Australian Unity Ltd · ASX:AYUPA
Australian Unity — FY2020 Earnings Presentation
32 slides from Australian Unity's earnings presentation, Sep 9, 2020
Slide 1: ASX Announcement
ASX Announcement 9 September 2020 Australian Unity Limited – Full Year Investor Update Please find attached Australian Unity Limited’s Investor Update relating to the financial results for the full-year ended 30 June 2020. -end- This announcement has been authorised for distribution to the ASX by: M
Slide 2: Investor update
Australian Unity Limited Investor update Financial results for the full-year ended 30 June 2020
Slide 3: Investor presentation teleconference invitation
Australian Unity Limited is pleased to invite you to our investor Date Thursday 10 September 2020 presentation teleconference for the full-year ended 30 June 2020 Time 9.30am to 10.30am AEST To access the teleconference participants must register in advance via the link below: https://apac.directeve
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: Agenda and presenters
1. Overview and Group highlights 2. Business results 3. Summary and outlook Darren Mann Alex Smith Paul Ryan Belinda Seal Group Executive Finance & Adam Vise General Manager General Manager General Manager – Strategy and Chief Financial Group Treasurer Commercial, Finance & Commercial, Finance & Gro
Slide 6: Overview and Group highlights
Overview and Group highlights AUL FY20 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 260,000 members and more than 700,000 customers • Diversified but thematically-linked portfolio of health, wealth and care businesses that provides member, cus
Slide 8: People & safety
People & safety Safety is our key priority During FY20 we delivered key initiatives under our Safer Considerable resources committed to keeping customers and Me program, aimed at maturing our safety culture; employees safe during the COVID pandemic: proactively managing hazards, reducing injuries, s
Slide 9: FY20 Strategic priorities
FY20 Strategic priorities Private Health Realising the HDS Capability, Insurance sector and AHC innovation and reforms opportunity cost Working with government Orientating around the Enabling and leading and industry to influence needs of customers and the operational agility, and drive structural a
Slide 10: Sound progress in FY20, despite COVID-19 pandemic
Sound progress in FY20, despite COVID-19 pandemic • Further progressed strategy of building a commercially sustainable portfolio of businesses that provides member, customer and community value and support personal and community wellbeing Progressing strategic • Bonds issue contributed to maintenanc
Slide 11: FY20 key metrics
FY20 key metrics Profit after income tax1 ($m) 60.0 50.0 40.0 30.0 51.5 53.0 46.8 20.0 35.6 10.0 15.0 0.0 FY2016 FY2017 FY2018 FY2019 FY2020 1 Included in the FY2018 result was a profit from discontinued operations of $66.9m from the divestment of the Group’s corporate health insurance subsidiary, G
Slide 12: FY20 segment earnings growth
FY20 segment earnings growth Adjusted EBITDA ($m) 80.0 74.4 70.0 66.1 61.2 60.0 50.5 48.2 50.0 40.0 32.8 30.0 20.0 10.0 0.0 Independent & Assisted Living Retail Wealth & Capital Markets FY2019 FY2020 1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its business
Slide 13: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience 30 June 2019 Debt maturity profile1 ($m) 30 June 2020 Debt maturity profile1 ($m) 300 300 250 250 200 200 250 150 150 18.4 100 100 71.3 207.0 50 50 20.0 115.0 5.4 5.1 20.0 37.6 0 18.0 0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2020 F
Slide 14: Gearing analysis and interest cover
Gearing analysis and interest cover Interest cover ratio1 Bond covenant gearing 8.0 60% 600.0 7.0 50% 500.0 6.0 Debt Capacity ($m) 40% 400.0 5.0 Gearing Ratio 4.0 30% 300.0 3.0 20% 200.0 2.0 10% 100.0 1.0 0.0 0% 0.0 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19
Slide 15: Independent & Assisted Living
Independent & Assisted Living AUL FY20 investor presentation 14
Slide 16: Focus on sustainable growth
Focus on sustainable growth • Improved operating model driving customer-centred continuum of Independent & Assisted Living care across the home care, residential care and Remedy Healthcare businesses Adjusted EBITDA ($m) • Total segment revenue increase of 5.8% to $496.4m—despite FY2019 FY2020 disru
Slide 17: IAL highlights
