Ryman Healthcare Limited – Annual Report 2022

Ryman Healthcare
ANNUAL REPORT 2022

RYMAN HEALTHCARE

As a vertically-integrated retirement village and
aged-care operator, our purpose-driven care model
is woven into every stage of a Ryman village. From
the construction site to welcoming residents in to
their beautiful new homes, care is what drives us
every step of the way.
ANNUAL REPORT 2022

About this report
This is our fifth annual report prepared according to the guiding principles of the
International Integrated Reporting <IR> Framework. The <IR> Framework encourages
businesses to report against issues most material to their stakeholders, as well as
providing insight into how their business creates value and how this value contributes
to sustainable returns for stakeholders over the long term.
Pictured on the front cover is Joyce, a 92-year-old resident at our Logan Campbell Village
in Auckland. Joyce is well known in the village for enjoying daily walks around the beautiful
gardens, often seeking out the support of Caregiver Ramon Martir.
On the inside front cover are Fit-out Site Manager Jason Q Zhao and Site Administrator
Matakeu Timms at our Miriam Corban Village in Auckland. Once complete, the village
will provide residents with exceptional independent and serviced apartment living, plus
resthome, hospital and specialist dementia care.
2
RYMAN HEALTHCARE

04
85
151
182
190
Building for the future
04 At a glance
06 Chair and Group Chief Executive report
16 Our story
19 Who we are and how we create value
27 Listening and responding to our stakeholders
31 Providing sustainable returns to our shareholders
39 An unwavering commitment to care
47 Raising the bar on our resident experience
55 Building a solid platform to grow
65 Caring for our environment
75 Investing in our people
Our financials
87 6-year summary
90 Consolidated financial statements
95 Notes to the consolidated financial statements
146 Independent auditor’s report
Corporate governance
152 Our directors
154 Our senior executives
156 Statement of corporate governance
Thank you to our team of Rymanians
Village locations and directory
ANNUAL REPORT 2022
3

45 operational
villages
16
sites under construction
$783.0m
invested in new villages
6,700+
team members
96.0%
care occupancy
$1.40bn
cash receipts from
residents
1.4%
of total units available
for resale
43.0%
debt to debt-plus-equity
gearing
4,239
care beds
8,538
retirement village units
22.4c
dividend per share
interim 8.8c
final 13.6c
13,200+
residents
$255.0m
underlying profit*
reported
profit
$692.9m
63.8%
13.6%
18.7%
$10.97bn
total assets
19.6%
At a glance
* Refer to page 87 for a definition of underlying profit.
RYMAN HEALTHCARE
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961
unit refurbishments
completed
$455.9m
new sales
Commenced construction
on 4 new sites
$500,000+
donated to charitable
partnerships
4 new sites
added to the land bank
$623.9m
resales
$1.87bn
resale bank of
future earnings
3
new villages opened
$1.42bn
work in progress
8.99 million care
hours provided
8x voted
Reader’s Digest
Most Trusted Brand
ANNUAL REPORT 2022
5

Chair and
Group Chief Executive report
Image: Greg and Richard inside a new apartment at our Kevin Hickman Village in Christchurch.
RYMAN HEALTHCARE
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Our success as a
business is what
enables us to take our
exceptional Ryman
model to more and
more people, and
that’s a good thing.”
Richard Umbers, Group Chief Executive
“
7
ANNUAL REPORT 2022

We are pleased to report a strong result delivered during this period
of considerable disruption. The resilience, commitment and
professionalism of our Ryman team played a key role in helping us
adapt quickly and respond decisively to the changing circumstances.
Quite simply, their efforts have been magnificent.
Our vertically-integrated business model proved particularly
advantageous in maintaining the momentum of the business, allowing
us to reallocate resources to the areas of most need. As a result,
we have been able to keep our residents and team safe as well as
build for the future, acquiring land, constructing new villages, selling
completed and refurbished units and setting new benchmarks in
clinical care.
These outcomes have served to enhance our reputation in the market
and cement our position as a market leader in the retirement sector.
We remain committed to maintaining our leadership position, as well
as generating increased returns to our shareholders and positioning
Ryman for further growth in the years ahead.
Providing care that in the words of our co-founder has got to be
“good enough for Mum or Dad” is key to us achieving this. This ethos
captures something truly unique in the spirit of Ryman and is what
motivates our people every day.
Our low resale stock, combined with mature care occupancy of
96 percent, demonstrates that our villages continue to be in
strong demand.
In a year when we faced increased operating costs and could not
trade or build for a significant amount of time, we are pleased with
what the team has achieved.
Kia ora koutou
As a business that cares
for older people, the last
2 years have certainly
presented us with
challenges, testing all
aspects of our operation
as never before.
RYMAN HEALTHCARE
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A strong result in a tough year
Strong demand for our continuum of care model,
which delivers both peace of mind and security,
helped to underpin our strong result this year.
The 63.8 percent increase in our reported
IFRS profit to $692.9 million was also driven by
movements in the wider property market and
the payback on our investment in higher-value
locations over recent years.
Underlying profit for the year rose 13.6 percent
to $255.0 million. This included $20.9 million
of COVID-incurred costs related to resident
welfare, staffing, security and personal
protective equipment.
The full-year dividend of 22.4 cents per share
was in line with the prior year and reflects a
payout ratio of 43.9 percent. This is within the
new flexible dividend policy range adopted by
the board of 30 to 50 percent of underlying profit.
Total booked sales rose 8.1 percent to a
record 1,543 units for the year and was a great
achievement given the restrictions in our two
biggest markets, Victoria and Auckland, during
2021 followed by the arrival of Omicron later
that year.
In Victoria, the sales uptick in the wake of the
Omicron peak has been strong. The number of
transacted sales in the last quarter of our financial
year were double what we achieved in the first half.
This is an outstanding turnaround off the back
of a pandemic and further highlights the strong
demand for what we do.
Across New Zealand and Australia, this saw us
end the year with only 120 units or 1.4 percent of
our retirement village portfolio available for resale.
Strengthening the resilience of our
balance sheet
We have continued to diversify our debt and have
executed four separate debt capital market
transactions since December 2020. This has
resulted in $1.13 billion of diversification across
three
geographies, including the NZ$290.0 million
United States Private Placement (USPP), which
closed in April 2022.
We ended the year with total facilities of $3.36 billion
and $737.0 million of headroom. This positions
us well to continue to invest wisely in the
business to meet the demands of our rapidly
ageing population.
Over the year, our debt to debt-plus-equity gearing
has improved to 43 percent reflecting the benefit
of our investment in higher-value villages. The
benefit of this is also evident in the value of our
new sales, the resale bank we have accumulated
and the strong lift in our cash receipts and total
assets during the year.
The value of our new sales lifted 15.4 percent
to $455.9 million. The embedded value of our
portfolio, which includes the resale bank of
$1.87 billion, accrued management fees and
resident loans, is now $2.45 billion. The realisation
of this embedded value, and potential after-tax
earnings, over the next 6 to7 years will support
our growth aspirations as the baby-boomer
generation start entering our villages.
Despite the challenging conditions, cash receipts
from residents rose 18.7 percent to $1.40 billion for
the year. Total assets lifted to $10.97 billion, and
we invested $783.0 million in the portfolio.
“
We’ve kept our residents and teams safe as well as
building for the future.”
Greg Campbell, Chair
ANNUAL REPORT 2022
9

An unwavering commitment to care
A highlight of the year was the recognition we received for our
COVID response. In Victoria, we were recognised for the many
ways we used innovation and industry-leading initiatives to
encourage COVID-safe practices. Our team was also named
Team of the Year at the 2021 Excellence in Age Services Awards.
Our overall COVID response has been a marathon effort, and
we are incredibly proud of the extraordinary dedication
demonstrated by the Ryman team. A particular highlight was
our vaccination programme, which reached over 13,000 residents
and 6,700 team members throughout the course of the year.
Our commitment to providing exceptional care never wavered.
This was evident in the results of our certification audits where the
number of New Zealand villages to achieve 4-year certification
(the 'gold standard' in care) increased to 91 percent. In Australia,
our villages continue to achieve excellent results and meet the
Aged Care Quality Standards.
We will continue to advocate strongly for improved residential
care resourcing for the sector. However, our emphasis remains on
business improvement and innovation to strengthen care earnings
and ensure the ongoing quality of our care offering. Looking
forward, we expect the rapidly developing critical shortage of care
beds to drive decision making about retirement options. In that
context, Ryman’s investment in our continuum of care means future
residents can choose our villages with confidence.
Demand for our continuum of care model continues to increase,
and we remain focused on exceeding the ever-changing expectations
of our residents.
of our New Zealand villages
have 4-year certification,
the ‘gold standard’ in care
91%
RYMAN HEALTHCARE
10

Enhancing our resident experience
year on year
As a care business, we are steadfast in enhancing
our resident experience. It’s one of the reasons
why we have been named Reader’s Digest
Most Trusted Brand in the aged care and retirement
village sector in New Zealand for the eighth time.
During lockdowns, we adapted our activity and
entertainment line-up into a digital format,
ensuring
that our residents could remain connected
. We
created a speaker series featuring various
celebrities as well as wellness workshops on
sleep, meditation, exercise and movement to
name just a few.
We’re constantly trialling new events and
activities, the highlight this year being our
Olympics@RYMAN tournament. The use of
advanced technology enabled residents at all
of our villages in New Zealand and Australia to
compete against one another for prized gold
medals. The tournament created the perfect
opportunity for connection, camaraderie and fun.
It also encouraged residents to venture out again
after numerous lockdowns and to incorporate
physical activity back into their daily routines.
In the face of challenges, we kept
momentum going
Our growth opportunity is driven by a rapidly
ageing population. Although COVID halted or
slowed construction across several of our villages
for periods of time during the year, we were still
able to welcome residents into their new homes
at three new villages – Raelene Boyle in Melbourne,
Kevin Hickman in Christchurch and Keith Park
in Auckland.
We also commenced construction on four new
villages – Highett and Ringwood East in Melbourne,
Takapuna in Auckland, and Northwood in
Christchurch. These villages will be home to more
than 1,000 residents when completed.
Within our growth plan, we have included a
stronger focus on building more energy-efficient
homes and reducing the embodied carbon in our
villages. We are already seeing this focus come to
life at our Kevin Hickman Village in Christchurch.
Here, we are replacing some structural elements
previously made from steel and concrete with
cross-laminated timber. In doing so, we will be able
to significantly reduce the embodied carbon of
the structure.
ANNUAL REPORT 2022
11

Making great strides in our high-value expansion plans
Our focus on acquiring and developing sites for new communities
in
premium locations has made great strides this year with the
purchase
of four new sites. The sites at Rolleston in Canterbury and
Mulgrave and Kealba in Melbourne are well suited to townhouse-style
developments. The fourth site in Coburg North, Melbourne, will be
an apartment-style village.
We also purchased additional land adjacent to our fast-selling
Deborah Cheetham Village in Ocean Grove as well as a small
retirement village next to our Essendon site in Melbourne.
The value creation that will come from what we are currently building
and what we are primed to build with our land bank is significant.
“
Our persistent
drive for
improvement
would not be
possible without
the commitment
and dedication
of our teams.”
We’re well prepared for the challenges to come
The supply-chain constraints, material availability and construction
cost inflation challenges facing the construction sector over the
last 12 months are likely to linger for some time after the clinical
emergency of COVID has abated.
We have been very focused on how we face in to these challenges.
We enjoy strong partnerships with our supplier base, many of
whom have grown alongside us over the years. As one of the largest
builders in our sector, we have strong purchasing power, and our
ability to purchase cross-Tasman helps to offset shortages or
delays in either market.
Richard Umbers,
Group Chief Executive
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12

Our people: our inspiration, our most
precious resource
We continue to invest in growing and developing
our team of committed Rymanians who safeguard
our culture of kindness and excellence but also
deliver strong commercial outcomes.
Our persistent drive for improvement would
not be possible without the commitment and
dedication of our teams. It’s our people who are
the inspiration and driving force behind every
improvement we make.
That’s why investing in the training and
development of our people is paramount. We will
continue to make Ryman a fulfilling place to work,
recognising talent that can be further developed
and encouraging our people to grow their careers
with us.
Leadership that will inspire generations
of Rymanians
In May 2022, Dr David Kerr let us know that he
was stepping down as a director of Ryman. David
has served on Ryman’s board since 1994 and held
the position of chair from 1999 until January 2022.
He participated in Ryman’s listing on the NZX
in 1999 and has been instrumental in Ryman’s
subsequent growth.
David’s legacy as chair is defined by his unwavering
dedication to care, clinical excellence and
outstanding commercial leadership through many
years of extraordinary growth. David has also
formed deep connections with many residents
and has been a sounding board for leaders
across Ryman.
This includes former Group Chief Executive
Gordon MacLeod who we farewelled in October 2021
after 15 years of dedicated service to Ryman.
David’s wisdom will not be lost entirely. We are
delighted that he has agreed to take up a role as
an advisor to our Clinical Governance Committee.
On behalf of everyone, we offer both David and
Gordon a sincere vote of thanks for everything
they have done.
ANNUAL REPORT 2022
13

A strong focus on the future
Our vertically-integrated model and continuum of care offering have
proven to be robust through the global pandemic and will underpin
our success as we continue to face in to the challenges ahead.
We are committed to achieving our corporate ambition of 15 percent
per annum per share growth in underlying profit.
The work our development and construction teams undertake
ensures that we have a good blend of village styles in our land bank
and a strong pipeline of consented sites.
“
To our Ryman
teams, your
actions personify
what it means
to be a Rymanian,
and we extend
our sincere
thanks to each
and every one
of you.”
A heroic team performance
As chair and group chief executive, we are immensely proud of our
team’s performance over the last year, and we are excited about
Ryman’s journey ahead.
To our Ryman teams, your incredible efforts have kept residents
safe, connected, entertained, informed, cherished and loved. The
flow-on effects of these actions have been felt well beyond the
boundary of our village gates. Your actions personify what it means
to be a Rymanian, and we extend our sincere thanks to each and
every one of you.
Greg Campbell
CHAIR,
RYMAN HEALTHCARE
Richard Umbers
GROUP CHIEF EXECUTIVE,
RYMAN HEALTHCARE
Greg Campbell,
Chair
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Greg Campbell joined the board as director in March 2021 and was
appointed deputy chair in July the same year. Greg’s transition into
the role as chair from January 2022 has been a smooth one, and he
feels very fortunate to be surrounded by the depth of experience
within our board and within the management team.
Greg brings a wealth of experience to the table through his many
years as chief executive and board director across a number of
leading organisations. Greg is a firm believer in striking a balance
between care and commerciality and is passionate that success in
both can be achieved simultaneously and in a sustainable way.
Richard Umbers is an internationally experienced chief executive
with a background leading large organisations in many industry
sectors. He joined us as group chief executive in October 2021
and lives in Christchurch. Richard is a strong believer in fostering a
strong sense of purpose within the team and investing in people to
drive a culture of high performance.
What Richard admires most about Ryman is the unique culture
of genuine care that exists within the business, and his strong
commercial background makes him a natural fit to lead us through
this next period of growth.
Image: Greg and Richard at the construction site at our Kevin Hickman Village
in Christchurch.
ANNUAL REPORT 2022
15

