Nib Holdings Ltd · ASX:NHF
Nib — Shareholder Meeting (February 2016)
25 slides from Nib's shareholder meeting presentation, Feb 11, 2016
Slide 1: 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 nib@nib.com.au abn 51 125 633 856 w nib.com.au 4 November 2015 The Manager Company Announcements Australia Securities Exchange Limited Level 4, Bridge Street SYDNEY NSW 2000 Subject: 2015 AGM present
Slide 2: Annual General Meeting 2015
ANNUAL GENERAL MEETING 2015 / 4 NOVEMBER 2015
Slide 3: Steve Crane, Chairman
ANNUAL GENERAL MEETING 2015 / 2 STEVE CRANE CHAIRMAN
Slide 4: nib's Board and Executive
ANNUAL GENERAL MEETING 2015 / 3 nib’s Board and Executive • 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 • Independent Non-Executive D
Slide 5: Agenda
ANNUAL GENERAL MEETING 2015 / 4 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 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 • 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 dividend policy of paying f
Slide 8: FY15 arhi Performance
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 7 FY15 arhi Performance • 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 believe this indicates
Slide 9: FY15 Non-arhi Business Performance
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 8 FY15 Non-arhi Business Performance • 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 last year’s contributi
Slide 10: World Nomads Acquisition
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 9 World Nomads Acquisition • 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 insurance policies glob
Slide 11: FY15 Net Investment Returns
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 10 FY15 Net Investment Returns • 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 the Pacific Smiles Grou
Slide 12: Governance and Risk Management
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 11 Governance and Risk Management • 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 ‘hurdle rates’ in the a
Slide 13: Total Shareholder Returns
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 12 Total Shareholder Returns 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 index
Slide 14: nib foundation
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 13 nib foundation • 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 carers. • With the next
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 • A key priority for the Board. • Board has great confidence in the Executive Team. • Remain mindful of ‘independence and appropriate skill mix’. • Will appoint an new Non-Executive D
Slide 16: Retiring Non-Executive Director – Dr Annette Carruthers
ANNUAL GENERAL MEETING 2015 / CHAIRMAN’S PRESENTATION / 15 Retiring Non-Executive Director – Dr Annette Carruthers • 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 business during her tenur
Slide 17: Mark Fitzgibbon, Managing Director
ANNUAL GENERAL MEETING 2015 / 16 MARK FITZGIBBON MANAGING DIRECTOR
Slide 18: FY15 Group Performance Highlights
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 17 FY15 Group Performance Highlights 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 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 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 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* with 10% market share.
Slide 22: FY15 International and New Business
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 21 FY15 International and New Business • nib New Zealand growing after a decade of policyholder decline. Policyholder growth of 5.9%.Underlying operating profit of $8.7m impaired by legacy Premium Payback product. • “Complementary” bus
Slide 23: Digital in FY15
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 22 Digital in FY15 We made significant investment in our IT and digital strategy, especially recognising the potential of the ‘digital era’ to disrupt the healthcare market and create opportunities. • Will help customers make more info
Slide 24: FY16 Outlook
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 23 FY16 Outlook • arhi organic growth target of 1.5-2x system within range of 5.0-5.5% net profit margin. • Impending private health insurance review a significant net positive. • International (Inbound) Health Insurance to continue to
Slide 25: FY16 Guidance
ANNUAL GENERAL MEETING 2015 / MANAGING DIRECTOR’S PRESENTATION / 24 FY16 Guidance • nib has updated FY16 operating profit guidance following better ($m)! FY15 FY16 (actual)! (forecast)! than expected performance in the first quarter of the financial Statutory operating profit! 81.7! 90 – 100! report