Aub Group Limited · ASX:AUB
Aub — Austbrokers Holdings — Macquarie Australia Conference 2014
25 slides from Aub's conference presentation, May 7, 2014
Slide 1: Presentation to Macquarie Australia Conference
For personal use only 7th May 2014 The Manager Company Announcements Australian Securities Exchange Level 6, Exchange Centre, 20 Bridge Street Sydney, NSW 2000 Dear Sir / Madam, Re: Presentation to Macquarie Australia Conference Attached is a presentation to be given to Macquarie Australia Conferenc
Slide 2: Austbrokers Holdings Ltd - Macquarie Australia Conference May 2014
For personal use only AUSTBROKERS HOLDINGS LTD MACQUARIE AUSTRALIA CONFERENCE MAY 2014 MARK SEARLES CEO & MANAGING DIRECTOR
Slide 3: Agenda
a For personal use only AGENDA • Business Overview • Financial Performance • Business Outlook
Slide 4: Business Overview
For personal use only BUSINESS OVERVIEW • Business Highlights • Core Business Model • AUB Group Principles • AUB Group Strategies
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS • Largest equity-based Insurance Broking group in Aus/NZ For personal use only • Leading Underwriting Agency operations • Growing Risk & Insurance Services operations • Group established 1985; IPO 2005 • Clear business model, vision and purpose • 8 Years continuous double-digit p
Slide 6: Core Business Model – 'Owner:Driver'
CORE BUSINESS MODEL – ‘OWNER:DRIVER’ ‘Owner:Driver’ For personal use only • Management and Partner Firm • Behavioural model strategic support • Retain equity in • Standardised technology business platforms • Day-to-day • Product development management • Comprehensive • Client relationship compliance
Slide 7: Our Key Principles
OUR KEY PRINCIPLES For personal use only 1. Protect The Austbrokers ‘family’ Culture 2. Continued Commitment To The Owner : Driver Model 3. Leverage Our Collective Strength and Reputation 4. Deliver The Capabilities Within AUB To Support Our Partners’ Growth Ambitions 5. Deliver On Our Promises
Slide 8: AUB Organisation
AU B O RG A N I SAT I O N For personal use only BROKER & UNDERWRITING RISK & INSURANCE AIMS JV INTERMEDIARY AGENCIES SERVICES DISTRIBUTION OPERATING OFFICE BUSINESS TECHNOLOGY BUSINESS SERVICES & SUPPORT INSURER & MARKET DEVELOPMENT FINANCE / INVESTOR RELATIONS / LEGAL
Slide 9: Broker & Intermediary Distribution
BROKER & INTERMEDIARY DISTRIBUTION For personal use only Owner Driver Model 26 50% owned 47 Broking Groups Over 170 locations 19 51% - 90% owned 1 Financial Services 3 100% owned in Australia & Operation New Zealand Financial Services Broking & Operations – Life & General & Specialist Superannuation
Slide 10: Underwriting Agencies
UNDERWRITING AGENCIES For personal use only Growth in Strata Agency grown 3 x Surety Agency 16 Underwriting commenced Agencies Underwriting Development of start up Clear ‘top 3’ segment businesses Agencies strategy Continued to invest in Acquisition of existing resources for future agencies growth
Slide 11: Risk & Insurance Services
RISK & INSURANCE SERVICES For personal use only Owner Driver Model Workers Compensation Claims Management consulting services Risk & Claims Risk & Investigation Insurance training services services Specialist staff Occupational recruitment Rehabilitation services Injury Management services
Slide 12: AUB Organisation & Key Responsibilities
AU B O RG A N I SAT I O N & K E Y R ES P O N S I B I L I T I ES For personal use only BROKER & INTERMEDIARY UNDERWRITING RISK & INSURANCE AGENCIES AIMS JV DISTRIBUTION SERVICES - Existing Business Support/Growth - Existing Business Support/Growth - Procare - Product Wordings - New Partner Acquisitio
Slide 13: AUB Strategies FY14/15