Our story
Bringing their purpose-driven business to life
They soon found a block of 14 two-bedroom flats, which they would
convert into their first resthome.
They renamed the resthome Riverside, the cash flow started to
come in and they were soon in the market for a second property.
With that, Ryman – formed from combining Ryder and Hickman
– was born.
The pair were on the look-out for a business opportunity.
“The perfect business,” Kevin says, “had to combine residential
property – because it’s a good long-term investment and the
banks always like to lend on property – and a strong cash flow.’’
In 1983, when investigating a fire-damaged resthome, Kevin didn’t
like the standard of care he saw. With multiple people to a room and
shared toilets, preserving the dignity of residents didn’t appear to
be a priority.
That experience got Kevin thinking about what the standard should
be. “I thought, what would I want for Mum? I’d want a private room
for a start.”
Kevin had discovered the missing piece to the pair’s perfect
business opportunity – a genuine purpose anchored in care.
It would be a business that would improve the way older people lived
and how they were cared for. A business they could feel good about,
believe in completely, and one that would inspire teams who worked
there for generations to come.
Former police officer
Kevin Hickman and
accountant John Ryder
began working together
in the early 1980s.
RYMAN HEALTHCARE
16

Right from the start, purpose and commerciality shone
A motel complex became their next development. Kevin lived
on site while they rebuilt and, as he says, “we needed to squeeze
every drop of cash flow out of it while we were rebuilding”.
While those early days were challenging, they remained true to their
ambition of making retirement the best period of older people’s
lives. “For some of our residents, it was the first time they’d lived in a
new house.”
They were now witnessing the difference that their exceptional care
model was making. However, Kevin and John were also acutely
aware that they needed to be commercially successful to maintain
that standard and to bring their model to a wider audience.
They believed in reinvesting to grow the company. Profits were
reinvested to lay the foundations for future earnings so that the
value of the investment was always compounding.
The Ryman model was to buy the right site in a well-established
suburb, use working capital to build the first stage of the village,
sell that and use the capital to fund the next stage. They’d then
build a care wing, which would be operated by our team who put
into practice every day what it means to be “good enough for Mum
or Dad”.
After almost 4 decades and 45 villages in total, that model has
become the benchmark in the retirement industry.
However, as Kevin would often say, “If you think you’ve made it,
you’ve had it.” So, with each new retirement generation that
chooses to call a Ryman village home, we continue to adapt and
innovate so we can maintain our exceptional standards. At our
core, we will always remain true to our purpose, as it’s the key to our
commercial success.
“
I thought, what
would I want
for Mum?”
Kevin Hickman,
Co-founder Ryman Healthcare
ANNUAL REPORT 2022
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Artist’s impression of our Kevin Hickman Village in Christchurch.
Named in honour of our Co-founder, Kevin Hickman, we welcomed
our first residents to this village during the year.
18
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18

Who we are
and how
we create value
19
ANNUAL REPORT 2022
19

We are a vertically-integrated
retirement living and
aged-care developer, owner
and operator. We create
beautiful homes and
supportive communities
and provide exceptional
care for older people.
Who we are
Nearly 40 years ago, our founders looked at the industry and
knew instantly that it could and should be better. This became
the purpose that would drive them to create the Ryman model
that is now seen as the benchmark in retirement living and
aged care today.
Ryman has grown to become the largest retirement village
operator in New Zealand with a 15 percent share of the retirement
village and aged-care market. We own and operate 38 villages
across New Zealand and 7 in Victoria, Australia. We have a further
17 villages in the pipeline.
We continue to establish a strong presence in Victoria, Australia, and
the growth opportunities ahead for us in this market are immense.
We provide a comprehensive range of retirement living options,
including independent apartments and townhouses, assisted living
in serviced apartments as well as resthome, hospital and
dementia care.
Our focus on innovation and improving people’s wellbeing as they
grow older has helped underpin our success.
How we create value
We build high-quality retirement village communities. Once
completed, these villages not only generate ongoing returns for our
shareholders, they provide meaningful careers for our people, they
act as supportive hubs to their surrounding communities and they
provide critical healthcare infrastructure.
Ryman village communities are places where older people can
choose to live in beautiful homes with access to superb amenities,
all while enjoying the support of a community of friends, neighbours
and a team of dedicated Rymanians.
Our villages are places where residents can relax knowing that
if their needs change, we can continue to care for them. Families
know their loved ones have the comfort, security and dignity that
comes with the highest standards in clinical care.
RYMAN HEALTHCARE
20

How we create value
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Our resources
Value created
Our
people
Our
relationships
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expertise
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environment
Our
communities
Our financial
strength
Developing
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Growing
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communities
Building
our financial
strength
ANNUAL REPORT 2022
21

Our business model draws
on six capitals to create value.
Our people
Our expertise
Our communities
Our relationships
Our environment
Our financial strength
Our culture of providing care that has got to
be “good enough for Mum or Dad” has shaped
our business model and powers our success.
We are committed to nurturing and protecting
this culture, and that starts with developing our
own people.
We have incredibly talented people within our
team. It is these people who drive our innovation
and allow us to deliver exceptional care, an
unparalleled resident experience and strong
financial returns. That’s why investing in the
training and development of our people
is paramount.
We strive to create an environment where people
feel included and empowered. In doing so, we
see improvements to overall wellbeing, enabling
our people to continue to thrive.
Our people
Our most precious resource is our team.
Ensuring we understand, value and celebrate
what each individual contributes is very
important to us. So is their health, safety and
wellbeing. We want them to love the experience
of working at Ryman, and we want to do
everything we can to help them develop and
build long-term careers with us.
Developing our people
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22

Our villages are unique. The way they are
designed, the way they are built, how they feel
– it’s all uniquely Ryman.
Our in-house expertise in identifying sites,
designing, consenting, building, selling and
operating world-class retirement villages has
grown tremendously over our 38 years of
operation.
It plays a critical role in our ability to build
high-quality villages that meet the needs of our
residents and the provision of industry-leading
care and the associated clinical outcomes.
We listen to our residents, their families and
our team. This improved understanding means
we can continue to support our team to deliver
exceptional care and an unparalleled resident
experience while rapidly growing the number
of Ryman villages to meet demand.
The communities we build provide our
residents
with security, companionship, social
connectedness and environments that challenge
the conventions of ageing. They are people’s
homes and are in well-established areas
where people have lived and worked and want
to retire.
Our villages help to meet the demands of a
rapidly ageing population, take pressure off the
public health system, provide employment for
local communities and become an economic
driver for local businesses.
Each village we build represents a long-term
investment in care for the communities we
operate in, and each village creates a new
economic engine to support our future growth.
Our expertise
Over the past 38 years, we have built a wealth
of knowledge in how to build, sell and operate
communities where people thrive in retirement
and receive exceptional care. The collective
wisdom and experience of our team and the
systems we have developed over this time are
huge assets that are difficult to replicate.
We are well positioned to rapidly respond to
any changes in the operating and regulatory
environment, and we use our voice to educate
and lobby on behalf of the sector.
Our communities
The communities we serve have a common
social issue – the growing demand for the
care of older people and a scarcity of supply
and skill. Each of our 45 retirement villages
provides critical healthcare infrastructure.
Our new villages are built in areas where there
is unmet need, and they quickly become an
important asset to the wider community. They
also become a social hub for the communities
they serve.
Enhancing our expertise Growing our communities
ANNUAL REPORT 2022
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Our environment
We want to make sure all decisions are made
with sustainability in mind so that we leave
the environment in a better condition for
generations to come. We are committed to a
zero-carbon future, we are actively pursuing
ways to cut our greenhouse gas emissions
and we are driven to ensure the growth of
our villages is sustainable within the broader
local, national and global contexts in which
we operate. Our aim is to lead by example,
so we encourage all our team and the people
who supply us to think the same way.
Sustainable growth means looking after the
environmental capital we use, including reducing
our carbon footprint and minimising the impact
of our operations on the environment.
We remediate and improve carefully selected
sites so they can be developed into integrated
retirement villages.
Our villages are an efficient way of providing
high-quality homes with minimum impact on
the environment.
The villages we build become homes for thousands
of residents, freeing up homes in existing
communities for new families to move into.
The homes vacated will be close to local amenities
including bus stops, libraries and schools. They
are immediately available, reducing the need for
further urban spread.
Our relationships
We value strong relationships across all
areas of our business – between residents,
their families, our teams, our suppliers and
contractors and our local communities.
We enjoy and invest in these relationships,
many of which are long term and are a key
part of our success.
Trust is the foundation of any great relationship,
and we are deeply aware of the many people
and organisations that put their trust in us.
Residents trust us to care for them into old age.
Their families trust us to care for their loved
ones. Our team trusts us to provide them with
a meaningful, reliable and safe place to work.
Our suppliers trust us to pay on time and our
shareholders trust us to continue providing
strong commercial returns on their investment.
This is a huge responsibility and one we never
take for granted. Trust begins with getting the
basics right – treating everyone with respect
and kindness and communicating in simple and
clear language.
The trust we have developed has contributed
to our achieving market-leading brand
awareness of 92 percent in New Zealand and
our continued growth of brand awareness in
Australia. This has led to strong waitlists, low
levels of stock available for resale and the ability
to pre-sell independent units off plan.
Strengthening our relationshipsProtecting our environment
RYMAN HEALTHCARE
24

Our financial strength
The interest-free source of funds we receive
from occupancy advances and refundable
accommodation deposits is a tremendous value
creator for the business. Our long-term success
and the financial strength it has created allows
us to reinvest to create even more value as well
as generate returns for shareholders to reward
them for investing in us. Our view is always
long term.
Our financial success underpins our ability to
invest in future villages, in innovation, in lifting
the experience of our residents and in the
development of our people.
We create value by building our own operating
assets and generating cash to invest in new
villages. Since listing in 1999, we have grown our
total assets from $103.0 million to $10.97 billion.
Alongside the growth in our total assets, we have
also grown our gross occupancy advances to
$4.86 billion. The value of these advances has
doubled over the last 5 years and reflects the
development of new villages, many of which have
been built in higher-value areas and generate
significant value for the company.
These gross occupancy advances or interest-free
capital sums are a key value creator for the
business. They fund the development of new
villages, and as units resell, these occupancy
advances are repriced and the deferred
management fee that we collect increases,
creating significant value for our shareholders.
“
The interest-free
source of funds
we receive from
occupancy
advances and
refundable
accommodation
deposits is a
tremendous
value creator for
the business.”
Building our financial strength
David Bennett,
Group Chief Financial Officer
ANNUAL REPORT 2022
25

Our residents, many of whom are shareholders, are some of our
key stakeholders. Pictured here is Suellen, a resident in our
William Sanders Village in Auckland.
26
RYMAN HEALTHCARE

Listening and
responding to our
stakeholders
27
ANNUAL REPORT 2022
27

Our influence goes beyond our village gates into the healthcare
community, research organisations, the arts and hundreds of
community groups.
We are constantly engaging with our stakeholders. Through regular
survey activities, our dedicated resident relations team keeps
abreast of what matters to residents, what we are doing well and
where we can improve.
We connect with our teams through multiple forums, including
annual staff and contractor surveys, weekly team huddles,
one-on-one catchups and focus groups, to ensure we stay on top
of what matters most to our team members and contractors.
Our community relations managers proactively engage with
members of the local community involving them in important
conversations from the start, including village naming and blessing
ceremonies. Our dedicated investor relations and corporate affairs
teams proactively engage with other stakeholders in New Zealand,
Australia and overseas, including investors, banking partners,
regulators and government.
These interactions help strengthen our relationships and identify
what matters most to our stakeholders. We review and collate the
information received and assess its effect on our ability to create
value in the short, medium and long term.
From our discussions, we have identified and grouped the
most-material issues into four areas.
We are responsible to
thousands of stakeholders,
from our residents and
their families, our teams
and our shareholders
through to our contracting
partners, providers of
debt and suppliers in the
communities we operate in.
RYMAN HEALTHCARE
28

Materiality matrix
Significance of impact
Stakeholder importance
Sustainable design
Carbon reduction
Capital management
Resident experience
Communication
Health, safety, wellbeing
Diversity and inclusion
Care quality
Culture
Growing underlying profit
Market dynamics
Staff recruitment, development
Corporate governance, cyber security
Waste and water management
Supply chain
Sponsorship, community engagement
Care and communityPeople
Care quality and continued innovation
Communication
Resident experience, safety and wellbeing
Sponsorship and community engagement
Culture of kindness and care
Diversity and inclusion
Health, safety and wellbeing
Staff recruitment and development
EnvironmentSustainable financial performance
Carbon reduction
Supply chain and material choice
Sustainable design
Waste reduction and water management
Capital management
Corporate governance, cyber security
Growing underlying profit
Market dynamics and regulation
Material issues
ANNUAL REPORT 2022
29

Artist’s impression of our upcoming Takapuna Village in Auckland.
The location of this village is a prime example of a high-value site that
will generate strong returns.
30
RYMAN HEALTHCARE

Providing sustainable
returns to
our shareholders
31
ANNUAL REPORT 2022

If you were to design a
challenge specific to our
sector, COVID would be it.
Like the rest of the world,
we were not immune to
the challenges of the last
2 years and the headwinds
still faced by the sector.
Government restrictions introduced during peak periods of the
pandemic hampered our ability to transact and led to a reduced
workforce on construction sites. This meant our build rate was
slower, delaying our cash collection and pushing out our debt profile.
We have come through this period in a strong position. We’ve
continued to operate, we’ve protected our residents and their families,
we’ve strengthened our brand, we’ve improved our systems and
processes, and demand for our continuum of care offering is stronger
than ever.
Nellie Melba Village Personal Care Worker Joeben Roxas
enjoying a stroll with resident Bernie. Joeben moved
into the village twice during the pandemic to help reduce
the risk of transmission.
RYMAN HEALTHCARE
32

