Slide 1: 1H25 Investor Presentation
1H25 Investor Presentation 25 February 2025 Mike Emmett CEO and Managing Director Mark Shanahan CFO
Slide 2: 1H25 Key Highlights
1H25 KEY HIGHLIGHTS Sustained strong growth through-the-cycle with Group revenue +12.1% and UNPAT +13.0% AUSTRALIAN BIZCOVER AGENCIES NEW ZEALAND 13.0% UNPAT growth BROKING ▪ Double-digit revenue ▪ Strong top line growth of ▪ Outstanding revenue ▪ Strong revenue growth of growth of 10.1%, margin 16.
Slide 3: 1H25 Results Overview
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Slide 4: 1H25 Financial Highlights
1H25 FINANCIAL HIGHLIGHTS Revenue growth coupled with margin expansion has increased profits for AUB shareholders 1H25 1H24 Performance Highlights Revenue1 $712.6mn $635.7mn ▪ Revenue grew strongly across most parts of the business (+12.1%) ▪ Continued progress toward EBIT margin targets in most div
Slide 5: 1H25 Financial Performance
1H25 FINANCIAL PERFORMANCE Underlying NPAT grew by 13.0% from robust organic growth of 9.3% and 15.0% from acquisitions 1H24 to 1H25 Underlying NPAT1 Breakdown AUD mn 13.0% 2.5 3.5% 6.3 79.3 10.5 (9.0%) 15.0% 70.2 6.5 4.1 Includes: Pac Indemnity (acq Jul’24) Momentum (acq Aug’24) (5.8%) 9.3% Movo Gr
Slide 6: Divisional Performance
Divisional Performance
Slide 7: 1H25 Divisional Performance
1H25 DIVISIONAL PERFORMANCE Strong Revenue and underlying Profit growth across most Divisions with outstanding performances in BizCover and Agencies Vs. 1H24 comparative AUSTRALIAN INTERNATIONAL BIZCOVER AGENCIES NEW ZEALAND period BROKING NORMALISED3,4 $302.6mn $50.2mn $106.6mn $48.5mn $204.2mn Rev
Slide 8: Australian Broking
AUSTRALIAN BROKING Continued strong revenue growth of 10.1% and continued margin expansion to 37.6% EBIT Margin Key Metrics AUD 302.6mn Revenue1 37.6% EBIT Margin1 AUD 113.9mn EBIT1 Target 1H25 Performance +10.1% on 1H24 +70bps on 1H24 +12.2% on 1H24 40% Australian Broking Revenue1,2: 1H21-1H25 (AUD
Slide 9: BizCover
BIZCOVER Strong operational execution with accelerating top-line growth and improving margins in all territories EBIT Margin Key Metrics AUD 50.2mn Revenue 43.3% EBIT Margin AUD 21.7mn EBIT Target 1H25 Performance +16.5% on 1H24 +360bps on 1H24 +26.8% on 1H24 50% EBIT Australia (AUD mn)1 Australian
Slide 10: Agencies
AGENCIES Excellent revenue growth of 26.1% and margin expansion to 40.4% EBIT Margin Key Metrics AUD 106.6mn Revenue1 40.4% EBIT Margin1 AUD 43.1mn EBIT1 Target 37.7% EBIT Margin Ex. Profit Comms 1H25 Performance +26.1% on 1H24 +10bps on 1H24 +26.3% on 1H24 45% 40% + 5% from Profit Commissions Reven
Slide 11: New Zealand
NEW ZEALAND Strong revenue growth of 18.7% with a broadly neutral EBIT margin from targeted investment in resources for market growth opportunities EBIT Margin Key Metrics AUD 48.5mn Revenue1 36.3% EBIT Margin1 AUD 17.6mn EBIT1 Target 1H25 Performance +18.7% on 1H24 -30bps on 1H24 +17.8% on 1H24 42%
Slide 12: International
INTERNATIONAL Significant progress achieved over past year with establishment and build-out of new International Division New International Division Progress since acquisition UK Retail International ▪ Cost reductions ongoing: Headcount reduced by ~100 FTE International since acquisition (branded UK
