NIB Holdings Ltd · ASX:NHF
NIB — Shareholder Meeting (October 2013)
24 slides from NIB's shareholder meeting presentation, Oct 29, 2013
Slide 1: 2013 Annual General Meeting Presentation
nib holdings limited t 13 14 63 Head Office f 02 4925 1999 22 Honeysuckle Drive Newcastle NSW 2300 e nib@nib.com.au abn 51 125 633 856 w nib.com.au 29 October 2013 For personal use only The Manager Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Sub
Slide 2: For personal use only
For personal use only 1
Slide 3: Steve Crane, Chairman
STEVE CRANE Chairman nib
Slide 4: nib's Board & Executive
INTRODUCTION For personal use only nib’s BOARD & EXECUTIVE • HAROLD BENTLEY – Independent Non-Executive Director • DR ANNETTE CARRUTHERS – Independent Non-Executive Director • PHILIP GARDNER – Independent Non-Executive Director • CHRISTINE McLOUGHLIN – Independent Non-Executive Director • MARK FITZG
Slide 5: Meeting Schedule
MEETING SCHEDULE For personal use only • Chairman’s address • Managing Director’s address • Notice of Meeting • Consideration of Report for the financial year ended 30 June 2013 • Remuneration Report • Re-election of Non-Executive Director, Mr Steve Crane • Re-election of Non-Executive Director, Dr
Slide 6: FY13 Produced Another Solid Result
FY13 PRODUCED ANOTHER SOLID RESULT For personal use only • Strong top line growth • Disciplined cost control • Improved earnings per share • Stable return on equity • Success in broadening our business operations into new markets through our acquisition of TOWER Medical in New Zealand 5
Slide 7: Australian Residents Health Insurance
AUSTRALIAN RESIDENTS HEALTH INSURANCE For personal use only • Remains our primary economic driver. • Policyholder growth was 4.6%, against the industry growth rate of 3.1%. • This is the 12th consecutive year nib grew faster than the industry rate. • Premium revenue up 8.4%. • Results impacted by hi
Slide 8: nib's Reach
nib’s REACH For personal use only • In FY13 non-arhi earnings accounted for 20% of total net underwriting profit. 7
Slide 9: nib New Zealand
nib New Zealand For personal use only • nib acquired TOWER Medical Insurance Limited in November 2012. • It is New Zealand’s second largest health insurance business, with approximately 13% market share and provides health and medical insurance to around 160,000 New Zealanders. • The business was re
Slide 10: Investment Returns
INVESTMENT RETURNS For personal use only • Investment portfolio delivered returns above internal benchmarks, primarily on the back of strong equity market performance. • Net investment return for FY13 was $28.8 million or 5.8% • As at 30 June 2013, total net assets were $529.6 million. 9
Slide 11: Other Key Performance Metrics
OTHER KEY PERFORMANCE METRICS For personal use only • NPAT: $67.2 million • EPS: 15.3 cents • ROE: 21.6% 10
Slide 12: Total Shareholder Return
TOTAL SHAREHOLDER RETURN For personal use only Source: IRESS (as at 9 August 2013) Note: Assumes capital returns and dividends are re-invested at the payout date. • TSR for FY13 was 49.8%, which compared favourably to the ASX200 result of 22.8% • Since listing in 2007, nib’s TSR for the period is 27
Slide 13: Dividends
DIVIDENDS For personal use only • The Board declared FY13 full year dividends of 10.0 cents per share, fully franked. This compared with 9.25 cents per share, fully franked for FY12. • Our FY13 final dividend of 5 cents per share, fully franked was paid to shareholders on 5 October 2013. • The FY13
Slide 14: nib foundation
nib foundation For personal use only • nib foundation celebrates its fifth anniversary of grant making this year. • Has committed $10 million in funding that has helped establish 50 unique partnerships with Australian charities. • In FY13, the foundation announced 11 new community partnerships that
Slide 15: FY14 & Beyond
FY14 & BEYOND For personal use only • Strong and profitable growth remains a key focus for the board and management team. • As part of this determination to diversify our business and leverage our core strengths, we are now investigating opportunities associated with medical travel and outbound inte
Slide 16: Mark Fitzgibbon, Managing Director
MARK FITZGIBBON Managing Director nib
Slide 17: FY13 Result Summary
FY13 RESULT SUMMARY For personal use only • Solid overall with 14.8% top line growth (8.5% ex NZ), ROE of 21.6% and EPS of 15.3c (up 3.4%). • Result damaged by weak arhi performance and associated factors (e.g. insufficient approved premium increase). • arhi nevertheless grew ahead of system (4.6% v
Slide 18: FY14 & Beyond - Thematics
FY14 & BEYOND - THEMATICS For personal use only • Trends 1. We will increasingly spend more on our healthcare. 2. Unavoidably Governments will retreat their relative share of funding. 3. Cross border healthcare consumption will accelerate driven by unmet local demand, price competition, quality expe
Slide 19: FY14 & Beyond: Australian Residents Health Insurance
FY14 & BEYOND For personal use only • Australian Residents Health Insurance • Continued growth ahead of system and we remain a dominant force in the under 40s market. • We also achieve strong growth in the over 55s segment mainly courtesy of distribution partnerships. • Sustainable policyholder grow
Slide 20: FY14 & Beyond: nib New Zealand
FY14 & BEYOND For personal use only • nib New Zealand • Increase market participation in NZ and our share of market largely through direct to consumer efforts and related investment. • Growth investment mutes profitability in the initial years. • Performance in financial advisor and group employee c
Slide 21: FY14 & Beyond: International Workers Health Insurance
FY14 & BEYOND For personal use only • International workers health insurance (iwhi) • Continued policyholder growth and earnings similar to FY13. • Our net underwriting margin is in range 25-30%. • Business benefits from strong brand appeal and online capability both within Australia and overseas as
Slide 22: FY14 & Beyond: nib Options
FY14 & BEYOND For personal use only • nib Options • Seeks to capture opportunity in medical travel. • Initial efforts focused upon cosmetic surgery. Value proposition centred around trustworthiness, safety and choice. • Includes and encourages domestic surgery by plastic surgeons as an option. • Str
Slide 23: FY14 Guidance
FY14 GUIDANCE For personal use only • FY14 consolidated operating profit in the range of $73m to $80m (includes forecast of $3.1m in amortisation of acquired intangibles). • FY14 investment income forecast to be line with relevant internal benchmarks. 22
Slide 24: For personal use only
For personal use only 23