Welcome from the GWAFP and MAAFP

Thank you to our Speaker Greg Miller, Senior Director of Treasury Services and Assistant Treasurer, John Hopkins Health System. Manages defined benefit plan investment pools, system-wide capital financing initiatives and debt compliance, corporate banking activities, and the property and casualty insurance program. Before transitioning into healthcare in 2004, Miller structured loans for high net worth individuals and small businesses for large banks. Miller holds a bachelor’s degree from Clemson University and an M.B.A. from Loyola University Maryland. He is a CFA charter holder and a member of the CFA Society of Baltimore.

Strategic Responsibilities in a World Class Treasury Services Organization JHHS Office of Treasury Services: Overview of Services Provided FY 2017

Johns Hopkins Health System Overview Johns Hopkins Community Physicians JHHS Academic Hospitals JHHS Community Hospitals School of Medicine Johns Hopkins Home Care Group Johns Hopkins HealthCare Johns Hopkins International The entities in dark blue represent the JHHS Obligated Group Entities in the bottom row are jointly owned with JHU

Patient Service Reach & Philanthropic Support JHHS by the Numbers Acute Care Hospitals 115,600 Admissions 20,500 FTEs 6 Global Patient Service Reach & Philanthropic Support Covered Lives through JHHC Beds 2,477 405,000 Unrestricted Cash & Investments $3.8 billion $ 15,000 $8.3 Billion Total Assets $6.2 Billion Operating Revenue Community Physician practices 364,000 58

Centralized Treasury Services Banking Investment Management Operating & Capital Planning Capital Financing Insurance

Oversight of Corporate Banking Structure: Manage corporate banking relationships Structure treasury systems and reporting Content and security administration of web-based banking platforms Cash planning Administer merchant service relationships Oversight of JHHC insurance companies’ premium collection and claims payment processing Treasury

Oversight of Operating and Capital Plan: Identify key financial metrics Integration of individual plans into JHHS consolidated plan Coordinate and develop formal trustee Plan presentation

Oversight of Debt Planning and Debt Management Identify appropriate sources of financing for all JHHS capital projects Administer JHHS centralized debt program Plan, coordinate, and execute all JHHS corporate debt issuances Public and private Tax-exempt and taxable Develop and monitor risk models Ensure compliance with all bond and bank debt covenants.

Oversight of Debt Planning and Debt Management (continued): Manage all external relationships: National bond rating agencies (Moody’s, S&P, Fitch) Maryland Health and Higher Educational Facilities Authority Banks and Investment Banking Firms Bond and Tax Counsel, Underwriters, Advisors Staff to the Subcommittee on Debt Financing and Debt Capacity Coordinate meetings Present recommendations for action

JHHS Debt Strategy Cost of Capital Deliver a low cost of capital, while minimizing macro-level risks that cannot be directly controlled by JHHS management Managing the balance between risk and cost-effectiveness is continually reviewed Risks Cost of Capital

JHHS Debt Portfolio

Oversight of Investment Management Programs: Oversight of defined benefit and defined contribution Pension Investment Programs (approximately $2.7B combined) and the JHHS Balance Sheet Investment Program ($3.8B) Staff to the JHHS Pension Investment Review Committee (PIRC) and the Investment Subcommittee of the JHM Finance Committee Participate in setting key pension assumptions that drive contribution and expense levels Review and execute all investment manager contracts and direct actions of investment managers, investment consultants, and custodian banks

Oversight of Investment Management Programs (continued): Meet with investment managers Monitor and report on investment performance Administration of custodian platform for JHHS Conduct necessary, audit-related due diligence for all investments, particularly non-marketable investments Provide daily and monthly accounting for Pension Master Trust and JHHS Balance Sheet investment pool as well as sub-fund accounting

Oversight of Risk Management Program: Assessment of property and casualty risk exposures Coverages include: Commercial Property Fiduciary Liability Auto Liability Directors & Officers Commercial Crime Various other liability coverages Develop and monitor risk mitigation programs Compile, review and submit underwriting data to carriers Coordinate competitive bid process Coordinate annual service plan agreements and mandated inspections by the loss control teams of our insurers

The Look of a World-Class Treasury Team

Thank you! Approved for up to 1.2 FP&A recertification credits by the Association for Financial Professionals at the rate of one credit for each 50 minutes of attendance.   Approved for up to 1.2 CTP recertification credits by the Association for Financial Professionals at the rate of one credit for each 50 minutes of attendance.