#1ASX release 2 May 2023 medibank Presentation to the Macquarie Australia Conference and FY23 outlook update Medibank Chief Executive Officer David Koczkar will be delivering the attached presentation at the Macquarie Australia Conference which includes an update to Medibank's FY23 outlook. This document has been authorised for release by the Board. For further information please contact: For media Emily Ritchie Senior Executive, External Affairs M: +61 429 642 418 Email: Emily. [email protected] For investors/analysts Colette Campbell Senior Executive, Investor Relations T: +61 475 975 770 Email: [email protected] Medibank Private Limited ABN 47 080 890 259 GPO Box 9999 <in your capital city> Telephone 132 331 medibank.com.au 1#2medibank medibank Better K medibatter Live Macquarie Australia Conference SOCCER David Koczkar - Chief Executive Officer 2 - 3 May 2023#3Important notice General & Summary Information The information contained in this presentation is general information about Medibank Private Limited ("MPL") and/or its related bodies corporate (together, "MPL Group") and their activities current as at the date of the presentation. The information is given in summary form and does not purport to be complete. It is intended to be read in conjunction with the verbal presentation delivered on the date of the presentation and MPL's other periodic and continuous disclosure announcements lodged with the ASX or released on MPL's website which are available at www.medibank.com.au. Not advice The information contained in this presentation is not investment, legal, tax or other advice and has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. You should make your own assessment and seek independent professional advice in connection with any investment decision. Past performance information in this presentation is given for illustrative purposes only. It is not, and should not be relied upon as, an indication of future performance. To the extent permitted by law, no responsibility for any loss arising in any way from anyone acting or refraining from acting as a result of this information is accepted by MPL or any of its related bodies corporate. No representation or warranty, express or implied, is made by any person, including MPL, and its related bodies corporate, their respective directors, officers, employees, professional advisors and agents ("Related Parties") as to the fairness, accuracy, completeness, reliability or correctness of the information, opinions and conclusions contained in this presentation, including any forward-looking statements. Forward-looking statements This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the MPL Group and certain plans and objectives of the management of MPL. Forward-looking statements can be identified by the use of forward-looking terminology, including without limitation the terms "believes", "estimates", "anticipates", "expects", "predicts"," "intends", "plans", "goals", "targets", "aims", "outlook", "aspiration", "guidance", "forecasts", "continue", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. Statements about market and industry trends are also forward-looking statements. These forward-looking statements are provided as a general guide only and are not guarantees or predictions of future performance. They are based on information, expectations and assumptions known to MPL as at the date of this presentation regarding MPL's present and future business strategies and the future political, regulatory and economic environment in which MPL will operate. medibank MPL believes the expectations reflected in these forward-looking statements are reasonable as at the date of this presentation, but acknowledge they involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of MPL, which may cause the actual results or performance of MPL to be materially different from the results or performance expressed or implied by such forward-looking statements. These factors include general economic conditions in Australia, exchange rates, the market environment in which MPL operates and inherent regulatory risks in MPL's business, and those set out on slides 5, 6 and 10. You are therefore cautioned not to place undue reliance on any forward-looking statements regarding our belief, intent or expectations with respect to the MPL Group's businesses, market conditions and/or results of operations. No representation or warranty is made by any legal or natural person in relation to the accuracy, likelihood of achievement or reasonableness of any of these forward-looking statements, forecasts, prospects or results (express or implied). MPL and its Related Parties assume no obligation to update any forward-looking statement and to the full extent permitted by law, MPL and its Related Parties disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including