Slide 1: 1H24 Results Investor Presentation
Steadfast Group 1H24 Results Investor Presentation 27 February 2024
Slide 2: Contents
Contents 1H24 Results Investor Presentation 03 1H24 Highlights 14 1H24 Financial Summary 22 Outlook 24 Appendices 2 Copyright © 2023
Slide 3: 1H24 Highlights
: - f a | } Y 1H24 Highlights
Slide 4: Continued strong track record since listing on ASX
Continued strong track record since listing on ASX Steadfast Group Steadfast Network GWP ($b) Steadfast Underwriting Agencies GWP ($b) Underlying EBITA ($m) 2.0 400 12 10 1.5 300 8 200 6 1.0 100 4 0.5 2 0 0.0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H24 0 1 FY14 FY15 FY16 FY17 FY18 FY19 FY
Slide 5: Increase in underlying EBITA of 21.4% and underlying NPAT of 17.5%
Steadfast Group Increase in underlying EBITA of 21.4% pcp and underlying NPAT of 17.5% Broker and underwriting agency growth • Steadfast broking’s aggregate underlying EBITA +23.1% (refer slide 9) Underlying earnings 1 (refer slide 15) • Underwriting agencies’ aggregate underlying EBITA +11.8% (refe
Slide 6: Trapped Capital acquisitions update
Steadfast Group On target to complete $280m of Trapped Capital acquisitions in FY24 Trapped Capital acquisitions update 1H24 Annualised Acquisition EBITA cost Sure Insurance acquisition (initial payment) $14.4m $148.8m $215m of Trapped 27 completed Trapped Capital acquisitions $18.5m $182.9m Capital
Slide 7: Steadfast's acquisition track record
Steadfast’s acquisition track record Steadfast has a proven track record of successfully completing earnings accretive acquisitions Steadfast’s FY24 guidance includes completing $280m of acquisitions, excluding Sure Insurance FY24 year to date Steadfast has completed $215m of acquisitions, inclu
Slide 8: Increasing Steadfast Group's share of growing Network GWP
Increasing Steadfast Group’s share of growing Network GWP Steadfast Network • Since IPO, Steadfast has successfully implemented the dual strategies of growing our Network as well as increasing equity stakes in the Network • Trapped Capital Project will continue to increase Steadfast’s equity holding
Slide 9: Steadfast broking
Steadfast broking Sustained growth and further Network acquisitions Financial highlights – 1H24 1H24 vs 1H23 • Steadfast Network GWP +14.3% to $6.3b is driven by 10.6% organic growth for the period: GWP of $6.3b vs $5.6b ꟷ Price increases by insurers across all non-statutory lines ꟷ Volume increase
Slide 10: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies Sustained growth driven by price and volume Financial highlights – 1H24 • Steadfast Underwriting Agencies GWP +8.5% to $1.1b 1H24 vs 1H23 ꟷ Driven by price and volume uplift ꟷ Property line pricing remains strong ꟷ Capacity constraints in certain lines GWP of $1.1b vs
Slide 11: 1H24 operating update
1H24 operating update Reinsurance market • The trend of higher retentions and significant rate increases by reinsurers was evidenced in the 1 January 2024 reinsurance renewal period, particularly in those areas requiring rectification due to poor loss ratios. • Approximately 10% of claims from the r
Slide 12: Our insurTech
Our insurTech $692m Continued broker take-up of our technology GWP transacted through SCTP in 1H24 platforms +23.8% 1H24 growth in GWP transacted through SCTP Steadfast Client Trading Platform (SCTP) • SCTP delivers strong client outcomes $1,304m GWP transacted through SCTP in rolling 12 months to 3
Slide 13: Interim dividend up 12.5%
Interim dividend up 12.5% Interim 1H24 dividend Underlying diluted EPS (NPAT) (cents per share) • Interim 1H24 dividend of 6.75 cps (fully franked), 20 up from 6.0 cps in 1H23, +12.5% 18 16 • Dividend Reinvestment Plan (DRP) to apply to interim 1H24 14 dividend 12 ꟷ The DRP will operate by the on-ma
Slide 14: 1H24 Financial Summary
1H24 Financial Summary 14
Slide 15: Group financial performance
Group financial performance Strong underlying earnings growth Underlying earnings 6 months to 31 December Underlying Underlying Period-on-period 1H241 1H231 growth % Revenue ($m) 790.4 662.8 19.3% EBITA ($m) 229.0 188.6 21.4% NPAT ($m) 106.0 90.2 17.5% Diluted EPS2 (NPAT) (cents) 10.2 9.1 12.2% NPAT
Slide 16: Reconciliation of underlying NPAT to statutory NPAT
Reconciliation of underlying NPAT to statutory NPAT 6 months to 31 December $ million 1H24 1H23 Underlying1 net profit after tax (NPAT) 106.0 90.2 Adjustments for non-trading items (net of tax and non-controlling interest): Deferred / contingent consideration expense (where actual earnout was more t
Slide 17: Drivers of 21.4% growth in underlying EBITA
Drivers of 21.4% growth in underlying EBITA Organic and acquisition growth Organic Growth:$25.3m /13.4% Acquisition Growth: $15.1m /8.0% 240.0 $14.1m / 7.5% $1.0m / 0.5% $40.4m / 21.4% 220.0 $24.7m / 13.1% $0.6m / 0.3% 200.0 180.0 $229.0m 160.0 $188.6m 140.0 120.0 1H23 EBITA Organic Growth Bolt-ons
Slide 18: Steadfast broking
Steadfast broking Organic and acquisition growth Equity brokers and network - consolidated & equity accounted (assuming 100% ownership) 6 months to 31 December Underlying Underlying Period-on-period Organic Growth from $ million 1H24 1H23 growth % growth % acquisitions % Net revenue 506.7 413.2 22.6
Slide 19: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies Organic growth driven by price and volume Steadfast Underwriting Agencies – consolidated & equity accounted (assuming 100% ownership) 6 months to 31 December Underlying Underlying Period-on-period Organic Growth from $ million 1H241 1H231 growth % growth % acquisition
Slide 20: Strong conversion of profits to cash
Strong conversion of profits to cash 1H24 cash flow statement Cash flow summary¹ $ million 1H24 2H23 1H23 Pre-tax cash flow from operating activities $213.7 $228.9 $194.9 > 100% conversion of underlying NPATA to cash in Less lease obligation payments ($10.9) ($9.4) ($9.1) CY23 Less tax ($91.5) ($49.
