency
$25 million raised at IPO in 1999
Invested $5.24 billion in portfolio
since 1999 with no fresh capital
Dividends of over $1.03 billion
paid since float*
Self-funded growth
Strong balance sheet
*Includes final dividend of 13.6 cents per share that has been declared and is payable
on 18 June 2021.

3838
Questions

39
Appendix 1:
Full year highlights
Underlying profit* of $224.4 million, a decrease
of 7.3%
Reported (IFRS) profit of $423.1 million, up 59.8%
Full year dividend of 22.4 cents per share,
reflecting 50% of underlying profit
We have now returned more than $1 billion to
shareholders since 1999
Record final quarter for new sales and resales
Total assets of $9.17 billion, up 19.5%
Cash receipts of $1.18billion, up 4.1%
*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.

40
Appendix 1:
Full year highlights
Record $843.6 million invested in the portfolio
Resales bank of $1.15 billion underpins future
growth and market resilience
$53 million investment in COVID-19 measures
since January 2020
Continued strong demand for villages with
only 1.4% of resale stock unsold
97% occupancy at established care centres
5 villages opened in Victoria by December 2020
3 new sites purchased, one in Melbourne and
two in New Zealand

41
Appendix 2: Sale of occupation rights
Mar 21Mar 20
Existing units
Independent433425
Serviced492498
925923
New units
Independent412426
Serviced9187
503513
Total 1,4281,436

42
Appendix 3: Development
Mar 21Mar 20
Units and beds built
Retirement village units built560590
Aged care beds built176251
736841
Total retirement village units
Independent5,6935,264
Serviced2,2902,159
7,9837,423
Total aged care beds4,0873,911
Total retirement village units and beds12,07011,334

43
Appendix 4: Margins
Mar 21Mar 20
Reference$000s$000s
New sales
Realised fair value movement(Note 7)108,377 105,757
Sale of occupation rights(Key statistics)395,094 386,673
Gross development margin27%27%
Resales
Realised fair value movement(Note 7)107,317 109,565
Resale of occupation rights(Key statistics)498,037 483,190
Gross resales margin22%23%

44
Appendix 5: Cash management fees
Mar 21Mar 20
Reference$000s$000s
Accrued management fees and resident loans –opening(Note 14)439,636 376,161
Less: Accrued management fees and resident loans –closing(Note 14)(502,890)(439,636)
Movement in accrued management fees(63,254)(63,475)
Plus: DMF incomeIncome statement93,170 88,713
Plus: Revenue in advance movement(Note 23)7,515 6,456
Plus: GST / accommodation credit adjustment / FX movementNot disclosed4,010 (599)
Plus: Movement in resident loanNot disclosed6,592 13,486
Cash management fees48,033 44,581

45
Appendix 6: Investment property summary
CBRE unit price inflation assumption
Discount rate
As at 31 March 2021Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland1.7%1.0%2.1%3.0%3.5%12.8%
Rest of New Zealand1.6%1.0%2.0%2.7%3.4%13.4%
Victoria1.8%2.4%2.9%3.3%4.1%14.6%
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%
Victoria0.0%0.6%2.8%3.7%4.1%14.6%

46
Appendix 7: Operating cash flows
Mar 21Mar 20
$000s$000s
Resident receipts360,855 333,476
Refundable accommodation deposits (net)27,884 41,120
New sale of occupation rights330,503 305,540
Resales of occupation rights457,159 449,797
Total receipts from residents1,176,401 1,129,933
Interest received229 573
Payments to suppliers and employees(421,135)(345,765)
Payments to residents(323,810)(315,903)
Interest paid(18,566)(19,047)
Net operating cash per the cash flow statement413,119 449,791

47
Appendix 8: Available resales stock
*Uncontracted resales stock as a percentage of total retirement unit portfolio
Mar 21Sep 20Mar 20
Independent living units45 83 60
Serviced apartments69 61 67
Total resales stock114 144 127
Total retirement portfolio7,983 7,689 7,423
Uncontracted stock percentage *1.4%1.9%1.7%

48
Appendix 9:
Capital management
Note: Interest bearing debt represents “interest-bearing loans and borrowings” in the balance sheet and
includes secured bank loans, unsubordinated fixed-rate retail bonds and USPP notes. As documented in the
Group's facility agreement, the Group has a right to off-set cash balances held against bank debt. Included in
total interest bearing debt is total secured bank loans net of cash held at balance date.
Gearing ($m)Mar 21Sep 20Mar 20
Interest bearing debt$2,254 $2,109 $1,707
Net assets$2,829 $2,454 $2,301
Total assets$9,172 $8,337 $7,677
Interest bearing debt / (interest
bearing debt + equity)
44.3%46.2%42.6%
Interest bearing debt / total
assets
24.6%25.3%22.2%

49
Appendix 10: Resident average
age and tenure (years)
Average age (current)Mar 21Mar 20
Independent82.382.2
Serviced87.587.5
Care centre86.786.6
Average age (on entry)Mar 21Mar 20
Independent79.279.3
Serviced85.186.1
Average tenure (vacated units)Mar 21Mar 20
Independent6.05.7
Serviced2.83.0

50
Appendix 11:
Value of contracts
not booked
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.

51
Appendix 12:
Sales price versus
median house price
Note: The median house price reflects the average median house price over the last 6 months in the areas
surrounding our villages.

