Australian Unity Ltd · ASX:AYUPA
Australian Unity — FY2019 Earnings Presentation
32 slides from Australian Unity's earnings presentation, Sep 2, 2019
Slide 1: Investor update: Financial results for the year ended 30 June 2019
Australian Unity Limited Investor update Financial results for the year ended 30 June 2019
Slide 2: Australian Unity investor update teleconference
Australian Unity investor update Australian Unity Limited is pleased to invite you to our investor presentation teleconference for the year ended 30 June 2019 Date If you are unable to attend, you are welcome to email 2 September 2019 any queries you may have to: tisteer@australianunity.com.au Time
Slide 3: Important information
Important information This notice relates to all information provided as a part of this To the maximum extent permitted by law, AUL, its related bodies presentation including, without limitation, these slides, associated corporate and each of its respective officers, directors, employees, presentati
Slide 4: Overview & Group highlights, Business results, Summary & outlook
1. Overview & Group highlights 2. Business results 3. Summary & outlook Esther Kerr-Smith Alex Smith Rohan Mead Group Executive, General Manager Commercial, Finance & Group Managing Director & CEO Finance & Strategy Strategy - IAL 4
Slide 5: Overview & Group highlights
Overview & Group highlights 5
Slide 6: Overview of Australian Unity
Overview of Australian Unity Established in 1840—one of Australia’s first member-owned wellbeing companies Around 270,000 members; more than 700,000 customers Mutual with growing Profits reinvested into programs and services that benefit members and customers, and create community impact commu
Slide 7: Meeting the wellbeing needs of older Australians
Meeting the wellbeing needs of older Australians In just over 20 years from now, by 2040, there will be: 4.6m+ 5m+ 2.6m+ people with people aged people with high circulatory system 70+ or very high disease anxiety, or distress On current policy settings, by 2040, the health and aged care systems are
Slide 8: We have prepared and our timing looks right
We have prepared and our timing looks right Aligned around a clear purpose to help Australians Effective and proactive thrive Portfolio earnings diversification advocacy on key topics We’re measuring what matters Underpinned by stabilisation of Continued investment in risk, cultural, governance, HDS
Slide 9: Solid progress on the year's priorities
Solid progress on the year’s priorities Development pipeline HDS progress for retirement Transformation communities PHI focus Herston execution Balance sheet 9
Slide 10: Solid performance against broad ambitions
Solid performance against broad ambitions Considerable investment in human services operations, including a significant improvement in the Home & Disability Services (HDS) business; successful navigation of an uncertain regulatory period for the health insurance business; and progressed person-cen
Slide 11: FY19 key metrics
FY19 key metrics Profit after income tax1 ($m) Profit after income tax from continuing 60.0 operations2 ($m) 53.0 60.0 51.5 53.0 50.0 46.8 50.0 40.0 37.7 40.0 34.6 35.6 34.6 35.6 29.6 30.0 29.6 30.0 20.0 20.0 10.0 0.0 10.0 (10.0) 0.0 (20.0) (15.3) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2014 FY2
Slide 12: FY19 segment earnings growth
FY19 segment earnings growth Adjusted EBITDA ($m) FY2018 FY2019 80.0 74.4 70.0 64.6 60.0 50.5 48.2 50.0 40.0 36.9 30.0 20.0 10.0 0.0 (10.0) (3.3) Retail Wealth & Capital Markets Independent & Assisted Living 12
Slide 13: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience Debt maturity profile2 ($m) 300.0 Prioritised financial flexibility and resilience 20.0 250.0 18.0 Enhanced liquidity and capital buffer in key businesses 200.0 Heightened cash reserves 150.0 Established new LMS for AUCS 250.0 100.0 $30m re
Slide 14: Gearing analysis and interest cover
Gearing analysis and interest cover Interest cover ratio Bond covenant gearing 8.0 60% 600.0 7.0 50% 500.0 6.0 Debt Capacity ($m) 40% 400.0 5.0 Gearing Ratio 4.0 30% 300.0 3.0 20% 200.0 2.0 10% 100.0 1.0 0.0 0% 0.0 Jun 16 Jun 17 Jun 18 Jun 19 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Debt Cap
Slide 15: Independent & Assisted Living
Independent & Assisted Living 15
Slide 16: Investment for sustainable growth
Investment for sustainable growth Improved operating model to drive customer-centred continuum of care across the home care, residential care and Remedy Healthcare businesses Segment Revenue ($m) FY2018 FY2019 Pursued opportunities to further develop Integrated Care Model between 469.4 422.7 Rem
Slide 17: IAL highlights
IAL highlights* Home & Disability Residential Communities Development Remedy Healthcare Dental Services Owns and operates 20 Construction commenced, Grew revenue by 1.2% to Six dental clinics operating in Revenue growth of 13.3% to retirement communities in progressed or completed and $25.
