Medibank Private Limited (MPL) Earnings Call Transcript & Summary

[Presentation] Good morning, and thank you for joining me today for Medibank's 2021 Annual General Meeting. My name is Mike Wilkins. And on behalf of the Board, I welcome you from the many First Nations lands we're connecting from this morning. I join you from the land of the Gadigal people of the Eora Nation, and I respectfully acknowledge their continuing connection with the land and waters, and thank them for protecting this coastline and its ecosystems since time immemorial. I pay respects to elders past, present and emerging, and extend that respect to all Aboriginal and Torres Strait Islander peoples joining us today. I now formally declare the meeting open. Joining me on video link from Melbourne is David Koczkar, who was appointed as our CEO in May of this year. On the phone, we have your Board of Directors: Tracey Batten; Anna Bligh; David Fagan; Peter Hodgett; Linda Nicholls; Christine O'Reilly; and Gerard Dalbosco, who is standing for election today. Also joining us via audio is our Company Secretary, Mei Ramsay, and the full Medibank executive leadership team. We're meeting virtually for a second year due to COVID, just one of the many changes we've all had to make in our lives over the past 20 months. At our AGM last year, Australia had a total of 27,000 cases. Fast forward to this week, and we're now looking at an almost sevenfold increase to more than 190,000 cases. One point of difference to last year is the availability of growing uptake of COVID vaccines. Myself, my fellow directors and every member of the leadership team are among the millions of Australians who have chosen to be fully vaccinated for themselves and for others. It's an issue that Medibank has put its full weight behind and David will talk to that in more detail shortly. At this stage, I'd like to run through some procedural details. We've worked hard to ensure that our AGM broadcast runs smoothly. But if you experience any technical difficulties during the meeting, please call the number on the screen. As well, a recording will be available on our website after the meeting. If the AGM needs to be adjourned at any time due to technical or other reasons, we'll provide further instructions and information on our website and the ASX. As set out in our Notice of Meeting, shareholders will be able to vote in real time during the meeting using the Lumi online platform. To provide shareholders the greatest possible opportunity to vote, I now formally open the polls on all resolutions. I also now formally cast all votes for proxies I hold on all resolutions in accordance with the directions provided by shareholders or as set out in the Notice of Meeting. For those of you who are entitled to vote, the voting icon will appear on your navigation bar shortly. Once you click on this icon, you will see the resolutions on your screen. To cast your vote, select one of the options: for, against or abstain for each resolution. Your selection will be highlighted, and the vote is automatically recorded, but you have the ability to change your vote at any time until I declare voting closed. I should give you a warning when I'm going to close voting. Shareholders entitled to ask questions may do so through the Lumi platform in written or audio form. [Operator Instructions] I'll now make some comments on our 2021 performance and then hand over to David for his comments, including an update on our 2022 financial year outlook. COVID has continued to put health at the top of mind in the community and influence many of the ways we worked in the 2021 financial year. We provided more health support to more people with our investments and partnerships with health care providers, enabling us to continue to respond to our customers' needs in the current environment. Importantly, these investments and partnerships also underpin our transformation to a health company and set us up to meet the broader needs of our customers into the future. We've continued to support our customers with Medibank's financial support so far in excess of $300 million. This figure not only reflects the extent of our response to COVID, but also demonstrates our commitment to not profit from the pandemic. Against the backdrop of COVID, we're pleased to deliver a solid financial performance in the 2021 financial year, alongside strong policyholder growth and increasing market share and record customer advocacy. We also maintained our ongoing cost discipline. Health Insurance operating profit was up 14.4%, while Medibank Health segment profit rose 12.9%. This contributed to an overall group net profit after tax of $441.2 million. This increase of 39.8% on the 2020 financial year also includes the impact of investment income being $117 million above last year when markets were impacted negatively by COVID. The results enabled us to pay shareholders a full year ordinary dividend of $0.127 per share fully franked, some 5.8% above last year. This represents a payout ratio of 87.7% of underlying net profit after tax, which is marginally above the top end of our target payout ratio range of between 75% and 85%. Importantly, our capital position remains strong with the Board continuing to adopt a prudent approach to capital management. At Medibank, we believe our obligations extend beyond simply the financial with environmental, social and governance considerations firmly embedded