Discovery Limited · JSE:DSY
Discovery — Investor Day (September 2020)
172 slides from Discovery's investor day presentation, September 2020
Slide 1: Discovery Day 2020
DISCOVERYDAY 2020 ADRIAN GORE
Slide 2: Year in review: financial performance and strategic priorities
YEAR IN REVIEW | FINANCIAL PERFORMANCE AND STRATEGIC PRIORITIES 1 Resilient operating performance 2 Financial prudence; COVID-19 reserve 3 Robust growth engine; investments in new businesses with good traction 4 Focus on capital strength and liquidity
Slide 3: Resilient operating performance
RESILIENT OPERATING PERFORMANCE
Slide 4: SA businesses: strong operational performance
SA BUSINESSES | STRONG OPERATIONAL PERFORMANCE 495k >3.5m R2 286m +2% +5% Accounts Members under administration New business Core new business API New business API 2016 2017 2018 2019 2020 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 J A S O N D J F M A M J J A S 2016 2017 2
Slide 5: Actuarial dynamics within expectation
ACTUARIAL DYNAMICS WITHIN EXPECTATION Paid up 150% 150% 150% 150% 130% 130% 130% 130% – vs expected 110% 110% 110% 110% Lapses 90% 90% 90% 90% 70% 70% 70% 70% 50% 50% 50% 50% 30% 30% 30% 30% 10% 10% 10% 10% -10% -10% -10% -10% Jan Feb Mar Apr May June Jan Feb Mar Apr May June Jan Feb Mar Apr May Jun
Slide 6: Financial prudence
FINANCIAL PRUDENCE
Slide 7: R3.4bn COVID-19 reserve
FINANCIAL PRUDENCE | R3.4BN COVID-19 RESERVE INFORMED BY DISCOVERY’S EXPERIENCE, OUTBREAK TRENDS AND THE ECONOMIC BACKDROP Experience Outbreak from membership projections for R3.4bn base South Africa reserve created to cater for Economic Global trends all future COVID-19 stress and outbreak impacts
Slide 8: Significant prudence applied; COVID-19 reserve sufficient
SIGNIFICANT PRUDENCE APPLIED; THE COVID-19 RESERVE IS APPROPRIATE AND SUFFICIENT FOR A POTENTIAL SECOND WAVE Modelled 3 scenarios R-factors Actual deaths vs projected Actual progression Cumulative deaths Cumulative Discovery Life deaths 120,000 46% population 3 500 13% ofprovision total life claims
Slide 9: Organic growth engine
ORGANIC GROWTH ENGINE
Slide 10: The organic growth methodology
THE ORGANIC GROWTH METHODOLOGY Normalised operating profit before Rm reserving for future COVID-19 impacts Normalised operating profit +5% +5% +25% -8% R9.9bn -14% R7.6bn -14% ESTABLISHED +104% +15% +9% -13% -49% -147% ~5 years +59% Investment +91% R736m of 10% of EMERGING profit +72% +74% ~5 years
Slide 11: Substantial spend on new businesses; considerable traction
SUBSTANTIAL AND PLANNED SPEND ON NEW BUSINESSES; SEEING CONSIDERABLE TRACTION Majority on Bank VitalityInvest Umbrella DBI Vitality1 Funds Breakdown of FY20 operating loss £16-20m R5.6bn R12-15m 12 Monthly new Committed assets Monthly new New over next 21 months business run rate business run rate 1
Slide 12: Global trends transforming insurance markets
GLOBAL TRENDS HAVE THE POWER TO TRANSFORM INSURANCE MARKETS AND HAVE BEEN ACCELERATED BY COVID-19 “It’s time to tie bank profits to customers’ Banking financial health” • The rise of digital “We want revolutionary actuaries” Tesla launching • Ways of work Motor insurance company - premiums based on
Slide 13: Shared value is consistent with global trends
SHARED VALUE IS CONSISTENT WITH GLOBAL TRENDS Institution Value Incentive ∆ Behaviour Bent (qx) Value = × × × Member Member Incentive ∆ Behaviour Bent (qx) Shared- Vitality Make people Programs Product Value chassis healthier
Slide 14: Key themes framing the product updates
KEY THEMES FRAMING THE PRODUCT UPDATES Wellness and health: Physical activity, age & behavioral EMPLOYEE risks HEALTH LIFE INVEST BANK INSURE BENEFITS Accelerated digitisation: Big Data, platforms, journeys, access Focus on value and quality: Clinical relevance Monetise healthy More ways to get heal
Slide 15: HEALTH LIFE INVEST
EMPLOYEE HEALTH LIFE INVEST BANK INSURE BENEFITS COMPOSITE ASSETS MARKETING SUPPORT
Slide 16: A bank for people who manage their money well
A bank for people who manage their money well Money
Slide 17: 14 months since public launch of Discovery Bank
Accounts Deposits Credit Discovery Miles Credit limits awarded Discovery Miles earned S OND J FMAM J J A S S OND J FMAM J J A S S OND J FMAM J J A S S OND J FMAM J J A S 14 MONTHS SINCE THE PUBLIC LAUNCH OF DISCOVERY BANK
Slide 18: The model is working
The model is working Fast paced learning Shared-value Diamond clients have a lower arrears rate Blue Bronze Silver Gold Diamond higher deposit levels Money Blue Bronze Silver Gold Diamond Drive greater spend Blue Bronze Silver Gold Diamond
Slide 19: Shared-value banking, Vitality Money 2.0
Shared-value Banking Vitality Money 2.0 Dynamic Interest Rates Dynamic Discounts to Healthy Behaviours Travel Discovery Miles
Slide 20: Set up bank account and Vitality Money quickly
Set up your bank account and Vitality Money in as little as
Slide 21: Banking functionality
Banking Functionality Account management Payments Statements Add and manage accounts Transfer funds View and download Upgrade card colours Real-time digital payments statements View and hide accounts Manage scheduled payments Certified bank stamped View account history Purchase prepaid products stat
Slide 22: Pay any Vitality member instantly
Pay any Vitality member instantly using just their cellphone number Discovery Pay logo in your contact list lets you know who is eligible Deposited into existing bank accounts used for Vitality rewards Enhanced privacy and security with no sharing of account details In-app dynamic filtering of trans
Slide 23: Simplified Vitality Money activation
Simplified Vitality Money activation in 3 steps Learn more about Vitality Money in app Enhanced retirement calculator New Risk Assessment tool
