Australian Unity Ltd · ASX:AYUPA
Australian Unity — HY2024 Earnings Presentation
35 slides from Australian Unity's earnings presentation, Feb 28, 2024
Slide 1: ASX Announcement
ASX Announcement 28 February 2024 Australian Unity Limited – Half-Year Investor Update Please find attached Australian Unity Limited’s Investor Update relating to the financial results for the half-year ended 31 December 2023. -end- This announcement has been authorised for release by: The Board of
Slide 2: Investor update
Australian Unity Limited Investor update Financial results for the half-year ended 31 December 2023
Slide 3: Investor presentation teleconference invitation
Australian Unity Limited is pleased to invite Date Thursday 29 February 2024 you to our investor presentation teleconference for the half-year ended 31 December 2023 Time 9:30am to 10:30am AEDT To access the teleconference participants must register in advance via the link below: https://registratio
Slide 4: Important information
Important information This notice relates to all information provided as a part of this presentation To the maximum extent permitted by law, AUL, its related bodies corporate including, without limitation, these slides, associated presentations and and each of its respective officers, directors, emp
Slide 5: Acknowledgement of Traditional Owners
Australian Unity acknowledges the Traditional Owners of the lands and waters within Australia and recognises the important connection to Country that Aboriginal and Torres Strait Islander peoples have. AUL HY2024 Investor presentation 4
Slide 6: Agenda and presenters
Agenda and presenters 1. Overview and Group highlights 2. Business results 3. Summary and outlook Rohan Mead Prue Bowden Darren Mann Group Managing Director and CEO Chief Executive Officer – Home Health Group Executive Finance & Strategy and Chief Financial Officer AUL HY2024 Investor presentation 5
Slide 7: Overview and Group highlights
Overview and Group highlights AUL HY2024 Investor presentation 6
Slide 8: Overview of Australian Unity
Overview of Australian Unity Wellbeing company with a commitment to members, customers and community • Established in 1840, a member-governed company with more than 370,000 members and more than 7,500 employees (as at 31 December 2023) • Diversified and thematically-linked portfolio of health, wealt
Slide 9: HY2024 operational review
HY2024 operational review • Implemented initiatives to adjust its business activities consistent with the long-term strategy of developing its commercially sustainable business portfolio, in the area of wellbeing • Delivered sound financial results despite residual instability in the Australian econ
Slide 10: HY2024 priorities
HY2024 priorities Realise the value of the social enterprise Build social infrastructure reach Create the building blocks to form deeper Continuing to realise and extend our relationships with members, based on presence within the social improving wellbeing outcomes and superior infrastructure realm
Slide 11: Community & Social Value FY23
Community & Social Value FY23 $1.76b in total community and social value for FY23 $317m Supporting living in place FY23 FY22 Priority outcomes ($m) ($m) Better access to healthcare 802 699 $802m $223m Better access $540m Improved health outcomes 180 221 to healthcare Leading social innovation $982m
Slide 12: HY2024 financial summary
HY2024 financial summary Key financial statistics HY2024 HY20231 Change Revenue and other income, excluding benefit funds ($m) 831.4 750.9 80.5 Corporate entity income ($m) 816.3 733.8 82.5 Investment earnings ($m) 15.1 17.1 (2.0) Total expenses, excluding financing costs and benefit 800.8 706.2 (94
Slide 13: HY2024 key metrics
HY2024 key metrics Profit after income tax ($m) 70 HY 60 50 40 42.6 30 30.2 2 20 26.7 10 2 2.1 15.5 15.0 7 1.4 6.2 0 1 FY2020 FY2021 FY2022 FY2023 HY2024 1 Comparative information has been restated following adjustments made to prior year financial statements. Further information about the nature an
Slide 14: HY2024 segment earnings growth
HY2024 segment earnings growth Adjusted EBITDA1 ($m) 80 HY23 HY24 2 70 66.8 60 50 40 33.6 30 24.0 18.4 19.9 18.4 2 20 16.0 10 3.4 0 Home Health Retail Specialist Care Wealth & Capital Markets 1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its business segment
Slide 15: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience 400 1 Drawn Development Loan (repaid) 400 1 30 June 2023 ($m) 31 December 2023 ($m) Retirement Village Investment Notes 350 (repaid) 350 Undrawn Revolving Loan 300 300 Retirement Village Investment Notes 250 Mutual Capital Instrument 250 50 Series D
Slide 16: Gearing analysis and interest cover
Gearing analysis and interest cover Covenant gearing ratio Interest cover ratio1 60.00% 900 9.00 800 8.00 50.00% 700 7.00 Debt Capacity ($m) 40.00% 600 6.00 Gearing Ratio 500 5.00 30.00% 400 4.00 20.00% 300 3.00 200 2.00 10.00% 100 1.00 0.00% 0 - Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-
