Australian Unity Ltd · ASX:AYUPA
Australian Unity — FY2022 Earnings Presentation
32 slides from Australian Unity's earnings presentation, Sep 7, 2022
Slide 1: ASX Announcement
ASX Announcement 7 September 2022 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 2022. -end- This announcement has been authorised for distribution to the ASX by: The Bo
Slide 2: Investor update: Financial results for the full-year ended 30 June 2022
Australian Unity Limited Investor update Financial results for the full-year ended 30 June 2022
Slide 3: Investor presentation teleconference invitation
Australian Unity Limited is pleased to invite Date Thursday 8 September 2022 you to our investor presentation teleconference for the full-year ended 30 June 2022 Time 9:30am to 10:30am AEST To access the teleconference participants must register in advance via the link below: https://registrations.e
Slide 4: 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 and each of its respective officers, directors, emp
Slide 5: Agenda and presenters
Agenda and presenters 1. Overview and Group highlights 2. Business results 3. Summary and outlook Rohan Mead Belinda Seal Adam Vise Group Managing Director and CEO Executive General Manager – Growth, Strategy Group Treasurer and & Finance General Manager – Strategy & Impact AUL FY2022 Investor prese
Slide 6: Overview and Group highlights
Overview and Group highlights AUL FY2022 Investor presentation 5
Slide 7: Overview of Australian Unity
Overview of Australian Unity Mutual wellbeing company with a commitment to members, customers and community • Established in 1840, a member-owned company with more than 380,000 members and more than 650,000 customers • Diversified but thematically-linked portfolio of health, wealth and care business
Slide 8: FY2022 operational review
FY2022 operational review Advancing strategic ambitions • Delivered a solid and improved financial result despite continued COVID-19 adverse impacts and challenges. Profit after tax for the period was $45.7m, an increase of 38.9% on the prior corresponding period (PCP) of $32.9m • Our Impact as meas
Slide 9: FY2022 operational review cont.
FY2022 operational review cont. COVID-19 • Responded by maintaining, and where possible improving, levels of service and responsiveness to the needs and wellbeing of members and customers, while pursuing efficiency measures to mitigate risks and curtail expenditures. Also focused on the welfare of e
Slide 10: FY2022 priorities
FY2022 priorities Realise the value of the modern mutual Created the building blocks to form deeper relationships Build social infrastructure reach with members, based on improving wellbeing outcomes Continued to realise and extend our presence and superior interaction with the Group within the soci
Slide 11: Community & Social Value Framework
Community & Social Value Framework A research based Governance, approach to Expert methodology Robust outcomes assurance and Wellbeing advisor framework recognition • We were Australia’s first member- • A best in class partnership with • Our framework focuses on • Our framework is mandated and owned
Slide 12: Community & Social Value FY2022
Community & Social Value FY2022 $1,632m in total community and social value for FY2022 (preliminary result1) $353m Supporting living in place FY2022 FY2021 Priority outcomes ($m) ($m) Better access to healthcare 699 480 Improved health outcomes 221 119 $699m $475m Better access $122m Building financ
Slide 13: Community & Social Value FY2022: System v individual impact
Community & Social Value FY2022 System v individual impact (preliminary result1) $717m $916m 1Our Impact Report 2022, containing our final social impact value created and the basis of preparation, which details the CSV framework applied in estimating this value, is expected to be released in October
Slide 14: FY2022 financial summary
FY2022 financial summary Key financial statistics FY2022 FY2021 Change Revenue and other income attributable to members ($m)1 1,543.1 1,443.1 99.9 Revenue from benefit funds ($m)1 (181.8) 262.9 (444.7) Total revenue and other income1 1,361.3 1,706.1 (344.8) Total expenses, excluding financing costs
Slide 15: FY2022 key metrics
FY2022 key metrics Profit after income tax1 ($m) 60.0 50.0 40.0 30.0 48.8 50.3 45.7 20.0 32.9 10.0 9.1 0.0 FY2018 FY2019 FY2020 FY2021 FY2022 1 Included in the FY2018 result was a profit from discontinued operations of $66.9m from the divestment of the Group’s corporate health insurance subsidiary,