Slide 24: Tap to see the impact of behaviour change
Tap to see the impact of behaviour change Behavioural nudges to perform better Explanations of how each behaviour works Enhanced document submission
Slide 25: Shared-value rewards
Shared-value rewards SS Dynamic Interest Rates ‘@) 6% 3.75% 4.75% — Borrowing Positive Savings rate balances accounts Discovery Miles balance 4) 60 000
Slide 26: In the market for clients who manage money well
5% Money in the market for clients who Money manage their money well 11.75% Money
Slide 27: HealthyLiving, HealthyFood, HealthyCare
HealthyLiving Up to 75% HealthyFood HealthyCare
Slide 28: Vitality Money progress
100% to 100% 85% 85% progress for next month 45% 1 Vitality Money Spend
Slide 29: Miles earn rates by Discovery Bank product
Miles for Healthy behaviour earn rate is dependent on your Discovery Bank product, Vitality Money status and qualifying monthly credit card spend 100% 100% 80% Maximum earn 20% Maximum earn Maximum earn rate for a Suite rate for a Suite rate for a Suite 40% 60% 100% 25% 27.5% 30% 65% 30% 60% 37.5% 3
Slide 30: Hotels and car hire benefits open for bookings
Hotels and car hire benefits are Vitality members get early booking Priority Fast Track at OR Tambo and now open for bookings access when domestic flights reopen Cape Town International Airports International arrivals fast track available from November 2020
Slide 31: Maximum Vitality Money local flight rewards
75% Get your maximum Vitality Money local flight rewards for your bank product and Vitality Money status until end of November 2020 75% up to off 25% 37.5% Vitality Money status Discovery Bank Suites on Diamond Vitality Health status Vitality Health Vitality Money Spend 50% 60% 46% 53% 65% 44% 50% 5
Slide 32: Up to 20% discount on prepaid products
Get up to 20% discount when you spend Vitality 5% Discovery Miles in the Vitality Mall, online and on Money prepaid products and services Discovery 5% Bank Suite Vitality Drive 5% Vitality Health 5% ∑ 20%
Slide 33: Dynamic interest rates and healthy behaviours
Money Money 9.75% 2.75% 3.75% 5% Dynamic Interest Rates 55% 75% Healthy Living 40% 50% Fuel and Uber 9% 20% Local travel 59% 75% International 44% 75% Travel Healthy Behaviours 65% pts = 100% pts = Discovery Miles R40 : D1 R R15 : D1 R 20% 20%
Slide 34: HEALTH LIFE INVEST
EMPLOYEE HEALTH LIFE INVEST BANK INSURE BENEFITS COMPOSITE ASSETS MARKETING SUPPORT
Slide 35: Discovery Health
DISCOVERY HEALTH DISCOVERY HEALTH MEDICAL SCHEME DR RYAN NOACH
Slide 36: Four themes: utilisation, technology, quality care, access
Utilisation discontinuity: Technology: Quality care: Access: balancing the equilibrium enabling digital healthcare between long-term sustainability services leveraging platforms benefit changes to drive expanding access to and short-term affordability and Big Data positive outcomes affordable health
Slide 37: Four themes: utilisation, technology, quality care, access
Utilisation discontinuity: Technology: Quality care: Access: balancing the equilibrium enabling digital healthcare between long-term sustainability services leveraging platforms benefit changes to drive expanding access to and short-term affordability and Big Data positive outcomes affordable health
Slide 38: COVID-19 has created a discontinuity in utilisation trends
COVID-19 HAS CREATED A DISCONTINUITY IN UTILISATION TRENDS New COVID-19 Demand 140% 120% 100% 80% 60% 40% 20% New COVID-19 Demand 0% Pre Covid Mar-20 Jun-20 Sep-20 Dec-20
Slide 39: COVID-19 has created a discontinuity in utilisation trends
COVID-19 HAS CREATED A DISCONTINUITY IN UTILISATION TRENDS New COVID-19 Lower Non- Lower Non- Demand COVID-19 Demand COVID-19 Supply 140% 120% Non-COVID-19 demand lower than Pre-COVID: Pre-COVID-19 Levels 100% Admissions Out-of-Hospital Overall non-COVID demand 80% Non-COVID supply 60% Non-COVID-19
Slide 40: COVID-19 has created a discontinuity in utilisation trends
COVID-19 HAS CREATED A DISCONTINUITY IN UTILISATION TRENDS New COVID-19 Lower Non- Lower Non- Favourable net impact on Demand COVID-19 Demand COVID-19 Supply scheme reserves 140% 120% Non-COVID-19 demand Reserves (Rand billion) lower than Pre-COVID: Pre-COVID-19 Levels 27.5 100% Admissions +36% Out-
Slide 41: Anticipated return of latent non-COVID-19 demand in 2021
ANTICIPATED RETURN OF LATENT NON-COVID-19 RELATED DEMAND IN 2021 New COVID-19 Lower Non- Lower Non- Return of non-COVID-19 Demand COVID-19 Demand COVID-19 Supply latent demand 140% 120% Pre-COVID-19 Levels 100% 80% Higher ongoing healthcare Demand and supply funding demand due to: 60% return to pre-
Slide 42: 2021 contribution increase strategy
2021 CONTRIBUTION INCREASE STRATEGY Contribution increases 10% 8% 6% Annual CPI (FL: 2017 – 2020) 4% 2% 0% 2017 2018 2019 2020 2021 H1 2021 H2
Slide 43: 2021 contribution increase strategy
2021 CONTRIBUTION INCREASE STRATEGY Contribution increases 2021 H1 drivers 10% 3.9% -1.6% 8% -0.8% 6% -1.5% 4% 2% 0% Contribution freeze 0% 2017 2018 2019 2020 2021 H1 2021 H2 Demand-side Supply-side Risk Tariff Net inflation inflation management
Slide 44: 2021 contribution increase strategy
2021 CONTRIBUTION INCREASE STRATEGY Contribution increases 2021 H2 drivers 10% 8% Maximum increase of CPI + 2% ~ 5.9% 6% 5.9% +1.2% -1.5% +3.9% 4% +2.3% 2% Contribution freeze 0% 2017 2018 2019 2020 2021 H1 2021 H2 Demand-side Supply-side Risk Tariff Net inflation inflation management
Slide 45: 2021 contribution increase strategy
2021 CONTRIBUTION INCREASE STRATEGY Contribution increases 0% contribution increase 10% from January to June 8% Maximum CPI+2% (5.9%) increase for July to December Maximum increase of CPI + 2% ~ 5.9% 6% <3% average increase for 2021 4% Weighted average increase of <3% for 2021 2% Contribution freeze