52
Appendix 13:
Average new and
resale price

53
Source: Ministry of Health. Large operators reflects aged care providers with 15 or more care centres. Data at
20 May 2021. New Zealand only.
Appendix 14: The ‘gold’
standard of care –4 year
certification

54
Appendix 15:
World population
growth 80+

55
Appendix 16:Eleven sites in Victoria
Ryman village
Under construction
Proposed village
Mount Eliza
Mount Martha
Ocean Grove
Charles Brownlow
Aberfeldie
Nellie Melba
John Flynn
Weary Dunlop
Essendon
Ringwood East
Highett
54

56
Appendix 17: Fourteen sites in Auckland
Ryman village
Under construction
Proposed village
Kohimarama
Murray Halberg
Miriam Corban
William Sanders
Grace Joel
Bert Sutcliffe
Edmund Hillary
Bruce McLaren
Logan Campbell
Keith Park
Evelyn Page
Possum Bourne
Takapuna
Karaka

57
Appendix 18: Asset base
New Zealand (ex Auckland)
VillageLocationHospitalDementiaResthomeServicedIndependentTotal
Anthony WildingChristchurch80 33 35 50 110 308
Bob OwensTauranga40 40 40 79 218 417
Bob ScottPetone40 40 34 89 254 457
Charles FlemingWaikanae40 40 40 79 201 400
Charles UphamRangiora40 40 40 93 261 474
Diana IsaacChristchurch40 40 40 79 256 455
Ernest RutherfordNelson49 25 20 75 124 293
Essie SummersChristchurch41 24 30 58 22 175
Frances HodgkinsDunedin--51 32 42 125
Hilda RossHamilton68 40 43 51 167 369
James WattieHawkes Bay----78 78
Jane ManderWhangarei60 32 20 71 183 366
Jane WinstoneWhanganui20 20 29 50 54 173
Jean SandelNew 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 40 93 151 364
Malvina MajorWellington90 -30 39 123 282
Margaret StoddartChristchurch--45 21 20 86
Ngaio MarshChristchurch81 -30 40 119 270
Princess AlexandraNapier60 24 24 54 72 234
Riccarton ParkChristchurch----18 18
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)1,152 563 837 1,411 3,210 7,173

58
Appendix 18: 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 65 248 430
Grace JoelSt Heliers77 -20 80 69 246
Keith ParkHobsonville----54 54
Logan CampbellGreenlane43 30 43 80 116 312
Miriam CorbanHenderson----66 66
Murray HalbergLynfield42 42 40 86 158 368
Possum BournePukekohe40 40 40 84 259 463
William SandersDevonport40 36 36 77 134 323
Total units & beds Auckland497 295 331 687 1,893 3,703
Total units & beds New Zealand1,649 858 1,169 2,097 5,103 10,876
Victoria
VillageLocationHospitalDementiaResthomeServicedIndependentTotal
AberfeldieMelbourne----17 17
Charles BrownlowVictoria30 20 30 30 61 171
John FlynnMelbourne19 19 19 28 70 155
Nellie MelbaMelbourne80 39 74 86 215 494
Ocean GroveVictoria----27 27
Weary DunlopMelbourne30 20 32 48 200 330
Total units & beds Victoria159 98 155 192 590 1,194
New Zealand and Victoria
Total units & beds1,808 956 1,324 2,289 5,693 12,070
Total% of asset base
Care (hospital, dementia, resthome and serviced)6,377 52.8%
Independent5,693 47.2%

