Australian Unity Ltd · ASX:AYUPA
Australian Unity — Investor Presentation (June 2020)
35 slides from Australian Unity's investor presentation, Jun 1, 2020
Slide 1: Australian Unity Limited Investor Presentation
1 June 2020 Australian Unity Limited Investor Presentation Australian Unity Limited is undertaking a series of investor presentations to wholesale investors over the period of 1 June 2020 to 9 June 2020. Please find attached a copy of the presentation. This announcement has been authorised for distr
Slide 2: Australian Unity Limited June 2020
Australian Unity Limited June 2020
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 any oral and each of its respective officers, direc
Slide 4: Agenda
1. Group overview 2. Financial performance and position 3. Strategic priorities 4. Business update 5. Appendices Rohan Mead Esther Kerr-Smith Melinda Honig Adam Vise Group Managing Director & Group Executive, Group Executive, Group Treasurer CEO Finance & Strategy Governance 3
Slide 5: Group overview
180 “*onty y= YEARS Real Wellbeing Group Overview
Slide 6: Overview of Australian Unity
Overview of Australian Unity Australia’s first member-owned wellbeing company • Established in 1840, we’re Australia’s first member-owned wellbeing company, with 270,000 members and more than 700,000 customers • We trace our origins back to a pub in Melbourne, where a group of eight people formed a
Slide 7: Summary COVID-19 Update
Summary COVID-19 Update See also slides 27 and 28 • The Group has not been immune to the effects of COVID-19, in terms of both revenue and expenses. For instance, we have observed increased costs associated with supplying our human services operations with personal protective equipment (PPE) and the
Slide 8: Australian Unity platforms
Australian Unity platforms Diversified portfolio with extended participation in higher-growth human services and social infrastructure sectors Retail Wealth & Capital Markets Independent & Assisted Living • Life & super • Retirement communities • Banking • Investments • Aged care • Health insurance
Slide 9: A growing organisation
A growing organisation Consistent growth demonstrated over last five years Σ The FY2018 year includes the sale of the Group’s corporate health insurance business, Grand United Corporate Health Limited (GUCH), affecting the comparative results for FY2017. † Revenues: comprise revenue and other income
Slide 10: Quick facts
Quick facts Create a great Put our customers Deliver sustainable Make a difference place to work and members front performance in our community and centre 7,000+ 700,000+ $1.61b 3.8m employees customers revenue hours of home & disability care 70% 270,000+ $20.71b 300,000+ management members in asset
Slide 11: Highly regulated commercial business
Highly regulated commercial business Retail Wealth & Capital Markets Independent & Assisted Living • Australian Prudential Regulation Authority (APRA) • APRA • Commonwealth • Australian Securities and Department of Health • ASIC Investments Commission • Aged Care Quality & Safety (ASIC) • AUSTRAC Co
Slide 12: ESG – “S” = wellbeing
ESG – “S” = wellbeing Australian Unity Wellbeing Index Community & Social Value Framework Individuals and communities have more • We’ve been measuring the wellbeing of Australians with Deakin choice and control over the care they receive University since 2000 Lifelong and remain healthier for longer
Slide 13: Community & social value outcomes framework
Community & social value outcomes framework Lifelong wellness Economic empowerment Strong communities Take preventative action to stay in good Job security & meaningful Health health Safety & Future employment through: security Achieving Fostering meaningful being more Reduce impact of chronic disea
Slide 14: We are already delivering value under each of the impact areas
We are already delivering value under each of the impact areas • Mindstep® – evidence-based phone counselling service for anxiety and depression • Ramsay Connect – hospital in the home • Telehealth for allied health (new since COVID-19) Lifelong wellness • Wellbeing plans for all aged care and NDIS
Slide 15: Financial performance and position
Financial performance and position 14
Slide 16: Strong FY19 complemented by sound progress in first half FY20
Strong FY19 complemented by sound progress in first half FY20 • Continued to progress a strategy of developing a commercially sustainable, thematically linked, portfolio of businesses Solid performance FY19 • Revenue and other income of $1.6 billion, up 8.2% against broad • Adjusted EBITDA1 of $93.0
Slide 17: FY20 key metrics
FY20 key metrics Profit after income tax1 ($m) Half Year 60 53.0 51.5 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 $66.9 million from the divestment of the Group’s corporate health insurance sub
Slide 18: Segment earnings growth
Segment earnings growth Adjusted EBITDA1 ($m) 50.0 HY19 HY20 FY2018 FY2019 80.0 74.4 40.4 70.0 64.6 40.0 60.0 32.5 50.5 48.2 29.1 50.0 30.0 40.0 36.9 20.1 30.0 20.0 18.2 20.0 10.0 9.3 10.0 0.0 (3.3) (10.0) 0.0 Retail Wealth & Capital Independent & Assisted Retail Wealth & Capital Markets Independent
Slide 19: MCI to further enhance balance sheet?