Slide 46: Four themes: utilisation, technology, quality care, access
Utilisation discontinuity: Technology: Quality care: Access: balancing the equilibrium enabling digital healthcare services between long-term sustainability leveraging platforms, Big Data and benefit changes to drive expanding access to and short-term affordability innovative technology positive out
Slide 47: Introducing Discovery Connected Care
INTRODUCING DISCOVERY CONNECTED CARE Access to connected healthcare across the care continuum High quality home-based care delivered through Discovery assets and partnerships Personalised experience enabled by a range digital healthcare solutions Underpinned by DHMS benefits
Slide 48: Transforming healthcare delivery across the continuum
TRANSFORMING HEALTHCARE DELIVERY ACROSS THE CONTINUUM For Home | For Work For Chronics For Acute Care On-demand medical examinations Educational material Sophisticated clinical insights Virtual consultations Remote monitoring devices Tools for healthcare professionals E-scripting Personalised coachi
Slide 49: Connected Care for Home
ENABLING ON-DEMAND OUT-OF-HOSPITAL HEALTHCARE DELIVERY AT HOME THROUGH CONNECTED CARE FOR HOME Detailed medical examinations and advanced 24/7 doctor support virtual consultations Discovery TytoCare Dr Network
Slide 50: Connected Care for Home powered by TytoCare
CONNECTED CARE FOR HOME POWERED BY TYTOCARE Ty t oH o m e by Ty t o C a re 20% discount for all Discovery clients AND Award-winning, mobile medical device enabling scheme funding remotely-guided virtual for qualifying DHMS members consults with a GP – anytime, anywhere. Retail price R7 855 incl. V
Slide 51: Connected Care for Home
ENABLING ON-DEMAND OH HEALTHCARE DELIVERY AT HOME THROUGH CONNECTED CARE FOR HOME Detailed medical examinations 24/7 doctor support End-to-end digital experience Including e-scripting, same-day medicine and advanced virtual consultations Discovery TytoCare Dr Network delivery and automatic EHR updat
Slide 52: Connected Care for Chronic Illness
EMPOWERING PATIENTS AND PROVIDERS THROUGH CONNECTED CARE FOR CHRONIC ILLNESS Access to condition- Advanced integrated DHMS benefits Member support specific content reporting Interactive and intuitive 100% funding for remote Clinical and lifestyle metrics Personalised coaching and digital educational
Slide 53: Clinical and data insights for care at home for acute cases
CONVERGENCE OF CLINICAL AND DATA INSIGHTS TO OFFER HIGH QUALITY CARE AT HOME FOR ACUTE CASES CLINICAL DATA ANALYTICS TOOLS CODING CLASSIFICATIONS CLINICAL Enables SCHEMAS AND TOOLS GROUPERS Clinical criteria for the safe treatment of low acuity conditions Home-based care for members who are at risk
Slide 54: Introducing Connected Care for Acute Care
INTRODUCING CONNECTED CARE FOR ACUTE CARE 24/7 GP-oversight panel for immediate care and advice Detailed clinical assessment to ensure patient safety and subsequent eligibility Library with condition specific and procedural content Integrated management dashboard for live monitoring by End-to-end di
Slide 55: Connected Care for Work
HEALTHCARE DELIVERY TO THE WORKPLACE THROUGH CONNECTED CARE FOR WORK The enhancements to the onsite clinic offering allows: Advanced diagnostic care with HEALTHCARE COVER Tyto Care Digital booking platform and HEALTH AND dispensing of medication onsite WELLNESS BENEFITS DIGITAL ENABLERS Year round a
Slide 56: Enhanced support for mental wellbeing for 2021
ENHANCED SUPPORT FOR MENTAL WELLBEING FOR 2021 Intensity of intervention Key enhancements High IN-PATIENT TREATMENT in optimized psychiatric network New Relapse Prevention Programme to identify and support members who are DEFINED DAY FACILITY PROGRAMME at risk of relapse or delivered by a multidisci
Slide 57: Supporting young families with infertility benefits
SUPPORTING YOUNG FAMILIES WITH BENEFITS FOR INFERTILITY Cover for Assisted Reproductive Therapies (ART) including In-Vitro Fertilisation (IVF), Intra-Uterine Insemination (IUI), Embryo Transfer (FET) and Intra-Cytoplasmic Sperm Injection (ICSI) Available to members on Cover for up to 2 cycles of ART
Slide 58: Other DHMS benefit updates
OTHER DHMS BENEFIT UPDATES Improving outcomes for Enhanced spinal care Networks Centre of excellence for Other Technical members living with programme and changes colorectal cancer surgery updates diabetes quality network Day Surgery Network Premier Plus GP as Enhanced Out-of-hospital Back P
Slide 59: Four themes: utilisation, technology, quality care, access
Utilisation discontinuity: Technology: Quality care: Access: balancing the equilibrium enabling digital healthcare services between long-term sustainability leveraging platforms, Big Data and benefit changes to drive expanding access to and short-term affordability innovative technology positive out
Slide 60: Shari'ah-compliant DHMS plan options
ACCESS TO SHARI’AH-COMPLIANT DISCOVERY HEALTH MEDICAL SCHEME PLAN OPTIONS Discovery Health Medical Scheme members can elect to have their contributions and claims on any plan option managed in accordance with Shari’ah principles, through the Shari’ah-Compliant Arrangement Contributions and balances
Slide 61: Discovery Prepaid Health
Slide 62: Discovery Prepaid Health
DISCOVERY PREPAID HEALTH AFFORDABLE HEALTHCARE FOR ALL SOUTH AFRICANS Free-to-use digital platform Affordable prepaid healthcare services R50 R150 – R200 R250 – R300 R300 – R350
Slide 63: Discovery Prepaid Health
