Nib Holdings Ltd · ASX:NHF
Nib — Shareholder Meeting (November 2016)
29 slides from Nib's shareholder meeting presentation, Nov 2, 2016
Slide 1: nib holdings limited 2016 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 nib@nib.com.au abn 51 125 633 856 w nib.com.au 2 November 2016 Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 nib holdings limited 2016 Annual General Meeting (AGM) Present
Slide 2: 2 November 2016
2 NOVEMBER 2016
Slide 3: nib Annual General Meeting 2016 - Steve Crane
STEVE CRANE nib ANNUAL GENERAL MEETING 2016
Slide 4: Directors and executive team
Steve Crane Independent Non-Executive Director Lee Ausburn Independent Non-Executive Director Harold Bentley Independent Non-Executive Director Philip Gardner Independent Non-Executive Director Christine McLoughlin Independent Non-Executive Director Donal O’Dwyer Independent Non-Executive Director M
Slide 5: Items of business
ITEM 1 ITEM 2 ITEM 3 ITEM 4 ITEM 5 Consideration Remuneration Re-election of Election of Approval of of Reports Report Steve Crane Donal O’Dwyer participation in Long-Term Incentive Plan 4
Slide 6: Chairman's Presentation
CHAIRMAN’S PRESENTATION } STEVE CRANE rif nib ANNUAL GENERAL MEETING 2016
Slide 7: FY16 produced impressive revenue and earnings growth
FY16 produced impressive revenue and earnings growth 6 | nib ANNUAL GENERAL MEETING 2016
Slide 8: arhi contributed 72% to Group Underlying Operating Profit
In FY16, arhi contributed $94.5 million or 72% to Group Underlying Operating Profit. Goal is to grow policyholder volumes by 4- 5% per annum with net underwriting margin of 5.0–6.0%. Continue to invest in brand and look for additional sales channels. 7
Slide 9: New ventures align with our Group strategy and investment framework
New ventures align with our Group strategy and investment framework, and are performing well against expectations. 8
Slide 10: Long-term outlook for arhi and PHI
We remain very positive about the long-term outlook for arhi and PHI in general. Healthcare spending will continue to increase and ability for taxation to pay for it will diminish. As private funding and public policy continues to play a major role, we actively plan to adapt and prosper in this chan
Slide 11: Move into new markets now a significant contributor to earnings
Our move into new markets is now a significant contributor to Group earnings. Preference for growth markets that allow us to leverage our brand, distribution and specialist healthcare capabilities. As we have done in the past, we will continue to do our homework on new business ventures. 10
Slide 12: Customer service and continuous improvement crucial to future success
Customer service and continuous improvement crucial to future success. Enhancing customer value proposition and operating efficiency grows enterprise and shareholder value. 11 | nib ANNUAL GENERAL MEETING 2016
Slide 13: Established in 2008 with a clear vision to improve health and wellbeing
Established in 2008 with a clear vision to improve the health and wellbeing of individuals and communities across Australia. 12
Slide 14: Succession planning for Executives and Non-Executive Directors
Succession planning for both Executives and Non-Executive Directors is a priority for the Board. We must prepare for a range Steve Crane Mark Fitzgibbon Lee Ausburn Harold Bentley of future circumstances and market conditions. Philip Gardner Christine McLoughlin Donal O’Dwyer Annette Carruthers 13 |
Slide 15: Director profile: Donal O'Dwyer
Highly-experienced company director. Extensive executive-level experience in the global sales and marketing of healthcare products and services. 14 | nib ANNUAL GENERAL MEETING 2016
Slide 16: Director retirement after 13 years of service
Retired in September 2016 following 13 years of service to nib Board. Has overseen the transition of nib from a mutual to an ASX-listed entity, the significant growth across Australia and expansion into new markets both domestic and international. 15 | nib ANNUAL GENERAL MEETING 2016
Slide 17: OECD healthcare spending growth over the past 50 years
Past 50 years, OECD healthcare spending has increased by about GDP plus 2%. Powerful tailwind for businesses in healthcare. We’ll continue to be cognisant of value creation and shareholder returns. 16 | nib ANNUAL GENERAL MEETING 2016
Slide 18: Thank You
THANK YOU nib ANNUAL GENERAL MEETING 2016
Slide 19: Managing Director's Report
MANAGING DIRECTOR’S REPORT a MARK FITZGIBBON nib ANNUAL GENERAL MEETING 2016
Slide 20: Pleasing result reflecting strong execution of our business strategy
Pleasing result reflecting strong execution of our business strategy across the Group. 19
Slide 21: FY16 Financial Summary
FY16 FINANCIAL SUMMARY STRONG PERFORMANCE ACROSS KEY PERFORMANCE AREAS 10- nhf ‘ ‘ASX200 50- FY14—FY15 | | cust AUGI5 OCT15 DEC15 FEB16 APRI6 JUNI6 FYI2. FYI3. ~FYI4.FYI5.—FY16 e: Bloomberg * Australian Residents Health Inst | nib ANNUAL GENERAL MEETING 2016
Slide 22: Ongoing diversification, innovation and disruption
Our strategy reflects ongoing diversification, innovation and disruption. 21 | nib ANNUAL GENERAL MEETING 2016
Slide 23: Our core arhi segment was a star performer
Our core arhi segment was a ‘star’ performer. 22 | nib ANNUAL GENERAL MEETING 2016
Slide 24: nib New Zealand delivering on acquisition targets
Business continues to deliver on the targets set when we acquired the business. For FY17 and beyond we expect profitability to further improve through organic growth and increased scale. 23 | nib ANNUAL GENERAL MEETING 2016 MAJOR SPONSOR OF THE AUCKLAND BLUES
Slide 25: International inbound health insurance continues to grow
Our international inbound health insurance business, consisting of international students and workers, continues to grow powerfully. International students recently surpassed 100,000 customers. 24 | nib ANNUAL GENERAL MEETING 2016
Slide 26: WNG operating in line with expectations
WNG continues to operate in line with expectations, with growth plans being accelerated and supported to target new business opportunities. Level of investment to impact FY17 UOP result. PORTFOLIO OF BRANDS 25 | nib ANNUAL GENERAL MEETING 2016
Slide 27: Health Minister changes to prostheses pricing
Changes announced last month by Health Minister to pricing for prostheses/medical devices is a positive with savings to flow through to premiums. 26 | nib ANNUAL GENERAL MEETING 2016
Slide 28: FY17 outlook
Soft market conditions likely to continue into FY17 however nib expected to deliver organic volume growth within 4% – 5% target range. Difficult to predict arhi claims inflation trajectory. Drawing rate inflation (per person) expected to be within range of 3% – 5% (FY16: 2.9%). Net margin (arhi) tar
Slide 29: FY17 guidance and investment benchmarks
Consolidated UOP of $130m – $140m (Statutory operating profit of $122m – $132m). Investment returns to be in line with relevant internal benchmarks1. 1. Internal Investment benchmarks — Australian Regulatory capital (79%/21% defensive/growth) – target for portfolio bank bill index plus 1% — New Zeal