Ryman Healthcare Limited – Annual Report 2023
Ryman Healthcare
ANNUAL REPORT 2023
Pictured on the front cover Residents at our Weary Dunlop Village, John and Barbara
captured the hearts of many as stars in our recent Full Life brand campaign.
This image Ryman resident Jean and caregiver Ronalyn Alolor enjoy time together
at our Kevin Hickman Village.
RYMAN HEALTHCARE ANNUAL REPORT 2023
Enhancing freedom,
connection and
wellbeing for people
as we grow older.
Artist’s impression of our upcoming Cambridge Village.
RYMAN HEALTHCARE ANNUAL REPORT 2023
4
06
67
137
172
1 74
Review
06 At a glance
08
Highlights
10
Interim Chair and Group CEO report
20
Full year result commentary
22
Our business and how we create value
26
Our materiality matrix
31
Maintaining the best continuum of care for ageing well
39
Delivering an unparalleled resident experience
45
Expansion targeting high value
53
Pursuing leadership for sustainable performance
64
Awards, charities and community partnerships
Results
69 6-year summary
72
Consolidated financial statements
78
Notes to the consolidated financial statements
132 Independent auditor’s report
Corporate governance
140 Directors
142
Senior executives
144
Statement of corporate governance
Thank you to our team of Rymanians
Our villages and directory
About this report
This is the sixth annual report for Ryman Healthcare Limited (Ryman)
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 provide insights into how their businesses
create value and how this value contributes to sustainable returns
for stakeholders over the long term.
This report covers the period 1 April 2022 to 31 March 2023. Where
appropriate, we have also included updates on events, activities and
developments post-balance date that we deem relevant to a better
understanding of our performance.
5
1,519
booked sales of
occupation rights
2 .1 %
of total
units available
for resale
$1.78bn
resale bank for
future sales
$12.51bn
total assets
33.1%
debt to
debt-plus-equity
gearing
$272.6m
operating
EBITDA
1
-$389.0m
free cash flow
1
At a glance
-1.6%
29.4%93.2%
1 4 .1 %
0.7 %
2
-4.8%
-9.5%
2
$257.8m
reported profit
-62.8%
18.4%
1 For a definition of operating EBITDA and free cash flow refer to page 21. For a definition of underlying profit, refer to page 69.
2
Percentage points.
$301.9m
underlying
profit
1
RYMAN HEALTHCARE ANNUAL REPORT 2023
6
45
villages open
4,456
care beds
3
7,200
team members
14
sites under construction
11
sites in the land bank
13,900
residents
38 New Zealand villages
7 Australian villages
9,142
retirement-village units
3
9x voted
Reader’s Digest
Most Trusted Brand
$500,000+
donated to charitable
partnerships
Aged Care and
Retirement Villages category
3 Units and beds are included in the portfolio on a complete or near-complete basis. See appendix 23 in the Ryman Healthcare
FY23 full year result presentation for our definition of ‘near complete’. This can be found on the Ryman website.
7
Discussion
We release our aged care
policy discussion paper
in Australia
Expansion
Construction starts at our new
Cambridge Village with the
support of Ngāti Koroki Kahukura,
Waikato River iwi
Development
Our purchase of a 9.8ha site in
Taupō adds a townhouse-style
development to our land bank
Sustainability
We launch our
sustainability strategy
Event
Our residents walk a
combined 43,000km in our
2022 Active Ageing Event:
Walking for Wellness
Philanthropy
We donate $422,000 to
the Prostate Cancer Foundation
June
April
2022
JulySeptember October November
Highlights
Our Taha Māori Kaitiaki, Irihapeti, and Harry of Ngāti Koroki Kahukura
walking the whenua/land for iwi engagement.
Ryman residents taking part in our
Walking for Wellness event.
Generosity
Residents begin knitting
over 14,000 Yuri Bears
for Ukrainian children
RYMAN HEALTHCARE ANNUAL REPORT 2023
8
March
June
2023
Ryman Prize
World-leading neuropsychiatrist
Professor Perminder Sachdev
becomes the eighth winner
of the $250,000 Ryman Prize
Industry-first
Our agreement with renewable
energy fund Solar Bay
represents a first for the
retirement industry
Award
We win Operator of the Year
(Ageing in Place) at the
Asia-Pacific Eldercare
Innovation Awards
Equity raise
We complete our
$902.4 million equity raise
Technology
Our new myRyman Resident
App hits the milestone of
being rolled out to half of our
New Zealand villages
Progress
Our 8.9ha site in Mt Eliza,
Victoria gets planning approval
from the Victorian Civil and
Administrative Tribunal
Recognition
We win the Reader’s Digest
Most Trusted Brand award for
the ninth time in the Aged Care
and Retirement Villages category
Support
We rally around our flood-affected
residents and staff in Auckland
and Hawke’s Bay
January December February April May
Artist’s impression of our proposed
Mt Eliza Village.
The Right Hon Jacinda Ardern and Professor Perminder Sachdev.
9
Interim Chair and
Group CEO report
Interim Chair Claire Higgins and Group Chief Executive Officer Richard Umbers at our Kevin Hickman Village.
RYMAN HEALTHCARE ANNUAL REPORT 2023
10
The strength of the Ryman
team gives us every
confidence that we will
deliver on our care promise,
reposition the business
to capitalise on future
opportunities and improve
financial performance.”
“
11
A transitional year
We are pleased to report a solid result for the year, while also undertaking
a number of important steps to reposition the business for future growth.
This has been achieved against a backdrop of a challenging economic
environment, severe weather events and the tail-end impacts of COVID-19.
Our underlying profit of $301.9 million represents an 18.4 percent increase
on FY22, driven by strong resale margins and a growing contribution from
the Australian business.
Reported profit decreased by 62.8 percent to $257.8 million due to lower
revaluation gains of investment property and costs associated with the
early repayment of United States Private Placement (USPP) notes.
A major event this year was our $902.4 million equity raise, followed
by the necessary repayment of USPP notes at a significant additional
cost to their face value. We wish to acknowledge the substantial impact
this has had on our shareholders, and that it has followed a period of
low shareholder returns. We have spent a substantial amount of time
understanding the factors that led to the raise and the subsequent
suspension of dividends, and believe that these actions were required
and are in the long-term best interests of shareholders.
Significantly, the equity raise has strengthened our balance sheet and
will better enable us to execute our new growth model, while maintaining
our focus on world-leading care that is ‘Good enough for Mum and Dad’.
We remain positive about the age and wealth demographics over the
longer term, and have taken steps during the year to reposition the
business to capitalise on this future demand.
-
m
m
m
m
m
m
m
FY FY FY FY FYFY
New ZealandAustralia
Underlying profit (non-GAAP)
reported profit (IFRS)
$257.8m
underlying profit (non-GAAP)
$301.9m
RYMAN HEALTHCARE ANNUAL REPORT 2023
12
Strategic initiatives
We are implementing a number of initiatives
to improve capital efficiency and performance
as part of our new growth model:
• Shifting to lower-density development
During the year we began refocusing
our development pipeline on lower-density,
townhouse-style villages that have an
improved cash flow profile.
• Right-sizing our care centres
We took steps to right-size our care offering
to maximise returns – shifting our future
development mix towards a higher ratio
of retirement-village units relative to
aged-care beds, while remaining true
to delivering a continuum of care.
• Diversifying our revenue streams
We are expanding our care revenue through
the introduction and delivery of new services
that complement current resident offerings.
• Reduced DMF phasing
We reduced our DMF phasing from 5 years
to 4 years for independent-living units,
and commenced a trial of alternative
DMF structures.
• Improved cost management and
operational efficiency
We are optimising returns from existing
villages by leveraging our continuum
of care model.
Our balance sheet is now set up for
sustainable growth
From FY18 through to this financial year, we have
invested over $4.42 billion in our portfolio, delivering
3,174 retirement-village units and 1,175 new care beds
1
,
as well as adding 19 new sites to our land bank.
We remain confident that this recent period of
accelerated investment will underpin growth
in future earnings and cash flows through resale
margins and deferred management fees (DMFs).
Our equity raise has enabled us to reset our capital
structure. Following the raise, net debt has
reduced to $2.30 billion, and we finished the year
with a gearing ratio of 33.1 percent, in line with the
company’s medium-term target of 30-35 percent.
Reflecting strong support from our banking
syndicate
and institutional term loan holders, key
covenant ratios have been adjusted, providing
us with additional flexibility in the current interest
rate and economic environment.
The equity raise offer saw a 71 percent take-up
of entitlements across institutional and retail offers,
with remaining entitlements sold through respective
bookbuilds. Importantly, the board structured
the offer with a view to maximising fairness for
all shareholders. All eligible shareholders had the
ability to participate in the offer on the same terms
(including offer ratio and price), and where they
did not participate they received value for their
entitlements under either the institutional or retail
bookbuilds or by selling retail entitlements on the
NZX Main Board.
1
Units and beds are included in the portfolio on a complete or near-complete basis. See appendix 23 in the Ryman Healthcare
FY23 full year result presentation for our definition of ‘near complete’. This can be found on the Ryman website.
13
Demand remains steady
Despite uncertainty in the wider residential
property market, particularly in Auckland in the
latter half of the year, we saw continued healthy
demand for what we offer.
Booked sales of occupation-right agreements
were stable at 1,519 sales in FY23, broadly in line
with FY22.
At 31 March we had only 2.1 percent of total
units available for resale and $1.78 billion
in our resale bank. We had also undertaken
1,240 unit refurbishments in FY23.
Our average occupancy in mature aged-care
centres was robust at 95 percent throughout
the year, notwithstanding COVID-19 challenges
through the winter months of 2022, and has
increased to 96 percent at year end.
Refocusing our strategy
This year management and the board reviewed
and rearticulated our strategy and shared it as
our ‘strategy on a page’ at our investor day in
October. This has already enabled us to identify
and implement significant changes that will
underpin our success in the future.
A market-differentiating continuum
of care for ageing well
In New Zealand, we are proud to remain the highest
performing of all the large aged-care operators
in terms of clinical certification. 82 percent of our
New Zealand villages have 4-year certification.
In Australia, all four of our operational care centres
received 4-star ratings following the launch of
a new aged-care rating system.
The introduction of care suites will further enhance
our continuum of care and complement our offering
to meet the growing demand for premium care
accommodation options. We expect to deliver the
first of these suites in our Northwood Village in 2025.
The response to the introduction of Ryman Home
Care in our Australian villages was strong, with
132 independent residents now enjoying funded
home care packages.
Refundable accommodation deposits (RADs) are
part of the regulated funding model in Australia.
We also offer RADs across all of our New Zealand
villages. This option is proving increasingly
popular. Total RADs increased to $300.3 million,
resulting in a net cash inflow of $100.6 million
during the year. While New Zealand contributed
around half of this increase, the opportunity for
RADs remains substantial, with only 9 percent
of our occupied beds in New Zealand having
RADs at year end.
RYMAN HEALTHCARE ANNUAL REPORT 2023
14
An unparalleled resident experience
We continued to deliver improvements to our resident experience,
lifting industry standards and seeking to exceed resident expectations
with ongoing investments in technology to enhance our
activities programme.
Our myRyman Resident App is a platform to improve access to
a wider range of activities and services within the villages. It is now
being used by over 2,500 residents in 20 villages. Similarly, hospitality
platform Saffron is now being rolled out to all villages to enhance our
food offering.
We also introduced Salesforce, a world-leading customer relationship
management platform that will enable us to streamline our sales
processes, unit modifications and maintenance services across
our villages.
Our Active Ageing Event for residents this year was Walking for
Wellness,
following the successful Olympics@RYMAN in 2021.
More than 700 residents participated, walking a combined total
of 43,000 kilometres.
Throughout the year, our team continued to shine with their efforts,
resilience and commitment. They did a remarkable job in responding
to the ongoing impacts of the pandemic and adverse weather events,
including Cyclone Gabrielle. They went above and beyond to ensure
our residents were kept safe and well cared for.
Winning the New Zealand Reader’s Digest Most Trusted Brand award
in our category once again – our ninth win since 2015 – is testament
to the quality of our care, the dedication of our people and the
differences, large and small, that our people make in the lives of our
residents and their families.
Mature aged-care
occupancy
improved
to
96 percent at
March 2023,
demonstrating
the quality of our
care operations
and the strength
of our brand.”
“
15
Development activity
Our portfolio of units and beds increased by 821 (519 fully completed
units and beds, and 302 that are near complete
1
). This was below
previous guidance of around 1,000 due to severe weather events,
particularly those impacting construction at our James Wattie Village.
At year end there were 14 villages under construction, a reduction
of two on the prior year. Progress has been made on a number of
village main buildings that were delayed due to COVID-19.
We invested $1.04 billion in portfolio development and finished the
year with net operating cash flows of $650.8 million, resulting in free
cash flow of -$389.0 million.
During the year we added Taupō to the land bank and sold our
Mt Martha site in Victoria, with settlement due later in 2023, and
our Newtown site in Wellington is now being held for sale.
Significantly, we received planning approvals for four sites in FY23:
Karori and Rolleston in New Zealand and Mulgrave and Mt Eliza
in Victoria.
New sustainability strategy
The launch of our sustainability strategy during the year was a major
milestone in our journey to a sustainable future. In consultation with
stakeholders, we identified a number of key projects that will be
undertaken in coming years.
We expect
our revised
development
pipeline to deliver
750-800 new
retirement-village
units and
aged-care beds
in the next
financial year.”
“
1
See appendix 23 in the Ryman Healthcare FY23 full year result presentation for our definition of ‘near complete’. This can be
found on the Ryman website.
RYMAN HEALTHCARE ANNUAL REPORT 2023
16
Engaging to shape the sector
We remain key contributors to shaping regulatory
frameworks across New Zealand and, increasingly
so, across Australia.
Our discussion paper on the benefits of our
continuum of care model to the retirement-village
and aged-care sector in Australia attracted
significant positive attention.
In New Zealand, we continue to seek a review
of the Aged Residential Care contract to enable
greater flexibility in the provision of care services
to our residents. The success of our home care
model in Australia points to both the market
demand and the potential for resident-centred
solutions to care needs.
FY24 outlook
Guidance for the year ahead remains in line with
that given in our equity raise outlook statement:
• Underlying profit is expected to be in the
range of $310-$330 million.
• Our portfolio is expected to grow by
750-800 retirement-village units and
aged-care beds, with a similar proportion
of care beds to FY23.
• Net investing cash flows are estimated to
be in the range of $0.80-$1.00 billion.
As previously indicated, the board has determined
that no final dividend will be paid in the current
financial year. The board will consider the
resumption of paying dividends in FY24, taking
into account trading performance, cash flow
and market conditions.
Facing the future with confidence
We emerge from a year characterised by market
uncertainty with greater confidence. We continue
to see significant growth opportunities in both
New Zealand and Australia.
Our capital management initiatives and operational
improvements reflect our more disciplined focus
on delivering per-share financial returns with
enhanced capital efficiency, cash flows and return
on capital. Our measures of success will centre on
improved shareholder value creation.
We will continue to support our strategy through
our premium brand, and through reinforcing our
strong culture.
The strength of the Ryman team gives us every
confidence that we will deliver on our care promise,
reposition the business to capitalise on future
opportunities and improve financial performance.
This year we also increased disclosure in several
areas including the number of units and beds in
our portfolio and debt metrics that align with our
increased focus on capital management. We also
introduced financial metrics centred on cash flow
generation and operating performance. These
new metrics are not intended to replace underlying
profit, rather they give a broader perspective on
how the business is tracking. We will continue
to review our disclosures in light of feedback we
have received in order to improve transparency.
17
As referenced in last year’s annual report,
Dr David Ker
r attended his last annual meeting
as
a director in July 2022, having stepped down as
Chair
in January 2022. Again, we thank him for
his service to Ryman and for his continued
support into the future serving on our Clinical
Governance Committee.
Greg Campbell succeeded David as Chair but
resigned his position in November 2022 due to ill
health, with existing board member Claire Higgins
taking on the role in the interim.
Looking ahead, three of our directors will retire
during FY24. George Savvides retired from the
board on 1 June 2023, while Warren Bell and
Jo Appleyard will retire at the upcoming annual
meeting. Geoffrey Cumming also announced that
he will not seek reappointment when his current
term expires in 2024. Our thanks to all for their
dedication and commitment as members of our
board over many years. We wish Greg, George,
Warren and Jo all the best.
With a focus on refreshing board leadership
and bringing new capability to the company, we
are delighted to announce the appointments of
Dean Hamilton and James Miller as directors
on 1 June 2023.
Group Chief Executive Officer Richard Umbers and interim Chair
Claire Higgins enjoying morning tea with residents Kath, Ann and Barry
at our Weary Dunlop Village in Victoria.
Board and governance: Leading for the future
The board’s intention is for Dean to become board
Chair on 31 July 2023 and for James
to transition
to the Audit, Finance and Risk Committee
Chair
role. Dean brings an extensive background
in governance, large company leadership and
financial markets, across both New Zealand and
Australia. He is currently Chair of trans-Tasman
civil contractor Fulton Hogan and holds director
roles at Auckland International Airport and
The Warehouse Group. James is the current Chair
of Channel Infrastructure and a director of
Mercury NZ and Vista Group. He was previously
Chair of NZX and brings deep knowledge in both
audit and risk and financial markets.
In addition, we have made several adjustments
to our senior executive team and within our new
regional structure in order to pursue our growth
model. These have involved tightening regional
leadership, bringing a number of key skills
in-house and aligning senior leaders to new roles.
RYMAN HEALTHCARE ANNUAL REPORT 2023
18
Thanks to all
We would like to acknowledge and thank our people. 7,200 Rymanians
come together each day to develop our village communities and
deliver quality care and exceptional resident experiences. They
make our culture unique and play an integral role in the overall
success of our business. We thank each of them for their dedication
and commitment.
We continue to strive to be ‘Good enough for Mum and Dad’.
To that end, we will continue to seek new ways to deliver ever higher
standards of care, while improving the efficiency of operations and
achieving a stronger financial outcome.
A very special thank you to our shareholders. We appreciate your
continued belief in our purpose, and your faith in our ability to deliver
in the future.
Richard Umbers
Group Chief Executive Officer,
Ryman Healthcare
Our team of
7,200 Rymanians
make our culture
unique and play
an integral role
in the overall
success of our
business.”
“
Claire Higgins
Interim Chair,
Ryman Healthcare
19
Full year result commentary
Strong margins, stable volumes
Total booked sales of retirement-village units have been stable, with
1,519 sales broadly flat on FY22. Booked resales lifted 7.5 percent
to 1,057, while booked new sales fell 17.5 percent to 462, mainly
because of challenging second-half market conditions in New Zealand.
Unsold resales stock lifted slightly to 2.1 percent at year end
(vs 1.4 percent at March 2022).
Gross resale margins lifted strongly to 31.1 percent in FY23, driven
by a maturing portfolio in New Zealand (32.6 percent). Future
resales will be underpinned by the resale bank of $1.78 billion, with
implied gross resale margins of 24.9 percent (assuming no change
in unit pricing).
New sales margins on developments also remained strong
at 29.4 percent, underpinned by a strong performance in Australia
(32.6 percent).
Total sales of occupation-right agreements increased from
$1.08 billion
to $1.17 billion, driven by a 10.3 percent uplift in average
price per unit.
Average new sales and resale prices lifted to $905,000 and
$714,000 respectively.
Gross margins on booked salesBooked sales of retirement-village units
booked sales of
occupation rights
1,519
available retirement-village
unit resale stock
2.1%
FYFYFY FY FY FY
ResalesNew salesTotal sales
-
New ZealandAustraliaGroup
New sale marginResale margin
RYMAN HEALTHCARE ANNUAL REPORT 2023
20
New metrics used to track performance
This year we have introduced two new metrics – free cash flow and operating EBITDA – to give
a broader perspective on how the business is tracking.
Operating EBITDA focuses on the performance
of our existing operations, excluding the
impacts of development earnings, interest,
depreciation and amortisation.
Up until FY22, operating EBITDA was relatively
flat, reflecting cost pressures that had not been
matched by additional funding, specifically
in aged care.
That changed this year with operating EBITDA
lifting 29.4 percent to $272.6 million thanks
to a growing contribution from resale margins
and management fees, as a number of villages
built in higher-value locations in recent years
have started to mature.
1 See slide 15 in the Ryman Healthcare FY23 full year result presentation for a breakdown of operating EBITDA.
This can be found on the Ryman website.
2 Combined net operating and net investing cash flow.
$mFY23 FY22 YoY
Earnings
Reported profit (IFRS) 257.8 692.9 -62.8%
Underlying profit (non-GAAP) 301.9 254.9 18.4%
Operating EBITDA
1
(non-GAAP)
272 .6 210.6 29.4%
Cash flow
Net operating cash flows 650.8 586.0 11.1%
Net investing cash flows (1,039.9)(787.3) 32.1%
Free cash flow
2
(non-GAAP)(389.0) (201.3) 93.2%
Financial metrics
Free cash flow reflects the combination of net
operating cash flows and net investing cash flows
and therefore demonstrates the total cash
generated or used by the business, including
for development.
We invested $1.04 billion in portfolio development
and finished the year with net operating cash flows
of $650.8 million, resulting in free cash flow of
-$389.0 million.
Our investment programme included progressing
six high-capital-intensity main buildings across
the portfolio.
The development programme has now been
reprioritised to target positive free cash flow
by FY25. This includes remixing the land bank
with lower-density villages that have an improved
cash flow profile and right-sizing our care offering
for future developments.
21
Ryman is a vertically
integrated retirement-living
and aged-care developer,
owner and operator,
providing exceptional
care for older people.
We create beautiful
homes, high-quality
villages and supportive
communities with access
to superb amenities.
Our business
We believe that the true measure of a full life is one that gets richer
with age. Our business model centres on our continuum of care.
Our retirement-living options include independent apartments
and townhouses and assisted living in serviced apartments. Our
aged-care offering includes resthome, hospital and dementia care.
We emphasise innovation and improving people’s wellbeing as they
grow older.
We own and operate 38 villages across New Zealand and seven in
Victoria,
Australia. 14 villages are under construction, including
nine that are partly open and have welcomed their first residents.
We have a further 11 sites in our land bank. Once completed,
these
villages provide homes and care for our residents and generate
returns for our shareholders and meaningful careers for our people.
They also act as supportive hubs to surrounding communities and
provide critical healthcare infrastructure.
Our villages are home to 13,900
residents and our team members
engage with them every day
to
provide care, service and friendship.”
“
Richard Umbers, Group Chief Executive Officer
RYMAN HEALTHCARE ANNUAL REPORT 2023
22
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Our
people
Our
relationships
Our
expertise
Our
environment
Our
communities
Our financial
strength
Developing
our
people
Strengthening
our
relationships
Enhancing
our
expertise
Protecting
our
environment
Growing
our
communities
Building
our financial
strength
Our resources
Value created
How we create value
23
Our people
Our team of dedicated Rymanians
drive our innovation and allow
us to design and build high-quality
villages for our residents and
deliver exceptional care, an
unparalleled resident experience
and strong financial returns.
Investing in our people enables
us to offer better care to residents
and accelerates our business
performance.
Our expertise
Our villages are uniquely Ryman
in how they are designed and
built. Our collective wisdom,
experience and systems are
difficult to replicate. We are well
positioned to respond rapidly
to changes in the operating
and regulatory environments.
We use our voice to educate and
lobby on behalf of the sector.
Our communities
Our villages provide our residents
with security, companionship,
social connectedness and
environments that challenge
the conventions of ageing. Each
village becomes an important
asset for the wider community,
and an economic engine
to support our future growth.
We enhance our
expertise by:
• continuing to develop our
in-house skills and knowledge
• listening to our residents,
their families and our team
• sharing knowledge and
best practices within the
company via our regional
operating model.
We grow our
communities by:
• locating our villages in
well-established areas where
people want to retire
• helping to meet the demands
of a rapidly ageing population
• providing employment for
local people and becoming
an economic driver for
local businesses.
Our resources
Value created
We develop our
people through:
• providing an environment
where everyone feels
included and empowered
• promoting respect that
focuses on recognising
and valuing each person
for their background
and contribution
• focusing intently on health,
safety and wellbeing
• investing in training and
career progression.
RYMAN HEALTHCARE ANNUAL REPORT 2023
24
Our relationships
We value strong relationships
across all areas of our business
– between residents, their
families, our teams, suppliers
and contractors and our local
communities. Many of these
relationships are long term and
form a key part of our success.
Our environment
Our sustainability strategy
focuses on our places,
our people and our purpose.
As a responsible market leader
in New Zealand and Australia,
we make sure all decisions
are made with sustainability
in mind so that we can leave the
environment in better shape
for generations to come.
Our financial strength
We have grown total assets
to $12.51 billion. Long-term
asset growth underpins our
ability to invest in future
villages, innovation, lifting the
experiences of our residents
and the development of
our people. A focus of our
growth model is to improve
shareholder value creation.
We continue to strengthen
our relationships with:
• our residents and their
families, who trust us to care
for their loved ones
• our team, who trust us
to provide them with a
meaningful, reliable and
safe place to work
• our suppliers, who trust
us to pay on time
• our shareholders, who trust
us to provide them with
strong commercial returns
on their investments.
We look to protect our
environment by:
• committing to a zero-carbon
future through cutting our
greenhouse gas emissions
• minimising the impacts
of our operations on the
environment
• ensuring that the growth of
our villages is sustainable.
We continue to build our
financial strength by:
• building our own operating
assets and generating cash
to invest in new villages
• proactively managing our
cash flow
• focusing on capital-efficient
development
• improving cost management
and operational efficiency.
25
Our materiality matrix
We interviewed a range of stakeholders across New Zealand and
Australia, including shareholders, financiers, investors, district
health boards, local councils, indigenous communities, suppliers,
our commercial partners and selected members of our board.
This materiality matrix represents the top 25 issues identified
in this process and reflects the aggregate views of all stakeholders.
It should be noted that all issues on the matrix were seen as material
issues identified by our stakeholders.
Our finalised priorities are grouped under three pillars: Our Places,
Our People and Our Purpose. By grouping what’s important
to our stakeholders under these three pillars, we have been able to
organise priorities clearly and progress our commitments in
a balanced way. We have then set in place a full programme
of projects that will enable us to implement clear workstreams.
The material issues marked with diamonds were prioritised by our
stakeholders as areas where Ryman has the most opportunity to
improve its performance.
Success in achieving sustainability
depends on our ability to recognise,
balance and organise the priorities
of places, people and purpose.”
“
Richard Umbers, Group Chief Executive Officer
As part of creating our
sustainability strategy,
we undertook a formal
engagement process
that helped us to identify
the most critical issues
impacting our stakeholders.
RYMAN HEALTHCARE ANNUAL REPORT 2023
26
Affordability &
financial certainty
Brand reputation
Communication &
relationship management
Community,
diversity & inclusion
Continuum of care
Culture & values
Diversity
of offering
Employee attraction,
development & retention
Environmental footprint
ESG leadership
Government funding
& regulatory changes
Sustainable financial
performance
Green buildings
Health, safety
& wellbeing
Indigenous
engagement
Innovation
Internal leadership
& governance
Partnershi
ps &
sponsorship
Quality care
Resident & data privacy
Resident
experience
Supplier collaboration
Technology
Village location
Climate change
Stakeholder importance
Business impact
Our Places
Our People
Our Purpose
The top 5 material issues where our stakeholders thought Ryman has the
most opportunity to improve its performance are marked with diamonds.
27
Our places
We strive to minimise any adverse
impact on our communities. We seek
to leave the environment in better
shape for generations to come.
Projects
• Establish science-based emission reduction targets
• Identify alternative fuel vehicles
• Implement climate change risk management
roadmap
• Reduce construction waste
• Reduce refurbishment waste
• Identify renewable energy solutions in Australia
• Identify opportunities for green buildings
• Continue improvements in construction
materials’ selection
Priority material issues
Climate change
Environmental footprint
Green buildings
Alignment with the
UN Sustainable Development Goals
The United Nations Sustainable Development
Goals (SDGs) remain a critical blueprint for
aligning sustainability efforts globally. Our
material issues have been mapped to the SDGs
to help us to better engage with residents,
prospective residents, team members and
other stakeholders.
We reference these issues through our
strategic quadrants
Expansion targeting high value
Leadership for sustainable performance
RYMAN HEALTHCARE ANNUAL REPORT 2023
28
Our people
Our people are Ryman. We invest
in them to enable them to grow, to care
for and support our residents as well as
accelerate our business performance.
