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Preliminary Half Year Release Announcement



22 November 2002



1. Record Surplus for Half Year

- Net Surplus after Tax up 68% to $7.6 million

- Net Operating Cash Flow of $18.7 million

- Interim Dividend lifted to 3.0 cents per share (payable December 2002)

- Net Asset Backing increased to 116 cents per share

2. Successful Start up in Hamilton

- Hilda Ross Retirement Village opened in Hamilton

- Resthome now fully occupied

- Initial serviced and independent units all sold

3. Grace Joel Retirement Village Opens

- Grace Joel Retirement Village opened in St Heliers, Auckland

- Independent apartments, serviced apartments, resthome and hospital facilities all available

4. Awarded Best Retirement Village in New Zealand

5. Financials

30 Sep 02 30 Sep 01

6 Months 6 Months

Gross Revenue $million 43.6 27.3

EBITDA $million 9.2 6.1

Net Surplus $million 7.6 4.5

Operating Cash Flows $million 18.7 18.7

Earnings per Share Cents 7.6 4.5

Dividend per Share Cents 3.0 2.0

Total Assets $million 180.2 160.1

Equity $million 116.4 100.3

Equity Ratio % 64.6 62.6


The Directors of Ryman Healthcare Limited are pleased to announce a net surplus after taxation of $7.6 million for the six months ended 30 September 2002.

An interim dividend of 3.0 cents per share has been declared, with no imputation credits attached, and will be paid on 13 December 2002. The record date for entitlements will be 6 December 2002.

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The net surplus for the half year under review was a new record for the Group for any half year period. The net surplus after tax of $7.6 million was up 68% on the result for the same period last year.

The Group achieved 109 new sales of occupation rights during the period. The growth in new sales has been possible due to the Group’s expansion into the Hamilton and Auckland markets.

The successful opening of the Hilda Ross Retirement Village in Hamilton significantly contributed to the increase in earnings, both in terms of new sales of occupation rights and the establishment of a profitable care operation. Further facilities are being developed at this site to meet the demand.

The Group is converting its substantial landbank, which is spread over seven sites throughout the country, into new facilities according to demand.

Earnings from ongoing operations also improved, with higher occupancy in comparison to the same period last year.

Resales revenue and deferred management fees revenue also increased markedly, due to the substantial growth in the Group’s portfolio of retirement village units in recent years.

The Group’s strong cash flows continued with net operating cash flows of $18.7 million for the half year.

The second half of the year will benefit from the recent opening of facilities at the Grace Joel Retirement Village in Auckland. There has been strong interest expressed in the units offered for sale, which to date have been limited. A greater number of units will be available for sale in the second half of the year.

The Directors are confident that for the full 2003 financial year the net surplus will comfortably exceed that recorded last year.

Financial Position

Shareholders funds lifted to $116.4 million in the past six months due to 60% of earnings being retained for expansion.

The Group’s debt to assets ratio remains conservative at 35.4%, and is likely to remain at these levels as the development of new facilities is primarily funded from operating cash flows.

The net assets of the Group have increased by 71% from $67 million to $116 million since listing on the New Zealand Stock Exchange in June 1999. The increase in net assets is due to the successful establishment of five new retirement villages over that period.

The Group’s asset base will continue to grow as new villages are developed in the upper North Island. The Group currently holds land for expansion at six existing villages between Invercargill and Auckland, plus a large site yet to be developed in Auckland.


The Directors are very positive about the opportunities presented in the upper North Island markets. The decision to focus the Group’s expansion on this market has been vindicated by the success of the new Hamilton village and the strong interest in the St Heliers village to date.

Planning for the development of the Abbotts Way site in Auckland is still in progress, and the Group is actively seeking further sites for development of comprehensive retirement villages in the future.

The Directors recognise the opportunities that exist within New Zealand for providing ongoing care and facilities to the elderly. The elderly, as a demographic sector, are increasing in number, and demand for the type of facilities and services offered by the Group is continuing to grow.

The Group is committed to pursuing its successful formula of developing comprehensive retirement villages, which provide services to a wide range of elderly persons, from the independent retirement village resident to the person requiring more intensive continuing hospital level care.

The Directors remain committed to providing a very high standard of facilities and services to our residents. This commitment to quality is reflected in the quality assurance programmes applied at all facilities, and the provision of extensive training for all staff.

Financial Year Sep 02 Sep 01 Mar 02 Mar 01 Mar 00 Mar 99

Half Year Half Year Full Year Full Year Full Year Full Year

Revenue ($000)

New Sales of Occupation Rights 17,613 7,902 21,794 22,917 19,391 11,710

Care Fees 14,661 12,327 25,555 22,625 18,476 13,814

Resales of Occupation Rights 9,502 5,480 11,332 11,511 6,651 4,519

Deferred Management Fees 1,563 1,180 2,577 1,904 1,424 981

Other 249 361 686 813 560 100

Total Revenue 43,588 27,250 61,944 59,770 46,502 31,124

Earnings ($000)

EBITDA 9,186 6,136 13,906 15,305 13,555 7,523

EBIT 8,306 5,232 12,373 13,927 12,439 6,713

Net Surplus 7,626 4,535 11,073 14,103 12,557 6,192

Sales of Occupation Rights (no)

New Sales

Independent Units 60 24 64 86 72 34

Serviced Units 49 21 51 40 59 14


Independent Units 24 12 29 31 22 15

Serviced Units 57 36 67 68 31 33

Total Sales 190 93 211 225 184 96

Facilities under management (no)

Retirement Village Units

Independent Units 476 430 468 406 286 199

Serviced Units 367 313 364 313 264 174

Residential Care Beds

Resthome 618 549 618 539 428 394

Hospital 235 232 205 205 205 177

Total Facilities 1,696 1,524 1,655 1,463 1,183 944

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