Annual Report 2020 In this report We are an international Strategic Report 02 Operational highlights healthcare company. Over 04 Chairman’s statement 06 Group CEO’s review 08 Business model more than 70 years, our global 10 External context 11 Financial performance footprint has grown from our 12 Customers 16 People 20 Environmental, Social origins in the UK to include and Governance agenda 25 Engaging with businesses in Australia, Spain, our stakeholders 29 Our Market Units 33 Financial review Poland, Chile, Brazil, Mexico, 36 Risks Turkey, the Middle East, the Governance 43 Chairman’s introduction US, Hong Kong SAR, New to governance 44 Board of Directors 46 Leadership Zealand and Ireland. We also 52 Bupa’s system of governance have associate businesses in 61 Audit Committee report 66 Risk Committee report 69 Nomination and Governance Saudi Arabia and India. Committee report 71 Directors’ remuneration report 86 Other statutory information Financial statements 90 Independent auditor’s report 98 Financial Statements Sections with ESG content Cover images Read more about our cover stories here: Customers pages 12-15 People pages 16-19 Our Market Units pages 29-32 and www.bupa.com Disclaimer: Cautionary statement concerning forward-looking statements Bupa undertakes no obligation to update the forward looking statements in this report or any other forward-looking statements we may make. Forward-looking statements in this report are current only as of the date on which such statements are made. This report has been prepared for, and only for, the members of the Company, as a body, and no other persons. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to who this document is shown or into whose hands it may come, and any such responsibility or liability is expressly disclaimed. Neither the content of Bupa’s website nor the content of any other website accessible from hyperlinks on Bupa’s website is incorporated into, or forms part of, this document. Our Market Units Australia and New Zealand Europe and Latin America Bupa Global and UK Other businesses Our Australia and New Zealand Our Europe and Latin America Our Bupa Global and UK Market We work closely with our Market Unit comprises a leading Market Unit comprises Sanitas, Unit includes our UK domestic associate businesses in Saudi health insurer in Australia and our business in Spain, which health insurance business, Arabia (Bupa Arabia and a range of health services includes health insurance, dental centres, aged care, clinics MyClinic) and India (Max Bupa). delivered through our network hospitals, clinics, dental centres and a hospital. In addition, our In China, we have a health of clinics, dental centres and and aged care services; Bupa international private medical insurance and clinics business optical stores. It also includes Chile, a leading health insurer insurance (IPMI) business in Hong Kong SAR, and a residential aged care services and provider; Care Plus, our Bupa Global administers presence on the mainland. in Australia and New Zealand. health insurance business in medical and travel insurance Brazil; and Bupa Mexico, a and medical assistance for domestic insurance business; individuals, small businesses LuxMed, our private healthcare and corporate customers. business in Poland; and Bupa Acıbadem Sigorta, our health 4% 39% insurance business in Turkey. of revenue of revenue We also have an international private medical insurance 2 Private health business in Latin America. Bupa Arabia 26% insurer in Saudi 3.9m of revenue Arabia, in which we have a 43.25% Health insurance customers stake. 2.7m MyClinic2 Health clinics Health insurance customers business in Saudi 1.4m 31% Arabia. Healthcare provision customers of revenue Max Bupa2 Private health (India) insurer in India, 2.3m in which we have 5,800 3.9m Healthcare provision customers a 44.42% stake. Aged care residents Australia Health insurance customers Bupa Health insurance Hong Kong and health provision. 6,000 SAR Aged care residents Bupa China Comprises our 3,500 9m representative Aged care residents Healthcare provision customers office in Beijing New Zealand UK Bupa UK Insurance and an integrated Bupa Dental Care medical centre in Bupa Care Services Guangzhou. Australia Bupa Health 4,800 Bupa Health Insurance Aged care residents Services Bupa Health Services IPMI Bupa Global1 Bupa Villages Spain Sanitas Seguros and Aged Care Sanitas Hospitales Australia and New Services Sanitas Dental Bupa Villages New Zealand Sanitas Mayores and Aged Care New Zealand Poland LuxMed Turkey Bupa Acıbadem Sigorta Chile Bupa Chile Brazil Care Plus Mexico Bupa Mexico IPMI Bupa Global Latin America1 1. Bupa Global includes Bupa Global European Economic Area and associate business Highway