Australian Unity Ltd · ASX:AYUPA
Australian Unity — H1 FY2020 Earnings Presentation
27 slides from Australian Unity's earnings presentation, Feb 26, 2020
Slide 1: ASX Announcement
ASX Announcement 26 February 2020 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 2019. -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 2019
Slide 3: Investor presentation teleconference invitation
Australian Unity Limited is pleased to invite you to our investor Date 27 February 2020 presentation teleconference for the half-year ended 31 December 2019 Time 9.30am to 10.30am AEDST 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: Overview and Group highlights, Business results, Summary and outlook
1. Overview and Group highlights 2. Business results 3. Summary and outlook Esther Kerr-Smith Darren Mann Alex Smith Paul Ryan Group Executive, Deputy Head of Finance & General Manager Commercial, General Manager Commercial, Finance & Strategy Chief Financial Officer Finance & Strategy - IAL Finance
Slide 6: Overview and Group highlights
Overview and Group highlights 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 about 270,000 members and more than 700,000 customers • Diversified but thematically-linked portfolio of health, wealth and living businesses that provides mem
Slide 8: Strategic priorities
Strategic priorities FY20 and beyond 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 d
Slide 9: Sound progress in FY20 first half
Sound progress in FY20 first half • 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 • Improvements in Home Care Services and work on patie
Slide 10: FY20 key metrics
FY20 key metrics Profit after income tax1 ($m) Half Year 60 51.5 53.0 50 46.8 40 35.6 39.7 30 20 10 13.3 8.4 0 FY2016 FY2017 FY2018 FY2019 HY20 1 Included in the FY2018 result was a profit from discontinued operations of $66.9 million from the divestment of the Group’s corporate health insurance sub
Slide 11: HY20 segment earnings growth
HY20 segment earnings growth Adjusted EBITDA1 ($m) HY19 HY20 45.0 40.4 40.0 35.0 32.5 29.1 30.0 25.0 20.1 20.0 18.2 15.0 9.3 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 12: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience Change in debt maturity profile1 ($m) 300.0 20.0 • Continued to prioritise financial balance sheet 250.0 18.0 flexibility and resilience. 30 June 2019 200.0 • Successfully raised $322 million in Australian Unity 150.0 250.0 Bonds–Series C & D and $18
Slide 13: Gearing analysis and interest cover
Gearing analysis and interest cover Interest cover ratio Covenant gearing ratio 8.0 60% 600.0 7.0 50% 500.0 Debt Capacity ($m) 6.0 40% 400.0 5.0 Gearing Ratio 4.0 30% 300.0 3.0 20% 200.0 2.0 1.0 10% 100.0 0.0 Jun 16 Jun 17 Jun 18 Jun 19 Dec 19 0% 0.0 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19
Slide 14: Independent & Assisted Living
Independent & Assisted Living 13
Slide 15: Investment for sustainable growth
Investment for sustainable growth • Improved operating model to drive customer-centred continuum of Independent & Assisted Living care across the home care, residential care and Remedy Healthcare businesses Adjusted EBITDA ($m) • Pursued opportunities to further develop Integrated Care Model HY19 HY
Slide 16: IAL highlights
IAL highlights* Home Care Residential Remedy Services Communities Development Healthcare Dental • EBITDA gain of • Owns and operates 20 • Continued to focus on its • Further extended allied $13.6 million achieved retirement communities development pipeline of health ‘continuum of care’ • Six dental
Slide 17: IAL outlook
IAL outlook • Orientating around needs of customers and the key stakeholders in their health and wellbeing–families, primary carers, communities and government agencies • Continue resizing disability business footprint, while growing Home Care Package business • Expand the allied health service offe
Slide 18: Retail
180 "ney >> YEARS Real Wellbeing Retail
Slide 19: Challenging half-year amidst mixed operating conditions
Challenging half-year amidst mixed operating conditions • Adjusted EBITDA down by $7.9 million or 19.4 percent to Retail $32.5 million compared to the prior corresponding period-driven by higher health insurance claims expenses principally due to an under Adjusted EBITDA ($m) estimation of claims in
Slide 20: Retail highlights
Retail highlights* Health insurance Banking • 2.6% decrease in policyholders reflected declining • More than 24,400 customers, with total assets industry growth, strategy to limit distribution growth of $125.0 million to $1.01 billion through unprofitable channels, and further (30 June 2019: $886.0
Slide 21: Retail outlook
Retail outlook • Cautiously positive, notwithstanding headwinds facing a private health insurance sector given the increasingly self-evident need for effective reform • Political environment and desire of major political parties for lower premiums will require significant consideration and response
Slide 22: Wealth & Capital Markets
18 O Aust YEARS ralian Unity 21
Slide 23: Building sustainable growth
Building sustainable growth • 4.7 percent decrease in total segment revenue to $84.2 million Wealth & Capital Markets (31 December 2018: $88.4 million) Adjusted EBITDA ($m) • Adjusted EBITDA decreased to $18.2 million. After adjusting for HY19 HY20 prior corresponding period one-off revenue and rela
Slide 24: Wealth & Capital Markets highlights
Wealth & Capital Markets highlights* Property Life & super Investments Advice Trustees • Assets under management • Assets under management and • Funds under management • Increase in adviser • Funds under management (including completed administration of $2.39 billion (FUM) of $6.59 billion numbers (
Slide 25: W&CM outlook
W&CM outlook • Opportunities ahead to offer customers valuable investment and financial opportunities, and to deliver important benefits to many areas of the community • Herston Quarter project will continue as a key focus, unfolding as a unique response to Australia's social infrastructure challeng
Slide 26: ESG – Focusing on S = Wellbeing
ESG – Focusing on S = Wellbeing 20-year study partnered with Deakin University • Measures the level of satisfaction across seven aspects of personal life (domains of wellbeing) • Since 2002, 35 cross sectional surveys of over Economic Lifelong Strong communities 50,000 Australians have empowerment w
Slide 27: Austiglian >]
Austiglian >] Real Wellbeing 180 YEARS