59
Appendix 19: Land bank (New Zealand)
Note: The land bank is subject to resource and building consent and various regulatory approvals.
Existing villages
Location
HospitalDementiaResthomeServicedIndependentTotal
Diana IsaacChristchurch----30 30
Grace JoelAuckland----96 96
James WattieHawkes Bay35 35 20 78 69 237
Jean SandelNew Plymouth----59 59
Linda JonesHamilton----97 97
Miriam CorbanAuckland20 20 20 77 145 282
Murray HalbergAuckland----183 183
William SandersAuckland----55 55
Total existing villages55 55 40 155 734 1,039
New sites
Location
Hospital Dementia Resthome Serviced Independent Total
CambridgeCambridge20 40 20 60 185 325
KarakaAuckland20 40 20 60 216 356
KaroriWellington20 20 20 68 180 308
Keith ParkAuckland40 40 40 101 222 443
KohimaramaAuckland20 20 40 93 123 296
NewtownWellington20 15 20 56 40 151
NorthwoodChristchurch30 30 30 64 154 308
Park Terrace / BishopsparkChristchurch20 35 15 54 165 289
Riccarton ParkChristchurch20 20 40 65 213 358
TakapunaAuckland15 15 15 30 59 134
Total new sites225 275 260 651 1,557 2,968
Total landbank New Zealand 280 330 300 806 2,291 4,007

60
Appendix 19: Land bank (Victoria)
Note: The land bank is subject to resource and building consent and various regulatory approvals.
Existing villagesLocation
Hospital Dementia Resthome Serviced Independent Total
Charles BrownlowVictoria10 -10 30 19 69
John FlynnMelbourne19 19 19 68 104 229
Nellie MelbaMelbourne----113 113
Total existing villages29 19 29 98 236 411
New sites
Location
Hospital Dementia Resthome Serviced Independent Total
AberfeldieMelbourne25 25 24 27 47 148
EssendonMelbourne30 30 30 58 140 288
HighettMelbourne30 19 30 45 85 209
Mount ElizaMelbourne42 20 20 48 181 311
Mt MarthaVictoria20 20 -30 60 130
Ocean GroveVictoria40 40 40 53 55 228
Ringwood EastMelbourne40 40 40 53 241 414
Total new sites227 194 184 314 809 1,728
Total land bank Victoria256 213 213 412 1,045 2,139
Total land bank New Zealand & Victoria536 543 513 1,218 3,336 6,146
Total% of landbank
Care (hospital, dementia, resthome and serviced)2,810 45.7%
Independent3,336 54.3%

61
Disclaimer
This presentation sets out information relating to Ryman Healthcare Limited’s full year result
for the period to 31 March 2021. 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.

---

Independent Auditor’s Report
To the Shareholders of Ryman Healthcare Limited
Opinion We have audited the consolidated financial statements of Ryman Healthcare Limited and its subsidiaries (the
‘Group’), which comprise the consolidated balance sheet as at 31 March 2021, and the consolidated income
statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for
the year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying consolidated financial statements, on pages 1 to 49, present fairly, in all
material respects, the consolidated financial position of the Group as at 31 March 2021, and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards (‘NZ IFRS’) and International Financial Reporting Standards (‘IFRS’).
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and International
Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out an assurance engagement for the Group relating to Australian aged care. These services
have not impaired our independence as auditor of the Company and Group.
In addition to this, partners and employees of our firm deal with the Company and its subsidiaries on normal
terms within the ordinary course of trading activities of the business of the Company and its subsidiaries. The
firm has no other relationship with, or interest in, the Company or any of its subsidiaries.
Audit materiality

We consider materiality primarily in terms of the magnitude of misstatement in the financial statements of the
Group that in our judgement would make it probable that the economic decisions of a reasonably knowledgeable
person would be changed or influenced (the ‘quantitative’ materiality).
In addition, we also assess whether other matters that come to our attention during the audit would in our
judgement change or influence the decisions of such a person (the ‘qualitative’ materiality). We use materiality
both in planning the scope of our audit work and in evaluating the results of our work.
We determined materiality for the Group financial statements as a whole to be $17.5m.
Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements of the current period. These matters were addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

Valuation of investment properties How our audit addressed the key audit matter
As explained in policy (f) and note 7 in the consolidated financial
statements, investment properties are carried at fair value on the
consolidated balance sheet. The fair value was determined by
independent registered valuers appointed by the Group.
These properties were valued at $6,837m (2020: $5,760m). The
revaluation gain recognised in the consolidated income statement was
$417m (2020: $144m).
We include the valuation of investment properties as a key audit matter
for two reasons:
1. The significance to the financial statements:
The investment properties account for 75% of the total assets (2020:
75%), making it the most significant balance on the balance sheet.
2. The complexity of the valuation model:
The valuation model is complex and combines discounted future cash
flows and occupancy advances received from residents. The valuation
relies on various estimates and underlying assumptions, including
current unit pricing, discount rates, long term house price inflation and
the occupancy periods of residents. A small percentage difference in
certain input assumptions could result in a material change to the
valuation.

