Australian Unity Ltd · ASX:AYUPA
Australian Unity — HY2022 Earnings Presentation
34 slides from Australian Unity's earnings presentation, Feb 23, 2022
Slide 1: ASX Announcement
ASX Announcement 23 February 2022 Australian Unity Limited – Half-Year Investor Update Please find attached Australian Unity Limited’s Investor Update relating to the financial results for the half-year ended 31 December 2021. -end- This announcement has been authorised for distribution to the ASX b
Slide 2: Investor update
Australian Unity Limited Investor update Financial results for the half-year ended 31 December 2021
Slide 3: Investor presentation teleconference invitation
Australian Unity Limited is pleased Date Thursday 24 February 2022 to invite you to our investor presentation teleconference for the Time 9:30am to 10:30am AEDT half-year ended 31 December 2021 To access the teleconference participants must register in advance via the link below: https://apac.direct
Slide 4: Important information
Important information This notice relates to all information provided as a part of To the maximum extent permitted by law, AUL, its related this presentation including, without limitation, these slides, bodies corporate and each of its respective officers, associated presentations and any oral prese
Slide 5: Overview and Group highlights, Business results, Summary and outlook
1. Overview and Group highlights 2. Business results 3. Summary and outlook Rohan Mead Prue Bowden Darren Mann Group Managing Director Group Executive People & Culture Group Executive Finance & Strategy and CEO and Chief Financial Officer AUL HY22 Investor Presentation 4
Slide 6: Overview and Group highlights
Overview and Group highlights AUL HY22 Investor Presentation 5
Slide 7: Overview of Australian Unity
Overview of Australian Unity Mutual with a commitment to members, customers and community • Established in 1840, a member-owned company with 400,000 members and more than 700,000 customers • Diversified but thematically-linked portfolio of health, wealth and care businesses that provides member, cus
Slide 8: HY2022 Operational review
HY2022 Operational review Advancing strategic ambitions • Further progressed strategy of building a commercially sustainable portfolio of businesses that provides member, customer and community value and is supportive of personal and community wellbeing • Delivered an improved and solid financial re
Slide 9: HY2022 Operational review cont.
HY2022 Operational review cont. COVID-19 • Responded by maintaining, and where possible improving, levels of service and responsiveness to the needs and wellbeing of members and customers, while pursuing efficiency measures to mitigate risks and curtail expenditures. Also focused on the welfare of e
Slide 10: FY2022 priorities
FY2022 priorities Realise the value of the modern mutual Create the building blocks to form deeper Build social infrastructure reach relationships with members, based on Continuing to realise and extend our improving wellbeing outcomes and superior presence within the Social interaction with the Gro
Slide 11: Taking care of our members and customers
Taking care of our members and customers AUL HY22 Investor Presentation 10
Slide 12: Taking care of our people
Taking care of our people 91% of incidents reported within 48 hours, with a 14% increase in manager follow up compared to PCP Maintained underlying positive trends with hazard reporting and injury severity reductions 12% reduction in ‘lost days’ due to injury 1135 966 971 31% reduction in average co
Slide 13: Impacts of COVID-19 in a tight talent market
Impacts of COVID-19 in a tight talent market Our human services workforce profile Net care worker recruitment past 2 years 150 85% Permanent employment 100 50 68% Part-time hours of work 0 -50 87% Female workforce representation -100 -150 47 Average age years RACF (Care Companion) AHC/HCS/DS (Home C
Slide 14: Dual response to the care workforce challenge
Dual response to the care workforce challenge System shaping role Activating our response • Prioritising a permanent • Collaborating with peak workforce bodies • Creating a culture of • Advocating on work value safety & quality care and wages in the sector • Channels to market; • Reframing careers i
Slide 15: Measuring Community & Social Value
Measuring Community & Social Value Priority outcomes Impact report Lifelong wellness • Australian Unity published its inaugural 1. Better access to healthcare Impact Report in November 2021 2. Improved health outcomes • Demonstrates the sustainability of our business and assesses our key risks and o
Slide 16: HY2022 financial summary
HY2022 financial summary Key financial statistics HY2022 HY20211 Change Revenue and other income ($m) 835.0 818.0 17.0 Total expenses, excluding financing 794.1 767.2 26.9 costs ($m) Profit after tax ($m) 15.5 6.2 9.3 Operating earnings ($m) 13.8 11.9 1.9 Total MCI dividend in relation to HY22 8.6 (
