Australian Unity Ltd · ASX:AYUPA
Australian Unity — H1 2021 Earnings Presentation
29 slides from Australian Unity's earnings presentation, Feb 24, 2021
Slide 1: ASX Announcement
ASX Announcement 24 February 2021 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 2020. -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 2020
Slide 3: Investor presentation teleconference invitation
Australian Unity Limited is pleased Date 25 February 2021 to invite you to our investor presentation teleconference for the Time 9.30am to 10.30am AEDT half-year ended 31 December 2020 To access the teleconference participants must register in advance via the link below: https://apac.directeventreg.
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 Rohan Mead Darren Mann Chris Yates Melinda Honig Group Managing Director Group Executive—Finance & CEO—Retail General Counsel, Company & CEO Strategy and Chief Financial Officer Secretary, Chief Risk Officer and Group Execut
Slide 6: Overview and Group highlights
Overview and Group highlights AUL HY21 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 Our focus on employee wellbeing and safety is an important part of our risk management framework and key to our employee value proposition Continued to deliver key initiatives Safety under our Safer Me program aimed at maturing our safety culture; developing • Strong incident reporti
Slide 9: FY21 Strategic priorities
FY21 Strategic priorities Sustain momentum for Deliver health & Implement Herston human PHI strategy Quarter services Mobilise Generate cash portfolio Manage for earnings capability & financial seize safety opportunities AUL HY21 Investor presentation 8
Slide 10: HY21 Operational review
HY21 Operational review Advancing strategic ambitions • Further progressed strategy of building a commercially sustainable portfolio of businesses that provides member, customer and community value and supports personal and community wellbeing • Delivered a solid, positive first half result despite
Slide 11: HY21 Financial summary
HY21 Financial summary Key financial statistics 31/12/20 31/12/19 Variance Revenue and other income ($m) 823.8 764.9 58.9 Total expenses, excluding 770.9 731.1 (39.8) financing costs ($m) Profit after tax ($m) 6.7 8.4 (1.7) Operating earnings ($m) 13.9 18.5 (4.6) AUL HY21 Investor presentation 10
Slide 12: HY21 key metrics
HY21 key metrics Profit after income tax1 ($m) 60.0 51.5 53.0 50.0 46.8 40.0 30.0 20.0 15.0 6.6 10.0 8.4 6.7 0.0 FY2017 FY2018 FY2019 FY2020 HY21 Full Year First Half Year Second Half Year 1 Included in the FY2018 result was a profit from discontinued operations of $66.9m from the divestment of the
Slide 13: HY21 segment earnings growth
HY21 segment earnings growth Adjusted EBITDA1 ($m) HY20 HY21 45.0 38.9 40.0 35.0 32.1 32.5 29.1 30.0 25.0 20.0 18.2 15.0 9.8 10.0 5.0 0.0 Independent & Assisted Living Retail Wealth & Capital Markets 1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its business
Slide 14: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience 250 30 June 2020 maturity profile1 ($m) The group continued its ongoing debt and capital management strategy. Key 200 Orange indicates activities during HY21 included: issuances and 150 25 facilities refinanced/redeemed • an extension of the $25m cor
Slide 15: Gearing analysis and interest cover
Gearing analysis and interest cover Bond covenant gearing Interest cover ratio1 60% 1,000 10.0 900 9.0 50% 8.0 800 700 Debt Capacity ($m) 7.0 40% 600 6.0 Gearing Ratio 30% 500 5.0 400 4.0 20% 300 3.0 200 2.0 10% 100 1.0 0% 0 0.0 Debt Capacity to covenant limit ($m) (RHS) Bonds Gearing Ratio (LHS) In
Slide 16: Retail
Retail AUL HY21 Investor presentation 15
Slide 17: Retail
Retail • Multifaceted and ongoing support for customers impacted by COVID-19 • Extended PHI policy suspensions for customers facing hardship, Adjusted EBITDA ($m) including an automatic extension for customers on Job Keeper or Job Seeker HY20 HY21 • supported all of our PHI customers by deferring th
Slide 18: Retail highlights
Retail highlights Australian Unity Health Limited (Private health insurance) • Small decrease in policyholders, down 0.3% • Deferred Claims Liability* (DCL) increased to 171,460 $13.8m principally due to restrictions on elective surgery and ancillary services in • PHI policy sales up 32.6% and attri
Slide 19: Retail highlights: Australian Unity Bank
Retail highlights Australian Unity Bank Limited • ~25,900 customers, with total assets growing by $114.4m to $1.25b (30 June 2020: $1.13b) • Continued focus on delivering quality products and services, with emphasis on digital delivery • Expected Credit Loss provision on loans decreased by $0.5m to
Slide 20: Retail outlook
Retail outlook • Outlook remains cautiously positive, notwithstanding future uncertainties flowing from COVID-19 on healthcare and the economy • Anticipated most health insurance claims deferred due to restrictions on healthcare services during the pandemic will catch up and bank credit growth may s
Slide 21: Independent & Assisted Living (IAL)
Independent & Assisted Living (IAL) AUL HY21 Investor presentation 20
Slide 22: Independent & Assisted Living (IAL)
Independent & Assisted Living (IAL) • Improved operating model driving customer-centred continuum of care across the home care, residential care and Remedy Healthcare Adjusted EBITDA ($m) businesses HY20 HY21 • Total segment revenue increase of 0.4% to $252.1m compared to prior 32.1 29.1 correspondi
Slide 23: IAL highlights
IAL highlights Residential Remedy Home Care Services Communities Development Healthcare Dental • EBITDA gain of • Owns and operates 21 • Continued to progress • Increased revenue by • Six dental clinics $8.6m to $17.9m from retirement communities development pipeline 49.1% to $19.8m, driven operatin
Slide 24: IAL outlook
IAL outlook • Continue to orientate the business around the needs of customers and key stakeholders in their health and wellbeing—families, primary carers, communities and government agencies • Continue to pursue growth opportunities in: • Home Care Packages and allied services delivered by Remedy t
Slide 25: Wealth & Capital Markets
Wealth & Capital Markets AUL HY21 Investor presentation 24
Slide 26: Wealth & Capital Markets (W&CM)
Wealth & Capital Markets (W&CM) • 2.0% decrease in total segment revenue to $82.6m, reflecting impact of COVID-19 on business volumes Adjusted EBITDA ($m) HY20 HY21 • Adjusted EBITDA decreased by 46.0% to $9.8m, although after 18.2 adjusting for one-off costs during the period and one-off gains in t
Slide 27: W&CM highlights
W&CM highlights Property Life & Super Investments Advice Trustees • Assets under management • Funds under management • FUMA of $9.78b • Number of advisers • Established pipeline of increased to $3.98b (30 June and administration of $2.41b (30 June 2020: $8.22b), (including limited estates, trusts an
Slide 28: W&CM outlook
W&CM outlook • Period ahead should continue to provide opportunities to offer customers valuable investment opportunities and to deliver increased community and social value • Herston Quarter project will continue as a key focus as it develops Australian Unity's response to the nation’s social infra
Slide 29: Austiglian >]
Austiglian >] Real Wellbeing 180 YEARS