Ryman Healthcare Full year results 20 May 2016 .o . wilme Full year highlights Underlying profit up 16% to $158 million Reported profit up 26% to $305 million Full year dividend lifted to 15.8 cents per share Record build, four villages opening A big year for innovation Growing dividend stream 16.0 14.0 cents per share 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2002 2004 2006 2008 2010 (adjusted for share split) 2012 2014 2016 Care Residents Survey February 20 6 Grace joel Rank Net Promoter Score: nla (max. 400% :0 I005) Average Score: 4.33 143.44 I I0 {out of 5) of IS Swing I I happy With: Neutra Agree Agree staffcare for me . . . . .the way staff communicate with me . laundry service I I 14 years of underlying profit growth 160 140 120 $ million 100 80 60 40 20 0 2002 2004 2006 2008 2010 2012 2014 2016 Record operating cashflows 350 300 $ million 250 200 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Build programme stepping up 1600 1400 1200 Units/Beds 1000 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 New Zealand 2011 2012 Australia 2013 2014 2015 Build Target 2016 2017 2018 2019 2020 2021 Key building activity FYI 7 Emu- Development margin 35% 30% 25% 20% 5% 0% RYMAN 20 2 20 3 20 4 20 5 20 6 4? Target range Resales bank 600 500 400 300 millions 200 IOO 20 4 20 5 20 6 I New Zealand I Melbourne Sales pricing vs median house price 1400 1200 $ thousands 1000 800 600 400 200 0 Melbourne Median house price - area Auckland Ryman - Independent Ryman - Serviced Total assets have doubled in 4 years 4.5 4.0 3.5 $ billions 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 2016 Building higher value villages Rest of NZ Auckland Melbourne 0 50 100 150 Indicative capital proceeds - $ million Retirement Unit Accommodation Bonds 200 250 Long term capital efficiency $25m raised at IPO in 1999 Invested $2.1bn in portfolio since With no fresh capital Dividends of $500m paid since float Self-funded growth Conservative bank debt It?s all about people t_ a (2/3 af?x?m"W111i": IFIIFI -5riLh i Juan'?Er Village rollout - Melbourne RYMAN HEALTHIHRE FinancialYear 2012 2013 2014 2015 2016 2017 2018 2019 2020 Weary 0 Brandon Park . - Planning Build . Village Open .1 pr '35 I: ?I?m bet. 'nluh 4r} . 4- Brandon Park, Melbourne Appendices 1m Appendix 1: Reported profit Underlying Profit Taxation Expense Unrealised revaluations of RV units Deferred tax expense Reported Net Profit $157.7m $0.0m +$151.6m -$3.9m $305.4m Appendix 2: Statistics Sales of Occupation Rights Full year Mar-16 Full year Mar-15 Existing units Independent Serviced 297 393 690 300 330 630 New units Independent Serviced 400 118 518 407 138 545 Independent Serviced Units built 3,688 1,699 5,387 595 3,300 1,492 4,792 585 Beds built 3,121 314 2,807 290 Total build 8,508 909 7,599 875 Portfolio and Build Rate Retirement village units Aged Care Beds Total Portfolio Appendix 3: Margin New Sales Full year Full year Mar-16 Mar-15 $000s $000s Reference Realised Fair Value movement – new RV units Sale of occupation rights – new RV units (Note 3) 62,396 61,597 (Key statistics) 226,215 249,096 28% 25% Gross development margin % Resales Realised Fair Value movement – existing RV units Sale of occupation rights – existing RV units Gross resales margin % (Note 3) 60,613 50,312 (Key statistics) 272,901 236,795 22% 21% Appendix 4: Asset base Hospital Woodcote Essie Summers Margaret Stoddart Frances Hodgkins Rowena Jackson Malvina Major Ngaio Marsh Shona McFarlane Rita Angus Hilda Ross Grace Joel Princess Alexandra Jane Winstone Anthony Wilding