NIB Holdings Ltd · ASX:NHF
NIB — Shareholder Meeting (October 2019)
31 slides from NIB's shareholder meeting presentation, Oct 30, 2019
Slide 1: 2019 Annual General Meeting (AGM) Presentation
nib holdings limited t 13 14 63 Head Office f 02 4925 1999 22 Honeysuckle Drive Newcastle NSW 2300 e [email protected] abn 51 125 633 856 w nib.com.au 30 October 2019 For personal use only Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 nib holdings limited 2019 Annual General
Slide 2: Annual General Meeting 30 October 2019
For personal use only annual general meeting 30 October 2019
Slide 3: Steve Crane, Chairman
For personal use only Steve Crane Chairman ANNUAL GENERAL MEETING 2019 2
Slide 4: Welcome to country
For personal use only country welcome to
Slide 5: Steve Crane, Chairman
For personal use only Steve Crane Chairman ANNUAL GENERAL MEETING 2019 4
Slide 6: nib's board and executive
nib’s board and executive For personal use only Board Steve Crane Chairman and Independent Non-Executive Director Mark Fitzgibbon Managing Director and Chief Executive Officer Lee Ausburn Independent Non-Executive Director Jacqueline Chow Independent Non-Executive Director Anne Loveridge Independent
Slide 7: Meeting agenda
meeting agenda For personal use only Item 1 Consideration of Reports Item 2 Remuneration Report Item 3 Re-election of Mr Steve Crane Item 4 Re-election of Mr Donal O’Dwyer Item 5 Approval of participation in Long-Term Incentive Plan ANNUAL GENERAL MEETING 2019 6
Slide 8: Chairman's presentation
chairman’s presentation For personal use only Steve Crane Chairman ANNUAL GENERAL MEETING 2019 7
Slide 9: FY19 Group results
FY19 Group results For personal use only $2.4b $201.8m $149.3m total Group revenue Group UOP NPAT up 8.3% up 9.2% up 11.8% 32.9cps 23.0cps DRP statutory EPS full year dividend reinvestment dividend plan available for up 11.9% final dividend ANNUAL GENERAL MEETING 2019 8
Slide 10: Delivering strong shareholder returns
delivering strong shareholder returns For personal use only Continuing to deliver great value products and service to our members aligns with our obligations to shareholders. Dividends • Since 2007, our total shareholder return* is over 1,700%, compared to 66% for the ASX200 • Today our market capit
Slide 11: Our purpose: your better health
our purpose: your better health For personal use only 3,869,527 333,244 23,975 Largest claim Ancillary visits Hospital admissions Travel claims $310,000+ processed2 In excess of Rehabilitation ~2,300 members $1.8b 4,500 knee with claims admissions and hip Total claims paid3 ~35,000 replacements >$50
Slide 12: Assisting our members
assisting our members For personal use only We’re doing more to assist our members to make better healthcare decisions. Clinical Partners program First Choice Network (NZ) • Launched in Hunter Valley region • Network of medical professionals • Provides arhi members guaranteed no providing services a
Slide 13: Addressing healthcare challenges
addressing healthcare challenges For personal use only Healthcare is pivoting towards a technologically charged future of prevention rather than just cure • Affordability • Out of pocket costs in Australia accounts for ~$30 billion or 17% of health spending • High medical fee variation • Premium inc
Slide 14: PHI reforms and premiums
PHI reforms and premiums For personal use only Another important development during fiscal year 2019 was the Commonwealth Government’s PHI Reforms. • 54,000 members reduced their premiums through the age-based discount • 15,000 policies elected a higher $750 front end deductible • We have worked har
Slide 15: Sustainability at nib
sustainability at nib For personal use only We’re cognisant that companies and some industries are being scrutinised for their various environmental, social, governance and ethical practices. • Our broad geographic operating environment means we apply a Group-wide risk governance approach to meet ou