Slide 13: International 2
INTERNATIONAL2 Healthy Underlying Revenue and margin expansion after normalising for team changes and the impact of a bonus period re-alignment Key Metrics AUD 204.2mn Revenue1 19.6% EBIT Margin1 AUD 39.9mn EBIT1 EBIT Margin 1H25 Normalised Target Performance3,6 +10.4% on 1H24 +160bps on 1H24 +19.8%
Slide 14: Group Funding & FX
Group Funding & FX
Slide 15: Group Funding
GROUP FUNDING Balance Sheet strength to support growth strategy Debt Funding Interest Earning Assets vs Look through share AUD 208.3mn AUD 360mn of Debt at 31 Dec’24 (AUD mn)2 Pro-forma Cash & • Additional AUD 250mn raised, increasing Cash & Undrawn Debt Undrawn Debt the total Debt Facility to AUD 1
Slide 16: Tysers Transactional Forex Exposure
TYSERS TRANSACTIONAL FOREX EXPOSURE No material change in makeup of FX flows USD revenue hedging using monthly forwards Portfolio by FX Currency1 Operational Hedging Earn Revenue ▪ Monthly FX Forward program sells USD for GBP to June 2026 21% 9% 3% 3% 60% 4% ▪ 69% of 2H25 Tysers forecast USD brokera
Slide 17: Ambition & Outlook
Ambition & Outlook
Slide 18: Our Long-Term Levers for Earnings Growth
OUR LONG-TERM LEVERS FOR EARNINGS GROWTH Long term strategy remains consistent with priorities aligned to where we see opportunities going forward Improved Earning driver Consolidation / New Business Premium Rate M&A Commercial Cost Reduction Technology priorities Specialisation Growth Cycle Benefit
Slide 19: FY25 Outlook
FY25 OUTLOOK Underlying NPAT guidance for FY25 re-affirmed at AUD 190.0 - 200.0mn, representing growth of 11.1% - 16.9% over FY24 FY25 Underlying NPAT1 Breakdown $mn AUD 2H25: 110.7 – 120.7 (9.8% - 19.7% growth vs pcp) 12.0 – 14.0 (2.3) (1.4) (6.5) 190.0 – 200.0 8.1 – 16.1 11.9% – 13.9% 100.8 8.0% –
Slide 20: Questions?
Questions? Mike Emmett CEO and Managing Director Mark Shanahan CFO
Slide 21: Closing
Closing Mike Emmett CEO and Managing Director
Slide 22: Appendices
APPENDICES A 1H25 Detailed Financial Results Appendices 22
Slide 23: A. 1H25 – Detailed Financial Results
Appendices A. 1H25 – Detailed Financial Results
Slide 24: Australian Broking
AUSTRALIAN BROKING Profit contribution to AUB Group – Pre-tax ▪ Pre-tax profit increased 11.5% to AUD 65.9mn (1H24: AUD 59.1mn) 1H25 1H24 Movement Movement (%) (AUD mn) Commission and fee income (net) 257.9 234.3 23.7 10.1% ▪ EBIT Margin of 37.6% up 70bps from 1H24 Premium Funding 19.8 19.5 0.3 1.6%
Slide 25: BizCover
BIZCOVER Profit contribution to AUB Group – Pre-tax Movement ▪ Revenue up 16.5% from 1H24 1H25 1H24 Movement (AUD mn) (%) ▪ Pre-tax profit increased 28.5% to AUD 8.6mn (1H24: AUD 6.7mn) Revenue1 50.2 43.1 7.1 16.5% ▪ Increase due to continued revenue growth and margin expansion from Expenses1 (28.5)
Slide 26: Agencies
AGENCIES Profit contribution to AUB Group – Pre-tax ▪ Pre-tax profit increased by 32.3% to AUD 32.9mn (1H24: AUD 24.9mn) 1H25 1H24 Movement Movement (%) (AUD mn) Commission and fee income (net) 91.3 71.8 19.5 27.1% ▪ Strong organic growth in GWP across most agencies, complemented by the Interest 4.5
Slide 27: New Zealand Broking
