FULL YEAR RESULTS 2016
Disclaimer The material in this presentation is a summary of the results of nib holdings limited (nib) for the 12 months ended 30 June 2016 and an update on nib’s activities and is current at the date of preparation, 22 August 2016. Further details are provided in nib’s full year accounts and results announcement released on 22 August 2016. This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase securities in nib in any jurisdiction. This presentation contains general information only and does not take into account the investment objectives, financial situation and particular needs of individual investors. Investors should make their own independent assessment of the information in this presentation and obtain their own independent advice from a qualified financial adviser having regard to their objectives, financial situation and needs before taking any action. The distribution of this presentation including in jurisdictions outside Australia, may be restricted by law. Any person who receives this presentation must seek advice on and observe any such restrictions. Nothing in this presentation constitutes an offer or invitation to issue or sell, or a recommendation to subscribe for or acquire securities in any jurisdiction where it is unlawful to do so. An investment in nib securities is subject to investment and other known and unknown risks, some of which are beyond the control of nib. nib does not guarantee any particular rate of return or the performance of nib securities. No representation or warranty, express or implied, is made as to the fairness, accuracy, reliability, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness, fairness, accuracy, reliability, completeness or correctness of any forecasts, prospects, returns or statements in relation to future matters contained in the presentation (“forward-looking statements”). Whilst the forward-looking statements are based on current views, expectations and beliefs as at the date they are expressed, such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of nib and its Directors) which may cause the actual results or performance of nib to be materially different from any future results or performance expressed or implied by such forward-looking statements. Accordingly, there can be no assurance or guarantee that these forward-looking statements will be realised. This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. The financial information disclosed has been prepared on a statutory basis, which is consistent with the financial information provided in nib’s Listing Prospectus. Due care and consideration should be undertaken when considering and analysing nib’s financial performance. All references to dollars are to Australian Dollars unless otherwise stated. To the maximum extent permitted by law, neither nib nor its related corporations, Directors, officers employees or agents, nor any other person, accepts any liability (direct, indirect or consequential) including, without limitation, any liability arising from fault or negligence, for any loss whatsoever arising from the use of this presentation or its contents or otherwise arising in connection with it (whether foreseeable or not). This presentation should be read in conjunction with other publicly available material. Further information including historical results and a description of the activities of nib is available on our website: www.nib.com.au/shareholders As referenced in this presentation, if there is a change percentage increase or (decrease) between FY15 and FY16 the change shown is the difference between those two percentages. Any discrepancies between totals and sums of components in this publication are due to rounding. All figures quoted are in Australian dollars unless otherwise stated.
FULL YEAR RESULTS 2016
Snapshot Underlying business performance Group revenue 1 grew by $233.8m ( ▲ 14.3%) to $1.9b with underlying operating profit 2 (UOP) up by $44.0m ( ▲ 49.9%) to $132.0m 3 (statutory operating profit of $120.8m ▲ 47.9%). All business segments grew and improved UOP. arhi with organic growth of 19,501 policies grew 3.8% in a very competitive market and with a higher gross margin increased UOP by $22.6m. Businesses other than arhi increased UOP by 132% to $37.5m and accounted for 28.4% of Group UOP (compared to 18.3% in FY15). Within this, World Nomads Group made inaugural contribution of $9.7m. nib NZ doubled UOP to $17.3m. arhi net promoter score of 17.7 compared with 20.7 in FY15. Some media coverage hostile to the industry was unhelpful. Ongoing diversification (World Nomads Group), innovation (Qantas Assure) and disruption (Whitecoat). 1 Excludes non-recurring profit from sale of Newcastle office building. 2 UOP is comprised of underwriting result, other income and expenses including non-underwriting businesses. It excludes amortisation of acquired intangibles, one-off transactions, M&A costs, finance costs, net investment income and income tax. 3 nib’s statutory operating profit includes $11.2m in amortisation of acquired intangibles and one-off transactions and M&A costs. 4
Snapshot Group profitability • Net investment income of $16.9m was lower than FY15 ($31.4m). Previous year included one-off profit on sale FY16 total shareholder return of shares in PSG ($5.4m). (nib versus ASX200) (%) • Net Profit After Tax of $91.8m ( ▲ 22.0%), EPS of nhf ASX200 21.2cps (FY15: 17.3cps). 70 • Final ordinary dividend of 9.0cps ( ▲ 50.0%), fully 50 franked (14.75cps for full year ▲ 28.3%). TSR of 30.0% versus (0.5)% for ASX200. 30.0% 30 10 (0.5)% -10 -30 Jul 15 Aug 15 Oct 15 Dec 15 Feb 16 Apr 16 Jun 16 Source: Bloomberg 5
arhi gross margin improvement a key driver • Claims inflation experience and trajectory favourable. • Lower hospital and ancillary utilisation growth the primary explanation. • nib experience accentuated by tactical product changes in FY15. Annual drawing rate inflation nib versus industry Gross margin nib versus industry (Rolling 12 months) (Rolling 12 months) nib Industry nib¹ Industry 10.0% 18.0% 8.0% 16.0% 6.0% 14.0% 4.0% 12.0% 2.0% 10.0% 8.0% 0.0% 1 Includes risk equalisation Source: nib/APRA 6
Strong operating cash flow correlating with UOP ($m) Operating cash flow UOP 150.0 100.0 50.0 0.0 FY09 FY10 FY11 FY12¹ FY13¹ FY14 FY15 FY16 1 FY12 & FY13 normalised for pre-payments of premiums in May/June 2012 associated with introduction of income testing of Government Rebate. FY12 normalised for pre-payments of premiums in May/June 2012 associated with introduction of income testing of Government Rebate is lower than FY11 mainly due to $7m decrease in distributions received from investment trusts and $10m increase in income. 7
Whitecoat Tackling information asymmetries and improving market efficiency • Whitecoat enables consumers to search, find and book a healthcare provider as well as review their experience. Currently hosts more than 210,000 health care and ancillary providers and over 250,000 customer reviews. • Rapidly expanding to include GPs and medical specialists. • Recent announcement to form JV with BUPA and HBF will significantly expand reach and consumer engagement (~6 million people). Open invitation extended to other insurers and healthcare payers to participate. • Allows insurer/payer to host "customer only" portal for deeper engagement and insurer/payer specific information such as preferred clinical providers and "no gap" arrangements. • When fully developed will also include accredited clinical performance information including self-reported patient outcomes. • Additional near term opportunities to automate patient/provider transactions such as payments and prescriptions. 8
FULL YEAR RESULTS 2016
FY16 Financial Summary Outperformance across key performance areas FY16 FY15 Change Total Group revenue ($m) 1,873.1 1 1,639.3 14.3% UOP ($m) 132.0 88.0 49.9% Amortisation of acquired intangibles, one-off transactions (11.2) (6.4) 75.8% and M&A costs ($m) Statutory operating profit ($m) 120.8 81.7 47.9% Net investment income 2 ($m) 16.9 31.4 (46.2)% NPAT ($m) 91.8 75.3 22.0% Underlying EPS (cps) 22.9 18.3 25.1% Statutory EPS (cps) 21.2 17.3 22.5% Dividend (cps) 14.75 11.5 28.3% ROE (%) 25.8 23.1 2.7% 1 Excludes non-recurring profit from sale of Newcastle office building 2 Net investment income in FY15 benefited $5.4m from of sale of shareholding in Pacific Smiles Group 10
Recommend
More recommend
