Australian Unity Ltd · ASX:AYUPA
Australian Unity — H1 FY2018 Earnings Presentation
31 slides from Australian Unity's earnings presentation, Mar 20, 2018
Slide 1: Australian Unity Limited Investor update
Australian Unity Limited Investor update Financial half-year ended 31 December 2017
Slide 2: Australian Unity investor update
Australian Unity investor update Australian Unity Limited is pleased to You are welcome to email any queries invite you to our investor presentation for the half-year ended 31 December 2017 you may have to pchin@australianunity.com.au Date before, during or after the call. We will Tuesday 20 March 2
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, presen
Slide 4: Agenda
Agenda 1. Overview & Group highlights 2. Business results: Healthcare Wealth Personal Financial Services Independent & Assisted Living 3. Summary & outlook Esther Kerr-Smith Darren Mann Steve Drummy Group Executive - Finance & Strategy Deputy Head of Finance & CFO General Manager Commercial Finance
Slide 5: Overview & Group highlights
Overview & Group highlights
Slide 6: Overview of Australian Unity
Overview of Australian Unity More than 175 years as an Australian mutual 280,000 members; almost 1 million customers Trusted mutual Profits reinvested into programs and services that benefit members and customers, and create community value Prudentially regulated by the Australian Prudential
Slide 7: HY18: Investing for growth
HY18: Investing for growth Substantial business transformation program to streamline operations into customer-focused Growth ambitions platforms to pursue opportunities incurred significant costs impacting first half-year results advanced as flagship with benefits to come over following reporting
Slide 8: HY18 key metrics
HY18 key metrics Net profit after tax ($m) Operating earnings ($m) Full year profit Full year operating earnings Profit on sale of GUCH Half year operating earnings from discontinued operations * Half year profit from discontinued operations * Operating earnings excluding discontinued operations Hal
Slide 9: HY18 key metrics
HY18 key metrics Funding maturity profile2 Adjusted EBITDA1 ($m) FY23 and beyond December 2016 December 2017 FY21 20 250 3 37.3 34.3 FY20 5 FY19 18 15.5 8.7 FY18 8 5 3.0 0.9 0 10 20 30 40 50 60 70 80 90 100 200 250 -0.4 Millions -2.1 Healthcare Wealth Personal Financial Independent & Retirement Vill
Slide 10: Gearing analysis and interest cover
Gearing analysis and interest cover 55% 500 450 50% Ratios for Australian Unity Bonds – 400 Tranche 1 at 31 December 2017: 45% Gearing at 25.4% based on 350 covenant gearing calculations 40% 300 Interest cover* at 8.2 times 35% 250 200 30% 150 25% 100 20% 50 June 2014 June 2015 December June 201
Slide 11: HY17 to HY18 net profit movement
HY17 to HY18 net profit movement $m 120 100 30 80 81 60 40 73 1 2 20 7 5 3 17 0 FY17 profit for Healthcare Wealth Personal Independent & Movement in Sale proceeds Total tax FY18 profit for the half year movement movement Financial Assisted Living discontinued before tax movement the half year Servic
Slide 12: Healthcare
in Health | Wealth | Living
Slide 13: Solid result despite challenging market conditions
Solid result despite challenging market conditions • Solid first half result driven largely by improved underwriting Segment revenue ($m) experience December 2016 December 2017 360.5 363.1 • Corporate health insurance subsidiary, GUCH sold to nib holdings ltd on 31 October 2017. This sale was undert
Slide 14: Healthcare highlights
Healthcare highlights* Retail health insurance Corporate health insurance Remedy Healthcare Dental Policyholders decreased by (GU Health) Delivered more than 256,000 Growth in number of patients 1.0% to 199,539 (30 June 2017: Sold to nib holdings ltd on episodes of care across 18 visiting Au
Slide 15: Healthcare outlook
Healthcare outlook • Strategic focus on growing retail health insurance business and Remedy Healthcare, as well as other human services operations • Remedy Healthcare to further integrate allied health services with home care and disability services and expand its digital and innovation agenda, incl
Slide 16: Wealth
in Health | Wealth | Living
Slide 17: Opportunities for customers as economic growth improves
Opportunities for customers as economic growth improves Segment revenue ($m) • Achieved strong results through growth in new business, solid December 2016 December 2017 investment returns and launching new products and technology improvements for the benefit of customers 60.2 67.9 • Adjusted EBITDA
Slide 18: Wealth highlights
Wealth highlights* Investments Property Big Sky Life & Super Total funds under management Portfolio increased to $2.60 Big Sky’s total on-balance Funds under management and and administration of $10.35 billion (30 June 2017: $2.44 sheet assets declined slightly administration increased to bi
Slide 19: Wealth outlook
Wealth outlook • For the first time in a decade there was strong coordinated growth across the world’s major economic regions • Wealth remains well positioned to benefit from favourable industry dynamics and will continue to focus on delivery of differentiated, higher value products and services • O
Slide 20: Personal Financial Services (PFS)
Personal Financial Services (PFS)
Slide 21: Maintaining focus on expansion and growth
Maintaining focus on expansion and growth Segment revenue ($m) • Considerable focus on expansion and growth of Australian Unity December 2016 December 2017 Trustees Limited after obtaining trustee financial services licence in 32.2 32.2 February 2017 • Financial advice business performed creditably
Slide 22: PFS highlights
PFS highlights* Financial advice Trustee Services Finance & insurance services Despite recent regulatory changes, Secured a number of new tribunal and Finance broking revenue slightly members numbers and funds under court appointments in Queensland, down to $1.1 million advice in the Corporate
Slide 23: PFS outlook
PFS outlook • Proactive approach to addressing challenges presented by regulatory change and market volatility: – Diversify revenue streams and build capacity in areas such as Trustee Services, and general and life insurance, designed to serve growing needs of the community – Review opportunities fo
Slide 24: Independent & Assisted Living (IAL)
Independent & Assisted Living (IAL)
Slide 25: Delivering continuum of care and service
Delivering continuum of care and service • Continued investment in supporting the integration and growth of the Segment revenue ($m) Home & Disability Services business contributed to decline in financial December 2016 December 2017 performance 197.7 192.7 • Transfer of state-funded disability clien
Slide 26: IAL highlights
IAL highlights* Home care & Retirement Development Aged care disability services communities Construction either completed, Important area of growth and Significant growth in revenue to Owns and operates 19 substantially progressed or key component of the business’ $136.1 million representin
Slide 27: IAL outlook
IAL outlook • Continuum of service care offering in the form of home care, retirement communities and aged care to be further advanced through second half of FY18 through geographic and service expansion opportunities • Ongoing transfer of state-funded disability clients to the NDIS • Significant gr
Slide 28: Summary & outlook
Summary & outlook
Slide 29: Customer-focused business shaped for future growth
Customer-focused business shaped for future growth • First half-year saw a substantial company-wide transformation program that aims to capitalise on opportunities in large and rapidly growing markets in the Group’s areas of operations in health, wealth and living. The transformation has incurred si
Slide 30: Questions?
30 Questions? Australian y, Health | Wealth | Living
Slide 31: Australian Unity
31 Australian yD Health | Wealth | Living