DISCOVERY PREPAID HEALTH AFFORDABLE HEALTHCARE FOR ALL SOUTH AFRICANS Top up healthcare balance Multiple top-up options In-store vouchers In-app debit or credit card View prepaid healthcare balance Discovery Bank Discovery Miles Use prepaid healthcare balance Starts at R50 Affordable healthcare se
Slide 64: Balancing long-term sustainability and short-term affordability
Balancing the equilibrium Enabling digital healthcare between long-term sustainability services leveraging platforms, Big Benefit changes to drive Expanding access to and short-term affordability Data and innovative technology positive outcomes affordable healthcare Contribution increase Connected c
Slide 65: HEALTH LIFE INVEST
EMPLOYEE HEALTH LIFE INVEST BANK INSURE BENEFITS COMPOSITE ASSETS MARKETING SUPPORT
Slide 66: Vitality
VITALITY DINESH GOVENDER
Slide 67: Vitality has never been more relevant
VITALITY HAS NEVER BEEN MORE RELEVANT The nature of COVID-19 risk Engagement in Vitality is linked to better COVID-19 is behaviourial clinical outcomes 100% Engaged Vitality Individuals with 3 or more members have a co-morbidities account for 37% lower COVID-19 mortality risk 63% of global COVID-19
Slide 68: Member engagement continues to increase
MEMBER ENGAGEMENT issued 28m Device and CONTINUES online workouts 1m Vitality Mall 12m HealthyFood TO INCREASE vouchers transactions 57,000 Mental Wellbeing assessments Members > R500m cashbacks 4,500 Virtual VHCs Society Insurer > R2.5m donated 89 year life expectancy for Gold / Diamond members 84
Slide 69: Clinical relevance, physical activity, enhanced rewards
2021 Clinical Relevance Physical Activity Enhanced Rewards Ensuring Vitality remains Encouraging exercise with Dazzling members with clinically and a broader and deeper exciting new rewards behaviourally relevant physical activity offering partnerships
Slide 70: Clinical relevance, physical activity, enhanced rewards
2021 Clinical Relevance Physical Activity Enhanced Rewards Ensuring Vitality remains Encouraging exercise with Dazzling members with clinically and a broader and deeper exciting new rewards behaviourally relevant physical activity offering partnerships
Slide 71: Lockdown impacted screenings and physical activity
LOCKDOWN HAS IMPACTED SCREENINGS AND PHYSICAL ACTIVITY, REQUIRING AN EXTRAORDINARY EFFORT TO KEEP MEMBERS MOTIVATED January – September engagement compared to 2019 Recognise 2019 engagement in 2020 to motivate and support members ASSESSMENTS AND SCREENINGS 84% 55% 45% Award the higher of 2019 and 20
Slide 72: Considering 2019 engagement
2021 Clinical Relevance Physical Activity Enhanced Rewards Considering 2019 engagement Encouraging exercise with Dazzling members with a broader and deeper exciting new rewards physical activity offering partnerships 2019 2020 2020 adjusted VHC & VFA Other screenings & flu vacs Physical activity (Ja
Slide 73: Physical activity remains important
PHYSICAL ACTIVITY REMAINS IMPORTANT People who exercise exhibit Vitality engagement can >50% lower mortality help offset COVID-19 risk MORTALITY RISK BY PHYSICAL ACTIVITY LEVEL COVID-19 MORTALITY RISK BY HEALTH STATUS AND ENGAGEMENT 160% 160% 100% 89% 100% 100% 78% 65% 35% 33% 31% 28% No chronic con
Slide 74: Key trends shaping the physical activity landscape
KEY TRENDS SHAPING THE PHYSICAL ACTIVITY LANDSCAPE Proliferation of exercise formats and facilities
Slide 75: Key trends shaping the physical activity landscape
KEY TRENDS SHAPING THE PHYSICAL ACTIVITY LANDSCAPE Proliferation of exercise Attractiveness of Importance of formats and facilities high-quality home exercise (virtual) communities
Slide 76: Key trends shaping the physical activity landscape
KEY TRENDS SHAPING THE PHYSICAL ACTIVITY LANDSCAPE 1 2 3 Providing unrivalled access to Recognise and reward members Continue to build the largest and facilities members desire for their workouts everywhere most inclusive exercise community 4 Equip members with the best fitness gear, equipment and t
Slide 77: Broadening the physical activity offering
BROADENING THE PHYSICAL ACTIVITY OFFERING Augmenting the highly successful … by enabling members to get fit at over Vitality gym benefit … 300 Vitality-enabled fitness facilities Earn Vitality points Spend Discovery Miles Yoga & Pilates Functional Fitness 75% 100% Club membership Dance 50% National
Slide 78: Connecting and expanding the Team Vitality community
CONNECTING AND EXPANDING THE TEAM VITALITY COMMUNITY : the new home for our community Be part of the TEAM VITALITY community on for free Discounted training kit 50% discount on STRAVA Summit Earn achievements through tracking activity Access suggested routes, analyse performance and compare results
Slide 79: Access to fitness devices and gear
TODAY, MEMBERS HAVE ACCESS TO GREAT FITNESS DEVICES AND GEAR Apple Watch HealthyGear The new Apple Watch Series 6 Up to 25% back fully funded by achieving your fitness goals Blood oxygen sensor Activate benefit ECG, sleep app and more… Complete Vitality Age Complete Vitality Fitness Assessment Requi
Slide 80: Redesigning HealthyGear
REDESIGNING HEALTHYGEAR FOR A MORE REWARDING EXPERIENCE HealthyGear 25% Up to 25% back Up to 25% upfront 10% 15% Activate benefit Complete Vitality Age Activate Complete Complete benefit Vitality Age VHC Complete Vitality Fitness Assessment 10% 15% 25%
Slide 81: Introducing Active Gear
INTRODUCING | ACTIVE GEAR 25% Up to 25% upfront 10% 15% Activate Complete Complete benefit Vitality Age VHC 10% 15% 25%
Slide 82: Extending this experience to devices
EXTENDING THIS EXPERIENCE TO DEVICES 25% 75% 10% Up to Up to 25% 75% 15% upfront 10% upfront 25% 15% 50% Activate Complete Complete Meet Active With Discovery benefit Vitality Age VHC Rewards goals Bank Earn an additional 5% for every 10% 15% 25% 5 Active Rewards goals met 50% 75%