but not limited to any assumptions or expectations set out in the presentation). Financial data and rounding Unless stated otherwise, all figures in the presentation are in Australian dollars. Some figures, amounts, percentages, estimates, calculations of value and fractions are subject to rounding. Accordingly, the actual calculations of these figures may differ from figures set out in this presentation. Further, some balances subject to rounding may not add consistently throughout this presentation. No offer or sale The distribution of this presentation, including in jurisdictions outside Australia, may be restricted by law. Any person who receives this presentation must seek advice on and observe any such restrictions. Nothing in this presentation constitutes an offer or invitation to issue or sell securities, or a recommendation to subscribe for or acquire securities, by or on behalf of MPL, its related bodies corporate or any other person in any jurisdiction including where it is unlawful to do so. This presentation is not and does not constitute an offer to sell or the solicitation, invitation or recommendation to purchase any securities in the United States and neither this presentation nor anything contained herein shall form the basis of any contract or commitment. This presentation may not be distributed or released, directly or indirectly, in the United States. Abbreviations and acronyms used throughout the presentation may be found in the glossary. 2#4Acknowledgment of Country Medibank acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of this nation. We proudly recognise Elders past, present and emerging as the Traditional Owners and Custodians of the lands on which we work and live. We're committed to supporting self-determination and envision a future where all Australians embrace Aboriginal and Torres Strait Islander histories, cultures and rights as a central part of our national identity. medibank#5Key points Stable resident policyholder growth • • Strong growth in non-resident PHI with growing relevance to Medibank Industry growth remains strong with a continuation of factors supporting participation Service NPS recovery in both brands • FYTD policyholder growth of 0.4k policyholders or 0.02% (as at 31 Mar 23] • Expect a strong 4Q, with positive momentum leading into FY24 • Expect to announce a further customer give back before 30 Jun 23 . Strong rebound in student, worker and visitor visas • Strong FYTD policy unit growth of 62k, to 258.5k policy units (as at 31 Mar 23) medibank Megatrends in health will continue to drive patient-centric outcomes Our vision is to create the best health and wellbeing for Australia Cybercrime update • • • . Differentiated offerings, investment and future partnerships will support further growth Greater adoption and access to new care settings provides Australians with more choice, value and control of their health Medibank is evolving its relationship with partners Our strategy continues to meet the changing needs of customers while generating value for shareholders and bringing about much needed change in the health system We continue to expand our reach in health in both the private and public system, building strong relationships with multiple health providers with new relationships including: о о JV with Aurora Healthcare to deliver an innovative integrated mental health care model GP-led initiative referring Myhealth patients to Medibank's Type 2 Diabetes Program о North Coast Health Connect, offering Coffs Harbour residents virtual healthcare Medibank has been provided with Deloitte's findings from their external incident review Deloitte made recommendations to enhance Medibank's IT processes and systems, a number of which have already been implemented At this stage we do not expect a material increase to recurring IT costs resulting from the cybercrime#6Stable resident policyholder growth We will maintain our disciplined approach to growth in a highly competitive and growing market Industry growth remains resilient Industry growth continues о Expect FY23 industry policyholder growth of c. 2% (FY22: 2.7%) Estimate Adult Dependent Reform (ADR) will reduce FY23 industry policyholder growth by c. 0.4% (not in prior period) - ADR will not impact hospital lives insured Impacted by Medibank performance in Q2 Subdued switching continues Strong growth in hospital lives continues with some recent softness in extras-only ADR expected to be positive for long-term industry growth and quality Increased retention for customers turning 25 who remain on their family's policy Expect impact to be fully realised in 5 years • Increased continuity of cover when customers turn 31 Factors supporting continued participation Environmental factors: Population growth, strong wage growth and low unemployment Industry factors: Increasing consumer