Our procedures focused on:
• The appropriateness of the valuation methodology

• The reasonableness of underlying assumptions in the valuation
model.
Our procedures included, amongst others:
• Evaluating the Group’s processes for the independent valuation of
the investment properties

• Reading the valuation reports for properties within the group and
reviewing the valuation methodology and the reasonableness of
the significant underlying assumptions

• Discussing with management the nature of key assumptions

• Assessing the competence, objectivity, and integrity of the
independent registered valuers. We assessed their professional
qualifications and experience. We also obtained representation
from them about their independence and the scope of their work

• Meeting with the valuers to understand the valuation process
adopted. The purpose of the meeting was to identify and
challenge the critical judgment areas in the valuation model and to
confirm the valuation approach was in accordance with NZ IFRS 13
Fair Value Measurement. We specifically discussed the impact of
COVID-19 with the valuers and critically challenged the changes
made to key assumptions and their reasonableness relative to the
31 March 2020 valuation

• Using our in-house valuation specialists to assess the
appropriateness of the valuation methodology and challenge the
reasonableness of the underlying assumptions. Our specialists
focused on the appropriateness of the valuation methodology, as
well as assumptions for current unit pricing, long term house price
inflation and discount rates

• Agreeing a sample of sales and resales to contracts, recalculating
actual growth rates on resales to compare to growth applied by
the valuer, and recalculating the average tenure of residents based
on a sample of contracts to compare to assumed occupancy
periods applied by the valuer

• Comparing a sample of current unit market values determined by
the valuer to actual prices received at comparable units within the
village

• Assessing the discount rates for reasonableness by comparing the
rates to those adopted in the previous year and the rates adopted
by comparable entities, challenging the adjustments made to take
into account the changing impacts of COVID-19

• Considering the appropriateness of the disclosures in note 7

Other information

The directors are responsible on behalf of the Group for the other information. The other information comprises
the information in the Annual Report that accompanies the consolidated financial statements and the audit
report. The Annual Report will be made available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether it is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If so, we are required to report that fact.
When we read the other information in the Annual Report, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to the directors and consider further appropriate actions.
Directors’ responsibilities for the
consolidated financial statements
The directors are responsible on behalf of the Group for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
directors determine is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the Group for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit
of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs and ISAs (NZ) will always detect a material misstatement when it
Valuation of care-facility land and buildings How our audit addressed the key audit matter
As explained in policy (d) and note 6 in the consolidated financial
statements, care facility land and buildings are carried at their fair
value at the date of revaluation less any subsequent accumulated
depreciation and impairment losses.
The fair value was determined by independent registered valuers
appointed by the Group.
The net book value of care facility land and buildings as reflected in
note 6 is $955m (2020: $711m). The revaluation gain recognised in
other comprehensive income was $196m (2020: $nil).
We included the valuation of care-facility land and buildings as a key
audit matter for two reasons:
1. The materiality of the account balance, and the revaluation
movements.
2. The complexity of the valuation model:
The valuation model includes both observable and non-
observable inputs. It uses significant assumptions, including the
determination of the earnings that were capitalised, the
capitalisation rates adopted, and the assessment of the market
value per care bed. These inputs require significant judgement.

Our procedures focused on:
• the appropriateness of the valuation methodology
• the reasonableness of underlying assumptions in the valuation model.
Our procedures included, amongst others:
• Evaluating the Group’s processes regarding the independent
valuation of the care facility land and buildings

• Reviewing the valuation methodology and the reasonableness of
the significant valuation assumptions

• Assessing the competence, objectivity, and integrity of the
independent registered valuers. We assessed their professional
qualifications and experience. We also obtained representation
from them about their independence and the scope of their work

• Meeting with the valuers to understand the valuation process
adopted. The purpose of the meeting was to identify and
challenge the critical judgement areas in the valuation model and
to confirm the valuation approach was in accordance with NZ IFRS
13 Fair Value Measurement. We specifically discussed the impact
of COVID-19 with the valuers and critically challenged any related
adjustments made to key assumptions and their reasonableness

• Using our in-house valuation specialists to assess the
appropriateness of the valuation methodology and challenge the
reasonableness of the underlying assumptions. Our specialists
focused on the assumptions for earnings capitalisation rates

• Assessing the reasonableness of the capitalisation rates and
market value per care bed adopted in the valuation

• Agreeing, on a sample basis, the earnings capitalised to the
underlying accounting records and challenging the valuers on the
adjustments made to actual earnings in arriving at the earnings
used in the valuation

• Considering the appropriateness of the disclosures in note 6

exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is located
on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1
This description forms part of our auditor’s report.
Restriction on use

This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken so that
we might state to the Company’s shareholders those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company’s shareholders as a body, for our audit work, for
this report, or for the opinions we have formed.

Paul Bryden, Partner
for Deloitte Limited
Christchurch, New Zealand
20 May 2021

Notice of full year result announcement Ryman Healthcare results webcast

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