A good business adapts itself to ride the wave of the
challenges it faces.”
“
A strong result in challenging conditions
We reported a 13.6 percent lift in underlying
profit to $255.0 million in FY22. This growth was
slightly below our stated corporate ambition of
growing underlying profit by 15 percent per annum
per share, reflecting the challenges of COVID
including the additional $20.9 million spent on
keeping residents and staff safe through the year.
Our reported (IFRS) profit of $692.9 million
was up 63.8 percent, driven by a $467.1 million
unrealised fair value movement on investment
property. While these gains are unrealised,
they are based on the pricing we have been able
to achieve over the last 12 months, and it shows
the growth in the value of our portfolio.
Ryman’s total assets grew to nearly $11 billion
during the year driven by our build programme,
investment in higher-value sites and investment
property fair value gains.
The high value nature of our sites means we
anticipate generating $6.80 billion of capital
proceeds from the 29 sites in our land bank
when they are fully occupied and sold down.
To put that into context, our 32 fully sold villages
have currently contributed $3.60 billion of
occupancy advances and refundable
accommodation deposits.
This shows the scale of the momentum we have
been building over recent years, which is well
timed with the demographic boom on our doorstep.
Richard Umbers, Group Chief Executive
To help manage rising construction costs,
we’ve shortened the length of time in which
we commence pre-selling our new stages.
This change means we are able to match
new sale prices to the latest market demand,
improving our ability to offset construction costs.
We spent over $780.0 million building new
villages and investing in our existing portfolio.
This investment ensures our villages remain
in strong demand and we can unlock the
embedded value – currently $2.45 billion
– on our existing portfolio.
The affordability of our units is something we
monitor closely and our residents are freeing
up more capital than ever when they move into
a Ryman village. We are in a strong position to
withstand any market correction with property
prices in Auckland needing to fall 27 percent
before residents stop freeing up capital. For
residents in Melbourne, property prices would
need to fall 47 percent to have the same impact.
We ended the year with $737.0 million of funding
headroom, and combined with our strong
pipeline of consented sites, this means we are
in a strong position to meet the demands of the
rapidly ageing population.
ANNUAL REPORT 2022
33

Demand for our continuum of care model
is unprecedented
Demand for what we do is underpinned by a rapidly ageing population.
In New Zealand, the number of people aged 75 and over is projected
to increase from 365,000 today to 938,000 in 40 years' time.
In Australia, it is a similar situation. The 75 and over age group is
projected to increase from 1.9 million today to 4.4 million in
40 years’ time.
Along with an ageing population, people are also living longer.
However, with increasing longevity comes a sharp increase in the
occurrence of age-related diseases. This could see many individuals
lose their ability to live independently due to a decline in physical or
cognitive functioning.
Our investment in providing exceptional care and support across
a full range of retirement living and aged-care options is an
important differentiator in both the New Zealand and Australian
markets. As a market leader in the retirement sector with a true
continuum of care offering, we are uniquely positioned to benefit
from this changing demographic.
current population in
New Zealand and Australia
aged 75 and over
2.3 million
projected population in
New Zealand and Australia aged
75 and over by 2062
5.3 million
While it has
been a disrupted
period, the
underlying
demand for our
model, and our
ability to deliver
and meet that
demand, is very
much there.”
“
Cameron Holland,
Chief Executive Officer
– Australia
RYMAN HEALTHCARE
34

Maintaining a sustainable pace
The Ryman ‘flywheel’ of efficiently building, selling and recycling
capital has slowed over recent years as the business has worked
through the challenges that come with building across a greater
number of larger and more-complex sites and increasing
construction costs.
Over this period, we have made significant investment in our people,
systems and processes to increase the growth capacity of the
organisation and to ensure that our ‘flywheel’ can keep turning at
a sustainable pace.
We are already seeing evidence that the enhancements made to our
processes are resulting in tighter capital management. Combined
with strong demand, we are well positioned to achieve our corporate
ambition of growing underlying profit by 15 percent per annum
per share.
Enhancements made over recent years include:
• the introduction of a new organisational structure
• continued strengthening of skills and lifting the capability of
our team
• the adoption of new systems and technologies to further enhance
efficiencies and improve project coordination across the business
• tighter discipline around the staging of capital-intensive sites
and the mix of sites in our land bank
• improved governance oversight across development and
construction through the establishment of a Development, Design
and Construction Committee
• diversification and extending the tenor of our debt.
What gives me
confidence as
to where we are
now and where
we’re going are
the significant
enhancements
we’ve made over
recent years.”
“
Anthony Leighs,
Director
ANNUAL REPORT 2022
35

Using debt to fund our growth ambitions
Over the year, our debt to debt-plus-equity gearing has improved to
43 percent reflecting the benefit of our investment in higher-value villages
over recent years.
Debt remains a function of our growth plans. We use debt to fund the
purchase of land and the development of a village. This debt is repaid via
the occupancy advances we receive for independent and serviced units
and refundable accommodation deposits for aged-care rooms.
This is a significant value creator for the business. The occupancy advances
and refundable accommodation deposits are effectively interest-free loans
that are repaid with the funds received from the next incoming resident
(less management fees). Any difference in value between the outgoing and
incoming resident is retained by Ryman. This interest-free source of funds
is what has enabled us to create significant value for our shareholders since
listing in 1999.
We aim to recycle capital by the time a village is completed, fully occupied
and sold down. This means that the majority of our debt is productive debt.
The increase we have seen in our debt over the past 4 years reflects the
investments we have been making, including lifting the number of sites we
are building across from four to 16.
At 31 March 2022, we had core debt (systems and other assets and
village capex) of $506.0 million. The remainder of our debt constitutes
undeveloped land, work in progress and new sale debtors.
Use of debt
fiffiffflbn
fiffiffflbn
fiffiffflbn
fiffiffflbn
fiffiffflbn
fiffiffflbn

Mar Mar 
Systems and
other assets
Village capex
New sale
debtors
Development
work in progress
Undeveloped
land
True underlying
value creation
is
a co-equal
fundamental goal
of Ryman. This
takes vision,
commitment,
financial discipline
and excellent
execution. That is
what our founders
were seeking.”
“
Geoffrey Cumming,
Director
RYMAN HEALTHCARE
36

Our governance committees
Our governance committees have been established
at board and management level, according to key
areas of focus and potential risks to the business.
These committees have evolved over the years
in response to an ever-changing environment in
which we operate. Each of our committees made
invaluable contributions which helped us shape
and navigate our response to COVID.
The structure and support of our committees
ensures we are well positioned to manage
future challenges.
Our new organisational structure generates
additional capacity to deliver strong growth while
enabling the business to respond to local market
conditions. New Zealand and Australian CEOs
lead the regional executive teams, supported by
the shared group structure.
While the New Zealand and Australian markets
are similar in some respects, understanding the
nuances of each market – different legislation,
funding sources, competitor landscape, resident
needs and local councils – is essential to our
ability to grow and deliver great care and profit.
We are already seeing the benefits of the new
structure. Being able to quickly respond to
changing resident needs while building out
long-term projects means we stay relevant and
generate growing returns.
Strengthening the resilience of our
balance sheet
Since 2019, we have been on a journey to improve
the resilience of our balance sheet through the
diversification of our debt in terms of its tenor,
geographic origins and counterparties.
We considered a range of options and ultimately
executed four separate debt capital market
transactions resulting in $1.13 billion of diversification
across three geographies. This includes the
NZ$290.0 million USPP, which closed in April 2022.
Following the closure of our second USPP,
30 percent of our total debt is now fixed with an
average cost of debt of 3.8 percent and tenor of
approximately 6 years.
This work saw us named as a finalist in the
Bloomberg Excellence in Treasury Award for
demonstrating excellence in adaption and
execution of treasury financial management.
The proactive changes we have made to our capital
structure position us well to withstand future
challenges, whether related to the pandemic, rising
geopolitical tensions or an increasingly volatile
capital environment.
During the year, the board also approved a move
to a flexible dividend policy. The new policy
provides the flexibility to pay out 30 to 50 percent
of underlying profit as a dividend (previously fixed
at 50 percent of underlying profit). The change
in policy provides us the option to retain more
cash in the business to meet the extraordinary
growth ahead.
Adapting to changing market conditions
ANNUAL REPORT 2022
37

Rosemary, a resident in our Diana Isaac Village in Christchurch,
enjoys a stroll with Registered Nurse Sandra Hendriks.
38
RYMAN HEALTHCARE

An unwavering
commitment to care
ANNUAL REPORT 2022
39

Since January 2020,
we have invested over
$70 million in keeping our
residents and teams safe
from COVID. The work
we have done has been
greatly valued by our
residents and their families,
and we are very proud
of the resilience our team
has shown through this
challenging period.
Taking control of our COVID vaccination rollout
Key to ensuring the long-term safety of our residents, teams and
communities was the swift rollout of vaccinations. In preparation
for the arrival of the vaccines, we trained our own in-house
vaccination team of 50 nurses. This preparedness meant we were
one of only a few aged-care providers in Victoria to win a tender to
self-vaccinate our team members.
In New Zealand, our strong engagement with district health boards
(DHBs) and the Ministry of Health meant we could help on a
broader scale. When Canterbury DHB asked us to support them
to rapidly vaccinate other aged-care providers in the region,
our vaccination teams and efficiently-run clinics enabled us to
offer assistance.
Through our vaccination programme, we have administered more
than 36,800 vaccination doses to Ryman residents and 17,800 doses
to our team across Australia and New Zealand.
Initiating a vaccination programme of this scale and implementing
the rollout in the shortest timeframe possible was an extraordinary
feat. Our teams demonstrated incredible dedication and commitment
and operated like a well-oiled machine throughout.
The learnings we have garnered through the pandemic have been
well mined and will assist us greatly going forward.
RYMAN HEALTHCARE
40

Award-winning COVID response
in Victoria
With numerous extended lockdowns to contend
with, our villages in Victoria have endured more
than their fair share of COVID-related challenges.
Their marathon efforts were impressive and didn’t
go unrecognised.
Ryman leaders responsible for overseeing our
COVID response were named Team of the Year
for Victoria and Tasmania at the 2021 Excellence
in Age Services Awards.
In 2022, Ryman was named Innovation Award
Winner in the Victorian Chamber of Commerce
COVIDSafe Business Awards. This award was in
recognition of the innovative and industry-leading
steps taken to encourage COVIDSafe practices,
describing Ryman as an expert in how to execute
such a response.
Our response included Ryman team members
moving into villages to reduce the risk of
transmission, the development of a COVID GO
kit that provided our village teams with the
immediate actions they needed to take as soon
as a positive case was detected, the early
introduction of rapid antigen testing for all visitors
and contractors, and the development of our own
COVID digital contact tracing tool, which recorded
all team member and resident interactions.
We shared learnings gathered from our Australian
operations with the aged-care sector in
New Zealand to ensure everyone was well prepared
for the arrival of Omicron.
A fabulous response that was ahead of the curve
in preparedness. There was a clear level of care,
compassion and selflessness in the actions taken and
their efforts and commitment helped save lives.”
Victorian Chamber of Commerce judging panel
“
Image: Members of our award-winning COVID response
team in Victoria.
ANNUAL REPORT 2022
41

Hazel, Logan Campbell Village resident
It was time for us to give back to the Ryman
team for everything they’ve done, and the
exceptional kindness they’ve shown.”
“
RYMAN HEALTHCARE
42

While Ryman team members put their home and family
lives on hold to keep residents safe, residents also rallied
around to do their bit to reduce transmission.
Residents inspired
by Ryman team
COVID efforts
At the peak of the pandemic,
some villages faced considerable
staff shortages, with team
members either unwell or
isolating at home.
One of those was Auckland’s
Logan Campbell Village, which
had 30 workers on COVID
leave at one point.
Ryman villages provided the
option for team members to
live on site. For those workers
living in large households, often
alongside other healthcare
workers, it created a unique
opportunity to reduce
transmission even further.
A dozen team members
moved into Logan Campbell
Village, including Village
Manager Rebecca McMillan.
Inspired by their selfless
dedication, residents also
formed a ‘resident crew’ to do
their bit too.
Resident and former nurse
Dawn marvelled at village team
members putting residents
before themselves. She was
only too happy to help with
essential jobs such as folding
laundry and sanitising high-touch
points like lift buttons, banisters
and door handles. Fellow resident
Hazel also helped out by cooking
meals for the team.
Activities Coordinators Gerlie
Navaja and Keefe Martinez
were among the team members
who moved into the village.
Along with going above and
beyond to maintain exceptional
quality of care for their residents,
they also enjoyed participating
in activities with residents.
The collective effort of team
members and residents has
served to enhance the already
strong sense of family that
exists at Ryman villages.
Image: Logan Campbell resident Hazel and Activities Coordinator,
Keefe Martinez.
ANNUAL REPORT 2022
43