spending on health and public system still under strain Affordability: Low premium increases with continued COVID give-backs to help address cost of living challenges 12m-rolling return 3.5% 1.5% ADR will have a short-term negative impact on policyholder growth but minimal impact on hospital lives¹ Policyholders (whole of funds) • Medibank recovery tracking as expected Policyholder growth stabilising о medibank FYTD policyholder growth of 0.4k policyholders or 0.02% (as at 31 Mar 23) Similar ADR impact to industry - however retained an additional c. 18k adult dependents FY23 downgrading not expected to exceed 1H23 (70 bps) Expect a strong Q4 and on track to achieve FY23 policyholder growth outlook Well positioned to grow beyond FY23 Service NPS recovery in both brands, exceeding benchmark levels Lapse intent is at pre-cybercrime levels • • Expect to announce further customer give backs before 30 Jun 23 Well-positioned to address cost of living concerns and health needs through continued investment in our dual brand proposition Policyholder volumes ('000) have started to stabilise ▬▬▬▬▬▬▬▬▬▬Hospital lives 1,950.0 +14.6 1,964.6 -12.9 1,951.7 -1.3 1,950.4 ויויו FY22 Q1FY23 Q2FY23 Q3FY23 (0.5%) Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 1 APRA quarterly private health insurance statistics. Updated February 2023#7Number of visas Strong growth in non-resident PHI Key future growth pillar Non-resident market is recovering and growing Strong growth in student, worker and visitor market segments Working visas exceed pre-COVID levels Strong rebound in student and visitor visas Factors supporting continued growth Australia's continued immigration strategy Recovery in international student arrivals, particularly from China and India Visitor arrivals expected to surpass pre-COVID levels by 2025 Primary visa holder data' shows a recovery in international students and workers coming to Australia 1,000,000 800,000 600,000 400,000 200,000 0 Students Workers 03/19 06/19 09/19 12/19 03/20 06/20 09/20 12/20 03/21 06/21 09/21 12/21 03/22 06/22 09/22 12/22 03/23 1 Workers segment includes key contestable visa categories eligible for Medibank's Overseas Workers Health Covers. Bridging visa holders in Australia excluded from all segments. Source Data.gov.au, accessed May 2023 We will continue to invest for growth Policy unit growth accelerating since June 2022 medibank . • FYTD policy unit growth of 62.0k to 258.5k (at 31 Mar 23) о 3-month growth of 28.6k policies vs. 1H23 growth of 33.4k . On track for FY23 to have the highest joins in 5 years Strong growth in international student policies Underpinned by university account wins о ° Supports future growth as customers transition to other visa subclasses . We now expect FY23 non-resident gross profit to approximately double from FY22, which • Uplift in workers and visitors segments with strong digital joins will result in a similar benefit to PHI gross margin as the first half Well positioned to grow beyond FY23 • Continue to differentiate our products and services and improve product value through integrated health offerings and additional investment Opportunity to win share in workers segment where under indexed Policy units 300,000 250,000 200,000 150,000 100,000 50,000 28.6k increase since Dec 22 04/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Growth in non-resident segment Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23#8Short stay model of care will benefit the entire health system Megatrends in health will continue to drive patient-centric outcomes medibank Consumerisation 2 of health The shift to prevention The rise of new care settings Outcome-based care Short stay - joint replacement example Choice of care Customer needs Transparency, reduction or elimination of out-of-pocket costs Reduction in hospital stays where clinically appropriate Partnership with specialists and hospitals Integrated into a wide range of hospital covers Customer impacts Short stay model will bring positive impacts Standard care pathway Patient satisfaction² NPS 55.2 Short stay model Out-of-pocket savings How we respond • No gap joint replacement program is locally available to 65% of Medibank customers¹ Costs per episode of care Hospital stay costs • c. 4% of Medibank's joint replacement procedures are now through short stay model (FY21: 2.2%) Customers Medical specialists • Value and choice where clinically appropriate • Better customer experience through shorter hospital stays and no gap offering Benefits • Medibank Supports retention through better customer experiences • Reduces benefit outlays Participation in this market segment through hospital investments Health system Rehab costs In-hospital (c. $9,000) Prosthesis costs c. $7.5k (22%-25% of overall cost) NPS 71 c. $1.4k per episode of care Lower due to average length of stay reducing by 