Medibank Private (MPL) Investor presentation summary

Resident policyholder growth

• FY23 industry policyholder growth expected at ~2% vs 2.7% in FY22; Adult Dependent Reform estimated to reduce growth by ~0.4%, with no impact on hospital lives.

• FYTD resident policyholder growth was 0.4k, or 0.02%, as at 31 Mar 23; outlook was 0.5%–0.75% for FY23, assuming recent trends continue.

• Retained an additional ~18k adult dependents; service NPS recovered above benchmark levels in both brands, and lapse intent returned to pre-cybercrime levels.

• Expect a strong Q4 and a further customer give-back before 30 Jun 23.

Non-resident growth

• FYTD policy unit growth was 62.0k to 258.5k as at 31 Mar 23, including 28.6k growth in the three months to March; on track for the highest joins in five years.

• Student, worker and visitor visa segments rebounded; working visas exceeded pre-COVID levels, with international student arrivals and digital joins supporting growth.

• FY23 non-resident gross profit expected to approximately double from FY22, with a similar PHI gross margin benefit to 1H23.

Health care models and partnerships

• No-gap joint replacement program available locally to 65% of members; ~4% of joint replacement procedures used the short-stay model, versus 2.2% in FY21.

• Short-stay joint replacement had NPS of 71 versus 55.2 for standard care, ~ $1.4k episode savings, and a 50% lower average hospital stay; estimated total costs were $24k–$27k versus $30k–$33k.

• Hospital contracting approach spans partnership, value-based and base-indexation contracts, representing 55%, 24% and 21% of episodes, respectively; priorities include customer outcomes, value and system efficiency.

• Aurora Healthcare JV plans to invest $31m across three hospitals, adding 153 mental health beds and out-of-hospital support.