across every aspect of our business. On this front, we continue to make progress in a number of key areas, including those aligned to the United Nations Sustainable Development Goals. The COVID pandemic has exacerbated some of these global issues, including gender equality and labor exploitation. On gender equality, we've continued to deliver against our strong gender targets, including having a 0% pay gap in FY '21. At Medibank today, women make up 51% of group and senior executives, and we're very proud of both of these achievements. Our leadership in this area is part of our broader diversity and inclusion focus on building a team that reflects the community we're part of and a culture that supports everyone to be at their best. Removing barriers for people from diverse backgrounds, including people with the disability, also continues to be a focus for us. Amongst many other things, COVID has also tightened supply chains which in turn has increased the risk of modern slavery in some jurisdictions around the world. We set out the nature of our operations and supply chain in our first modern slavery statement last year. Later this year, we will report on how we continue to address the risk of modern slavery, including our work to further assess and engage with our suppliers. Another area of ongoing focus for Medibank is our commitment to reconciliation and greater health quality for Australia's First Peoples. This has been at the heart of our first 4 reconciliation action plans just as it will be for the fifth plan, which will release early next year. During the year, we rolled out training to our people in order to build a greater understanding of the culture, history and perspectives of traditional owners. Additionally, we're partnering with the Australian Indigenous Doctors' Association to support better health access, experiences and outcomes for Aboriginal and Torres Strait Islander people. COVID has further highlighted the health gap that persists in Australia with Medibank providing support to 1 indigenous community for the purchase of personal protective equipment, hand sanitizer, bed linen and medications. But COVID has also demonstrated the incredible strength and resilience of First Australians. On the cover of our sustainability report is Captain Sanitizer from one of our partners, Thamarrurr Youth Indigenous Corporation. This community leader, turned superhero, set off from Bright in June on a 6,000-kilometer motorbike ride to spread messages of COVID safety and empowerment to young people along the way. We've also continued to progress our environmental agenda in our capacity as a corporate leader and health company that recognizes the health impacts of climate change. This includes a commitment to net zero by 2050 and aligning our reporting to the recommendations of the Task Force for Climate-related Financial Disclosures. As part of this, we completed a climate scenario analysis to look at the risks and opportunities of climate change on our business. We expect to be fully aligned to the TCFD framework later this financial year when we set science-based short-, medium- and long-term targets. Our ongoing energy reduction efforts and progressive switch to renewables will likely see us achieve net zero for scope 1 and 2 by 2025. While the time frame for scope 3 will be longer given the complexity of reducing emissions in our broader value chain, we will be actively seeking opportunities to expedite the process and bring forward our net zero goal. The 2021 financial year was another challenging year for all Australians. However, Medibank has come through that year in good shape and is well positioned for the future. This is in no small measure due to the efforts of our people who remain focused and committed. Medibank's purpose of better health for better lives runs deep in our organization. And on behalf of the Board and you, our shareholders, I want to thank everyone across the company for showing this to be the case every day. I also want to thank our CEO, David Koczkar, and the executive team for their leadership during a challenging year. It would be remiss of me not to also mention Craig Drummond who retired as CEO in May and whose contribution to the company during his tenure was very significant. I also acknowledge and thank my Board colleagues for their continuing focus, wise counsel and support. In this regard, I particularly want to mention Christine O'Reilly and Peter Hodgett who will both be retiring from the Board at the conclusion of this meeting. Christine has shared her significant financial and operational experience with the Board over the past 7 years, and Medibank benefited greatly from her contribution and insights throughout this time. Peter has had a significant influence on Medibank's capital frameworks as well as being central to the company's adoption of more sustainable investment practices, including oversight of our responsible investment policy. Thank you both for your contribution to Medibank from government ownership through to ASX listing and up to today. Our search to replace Christine and Peter is well underway. And finally, I want to thank you, our shareholders. Your continued support has allowed us to look after the health and well-being of millions of Australians, and we look forward to helping many more in the years ahead. I'll now ask David to update us on the company's strategy, direction and current performance.