50%2 Higher payment to specialists to eliminate customer out-of-pocket costs At-home rehab (c. $2,800) Overall costs . Frees up resources for more acute needs More affordable care supports overall participation Long-term opportunities • • c. $30k-$33k • Gaining efficiencies with less need to invest in in-patient rehab facilities Capex can be directed to develop fit-for-purpose healthcare settings Opportunities to bring prothesis costs down through reform c. $7.5k (28%-31% of overall cost) c. $24k-$27k 1 Medibank customers live within 25km of a no gap site 2 KPMG. Medibank facilitates a sustainable healthcare system. July 2022 7#9Medibank is evolving its relationship with partners Megatrends in health will continue to drive patient-centric outcomes Consumerisation of health The rise of new care settings 1 Data for private hospital contracts medibank The shift to prevention The evolution of hospital contracting Partnership approach 55% episodes of care¹ Holistic and collaborative approach focusing on customer outcomes, value and experience and drive system change Value-based contracting 24% episodes of care¹ Consider a broader set of outcomes, including quality and efficiency indicators, and customer experience and scores Base indexation 21% episodes of care¹ Focus on price and health costs, e.g. periodic pricing negotiation between providers and insurers Outcome-based care The new framework of hospital contracting bringing multiple benefits with a focus on: Improving customer outcomes e.g. improve transparency and reduce out of pocket costs when clinically appropriate through our no gap network Alignment of commercial benefits between all parties e.g. certainty of funding, cash flows and returns and incentives to reduce waste Sharing of benefits under the partnership approach • Benefits may be shared, such as: Ӧ ° о Rehab referral outside an acute setting The move to same day procedures Adoption of alternative care settings Prosthesis reform Driving health system benefits e.g. accelerate and scale new care models, addressing health needs and driving system sustainability The principles of this new approach can be applied to other health partnerships 8#10Our vision is to create the best health and wellbeing for Australia We are uniquely positioned to support customers and grow with the collective strength of our products and offerings medibank medibank ahm You're good. Leading and differentiated health insurance products Increasing customer choice, value and control Supporting and inspiring health and wellbeing and prevention No gap network A national network for joint replacement, endoscopy and some general surgery procedures Members Choice Advantage Network for optical, dental and 8 'Move' modalities With a broad range of unique networks across health Expanding in health through new models of care to meet customer needs medibank Live Better Suite of preventative programs Amplar Health portfolio of investments and services My Home Hospital Homecare Ded by a joint Calvary mediba East Sydney Private Hospital MQ Health MACQUARIE UNIVERSITY HEALTH SCIENCES CENTRE Telehealth myhealth Adeney PRIVATE HOSPITAL Our hospital and ancillary provider network Better Health for Better Lives MyHome Hopsital is an SA Health service mMedinet HEALTHCARE ANTE ANYWHERE JMH Aurora Amplar Health New investment#11FY23 outlook update Customer relief Resident policyholder growth Claims As presented at 1H23 Results We continue to assess claims activity and any permanent net claims savings due to COVID-19 will be given back to customers through additional support in the future We expect resident policyholder growth of approximately 0.5%-0.75% assuming recent trends continue and a modest decline in industry growth rate in FY23 relative to FY22 Underlying claims per policy unit growth of 2.3% for FY23 among resident policyholders • Updates medibank Expect to announce a further customer give back before 30 June 2023 • • No change FYTD policyholder growth of 0.4k policyholders or 0.02% (as at 31 Mar 23) No change Whilst there has been a modest uplift in cash claims Non-resident growth PHI Non-resident gross profit in 2H23 expected to be higher than 1H23 FY23 management expenses expected to be c. $560m management expenses Cybercrime costs Growth FY23 underlying MER not expected to be above FY22 Target $30m productivity savings in FY23-FY25, including $10m in FY23 Non-recurring FY23 cybercrime costs expected to be $40m-$45m Includes non-recurring investment in IT security • Excludes further potential customer and other remediation, regulatory or Litigation related costs Targeted organic and inorganic growth for Medibank Health and Health Insurance remain areas of focus, supported by a strong capital position paid since 31 Dec 22, they remain significantly below our underlying claims expectations • FY23 non-resident