MCI to further enhance balance sheet? 30 June 2019 debt maturity profile1 ($m) 31 December 2019 debt maturity profile1 ($m) 300.0 300.0 250.0 250.0 Cash covered 200.0 200.0 250.0 150.0 150.0 18.5 100.0 100.0 207.0 71.3 115.0 50.0 50.0 5.4 20.0 5.1 20.0 5.1 18.0 27.4 - - FY2020 FY2021 FY2022 FY2023 F
Slide 20: Gearing analysis
Gearing analysis 1 Covenant Gearing Ratio calculated as Gearing Ratio Debt / (Gearing Ratio Debt + Gearing Ratio Equity), as defined under the Series B and Series C and Australian Unity Bond terms. 2 Gearing Ratio Debt means the sum of Consolidated Interest Bearing Liabilities and Australian Unity G
Slide 21: Strategic priorities
180 Agi YEARS Strategic priorities Real Wellbeing + Sa 20
Slide 22: Demand for health & aged care already growing
Demand for health & aged care already growing 90,000 80,000 70,000 We’re on the cusp of the baby- boomers arriving 60,000 50,000 40,000 30,000 20,000 10,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 Net increase
Slide 23: Meeting the nation’s social infrastructure challenge
Meeting the nation’s social infrastructure challenge In just over 20 years from now, by 2040, there will be: Significant social infrastructure gaps are emerging: 2.6m+ 4.6m+ 5m+ • Facilities: people with people with people aged high or very circulatory system 70+ - Hospitals and healthcare facilitie
Slide 24: Strategic priorities
Strategic priorities FY20 and beyond Private health Realising the home Capability, Social infrastructure Capital and insurance sector care and Aboriginal innovation Progressing development funding reforms home care and cost portfolio and pipeline, Continued growth and opportunity including Herston Q
Slide 25: Key strategic project case study: Herston Quarter
Key strategic project case study Herston Quarter Health Precinct - a $1.1bn social infrastructure development • In February 2017, Australian Unity signed a series of 2 hospitals 3 commercial carparks Better Together® Heritage buildings agreements with the Queensland Government to (one public, one pr
Slide 26: Key strategic project case study: Home & Disability Services
Key strategic project case study Home & Disability Services – building a sustainable consumer-directed human services business • Our Home & Disability Services (HDS) Australian Unity commenced the integration of Home Care NSW into its operations in 2016, in line with business delivers homecare to mo
Slide 27: Business update
Business update 180 "gig Real Wellbeing YEARS S> 26
Slide 28: COVID-19 update
COVID-19 update • The Group has not been immune to the effects of COVID-19, in terms of both revenue and expenses. For instance, we have observed increased costs associated with supplying our human services operations with personal protective equipment (PPE) and the broader economic impacts on our m
Slide 29: COVID-19 update
COVID-19 update • Private health insurance: elective surgery and other claims have been lower across the industry. The impact of this lower utilisation has been a temporary improvement of the cash position for PHI funds, AUHL included, although we expect this position to normalise over coming period
Slide 30: Appendices
180 “*onty y= YEARS Real Wellbeing Appendices
Slide 31: Appendix A. Management biographies
Appendix A. Management biographies Rohan Mead, Group Managing Director & CEO Mr Rohan Mead was appointed Group Managing Director of Australian Unity Limited on 1 July 2004. As Group Managing Director, he is a member of subsidiary boards and most committees. Rohan is chairman of the Business Council
Slide 32: Appendix A. Management biographies
Appendix A. Management biographies Melinda Honig, Group Executive, Governance Ms Melinda Honig joined Australian Unity in February 2016. In her role as Group Executive, Governance, Melinda is responsible for managing the Group’s Legal, Compliance, Risk, and Secretariat function. She is also secretar
Slide 33: Appendix B. Nationwide Building Society Case Study
Appendix B. Nationwide Building Society Case Study Over £1 billion issued Core Capital Deferred Shares (CCDS) issued CCDS key terms • Nationwide Building Society is a British mutual financial Security Fully paid, permanent, non-withdrawable deferred institution and the world’s largest building socie
Slide 34: Appendix B. Nationwide Building Society Case Study
Appendix B. Nationwide Building Society Case Study Liquidity provided via secondary listing on the London Stock Exchange Secondary market trading of CCDS • Nationwide Building Society undertook its inaugural issue of £180 10% CCDS in 2013, with a tap undertaken in 2017 9% £160 Issue date CCDS issued
Slide 35: YEARS
180 YEARS Austrglion yD Real Wellbeing