Ryman Healthcare (RYM) investor relations material

Strategic direction and growth outlook

• Refreshed strategy shifts focus from rapid development-led growth to sustainable value creation, emphasizing recurring earnings, operational excellence, and portfolio optimization.

• Positioned for significant demand growth, supported by demographic trends such as the doubling of the 80+ population by 2050 and a scalable, integrated care model across New Zealand and Australia.

• Industry reforms in Australia and anticipated changes in New Zealand are expected to improve funding models and support higher care profitability.

• The business leverages data, digital innovation, and operational scale to enhance efficiency and resident experience.

• Over 2,500 units/beds in uncommitted developments and a flexible land bank provide optionality for brownfield and greenfield expansion.

Financial targets and capital management

• Targeting NZD 150 million in sustainable cash flow improvement by FY 2029, at the top end of the previously announced range.

• Aiming for NZD 500 million in cash release by FY 2029, driven by NZD 800 million from new and paid-out resale stock and at least NZD 200 million from land divestments.

• New capital management framework includes a gearing range of 20%-30% and a dividend policy of 20%-50% of CFEO, with dividends expected to resume from FY 2028.

• Retirement living segment targets a long-term yield of over 5%, while aged care aims for EBITDAF per bed of NZD 25,000–NZD 35,000 by FY 2029.

• Disciplined capital allocation and project IRR hurdles will guide future development, with a focus on brownfield expansion in New Zealand and greenfield in Australia.

Operational excellence and initiatives

• High-quality clinical care, resident experience, and workforce engagement are central to operational excellence.

• Operational excellence initiatives target occupancy uplift in developing villages, higher care premiums, and NZD 50–60 million in annualized cost savings by FY 2026.

• Sales effectiveness program is accelerating, with improved contract quality, reduced sales cycle times, and higher conversion rates.

• Flexible pricing and product innovation, especially in serviced apartments, aim to broaden market appeal and accelerate occupancy.

• New payment options, such as the Resident Fund, increase flexibility and capital retention.