nib holdings limited ABN 51 125 633 856 Preliminary final report for the year ended 30 June 2020 CONTENTS Results for announcement to the market 2 Appendix 4E compliance matrix 3 Annual Report of nib holdings limited 6 Appendix 4E For the year ended 30 June 2020 nib holdings limited Results for announcement to the market Movement 2020 2019 up / (down) Movement $m $m $m % Revenue from ordinary activities 2,522.1 2,461.2 60.9 2% Profit from ordinary activities after tax attributable to members 90.1 149.8 (59.7) -40% Net profit attributable to members 90.1 149.8 (59.7) -40% Franking Amount per amount per security (cps) security Interim Dividend Ordinary Dividend 10.00 100% Special Dividend 0.00 100% Total Interim Dividend 10.00 100% Final Dividend Ordinary Dividend ` 4.00 100% Special Dividend 0.00 100% Total Final Dividend 4.00 100% Record date for determining entitlements to the dividend 4 September 2020 Date the final dividend is payable 6 October 2020 Brief explanation of figures reported above: Net profit for the year ended 30 June 2020 as per the Consolidated Income Statement included as part of this Appendix 4E is $89.2 million. Net profit attributable to members is $90.1 million, with the balance of ($0.9 million) attributable to the Charitable foundation. Appendix 4E For the year ended 30 June 2020 nib holdings limited Appendix 4E disclosure requirements nib group Appendix 4E Note Number 1. Details of the reporting period and the previous corresponding All financial data headings period 2. Key information in relation to the following: “Results for announcement to the market” page 2 This information must be identified as “Results for announcement Appendix 4E to the market”. 2.1 The amount and percentage change up or down from the previous corresponding period of revenue from ordinary activities. 2.2 The amount and percentage change up or down from the previous corresponding period of profit (loss) from ordinary activities after tax attributable to members. 2.3 The amount and percentage change up or down from the previous corresponding period of profit (loss) attributable to members. 2.4 The amount per security and franked amount per security of final and interim dividends or a statement that it is not proposed to pay dividends. 2.5 The record date for determining entitlements to the dividends (if any). 2.6 A brief explanation of any of the figures in 2.1 to 2.4 necessary to enable the figures to be understood. 3. A statement of comprehensive income together with note to the Annual Report 30 June 2020: statement, prepared in compliance with AASB 101 Presentation of • Consolidated Income Statement Financial Statements or the equivalent foreign accounting • Notes to the Consolidated Financial Statements standard. - Summary of significant accounting policies Note 1 - Revenue and other income Note 6 - Expenses Note 7 - Income tax Note 8a) 4. A statement of financial position together with notes to the Annual Report 30 June 2020: statement. The statement of financial position may be condensed • Consolidated Balance Sheet but must report as line items each significant class of asset, • Notes to the Consolidated Financial Statements liability, and equity element with appropriate sub-totals. - Deferred tax assets Note 8b) - Deferred tax liabilities Note 8c) - Cash and cash equivalents Note 9 - Receivables Note 10 - Financial assets Note 11 - Deferred acquisition costs Note 12 - Property, plant and equipment Note 13 - Intangible assets Note 14 - Right of use assets and lease liabilities Note 15 - Payables Note 16 - Borrowings Note 17 - Claims liabilities Note 18 Unearned premium liability and unexpired risk Note 19 liability - Premium payback liability Note 20 - Provisions for employee entitlements Note 21 - Other liabilities Note 22 - Contributed equity Note 23 - Retained profits Note 24 - Reserves Note 25 5. A statement of cash flows together with notes to the statement. Annual Report 30 June 2020: The statement of cash flows may be condensed but must report as • Consolidated Statement of Cash Flows line items each significant form of cash flow and comply with the • Notes to the Consolidated Financial Statements disclosure requirements of AASB 107 Statement of Cash Flows, or - Notes to the statement of cash flows Note 9c) for foreign entities, the equivalent foreign accounting standard. 6. A statement of retained earnings, or a statement of changes in Annual Report 30 June 2020: equity, showing movements • Notes to the Consolidated Financial Statements - Retained profits Note 24 Appendix 4E For the year ended 30 June 2020 nib holdings limited 7. Details of individual and total dividends or distributions and Annual Report 30 June 2020: dividend or distribution payments. The details must include the • Notes to Consolidated Financial Statements date on which the dividend or distribution is payable and (if known) - Dividends Note 26 the amount per security of foreign sourced dividend or distribution. 