NIB Holdings Ltd · ASX:NHF
NIB — Merger or Acquisition (July 2015)
8 slides from NIB's merger presentation, Jul 8, 2015
Slide 1: Acquisition of World Nomads Group
For personal use only Acquisition of World Nomads Group 8 July 2015
Slide 2: Transaction Overview
TRANSACTION OVERVIEW • For personal use only nib has agreed to acquire 100% of World Nomads Group (“WNG”) for $95.0 million on an enterprise value basis Transaction o Final price is subject to movements in net asset value based on completion accounts overview • Completion expected to occur in August
Slide 3: Travel Insurance Industry
TRAVEL INSURANCE INDUSTRY Summary Australian travel insurance market For personal use only Outbound travel has historically been resilient to • Australia is the fifth-largest travel insurance market globally shocks including exchange 900 rate volatility, geopolitical Value of travel insurance – GWP
Slide 4: World Nomads Group
WORLD NOMADS GROUP Summary GWP (FY15A) by geography For personal use only • Founded in 2000 and headquartered in Sydney 7% 2% • Specialises in the marketing, sale and distribution of travel insurance 2% policies globally, although Australia accounts for ~70% of GWP 3% Australia • Provides ancillary
Slide 5: Brands & Distribution Channels
BRANDS & DISTRIBUTION CHANNELS WorldNomads.com Travel Insurance Direct For personal use only • Unique B2C brand and global travel community targeting the • Mass-market B2C brand and leading provider of online, direct-to- passionate traveller consumer travel insurance in Australia, with a smaller pre
Slide 6: Financial Summary
FINANCIAL SUMMARY Financial summary For personal use only Policies (000s) Gross written premiums ($m) Total income ($m) 117 53 583 46 47 562 108 44 541 102 40 504 97 466 91 FY11A FY12A FY13A FY14A FY15A FY11A FY12A FY13A FY14A FY15A FY11A FY12A FY13A FY14A FY15E Normalised EBITDA1 ($m) Reported EBIT
Slide 7: Strategic Rationale
STRATEGIC RATIONALE For personal use only • nib seeks to leverage its brand, distribution and capabilities to grow earnings in "complementary" markets, Economies of especially those with strong growth prospects scope • Acquisition provides opportunity to cross-pollinate expertise in direct-to-consum
Slide 8: Immediate Priorities
IMMEDIATE PRIORITIES For personal use only • Retain key personnel and bed down new leadership arrangements • Smooth transition and minimise distraction to day to day operations • Begin extracting revenue and cost synergies • Undertake additional research and strategic review to further grow and expa