Slide 21: Conservatively geared balance sheet
Conservatively geared balance sheet Statutory balance sheet $ million 31 Dec 23 30 Jun 23 Corporate debt facility (excludes premium funding) increased and extended August 2023 as follows: Cash and cash equivalents 273 259 $ million Maturity Total Cash held on trust 975 879 Revolving Aug 2026 385 Pre
Slide 22: Outlook
Outlook 22
Slide 23: FY24 guidance
FY24 guidance Steadfast FY24 guidance Upgraded FY24 guidance range The guidance is subject to: ⁻ Insurers maintaining current premium rate increases Underlying EBITA $520m - $530m ⁻ Completion of a further $65.0m of Trapped Capital Underlying NPAT $240m - $250m acquisitions from the date of this r
Slide 24: Appendices
Appendices Steadfast Group (slide 25) Steadfast Network (slide 30) Steadfast Underwriting Agencies (slide 37) Our InsurTech (slide 39) 24 1H24 detailed financials (slide 43)
Slide 25: Steadfast Group
Steadfast Group 25
Slide 26: Business units focused on the intermediated general insurance market
Business units focused on the intermediated general insurance market Steadfast Group as at 31 December 2023 Steadfast Group (listed on ASX) Steadfast Network Steadfast Underwriting Agencies Complementary Businesses Steadfast International 425 general insurance brokers 30 underwriting agencies 9 busi
Slide 27: Size and scale
Size and scale Steadfast Group as at 31 December 2023 Largest general insurance broker network in Australasia Largest group of underwriting agencies in Australasia $12.4 b 425 $2.1 b 30 Annual GWP1 Steadfast Network brokers Underwriting agencies Annual GWP1 Steadfast Network collects professional se
Slide 28: Our market
Our market $37b of intermediated general insurance GWP written in FY23 Australian market – gross written premium1 Steadfast Group is focused on the intermediated $37b general insurance market, Intermediated market with a primary focus on SME Steadfast Network brokers FY23 $11.6b Intermediated Privat
Slide 29: Industry overview and market opportunity
Industry overview and market opportunity 1 2 Intermediated vs non-intermediated GWP ($b) Commercial gross claims ($b) 16.0 15.4 69.2 14.0 61.6 13.0 12.9 55.9 12.0 6.6 51.4 11.4 11.3 4.9% 48.4 45.4 45.7 4.6 43.9 4.8 42.2 1.8 0.8% 10.0 9.6 9.4 9.1 9.2 3.4 1.9 3.4% 8.0 3.0 1.6 7.3 3.8 2.8 1.5 3.6 1.5 1
Slide 30: Steadfast Network
Steadfast Network 30
Slide 31: Largest general insurance broker network in Australasia
Largest general insurance broker network in Australasia Steadfast Network Steadfast Network Strategy Steadfast Network $12.4b The Steadfast Network has 425 general Exclusive to Steadfast Network brokers Be the best solution for our clients’ needs insurance brokers in Australia, New Zealand Opera
Slide 32: Steadfast Network brokers have joined since IPO
Steadfast Network 326 brokers have joined the Steadfast Network since IPO Number of Steadfast Network brokers1 650 29 140 600 77 550 31 500 31 20 158 15 425 450 2 400 350 300 276 250 200 August New brokers Allied NZ Insight IBNA Singapore Merged Sold Leavers PSC (AU & December 2013 externally NZ) 20
Slide 33: Steadfast Network 2,377 broker offices
Steadfast Network 2,377 broker offices across Australia, Worldwide broker offices (excluding UnisonSteadfast) New Zealand, Asia, Europe and USA 1 United 53 Kingdom 445 Asia USA 12 398 Northern Territory 183 Queensland 107 Western Australia South Australia 497 New South Wales 22 129 Australian North
Slide 34: Australia – resilient SME client base
Steadfast Network Australia – resilient SME client base 1 GWP mix Diversified by product line Diversified by geography Diversified by insurer 1% 14% 25% 6% 15% 39% Business pack 17% QBE 16% Micro (Policy size <$650) VIC 35% Retail 11% Small Enterprise (Policy size $650 - $5,000) CGU 14% Commerical m
Slide 35: International footprint
International footprint Steadfast Network model replication 1. New Zealand • 66 brokers in the Network • Steadfast Underwriting Agencies building market presence utilising • NZ$795m of GWP in CY23 Network distribution • Strong buy-in from insurer partners • SCTP introduced 3 2. Asia Targeted Singa
Slide 36: UnisonSteadfast