Slide 83: Active Gear: fitness devices
ACTIVE GEAR | FITNESS DEVICES 25% 75% 10% Up to Up to 25% 75% 15% upfront 10% upfront 25% 15% 50% Activate Complete Complete Meet Active With Discovery benefit Vitality Age VHC Rewards goals Bank Earn an additional 5% for every 10% 15% 25% 5 Active Rewards goals met 50% 75%
Slide 84: Active Gear
ACTIVE GEAR 25% 75% 10% Up to Up to 25% 75% 15% upfront 10% upfront 25% 15% 50% Activate Complete Complete Meet Active With Discovery benefit Vitality Age VHC Rewards goals Bank Earn an additional 5% for every 10% 15% 25% 5 Active Rewards goals met 50% 75%
Slide 85: Active Gear
ACTIVE GEAR 25% 75% 75% 10% 10% Up to Up to Up to 25% 75% 15% 75% 15% upfront 10% upfront 25% upfront 25% 15% 50% Activate Complete Complete Meet Active With Discovery benefit Vitality Age VHC Rewards goals Bank Earn an additional 5% for every 10% 15% 25% 5 Active Rewards goals met 50% 75%
Slide 86: Getting more members more active in 2021
SUMMARY | GETTING MORE MEMBERS MORE ACTIVE IN 2021 Providing unrivalled access, recognition and sense of community to encourage members to get active P H Y S I C A L V I R T U A L GYMS BOUTIQUE FACILITIES RUNNING & CYCLING HOME WORKOUTS DIGITAL FITNESS VIRTUAL COMMUNITIES Rewarding members with the
Slide 87: Clinical relevance, physical activity, enhanced rewards
2021 Clinical Relevance Physical Activity Enhanced Rewards Considering 2019 engagement Dazzling members with exciting new rewards partnerships 2019 2020 2020 adjusted VHC & VFA Other screenings & flu vacs Physical activity (Jan – Sept)
Slide 88: Vitality 2021
VITALITY 2021 GET HEALTHY GET REWARDED GET ACTIVE EARN DISCOVERY MILES SPEND DISCOVERY MILES Exercise and Drive well Vitality Mall 20% Online Shopping 20% 4,000 700 Vitality Active Rewards Prepaid products 20% EAT WELL Travel Spend and Invest Exchange Convert Transfer TAKE CARE plus much, much more…
Slide 89: Clinical relevance, physical activity, enhanced rewards
2021 Clinical Relevance Physical Activity Enhanced Rewards Considering 2019 engagement 20% 2019 2020 2020 adjusted VHC & VFA Other screenings & flu vacs Physical activity (Jan – Sept)
Slide 90: HEALTH LIFE INVEST
EMPLOYEE HEALTH LIFE INVEST BANK INSURE BENEFITS COMPOSITE ASSETS MARKETING SUPPORT
Slide 91: Discovery Invest
DISCOVERY INVEST KENNY RABSON
Slide 92: Resilient business model
RESILIENT BUSINESS MODEL Market crash followed by a sharp recovery Protecting clients’ investments and providing financial support JSE All Share Index Cushion against the market fall > R3.92 Billion in accrued boosts Additional income for retirees > R183 Million in retirement income boosts paid -30%
Slide 93: Our business model
OUR BUSINESS MODEL Competitive open architecture DISCOVERY INVEST platforms Newly launched global offering Unique benefits that drive Shared Value actuarial dynamics Actuarial dynamics Clients are investing OPTIMAL PRODUCTS & STRUCTURES UNIQUE REWARDS & INCENTIVES 3 years longer Clients are investin
Slide 94: Our range of flexible investment plans
OUR RANGE OF FLEXIBLE INVESTMENT PLANS Core Flexible Investments Classic Flexible Investments Cost efficiency Full fund selection Plus get added Up to 100% discount on platform fees performance protection Annual admin fee on a R1 million investment 50% internal/50% external funds Up to 10% upfront p
Slide 95: PrimeFlex
Sophisticated investing made easy with PrimeFlex
Slide 96: The new Discovery PrimeFlex
THE NEW DISCOVERY PRIMEFLEX Sophisticated, simplified Get awarded Market leading efficiency investment choices Discovery Miles through Vitality Just choose your risk profile Discovery Dynamic Annual admin fee of Asset Optimiser Conservative 0.10% Moderate plus VAT or lower Aggressive Global Multi-As
Slide 97: Simplified investment choices
SIMPLIFIED INVESTMENT CHOICES Discovery Dynamic Asset Optimiser Six months One year Three years Quartile Quartile Quartile Sophistication within Discovery Conservative Dynamic Asset Optimiser 1 1 1 simplicity Discovery Moderate Dynamic Asset Optimiser 1 1 1 Discovery Aggressive Dynamic Asset Optimis
Slide 98: Market-leading efficiency
MARKET-LEADING EFFICIENCY Ultra-low admin fee Ultimate cost efficiency PrimeFlex versus competitor flexible investments Sophistication within simplicity Investment size Annual admin fee (excl. VAT) 74% 74% First R3 million 0.10% lower lower 80% lower Market- Above R3 million 0% leading 0.115% 0.115%
Slide 99: Get awarded Discovery Miles through Vitality
GET AWARDED DISCOVERY MILES THROUGH VITALITY And every year thereafter based on your Get awarded Discovery Miles after three months Vitality Money status 1 1 Sophistication within simplicity Discovery Mile Discovery Mile Calculated for every Calculated for every Market- leading R20 efficiency None B
Slide 100: Discovery Capital 200+ December 2020 tranche
INTRODUCING THE DISCOVERY CAPITAL 200+ DECEMBER 2020 TRANCHE Get growth of 100% over five years before the effect of fees and taxes if the underlying basket of selected stocks is flat or positive Unlimited upside potential above 100% growth Downside protection provided the global portfolio does not
Slide 101: Limited offers
LIMITED OFFERS Lump Sum Lump Sum Lump Sum Endowment Retirement Annuities and Retirement Annuities initial investment boost Preservers initial investment boost extra contribution boost Get a boost of up Get a boost of up Get a boost of up to 36% on your to 29% on your to 25% on extra initial investme
Slide 102: Limited offers
LIMITED OFFERS Lump Sum Lump Sum Lump Sum Endowment Retirement Annuities and Retirement Annuities initial investment boost Preservers initial investment boost extra contribution boost Get a boost of up Get a boost of up Get a boost of up to 36% on your to 29% on your to 25% on extra initial investme
