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NRMA Annual Report 2018 NRMA Annual Report 2018 3 Section 1 Connecting You Connecting you Annual report 2018 Contents Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Connecting you Value creation Strategy, risks and Performance Governance Financial statements opportunities and outlook and remuneration 06 16 22 28 52 70 About this report Who we are Our strategic priorities Financial highlights Role of the Board Consolidated statement of profit or loss and 07 18 24 30 55 comprehensive income At a glance Finding tailwinds Risk governance Operations and assets Focus areas of the Board 71 09 19 38 56 Consolidated statement of Highlights Creating shared value Membership Board of Directors financial position 12 42 60 72 A message from the Chair People and culture Board meetings Consolidated statement of changes in equity 13 46 61 A message from the Reputation Board committees 73 Group CEO Consolidated statement of 64 cash flows Remuneration 114 66 Directors’ Declaration Directors’ Report 115 Independent Auditor’s Report Patrol Ben Davison, Kiama, NSW 2 NRMA Annual Report 2018 NRMA Annual Report 2018 3 Section 1 Connecting you 06 About this report 07 At a glance 09 Highlights 12 Message from the Chair 13 Message from the Group CEO 4 NRMA Annual Report 2018 NRMA Annual Report 2018 5 Inside this report Connecting you At a glance 1. Overview and highlights The report begins with an overview of the NRMA, where our Chair and Group Chief The NRMA has a proud history of keeping people Executive Officer share the Connecting you with more ways to keep moving year’s performance and their moving – our unrivalled roadside assistance has outlook for the future. been helping people get going for 98 years. Today, The NRMA is driven by the commitment Our activities and the 2. Value creation as Australia’s largest member organisation, we’re to keep people moving. With roadside services we offer Discover who we are, how assistance at our core for almost 100 years, and why we do business, our evolving to meet the changing needs of our Members we’re responding to a shift in the way • Roadside - Membership assistance corporate values and how we people think about the future of transport, services create shared value for our and customers, broadening our core services beyond travel and motoring. • Accommodation and travel services Members, our business and motoring to provide greater transport options and • Car and commercial vehicle rental the community. One of the greatest pressures confronting services accessible tourism opportunities; connecting you with our Members today is rapid growth of our • Car servicing and repairs 3. Strategy, risks and urban areas, which is changing how we • Driver training opportunities even more ways to move. live in Australia. As populations in our cities • Marine transport and tourism services A view of our strategic priorities continue to grow, so does the pressure on • Electric vehicle fast charging network and key business risks. In this our roads and public transport systems. • Member advocacy section we share how we plan It also places pressure on our regional • Investments to implement our strategy over About this report communities as resources are directed • Community and education programs the coming year, including the away from rural areas towards cities. At risks we may face and how we This report covers our most important for our Members, business and the the NRMA, we are ready to face these are managing them. issues as determined by the NRMA with community over the short, medium and challenges head on, evolving to make consideration for our key stakeholders long-term. sure we remain positioned to provide 4. Performance and outlook including Members, partners, suppliers, even better transport options and tourism Access an in-depth view of thought leaders and customers. Our most Our value drivers underpin our ability to services to our 2.6 million Members and the how we are performing, the important issues are the issues the NRMA create value over time and are discussed 4.9 million Australians who engage with the progress we have made against leadership believes could substantially in more detail throughout the report. NRMA each year. our strategy, our outlook and influence the value created by the NRMA the value we have created for our Members, the people in our business, our communities and We are ready to face the the environment. challenges of urbanisation 5. Governance head-on, creating new An overview of our approach to governance and the role opportunities to deliver of the Board and committees. In this section, we highlight Financial capital: Operations and assets: more value, more often. the Board’s key focus areas, The funds and assets available Our operations and physical assets including composition and remuneration. to the NRMA. buildings, vehicles, vessels and equipment we use to deliver great products and services. 