Continuing to exceed standards in
clinical excellence
The driving force behind our COVID response
was to keep everyone safe, and in doing so, it
shone a spotlight on the exceptional standard of
care that we simply call day-to-day operations.
We continue to lead the market in the provision
of a high quality of care – 91 percent of our
aged-care centres in New Zealand have now been
awarded 4-year certification, the ‘gold standard’
in care.
Despite the ongoing pressures of COVID,
our villages have not only maintained their
standards in aged care, they have continued
to exceed them.
Our custom-built technology proved
to be invaluable
Our custom-built myRyman Care app provides
nurses and carers access to clinical data and
detailed care tasks required for each care
resident. This award-winning technology ensures
all information is securely recorded – from
critical medical alerts to personal preferences.
The efficiency in which this information is recorded
enables our nurses and carers to spend more
quality time with residents and it makes the transfer
of care between team members seamless.
The app has proven to be an invaluable tool,
enabling us to be agile in responding to the
ever-changing demands of the pandemic. It
enhanced the efficiency of our vaccination rollout
and the management of isolation quarantines.
myRyman Life model of dementia care
Our villages are supportive and caring communities
that work to improve the experience of residents
living with dementia. We provide a safe environment
for residents to enjoy, with a focus on experiences
rather than processes.
We have researched and developed our own model
of dementia care, myRyman Life. The model
aims to challenge perspectives on dementia and
supports people to live in the moment and to feel
kindness, love and security. It promotes spontaneity,
laughter and happiness.
We have continued to enhance our innovative
approach to dementia care through the successful
trial of our Moove and Groove music therapy
programme and our new care companion model.
This model aims to reduce distressed behaviour
through individualised and more-purposeful
engagement and sees team members regularly
partnered with the same residents. These initiatives
will be rolled out to all Ryman dementia care
centres from July 2022.
RYMAN HEALTHCARE
44

myRyman Life awards
2020Winner
Innovation of the Year
– Dementia Care Model
Solution
Asia Pacific Eldercare
Innovation Awards
Refining our care offering
With 3,676 aged-care beds in New Zealand and
a further 563 in Australia, we are an integral part
of the healthcare system, providing a protective
moat around our public hospitals – there are only
12,035 public hospital beds in New Zealand.
We are committed to continuing to meet the
demands of an ageing population while ensuring
sustainable returns for the care that we provide.
In 2020, we introduced refundable accommodation
deposits in New Zealand. This offers our care
residents the choice around how they pay
their weekly room premium. This initiative has
been very popular with our residents, and following
a soft launch in late 2020, we have collected over
$100 million in refundable accommodation deposits.
With resthome care also available in our serviced
apartments, we have been refining the number
of care beds in new villages over recent years
to better align with the number of residents who
transition through to care.
2021Winner
Best Plain English Document
Private Sector
myRyman Life eLearning tool
Plain English Awards
2020Finalist
Best Dementia Care Programme
Asia Pacific Eldercare
Innovation Awards
2022Finalist
Learning and Development
Capability Award
myRyman Life education
HRNZ Awards
ANNUAL REPORT 2022
45

Ryman resident Terry at our Logan Campbell Village in Auckland,
who won an Olympics@RYMAN gold medal in swimming.
RYMAN HEALTHCARE
46

Raising the bar
on our
resident experience
ANNUAL REPORT 2022
47

Feeling connected to a
community that genuinely
cares is one of the highlights
of living in a Ryman village.
Amidst the extraordinary
challenges that COVID
presented, we found ways
to maintain that feeling
of connectedness.
Olympics@RYMAN
In the midst of the pandemic, our residents’ wellbeing was top of our
agenda. With the Tokyo Olympics on the horizon, we dreamt up an
ambitious initiative to enhance the social connection and wellbeing
of our residents: the Olympics@RYMAN.
We invested in innovative technology to make this a hybrid physical
and virtual tournament. Residents gathered to compete using
technology to link events across stadium venues, bowling greens
and village lounges across our villages in New Zealand and Australia.
In every event category – lawn bowls, cycling, swimming, a walking
relay and a ‘quiznastics’ event – our residents competed for the
chance to stand on the podium as an Olympics@RYMAN medallist.
Recognised as the Best Active Ageing Programme and
Innovation of the Year at the Asia Pacific Eldercare Innovation
Awards, our teams did an outstanding job bringing this event to life.
The Olympics@RYMAN provided a great opportunity to test some
very innovative and emerging technologies with our residents and
helped us better understand its potential going forward.
We appreciated the opportunity to
partner with the Olympic Committees
and create a truly unique experience
for our residents.”
“
Mary-Anne Stone, Chief Strategy Officer
RYMAN HEALTHCARE
48

Poem by Murray S. Lennox
Ryman resident
We yelled, we cried, we gasped and sighed
At victories won and places lost,
Emotions that we couldn’t hide
While they pushed on at what a cost.
That spirit we took up in our own Ryman way,
As residents walked and biked and bowled
While swimmers swam, and quizzers played
And none were left out in the cold.
Technology not seen before
Created a community across the land
While happy bags and food galore
Brought weeks of graft to the final grand!
“Well done” to all who were involved
From stewards to the athletes strong.
We admire your strength and fortitude,
And you all deserve a golden gong!
Robust systems and processes to
enhance our dining experience
When it comes to lasting impressions, enjoyable
dining is an experience that deserves continued
enhancement. Like any good restaurant, we
are constantly refining recipes and improving
systems and processes.
During the year, we introduced an end-to-end
food management system, Saffron.
Saffron gives us better access to nutritional,
allergen and cost data. We use this data to
inform our recipe and menu creation and have
seen significant improvements in resident
experience through the ability to select meals
from a device as well as track allergen
information. The introduction of this system
has also led to cost reductions and better
procurement and contract management.
We also rolled out the Safe Food Pro
digital software to our New Zealand villages,
and we’re implementing it across our
Australian villages. This system improves
our ability to efficiently capture all food
safety records, including refrigeration
and cooking temperatures as well as
food storage temperatures.
Image: Ryman resident Jane from our
Murray Halberg Village in Auckland, and her
support crew during our Olympics@RYMAN
cycling event.
ANNUAL REPORT 2022
49

attendees
103,000
copies of our
Botanical magazine issued
5,000
50
RYMAN HEALTHCARE

Partnering with the Melbourne International Flower and
Garden Show enabled us to be part of a high-profile
event with a wide appeal. It’s a great opportunity to
build brand awareness while also celebrating the lifestyle
and passions that are important to our current and
future residents.
Developing meaningful
partnerships in

our communities
Through our partnership with
the show, we offered a range
of experiences for attendees
to enjoy. This included our
Ryman stand where we offered
refreshing iced tea on tap, our
fully booked workshops with
Australian landscaping expert
Matt Leacy and our inaugural
Ryman Healthcare Balcony
Garden Competition which
sought to provide gardening
inspiration for smaller spaces.
Residents and friends of our
villages enjoyed access to
exclusive ticketing benefits,
and with 103,000 people in
attendance, we were able to
introduce Ryman to a broader
audience and lift our profile in
the Australian market.
Image: Show attendees enjoying the activities at our Ryman stand.
“Giving people the opportunity to
create their own sanctuary in a small
space is important. The benefits to
wellbeing and quality of life are huge.
”
Sara Correia from Tempest Landscapes, inaugural winner of the
Ryman Healthcare Balcony Garden Competition
ANNUAL REPORT 2022
51

Engaging with our communities
As a care business, building meaningful partnerships and
supporting our communities enables us to make a positive impact
on a larger scale. Through our support of over 400 clubs and
organisations, we have established strong relationships with the
communities outside of our village gates.
Every day we see the positive impact of the arts within our vibrant
village communities, where residents can connect through their
shared appreciation of music, dance and creative hobbies. Our
partnerships with organisations such as the Melba Opera Trust,
the Melbourne Symphony Orchestra, the Royal New Zealand Ballet
and The Court Theatre mean our residents and friends of our
villages benefit from access to wonderful cultural experiences.
Each year, our residents and team members vote to select an
annual charity partner to support. All money raised by them
is matched by Ryman, dollar for dollar. In 2021, we supported
Melanoma New Zealand and the Melanoma Institute Australia,
donating a combined total of $550,000. In New Zealand, these
funds allowed Melanoma New Zealand to buy a Spot Check Van
that has been touring community locations around New Zealand.
Our 2022 charity partners are the Prostate Cancer Foundation NZ
and the Prostate Foundation of Australia.
Our support extends beyond our local communities to causes
that also affect our team and their families abroad. This year, we
sent over 10,000 masks to support Fiji’s COVID relief efforts and
provided essential items, including water, pantry staples and face
masks to Tonga in the wake of the volcanic eruption and tsunami.
We are so grateful
to
Ryman for its
extraordinarily
generous support.
The impact the
van is already
having in the
community has
been significant.”
“
Andrea Newland,
Melanoma New Zealand
Chief Executive
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52

Previous winners
2015 Gabi Hollows
(Restoring sight)
2016 Professor Henry Brodaty
(Alzheimers research)
2017 Professor Peter St George-Hyslop
(Neurodegenerative research)
Supporting the wellbeing of older
people globally
The Ryman Prize recognises the world’s best
advancements in the pursuit of enhancing the
quality of life for older people.
As a business that set out to improve the
standards in aged care, our implementation and
sponsorship of the prize has enormous potential
to bring awareness to an often-overlooked sector.
The work of our prizewinners often benefits the
entire aged-care sector, and we feel it’s important
to recognise and reward those who have
dedicated their work to benefit older people.
This year’s winner of the $250,000 prize was
Professor Kenneth Rockwood, a geriatrician,
researcher, academic and anti-ageism campaigner.
Professor Rockwood was selected for his
truly unique contribution to the understanding
of ageing. His Clinical Frailty Scale is used
internationally, and he has made a massive
contribution to scientific literature with hundreds
of peer-reviewed articles and contributions in
the world’s leading medical research journals.
Accepting the award from the Right Honourable
Jacinda Ardern, Prime Minister of New Zealand,
Professor Rockwood said, “This is fantastic
recognition, and the timing could not be better
given COVID. It will give momentum and
recognition to do a whole lot more research and
work for a greater good.’’
2018 Professor Takanori Shibata
(Robotics)
2019 Dr Michael Fehlings
(Degenerative cervical myelopathy research)
2020Miia Kivipelto
(Alzheimers research)
Image: Professor Kenneth Rockwood,
2021 Ryman Prize recipient.
ANNUAL REPORT 2022
53

Ryman Foreman Ian Lee on site at our Miriam Corban Village in Auckland.
Ian was attracted to Ryman’s scale and in-house capabilities.
54
RYMAN HEALTHCARE

Building a solid
platform to grow
55
ANNUAL REPORT 2022

Our villages are designed,
built, sold and operated
by Rymanians. Our ability
to manage every stage
of a village’s life cycle
means that our purpose
of exceptional care is
always at the forefront.
It influences all of our
conversations and drives
the decisions we make.
Design, development and construction under
one roof
The process of building a successful village is more than just buying
a piece of land and constructing buildings on it. Bringing design,
development and construction under one roof enables us to unify
the life cycle of a village. It means our teams work cohesively
throughout each step of the process. This collaboration creates a
better environment for success, with improvements and efficiencies
achieved at each stage.
Led by our chief construction officer, our team has the skills,
breadth of knowledge and capability to deliver at the complexity,
scale and pace required for our portfolio of villages. With expansive
experience in the construction industry and the introduction of new
technologies, systems and processes, we have lifted our approach
in this area and will continue to see the benefits of the changes and
additional rigour put in place.
Ryman is a major player in the construction industry in both
New Zealand and Victoria, Australia.
During the last financial year, we invested over $780.0 million into
building homes for Ryman residents, lifting our investment in
villages and critical healthcare infrastructure to $3.36 billion over
the last 5 years.
We delivered 560 new independent units and serviced apartments,
and 151 care rooms. We also opened three new village centres during
the year.
Despite COVID restrictions and outbreaks, our dedicated team
of 58 sales advisors welcomed over 1,500 new residents into our
independent units and serviced apartments and have booked over
$1 billion of gross occupancy advances.
RYMAN HEALTHCARE
56

Facing in to the construction headwinds
We have been using our scale and long-standing relationships with
suppliers to manage the headwinds currently facing the construction
sector, including supply chain constraints, material availability and
cost inflation.
As we navigate our way through the next 12 to 24 months, it is
critically important that we remain committed to forward planning.
We will continue driving efficiencies in the way we approach our
work for the delivery of each stage of development. We will continue
making the most of our scale and position in the market and we will
make sure we have the right people and resources in place at the
right time.
Lots of little efficiencies create great gains
As a company that provides exceptionally high standards in care,
our drive for continuous improvement never sleeps.
We’ve been developing our technology platforms to ensure we have
the best systems in place to meet the demands associated with
building and operating across an increasing number of sites. This
enhances our capabilities now and in the future.
This year, we will introduce the construction management platform
Procore. This will help streamline our processes at the project level,
leading to improved communication, documentation, accountability
and efficiencies.
The adoption of Salesforce over the coming year will enable us to
harness the advanced capabilities of this world-leading platform
to improve sales analysis and productivity. We will apply workflow
modifications across the business, from sales through to how we
modify and refurbish our units.
There’s plenty
of opportunity
for great gains
to be made by
introducing lots of
little efficiencies.
That is what
we’re focused on
right now.”
“
Chris Evans,
Chief Construction Officer
ANNUAL REPORT 2022
57

Expanding our growth runway
The population of people aged over 75 in Australia
is over five times larger than in New Zealand and
provides an enormous growth opportunity for
our business.
Having successfully launched in Victoria, we have
proven that our strategy and culture is transportable
to another jurisdiction.
We’ve learned an enormous amount since
we entered the market 10 years ago and have
celebrated a number of successes.
With the adoption of a new organisational structure,
the appointment of our first chief executive of the
Australian business, the opening of our seventh
operational village and a further eight villages
either under way or in the land bank, many of the
challenges we faced entering a new market are
now behind us.
Ryman is a major player in the construction industry
As a developer of retirement living and aged-care facilities,
we are a significant employer across the construction
sector. We have a large in-house team of designers, quantity
surveyors, project managers, health and safety advisors,
quality advisors and support staff.
Construction of our villages sees small communities formed
with upwards of 300 staff and subcontractors on site during
the peak development of any one village.
under construction across
New Zealand and Australia
16 sites
Having a CEO of the Australian business who is
supported by a highly capable local senior leadership
team with a deep understanding of the local market,

has bolstered our capabilities on
the ground
and further enhanced our understanding
of the
Australian market.
The purchase of three new sites in Victoria over
the year has lifted our Australian land bank to nearly
twice that of our current asset base.
With an aim of maintaining the land bank at around
2,800 beds and units, we continue to seek out
sites around the Melbourne metropolitan area.
Having the right mix of sites in the land bank means
we are well positioned to lift both our build rate and
the value we create from this portfolio over the
next 5 years.
We have proven that our strategy and culture
is transportable to another jurisdiction.”
“
Claire Higgins, Director
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58

