Aub Group Limited · ASX:AUB
Aub — Austbrokers Holdings — UBS Australian Financial Services Conference 2014
17 slides from Aub's conference presentation, Jun 25, 2014
Slide 1: Cover letter to ASX: Presentation to UBS Conference
For personal use only 25th June 2014 The Manager Company Announcements Australian Securities Exchange Level 6, Exchange Centre, 20 Bridge Street Sydney, NSW 2000 Dear Sir / Madam, Re: Presentation to UBS Australian Financial Services Conference Attached is a presentation to be given to UBS Australia
Slide 2: UBS Australian Financial Services Conference June 2014
For personal use only AUSTBROKERS HOLDINGS LTD UBS - AUSTRALIAN FINANCIAL SERVICES CONFERENCE JUNE 2014 MARK SEARLES CEO & MANAGING DIRECTOR
Slide 3: Agenda
a For personal use only AGENDA • Business Overview • Financial Performance • Business Outlook
Slide 4: Business Overview
BUSINESS OVERVIEW • Largest equity-based Insurance Broking group in Aus/NZ For personal use only • Leading Underwriting Agency operations • Growing Insurance & Risk Services operations • Group established 1985; IPO 2005 • Clear business model (‘owner:driver’), operating model, vision and purpose • 8
Slide 5: AUB Business Model – 'Owner:Driver'
AUB BUSINESS MODEL – ‘OWNER:DRIVER’ For personal use only ‘Owner:Driver’ model strengths Partner Firm • Management and strategic support • Behavioural model • Standardised technology platforms • Retain equity in business • Product development • Day-to-day • Comprehensive management compliance progra
Slide 6: AUB Operating Model
AU B O P E R AT I N G M O D E L For personal use only BROKER & INTERMEDIARY UNDERWRITING INSURANCE & RISK AGENCIES AIMS JV DISTRIBUTION SERVICES - Existing Business Support/Growth - Existing Business Support/Growth - Procare - Product Wordings - New Partner Acquisition - Facility Management Support
Slide 7: AUB Strategies FY14/15
AUB STRATEGIES FY14/15 • Optimisation of Operating Model to continue to underpin future For personal use only growth across the Group • Continue roll-out of Business Technology and Data Centre provision and associated data management • Drive Compliance and Risk Management excellence • Continue roll-
Slide 8: AUB Strategies FY14/15
AUB STRATEGIES FY14/15 • Distribution Growth - focus on organic distribution inc bolt-on acquisitions; For personal use only stand alone acquisitions; x-sell. Grow market share from 11% • Underwriting Agency growth via organic growth and increasing operational efficiencies • Grow capabilities and sc
Slide 9: Financial Performance
For personal use only FINANCIAL PERFORMANCE • Financial highlights • Profit growth • EPS growth • Funding
Slide 10: 1HY2014 Financial Highlights
1HY2014 FINANCIAL HIGHLIGHTS For personal use only Operating revenue up 15% Reported NPAT down Adjusted NPAT up 6.2% 48% (due to fair value adjustment in HY13) Austbrokers Underwriting Agency EPS up 2% Holdings profits up 20% Interim dividend per share up 9% to 12 cents AUB share of broker profits u
Slide 11: NPAT Growth 1HY 2007–2014
NPAT GROWTH 1HY 2007 – 2014 For personal use only 25000 NPAT $’000 20000 Adjusted NPAT 15000 10000 5000 0 2007 2008 2009 2010 2011 2012 2013 2014 % increase NPAT 28.3% 25.1% 14.3% 7.2% 21.3% 29% 118% (47.8)% % increase Adjusted NPAT 14.6% 38.0% 12.6% 7.1% 25.9% 17% 20% 6.2% NPAT - Net Profit after t
Slide 12: Earnings Per Share 1HY 2007–2014
EARNINGS PER SHARE 1HY 2007 - 2014 For personal use only 45 NPAT cents per share 40 Adjusted NPAT cents per share Cents per share 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 NPAT cents per share 9.3 11.7 13.3 14.1 16.3 20.4 43.4 21.8 Adjusted NPAT cents per share 9.3 12.9 14.5 15.3
Slide 13: Funding
FUNDING For personal use only • Funding available from Bank facility for future acquisitions of $15 million • Free cash around $13 million over the next twelve months after earn out payments assuming maintenance of underwritten DRP • Gearing currently 16% (debt to debt plus equity)
Slide 14: Outlook
For personal use only OUTLOOK • Market conditions • Business Outlook
Slide 15: Market Conditions
MARKET CONDITIONS • Premium rates For personal use only - Flat premium rates over period - Insurer competition restrains extent of increases achievable however opportunities with Insurers looking to partner for growth • Continued low interest rate environment • Moderate economic growth forecast but
Slide 16: Business Outlook
BUSINESS OUTLOOK • Underlying growth in soft market conditions - organic growth expected to For personal use only continue through broker network initiatives • Ongoing opportunities through consolidation of Broking businesses via acquisition • Further growth and development in underwriting agency bu
Slide 17: UBS Australian Financial Services Conference June 2014
For personal use only AUSTBROKERS HOLDINGS LTD UBS - AUSTRALIAN FINANCIAL SERVICES CONFERENCE JUNE 2014 MARK SEARLES CEO & MANAGING DIRECTOR
Austbrokers Holdings — UBS Australian Financial Services Conference 2014 on 6ix