Slide 1: AUB Group Ltd Half Year Results 1H18
AUB GROUP LTD HALF YEAR RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2017 (1H18) 26 FEBRUARY 2018 Page 1 - AUB Group Ltd 1H18 Results
Slide 2: Notice
NOTICE SUMMARY INFORMATION This document has been prepared by AUB Group Limited (ABN 60 000 000 715) (AUB). It is a presentation of general background information about AUB’s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete.
Slide 3: Overview
OVERVIEW MARK SEARLES CEO & MANAGING DIRECTOR
Slide 4: AUB Group Today
AUB GROUP TODAY The largest equity-based risk management group for SME clients in Australasia >1 Directly represent $2.6B GWP via equity partners, plus $1.9B GWP through MILLION cluster partners, for a combined EQUITY IN 135+ BUSINESSES ACROSS CLIENT POLICIES $4.5B 425+ LOCATIONS >3,800 STAFF GWP 32
Slide 5: Performance Highlights – 1H18
PERFORMANCE HIGHLIGHTS – 1H18 Delivering strong profit and revenue growth Adjusted NPAT growth to $16.7m2 +15.1% Reported NPAT growth to $23.8m2 +91.5% Underlying1 Revenue increase +7.2% Underlying1 EBITA increase +9.5% Underlying1 EBITA margin increase +50 bps Organic growth: the key driver across
Slide 6: Group's Approach Delivering
GROUP’S APPROACH DELIVERING Disciplined execution of our strategy supporting continuous growth. #039;m 80 70 60 50 40 30 20 10 - 12 months ended FY12 FY13 FY14 FY15 FY16 FY17 Dec-17 Total Group pre-tax Profit before Corporate Expenses Total Australian Broking profit Adjusted NPAT Corporate Expenses (af
Slide 7: Business Area Highlights
BUSINESS AREA HIGHLIGHTS Group • Group ‘ecosystem’ gaining increased traction • New COO appointment to drive value of service offering • Outsourcing technology services to improve performance • Growth in Leadership Academy graduates and new and reduce ongoing cost programs being developed • Founding
Slide 8: Financial Performance
FINANCIAL PERFORMANCE JODIE BLACKLEDGE CFO
Slide 9: Key Results
KEY RESULTS Growth in all businesses in an improved premium rate environment. • Strong underlying management results with premium 1H18 1H17 GROWTH rates hardening – growth primarily organic. Underlying Management Results1 • Underlying performance translates to growth in key Revenue ($m) 241.6 225.4
Slide 10: AUB Group Profit Contribution Analysis
AUB GROUP PROFIT CONTRIBUTION ANALYSIS Execution of strategy delivers growth and diversification. #039;m Adjusted Profit Contribution to AUB Group (after tax and non-controlling interests) 18 17 16 15 14 13 12 11 10 1H17 Risk Services New Zealand Australian Broking Underwriting Corporate Tax 1H18 Agenc
Slide 11: Insurance Broking – Australia
INSURANCE BROKING – AUSTRALIA Strong growth in a hardening market. • Pre-tax profit contribution to AUB Group of $20.4m up 6.8% supported by organic growth and the acquisition of Lea Insurance Brokers and acquisitions by equity partners. • Strong growth in commission and fee income with low to mid s
Slide 12: New Zealand
NEW ZEALAND Strategy delivering strong organic growth. • Pre-tax profit contribution to AUB Group up 11% to $2.8m, in a hardening rate environment. The exchange rate weakened by 5% vs pcp which has detracted from the strong underlying organic growth (revenue up 7%, EBIT up 18% and margin improved by
Slide 13: Underwriting Agencies
