Australian Unity Ltd · ASX:AYUPA
Australian Unity — FY2023 Earnings Presentation
40 slides from Australian Unity's earnings presentation, Aug 31, 2023
Slide 1: Investor update
Australian Unity Limited Investor update Financial results for the full-year ended 30 June 2023
Slide 2: Invitation to investor presentation teleconference
Australian Unity Limited is pleased to invite Date Thursday 31 August 2023 you to our investor presentation teleconference for the full-year ended 30 June 2023 Time 9:30am to 10:30am AEST To access the teleconference participants must register in advance via the link below: https://registrations.eve
Slide 3: Important information
Important information This notice relates to all information provided as a part of this presentation To the maximum extent permitted by law, AUL, its related bodies corporate including, without limitation, these slides, associated presentations and and each of its respective officers, directors, emp
Slide 4: Acknowledgement of Traditional Owners
Australian Unity acknowledges the Traditional Owners of the lands and waters within Australia and recognises the important connection to Country that Aboriginal and Torres Strait Islander peoples have. AUL FY2023 Investor presentation 4
Slide 5: Agenda and presenters
Agenda and presenters 1. Overview and Group highlights 2. Business results 3. Summary and outlook Rohan Mead Prue Bowden Darren Mann Group Managing Director and CEO Chief Executive Officer – Home Health Group Executive Finance & Strategy and Chief Financial Officer AUL FY2023 Investor presentation 5
Slide 6: Overview and Group highlights
Overview and Group highlights AUL FY2023 Investor presentation 6
Slide 7: 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 more than 7,500 employees • Diversified but thematically-linked portfolio of health, wealth and care businesses
Slide 8: FY2023 operational review
FY2023 operational review Advancing strategic ambitions • Further progressed strategy of building a commercially sustainable portfolio of businesses with the reshaping of the Independent & Assisted Living platform into two new areas, Home Health and Specialist Care • Profit after tax was $56.8m (202
Slide 9: FY2023 operational review cont.
FY2023 operational review cont. Market impacts • Markedly different operating environment compared to the prior year, following the unwinding of most of the COVID-19 pandemic restrictions • Economy, businesses and communities faced the post-pandemic impact of significant investment market disruption
Slide 10: 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 11: Community & Social Value Framework
Community & Social Value Framework A research based approach to Expert methodology Robust framework How we use the CSV wellbeing advisor and governance framework • We were Australia’s first member- • A best in class partnership with • Our framework focuses on • Our framework is mandated and owned we
Slide 12: Community & social value FY23
Community & social value FY23 $1.76b in total community and social value for FY23 $317m Supporting living in place FY23 FY22 Priority outcomes ($m) ($m) Better access to healthcare 802 699 $802m $223m Better access $540m Improved health outcomes 180 221 to healthcare Leading social innovation $982m
Slide 13: Community & social value – value bridge ($m)
Community & social value – value bridge ($m) Increase Increase Decrease Decrease FY22 CSV Driven by AU outcomes Due to revision of outcomes Due to revision of Due to revision of FY23 CSV and inflation and methodology financial proxies discount rates % change +13.2% +10.9% (16.1%) (0.4%) +7.6% Note:
Slide 14: Community & social value by platform ($m)
Community & social value by platform ($m) 800 Notes: • Decrease in Home Health driven by 700 revision of methodology and financial proxies (~$114m decrease) • Retail uplift driven by PHI deep dive 600 (~$200m) • WCM uplift driven by increased investment into social infrastructure 500 across Property
Slide 15: FY2023 financial summary
FY2023 financial summary Key financial statistics FY2023 FY2022 Change Revenue and other income ($m) 1,858.2 1,361.3 496.9 Corporate entity income ($m) 1,597.2 1,533.1 64.1 Investment earnings ($m) 60.2 10.0 50.2 Benefit funds income ($m) 200.8 (181.8) 382.6 Total expenses, excluding financing costs
Slide 16: FY2023 key metrics
FY2023 key metrics Profit after income tax ($m) 60 50 40 30 56.8 50.3 45.7 20 32.9 10 9.1 0 1 1 FY2019 FY2020 FY2021 FY2022 FY2023 1 The FY2023 year included a $17.8m pre-tax profit on the disposal of the Group’s dental activities while the prior year included $39.4m of before tax business combinati
Slide 17: FY2023 segment earnings
FY2023 segment earnings Adjusted EBITDA1 2 ($m) 140.0 130.6 120.0 100.0 94.9 80.0 65.6 56.9 60.0 45.4 38.7 40.0 33.1 20.0 15.5 0.0 Home Health Retail Specialist Care Wealth & Capital Markets FY2022 FY2023 1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its bus
Slide 18: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience 1 1 30 June 2023 ($m) 400 30 June 2022 ($m) Series D AUL Bonds 400 350 Mutual Capital Instruments 350 Repaid Revolving Loan 300 300 Undrawn Revolving Loan 250 250 Other external loans 200 200 16 Repaid Development Loan 350 350 150 17 6 19 Undrawn Dev
Slide 19: Gearing analysis and interest cover
