Australian Unity Ltd · ASX:AYUPA
Australian Unity — FY2015 Earnings Presentation
33 slides from Australian Unity's earnings presentation, August 2015
Slide 1: Australian Unity Limited Investor Update
AUSTRALIAN UNITY LIMITED INVESTOR UPDATE Financial year ended 30 June 2015 Presenters • Kevin McCoy – CFO • Darren Mann – Group Treasurer • Brad Duggan – CFO, Retirement Living
Slide 2: Important Notice
Important Notice • This notice relates to all information provided as part of this presentation, including, without limitation, these slides, associated presentations and any oral presentations by the representatives of Australian Unity Limited ACN 087 648 888 (AUL), or its officers, directors, empl
Slide 3: About Us
About Us Our ambition is to enable millions to enjoy wellbeing Our strategy is to build a leading, commercial, sustainable, portfolio of businesses that foster wellbeing
Slide 4: Our 175 year history
Our 175 year history 1870 Manchester Unity 1929 1993 2008 granted Crown land Unemployed Grand Australian Unity Australian Unity to establish homes United members formed from merger launches for aged and contribution fund of Manchester Unity Remedy disadvantaged launched and ANA in Victoria Healthcar
Slide 5: Overview of Australian Unity
Overview of Australian Unity Owned by and run for the benefit of ~300,000 members TRUSTED Provides services to 850,000 customers MUTUAL Profits reinvested for the wellbeing of members, customers and the general community $120.0 million Australian Unity Notes (AYUHA) listed on ASX issued in A
Slide 6: Trusted mutual
Trusted mutual An independent Australian mutual comprising ~300,000 members, many of whom have been with the organisation for more than 50 years. The Australian Unity Group’s history as a trusted mutual dates back 175 years, set up by members, for members, with continuous operations in financial
Slide 7: Australian Unity at a glance
Australian Unity at a glance 175 years of thinking about the future | 6
Slide 8: Diverse portfolio
Diverse portfolio Our strategy is to build a leading, commercial, sustainable, portfolio of businesses that foster wellbeing The Australian Unity Group has a uniquely diversified portfolio across four principal business areas: Personal Financial Healthcare Retirement Living Investments 75.3% of
Slide 9: Diverse portfolio: link to demography
Diverse portfolio Link to demography Demand for products and services of the Australian Unity Group are intimately linked to the demographic dynamics of the ageing of Australia’s population. For example ageing trends, as estimated by the ABS, are shown in the following chart. Australia’s increas
Slide 10: Overview of Results and Achievements
Overview of Results and Achievements
Slide 11: Australian Unity 2015 Financial Highlights
Australian Unity 2015 Financial Highlights Records strong year-on-year increases in operating earnings and profit Revenue and other income $m CAGR Operating earnings1 $m CAGR 8.1% 9.1% 1,400.0 45.0 1,200.0 40.0 35.0 1,000.0 30.0 800.0 25.0 600.0 20.0 15.0 400.0 10.0 200.0 5.0 0.0 0.0 FY11 FY12 FY1
Slide 12: Australian Unity Limited results
Australian Unity Limited results Financial Results Overview Up Up 7.1% 16.6% Revenue and other Profit after tax income Revenue and other income of $1.3 billion and profit after tax of $34.6 million Increases in adjusted EBITDA in all revenue segment areas Operating earnings $40.3 million, up 1
Slide 13: Australian Unity 2015 businesses highlights
Australian Unity 2015 businesses highlights Health claims $m Funds under advice $b 800.0 7.0 700.0 6.0 600.0 5.0 500.0 4.0 400.0 3.0 300.0 200.0 2.0 100.0 1.0 0.0 0.0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Retirement units and Funds under management $b aged care beds 14.0 3,000.0 12.0 2,5
Slide 14: Additional growth achievements
Additional growth achievements Premium Wealth Certainty Financial Waratah Physio Connect Insurance Broker Flinders 98 Dental Australia* ~$42.0 million Illawarra Nursing Service (INS) Owenlaw Kenilworth Nursing Service (KNS) Elderslee The group has made acquisitions across all its businesses througho
Slide 15: Debt facilities and maturity profile
Debt facilities and maturity profile Australian Unity seeks to maintain a diversified debt portfolio that enables it to access a range of funding sources to meet its ongoing business requirements and investment opportunities. The graphics below demonstrate the group’s funding mix and debt maturi
Slide 16: Gearing analysis
Gearing analysis The Gearing Ratio, as reported in the financial statements, is 33.7 percent as at 30 June 2015 and was comfortably below the 45.0 percent covenant*. This ratio reflects the reduction in the development finance loans with repayment driven by sales. Continuing Retirement Living