Slide 16: Closing the gap
closing the gap For personal use only Over the next four years nib foundation, utilising funds from unclaimed dividends, will be contributing $1 million in funding towards closing the health and life expectancy gap between Aboriginal and Torres Strait Islander peoples and non-indigenous Australians
Slide 17: Thank you
For personal use only thank you
Slide 18: Managing director's report
managing director’s report For personal use only Mark Fitzgibbon Chief Executive Officer & Managing Director
Slide 19: Business strategy
business strategy For personal use only Personalised Affordability and Grow the core Adjacent Racing the Red healthcare sustainability (arhi) businesses Queen (RRQ) . ANNUAL GENERAL MEETING 2019 18
Slide 20: FY19 group highlights
FY19 group highlights For personal use only Group underlying revenue Group UOP NPAT $2,421.6m up 8.3% $201.8m up 9.2% $149.3m up 11.8% Statutory EPS Return on invested capital Adjacent businesses contribution to Group UOP $32.9cps up 11.9% 19.1% 25.9% down 340bps ANNUAL GENERAL MEETING 2019 19
Slide 21: Australian residents health insurance (arhi)
Australian residents health insurance (arhi) For personal use only $2,013.2m Membership Membership premium revenue up 7.6% 607,388 growth 2.1% (1,176,155 lives) v industry 0.7% $149.5m GU Health NPS of 32.5 UOP up 14.4% integration (FY18: 28.7) ANNUAL GENERAL MEETING 2019 20
Slide 22: New Zealand
New Zealand For personal use only $215.5m Membership Membership premium revenue up 8.8% 110,121 growth 7.2% (213,061 lives) $19.8m 1st anniversary NPS of 34.0 UOP down 15.4% Ngāti Whātua (FY18: 21.1) Ōrākei ANNUAL GENERAL MEETING 2019 21
Slide 23: International (inbound) health insurance (iihi)
international (inbound) health insurance (iihi) For personal use only $110.1m Membership Membership premium revenue up 18.0% 172,357 growth 19.5% (188,324 lives) NPS $34.9m Product and UOP geographic International workers 41.5 (FY18: 42.7) up 17.9% diversification International students 34.6 (FY18:
Slide 24: nib Travel
nib Travel For personal use only $152.7m Completed QBE gross written premium1 Sales up 6.8% up 7.5% (International sales up 15.5%) Travel acquisition $6.6m Established UOP Ireland Managing NPS (Sales) 61.2 down 18.5% (FY18: 62.6) General Agent 1. nib Travel is a distributor of travel insurance and e
Slide 25: China JV
China JV For personal use only Established operations in Secured health service Tiajin and Shanghai (China) annual revenue ~$1 million Awaiting regulatory approval Team of ~25 people working for health insurance product as part of joint venture in China ANNUAL GENERAL MEETING 2019 24
Slide 26: Consumer empowerment
consumer empowerment For personal use only ANNUAL GENERAL MEETING 2019 25
Slide 27: From sickcare to healthcare
from sickcare to healthcare For personal use only System design and Past and contemporary technological challenges Benefits to nib Data science is rapidly systems respond to (and include: • healthier members enabling deeper insight of have learnt to monetise) • access, assembly and • stronger value
Slide 28: Sustainability principles
For personal use only sustainability principles ANNUAL GENERAL MEETING 2019 27
Slide 29: Outlook
outlook For personal use only arhi iihi New Zealand nib Travel China health insurance • Organic growth 2%-3% • Continued organic growth • Continued organic growth • Improved domestic sales • Further organic growth in per annum performance health management • Strong insurance margins • Insurance marg
Slide 30: Guidance
guidance For personal use only FY20 UOP forecast to be at least $200m 1 Statutory operating profit (SOP) of at least $180m ($m) FY20 Statutory operating profit ~ 180 One-off transactions and M&A costs ~9 Amortisation of acquired intangibles ~11 GU Health 2.7 IMAN 0.7 nib Travel 3.8 NZ 3.5 Underlying
Slide 31: Thank you
For personal use only thank you