Slide 1: FY19 Results Presentation
AUB GROUP . FY19 Results Presentation August 2019 Mike Emmett CEO and Managing Director Mark Shanahan CFO
Slide 2: FY19 Performance Overview
FY19 Performance Overview
Slide 3: FY19 Performance Snapshot - Group
FY19 PERFORMANCE SNAPSHOT - GROUP 3.2% Adjusted (3.1%) Underlying 66.64 cents per $541.6mn Earnings per share Revenue1 FY18 FY18 $524.7mn Share3 68.80 cents per share Underlying (1.0%) $88mn in M&A transactions EBITA 25.0% M&A Activity Key Transactions include equity step- Margin1 FY18 ups in Adroit
Slide 4: FY19 Performance Breakdown - Group
FY19 PERFORMANCE BREAKDOWN - GROUP FY18 to FY19 Adjusted NPAT1 Breakdown ($mns) +14% +4% FY19 Canberra and one-off costs 50.8 2.3 0.4 3.7 1.1 0.6 3.1 2.3 46.4 3.6 44.6 Core Insurance Operations FY18 Organic Growth 2 Acquisition Growth 3 FY19 Canberra Health & FY19 FY19 Canberra IT project Corporate
Slide 5: FY19 Performance Snapshot - Divisional
FY19 PERFORMANCE SNAPSHOT - DIVISIONAL Vs. FY18 AUSTRALIAN NEW ZEALAND UNDERWRITING comparative RISK SERVICES2 period BROKING2 BROKING AGENCIES 1.8% Underlying1 Revenue $343.6mn $50.6mn 19.3% $61.4mn 8.5% $85.9mn (2.4%) 4.1% (excl. Canberra) 0.2% Underlying1 EBIT Margin 29.7% 33.6% (3.2%) 33.8% (1.1
Slide 6: FY19 Performance Breakdown – By Divisions
FY19 PERFORMANCE BREAKDOWN – BY DIVISIONS FY18 to 19 Adjusted NPAT1 Divisional Breakdown ($mns) +4% +10% 1.6 4.5 2.8 0.8 0.6 48.8 2.3 46.4 4.4 44.6 44.3 0.3 Core Insurance Operations Pre-Tax FY18 (incl. FY18 Canberra FY18 (excl. Australian New Zealand Underwriting Risk Services Corporate Tax FY19 (e
Slide 7: Strong Balance Sheet and Capital Position
STRONG BALANCE SHEET AND CAPITAL POSITION Consolidated Balance Sheet Overview Movement FY19 FY18 Movement (%) ($mns) ($mns) ▪ Investments (the aggregate of Cash 70.0 58.7 11.3 19.3% Investments in Associates and Intangible Assets and Goodwill) Cash - Trust 150.0 100.0 50.0 50.0% have increased to $5
Slide 8: Effectively Leveraging and Managing Debt
EFFECTIVELY LEVERAGING AND MANAGING DEBT Total Group Debt on a look-through basis1 ($mns) 160.8 36.7 44.0 13.5 134.0 30.9 22% 23.0 24.6 55.5 FY19 AUB Group Gearing4 (FY18 31%) 99.5 55.5 Total AUB Group Debt FY18 Corporate Debt 2 Consolidated Entity Associates Total AUB Group Debt FY19 Associates Deb
Slide 9: Strong Cash Generation
STRONG CASH GENERATION AUB Corporate Entity Cash Movement ($mns) Operating cash generated 63.9 113.2 50.1 17.0 33.1 45.8 17.2 30.4 11.0 Dividends Received Net Corporate Exp. Operating Cash Flow Dividends Paid Capital Raising Net Investing Activity 1 Net Financing Activity FY19 Opening FY19 Closing C
Slide 10: Disciplined Approach to M&A
DISCIPLINED APPROACH TO M&A M&A Transaction Activity, FY14-FY19 ($mns) ▪ AUB has undertaken 54 acquisitions and bolt-ons over the past 6 years valued at 12 257 Acquisitions Bolt-on ~$250mn in M&A activity. ▪ AUB intends to continue to supplement organic growth by relevant acquisitions 76 and start-u
Slide 11: Improving Shareholder Returns a Priority
IMPROVING SHAREHOLDER RETURNS A PRIORITY Dividend Per Share (Cents) Adjusted EPS1 (Cents per share) CAGR Interim Dividend CAGR Final Dividend +1% +6% -3.1% +8% 45.5 46.0 68.80 66.64 42.0 63.25 38.5 39.7 40.0 59.83 59.30 59.57 13.5 56.20 35.5 13.5 31.0 12.0 12.0 12.5 49.45 12.0 44.18 25.5 11.0 39.16
Slide 12: AUB Group Business Review and Outlook
AUB Group Business Review and Outlook
Slide 13: FY20 Execution Priorities
FY20 EXECUTION PRIORITIES Enhance our core business partner proposition with improved product and capacity 1 offerings 2 Implement best-in-house technology features across the Group 3 Reduce Corporate costs and drive efficiency through cross-network synergies Consolidate our core businesses for scal
Slide 14: Stable and Predictable Operational Drivers
STABLE AND PREDICTABLE OPERATIONAL DRIVERS ~3.2bn Premium under influence across the AUB network 90% ~8% increase FY19 Premium in average premium per client Retention (excl. rate increases) CAGR over the last 3 years ~1.2mn …supported by a small but consistent increase in average policies per client
Slide 15: Track Record of Delivering Growth
TRACK RECORD OF DELIVERING GROWTH Underlying Revenue1 ($mns) Underlying EBITA Margin1 (%) CAGR +3% +11% 29.1 27.8 28.1 27.9 26.5 25.9 25.6 25.6 26.0 525 542 25.0 488 445 402 351 302 276 218 240 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Adjust
Slide 16: Core Insurance Operations - Our Scale and Reach
CORE INSURANCE OPERATIONS - OUR SCALE AND REACH NT 4 locations QLD 72 locations ~11% ~450 AUB Share of the Locations Intermediated GI WA Market (AU) 28 locations NSW 124 locations SA ACT 24 locations 7 locations VIC 47 locations >3,000 ~21% staff TAS New 4 locations Zealand AUB Share of the GI 140 S
Slide 17: Taking Control of Our Core Capabilities
TAKING CONTROL OF OUR CORE CAPABILITIES Austbrokers Insurance Member Services (AIMS) AUB Group will take 100% control of AIMS in Q2 FY20 AIMS will serve as the member UNDERWRITING ACCOUNTING services division with four key areas of CAPACITY AND AND responsibility PLACEMENT COMPLIANCE ▪ Sourcing and
Slide 18: FY20 Outlook and Guidance
FY20 OUTLOOK AND GUIDANCE During FY20 the group anticipates strong growth from Insurance Broking in Australia and New Zealand as well the Underwriting Agencies. This will be reduced by several factors: ▪ Reduced interest rates; ▪ Lease Accounting Changes; ▪ Reduced revenues in Canberra, post restruc
Slide 19: Questions
QUESTIONS
Slide 20: Thank You
THANK YOU
Slide 21: Notice
NOTICE SUMMARY INFORMATION This document has been prepared by AUB Group Limited (ABN 60 000 000 715) (AUB). It is a presentation of general background information about AUB’s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete.