Nib Holdings Ltd · ASX:NHF
Nib — Shareholder Meeting (October 2018)
32 slides from Nib's shareholder meeting presentation, Oct 31, 2018
Slide 1: 2018 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 31 October 2018 For personal use only Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 nib holdings limited 2018 Annual General
Slide 2: Annual General Meeting 31 October 2018
For personal use only ANNUAL GENERAL MEETING 31 OCTOBER 2018 ANNUAL G E NE RAL M E E T ING 2018 1
Slide 3: Steve Crane, Chairman
For personal use only Steve Crane Chairman ANNUAL G E NE RAL M E E T ING 2018 2
Slide 4: nib's Board and Executive
nib’s BOARD AND EXECUTIVE Steve Crane Chairman and Independent Non-Executive Director For personal use only Mark Fitzgibbon Managing Director and Chief Executive Officer Lee Ausburn Independent Non-Executive Director Jacqueline Chow Independent Non-Executive Director Anne Loveridge Independent Non-E
Slide 5: Meeting Agenda
For personal use only ITEM 1 Consideration of Reports ITEM 2 Remuneration Report MEETING ITEM 3 Election of Ms Jacqueline Chow AGENDA ITEM 4 Approval of Participation in Long-Term Incentive Plan ANNUAL G E NE RAL M E E T ING 2018 4
Slide 6: Chairman's Presentation
CHAIRMAN’S PRESENTATION For personal use only Steve Crane Chairman ANNUAL G E NE RAL M E E T ING 2018 5
Slide 7: Our Purpose: Your Better Health
OUR PURPOSE: YOUR BETTER HEALTH For personal use only Protecting our members against the financial risk of disease, sickness and injury Access to world-class healthcare wherever members are in the world Helping members better prevent, manage and treat illness ANNUAL G E NE RAL M E E T ING 2018 6
Slide 8: FY18 Group Results
FY18 GROUP RESULTS For personal use only GROUP UNDERLYING UNDERLYING OPERATING NET PROFIT AFTER TAX STATUTORY EARNINGS REVENUE PROFIT (UOP) (NPAT) PER SHARE (EPS)* $2.2b $184.8m $133.5m 29.4 cps 11.5% 20.2% 11.1% 8.0% ANNUAL G E NE RAL M E E T ING 2018 * nib’s statutory operating profit includes $15
Slide 9: Delivering Strong Shareholder Returns
DELIVERING STRONG SHAREHOLDER RETURNS For personal use only This return to shareholders reflects the ongoing success and growth of our business. Dividends Ordinary Special ^5.3% FY17vFY18 20.0 9.0 20.0 19.0 15.0 14.7 10.0 11.0 11.5 Dividend Reinvestment Plan 5.0 take up of almost 9% of issued capita
Slide 10: Australian Residents Health Insurance (arhi)
AUSTRALIAN RESIDENTS HEALTH INSURANCE (arhi) For personal use only arhi remains our core earnings driver. UNDERLYING OPERATING NET POLICYHOLDER HOSPITAL ADMISSIONS PROFIT GROWTH1 $130.7m 3.0% 282,508 up ACCOUNTED FOR >45% 22.1% INDUSTRY GROWTH2 ANCILLARY & DENTAL HIGHEST CLAIM NET PROMOTER SCORE1 VI
Slide 11: Adjacent Businesses
ADJACENT BUSINESSES For personal use only nib New Zealand, international students and workers and our travel insurance businesses. FY18 ADJACENT BUSINESS CONTRIBUTION TO GROUP UOP ~30% • Adjacent businesses create enterprise value and help us diversify our earnings as well as reduce concentration ri
Slide 12: Delivering Value to Members
DELIVERING VALUE TO MEMBERS We’ve worked hard in recent years and made good progress to address concerns For personal use only about healthcare affordability and costs. • Holding down premium inflation remains a top priority. • 2018 premium increase was the lowest in 15 years. • Last calendar year,
Slide 13: Government Reform
GOVERNMENT REFORM For personal use only ANNUAL G E NE RAL M E E T ING 2018 12
Slide 14: nib foundation
For personal use only • 2018 marks a decade since nib established its charitable foundation. • $25 million raised through the issue of new shares at the time of listing on the ASX. • Since 2008, nib foundation has donated over $17 million to organisations devoted to tackling health and wellbeing cha
Slide 15: Board and Management Succession Planning
BOARD AND MANAGEMENT SUCCESSION PLANNING For personal use only • Succession planning and ensuring we have the right skills mix, diversity and experience is a priority. • Retirement of Mr Phillip Gardner as a Non-Executive Director in August 2018 and appointment of Ms Jacqueline Chow in April 2018. A
Slide 16: Sustainability Principles
LEADERSHIP POPULATION AND HEALTH GOVERNANCE For personal use only SUSTAINABILITY ECONOMIC DEVELOPMENT NATURAL ENVIRONMENT AND EMPLOYMENT COMMUNITY SPIRIT ANNUAL G E NE RAL M E E T ING 2018 AND COHESION 15
Slide 17: Thank You
For personal use only THANK YOU ANNUAL G E NE RAL M E E T ING 2018 16
Slide 18: Managing Director's Report