Thank you, Mike, and good morning, everyone. I'd like to acknowledge the Traditional Owners and Custodians of the land on which I join you from today, home of the Wurundjeri people. I pay my respects to elders past, present and emerging. And I extend my respects to all elders on the lands on which we work and live. This year, as COVID continued to impact our lives and plays even more pressure on our health system, more and more people chose to prioritize their health and well-being and find greater value in private health insurance. And we were there for them. We were able to step up and provide broader support to our customers and community during this period because of the investments we have made over the last few years. We brought health care to people in their homes and communities through our virtual care, telehealth and in-home care programs. We made it simpler and easier for our customers to manage their health and well-being and navigate the health care system in an informed way, personalizing their experiences to make health more accessible. We intensified our focus on preventative health, developing new support programs, inspiring people to eat, move and feel better and rewarding them for taking healthy actions through our Live Better activities and rewards program. We collaborated with doctors and hospitals to develop new models of care, built around the needs of patients and supported the expansion of the short-stay, no-gap joint replacement model to hospitals across the country. We helped our customers through COVID with the biggest support package in our 45-year history. Our financial support sits at around $300 million, including $103 million in claims savings we recently returned to customers through premium relief, with customers receiving up to $52 for extras-only policies and up to $175 for hospital and extras policies. We've also provided financial hardship support to more than 60,000 of our customers. We remain committed to returning any permanent net claim savings due to COVID to our customers, and we will continue to assess the financial implications of the extended lockdowns in New South Wales, Victoria and the ACT. We adapted the way we worked, prioritizing the health and well-being of our people and empowering them to deliver better customer experiences. And all the while, managing our own costs. As a result, we saw our strongest growth in more than 10 years with market share up 37 basis points. We increased policyholders by almost 83,000, with more customers choosing to hold on to their health insurance or take out cover for the first time. We achieved our highest ever customer advocacy levels for both Medibank and ahm, and saw customers engage with our health programs in record numbers, and also grew our Medibank Health segment profit by 12.9%. This demonstrates that focusing on our customers' needs and being disciplined in how we run our business has allowed us to deliver strong results for you, our shareholders. We've also played a greater role in helping the community through COVID. In New South Wales and Victoria, we've supported almost 14,000 COVID-positive patients in their homes through our partnership with Calvary, assessing the right level of care they require or providing telehealth support and virtual care through our COVID Care at Home program. We provided over 60,000 hours of contact tracing in 3 states and assisted federal and state governments through phone support, welfare checks, in-home COVID testing and mental health counseling services. And we are supporting the government's drive to reach vaccination targets. As a health company, we know vaccination is crucial to protecting the health of the community and helping us get back to a normal way of life. And this is why we require our people to be fully vaccinated to attend a workplace or work event. We've also been encouraging our customers to get the jab, rewarding eligible customers who are fully vaccinated with 1,000 Live Better points. To date, almost 37,000 customers have claimed almost 37 million points that can be redeemed for savings on their health cover, boosts to extras and other rewards. The way we think about health and well-being, the expectations of our customers and how we interact with the health system and also the way we work, all have been changed because of COVID. While Australia has avoided the worst-case scenario seen in many countries, we're not immune to the longer-term health implications of COVID. And these are shaping our approach to supporting the health and well-being of our customers, our people and the community as we move into the next phase of the pandemic. Key amongst these is COVID's impact on people's mental health. The number of young people in the workforce reporting high levels of psychological distress has doubled during the pandemic. And our research shows that the majority of parents are very concerned about COVID's effect on the emotional well-being of the young adult children. Mental health has been a focus for us for many years. And with 1 in 5 Australians experiencing a mental health issue each year, we've been working to make it easier for people to get the help they need, whether that be preventative support and self-help, care in the community or in-hospital psychiatric care. This year, we've stepped up our support. We launched our Better Minds website and app, which offers well-being checks, self-help skills, information and resources connecting people to support services, and which has already seen more than 40,000 visits since August. Last year, we added counseling services and telehealth services for psychology to our extras cover. And just a few weeks ago, we introduced our new My Choice Extras product, which incorporates both psychology and counseling services as part of its core product, to ensure these services are more accessible for our customers. At the more acute end of treatment, we're supporting hospital trials in Queensland and Victoria to deliver a new approach to mental health care. It's helping people achieve their mental health goals by offering a more personalized approach, which combines a shorter stay in hospital with more intensive in-home support where clinically appropriate. Another key concern is the drop in diagnostic testing and scans that has occurred during the pandemic. It's estimated that there were almost 164,000 fewer diagnostic procedures for cancer, like colonoscopies and mammograms last year, and more than 0.5 million fewer eye tests conducted and over 1.6 million fewer imaging tests, like ultrasound and MRIs. Added to this is the impact of elective surgery restrictions that have occurred during lockdowns and which we are still in place in Victoria, further intensifying the pressure on already long public surgery waiting lists, which continue to be twice as long as in the private system. The emotional strain on doctors, nurses and paramedics is also evident with 30% of health care workers recently reporting burnout. This