The benefit of higher-value locations
As we have grown, so too has our balance sheet
and our aspirations. This has seen us tilt our
portfolio towards higher-value areas, including
Auckland and Melbourne, over recent years.
While development in these areas can have
higher upfront costs associated with the
purchase of land and the style of village, this is
more than offset by the considerable future
value created.
This value can be seen in the resale bank we have
accumulated. Our resale bank, or the difference
between what our current residents paid and
what the next residents are expected to pay if
we sold that unit at current prices, is $1.87 billion.
This is up more than 146 percent over the last
5 years and in part reflects our push into these
higher-value markets along with wider property
market movements. Our resale bank underpins
our future resale gains, and we expect to realise
this amount over the next 6 to 7 years as the
portfolio turns over.
Even though our build rate has remained relatively
stable over the last 5 years, by focusing on
building villages in higher-value locations, we
have created significant value, and over the long
term the benefits of this will continue to accrue
to shareholders.
The value creation that comes from what we are
currently building and what we are primed to build
with our land bank is also significant. We anticipate
the 29 sites in our land bank will generate capital
proceeds of $6.8 billion when they are completed,
fully occupied and sold down.
A land bank with a great mix of sites
We are focused on ensuring we have the right
mix of sites in our land bank, including the style
of villages we are building. This is important as it
allows us to more effectively manage our working
capital requirements, the consenting process,
the needs of our communities, our build and the
speed at which we recycle capital.
During the year, this mix was enhanced by the
purchase of four new sites – Rolleston in
Canterbury and Mulgrave, Kealba and Coburg
North in Victoria. We also purchased additional
land adjacent to our Deborah Cheetham Village
in Ocean Grove and a small operating retirement
village next to our Essendon site. We now have
a land bank of sites that stretches over half a
decade in front of us.
While COVID has seen construction on some of
our sites halted at times during the year, it has also
presented opportunities. We have been able to
drive forward on the consenting process, and
57 percent of our pipeline is currently consented.
We believe that our focus on higher-value
locations will support the delivery of superior
long-term returns for investors through greater
upfront selling prices, which result in a higher
recurring earnings stream through management
fees collected and resale earnings.
This increase in profitability also allows us to
continue to invest in our people and our systems
and technologies, enabling us to enhance the
resident experience and ultimately bring Ryman
to more communities.
ANNUAL REPORT 2022
59

Auckland
DesignConsentingConstructionVillage
open
Final
stages
Council
approval
Targeted
village
completion
Our development pipeline
Rest of
New Zealand
2023
2023
2024
2025
2026
TBC
TBC
TBC
TBC
TBC
2024
2025
2026
2024
TBC
TBC
Linda Jones
James Wattie
Kevin Hickman
Northwood
Park Terrace
Cambridge
Karori
Newtown
Rolleston
William Sanders
Miriam Corban
Keith Park
Murray Halberg
Takapuna
Kohimarama
Karaka
Targeted village completion is a calendar year date. It is based on current estimates and may vary from the
final completion date.
RYMAN HEALTHCARE
60

DesignConsentingConstructionVillage
open
Final
stages
Council
approval
Targeted
village
completion
Australia
2022
2022
2022
2024
2024
2024
TBC
2026
TBC
TBC
TBC
TBC
TBC
Charles Brownlow
John Flynn
Raelene Boyle
Nellie Melba
Deborah Cheetham
Highett
Ringwood East
Mt Eliza
Mt Martha
Essendon
Mulgrave
Kealba
Coburg North
ANNUAL REPORT 2022
61

RYMAN HEALTHCARE
62

Having lived and breathed construction her whole life,
Senior Quantity Surveyor Liz De Villiers was looking for
an exciting new challenge – and Ryman fit the bill.
A great team that
values diversity
The opportunity to work
within a company where the
developer, contractor and
operator were all under one
roof is what initially attracted
Liz to Ryman.
A big drawcard was the ability
to regularly brainstorm and
problem solve with different areas
of the business. For Liz, that’s
where innovation flourishes.
Liz also loves the caring
aspect and says, “Ryman has
a reputation for looking after
its people and being a big
supporter of work-life balance.”
Ryman’s flexible working policy
enables mums like Liz to
structure work responsibilities
around home life.
Flexible options such as the
ability to work from home or
vary her working schedule
make a big difference to Liz and
her family.
Working both on site and in
the office, Liz enjoys the diverse
and resilient teams she works
with and has noticed the number
of women in construction
has grown.
“How great is that? Construction
is about teamwork. Having a
diverse team with different life
experiences and construction
backgrounds across residential,
commercial and civil projects
has been brilliant.”
“Ryman has a reputation for
looking after its people.
Liz De Villiers, Senior Quantity Surveyor
”
Image: Liz enjoying the on-site aspect of her role at our Kevin Hickman
Village in Christchurch.
ANNUAL REPORT 2022
63

Artist’s impression of our Raelene Boyle Village in Aberfeldie,
Melbourne which includes a host of sustainable design features
such as rain gardens and a solar energy generation system.
64
RYMAN HEALTHCARE

Caring for our
environment
65
ANNUAL REPORT 2022

As the science around
understanding climate
change and climate risk
has developed globally,
we have elevated our
activity on sustainability.
We’ve brought on
additional internal and
external expertise to
enhance our capabilities
and formalise our
approach in this area.
Our principles of sustainable design
Our 11 principles of sustainable design guide our approach to
designing villages. Each village is treated as unique, and homes are
designed utilising modern technologies that consider environmental
and social impacts and harness natural resources where possible
– all with the goal of improving the health and happiness of our residents.
Measuring our emissions
The care of our residents is our number one priority. We use a
large amount of electricity to keep our residents comfortable and
to ensure our safety systems are continuously operating. This
means electricity is the largest contributor to our operational
emissions footprint.
Despite our absolute emissions for the year to 31 March 2021
rising by 1.9 percent, we have achieved a 22 percent reduction
in our carbon mandatory scope 1, 2 and 3 emissions per $m of
turnover from 2017 to 2021. We are focused on meeting our
30 percent reduction target by 2023.
GHG operational emissions by source (year to 31 March 2021)
Electricity
fiNZffi fffl
Electricity
fiVICffi fffl
Natural gas
fiffifffl
Air travel
fiffifffl
fiffifffl
Waste
fiffifffl
Fuel
RYMAN HEALTHCARE
66

Total gross GHG emissions
(tCO
2
e)
fiffiffffff
fiffiffffff
fiffiffflflfl
fiffiffflflfl


Base)






Total gross emissions (LHS)
Number of residents (RHS)
Total gross GHG emissions per $m turnover
(tCO
2
e)
The unprecedented operating environment under
COVID resulted in a 74 percent decline in our air
travel-related emissions when
compared to 2020.
This offset a large proportion
of emissions related
to the opening of a new village.
Like all businesses, we have adapted to a new
approach in developing new ways of doing
business, and we expect to see a continuation
of the behaviours that enabled a reduction in
air travel-related emissions in the years ahead.
This year, we have extended our scope 3 emissions
inventory to include additional emissions related
to the disposal of waste and recycling, including
glass and composting.
In the coming year, we will carry out a materiality
assessment of the emissions associated with
our supply chain. Where supply chain emissions
are material relative to the total of our direct and
indirect emissions, we will look to report on these
and publish associated reduction plans.
Planning for the future
As we explore further opportunities to reduce our
impact on the environment, we have turned our
attention to the embodied carbon in our buildings.
Across the building sector, emissions associated
with the use of steel and concrete are significant
contributors to the sector’s carbon footprint.
The work we have been doing over the past
2 years will see us embark on our first
development using a cross-laminated timber
structure at our new Kevin Hickman Village
in Christchurch. The expected reduction in
embodied carbon in the cross-laminated structure
is approximately 80 percent.






(Base)

ANNUAL REPORT 2022
67

reduction in embodied
carbon for the CLT structure
80%
reduction in
build time
10%
reduction in heavy
vehicle movements
65%
RYMAN HEALTHCARE
68

We have committed to constructing our first mass
timber structure at our new Kevin Hickman Village using
cross-laminated timber in place of some structural
elements previously made from steel and concrete.
Detailed design is under way, with the construction of the
apartments due to commence in September 2022.
Reducing our
embodied carbon
Cross-laminated timber (CLT)
is one of the products produced
through mass timber construction.
This is where multiple layers
of timber are glued together to
form structural panels that can
be used for the floors and walls
of buildings.
Cross-laminated timber has
two significant advantages
over steel and concrete. Being
a natural product, its carbon
content is extremely low. It’s
also a carbon-positive material
– when trees are replanted,
their growth reduces carbon,
and oxygen is released into
the atmosphere.
By substituting concrete and
steel for cross-laminated
timber, we have also addressed
some high-risk health and
safety considerations, including
reducing heavy vehicle
movement
for on-site deliveries
by 65 percent.
We are now looking at future
opportunities for its use in
other new builds as well as
additional ways to reduce
the embodied carbon in our
buildings such as low-carbon
concrete. We are also pursuing
ways in which we can continue
to improve our waste and
recycling from construction sites.
Image: Artist’s impression of our Kevin Hickman Village apartment buildings.
ANNUAL REPORT 2022
69

Step by step we can make a difference
One of many sustainability initiatives being
undertaken across the business is our partnership
with City to Farm. Since 2019, in partnership with
City to Farm, our Evelyn Page Village in Auckland
has been diverting food scraps away from landfill.
The food scraps are composted on local farms
and used to transform heavy, infertile clay into rich
soil that can support food production, in this case,
banana palms.
50 tonnes of food scraps have now been
diverted from landfill, removing the possibility
that this waste could have emitted 138 tonnes of
greenhouse gases into the environment.
The building of predator traps by our residents
for the Department of Conservation and Predator
Free New Zealand has gathered a huge amount
of momentum over the past year.
Our residents have partnered with charity
Doubtless Conservation and have been busy
building predator traps to protect some of our
most precious species in the South Island high
country. All materials are supplied by Ryman, and
our fantastic residents provide the muscle and
know-how.
The recycling and diverting of construction waste
from landfill at our Auckland and Melbourne
sites continued to improve over the year. We are
currently recycling 87 percent of construction
waste from these sites. We have seen a consistent
improvement in this trend since we began
collecting data in 2019.
Image: Ryman-made predator traps being transported
to the Doubtful Valley.
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70

Strengthening our expertise
Along with a lift in individual initiatives happening around the group,
we are maturing our understanding around sustainability. This is
reflected in the additional internal and external expertise we have
incorporated into our structure.
During the year, we appointed a dedicated sustainability manager.
In addressing our climate-related risks, we have begun a
programme of work that will ensure we are taking the necessary
steps to address climate change risks while taking advantage of
any opportunities that will arise.
Our board has acknowledged its responsibility for identifying and
managing our climate-related risks and opportunities, and our
disclosure responsibilities have been assigned to a member of the
senior executive team with extensive expertise in sustainability.
The next step in our journey
As part of this programme of work, we have completed a climate
change maturity assessment of our structures, policies and
processes against international standards. We have developed
a roadmap of priority actions to improve our climate-related
risk management policies and processes across the areas of
governance, strategy, risk management, and metrics and targets.
This comprehensive roadmap will be actioned over the next 3 years
as we work to build organisational resilience and capture value
associated with the net-zero transition.
We have engaged the expertise of KPMG to identify the impact of
a range of climate scenarios on our operations, now and in the
future, and to develop adaptive measures to manage the identified
risks and opportunities. A 3-year action plan has been developed to
ensure we meet our climate-related disclosure requirements, which
are expected to be confirmed by the External Reporting Board in
late 2022.
This body of work positions us well to meet these disclosure
requirements, which will be included in our 31 March 2024
annual report.
We want to
leave our planet
in good shape
for generations
to come.
Our residents,
our team and
our investors all
share this goal.”
“
Greg Campbell,
Chair
ANNUAL REPORT 2022
71

Area
Governance
Establish governance
processes and update
policies
to incorporate
climate change risks.
Assign climate change
responsibilities to key
oversight groups at both
senior executive team
and board level.
Provide climate risk training
to our senior leaders.
Consider the appropriateness
of establishing a technical
advisory committee.
Assess climate change
skills gap across board and
senior executive team on
an ongoing basis.
Enhance governance skills
and performance across board
and senior executive team
on an ongoing basis,
including
integrating climate
change
issues with governance
performance reviews/audits.
Year 1
activities
Year 2
activities
Year 3
activities
Our 3-year action plan
Roadmap to addressing
climate-related risks
This comprehensive roadmap of
priority actions will be carried out
over the next 3 years.
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72

Strategy
Carry out a risk and
opportunity assessment
using scenario analysis.
Develop a strategy to
address our material
climate change risks
and opportunities.
Establish an action plan
to address our material
climate-related risks
and opportunities.
Carry out a capacity
assessment for
effective climate-related
decision making.
Integrate climate change
considerations into our
business, strategy and
financial planning.
Execute a second iteration
of our climate risk and
opportunity assessment.
Develop a process for
systematically identifying and
analysing
climate-related risks.
Develop a plan to manage
climate-related risks.
Document the extent to
which our climate-related
targets have been informed by
external parameters (such as
science-based targets).
Integrate climate change
risk management processes
into our operations.
Select climate change
metrics based on a
materiality and/
or risk and
opportunity assessment.
Document target setting
objectives and establish targets
for capital deployment and
climate-related opportunities.
Broaden metrics to include
our other climate-related
impacts and risks including
supply chain.
Enhance measurement
processes of our overall
climate-change risk
management progress by
establishing targets to
encompass the delivery of
our climate-related strategies,
plans and policies.
Risk managementMetrics and targets
ANNUAL REPORT 2022
73

Clinical Manager Madelyn Premacio (far right) with her care team at
our Charles Upham Village in Canterbury, whose outstanding daily
efforts demonstrate what it means to be a Rymanian.
74
RYMAN HEALTHCARE
74

Investing in our
people
ANNUAL REPORT 2022
75

Our greatest asset is the
people who work here,
and our culture remains
one of our most unique
differentiators.
Our team is the backbone
of our business, and they
have been outstanding
throughout the past
2 years in what can only
be described as a very
challenging period for
the business.
Our people have worked tirelessly to keep themselves and our
residents safe through the extended lockdowns in New Zealand and
Australia. This has included wearing N95 masks and face shields
through the hot summer period, moving to 12-hour shifts during the
height of the Omicron outbreak, undergoing regular testing and, in
some cases, moving out of their homes and into villages to reduce
their potential exposure to COVID.
Our teams are incredibly supportive of each other, and our
culture of kindness and excellence has been invaluable through
the pandemic. Like many other businesses, our workforce was
impacted by the need for people to self-isolate, and our office and
sales teams stepped up to help on site at our villages. Their support
meant that we were able to cover over 400 shifts during this period
and maintain the quality of our resident care at critical times.
We continued to support our people behind the scenes. We’ve been
focused on how we can improve life for our team members and how
we can show appreciation for the incredible work being done to
keep our residents safe.
Culture is not invented. It is
constantly evolving, which is
why it must be nurtured.”
“
applications to join our team
54,741
hours of facilitated
leadership development
5 ,70 8
Greg Campbell, Chair
RYMAN HEALTHCARE
76

