Australian Unity Ltd · ASX:AYUPA
Australian Unity — FY2024 Earnings Presentation
37 slides from Australian Unity's earnings presentation, Aug 28, 2024
Slide 1: ASX Announcement
ASX Announcement 28 August 2024 Australian Unity Limited – Full Year Investor Update Please find attached Australian Unity Limited’s Investor Update relating to the financial results for the year ended 30 June 2024. -end- This announcement has been authorised for release by the board of Australian U
Slide 2: Investor update
Australian Unity Limited Investor update Financial results for the full-year ended 30 June 2024
Slide 3: Invitation to investor presentation teleconference
Australian Unity Limited is pleased to invite Date Thursday 29 August 2024 you to our investor presentation teleconference for the full-year ended 30 June 2024 Time 9:30am to 10:30am AEST To access the teleconference participants must register in advance via the link below: https://s1.c-conf.com/dia
Slide 4: Important information
Important information This notice applies to all information provided as a part of this presentation AUL makes no representation or warranty, express or implied, regarding including, without limitation, these slides, associated presentations and the fairness, accuracy, completeness, correctness or r
Slide 5: 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 FY2024 Investor presentation 4
Slide 6: Agenda and presenters
Agenda and presenters 1. Overview and Group highlights 2. Business results 3. Summary and outlook Rohan Mead Esther Kerr Darren Mann Group Managing Director and CEO Group Executive - Wealth & Capital Markets Group Executive - Finance & Strategy and Chief Financial Officer AUL FY2024 Investor present
Slide 7: Overview and Group highlights
Overview and Group highlights AUL FY2024 Investor presentation 6
Slide 8: Overview of Australian Unity
Overview of Australian Unity Established in 1840, we are Australia’s first wellbeing company, with more than 370,000 members and more than 9,500 employees As a social enterprise and mutual, our purpose is to positively impact the wellbeing of millions Our purpose Our vision Our areas of Our organisa
Slide 9: Transformation agenda - stages of implementation
Transformation agenda - stages of implementation Transformation commenced in FY2023 and will continue to progress through to FY2026 Transformation process Pre FY2023 Current state Aspiration • 180+ year history of delivering • Targeted investment to accelerate • Portfolio of commercially products an
Slide 10: FY2024 operational review
FY2024 operational review Year of transformation • The Group reported Adjusted EBITDA of $75.8m and a statutory loss after tax of $22.7m • This result included significant costs related to material acquisitions and integration, business transformation and internal restructuring which are consistent
Slide 11: Transformation agenda - FY2024 progress
Transformation agenda - FY2024 progress A year of significant change, with material strategic investment and portfolio optimisation Strategic programs and investment Portfolio optimisation • Continued to reorganise and optimise business platforms (Home Health, Residential Aged • Accelerated key port
Slide 12: Business results
Business results AUL FY2024 Investor presentation 11
Slide 13: FY2024 financial summary
FY2024 financial summary Change FY2024 FY2023 FY20231 FY2024 to Key financial statistics previously reported (pre (post AASB 17) AASB 17) (post AASB 17) FY20231 (post AASB 17) Revenue and other income ($m) 2,173.0 1,858.2 1,753.1 419.9 Expenses, excluding financing costs ($m) (2,038.6) (1,709.5) (1,
Slide 14: FY2024 key metrics: Adjusted EBITDA
FY2024 key metrics Adjusted EBITDA ($m) FY2023 previously reported (pre AASB 17) 180 FY2023 (post AASB 17) 160 Adjusted EBITDA 161.5 140 144.3 120 100 98.9 93.1 93.1 80 84.5 75.8 60 63.0 $63.0m was included in 40 FY2024 trading update 3 June 2024 20 0 FY2020 FY2021 FY2022 FY2023 FY2024 AUL FY2024 In
Slide 15: FY2024 key metrics: Profit after income tax
FY2024 key metrics Profit after income tax ($m) 70 FY2023 previously reported (pre AASB 17) 60 FY2023 (post AASB 17) 50 56.8 Full year 45.7 40 30 32.9 20 10 9.1 7.6 0 -10 2 -22.7 -20 -30 FY2020 FY2021 FY2022 FY2023 FY2024 AUL FY2024 Investor presentation 14
Slide 16: FY2024 segment earnings
FY2024 segment earnings Adjusted EBITDA ($m) FY2023 (post AASB 17) FY2024 70.0 60.0 58.5 57.2 50.5 50.0 46.1 45.4 45.5 38.8 40.0 30.0 1 22.4 20.0 10.0 0.0 Home Health Residential Aged Care Retail Wealth & Capital Markets 1 The FY2023 numbers do not include those for the disability services or dental
Slide 17: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience 500 Total Perpetual FY2025 onwards ($m)1 $469m Mutual Capital Instruments (new) 450 Mutual Capital Instruments 400 119 Undrawn Revolving Loan (new) 350 Undrawn Revolving Loan 300 Total FY2027 $257m Undrawn Development Loan (new) 250 50 Drawn Developm
Slide 18: Gearing analysis and interest cover
Gearing analysis and interest cover Covenant gearing ratio 60.00% 800 9.00 Interest cover ratio1 700 8.00 50.00% 7.00 600 Debt Capacity ($m) 40.00% 6.00 500 Gearing Ratio 5.00 30.00% 400 4.00 300 3.00 20.00% 200 2.00 10.00% 1.00 100 - 0.00% 0 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 J
Slide 19: Community and Social Value (CSV) FY2024
Community and Social Value (CSV) FY2024 $2.01b in total CSV for FY2024 $424m Supporting living in place FY2024 % FY2023 $119m Priority outcomes ($m) change ($m) Leading social innovation Better access to healthcare 1,130 +41 802 $1,130m Better access $543m to healthcare Improved health outcomes 186
Slide 20: CSV value bridge ($m)
CSV– value bridge ($m) 2,012 Due to new outcomes Driven by Due to divestments / Growth in proxy Growth by change in Driven by change in FY2023 CSV Due to acquisitions / updating CSV performance (existing FY2024 CSV program ending (inflation) proxy discounting methodology outcomes) % change 5.7% -10.