is why we are taking the lead on driving preventative health. It is core to our purpose of better health for better lives. We also know our customers want personalized support to improve their health and well-being. So we are scaling and expanding our preventative health programs, embedding more health expertise across our customer-facing teams and rewarding customers for preventative health activities. Earlier this year, more than 8,000 customers receive Live Better points for getting their blood pressure checked. And this month, we're awarding people to do a skin check. It's also why we've invested in the Myhealth Medical Group of GP clinics this year to support them in expanding their footprint and transforming their approach to providing preventative health care for patients. In the longer term, our focus on preventative health will be key to helping ensure the overall sustainability of the health system. But preventative care will not be enough for many Australians, with hundreds of thousands of our customers needing treatment every year. This is why we will continue to partner with leaders in the health sector to develop innovative new patient-centered models that can provide leading care and more choice. Not only have our new approaches to care this year delivered greater value and more treatment options for our customers in private health, they are also supporting the public health system. In January, we launched My Home Hospital, a wellbeing SA service we are delivering in a joint venture with Calvary, which has provided hospital-level care in the home to more than 1,450 public patients in South Australia to date. And we think this model has room to expand to support patients in other parts of Australia. We know this is part of the important role Medibank has to play in helping ensure Australia's health system can continue to meet the ongoing needs of all people in Australia. Continued innovation will be necessary to sustain quality health outcomes in Australia and is why it's core to Medibank's strategy. We've also continued to work with key stakeholders to pursue much needed prostheses reform as Australians and private health insurance have been paying too much for these devices for too long and reforms could save the industry up to $500 million. The federal government has committed to this reform, and we expect to see further price reductions in prostheses in 2022, although the savings may be spread over a couple of years. And as I said previously, we will pass on prostheses reform savings to our customers through lower premium increases. We continue advocating for other reforms that improve health care affordability by supporting change to make the health system more patient-centric while reducing waste and improving efficiency. We're focused on reforms encouraging greater participation in private health insurance, such as the government's current review into the Medicare levy surcharge and extending the age a young adult can stay on a family policy from 24 to 31 years old. Reform is important, but it's not the only factor that determines our success. We will continue to do what we can to actively drive the change we know is required to improve the sustainability and strength of our health system by improving choice and affordability. This drive for systemic change is what sits at the heart of our approach to sustainability. As the company strategy has matured, so too has our approach to environmental governance and social issues. Now our business goals and the United Nations Sustainable Development Goals that we are working to support are fully aligned. As we transform into a health company, preventative health and new models of care will see us provide people with even more support to manage their health and well-being. Our dual brand strategy in the private health insurance market will continue to give people more choice and value while meeting the distinct needs of Medibank and ahm customers. Across both brands, our strong digital connections are supporting the day-to-day engagement with our customers and enabling a more personalized and connected health experience whether it's managing their cover or better navigating the health system through to participating in a virtual care program to help manage in their chronic knee pain or being rewarded for being more active. Our digital capability, in addition to our traditional retail and phone channels, provides our customers with an overall experience unlike others, by increasingly bringing together our health insurance and health and well-being offerings. In 5 years, we've tripled the number of customers who have registered to use the My Medibank app. And in FY '21, had almost 6.5 million digital or virtual health engagements with our customers. As we continue to accelerate our capability in these areas, so too will we accelerate the growth of our business. Our strategy has evolved, but our customers and people remain at the center of everything we do. Our ambition is bold as we look to our future as a health company and our purpose of better health for better lives. Turning now to an update on our outlook that we provided to the market at our financial results in August. As mentioned, we remain committed to returning any permanent net claims savings due to COVID back to our customers, and we expect to confirm our next wave of customer support before the end of the year. Our strong policyholder growth has continued with the addition of around 21,000 policyholders in the first 4 months of this financial year. Given this growth and our assumption that industry participation growth will be slower in FY '22 relative to FY '21, we are now aiming to achieve at least 3% growth in FY '22, including growth in the Medibank brand. While the most recent COVID lockdowns in Victoria and New South Wales have impacted the health system in recent months, on an underlying basis, we still expect average net claims per policy unit to be in line with the second half of FY '21 or 2.4% amongst resident policyholders. The remainder of our outlook is unchanged. I would like to thank you all for your ongoing support of Medibank. And while I speak to you today as CEO, I do so on behalf of almost 4,000 team members and our partners, whose hard work I'd like to acknowledge and of whom I'm so proud to work alongside. I'd also like to thank Mike and the Board as well as the executive leadership team for their support and guidance over the past 6 months and recognize the significant contribution of our former CEO, Craig Drummond. As we have navigated another year of uncertainty, lockdowns and restrictions, I have been struck by the tenacity and resilience of our people, how they have rallied together and supported one another while always staying focused on doing the best they can for our customers, our community and you, our shareholders. Our people are committed to our purpose and optimistic about our future, as I hope are you. I'll now hand back to you, Mike.