NEW ZEALAND BROKING Profit contribution to AUB Group – Pre-tax ▪ Pre-tax profit increased 11.6% to AUD 12.2mn (1H24: AUD 10.9mn) 1H25 1H24 Movement Movement (%) (AUD mn) Commission and fee income (net) 43.0 37.0 6.1 16.4% ▪ Average commission and fee income per client has increased 9.5% Premium Fund
Slide 28: International 3
INTERNATIONAL3 Profit contribution to AUB Group – Pre-tax ▪ Pre-tax profit decreased 20.0% to AUD 30.5mn (1H24: AUD 38.2mn) due 1H25 1H24 Movement Movement (%) (AUD mn) mainly to: Commission and fee income (net) 185.8 175.3 10.5 6.0% ➢ Impact of previously departed teams Interest 8.3 8.6 (0.3) (3.2%
Slide 29: Balance Sheet and Capital Position
BALANCE SHEET AND CAPITAL POSITION Consolidated Balance Sheet Overview (AUD mn) 1H25 FY24 Movement Cash – incl subs 210.9 377.4 (166.5) Cash – Trust Accounts 1,029.3 909.0 120.3 Leverage Ratio 31 Dec’24 Investment in Associates 313.2 250.9 62.3 1.90x Intangible assets and goodwill 2,462.3 2,042.9 41
Slide 30: A1.0 Reconciliation of Reported NPAT to Underlying NPAT
A1.0 RECONCILIATION OF REPORTED NPAT TO UNDERLYING NPAT1 1H25 1H24 Movement (AUD $’000) (AUD $’000) (AUD $’000) Net Profit after tax attributable to equity holders of the parent 26,380 53,124 (26,744) Add back/(less): (net of NCI and income tax) Amortisation of broking registers8 19,795 19,015 780 A
Slide 31: A2.1 Management Presentation of Results
A2.1 MANAGEMENT PRESENTATION OF RESULTS1,3 1H25 (AUD $’000) 1H24 (AUD $’000) Movement (AUD $’000) Movement (%) Australian Broking revenue 302,647 274,777 27,870 10.1% Australian Broking expenses (188,709) (173,264) (15,445) 8.9% EBIT - Australian Broking 113,938 101,513 12,425 12.2% International re
Slide 32: A2.2 Management Presentation of Results
A2.2 MANAGEMENT PRESENTATION OF RESULTS1 1H25 (AUD $’000) 1H24 (AUD $’000) Movement (AUD $’000) Movement (%) Australian Broking revenue 302,647 274,777 27,870 10.1% Australian Broking expenses (193,225) (176,579) (16,646) 9.4% Net profit - Australian Broking 109,422 98,198 11,224 11.4% Profit attrib
Slide 33: A2.3 Management Presentation of Results
A2.3 MANAGEMENT PRESENTATION OF RESULTS1,3 1H25 ($’000) FY24 ($’000) 2H24 ($’000) 1H24 ($’000) FY23 ($’000) 2H23 ($’000) 1H23 ($’000) FY22 ($’000) 2H22 ($’000) 1H22 ($’000) FY21 ($’000) 2H21 ($’000) 1H21 ($’000) FY20 ($’000) 2H20 ($’000) 1H20 ($’000) Australian Broking revenue 302,647 563,669 288,89
Slide 34: A2.4 Management Presentation of Results
A2.4 MANAGEMENT PRESENTATION OF RESULTS1 1H25 ($’000) FY24 ($’000) 2H24 ($’000) 1H24 ($’000) FY23 ($’000) 2H23 ($’000) 1H23 ($’000) FY22 ($’000) 2H22 ($’000) 1H22 ($’000) FY21 ($’000) 2H21 ($’000) 1H21 ($’000) FY20 ($’000) 2H20 ($’000) 1H20 ($’000) Australian Broking revenue 302,647 563,669 288,892
Slide 35: A3.0 Consolidated Cash Flow Statement
A3.0 CONSOLIDATED CASH FLOW STATEMENT 1H25 1H24 (AUD $’000) (AUD $’000) Cash flows from operations 102,131 42,782 Cash flows from investing activities Acquisitions and portfolio purchases (248,831) (47,098) Sales proceeds (net of cash reduced on deconsolidation) 218 17,848 Plant equipment / Other (6
Slide 36: Notice
NOTICE SUMMARY INFORMATION This document has been prepared by AUB Group Limited (ABN 60 000 000 715) (AUB). It is a presentation of general background information about AUB’s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete.
Slide 37: Thank You
Thank You