Australian Unity Ltd · ASX:AYUPA
Australian Unity — Debt Investor Presentation (October 2023)
30 slides from Australian Unity's debt investor presentation, Oct 30, 2023
Slide 1: ASX Announcement
ASX Announcement 30 October 2023 Australian Unity Bonds Series E Investor Presentation Australian Unity Limited today announced an offer of a new series of simple corporate bonds: Australian Unity Bonds Series E – Tranche 1 (the Offer). A copy of the Australian Unity Bonds Series E Investor Presenta
Slide 2: Investor presentation
Australian Unity Limited Investor presentation Offer of Australian Unity Bonds Series E – Tranche 1
Slide 3: Important notice and disclaimer
Important notice and disclaimer • The information contained in this presentation (“Information”) has been prepared by Australian Unity Limited ABN 23 087 648 888 (“Company” or “Australian Unity”) in connection with a proposed offer of Australian Unity Bonds – Series E (“Offer” and “Bonds”). The Offe
Slide 4: Table of contents
Table of contents Section 1 Overview of the Offer 4 Section 2 Overview of Australian Unity 8 Section 3 Key risks 15 Section 4 Offer information 18 Appendices 22 Australian Unity has made a Target Market Determination (“TMD”) for the Bonds as required under s994B of the Corporations Act. The TMD desc
Slide 5: Section 1 Overview of the Offer
Section 1 Overview of the Offer Investor presentation – Offer of Australian Unity Bonds Series E – Tranche 1 4
Slide 6: Overview of the Offer
Overview of the Offer1 Issuer • Australian Unity Limited ABN 23 087 648 888 (“Australian Unity”) Securities • Australian Unity Bonds Series E – Tranche 1 which are interest paying, unsubordinated and unsecured debt securities (“Bonds”) • The Bonds are being offered under the simple corporate bonds r
Slide 7: Overview of the Offer
Overview of the Offer Interest Rate • Floating Interest Rate • The Interest Rate is the sum of the Market Rate plus the Margin Margin • The Margin is expected to be in the range of 2.50 percent to 2.70 percent per annum • The Margin will be determined by Australian Unity following the completion of
Slide 8: Ranking of Bonds and other debt on issue
Ranking of Bonds and other debt on issue Existing debt obligations and equity and amounts drawn as at 30 June 2023, Type of instrument adjusted for the amount to be raised under the Offer ($180m)2 Higher ranking Secured debt Employee entitlements – None3 Bank debt AYUHC AYUHD Bonds, if issued Unsubo
Slide 9: Section 2 Overview of Australian Unity
Section 2 Overview of Australian Unity Investor presentation – Offer of Australian Unity Bonds Series E – Tranche 1 8
Slide 10: Overview of Australian Unity
Overview of Australian Unity Mutual wellbeing company with a commitment to members, customers and community • Established in 1840, a member-owned company with more than 370,000 members and some 7,500 employees • Diversified but thematically-linked portfolio of health, wealth and care businesses that
Slide 11: Australian Unity Group portfolio
Australian Unity Group portfolio Diversified portfolio of thematically-linked businesses, segmented into four business platforms Retail Wealth & Capital Markets Home Health Specialist Care • Health insurance • Social infrastructure • Delivery of clinical and • Residential aged care • Banking • Funds
Slide 12: FY2023 priorities
FY2023 priorities Realise the value of the social enterprise Build social infrastructure reach Create the building blocks to form deeper Continuing to realise and extend our relationships with members, based on presence within the social improving wellbeing outcomes and superior infrastructure realm
Slide 13: Community & social value FY23
Community & social value FY23 St ro n ss g $317m ne $1.76b in total community and social value for FY23 co ell Supporting living m gw in place mu lon nit FY23 FY22 Priority outcomes ies Life ($m) ($m) Better access to healthcare 802 699 $802m $223m Better access $540m Improved health outcomes 180 22
Slide 14: Relevant financial ratios
Relevant financial ratios • The table below sets out certain key financial ratios that Australian Unity considers relevant to its financial position. These ratios differ to those described in regulation 6D.2.06 of the Corporations Regulations1 Financial ratio1 FY21 FY22 FY23 Gearing Ratio Debt Coven
Slide 15: Existing debt facilities and debt maturity profile
Existing debt facilities and debt maturity profile The first chart below sets out the maturity profile of Australian Unity and its Subsidiary external debt facility drawings, including capital markets debt, as at 30 June 2023. The second chart below shows the adjusted debt maturity profile of Austra
Slide 16: Section 3 Key risks
Section 3 Key risks Investor presentation – Offer of Australian Unity Bonds Series E – Tranche 1 15
Slide 17: Key risks
Key risks A detailed outline of risks relating to the Bonds and the Australian Unity Group’s business is contained in Section 4 of the Base Prospectus and Section 3 of the Offer Specific Prospectus. All potential investors should read both the Base Prospectus and the Offer Specific Prospectus in ful
Slide 18: Key risks (cont.)