Edmund Hillary Julia Wallace Ernest Rutherford Jean Sandel Jane Mander Evelyn Page Yvette Williams Kiri Te Kanawa Bob Owens Diana Isaac Charles Fleming Bruce McLaren Bob Scott Bert Sutcliffe Possum Bourne Charles Upham Weary Dunlop Current Units & Beds Christchurch Christchurch Christchurch Dunedin Invercargill Wellington Christchurch Lower Hutt Wellington Hamilton Auckland Napier Wanganui Christchurch Auckland Palmerston North Nelson New Plymouth Whangarei Orewa Dunedin Gisborne Tauranga Christchurch Waikanae Auckland Petone Birkenhead Pukekohe Rangiora Melbourne Special Care Resthome 49 24 30 41 51 26 61 30 30 20 20 40 43 20 24 24 39 33 35 30 50 21 20 25 20 33 39 32 20 37 20 30 3 15 34 40 40 40 40 40 40 40 42 40 34 40 40 40 40 30 20 32 1,444 670 1,007 41 70 90 81 59 49 68 77 60 30 80 114 43 49 39 60 60 57 46 40 40 40 41 40 40 Serviced 7 58 25 32 46 59 40 50 50 51 80 54 50 50 60 50 75 62 71 66 32 62 79 79 79 74 89 81 37 51 1,699 Independent 18 22 20 42 103 117 119 130 99 167 69 70 54 110 373 111 124 157 183 248 65 218 256 201 192 56 6 69 89 200 3,688 Total 74 175 86 125 306 296 270 259 218 369 246 232 173 308 627 245 293 330 366 431 122 222 417 455 400 389 259 207 186 89 333 8,508 Appendix 5: Land bank (as at 31 March 2016) Existing Sites Princess Alexandra Jean Sandel (extn) Kiri Te Kanawa Bob Scott Birkenhead Pukekohe Greenlane Rangiora New Sites Devonport Tropicana Newtown River Road Site A Hospital Special Care Resthome Serviced Independent Total Napier New Plymouth Gisborne Wellington Auckland South Auckland Auckland Canterbury 40 41 40 121 41 40 81 37 40 77 32 45 83 93 253 2 69 20 198 239 184 113 116 941 2 69 52 198 239 269 315 329 1,473 Auckland Auckland Wellington Hamilton TBA 40 42 28 40 35 185 40 42 20 40 20 162 40 40 28 40 16 164 78 90 46 80 66 360 196 330 55 211 53 845 394 544 177 411 190 1,716 306 243 241 613 1,786 3,189 66 40 106 66 40 106 67 40 107 100 78 178 322 163 485 621 361 982 412 349 348 791 2,271 4,171 New Zealand Landbank Australia Brandon Park Burwood East Total Landbank Melbourne Melbourne Appendix 6: Cash management fees Full year Full year Mar-16 Mar-15 $000s $000s Reference Accrued Management Fees – Opening (Note 4) and PY financials 191,679 163,327 (Note 4) -227,154 -191,679 -35,475 -28,352 Income statement 50,632 43,397 (Note 2) 4,951 4,799 Plus: GST / accommodation credit adjustment Not disclosed 1,822 1,130 Plus: Movement in resident loan Not disclosed 2,080 1,448 24,010 22,422 Less: Accrued Management Fees – Closing Movement in Accrued Management Fees Plus: DMF income Plus: Revenue in advance movement Cash Management Fees Appendix 7: Units and beds built – FY16 Bob Scott Bert Sutcliffe Possum Bourne Charles Upham Weary Dunlop Bruce McLaren Jean Sandel Charles Fleming Kiri Te Kanawa - 50 100 150 Units Beds 200 250 300 Appendix 8: Retirement Village Portfolio 10000 8000 Units/Beds 6000 4000 2000 0 2006 2008 2010 Serviced Apartments & Care Beds 2012 Independent Units 2014 2016 Appendix 9: Investing cash flows 400 350 300 $ millions 250 200 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Appendix 10: Occupation rights sales volume 1400 1200 Volume 1000 800 600 400 200 0 2009 2010 2011 2012 Resales 2013 New sales 2014 2015 2016 Appendix 11: Population growth 75+ 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 New Zealand Victoria Appendix 12: 2020 – our share of 75+ market New Zealand Victoria 1,500 14,000 350,000 467,000 75+ Population Ryman Appendix 13: Our share of 75+ market Auckland only 2015 2020 2,120 4,500 75,000 95,000 75+ Population Ryman