Andrew Roberts, Regional Facilities Manager in Victoria,
was one of hundreds of team members who chipped in
at villages to lend a hand during the pandemic and keep
operations running smoothly.
ANNUAL REPORT 2022
77

Investing in the health and wellbeing of our people
We have been very conscious of not only the physical stress
that COVID has had on our teams but also the impact on their
overall wellbeing.
Given the wide range of roles our teams perform every day, they
have faced vastly different experiences.
Some of our people have been working from home for extended
periods of time, some have moved out of home and into our villages,
many are working long hours in face masks and face shields and
everyone has had to deal with the stress of keeping themselves
and our residents safe from an invisible disease.
Strengthening the health and wellbeing of our people is a priority.
With input from the New Zealand Institute of Wellbeing and Resilience,
we have continued to develop our health and wellbeing plan and have
conducted a series of resilience workshops facilitated by renowned
expert Dr Lucy Hone.
The response to these workshops was overwhelming, and as a
result, we commenced a programme of online masterclasses
designed to promote and support wellbeing, resilience and mental
health across our broader team.
As part of our mental health awareness campaign to help
destigmatise mental illness and encourage conversations, we shared
video stories from members of the wider Ryman team. These videos
were viewed over 1,000 times, and our teams were provided access
to health and wellbeing resources through our dedicated wellbeing
channel, accessible by all 6,700 team members.
I have complete
admiration for
our team. Many
had to wear full
PPE for hours
on end. It’s just
amazing, they’ve
been incredible.”
“
Paula Jeffs,
Director
hours of special leave provided
to team members since the
beginning of COVID
110,000
meals a day provided to village
teams during lockdown
3,000
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78

Supporting our teams through COVID
Maintaining our villages as safe havens meant
asking our team members to stay home if they
or anyone in their household was feeling unwell.
It was important to us that our teams were not
financially impacted when needing to stay
away so we put in place uncapped special leave
through this period. To date, we have provided
over 110,000 hours of this special leave to our
team members.
As further recognition of the role our teams
played in providing essential services during
Level 4 lockdown, we paid our New Zealand
village team members an additional $2 per hour.
In Australia, we made an application on behalf of
all village team members for the essential worker
retention bonus, which was subsequently granted
and paid to our teams.
We also provided our village teams with meals
during these periods, which saw us serving an
additional 3,000 meals a day. We established
hydration stations with electrolyte drinks and
nibbles to ensure our team members working
in face shields and masks were taking micro
breaks every hour and staying hydrated.
To date, more than 1,000 Ryman team
members have tested positive for Omicron.
Our People and Culture team continue to make
wellness calls to check on how those team
members are feeling and whether they need any
assistance, and to encourage them to rest and
take the time they need to recover. As a gesture
from their Ryman family, we are also sending
recovery packs to their homes that include treats
and essentials such as paracetamol, throat
lozenges, tissues, soup and other goodies as well
as a useful guide on how to aid their recovery.
Celebrating our people
The annual Ryman Awards is a time for our
teams to come together and celebrate their
achievements over the year. COVID restrictions
meant that for the second year running our awards
night was hosted virtually with Rymanians and their
families beaming in from around the world.
This year’s awards, hosted by New Zealand
TV personalities Hillary Barry and Laura Daniels,
were watched by over 2,500 people. Throughout
the night, team members took to their keyboards
to send messages of congratulations to their fellow
team winners with over 650 messages posted.
ANNUAL REPORT 2022
79

Recruitment, development
and happiness
We say it a lot, but for good reason – our people
are our most precious resource.
We spend quality time recruiting our team members.
Our culture of caring is unique, and it’s something
that we work hard to nurture and protect.
Qualifications, experience and intelligence are
of course very important. However, as a care
business, we hold care, kindness, integrity and
the ability to be a team player in very high regard.
These are the defining qualities of a Rymanian.
Our Ryman characteristics empower our people
to act with kindness and excellence, and we
have developed our own bespoke training and
leadership development programmes to reinforce
these values across the organisation. These
learning activities equip our teams with the tools
and skills necessary to meet our high standards.
Journeying into care
Our nurses, care team and wider village teams are
the front line of our organisation. Every interaction
with a resident or family member, no matter how
small, contributes to our purpose of caring. It takes
a special kind of person to demonstrate this level
of care each and every day.
Our nurses perform a very special role in our
villages and we have invested in ways to nurture
their careers with us. We visit nursing students
and attend career fairs accompanied by a Ryman
nurse to tell our story, providing an open and
supportive forum where nursing students can ask
questions and learn more about nursing in aged care.
Kindness and care
Kindness is in our DNA;
it underpins everything
we do.
Strong teams
We build positive,
trusting teams who
work together as one.
Resilience and
composure
We keep going despite
the bumps in the road.
Strive for
excellence
We innovate and
work hard to earn
our success.
Core characteristics
Communication
We use simple, clear
language that gets
straight to the point.
Lead and empower
We lead others with
kindness, clarity
and support.
Leadership characteristic
RYMAN HEALTHCARE
80

Supporting nurses through their graduate training
Launched in 2019, Ryman’s nurse graduate programme, also known
as Nursing Entry to Practice (NETP), provides support and ongoing
education for graduate nurses as they take their first steps into
the profession. Each NETP graduate is assigned an experienced
clinician who mentors them throughout the year. They are also
supported by the clinical leadership team at their dedicated Ryman
village and our NETP support team.
The majority of our NETP graduate nurse applications are a result
of our presentations to nursing students and attendance at career
fairs. The programme began with two graduates in 2019 and has
grown to nine graduates in 2022. Our aim is to grow this number
each year.
Helping our teams pursue their dreams
We are huge believers in the power of education to change lives,
and we offer several scholarships each year.
The Cashin Scholarship, set up in memory of former Ryman Director
Mike Cashin, is open to all Ryman team members and their immediate
family, including spouses, children and grandchildren. Each year,
members of the Cashin family help to select the winner.
The Graeme Rabbits scholarship is open to all of our team members,
contractors and suppliers. Graeme’s family choose one deserving
person every year to receive 3 years of funding and support to pursue
their choice of education or a community project.
We also offer scholarships to nursing students as a way of supporting
graduates during their final year of study. The scholarship provides
a $6,000 lump sum for graduates to use at their discretion. Since
2020, we have awarded four nursing scholarships – three in
New Zealand and one in Australia.
In total, we offer over $40,000 in scholarships every year to deserving
people both inside and outside of Ryman.
We have nine
graduates in
our nursing
programme.
Our aim is
to grow this
number
each year.”
“
Cheyne Chalmers,
Chief Executive Officer
– New Zealand
ANNUAL REPORT 2022
81

Shanlee Barnes-Webber, Serviced Apartment Coordinator
Working for Ryman under
their values and support is truly
a blessing.”
“
RYMAN HEALTHCARE
82

After becoming the inaugural recipient of the Ryman
Nursing Scholarship, Shanlee Barnes-Webber has
become a real Ryman success story.
From Ryman
scholarship to

unit coordinator
Shanlee’s career has moved
in leaps and bounds since she
was first awarded the $6,000
scholarship in 2017, an award
specifically aimed at third-year
nursing undergraduates.
It was the perfect segue into
Ryman’s NETP programme,
which gives new graduate
nurses the support and
supervision they need during
their first year in the profession.
Shanlee worked as a registered
nurse in the hospital at our
Diana Isaac Village in
Christchurch for a further
6 months after the NETP
programme. During this time,
she made a point of grabbing
every opportunity that came
her way.
“I put my hand up to do any
training and extra tasks I could.
“I was part of the COVID
vaccination team,
PCR testing,
catheterisation and I am trained
to do mask fit testing too.”
Then in February 2022, the
serviced apartment unit
coordinator role came up.
“I was unsure if I was going to
apply, but I had a lot of support
and encouragement from my
co-workers, and it’s the best job
I’ve ever had.”
Shanlee’s story is a recurring
theme at Ryman, and the
happiness she enjoys in her
role is one of the many reasons
why investing in our people is
so important.
Image: Shanlee enjoying a regular visit with serviced-apartment residents
June and Jack – the trio share a special bond.
ANNUAL REPORT 2022
83

Artist’s impression of our upcoming Highett Village located in the sought-after
suburb of Bayside in Melbourne – a prime example of a high-value site that will
generate strong returns.
84
RYMAN HEALTHCARE

Our
financials
85
ANNUAL REPORT 2022

Our history of strong
financial performance
and development pipeline
of 29 new villages sets
us up for sustainable
future growth.
86
RYMAN HEALTHCARE

6-year summary
FOR THE YEAR ENDED 31 MARCH 2022
20222021202020192018
2017
Financial
Underlying profit (non-GAAP)$m255.0224.4242.02 27.0203.5178.3
Reported net profit after tax$m692.9423.1264.7326.0388.2356.7
Net operating cash flows$m586.0413.1449.8401.4349.3322.8
Net assets$m3,434.52,829.22,301.02 ,170.11,940.51,652 .1
Interest-bearing debt to interest-
bearing debt-plus-equity ratio%43%44%42%38%35%34%
Dividend per sharecents22 .422 .424.222 .720.41 7. 8
Villages
New sales of occupation rightsno.560503513414458600
Resales of occupation rightsno.983925923824825718
Total sales of occupation rightsno.1,5431,4281,4361,2381,2831,318
Land bank (to be developed)
1,2
no.6,3066,1466,5956,5935,9525,554
Portfolio:
Aged-care bedsno.4,2394,0873,9113,6603,3673,281
Retirement-village unitsno.8,5387, 9 8 37,4 2 36,8786,4145,968
Total units and bedsno.12,77712,07011,33410,5389,7819,249
1 Includes retirement-village units and aged-care beds.
2 Of the 6,306 units and beds in the land bank, 2,581 are subject to resource and building consent.
20222021202020192018
2017
Underlying profit (non-GAAP)$m255.0224.4242.02 27.0203.5178.3
Plus unrealised fair-value movement
on retirement-village units$m4 67.1201.2(70.9)102.4185.3184.7
Plus deferred tax movement
$m
(29.2)12 .693.6(3.4)(0.6)(6.3)
Less impairment – loss on disposal
$m
-(15.1)----
Reported net profit after tax$m692.9423.1264.7326.0388.2356.7
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.
* Generally Accepted Accounting Principles.
ANNUAL REPORT 2022
87

88
RYMAN HEALTHCARE

Financial statementsFinancial statements
Consolidated financial statements
90 Consolidated income statement
91 Consolidated statement of comprehensive income
92 Consolidated statement of changes in equity
93 Consolidated balance sheet
94 Consolidated statement of cash flows
Notes to the consolidated financial statements
95 Statement of compliance
95 Basis of preparation
96 Measurement base
96 Critical judgements in applying accounting policies
96 Adopting new and amended standards and interpretations
96 Standards and Interpretations on issue but not yet adopted
97 COVID-19
97 Summary of significant accounting policies
108 Other notes
108 Operating expenses
109 Depreciation and amortisation expense
109 Finance costs
110 Income tax
112 Trade and other receivables
113 Property, plant and equipment
116 Investment properties
118 Intangible assets
118 Cash and cash equivalents
118 Trade and other payables
119 Employee entitlements
119 Interest-bearing loans and borrowings
122 Lease liabilities
123 Occupancy advances (non-interest bearing)
124 Share capital
124 Reserves
126 Dividends
126 Related-party transactions
127 Key management personnel compensation
128 Financial instruments
139 Commitments
139 Contingent liabilities
139 Reconciliation of net profit after tax with net cash flow from operating activities
140 Subsidiary companies
141 Segment information
143 Employee share schemes
145 Subsequent events
145 Authorisation
Independent auditor’s report
146
90
95
ANNUAL REPORT 2022
89

The accompanying notes form part of these financial statements.
Consolidated income statement
FOR THE YEAR ENDED 31 MARCH 2022
Notes20222021
$000
$000
Care fees398,206359,241
Management fees105,55293,170
Interest received41103
Other income4,9983,280
Total revenue508,797455,794
Fair-value movement of investment properties7745,885416,847
Total income1,254,682872,641
Operating expenses1(466,238)(395,306)
Depreciation and amortisation expense2(35,698)(32,368)
Finance costs3(30,664)(19,365)
Loss on disposal6-(15,102)
Total expenses(532,600)(4 6 2 ,1 4 1 )
Profit before income tax722,082410,500
Income tax (expense)/credit4(29,209)12,561
Profit for the year692,873423,061
Earnings per share
Basic and diluted (cents per share) 15138.684.6
RYMAN HEALTHCARE
90

Consolidated statement of comprehensive income
FOR THE YEAR ENDED 31 MARCH 2022
Notes20222021
$000$000
Profit for the year692,873423,061
Items that will not be later reclassified to profit or loss
Revaluation of property, plant and equipment (unrealised)6, 16a-195,793
-195,793
Items that may be later reclassified to profit or loss
Fair-value movement and reclassification of cash-flow hedge reserve16b38,4107,0 57
Deferred tax movement recognised in cash-flow hedge reserve16b(10,857)(1,976)
Movement in cost of hedging reserve16c1,3193,753
Deferred tax movement in cost of hedging reserve16c(369)(1,051)
Gain/(Loss) on hedge of foreign-owned subsidiary net assets16d690(4,414)
(Loss)/Gain on translation of foreign operations16d(1,977)16,546
27, 2 1 619,915
Other comprehensive income2 7, 2 1 6215,708
Total comprehensive income720,089638,769
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.
ANNUAL REPORT 2022
91

