Slide 1: Steadfast Group 1H21 Results Investor Presentation
Steadfast Group 1H21 Results Investor Presentation 23 February 2021
Slide 2: Table of Contents
Table of Contents 1H21 Results Investor 03 1H21 Highlights Presentation 11 1H21 Financial Summary 19 Appendices 2
Slide 3: 1H21 Highlights
1H21 Highlights 3
Slide 4: Increase in underlying NPAT of 19.3%
Steadfast Group Increase in underlying NPAT of 19.3% Statutory earnings1 Underlying earnings 1 NPAT of $73.4m (1H20 loss of $71.9m) EBITA +19.3% to $125.4m NPAT +19.3% to $60.4m Broker and underwriting agency growth NPATA2 +16.5% to $74.6m Equity brokers and network aggregate underlying EB
Slide 5: Resilient business model and strategic initiatives
Steadfast Group Our resilient business model and the stability of our executive team have driven Steadfast’s consistent strong financial performance Strategic Initiatives 1H21 COVID-19 Impact Industry Update All insurer partners have adopted our Provided opportunities to be adaptable NIBA has
Slide 6: Steadfast broking
Steadfast broking Continued moderate price increases from strategic partners Financial highlights 1H21 vs 1H20 Steadfast Network GWP +13.9% to $4.5 billion driven by: GWP of $4.5bn vs $3.9bn 7.7% organic growth for the period (excludes statutory +7.7% organic growth classes) Price increases in
Slide 7: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies Organic GWP growth of 8.9% driven by price and volume Financial highlights 1H21 vs 1H20 Steadfast Underwriting Agencies GWP +8.9% to $733 million Driven by price and volume uplift GWP of $733m vs $673m Property lines continue to remain strong Opportunities for
Slide 8: Our insurTech
Our insurTech Steadfast Client Trading Platform and INSIGHT Steadfast Client Trading Platform (SCTP) $348.2m GWP transacted through SCTP in 1H21 Steadfast remains focused on improving SCTP by adding more product lines, new insurers and the expansion of auto-rating capabilities. Latest developments
Slide 9: Interim dividend up 22.2%
Interim dividend up 22.2% Interim 1H21 dividend Interim 1H21 dividend of 4.4 cps (fully franked), up from 3.6 cps in 1H20, +22.2% 13.0 Dividend Reinvestment Plan (DRP) to apply to interim 1H21 dividend 11.0 The DRP will operate by the issue of new shares. A 2.0% discount will be applied 9.0
Slide 10: FY21 guidance
FY21 guidance Now expecting top end of FY21 guidance based on strong first half trading performance and acquisitions Underlying EBITA ($m) $280.0m FY21 Guidance Range1 Guidance Range: +10% to +14% $240.0m Underlying EBITA $245m - $255m $200.0m Underlying NPAT $120m - $127m $160.0m Underlying diluted
Slide 11: 1H21 Financial Summary
1H21 Financial Summary 11
Slide 12: Reconciliation of statutory NPAT to underlying NPAT
Reconciliation of statutory NPAT to underlying NPAT Reconciliation of statutory NPAT to underlying NPAT Statutory vs Statutory vs 6 months to 31 December underlying underlying $ million reconciliation 1H21 reconciliation 1H20 Statutory profit/(loss)1 73.4 (71.9) Adjusted for non-trading items (net o
Slide 13: Group financial performance
Group financial performance Strong underlying earnings growth Underlying earnings 6 months to 31 December Underlying Underlying Period-on-period $ million 1H211 1H201 growth % Revenue ($m) 437.8 410.7 6.6% EBITA ($m) 125.4 105.2 19.3% NPAT ($m) 60.4 50.6 19.3% Diluted EPS2 (NPAT) (cents) 6.98 5.96 1
Slide 14: Drivers of 19.3% growth in underlying EBITA
Drivers of 19.3% growth in underlying EBITA1 Organic and acquisition growth Organic growth: $16.9m (+16.1%) Technology investment: -$1.8m (-1.7%) Acquisitions growth: $5.2m (+4.9%) $130.0m $4.1m $1.0m 19.3% $125.0m $1.1m $15.8m ($0.5m) ($1.3m) 1.0% $120.0m (0.5%) 1.1% (1.2%) 3.9% $115.0m $110.0m $12
Slide 15: Steadfast broking
Steadfast broking Organic and acquisition growth Equity brokers and network - consolidated & equity accounted (assuming 100% ownership) 6 months to 31 December Underlying Underlying Period-on-period Organic Growth from $ million 1H211 1H201 growth % growth % acquisitions % Net revenue 285.3 265.4 7.