Slide 17: Interest coverage ratio
Interest coverage ratio AUSTRALIAN UNITY NOTES Year to Year to Year to Year to Year to INTEREST COVERAGE CALCULATION 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun ( $’000) 2011 2012 2013 2014 2015 Profit before income tax (attributable to 27,765 22,172 35,365 35,077 42,933 Members of Australian Unity Limited)
Slide 18: Business Segment Highlights
Business Segment Highlights
Slide 19: Financial results by segment
Financial results by segment Segment Results All businesses contributed solid results with year on year growth in adjusted EBITDA. The group continues to focus on organic growth and pursuing its strategy of serving the wellbeing needs of Australians. Adjusted EBITDA $m Total Assets by Business Segme
Slide 20: Business segment results: Healthcare
Business segment results Healthcare A positive year with a return to financial performance comparable to levels before government intervention and ensuing regulatory changes began to impact the sector’s result. Adjusted EBITDA $m 60.0 Up 50.0 29.0% 40.0 30.0 Adjusted EBITDA 20.0 10.0 Revenue $828.3
Slide 21: Business segment highlights: Healthcare
Business segment highlights Healthcare 225,000 7,240 Systems new patients in health insurance upgrade Remedy coaching and policies Up home based programs 3.9% Members Own 27,788 Physio Connect, Overseas visitor Health Funds GU Health Frankston, health cover (MOHF) members Victoria Improvement in t
Slide 22: Business segment results: Retirement Living
Business segment results Retirement Living Retirement Living business recorded strong revenue and EBITDA growth during 2015. Adjusted EBITDA $m 30.0 Up 25.0 12.2% 20.0 15.0 Adjusted EBITDA 10.0 5.0 Revenue $106.8 million 0.0 FY14 FY15 175 years of thinking about the future | 21
Slide 23: Business segment highlights: Retirement Living
Business segment highlights Retirement Living 19 >97% Victoria Grange – Occupancy rates in Finalist in the 2015 retirement retirement villages Property Council communities in and Victoria and NSW Aged care facilities Up Innovation Awards >75% 88 Peninsula Grange, >430 staff in new units constructed
Slide 24: Business segment results: Investments
Business segment results Investments The Investments business produced a very creditable result in a year characterised by periods of extreme volatility. Adjusted EBITDA $m 16.0 Up 14.0 7.9% 12.0 10.0 8.0 Adjusted EBITDA 6.0 4.0 Revenue 2.0 $107.2 million 0.0 FY14 FY15 175 years of thinking about th
Slide 25: Business segment highlights: Investments
Business segment highlights Investments $7.3 billion Waurn Ponds 10.8% Funds under Shopping Centre growth in management stable expansion Big Sky loan book Up 31.0% 5.2% $1.9 billion Sales of Owenlaw Trust Overall return on Lifeplan funds under management education Limited group investment assets and
Slide 26: Business segment results: Personal Financial Services
Business segment results Personal Financial Services Personal Financial Services was significantly strengthened by a number of strategic acquisitions during the year. Adjusted EBITDA $m 4.5 Up 4.0 69.3% 3.5 3.0 2.5 Adjusted EBITDA 2.0 1.5 1.0 Revenue 0.5 $56.9 million 0.0 FY14 FY15 175 years of thin
Slide 27: Business segment highlights: Personal Financial Services
Business segment highlights Personal Financial Services $766 million 183 Flinders Australia loans under advice financial Limited 1 in mortgage broking advisers Up 37.0% 46% Waratah increase in Record year for Premium Wealth Insurance general insurance loan settlements Management Brokers revenue Fu
Slide 28: Australian Unity at a glance
Australian Unity at a glance 175 years of thinking about the future | 27
Slide 29: Post-announcement news: Home Care NSW
Post-announcement news Home Care NSW
Slide 30: Home Care NSW transfer
Home Care NSW transfer • The NSW government has signed an agreement with Australian Unity to transfer the Home Care Service NSW (Home Care) to Australian Unity. • Australian Unity will buy the business in its entirety for $114 million, subject to adjustments usual for a transaction of this kind. • H
Slide 31: Our Vision for Home Care NSW
Our Vision for Home Care NSW 30
Slide 32: Presenters
Presenters Kevin McCoy – Chief Financial Officer Kevin joined Australian Unity in April 2012 and was responsible for the effective execution of our strategic initiatives, treasury, capital management and organisation- wide performance measures. Kevin took on the role of Chief Financial Officer from
Slide 33: of thinking about the future
of thinking about the future Australian Uni