Aub Group Limited · ASX:AUB

Aub — Shareholder Meeting (November 2019)

28 slides from Aub's shareholder meeting presentation, Nov 12, 2019

  1. Slide 1: Annual General Meeting

    AUB Group Limited For personal use only Annual General Meeting 12 November 2019

  2. Slide 2: Chair's Address

    For personal use only Chair’s Address David Clarke Chairman

  3. Slide 3: AGM 2019 – Meeting Agenda

    AGM 2019 – MEETING AGENDA For personal use only Chair’s Address 1 David Clarke CEO and MD Address 2 Mike Emmett Formal Business 3 David Clarke 3 © 2019 AUB Group Limited

  4. Slide 4: CEO's Address

    For personal use only CEO’s Address Mike Emmett CEO and Managing Director

  5. Slide 5: AUB Group Overview

    AUB GROUP OVERVIEW For personal use only  61 Partner businesses, with ~20% Commercial AUSTRALIAN BROKING Insurance Market Share with primary SME focus  Established complementary capabilities in Life Insurance Broking, Premium Funding, Claims $3.2B+ GWP 15 STRATEGIC INSURANCE BROKING OF $2.8B VIA E

  6. Slide 6: Recent Insurance Industry Awards

    RECENT INSURANCE INDUSTRY AWARDS For personal use only Authorised Insurance Brokerage of Best Digital Strategy – Elite Brokers 2019 Broker of the Year, John Representative Group of the Year (>20 Staff) Brokerage  Dale Hansen, Duncan the Year Insurance Business Australia – Insurance Business Austral

  7. Slide 7: FY19 Performance Overview

    For personal use only FY19 PERFORMANCE OVERVIEW

  8. Slide 8: FY19 Performance Snapshot - Group

    FY19 PERFORMANCE SNAPSHOT - GROUP For personal use only 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- Marg

  9. Slide 9: FY19 Performance Snapshot - Divisional

    FY19 PERFORMANCE SNAPSHOT - DIVISIONAL For personal use only 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% 3

  10. Slide 10: Effectively Leveraging and Managing Debt

    EFFECTIVELY LEVERAGING AND MANAGING DEBT For personal use only 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 De

  11. Slide 11: Disciplined M&A

    DISCIPLINED M&A For personal use only 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  The Group intends to continue to supplement organic growth by relevant 76 acquisiti

  12. Slide 12: Improving Shareholder Returns a Priority

    IMPROVING SHAREHOLDER RETURNS A PRIORITY For personal use only 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

  13. Slide 13: FY20 Strategic Imperatives

    For personal use only FY20 STRATEGIC IMPERATIVES

  14. Slide 14: FY20 Execution Priorities | Q1FY20 Update (1 of 2)

    FY20 EXECUTION PRIORITIES | Q1FY20 UPDATE (1 of 2) For personal use only Enhance our core business - Completed a capacity and product sourcing Expressions of Interest process, partner proposition with engaging 27 local and global capacity providers; responses under review with 1 improved product and

  15. Slide 15: FY20 Execution Priorities | Q1FY20 Update (2 of 2)

    FY20 EXECUTION PRIORITIES | Q1FY20 UPDATE (2 of 2) For personal use only - Identified key partner consolidation opportunities with execution underway – expect to deliver increased expertise leverage, create additional market scale and reduce cost duplication/redundancy Consolidate our core - Well un

  16. Slide 16: Outlook and Guidance

    For personal use only GUIDANCE OUTLOOK AND

  17. Slide 17: FY20 Outlook and Guidance

    FY20 OUTLOOK AND GUIDANCE For personal use only Outlook Guidance During FY20 the Group anticipates good During FY20 the Group will continue to growth from Insurance Broking in Australia implement changes as follows: and New Zealand as well the Underwriting  Enhance value and benefits to Network par

  18. Slide 18: Thank You

    For personal use only THANK YOU

  19. Slide 19: Notice

    NOTICE For personal use only 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 pu

  20. Slide 20: Appendices

    For personal use only APPENDICES

  21. Slide 21: AUB Group – Board of Directors

    AUB GROUP – BOARD OF DIRECTORS For personal use only David Clarke Robin Low Cath Rogers Non-Executive Chairman, Chair of the Nomination and Non-Executive Director, Chair of the Audit & Risk Non-Executive Director Remuneration & People Committee Management Committee  35 years’ experience in investme

  22. Slide 22: Divisional Overview – Austbrokers

    DIVISIONAL OVERVIEW – AUSTBROKERS For personal use only Our Australian broking business ~$2.1 billion in 63% contribution to encompasses some of Australia’s largest and most reputable brokerage business, premium group revenue with specialist expertise, market penetration and quality client portfolio

  23. Slide 23: Divisional Overview – AUB Group NZ

    DIVISIONAL OVERVIEW – AUB GROUP NZ For personal use only AUB Group’s expansion into New Zealand in 2015 has grown significantly, providing a key source of growth opportunities for the ~$700 million in 10% contribution to Group. premium group revenue AUB Group New Zealand, which selectively invests i

  24. Slide 24: Divisional Overview – SURA

    DIVISIONAL OVERVIEW – SURA For personal use only Our Underwriting Agencies division comprises some of Australia’s leading specialist underwriters who distribute and ~$350 million in 11% contribution to manage niche insurance products on behalf of domestic and internationally licensed premium group r

  25. Slide 25: Insurance Portfolio – Premium and Size

    INSURANCE PORTFOLIO – PREMIUM AND SIZE For personal use only Annual Premium ($bns) 3.5 3.0 +11% ~3.2bn Premium under influence across the AUB network 2.5 (FY19) New Zealand Broking 2.0 1.5 1.0 Australian Broking ~1.2mn Policies written within the AUB network (FY19) 0.5 0.0 2017 2018 2019 Total inclu

  26. Slide 26: Insurance Operations – Reach and Scale

    INSURANCE OPERATIONS – REACH AND SCALE For personal use only NT QLD 4 locations ~450 72 locations Locations WA 28 locations NSW 124 locations SA ACT 24 locations 7 locations >3,000 VIC 47 locations staff TAS New 4 locations Zealand 140 locations  Data sources for market sizing and share calculation

  27. Slide 27: AIMS – Core Capabilities

    AIMS – CORE CAPABILITIES For personal use only Austbrokers Insurance Member Services (AIMS) AIMS will serve as the member services division with four key areas of responsibility PARTNER UNDERWRITING  Sourcing and negotiating capacity and BUSINESS CAPACITY AND product offerings with insurance partne

  28. Slide 28: For personal use only

    For personal use only

AUB Group — Shareholder Meeting (November 2019) on 6ix