Projects
• Develop our environmental sustainability
leadership
• Continue our investment in leadership to support
sustainable business performance
• Continue our digital improvement programme
for contractor management, plant and machinery
registers, audits and wellbeing engagement
• Enable greater diversity, equity and inclusion
• Manage critical workforce shortages for
sustainable business performance
• Ensure we have the capability and capacity
to deliver on our sustainability strategy
Priority material issues
Internal leadership and governance
Health, safety and wellbeing
Culture and values
Employee attraction, development
and retention
Projects
• Enhance iwi engagement
• Enhance First Nations engagement
• Monitor and measure our impact on the
wellbeing of our residents
• Deliver future-focused dementia design
• Drive supplier engagement
• Develop supplier code of ethics
• Build mutually beneficial relationships
Our purpose
Our purpose is our glue. We know that
by focusing on our purpose – greater
freedom, richer connections and deeper
wellbeing for people as they grow older
– our business will succeed.
Priority material issues
Indigenous engagement
Resident experience
Quality care
Supplier collaboration
We reference these issues through our
strategic quadrants
The best continuum of care for ageing well
Unparalleled resident experience
We reference these issues through our
strategic quadrants
Unparalleled resident experience
Leadership for sustainable performance
29
Resident and former nurse Annie and Special Care Unit Coordinator PK Karan
share a close bond at our Murray Halberg Village.
RYMAN HEALTHCARE ANNUAL REPORT 2023
30
continuum of care
Maintaining the best
for ageing well
31
Our strategy
Tailored care
Our continuum of care model mirrors the volatility of the
human experience. As the needs of our residents change, they
can access the right care for them within the same location,
minimising disruption.
By keeping our residents at the forefront of our decision-making,
we are constantly evolving and adapting our offer to ensure we
meet the unique needs of our market.
Expanding our offering to include care suites
Premium care on site enhances the attractiveness of our villages
for residents, driving up demand for retirement-village units and
bolstering our ability to command a premium price.
Our care suite product will be rolled out in our new developments
in coming years. This premium care offering will offer all the
services available within a care facility setting, including
specialist care, within a larger format design, similar to serviced
apartments. This is an exciting product for long-stay care
residents who want a higher-quality accommodation offer.
Care suite residents will enter into occupation-right agreements
which will assist with capital recycling. Similar to a serviced
apartment, we will also charge a DMF, which further assists with
care profitably. We expect to deliver the first of these suites
in our Northwood Village in 2025.
MAINTAINING THE BEST
CONTINUUM OF CARE FOR
AGEING WELL
Ensure our residents’
changing needs are met
with seamless transitions
across an expanding
continuum of care,
uniquely fit for the needs
of our market. Develop
our services to enhance
residents’ wellbeing
at every stage while
improving the overall
returns per site.
RYMAN HEALTHCARE ANNUAL REPORT 2023
32
Dementia care innovation
We completed the pilot of our NZQA-recognised
dementia micro-credential in mid-2022. This
has already delivered promising improvements
in our clinical indicators and staff capability in
our special care units.
20 learners graduated from the pilot and
we currently have two cohorts of 48 learners
progressing through the programme. We expect
to deliver four cohorts of similar numbers
annually and to extend this qualification to other
village roles.
Our significant investment in this area means
we now offer a supportive learning programme
for New Zealand- and foreign-trained clinicians,
from training and Competency Assessment
Programme courses to our validated dementia
care training programme, backed by scholarships
and our nursing graduate training programme.
Ongoing clinical excellence
With a significant number of our residents in
one of our care centres or receiving home care
assistance, clinical excellence is critical.
Our Group Clinical Governance Framework drives
this by adopting an integrated and holistic approach
across four domains: clinical risk management
;
quality improvement and resident safety;
resident family and whānau partnerships; and
clinical effectiveness.
As a result, we receive consistently high audit
results, endorsing the quality of care we provide.
82 percent of our New Zealand villages have 4-year
certification. In Australia, all four of our operational
care centres received 4-star ratings following the
launch of a new aged-care rating system.
Our team managed a number of crises this year,
including two waves of COVID-19 and, more recently,
the North Island floods and Cyclone Gabrielle.
In each case we rapidly deployed additional
resources and our teams maintained our high
standards of clinical care.
To help control COVID-19, for example, we have
established new evidence-based infection
prevention controls, overseen by an infection
control nurse specialist who provides advice and
best-practice guidelines across all villages. While
the world is learning to live with the virus and its
variants, many of our residents remain vulnerable.
We maintain measures like wearing masks and
managing outbreaks as they occur.
33
A differentiated offering in Australia
In Australia, the aged-care sector is experiencing widespread
pressure, with almost 65 percent of operators currently running
at a loss, and deteriorating aged-care stock not meeting customers’
changing needs. In our view, nothing short of an urgent rethink
of the entire approach is required.
Our offering in Australia remains highly differentiated, with a
continuum
of care model still relatively rare. In September 2022
we released an aged-care policy discussion document highlighting
why our model is so powerful – and why it provides the solution
to so many of the problems the Australian system faces. Key
recommendations from that document included:
• establishing a national regulatory regime to govern the
retirement-living and aged-care sectors as one
• creating greater incentives in planning systems for integrated
retirement-living and aged-care facilities
• introducing a specific home care package for retirement villages
to help residents live independently for longer.
The importance of our model was acknowledged by Victorian Premier
Daniel Andrews, when he helped us to officially open a new apartment
block at our Nellie Melba Village in Melbourne. Premier Andrews spoke
at length about our unique continuum of care model in Australia and
the benefits the model could have for the broader aged-care sector.
The implementation of the new Australian National Aged Care
Classification funding model from 1 October 2022 also aligns well
with our existing systems and encourages improved care-centre
performance through an increase in funding per bed per day.
While we see the model as a step in the right direction towards
a sustainable aged-care sector in Australia, there is more work
to be done.
It’s a point of pride
for us to have such
an innovative
model... this is
ageing in place
reimagined... [the
continuum of
care] model [is]
a stunning
example of what’s
possible if you
support people
in their local
community and
meet their needs.”
“
Daniel Andrews,
Premier of Victoria
RYMAN HEALTHCARE ANNUAL REPORT 2023
34
Home care offering shows
exciting potential
A key component of our strategy to expand our
continuum of care offering is to grow our home
care business for independent and serviced
residents in both New Zealand and Australia.
Home care packages allow our residents to age
in place. They can then transition to our care
facilities as their needs change.
We are particularly excited about the opportunity
for home care services in Australia, where
recently updated funding settings work well with
our existing model. Tapping into this funding offers
a huge commercial opportunity that will allow
us to both subsidise residents’ weekly fees and
optimise the economics of our units.
At year end we had 132 residents registered for
funding and over 100 on the waitlist. The
arrangement works well for all parties, with
residents using home care to reduce a range
of external costs, making it more viable for
them
to access services. This means more
of our residents
are choosing to buy services
from us that they previously would have
sourced elsewhere.
We are also passing on the lessons of our Australian
home care experience to our New Zealand team,
where we see similar potential as long as a national
funding model is developed to support it. At this
stage we are trialling privately paid home care
services with independent residents at seven of
our villages, including two villages that also have
public home care contracts with Te Whatu Ora.
Expanding digital tools in clinical care
As care needs become more complex, we continue
to evolve digital innovation in aged care. This year
has seen a number of important advances.
We updated our patient information management
system, myRyman Care, to support the rollout of
home care services. These changes are designed
to allow seamless transfers of information between
our home care services and our care centres’
CarePlans as residents’ needs change.
PainChek is a world-leading digital pain-assessment
tool that is currently being rolled out at our
Australian villages, and will soon be piloted in
New Zealand. The tool uses accurate facial
recognition software to assess pain and has
proven very effective in the early detection
of pain trends among residents.
We have also connected the Ministry of Health’s
interRAI system with our own myRyman Care,
enabling us to do integrated assessments.
An automatic feed has streamlined operations,
significantly reducing assessment and
administrative time for our nursing staff and
allowing them to focus on person-centred care.
35
Sam Rakai was one of many team members at
our Murray Halberg Village in Auckland who
worked tirelessly to keep residents safe and well
during the recent adverse weather events.
RYMAN HEALTHCARE ANNUAL REPORT 2023
36
Unprecedented weather events this year, including flash
flooding in Auckland and Cyclone Gabrielle, caused
wide scale destruction across the country and saw
New Zealand enter a National State of Emergency for
only the third time in the country’s history.
Our people shine,
in even the
worst weather
Flooding in Auckland in
January 2023 took the region by
surprise, causing major damage
to homes and businesses. Our
teams rallied around our residents,
beginning the clean-up as soon
as the rain subsided. A number
of our own people were also in
need of support and were offered
temporary accommodation.
Fortunately, of the 4,000 residents
living in Ryman’s Auckland villages,
only a small number needed
unit repairs.
Cyclone Gabrielle affected tens
of thousands of New Zealanders
and saw wide scale devastation,
particularly across the Hawke’s Bay
area. Residents and teams at our
Princess Alexandra, James Wattie
and Kiri Te Kanawa Villages were
impacted and lost power.
We were able to run essential
services on power generators
and residents were supported
with critical supplies during
the outages. Our teams
delivered on our ‘all in, all the
time’ commitment and did an
extraordinary job keeping our
residents safe and well.
The increasing prevalence of
extreme weather events
reinforces the importance
of our sustainability strategy
to support the future of the
business. Our strategy,
alongside our construction
standards and the strength of
our teams put us on track to
be as prepared as we can be.
Ryman responded extremely quickly.
We were at the forefront of care.”
David, Murray Halberg Village resident
“
37
Neil and David, new mates and neighbours at our Bruce McLaren Village,
are often spotted wading rivers in search of the catch of the day.
38
RYMAN HEALTHCARE ANNUAL REPORT 2023
Delivering an
unparalleled
resident experience
39
Engagement is key
Resident experience is a critical competitive advantage
as expectations trend upward. Older New Zealanders and
Australians entering our villages are not only wealthier but are
also looking for greater choice, autonomy and resident-centred
care. The shift to a greater emphasis on richer experiences
mirrors wider shifts in consumer behaviours, and underpins our
drive to introduce new activities supported by enhanced digital
engagement for residents.
Enhancing the experiences we offer
This year we introduced a new offering to continue elevating
resident experiences within our villages. The offering includes
an expanded range of cultural, social and wellbeing activities,
supported by additional team members, as well as our myRyman
Resident App. The offering aligns with our commitment to
infuse joy into every aspect of the Ryman experience and has
been developed according to the guiding principles of freedom,
connection and wellbeing.
To date the offering has been rolled out to 20 villages across
New Zealand. Residents are overjoyed to have access to free
and paid activities outside the village that enable them to
experience new things.
Inter-village events such as Walking for Wellness connect
residents across our network of villages. Residents can also
connect through virtual events such as book clubs, language
clubs, guest speakers and more.
These new experiences also make sense commercially. Not
only do they deepen our overall customer value proposition and
resident loyalty to the Ryman brand, they have also supported
higher weekly fees for new residents in participating villages.
Leverage our scale and
invest in digital innovation
to deliver a resident
experience that eclipses
the competition and
commercially justifies
ongoing investment
in our communities.
Our strategy
DELIVERING AN
UNPARALLELED
RESIDENT EXPERIENCE
RYMAN HEALTHCARE ANNUAL REPORT 2023
40
Tapping into the sense of community
Digital experiences are now a normal part of life – including for
our residents. Our new myRyman Resident App complements the
physical activities provided by our resident care teams, enabling
independent residents to manage their village calendars, keep
up to date with notices and attend virtual events.
The resident app has been co-designed with our residents to provide
a modern, high-quality digital experience for all residents, regardless
of their prior experience with technology. Resident uptake and
engagement with the app is very high, and we now have 20 villages
and over 2,500 residents enjoying this new experience.
Saffron serves up smiles
Our resident research shows that food is a key factor for prospects
when considering a village and that it plays a defining role in ongoing
resident satisfaction. Previously, residents in our care centres and
serviced apartments ordered their meals through a paper-based system.
With Saffron, orders are now taken by carers on tablets and residents
can see a visual of each dish and ask about ingredients. Saffron also
gives us valuable insights into allergy and dietary requirements as
well as the popularity of meals. We are already seeing increases in
our resident food scores. Over time, the new system will guide menu
development. Aligning food preferences and needs with our menus
will help reduce waste in our food supply chain. This is good for cost
management and aligns directly with our sustainability strategy.
Our myRyman Resident App has been well received
by over 2,500 residents.
The app makes
keeping in touch
with everything
that’s happening
in our village so
much easier!”
“
Kathy,
Keith Park Village resident
41
Residents from our Murray Halberg Village enjoy
participating in our Walking for Wellness
event with Activity and Lifestyle Coordinator
Sheila Gamboa (far left).
RYMAN HEALTHCARE ANNUAL REPORT 2023
42
Alongside the many activities and events hosted
within each village, our residents can also enjoy
challenges that are organised nationally. Our annual
Active Ageing Event, for example, is an opportunity
for participants to challenge themselves and others
to achieve amazing goals.
On a mission
for wellness
This year’s Active Ageing Event,
Walking for Wellness, saw more
than 700 Ryman independent
residents sign up to tackle virtual
walks on the Abel Tasman
Coastal Track in New Zealand
and the Mornington Peninsula
in Australia.
Residents could use pedometers
or their smartphones or
smartwatches to record their
progress, with distances logged
on the My Virtual Mission app.
All up, participants walked more
than 43,000km. An awards
ceremony at Edmund Hillary
Village acknowledged everyone
who had taken part and saw
medals presented to winners
across a range of categories.
43,000km is a huge distance to
cover. Some of our residents used
pedometers. Some used smartphones
or smartwatches. But all shared in the
success of what they had achieved.”
Mary-Anne Stone, Chief Experience and Engagement Officer
“
43
Weary Dunlop Village resident Bill enjoys having more free time to spend
with his family.
RYMAN HEALTHCARE ANNUAL REPORT 2023
44
Expansion targeting
high value
45
Targeting higher-value locations for
new communities
As the wealthiest generation in history approaches retirement,
we are optimising the design of our villages to deliver high standards
of care and achieve the right levels of scale and efficiency.
Our construction growth targets focus on meeting the burgeoning
needs of older people while generating higher value per unit.
Location is the priority, with value more important than volume.
We target sites in premium locations with house prices above
the New Zealand and Victorian medians respectively. We build
and land bank in places with the optimal wealth profiles and
the capacity to command premium prices, now and in the
decades ahead.
Delivering a high-value product is the other key to maximising
unit pricing. It includes introducing care suites to our product mix
and new unit finishes. We also have a substantial refurbishment
programme to ensure our current villages retain their premium
positioning and pricing.
The final success factor is agility. We remain unafraid of changing
direction when market conditions shift, and constantly monitor
sentiment to ensure we are delivering the right products in the
right locations. For example, reflecting the need for prudent
capital management, we made three important adjustments
this year:
• We slowed and/or paused construction at six sites
in response to rapidly changing market conditions.
• We are being even more selective about new projects
and phases in line with our more disciplined focus on
capital efficiency.
• We continually review our existing land bank to ensure
it is fit for purpose in the current operating environment.
Acquire and develop sites
for new communities in
premium locations to
deliver high-value returns
per site.
Our strategy
EXPANSION TARGETING
HIGH VALUE
RYMAN HEALTHCARE ANNUAL REPORT 2023
46
As the number of retirees grows, and smaller
aged-care operators continue to be at risk
of closure, we remain absolutely committed to
our care promise for all existing and new
Ryman residents.
Alongside our shift to care in the home, we are
re-evaluating the ratio of our care beds to our
independent-living units to ensure we have
enough beds to provide a continuum of care for
our residents while maintaining an efficient use
of capital.
Financial challenges continue to impact the
development of new aged-care beds due to
government-set care fees not keeping pace with
rising cost pressures in recent years. As a result,
the sector lost over 1,200 beds in 2022 alone.
Right-sizing our care centres and leveraging our
existing network of villages will allow us to adopt
a more flexible approach. We will be able to develop
villages with fewer care beds next to sites with
greater care-bed capacity.
This does not mean we will be closing beds in our
existing villages, but future villages will have a
lower ratio of care beds to retirement-village units.
Looking back, villages that opened before FY15
had an average ratio of beds to retirement-village
units of 0.55. Many were built with 120+ beds. Our
new developments (those opening from FY24)
have been designed with an average ratio of 0.32,
reflecting a capacity of 40 to 80 beds. These new
designs improve capital efficiency and reflect the
increasing preference for ageing in place.
Rebalancing our care ratios
x
x
x
x
x
x
x
x
x
x
Villages opened
before FY
Villages opened
from FY
Villages opening
from FY
Average ratio of care beds to retirement village units
47
Prioritising townhouse-style developments
We currently have a number of high-density apartment-style
developments under way. These villages take longer to generate
positive cash flows and contributed to our elevated debt levels
prior to the recent equity raise. In contrast, townhouse-style
developments progress more quickly through the design and
approval processes and can be sold in smaller stages. As a result,
they typically have lower peak debt requirements.
We are optimising our land bank in both countries to include
more of these townhouse-style developments, with four of the last
five sites purchased – Mulgrave, Cambridge, Karaka and Taupō
– specifically suited to townhouse-style developments.
Typically,
townhouse-style
developments
progress more
quickly through
the design
and
approval
processes.”
“
Chris Evans,
Chief Development and
Construction Officer
A Welcome to Country and traditional smoking
ceremony was held at our new Mulgrave site,
prior to our officially beginning the build.
RYMAN HEALTHCARE ANNUAL REPORT 2023
48
Developing value for investors
We marked the completion of the Raelene Boyle
and Charles Brownlow Villages in Victoria this year
and we currently have another 14 villages under
construction. Seven of these villages are expected
to be completed by the end of 2025. The most
recent project to be started is our Cambridge
Village, which commenced construction in
November 2022.
Our development teams have secured four
critically important planning approvals this year
– at Karori and Rolleston in New Zealand, and
Mulgrave and Mt Eliza in Victoria.
We added Taupō to the development pipeline
in June 2022.
At the same time, we continue to evaluate
existing sites in light of current market conditions.
We have divested our Mt Martha site with
settlement due later in 2023 and our Newtown
site is being held for sale.
Major village refurbishments
Refurbishments provide an opportunity
to revisit how an existing village can support
resident experiences and continue to
deliver value to the business. Below are the
key village refurbishments completed
or underway during FY23:
Shona McFarlane Village
A 23-year-old village in Lower Hutt, Wellington
A major refurbishment completed this year
included a new village centre, an activities room
and hair salon, a new reception and sales and
support areas, as well as a new café and portico.
Anthony Wilding Village
A 17-year-old village located in the popular
Halswell area in Christchurch
This year, as part of a two-year capital
refurbishment plan, a café, activities room,
resident workshop and scooter bay were
added. There were also updates to the
village centre and swimming pool, and new
serviced-apartment dining and gym facilities.
Grace Joel Village
A 21-year-old village located in the premium
suburb of St Heliers, Auckland
In 2022 we commenced a four-year staged
upgrade of the village. Works include a new
café and refurbishment of the exterior of the
first apartment building.
49
Our development pipeline
Auckland
DesignConsentingConstructionVillage
open
Village
centre open
Council
approval
Targeted
village
completion
Rest of New Zealand
2024
2026
2026
2026
TBC
TBC
TBC
TBC
James Wattie
Kevin Hickman
Northwood
Cambridge
Park Terrace
Karori
Rolleston
Ta u p ō
2023
TBC
2024
2026
TBC
TBC
TBC
William Sanders
Murray Halberg
Miriam Corban
Keith Park
Takapuna
Kohimarama
Karaka
Total sites in NZ pipeline
15
Sites under construction in NZ
9
This is our development pipeline as at 19 May 2023. Orange indicates where we have
made changes since 20 May 2022.
RYMAN HEALTHCARE ANNUAL REPORT 2023
50
DesignConsentingConstructionVillage
open
Village
centre open
Council
approval
Targeted
village
completion
Australia
2024
2023
2025
2025
2028
TBC
TBC
TBC
TBC
TBC
John Flynn
Nellie Melba
Deborah Cheetham
Bert Newton
Ringwood East
Mulgrave
Mt Eliza
Essendon
Kealba
Coburg North
Total sites in AU pipeline
10
Sites under construction in AU
5
51
Avid rower Judy is a resident at our Murray Halberg Village and the recent
star of our Full Life brand campaign.
52
RYMAN HEALTHCARE ANNUAL REPORT 2023
Pursuing leadership
for sustainable
performance
53
Identified through robust consultation
To ensure we accurately captured the issues our stakeholders
see as important, we sought input from external and internal
stakeholders across New Zealand and Australia, including
residents, shareholders, financiers, district health boards, local
councils, indigenous communities, suppliers, our commercial
partners, team members and members of our board.
25 issues were identified as material to moving towards
a successful sustainable future. Stakeholders ranked these issues
by importance and identified issues where they believed we had
the most opportunity to improve. Business impact was evaluated,
resulting in the materiality matrix on page 27 of this report.
Because most of these issues will take considerable time
to explore fully and address, we have prioritised our efforts
and focused our resources to drive sustainable outcomes.
Reporting framework
Oversight sits with our People, Culture and Sustainability
executive sub-committee. The committee, along with our board,
receives regular reporting and updates on project progress.
Our sustainability commitment
The launch of our sustainability strategy during the year was
a major milestone in our journey to a sustainable future. The
strategy reflects our commitment to our communities, from
our residents and our people to our neighbours, our suppliers
and our shareholders. The result is an ambitious programme
across our three pillars of Our People, Our Places and
Our Purpose.
Strengthen our position
as sector-leaders who set
the standards that others
follow by developing and
providing stewardship
of a comprehensive
sustainability strategy.
Our strategy
PURSUING LEADERSHIP FOR
SUSTAINABLE PERFORMANCE
RYMAN HEALTHCARE ANNUAL REPORT 2023
54
Progress on our three key priorities
We identified three key priorities for this first year because they
hold additional, immediate significance for us in terms of
a sustainable future:
Climate change
A science-based emission target
We formally committed to developing a near-term, science-based
emission target, joining the Science Based Targets initiative. Work
has begun on establishing a formal inventory, including a previously
unsubstantiated scope 3 inventory. 2021 has been provisionally
selected as the base year for our target once it is formally established.
Quality care
Future-focused dementia design
A dementia project specialist has been appointed and commenced
a review of all villages and their alignment with our dementia design
principles. This review builds on the design of a world-leading care
model and training programme for dementia carers and the families
and whānau of people living with a dementia diagnosis.
Indigenous engagement
Forging better relationships through understanding
In New Zealand, our Taha Māori Kaitiaki is leading work to increase
Taha Māori knowledge and understanding at all levels within
the business.
The Ngā Paerewa Health and Disability Services Standard
announced by the Ministry of Health was implemented ahead
of the initial planning.
We have made good progress as we work to enhance First Nations
engagement. We have completed registration with Reconciliation
Australia for the ‘Reflect Reconciliation Action Plan’ and undertaken
a programme of work to better understand First Nations’
representation in our team.
The result is
an ambitious
programme
across our three
pillars of
Our People,
Our Places and
Our Purpose.”
“
Mary-Anne Stone,
Chief Experience and
Engagement Officer
55
Our emissions journey so far
Electricity emissions made up 58 percent of our
overall reported emissions in FY22
1
.
Climate-related disclosures
Last year we completed a detailed programme
of work to ensure we are able to meet the
External Reporting Board’s (XRB’s) climate-related
disclosure requirements as detailed in
New Zealand’s climate-related disclosure
framework.
Our three-year action plan has been
updated to reflect this work and the actions
we are taking.
To identify our climate-related risks and
opportunities, senior executives participated
in a series of workshops to develop three
plausible
climate-related scenarios: ‘Net Zero 2050’; ‘Delayed
Transition’;
and ‘Current Policies’, assessed against
the short term (2022–2025), medium term
(2026–2030) and long term (2030–2050).
A climate risk, resilience and opportunities report
was presented to the board. We are now
working with our business experts to develop
appropriate responses.
Electricity (NZ)
Electricity (VIC)
Natural gas
Air travel
Waste
Fuel
Fertilisers
Polystyrene
FY22 GHG operational emissions by source
FY
(Base)
FY FYFY FYFY
Total gross emissions (LHS)
Number of residents (RHS)
Total gross GHG emissions
(tCO
2
e)
1
FY23 data not available at date of publishing.
RYMAN HEALTHCARE ANNUAL REPORT 2023
56
Powered by the sun
This year we secured an exclusive agreement with renewable
energy developer Solar Bay, a first for the retirement sector.
This will result in us receiving 100 percent of the renewable
energy certificates from a new solar farm. The farm is expected
to generate 30 gigawatt hours of renewable energy and save
us an estimated 3,294 tonnes of carbon a year. This will play
a key role in achieving our long-term goal of Net Zero by 2050.
Artist’s impression of the Solar Bay solar farm in Northland.
We have been
measuring our
emissions and
implementing
changes over the
past 6 years, and
we acknowledge
we need more
targeted and
effective
strategies to
reduce emissions
to achieve our
long-term goal of
Net Zero by 2050.”
“
Mary-Anne Stone,
Chief Experience and
Engagement Officer
57
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 levels.
Provide climate risk training
to our senior leaders.
Assess the climate change
skills gap across the board
and senior executive team
on an ongoing basis.
Enhance governance skills
and performance across the
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
Three-year climate action plan
In FY23 we addressed a
number of activities identified
in the action plan. We are
confident that we will meet the
disclosure requirements as
prescribed by the New Zealand
XRB for the FY24 reporting year.
Completed
In progress
Planned
RYMAN HEALTHCARE ANNUAL REPORT 2023
58
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
the supply chain.
Enhance the 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
59
Supporting our people
Nothing is more important than the health, safety and wellbeing
of the people who live and work with us. We are committed
to doing work safely or not at all, and ensuring that everyone
gets home not just safe but also well. We focus on creating an
environment where people act with kindness, make a difference
to the lives of older people and feel supported to lead, perform,
innovate and grow.
Investing in our clinical teams
While we recognise the importance of pay parity as a
positive step forward in attracting and retaining key clinical
staff, we also remain focused on attracting and retaining
talented people through training, career progression and
leadership development.
Changes in immigration settings late last year have been
positive – with nurses being added to the fast-track visa list
in New Zealand – enabling us to recruit from overseas more
easily. We lobbied strongly for these changes. Our recruitment
team has been particularly active, with a number of senior
roles successfully recruited from overseas.
We continue to develop our clinical capabilities by seeking
pathways for foreign-trained clinicians, by recruiting and
developing new graduates and through our clinical
leaders’ programme.
This year, through partnerships with Te Whatu Ora Nurse Entry
to Practice (NETP) programmes, we designed and piloted a new
supplementary programme to onboard graduate nurses into
our villages and increase the support they received during their
first years of practice.
In September 2022 we introduced a clinical leadership
development programme to support the specific needs of our
clinical leaders. The first 20 clinical managers will complete
the programme in October 2023. The programme will then
be expanded to our unit coordinators.
Strengthen our position
as sector leaders who
set the standards that
others follow. We do this
by investing in our people,
who nurture our culture
of kindness and excellence
to deliver sustainable
business performance.
Our strategy
PURSUING LEADERSHIP FOR
SUSTAINABLE PERFORMANCE
RYMAN HEALTHCARE ANNUAL REPORT 2023
60
Developing capable and
fit-for-future leaders
Our leadership development programme is
tailored to our unique business model. Building
fit-for-future leadership capabilities and systems
will ensure that we continue to enhance
performance and that our teams receive clear
direction and support from all leaders in pursuing
our aims.
As part of our third annual Advanced Leadership
Programme, our executive and senior leaders
from New Zealand and Australia attended two
3-day courses in June and August 2022.
Our August gathering was the first opportunity
post COVID-19 to bring our leaders from both
countries together. It had an immediate impact
on the alignment of both strategic and commercial
priorities and improved cross-functional
collaboration on executing our strategy.
Celebrating excellence
Our annual Ryman Awards are an opportunity to
celebrate our villages and the amazing teams and
people who work with them. Among this year’s
awards, Malvina Major Village won the village of
the year title and Nancy Wilson from Diana Isaac
Village in Christchurch won the caregiver of the
year award.
Diversity, Equity and Inclusion
We are committed to harnessing the potential
of our diverse team and providing an environment
where everyone feels valued and is treated fairly
and with respect.
We recognise that individual differences, when
embraced, drive innovation and better outcomes
for all. Currently we are confirming our Diversity,
Equity and Inclusion metrics to further gauge and
enhance our opportunities.
61
Bryant Fernandez, Personal Care Worker at John Flynn
Village, and resident Patricia.
RYMAN HEALTHCARE ANNUAL REPORT 2023
62
Bryant Fernandez and his family left the Philippines
to pursue better opportunities both personally and
professionally. At Ryman, Bryant found a place to work
where he could build on his strong foundation of skills and
knowledge, and that truly shared his passion for caring.