AUB STRATEGIES FY14/15 • Distribution Growth - focus on organic distribution inc bolt-on acquisitions, x- For personal use only sell; stand alone acquisitions • Underwriting Agency growth via organic growth and increasing operational efficiencies • Grow capabilities in Risk and Insurance services pr
Slide 14: AUB Strategies FY14/15
AUB STRATEGIES FY14/15 • Optimisation of operating model to continue to underpin future For personal use only growth across the Group • Business Technology and Data Centre provision and associated data management • Compliance and Risk Management excellence • Business Centre services – accounting, ta
Slide 15: Financial Performance
For personal use only FINANCIAL PERFORMANCE • Financial highlights • Total shareholder return • Profit growth • EPS growth • Funding
Slide 16: 1HY2014 Financial Highlights
1HY2014 FINANCIAL HIGHLIGHTS For personal use only Operating revenue up 15% Reported NPAT down Adjusted NPAT up 6.2% 48% (due to fair value adjustment in HY13) Austbrokers Underwriting Agency EPS up 2% Holdings profits up 20% Interim dividend per share up 9% to 12 cents AUB share of broker profits u
Slide 17: AUB Total Shareholder Return Performance
AUB TOTAL SHAREHOLDER RETURN PERFORMANCE 1 Year 3 Year 5 Year 45 For personal use only 40 35 30 % Annualised TSR 25 AUB 20 ASX All Ords ASX 200 Index 15 10 5 0 -5 % (0.91) 11.17 11.14 24.1 8.22 9.07 3 8.1 12.42 12.50 Periods to 2nd May 2014
Slide 18: NPAT Growth 1HY 2007 – 2014
NPAT GROWTH 1HY 2007 – 2014 For personal use only 25000 NPAT $’000 20000 Adjusted NPAT 15000 10000 5000 0 2007 2008 2009 2010 2011 2012 2013 2014 % increase NPAT 28.3% 25.1% 14.3% 7.2% 21.3% 29% 118% (47.8)% % increase Adjusted NPAT 14.6% 38.0% 12.6% 7.1% 25.9% 17% 20% 6.2% NPAT - Net Profit after t
Slide 19: 1HY Result Compared to 2HY
1HY RESULT 1HY COMPARED Compared to 2HYTO 2HY For personal use only $M 35 30 25 Adjusted NPAT 20 2HY 1HY 15 10 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Financial Year 2HY 64% 65% 59% 60% 61% 59% 58% 57% 1HY 36% 35% 41% 40% 39% 41% 42% 43%
Slide 20: Earnings Per Share 1HY 2007 - 2014
EARNINGS PER SHARE 1HY 2007 - 2014 For personal use only 45 NPAT cents per share 40 Adjusted NPAT cents per share Cents per share 35 30 25 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 NPAT cents per share 9.3 11.7 13.3 14.1 16.3 20.4 43.4 21.8 Adjusted NPAT cents per share 9.3 12.9 14.5 15.3
Slide 21: Funding
FUNDING • Facility from St George Bank (3 years to May 2016) For personal use only – limit $50 million at holding company level (including $10 million increase approved but still subject to completion of legal documentation) – $30 million drawn – $15 million available including $10 million increase
Slide 22: Outlook
For personal use only OUTLOOK • Market conditions • Business Outlook
Slide 23: Market Conditions
MARKET CONDITIONS • Premium rates For personal use only - Flat premium rates over period - Insurer competition restrains extent of increases achievable however opportunities with Insurers looking to partner for growth • Continued low interest rate environment • Moderate economic growth forecast but
Slide 24: Outlook
OUTLOOK • Pleasing underlying growth in soft market conditions - organic growth For personal use only expected to continue through broker network initiatives • Further growth and development in underwriting agency business with continued investment in capability in specific market segments • Good pr
Slide 25: Austbrokers Holdings Ltd - Macquarie Australia Conference May 2014
For personal use only AUSTBROKERS HOLDINGS LTD MACQUARIE AUSTRALIA CONFERENCE MAY 2014 MARK SEARLES CEO & MANAGING DIRECTOR
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