Slide 17: HY2022 key metrics
HY2022 key metrics Profit after income tax1 2 ($m) 60 HY 50 40 30 48.8 50.3 20 26.7 10 15.5 9.1 6.2 0 FY2018 FY2019 FY2020 FY2021 HY2022 1 Included in the FY2018 result was a profit from discontinued operations of $66.9m from the divestment of the Group’s corporate health insurance subsidiary, Grand
Slide 18: HY2022 segment earnings growth
HY2022 segment earnings growth Adjusted EBITDA1, 2 ($m) HY21 HY22 45.0 38.9 40.1 40.0 35.0 30.1 30.0 26.4 27.5 25.0 20.0 15.0 9.8 10.0 5.0 0.0 3 Independent & Assisted Living Retail Wealth & Capital Markets 1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its b
Slide 19: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience Series C AUL Bonds Retirement Village Investment Notes Continued to build flexibility into the Drawn Revolving Loan Repaid Revolving Loan balance sheet, positioning for strategic Undrawn Revolving Loan Undrawn Development Loan Other external loans Dr
Slide 20: Gearing analysis and interest cover
Gearing analysis and interest cover Covenant gearing ratio Interest cover ratio1 60% 800 10.0 700 9.0 50% Debt Capacity ($m) 600 8.0 40% 7.0 Gearing Ratio 500 6.0 30% 400 5.0 300 4.0 20% 3.0 200 10% 2.0 100 1.0 0% 0 0.0 Jun 18 Dec 18 Jun 19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-18 Dec-18 Jun-19 Dec
Slide 21: Independent & Assisted Living
Independent & Assisted Living AUL HY22 Investor Presentation 20
Slide 22: Independent & Assisted Living (IAL)
Independent & Assisted Living (IAL) • Total segment revenue increase of 18.2% to $291.3m compared to the 1 PCP—despite significant disruption as a result of the COVID-19 Adjusted EBITDA ($m) pandemic HY21 HY22 26.4 27.5 • Adjusted EBITDA of $27.5m represented an increase of $1.1m or 4.2% on the PCP
Slide 23: IAL highlights
IAL highlights Home Care Services (HCS) Residential Communities Remedy Healthcare Dental • Acquired Greengate Group • Increased revenue by 7.5% to • Six dental clinics • Adjusted EBITDA of $11.6m1—in retirement and aged care $21.3m, driven operating in Victoria line with PCP. Achieved through busine
Slide 24: IAL outlook
IAL outlook • Continue to orientate the business around the health and wellbeing needs of customers and key stakeholders—families, primary carers, communities and government agencies • Pandemic is expected to continue to present significant ongoing challenges and disruption throughout the remainder
Slide 25: Retail
Retail AUL HY22 Investor Presentation 24
Slide 26: Retail
Retail • Delivered a sound result for the half-year, with an adjusted EBITDA of $40.1m—3.0% higher than the PCP Adjusted EBITDA ($m) HY21 HY22 • Overall revenue of $355.6m represented a 2.0% increase on the PCP 38.9 40.1 • Total operating expenses were $315.5m—$5.6m or 1.8% higher than the PCP. This
Slide 27: Retail highlights
Retail highlights Australian Unity Health Limited Private health insurance (PHI) Australian Unity Bank Limited • Average number of PHI • Deferred Claims Liability1 (DCL) increased by $16.0m to • Strong new lending growth was unable to offset policyholders was 1.2% higher $67.3m. This required the im
Slide 28: Retail outlook
Retail outlook • Cautiously positive outlook, notwithstanding continued uncertainties flowing from COVID-19. It is anticipated most health insurance claims deferred due to restrictions on healthcare services during the pandemic will catch up and bank credit growth may slow over the coming year with
Slide 29: Wealth & Capital Markets
Wealth & Capital Markets AUL HY22 Investor Presentation 28
Slide 30: Wealth & Capital Markets (W&CM)
Wealth & Capital Markets (W&CM) • Total segment revenue increase of 27.0% compared to PCP reflecting 1 improved business volumes, particularly in Property, Advice and Adjusted EBITDA ($m) Trustees businesses. The segment also recorded, as other income, a HY21 HY22 $20.3m gain, which arose from the r
Slide 31: W&CM highlights
W&CM highlights Investments Property Life & Super Advice Trustees • Assets under management • Funds under • FUA growth to $10.18b • Shifting focus to a • FUMA of $11.06b increased to $4.25b (30 June management and (30 June 2021: $9.36b), direct-to-consumer (30 June 2021: $10.46b), with 2021: $4.10b)
Slide 32: W&CM outlook
W&CM outlook • Period ahead should continue to provide customers valuable investment opportunities and to deliver increased community and social value • Remains well positioned to benefit from collective impact of the rising need for better-planned wealth accumulation, challenges and opportunities p
Slide 33: 10 year growth strategy
10 year growth strategy Growth areas Realising a Accelerate Build social modern momentum in infrastructure mutual health & human reach services
Slide 34: Australian Unity: Real Wellbeing
Australian Real Wellbeing