Gearing analysis and interest cover Covenant gearing ratio Interest cover ratio1 8.00 60.00% 900 7.00 800 50.00% 6.00 Debt Capacity ($m) 700 40.00% 600 5.00 Gearing Ratio 500 4.00 30.00% 400 3.00 20.00% 300 2.00 200 10.00% 100 1.00 0.00% 0 - Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 De
Slide 20: Home Health
Home Health AUL FY2023 Investor presentation 20
Slide 21: Home Health
Home Health • Provides a range of home and clinical care services across both community and virtual Adjusted EBITDA settings—designed to meet the ongoing health and wellbeing needs of our customers and ($m) support them to live in their preferred setting for longer FY2022 FY2023 • Solid financial ga
Slide 22: Societal needs leading Home Health transformation
Societal needs leading Home Health transformation AUL FY2023 Investor presentation 22
Slide 23: Foundations of Home Health
Foundations of Home Health Brains of a large-scale logistics company Heart of a quality healthcare company AUL FY2023 Investor presentation 23
Slide 24: Home Health highlights
Home Health highlights • Home Health saw more than 178 million safe minutes of care delivered to our customers by 3,259 healthcare workers across community and virtual care services • Despite the shortage of front line workforce experienced across the care sector, Home Health achieved healthcare emp
Slide 25: Home Health outlook
Home Health outlook • Remains focused on becoming an integrated healthcare company delivering services across community and virtual settings • Continues to leverage the competitive advantage of being a full service provider with the ability to deliver care across clinical and non clinical services,
Slide 26: Retail
Retail AUL FY2023 Investor presentation 26
Slide 27: Retail
Retail • Brings together private health insurance and the banking businesses and seeks to provide packages Adjusted EBITDA ($m) and solutions that contribute to solving affordability challenges and meet the contemporary needs of FY2022 FY2023 Australians 130.6 94.9 • Delivered a strong result for th
Slide 28: Retail highlights
Retail highlights Australian Unity Health Limited Australian Unity Bank Limited Private health insurance (PHI) • PHI policyholders decreased by 3.6% to • The PHI Deferred Claims Liability1 relating to • Approximately 26,000 customers, with total assets growing by $58.2m to 162,294 (2022: 168,317) cl
Slide 29: Retail outlook
Retail outlook • Cautiously positive outlook, notwithstanding the continued uncertainties flowing from COVID-19 • Anticipated that PHI claims will return to close to normal levels and bank credit growth is likely to be impacted over the coming year due to macro economic factors such as increased inf
Slide 30: Specialist Care
Specialist Care AUL FY2023 Investor presentation 30
Slide 31: Specialist Care
Specialist Care • Provides retirement living and aged care. Also provided disability services for the first half of the Adjusted EBITDA 1 financial year and direct health services through dental clinics until the end of the financial year ($m) • Total segment revenue of $255.5m, representing an incr
Slide 32: Specialist Care highlights
Specialist Care highlights Residential Communities Dental Development • Opened the Walmsley Residential Aged Care Facility in • Operated five dental clinics, located in Melbourne CBD • Working closely with the Wealth & Capital Markets Kilsyth, Victoria and The Alba in South Melbourne, (Spring Street
Slide 33: Specialist Care outlook
Specialist Care outlook • Following the divestment of the Disability Services and Dental businesses during the 2023 financial year and the transition of the Retirement Communities operations to the W&CM platform effective from 1 July 2023, the focus of the Specialist Care platform in the year ahead
Slide 34: Wealth & Capital Markets
Wealth & Capital Markets AUL FY2023 Investor presentation 34
Slide 35: Wealth & Capital Markets (W&CM)
Wealth & Capital Markets (W&CM) • Comprises funds management, social infrastructure, life & super, advice and trustee services 1 Adjusted EBITDA ($m) • Recorded a modest increase in total segment revenue compared to PCP, reflecting improvement in funds FY2022 FY2023 under management 38.7 • Adjusted
Slide 36: W&CM highlights
W&CM highlights Funds Management Social infrastructure Life & Super Advice Trustees • Funds under management and advice • Assets under management were $407.0m • FUMA of $2.44b (2022: $2.30b) • Contributed to Federal government’s • Growth in FUM of 17.1% to (FUMA) of $14.73b (2022: $9.90b) largely (2
Slide 37: W&CM highlights subsequent to end of FY2023
W&CM highlights subsequent to end of FY2023 • On 7 July 2023, Australian Unity Property Limited (AUPL), a wholly owned subsidiary of the Company and the responsible entity of Australian Unity Diversified Property Fund (AUDPF), announced it had entered into a Merger Implementation Deed with Cromwell
Slide 38: W&CM outlook
W&CM outlook • Continues to seek to deliver differentiated products and services designed to support and improve the financial wellbeing and economic empowerment of customers, addressing an important community need • From 1 July 2023 the retirement villages business will be supported by W&CM’s Socia
Slide 39: 10-year growth strategy
10-year growth strategy Growth areas Realise the value Accelerate Build social of the social momentum in infrastructure enterprise health & human reach services AUL FY2023 Investor presentation 39 39 39
Slide 40: Real Wellbeing
Australian] Real Wellbeing