Slide 103: AI Quote
AI QUOTE Get a quote in as little as 30 seconds View Inputs summary Quote! • Basic client details Optimised product Email to your clients • Investment amount structure with unique in one click • Risk profile Discovery benefits Expanded functionality New New New Living annuities Lump-sum Retirement P
Slide 104: Invest adviser portal re-engineered for simplicity
INVEST ADVISER PORTAL | RE-ENGINEERED FOR SIMPLICITY New design Easy navigation User-friendly journeys
Slide 105: Access information on the go with mobile portal
ACCESS INFORMATION ON THE GO WITH THE MOBILE PORTAL Performance snapshots Key insights
Slide 106: Share your screen online with clients
ABILITY TO SHARE YOUR SCREEN ONLINE WITH CLIENTS Secure sensitive information Enhance your virtual meetings
Slide 107: Grant and manage access for support staff
GRANT AND MANAGE ACCESS FOR YOUR SUPPORT STAFF Grant access Manage transacting permissions
Slide 108: Clients can instantly authorise changes in app
CLIENTS CAN INSTANTLY AUTHORISE CHANGES IN THEIR DISCOVERY APP No need for face to face meetings No need for lengthy document submissions with instant mobile uploads Paperless, secure and on- the-go instant approval
Slide 109: Summary
SUMMARY Our new Flexible The Discovery Capital Current offers Digital innovations Investment Plan 200+ December 2020 PrimeFlex tranche Boost of up to 36% AI Quote on lump-sum Sophisticated, Get growth of 100% Endowments efficient flexible over five years before the investment solution effect of fees
Slide 110: HEALTH LIFE INVEST
EMPLOYEE HEALTH LIFE INVEST BANK INSURE BENEFITS COMPOSITE ASSETS MARKETING SUPPORT
Slide 111: Discovery Life product update
DISCOVERY LIFE PRODUCT UPDATE GARETH FRIEDLANDER
Slide 112: Discovery Day launch objectives
DISCOVERY DAY LAUNCH OBJECTIVES 65+
Slide 113: Discovery Day launch objectives
DISCOVERY DAY LAUNCH OBJECTIVES 65+
Slide 114: Greater holistic financial planning
Last will and testament Drafting, storage and all related activities Greater holistic Executor and trustee financial planning appointments Deceased estate Guiding clients in administration their time of need Testamentary trust administration Top of the range services for client- Estate property tran
Slide 115: Winding up an estate requires holistic financial protection
HOWEVER, CLIENTS ARE OFTEN UNPREPARED FOR THE FINANCIAL IMPACT OF WINDING UP AN ESTATE Over 70% of South Africans don’t have a will 3 weeks – 3 months or an executor to be appointed by the Master of the High Court WINDING UP AN Banks freeze the deceased’s assets ESTATE REQUIRES during that time HOLI
Slide 116: Discovery Estate Preserver
DISCOVERY ESTATE PRESERVER Providing peace of mind through financial protection and indemnification against the costs of winding up an estate
Slide 117: Indemnification against legal costs of winding up estate
INDEMNIFICATION AGAINST THE LEGAL COSTS OF WINDING UP THE ESTATE Cover for full legal fees, including: Executor Fees Testamentary trust fees Conveyancing attorney fees Option Indemnify legal fees for estates up to 1 R2.5m 2 R5m 3 R10m 4 R20m 5 R40m 6 R60m 7 R100m
Slide 118: Providing liquidity to meet immediate needs
PROVIDING LIQUIDITY TO MEET IMMEDIATE NEEDS Paid to beneficiaries within 48 hours of death, and used for: Master and Correspondence fees Miscellaneous immediate expenses: − Advertisements − Funeral costs − Travel costs Indemnify legal fees for Option estates up to Liquidity Benefit 1 R 2.5m R 10
Slide 119: Ensuring Discovery contributions continue
ENSURING THAT DISCOVERY CONTRIBUTIONS CONTINUE FOR THOSE LEFT BEHIND Covers ongoing premiums and expenses after the client passes away Pays out for 6 months Indemnify legal fees Contribution Option Liquidity Benefit for estates up to Protector (p/m) 1 R2.5m R 10k R 2k 2 R5m R 20k R 4k 3 R10m R 30k R
Slide 120: Cover for estate duties
COVER FOR ESTATE DUTIES UP TO THE CHOSEN AMOUNT Additional benefit aimed at efficiently covering estate duty payable Pays out on second death of principal and spouse Premiums cease on first death R0 R1m Choose how much is required to cover estate duties
Slide 121: Leveraging shared value for affordability and sustainability
LEVERAGING SHARED VALUE TO CREATE AFFORDABILITY AND SUSTAINABILITY Integration Upfront and ongoing premium discounts of up to PayBacks on Discovery Estate Preserver premiums every 5 years of up to PayBacks on will storage fees
Slide 122: Product built within an efficient and simple process
PRODUCT BUILT WITHIN AN EFFICIENT AND SIMPLE PROCESS The client’s will is drafted, Select option based on size of Select the cover needed signed and stored executable assets for estate duty Indemnify legal fees Liquidity Contribution Option for estates up to Benefit Protector 1 R 2.5m R 10k R 2k 2 R
Slide 123: Estate Preserver Gold PayBack limited offer
DISCOVERY ESTATE PRESERVER GOLD PAYBACK LIMITED OFFER Blue Bronze Silver Gold Diamond Vitality Integration 15% 15% 15% 15% 20% Clients get a minimum PayBack equivalent to a Gold Vitality PayBack for the first three years of their policy, until 31 March 2021
Slide 124: Discovery Day launch objectives
DISCOVERY DAY LAUNCH OBJECTIVES 65+
Slide 125: Loyalty discount, PayBack and cash conversion offers
Auto Buy-up Cash 20% Loyalty Discount offer PayBack +20% offer Conversion (50%/3 year) offer Get a 20% discount on qualifying Get an additional 20% PayBack Get up to a 100% discount servicing for accumulation for three years on Buy-up Cash Conversion up to 3 years premiums for the first three years.
