Medibank Private : HY22 Results - Appendix 4D and Financial Report (PDF - 634 KB)

25 February 2022

Medibank Private Limited (MPL) - Financial results for half year ended 31 December 2021

In accordance with the Listing Rules, Medibank releases the following documents to the market:

1. HY22 Results - Appendix 4D, Directors' Report and Financial Report;
2. HY22 Results - Media Release; and
3. HY22 Results - Investor Presentation.

These documents have been authorised for release by the Board.

Medibank Private Limited ABN 47 080 890 259 GPO Box 9999 Telephone 132 331 medibank.com.au

APPENDIX 4D

Under Listing Rule 4.2A

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MEDIBANK PRIVATE LIMITED

RESULTS FOR ANNOUNCEMENT TO THE MARKET

	Half-year ended
	31 Dec 2021	31 Dec 2020	Movement	Movement
	$m	$m	$m	%
Health Insurance premium revenue	3,461.4	3,328.9	132.5	4.0%
Medibank Health revenue	119.8	113.3	6.5	5.7%
Revenue (excluding net investment and
other income) from ordinary activities	3,581.2	3,442.2	139.0	4.0%
Net investment and other income	31.4	73.1	(41.7)	(57.0%)
Total income from operations	3,612.6	3,515.3	97.3	2.8%
Profit after tax from ordinary activities
attributable to shareholders	220.2	226.4	(6.2)	(2.7%)
Net profit attributable to shareholders	220.2	226.4	(6.2)	(2.7%)

For further information refer to the directors' report in the attached interim financial report of Medibank Private Limited for the half-year period ended 31 December 2021.

Dividend information

On 30 September 2021, a fully franked final ordinary dividend of 6.90 cents per ordinary share was paid to shareholders, in respect of the six months ended 30 June 2021.

A fully franked interim ordinary dividend of 6.10 cents per ordinary share was determined on 25 February 2022 in respect of the six months ended 31 December 2021. This dividend is payable on 24 March 2022 to shareholders on the register as at close of business on 7 March 2022.

Net tangible assets per ordinary share

Net tangible assets are defined as the net assets of the Medibank Private Limited Group less intangible assets (including right-of-use assets).

			31 Dec 2021	31 Dec 2020
			cents	cents
Net tangible assets per ordinary share			56.0	51.9
Details of equity accounted investments
		Ownership interest %
Name	Type	31 Dec 2021	30 Jun 2021	31 Dec 2020
East Sydney Day Hospital Pty Ltd	Associate	49%	49%	49%
Calvary Medibank JV Pty Ltd	Joint Venture	50%	50%	50%
Myhealth Medical Holdings Pty Ltd	Associate	49%	49%	-
Adeney Private Hospital Pty Ltd	Associate	49%	49%	-

This report should be read in conjunction with the Medibank Private Limited annual financial report for the year ended 30 June 2021, together with any public announcements made by Medibank Private Limited in accordance with its continuous disclosure obligations.

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MEDIBANK PRIVATE LIMITED

ABN 47 080 890 259

INTERIM FINANCIAL REPORT

31 DECEMBER 2021

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Table of contents

Directors' report	1
Auditor's independence declaration	4
Consolidated interim financial report
Consolidated statement of comprehensive income	5
Consolidated statement of financial position	6
Consolidated statement of changes in equity	7
Consolidated statement of cash flows	8
Notes to the consolidated interim financial report	9
Directors' declaration	24
Independent auditor's review report	25

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Directors' report

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The directors of Medibank Private Limited (Medibank) present their report on the consolidated entity consisting of Medibank and the entities it controlled (collectively referred to as the Group) for the half-year ended 31 December 2021.

Directors

The names of directors in office during the half-year and up to the date of this report, unless stated otherwise, are as follows:

Current:
• Mike Wilkins AO - Chairman
• David Koczkar - Chief Executive Officer
•	Dr Tracey Batten
•	Anna Bligh AC
•	Gerard Dalbosco
•	David Fagan
• Linda Bardo Nicholls AO
Former:
• Peter Hodgett (retired effective 18 November 2021)
• Christine O'Reilly (retired effective 18 November 2021)
Review of operations
Six months ended 31 December ($m)		2021	2020	Change
Group revenue from external customers		3,581.2	3,442.2	4.0%
Health Insurance operating profit		280.9	254.6	10.3%
Medibank Health segment profit		25.7	18.8	36.7%
Segment operating profit		306.6	273.4	12.1%
Corporate overheads		(20.1)	(18.2)	10.4%
Group operating profit		286.5	255.2	12.3%
Net investment income		30.9	71.8	(57.0%)
Amortisation of intangibles		(1.0)	(3.4)	(70.6%)
Other income/(expenses)		(3.2)	(1.7)	88.2%
Profit before tax		313.2	321.9	(2.7%)
Income tax expense		(93.0)	(95.5)	(2.6%)
Group net profit after tax (NPAT)		220.2	226.4	(2.7%)
	Effective tax rate		29.7%	29.7%	-
Earnings per share (EPS) (cents)		8.0	8.2	(2.7%)
Normalisation of growth asset returns		(7.4)	(13.2)	(43.9%)
Normalisation for defensive asset returns		(0.4)	(9.8)	(95.9%)
Underlying NPAT1		212.4	203.4	4.4%
Underlying EPS (cents)1		7.8	7.4	4.4%
Dividend per share (cents)		6.10	5.80	5.2%
Dividend payout ratio1		79.1%	78.5%	0.8%

1. Underlying NPAT is statutory NPAT from total operations, normalised for investment returns to historical long-term expectations, credit spread movements and one-off items. Dividend payout ratio based on Underlying NPAT.

Group

Our businesses have been resilient during the COVID-19 pandemic and we have delivered operating profit growth in both the Health Insurance and Medibank Health businesses, which grew $26.3 million (10.3%) and $6.9 million (36.7%) respectively. Whilst group operating profit was up 12.3%,this was offset by a $40.9 million or 57.0% decrease in net investment income, resulting in group net profit after tax decreasing 2.7% to $220.2 million (1H21: $226.4 million). As we enter the second half of the financial year, we are well positioned to invest for further growth with good momentum in the business and a strong balance sheet.

The key reasons for the movements in the Health Insurance and Medibank Health results, as well as net investment income, are outlined in this report.

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