Slide 16: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies Organic growth driven by price and volume Steadfast Underwriting Agencies – consolidated & equity accounted (assuming 100% ownership) 6 months to 31 December Underlying Underlying Period-on-period Organic Growth from $ million 1H211 1H201 growth % growth % acquisition
Slide 17: Strong conversion of profits to cash
Strong conversion of profits to cash 1H21 cash flow statement $ million 1H21 1H20 Cash flow summary¹ Adjusted net cash from operating activities $86.0m $82.8m $ million 1H21 1H20 Cash used for dividends, net of DRP ($34.6m) ($36.9m) Statutory operating cash flow² $127.4m $109.3m Free cash flow $51.4
Slide 18: Conservatively geared balance sheet
Conservatively geared balance sheet Statutory balance sheet $ million 31 Dec 20 30 Jun 20 Corporate debt facilities (excludes premium funding) $ million Maturity Total Cash and cash equivalents 248 211 Facility A - Revolving Jan 2023 260 Cash held on trust 549 449 Facility B - Revolving Jan 2025 75
Slide 19: Appendices
Appendices Steadfast Group (slide 20) Steadfast Network (slide 25) Steadfast Underwriting Agencies (slide 33) Our InsurTech (slide 35) 1H21 detailed financials (slide 39) 19
Slide 20: Steadfast Group
Steadfast Group 20
Slide 21: Our track record since listing on the ASX
Our track record since listing on the ASX Steadfast Group 1 Steadfast Network GWP ($bn) Steadfast Underwriting Agencies GWP ($m) Underlying EBITA ($m) 10 1,400 240 1,200 200 8 1,000 160 6 800 120 4 600 80 400 2 40 200 0 0 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H21 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1
Slide 22: Three business units focused on the intermediated general insurance market
Three business units focused on the intermediated general insurance market Steadfast Group Steadfast Group (listed on ASX) Steadfast Network Steadfast Underwriting Agencies Complementary Businesses 454 general insurance brokers 25 underwriting agencies 9 businesses supporting the Steadfast Network a
Slide 23: Size and scale
Size and scale Steadfast Group Largest general insurance broker network in Australasia Largest group of underwriting agencies in Australasia $8.9 billion 454 $1.4 billion 25 Annual GWP1 Steadfast Network brokers Underwriting agencies Annual GWP1 Steadfast Network collects professional services and o
Slide 24: Our market
Our market $25 billion of intermediated general insurance GWP written in FY20 Australian market – gross written premium1 Steadfast Group is focused on the intermediated $25bn general insurance market, Intermediated market with a primary focus on SME Steadfast Network brokers CY20 $8.9bn Intermediate
Slide 25: Steadfast Network
Steadfast Network 25
Slide 26: Largest general insurance broker Network in Australasia
Largest general insurance broker Network in Australasia Steadfast Network Steadfast Network Strategy Steadfast Network $8.9bn The Steadfast Network has 454 general Exclusive to Steadfast Network brokers Be the best solution for our clients’ needs insurance brokers in Australia, New Zealand Opera
Slide 27: Steadfast Network brokers have joined since IPO
Steadfast Network 264 brokers have joined the Steadfast Network since IPO Number of Steadfast Network brokers 600 19 37 550 78 38 500 13 31 454 450 31 400 105 350 300 278 250 200 August New brokers Allied NZ Insight IBNA Singapore Hubbing¹ Sold Leavers Dec 2020 2013 (IPO) 264 brokers have joined a
Slide 28: Worldwide broker offices
Steadfast Network Worldwide broker offices (excluding unisonSteadfast) 1 United Kingdom 44 Asia 12 353 Northern Territory 191 Queensland 111 Western Australia South Australia 507 New South Wales 112 20 North Island 493 Australian Capital Territory Victoria 1,903 broker offices 31 across Australia, 2
Slide 29: Australia – resilient SME client base
Steadfast Network Australia – resilient SME client base 1 GWP mix Diversified by product line Diversified by geography Diversified by insurer 12% 4% 3% 13% 34% 34% Business pack 19% QBE 16% Micro (Policy size <$650) VIC 38% Commerical motor 13% Small Enterprise (Policy size $650 - $5,000) CGU 13% NS
Slide 30: Increasing Steadfast Group's share of growing Network GWP
Increasing Steadfast Group’s share of growing Network GWP Steadfast Network The Steadfast Network is a key driver of Steadfast Group Steadfast Group earns professional service fees (PSF) from insurer partners which are used as a revenue stream to provide products and services to the Steadfast Ne
Slide 31: International footprint
