Aub Group Limited · ASX:AUB
Aub — Austbrokers Holdings — Shareholder Meeting (November 2014)
22 slides from Aub's shareholder meeting presentation, Nov 25, 2014
Slide 1: Cover letter to ASX: CEO address and presentation
For personal use only 25th November 2014 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
AUSTBROKERS HOLDINGS LIMITED CEO’S ADDRESS TO ANNUAL GENERAL MEETING 25 NOVEMBER 2014 For personal use only Thank you Richard and I’d like to add my welcome to everyone here today and also, on behalf of the management and staff of Austbrokers and our Partners, profess our heartfelt thanks to David H
Slide 3: Key Achievements
Key Achievements Significantly, we achieved growth across all 3 market facing areas: Share of broker profits was up 4.6% in a declining premium rate market which was particularly evident in the June quarter. Acquisitions made in FY13 and FY14 contributed 6% growth which was offset by a decline in
Slide 4: Underwriting Agencies and Risk Services
We are pleased that our discipline and focus has led us to become the largest non-insurer owned Underwriting Agency group in Australia. Risk Services A key area of opportunity that we have identified and are executing against is the provision of risk services to the market. Developing capabilities a
Slide 5: Our Group Strategy
Our Group Strategy Our Group Strategy is focussed around the opportunity to deliver against our Clients risk mitigation requirements both known and unknown. The majority of our clients are businesses and we will continue to build or acquire the capabilities to assess, provide solutions and improve s
Slide 6: Austbrokers Holdings Ltd 2014 Annual General Meeting
For personal use only AUSTBROKERS HOLDINGS LTD 2014 ANNUAL GENERAL MEETING 25th NOVEMBER 2014
Slide 7: Agenda
AGENDA For personal use only • Who we are • FY14 results and highlights • Building our future with confidence • Our market facing areas • Building the future • Vision and Purpose • Group operating model • Group strategy • FY15 outlook and approach
Slide 8: Who We Are
WHO WE ARE • Australia and NZ’s leading equity based insurance broking, underwriting agency and For personal use only risk services group • Pioneers of the ‘Owner-Driver’ model • Largest NZ cluster • 80+ broking groups • 21 agency groups • Leading support group • Largest equity based • 50+ specialis
Slide 9: FY14 Result - Group Strongly Positioned
FY14 RESULT - GROUP STRONGLY POSITIONED For personal use only Adjusted NPAT Achieved double-digit Up 10.5% Adjusted NPAT growth Operating revenue For 9th Year Up 18% Underlying EPS Share of broker Up 6.5% AUSTBROKERS profits HOLDINGS LTD. Up 4.2% Dividend per share Underwriting Up 8.5% Agency profit
Slide 10: Growth Across All Business Divisions
GROWTH ACROSS ALL BUSINESS DIVISIONS For personal use only • Commission / fee income • Revenue growth 40% • New division established up 12.1% • 33% net profit growth • Complementary risk • 6.2% profit growth • Significant growth from start-up services and support • Profit commissions up 18.5% agenci
Slide 11: Consistent Profitable Growth Since Listing
CONSISTENT PROFITABLE GROWTH SINCE LISTING $M For personal use only 45 Reported NPAT Adjusted NPAT 40 35 $35.450 30 $34.655 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 Increase YoY N/A 15.3% 13.7% 8.5% 11% 14.7% 11.5% 12.1% 17.5% 18.1% 20.0% 15.0% 60.7% 17.1% (18.9)% 10.5% • Adjusted NPA
Slide 12: Earnings Per Share Up 6.5%
EARNINGS PER SHARE UP 6.5% Cents For personal use only 80 Reported NPAT Adjusted NPAT 70 58.5 60 cents 50 60.0 cents 40 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 2014 Increase YoY N/A 15.1% 13.6% 18.4% 11.0% 14.5% 11.5% 9.2% 12.2% 12.8% 16.9% 11.9% 56.0% 13.7% (19.0)% 6.5% • 9th consecutive incr
Slide 13: Shareholders Benefiting From Success
SHAREHOLDERS BENEFITING FROM SUCCESS Cents For personal use only 40 35 30 25 20 Dividend per Share 15 10 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 • Dividend per share FY14 38.5 cents up 8.5% • DRP will remain in place. Proposed to fully underwrite DRP • Payout ratio on an Adjusted NPAT basis
Slide 14: Insurance Broking
INSURANCE BROKING More than Largest $2.3B Equity in 80+ For personal use only broking cluster base premium businesses across in NZ 250+ locations 450,000+ Largest equity clients based broking group ~30 YRS active 9 YRS continuous double digit growth partnership experience Staff >2,700 06 07 08 09 10
Slide 15: Underwriting Agencies
UNDERWRITING AGENCIES More than Largest non For personal use only insurer $280M 21 agency groups underwriting group Gross written in Australia premium (GWP) 50 specialised product lines Business leaders have >30 years industry experience (average) 180 staff 06 07 08 09 10 11 12 13 14
Slide 16: Building Our Future With Confidence
BUILDING OUR FUTURE WITH CONFIDENCE For personal use only • Clarity of vision and purpose • Clarity of business model – ‘Owner-Driver’ • Clarity of operating model • Clarity of group strategy • Sustained, demonstrable performance • Disciplined approach
Slide 17: Our Vision and Purpose
OUR VISION AND PURPOSE For personal use only We excel at working with our Partners, to enable the provision of relevant advice and optimal solutions, that clients value and trust to manage their risks. Delivering our vision with integrity and passion will create enhanced value for our shareholders,
Slide 18: AUB Group Operating Model
AUB GROUP OPERATING MODEL For personal use only CLUSTER GROUP UNDERWRITING BROKER & INTERMEDIARY RISK SERVICES - AIMS JV (AUS) AGENCIES DISTRIBUTION - BWM (NZ) - Product Wordings - Existing Business Support/Growth - Existing Business Support/Growth - Complementary ‘Risk’ Services - Product Remunerat
Slide 19: AUB - Group Strategic Approach
AUB - GROUP STRATEGIC APPROACH For personal use only INSTITUTIONS – INDIVIDUALS BUSINESSES SERVICE PROVISION Post Event Solutions Post Event Solutions Post Event Solutions Post Event Solutions Risk Solutions Risk Solutions Risk Solutions Risk Solutions Risk Assessment Risk Assessment Claims Risk Ass
Slide 20: FY15 Outlook and Approach
FY15 OUTLOOK AND APPROACH For personal use only • Soft premium environment in broking with declining rates creating a headwind, therefore focus in broking on: • Retaining customers • Delivering cross-sell opportunities • Driving additional revenue opportunities • Key Group activities to support grow
Slide 21: Appendix
For personal use only APPENDIX
Slide 22: FY14 Reconciliation of Reported NPAT to Adjusted NPAT
FY14 RECONCILIATION OF REPORTED NPAT TO ADJUSTED NPAT For personal use only FY14 FY13 Variance $’000 $’000 % Reported Profit attributable to members 34,655 41,203 (15.9) Add (Less) Net Loss (Profit) after tax on sale of interests in associates and controlled entities and contingent consideration adj
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