Boosting a career
of caring
Bryant works at our John Flynn
Village. Through the
Ryman
Academy,
our in-house
training institute that delivers
quality education to team
members, he has been able
to develop his clinical skills and
knowledge. This year he
successfully completed his
Objective
Structured Clinical
Exam
to become a registered
Australian nurse.
Bryant says he is grateful to
have had the support to complete
this important qualification,
and is looking forward to
transitioning into a nursing role
in the coming months.
“Ryman truly value and care for
their people,” says Bryant. “It is
inspiring and motivating when
your team members, residents
and their families appreciate your
hard work and passion.
“Ryman has supported me
in achieving my goals and in
developing my skills through
e-learning and on-site training.”
His message to others: “If you
want to work in a high-class
aged-care facility with a very
supportive team then Ryman
is the place for you”.
Working at Ryman you’ll be
supported and have opportunities
to grow, learn and develop as part
of an amazing team.”
Bryant Fernandez, Personal Care Worker, John Flynn Village
“
63
Awards, charities
and community partnerships
Engagements with communities
We continued our involvement with communities
through hundreds of partnerships associated
with our villages. These relationships reflect our
focus on engaging locally and lift awareness of
the Ryman brand for people living in those areas.
Among our community partnerships this year were:
• the Charles Upham Village Big Splash – a large
community fundraising event in Rangiora
• sponsorship of Riccarton Racecourse
by Kevin Hickman Village
• funding for the Ryman Healthcare Bowls
Stadium, an indoor arena at Bowls Orewa
• sponsorship of the Glen Waverley Bowls Club
by our Nellie Melba and Weary Dunlop villages.
National support initiatives
In New Zealand we actively support a range
of organisations that align with our purpose.
We are a long-term sponsor of the Senior
New Zealander of the Year award in the Kiwibank
New Zealander of the Year Awards – won this
year by philanthropist Sir Mark Dunajtschik.
During the year we increased our investment
to become a Principal Sponsor of the
Royal New Zealand Ballet.
In Victoria we support the Melba Opera Trust
and the Melbourne Symphony Orchestra.
This year we also renewed our commitment
to the excellent work undertaken by Alzheimers
New Zealand, extending our involvement as lead
partner for the next three years.
The Prostate Cancer Foundation Man Van, which was
funded by Ryman.
Support for the Prostate Cancer
Foundation
Each year, our residents and team members
choose a charity partner and Ryman matches
each dollar they raise – doubling the amount
that the partner receives.
This year we donated $422,000 to the prostate
cancer cause in New Zealand. Prostate cancer
is the most common form of cancer in men.
The funding has allowed the Prostate Cancer
Foundation of New Zealand to buy a dedicated
‘Man Van’.
RYMAN HEALTHCARE ANNUAL REPORT 2023
64
Ryman Prize
Research into the health of older people remains
under-resourced at a time when the population
aged 70 and over is growing. In 2015 we set up the
Ryman Prize to help address this, with a $250,000
international award that aims to encourage the
best and brightest in the world to pursue solutions
to the many problems of old age.
The award is now well established, with an international
reputation thanks to a long list of prestigious winners.
This year’s winner was Professor Perminder Sachdev,
a world-leading researcher and academic who has
dedicated his career to understanding the causes and
treatment of psychiatric disorders including dementia.
Previous winners
2015 Gabi Hollows
(Restoring sight)
2016 Professor Henry Brodaty
(Alzheimers research)
2017 Professor Peter St George-Hyslop
(Neurodegenerative research)
2018 Professor Takanori Shibata
(Robotics)
2019 Dr Michael Fehlings
(Degenerative cervical myelopathy research)
2020 Miia Kivipelto
(Alzheimers research)
2021 Professor Kenneth Rockwood
(Enhancing the understanding of ageing)
Awards
We continue to be recognised for the strength
of our brand and the quality of the care we provide.
Key awards received this year included:
• the Reader’s Digest Most Trusted Brand in the
Aged Care and Retirement Villages category
for the ninth time
• the Reader’s Digest Quality Service Award
– overall winner
for the eighth time
• agedadvisor.co.nz People’s Choice award
– best operator in New Zealand
for the fourth time
• 11th Asia-Pacific Eldercare Innovation Awards:
– Operator of the Year (Ageing in Place)
– best response to COVID-19
– social engagement initiative of the year
– best residential aged-care facility.
65
Artist’s impression of our upcoming Bert Newton Village.
RYMAN HEALTHCARE ANNUAL REPORT 2023
66
Results
67
We have delivered a solid
result and taken important
steps to reposition the
business. Our balance sheet
has been strengthened to
capitalise on the significant
growth opportunities and we
will continue to invest strongly
in portfolio development to
meet the growing demand
for our product.”
Dave Bennett, Group Chief Financial Officer
“
RYMAN HEALTHCARE ANNUAL REPORT 2023
68
69
6-year summary
FOR THE YEAR ENDED 31 MARCH 2023
202320222021202020192018
Financial
Underlying profit (non-GAAP)
3
$m301.9255.0224.4242.02 27.0203.5
Reported net profit after tax$m2 57. 8692.9423.1264.7326.0388.2
Net operating cash flows$m650.8586.0413.1449.8401.4349.3
Net assets$m4,663.93,434.52,829.22,301.02 ,170.11,940.5
Interest-bearing debt to interest-
bearing debt plus equity ratio%33%43%44%42%38%35%
Dividend per sharecents8.822 .422 .424.222 .720.4
Villages
New sales of occupation rightsno.462560503513414458
Resales of occupation rightsno.1,057983925923824825
Total sales of occupation rightsno.1,5191,5431,4281,4361,2381,283
Land bank (to be developed)
1,2
no.5,8686,3066,1466,5956,5935,952
Portfolio:
Aged-care bedsno.4,4564,2394,0873,9113,6603,367
Retirement-village unitsno.9,1428,5387, 9 8 37,4 2 36,8786,414
Total units and bedsno.13,59812,77712,07011,33410,5389,781
1 Includes retirement-village units and aged-care beds.
2 Of the 5,868 units and beds in the land bank, 2,327 are subject to resource and building consent.
202320222021202020192018
Underlying profit (non-GAAP)
3
$m301.9255.0224.4242.02 27.0203.5
Unrealised fair-value movement
on retirement-village units$m73.74 67.1201.2(70.9)102.4185.3
Deferred tax movement
$m
51.6(29.2)12 .693.6(3.4)(0.6)
Impairment loss
$m
(11.0)-(15.1)---
Costs relating to USPP
prepayment and swaps$m
(158.3)-----
Reported net profit after tax$m2 57. 8692.9423.1264.7326.0388.2
3 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, impairment
losses on non-trading assets and the cost of exiting USPP borrowings and swaps because these items do not reflect the trading
performance of the Company.
* Generally Accepted Accounting Principles.
Artist’s impression of our upcoming Mulgrave Village.
RYMAN HEALTHCARE ANNUAL REPORT 2023
70
Financial statements
Consolidated financial statements
72 Consolidated income statement
73 Consolidated statement of comprehensive income
74 Consolidated statement of changes in equity
75 Consolidated statement of financial position
76
Consolidated statement of cash flows
132
72
78
Notes to the consolidated
financial statements
78 General information
82
Revenue
83
Operating expenses
84
Depreciation and amortisation expense
85
Finance costs
86
Income tax
88
Cash and cash equivalents
89
Trade and other receivables
90
Property, plant and equipment
95
Investment properties
99
Intangible assets
100
Share capital
102
Reserves
104
Trade and other payables
105
Employee entitlements
105
Refundable accommodation deposits
105
Interest-bearing loans and borrowings
110
Derivative financial instruments
115
Occupancy advances (non-interest bearing)
116
Lease liabilities
118
Financial instruments – risk management and fair values
126
Segment information
127
Related-party transactions
128
Key management personnel compensation
129
Employee share schemes
130
Commitments
131
Contingent liabilities
131
Subsequent events
131
Authorisation
Independent auditor’s report
71
RYMAN HEALTHCARE ANNUAL REPORT 2023
72
The accompanying notes form part of these consolidated financial statements.
Consolidated income statement
FOR THE YEAR ENDED 31 MARCH 2023
Notes20232022
$000$000
Care and village fees4 3 7,3 4 1398,206
Management fees122 ,769105,552
Interest received2 ,14041
Other income8,7274,998
Total revenue2570,977508,797
Fair-value movement of investment properties10431,503745,885
Total income1,002,4801,254,682
Operating expenses3(533,279)(466,238)
Depreciation and amortisation expense4(46,597)(35,698)
Finance costs5(205,374)(30,664)
Impairment loss9(11,034)-
Total expenses(796,284)(532,600)
Profit before income tax206,196722,082
Income tax credit/(expense)651,640(29,209)
Profit for the year257,836692,873
Earnings per share (cents per share)
Basic and diluted1249.9138.6
73
The accompanying notes form part of these consolidated financial statements.
Consolidated statement of comprehensive income
FOR THE YEAR ENDED 31 MARCH 2023
Notes20232022
$000$000
Profit for the year257,836692,873
Items that will not be later reclassified to profit or loss
Revaluation of property, plant and equipment (unrealised)9,13a156,773-
156,773-
Items that may be later reclassified to profit or loss
Fair-value movement and reclassification of cash flow hedge reserve13b21,47038,410
Deferred tax movement recognised in cash flow hedge reserve13b(6,006)(10,857)
Movement in cost of hedging reserve13c(1,554)1,319
Reclassification adjustment to income statement13c(3,518)-
Deferred tax movement in cost of hedging reserve13c1,420(369)
Gain on hedge of foreign-owned subsidiary net assets13d670690
Loss on translation of foreign operations13d(8,306)(1,977)
4,17627, 2 1 6
Other comprehensive income160,9492 7, 2 1 6
Total comprehensive income418,785720,089
All profit and total comprehensive income is attributable to parent company shareholders and is derived from continuing operations.
RYMAN HEALTHCARE ANNUAL REPORT 2023
74
The accompanying notes form part of these consolidated financial statements.
Consolidated statement of changes in equity
FOR THE YEAR ENDED 31 MARCH 2023
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
2023
Balance at
1 April 202233,290453,56815,4913,652500(38,174)2,966,1933,434,520
Profit for the year13------257,836257,836
Other comprehensive
income for the year13-156,77315,464(3,652)(7,636)--160,949
Total comprehensive
income for the year13-156,77315,464(3,652)(7,636)-257,836418,785
Issue of ordinary
shares – dividend
reinvestment plan1243,911------43,911
Issue of ordinary
shares – equity raise12876,038------876,038
Treasury stock
movement13-----3,445-3,445
Loss on treasury shares13------(802)(802)
Dividends paid
to shareholders13------(112,000)(112,000)
Balance at
31 March 2023
953,239610,34130,955-(7,136)(34,729)3,111,2274,663,897
2022
Balance at
1 April 202133,290453,568(12,062)2 ,70 21,7 87(35,389)2,385,3202,829,216
Profit for the year13------692,873692,873
Other comprehensive
income for the year13--27,553950(1,287)--27, 2 1 6
Total comprehensive
income for the year13--27,553950(1,287)-692,873720,089
Treasury stock
movement13-----(2 ,785)-(2 ,785)
Dividends paid
to shareholders13------(112,000)(112,000)
Balance at
31 March 202233,290453,56815,4913,652500(38,174)2,966,1933,434,520
75
The accompanying notes form part of these consolidated financial statements.
Consolidated statement of financial position
AT 31 MARCH 2023
Notes20232022
$000$000
Assets
Cash and cash equivalents727, 87 928,309
Trade and other receivables8719,121671,463
Inventory14,61826,312
Advances to employees2514,21715,415
Derivative financial instruments18,213 6 ,4741 9,574
Assets held for sale931,379-
Property, plant and equipment92,205,4282,091,001
Investment properties109,322,9028,027,267
Intangible assets1184,83251,684
Deferred tax asset 65 3 ,7 7435,057
Total assets12,510,62410,966,082
Equity
Issued capital12953,23933,290
Reserves13599,431435,037
Retained earnings133,111,2272,966,193
Total equity4,663,8973,434,520
Liabilities
Trade and other payables14205,784264,254
Employee entitlements1549,7 7339,812
Revenue in advance299,27181,251
Refundable accommodation deposits16300,314199,783
Derivative financial instruments18,215,98827, 2 9 1
Interest-bearing loans and borrowings172,330,9502 ,576,737
Occupancy advances (non-interest bearing) 194,826,1824,286,459
Lease liabilities2013,78713,494
Deferred tax liability 614,67842 ,481
Total liabilities 7,846,7277,531,562
Total equity and liabilities12,510,62410,966,082
Net tangible assets (cents per share) – 2022 restated12658.1669.6
RYMAN HEALTHCARE ANNUAL REPORT 2023
76
The accompanying notes form part of these consolidated financial statements.
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 MARCH 2023
Notes20232022
$000$000
Operating activities
Receipts from residents1,602,5181,396,155
Interest received2,198266
Payments to suppliers and employees(469,648)(4 35,170)
Payments to residents(437,375)(346,030)
Interest paid(46,864)(29,243)
Net operating cash flows650,829585,978
Investing activities
Purchase of property, plant and equipment(304,100)(284,288)
Purchase of intangible assets(20,106)(14,346)
Purchase of investment properties(608,784)(434,395)
Capitalised interest paid(108,069)(50,006)
Advances to employees1,199(4, 275)
Net investing cash flows(1,039,860)(787,310)
Financing activities
Proceeds from equity raise (net)12876,038-
Drawdown of bank loans (net)1 4 6 ,57457,6 74
Proceeds from the Institutional Term Loan-269,243
Proceeds from issue of US Private Placement notes 17290,149-
Prepayment of US Private Placement notes17(748,924)-
Prepayment of cross-currency interest rate swaps18,21(106,594)-
Dividends paid and dividend reinvestment plan costs12(68,089)(112,000)
Sale/(Purchase) of treasury stock (net)2 ,643(2 ,785)
Repayment of lease liabilities (3,196)(2,662)
Net financing cash flows388,601209,470
Net (decrease)/increase in cash and cash equivalents(4 30)8,138
Cash and cash equivalents at the beginning of the year28,30920,171
Cash and cash equivalents at the end of the year2 7, 8 7 928,309
77
The accompanying notes form part of these consolidated financial statements.
Consolidated statement of cash flows (continued)
FOR THE YEAR ENDED 31 MARCH 2023
Reconciliation of net profit after tax with net cash flow from operating activities
20232022
$000$000
Net profit after tax257,836692,873
Adjusted for:
Movements in statement of financial position items
Occupancy advances620,700659,608
Accrued management fees(91,850)(73,827)
Refundable accommodation deposits100,6198 6 ,474
Revenue in advance18,0199,435
Trade and other payables41,1149,172
Trade and other receivables(46,554)(129,017)
Inventory11,632390
Employee entitlements9,9617,7 78
Non-cash items:
Depreciation and amortisation43,22533,026
Depreciation of right-of-use assets3,3722 ,672
Impairment11,034-
Deferred tax(51,640)29,209
Unrealised foreign exchange (gain)/loss(3,459)4,070
Adjusted for:
Fair-value movement of investment properties(431,503)(745,885)
Costs relating to USPP prepayment and swaps158,323-
Net operating cash flows650,829585,978
Net operating cash flows includes net occupancy advance receipts from retirement-village residents
of $1,059.0 million (2022: $908.1 million).
Also included in operating cash flows are net receipts from refundable accommodation deposits of
$100.5 million (2022: $87.4 million).
Net operating cash flows also include management fees collected of $62.4 million (2022: $50.2 million).
Accounting policy: Statement of cash flows
The statement of cash flows is prepared exclusive of Goods and Services Tax (GST). This is consistent
with the method used in the income statement.
Operating activities represent all transactions and other events that are not investing or financing activities,
and include receipts and repayments of occupancy advances.
Investing activities are those activities relating to the acquisition and disposal of investments and any other
property, plant and equipment, or investment properties.
Financing activities are those activities relating to changes in the equity and debt capital structure of the
Group and those activities relating to the cost of servicing the Company’s equity capital.
RYMAN HEALTHCARE ANNUAL REPORT 2023
78
Notes to the consolidated financial statements
FOR THE YEAR ENDED 31 MARCH 2023
The notes to the consolidated financial statements include information that 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.
1. GENERAL INFORMATION
Reporting entity
The consolidated 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. The Group develops, owns and
operates integrated retirement villages, resthomes, and hospitals for the elderly within New Zealand and Australia.
All trading subsidiaries operate in the aged-care sector in New Zealand and Australia, are 100 percent owned
and have balance dates of 31 March. The operating subsidiaries are listed below.
• Anthony Wilding Retirement Village Limited
• Bert Newton Retirement Village Pty Ltd
• Bert Sutcliffe Retirement Village Limited
• Bob Owens Retirement Village Limited
• Bob Scott Retirement Village Limited
• Bruce McLaren Retirement Village Limited
• Café Ryman Russley Road Limited
• Charles Brownlow Retirement Village Pty Ltd
• Charles Fleming Retirement Village Limited
• Charles Upham Retirement Village Limited
• Deborah Cheetham Retirement Village Pty Ltd
• Diana Isaac Retirement Village Limited
• Edmund Hillary Retirement Village Limited
• Ernest Rutherford Retirement Village Limited
• Essie Summers Retirement Village Limited
• Evelyn Page Retirement Village Limited
• Frances Hodgkins Retirement Village Limited
• Grace Joel Retirement Village Limited
• Hilda Ross Retirement Village Limited
• James Wattie Retirement Village Limited
• Jane Mander Retirement Village Limited
• Jane Winstone Retirement Village Limited
• Jean Sandel Retirement Village Limited
• John Flynn Retirement Village Pty Ltd
• Julia Wallace Retirement Village Limited
• Keith Park Retirement Village Limited
• Kevin Hickman Retirement Village Limited
• Kiri Te Kanawa Retirement Village Limited
• Linda Jones Retirement Village Limited
• Logan Campbell Retirement Village Limited
• Malvina Major Retirement Village Limited
• Margaret Stoddart Retirement Village Limited
• Miriam Corban Retirement Village Limited
• Murray Halberg Retirement Village Limited
• Nellie Melba Retirement Village Pty Ltd
• Ngaio Marsh Retirement Village Limited
• Possum Bourne Retirement Village Limited
• Raelene Boyle Retirement Village Pty Ltd
• Rita Angus Retirement Village Limited
• Rowena Jackson Retirement Village Limited
• Ryman Aged Care (Australia) Pty Ltd
• Ryman Cambridge Retirement Village Limited
• Ryman Construction Pty Ltd
• Ryman Healthcare (Australia) No. 11 Pty Ltd
• Ryman Healthcare (Australia) Pty Ltd
• Ryman Napier Limited
• Ryman Northwood Retirement Village Limited
• Shona McFarlane Retirement Village Limited
• Weary Dunlop Retirement Village Pty Ltd
• William Sanders Retirement Village Limited
• Yvette Williams Retirement Village Limited
79
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
Statement of compliance
Ryman Healthcare Limited is a Financial Markets Conduct reporting entity under the Financial Reporting Act 2013
and the Financial Markets Conduct Act 2013. Its consolidated financial statements comply with these Acts.
The consolidated financial statements have been prepared in line with Generally Accepted Accounting
Principles in New Zealand (NZ GAAP). The statements comply with New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS) and other applicable financial reporting standards.
The consolidated financial statements also comply with International Financial Reporting Standards (IFRS).
Basis of preparation
Accounting policies are selected and applied in a way that ensures the resulting financial information satisfies the
concepts of relevance and reliability, and the substance of the underlying transactions or other events is reported.
Apart from the new standards and interpretations adopted in the current period, the accounting policies set
out below have been consistently applied in preparing the consolidated financial statements for the year ended
31 March 2023. These policies have also been applied to the comparative information presented for the year
ended 31 March 2022. Some comparatives have been reclassified to align with current year presentation.
Functional and presentation currency
The information is presented in thousands of New Zealand dollars (NZD). Both the functional and the presentation
currency of Ryman Healthcare Limited and its New Zealand subsidiaries are NZD.
The functional currency for its Australian subsidiaries is Australian dollars (AUD).
All reference to USD refers to US dollars.
Measurement base
The Group follows the accounting principles recognised as appropriate for measuring and reporting on financial
performance and financial position on a historical cost basis, except when:
• certain property, plant and equipment is subject to revaluation (note 9)
• assets held for sale are measured at the lower of their carrying amounts and fair value less costs to sell (note 9)
• investment property is measured at fair value (note 10)
• certain financial assets and liabilities are measured at fair value (notes 18 and 21).
Critical judgements and accounting estimates in applying accounting policies
In applying the Group’s accounting policies, management must make judgements, estimates, and assumptions
about the carrying values 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 periods in which the estimates are revised, if the revisions affect only those
periods. Revisions to accounting estimates are recognised in the periods of the revisions and future periods,
if the revisions affect both current and future periods.
RYMAN HEALTHCARE ANNUAL REPORT 2023
80
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
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 effects on the amounts
recognised in the consolidated financial statements.
• Valuation of property, plant and equipment – note 9
• Valuation of investment property – note 10.
Adopting new and amended standards and interpretations
In the current year the Group adopted all mandatory new and amended standards and interpretations.
Implementation of the International Financial Reporting Interpretations Committee’s (IFRIC’s)
April 2021 agenda decision in relation to software-as-a-service (SaaS) arrangements
The Group revised its accounting policy in relation to the upfront configuration and customisation costs incurred
in implementing SaaS arrangements in response to the IFRIC agenda decision clarifying its interpretation of
how current accounting standards apply to these arrangements (refer note 11). The impact of this change is
not material and the Group has applied the revised accounting policy from 1 April 2022.
Standards and interpretations on issue but not yet adopted
The Group is 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 2023.
Summary of significant accounting policies
The significant accounting policies that are pervasive throughout the consolidated financial statements are set
out below. Significant accounting policies that are specific to certain balances or transactions are set out within
the notes to which they relate.
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.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company,
using consistent accounting policies.
All significant inter-company transactions and balances are eliminated in full on consolidation.
Income and expenses for each subsidiary whose functional currency is not NZD 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.
Foreign currency translation
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange
rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies
are retranslated at the rates of exchange ruling at the reporting date.
81
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
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
rates as at the dates of the initial transactions. Non-monetary items carried at fair value that are denominated
in foreign currencies are retranslated at the rates on the date when the fair values were determined.
Goods and Services Tax (GST)
Revenue, expenses, assets and liabilities are recognised net of the amounts of 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 amounts of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of the
receivables or payables in the statement of financial position.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s statement of financial position when
the Group becomes party to the contractual provisions of the instruments.
Impairment of assets
At each interim and annual reporting 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 an 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.
The 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 values. The Group uses a discount rate that
reflects current market assessments of the time value of money and the risks specific to the assets, 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 that case the reversal of
the impairment loss would be treated as a revaluation increase.
RYMAN HEALTHCARE ANNUAL REPORT 2023
82
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
2. REVENUE
Accounting policy: Revenue
The Group recognises revenue from the following major sources.
• Care and village fees
• Management fees
• Interest received.
Revenue is recognised as follows.
Care and village fees
Care-facility and retirement-village service fees are linked to providing services on specific days (service dates).
Revenue from care-facility and retirement-village service fees is recognised on completion of the service dates.
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 periods of service.
The period of service is determined as being the greater of the expected period of tenure and 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.
Accounting policy: Revenue in advance
Revenue in advance represents those amounts by which the management fees over the contractual period
exceed recognition of the management fees based on expected tenure.
83
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
3. OPERATING EXPENSES
20232022
$000$000
Employee costs (see below)356,615305,759
Property-related expenses70,82164,044
Other operating costs (see below)105,84396,435
Total operating expenses533,279466,238
Employee costs and other operating costs include:
Post-employment benefits (KiwiSaver/Superannuation)14,29110,333
Auditor’s remuneration to Deloitte Limited comprises:
Audit of financial statements563452
Australia aged-care reporting108
Directors’ fees (note 24)1,3191,365
Donations^347517
^ No donations have been made to any political party (2022: $Nil).
RYMAN HEALTHCARE ANNUAL REPORT 2023
84
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
4. DEPRECIATION AND AMORTISATION EXPENSE
Accounting policy: Depreciation and amortisation
Property, plant and equipment
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 percent SL
• Plant and equipment 4-25 percent SL
• Furniture and fittings 20 percent SL
• Motor vehicles 20 percent SL
• Right of use assets Term of lease SL.
Software
Amortisation is provided on internally generated software assets and acquired software assets as follows.
• Internally generated software 10-20 percent SL
• Acquired software 10-25 percent SL.
The estimated useful lives, residual value and depreciation/amortisation method are reviewed at the end
of each reporting period, with the effects of any changes in estimates accounted for on a prospective basis.
20232022
$000$000
Depreciation (note 9)
Buildings12,6809,166
Plant and equipment12,93012,849
Furniture and fittings4,2614,475
Motor vehicles1,6121,440
Right-of-use assets3,3722,662
34,85530,592
Amortisation (note 11)
Software1 1 ,74 25,106
1 1 ,74 25,106
Total46,59735,698
During the year, the Group reviewed the expected useful life of myRyman (internally generated software).
The Group shortened the expected useful life of the asset, resulting in higher amortisation expense. The change
in estimate is applied on a prospective basis and does not have a material impact on the current year results.
85
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
5. FINANCE COSTS
Accounting policy: 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 costs
of those assets until the assets are substantially ready for use.
All other borrowing costs are recognised in profit or loss in the periods in which they are incurred.
Notes20232022
$000$000
Total interest paid on loans and borrowings (including related fees)119,88459,945
Release of cash flow hedge reserve 1335,04920,523
Amount of interest capitalised 9,11(108,069)(50,006)
Net interest expense on borrowings46,86430,462
Interest on lease liabilities 20187202
Costs relating to US Private Placement (USPP) prepayment and swaps158,323-
Total finance costs205,37430,664
Costs relating to USPP prepayment and swaps are comprised of:
Loss on USPP notes prepayment 17e62 ,137-
Foreign currency movement on USPP notes 17e24,405-
Loss on close-out of cross-currency interest rate swaps 18e75,512-
Reclassification adjustment – close-out of cross-currency
interest rate swaps13b,13c,18e(9,914)-
Reclassification adjustment – modified interest rate swaps 13b,18f(1,861)-
Fair value changes on derivatives 18f8,044-
Total costs relating to USPP prepayment and swaps158,323-
RYMAN HEALTHCARE ANNUAL REPORT 2023
86
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
6. INCOME TAX
Accounting policy: Income tax
Income tax in 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.
Deferred tax
Deferred tax is provided 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
• temporary differences arising from the initial recognition of assets or liabilities that affect neither accounting
profit nor taxable profit, and do 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 to the extent that it is probable that future taxable profits will be available
against which the asset can be used.
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.
a. Income tax recognised in income statement
20232022
$000$000
Tax expense comprises:
Current tax expense--
Deferred tax (credit)/expense(51,640)29,209
Total income tax (credit)/expense(51,640)29,209
Reconciliation between prima facie taxation and tax expense
2023202320222022
$000%$000%
Profit before income tax 206,196722,082
Income tax expense calculated at 28%57,73 528.0%202,18328.0%
Tax effects of:
• non-taxable income(123,496)(59.9)%(208,894)(28.9)%
• property movements41,38220.1%39,4275.5%
• capitalised interest deducted for tax(30,681)(14.9)%(13,759)(1.9)%
• other3,4201.7%10,2521.3%
Total income tax (credit)/expense(51,640)(25.0)%29,2094.0%
87
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
6. INCOME TAX (CONTINUED)
a. Income tax recognised in income statement (continued)
The tax rate used in the above reconciliation is the corporate tax rate of 28 percent (2022: 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 (2022: 30 percent).
Non-taxable income arises principally from the fair value movement of investment property.
Total Group tax losses available in New Zealand and Australia amount to NZ$974.3 million
(2022: NZ$567.6 million) and AU$235.0 million (2022: AU$156.0 million) respectively. Recognition of the
deferred tax asset is based on expected taxable earnings in future periods. One of the key drivers for this
will be the uplift in the taxable deferred management fees as new occupation rights are entered into at higher
prices within the next fifteen years. There are no unrecognised tax losses in New Zealand (2022: NZ$Nil).
