Slide 1: FY19 Results Announcement for the Full Year Ended 30 June 2019
20 August 2019 The Manager Market Announcements Office Australian Securities Exchange Ltd Level 6, Exchange Centre 20 Bridge Street Sydney NSW 2000 FOR RELEASE TO THE MARKET Dear Sir / Madam, Re: AUB Group Results Announcement for the Full Year Ended 30 June 2019 Please find attached for immediate r
Slide 2: FY19 Results Overview
20 August 2019 FY19 Results Overview Performance below expectation driven by Risk Services and one-off costs Summary: Adjusted NPAT1 $46.4 million (FY18: $44.6 million) up 4.1%. Adjusted earnings per share 66.64 cents down 3.1%2. Reported Net Profit After Tax $48.4 million (FY18: $46.5 million
Slide 3: Highlights by operating division
Highlights by operating division: Australian Broking3 3.7% increase in profit contribution from Australian Broking over the period, contributing $52.8 million (FY18: $50.9 million) to the Group. Excluding Austbrokers Canberra from both years’ results, pre-tax profit contribution from Australian Br
Slide 4: Dividends, Strategic Outlook and Financial Outlook for FY20
Dividends The Board has declared a fully-franked final dividend of32.5 cents per share, bringing the total dividends declared for the year to 46.0 cents, an increase of 1.1% on FY18. This dividend is payable on 08 October 2019 to shareholders on the record date of 05 September 2019. Dividend Reinves
Slide 5: Webcast
Webcast Michael Emmett, Chief Executive Officer and Managing Director, and Mark Shanahan, Chief Financial Officer, will host a teleconference webcast today at 10.00am AEST– details below: Teleconference link: https://s1.c-conf.com/diamondpass/aubgroup-10001395-invite.html Webcast audience link: http
Slide 6: Financial Results Summary
AUB GROUP FY19 PRESENTATION OF FINANCIAL RESULTS Table 1 Financial Results Summary FIN AN C IAL R ESU L TS SU MMAR Y F Y19 F Y18 Var ianc e $ 000 $ 000 % 1 Revenue from ordinary activities 307,178 278,479 10.3% Adjusted NPAT 2 46,379 44,554 4.1% Profit before tax 62,130 68,148 -8.8% Net profit after
Slide 7: Reconciliation of Adjusted NPAT to Reported NPAT
Table 2 Reconciliation of Adjusted NPAT to Reported NPAT1 The Reported profits of the business include non-operational items, such as profits and losses on sale of equity interests, fair value adjustments to carrying values on ownership changes, changes to estimates or payments of deferred contingen
Slide 8: Management Presentation of Results
Table 3 Management Presentation of Results1 A number of the businesses in the AUB Group are associates and are not consolidated in the financial statements. In order to give a more comprehensive view of performance, the following table aggregates 100% of these businesses’ revenues and expenses with
Slide 9: FY19 Results Presentation
AUB GROUP . FY19 Results Presentation August 2019 Mike Emmett CEO and Managing Director Mark Shanahan CFO
Slide 10: FY19 Performance Overview
FY19 Performance Overview
Slide 11: FY19 Performance Snapshot - Group
FY19 PERFORMANCE SNAPSHOT - GROUP 3.2% Adjusted (3.1%) Underlying 66.64 cents per $541.6mn Earnings per share Revenue1 FY18 FY18 $524.7mn Share3 68.80 cents per share Underlying (1.0%) $88mn in M&A transactions EBITA 25.0% M&A Activity Key Transactions include equity step- Margin1 FY18 ups in Adroit
Slide 12: FY19 Performance Breakdown - Group
FY19 PERFORMANCE BREAKDOWN - GROUP FY18 to FY19 Adjusted NPAT1 Breakdown ($mns) +14% +4% FY19 Canberra and one-off costs 50.8 2.3 0.4 3.7 1.1 0.6 3.1 2.3 46.4 3.6 44.6 Core Insurance Operations FY18 Organic Growth 2 Acquisition Growth 3 FY19 Canberra Health & FY19 FY19 Canberra IT project Corporate
Slide 13: FY19 Performance Snapshot - Divisional
FY19 PERFORMANCE SNAPSHOT - DIVISIONAL Vs. FY18 AUSTRALIAN NEW ZEALAND UNDERWRITING comparative RISK SERVICES2 period BROKING2 BROKING AGENCIES 1.8% Underlying1 Revenue $343.6mn $50.6mn 19.3% $61.4mn 8.5% $85.9mn (2.4%) 4.1% (excl. Canberra) 0.2% Underlying1 EBIT Margin 29.7% 33.6% (3.2%) 33.8% (1.1
Slide 14: FY19 Performance Breakdown – By Divisions