The accompanying notes form part of these financial statements.
Consolidated statement of changes in equity
FOR THE YEAR ENDED 31 MARCH 2022
Notes
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 202033,2902 5 7,7 7 5(1 7,1 4 3 )-(10,345)(32,359)2,069,7592,300,977
Profit for the year16------423,061423,061
Other comprehensive
income for the year
16
-195,7935,0812 ,70212,132--215,708
Total comprehensive
income for the year
16
-195,7935,0812 ,70212,132-423,061638,769
Treasury stock
movement
16
-----(3,030)-(3,030)
Dividends paid to
shareholders
17
------(107,500)(107,500)
Balance at
31 March 202133,290453,568(12,062)2 ,70 21,7 87(35,389)2,385,3202,829,216
Balance at
1 April 202133,290453,568(12,062)2 ,70 21,7 87(35,389)2,385,3202,829,216
Profit for the year16------692,873692,873
Other comprehensive
income for the year
16
--27,553950(1,287)--27, 2 1 6
Total comprehensive
income for the year
16
--27,553950(1,287)-692,873720,089
Treasury stock
movement
16
-----(2 ,785)-(2 ,785)
Dividends paid to
shareholders
17
------(112,000)(112,000)
Balance at
31 March 202233,290453,56815,4913,652500(38,174)2,966,1933,434,520
RYMAN HEALTHCARE
92

The accompanying notes form part of these financial statements.
Consolidated balance sheet
AT 31 MARCH 2022
Notes20222021
$000
$000
Assets
Cash and cash equivalents928,30920,171
Trade and other receivables5671,463542,798
Inventory26,31226,738
Advances to employees2615,41511,141
Property, plant and equipment62,091,0011,658,583
Investment properties78,027,2676, 8 3 7, 278
Intangible assets851,68442,444
Derivative financial instruments201 9,574-
Deferred tax asset 435,05732,456
Total assets10,966,0829,171,609
Equity
Issued capital1533,29033,290
Reserves16435,037410,606
Retained earnings16f2,966,1932,385,320
Total equity3,434,5202,829,216
Liabilities
Trade and other payables10264,254106,072
Employee entitlements1139,81232,034
Revenue in advance81,25171,817
Derivative financial instruments2027, 2 9 128,611
Refundable accommodation deposits199,783113,666
Interest-bearing loans and borrowings122 ,576,7372,274,093
Occupancy advances (non-interest bearing) 144,286,4593,702,215
Lease liabilities1313,49413,885
Deferred tax liability 442 ,481-
Total liabilities 7,531,5626,342,393
Total equity and liabilities10,966,0829,171,609
Net tangible assets
Basic and diluted (cents per share)15676.65 57.4
ANNUAL REPORT 2022
93

The accompanying notes form part of these financial statements.
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 MARCH 2022
Notes20222021
$000
$000
Operating activities
Receipts from residents231,396,1551,176,401
Interest received266229
Payments to suppliers and employees(4 35,170)(421,135)
Payments to residents(346,030)(323,810)
Interest paid(29,243)(18,566)
Net operating cash flows23585,978413,119
Investing activities
Purchase of property, plant and equipment(284,288)(219,416)
Purchase of intangible assets(14,346)(9,462)
Purchase of investment properties(434,395)(577,504)
Capitalised interest paid(50,006)(37,179)
Advances to employees(4, 275)(917)
Net investing cash flows(787,310)(844,478)
Financing activities
Drawdown/(repayment) of bank loans (net)57,6 74(36,712)
Proceeds from the Institutional Term Loan269,243-
Proceeds from the issue of retail bonds-150,000
Proceeds from US Private Placement notes-416,874
Dividends paid(112,000)(107,500)
Purchase of treasury stock (net)(2 ,785)(3,030)
Repayment of lease liabilities (2,662)(2 ,476)
Net financing cash flows209,470417,156
Net increase/(decrease) in cash and cash equivalents8,138(14,203)
Cash and cash equivalents at the beginning of the year20,17134,374
Cash and cash equivalents at the end of the year28,3092 0,1 7 1
RYMAN HEALTHCARE
94

Notes to the consolidated financial statements
FOR THE YEAR ENDED 31 MARCH 2022
The notes to the financial statements include information which is considered relevant and
material to assist the reader in understanding changes in the Group’s financial position
and performance. Information is considered relevant and material if:
• the amount is significant because of its size or nature
• it is important for understanding the results of the Group
• it helps explain changes in the Group’s business
• it relates to an aspect of the Group’s operations that is important to future performance.
STATEMENT OF COMPLIANCE
The financial statements presented are those of Ryman Healthcare Limited (the Company),
and its subsidiaries (the Group). Ryman Healthcare Limited is a profit-oriented entity
incorporated in New Zealand that develops, owns, and operates integrated retirement
villages, resthomes, and hospitals for the elderly within New Zealand and Australia.
Ryman Healthcare Limited is a Financial Markets Conduct reporting entity under the Financial
Reporting Act 2013 and the Financial Markets Conduct Act 2013. Its financial statements
comply with these Acts.
The consolidated financial statements have been prepared in line with Generally Accepted
Accounting Principles in New Zealand (NZ GAAP). The statements comply with New Zealand
equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable
financial reporting standards.
The consolidated financial statements also comply with International Financial Reporting
Standards (IFRS).
BASIS OF PREPARATION
Accounting policies are selected and applied in a way that ensures the resulting financial
information satisfies the concepts of relevance and reliability, and the substance of the
underlying transactions or other events is reported.
The accounting policies set out below have been consistently applied in preparing the financial
statements for the year ended 31 March 2022. These policies have also been applied to the
comparative information presented for the year ended 31 March 2021.
The information is presented in thousands of New Zealand dollars (NZD).
All reference to AUD refers to Australian dollars.
All reference to USD refers to US dollars.
ANNUAL REPORT 2022
95

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
MEASUREMENT BASE
The Group follows the accounting principles recognised as appropriate for measuring and
reporting financial performance and financial position on a historical-cost basis, except when:
•certain property, plant and equipment is subject to revaluation (note 6)
•investment property is measured at fair value (note 7)
•certain financial assets and liabilities are measured at fair value (note 20).
CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES
In applying the Group’s accounting policies, management must make judgements, estimates,
and assumptions about the carrying value of assets and liabilities that are not readily apparent
from direct sources.
The estimates and associated assumptions are based on historical experience and various
other factors that are reasonable under the circumstances. The results form the basis of
making the judgements. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised, if the
revision affects only that period. Revisions to accounting estimates are recognised in the
period of the revision and future periods, if the revision affects both current and future periods.
The following accounting policies and notes contain information about significant areas of
estimation uncertainty and critical judgements in applying accounting policies that have the
most significant effect on the amounts recognised in the financial statements.
•
Valuation of property, plant and equipment – policy (d) and note 6
•
V
aluation of investment property – policy (f) and note 7.
ADOPTING NEW AND AMENDED STANDARDS AND INTERPRETATIONS
In the current year, the Group adopted all mandatory new and amended standards
and interpretations.
STANDARDS AND INTERPRETATIONS ON ISSUE BUT NOT YET ADOPTED
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 2022.
RYMAN HEALTHCARE
96

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
COVID-19
The outbreak of COVID-19, declared by the World Health Organization as a global pandemic
on 11 March 2020, resulted in some uncertainty in both global and local markets in the years
following. New Zealand and Australia responded to the virus with strong public health
measures and a range of economic stimulus packages. Increased vaccination rates and a
move from an elimination to a minimisation strategy with the Omicron variant continues to
reduce the severity of the impact of the pandemic.
The Group continues to adapt its policies and procedures to operate in the conditions created
by COVID-19. Operating within the COVID-19 environment is now considered part of our
business-as-usual environment. The Group has assessed the impact of COVID-19 on the
financial statements. Key accounting judgements in respect of property, plant, and equipment
and investment property no longer have material uncertainties in respect of COVID.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies have been adopted to prepare and present
the financial statements of the Group.
a. Basis of consolidation – acquisition method
The consolidated financial statements are prepared by combining the financial statements
of all the entities that comprise the Group, being the Company (the parent entity) and
its subsidiaries as defined in NZ IFRS 10 – Consolidated Financial Statements. A list of
subsidiaries appears in note 24 to the financial statements.
Consistent accounting policies are used to prepare and present the consolidated financial
statements. All significant inter-company transactions and balances are eliminated in full
on consolidation.
The financial statements of subsidiaries are prepared for the same reporting period as the
parent company, using consistent accounting policies.
Income and expenses for each subsidiary whose functional currency is not New Zealand
dollars are translated at exchange rates that approximate the rates at the actual dates of the
transactions. Assets and liabilities of such subsidiaries are translated at exchange rates at
balance date.
All resulting exchange differences are recognised in the foreign-currency translation reserve,
which is a separate component of equity.
ANNUAL REPORT 2022
97

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
b. Revenue recognition
The Group recognises revenue and income from the following major sources.
• Care fees
• Management fees
• Interest received.
Revenue and income are recognised as follows.
Care fees
Care facility and retirement-village service fees are linked to providing service on a specific
day (service date). Revenue from care and retirement-village service fees are recognised
on completion of the service date.
Management
fees
Residents of the Group’s independent-living units and serviced apartments pay a management
fee for the right to share in the use of the village centre and other common facilities. The
management fee is calculated as a percentage of the occupation-right agreement amount.
The fee accrues monthly, for a set period, based on the terms of individual contracts.
Management fees are recognised on a straight-line basis over the period of service.
The period is determined as being the greater of the expected period of tenure, or the
contractual right to management fees.
The expected periods of tenure, based on historical experience across our villages,
are estimated to be 7 years for independent units and 3 to 4 years for serviced units.
The estimated expected periods of tenure are unchanged from last year.
The timing of when management fees are recognised is an accounting estimate.
Historical experience across all villages is used in determining periods of tenure.
Interest
received
Interest income is recognised in the income statement as it accrues, using the effective
interest method.
c. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction, or production of
qualifying assets (assets that take a substantial period of time to get ready for their intended
use) are added to the cost of those assets until the assets are substantially ready for use.
All other borrowing costs are recognised in profit and loss in the period in which they are incurred.
RYMAN HEALTHCARE
98

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
d. Property, plant and equipment
Property, plant and equipment comprises completed care facilities, corporate assets and land
(including long-term leases of land), and care facilities under development.
All property, plant and equipment is initially recorded at cost. Typically, these costs include the
cost of land, materials, wages, and interest incurred during the period required to complete
and prepare the asset for its intended use.
Following initial recognition at cost, completed care-facility land and buildings are carried at
a revalued amount, which is the fair value at the date of the revaluation, less any subsequent
accumulated depreciation on buildings and accumulated impairment losses.
Independent valuations are performed with sufficient regularity to ensure that the carrying
amount does not differ materially from the asset’s fair value at the balance-sheet date.
Any revaluation surplus is recorded in other comprehensive income and credited to the
asset revaluation reserve included in the equity section of the balance sheet, unless it reverses
a revaluation decrease of the same asset previously recognised in the income statement.
In this case, the increase is credited to the income statement to the extent of the decrease
previously charged.
Any revaluation deficit is recognised in the income statement unless it directly offsets
a previous surplus of the same asset in the asset revaluation reserve, in which case the
revaluation deficit is recorded in other comprehensive income.
In addition, any accumulated depreciation at the revaluation date is eliminated against the
gross carrying amount of the asset, and the net amount is restated to the revalued amount
of the asset.
On disposal, any revaluation reserve relating to the particular asset being sold is transferred
to retained earnings.
An item of property, plant and equipment is derecognised on disposal or when no future
economic benefits are expected to arise from the continued use of the asset.
Any gain or loss arising on disposal of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the item) is included in the income statement
in the period the item is derecognised.
ANNUAL REPORT 2022
99

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
f. Investment properties
Investment properties include land and buildings (including long-term leases of land),
equipment and furnishings relating to retirement-village units and community facilities,
including units and facilities under development. They are intended to be held for the long
term to earn rental income and for capital appreciation.
Retirement-village units and community facilities are revalued on a semi-annual basis and
restated to fair value as determined by the Directors having taken into consideration the
valuation report produced by the independent registered valuer and the requirement of

NZ IFRS 13 – Fair Value Measurement to assume that market participants act in their economic
b
est interest. Any change in fair value is taken to the income statement. The fair value is
determined using discounted cash-flow methodology.
Rental income from investment properties, being the management fee and retirement-village
service fees, is accounted for in line with accounting policy (b).
e.Depreciation
Depreciation is provided on all property, plant and equipment, other than freehold land,
at straight-line (SL) rates calculated to allocate the asset’s cost or valuation, less estimated
residual value, over their estimated useful lives, starting from the time the assets are ready
for use, as follows.
•
Buildings 2% SL
•Plant and equipment 10–20% SL
•Furniture and fittings20% SL
•
Motor vehicles20% SL
The estimated useful lives, residual value and depreciation method are reviewed at the
end of each reporting period, with the effect of any changes in estimate accounted for on
a prospective basis.
No depreciation is provided for investment properties.
Right-of-use assets relating to leases are depreciated on a straight-line basis over the term
of the lease.
RYMAN HEALTHCARE
100

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
g. Intangible assets
Expenditure on research activities is recognised as an expense in the period in which
it is incurred.
An internally generated intangible software asset arising from development (or from the
development phase of an internal project) is only recognised if all the following criteria have
been demonstrated.
• It is technically feasible to complete the intangible asset so that it is available for use or sale.
• The Group intends to complete the intangible asset and use or sell it.
• The intangible asset can be used or sold.
• Probable future economic benefits of the intangible asset can be generated.
• Adequate technical, financial, and other resources are available to complete the
development and use or sell the intangible asset.
• The expenditure attributable to the intangible asset can be measured during its development.
The amount initially recognised for internally generated intangible assets is the sum of the
expenditure incurred from the date when the intangible asset first meets the recognition
criteria listed above. Where no internally generated intangible asset can be recognised,
development expenditure is recognised in profit or loss in the period in which it is incurred.
After initial recognition, internally generated intangible assets are reported at cost less
accumulated amortisation and accumulated impairment losses, on the same basis as
intangible assets that are acquired separately.
Internally generated intangible assets are amortised using the straight-line method at a rate
of 10 percent from the point at which the asset is ready for use. Amortisation is recognised in
profit or loss.
ANNUAL REPORT 2022
101