8. Details of any dividend or distribution reinvestment plan in The DRP will be available to shareholders for the operation and the last date for the receipt of an election notice for FY20 final dividend. Further information can be the participation in any dividend or distribution reinvestment plan. found at nib.com.au/shareholders or contacting nib’s share registry on 1300 664 136. 9. Net tangible assets per security with the comparative figure for Net tangible asset backing per ordinary security the previous corresponding period. (cents per share) is 54.77 (62.34 as at 30 June 2019) 10. Details of entities over which control has been gained or lost Annual Report 30 June 2020 during the period, including the following: • Notes to the Consolidated Financial Statements 10.1 Name of entity. - Business combination Note 33 - Interest in other entities Note 34 10.2 The date of the gain or loss of control. 10.3 Where material to the understanding of the report – the contribution of such entities to the reporting entity’s profit from ordinary activities during the period and the profit or loss of such entities during the whole of the previous corresponding reporting period. 11. Details of associates and joint venture entities including the Annual Report 30 June 2020: following: • Notes to the Consolidated Financial Statements 11.1 Name of the associate or joint venture entity. - Interest in other entities Note 34 11.2 Details of the reporting entity’s percentage holding in each of these entities. 11.3 Where material to the understanding of the report – aggregate share of profits (losses) of these entities, details of contributions to net profit for each of these entities, and with comparative figures for the previous corresponding reporting period. 12. Any other significant information needed by an investor to Annual Report 30 June 2020 make an informed assessment of the entity’s financial performance and financial position. 13. For foreign entities, which set of accounting standards is used Not applicable in compiling the report (e.g. International Accounting Standards). 14. A commentary on the results for the period. The commentary Annual Report 30 June 2020: must be sufficient for the user to compare the information • Operating and Financial Review presented with equivalent information for previous periods. The • Directors’ report commentary must include any significant information needed by an investor to make an informed assessment of the entity’s activities and results, which would include but not be limited to discussion of the following: 14.1 The earnings per security and the nature of any dilution • Notes to the Consolidated Financial Statements aspects. - Earnings per share Note 27 14.2 Returns to shareholders including distributions and buy backs • Notes to the Consolidated Financial Statements - Dividends Note 26 14.3 Significant features of operating performance • Operating and Financial Review 14.4 The results of segments that are significant to an • Notes to the Consolidated Financial Statements understanding of the business as a whole. - Segment reporting Note 5 14.5 A discussion of trends in performance • Operating and Financial Review 14.6 Any other factors which have affected the results in the period • Notes to the Consolidated Financial Statements or which are likely to affect results in the future, including Note 31 - Events occurring after the balance sheet date those where the effect could not be quantified. Appendix 4E For the year ended 30 June 2020 nib holdings limited 15. A statement as to whether the report is based on accounts The financial report 30 June 2020 has been fully which have been audited or subject to review, are in the process of audited being audited or reviewed, or have not yet been audited or • Independent auditor’s report reviewed. 16. If the accounts have not yet been audited or subject to review Not applicable and are likely to be subject to dispute or qualification, a description of the likely dispute or qualification. R Toms Date 23 August 2020 Company Secretary nib holdings limited annual report 2020 CONTENTS Page Group Performance Highlights 1 Operating and Financial Review 4 Directors’ Report 14 Auditor’s Independence Declaration 22 Remuneration Report 23 Corporate Governance Statement 45 Financial Report Consolidated Income Statement 47 Consolidated Statement of Comprehensive Income 48 Consolidated Balance Sheet 49 Consolidated Statement of Changes in Equity 50 Consolidated Statement of Cash Flows 51 Notes to the Consolidated Financial Statements 52 Directors’ Declaration 136 Independent