In Australia, there are unrecognised tax losses of AU$17.1 million relating to capital losses (2022: AU$Nil).
b. Deferred tax asset/liability
Opening
balance
Recognised
in income
Recognised
in equity
Closing
balance
$000$000$000$000
2023
Property, plant and equipment(59,958)( 7,4 2 9)54(67,333)
Investment properties(67,999)(61,663)(3)(129,665)
Deferred management fee (89,541)(22,526)246(111,821)
Derivative financial instruments( 7,675 )-(4,4 83)(12,158)
Other8,3233,414(20)11,717
Tax loss carry-forwards recognised209,426139,844(914)348,356
Total deferred tax asset/(liability)(7,424)51,640(5,120)39,096
Opening
balance
Recognised
in income
Recognised
in equity
Closing
balance
$000$000$000$000
2022
Property, plant and equipment
(43,226)(16,706)(26)(59,958)
Investment properties(15,563)(52,891)455(67,999)
Deferred management fee(68,892)(20,619)(30)(89,541)
Derivative financial instruments3,640-(11,315)( 7,675 )
Other6,9521,371-8,323
Tax loss carry-forwards recognised149,54559,636245209,426
Total deferred tax asset/(liability)32,456(29,209)(10,671)(7,424)
The net deferred tax asset of $39.1 million as at 31 March 2023 (2022: $7.4 million net deferred tax liability)
is reflected in the statement of financial position as a deferred tax asset of $53.8 million (2022: $35.1 million)
and a deferred tax liability of $14.7 million (2022: $42.5 million).
RYMAN HEALTHCARE ANNUAL REPORT 2023
88
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
6. INCOME TAX (CONTINUED)
c. Imputation credit memorandum account
20232022
$000$000
Closing balance105874
Imputation credits available directly and indirectly
to shareholders of the parent company, through:
• parent company104870
• subsidiaries14
Closing balance105874
7. CASH AND CASH EQUIVALENTS
Accounting policy: Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and on-demand deposits, and other short-term,
highly liquid investments readily convertible to a known amount of cash and subject to an insignificant risk
of changes in value. This includes all call borrowing, such as bank overdrafts, used by the Group as part of its
day-to-day cash management.
The Group has an arrangement with ANZ that on a nightly basis a sweep is performed across all transactional
bank accounts. This consolidates all transactional bank accounts into a single account.
There is a right to offset cash balances against bank debt documented in the Group’s facility agreement.
The Group has access to an overdraft facility. The bank overdraft facility is secured by a general security
agreement and mortgages over the freehold land and buildings of the Group in the same manner as the bank
loans (note 17). Interest is payable at the 3-month BKBM rate, plus a specified margin. The interest rate on all
overdraft facilities at 31 March 2023 was 13.45 percent (2022: 9.65 percent).
89
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
8. TRADE AND OTHER RECEIVABLES
Accounting policy: Trade and other receivables
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
in the expected life of a debtor.
Trade receivables are written off when there is no realistic chance of recovery.
20232022
$000$000
Trade debtors 711,840654,769
Other receivables7, 2 8 116,694
Total trade and other receivables719,121671,463
Debtors principally comprise amounts due for occupancy advances and care and village fees.
The receivable for an occupancy advance is recognised when a legally binding contract with the resident is
in place and the unit is either complete or is considered to have met the threshold for inclusion in the investment
property valuation (see note 10). At the same time as recognising the occupancy advance receivable, the Group
recognises the corresponding occupancy advance liability. Occupancy advances are cash settled by residents
on occupation of a retirement-village unit.
Care and village fees are received from residents (payable 4-weekly in advance) and various government
agencies. Government-agency payment terms vary but the fees are typically paid fortnightly in arrears for
care services provided to residents.
Debtors are non-interest bearing, although the Group has the right to charge interest on overdue settlements
of occupancy advances or overdue care and village fees.
There is no significant concentration of credit risk as trade debtors are either individual residents or government
agencies. No changes have been made in the techniques or significant assumptions used in determining expected
credit losses during the reporting period.
RYMAN HEALTHCARE ANNUAL REPORT 2023
90
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
9. PROPERTY, PLANT AND EQUIPMENT
Accounting policy: Property, plant and equipment
Property, plant and equipment comprises completed care facilities, corporate assets and land (including
long-term leases of land), care facilities under development, additions since last valuation and right-of-use
assets. Refer to note 20 for the accounting policy in respect of right-of-use assets.
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 an 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 (every 2 years) to ensure that an asset’s carrying
amount does not differ materially from its fair value at the reporting date.
Any revaluation surplus is recorded in other comprehensive income and credited to the asset revaluation reserve
included in the equity section of the statement of financial position, 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 a 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 the disposal of an 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 in which
the item is derecognised.
Accounting policy: Assets held for sale
Non-current assets are classified as assets held for sale if it is highly probable that they will be recovered
primarily through sale rather than through continuing use.
Such assets are generally measured at the lower of their carrying amount and fair value less costs to sell.
Any impairment losses on their initial classification as assets held for sale and any subsequent gains and
losses on remeasurement are recognised in profit or loss.
91
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Freehold
land at
valuation
Buildings
at valuation
Property
under
development
at cost
Plant and
equipment
at cost
Furniture
and fittings
at cost
Motor
vehicles
at cost
Right-of-
use
assetsTotal
$000$000$000$000$000$000$000$000
2023
Gross carrying amount
Balance at 1 April 2022565,318502,910922,349144,46062,39416,80036,4272,250,658
Additions1,6257,355204,86911,9981,28176211,640239,530
Net foreign-currency
exchange difference(1,018)(347)(4,926)(3)13-(11)(6,292)
Transfer from property
under development53,793106,302(158,693)(7,695)6,293---
Transfer (to)/from
investment property(4,155)(4,546)(173,308)----(182,009)
Transfer (to)/from
assets held for sale--(42 ,413)----(42 ,413)
Transfer (to)/from
intangible assets---(15,710)---(15,710)
Disposals------(20,166)(20,166)
Revaluation156,773( 1 7,0 1 3 )-----139,760
Balance at 31 March 2023772,336594,661747, 8 7 8133,05069,98117,56227,8902,363,358
Accumulated depreciation
Balance at 1 April 2022
-(10,245)-(62,929)(52,101)(11,154)(23,228)(159,657)
Depreciation-(12,680)-(12,930)(4,261)(1,612)(3,372)(34,855)
Depreciation capitalised
to property under
development------( 7, 27 9)( 7, 27 9)
Transfer to/(from)
intangible assets---7,7 2 0---7,7 2 0
Disposals------19,12819,128
Revaluation-1 7,0 1 3-----1 7,0 1 3
Balance at 31 March 2022-(5,912)-(68,139)(56,362)(12,766)(14,751)(157,930)
Total book value772,336588,749747, 8 7 864,91113,6194 ,7 9 613,1392,205,428
RYMAN HEALTHCARE ANNUAL REPORT 2023
92
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Freehold
land at
valuation
Buildings
at valuation
Property
under
development
at cost
Plant and
equipment
at cost
Furniture
and fittings
at cost
Motor
vehicles
at cost
Right-of-
use
assetsTotal
$000$000$000$000$000$000$000$000
2022
Gross carrying amount
Balance at 1 April 2021540,259415,577599,746126,58156,34514,95428,2841,781,746
Additions1,0476,251435,34913,5821,7521,8618,193468,035
Net foreign-currency
exchange difference(938)(390)(2 ,445)(56)(45)(15)(50)(3,939)
Transfer from property
under development24,95081,472(115,117)4,3534,342---
Transfer (to)/from
investment property--4,816----4,816
Disposals--------
Revaluation--------
Balance at 31 March 2022565,318502,910922,349144,46062,39416,80036,4272,250,658
Accumulated depreciation
Balance at 1 April 2021-(1,079)-(50,080)(47,6 2 6 )(9,714)(14,664)(123,163)
Depreciation-(9,166)-(12,849)(4,475)(1,440)(2,662)(30,592)
Depreciation capitalised
to property under
development-
-----(5,902)(5,902)
Revaluation--------
Balance at 31 March 2022-(10,245)-(62,929)(52,101)(11,154)(23,228)(159,657)
Total book value565,318492,665922,34981,53110,2935,64613,1992,091,001
Freehold land and buildings at fair value
All completed resthomes and hospitals included within the definition of freehold land and buildings were revalued
to fair value based on an independent valuation report prepared by registered valuers, CBRE Limited and CBRE
Valuations Pty Limited, at 31 March 2023 in line with NZ IFRS 13 – Fair Value Measurement. These revaluations are
undertaken every 2 years, unless there is sustained market evidence of a significant change in fair value, in which
case an earlier valuation will be obtained.
The valuers used multiple valuation techniques to estimate and determine fair value. The valuers made key
assumptions that included capitalisation of earnings (using capitalisation rates ranging from 10.25 percent to
13.75 percent), together with observed transactional evidence of the market value per care bed (ranging from
$70,000 to $235,000 per care bed). The land and building valuation within property, plant and equipment contains
an allowance for the value provided by the care facility to the Group’s independent-living and serviced-apartment
residents. The value of this allowance is determined based on a portion of the deferred management fees paid by
the Group’s independent-living and serviced-apartment residents. This portion of deferred management fees is
excluded from the investment property value. This approach has been consistently applied between periods.
93
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
As the fair value of land and buildings is determined using inputs that are unobservable, the Group
has categorised property, plant and equipment as Level 3 under the fair-value hierarchy in line with
NZ IFRS 13 – Fair Value Measurement. The significant unobservable inputs used in the fair-value measurement
of the Group’s freehold land and buildings are the capitalisation rate and the market value per care bed.
As the valuers used several valuation techniques, a significant decrease in the capitalisation rate could but
may not necessarily result in a significantly higher fair-value measurement. Conversely, a significant increase
in the capitalisation rate could but may not necessarily result in a significantly lower fair-value measurement.
A significant increase in the market value per care bed could but may not necessarily result in a significantly
higher fair-value measurement. Conversely, a significant decrease in the market value per care bed could but
may not necessarily result in a significantly lower fair-value measurement.
If freehold land and buildings were measured using the cost model, the carrying amounts would be as follows.
Freehold landBuildingsTotal
$000$000$000
Carrying amount (at cost)
Carrying amount at 31 March 2023179,034577,195756,229
Carrying amount (at cost)
Carrying amount at 31 March 2022128,789491,357620,146
Assets at cost
Property under development includes land held pending the development of care centres and retirement villages
amounting to $523.9 million (2022: $636.4 million) which is valued at cost.
Interest for the Group of $106.5 million (2022: $49.0 million) was capitalised during the period of construction
in the current year. The weighted-average capitalisation rate on funds borrowed is 5.66 percent per annum
(2022: 3.45 percent per annum).
RYMAN HEALTHCARE ANNUAL REPORT 2023
94
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Right-of-use assets
Included within property, plant and equipment are the right-of-use assets relating to leases.
Buildings
Plant and
equipmentTotal
$000$000$000
Balance at 1 April 2022
8,3094,89013,199
Additions7,5314,10911,640
Net foreign-currency exchange difference(11)-(11)
Depreciation(3,372)-(3,372)
Depreciation capitalised to property under development(4 4)(7,235)( 7, 27 9)
Disposals(864)( 1 74 )(1,038)
Balance at 31 March 202311,5491,59013,139
Balance at 1 April 202110,5213,09913,620
Additions6587,5358,193
Net foreign-currency exchange difference(50)-(50)
Depreciation(2,662)-(2,662)
Depreciation capitalised to property under development(158)( 5,74 4 )(5,902)
Balance at 31 March 20228,3094,89013,199
Asset held for sale
Following a review of the Group’s land portfolio, the land at Mt Martha (Victoria, Australia) and Newtown (Wellington,
New Zealand) is being held for sale. The sale of the Mt Martha land is now unconditional and settlement will occur in late 2023.
The Newtown land is being actively marketed for sale and a sale is expected to take place within 12 months.
An impairment loss of $11.0 million has been included in the income statement, writing down the carrying value of the land at
Mt Martha and Newtown to fair value less costs to sell.
95
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
10. INVESTMENT PROPERTIES
Accounting policy: 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. Rental income
from investment properties, being the management fee and retirement-village service fees, is accounted for in
line with note 2.
Investment properties are not depreciated.
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 range of valuations produced by
independent registered valuers and the requirement of NZ IFRS 13 – Fair Value Measurement to assume that
market participants act in their economic best interests. Any change in fair value is taken to the income
statement. The fair value is determined using discounted cash flow methodology.
As the fair value of investment property is determined using inputs that are unobservable, the
Group has categorised investment property as Level 3 under the fair-value hierarchy, in line with
NZ IFRS 13 – Fair Value Measurement. NZ IFRS 13 requires that the inputs are consistent with the
characteristics of the asset that a market participant would take into account in a transaction for the asset.
Valuation reports are produced by independent registered valuers, CBRE Limited, CBRE Valuations Pty Limited
and Jones Lang LaSalle Limited, at the reporting date. These reports combine discounted future cash flows
and occupancy advances received from residents for retirement-village units for which the Directors have
determined that the fair value is able to be reliably measured. From time to time the Directors may obtain
additional independent valuations for consideration in their determination of investment property carrying value.
The carrying value of completed investment property and investment property under development, where
fair value is able to be reliably measured as determined by the Directors, is based on the independent valuers’
reports and also includes occupancy advances received from residents, adjusted for accrued deferred
management fees and revenue in advance.
A key judgement in determining the fair value of investment property is deciding which units to include in
the valuation.
RYMAN HEALTHCARE ANNUAL REPORT 2023
96
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
10. INVESTMENT PROPERTIES (CONTINUED)
Determining whether fair value can be reliably measured
The table below details the considerations made in assessing whether the fair value of a unit can be reliably
measured at reporting date and whether the unit should therefore be included in the valuation.
Considerations made in determining if fair value can be reliably measured
Units that are or can be
occupied at reporting date
Units that are under development at reporting date
Agreement
to occupy in
place
The Directors have deemed
that fair value can only be
reliably measured if there is an
agreement to occupy in place.
The unit will not be subjected
to valuation unless there is an
agreement to occupy in place
for the unit.
Units without an agreement to
occupy are carried at cost.
The Directors have deemed that fair value can only
be reliably measured if there is an agreement to occupy
in place.
The unit will not be subjected to valuation unless there
is an agreement to occupy in place for the unit.
Units without an agreement to occupy are carried at cost.
Development
progress
To determine the progress of the development, the
stage and site costs incurred to date are considered
with reference to the forecast total costs of the stage
and site under development.
The proportion of units from the site included in the
valuation is compared to the costs incurred to date as
a proportion of total costs.
The number of units included in the valuation should
not exceed the proportion of costs incurred to date.
Units that are under development that cannot be
reliably measured are carried at cost.
Resident
move-in date
The date when a resident will be able to take
possession of their unit is considered relative to the
development timetable.
Units that are under development at reporting date and for which the Directors determine, after the
considerations detailed above, that fair value cannot be reliably measured, are carried at cost.
Management and the Directors undertake regular physical inspections of villages under development
to verify progress, particularly around reporting period ends, to help inform their judgements.
97
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
10. INVESTMENT PROPERTIES (CONTINUED)
20232022
$000$000
At fair value
Balance at 1 April8,027,2676, 8 3 7, 278
Additions (including transfers from property, plant and equipment) 873,952452,068
Realised fair-value movement:
• new retirement-village units122,941110,681
• existing retirement-village units234,901168,071
357,842278,752
Unrealised fair-value movement73,6614 67,1 3 3
Fair-value movement431,503745,885
Net foreign-currency exchange differences(9,820)(7,964)
Net movement for the year1,295,6351,189,989
Balance at 31 March9,322,9028,027,267
The realised fair-value movement arises from the sale and resale of rights to occupy to residents.
At 31 March 2023, 8,666 units were included in the valuation (31 March 2022: 8,190 units).
Year ended
31 March 2023
Year ended
31 March 2022
No. of unitsNo. of units
Units included in the valuation
Able to be occupied at reporting date and fair value
is judged as being able to be reliably measured8,4997,968
Under development at reporting date and fair value
is judged as being able to be reliably measured167222
Total units included in the valuation8,6668,190
RYMAN HEALTHCARE ANNUAL REPORT 2023
98
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
10. INVESTMENT PROPERTIES (CONTINUED)
Independent valuers’ key assumptions
The valuers used significant assumptions that included growth rates (ranging from 0.00 percent to 4.70 percent
nominal) (31 March 2022: 0.50 percent to 4.24 percent nominal) and discount rates (ranging from 11.75 percent
to 16.50 percent) (31 March 2022: 12.00 percent to 16.00 percent).
The land and building valuation within property, plant and equipment contains an allowance for the value provided
by a care facility to the Group’s independent-living and serviced-apartment residents. The value of this allowance
is determined based on a portion of the deferred management fees paid by the Group’s independent-living
and serviced-apartment residents. This portion of deferred management fees is excluded from the investment
property value. This approach has been consistently applied between periods.
Sensitivity
A 0.5 percent decrease in the 5-year plus growth rate would result in an approximately $255.2 million lower
fair-value measurement. Conversely, a 0.5 percent increase in the 5-year plus growth rate would result in an
approximately $231.4 million higher fair-value measurement.
A 0.5 percent decrease in the discount rate would result in an approximately $130.4 million higher fair-value
measurement. Conversely, a 0.5 percent increase in the discount rate would result in an approximately
$121.2 million lower fair-value measurement.
Other inputs used in the fair-value measurement of the Group’s investment property portfolio include the average
age of residents and the occupancy periods. A significant increase in the average age of entry of residents or a
decrease in the occupancy periods would result in a significantly higher fair-value measurement. Conversely,
a significant decrease in the average age of entry of residents or increase in the occupancy periods would result
in a significantly lower fair-value measurement.
Work in progress
Investment property includes investment property work in progress of $786.9 million (31 March 2022: $494.7 million),
which has been valued at cost. The Directors have determined that for work in progress, cost represents fair value.
No independent valuation of investment property work in progress is obtained.
Operating expenses
Direct operating expenses arising from investment property that generated income from management fees during
the period amounted to $53.2 million (31 March 2022: $47.3 million). All investment property generated income for
the Group from management fees, except for investment property work in progress.
Security
Residents make interest-free advances (occupancy advances) to the retirement villages in exchange for the right
to occupy retirement-village units. Under the terms of the New Zealand occupancy agreement, the occupancy
advance is secured by a registered first mortgage granted to the Statutory Supervisor. For New Zealand
occupancy advances relating to previous occupancy agreements that remain outstanding, the resident received
a unit title for life and a first mortgage over the residual interest for security purposes. Residents in Victoria,
Australia have the benefit of a charge over the title for the land under the Retirement Villages Act 1986.
99
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
11. INTANGIBLE ASSETS
Accounting policy: Intangible assets
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Internally generated software assets
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.
Acquired software assets
Acquired software assets are reported at cost less accumulated amortisation and any accumulated
impairment losses.
Software-as-a-Service (SaaS)
SaaS arrangements are service contracts providing the Group with the right to access a cloud provider’s
application software over the contract period.
Costs incurred to configure or customise, and the ongoing fees to obtain access to a SaaS provider’s application
software, are recognised as operating expenses when the services are received.
However, where costs incurred are for the development of software code that enhances or modifies, or creates
an additional capability for, existing software assets and meets the definition of and recognition criteria for an
intangible asset, those costs are recognised as software assets and amortised over the useful life of the software
on a straight-line basis.
RYMAN HEALTHCARE ANNUAL REPORT 2023
100
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
11. INTANGIBLE ASSETS (CONTINUED)
20232022
$000$000
Gross carrying amount
Opening balance69,66455,318
Additions36,90014,346
Transfer from property, plant and equipment15,710-
Closing balance1 2 2 , 2 7469,664
Accumulated amortisation
Opening balance(17,980)(12,874)
Transfer from property, plant and equipment(7,720)-
Amortisation (note 4)(11,742)(5,106)
Closing balance(37,442)(17,980)
Total book value84,83251,684
Intangible assets relate to internally generated and acquired software. During the year the Group reclassified
acquired software from property, plant and equipment to intangible assets.
Interest for the Group of $1.6 million (2022: $1.0 million) has been capitalised to intangible assets during
the current year. The weighted-average capitalisation rate on funds borrowed is 5.66 percent per annum
(2022: 3.45 percent per annum).
12. SHARE CAPITAL
Accounting policy: Ordinary shares
Incremental costs directly attributable to the issue of ordinary shares are recognised as deductions from equity.
Although the shares purchased for the leadership share scheme are treated as treasury stock under financial
reporting standards, they are not of the type contemplated by section 67A of the Companies Act 1993. They
carry the usual rights attaching to shares such as the right to receive dividends (albeit subject to contractual
requirements under the share scheme to applying dividend payments to repay loans) and the right to participate
in corporate actions. On this basis, the treasury stock has been included in the calculation of basic and diluted
earnings per share.
Issued and paid-up capital consists of 687,641,738 fully paid ordinary shares (2022: 500,000,000 shares) less
treasury stock of 2,494,282 shares (2022: 2,741,246 shares) (note 25). All shares rank equally in all respects.
Shares purchased on market under the leadership share scheme (note 25) are treated as treasury stock (note 13)
until vesting to the employee.
101
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
12. SHARE CAPITAL (CONTINUED)
Fully paid ordinary shares
Weighted average number
of ordinary shares
2023202220232022
’000’000’000’000
Total ordinary shares
(including treasury stock) at 1 April500,000500,000500,000500,000
Ordinary shares issued:
• Dividend reinvestment plan7,166-2,081-
• Equity raise180,476-14,242-
Total ordinary shares
(including treasury stock) at 31 March687,642500,000516,323500,000
During the year, the Company issued new ordinary shares in respect of its dividend reinvestment plan (DRP)
and equity raise. The increase in share capital of $919.9 million is net of directly attributable share issue costs
of $26.4 million.
Dividend reinvestment plan (DRP)
In November 2022, the Company adopted a fully underwritten DRP that applied to the 2023 interim dividend.
Under the DRP, shareholders can elect to reinvest all, part, or none of their net cash dividends payable in
the Company’s shares. Shares issued under the DRP in respect of the 2023 interim dividend were issued at
$6.1405 per share, being at a 2.5 percent discount to the market price at the time entitlements were determined.
The Company issued 7,165,540 new ordinary shares in December 2022 under the DRP. 1,459,511 new shares were
issued to shareholders who elected to participate in the DRP, and a further 5,706,029 new shares were issued to
an underwriter.
Equity raise
In February 2023 the Company announced a $902 million equity raise through an underwritten 1-for-2.81
accelerated pro rata entitlement offer of new ordinary shares. Under the offer, eligible shareholders could
subscribe for new ordinary shares at $5.00 per share if they chose to take up their entitlements. Shareholders
also had the option of selling or transferring all or some of their entitlements.
The purpose of the offer was to reset the Group’s capital structure, provide funds to strengthen its balance sheet
through the repayment of debt and better enable the Group to execute its growth framework.
The Company issued 180,476,198 new ordinary shares in February to March 2023 in respect of the equity raise.
RYMAN HEALTHCARE ANNUAL REPORT 2023
102
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
12. SHARE CAPITAL (CONTINUED)
Basic and diluted earnings per share (EPS)
20232022
Profit for the year ($000)257,836692,873
Weighted average number of shares (in ’000)516,323500,000
Basic and diluted EPS (cents per share)49.9138.6
Net tangible asset (NTA) per share
2023
2022
(restated)
NTA ($000)4,525,2913 ,3 47,7 7 9
Ordinary shares at 31 March (in ’000)687,642500,000
NTA per share (cents per share)658.1669.6
NTA is calculated as total assets less intangible assets and deferred tax assets and less total liabilities.
13. RESERVES
Notes20232022
$000$000
Reserves
Asset revaluation reserve13a610,341453,568
Cash flow hedge reserve13b30,95515,491
Cost of hedging reserve13c-3,652
Foreign-currency translation reserve13d(7,136)500
Treasury stock13e,25(34,729)(38,174)
599,431435,037
a. Asset revaluation reserve
Opening balance
453,568453,568
Revaluation
156,773-
Closing balance
610,341453,568
103
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
13. RESERVES (CONTINUED)
Notes20232022
$000$000
b. Cash flow hedge reserve
Opening balance15,491(12,062)
Valuation of interest rate derivatives28,12131,894
Valuation of cross-currency interest rate swap(33,443)(14,007)
Released to income statement35,04920,523
Reclassification adjustment to income statement –
close-out of cross-currency interest rate swaps18(6,396)-
Reclassification adjustment to income statement –
modified interest rate swaps18(1,861)-
Deferred tax movement on cash flow hedge reserve(6,006)(10,857)
Closing balance30,95515,491
c. Cost of hedging reserve
Opening balance3,6522 ,702
Valuation of cross-currency interest rate swap(1,554)1,319
Released to income statement--
Reclassification adjustment to income statement 18(3,518)-
Deferred tax movement on cost of hedging reserve1,420(369)
Closing balance-3,652
d. Foreign-currency translation reserve
Opening balance5001,787
Gain on hedge of foreign-owned subsidiary net assets670690
Loss on translation of foreign operations(8,306)(1,977)
Closing balance(7,136)500
e. Treasury stock (note 25)
Opening balance(38,174)(35,389)
Acquisitions-(15,625)
Vesting /Forfeiture of shares3,44512,840
Closing balance(34,729)(38,174)
f. Retained earnings
Opening balance2,966,1932,385,320
Net profit attributable to shareholders257,836692,873
Loss on disposal of treasury stock(802)-
Dividends paid(112,000)(112,000)
Closing balance3,111,2272,966,193
RYMAN HEALTHCARE ANNUAL REPORT 2023
104
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
13. RESERVES (CONTINUED)
Dividends paid
2023202320222022
Cents per share$000Cents per share$000
Recognised amounts
Final dividend paid – prior year13.6068,00013.6068,000
Interim dividend paid – current year8.8044,0008.8044,000
112,000112,000
Unrecognised amounts
Final dividend – current year--13.6068,000
Full-year dividend – current year8.8044,00022 .40112,000
All dividends were paid based on 500,000,000 shares on issue.
The Company adopted a DRP that applied to the 2023 interim dividend (refer note 12).
The Directors have determined that no final dividend will be paid in respect of the 2023 financial year.
14. TRADE AND OTHER PAYABLES
Accounting policy: 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.
20232022
$000$000
Trade payables108,37178,946
Other payables97,4 1 3185,308
Total trade and other payables205,784264,254
Trade payables are typically paid within 30 days of the invoice date or on the 20th of the month following the
invoice date. Other payables at 31 March 2023 include $71.8 million for the purchase of land (2022: $174.4 million).
105
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
15. EMPLOYEE ENTITLEMENTS
Accounting policy: 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 statement of financial position 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.
16. REFUNDABLE ACCOMMODATION DEPOSITS
Accounting policy: 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 rooms for life, or until the residents terminate the agreements.
Amounts payable under refundable accommodation deposits are non-interest bearing and recorded as a liability
in the statement of financial position.
As a resident may terminate their occupancy with limited notice, and the refundable accommodation deposit
is non-interest bearing, the refundable accommodation deposit has demand features so is carried at face value,
which is the original deposit received.
The deposit is repayable following the termination of the right to occupy.
17. INTEREST-BEARING LOANS AND BORROWINGS
Accounting policy: 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 amounts recognised and the redemption values are recognised in profit and loss using the effective
interest rate method.
Accounting policy: Hedges of a net investment
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for
as part of the net investment, are accounted for in two ways. Gains or losses relating to the effective portion
of a 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.
Interest-bearing loans and borrowings at 31 March 2023 include secured bank loans, an institutional term loan
and unsubordinated fixed-rate retail bonds (2022: secured bank loans, an institutional term loan, unsubordinated
fixed-rate retail bonds and USPP notes).
RYMAN HEALTHCARE ANNUAL REPORT 2023
106
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
17. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
Notes20232022
$000$000
Bank loans17a1,922 ,7691,780,619
Institutional term loan 17b267,265269,658
Retail bonds – RYM01017c150,000150,000
USPP notes – using contracted fixed USD foreign exchange rate17d-416,557
2,340,0342,616,834
Foreign exchange movement of USD USPP notes17d-14,615
Total loans and borrowings at face value2,340,0342,631,449
Issue costs for the institutional term loan capitalised17b(726)(876)
Issue costs for the retail bond capitalised17c(2,109)(2,605)
Issue costs for the USPP capitalised17d-(2,170)
Total loans and borrowings at amortised cost2,337,1992,625,798
Revaluation of institutional term loan debt in fair-value
hedge relationship17b(6,249)(5,690)
Revaluation of USPP debt in fair-value hedge relationship17d-(43,371)
Total loans and borrowings2,330,9502 ,576,7 3 7
a. Bank loans (secured)
The bank loan facilities have varying maturity dates through to May 2027 (2022: May 2027) and are subject
to floating interest rates. The average interest rates disclosed below exclude the impact of interest rate swap
agreements described in note 18.