Slide 126: Discovery Day launch objectives
DISCOVERY DAY LAUNCH OBJECTIVES 65+
Slide 127: Highly efficient operational and underwriting process
HIGHLY EFFICIENT OPERATIONAL AND UNDERWRITING PROCESS AT Full medical questionnaire with application Advisers need to collect client's medical history Case referred to human underwriter for determination Counter-offer letter or further medical tests called for when needed SIGNIFICANT SCALE 2 Zo ne >
Slide 128: Lockdown cover
Lockdown Level 5 Lockdown cover
Slide 129: Lockdown cover, mini-labs
Lockdown Level 5 Level 3 Lockdown cover Mini-labs
Slide 130: Full suite of underwriting options
Lockdown Level 5 Level 3 Level 1 Full suite of Lockdown cover Mini-labs underwriting options
Slide 131: Full suite of underwriting options
Lockdown Level 5 Level 3 Level 1 Full suite of Lockdown cover Mini-labs underwriting options
Slide 132: Introducing virtual underwriting
Time remaining 08:32 Video Consultation with Dr. Jeena Dias End Session Patient Info Martha Franklin 32 years, Female martha.franklin@gmail.com +1 255 2322 2199 ¾, Kildonan Drive Cleveland, USA Health Conditions Fever in adults Hypertension Medications Opcon A 25 mg Trymol 25 mg Allergies Hayfever A
Slide 133: Simplifying the application process
SIMPLIFYING THE APPLICATION PROCESS 01
Slide 134: Simplifying the application process
SIMPLIFYING THE APPLICATION PROCESS 01 Quicker application process with reduced burden on advisers 7 pages shorter Client’s maintain confidentiality around their medical history
Slide 135: Simplifying the application process
SIMPLIFYING THE APPLICATION PROCESS 01 02 Quicker application process with Choose Virtual reduced burden on advisers Underwriting in SmartAdvice 7 pages shorter Select the preferred underwriting method. Client indicates preferred Client’s maintain confidentiality time for the consultation. around th
Slide 136: Simplifying the application process
SIMPLIFYING THE APPLICATION PROCESS 01 02 03 Quicker application process with Choose Virtual Smart Services agent reduced burden on advisers Underwriting in confirms booking SmartAdvice 7 pages shorter Select the preferred underwriting method. Client indicates preferred Client’s maintain confidentia
Slide 137: Video interview with an experienced underwriter
VIDEO INTERVIEW WITH AN EXPERIENCED UNDERWRITER USING AN ADAPTIVE UNDERWRITING QUESTIONNAIRE 01 02 03 04 Clients meet the underwriter over a video chat from the comfort of their home . Consolidates 37 medical questionnaires into 1 so only the necessary questions get asked Only one session needed wit
Slide 138: Seamless process from submission to activation
SEAMLESS PROCESS FROM SUBMISSION TO ACTIVATION 01 02 03 04 05 Past Health data Auto Smart Clinical data underwriting Underwriting Underwriting repository results
Slide 139: Financial rewards in the Discovery app
FINANCIAL REWARDS IN THE DISCOVERY APP
Slide 140: Financial rewards in the anniversary letter
FINANCIAL REWARDS IN THE ANNIVERSARY LETTER
Slide 141: Discovery Life product updates 2020
DISCOVERY LIFE PRODUCT UPDATES 2020
Slide 142: Marketing support
MARKETING SUPPORT HYLTON KALLNER
Slide 143: Summary: product updates
SUMMARY | PRODUCT UPDATES EMPLOYEE HEALTH LIFE INVEST BANK INSURE BENEFITS PrimeFlex Contribution Wills & Trusts Estate Planner & Gold PrimeFlex investment plan increase strategy Connected Care services PayBack limited offer Vitality Money Maximum discount 2.0 on flights Investment boost Investment
Slide 144: Market-leading, enhanced propositions
MARKET-LEADING, ENHANCED PROPOSITIONS EMPLOYEE HEALTH LIFE INVEST BANK INSURE BENEFITS #1 NB market share Fastest growing Top performance PrimeFlex 16% lower Clinically proven wellness programme Extensive healthy partner network Exclusive rewards Monetising healthy behaviour Enabler of Shared with A
Slide 145: Composite model creates integration opportunities
COMPOSITE MODEL CREATES SIGNIFICANT INTEGRATION OPPORTUNITIES Full composite Opportunity 80% OF EMPLOYER GROUPS ONLY 80% OF CLIENTS ONLY INDIVIDUAL CORPORATE HAVE 1 PRODUCT HAVE 1 PRODUCT Supp Gap 8,000 corporates >3.3m clients ONGOING INNOVATION Healthy Company
Slide 146: Member base segmentation
UNLOCKING THE OPPORTUNITIES | MEMBER BASE SEGMENTATION ~1,1m ~900k ~650k ~400k members members members members ~250k 18 - 35 36 - 45 46 - 55 56 - 65 65+
Slide 147: 18-35 year olds: young adults
18 – 35 YEAR OLDS | YOUNG ADULTS Manifestation of Shared Value to members Product enhancements in action 29-year old Diamond Vitality Health | Diamond Vitality Money | Gold Vitality Drive Average of 3 physical activity days per week Average of R5,193 Average of HealthyFood 2 flights spend per year p
Slide 148: 36-55 year olds: families
36 – 55 YEAR OLDS | FAMILIES Manifestation of Shared Value to members Product enhancements in action Married couple in mid-40s with 2 teenagers Gold Vitality Health | Gold Vitality Money Average of 3 members per family Average of R16,980 Average of credit card 7 GP visits spend per family per year p
Slide 149: 56-65 year olds: pre-retirees
56 – 65 YEAR OLDS | PRE-RETIREES Manifestation of Shared Value to members Product enhancements in action 59-year old Diamond Vitality Health | Diamond Vitality Money Average of 2 physical activity days per week Average of R9,785 Average of HealthyFood 2 flights spend per year per year R1,3bn R254m i
Slide 150: Support to unlock the opportunities
SUPPORT TO UNLOCK THE OPPORTUNITIES Employer Digital year-end Advice Tools: Individuals Limited offers Insights and analytics revisions and collateral