FY19 PERFORMANCE BREAKDOWN – BY DIVISIONS FY18 to 19 Adjusted NPAT1 Divisional Breakdown ($mns) +4% +10% 1.6 4.5 2.8 0.8 0.6 48.8 2.3 46.4 4.4 44.6 44.3 0.3 Core Insurance Operations Pre-Tax FY18 (incl. FY18 Canberra FY18 (excl. Australian New Zealand Underwriting Risk Services Corporate Tax FY19 (e
Slide 15: Strong Balance Sheet and Capital Position
STRONG BALANCE SHEET AND CAPITAL POSITION Consolidated Balance Sheet Overview Movement FY19 FY18 Movement (%) ($mns) ($mns) ▪ Investments (the aggregate of Cash 70.0 58.7 11.3 19.3% Investments in Associates and Intangible Assets and Goodwill) Cash - Trust 150.0 100.0 50.0 50.0% have increased to $5
Slide 16: Effectively Leveraging and Managing Debt
EFFECTIVELY LEVERAGING AND MANAGING DEBT Total Group Debt on a look-through basis1 ($mns) 160.8 36.7 44.0 13.5 134.0 30.9 22% 23.0 24.6 55.5 FY19 AUB Group Gearing4 (FY18 31%) 99.5 55.5 Total AUB Group Debt FY18 Corporate Debt 2 Consolidated Entity Associates Total AUB Group Debt FY19 Associates Deb
Slide 17: Strong Cash Generation
STRONG CASH GENERATION AUB Corporate Entity Cash Movement ($mns) Operating cash generated 63.9 113.2 50.1 17.0 33.1 45.8 17.2 30.4 11.0 Dividends Received Net Corporate Exp. Operating Cash Flow Dividends Paid Capital Raising Net Investing Activity 1 Net Financing Activity FY19 Opening FY19 Closing C
Slide 18: Disciplined Approach to M&A
DISCIPLINED APPROACH TO M&A M&A Transaction Activity, FY14-FY19 ($mns) ▪ AUB has undertaken 54 acquisitions and bolt-ons over the past 6 years valued at 12 257 Acquisitions Bolt-on ~$250mn in M&A activity. ▪ AUB intends to continue to supplement organic growth by relevant acquisitions 76 and start-u
Slide 19: Improving Shareholder Returns a Priority
IMPROVING SHAREHOLDER RETURNS A PRIORITY Dividend Per Share (Cents) Adjusted EPS1 (Cents per share) CAGR Interim Dividend CAGR Final Dividend +1% +6% -3.1% +8% 45.5 46.0 68.80 66.64 42.0 63.25 38.5 39.7 40.0 59.83 59.30 59.57 13.5 56.20 35.5 13.5 31.0 12.0 12.0 12.5 49.45 12.0 44.18 25.5 11.0 39.16
Slide 20: AUB Group Business Review and Outlook
AUB Group Business Review and Outlook
Slide 21: FY20 Execution Priorities
FY20 EXECUTION PRIORITIES Enhance our core business partner proposition with improved product and capacity 1 offerings 2 Implement best-in-house technology features across the Group 3 Reduce Corporate costs and drive efficiency through cross-network synergies Consolidate our core businesses for scal
Slide 22: Stable and Predictable Operational Drivers
STABLE AND PREDICTABLE OPERATIONAL DRIVERS ~3.2bn Premium under influence across the AUB network 90% ~8% increase FY19 Premium in average premium per client Retention (excl. rate increases) CAGR over the last 3 years ~1.2mn …supported by a small but consistent increase in average policies per client
Slide 23: Track Record of Delivering Growth
TRACK RECORD OF DELIVERING GROWTH Underlying Revenue1 ($mns) Underlying EBITA Margin1 (%) CAGR +3% +11% 29.1 27.8 28.1 27.9 26.5 25.9 25.6 25.6 26.0 525 542 25.0 488 445 402 351 302 276 218 240 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Adjust
Slide 24: Core Insurance Operations - Our Scale and Reach
CORE INSURANCE OPERATIONS - OUR SCALE AND REACH NT 4 locations QLD 72 locations ~11% ~450 AUB Share of the Locations Intermediated GI WA Market (AU) 28 locations NSW 124 locations SA ACT 24 locations 7 locations VIC 47 locations >3,000 ~21% staff TAS New 4 locations Zealand AUB Share of the GI 140 S
Slide 25: Taking Control of Our Core Capabilities
TAKING CONTROL OF OUR CORE CAPABILITIES Austbrokers Insurance Member Services (AIMS) AUB Group will take 100% control of AIMS in Q2 FY20 AIMS will serve as the member UNDERWRITING ACCOUNTING services division with four key areas of CAPACITY AND AND responsibility PLACEMENT COMPLIANCE ▪ Sourcing and
Slide 26: FY20 Outlook and Guidance
FY20 OUTLOOK AND GUIDANCE During FY20 the group anticipates strong growth from Insurance Broking in Australia and New Zealand as well the Underwriting Agencies. This will be reduced by several factors: ▪ Reduced interest rates; ▪ Lease Accounting Changes; ▪ Reduced revenues in Canberra, post restruc
Slide 27: Questions
QUESTIONS
Slide 28: Thank You
THANK YOU
Slide 29: 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.