20232022
$000$000
Bank loans (secured) – NZD1,277,5901 , 2 74 ,74 0
Bank loans (secured) – AUD in NZD645,179505,879
Total bank loans (secured) 1,9 2 2 ,76 91,780,619
Less cash and cash equivalents (note 7)(27,879)(28,309)
Net bank loans1,894,8901,752,310
Less than 1 year117,597-
Within 1–5 years1,805,1721,780,619
Total bank loans (secured)1,9 2 2 ,76 91,780,619
Average interest rates for bank loans – NZD7.4 1 %3.94%
Average interest rates for bank loans – AUD5.24%2.37%
107
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
17. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
b. Institutional term loan (secured)
The Group entered into an AU$250.0 million 7-year institutional term loan in May 2021, which matures in
May 2028. A portion of the loan (AU$153.85 million) is subject to a fixed interest rate. The remaining portion
of the loan (AU$96.15 million) is subject to floating interest rates.
The average interest rate for the loan is 5.14 percent (2022: 3.84 percent).
20232022
$000$000
Institutional term loan267,265269,658
Total institutional term loan at face value 267,265269,658
Issue costs for the institutional term loan capitalised
Opening balance(876)-
Capitalised during the year-(1,000)
Amortised during the year150124
(726)(876)
Total institutional term loan at amortised cost266,539268,782
Revaluation of debt in fair-value hedge relationship(6,249)(5,690)
Total institutional term loan260,290263,092
c. Retail bonds (secured)
The Group issued a retail bond for $150.0 million in December 2020. The retail bond has a maturity date
of 18 December 2026 and is listed on the NZX Debt Market (NZDX) with the ID RYM010.
The coupon rate for the retail bond is 2.55 percent.
Retail bond issue expenses, fees and other costs incurred in arranging retail bond finance are capitalised
and amortised over the terms of the relevant debt instruments.
20232022
$000$000
Retail bond – RYM010150,000150,000
Total retail bonds at face value 150,000150,000
Issue costs for the retail bond capitalised
Opening balance(2,605)(3,139)
Capitalised during the year(63)(22)
Amortised during the year559556
(2,109)(2,605)
Total retail bonds at amortised cost147,891147,395
RYMAN HEALTHCARE ANNUAL REPORT 2023
108
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
17. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
d. United States Private Placement (USPP) notes
In February 2021 and April 2022 the Group completed USPP note issuances, securing US$300.0 million
(Tranche 1) and US$200.0 million (Tranche 2) respectively of long-term debt. These USPP notes had maturity
dates of between 10 and 15 years and coupon interest rates of between 4.06 percent and 5.54 percent.
The proceeds from the issuance were used to repay bank loans.
In conjunction with the USPP issuances, the Group entered into cross-currency interest rate swaps (CCIRS)
to formally hedge the exposure of US$475.0 million to foreign currency risk over the term of the notes
(refer note 18). The USPP amount received in AUD (equivalent of US$25.0 million) was not hedged.
20232022
$000$000
USPP notes-416,557
Foreign exchange movement of USD USPP notes-14,615
Total USPP notes at face value -431,172
Issue costs for the USPP notes capitalised
Opening balance-(2,049)
Capitalised during the year-(300)
Amortised during the year-179
-(2,170)
Total USPP notes at amortised cost-429,002
Revaluation of debt in fair-value hedge relationship-(43,371)
Total USPP notes-385,631
e. Early repayment of USPP notes
In February 2023 the Group elected to prepay all outstanding USPP notes. The prepayments were funded
by an equity raise (note 12).
• The principal amount for Tranche 1 of US$300.0 million and accrued interest of US$0.8 million were
paid in full on 10 March 2023 using NZ$428.1 million and NZ$1.3 million respectively.
• The principal amount for Tranche 2 of US$200.0 million and accrued interest of US$4.3 million were
paid in full on 23 March 2023 using NZ$290.1 million and NZ$6.9 million respectively.
As a result of the early repayment of the USPP notes, the Group was required to pay a net make-whole
payment of US$19.0 million (NZ$30.7 million) to compensate the noteholders for the effects of reduced
interest rates available to them on the reinvestment of the proceeds. Included within the net make-whole
payment is a swap breakage gain amount of US$0.4 million (NZ$0.6 million) from one of the noteholders
under the terms of the USPP note agreement.
109
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
17. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
The difference between the consideration paid for the USPP prepayment (NZ$748.9 million) and the carrying
amount of the USPP notes (NZ$686.8 million) is recognised as a loss within finance costs in the profit or loss.
This loss is attributable to the make-whole payment and the release of unamortised issue costs and fair value
hedge adjustments previously included within the carrying amount of the USPP notes. This loss is partially
offset by a currency gain on the USPP principal repayment due to favourable exchange rates under the CCIRS
that was used to hedge the USPP notes.
The Group simultaneously closed out the CCIRS that used to hedge the USPP notes (refer note 18).
Hedge accounting for the USPP notes discontinued in February 2023 (refer note 18). The foreign currency
movement on the USPP notes between the date of hedge discontinuation and the date of repayment of
$24.405 million is recognised in the profit or loss (refer note 5).
2023
$000
USPP notes706,704
Foreign exchange movement of USD USPP notes98,682
Total USPP notes at face value 805,386
Issue costs for the USPP notes capitalised
Opening balance(2,170)
Capitalised during the year(1,284)
Amortised during the year249
(3,205)
Total USPP notes at amortised cost802,181
Revaluation of debt in fair-value hedge relationship(115,394)
Total USPP notes immediately prior to repayment686,787
Prepayment of USPP notes principal718,200
Make-whole payments (net)30,724
Loss on USPP prepayment(62,137)
Total USPP notes at 31 March-
f. Security
The bank loans, institutional term loan and retail bonds are secured by a general security agreement over
the parent and subsidiary companies and supported by first mortgages over the freehold land and buildings
(excluding retirement-village unit titles provided as security to residents – note 10).
The subsidiary companies listed in note 1 have all provided guarantees for the Group’s secured loans as
parties to the general security agreement.
Contractual cash outflows are disclosed in note 21.
RYMAN HEALTHCARE ANNUAL REPORT 2023
110
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
17. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
g. Covenants
The Group is subject to capital requirements imposed by its bank and the lenders included in the banking
syndicate through covenants agreed as part of the lending facility arrangements, and bond holders through
covenants in the Master Trust Deed.
During the year, the Group sought an amendment to the Interest Coverage Ratio covenant included in its
lending facility agreements given the rapid increases in interest rates. In February 2023, the Group’s banking
syndicate and institutional term loan lenders agreed to amend the Interest Coverage Ratio to 1.75 until
31 March 2025, increasing to 2.00 at 30 September 2025 and 2.25 at 31 March 2026. The retail bonds
are not subject to the Interest Coverage Ratio covenant.
The Group has met all externally imposed capital requirements for the 12 months ended 31 March 2023
and 31 March 2022.
18. DERIVATIVE FINANCIAL INSTRUMENTS
Accounting policy: Derivative financial instruments
Derivatives are initially recognised at fair value on the date a contract is entered into and remeasured to their
fair value at each reporting date.
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.
When the derivatives meet the requirements of cash flow hedge accounting, changes in the fair value of the
derivatives are recognised in other comprehensive income and accumulated as a separate component of equity.
Amounts deferred in equity are recycled to profit or loss in the periods when the hedged item is recognised in
profit or loss.
When the derivatives meet the requirements of fair value hedge accounting, changes in the fair value of the
derivatives 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 NZD of CCIRS are separately accounted
for as a cost of hedging and recognised within the cost of hedging reserve.
Hedge accounting is discontinued when the hedge instrument expires or is sold, terminated, exercised or no
longer qualifies for hedge accounting.
When hedge accounting for cash flow hedges is discontinued, the amount accumulated in the hedging reserve
remains in equity until it is reclassified to profit or loss in the same periods as the hedged expected future
cash flows affect profit or loss. If the hedged future cash flows are no longer expected to occur, the amounts
accumulated in the hedging reserve are immediately reclassified to profit or loss.
111
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
18. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
At 31 March 2023 the Group’s derivative financial instruments consist of interest rate swaps, caps, floors
and collars (2022: interest rate swaps, caps, floors, collars and CCIRS).
a. Fair value
These derivatives are initially recognised at fair value on the dates that derivative contracts are entered
into and remeasured to their fair values at each reporting date. The fair values of these derivatives are
categorised as Level 2 under the fair value hierarchy in NZ IFRS 13 – Fair Value Measurement. The fair values
of these derivative instruments are derived using inputs supplied by third parties that are observable, either
directly (prices) or indirectly (derived from prices). The fair value of interest rate swaps is determined by
discounting the future cash flows using the yield curves at the end of the reporting period and the credit risk
inherent in the contract.
b. Cash flow and fair value hedges
The Group uses derivative financial instruments to manage cash flow, interest rate and foreign currency
risks. The Group designates most of its derivatives as hedging instruments.
Each hedge relationship is formalised in hedge documentation at inception. The Group uses Bancorp
Treasury Services Limited (BTSL) as an independent valuer to determine the existence of an economic
relationship between the hedging instrument and the hedged item based on the currency, amount and timing
of respective cash flows, interest rates, tenors, repricing dates, maturities and notional amounts. BTSL then
assesses whether the derivative designated in each hedging relationship is expected to be, and has been,
effective in offsetting the changes in cash flows of the hedged item.
The details of the Group’s hedging instruments are as follows. All hedging instruments are recorded under
derivative financial instruments in the statement of financial position.
RYMAN HEALTHCARE ANNUAL REPORT 2023
112
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
18. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
CurrencyInterest ratesMaturity
Notional amount of
hedging instrument
Carrying
amount of
the hedging
instrument:
asset/(liability)
Change in
value used for
calculating
hedge
effectiveness
(years) NZ$000 NZ$000
2023
Cash flow hedges
Interest rate derivatives
NZD2.309%–4.112%1–5NZ$610 million19,70313,823
Interest rate swaps
AUD1.463%2AU$60 million1,953412
Fair value hedge
Interest rate swaps
AUDFloating5AU$54 million(5,988)(557)
15,66813,678
CurrencyInterest ratesMaturity
Notional amount of
hedging instrument
Carrying
amount of
the hedging
instrument:
asset/(liability)
Change in
value used for
calculating
hedge
effectiveness
(Restated)
(years) NZ$000 NZ$000
2022
Cash flow hedges
Interest rate swaps
NZD2.066%–2.825%3–6NZ$402 million14,73032,068
Interest rate swaps
AUD1.463%–1.785%2–5AU$130 million4,8444,844
Fair value hedge
Interest rate swaps
AUDFloating6AU$54 million(5,431)(5,431)
Fair value and
cash flow hedges
CCIRS
USD:NZDFloating9–14US$275 million(21,860)(10,588)
(7,717)20,893
c. Interest rate derivatives as cash flow hedges
The Group has entered into various interest rate derivatives to provide an effective cash flow hedge against
floating interest rate variability on a defined portion of core debt.
These interest rate derivatives qualify for cash flow hedge accounting. Interest rate derivatives are initially
recognised at fair value on the dates that contracts are entered into and remeasured to their fair value at
each reporting date. The effective portion of the change in the fair value of the derivatives is recognised in
other comprehensive income and accumulated as a separate component of equity. The ineffective portion
is recognised in the income statement. The balance of the interest rate derivatives reserve is expected to
be released to the income statement over the maturity profile of the underlying debt.
The hedge ratio is 1:1. The face value of the interest rate derivatives is the same value as the face value of the
bank loans. As the critical terms of the interest rate derivative contracts and the hedged item are the same,
significant hedge ineffectiveness is not expected.
113
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
18. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
At 31 March 2023 the Group had several interest rate derivatives in place that were designated as cash flow
hedges. These derivatives have a total notional principal amount of approximately NZ$674 million, which
is made up of NZ$610 million and AU$60 million (2022: NZ$542 million). These derivatives cover terms
of up to 5 years (2022: 7 years) and are effective for various periods. Some of these derivatives will become
effective at a future date.
20232022
$000$000
Current594,144321,640
Forward starting80,000220,222
6 74 ,1 4 4541,862
These interest rate derivatives effectively change the Group’s interest rate exposure on the principal covered
from a floating rate to an average fixed rate ranging from 2.443 percent to 3.198 percent (2022: 2.094 percent
to 2.335 percent). The notional principal amounts covered by these derivatives and the average contracted
fixed interest rates for their remaining maturities are shown below.
Average contracted fixed interest rateNotional principal amount covered
2023202220232022
%%$000$000
Within 1 year3.198%2.228%614,144461,862
1–2 years3.134%2.231%574 ,1 4 4481,862
2–3 years2.965%2.231%310,000481,862
3–4 years2.931%2.335%130,000450,504
4–5 years2.443%2.094%60,000275,504
5–6 years-2.200%-180,000
d. Interest rate swap as a fair value hedge
In 2022, the Group entered into an interest rate swap to mitigate its exposure to fair value changes arising from
the fixed-rate portion of the institutional term loan. The swap, which has a total notional principal amount of
AU$53.85 million and a term of 7 years, effectively changes the Group’s interest rate exposure on the principal
covered from a fixed to a floating rate. The Group has designated AU$53.85 million of its institutional term loan
in a fair value hedge relationship.
Under a fair value hedge, the change in the fair value of the hedged risk is attributed to the carrying value of
the underlying institutional term loan. This debt revaluation is recognised in the income statement to offset
the mark-to-market revaluation of the hedging derivative.
RYMAN HEALTHCARE ANNUAL REPORT 2023
114
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
18. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
e. CCIRS as fair value and cash flow hedges
The Group managed its interest rate risk on USPP notes using CCIRS until the USPP notes were prepaid.
The CCIRS transformed a series of known fixed interest rate USD cash flows to floating rate NZD cash flows,
mitigating exposure to fair value changes in the USPP notes. The USPP amount received in AUD (equivalent
of US$25 million) was not hedged.
The CCIRS were aggregated and designated as both fair value hedges and cash flow hedges. The
cross-currency basis spread of the CCIRS were excluded from the designation and separately recognised
in other comprehensive income in the cost of hedging reserve (note 13).
The details of the CCIRS are as follows:
AmountCurrencyMaturityNote coupon
2023
Fair value
Asset/
(Liability)
2022
Fair value
Asset/
(Liability)
US$000%$000$000
Swap participants
Bank of New Zealand55,000USD:NZD18/02/20314.06%- (3,564)
MUFG45,000USD:NZD18/02/20314.06%- (4,07 7)
Bank of New Zealand60,000USD:NZD16/02/20334.16%- (4,4 47)
ANZ Bank New Zealand Limited40,000USD:NZD16/02/20334.16%- (3,309)
ANZ Bank New Zealand Limited75,000USD:NZD16/02/20364.26%- (6,463)
275,000 - (21,860)
In April 2022 the Group entered into additional CCIRS with notional principal amounts totalling
US$200.0 million to hedge the foreign currency risk and interest rate risk in relation to the additional
USPP notes issued at the same time.
In February 2023 hedge accounting was discontinued, as the underlying hedged cash flows were no longer
expected to occur following the decision to prepay the USPP notes. A total amount of $9.9 million (excluding
tax effects) was reclassified from the cash flow hedge reserve and cost of hedging reserve to the profit or
loss. Of this amount, $6.4 million relates to the cash flow hedge reserve and $3.5 million relates to the cost of
hedging reserve. The carrying amount of the USPP notes continued to reflect the fair value hedge adjustment
at the date of discontinuation. The fair value hedge adjustment was subsequently recognised in profit or loss
upon the derecognition of the USPP notes.
The Group closed out the CCIRS in March 2023. The Group paid NZ$106.6 million (including execution
costs of NZ$1.4 million) to close out the CCIRS. The difference between the consideration paid to close out
the CCIRS ($106.6 million) and the carrying value of the CCIRS ($31.1 million liability) is recognised as a loss
of $75.5 million in the profit or loss (refer note 5).
115
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
18. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
f. Modified interest rate swaps
In November 2022 the Group modified four interest rate swaps that had been designated in a cash flow
hedge relationship to maximise its interest rate risk coverage and minimise its near-term interest costs.
The modification resulted in a higher notional principal amount covered and a reduction in the remaining
maturities of those swaps.
Currency
Original notional
principal
Original fixed
interest rates
Original
maturity
Amended
notional
principal
Amended
fixed interest
rates
Amended
maturity
Interest rate swapsNZDNZ$120 million
2.066%–
2.080%Aug 2028NZ$420 million
2.098%
–2.188%Feb 2024
Interest rate swapsAUDAU$70 million1.785%Oct 2028AU$280 million2.110%Jan 2024
The modification resulted in the original hedge relationship being discontinued. Immediately prior to
discontinuation, there were gains of NZ$16.6 million and AU$5.8 million (excluding tax effects) in the cash
flow hedge reserve for these swaps. As the hedged cash flows are still expected to occur, these gains
remain in the cash flow hedge reserve and will be reclassified to profit or loss over the original hedge period.
The amounts reclassified to profit or loss during the year are NZ$1.2 million and AU$0.6 million (totalling
NZ$1.9 million). At balance date the unamortised balance in the cash flow hedge reserve for the amended
swaps is NZ$15.4 million and AU$5.2 million (excluding tax effects).
As the modified interest rate swaps do not qualify for hedge accounting, the fair value movements of these
swaps following modification of NZ$8.0 million loss is recognised directly in profit or loss (refer note 5).
19. OCCUPANCY ADVANCES (NON-INTEREST BEARING)
Accounting policy: Occupancy advances
An occupation agreement confers on a resident a right to occupy a 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 statement of financial position, net of management fees and resident loans receivable.
The resident-occupancy advance is initially recognised at fair value and later at amortised cost.
As a resident may terminate their occupancy with limited notice, and the occupancy advance is non-interest
bearing, the occupancy advance has demand features 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.
RYMAN HEALTHCARE ANNUAL REPORT 2023
116
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
19. OCCUPANCY ADVANCES (NON-INTEREST BEARING) (CONTINUED)
20232022
$000$000
Gross occupancy advances (see below)5,498,0204,864,713
Less management fees and resident loans(671,838)(578,254)
Closing balance4,826,1824,286,459
Movement in gross occupancy advances
20232022
$000$000
Opening balance4,864,7134,205,105
Plus net increases in occupancy advances:
• new retirement-village units418,322455,855
• existing retirement-village units. 234,901168,072
Net foreign-currency exchange differences(6,540)(4,640)
(Decrease)/Increase in occupancy advance balances(13,376)40,321
Closing balance5,498,0204,864,713
Gross occupancy advances are non-interest bearing and occupancy advances are not discounted. The fair value
of net occupancy advances is $2,931 million (2022: $2,667 million) using the relevant discount rate for each village.
The change in occupancy advance balances shows the net movement in occupancy advance that has
resulted from:
• units that have been re-sold but the previous residents have yet to be repaid
• units that have been repaid but the units remain unsold at balance date.
20. LEASE LIABILITIES
Accounting policy: Leases
Group as a lessee
Apart from short-term or low-value assets, leases are included in the statement of financial position 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 a 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 impacts 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.
117
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
20. LEASE LIABILITIES (CONTINUED)
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 assets.
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.
The lease payments for short-term leases and leases of low-value assets are recognised in the profit and loss
over the lease terms.
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. Lease income on occupation right agreements
is generated in the form of deferred management fees and is accounted for in line with note 2.
The lease term is determined to be the greater of the expected period of tenure or the contractual right to
management fees. The Group uses the portfolio approach to account for leases of units to village residents
and allocates individual leases to different portfolios depending on the type of unit.
Group as a lessee
The Group leases office buildings, sales offices, office equipment (such as photocopiers) and plant and
equipment used in the construction of retirement-village units and aged-care beds.
The right-of-use assets relating to these leases are included within property, plant and equipment (note 9).
Amounts recognised in profit and loss
20232022
$000$000
Depreciation of right-of-use assets (note 9)3,3722,662
Interest expense on lease liabilities (note 5)187202
Expenses relating to short-term or low-value leases1,826925
RYMAN HEALTHCARE ANNUAL REPORT 2023
118
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
20. LEASE LIABILITIES (CONTINUED)
Maturity profile for lease liabilities
The maturity profile for lease liabilities and how the Group manages liquidity risk is included in note 21 –
financial instruments.
The Group has lease contracts that include extension options. These options, which have been included to
provide operational flexibility, are exercisable only by the Group and not the lessors. The Group assesses at
lease commencement date whether it is reasonably certain to exercise the extension options. The Group
estimates that the potential future lease payments, should it exercise all the extension options, would result
in an increase in lease liability of $12.4 million (2022: $12.0 million).
At 31 March 2023 the Group is committed to $6.6 million for short-term leases (including short-term construction
equipment leases) (2022: $8.0 million).
The Group does not have any sub-leases.
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES
The financial instruments consist of cash and cash equivalents, trade and other receivables, trade and other
payables, occupancy advances, refundable accommodation deposits, employee advances, loans, overdrafts,
interest rate derivatives (swaps, caps, floors and collars) and lease liabilities.
Categories of financial instruments
20232022
$000$000
Financial assets
Cash and cash equivalents (note 7)27, 87 928,309
Financial assets at amortised cost (loans and receivables)733,338686,878
Derivative instruments in designated hedge accounting
relationships (interest rate derivatives)
21,6561 9,574
Derivative instruments not in designated hedge
accounting relationships (interest rate derivatives)
14,818-
7 9 7,6 9 17 3 4 ,76 1
Financial liabilities
Amortised cost7,663,2307,3 27, 2 3 3
Derivative instruments in designated hedge accounting
relationships (interest rate derivatives)5,9885,431
Derivative instruments in designated hedge accounting
relationships (CCIRS)-21,860
Lease liabilities13,78713,494
7,683,0057,368,018
119
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES (CONTINUED)
a. Credit risk management
Credit risk is the risk of a failure of a debtor or counterparty to honour its contractual obligations, resulting
in financial loss for the Group.
Financial assets, which potentially subject the Group to credit risk, consist principally of cash and cash
equivalents, trade and other receivables, advances to employees, and derivative financial instruments.
The maximum credit risk at 31 March 2023 is the fair value of these assets.
Credit risk relating to cash and cash equivalents and derivative financial instruments is managed by restricting
the amount of cash and marketable securities that can be placed with any one institution. The Group
minimises its credit risk by spreading such exposures across a range of institutions with reference to the
credit ratings of those institutions. The Group’s cash equivalents are placed with high-credit-quality financial
institutions. The Group does not require collateral from its debtors.
The Directors consider the Group’s exposure to any concentrations of credit risk from trade and other
receivables and advances to employees to be minimal given that (typically):
• the occupation of a retirement-village unit does not take place until an occupation advance
has been received
• care and village fees are payable 4-weekly in advance when due from residents
• care and village fees not due from residents are paid by government agencies
• advances to employees are subject to the terms of the employee share schemes (note 25).
The total credit risk to the Group of trade and other receivables and advances to employees at 31 March 2023
was $733.3 million (2022: $686.9 million) and there were no material overdue debtors at 31 March 2023
(2022: $Nil). The composition of financial assets is shown in the table below.
20232022
$000$000
Trade and other receivables (note 8)719,121671,463
Advances to employees (note 25)14,21715,415
733,338686,878
b. Interest rate risk
Interest rate risk is the risk that fluctuations in interest rates affect the Group’s financial performance
or future cash flows or the fair value of its financial instruments.
The Group’s interest rate risk arises from loans and borrowings. Loans and borrowings issued at variable
interest rates expose the Group to changes in interest rates. Loans and borrowings issued at fixed rates
expose the Group to changes in the fair value of the borrowings.
The Group’s policy is to manage its interest rate exposure using a mix of fixed and variable-rate debt and
interest rate derivatives that are accounted for as cash flow hedges or fair value hedges (note 18).
The interest rate applicable to the bank overdraft is variable. The interest rates applicable to the bank loans
are reviewed at each 3-monthly rollover. The Group always seeks to obtain the most competitive interest rate.
RYMAN HEALTHCARE ANNUAL REPORT 2023
120
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES (CONTINUED)
Interest rate sensitivity
The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date.
The net exposure at balance date is representative of what the Group was and is expecting to be exposed to
in the 12 months from balance date. At balance date, had the floating interest rates increased or decreased by
50 basis points, with all other variables held constant, profit and equity would have been affected as follows:
20232022
$000$000
Increase in interest rates of 50 basis points
Effect on profit after taxation – increase/(decrease)993(2,503)
Effect on equity after taxation – increase/(decrease)5,052(9,337)
Decrease in interest rates of 50 basis points
Effect on profit after taxation – increase/(decrease)(1,002)2 ,449
Effect on equity after taxation – increase/(decrease)(5,109)9,861
c. Foreign currency risk
Foreign currency risk is the risk that the value of the Group’s assets, liabilities and financial performance
will fluctuate due to changes in foreign currency rates.
The Group is exposed to currency risk in AUD primarily as a result of its subsidiaries in Australia. The
risk to the Group is that the value of the overseas Australian subsidiaries’ financial position and financial
performance will fluctuate in economic terms and, as recorded in the consolidated accounts, due to
changes in the overseas exchange rates.
The Group hedges the currency risk relating to its Australian subsidiaries by holding a portion of its
borrowings (bank debt and the institutional term loan) in AUD. Any foreign currency movement in the
net assets of the Australian subsidiaries is partially offset by an opposite movement in the AUD debt.
Prior to the prepayment of the USPP notes, the Group was exposed to fluctuations in the USD from USPP
borrowings. This exposure was fully hedged by way of CCIRS hedging both principal and interest. The CCIRS
corresponded in amount and maturity to the relevant USD borrowings with no residual foreign currency
risk exposure. The CCIRS consisted of a fair value hedge component and a cash flow hedge component.
The movements of the fair value hedge component were taken to the income statements along with all
movements of the hedged risk on the USPP notes (USD only). The effective movements of the cash flow
hedge components were all taken to the cash flow hedge reserve. Costs arose on the prepayment of the
CCIRS as they did not run to maturity.
121
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES (CONTINUED)
Foreign exchange sensitivity
The following sensitivity analysis is based on the foreign currency risk exposures in existence at the reporting
date. The net exposure at balance date is representative of what the Group was and is expecting to be
exposed to in the 12 months from balance date. At balance date, had the NZD moved either up or down
by 10 percent, with all other variables held constant, profit and equity would have been affected as follows.
20232022
$000
$000
Increase in value of NZ dollar of 10%
Impact on profit after taxation – increase/(decrease)(11,860)(9,384)
Impact on equity after taxation – increase/(decrease)(50,495)(39,952)
Decrease in value of NZ dollar of 10%
Impact on profit after taxation – increase/(decrease)14,49611,470
Impact on equity after taxation – increase/(decrease)61,71648,830
d. Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due
without incurring unacceptable losses or risking reputational damage.
The Group manages liquidity to ensure that it has sufficient liquidity to meet its liabilities when due. This
includes under both normal and stressed conditions. The ultimate responsibility for liquidity risk management
rests with the Directors, who have built an appropriate liquidity risk management framework for the
management of the Group’s short, medium, and long-term funding and liquidity-management requirements.
Occupancy advances and refundable accommodation deposits
The Group manages the liquidity risk on occupancy advances through the contractual requirements
in the occupation agreement.
Following a termination of the agreement in New Zealand the occupancy advance is repaid at the earlier
of the receipt of the new occupancy advance from the incoming resident or at the end of 3 years.
Following a termination of the agreement in Australia the occupancy advance is repaid at the earlier
of 14 days after a new resident takes up residence, the receipt of the new occupancy advance from the
incoming resident or at the end of 6 months.
The repayment obligation for refundable accommodation deposits in New Zealand is within 30 working
days of a resident vacating their care room. The repayment obligation for refundable accommodation
deposits in Australia is within 14 days of a resident vacating their care room.
RYMAN HEALTHCARE ANNUAL REPORT 2023
122
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES (CONTINUED)
Lines of credit and undrawn facilities
The Group manages liquidity risk by maintaining adequate reserves, banking facilities, and reserve borrowing
facilities, and by regularly monitoring forecast and actual cash flows and the maturity profiles of financial
assets and liabilities. The Group maintains the following lines of credit.
Notes20232022
$000$000
Secured overdraft facility7NZ$2,800NZ$2,800
Syndicated NZD bank loan facilities17(a)NZ$1,788,443NZ$1,946,040
Syndicated AUD bank loan facilities17(a)AU$639,500AU$529,500
Institutional term loan17(b)AU$250,000AU$250,000
Retail bonds17(c)NZ$150,000NZ$150,000
USPP notes17(d)-US$300,000
At balance date the Group had NZ$510.9 million (2022: NZ$592.1 million) and AU$36.0 million
(2022: AU$136.5 million) of undrawn facilities at its disposal to further reduce liquidity risk.
Lease liabilities
The Group does not face a significant liquidity risk with regard to lease liabilities (note 20).
123
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES (CONTINUED)
Maturity profile
The following table details the Group’s exposure to liquidity risk (including contractual interest obligations
for interest-bearing loans and borrowings).