to Health, Inc (GeoBlue) in the US. 2. Associate businesses. Bupa Annual Report 2020 01 Strategic Report | Governance | Financial Statements Operational highlights Responding to COVID-19 Throughout the pandemic our priority has been to focus on the welfare of our customers and our people, and to play our part in government and public health responses. Digitalising our products and services In insurance, all businesses accelerated digital programmes to make sure customers could continue to access treatment and care: In Australia, we increased telehealth and mental health support services, developing new ways for customers to access treatment remotely. In Spain, we launched BluaU, the second generation of our Blua digital proposition. We increased our digital customers by 24% year on year and delivered over 640,000 video consultations, 15 times higher than 2019. Supporting our customers In the UK, we enhanced services to provide remote, direct access to GPs, physiotherapists and nurses, and consultants and one another via video or phone. Use of our Digital GP service increased to around 5,000 appointments per week. Across the world, our people worked incredibly hard to support customers and one another, adapting to the changing environment. We invested to keep our customers and our people safe and well, ensure people and operational resilience, and deliver new services in challenging operating environments. 02 Bupa Annual Report 2020 We established a Healthy Communities Joining the Fund to support local charities with national response a particular focus on supporting those hardest hit by the pandemic, and on In Spain, we doubled the number of Intensive Care Unit (ICU) beds by constructing two field mental health and resilience in schools. hospitals in Madrid to support both the public and private health systems and to treat thousands of COVID-19 patients. In the UK, the Cromwell Hospital treated cancer and cardiology patients on behalf of the National Health Service (NHS). In Chile, we worked closely with the government and health authorities to provide additional capacity to the national system. In Poland, we made a hospital in Warsaw available to the public system to treat COVID-19 patients. Delivering essential dental services for patients We continued to support the work of the Bupa Our dental businesses introduced new procedures Foundations in Australia, to ensure the safety of customers and staff and the UK and Spain, increased virtual services. and encourage the involvement of our people in contributing their time and skills in the communities in which we operate. Strengthened our approach to inclusion Staying Protecting residents and staff remained the overwhelming focus, and diversity safe with comprehensive measures and investment in equipment and See pages 16-19 for more and well staff training. Our teams supported about our people. and cared for residents, including their emotional wellbeing and connection with their loved ones. Taking action on climate change We embedded a new emissions reporting tool, developed a new Environment and Climate Action plan, and strengthened our internal ESG governance. Bupa Annual Report 2020 03 Strategic Report | Governance | Financial Statements Chairman’s statement Our teams have focused on supporting The Board has been able to fully support 2020 has been a our customers and contributing to national the leadership team and oversee the year like no other. responses to the pandemic. Across the response to the pandemic, particularly world, our people have pulled together to around risk management and operational The Board and I achieve extraordinary things, truly living resilience, and support for our customers. our values. The Board and I would like to A focus on Environmental, Social and are extremely proud thank all our people working across our Governance (ESG) was central to Bupa’s of the way everyone organisation for everything they do to serve response to COVID-19. A Healthy our customers and to support one another. Communities Fund was established to across Bupa has In the Strategic Report, we summarise support the vulnerable and those hardest responded to the our results for 2020. Our health insurance hit by the pandemic. businesses adapted to the ‘new normal’, 2020 was also Evelyn’s final year as Chief challenge of rapidly accelerating digital services, Executive Officer (CEO). I’d like to recognise COVID-19. developing new products and offering all that she achieved in her eight years at information and support. The pandemic Bupa. The hallmark of her leadership was brought new health and safety demands, her systematic focus on Bupa’s customers considerable disruption and additional and the transformation of many of the operating