Aub Group Limited · ASX:AUB
Aub — Austbrokers Holdings — UBS Emerging Companies Conference 2006
20 slides from Aub's conference presentation, Apr 27, 2006
Slide 1: Austbrokers Holdings Limited
<All> a@ustbrokers AUSTBROKERS HOLDINGS LIMITED _ | Thursday 27" April 2006
Slide 2: Agenda
<All> Ag enda austorokers * Overview: ~ History ~ Insurance Broking Industry Structure ~ Business overview ~ Unique owner-driver model ~ HY Performance highlights . Strategies oe Achievements + Outlook...
Slide 3: History
<All> History austbrokers * Listed 16 November 2005 + Business commenced 1985 e Previously owned by ING (Mercantile Mutual) * Divested following.ING’ s strategic. decision to exit Non-Life - insurance in Australia (sale of. interest i in QBE Mercantile Mutual Joint Venture to QBE i in 2004)
Slide 4: Australian Insurance Broking Industry Structure
<All> Australian Insurance Broking Industry Structure austbrokers 700 + Insurance Brokers Large . eed nsolidators Buying Groups Independents Multinationals Cons ying p » e J Austbrokers Steadfast Aon Corporation 33 Members Approx. 266 Members Approx. $700m Gross Premiurns| $2.5b Gross Premiums OAMPS
Slide 5: Business overview
<All> Business overview austbrokers * Top four insurance broking network in Australia — Client base of approx 175,000 — Over 900 employees + National network servicing predominately SME market - 75% of Austbrokers’ premiums are placed in this segment =
Slide 6: Austbrokers Group Structure
Austbrokers Group Structure <i> a@ustbrokers Regional Network “.- Geographic.premium split = diversified regions ~ Uriderweight in Queensland (partly rectified = Premier Austpac acquisition) “se Strong in regional areas 41% ef premium outside capital cities
Slide 7: Business overview
<All> Business overview (ony austbrokers * Owner driver model — 33 member broker firms with potential to expand * 4wholly owned * 9 owned 51% to 80% * 20 owned 50% ¢ Underwriting agency business — Austagencies entities are authorised to write business on behalf of licensed insurers Pale Writes over
Slide 8: Business overview
<All> Business overview (ony austbrokers + Financial Services — Life and Superannuation business — Financial Planning opportunities + Premium Funding —- Alliance with GE-Capital — Network shares 50% of gross profit from venture
Slide 9: Unique preferred owner-driver model
<All> Unique preferred owner-driver model austirokers + 33 Member Firms with ability to expand ¢ Austbrokers takes equity interest (60% or more) + The individual brokers retain the balance of the equity as Co-Owners with Austbrokers + The Co-Owners retain day-to-day management of each Member Firm «
Slide 10: HY performance
<All> HY performance austbrokers $7000 HY Forecast”... HY Actual % change -. Broker Revenue 56,677. 55,988 1.2% Broker Profit (AHL share) 7,836 “8,083 3.2% Profit (before tax and a oe6 aan Roi : a oe 12.5% _« amortisation of intangibles) © ~ NPAT (before amortisation \ : : 3 679 D wee 4.080 10.9% :
Slide 11: HY performance highlights
HY performance highlights 4 + Profit in line with Prospectus forecasts ~ NPAT before amortisation of intangibles for HY 2006 at $4.1 million ($7.2 million operating profit after including profits on sale of businesses and after amortisation of intangibles) ~ Aiming for NPAT of $10.4 million for FY 2
Slide 12: HY performance highlights
<All> HY performance highlights (ony austbrokers * Broking commission and fees down 3% on forecast « Expenses down 2% on forecast * Increases in other i income (premium funding, life) brokers results overall i in line with forecast 12
Slide 13: Other Financials
<All> Other Financials austbrokers Funding Market Capitalisation + Interest Bearing Liabilities « At31 December: $120.5 million; current: $133.0 million — $12 million (part fund broker a loans of $17.5 million) Dividend per share * Cash available for acquisitions mS aes) cents Half Year paid — commi
Slide 14: Agenda
<All> Ag enda austorokers + Overview * Strategies: + Achievements + Outlook 14
Slide 15: Strategies
<All> Strategies austbrokers * Growth - acquisition — owner driver / 100% - organic business growth - corporate business * Back office synergies and efficiencies. - * Premium funding * Life and superannuation ~.. . Underwriting agencies. * Product development | 15
Slide 16: Agenda
<All> Ag enda austorokers + Overview « Strategies « Achievements: + Outlook 16
Slide 17: Achievements
Achievements . . Acquisitions Salisbury Payne Tinslay ~ 1 October 2005 Traralgon Insurance Brokers (by Dustbrokers Stateplan} ~ 1 November An 80% stake in Premier Auspac ~ 1 March 2006 A 50% stake in Australian Logistics Insurance Brokers - March 2006. Remaining 20% of cE MeDonald (ato). a March 200
Slide 18: Agenda
<All> Ag enda austorokers + Overview + Strategies « Achievements * Outlook: 18
Slide 19: Earnings Growth Opportunities
Earnings Growth Opportunities ous Key earnings drivers ° Premiums placed — Directly influences commissions (% ‘of premiums) ~~ ~ Underlying organic growth — new businesses, increases in coverage / sums insured ; * Fees . Acquisitions * Economic prosperity of SME's — growth i in ieconomy: . Distribut
Slide 20: Outlook
Outlook <All> a@ustbrokers + Market conditions unlikely to change in immediate future -- pressure on broker commission earnings from lower premium rates ~ Less impact in the SME segment of the market than at the large corporate end ~ The SME market represents 75% of Austbrokers’ gross premium Market
Austbrokers Holdings — UBS Emerging Companies Conference 2006 on 6ix