Contractual maturity dates
20232022
On
demand
Less
than
1 year1–5 years
Greater
than
5 yearsTotal
On
demand
Less
than
1 year1–5 years
Greater
than
5 yearsTotal
$000$000$000$000$000$000$000$000$000$000
Financial
liabilities
Trade and other
payables
-205,784--205,784-264,254--264,254
Interest rate
swaps
-1,3725,2133836,968-(125)4,8281,4776,180
CCIRS------5,82239,078(33,226)1 1 ,6 74
Refundable
accommodation
deposits (non-
interest bearing)
300,314---300,314199,783---199,783
Bank loans
(secured)
-103,9852,130,439-2 ,234,424--1,072,855712,9561,785,811
Institutional term
loan (secured)
-12,78456,530270,655339,969-6,78928,436278,514313,739
Retail bond
(secured)
-3,687160,519-164,206-3,687164,344-168,031
USPP notes------15,63553,345538,005606,985
Occupancy
advances (non-
interest bearing)
1
-526,3914,299,791-4,826,182
-526,8453,759,614-4,286,459
Lease liabilities-5,1987, 2 572 ,78815,243-7,6036,817-14,420
300,314859,2016,659,749273,8268,093,090199,783830,5105,129,3171 , 4 9 7,7 2 67,657,336
1 As detailed in note 19, occupancy advances have demand features and therefore have contractual maturity dates that
could occur in less than one year. However, the above figures have been calculated on the anticipated level of occupancy
advance repayments based on historical experience, which management believes better reflects the commercial reality
of the transaction. To date, new occupancy advances received have always exceeded repaid occupancy advances
(net of management fees) and represent a positive net operating cash flow to the Group.
RYMAN HEALTHCARE ANNUAL REPORT 2023
124
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES (CONTINUED)
Changes in liabilities arising from financing activities
Opening
balance
Financing
cash flow
Foreign
exchange
movement
Net
changes in
fair valuesOther
Closing
balance
$000 $000 $000 $000 $000 $000
2023
Derivatives (net)
7,7 1 7(106,594)-66,9781,413(30,486)
Interest-bearing loans
and borrowings
2 ,576,737(312,201)(9,937)42,81133,540
1
2,330,950
Lease liabilities
13,494(3,196)(29)-3,51813,787
Liabilities arising from
financing activities
2,597,948(421,991)(9,966)109,78938,4712,314,251
Opening
balance
Financing
cash flow
Foreign
exchange
movement
Net
changes in
fair valuesOther
Closing
balance
$000 $000 $000 $000 $000 $000
2022
Derivatives (net)
28,611--(20,894)-7,7 1 7
Interest-bearing loans
and borrowings
2,274,093326,917(2,222)(21,588)(463)2 ,576,737
Lease liabilities
13,885(2,662)--2,27113,494
Liabilities arising from
financing activities
2,316,589324,255(2,222)(42,482)1,8082,597,948
1 This figure includes make-whole payments (net) of $30.7 million for the USPP prepayment.
e. Fair values
Apart from the financial instruments noted below, the carrying amounts of financial instruments in the
Group’s statement of financial position are the same as their fair value in all material aspects, due to the
demand features of these instruments and/or their interest rate profiles. The face (or nominal) value less
estimated credit adjustments of trade receivables and payables is assumed to approximate their fair values.
2023
Carrying amount
2023
Fair value
2022
Carrying amount
2022
Fair value
$000$000$000$000
Institutional term loan
260,290264,735
263,092272,035
Retail bond
147,891131,445
147,3951 3 7,7 75
USPP notes
--
385,631442,017
125
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES (CONTINUED)
e. Fair values (continued)
The fair value of the fixed-rate portion of the institutional term loan has been determined at balance date
on a discounted cash flow basis and by applying discount factors to the future AUD interest payment and
principal payment cash flows. The fair value of the floating rate portion is assumed to be the same as its
carrying amount. The fair value of the institutional term loan is categorised as Level 2 under the fair value
hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.
The fair value of the retail bond is based on the price traded on the NZX market at 31 March 2023. The fair
value of the retail bond is categorised as Level 1 under the fair value hierarchy in accordance with
NZ IFRS 13 – Fair Value Measurement.
The fair value of the USPP notes as at 31 March 2022 was determined on a discounted cash flow basis
and by applying discount factors to the future USD interest payment and principal payment cash flows.
The fair value of the USPP is categorised as Level 2 under the fair value hierarchy in accordance with
NZ IFRS 13 – Fair Value Measurement.
The fair value of interest rate derivatives are derived using inputs supplied by third parties that are observable,
either directly (prices) or indirectly (derived from prices). The fair value of these derivatives is categorised as
Level 2 under the fair value hierarchy contained within NZ IFRS 13 – Fair Value Measurement (note 18).
f. Market risk
The Group is primarily exposed to interest rate risk (note 21(b) and foreign currency risk (note 21(c).
g. Capital management
The Group’s capital includes share capital, reserves and retained earnings. The objective of the Group’s
capital management is to ensure a strong credit rating to support business growth and maximise
shareholder value.
The Group’s capital is managed at the parent company level. The Group is subject to capital requirements
imposed by its banks and lenders (refer note 17).
The Group’s capital structure is managed, and adjustments are made with board approval to the structure,
considering economic conditions at the time. During the year, key capital-management initiatives included
the dividend reinvestment plan and an equity raise (refer note 12).
RYMAN HEALTHCARE ANNUAL REPORT 2023
126
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
22. SEGMENT INFORMATION
Products and services from which reportable segments derive their revenue
The Ryman Group operates in one industry, being the provision of integrated retirement villages for older people
in New Zealand and Australia. The service-provision process for all villages is similar, and the classes of customer
and methods of distribution and regulatory environments are consistent across all the villages.
Segment revenue and results
The accounting policies of the reportable segment are the same as the Group’s accounting policies. The segment
profit represents profit earned for the segment after all costs, including all administration costs, Directors’ fees,
interest revenue, finance costs and income-tax expenses.
The board makes resource allocation decisions for the segment based on the expected cash flows and results of
Group operations as a whole. No operations were discontinued during the year. To monitor segment performance
and allocate resources to the segment, the board monitors assets attributable to the segment. All assets are
allocated to the reportable segment.
Information about major customers
Included in total revenue is revenue that arose from sales to the Group’s largest customers.
The Group derives care-fee revenue for eligible government-subsidised, aged-care residents who receive
resthome, hospital, or dementia-level care. The government aged-care subsidies received from the New Zealand
Ministry of Health – Manatū Hauora within care and village fees, amounted to $138.6 million (2022: $133.7 million).
There are no other significant customers.
Geographical information
The Group operates in New Zealand and Australia.
In presenting information based on geographical areas, net profit, underlying profit and revenue are based on
the geographical locations of operations while assets are based on the geographical locations of the assets.
New ZealandAustraliaGroup
$000$000$000
2023
Revenue494,60676,371570,977
Underlying profit (non-GAAP)232,22269,670301,892
Unrealised fair-value movement (note 10)
20,23353,42873,661
Deferred tax credit (note 6)31,26120,37951,640
Impairment loss (note 9)(250)(10,784)(11,034)
Costs relating to USPP prepayment and swaps(156,090)(2,233)(158,323)
Profit for the year1 27,3 76130,460257,836
Non-current assets9,332,7312,370,67911,703,410
127
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
22. SEGMENT INFORMATION (CONTINUED)
New ZealandAustraliaGroup
$000$000$000
2022 (restated)
1
Revenue462 ,7 7246,025508,797
Underlying profit (non-GAAP)203,76351,186254,949
Unrealised fair-value movement (note 10)
436,80430,3294 67,1 3 3
Deferred tax (expense)/credit (note 6)(50,923)2 1,714(29,209)
Profit for the year589,644103,229692,873
Non-current assets8,322,2361,902,34710,224,583
1 The segment revenue figures for 31 March 2022 have been restated due to a misclassification between the Australian
and NZ segments. The reclassification was NZ$27.4 million. The Group revenue figure for that comparative period has
remained unchanged.
Underlying profit is a non-GAAP (Generally Accepted Accounting Principles) measure and differs from NZ IFRS
profit for the year. Underlying profit does not have a standardised meaning prescribed by GAAP and so may not
be comparable to similar financial information presented by other entities. The Group uses underlying profit, with
other measures, to measure performance. Underlying profit is a measure that the Group uses consistently across
reporting periods.
Underlying profit includes realised movement on investment property for units in which a right-to-occupy
has been sold during the period and for which a legally binding contract is in place at the reporting date. The
occupancy advance for these units may have been received or be included within the trade receivables balance
at reporting date (see note 8).
Underlying profit excludes deferred taxation, taxation expense, unrealised movement on investment properties,
impairment losses on non-trading assets and the cost of exiting USPP borrowings and swaps because these items
do not reflect the trading performance of the Company.
23. RELATED-PARTY TRANSACTIONS
Parent company
The parent entity in the Group is Ryman Healthcare Limited.
Equity interests in related parties
Details of the percentage of ordinary shares held in subsidiaries are disclosed in note 1.
Transactions with companies associated with Directors20232022
$000$000
Rental costs1,9191,72 1
Equipment purchases95-
Sub-contractor labour and equipment hire-19
RYMAN HEALTHCARE ANNUAL REPORT 2023
128
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
23. RELATED-PARTY TRANSACTIONS (CONTINUED)
Since August 2012 Ryman Healthcare Limited has leased office accommodation from Airport Business Park
Christchurch Limited (the Airport Business Park). On 1 December 2019 Warren Bell became an Independent
Director or Trustee of the Airport Business Park’s shareholders. He does not have any personal ownership
interest. Under the lease, the office accommodation is recognised as a right-of-use asset and associated lease
liability. Rental costs detailed in the table above are the total cash payments made in the current financial year
in respect of the lease agreement.
Anthony Leighs is a Director/shareholder of Tectonus Limited, which supplied seismic devices to the Group
in October 2022.
Jo Appleyard is a Partner at Chapman Tripp, which provides the Group with legal services.
George Savvides is a Director of Insurance Australia Group Limited (IAG), which provides, through its New Zealand
subsidiary NZI, the Group with insurance coverage.
No Director is involved in the quoting for or provision of services to the Group.
Any transactions undertaken with these entities have been entered into on an arm’s-length basis and in the
ordinary course of business.
24. KEY MANAGEMENT PERSONNEL COMPENSATION
20232022
$000$000
Compensation
Short-term employee benefits (senior executive team)7,1117,470
Directors’ fees1,3191,365
Total key management personnel and Directors’ compensation8,4308,835
Senior executive team
Key management personnel are the senior executive team of the Group and include the Group Chief Executive
Officer and eight senior executive team members at 31 March 2023 (2022: Group Chief Executive Officer and
eight senior executive team members). The composition and number of members of the senior executive team
fluctuated throughout the year.
Short-term employee benefits in the 2022 financial year included payments to the former Group Chief Executive
Officer, who resigned in May 2021. This payment related to both short-term and medium-term incentives and
his willingness to continue in the role while the board conducted a global search for the new Group Chief
Executive Officer.
Employer contributions to post-employment benefits (KiwiSaver/Superannuation) included in short-term
employee benefits (senior executive team) above are $214,018 (2022: $237,259).
In addition, the Company provides certain senior employees with limited recourse loans on an interest-free basis
to support their participation in the leadership share scheme (note 25).
The loan amounts owed by these employees for vested shares are included within ‘Advances to employees’ in the
statement of financial position. This balance includes $267,261 owed by the senior executive team in the share
scheme (2022: $464,130).
129
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
24. KEY MANAGEMENT PERSONNEL COMPENSATION (CONTINUED)
Directors’ fees
In addition, NZ IAS 24 – Related Party Disclosures requires Directors’ fees to be included within key management
personnel compensation. All Directors are non-executive and are not involved in the day-to-day operations of the
Group (2022: all Directors).
The number of Directors reduced from nine to seven during the financial year (2022: nine Directors).
25. EMPLOYEE SHARE SCHEMES
Accounting policy: Treasury stock
Shares purchased on market under the leadership share scheme are treated as treasury stock on acquisition
at cost. On vesting to an 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 if the treasury shares are sold by the Company (for example, when the employee leaves
before the end of the 3-year restrictive period) is taken directly against equity.
Due to the features of the scheme, it is accounted for as share options under NZ IFRS 2 – Share-based Payment.
Under NZ IFRS 2 the Group measures the fair value of the services received by reference to the fair value of the
share options granted.
Leadership share scheme
The Group operates an employee share scheme for certain senior employees, other than non-executive
Directors, to purchase ordinary shares in the Company.
The Group provides the employees with limited recourse loans on an interest-free basis to support their
participation in the scheme. The loans are applied to the purchase of shares on market, so the number of
shares and the consideration for each share are determined by the market price at that time. The scheme holds
2,494,282 fully allocated shares, which represents 0.36 percent of the total shares on issue (2022: 2,741,246
fully allocated shares, which represented 0.55 percent of the total shares on issue). All net dividends received
in respect of the shares must be applied to repayments of the loans. A loan on vested shares is repayable at the
discretion of the employee but is repayable when the employee leaves the Group.
Shares purchased under the scheme are held by two Directors as custodians, and the shares carry the same
rights as all other ordinary shares. Shares subject to this scheme usually vest 3 years from the date of purchase,
although the vesting period for the shares granted in August 2019 has been extended.
The following table reconciles the shares purchased on market under the scheme at the beginning and end of the
financial year. The weighted average exercise price is calculated based on the share price on the purchase date
less any net dividends received since the purchase date.
RYMAN HEALTHCARE ANNUAL REPORT 2023
130
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
25. EMPLOYEE SHARE SCHEMES (CONTINUED)
2023202320222022
Number
of shares
Weighted average
exercise price
Number
of shares
Weighted average
exercise price
Balance at beginning of the financial year2 ,74 1 , 24 613.722,655,01713.12
Purchased on market during the year--1,065,25914.67
Forfeited during the financial year(246,964)13.67(241,716)13.19
Vested during the financial year--(737,314)12.54
Balance at end of the financial year2,494,28213.572,741,24613.72
Represented by:
Shares granted in August 2019736,29112.88804,14313.03
Shares granted in August 2020793,29213.13871,84413.28
Shares granted in August 2021964,69914.451,065,25914.61
Balance at end of the financial year2,494,28213.572,741,24613.72
The Directors estimate the fair value of the share options granted using the Black-Scholes pricing model.
Due to the on-market purchase and sale features of the scheme, and the scheme agreement arrangements,
the Directors consider any such value to be immaterial.
All employee share scheme
In addition, the Group operates a share scheme that is available for all employees.
Participants in this scheme contribute a minimum of $500 (and up to a maximum amount of $10,000) towards the
on-market purchase of Ryman Healthcare Limited shares. To help an employee purchase more shares, the Group
advances an interest-free loan equal to the employee’s contribution to the share purchase (financial assistance).
The loan is repayable at the discretion of the employee but is repayable when the employee leaves the Group.
Shares purchased under the scheme are held in the employee’s name. The financial assistance provided by the
Group is recorded in advances to employees.
26. COMMITMENTS
Capital expenditure commitments
The Group had commitments relating to construction contracts amounting to $385.7 million at 31 March 2023
(2022: $361.5 million).
The Group has an ongoing commitment to maintaining the land and buildings of the integrated retirement villages,
resthomes and hospitals.
131
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2023
27. CONTINGENT LIABILITIES
The Group has identified that current and former employees may have received incorrect payments historically
due to the complexity of the Holidays Act 2003 and the nature of our dynamic workforce. The issues relate to
entitlements under the Holidays Act, and how a range of allowances and entitlements have been interpreted
and calculated. External consultants are working with the Group to quantify the value and employees affected.
A provision of $6.0 million has been included within employee entitlements. There were no contingent liabilities
at 31 March 2022.
28. SUBSEQUENT EVENTS
There have been no events subsequent to 31 March 2023 that materially impact on the results reported.
29.AUTHORISATION
The Directors authorised the issue of these consolidated financial statements on 18 May 2023.
Anthony Leighs
Deputy Chair
Claire Higgins
Interim Chair and
Chair of Audit, Finance and Risk Committee
OpinionWe have audited the consolidated financial statements of Ryman Healthcare Limited (the ‘Company’)
and its subsidiaries (the ‘Group’), which comprise the consolidated statement of financial position
as at 31 March 2023, and the consolidated income statement, statement of comprehensive income,
statement of changes in equity and statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements, on pages 72 to 131, present fairly,
in all material respects, the consolidated financial position of the Group as at 31 March 2023, and
its consolidated financial performance and cash flows for the year then ended in accordance with
New Zealand Equivalents to International Financial Reporting Standards (‘NZ IFRS’) and International
Financial Reporting Standards (‘IFRS’).
Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and
International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards)
(New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the
International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (including International Independence Standards), and we have fulfilled our other ethical
responsibilities in accordance with these requirements except that during the period our systems
identified that a non-audit partner in the same office as the engagement partner inadvertently held an
interest in the entity for part of the period, which was rectified prior to the issuance of this opinion. The
matter does not impact on the financial statements and has not compromised our objectivity as auditor.
Our firm carries out other assurance assignments for the Group relating to Australian aged care
reporting. These services have not impaired our independence as auditor of the Company and Group.
In addition to this, partners and employees of our firm deal with the Company and its subsidiaries
on normal terms within the ordinary course of trading activities of the business of the Company
and its subsidiaries. The firm has no other relationship with, or interest in, the Company or any of
its subsidiaries.
Audit materialityWe consider materiality primarily in terms of the magnitude of misstatement in the financial statements
of the Group that in our judgement would make it probable that the economic decisions of a reasonably
knowledgeable person would be changed or influenced (the ‘quantitative’ materiality). In addition, we
also assess whether other matters that come to our attention during the audit would in our judgement
change or influence the decisions of such a person (the ‘qualitative’ materiality). We use materiality both
in planning the scope of our audit work and in evaluating the results of our work.
We determined materiality for the Group financial statements as a whole to be $24.5m.
Key audit
matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Independent Auditor’s Report
TO THE SHAREHOLDERS OF RYMAN HEALTHCARE LIMITED
RYMAN HEALTHCARE ANNUAL REPORT 2023
132
Valuation of Investment Property
As explained in note 10 in the consolidated financial
statements, investment properties are carried at
fair value on the consolidated statement of financial
position. The fair value of these properties is
determined based on a Directors valuation at
31 March 2023, which is supported by independent
external valuations. The valuations are subject to
a number of complex estimates and assumptions.
The valuation models are discounted cash flow models.
The Directors adjust the value for occupancy advances
received from residents, accrued deferred management
fees, revenue in advance and an allowance for the
value provided to the Group’s independent living and
serviced apartment residents by the care facilities,
which are recorded separately under property, plant
and equipment. The external valuations rely on various
estimates and underlying assumptions, including
discount rates, growth rates and the occupancy periods
of residents. A small percentage difference in certain
input assumptions could result in a material change to
the external valuations.
The Directors have determined that the fair value
of the investment properties at 31 March 2023 was
$9,323m (2022: $8,027m). The revaluation gain
recognised in the consolidated income statement
was $432m (2022: $746m).
We included the valuation of investment properties
as a key audit matter for two reasons:
1. The significance to the financial statements:
The investment properties account for 75% of the
total assets (2022: 73%), making it the most significant
balance on the statement of financial position.
2. The complexity of the valuation models that support
the Directors valuation.
Our procedures focused on:
• The appropriateness of the valuation methodology, including
the appropriateness of assessments made by the Directors in
determining the carrying value of investment property within
the valuation range;
• The reasonableness of underlying assumptions in the
valuation models.
Our procedures included, amongst others:
• Evaluating the Group’s processes for determining the
Directors valuation of the investment properties, including
their consideration of the valuations obtained from the
independent valuers;
• Reading the valuation reports for properties within the
group and reviewing the valuation methodology and the
reasonableness of the significant underlying assumptions;
• Discussing with management the nature of key assumptions,
and assessing the reasonableness of adjustments made by
the Directors;
• Evaluating the appropriateness of the range of values
considered by the directors and the reasonableness of
the fair value adopted within this range;
• Assessing the competence, objectivity, and integrity of the
independent registered valuers. We assessed their professional
qualifications and experience. We also obtained representation
from them about their independence and the scope of their
work and considered restrictions imposed on the valuation
process (if any);
• Meeting with the valuers to understand the valuation process
adopted. The purpose of the meetings was to identify and
challenge the critical judgment areas in the valuation models
and to confirm the valuation approach was in accordance with
NZ IFRS 13 Fair Value Measurement. We critically challenged the
changes made to key assumptions and their reasonableness
relative to the 31 March 2022 valuations;
• Using our in-house valuation specialists to assess the
appropriateness of the valuation methodology;
• Agreeing a sample of sales and resales to contracts, calculating
actual growth rates on resales for the sample to compare to
growth rates applied by the valuers, and calculating the average
tenure of residents based on a sample of contracts to compare
to assumed occupancy periods applied by the valuers;
• Comparing a sample of current unit market values determined
by the valuers to actual prices received at comparable units
within the village;
• Assessing the discount rates for reasonableness by comparing
the rates to those adopted in the previous year and the rates
adopted by comparable entities; and
• Considering the appropriateness of the disclosure in note 10.
Key audit matterHow our audit addressed the key audit matter
133
Valuation of care-facility land and buildings
As explained in note 9 in the consolidated financial
statements, care facility land and buildings are
carried at their fair value at the date of revaluation
less any subsequent accumulated depreciation and
impairment losses.
The fair value was determined by the Directors based
on valuations by independent registered valuers and an
adjustment for an allowance for the value provided by
the care facilities to the Group’s independent living and
serviced apartment residents. The valuation models include
both observable and non-observable inputs. They include
significant assumptions, including the determination of
the earnings that were capitalised, the capitalisation rates
adopted, and the assessment of the market value per care
bed. These inputs require significant judgement.
The net book value of care facility land and buildings
at 31 March 2023 as reflected in note 9 was $1,361m
(2022: $1,058m). The revaluation gain recognised in
other comprehensive income was $157m (2022: $nil).
We included the valuation of care-facility land and
buildings as a key audit matter for two reasons:
1. The materiality of the account balance, and the
revaluation movements.
2. The complexity of the valuation models.
Our procedures focused on:
• The appropriateness of the valuation methodology
• The reasonableness of underlying assumptions
in the valuation models
Our procedures included, amongst others:
• Evaluating the Group’s processes regarding the
independent valuations of the care facility land
and buildings;
• Reviewing the valuation methodology and the
reasonableness of the significant valuation assumptions;
• Discussing with management the nature of key
assumptions, and assessing the reasonableness
of adjustments made by the Directors;
• Assessing the competence, objectivity, and integrity
of the independent registered valuers. We assessed
their professional qualifications and experience. We
also obtained representation from them about their
independence and the scope of their work;
• Meeting with the valuers to understand the valuation
process adopted. The purpose of the meetings was
to identify and challenge the critical judgement areas
in the valuation models and to confirm the valuation
approach was in accordance with NZ IFRS 13 Fair
Value Measurement;
• Using our in-house valuation specialists to assess
the appropriateness of the valuation methodology
and challenge the reasonableness of the underlying
assumptions. Our specialists focused on the
assumptions for earnings capitalisation rates;
• Assessing the reasonableness of the capitalisation rates
and market value per care bed adopted in the valuation;
• Agreeing, on a sample basis, the earnings capitalised
to the underlying accounting records and challenging
the valuers on the adjustments made to actual earnings
in arriving at the earnings used in the valuation;
• Considering the appropriateness of the disclosures
in note 9.
Key audit matterHow our audit addressed the key audit matter
RYMAN HEALTHCARE ANNUAL REPORT 2023
134
Other
information
The directors are responsible on behalf of the Group for the other information. The other information
comprises the information in the Annual Report that accompanies the consolidated financial
statements and the audit report. The Annual Report is expected to be made available to us after
the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information
and we will not express any form of assurance conclusion thereon.
Our responsibility is to read the other information identified above when it becomes available and
consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the other information in the Annual Report, if we conclude that there is a material
misstatement therin, we are required to communicate the matter to the directors and consider further
appropriate actions.
Directors’
responsibilities
for the
consolidated
financial
statements
The directors are responsible on behalf of the Group for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control
as the directors determine is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the Group
for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s
responsibilities
for the audit of
the consolidated
financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with ISAs and ISAs (NZ) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements
is located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
Restriction
on use
This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken
so that we might state to the Company’s shareholders those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company’s shareholders as a body, for our audit
work, for this report, or for the opinions we have formed.
Mike Hoshek,
Partner
for Deloitte Limited
Christchurch, New Zealand
18 May 2023
135
Artist’s impression of our upcoming Mt Eliza Village.
RYMAN HEALTHCARE ANNUAL REPORT 2023
136
Corporate
governance
137
Artist’s impression of our upcoming Northwood Village.
RYMAN HEALTHCARE ANNUAL REPORT 2023
138
Corporate
governance
Directors
Senior executives
Statement of corporate governance
144 Board composition
146
Statement of corporate governance
164
General disclosures of interest
166
Directors’ disclosures
170
Shareholder information
140
142
144
139
Claire Higgins
INTERIM CHAIR
NON-EXECUTIVE DIRECTOR
BCOM, FCPA, FAICD
Anthony Leighs
DEPUTY CHAIR
NON-EXECUTIVE DIRECTOR
NZCB, CFINSTD, NZIOB FELLOW
Directors
Warren Bell, Paula Jeffs, Jo Appleyard, George Savvides, Claire Higgins, Anthony Leighs.
Absent from photo, Geoffrey Cumming.
Claire joined the board in 2014 and was appointed interim Chair
in November 2022. Based in Victoria, Claire brings experience
in a range of sectors in Australia and New Zealand. Claire is Chair
of REI Superannuation and GMHBA and is a director in the medical
device sector.
Anthony joined the board in 2018. Based in Christchurch, he is also
a director of Leighs Construction, which he founded in 1992 and
built into one of New Zealand’s leading commercial construction
contractors. He is a former Chair of the New Zealand Registered
Master Builders Association.
RYMAN HEALTHCARE ANNUAL REPORT 2023
140
George Savvides AM
NON-EXECUTIVE DIRECTOR
BE (HONS), MBA, FAICD
George joined the board in 2013. Based in Melbourne, he has
extensive experience in Australia’s healthcare industry, including
14 years as Managing Director of Medibank, Australia’s largest health
insurer. George is Chair of SBS (Broadcasting) and I-Med Radiology
Network and a non-executive director of IAG (Insurance Australia
Group). In 2020 George was made a Member of the Order of
Australia for significant service to the community, charitable
groups and business.
Geoffrey Cumming
NON-EXECUTIVE DIRECTOR
BA (HONS), MSC (ECON), LLD
Geoffrey rejoined the board in June 2018, having previously served
as a director from 1999 to 2000. Geoffrey is a Melbourne-based
New Zealand citizen who is an economist, investor and philanthropist.
He has more than 30 years’ experience as a chief executive and
company director and has served on more than 25 boards. In 2019
Geoffrey was inducted into the Alberta Business Hall of Fame.
Paula Jeffs
NON-EXECUTIVE DIRECTOR
BA, GRAD DIP (IR), GAICD, CAHRI
Paula joined the board in 2019. She is a Melbourne-based executive,
currently holding the position of EGM People and Transformation
at Melbourne Water. She brings with her more than 25 years’
experience leading culture, capability and safety in organisations
across the healthcare and finance sectors. Early in her working life,
Paula spent several years as a carer in the aged and disability sector.
Warren Bell
NON-EXECUTIVE DIRECTOR
MCOM, FCA
Warren joined the board in 2011. He is an experienced public and
private company director and was previously an audit partner.
Warren is currently Chair of Hallenstein Glasson Holdings and has
a long history in the New Zealand retail sector. He is also Chair of
Christchurch-based St George’s Hospital and a director of several
private companies.
Jo Appleyard
NON-EXECUTIVE DIRECTOR
LLB (HONS)
Jo joined the board in 2009. She is a skilled advocate and
litigator specialising in commercial, employment and resource
management law. Jo is a partner at Chapman Tripp and was
a member of the NZ Markets Disciplinary Tribunal between
2011 and 2020.
We are delighted to announce the appointments of Dean Hamilton and James Miller as directors,
with effect from 1 June 2023, as they bring new capability to the company.
Three directors announced that they will retire during FY24. George Savvides retired on 1 June 2023,
while Warren Bell and Jo Appleyard will retire at the annual meeting. Geoffrey Cumming also announced
that he will not seek reappointment when his current term expires in 2024.
Our thanks to all for their dedication to the board over many years.