Slide 21: CSV by platform ($m)
CSV by platform ($m) 900 Notes: • IOOF Ltd business and myHomecare Group (MHC) acquisitions have been included for 800 a portion of FY2024 • Reduction in Residential Aged Care is due to no new facilities becoming operational in FY24 700 • The reduction in Wealth & Capital Markets is due to lower con
Slide 22: FY2024 greenhouse gas (GHG) emissions estimate
FY2024 greenhouse gas (GHG) emissions estimate Meeting our future environmental sustainability reporting requirements Summary GHG inventory (t CO2e) Corporate Home Residential Retirement Scope TOTAL Functions1 Health2 Aged Care Communities expressed as tonnes of CO2 equivalent emissions Scope 1 Mobi
Slide 23: Home Health
Home Health AUL FY2024 Investor presentation 22
Slide 24: Home Health
Home Health The platform provides a range of in-home health services across both community and virtual settings Highlights Adjusted EBITDA • Invested in transformational activities to enable more efficient and effective delivery of services to over ($m) 50,000 customers FY2023 FY2024 • Recorded a so
Slide 25: Residential Aged Care
Residential Aged Care AUL FY2024 Investor presentation 24
Slide 26: Residential Aged Care
Residential Aged Care The platform provides aged care services across 12 facilities in New South Wales, Victoria and Queensland Highlights • Total segment revenue was strengthened by an uplift in daily accommodation payments and refundable Adjusted EBITDA accommodation deposit revenues ($m) • Revenu
Slide 27: Retail
Retail AUL FY2024 Investor presentation 26
Slide 28: Retail
Retail The platform brings together Australian Unity’s private health insurance (PHI), banking business and distribution of general insurance products Highlights • Total segment revenue was higher than the prior year mainly due to higher interest income from the Banking Adjusted EBITDA ($m) business
Slide 29: Wealth & Capital Markets (W&CM)
Wealth & Capital Markets (W&CM) AUL FY2024 Investor presentation 28
Slide 30: W&CM
W&CM The platform comprises funds management, social infrastructure, retirement living, investment bonds and trustees businesses Highlights Adjusted EBITDA • Accelerated portfolio opportunities within the platform including: ($m) – Integration of Australian Unity Life Bonds Limited (AULBL) after the
Slide 31: W&CM: FY2024 - A year in transition
W&CM: FY2024 - A year in transition We have re-shaped our portfolio to accelerate our focus on the themes of social infrastructure and financial wellbeing, that enjoy strong macro tailwinds and leverage the unique attributes of the Group Acquisitions and investments Transformations and partnerships
Slide 32: W&CM: Life | Our areas of focus
W&CM: Life | Our areas of focus We help people who believe in self-reliance achieve financial wellbeing and accomplish their goals through our carefully crafted life event products and solutions Funds under Growth areas Strategic ambition management and reach Manufacturer and distributor of Pursued
Slide 33: W&CM: Social infrastructure | Funds
W&CM: Social infrastructure | Funds The investment opportunities that support the Real Wellbeing of people and communities Fund CPF SAF/PBSA SDA SL HPT Childcare Property Fund Student Accommodation Specialist Disability Seniors Living Healthcare Property Trust Accommodation Fund Description Impact
Slide 34: W&CM: Social infrastructure | Our Areas of Focus
W&CM: Social infrastructure | Our Areas of Focus We have priortised areas that align to our CSV framework where we believe opportunity is greatest Social infrastructure funds Precincts Retirement communities Developer, owner and operator of Conceive and deliver precincts that create A leading provid
Slide 35: Summary and outlook
Summary and outlook AUL FY2024 Investor presentation 34
Slide 36: Summary and outlook
Summary and outlook • Our focus for FY2025 is to successfully execute the transformation of our portfolio and its operational integration • Transformation is designed to support earnings substantially recovering to previously reported FY2023 levels in FY2025, with further planned improvements in FY2
Slide 37: Real Wellbeing
Australian] Real Wellbeing