Slide 17: Home Health
Home Health AUL FY2023 Investor presentation 16
Slide 18: Home Health
Home Health Provides a range of home and clinical care services across both community and virtual settings— designed to meet the ongoing health and wellbeing needs of our customers and support them in Adjusted EBITDA ($m) living in their preferred setting for longer HY23 HY24 Highlights 18.4 16.0 •
Slide 19: myHomecare Group acquisition
myHomecare Group acquisition The coming of age of a business addressing the challenge our community must solve • As announced to the market on 20 February 2023, Australian Unity has agreed to acquire the myHomecare Group (MHC)1, a national provider of home care and home support services to combine w
Slide 20: Creating a customer-centred full-service care provider
Creating a customer-centred full-service care provider Bringing together two complementary businesses across the value chain Care partners – will support navigation of the health and A customer's budget, determined by the independent assessors' recommendations on government funding 2 3 ageing servic
Slide 21: Market overview
Market overview Outlined below are the various care options available to the community, excluding NDIS Retirement Living Home-based care / Hospital in the Residential Aged Acute Hospital Care support Home Care Housing option targeted Care and support Nursing, rehabilitation Accommodation suited Hosp
Slide 22: myHomecare – Brands
myHomecare – Brands The group comprises multiple localised and targeted brands, across the continuum of self-to-fully managed care Fully-managed Self-managed Fully-Managed Self-Managed • Brands have their own individual target consumers and delivery model • Localised marketing activities are typical
Slide 23: Material acceleration opportunity with optionality
Material acceleration opportunity with optionality Strategic benefits that can be realised across Home Health on combination with MHC Provides operational and commercial efficiencies Supporting scale Leverages Home Health’s investment in transformation initiatives Expands Home Health clinical
Slide 24: Home Health outlook
Home Health outlook • Subject to ACCC approval, the key focus in the immediate term will be on the integration of employees and customers, and embedding the MHC business into existing operations • Investment in strengthening system, process and operating model capabilities to deliver a customer-cent
Slide 25: Retail
Retail AUL HY2024 Investor presentation 24
Slide 26: Retail
Retail The Retail platform brings together Australian Unity’s private health insurance (PHI) and banking businesses Adjusted EBITDA ($m) Highlights HY23 HY24 • PHI claims returned to long-term trend levels, after being depressed for a number of years due to COVID-19 66.8 related factors. Consequentl
Slide 27: Retail outlook
Retail outlook • Outlook is cautiously positive, notwithstanding the continued uncertainties flowing from COVID-19 and a highly competitive banking landscape • Anticipate that PHI claims will return to historical levels of utilisation and bank credit growth is likely to be impacted over the coming y
Slide 28: Specialist Care
Specialist Care AUL HY2024 Investor presentation 27
Slide 29: Specialist Care
Specialist Care The Specialist Care platform provides aged care services in 12 facilities across New South Wales (NSW), Victoria and Queensland Adjusted EBITDA ($m) Highlights HY23 HY24 • Total segment revenue of $101.3m, represents an increase of 27.6% on the PCP 19.9 • Adjusted EBITDA of $19.9m re
Slide 30: Specialist Care outlook
Specialist Care outlook • Remain focused on high-quality care and services, sustained high occupancy levels, and optimising outcomes in the performance of its operations • This will be achieved through efficient cost management, while meeting the ongoing and changing regulatory landscape AUL HY2024
Slide 31: Wealth & Capital Markets
Wealth & Capital Markets AUL HY2024 Investor presentation 30
Slide 32: Wealth & Capital Markets (W&CM)
Wealth & Capital Markets (W&CM) The W&CM platform comprises funds management, social infrastructure, life & super and trustee services businesses. Adjusted EBITDA ($m) HY23 HY24 Highlights • Total segment revenue increased by 21.6% compared to the PCP 24.0 18.4 • Adjusted EBITDA increased by 30.2% c
Slide 33: W&CM outlook
W&CM outlook • Seek to deliver differentiated products and services designed to support and improve the financial wellbeing and economic empowerment of customers, addressing important community needs • Remains well positioned to benefit from: • the collective impact of the rising need for better-pla
Slide 34: 10-year growth strategy
10-year growth strategy Our growth areas in pursuit of Wellbeing Realise the value Accelerate Build social of the social momentum in infrastructure enterprise health & human reach services AUL HY2024 Investor presentation 33 33 33
Slide 35: Real Wellbeing
Australian] Real Wellbeing