Slide 16: FY2022 segment earnings
FY2022 segment earnings Adjusted EBITDA1 ($m) FY2021 FY2022 120.0 98.7 100.0 94.9 81.8 80.0 71.1 60.0 38.7 40.0 27.3 20.0 0.0 Independent & Assisted Living Retail Wealth & Capital Markets 1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its business segments. T
Slide 17: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience Maturity profile 1 30 June 2021 ($m) Orange indicates drawn debt which was Series C and Series D AUL Bonds Other external loans repaid in the period 400 Drawn Revolving Loan Repaid Revolving Loan and blue indicates new 350 Retirement Village Investme
Slide 18: Gearing analysis and interest cover
Gearing analysis and interest cover Covenant gearing ratio 60% 800 10.00 Interest cover ratio1 700 9.00 50% 8.00 600 Debt Capacity ($m) 7.00 40% 500 6.00 Gearing Ratio 30% 400 5.00 4.00 300 20% 3.00 200 2.00 10% 100 1.00 0% 0 - Dec 18 Jun 19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Jun-19 Dec-19 Ju
Slide 19: Independent & Assisted Living
Independent & Assisted Living AUL FY2022 Investor presentation 18
Slide 20: Independent & Assisted Living (IAL)
Independent & Assisted Living (IAL) • Total segment revenue increase of 17.0% to $609.1m compared to the PCP—despite significant disruption as a result of the COVID-19 pandemic Adjusted EBITDA ($m) • Also recorded, as other income, a $19.1 million business combination gain on the acquisition of Gree
Slide 21: IAL highlights
IAL highlights Health Services Home Care Services (HCS) Residential Communities (Remedy Healthcare & Dental) Developments • Adjusted EBITDA of $38.1m—a gain of • Acquired Greengate Partnership Pty Ltd • Remedy Healthcare increased revenue • Continued to work closely with $8.7m on PCP. Achieved throu
Slide 22: IAL outlook
IAL outlook • COVID-19 expected to continue to present significant ongoing challenges and disruption throughout the next financial year—the business is well positioned and has demonstrated its ability to continue to deliver essential services to its customers. • From 1 October 2022, the Australian N
Slide 23: Retail
Retail AUL FY2022 Investor presentation 22
Slide 24: Retail
Retail • Delivered a solid result for the year, with an adjusted EBITDA of $94.9m—16.0% higher than the PCP Adjusted EBITDA ($m) • Overall revenue of $716.1m represented a 1.6% increase on the PCP FY2021 FY2022 94.9 81.8 • Total operating expenses were $621.1m—$1.6m or 0.3% lower than the PCP. This
Slide 25: Retail highlights
Retail highlights Australian Unity Health Limited Australian Unity Bank Limited Private health insurance (PHI) • Reduction in PHI policyholders, down 3.7% to 168,317 • Strong lending growth with $420.9m of loans funded, a 138.6% increase • Overseas visitor cover policyholders increased 4.9% over the
Slide 26: Retail outlook
Retail outlook • Cautiously positive outlook, notwithstanding continued uncertainties flowing from COVID-19. It is anticipated most health insurance claims deferred due to restrictions on healthcare services during the pandemic will catch up and bank credit growth will slow over the coming year with
Slide 27: Wealth & Capital Markets
Wealth & Capital Markets AUL FY2022 Investor presentation 26
Slide 28: Wealth & Capital Markets (W&CM)
Wealth & Capital Markets (W&CM) • Total segment revenue decrease of 7.1% compared to PCP reflecting continuing impacts from the global pandemic and investment market downturn during the second half of the financial year Adjusted EBITDA ($m) • Revenue included $11.5m related to the recovery of costs
Slide 29: W&CM highlights
W&CM highlights Property & Investments Life & Super Advice Trustees social infrastructure • FUMA of $9.90b (2021: $10.46b), impacted by • Assets under management increased to $4.92b • Funds under management • FUA growth to $9.99b • 9.6% increase in revenue market movements (2021: $4.10b) and adminis
Slide 30: W&CM outlook
W&CM outlook • Period ahead should continue to provide customers valuable investment opportunities and to deliver increased community and social value. The expansion of funding to the childcare property and specialist disability accommodation sectors is an example of the value that Australian Unity
Slide 31: 10 year growth strategy
10 year growth strategy Growth areas Realising a Accelerate Build social modern momentum in infrastructure mutual health & human reach services AUL FY2022 Investor presentation 30 30 30
Slide 32: Real Wellbeing
Australian] Real Wellbeing