Aub Group Limited · ASX:AUB
Aub — Austbrokers Holdings — Shareholder Meeting (November 2013)
26 slides from Aub's shareholder meeting presentation, Nov 20, 2013
Slide 1: Cover letter to ASX for CEO address
For personal use only 20th November 2013 The Manager Company Announcements Platform Australian Securities Exchange Exchange Centre 20 Bridge Street Sydney, NSW 2000 Dear Sir, Attached is a copy of the prepared Chief Executive Officer’s address and presentation which will be delivered at Austbrokers
Slide 2: CEO's Address to Annual General Meeting: FY13 review
AUSTBROKERS HOLDINGS LIMITED CEO’S ADDRESS TO ANNUAL GENERAL MEETING 20 NOVEMBER 2013 For personal use only Thank you Richard. It gives me great pleasure to be able to address you all today at this, my first AGM, as the CEO and Managing Director of Austbrokers Holdings. This time last year, Lach McK
Slide 3: Review of business areas
I would like to spend a few minutes reviewing the performance of our business areas. Insurance Broking business The broker network performed well, increasing revenue by 7.5% whilst our share of the broker profits increased by almost 17.6%. The growth achieved in 2013 was largely organic growth throu
Slide 4: Funding and Strategy
Funding The facility with St George Bank of $40 million is in place until May 2016. Currently the Facility is drawn to $35 million which would leave in the order of $5 million available. Following recent acquisitions we are in the process of increasing this facility by $10 million. With cash current
Slide 5: Key strategic priorities
Key strategic priorities As I previously mentioned, we have defined our growth pillars into 3 core areas, all backed by a robust back office, infrastructure and support regime. Broker Organic Growth: with about 10% share of intermediated insurance business, there is extensive opportunity to grow sha
Slide 6: Outlook and earnings outlook FY2014
The broker market will consolidate and opportunities to make acquisitions will continue to arise. These may be portfolio or bolt-on business for existing members or stand alone. There are opportunities in the market but as always the timing of completing these can be subject to many variables. There
Slide 7: Presentation to Annual General Meeting
For personal use only Austbrokers Holdings Limited Presentation to Annual General Meeting 20th November 2013 Mark Searles – CEO & Managing Director
Slide 8: Agenda
Agenda For personal use only • Review of FY 2013 - Market conditions - FY 2013 results - Insurance broking - Underwriting agencies - Business support services - Funding • Strategy – overview - People - Priorities - Support services • FY 2014 outlook - Market conditions - Earnings outlook - Earnings
Slide 9: Market Conditions FY2013
Market Conditions FY2013 For personal use only • Economic conditions - Uncertainty in SME sector – muted confidence - Economic growth at lower level – subdued activity - Interest rates decreased over FY2012 • Premium rates environment - Moderate increases – competitive market - Private motor and hou
Slide 10: Profit Growth 2007 - 2013
Profit Growth 2007 - 2013 For personal use only M 45 Reported NPAT Adjusted NPAT 40 $32,075 35 $41,203 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 Adjusted NPAT – Net profit after tax before amortisation of intangibles, adjustments to the carrying value of associates, profits arising from
Slide 11: Earnings Per Share 2007 - 2013
Earnings Per Share 2007 - 2013 For personal use only Cents 80 Reported NPAT Adjusted NPAT 70 56.2 cents 72.2 cents 60 50 40 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 4
Slide 12: Financial Highlights
Financial Highlights For personal use only • Dividend - Full year dividend 35.5 cents per share up 14.5% on FY 2012 - Payout ratio on NPAT 50% (64% on Adjusted NPAT) • Earnings per share growth was 56% (12.4% on Adjusted NPAT) • Total shareholder return - FY 2013 – 62% versus ASX All Ordinaries Inde
Slide 13: Insurance Broking: FY2013 Financial Performance
Insurance Broking For personal use only FY2013 Financial Performance $’000 Actual Actual 2012 % change 2013 Broker Revenue (net of 272,967 253,683 7.5% commission paid) Brokers / Pre Tax Profit (AHL 50,385 42,852 17.6% share) 6
Slide 14: Insurance Broking
Insurance Broking For personal use only • Share of broker and agencies profits increased by almost $12.5 million or 33% over FY2012 • Continued strategy of growth through acquisition and developing existing businesses • Acquisitions direct by Austbrokers - Dalby Insurance Brokers – April 2013 - BGA
Slide 15: Insurance Broking (cont'd)
Insurance Broking (cont’d) For personal use only • Premium Funding - Developed new arrangement with Hunter Premium Funding on expiry of existing arrangements 8
Slide 16: Underwriting Agencies
Underwriting Agencies For personal use only • Achieved 27% income growth, 19% excluding acquisitions • Premiums written at end FY13 now stand out $220 million • Acquired Guardian Underwriting and Lawsons Underwriting in May 2013 • Joint ventures established - Angel Accident and Health - Longitude In
Slide 17: Business Support
Business Support For personal use only • Leadership in support provision • Investment in the provision of services - One insurance broking system utilised - Austbrokers DataCentre – provision of technology platform and solutions - Austbrokers Business Centre – back office services to manage accounti
Slide 18: Funding – Current Position
Funding – Current Position For personal use only • Bank Facility with St George $40 million – term three years to May 2016 • In process of increasing facility by $10 million • At 31st October facility is drawn to $35 million • Availability for future draw downs will be $15 million • Total funds avai
Slide 19: Strategy
Strategy For personal use only • Strategic Review - Assessed core competencies - Objective to optimise operating model across all requiste competencies • Outcomes - Need to build bench strength with new skills to complement those existing in the organisation - Three pillars of growth • Broker organi
Slide 20: Strategy (cont'd): New Personnel – Bench Strength
Strategy (cont’d) For personal use only • New Personnel – Bench Strength • Key appointments include: - Chief Operating Officer – Sunil Vohra – oversee delivery of projects and process management - Chief Broking Officer – Keith McIvor – focus on insurer relationships and delivery to brokers - Additio
Slide 21: Key Strategic Priorities
Strategy (cont’d) For personal use only • Key Strategic Priorities - Broking organic growth • Partner Development Managers to play increasingly active and supportive role with partners • Supported by heightened focus on provision of relevant products, services and infrastructure from the group - Bro
Slide 22: Continued development of business support services
Strategy (cont’d) For personal use only • Continued development of business support services - Key areas • Technology • Marketing • Back office services – Austbrokers Business Centre - E-enablement of business • iClose business placement capability • Expand to all aspects of product life cycle inclu
Slide 23: Market Conditions FY2014
Market Conditions FY2014 For personal use only • Market conditions unlikely to change significantly in immediate future – moderate rate increases likely in SME sector • Consolidation of insurance broker market to continue and provide acquisition opportunities - other market activity may disrupt over
Slide 24: Earnings Outlook
Earnings Outlook For personal use only • Brokers’ results for the first four months of FY2014 have been good • Broker profit commission income uncertain and will not be known until April / May 2014 • Reduction in interest deposit rates will reduce interest earnings • The start to FY2014 has been pos
Slide 25: Appendix
For personal use only Appendix 1
Slide 26: FY 2013 Reconciliation of Reported NPAT to Adjusted NPAT
FY 2013 Reconciliation of Reported NPAT to Adjusted NPAT For personal use only * This information has been derived from the consolidated financial statements which have been subject to audit by the company’s auditors Elimination of the items above provides a basis for analysis of the underlying perf
Austbrokers Holdings — Shareholder Meeting (November 2013) on 6ix