International footprint Steadfast Network model replication 1. New Zealand 53 brokers in the Network Steadfast Underwriting Agencies building market presence utilising NZ$542m of gross written premium Network distribution in CY20 Strong buy-in from insurer partners SCTP introduced 2. Asia
Slide 32: International footprint: unisonSteadfast
International footprint unisonSteadfast Steadfast Group holds a 40% equity stake in unisonSteadfast One of the world’s largest global general insurance broker networks, offering multi-jurisdictional coverage 600+ Referrals between the Steadfast Network and unisonSteadfast Supervisory board con
Slide 33: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies 33
Slide 34: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies 25 agencies, over 100 niche products Complete farm package Caravans, cabins and trailers Commercial and residential strata Accident and health Base essentials strata Residential and commercial strata Home and contents for Specialised and exotic motorcar Emerging risks
Slide 35: Our insurTech
Our insurTech 35
Slide 36: SCTP – benefits for clients, brokers and insurers
Our insurTech Steadfast Client Trading Platform (SCTP) – benefits for clients, brokers and insurers Market-leading technology – exclusive to Steadfast Network brokers, clients and participating insurers Benefits for clients: Genuine contestable marketplace generating improved pricing, competit
Slide 37: Insurer and underwriting agency partners on the SCTP
Our insurTech Insurer and underwriting agency partners on the SCTP Commercial property Domestic home, Business pack Professional risks Liability Commercial motor Strata & ISR motor & landlords 2H FY21 2H FY21 2H FY21 2H FY21 2H FY21 Key: indicates new insurers joining SCTP product lines 37
Slide 38: Steadfast Technologies
Our insurTech Steadfast Technologies Steadfast Client Trading Platform (SCTP) The Steadfast Client Trading Platform is a digital INSIGHT is an insurance broking platform with a UnderwriterCentral is a cloud-based agency marketplace which provides Steadfast Network insurance powerful search engine wh
Slide 39: 1H21 Detailed Financials
1H21 Detailed Financials 39
Slide 40: Reconciliation of statutory to underlying earnings
1H21 detailed financials Reconciliation of statutory to underlying earnings 6 months ended 31 December 2020 Total statutory Reclassifications Non-trading items Total underlying $ million Fees and commissions income 315.1 31.7 - 346.8 Professional Services and other fees - 34.7 - 34.7 Premium funding
Slide 41: Statement of underlying income (IFRS view)
1H21 detailed financials Statement of underlying income (IFRS view) 6 months ended 31 December 2020 Underlying Underlying Period-on-period Organic Acquisitions & $ million 1H21 1H20 growth % growth %3 hubbing growth %4 Fees and commissions1, 2 381.5 349.5 9.2% 5.9% 3.3% Other revenue 56.3 61.3 (8.0%
Slide 42: Statement of income (underlying IFRS view)
1H21 detailed financials Statement of income (underlying IFRS view) Underlying Underlying Underlying Underlying Underlying Underlying $ million 1H21 2H20 1H20 2H19 1H19 2H18 Fees and commissions¹, 2 381.5 357.4 349.5 328.9 302.9 286.4 Other revenue 56.3 58.1 61.3 38.5 18.1 18.8 Revenue – Consolidate
Slide 43: Statutory cash flow statement
1H21 detailed financials Statutory cash flow statement $ million 1H21 1H20 $51.4m free cash flow in 1H21 Cash flows from operating activities Cash from operations1 $127.4m Less premium funding movement ($34.6m) Net cash from operating activities before customer 127.4 109.3 trust accounts movement Le
Slide 44: Australian General Insurance Statistics
Australian General Insurance Statistics1 Premiums and claims by class of business Houseowners/householders Domestic motor vehicle CTP motor vehicle Premiums and Claims by class of Business Year End Year End Year End Year End Year End Year End Sept 2019 Sept 2020 Sept 2019 Sept 2020 Sept 2019 Sept 20
Slide 45: Australian General Insurance Statistics
Australian General Insurance Statistics1 Premiums and claims by class of business Commercial motor vehicle Fire and ISR Public and product liability Professional indemnity Premiums and Claims by class of Business Year End Year End Year End Year End Year End Year End Year End Year End Sept 2019 Sept
Slide 46: Important notice
Important notice This presentation has been prepared by Steadfast Group Limited (“Steadfast”). This presentation contains information in summary form which is current as at 23 February 2021. This presentation is not a recommendation or advice in relation to Steadfast or any product or service offere
Slide 47: Steadfast
<> Steadfast ‘THE STRENGTH YOU NEED