Nib Holdings Ltd · ASX:NHF
Nib — Investor Presentation (October 2022)
39 slides from Nib's investor presentation, Oct 12, 2022
Slide 1: nib entry into NDIS Plan Management
nib entry into NDIS Plan Management 12 October 2022 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer Purpose This presentation (Presentation) is dated 12 October 2022 and has been prepared by nib holdings limited (ABN 51 125 633 856) (nib). This Presentation has been prepared in relation to an offer of new fully paid ordinary shares in nib (New Shares) pursuant to a
Slide 3: Important notice and disclaimer
Important notice and disclaimer No representation or warranty continued nib has undertaken a due diligence process in respect of the Transaction, which relied in part on the review of financial and other information provided by or on behalf of the vendors of Maple Plan. If any information provided t
Slide 4: Important notice and disclaimer continued
Important notice and disclaimer continued Not for release or distribution in the United States This Presentation may not be released or distributed in the United States. In particular, this Presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the
Slide 5: Important notice and disclaimer continued
Important notice and disclaimer continued Future performance and forward looking statements continued Actual results, performance or achievements may vary materially from any forward-looking statements and the assumptions on which statements are based. None of nib and its Beneficiaries gives any rep
Slide 6: Important notice and disclaimer continued
Important notice and disclaimer continued Lead Manager continued The Lead Manager, together with its related bodies corporate, shareholders or affiliates and each of their respective officers, directors, employees, affiliates, partners, associates, contractors, agents and advisers (together, the Lim
Slide 7: Acknowledgement of Aboriginal and Torres Strait Islander peoples
nib acknowledges Aboriginal and Torres Strait Islander peoples as the First Australians and pays respect to Elders past and present across all the lands on which we operate. We acknowledge the rich and meaningful contribution they make to life and culture in Australia, and we aim to be a partner in
Slide 8: Executive summary
Executive summary nib to raise ~$150m to fund its entry into NDIS Plan Management. ~$135m underwritten institutional placement and ~$15m share purchase plan (“SPP”). nib has assessed NDIS Plan Management and support coordination over 3 years and sees alignment with our role as a private health i
Slide 9: Executive summary (continued)
Executive summary (continued) nib announces the acquisition of Maple Plan on 12 October 20221, our first step to meet the needs of at least 50,000 Plan Management participants by 2025 Maple Plan is a well-established business, and the 7th largest Plan Manager. Maple Plan has an experienced manag
Slide 10: NDIS entry is aligned with Group strategy to deploy nib's capabilities into other sectors
NDIS entry is aligned with Group strategy to deploy nib's capabilities into other sectors NDIS entry consistent with strategy Executing our vision for growth We will add value for participants Apply data science for PHI expansion Enter and grow new markets deeper insight into including pursuing hi
Slide 11: NDIS is large, high-growth with further opportunity for Plan Management
NDIS is large, high-growth with further opportunity for Plan Management NDIS Plan Management valuet2 NDIS is large, high growth and structurally attractive 900 $893m 1,000 Plan management market size ($m) Total Scheme participants (‘000s) 800 900 • ~530k participants in FY22 expected to grow to +800
Slide 12: Plan Manager landscape
Plan Manager landscape Plan Managers and Support Coordinators are important Top 10 Plan Managers represent ~40%. Another ~1,200 to navigating an increasingly complex NDIS Plan Manager represent the remaining ~60% Estimated Estimated market nib ecosystem Plan Manager 1 participants ('000) share1 35.9
Slide 13: nib's NDIS vision builds on our capabilities in healthcare
nib’s NDIS vision builds on our capabilities in healthcare nib’s purpose is your better health and wellbeing. As a Plan Manager, we aim to help people living with disability and long-term health needs overcome their challenges, achieve their goals and improve the quality of their life. We do this th
Slide 14: How nib plans to build its NDIS business
How nib plans to build its NDIS business Execution plan Phase 1: current Phase 2: circa 1 year Phase 3: circa 2 years Phase 4: circa 2025 Roll–up of mid-sized Plan Invest in core technology Invest in adjacent At least 50,000 participants Managers platforms technology platforms • Achieved through str
Slide 15: Maple Plan represents a good start and solid foundation
Maple Plan represents a good start and solid foundation First acquisition in nib’s NDIS strategy with the aim to reach at least 50,000 participants by FY25. Well established, successful business with meaningful participant base, ~7,000, and growth track record. Participant-focused business, with
Slide 16: Maple Plan overview
Maple Plan overview Business overview Participants (#’000) • Maple Plan established in 2018. 6.8 • Based in Victoria, with ~60 employees. • Currently ~7,000 NDIS plan participants, estimated at 2% of Plan Manager market. 5.7 • Fast growing, loyal participant base, mostly in Victoria and expanding in
Slide 17: Equity raising – Placement and SPP overview
Equity raising – Placement and SPP overview • Fully underwritten1 institutional placement to raise approximately $135 million (Placement) Placement offer structure and size • Issue of approximately 19.6 million new shares under the placement, representing approximately 4.3% of nib’s ordinary shares
Slide 18: Equity raising – timetable
Equity raising – timetable1 Event Date Record date for SPP Tuesday, 11 October 2022 Trading halt and announcement of the Placement Wednesday, 12 October 2022 Placement bookbuild Wednesday, 12 October 2022 Announcement of the outcome of the Placement Thursday, 13 October 2022 Trading halt lifted Thur
Slide 19: nib 1Q23 update
nib 1Q23 update Consolidated ($m) 1Q23 1Q22 Chg $ Chg % nib Group continues to perform strongly Net premium revenue - reported 692.3 669.5 22.8 3.4% • 1Q23 UOP $64.3m (PCP $63.8m). Both were strong Adjust for giveback accrual 35.5 13.6 quarters experiencing low claims and strong gross Net premium re
Slide 20: nib 1Q23 update
nib 1Q23 update As at As at Variance to (#) 30/09/22 30/09/21 PCP • arhi continues strong performance. Policies grew Policyholders - arhi 675,188 648,981 4.0% 9,415 in 1Q23 which was the strongest quarter since Policyholders - iihi 169,076 171,151 (1.2)% June 2015. Last 12-month growth rate of 4.0%.