Thank you, David. We've now reached the formal business of our meeting. Given today's virtual format, I'll first run through the meeting procedures in some detail. This is a shareholder meeting. And as such, only shareholders, their attorneys, proxies and corporate representatives may vote and ask questions. [Operator Instructions] Please note, in the interest of time, we may need to summarize questions that are particularly lengthy or moderate questions to avoid repetition. [Operator Instructions] Thank you to those shareholders who have sent us questions in advance of today's meeting. For some questions where relevant, we responded to that shareholder ahead of the meeting. We'll address the remaining questions during the period for questions later in the meeting. [Operator Instructions] Questions will come through to me as Chairman of the meeting. Each question will be read out, and I'll either answer it or pass the question to the person most appropriate to answer. [Operator Instructions] If you have personal matters to discuss about your health insurance, please call 1 (300) 369-968 today until 6 p.m. or tomorrow from 9 a.m. to 6 p.m., Melbourne time. I'll now repeat the procedure for voting on the Lumi platform. If you're eligible to vote, a voting icon will appear on your screen's navigation bar. Once you've clicked on this icon, you will see the resolutions on your screen. To cast your vote, select one of the options: for, against or abstain for each resolution. Your selection will be highlighted and the vote is automatically recorded, but you have the ability to change your vote at any time until I declare voting closed. There are 4 items of business before the company's Annual General Meeting this morning. These are set out in the Notice of Meeting, which you would have received. Three of these are to be voted on and will be determined by a poll. As I indicated earlier, the polls are open. Given we're meeting virtually and are using a number of different formats of technologies to take shareholder questions, we'll present all items of business at the same time and then provide an opportunity for questions after all items of business have been introduced so that we can accommodate as many questions as possible. Medibank's share registry, Computershare, has given me a report of the proxy voting instructions received for each item of business. As advised in the Notice of Meeting, open proxies held by me as Chairman of the meeting have been cast in favor of each resolution. The poll will close shortly before the end of this meeting, allowing shareholders and proxyholders present to cast their votes. I'll give you advance notice ahead of closing the voting. We'll now move to the first item of business. This item is not subject to a vote, and therefore, does not require you to cast a vote on the Lumi platform. The Medibank financial statements for the year ended 30 June 2021, the directors' report and the auditor's report were released to the ASX and published in the annual report and on the company's website. As previously mentioned, we'll take questions on this item following the introduction of all items of business. In addition, the company's auditor, PricewaterhouseCoopers, is represented here today by Colin Heath and Kerry Murray, who are available to respond to questions about the audit of the accounts. We'll now move on to item 2, which is the election of Gerard Dalbosco as a Director. Gerard was appointed as a Director on the 21st of May 2021. Ordinarily, directors standing for election would briefly address the meeting to detail the knowledge and experience they bring to Medibank. This year, given the virtual format of the meeting, Gerard will not personally deliver a speech, but will be available on teleconference to answer questions during the discussion period later in the meeting. Gerard's biography can be found in the Notice of Meeting. Your Board, with Gerard abstaining, recommends unanimously that you vote for Gerard's election on the basis of his skills, qualifications and experience. Now moving to item 3 of the items of business. Item 3 relates to the remuneration report, which is put to the meeting in accordance with the Corporations Act. The resolution is to adopt the remuneration report for the year ended 30 June 2021. Medibank aims to reward executives fairly for delivering the company's strategy in a manner that meets community and customer expectations and delivers sustainable shareholder returns. The remuneration report provides extensive disclosure of director and executive remuneration and as set out on Pages 50 to 74 of the annual report. Under the Corporations Act, this vote is advisory only. However, as directors, we give serious consideration to the voting results and comments made upon this item when we review the company's remuneration policies. The Board recommends that you vote to adopt the remuneration report. Linda Nicholls, the Chair of the Board's People and Remuneration Committee, is attending via teleconference and will be available to respond to your questions during the discussion period. We now turn to item 4, the final item of business. The resolution is to approve the granting of performance rights to David Koczkar, Chief Executive Officer, to be issued in accordance with Medibank's 2022 long-term incentive plan. Medibank's long-term incentive plan is detailed in the remuneration report and is designed to align the interest of the Chief Executive Officer with the interests of shareholders, and to this end, put a significant portion of his remuneration at risk. The rights to be granted are detailed in the Notice of Meeting, along with the vesting conditions. It's important to understand that the performance rights only vest in shares for the Chief Executive Officer on the achievement of performance hurdles, which are aligned to shareholder interests. If the performance hurdles are not achieved, then the Chief Executive Officer will receive no shares. If the performance hurdles are met, then the rights will convert to shares, which the Chief Executive Officer will receive. The outcome of the performance rights will be detailed in the remuneration report following the conclusion of the performance period on the 30th of June 2024. Your Board, other than David Koczkar, recommends that you vote in favor of this resolution. We've now completed our introduction of all items of business. Before moving to questions, we'll first display results of the proxies received on resolutions 2 to 4. I'd also like to remind you that the polls remain open and you can vote at any time until I close the polls.