International footprint UnisonSteadfast • Steadfast Group has an equity ownership stake of 60% in UnisonSteadfast ꟷ One of the world’s largest global general insurance broker networks, offering multi-jurisdictional coverage 600+ Referrals between the Steadfast ꟷ Supervisory board contains three Stea
Slide 37: Steadfast Underwriting Agencies
Steadfast Underwriting 37 Agencies
Slide 38: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies Steadfast underwriting agency offering that now spans across 30 agencies, providing over 100 niche products Solutions for novated Complete farm package Caravans, campervans, Commercial and Accident and health Residential and commercial lease, motor fleet and cabins, t
Slide 39: Our insurTech
Our insurTech 39
Slide 40: Steadfast Client Trading Platform – benefits for clients, brokers and insurers
Our insurTech Steadfast Client Trading Platform – benefits for clients, brokers and insurers Market-leading technology – exclusive to Steadfast Network brokers, clients and participating insurers Benefits for clients: ꟷ Genuine contestable marketplace generating improved pricing, competition and
Slide 41: Insurer and underwriting agency partners on the SCTP
41 Our insurTech Insurer and underwriting agency partners on the SCTP Allianz @ (cou) CHUBB Hollard. = veroW Business pack eee @zovricH Qiiatia Professional risks foley. GY — Procover vero) © Liability Bet ca cHUBS = AAmiramar Commercial ® } i y property &ISR cau) A miramar BE vero! @zvricu commerci
Slide 42: Steadfast Technologies
Our insurTech Steadfast Technologies Steadfast Client Trading Platform SCTP is a digital marketplace which provides Steadfast Network insurance brokers INSIGHT is an insurance broking platform with a powerful search engine which with access to a variety of insurance products based on a single agreed
Slide 43: 1H24 Detailed Financials
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Slide 44: 1H24 detailed financials
1H24 detailed financials Reconciliation of statutory to underlying earnings 6 months ended 31 December 2023 Total statutory Reclassifications Non-trading items Total underlying $ million Net fee and commissions income 549.7 111.1 0.3 661.1 Premium funding interest income 60.3 - - 60.3 Share of profi
Slide 45: 1H24 detailed financials
1H24 detailed financials Statement of underlying income 6 months ended 31 December 2023 Underlying Underlying Period-on-period Organic Acquisitions & $ million 1H24 1H23 growth % growth %2 hubbing growth %3 Fees and commissions1 661.1 573.5 15.3% 7.3% 8.0% Interest Income 23.8 8.6 177.3% 166.7% 10.6
Slide 46: Statement of income (underlying)
1H24 detailed financials Statement of income (underlying) Underlying Underlying Underlying Underlying Underlying Underlying $ million 1H24 2H23 1H23 2H22 1H22 2H21 Fees and commissions¹ 661.1 638.1 573.5 540.7 452.9 410.4 Interest Income 23.8 14.8 8.6 2.2 1.7 1.6 Other revenue 105.5 93.8 80.7 72.1 6
Slide 47: Statutory cash flow statement
1H24 detailed financials Statutory cash flow statement $ million 1H24 1H23 $17.8m free cash flow in 1H24 $ million Cash flows from operating activities Cash from operations1 213.7 Net cash from operating activities before customer 122.2 138.7 Less lease obligation payments (10.9) trust account and p
Slide 48: Australian General Insurance Statistics
1 Australian General Insurance Statistics Premiums and claims by class of business Houseowners/householders Domestic motor vehicle CTP motor vehicle Premiums and claims by class of business Year End Year End Year End Year End Year End Year End June 2022 June 2023 June 2022 June 2023 June 2022 June 2
Slide 49: Australian General Insurance Statistics
1 Australian General Insurance Statistics Premiums and claims by class of business Commercial motor vehicle Fire and ISR Public and product liability Professional indemnity Premiums and claims by class of business Year End Year End Year End Year End Year End Year End Year End Year End June 2022 June
Slide 50: Important notice
Important notice This presentation has been prepared by Steadfast Group Limited (“Steadfast”). This presentation contains information in summary form which is current as at 27 February 2024. This presentation is not a recommendation or advice in relation to Steadfast or any product or service offere
Slide 51: Questions
Questions 51
Slide 52: Steadfast
<> Steadfast THE STRENGTH YOU NEED