141
Senior executives
Chris Evans, Mary-Anne Stone, Cameron Holland, Cheyne Chalmers, Richard Umbers, Deborah Marris,
David Bennett, Di Walsh, Rick Davies.
Richard Umbers
GROUP CHIEF
EXECUTIVE OFFICER
BSC (HONS), MSC (FINANCE),
GAICD, MINSTRE
Richard joined Ryman in 2021. He is an internationally experienced
CEO with a background in leading large businesses. Richard was
previously Divisional Director of Buying at Kaufland in Germany and
CEO and Managing Director of Myer Australia. He also held senior
roles at Woolworths in Australia and was Managing Director of
Progressive Enterprises in New Zealand.
David Bennett
GROUP CHIEF
FINANCIAL OFFICER
BCOM (HONS), CA
Dave joined Ryman in 2013 and was promoted to Group Chief
Financial Officer in 2017. He is a board member of the Retirement
Villages Association of New Zealand and the New Zealand
Aged Care Association. Before joining Ryman he worked as
an accountant and auditor. Dave has recently been appointed
Chief Strategy Officer and will continue in his current position
until a successor has been appointed.
RYMAN HEALTHCARE ANNUAL REPORT 2023
142
Deborah Marris
GROUP GENERAL COUNSEL
AND COMPANY SECRETARY
BCA, LLB (HONS),
CMINSTD, GAICD
Deborah joined Ryman in 2022. She began her career as a lawyer
in New Zealand and has held senior executive roles with global
organisations in New Zealand, the United Kingdom, Hong Kong,
India and Australia. Deborah joined Ryman from Synlait Milk
Limited, where she was Director of Legal, Risk and Governance.
Di Walsh
CHIEF PEOPLE AND
SAFETY OFFICER
N Z C S
Di joined Ryman in 2023. She began her career in biochemistry and
held diverse operational roles before building an extensive career
in senior people and culture roles across Australia and New Zealand.
Prior to Ryman she worked in senior roles at Lion Breweries and most
recently was Group Executive Manager – People at Fulton Hogan.
Rick Davies
CHIEF TECHNOLOGY AND
INNOVATION OFFICER
B S C
Rick joined Ryman in 2019. He is an experienced leader, with a
career in both technology and commercial leadership roles, having
worked extensively within the ecommerce sector. Rick has had
a range of senior roles, including leader of Trade Me’s iconic retail
marketplace division.
Mary-Anne Stone
CHIEF EXPERIENCE AND
ENGAGEMENT OFFICER
BA, MPH
Mary-Anne rejoined Ryman in 2020. She has over 25 years’
experience in the healthcare sector, including senior management
roles in primary health, retirement living and home and community
care. Mary-Anne’s master’s degree focused on health systems for
ageing populations and health equity.
Chris Evans
CHIEF DEVELOPMENT AND
CONSTRUCTION OFFICER
BE (HONS)
Chris joined Ryman in 2021. He is an experienced construction
leader, having enjoyed more than 25 years working for John Holland
Group in a range of operational and senior leadership positions in
Australia. More recently Chris worked at Sydney Airport, where he
was Chief Assets and Infrastructure Officer.
Cameron Holland
CHIEF EXECUTIVE
OFFICER – AUSTRALIA
BA/BBUS – MONASH, GAICD
Cameron joined Ryman in 2021. He is a proven business leader
with over 15 years’ experience leading the commercial and
operational arms of some of Australasia’s largest brands,
including Jetstar and Lonely Planet. Cameron also has extensive
experience in the aged-care, home-care and retirement-living
sector in Australia.
Cheyne Chalmers
CHIEF EXECUTIVE
OFFICER – NEW ZEALAND
NZRN DIP NURSING, BHSC
(NURSING), PGDIPHSM,
MMGMT (HSM), ADJ PROF. MIOD,
FAC N
Cheyne joined Ryman in 2020 as Chief Operations Officer and was
appointed Chief Executive Officer – New Zealand in June 2022.
Cheyne has held senior public health roles including Executive
Director of Residential and Support Services and Chief Nursing
and Midwifery Officer at Monash Health, Melbourne. Cheyne is
also an adjunct professor at Deakin University in Victoria.
143
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Ryman believes in the
benefits of good corporate
governance and the
value it provides for
shareholders, residents,
employees and other
stakeholders.
The board of directors is responsible for applying the
company’s corporate governance at a level informed
by best practice and the recommendations outlined in
the NZX Corporate Governance Code dated 17 June 2022.
The company’s approach is set out in the following pages.
Policy documents referred to in this section are available at
rymanhealthcare.co.nz/about-us/investors/governance
BOARD COMPOSITION
The board believes the appropriate
size for the Ryman board is seven
to nine directors. At 31 March 2023,
Ryman’s seven board members
are all non-executive directors:
Claire Higgins, Anthony Leighs,
Geoffrey Cumming,
George Savvides, Paula Jeffs,
Warren Bell and Jo Appleyard.
Claire Higgins, Anthony Leighs,
George Savvides, Paula Jeffs
and Jo Appleyard are considered
independent for the purposes of
the NZX Main Board Listing Rules.
Dr David Kerr (July 2022) and
Greg Campbell (November 2022)
retired from the board during
the year.
AREAS OF
EXPERTISE
RYMAN HEALTHCARE ANNUAL REPORT 2023
144
* Geoffrey Cumming is a citizen of both New Zealand and Canada who resides in Melbourne, Australia.
** Membership at 31 March 2023.
*** Attendance in the financial year to 31 March 2023.
2 nationalities
(4 New Zealanders* and 3 Australians)
are independent
71%
are female
43%
Average age
61
BOARD STATS AND FACTS
Board meeting
attendance
100%
BOARD COMMITTEES
Director
members**
Director independence
Director
attendance***
Audit, Finance and Risk
450%100%
People and Safety
4 75% 88%
Clinical Governance
2 100%100%
Development, Design
and Construction
4 75% 89%
Governance, Nominations
and Remuneration
475%92%
145
RYMAN HEALTHCARE ANNUAL REPORT 2023
146
Statement of corporate governance
NZX Listing
Rules
The company applies the NZX Main Board Listing Rules (the Listing Rules).
PRINCIPLE 1 – CODE OF ETHICAL BEHAVIOUR
“Directors should set high standards of ethical behaviour, model this behaviour and hold management
accountable for these standards being followed throughout the organisation.”
Code of
ethics
Ryman’s code of ethics reflects the board’s commitment to the highest standards of behaviour
and accountability. It sets out the core principles of behaviour expected of every person the
company works with, including directors, senior leaders, team members, consultants and
business partners.
The code also supports decision-making that is consistent with Ryman’s characteristics,
business goals and legal and policy obligations.
The current code of ethics is available on Ryman’s intranet and website. It covers:
• who Ryman is – the company’s values and characteristics
• Ryman’s commitment to health, safety and wellbeing – which focuses on working
safely or not at all
• Ryman’s people – supporting, developing and leading team members
• environment and community – the work Ryman does to protect the environment and have
a positive impact on local communities
• protecting Ryman’s assets and property – being a good steward of company information,
property and value
• freedom to speak up – supporting people to raise concerns, including via whistleblowing
and protected disclosures, free of reprisal or victimisation
• how Ryman does business – the rules around accepting gifts and other benefits, dealing
with conflicts of interest and maintaining confidentiality
• complying with the law and reporting breaches.
Financial
product
trading policy
Ryman supports the integrity of New Zealand’s financial markets. The company’s financial
product trading policy outlines how insider trading laws apply as well as the measures that
Ryman has in place to ensure that those laws are followed.
Additional trading restrictions apply to certain persons, including directors and senior
management, if they trade in the company’s shares and retail bonds. They are only able
to trade in the company’s shares and retail bonds during two trading windows: between
the full-year announcement date and 31 August; and between the half-year announcement
date and 31 January each year.
147
Statement of corporate governance (continued)
PRINCIPLE 2 – BOARD COMPOSITION AND PERFORMANCE
“To ensure an effective board, there should be a balance of independence, skills, knowledge,
experience and perspectives.”
The board of
directors
The practices adopted by the board are prescribed in a charter that sets out protocols
for how the board operates.
The board’s primary role is to represent and promote the interests of shareholders
effectively, with a view to adding long-term value to the company’s shares.
To do that, the board operates within the following mandate:
• The board should have a majority of non-executive directors.
• At least a third of the directors should be independent of management and free
of any business or other relationship or circumstance that could materially interfere
with the exercise of a director’s independent judgement.
• The board’s Chair should be a non-executive director (and not the Group Chief
Executive Officer).
• Directors should possess a broad range of skills, qualifications and experience
and remain up to date on how best to perform their duties.
• Management must provide information with the right levels of content, quality
and timeliness to allow the board to discharge its duties effectively.
• The effectiveness and performance of the board and its individual members
should be re-evaluated annually.
The board delegates the day-to-day management of Ryman and the implementation
of the board’s strategy to the Group Chief Executive Officer and the senior executive team.
Information on current directors, including their experience, qualifications, length of service,
interests and shareholdings, can be found in this report and on the company’s website.
The following is a summary of the board’s skill set.
RYMAN HEALTHCARE ANNUAL REPORT 2023
148
Statement of corporate governance (continued)
Governance
Experience of governance through board appointments
at other organisations or through former CEO experience.
••••••
Executive leadership
Former CEO or C-suite executive with excellent track
record of growing value, leading with purpose, strategy
development and execution, including investing in people,
leadership of culture and effective delegation.
••••
Finance, accounting and taxation
Finance and accounting experience with large companies.
May hold a recognised accounting qualification. The skills
to chair the Audit, Finance and Risk Committee.
•••
Risk management
Risk management experience developed through either
leadership or governance roles at similar-sized organisations.
•••••••
Property and construction
Experience in successfully leading property and
construction companies or performing governance roles
for companies in the sector. Skills to support and challenge
new site investment decisions and build programme.
••••
Health and safety
Experience in the development of health, safety and
wellbeing frameworks and risk-management tools
at large organisations.
••••
Health, clinical and aged care
Leadership or governance experience across the health
and aged-care sector.
••••••
Digital and technology
Experience in the implementation of digital transformation
or new digital product development in the health and
aged-care sectors.
•
Human resources
Leadership experience in the development and
implementation of people and culture programmes
at large organisations.
••••
Climate change
Knowledge, skills and experience to support the
oversight of climate-related risks and opportunities
and strategy development.
••
Strategy
Experience of strategic oversight, including the
development and implementation of strategic plans
for organisations of similar scale and complexity.
•••••••
Claire Higgins
Anthony Leighs
George Savvides
Geoffrey Cumming
Paula Jeffs
Warren Bell
Jo Appleyard
149
Statement of corporate governance (continued)
The board’s
responsibilities
The primary responsibilities of the board are to:
• ensure that the company’s goals are clearly established and that strategies are in place
for achieving them
• establish policies for strengthening the performance of the company and ensure
that management is proactively seeking to build the business
• monitor the performance of management
• appoint the Group Chief Executive Officer and set the terms of their employment agreement
• decide on the steps needed to protect the company’s financial position, enable the
company to meet its debt and other obligations when they fall due, and ensure that
appropriate steps are taken
• ensure that the company’s financial statements are true and fair and conform with the law
• ensure that the company adheres to high standards of ethics and corporate behaviour
• ensure that the company adheres to its health and safety obligations and commitments
• ensure that the company adopts policies, practices and procedures that result in
the company meeting or exceeding societal and shareholders’ expectations for
environmental, social and governance standards
• ensure that the company has appropriate risk management/regulatory compliance
policies in place.
The Governance, Nominations and Remuneration Committee considers and nominates
directors, then makes appropriate recommendations to the board.
On appointment, directors sign a written agreement that covers the terms of their appointment.
Under the Listing Rules, every director must stand for re-election at the end of three years
or the third annual meeting after their appointment, whichever is later. These directors may
offer themselves for re-election.
Directors appointed by the board must retire at the next annual meeting following their
appointment. These directors may then offer themselves for election.
The board and its committees critically evaluate their own performance and their own
processes and procedures.
RYMAN HEALTHCARE ANNUAL REPORT 2023
150
Statement of corporate governance (continued)
Independent
professional
advice
Each director has the right to seek independent legal and other professional advice
(at the company’s expense) to assist them in fulfilling their duties and responsibilities,
providing they have the prior approval of the Chair. That advice can be about any aspect
of the company’s operations and undertakings.
Diversity
Ryman’s approach to diversity is to continually develop a work environment that supports
equality and inclusion, regardless of difference. As part of that, the board and management
are expected to ensure that all eligible people get equal opportunities to demonstrate they
have the right skills and experience for a particular role. The diversity policy is available on
the company’s website.
The gender diversity for Ryman’s leadership roles at 31 March is as follows.
20232022
DirectorsMale4 6
Female3 3
7 9
Senior executive teamMale5 6
Female4 3
99
Ryman leadersMale287 224
Female387 3 74
Gender diverse1-
Undisclosed5-
680 598
151
Statement of corporate governance (continued)
PRINCIPLE 3 – BOARD COMMITTEES
“The board should use committees where this will enhance its effectiveness in key areas,
while still retaining board responsibility.”
Board
committees
The board has five standing committees: Audit, Finance and Risk; People and Safety;
Clinical Governance; Development, Design and Construction; and Governance,
Nominations and Remuneration.
There is a separate Independent Directors’ Committee.
Each committee operates under specific terms of reference approved by the board. Any
recommendations made by a committee must be considered and approved by the board.
All directors may attend any of the board committees other than the Independent
Directors’ Committee.
Audit,
Finance
and Risk
Committee
The members of the Audit, Finance and Risk Committee at 31 March 2023 are
Claire Higgins (Chair), Warren Bell, Geoffrey Cumming and George Savvides. Greg Campbell
and Dr David Kerr retired during the year. Anthony Leighs joined the committee after
31 March 2023.
The objective of the Audit, Finance and Risk Committee is to assist the board in discharging its
responsibilities for financial reporting, enterprise risk management and financial compliance.
The committee makes recommendations for appointing external auditors to ensure that they
are independent and to ensure that the company provides for a 5-yearly rotation of the lead
audit partner.
The committee also provides a forum for effective communication between the board
and Ryman’s external auditors.
The committee’s responsibilities include to:
• review and oversee enterprise risk management, internal control and compliance systems
• review the appointment of the external auditor, the annual audit plan and audit findings
and address any recommendations from the audit
• review and oversee Ryman’s financial performance, forecasting, treasury management,
capital management and debt structure
• approve the release of all financial information.
The Audit, Finance and Risk Committee must include at least three directors. The appointed
board Chair must also not be the Chair of the committee. Claire Higgins became the interim
Chair of the Ryman board when Greg Campbell retired due to ongoing health issues on
30 November 2022, and remains Chair of this committee. This was a temporary appointment
while the Governance, Nominations and Remuneration Committee recruited for a new Chair
for the Ryman board. It has been announced that Dean Hamilton will join the board commencing
1 June 2023 and, subject to being elected at the annual meeting, will take over as board Chair
on 31 July 2023. When Greg Campbell retired on 30 November 2022 the committee failed to
have a majority of members who were independent. This was managed by all directors of the
board being invited to attend the committee meetings. Anthony Leighs, who is an independent
director, was appointed to the committee on 3 May 2023.
RYMAN HEALTHCARE ANNUAL REPORT 2023
152
Statement of corporate governance (continued)
People
and Safety
Committee
The members of the People and Safety Committee are Paula Jeffs (Chair), Claire Higgins,
Jo Appleyard, Geoffrey Cumming and Richard Umbers (Group Chief Executive Officer) and
David Bennett (Group Chief Financial Officer) in their capacity as directors of all Ryman group
subsidiaries. Greg Campbell and Dr David Kerr retired during the year.
The People and Safety Committee assists the board in overseeing and reviewing matters
relating to people, culture, health and wellbeing management.
The committee recognises the critical role of people and safety in Ryman’s day-to-day
operations and aims to ensure a safety-first culture in all business operations.
The committee’s responsibilities include to:
• review and recommend health, safety and wellbeing strategies and oversee major
projects or improvement plans
• review, monitor and make recommendations to the board on the organisation’s health
and safety risk-management framework and policies, including assessments that
systems are fit for purpose and being effectively implemented, regularly reviewed
and continuously improved
• monitor compliance with health, safety and wellbeing policies and relevant applicable
laws through overseeing major assurance functions across the business and ensuring
that appropriate resources are available
• review and recommend people and culture strategies and oversee major projects
or improvement plans to drive a positive culture and effective workforce
• review and recommend talent, succession and development plans, diversity and inclusion
plans and metrics, remuneration policy and targets, and employee engagement plans.
The committee maintains direct lines of communication with the Chief Executive Officer
– New Zealand, Chief Executive Officer – Australia, Chief Development and Construction
Officer and Chief People and Safety Officer.
The committee generally invites the Group Chief Executive Officer, Group Chief Financial
Officer, Group General Counsel and external auditor to attend Audit, Finance and Risk
Committee meetings as appropriate. The committee also meets and receives regular reports
from the external auditor, without management present, to address any matters that arise
in connection with the performance of the auditor’s role.
Clinical
Governance
Committee
The members of the Clinical Governance Committee at 31 March 2023 are George Savvides
(Chair), Jo Appleyard, Tim Wilkinson (who is a professor at Otago Medical School and
a consulting geriatrician) and Dr David Kerr, who rejoined the committee in March 2023
as an expert advisor.
The Clinical Governance Committee supports and enhances the quality of the company’s
clinical performance and care.
It assists the board with oversight of clinical reporting and clinical compliance and is focused
on innovation in healthcare and ensuring alignment with emerging best clinical practices.
153
Statement of corporate governance (continued)
The committee’s responsibilities include to:
• monitor the quality of care experienced by all Ryman residents
• ensure that appropriate clinical information systems and external controls are in place
to achieve statutory compliance and quality care
• liaise with external clinical auditors, including reviewing the appointment of auditors
and audit findings
• liaise with internal clinical auditors and review audit findings
• review significant changes to clinical policies
• review significant complaints and investigations relating to the care of residents
• review changes in clinical practice in aged care.
The committee maintains direct lines of communication with the external clinical auditors,
Group Chief Executive Officer, Chief Executive Officer – New Zealand, Chief Executive Officer
– Australia and internal clinical auditor.
The committee invites clinically trained employees to attend as required. External clinical
auditors are also invited to attend a meeting each year. Their reports include reviews of the
internal clinical audit function.
Development,
Design and
Construction
Committee
The members of the Development, Design and Construction Committee are Anthony Leighs
(Chair), Jo Appleyard, Warren Bell and Claire Higgins. Greg Campbell retired from the
committee during the year.
The Development, Design and Construction Committee assists the board with oversight
of the company’s development, design and construction functions, with a view to enhancing
the company’s performance in these areas.
The committee’s responsibilities include to:
• oversee the company’s portfolio of village developments to ensure that the annual
and longer-term business plans can be achieved
• monitor the stage-gate progression of projects from land acquisition recommendation
to construction commencement, including making recommendations to the board
throughout the process
• review risk and mitigation measures relevant to the development, design and construction
functions, including timeliness, quality and compliance issues
• review a range of profitability performance metrics for each development
• investigate innovative construction and design methods to improve resident and
employee experiences, improve efficiency and support the sustainability and climate
change strategy
• review systems and procedures supporting the design, consent and building process.
The committee maintains direct lines of communication with the Group Chief Executive Officer,
Group Chief Financial Officer, Chief Development and Construction Officer, Chief Executive
Officer – New Zealand and Chief Executive Officer – Australia.
RYMAN HEALTHCARE ANNUAL REPORT 2023
154
Statement of corporate governance (continued)
Governance,
Nominations
and
Remuneration
Committee
The members of the Governance, Nominations and Remuneration Committee are
Geoffrey Cumming (Chair), Paula Jeffs, Anthony Leighs and Claire Higgins. Greg Campbell,
Dr David Kerr and George Savvides retired from the committee during the year.
The Governance, Nominations and Remuneration Committee assists the board in establishing
remuneration policies and practices. The committee also recommends the nomination
of directors to the board.
The committee’s responsibilities include to:
• assist the board in establishing remuneration policies and practices for the company
• assist in discharging the board’s responsibilities for reviewing the Group Chief Executive
Officer’s and directors’ remuneration
• advise and assist the Group Chief Executive Officer in setting remuneration for the senior
executive team
• regularly review and recommend changes to the composition of the board and identify and
recommend individuals for nomination as members of the board and its committees.
Directors’ remuneration is set out in the ‘Directors’ disclosures’ section of this report.
Independent
Directors’
Committee
The Independent Directors’ Committee comprises all independent directors.
The committee is convened as needed to address significant conflicts of interest and any
other matters referred by the board. It will also be convened if a notice of takeover is received
by the company, or if a scheme of arrangement is considered with a potential merger party.
Ryman has takeover response protocols that set out the procedures to be followed if there
is a takeover offer. These have been adopted by the board.
155
Statement of corporate governance (continued)
Attendance
at board and
committee
meetings
Directors’ attendance at board and committee meetings for the year ended 31 March 2023
is shown in the table below.
Board meetings generally consist of a number of meetings held over multiple days.
In addition to the scheduled board meetings recorded below, the board and some of the
committees held a large number of meetings during the year regarding a range of issues
including balance sheet management planning, the now completed equity raise and board
succession planning.
Board
Audit,
Finance
and Risk
People and
Safety
Clinical
Governance
Development,
Design and
Construction
Governance,
Nominations and
Remuneration
Number of
meetings held
Claire Higgins
(interim Chair)
6/6
1
7/ 7
(Chair)
3/33 /42/2
2
Anthony Leighs 6/6
4 /4
(Chair)
2/2
2
Jo Appleyard 6/6 3/33/34 /4
Warren Bell 6/6 7/ 74 /4
Geoffrey
Cumming
6/6 7/ 71/3
6/6
(Chair)
Paula Jeffs6/6
3/3
(Chair)
5/6
George Savvides 6/6 7/ 7
3/3
(Chair)
3 /4
2
Greg Campbell
(former Chair)
3
4 /45/53/31/24 /4
Dr David Kerr
4
2/22/21/11/12/2
The Independent Directors’ Committee did not meet during the year.
1 Claire Higgins replaced Greg Campbell as interim Chair of the board in November 2022.
2 Anthony Leighs and Claire Higgins replaced Greg Campbell and George Savvides as committee members
in December 2022.
3 Greg Campbell retired from the board in November 2022.
4 Dr David Kerr retired from the board in July 2022.
RYMAN HEALTHCARE ANNUAL REPORT 2023
156
Statement of corporate governance (continued)
Summary of
committee
memberships
CommitteeMembers at 31 March 2023 Members at 31 March 2022
Audit, Finance and Risk Claire Higgins
Warren Bell
George Savvides
Geoffrey Cumming
Claire Higgins
Warren Bell
Dr David Kerr
George Savvides
Geoffrey Cumming
Greg Campbell
People and Safety Paula Jeffs
Claire Higgins
Jo Appleyard
Geoffrey Cumming
Richard Umbers
(Group Chief Executive Officer)
David Bennett
(Group Chief Financial Officer)
Paula Jeffs
Claire Higgins
Dr David Kerr
Jo Appleyard
Geoffrey Cumming
Greg Campbell
Richard Umbers
(Group Chief Executive Officer)
David Bennett
(Group Chief Financial Officer)
Clinical GovernanceGeorge Savvides
Jo Appleyard
Tim Wilkinson (expert advisor)
Dr David Kerr (expert advisor)
George Savvides
Dr David Kerr
Jo Appleyard
Tim Wilkinson (expert advisor)
Dr Doug Wilson (expert advisor)
Development, Design
and Construction
Anthony Leighs
Jo Appleyard
Warren Bell
Claire Higgins
Anthony Leighs
Jo Appleyard
Warren Bell
Claire Higgins
Greg Campbell
Governance, Nominations
and Remuneration
Geoffrey Cumming
Paula Jeffs
Anthony Leighs
Claire Higgins
Geoffrey Cumming
Dr David Kerr
George Savvides
Paula Jeffs
Greg Campbell (Chair) and Dr David Kerr resigned from the board and the Audit, Finance and
Risk Committee during 2023. Dr Doug Wilson retired from his position as an expert advisor to
the Clinical Governance Committee and Dr David Kerr has been appointed as his replacement.
Anthony Leighs joined the Audit, Finance and Risk Committee after 31 March 2023.
157
Statement of corporate governance (continued)
PRINCIPLE 4 – REPORTING AND DISCLOSURE
“The board should demand integrity in financial and non-financial reporting, and in the timeliness
and balance of corporate disclosures.”
Reporting and
disclosure
The board focuses on providing accurate, adequate and timely information to enable all
investors to make informed decisions about the company.
As a company listed on the NZX Main Board, Ryman has an obligation to comply with the
disclosure requirements of the Listing Rules. These requirements aim to provide equal access
for all investors or potential investors and material, price-sensitive information concerning
issuers and their financial products. This in turn promotes confidence in the market.
Ryman’s market disclosure policy outlines the obligations of Ryman and relevant Ryman
personnel in satisfying the disclosure requirements. It also covers other related matters,
including external communications by Ryman.
The annual report is produced using the principles of Integrated Reporting <IR>. An integrated
report provides more information than traditional reporting on the company’s business model
and how Ryman creates value over time.
Ryman publishes its key governance and other relevant documents in the investor centre
of the company’s website at rymanhealthcare.co.nz/about-us/investors/governance
All significant announcements made to the NZX and reports issued are also posted on the
company’s website.
RYMAN HEALTHCARE ANNUAL REPORT 2023
158
Statement of corporate governance (continued)
PRINCIPLE 5 – REMUNERATION
“The remuneration of directors and executives should be transparent, fair and reasonable.”
Remuneration
The Governance, Nominations and Remuneration Committee makes recommendations
to the board on remuneration matters in keeping with the committee’s terms of reference,
including the remuneration of the Group Chief Executive Officer.
Directors’ pool remuneration is approved by shareholders at the annual meeting as required
under the Listing Rules.
The board is then responsible for setting individual directors’ fees in line with the approved
pool and the Listing Rules.
Details of directors’ remuneration for the year are in the ‘Directors’ disclosures’ section
of the annual report.
Ryman’s remuneration policy outlines the key principles that influence the company’s
remuneration practices.
The remuneration of the Group Chief Executive Officer and senior executive team is
determined by the significance of their roles and the industry. The total remuneration is made
up of fixed remuneration and short-term and medium-term cash-based incentives. The Group
Chief Executive Officer and senior executive team are also members of the senior leadership
share scheme (see note 25 of the financial statements). The leadership share scheme was put
on hold during the year and is currently under review.
The senior leadership share scheme provides certain employees with limited-recourse
loans on an interest-free basis to support their participation in the scheme. Shares subject
to this scheme have a restricted period of 3 years from the date of purchase to appropriately
incentivise participants for a longer period. A loan is repayable if the employee is no longer
employed by Ryman.
The short-term and medium-term incentives are at-risk payments that reward performance.
They are designed to motivate and incentivise senior employees in the delivery of performance.
The amount payable is set over the performance period. The payments of the short-term and
medium-term incentives depend on the achievement of certain stretch performance targets.
The performance metrics differ with each role.
Every year the committee reviews the levels and appropriateness of these incentives
and their weightings.
We are currently looking to appoint a remuneration advisor to support the board with
our remuneration strategy to drive performance and ensure market competitiveness.
159
Statement of corporate governance (continued)
Employees’
remuneration
The table below details the number of Ryman group employees who earned over
$100,000 during the year ended 31 March 2023. The remuneration includes salary,
short-term incentives and employer contributions to KiwiSaver and superannuation.
Remuneration $Number of employees
1,580,000-1,590,000 1
860,000-870,000 1
820,000-830,000 1
770,000-780,000 1
730,000-740,000 1
660,000-670,000 1
520,000-530,000 1
500,000-510,000 1
430,000-440,000 1
420,000-430,000 1
380,000-390,000 1
360,000-370,000 2
340,000-350,000 2
330,000-340,000 5
320,000-330,000 4
310,000-320,000 2
300,000-310,000 2
290,000-300,000 4
280,000-290,000 5
270,000-280,000 2
260,000-270,000 5
250,000-260,000 8
240,000-250,000 5
230,000-240,000 6
220,000-230,000 8
210,000-220,000 8
200,000-210,000 17
190,000-200,000 19
180,000-190,000 19
170,000-180,000 31
160,000-170,000 42
150,000-160,000 47
140,000-150,000 64
130,000-140,000 74
120,000-130,000 76
110,000-120,000 132
100,000-110,000 198
RYMAN HEALTHCARE ANNUAL REPORT 2023
160
Statement of corporate governance (continued)
Group Chief
Executive
Officer
remuneration
Richard Umbers was appointed Group Chief Executive Officer, effective 25 October 2021.