gross profit expected to . approximately double from FY22, which will result in a similar benefit to PHI gross margin as the first half FYTD policy unit growth of 62.0k to 258.5k (at 31 Mar 23) No change Non-recurring FY23 cybercrime costs expected to be at the top end of the $40m-$45m range • At this stage we do not expect a material increase to recurring IT costs resulting from the cybercrime No change 10#12PAKENHA roadrunner dibank eBetter medibank Live Better edopa me Appendix medibank#13Our health investments Target markets Investments Ownership interest (%) Myhealth Medical Holdings Pty Ltd 49% Primary care Medinet Australia Pty Ltd. 3.85% Calvary Medibank JV Pty Ltd 50% Homecare East Sydney Day Hospital Pty 49% Ltd Adeney Private Hospital Pty Ltd 49% Hospitals, including short stay SydOrtho Holdings Pty Ltd (holding company) supporting MQ Health to establish a surgical facility 50% Integrated Mental Health Pty Ltd (iMH) 50% . Description medibank Benefits to Medibank Medibank acquired a non-controlling interest in Myhealth Medical Group for c. $63m in 2021 Medibank invested $10m in health tech company Medinet in 2022 and has 28.5% of the voting rights Medinet provides platform helping GPs to connect with their patients Since 2020, the JV has been providing My Home Hospital program for Wellbeing SA and COVID Care At Home in a number of states Medibank's initial investment of $8.8m in 2020 to fund capital investment and operational costs required for the hospital to scale its short stay model of care The JV between a group of doctors and Medibank will establish a new short stay surgical facility in Kew Melbourne Medibank's contribution to date is $6.2m, with a further commitment of $2.8m, totalling $9m Expected to open in mid 2024 Medibank invested $1.5m (with a total commitment of $14.8m) in 2022 to establish a JV with orthopaedic surgeons to support the establishment of an orthopaedic surgical centre at Macquarie University Hospital MQ Health is contributing the floor space, with the centre to operate as an integrated part of the hospital A JV with Aurora Healthcare to deliver an innovative integrated mental health model that extends hospital care to incorporate additional support services in home and community settings The JV will initially invest $31m into three hospitals delivering a combined 153 new mental health beds and comprehensive out-of- hospital support Support preventative health and GP- led proactive care management Continue to grow our virtual care capabilities Continue to grow our homecare capabilities Expand our hospital investments 12#14Glossary Reform that allows adult dependents to remain on their parents private health insurance policies until they turn 31 Policyholder Term Definition Term 1H Six months ended/ending 31 December of the relevant financial year 2H Six months ended/ending 30 June of the relevant financial year Adult Dependent Reform APRA bps Downgrading FY Health Insurance Hospital Lives Live Better Members Choice Advantage MER Non-resident PHI PHI Australian Prudential Regulation Authority Basis points (1.0% = 100 bps) The difference between the average premium rate rise and revenue growth per policy unit Financial year ended/ending 30 June Includes both resident and non-resident The number of people in Australia who are covered by resident private health insurance hospital product A Medibank program to inspire people to lead a healthier and happier lifestyle, with tools and rewards (for eligible members) to motivate people An enhanced network of ancillary providers where customers can enjoy better value on eligible extras services. Includes dental and optical providers, physiotherapy, chiropractic, podiatry, acupuncture and remedial massage Management expense ratio Overseas visitor, working visa and student health covers Private Health Insurance PSEUS or policy units Definition medibank The primary person who is insured under a private health insurance policy (other than in relation to overseas students or visitors), who is not a dependent child, and who is responsible for paying the premium Policy Single Equivalent Units are used by Medibank as a standard measure of income units. They take into account the number of adults on a policy, and whether they have Hospital Cover or Extras Cover or both. For example, a household with two parents and three children, all of which had both Hospital and Extras Cover, would represent four policy units (2 adults x 2 types of Cover = 4). This measure includes residents and non-resident policies and only adult insureds are typically counted in the calculation of PSEUs Resident PHI Hospital and/or extras cover for a compliant health insurance product Service net promoter score. A measure of the likelihood of an Service NPS existing customer to recommend the brand immediately following a service interaction 13