Slide 151: Support to unlock the opportunities
SUPPORT TO UNLOCK THE OPPORTUNITIES Employer Digital year-end Advice Tools: Individuals Limited offers Insights and analytics revisions and collateral
Slide 152: FAZ recommender tool for Vitality
SIMPLIFIED THE PROCESS FOR YOU TO SEND TAILORED COMMUNICATIONS TO YOUR DHMS MEMBERS TO JOIN VITALITY The new FAZ recommender tool for Vitality AVA I L AB L E F R O M N OV E M BE R 2 0 2 0 Access Vitality Send targeted Log on to FAZ recommender Filter on members Track send status communication with s
Slide 153: DHMS members can join Vitality with a few clicks
DHMS MEMBERS CAN JOIN VITALITY WITH A FEW CLICKS 1 2 3 Enter name, ID number and Authenticate with Confirm banking details and Vitality policy activated cellphone number One-Time Pin debit order date AVA I L AB L E F R O M N OV E M BE R 2 0 2 0
Slide 154: Discovery Bank advice tools
DISCOVERY BANK | ADVICE TOOLS Compare Discovery Bank with other banks New business platform in under 60 seconds • Easily compare a client’s current product against • Sign clients up online three recommended Discovery Bank accounts side-by-side • Appeal credit decisions • Compare rewards earned, inte
Slide 155: Advisers and brokers can onboard clients and earn commission
ALL QUALIFYING ADVISERS AND BROKERS CAN ONBOARD CLIENTS AND EARN COMMISSION Earn up to R3 500 on Bank sales and up to 0.60% on deposits New bank accounts up to R 2 500 R 1 000 Vitality Money boost for Bank product upsells up to R 1 750 accounts on Diamond status Deposits from 0.24% up to 0.60% Notic
Slide 156: Support to unlock the opportunities
SUPPORT TO UNLOCK THE OPPORTUNITIES Employer Digital year-end Advice Tools: Individuals Limited offers Insights and analytics revisions and collateral
Slide 157: Integrated quotes and bespoke insights for employers
INTEGRATED QUOTES AND BESPOKE INSIGHTS FOR EMPLOYERS Integrated quoting Health and EB insights COVID-19 insights Across Health, Employee Benefits, Group Unique insights and opportunity areas for Real-time monitoring of exposure and Risk, Primary Care, Gap and employee productivity health and wellnes
Slide 158: Support to unlock the opportunities
SUPPORT TO UNLOCK THE OPPORTUNITIES Employer Digital year-end Advice Tools: Individuals Limited offers Insights and analytics revisions and collateral
Slide 159: Limited offers
LIMITED OFFERS 20% discount on qualifying Up to 36% boost on initial Lock in maximum servicing for up to 3 years investment for Lump Sum Vitality Money discount Endowments on local flights Arrears billing for new employers who join between November and Up to 20% additional PayBack January accumulati
Slide 160: Adviser limited offer: preview TytoHome kits
ADVISER LIMITED OFFER | PREVIEW TYTOHOME KITS WITH AN EXCLUSIVE DISCOUNT Exclusive access to TytoHome devices plus an additional 20% discount PRE-ORDER NOW
Slide 161: Support to unlock the opportunities
SUPPORT TO UNLOCK THE OPPORTUNITIES Employer Digital year-end Advice Tools: Individuals Limited offers Insights and analytics revisions and collateral
Slide 162: All materials now available on Financial Adviser Zone
***ALL MATERIALS NOW AVAILABLE ON FINANCIAL ADVISER ZONE***
Slide 163: Digital year-end revisions
DIGITAL YEAR-END REVISIONS Go live: 5 October 2020 Discovery website: Financial Adviser Zone > Marketing Support Launch Material Important documents Year-end revision support Health plan series 2021 Financial Adviser Toolkit
Slide 164: Digital year-end revisions
DIGITAL YEAR-END REVISIONS Go live: 5 October 2020 Discovery website: Financial Adviser Zone > Marketing Support Videos: Digitisation of Healthcare 2021 DHMS benefit updates 2021 Contributions 2021 Vitality updates 2021 Afrikaans | Xhosa | Zulu | Sotho Member presentation
Slide 165: Digital year-end revisions
DIGITAL YEAR-END REVISIONS Go live: 5 October 2020 Discovery website: Financial Adviser Zone > Marketing Support Webinar toolkit Invitations Holding screens Thank you email Digital promotional material Benefit promotion email templates Email banners and signatures
Slide 166: Product updates: go-live dates
PRODUCT UPDATES | GO-LIVE DATES Q4 JULY 2020 2021 DHMS Contribution freeze Oct Nov Dec DHMS Contribution increase Q1 LIVE PrimeFlex 2021
Slide 167: Product updates: upcoming masterclasses
PRODUCT UPDATES | UPCOMING MASTERCLASSES Monday Tuesday THURSDAY 5 October 6 October 8 October 08:00 09:00 Discovery Invest : Launch item Discovery Life and Legal Discovery Life: Launch Benefits 10:00 Discovery Invest : EAC Discovery Vitality 11:00 Discovery Insure: Personal and Commercial Discovery
Slide 168: Summary: product updates
SUMMARY | PRODUCT UPDATES EMPLOYEE HEALTH LIFE INVEST BANK INSURE BENEFITS Contribution PrimeFlex increase strategy Connected Care Wills & Trusts Estate Planner & Gold PrimeFlex investment plan services PayBack limited offer Vitality Money Maximum discount 2.0 on flights Prepaid Health Shari’ah comp
Slide 169: Discovery VR experience QR code
iy) Discovery Using your phone's camera, scan this QR code for the Virtual Reality experience. With VR vase = ya VR glasses O r computer headphones on with the left pod in your left ear and the right pod in your right ear.
Slide 170: Scan QR code for the Virtual Reality experience
Using your phone's camera, scan this QR code for the Virtual Reality experience. With VR glasses Without VR glasses
Slide 171: QR code for VR video
QR CODE FOR VR VIDEO
Slide 172: Discovery Day 2020
DISCOVERYDAY 2020