Aub Group Limited · ASX:AUB
Aub — Austbrokers Holdings — Shareholder Meeting (November 2012)
23 slides from Aub's shareholder meeting presentation, Nov 28, 2012
Slide 1: Cover letter to ASX
For personal use only 28th November 2012 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 28 November 2012
AUSTBROKERS HOLDINGS LIMITED CEO’S ADDRESS TO ANNUAL GENERAL MEETING 28 NOVEMBER 2012 Good morning Ladies and Gentlemen and again welcome to the 2012 AGM – the seventh since For personal use only Austbrokers listed on the ASX and my last AGM presentation as CEO. It is extremely pleasing to again be
Slide 3: For personal use only
The full year dividend was increased by 21.6% to 31 cents per share which represented a 62% pay out ratio on NPAT before amortisation and profit on sales and exceeded earnings per share growth of 16.9%. Total Shareholder Return was 13.5% for the year compared to the All Ordinaries Index return of ne
Slide 4: Funding
Funding The facility with St George Bank of $44 million is in place until August 2013. Currently the Facility is drawn to approximately $33 million which would leave around $11 million available. With cash currently held and recognising around $4.3 million of future earn out payments approximately $
Slide 5: Conclusion
Profit After Tax (before amortisation, profit on sale of equity interests and non recurring items) over FY 2012. We will review the position again after finalising our results for the first half year. Conclusion For personal use only Most importantly, I would like to again recognise the efforts of o
Slide 6: Austbrokers Holdings Limited Annual General Meeting
For personal use only AUSTBROKERS HOLDINGS LIMITED ANNUAL GENERAL MEETING 28th November 2012
Slide 7: Presentation to Annual General Meeting
For personal use only Austbrokers Holdings Limited Presentation to Annual General Meeting 28th November 2012 Lachlan McKeough - CEO
Slide 8: Agenda
Agenda For personal use only • Review of FY 2012 – Market conditions – FY 2012 results – Insurance broking operations – Underwriting agencies – Funding • Developments since 30th June 2012 • FY 2013 outlook – Market conditions – Earnings outlook – Earnings guidance 1
Slide 9: Market Conditions FY2012
Market Conditions FY2012 For personal use only • Premium rates environment – Moderate increases – competitive market – Private motor and householders insurance increases flowing through – Larger increases, higher risk or poor claims – PI and D&O insurance rates soft • Economic conditions – Economic
Slide 10: Profit Growth 2007 – 2012
Profit Growth 2007 – 2012 For personal use only 30 Reported NPAT Adjusted NPAT $M 25 $27,935 20 $25,640 15 10 5 0 2007 2008 2009 2010 2011 2012 Increase N/A 15.3% 13.7% 18.5% 11% 14.7% 11.5% 12.1% 17.5% 18.1% 15.0% 20.0% Adjusted NPAT – Net profit after tax before amortisation of intangibles and pro
Slide 11: Earnings Per Share FY 2007 - 2012
Earnings Per Share FY 2007 - 2012 Cents For personal use only 50 Reported NPAT 45 Adjusted NPAT 49.5 cents 40 46.3 cents 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 Increase N/A 15.1% 13.6% 18.4% 11.0% 14.5% 11.5% 9.2% 12.2% 12.8% 16.9% 11.9% 4
Slide 12: Financial Highlights
Financial Highlights For personal use only • Dividend – Full year dividend 31.0 cents per share up 21.6% on FY 2010 – Payout ratio on NPAT % (62% on Adjusted NPAT) • Total shareholder return – FY 2012 – 13.5% versus ASX All Ordinaries Index negative 9.5% – 5 years to 30th June 2012 – 16.8% p.a. (ASX
Slide 13: Insurance Broking Operations
Insurance Broking Operations For personal use only FY2012 Financial Performance $’000 Actual Actual 2012 2011 % change Broker Revenue (net of commission paid) 252,683 12.5% 225,470 Brokers / Pre Tax Profit 42,852 39,048 9.7% (AHL share) 6
Slide 14: Insurance Broking Operations
Insurance Broking Operations For personal use only • Share of broker and agencies profits increased by almost $5.9 million or 13.8% over FY2011 largely from growth in existing business • Continued strategy of growth through acquisition and developing existing businesses • Acquisitions Direct – Dittm
Slide 15: Insurance Broking Operations (cont'd)
Insurance Broking Operations (cont’d) For personal use only • Premium Funding – Entered into new arrangement with Hunter Premium Funding on expiry of existing arrangements • Synergies / Efficiencies – Central DataCentre hosts over 33 businesses for at least some services – Austbrokers Business Centr
Slide 16: Underwriting Agencies
Underwriting Agencies For personal use only • Achieved 55.5% income growth, 18% excluding acquisitions • Premiums written in 2012 - $160 million (excluding taxes and charges) • Acquired Film Insurance Underwriting Agency in January 2012 • Joint ventures established since 30 June 2012 – Angel Acciden
Slide 17: Funding – Current Position
Funding – Current Position For personal use only • Bank Facility with St George $44 million – term five years to August 2013 • At 31 October facility is drawn to $33 million • Availability for future draw downs is $11 million • Total funds available for acquisition around $20 million after earn out
Slide 18: Developments Since June 2012
Developments Since 30 June 2012 For personal use only • Insurance Broking Acquisitions Equity – Increased equity in Insurics from 50% to 100% – Increased equity in Austbrokers Canberra from 75% to 85% – Increased equity in Adroit from 50% to 68.5% – Increased equity in Comsure from 50% to 80% • Port
Slide 19: Market Conditions FY2013
Market Conditions FY2013 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 over longer term but other market activi
Slide 20: Earnings Outlook
Earnings Outlook For personal use only • Brokers’ results for the first four months of FY2013 have been good • Broker profit commission income uncertain and will not be known until April / May 2013 • Reduction in interest deposit rates will reduce interest earnings further in the second half of the
Slide 21: Appendix
For personal use only Appendix 1
Slide 22: FY 2012 Reconciliation of Reported NPAT to Adjusted NPAT
FY 2012 Reconciliation of Reported NPAT to Adjusted NPAT FY FY 2012 2011 $’000 $’000 For personal use only Reported Profit attributable to members 25,640 21,365 Profits on sale of interest in associates and controlled entities* - (105) Adjustment in contingent consideration on (192) - acquisition of
Slide 23: For personal use only
For personal use only This presentation may contain forward looking statements relating to future matters, which are subject to known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of Austbrokers and the Austbrokers Grou
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