The former Group Chief Executive Officer was Gordon MacLeod, whose role with Ryman
concluded on 22 October 2021.
The remuneration paid to the Group Chief Executive Officer in the financial period was as follows:
Current Group CEO Former Group CEO
2023202220232022
$$$$
Salary 1 , 2 97,0 6 3498,462-1,668,216
Other benefits
1
63,72214,954-80,454
Fixed remuneration 1,360,785513,416-1,748,670
Short-term incentive (STI)
2
227,000-56,250
6
1,013,583
Medium-term incentive (MTI)
3
----
Long-term incentive (LTI)
4
----
Total remuneration 1,587,785513,416
5
56,2502,762,253
1 Other benefits include KiwiSaver.
2 The STI for FY22 (paid in FY23) for the current Group Chief Executive Officer represents achievements
against goals set and has been pro-rated against time in role. The STI for FY23 will be measured and
awarded in July 2023 and is based on a combination of commercial performance, resident care and
experience metrics, as well as team member safety, engagement and culture indicators. The on-target
STI payable for FY23 is $690,000.
3 The Group Chief Executive Officer is eligible for a MTI commencing in FY24 on a 3-year look-back basis
(FY22-FY24, payable in FY25). The measures for the MTI are based on commercial performance as well
as resident, relative and team member engagement metrics. The current on-target MTI is $1,150,000.
4 The LTI component for the current Group Chief Executive Officer is on hold as the LTI scheme is currently
being reviewed.
5 Represents the period from 25 October 2021 to 31 March 2022.
6 The STI for FY22 (paid in FY23) for the former Group Chief Executive Officer.
The board is looking to appoint a remuneration advisor to support the review of the remuneration strategy
to drive performance and ensure market competitiveness.
161
Statement of corporate governance (continued)
PRINCIPLE 6 – RISK MANAGEMENT
“Directors should have a sound understanding of the material risks faced by the issuer and how
to manage them. The board should regularly verify that the issuer has appropriate processes that
identify and manage potential and material risks.”
Management
of risk and
internal
controls
Ryman is committed to managing all material risks arising from its activities, in accordance
with stated policies. The board has overall responsibility for overseeing the management
of these risks.
Robust risk-management processes and tools support staff to identify, assess, monitor
and manage business risks. The responsibility for operational risk management sits with
the managers in the individual business units and the regional chief executives. Ryman’s
risk management and assurance processes support this through group functions, and are
ultimately overseen by the senior executive team and the board.
A new group risk management framework was adopted in 2022 to support greater risk
awareness, understanding and consistency across Ryman. This framework allows for
enhanced reporting of the material risks facing Ryman and greater oversight of the
effectiveness of the control environment in managing those risk exposures.
Within this framework, Ryman has identified the following eight material risk categories:
• Clinical risk
• Design, development and construction risk
• Data risk
• Financial risk
• Health, safety and wellbeing risk
• Operational and compliance risk
• People risk
• Reputational and sustainability risk.
A detailed people, health and safety risk register and clinical risk register are separately
maintained, given the significance of these areas to the business.
Ryman operates an extensive internal accreditation programme that addresses issues
such as service delivery, health, safety and wellbeing, and administration. Clinical and
health and safety audits are undertaken regularly. The results of these audits and critical
indicators are regularly reported to the board. Health, safety and wellbeing are also discussed
regularly through the board committees and at board, senior executive team, construction
team and operational team meetings. Regular reporting of key metrics assists teams to
manage these risks.
RYMAN HEALTHCARE ANNUAL REPORT 2023
162
Statement of corporate governance (continued)
Ryman’s business activities include the construction and operation of retirement villages
that are vulnerable to the impacts of climate change. The board has acknowledged this
risk and has accepted responsibility for overseeing the management of climate-related
risks. Ryman has developed a sustainability strategy that includes a project to implement
climate-risk-related processes across governance, strategy, risk management, targets
and metrics. The processes identified are consistent with the climate-related disclosure
recommendations articulated by the External Reporting Board.
Quarterly progress updates on the delivery of the projects identified in the sustainability strategy
are shared with the senior executive team. The board also receives updates at each board meeting.
Details of Ryman’s sustainability strategy are available at
rymanhealthcare.co.nz/about-us/sustainability
PRINCIPLE 7 – AUDITORS
“The board should ensure the quality and independence of the external audit process.”
External
auditor
The Audit, Finance and Risk Committee makes recommendations on the appointment
of the external auditor as set out in its terms of reference. The committee also monitors
the independence and effectiveness of the external auditor, and reviews and approves
any non-audit services performed by the external auditor.
The committee regularly meets with the external auditor to approve the terms of
engagement, the audit partner rotation (at least every 5 years) and audit fees and to review
and provide feedback on the annual audit plan. Every year, a comprehensive review and formal
assessment of the independence and effectiveness of the external auditor is undertaken.
The assessment uses an external auditor evaluation tool that is internationally recognised
and endorsed by the Independent Directors Council. The Audit, Finance and Risk Committee
routinely meets with Ryman’s external auditor Deloitte without management present.
Deloitte also attends the company’s annual meeting of shareholders.
Internal audit
functions
Clinical auditors and health, safety and wellbeing officers routinely monitor and evaluate the
effectiveness of controls across the group. Detailed reports on these activities and findings
are regularly presented to the board Clinical Governance Committee and the board People
and Safety Committee.
Ryman established an internal audit function in 2022 to further develop its audit capabilities.
The internal audit function is governed by an internal audit charter, which sets out the
objectives and scope of internal audit activities.
The primary objective of internal audit is to evaluate and improve the effectiveness of key
risk management, control and governance processes. Ryman’s internal audit approach
is guided by a principle of partnership with the business through which it seeks to add value
to the business with each review. The internal audit plan is set annually by the Audit, Finance
and Risk Committee. The committee meets on a regular basis to consider financial reporting,
internal control and corporate governance matters. The committee reviews the internal audit
findings and opinions, and the activities of the internal audit function.
163
Statement of corporate governance (continued)
PRINCIPLE 8 – SHAREHOLDER RIGHTS AND RELATIONS
“The board should respect the rights of shareholders and foster constructive relationships with
shareholders that encourage them to engage with the issuer.”
Information
for
shareholders
The company seeks to ensure that investors understand its activities by communicating
effectively with them and providing access to clear and balanced information.
The company website, rymanhealthcare.co.nz, provides an overview of the business and
a range of information about Ryman, including details of operational sites, latest news, investor
information, key corporate governance information, significant NZX announcements and
profiles of the directors and the senior executive team.
Previous annual reports, financial statements and results’ presentations are also available
on the website.
Shareholders are able to vote on major decisions of the company in line with the requirements
set out in the Companies Act 1993 and the Listing Rules.
Communicating
with
shareholders
Ryman has a dedicated Head of Investor Relations and a Group Corporate Affairs Manager.
A key goal of these two roles is to ensure that Ryman’s shareholders and bondholders are
kept informed.
Contact details for the Head of Investor Relations can be found in the contact us section
of Ryman’s website.
Ryman sends the notice of the annual meeting to shareholders and publishes it on the
company website at least 20 working days before the meeting each year.
Voting by
shareholders
Voting on all resolutions at Ryman’s shareholder meetings is conducted by poll. This
provides shareholders with a one share, one vote say on all resolutions (subject to any voting
restrictions applying under the Listing Rules).
General disclosures of interest
FOR THE YEAR ENDED 31 MARCH 2023
JO APPLEYARD
PartnerChapman Tripp
1
MemberUniversity of Canterbury Vice-Chancellor Employment Committee
Board memberCommunity Law Canterbury
TrusteeWai Wanaka
Bare trusteeRyman Healthcare Share Scheme
DirectorHallenstein Glasson Holdings Limited Group
WARREN BELL
ChairHallenstein Glasson Holdings Limited Group
ChairSt George’s Hospital Inc
DirectorMeadow Mushrooms Limited Group
DirectorCyprus Enterprises Limited
DirectorSabina Limited
DirectorWarren Bell Limited
DirectorCHC Properties Limited
DirectorGlasson Trustee Limited
Director152 Hereford Limited
DirectorNew North Holdings Limited
DirectorWaiwetu Trustees Limited
DirectorHickman Family Trustees Limited
(part shareholder of Airport Business Park Christchurch Limited)
TrusteeEmerald Trust (part shareholder of Airport Business Park Christchurch Limited)
TrusteeWaiwetu Trust (part shareholder of Airport Business Park Christchurch Limited)
Director/shareholder Poraka Limited
Bare trustee Ryman Healthcare Share Scheme
2
GEOFFREY CUMMING
Chair/CEO/sole shareholderKarori Capital Limited and Karori Capital Canada Limited
Shareholder/lender/
joint manager
Various commercial property investment companies in the Caniwi Capital Partners
Limited group of entities
Advisory board member/
unit holder
Viewpoint Global Fund Trust
Advisory board member/
sponsor
Cumming Medical Research Fund, University of Calgary
Director/shareholderAmira Medical Technologies Inc
GovernorThe Cumming Global Centre for Pandemic Therapeutics
PAULA JEFFS
(None)
CLAIRE HIGGINS
ChairREI Superannuation Fund Pty Ltd
ChairGMHBA Limited and subsidiaries
DirectorMargin Clear Pty Ltd
DirectorQE042 Pty Ltd
TrusteeHelen Macpherson Smith Trust
2
RYMAN HEALTHCARE ANNUAL REPORT 2023
164
ANTHONY LEIGHS
Managing Director Leighs Construction Holdings Limited and associated entities
Director/shareholderAlisanca Holdings Limited and associated entities
DirectorPortus Property Limited and associated entities
DirectorLabour Logistics Auckland Limited
Director/shareholder Tectonus Limited
Bare trustee Ryman Healthcare Share Scheme
DirectorStar Scaffolding Limited
2
GEORGE SAVVIDES
ChairSpecial Broadcasting Service (SBS) Australia
DirectorIAG Insurance Australia Group
Chair/shareholderTeamflow Asset Management Pty Ltd
Chair/shareholderTeamflow Pty Ltd
DirectorBuildXACT Software Limited
Chair/shareholder Lewis Street Nine Pty Ltd
ChairI-Med Radiology Limited
DR DAVID KERR – RESIGNED EFFECTIVE JULY 2022
Chair Centercare Limited
DirectorForté Health Limited
TrusteeChristchurch City Mission
Director/shareholderD.W. Kerr Limited
Bare trusteeRyman Healthcare Share Scheme
2
GREG CAMPBELL – RESIGNED EFFECTIVE NOVEMBER 2022
DirectorTerrequipe Limited
DirectorTDX Limited
Director/shareholderGreg Campbell Limited
DirectorStewart Family Holdings Limited and associated entities
TrusteeMaia Health Foundation
DirectorChristchurch City Holdings Limited
2
Bare trusteeRyman Healthcare Share Scheme
2
1 Jo has been a director since 2009, and in that time she has performed no professional services for the company in her capacity
as a partner at Chapman Tripp.
2 Interests no longer held at 31 March 2023.
General disclosures of interest (continued)
FOR THE YEAR ENDED 31 MARCH 2023
165
Directors’ disclosures
FOR THE YEAR ENDED 31 MARCH 2023
DIRECTORS’ REMUNERATION POOL
Directors’ fees for their board and board committee responsibilities are paid out of a pool and are reviewed every
2 years. The current pool was approved by shareholders in 2021 ($1,500,000 based on a board of nine directors).
As permitted by Listing Rule 2.11.3, the pool can be increased by the board to enable any additional non-executive
director to be paid the average amount being paid to other non-executive directors (excluding the Chair). This has
not been required since fees were approved in 2021. Australia-based directors’ fees are paid in Australian dollars.
In 2021 the board adopted a fixed share trading plan that requires each director to hold shares to better align their
interests with those of the shareholders. The general intention under the plan is that each director acquires shares
in Ryman equivalent to 33.33 percent of their gross director fees. These shares are acquired by a broker through
on-market purchases during the two fixed trading windows each year. The shares must then be retained for the
term of each director’s appointment, except in exceptional circumstances.
Shares acquired by directors under the plan are included in the disclosed security holdings at 31 March 2023.
MEMBERSHIP OF COMMITTEES
Director fees are aligned with the 2021 recommendations of Ernst & Young’s Non-Executive Director Fee
Practices report, commissioned by Ryman and recommended to the board by the Governance, Nominations
and Remuneration Committee. Directors receive fees for committee membership, and additional fees are paid to
a director who acts as the Chair of a committee. During the year, George Savvides, Claire Higgins, Anthony Leighs,
Geoffrey Cumming and Paula Jeffs held committee Chair positions. The board Chair does not receive fees for
committee membership.
The approved fees are as follows.
Fees (per annum)From 1 August 2021Up to 1 August 2021
Board – Chair263,000220,000
Board – deputy Chair-18,000
Board – member110,000110,500
Committee – Chair20,00018,000
Committee – member (excluding board Chair)10,000-
Independent Directors’ Committee--
Following the resignation of the board Chair in November 2022, an interim Chair was appointed. The fee paid to
the interim Chair is A$283,000 per annum. No additional fees are payable for being a committee Chair or member
during this time.
RYMAN HEALTHCARE ANNUAL REPORT 2023
166
Directors’ disclosures (continued)
FOR THE YEAR ENDED 31 MARCH 2023
DIRECTORS’ BOARD AND COMMITTEE REMUNERATION FOR THE YEAR ($)
Director
Board
fees
Audit,
Finance
and Risk
fees
Clinical
Governance
fees
Development,
Design and
Construction
fees
People
and
Safety
fees
Governance,
Nominations
and
Remuneration
fees
Foreign
exchange
Total directors’
fees
Claire Higgins 167,667 13,333 - 6,667 6,667 - 18,002 212,335
Jo Appleyard110,000
- 10,000 10,000 10,000 - - 140,000
Warren Bell
110,000 10,000 - 10,000 - - - 130,000
Geoffrey Cumming
110,000 10,000 - - 10,00020,000 14,186 164,186
Paula Jeffs
110,000 - - - 20,00010,00013,240 153,240
Anthony Leighs
110,000 - - 20,000 - 3,333 - 133,333
George Savvides
110,000 10,000 20,000 - - 6,667 13,881160,547
Greg Campbell 175,333
- - - - - - 175,333
Dr David Kerr
36,667 3,333 3,333 - 3,3333,333 - 50,000
1,039,66746,667
33,333 46,667 50,00043,33359,309 1,318,976
Greg Campbell resigned as board Chair and director in November 2022. Claire Higgins was appointed as interim
board Chair during the period while a search for a new board Chair was undertaken. Dr David Kerr resigned as a
director in July 2022.
The directors’ remuneration paid in the financial year ended 31 March 2023 is within the approved pool.
DIRECTORS OF SUBSIDIARY COMPANIES
Jo Appleyard, Richard Umbers and David Bennett are directors of all the company’s New Zealand subsidiaries.
Claire Higgins, Paula Jeffs, Richard Umbers, David Bennett and Cameron Holland are directors of
Ryman Healthcare (Australia) Pty Ltd and its subsidiaries. George Savvides resigned as a director of the
Australian subsidiary companies. Martyn Osborn is a director of Ryman Healthcare (Australia) Pty Ltd
and Ryman Construction Pty Ltd. David Swann is a director of Ryman Construction Pty Ltd.
Jo Appleyard, Richard Umbers and David Bennett are trustees of the Ryman Healthcare Charitable Trust.
Greg Campbell and Dr David Kerr resigned from their respective subsidiary directorships during the year.
No fees are paid to individuals in their capacity as directors of the subsidiaries.
SPECIFIC DISCLOSURES
In line with the company’s constitution and the Companies Act 1993, the company has provided insurance
for and indemnities to directors of the company and its subsidiaries.
167
Directors’ disclosures (continued)
FOR THE YEAR ENDED 31 MARCH 2023
SECURITY HOLDINGS AT 31 MARCH 2023
Director
Ordinary
shares
RYM010
retail bonds
Jo Appleyard
1
126,523-
Warren Bell
7,192 -
Geoffrey Cumming
2
54,047,119-
Claire Higgins
3
34,879-
Paula Jeffs14,559 -
Anthony Leighs
4
35,228-
George Savvides
5
83,887-
The table above includes shares acquired under the fixed share trading plan.
1 Held as trustees of The Appleyard and Larkin Family Trust.
2 Shares held by Karori Capital Limited.
3 Held as trustees of Adam Higgins Superannuation Fund Pty Ltd.
4 Shares held by Alisanca Holdings Limited.
5 Shares held by Teamflow Asset Management Pty Ltd.
RYMAN HEALTHCARE ANNUAL REPORT 2023
168
Directors’ disclosures (continued)
FOR THE YEAR ENDED 31 MARCH 2023
SECURITY TRANSACTIONS DURING THE YEAR
DirectorNature of interest
Number of securities
acquired/(disposed of )Consideration ($)Date
Anthony LeighsBeneficial2,98328,7777 June 2022
Claire HigginsBeneficial3,65935,2987 June 2022
Dr David KerrBeneficial4,41642,6017 June 2022
Geoffrey CummingBeneficial3,65635,2697 June 2022
George Savvides Beneficial3,65535,2607 June 2022
Gregory CampbellBeneficial4,97748,0137 June 2022
Jo AppleyardBeneficial3,21330,9967 June 2022
Paula JeffsBeneficial3,41232,9167 June 2022
Warren BellBeneficial2,98328,7777 June 2022
Warren BellBeneficial(1,500)(14,070)9 June 2022
Anthony LeighsBeneficial2,16214,4645 December 2022
Claire HigginsBeneficial2 ,74 618,3715 December 2022
Dr David KerrBeneficial1,2548,3895 December 2022
Geoffrey CummingBeneficial 2 ,74718,3775 December 2022
George SavvidesBeneficial2 ,74 218,3445 December 2022
Gregory CampbellBeneficial4,37729,2825 December 2022
Jo AppleyardBeneficial2,33015,5885 December 2022
Paula JeffsBeneficial2,56417,1535 December 2022
Warren BellBeneficial2,16414,4775 December 2022
Anthony LeighsBeneficial2471,51722 December 2022
Claire HigginsBeneficial3091,89722 December 2022
Dr David KerrBeneficial3,78123,21722 December 2022
George SavvidesBeneficial74 44,56922 December 2022
Jo AppleyardBeneficial8875,44722 December 2022
Paula JeffsBeneficial8049122 December 2022
Warren BellBeneficial55
33822 December 2022
Warren BellNot beneficial400,0002,000,00027 February 2023
Geoffrey CummingBeneficial
5,000,000 25,000,00027 February 2023
Claire HigginsBeneficial9,15445,7 7015 March 2023
Anthony LeighsBeneficial9,24646,23015 March 2023
George SavvidesBeneficial22,000110,00015 March 2023
Jo AppleyardBeneficial33,208166,04015 March 2023
Paula JeffsBeneficial 3,83519,17515 March 2023
Warren BellBeneficial1,4007,00015 March 2023
The joint custodians of the Ryman Healthcare Leadership Share Purchase Scheme acquired no shares during
the year, disposed of 246,964 shares during the year and held 2,494,282 shares in total at 31 March 2023
(see note 25 of the financial statements).
169
Shareholder information
TOP 20 SHAREHOLDERS AT 20 APRIL 2023
Rank Investor nameNo. of shares% issued capital
1HSBC Nominees (New Zealand) Limited
1
63,713,8259.27
2BNP Paribas Nominees (NZ) Limited
1
63,430,0479.22
3Karori Capital Limited 54,047,1197.86
4Custodial Services Limited47,837,9826.96
5Citibank Nominees (NZ) Ltd
1
43,266,5236.29
6Hickman Family Trustees Limited
2
33,400,0004.86
7BNP Paribas Nominees NZ Limited Bpss40
1
30,335,9944.41
8HSBC Nominees (New Zealand) Limited
1
28,085,5844.08
9BNP Paribas Nominees NZ Limited
1
24,701,6293.59
10JPMorgan Chase Bank
1
24,502,5603.56
11Tea Custodians Limited
1
19,874,5472.89
12Accident Compensation Corporation
1
19,028,1832 .7 7
13New Zealand Superannuation Fund Nominees Limited
1
18,658,6932 .71
14Forsyth Barr Custodians Limited 14,897,5582 .17
15New Zealand Depository Nominee12,973,6741.89
16National Nominees New Zealand Limited
1
12,100,9211.76
17Premier Nominees Limited
1
8,802,8141.28
18Private Nominees Limited
1
6,276,4210.91
19Cogent Nominees Limited
1
6,053,8990.88
20FNZ Custodians Limited5,673,7240.83
1 Held by New Zealand Central Securities Depository Limited as custodian.
2 Held as trustee of the Hickman Family Trust.
RYMAN HEALTHCARE ANNUAL REPORT 2023
170
Shareholder information (continued)
DISTRIBUTION OF SHAREHOLDERS AT 20 APRIL 2023
Size of shareholdingNumber of shareholdersShares held
1–1,0006,401 3 7. 27 %2,982,4900.42%
1,001–5,0006,85639.90% 17,028,5512 .48%
5,001–10,0002,01511.73%14,493,3172.11%
10,001–50,0001,6219.43%32,779,3074.7 7%
50,001–100,0001761.02%11,750,0871.71%
Greater than 100,0001120.65%608,607,98688.51%
Total17,181100.00%687,641,738 100.00%
DISTRIBUTION OF BONDHOLDERS AT 20 APRIL 2023
Size of shareholdingNumber of bondholdersBonds held
1–1,000- 0.00% -0.00%
1,001–5,000346.19%170,0000.12%
5,001–10,00011921.64%1,147,0000.76%
10,001–50,00032759.45%8,941,0005.96%
50,001–100,000295.27% 2,314,0001.54%
Greater than 100,000417.4 5%137,428,00091.62%
Total550100.00%150,000,000100.00%
SUBSTANTIAL PRODUCT HOLDERS AT 31 MARCH 2023
ShareholderRelevant interest
Karori Capital Limited54,047,119 7.86%
ACATIS Investment KVG mbH on behalf of GANÉ Value Event Fonds 43,387,9006.31%
A total of 687,641,738 ordinary Ryman shares were on issue as at 31 March 2023 (the only voting products on issue).
171
RYMAN HEALTHCARE ANNUAL REPORT 2023
172
Thank you
Ka nui te mihi
Salamat
Dhanyavaad
Baie dankie
Xièxiè
There are many ways
to say thank you.
Among our diverse team, these are just
some of them. We are immensely proud
and grateful for your incredible efforts
over the past year. Your commitment
demonstrates what it means to be
a true Rymanian. Sincere thanks to
each and every one of you.
173
Our villages
NEW ZEALAND
NORTH ISLAND EX AUCKLAND
Aotearoa Te Ika-a-māui
VillageLocationOpened
•
Malvina MajorWellington1998
•
Shona McFarlaneLower Hutt2000
•
Rita AngusWellington2001
•
Hilda RossHamilton2002
•
Princess AlexandraNapier2003
•
Jane WinstoneWhanganui2006
•
Julia Wallace
Palmerston North
2007
•
Jean SandelNew Plymouth2009
•
Jane ManderWhangārei2009
•
Kiri Te KanawaGisborne2011
VillageLocationOpened
•
Bob OwensTauranga2011
•
Charles FlemingWaikanae2012
•
Bob ScottLower Hutt2015
•
Linda JonesHamilton2019
•
James WattieHavelock North2020
•
Cambridge––
•
Ta u p ō––
•
Karori
1
Wellington–
WELLINGTON
Te Whanganui a-Tara
LOWER HUTT
Te Awa Kairangi ki Tai
1
WAIKANAE
PALMERSTON NORTH
Te Papaioea
WHANGANUI
NEW PLYMOUTH
Ngāmotu
HAVELOCK NORTH
Karanema
NAPIER
Ahuriri
GISBORNE
Tūranga-nui-a-Kiwa
TAURANGA
TA U P Ō
HAMILTON
Kirikiriroa
CAMBRIDGE
Kemureti
WHANGĀREI
2
2
1
1
1
1
1
1
1
1
1
2
1
1
Open & complete
14
Open & under construction
1
Under construction
1
Planned
2
Total18
1 Council approvedAll maps current as at 19 May 2023
RYMAN HEALTHCARE ANNUAL REPORT 2023
1 74
NEW ZEALAND
AUCKLAND REGION
Aotearoa Tāmaki-makau rohe
VillageLocationOpened
•
Grace JoelSt Heliers2002
•
Edmund HillaryRemuera2007
•
Evelyn PageOrewa2009
•
Bruce McLarenHowick2014
•
Possum BournePukekohe2015
•
Bert SutcliffeBirkenhead2016
•
Logan CampbellGreenlane2018
•
Murray HalbergLynfield2018
•
William SandersDevonport2019
•
Miriam CorbanHenderson2020
VillageLocationOpened
•
Keith ParkHobsonville2021
•
Takapuna––
•
Kohimarama
1
––
•
Karaka––
WILLIAM
SANDERS
KOHIMARAMA
TAKAPUNA
BRUCE MCLAREN
EDMUND
HILLARY
GRACE JOEL
KEITH PARK
LOGAN CAMPBELL
MIRIAM
CORBAN
MURRAY
HALBERG
KARAKA
BERT SUTCLIFFE
Open & complete
7
Open & under construction
4
Under construction
1
Planned
2
Total14
1 Council approved
POSSUM BOURNE
EVELYN PAGE
175
Open & complete
11
Open & under construction
1
Under construction
1
Planned
2
Total15
VillageLocationOpened
•
WoodcoteChristchurch1991
•
Essie SummersChristchurch1991
•
Margaret StoddartChristchurch1993
•
Frances HodgkinsDunedin1994
•
Rowena JacksonInvercargill1996
•
Yvette WilliamsDunedin1997
•
Ngaio MarshChristchurch1998
•
Anthony WildingChristchurch2006
•
Ernest RutherfordNelson2008
•
Diana IsaacChristchurch2012
VillageLocationOpened
•
Charles UphamRangiora2016
•
Kevin HickmanChristchurch2021
•
NorthwoodChristchurch–
•
Park Terrace
1
Christchurch–
•
Rolleston
1
––
NEW ZEALAND
SOUTH ISLAND
Aotearoa Te Waipounamu
INVERCARGILL
Waihōpai
DUNEDIN
Ōtepoti
RANGIORA
CHRISTCHURCH
Ōtautahi
NELSON
Whakatū
1
1
6
1
ROLLESTON
Tauwharekākaho
1
111
2
1 Council approved
RYMAN HEALTHCARE ANNUAL REPORT 2023
176
1 Council approved
2 Essendon Terrace was acquired in 2021
VillageLocationOpened
•
Weary DunlopWheelers Hill2014
•
Essendon Terrace
2
Essendon2014
•
Nellie MelbaWheelers Hill2018
•
Charles BrownlowHighton2020
•
Deborah CheethamOcean Grove2020
•
John FlynnBurwood East2020
•
Raelene BoyleAberfeldie2021
•
Bert NewtonHighett–
•
Ringwood East––
•
Mulgrave
1
––
VillageLocationOpened
•
Mt Eliza
1
––
•
Essendon––
•
Coburg North––
•
Kealba––
AUSTRALIA
VICTORIA
In the spirit of reconciliation, Ryman Healthcare
acknowledges the Traditional Custodians of country
throughout Australia and their connections to land,
sea and community. We pay our respect to their
Elders past and present and extend that respect to
all Aboriginal and Torres Strait Islander peoples today.
Open & complete
4
Open & under construction
3
Under construction
2
Planned
5
Total14
177
CHARLES
BROWNLOW
RAELENE BOYLE
KEALBA
DEBORAH
CHEETHAM
WEARY DUNLOP
NELLIE MELBA
COBURG NORTHJOHN FLYNN
ESSENDON
MULGRAVE
BERT NEWTON
RINGWOOD EAST
MT ELIZA
ESSENDON TERRACE
Directory
REGISTERED OFFICE
Airport Business Park
92 Russley Road
Christchurch 8042
PO Box 771, Christchurch 8140
New Zealand
SHARE REGISTRAR
Link Market Services
PO Box 91976, Auckland 1142
New Zealand
P: +64 9 375 5998
E: enquiries@linkmarketservices.co.nz
New Zealand
0800 588 222
rymanhealthcare.co.nz
Australia
1800 922 988
rymanhealthcare.com.au
For more information on any of Ryman Healthcare’s retirement villages:
MELBOURNE OFFICE
Level 5, 6 Riverside Quay
Southbank, VIC 3006
PO Box 54
Collins Street West
Melbourne, VIC 8007
Australia
AUCKLAND OFFICE
Building 2, Level 2
Central Park
666 Great South Road
Ellerslie, Auckland 1051
New Zealand
RYMAN HEALTHCARE ANNUAL REPORT 2023
178
rymanhealthcare.co.nz
rymanhealthcare.com.au
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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