Slide 18: IAL outlook
IAL outlook Continue to orientate the platform around the needs of customers and key stakeholders in their health and wellbeing, including families, primary carers, communities and government agencies Continue to develop the customer-centred continuum of care across the home care, assisted livin
Slide 19: Royal Commissions
Royal Commissions Recommendations from current reviews and inquiries, such as the Royal Commission into Aged Care Quality and Safety and the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with a Disability, as well as any future reviews and inquiries may result in signif
Slide 20: Retail
Australian Unity Health | Wealth | Living
Slide 21: Solid year amidst mixed operating conditions
Solid year amidst mixed operating conditions Adjusted EBITDA increase of 15.2% driven principally by a favourable underwriting Segment Revenue ($m) experience in the health insurance business and continued net interest margin FY2018 FY2019 improvement and loan book growth in the banking business 7
Slide 22: Retail outlook
Retail outlook Pressure on affordability and trust remain key factors for private health insurance and banking sectors Australian Unity anticipates increased oversight and a growing cost of compliance as prudential regulators bring the private health insurance industry in line with financial ser
Slide 23: Retail highlights
Retail highlights* Health insurance Banking Delivered lowest average premium increase to Big Sky Building Society Limited renamed members in 18 years, approximately in line with Australian Unity Bank Limited industry average Total assets increased by $108.6 million to Implemented private hea
Slide 24: Wealth & Capital Markets
Australian giant ealth & Capital rkets Health | Wealth | Living
Slide 25: Building strong and sustainable growth
Building strong and sustainable growth Recorded a 6.2% increase in total segment revenue to $180.9 million reflecting positive underlying revenue growth across all business units in Segment Revenue ($m) the platform FY2018 FY2019 170.4 180.9 Strong result of 36.7% increase in adjusted EBITDA was
Slide 26: Herston Quarter Redevelopment
Herston Quarter Redevelopment 3 COMMERCIAL CAR 2 HOSPITALS BETTER TOGETHER® HERITAGE BUILDINGS PARKS HPT Strategic partners $1.6b Health care 12 structured car parks Retirement living and Intended to be funded Property Trust across 8 major Australian residential aged care predominantely through an p
Slide 27: Wealth & Capital Markets highlights
Wealth & Capital Markets highlights* Property Life & Super Investments Advice Trustees Assets under management Assets under management and Funds under management (FUM) New leadership team Continued implementation of a increased to $3.0 billion administration of $2.3 billion of $6.0 billion
Slide 28: W&CM outlook
W&CM outlook Period ahead should continue to provide opportunities for the platform to offer customers valuable investment and financial opportunities, and to deliver important benefits to many areas of the community Herston Quarter project will continue to be a key focus of the platform as it u
Slide 29: Key business risks
Key business risks • Increased regulatory Regulatory Strategic • Over reliance on certain businesses complexity and scrutiny & Legal or funding sources • Investment in property and social infrastructure • Workplace injuries Operational or conditions • Inability to respond to change • Inability to ma
Slide 30: How will we deliver our strategy
How will we deliver our strategy… We’re here to help people thrive OUR VALUES: BOLD | WARM | HONEST If we take care of our people Customers and members have We’ve been here for 175+ years Community is at the heart of they will take care of our choices and we want them to and we want to be here for w
Slide 31: FY20 and beyond - strategic priorities
FY20 and beyond - strategic priorities Private Health Insurance Realising the HDS and Capability, Innovation, sector reforms AHC opportunity and Cost Social Infrastructure Capital and funding 31
Slide 32: Australian]
32 Australian] Health | Wealth | Living