Slide 21: Questions and answers
Questions and answers CELEBRATING 70 YEARS.
Slide 22: Appendix A – key risks
Appendix A - key risks CELEBRATING 70 YEARS.
Slide 23: Key risks
Key risks This section discusses some of the key risks associated with an investment in nib and the shares issued under the Placement and the SPP, and the Transaction. Before investing in nib, you should be aware that an investment in nib has a number of risks, some of which are specific to nib and
Slide 24: Key risks continued
Key risks continued Risk description Risk management strategies Government policies and regulations nib is subject to risks relating to potentially significant and/or unexpected changes to the regulatory policy settings and incentives for private health insurance, for example the risk equalisation a
Slide 25: Key risks continued
Key risks continued Risk description Risk management strategies COVID-19 pandemic and future outbreaks of The COVID-19 pandemic has had significant impacts on nib's financial performance and has caused significant disruption to all other communicable diseases or pandemics of nib's business activitie
Slide 26: Key risks continued
Key risks continued Risk description Risk management strategies Business continuity Risks of events such as natural disasters or a major failure or inadequacy in information technology systems may have an adverse impact on nib’s earnings, assets and reputation. Other notable types of operational ris
Slide 27: Key risks continued
Key risks continued Risk description Risk management strategies Regulatory compliance and legal risks Nib operates in a highly regulated business environment. Private health insurers must be registered and must comply with a variety of obligations in relation to the conduct of that business includin
Slide 28: Key risks continued
Key risks continued Risk description Risk management strategies Operational risk nib is exposed to a variety of operational and general risks. Exposure to unexpected financial and non-financial losses arising from the way in which nib conducts its business operations may have an adverse effect on th
Slide 29: Key risks continued
Key risks continued Risk description Risk management strategies Merger and acquisition opportunities nib has a strategy of pursuing inorganic growth through pursuing merger and acquisition opportunities. The pursuit of merger and acquisition opportunities carries with it risks and there is no guaran
Slide 30: Acquisition specific risks
Acquisition specific risks Risk description Risk management strategies Completion risk The acquisition of Maple Plan is conditional on a number of matters including certain third party consents and agreements and no material adverse change having occurred in relation to Maple Plan. If these conditio
Slide 31: Acquisition specific risks continued
Acquisition specific risks continued Risk description Risk management strategies Contract risk The acquisition of Maple Plan may trigger change of control clauses in some material contracts to which Maple Plan is a party. Where triggered, the change of control clause will often require nib to seek t
Slide 32: Appendix B – placement agreement summary
Appendix B – placement agreement summary
Slide 33: Summary of Placement Agreement
Summary of Placement Agreement nib has appointed J.P. Morgan Securities Australia Limited (ABN 61 003 245 234 / AFSL 238066) (Lead Manager) to act as sole bookrunner, lead manager and underwriter of the Placement pursuant to the terms of a placement agreement entered into between nib and J.P. Morgan
Slide 34: Summary of Placement Agreement continued
Summary of Placement Agreement continued • any of the following occurs: • a general moratorium on commercial banking activities in Australia, the United States, Hong Kong or the United Kingdom is declared by the relevant central banking authority in any of those countries, or there is a material dis
Slide 35: Appendix C – international offer restrictions
Appendix C – international offer restrictions
Slide 36: International offer restrictions
International offer restrictions New Zealand 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"). The New Shares are not being offered or sold in New Zealand (or allotted with a view to bei
Slide 37: International offer restrictions continued
International offer restrictions continued 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 Kong, nor has it been authorised by the Securities and Futures Commission in
Slide 38: International offer restrictions continued
International offer restrictions continued United Arab This document does not constitute a public offer of securities in the United Arab Emirates and the New Shares may not be offered or sold, directly or Emirates indirectly, to the public in the UAE. Neither this document nor the New Shares have be
Slide 39: Thank you
Thank you CELEBRATING 70 YEARS.