Slide 1: ASX cover letter: presentation on results for year ended 30 June 2016
25th August 2016 For personal use only The Manager Company Announcements Australian Securities Exchange Limited Level 6 Exchange Centre, 20 Bridge Street Sydney, NSW 2000 FOR RELEASE TO THE MARKET Dear Sir / Madam, Re: Presentation on results for the year ended 30th June 2016 Please find attached fo
Slide 2: AUB Group Ltd Annual Results FY2016
AUB GROUP LTD For personal use only ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2016 (FY2016) 25th AUGUST 2016
Slide 3: Notice
NOTICE For personal use only 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 pu
Slide 4: Overview
OVERVIEW For personal use only MARK SEARLES MANAGING DIRECTOR & CEO
Slide 5: FY16 Results Highlights
FY16 RESULTS HIGHLIGHTS Group continues to deliver growth despite challenging market conditions. For personal use only REPORTED NPAT GROWTH +20.4% Including after tax profit on sale of Strathearn ADJUSTED NPAT GROWTH +3.3% STRONG REPORTED EPS GROWTH +17.1% FY16 DIVIDEND INCREASED to 40cps Final divi
Slide 6: Group's disciplined approach delivering
GROUP’S DISCIPLINED APPROACH DELIVERING Business model, Operating model and Group strategy supporting continuous growth. For personal use only $’000s 70,250 60,250 50,250 40,250 30,250 20,250 10,250 250 FY12 FY13 FY14 FY15 FY16 Total Australian Broking profit Total Brokers Profit/Agencies/Risk servi
Slide 7: Performance Highlights
PERFORMANCE HIGHLIGHTS Growth drivers across all segments. For personal use only AUSTRALIAN BROKING NEW ZEALAND BROKING ORGANIC GROWTH DIVISION GROWTH TOTAL INCOME +2.1% GWP >$520M POLICY COUNT +1.0% TOTAL INCOME +146% PREMIUM FUNDING +2.7% PROFIT CONTRIBUTION +883% LIFE INSURANCE INCOME +7.0% ORGAN
Slide 8: Financial Performance
For personal use only FINANCIAL PERFORMANCE JODIE BLACKLEDGE CFO
Slide 9: Key Results
KEY RESULTS Growth in a challenging market. For personal use only • Reported NPAT increased to $42.0m up 20.4% on FY15, FY16 FY15 GROWTH including $6.2m after tax profit realised on sale of associates. REVENUE FROM ORDINARY 233,878 217,347 7.6% ACTIVITIES ($000S) • Adjusted NPAT increased 3.3% to $3
Slide 10: AUB Group Profit Contribution Analysis
AUB GROUP PROFIT CONTRIBUTION ANALYSIS Benefits of group diversification delivering. For personal use only Strong growth contribution from Risk Services and New Zealand demonstrates benefits of strategy and resultant income diversification. Adjusted Profit Contribution to AUB Group (after tax and no
Slide 11: Insurance Broking - Australia
INSURANCE BROKING - AUSTRALIA Organic income growth in a tough market. For personal use only • Organic Broker profits1 (before non controlling interests) increased in the context of falling premium rates and interest rates. This was achiev • ed through focusing on the growth levers that partners can
Slide 12: Insurance Broking – New Zealand
INSURANCE BROKING – NEW ZEALAND Performing ahead of expectations. For personal use only • Pre-tax profit contribution to AUB Group of $2.9m ($0.3m in FY15). • Having entered NZ 18 months ago, AUB Group NZ (including NZbrokers) are the 3rd largest broking group by GWP in the market and performance is
Slide 13: Underwriting Agencies
UNDERWRITING AGENCIES Strong policy growth and profit commissions in a competitive market. For personal use only • Revenues impacted by a reducing premium rate environment (down 9% on average), exacerbated by strong competition in Strata and Plant & Equipment and higher levels of investment (expense
Slide 14: Underwriting Agencies
UNDERWRITING AGENCIES Strong policy growth and profit commissions in a competitive market. For personal use only C h an ge i n Average Premi u m Rates vs • Average premiums down 9% in FY16 impacted by Po l i c y Co u nt FY1 6 premium rates and product mix. • However, underlying ‘Commission and Fee’
Slide 15: Risk Services
RISK SERVICES Growing profit and capability. For personal use only • Profit increased to $7.2m from strong organic growth, acquisitions by partners, and a full year contribution from Allied Health. • Organic growth in injury management and rehabilitation services underpinned by expanding insurer rel
Slide 16: Balance Sheet & Funding
BALANCE SHEET & FUNDING Balance sheet remain strong with increase facility for acquisitions. For personal use only Group balance sheet: GROUP BALANCE SHEET ($M) FY16 FY15 • Investments (the aggregate of Investments in Associates CASH 70.9 50.5 and Intangible Assets and Goodwill) have increased by $3
Slide 17: Dividends Per Share
DIVIDENDS PER SHARE For personal use only • Final dividend per share of 28 cents bringing full year dividend to 40 cents. • No DRP offered for final dividend, with the group preferring to utilise cash and debt capacity in the current low interest rate environment. 38.5 39.7 40.0 40 35.5 35 31.0 30 2
Slide 18: FY17 Priorities & Outlook
FY17 PRIORITIES & OUTLOOK For personal use only FY17 PRIORITIES Continued disciplined focus, building on the strength of our Business Model; Operating Model and Group Strategy. • Business Model: leverage ‘skin in the game’ model to continue to drive both organic growth and via acquisition. Two inves
Slide 19: Appendices
For personal use only APPENDICES AUB Group Ltd FY16 Results
Slide 20: Appendix - Adjusted NPAT
APPENDIX 1 - ADJUSTED NPAT R EC ON C IL IATION OF AD JU STED N PAT TO R EPOR TED N PAT ( 1) F Y2016 F Y2015 Var ianc e For personal use only $ 000 $ 000 % Net Profit after tax attributable to equity holders of the parent 42,002 34,887 20.4% Reconciling items net of tax and non controlling interest a
Slide 21: Appendix – Management Results
APPENDIX 2 – MANAGEMENT RESULTS(1) MAN AGEMEN T PR ESEN TATION OF R ESU L TS F Y2016 F Y2015 Var ianc e $ 000 $ 000 % For personal use only Australian Broking revenue 308,316 312,816 -1.4% Australian Broking expenses (221,196) (224,613) -1.5% Net profit - Australian Broking 87,120 88,203 -1.2% Profi
Slide 22: Appendix – Cashflow
APPENDIX 3 – CASHFLOW C ASH FL OW F Y2016 F Y2015 For personal use only $ 000 $ 000 Cash flows from operations 34,038 41,520 Cash flows from investing activities Acquisitions¹ (45,105) (35,861) Prepayment for acquisition of controlled entity Proceeds from disposal of associates Cash out flow from De
Slide 23: 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 For personal use only F Y2016 F Y2015 Insurance Risk Insurance Risk Total Total Intermediary Services Intermediary Services $000 $000 $000 $000 $000 $000 Profit before tax and after
Slide 24: For personal use only
For personal use only