Medibank Private Ltd. · ASX:MPL
Medibank Private — Shareholder Meeting (October 2015)
23 slides from Medibank Private's shareholder meeting presentation, Oct 21, 2015
Slide 1: Chairman's address: welcome and FY15 results
Medibank Private Limited ABN 47 080 890 259 GPO Box 9999 in your capital city Telephone 132 331 For personal use only medibank.com.au 21 October 2015 ASX release AGM – CHAIRMAN AND MANAGING DIRECTOR PRESENTATIONS CHAIRMAN My name is Elizabeth Alexander and as Chairman of Medibank, I welcome you to t
Slide 2: Chairman's address: health cost leadership
trends such as cover reductions and lapses as customers look to reduce the impact of healthcare cost inflation on the family budget. As a leading health insurer in Australia, we believe it is our responsibility and in our shareholders’ interest to do our best to ensure that quality healthcare remain
Slide 3: Chairman's address: governance and corporate social responsibility
We are committed to an ongoing evaluation of the performance of the Board to ensure the Board and each director remains effective. This includes periodic reviews of the Board’s performance, and the assessment of the Board’s collective skills and experience to ensure it is well positioned to oversee
Slide 4: Chairman's address: CEO succession
And as we continue to position the company for future success, the timing of the CEO succession is a key consideration. In accordance with this, George and the Board have agreed to bring forward his anticipated retirement date by some 15 months to March next year, which will be after the presentatio
Slide 5: Managing Director's address: FY15 result summary
FY15 Result Summary The Prospectus issued in October 2014 just prior to the float set out our forecasts in pro forma terms for comparative purposes. Looking at the graph on the left, the pro forma NPAT result achieved for the year was $292m, up 13% on the Prospectus forecast of $258m, and a similar
Slide 6: Managing Director's address: health cost leadership
their private health insurance policies. This has seen the proportion of members seeking to reduce their cover materially increase. Let me now move to the second column in the graph, the $5.1b paid in member benefits claims. This is the second of the three levers we have deployed in the Medibank str
Slide 7: Managing Director's address: growth and customer initiatives
• We’re finalising a more contemporary advertising & promotional delivery for the Medibank brand which we will see in the new year. We have also filled a gap in our product portfolio with the launch late in FY15 of our Corporate health insurance product range. We are pleased with the early reports b
Slide 8: Managing Director's address: healthcare system reform
• To broaden the customer experience through an expanded private health insurance role that covers pre and post hospital care and a more effective primary care service for members with complex conditions. We call this expanded role a transformation from health insurance to health assurance. Healthca
Slide 9: Managing Director's address: retirement and outlook
Having guided the business through a successful listing on the ASX last year and having delivered our FY15 prospectus earnings guidance, I believe that now is a natural time for me to retire. With the support of our leadership team and the board we have established a clear and compelling strategy fo
Slide 10: 2015 Annual General Meeting
21 October 2015 For personal use only 2015 ANNUAL GENERAL MEETING
Slide 11: Important Notice
IMPORTANT NOTICE The information contained in this presentation is for information purposes only. No representation or warranty is made that any of these statements or forecasts The information contained in this presentation is not investment or financial product (express or implied) will come to pa
Slide 12: Chairman's Address
CHAIRMAN’S ADDRESS For personal use only FY15 results Health cost leadership Corporate governance Corporate social responsibility Strategy and management 3
Slide 13: Managing Director's Address
For personal use only MANAGING DIRECTOR’S ADDRESS George Savvides, Managing Director
Slide 14: FY15 Result Summary
FY15 RESULT SUMMARY Net profit after tax ahead of Prospectus forecast For personal use only Pro forma net profit after tax 291.8 Health Insurance 258.5 258.2 premium revenue $5.1bn Actual 5.1% Prospectus Health benefits provided to members FY14 FY15 Health Insurance Complementary Services Net invest
Slide 15: Shareholder Returns
SHAREHOLDER RETURNS Inaugural dividend ahead of Prospectus forecast; focus on long-term returns For personal use only Total shareholder return • Inaugural dividend of 5.3 cents per share fully Medibank S&P/ASX 200 Index franked (Prospectus forecast of 4.9 cents per 140 share) 130 +30.5% Rebased to 1
Slide 16: Health Insurance Performance
HEALTH INSURANCE PERFORMANCE Driving profitable growth in the core Health Insurance business For personal use only FY15 pro forma Health Insurance operating profit Management expense ratio $5,934.8m $329.3m $(512.6)m 5.5% 11.0% $(5,092.9)m 8.6% 4 10.5% 3 10.0% 100% 85.8% 9.5% 1 9.0% 2 8.5% 8.0% 7.5%
Slide 17: Health Insurance Premium Revenue Growth
HEALTH INSURANCE PREMIUM REVENUE GROWTH Focus on customer experience and retention For personal use only 8
Slide 18: Industry Margins
INDUSTRY MARGINS Significant operating profit margin improvement – pursuing best in class For personal use only Health Insurance operating profit margin (Australian residents only): top 6 vs. rest of industry1 8% 2 7% 6% 5% 4% 3% 2% Rest of Industry3 1% 0% FY12 FY13 FY14 FY15 -1% -2% Source: APRA (f
Slide 19: Complementary Services
COMPLEMENTARY SERVICES Continues to complement the core Health Insurance business For personal use only Image courtesy Department of Defence 10
Slide 20: Our Strategy
OUR STRATEGY Focus on profitable growth, health cost leadership and operational excellence For personal use only 11
Slide 21: Healthcare System Reform
HEALTHCARE SYSTEM REFORM Leakages in healthcare system must be addressed to improve affordability For personal use only 12
Slide 22: Health Insurance Outlook
HEALTH INSURANCE OUTLOOK Driving performance For personal use only 1Q FY16 commentary • Continuation of FY15 trends • Continuing affordability challenges impacting premium revenue growth • Offset by improving health benefit claims management Targets unchanged • Premium revenue growth target above 5.
Slide 23: Glossary
GLOSSARY For personal use only 1Q 3 months ending 30 September 20XX MPL Medibank Private Limited FY12, FY13, Financial year ended/ending 30 June 2012, 30 June FY14, FY15, 2013, 30 June 2014, 30 June 2015, 30 June 2016, NPAT Net profit after tax FY16, FY17 30 June 2017 Consistent with the Prospectus,
Medibank Private — Shareholder Meeting (October 2015) on 6ix