We're now ready to respond to questions, and we'll begin with audio questions. Are there any audio questions, please?

Chairman, I can confirm we have no audio questions.

Thank you. As there are no audio questions, I will now move to written questions.

Chairman, our first is a presubmitted question. With the lockdowns affecting members opportunities on health items, how does the business intend to reward those members and be even more competitive in the market to attract more members to grow the business in the next year?

I thank the shareholder that has submitted that question. There are a number of ways in which we will look to remain or become even more competitive. They range from leveraging our dual brand strategy to offering more choice and value to as many members and potential members as possible, also broadening and deepening our customer relationships through the health offerings and diversified products that Medibank is able to offer, and David mentioned some of that during his presentation - continuing to proactively engage with our customers about their health and health needs, and rewarding our customers through the better -- through the Live Better program for taking personal responsibility for their health progress. David mentioned the fact that we are rewarding people for skin checks during the year. I also mentioned during the presentation that Medibank is committed not to profiting from the pandemic. And we have mentioned the premium relief that was given during September of this year, and we'll continue to look at that position as well to ensure that we remain positive and competitive, but also to make sure that, as I said, we are not profiting from the pandemic. Could I have the next question, please?

Chairman, we have a second presubmitted question. With EPS and CAGR at a low at 3% to 7% level to be remunerated for executives when they are well paid to do just that, would like to see higher benchmark of at least 8% to 12% for performance to warrant some incentive.

Well, again, I thank the shareholder for that question. Our targets for EPS and CAGR are reviewed each year. And we believe that it's important that we set challenging but achievable targets for our executive team. We want them to strive to make Medibank the best organization they can, but we also want them to be rewarded for that. I think that in today's environment, the range of 3% to 7%, and particularly at 7%, is a very difficult target, and one in which we hope that they achieve because all shareholders will benefit from that. But we believe that the range of 3% to 7% in the current environment is appropriate. But as I mentioned, we do review our targets on an annual basis as we set the next series of plans, and we'll continue to do that. Could I have the next question, please?

Chairman, a shareholder has presubmitted this question. Is it possible for me to receive shares rather than dividends? If so, who do I contact about that?

At this stage, we do not have a dividend reinvestment plan. Although as a Board, we continue to monitor the request from our shareholders for this. But frankly, there is not sufficient demand for it at this stage. So it is -- when we pay a dividend, it is paid as a dividend rather than through the reinvestment into shares. If that position changes, obviously, we will let all shareholders know, and we'll keep this position under review. Could I have the next question, please?