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
i. Leases
Group as
a lessee
Apart from short-term or low-value assets, leases are included on the balance sheet through the
recognition of right-of-use assets and associated lease liabilities. Right-of-use assets related to
buildings and plant and equipment are presented within property, plant and equipment. Long-
term leases of land are recognised within property, plant and equipment and investment property.
At inception of the lease a lease liability is calculated based on the present value of the
remaining cash flows, discounted using the Group’s incremental borrowing rate. Subsequently,
the lease liability is adjusted for interest and lease payments, as well as the impact of lease
modifications. The right-of-use asset is initially measured at the value of the initial lease
liability, and subsequently measured at cost less accumulated depreciation, adjusted for
any remeasurement of the lease liability.
Where a lease contract contains both lease and non-lease components (for example, tower
cranes), the Group does not separate non-lease components from lease components, and
instead accounts for the whole contract as a lease.
h. Impairment of assets
At each interim and annual balance-sheet date, the Group reviews the carrying amounts of
its assets to determine whether there is any indication that those assets have suffered an
impairment loss. If such an indication exists, the recoverable amount of the asset is estimated
to determine the extent of any impairment loss.
Where the asset does not generate cash flows that are independent from other assets,
the Group estimates the recoverable amount of the cash-generating unit to which the
asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value. The Group
uses a discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset, for which the estimates of future cash flows have not
been adjusted.
If the recoverable amount of an asset (cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its
recoverable amount.
An impairment loss is immediately recognised as an expense, unless the asset is carried
at fair value. In this case, the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset
(cash-generating unit) is increased to the revised estimate of its recoverable amount.
However, this is only to the extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years.
A reversal of an impairment loss is immediately recognised as income, unless the asset
is carried at fair value. In this case, the reversal of the impairment loss is treated as a
revaluation increase.
RYMAN HEALTHCARE
102

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
Cash and cash
equivalents
Group as
a lessor
The Group acts as a lessor under occupation right agreements with village residents.
The assets leased by the Group as a lessor are classified as investment properties and are
accounted for in line with accounting policy (f). Lease income on occupation right agreements
is generated in the form of deferred management fees and is accounted for in line with
accounting policy (b).
Cash and cash equivalents comprise cash on hand, cash in banks and on-demand deposits,
and other short-term, highly liquid investments readily convertible to a known amount of cash
and subject to an insignificant risk of changes in value. This includes all call borrowing, such as
bank overdrafts, used by the Group as part of its day-to-day cash management.
Financial
assets at
amortised
costs
Trade receivables are held to collect contractual cash flows. The cash flows are the payment
of principal and interest.
Trade receivables are measured at amortised cost, less any impairment. This is equivalent
to fair value, being the receivable face (or nominal) value, less appropriate allowances for
estimated irrecoverable amounts.
The allowance recognised is the lifetime expected credit losses based on an assessment of
each individual debtor. It is estimated based on the Group’s historical credit loss experience
and general economic conditions. Expected credit loss represents the expected credit losses
that will result from all possible default events over the expected life of the debtor.
Trade receivables are written off when there is no realistic chance of recovery.
j. Revenue in advance
Revenue in advance represents those amounts by which the management fees over the
contractual period exceed recognition of the management fee based on expected tenure.
k. Financial instruments
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the
Group becomes party to the contractual provisions of the instrument.
The Group calculates its incremental borrowing rate with reference to the external
borrowing facilities available to the Group. The incremental borrowing rate is used to
measure lease liabilities.
Depreciation and finance costs associated with right-of-use assets and lease liabilities
associated with equipment used in the construction of assets are capitalised as a cost of
constructing the asset.
The lease payment for short-term leases and leases of low-value assets is recognised
in the profit and loss over the lease term.
ANNUAL REPORT 2022
103

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
Trade and
other payables
Trade and other payables are measured at amortised cost. This is equivalent to the face
(or nominal) value of payables, which is assumed to approximate their fair value.
Interest-bearing
loans and

borrowings
Bank loans and borrowings are initially recorded at fair value, less directly attributable
transaction costs. After initial recognition, loans and borrowings are measured at amortised
cost. Any differences between the initial amount recognised and the redemption value is
recognised in profit and loss using the effective interest-rate method.
Fair value
estimation
The fair value of financial assets and financial liabilities must be estimated for recognition
and measurement, or for disclosure purposes.
The face (or nominal) value less estimated credit adjustments of trade receivables and
payables is assumed to approximate their fair values.
Occupancy
advances
Occupation agreements confer to residents the right of occupancy of the retirement-village
unit for life, or until the resident terminates the agreement.
Amounts payable under occupation agreements (occupancy advances) are non-interest
bearing and recorded as a liability in the balance sheet, net of management fees and resident
loans receivable. The resident-occupancy advance is initially recognised at fair value and later
at amortised cost.
As the resident may terminate their occupancy with limited notice, and the occupancy
advance is non-interest bearing, the occupancy advance has demand features and so is
carried at face value, which is the original advance received.
The advance, net of management fee, is repayable following both the termination of the
occupation agreement and the settlement of a new occupancy advance for the same
retirement-village unit.
Refundable
accommodation
deposits
Refundable accommodation deposits relate to deposits held on behalf of residents who
reside in rooms in the care centres in Australia and New Zealand. Refundable accommodation
deposits confer to residents the right of occupancy of the room for life, or until the resident
terminates the agreement.
Amounts payable under refundable accommodation deposits are non-interest bearing and
recorded as a liability in the balance sheet.
As the resident may terminate their occupancy with limited notice, and the refundable
accommodation deposit is non-interest bearing, the refundable accommodation deposit
has demand features and so is carried at face value, which is the original deposit received.
The deposit is repayable following the termination of the right to occupy.
RYMAN HEALTHCARE
104

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that
is accounted for as part of the net investment, are accounted for in two ways. Gains or losses
relating to the effective portion of the hedge are recognised in other comprehensive income.

Any gains or losses relating to the ineffective portion of the hedge are recognised in profit or loss.
Hedge
accounting
The Group designates certain derivatives as hedging instruments. At the start of the hedge
relationship, the Group documents the relationship between the hedging instrument and the
hedged item. Risk management objectives and strategies for undertaking hedge transactions
are documented. The Group also documents at the start and on an ongoing basis whether
the hedging instrument is expected to be effective. Hedge accounting is discontinued when
the hedge instrument expires or is sold, terminated, exercised or no longer qualifies for
hedge accounting.
Derivative
financial
instruments
The Group uses derivative financial instruments to manage cash flow, interest rate and foreign
currency risk.
Interest-rate swaps and cross-currency interest-rate swaps (CCIRS) are initially recognised
at fair value on the date a contract is entered into and remeasured to their fair value at each
reporting date.
When Group’s swap arrangements meet the requirements of cash flow hedge accounting,
changes in the fair value of the swaps are recognised in other comprehensive income and
accumulated as a separate component of equity. Amounts deferred in equity are recycled
in profit or loss in the periods when the hedged item is recognised in profit.
When Group’s swap arrangements meet the requirements of fair value hedge accounting,
changes in the fair value of the swaps are taken directly to the income statement for the year,
to offset the change in fair value of the hedged item also recorded in the income statement.
Changes in the fair value of the cost to convert foreign currency to New Zealand dollars (NZD)
of cross-currency interest-rate swaps are separately accounted for as a cost of hedging and
recognised within a new reserve within equity (cost of hedging reserve).
l. Employee entitlements
A liability for benefits accruing to employees for wages and salaries, annual leave, and
long-service leave is accrued and recognised in the balance sheet when it is probable that
settlement will be required, and the liabilities are capable of being measured reliably. The
liability is equal to the present value of the estimated future cash outflows as a result of
employee services provided at balance date.
m. Taxation
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax
is recognised in the income statement except when it relates to items recognised in other
comprehensive income or directly in equity. In this case, it is recognised in other comprehensive
income or in equity.
Hedges
of a net
investment
ANNUAL REPORT 2022
105

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
n. Treasury stock
Shares purchased on market under the leadership share scheme are treated as treasury stock
on acquisition at cost. On vesting to the employee, treasury stock shares are credited to equity
and an employee advance is recorded initially at fair value and later at amortised cost.
Any loss on disposal by the Company (for example, when the employee elects not to take full
responsibility for the loan or leaves before the end of the 3-year restrictive period) accrues to
the Company and is taken directly against equity.
o. GST
Revenues, expenses, assets, and liabilities are recognised net of the amount of Goods and
Services Tax (GST) except when:
• the GST incurred on a purchase of goods and services is not recoverable from the
taxation authority
• receivables and payables are stated with the amount of GST included.
Deferred tax
Deferred tax is provided using the comprehensive balance-sheet liability method. This method
provides for temporary differences between the carrying amount of assets and liabilities for
financial reporting purposes and the amounts used for taxation. Deferred tax is not provided
for on:
• non-depreciating assets (land) included within property, plant and equipment, and
investment properties; and
• temporary differences arising from the initial recognition of assets or liabilities that affects
neither accounting profit nor taxable profit, and does not give rise to equal taxable and
deductible temporary differences.
The amount of deferred tax provided is based on the way the carrying amount of assets and
liabilities are expected to be realised and settled. The tax rates used are those expected to
apply in the period of settlement, based on tax rates enacted or substantively enacted.
A deferred tax asset is recognised only when it is probable that future taxable profits will be
available, and against which the asset can be used. Deferred tax assets are reduced if it is no
longer probable that the related tax benefit will be realised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the
same taxation authority and the Group intends to settle current tax assets and liabilities on
a net basis.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted at the balance-sheet date, and any adjustment to tax
payable for previous years. Current tax for current and prior periods is recognised as a liability
(or asset) if it is unpaid (or refundable).
RYMAN HEALTHCARE
106

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
p.Statement of cash flows
The statement of cash flows is prepared exclusive of GST. This is consistent with the method
used in the income statement.
Cash and cash equivalents comprise:
• cash on hand and demand deposits
•
other short-term, highly liquid investments.
Short-term, highly liquid investments are investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value. These investments
include all call borrowing such as bank overdrafts used by the Group as part of its day-to-day
cash management.
Operating activities represent all transactions and other events that are not investing or
financing activities and includes receipts and repayments of occupancy advances.
Investing activities are those activities relating to the acquisition and disposal of investments
and any other property, plant and equipment, or investment properties.
Financing activities are those activities relating to changes in the equity and debt capital
structure
of the Group and those activities relating to the cost of servicing the Company’s equity capital.
q. Foreign-currency translation
Functional and
presentation
currency
Both the functional and presentation currency of Ryman Healthcare Limited and its
New Zealand subsidiaries is New Zealand dollars ($). The functional currency for its Australian
subsidiaries is Australian dollars (AUD).
Transactions
and balances
Transactions in foreign currencies are initially recorded in the functional currency by applying the
exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated
in foreign currencies are retranslated at the rate of exchange ruling at the balance-sheet date.
All exchange differences relating to the following two items are recognised in other
comprehensive income and accumulated in reserves.
•
The effective portion of a hedge of a net investment in foreign operations
• Differences arising on translation of a foreign operation.
Non-monetary items that are measured at historical cost in a foreign currency are translated
using the exchange rate as at the date of the initial transaction. Non-monetary items carried at
fair value that are denominated in foreign currencies are retranslated at the rates at the date
when the fair value was determined.
The net amount of GST recoverable from, or payable to, the taxation authority is included
as part of the receivables or payables in the balance sheet.
Commitments and contingencies are disclosed net of the amount of GST recoverable from,
or payable to, the taxation authority.
ANNUAL REPORT 2022
107

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
1. OPERATING EXPENSES
20222021
$000
$000
Employee costs (see below)305,759264,400
Property-related expenses64,04454,911
Other operating costs (see below)96,43575,995
Total operating expenses466,238395,306
Employee costs and other operating costs include:
Post-employment benefits (KiwiSaver/Superannuation)10,3338,842
Auditor’s remuneration to Deloitte Limited comprises:
• Audit of financial statements452358
• Australia aged-care reporting87
Directors’ fees (note 19)1,3651,094
Donations^517433
^ No donations have been made to any political party (2021: $Nil).
RYMAN HEALTHCARE
108

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
2. DEPRECIATION AND AMORTISATION EXPENSE
20222021
$000
$000
Depreciation (note 6)
• Buildings9,1668,353
• Plant and equipment12,84910,598
• Furniture and fittings4,4754,391
• Motor vehicles1,4401,413
• Right-of-use assets2,6622 ,476
30,59227, 2 3 1
Amortisation (note 8)
• Software5,1065,137
5,1065,137
Total35,69832,368
3. FINANCE COSTS
20222021
$000
$000
Total interest paid on loans and borrowings (including related fees)59,94550,816
Release of cash-flow hedge reserve (note 16)20,5235,354
Amount of interest capitalised (note 6 and note 8)(50,006)(37,179)
Net interest expense on borrowings30,46218,991
Interest on lease liabilities (note 13)2023 74
Total finance costs30,66419,365
ANNUAL REPORT 2022
109

Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2022
4. INCOME TAX
a. Income tax recognised in income statement
20222021
$000
$000
Tax expense comprises:
Current tax expense--
Deferred tax expense/(credit)29,209(12,561)
Total income tax expense/(credit)29,209(12,561)
The income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense
in the financial statements as follows.
2022202220212021
$000%$000
%
Profit before income tax expense 722,082410,500
Income tax expense calculated at 28%202,18328.0%114,94028.0%
Tax effect of:
Non-taxable income(208,894)(28.9)%(116,717)(28.4)%
Property temporary differences69,5979.3%15,5023.8%
Tax losses recognised(59,636)(8.0)%(45,122)(11.0)%
Other25,9593.5%18,8364.6%
Total tax expense/(credit)29,2093.9%(12,561)(3.0)%
The tax rate used in the above reconciliation is the corporate tax rate of 28 percent (2021: 28 percent)
payable by New Zealand corporate entities on taxable profits under New Zealand tax law. The corporate
tax rate in Australia is 30 percent (2021: 30 percent).
Non-taxable income arises principally from the fair value movement of investment property.
During the period, the Group revised its approach for calculating deferred tax on investment properties
and its estimate of the useful life of buildings included within investment properties and property, plant
and equipment. As a result of this change in accounting estimate, the Group recognised an additional
deferred tax expense and deferred tax liability of $45.3 million.
Total Group tax losses available in New Zealand and Australia amounted to $567.6 million
(2021: $410.7 million) and AU$156.0 million (2021: AU$105.8 million), respectively. Recognition
of the deferred tax asset is based on expected taxable earnings in future periods. There are no
unrecognised tax losses in New Zealand (2021: $Nil) and Australia (2021: AU$Nil).
RYMAN HEALTHCARE
110