Key risks (cont.) A summary of certain key risks associated with the Australian Unity Group’s business is set out as follows. Availability of a skilled and • Australian Unity is reliant on its valued employees and the skills and experience they possess to effectively service its members and experien
Slide 19: Section 4 Offer information
Section 4 Offer information Investor presentation – Offer of Australian Unity Bonds Series E – Tranche 1 18
Slide 20: Offer structure
Offer structure • Offer available to Eligible AYUHC Holders • You are an Eligible AYUHC Holder if you: o were a registered holder of AYUHC as at 7pm (AEST) on 25 October 2023; o are a Wholesale Investor, or a Retail Investor (as defined in the Offer Documents) and you are in the Target Market; Reinv
Slide 21: Key dates for the Offer and Bonds
Key dates for the Offer and Bonds Key dates for the Offer Record date for determining Eligible Members for the Priority Offer 20 September 2023 Record date for determining Eligible AYUHC Holders (7:00pm AEST) for the Reinvestment Offer 25 October 2023 Record date for determining Eligible Securityhol
Slide 22: Key contacts
Key contacts Name Title Phone Email Australian Unity Limited Group Executive Finance & Strategy and Chief Darren Mann +61 3 8682 6039 dmann@australianunity.com.au Financial Officer General Manager Strategy & Impact and Group Adam Vise +61 3 8682 6821 avise@australianunity.com.au Treasurer Acacia Par
Slide 23: Appendices
Appendices Investor presentation – Offer of Australian Unity Bonds Series E – Tranche 1 22
Slide 24: Appendix A. Key terms and conditions
Appendix A. Key terms and conditions1 Issuer • Australian Unity Limited ABN 23 087 648 888 (“Australian Unity”) Series / Tranche • Australian Unity Bonds Series E – Tranche 1 Bonds • Interest paying, unsubordinated and unsecured debt obligations, issued by Australian Unity • Each Bond is issued on a
Slide 25: Appendix A. Key terms and conditions (cont.)
Appendix A. Key terms and conditions (cont.) Credit Rating and Product • Bonds have been assigned a BBB+ long-term Credit Rating by Australia Ratings, although Australian Unity itself is Complexity Indicator not rated by Australia Ratings. Australia Ratings has also assigned a ‘Green’ Product Comple
Slide 26: Appendix A. Key terms and conditions (cont.)
Appendix A. Key terms and conditions (cont.) Restrictions on • While any Bonds remain outstanding, Australian Unity will ensure that no Subsidiary of Australian Unity incurs Financial Indebtedness (other than in certain Subsidiary Indebtedness circumstances set out below) • “Financial Indebtedness”
Slide 27: Appendix A. Key terms and conditions (cont.)
Appendix A. Key terms and conditions (cont.) Ranking on winding-up • A Holder’s claim will rank equally with holders of other Series of Bonds, and equally with claims of all other unsubordinated and unsecured creditors (other than any obligations preferred by mandatory provisions of applicable law,
Slide 28: Appendix B. Comparison of AYUHC and the Bonds
Appendix B. Comparison of AYUHC and the Bonds1 Feature AYUHC2 Bonds Issuer • Australian Unity Limited • Australian Unity Limited Guarantor • None • None Legal form • Unsecured debt obligations • Unsecured debt obligations Issue Price • $100 per AYUHC • $100 per Bond Term • 5 years • Approximately 5
Slide 29: Appendix B. Comparison of AYUHC and Bonds (cont.)
Appendix B. Comparison of AYUHC and Bonds (cont.)1 Feature AYUHC2 Bonds Gearing covenant • 50% • 50% Negative pledge • Yes (but it only applies to similar capital markets • Yes (but it only applies to similar capital markets indebtedness indebtedness and indebtedness under syndicated and indebtednes
Slide 30: Real Wellbeing
Australian] Real Wellbeing
Australian Unity — Debt Investor Presentation (October 2023) on 6ix