Another presubmitted question, Chairman. I congratulate the Board in having at least 40% female representation on the Board. I note that mention is made of indigenous people and those with the disability, but culturally, diverse people do not seem to be mentioned. Ideally, a Board should reflect the diversity of the community. And will the Board commit to consider this range of diversity in its Board membership?

Well, I thank the shareholder for that question. I think the important thing is that a Board brings diversity of thought and challenge to the role that it plays. And that an organization such as Medibank also is representative, in its broader sense, with the diversity of the community. And we have set out in both our annual report and in our sustainability report, the cultural and other diversities of our people, including the background of some of the Board members. What we want from a Board perspective, as I said, is to make sure that we have a diversity of thought, and I can promise you that there is certainly a diversity of thought and opinion that is expressed around our table. But we will continue to look at how we do that, particularly as our Board members rotate through their relative terms. Could I have the next question, please?

Chairman, we have a question from Peter Aird, a volunteer with the Australian Shareholders' Association, representing 525 retail shareholdings and 2.9 million shares. Your increase in market share up 37 basis points in FY '21 is spectacular compared to recent years. Do you believe the increase is sustainable? And do you have any observations regarding the reasons?

Well, Mr. Aird, thank you for your question. We're very pleased to see that. And in fact, it's the first time that we've seen overall growth in the Medibank brand for the past 10 years. David has mentioned today how we are progressing in the 2022 financial year. And we remain confident that those targets that we have outlined will, once again, be achieved. I think the important thing is to make sure that we are doing the right thing for our customers and for the broader community, and that our products are seen to be beneficial, and that's certainly something that both I've spoken about and David has mentioned as well. Could I have the next question, please?

Chairman, we have a second question from Peter Aird from the Australian Shareholders' Association. He asks, there is a disappointingly small amount of data in your annual report showing performance over 5 years and no 5-year comprehensive financial performance summary. Would you commit to improving this in your next annual report?

We continue to look at how we make our disclosures in our annual report. We believe that there is sufficient information that is presented there, including over the longer-term performance which could also be found from our website. However, as always, we will take this comment on board and continue to look at it. But as I said at the moment, we believe that our disclosures on that front are adequate and appropriate. Could I have the next question, please?

Chairman, Peter Aird from the Australian Shareholders' Association again. You have identified technology as a critical enabler in your Board skills, but it is not a Board committee responsibility. Technology is also critical to your cost-reduction strategy. I have 2 questions. How is technology handled within the Board? And will technology be a factor in your search to replace retiring directors?

Again, Mr. Aird, thank you for your question. You're right, technology is just fundamental to our business. And I think all Board members have an understanding of that importance and bring the knowledge that they have from other places and the skills that they have to bear. We regularly have presentations from our technology executives around where the business is headed and what we are doing. And we believe that we actually have a very good executive team in the technology area that has set Medibank up well for the future. We are considering whether we need more specific technology and customer skills around our table. And that will be a factor in terms of the search that we're currently undertaking to replace both Christine and Peter, who are retiring at this meeting. Could I have the next question, please?

There is a question from [ Mario Di Stella ] and [ Angela Di Stella ] who had logged in incorrectly so was not able to vote, asking, can they vote now, please?

Yes, you can. I indicated that the polls were open at the start of the meeting, and will remain open for voting until I declare them closed. So yes, voting is available to you now and to the conclusion of the meeting. Are there any other questions?

Chairman, I can confirm we have no further questions.

Thank you, and thank you to those shareholders who actually did ask us a question. We appreciate your interest in the company and your ongoing support for us. Before we conclude, I'll once again display the results of the proxies received on resolutions 2 to 4. We've now reached the end of the formal business of the meeting. Voting will remain open for another 60 seconds to allow shareholders and proxyholders to finalize their votes on the Lumi platform. Once the voting has been finalized and the final report has been issued, we'll release these outcomes to the ASX and publish them on Medibank's website, where you'll be able to access them later this afternoon. [Voting]

I now close the polls. On behalf of the Board, I thank all of you for your attendance today and for your support for Medibank. The business of this meeting being complete, I now declare the meeting closed. Thank you for your attendance. I wish you all a good day.