Slide 1: AUB Group Ltd Full Year Results
AUB GROUP LTD FULL YEAR RESULTS FOR THE PERIOD ENDED 30 JUNE 2017 (FY17) 28TH AUGUST 2017 Page 1 - AUB Group Ltd FY17 Results
Slide 2: 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.
Slide 3: Overview
OVERVIEW MARK SEARLES MANAGING DIRECTOR & CEO
Slide 4: Performance Highlights
PERFORMANCE HIGHLIGHTS Delivering strong profit and revenue growth Underlying1 Revenue increase +9.8% Underlying1 EBITA increase +9.9% Underlying1 NPBT (pre-amortisation) +11.9% Adjusted NPAT growth to $40.4M2 +7.5% Organic growth the key driver across all business areas Client policy growth +5.0% E
Slide 5: Group's Approach Delivering
GROUP’S APPROACH DELIVERING Disciplined execution of our strategy supporting continuous growth. $m 70 60 50 40 30 20 10 0 FY12 FY13 FY14 FY15 FY16 FY17 Total Australian Broking profit Total Group pre-tax Profit before Corporate Expenses Corporate Expenses ( after recoveries) Adjusted NPAT Linear (To
Slide 6: Business Area Highlights
BUSINESS AREA HIGHLIGHTS Group • Client policy growth (+5%) • New structure to facilitate divisional growth • Employee engagement increased across the Group • Growth in Leadership Academy graduates and new programs being developed Australian Broking Underwriting Agencies • Solid organic results in a
Slide 7: Financial Performance
FINANCIAL PERFORMANCE JODIE BLACKLEDGE CFO
Slide 8: Key Results
KEY RESULTS Growth in all businesses in a flat premium rate environment. • Strong underlying management results with premium FY17 FY16 GROWTH rates flat year on year – growth primarily organic. Underlying Management Results1 • Underlying performance translates to growth in key performance metrics: R
Slide 9: AUB Group Profit Contribution Analysis
AUB GROUP PROFIT CONTRIBUTION ANALYSIS Execution of strategy delivers growth and diversification. Adjusted Profit Contribution to AUB Group (after tax and non-controlling interests) 45 40 MILLION $ 35 30 25 20 FY16 Risk Services New Zealand Australian Broking Underwriting Divested Corporate Tax FY17
Slide 10: Insurance Broking – Australia
INSURANCE BROKING – AUSTRALIA Solid organic growth in a flat market • Broker profits (before non-controlling interests) increased in a flat premium rate environment, with organic growth driven by increased clients and policy count. Broker margins increased slightly. • Premium rates flat year on year
Slide 11: Insurance Broking – New Zealand
INSURANCE BROKING – NEW ZEALAND Increasing scale and further consolidating market position. • Pre-tax profit contribution to AUB Group of $5.5m ($2.9m in FY16), with a strong contribution from Runacres (included for six months in the prior period). Organic growth delivered despite tough rate environ
Slide 12: Underwriting Agencies
UNDERWRITING AGENCIES Return to growth in a competitive market. • Pre tax profit contribution from Underwriting Agencies of $12.5m, up $2.2m (21.1%) on prior year, with strong performances in plant & equipment, commercial and strata agencies. • Increase in policy count, up 12.7% is a key driver of g
Slide 13: Risk Services
RISK SERVICES Growing profit and capability. • Pre tax profit contribution increased to $7.5m up 5% with acquisitions by equity partners and organic revenue growth. • Double digit organic revenue growth continued in FY17, as business expanded geographically and into new services. The investment in r
Slide 14: Balance Sheet & Funding
BALANCE SHEET & FUNDING Balance sheet remains strong. Group balance sheet: Consolidated balance sheet ($M) 30.06.17 30.06.16 • Investments (the aggregate of Investments in Associates Cash 63.5 70.9 and Intangible Assets and Goodwill) total $405.6m up $25m (30 June 2016: $380.6m), with increases from
Slide 15: Dividends Per Share
DIVIDENDS PER SHARE • Final dividend per share of 29.5 cents brings full year dividend to 42.0 cents • DRP remains suspended for the final dividend. 45 42.0 38.5 39.7 40.0 40 35.5 35 31.0 30 25.5 29.5 28.0 CENTS PER SHARE 25 26.5 27.7 20.5 22.5 24.5 18.0 20 21.5 13.0 15.0 17.0 15 13.5 15.0 11.5 10 8
Slide 16: FY18 Priorities
FY18 PRIORITIES The Group will continue its disciplined focus, building on the strength of our Business Model; Operating Model and Group Strategy • Business Model: we will continue to maximize partnerships and our ‘skin in the game’ model to continue to drive both organic growth and via selected acq
Slide 17: FY18 Outlook
FY18 OUTLOOK • There was evidence of single digit percentage premium rate increases in Australia in the last quarter of FY17 and an expectation that insurers will continue to execute premium rate increases at similar level into FY18. New Zealand remains competitive, with early signs of stabilisation
Slide 18: Appendices
APPENDICES
Slide 19: Appendix – Adjusted NPAT
APPENDIX 1 – ADJUSTED NPAT 1 R EC ON C IL IATION OF AD JU STED N PAT TO R EPOR TED N PAT F Y17 F Y16 Var ianc e $ 000 $ 000 % Net Profit after tax attributable to equity holders of the parent 32,988 42,002 -21.5% Reconciling items net of tax and non controlling interest adjustments for: Adjustments
Slide 20: Appendix – Management Results
APPENDIX 2 – MANAGEMENT RESULTS1 MAN AGEMEN T PR ESEN TATION OF R ESU L TS F Y17 F Y16 Var ianc e Var ianc e $ 000 $ 000 $ % Australian Broking revenue 312,720 308,316 4,404 1.4% Australian Broking expenses (218,967) (216,739) (2,228) 1.0% EBIT - Aus tr alian Br ok ing 93,753 91,577 2,176 2.4% New Z
Slide 21: Appendix – Cashflow
APPENDIX 3 - CASHFLOW C ASH FL OW F Y17 F Y16 $ 000 $ 000 Cas h flows fr om oper ations 56,412 34,038 Cash flows from investing activities Acquisitions¹ (9,643) (45,105) Sales proceeds / loan repayments 7,135 24,740 Plant equipment / other (6,457) (5,032) (8,965) (25,397) Cash flows from financing a
Slide 22: Appendix – Operating Segment Reconciliation
APPENDIX 4 – OPERATING SEGMENT RECONCILIATION R EC ON C IL IATION OF OPER ATIN G SEGMEN TS Cons olidated Cons olidated F Y17 F Y16 Insurance Risk Insurance Risk Total Total Intermediary Services Intermediary Services $000 $000 $000 $000 $000 $000 Profit before tax and after non-controlling interests
Slide 23: Thank You
THANK YOU