Nib Holdings Ltd · ASX:NHF
Nib — Merger or Acquisition (September 2017)
20 slides from Nib's merger presentation, Sep 20, 2017
Slide 1: nib to acquire GU Health
For personal use only nib to acquire GU Health Investor Presentation 20 September 2017
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation (Presentation) has been prepared by nib Holdings Limited (ABN 51 125 633 856) (nib) in relation to an offer of new fully paid ordinary shares in nib (New Shares) pursuant to an institutional placement (Placement) and a share purchase For personal use
Slide 3: Important notice and disclaimer
Important notice and disclaimer Past Performance: Past performance and pro-forma historical information in this Presentation is given for illustrative purposes only and should not be relied upon (and is not) an indication of future performance including future share price information. For personal u
Slide 4: Transaction highlights
Transaction highlights • nib has entered into an agreement to acquire specialist corporate private health insurer Grand United Corporate Health Limited (GU Health) for a total For personal use only consideration of $155.5 million1 from Australian Unity Limited (the Acquisition) • The transaction wil
Slide 5: Corporate PHI market overview
Corporate PHI market overview For personal use only Market overview Industry characteristics • nib estimates that the Australian corporate private health insurance (PHI) • Low level of corporate client turnover due to business-to-business model market could be between 300,000 and 500,000 policyholde
Slide 6: GU Health overview
GU Health overview Overview Revenue breakdown (FY16)1 For personal use only • GU Health is Australia’s only established specialist corporate health insurance provider HRB HIB hospital • A leading provider of highly customised employee health insurance solutions with 20+ 12% treatment years experienc
Slide 7: Strategic rationale
Strategic rationale • GU Health represents a compelling strategic fit For personal use only • Accelerates nib’s corporate health insurance capabilities, after expanding its offering over the past 2-3 years through the launch of new products • Adds materially to nib’s Australian residents (arhi) and
Slide 8: GU Health acquisition meaningfully builds nib's corporate capability
GU Health acquisition meaningfully builds nib’s corporate capability For personal use only Results in combined policyholders of ~80,000, approximately doubling nib’s existing number of policyholders1 Positions nib as a market leading “top tier” corporate group health insurer Highly diversified polic
Slide 9: Potential regulatory reform
Potential regulatory reform PHI reforms and potential regulatory changes anticipated to be a net positive For personal use only • Further reductions to prostheses prices • Redefinition of minimum cover and introduction of Gold/Silver/Bronze • Removal of second tier default benefits • Private patient
Slide 10: Immediate priorities and outlook
Immediate priorities and outlook For personal use only Immediate priorities • Efficiently transition business from Australian Unity to nib • Ensure seamless transition of customers and employees during the integration period • Commence extracting cost synergies and crystallising any revenue opportun
Slide 11: Equity raising details
Equity raising details Indicative timetable For personal use only Overview • nib has launched a fully underwritten equity placement to institutional Event Date investors to raise $60 million (Placement) 7.00pm Sydney time, Tuesday 19 • Issue price will be determined through a variable price bookbuil
Slide 12: Questions & Answers
For personal use only Questions & Answers
Slide 13: Appendix A – Key risks
For personal use only Appendix A – Key risks
Slide 14: Key risks
Key risks GENERAL RISKS For personal use only Set out below are general risks applicable to nib. Many of these risks are also applicable to GU Health, including under nib's ownership. nib’s performance is impacted by Australian economic conditions such as inflation, interest rates, consumer and busi
Slide 15: Key risks (cont'd)
Key risks (cont’d) Compliance with regulation nib is subject to a high degree of regulation concerning how private health insurers and their contractual counterparties conduct their health insurance business. Private For personal use only health insurers must be registered and must comply with a var
Slide 16: Key risks (cont'd)
Key risks (cont’d) ACQUISITION SPECIFIC RISKS For personal use only Completion risk The acquisition of GU Health is conditional on a number of matters including certain third party consents and agreements. If these conditions are not satisfied or waived, the Acquisition will not complete. There may
Slide 17: Appendix B – International offer restrictions
For personal use only Appendix B – International offer restrictions
Slide 18: International offer restrictions
International offer restrictions For personal use only New • This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). Zealand • The New Shares in the share purchase plan offer are not being off
Slide 19: International offer restrictions (cont'd)
International offer restrictions (cont’d) Hong Kong • WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong For personal use only Kong, nor has it been authorised by the Securities an
Slide 20: Thank you
For personal use only Thank you
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