6. Financial statements We present a summary of our financial performance and cash flow information, including the Director’s declaration and independent auditor’s report. 7. Global Reporting Initiative Brand, knowledge and trust: Our people and culture: (GRI) Index Our commitment to putting our Members Our great people, culture Our GRI Index and sustainability and customers first, our specialist knowledge and diversity. management disclosures can be and independent voice. found on our website mynrma.com.au. This report has been prepared with reference to the Integrated Reporting <IR> framework. Reputation: Our partnerships, networks and the communities we reach and the natural environments in which we operate. 6 NRMA Annual Report 2018 NRMA Annual Report 2018 7 Highlights Connecting you with more Connecting you with more value, more often. It’s been an exciting year as we focused on new ways to deliver more value to our Members, opportunities to get the most more often - not only in our products and services but also in how we do business. The assistance we offer has evolved far beyond the roadside as we actively seek out opportunities to be there for our Members as they move through everyday life. Our out of life, every day. investment in transport and tourism, including our acquisition of Manly Fast Ferry (renamed My Fast Ferry) and the expansion of our network of holiday parks, means we’re not just here when things go wrong; we’re here to improve our Member’s quality of life with everyday opportunities to make life easier. We’re offering new ways to travel to and from work, facilitating leisurely weekend getaways, finding cheaper fuel prices and providing even more Member benefits through the new NRMA Blue. Connecting you with... Peace of mind A voice for change Delivering unwavering assistance with Driving change as one of Australia’s most trusted 1.6 million calls for help answered. brands on advocacy issues such as the future of transport and road safety. NRMA Blue Great people We’ve unlocked $112.0 million in Member benefits Our 2,670 diverse and engaged staff are focused and launched NRMA Blue, delivering value across on helping our Members. 3,000 products and 35 partners including fuel, travel and accommodation discounts. Blue highways Your community Moving more than 3.58 million passengers Engaging 75,768 school kids on safety and the with My Fast Ferry. future of transport. New destinations to discover A financially sustainable mutual People spent 1.7 million nights in our parks, $129.3 million profit before income tax resorts and hotels in iconic Australian locations. (17% increase FY17 $111.0 million) $103.5 million operating cash flow (4% increase FY17 $99.3 million) $1,091.4 million net assets (11% increase FY17 An electric future $983.8 million) We’re developing one of Australia’s largest electric Manly to Circular Quay vehicle fast charging networks, which is free for fast ferry service. Members and powered by 100% renewable energy. 8 NRMA Annual Report 2018 NRMA Annual Report 2018 9 Member road trip Dubbo with NRMA Blue Almost half of Australian families have seen the cost-of-living The NRMA family road trip kicked off to show how jump by more than 10% Day 1: Dubbo in the last year. NRMA Blue can provide families ways to save on day-to- Savings of $43.20 on Caltex fuel, day costs, as well as making holidays more affordable. a visit to Western Plains Zoo and accommodation at NRMA Bathurst Panorama Holiday Park. Meet Illawarra locals and NRMA Members, Armed with only the my nrma app, they were the Coghlan family. We sent Mum Bec, Dad able to book accommodation, car hire, a fast Nigel and their kids Grace and Ollie on an ferry ride, and visits to attractions including iconic NSW road trip over four days. Their Featherdale Wildlife Park, Taronga Western journey began in Dubbo. Their mission: visit Plains Zoo and Luna Park. Even better, they NRMA Blue offers as many NRMA Blue partners as possible and did all this while having access to NRMA Blue discounts on fuel, use their Membership wherever they go. discounts on fuel, parking and so much more. insurance, travel and entertainment, that could save the average family $806 a year. Day 2: Bathurst Savings of $61 on a visit to the Jenolan Caves, lunch at Echo Point and accommodation at Travelodge Blacktown. 60% of Australian families only take holidays once a Day 3: Blacktown year or less. Savings of $58.40 on a visit to Featherdale Wildlife Park, Treetops Adventure Park, Caltex fuel and accommodation at Travelodge Wynyard. Day 4: Sydney Saved $80.43 on a visit to Sealife Sydney, My Fast Ferry and a free Spotify trial. Sydney 10 NRMA Annual Report 2018 NRMA Annual Report 2018 11 A message A message from the Chair from the Group CEO Dear Members, been the highest in almost a decade.
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