Nib Holdings Ltd · ASX:NHF
Nib — Shareholder Meeting (November 2015)
25 slides from Nib's shareholder meeting presentation, Nov 4, 2015
Slide 1: ASX cover letter: 2015 AGM presentation and FY16 guidance update
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 4 November 2015 For personal use only The Manager Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Sub
Slide 2: Annual General Meeting 2015
ANNUAL GENERAL MEETING 2015 / For personal use only 4 NOVEMBER 2015
Slide 3: Steve Crane, Chairman
ANNUAL GENERAL MEETING 2015 / 2 For personal use only STEVE CRANE CHAIRMAN
Slide 4: nib's Board and Executive
ANNUAL GENERAL MEETING 2015 / 3 nib’s Board and Executive For personal use only • Independent Non-Executive Director, STEVE CRANE • Independent Non-Executive Director, LEE AUSBURN • Independent Non-Executive Director, HAROLD BENTLEY • Independent Non-Executive Director, DR ANNETTE CARRUTHERS • Indep
Slide 5: Agenda
ANNUAL GENERAL MEETING 2015 / 4 For personal use only Agenda STEVE CRANE | CHAIRMAN MARK FITZGIBBON | MANAGING DIRECTOR ITEM 1 - CONSIDERATION OF REPORTS ITEM 2 - REMUNERATION REPORT ITEM 3 - RE-ELECTION OF PHILIP GARDNER ITEM 4 - APPROVAL OF PARTICIPATION IN LONG-TERM INCENTIVE PLAN
Slide 6: Solid FY15 Group Results
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 5 Solid FY15 Group Results For personal use only Net Premium Revenue Operating Profit Net Profit After Tax $m $m $m
Slide 7: FY15 Dividend Payment
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 6 FY15 Dividend Payment For personal use only • FY15 fully franked ordinary dividends of 11.5 cents per share; up on last year’s dividend of 11.0 cents per share. • Represents a payout ratio of 67% of after tax earnings. • Consistent with divid
Slide 8: FY15 arhi Performance
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 7 FY15 arhi Performance For personal use only • Against a backdrop of cautious consumer spending, we continued to grow our customer base across the business. • Net increase of more than 23,000 policyholders during the last financial year. • We
Slide 9: FY15 Non-arhi Business Performance
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 8 FY15 Non-arhi Business Performance For personal use only • The expansion and success of our adjacent businesses in FY15, and in turn their pre-tax earnings, accounted for 12.1% of our total operating profit. • The result was actually down on
Slide 10: World Nomads Acquisition
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 9 World Nomads Acquisition For personal use only • Acquisition of World Nomads Group was completed on 31 July 2015. • Third largest distributor of travel insurance in Australia and specialises in the marketing, sale and distribution of travel i
Slide 11: FY15 Net Investment Returns
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 10 FY15 Net Investment Returns For personal use only • Investment portfolio again delivered against our internal benchmarks for the year, which resulted in a net investment return of $31.4 million, or 5.8%. • When you exclude the benefit from t
Slide 12: Governance and Risk Management
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 11 Governance and Risk Management For personal use only • Good governance, a focus upon return on invested capital, and managing the risks implicit in our portfolio of businesses remain priorities for the Board. • Continue to apply risk-based ‘
Slide 13: Total Shareholder Returns
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 12 Total Shareholder Returns For personal use only Total shareholder returns since listing to the end of FY15 Source: IRESS (as at 30 June 2015) Note: Assumes capital returns and dividends are re-invested at the payout date VS nib S&P/ASX200 in
Slide 14: nib foundation
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 13 nib foundation For personal use only • Since its inception in 2008, nib foundation has committed $14.9 million in grant funding to more than 80 charities. • The focus of this funding has been on health challenges faced by young people and ca
Slide 15: Succession planning for Execs and Non-Executive Directors
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 14 Succession planning for Execs and Non–Executive Directors For personal use only • A key priority for the Board. • Board has great confidence in the Executive Team. • Remain mindful of ‘independence and appropriate skill mix’. • Will appoint
Slide 16: Retiring Non-Executive Director – Dr Annette Carruthers
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 15 Retiring Non-Executive Director – Dr Annette Carruthers For personal use only • Appointed to the Board of nib health funds limited in 2003. • An outstanding contributor over the past 12 years. • Overseen much change and growth within the bus
Slide 17: Mark Fitzgibbon, Managing Director
ANNUAL GENERAL MEETING 2015 / 16 For personal use only MARK FITZGIBBON MANAGING DIRECTOR
Slide 18: FY15 Group Performance Highlights
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 17 FY15 Group Performance Highlights For personal use only Operating Profit Net Profit after Tax $m $m nib is a major sponsor of the Geelong Cats.
Slide 19: FY15 Group Performance Highlights
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 18 FY15 Group Performance Highlights For personal use only Earnings Per Share Return On Equity Dividends and Capital Management cps % cps
Slide 20: FY15 Contribution to Group Operating Profit
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 19 FY15 Contribution to Group Operating Profit For personal use only FY15 Contribution to Group Operating Profit $m nib is a major sponsor of the Newcastle Knights.
Slide 21: arhi – nib vs Industry Growth
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 20 arhi – nib vs Industry Growth For personal use only arhi – nib vs Industry Growth % Source: nib/APRA • nib continues to outperform industry in terms of net policyholder growth. • nib holds a strong position in the under 40s market*
Slide 22: FY15 International and New Business
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 21 FY15 International and New Business For personal use only • nib New Zealand growing after a decade of policyholder decline. Policyholder growth of 5.9%.Underlying operating profit of $8.7m impaired by legacy Premium Payback product.
Slide 23: Digital in FY15
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 22 Digital in FY15 For personal use only We made significant investment in our IT and digital strategy, especially recognising the potential of the ‘digital era’ to disrupt the healthcare market and create opportunities. • Will help cu
Slide 24: FY16 Outlook
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 23 FY16 Outlook For personal use only • arhi organic growth target of 1.5-2x system within range of 5.0-5.5% net profit margin. • Impending private health insurance review a significant net positive. • International (Inbound) Health In
Slide 25: FY16 Guidance
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 24 FY16 Guidance For personal use only • nib has updated FY16 operating profit guidance following better ($m)! FY15 FY16 (actual)! (forecast)! than expected performance in the first quarter of the financial Statutory operating profit!