MANAGING DIRECTOR’S REPORT For personal use only Mark Fitzgibbon Managing Director and Chief Executive Officer ANNUAL G E NE RAL M E E T ING 2018 17
Slide 19: Our Purpose: Your Better Health
OUR PURPOSE: YOUR BETTER HEALTH For personal use only $1.7b 258,868 1,093,125 total claims paid1 private hospital admissions dental visits 2,615,760 53,171 23,906 ancillary visits (excl dental) public hospital admissions travel claims processed2 Note: Claims figures above, excluding travel claims pr
Slide 20: Australian Residents Health Insurance (arhi)
AUSTRALIAN RESIDENTS HEALTH INSURANCE (arhi) For personal use only PREMIUM REVENUE UOP $1.9b ~10,000 members participating $130.7m up in health management up 12.1% programs 22.1% NET PROMOTER SCORE* NET POLICYHOLDER GROWTH* 28.7% 3.0% 2018 premium increase up lowest in 15 years 550bps (80)bps ANNUAL
Slide 21: nib New Zealand
nib NEW ZEALAND For personal use only PREMIUM REVENUE UOP $198.1m launch of NZ’s first Maori $23.4m population health insurance (0.6)% (0.4)% partnership with Ngāti Whātua Ōrākei NET POLICYHOLDER GROWTH NET PROMOTER SCORE 2.8% over 90% of providers 21.1% up participating in First Choice up 800bps Ne
Slide 22: International and New Business
INTERNATIONAL AND NEW BUSINESS For personal use only WNG GWP WNG UOP $142.0m WNG POLICYHOLDER SALES GROWTH $8.1m 7.3% up up 7.7% 8.0% iihi PREMIUM REVENUE iihi UOP $93.3m iihi POLICYHOLDER GROWTH* $29.6m up 24.7% 18.8% up 16.5% ANNUAL G E NE RAL M E E T ING 2018 * Excludes GU Health 21
Slide 23: Business Strategy
BUSINESS STRATEGY Personalised healthcare For personal use only Better “personalise” our relationship with members and customers and the products and services we connect them with through technology and data science. As such, become a trusted “health partner” as a means of enhancing the value propos
Slide 24: Sustainability Principles and Initiatives
LEADERSHIP POPULATION AND HEALTH GOVERNANCE For personal use only SUSTAINABILITY PRINCIPLES AND ECONOMIC INITIATIVES NATURAL DEVELOPMENT ENVIRONMENT AND EMPLOYMENT COMMUNITY SPIRIT ANNUAL G E NE RAL M E E T ING 2018 AND COHESION 23
Slide 25: Population Health
POPULATION HEALTH The quality of individual health is much influenced by that of the communities in which they live and work. For personal use only We pursue and invest in broad community-based programs which aim to tackle disease, lift health literacy and generally improve population health includi
Slide 26: Economic Development and Employment
ECONOMIC DEVELOPMENT AND EMPLOYMENT nib is a significant investor and employer in the many communities it operates, including outside of Australia and New For personal use only Zealand. Through our success as a business we create additional wealth in these communities and employment. We especially b
Slide 27: Natural Environment
NATURAL ENVIRONMENT The quality of the natural environments in which we live are similarly influential on people’s health. Clean For personal use only air and water, biodiversity and climate stability are all fundamental elements we seek to embellish. We have a particular interest in neutralising ou
Slide 28: Community Spirit and Cohesion
COMMUNITY SPIRIT AND COHESION Strong community spirit, cohesion and harmony are good for the psychological and physical wellbeing For personal use only of communities. We believe essential to that is a strong sense of identification with the community, social justice and tolerance and respect for ou
Slide 29: Leadership and Governance
LEADERSHIP AND GOVERNANCE The importance of having the highest standards of ethical practice and good governance in business and public For personal use only institutions is increasingly evident. The risks associated with our business operations and the potential consequences for communities and all
Slide 30: Outlook
OUTLOOK For personal use only Australian (arhi) and NZ markets remain difficult with modest growth due to macroeconomic factors including affordability and negligible growth in discretionary spending. Pursuing arhi net policyholder growth of 3%-4%, FY19 net margin expected to be similar to FY18. Fed
Slide 31: FY19 Guidance
FY19 GUIDANCE For personal use only FY19 UOP forecast to be at least $190m (statutory operating profit of at least $168m). • FY19 UOP forecast to be at ($m) FY19 least $190m (statutory Statutory operating profit ~168 operating profit of at least One-off transactions and M&A ~12.7 costs $168m). Amort
Slide 32: Thank You
For personal use only THANK YOU ANNUAL G E NE RAL M E E T ING 2018 31