UNDERWRITING AGENCIES Income growth in hardening market. • Pre tax profit contribution from Underwriting Agencies of $4.6m, up 5% on pcp. • Achieved strong organic Commission and Fee growth of 13%. Most lines of business are experiencing mid single digit premium rate growth. Policy count increased 7
Slide 14: Risk Services
RISK SERVICES Strong growth through uncertain market. • Pre tax profit contribution increased to $4.3m up 21%, despite NSW workers compensation changes in the first half. • Revenue grew 11% and margins improved by 2% over pcp, assisted by growth in ancillary risk services and rehabilitation services
Slide 15: Balance Sheet & Funding
BALANCE SHEET & FUNDING Increased balance sheet capacity. Group balance sheet: Consolidated balance sheet ($M) 31.12.17 30.06.17 • Investments (the aggregate of Investments in Associates Cash 65.5 63.5 and Intangible Assets and Goodwill) total $416.9m up $11.3m (30 June 2017: $405.6m), with increase
Slide 16: Dividends Per Share
DIVIDENDS PER SHARE • Interim dividend per share of 13.5 cents, fully franked. • DRP remains suspended for the interim dividend. 45 42.0 39.7 40.0 40 38.5 35.5 35 31.0 30 25.5 29.5 CENTS PER SHARE 25 26.5 27.7 28.0 22.5 20.5 24.5 20 18.0 21.5 15.0 17.0 15 13.0 15.0 13.5 11.5 10 9.5 8.0 12.0 12.0 12.
Slide 17: FY18 Priorities
FY18 PRIORITIES The Group will continue its disciplined focus, building on the strength of our Business Model; Operating Model and Group Strategy • Business Model: we will continue to maximize partnerships and our ‘skin in the game’ model to drive both organic growth and through attracting new equit
Slide 18: FY18 Priorities
FY18 PRIORITIES Continuing to drive execution of the Group’s ‘ecosystem’ Page 18 - AUB Group Ltd 1H18 Results
Slide 19: FY18 Outlook
FY18 OUTLOOK • We expect the benefits of the Group’s focus on risk solutions for clients will continue to support organic growth as clients continue to engage across a broader range of risk solutions and services. • Organic growth will continue to be supplemented by relevant acquisitions and startup
Slide 20: Appendices
APPENDICES
Slide 21: Appendix 1 – Adjusted NPAT
APPENDIX 1 – ADJUSTED NPAT 1 1H18 1H17 Var ianc e R EC ON C IL IATION OF AD JU STED N PAT TO R EPOR TED N PAT $ 000 $ 000 % Net Profit after tax attributable to equity holders of the parent 23,752 12,404 91.5% Reconciling items net of tax and non controlling interest adjustments for: Adjustments to
Slide 22: Appendix 2 – Management Results
APPENDIX 2 – MANAGEMENT RESULTS1 MAN AGEMEN T PR ESEN TATION OF R ESU L TS 1H18 1H17 Var ianc e Var ianc e $ 000 $ 000 $ % Australian Broking revenue 154,440 143,613 10,827 7.5% Australian Broking expenses (113,358) (106,086) (7,272) 6.9% EBIT - Aus tr alian Br ok ing 41,082 37,527 3,555 9.5% New Ze
Slide 23: Appendix 3 - Cashflow
APPENDIX 3 - CASHFLOW CONSOLIDATED CASHFLOW 1H18 1H17 $ 000 $ 000 Cash flows from operations 28,930 27,391 Cash flows from investing activities Acquisitions 1 (13,497) (2,673) Cash out flow from deconsolidation of controlled entity (4,413) - Sales proceeds / loan repayments 2,371 6,113 Plant equipme
Slide 24: Appendix 4 – Operating Segment Reconciliation
APPENDIX 4 – OPERATING SEGMENT RECONCILIATION RECONCILIATION OF OPERATING SEGMENTS Consolidated Consolidated 1H18 1H17 Insurance Risk Insurance Risk Total Total Intermediary Services Intermedia Services $000 $000 $000 $000 ry $000 $000 Profit before tax and after non-controlling interests from: Insu
Slide 25: Thank You
THANK YOU