IAL highlights Residential Remedy Home Care Services Communities Development Healthcare Dental • EBITDA gain of • Owns and operates 21 • Continued focus on • Increased revenue by • Six dental clinics $13.0m from change in retirement communities development pipeline of 9.7% to $28.4m, driven by opera
Slide 18: Home Care Services
Home Care Services Adjusted EBITDA 40.0 27.5 Financial improvement continues 30.0 20.0 14.5 10.0 $m • Profitability (Adjusted EBITDA) has improved ~ $63.6m over the past four financial years 0.0 FY17 FY18 FY19 FY20 (10.0) • Driven by a wide range of initiatives focusing on revenue (20.0) optimisatio
Slide 19: Residential Communities
Residential Communities Impact of COVID-19 on Aged Care and Residential Communities • Customer demand for our retirement communities continues, despite restrictions imposed by COVID-19. More than $130m of retirement villages sales occurred during FY20, which included: • ~$100m of re-sales in FY20, w
Slide 20: IAL outlook
IAL outlook • Well positioned to continue to deliver essential services to customers—despite ongoing challenges of COVID-19 • Plan to continue grow strongly in Home Care Packages and community-based health care services—and trade-up recently opened residential communities and progress existing devel
Slide 21: Retail
Retail AUL FY20 investor presentation 20
Slide 22: Challenging year amidst mixed operating conditions
Challenging year amidst mixed operating conditions • Adjusted EBITDA down $13.2m, or 17.7%, driven principally by Retail growth in private health insurance claims expenses exceeding revenue growth. Revenue impacted by decrease in policies and postponement of April 2020 premium increase. Higher claim
Slide 23: Retail highlights
Retail highlights Health insurance Banking • 5% decrease in policyholders reflected ongoing • Approximately 24,500 customers, with total affordability challenges, COVID-19 effects on assets growing by $247.9m to $1.13b value proposition, emerging economic uncertainty • $299.1m in new loans and stron
Slide 24: Retail outlook
Retail outlook • Outlook remains cautiously positive, but short term will be influenced by duration and severity of COVID-19 and its flow-on effects • Retail platform well-positioned to deliver strategy in medium term by building on strength in its businesses and continuing to adapt to changing mark
Slide 25: Wealth & Capital Markets
Wealth & Capital Markets AUL FY20 investor presentation 24
Slide 26: Positioned for growth
Positioned for growth • 5.8% decrease in total segment revenue ($170.5m), but growth Wealth & Capital Markets across most business segments after adjustments for one-off legal settlements in prior period Adjusted EBITDA ($m) • 35.0% decrease in adjusted EBITDA of $32.8m (also affected by FY2019 FY20
Slide 27: Wealth & Capital Markets highlights
Wealth & Capital Markets highlights Property Life & Super Investments Advice Trustees • Assets under management • Assets under management • FUMA of $8.22b • Number of advisers • 25.8% increase in revenue increased to $3.52b (2019: and administration of $2.27b (2019: $7.12 b), with decreased to 176 (
Slide 28: Herston Quarter Health Precinct case study
Key strategic project case study Herston Quarter Health Precinct—a $1.1bn social infrastructure development 2 hospitals 3 commercial carparks Better Together® Heritage buildings (one public, one private) HPT Strategic partners $2.1bn Healthcare 16 structured car parks Retirement living and Delivered
Slide 29: W&CM outlook
W&CM outlook • Period ahead should continue to provide opportunities for platform to offer customers valuable investment and financial opportunities, and to deliver increased community and social value • Herston Quarter project will continue as a key focus as it transforms Australian Unity's respons
Slide 30: ESG – "S" = wellbeing
ESG – “S” = wellbeing Australian Unity Wellbeing Index • We’ve been measuring the wellbeing of Community & Social Value Framework Australians with Deakin University since 2000 Individuals and communities have more • Known as the Australian Unity Wellbeing Index, choice and control over the care they
Slide 31: FY21 Strategic priorities
FY21 Strategic priorities Implement Sustain Deliver PHI strategy momentum Herston for health & Quarter human services Manage for Mobilise Generate portfolio financial cash capability & safety earnings seize opportunities AUL FY20 investor presentation 30
Slide 32: O Australian
1 8 O Australian 7 YEARS Real Wellbeing