Australian Unity Ltd · ASX:AYUPA
Australian Unity — H1 FY2019 Earnings Presentation
27 slides from Australian Unity's earnings presentation, Mar 5, 2019
Slide 1: Investor update: Financial results for the half-year ended 31 December 2018
Australian \y 7, Investor update Financial results for the half-year ended 31 December 2018 Health | Wealth | Living
Slide 2: Investor presentation teleconference invitation
Australian Unity investor update Australian \y 7, Australian Unity Limited is pleased to invite you to our investor presentation teleconference for the half-year ended If you are unable to attend, you are welcome to email 31 December 2018 any queries you may have to: pchin@australianunity.com.au Dat
Slide 3: Important information
Important information This notice relates to all information provided as a part of this presentation including, without limitation, these slides, associated presentations and any oral presentations by the representatives of Australian Unity Limited ACN 087 648 888 (AUL) or its officers, directors, e
Slide 4: Agenda and presenters
Australian Unity Overview & group highlights Business results Summary & outlook . Paul Ryan Alex Smith Esther Kerr-Smith Darren Hann General Manager Commercial, General Manager Commercial, Head of Finance & Strategy Deputy Head of Finance & CFO Finance & Strategy - Retail Finance & Strategy - IAL
Slide 5: Overview & group highlights
Australian \y 7, Health | Wealth | Living
Slide 6: Trusted mutual, diverse and expanding portfolio
Trusted mutual Diverse & expanding portfolio Australian Unity More than 175 years as an Australian mutual 270,000+ members; almost 1 million customers Profits reinvested into programs and services that benefit members and customers, and create community value Prudentially regulated by the Australian
Slide 7: What are our priorities for FY19?
What are our priorities for FY19? Australian ty] Development pipeline HDS operating model for retirement communities Sustained efficiencies Herston Quarter execution Maintain strong and flexible balance sheet Health | Wealth | Living
Slide 8: We're here to help people thrive
Australian Unity We’re here to help people thrive | OUR VALUES: BOLD | WARM | HONEST O00 CREATE A GREAT PUT OUR CUSTOMERS DELIVER SUSTAINABLE MAKE A DIFFERENCE PLACE TO WORK FRONT AND CENTRE PERFORMANCE IN OUR COMMUNITY If we take care of our people Customers and members have We’ve been here for 175
Slide 9: HY19: Solid performance against broad ambitions
HY19: Solid performance against broad ambitions Aust Continued considerable investment in human services operations, such as the establishment of Indigenous Business Services and the completion of the integration of Home & Disability Services (HDS) clients to the National Disability Significantly pr
Slide 10: HY19 key metrics
HY19 key metrics 60 50 [Full year operating earnings Operating earnings ($m) Half year operating earnings 483 38.9 87 38 23 157 FY2015 15.3) FY2016 FY2017 FY2018 FY2019 80.0 70.0 Australian \y 7, Net profit after tax ($m) MFull year profit mHalf year profit _™ Profit on sale of GUCH Half year profit
Slide 11: HY19 key metrics: Adjusted EBITDA and funding maturity profile
HY19 key metrics 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 5.0 Adjusted EBITDA'$m December 2017 ml December 2018 404 04 Independent & Assisted Living Retail Wealth & Capital Markets ‘Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its business segments. Th
Slide 12: Gearing analysis and interest cover
Australian Gearing analysis and interest cover Unity Ratios for Australian Unity Bonds - Tranche 1 at 31 December 2018: = Gearing at 26.8% based on covenant gearing calculations = Interest cover ratio! at 3.86 times 40% 4 50% 4 450 400 30% + 20% 4 150 10% + 100 50 0% - 0 June 2016 December June 2017
Slide 13: Independent & Assisted Living
Australian Unity
Slide 14: Integration and collaboration to drive diversification and growth
Integration and collaboration Austigliony 7, to drive diversification and growth Total segment revenue ($m) = Increase in total segment revenue by 6.0% reflected platform-wide growth with the exception of December 2017 m December 2018 Residential Communities which saw a decline in revenue in part du
Slide 15: IAL highlights
IAL highlights* oe Home & Disability Services = Revenue growth of 8.4% to $1475 million = Completed the transition of state-funded disability clients to NDIS funding = Indigenous Business Services established 1 July 2018 with a focus on Aboriginal Home Care = Reached 3,400 home care packages under m
Slide 16: IAL outlook
IAL outlook Austgnty . Continue to develop an integrated care model that combines the capabilities and services in Home & Disability Services and Remedy Healthcare = The business will continue to refine the HDS branch operating model, leadership, and service and safety culture while shaping an appro
Slide 17: Retail
Australian Unity
Slide 18: Successful half-year amidst mixed operating conditions
Successful half-year amidst mixed operating conditions Slight decrease in total segment revenue of 1.0% compared to the prior corresponding period Adjusted EBITDA increase of 5.6% driven principally by a steady underwriting experience in the health insurance business and continued net interest margi
Slide 19: Retail highlights
Retail highlights* Health insurance Policyholders decreased by 1.0% to 191,874 G0 June 2018: 193,771) reflecting declining industry growth and a considered strategy to review profitability of distribution channels Delivered lowest average premium increase to members in 18 years, slightly above the i
Slide 20: Retail outlook
20 Australian Retail outlook Unity = Pressure on affordability and changing demography remain key factors for private health insurance industry = Latest health insurance reforms to be introduced in April 2019, which include new clinical categories, will remain a key focus. The business is seeking to
Slide 21: Wealth & Capital Markets
Australian Unity
Slide 22: Building strong and sustainable growth
Australian \y 7, Building strong and sustainable growth Total segment revenue ($m) = Platform recorded a 9.8% increase on prior corresponding period in total segment revenue to m December 2017 m December 2018 $88.4 million for the half-year to 31 December 2018 805 88.4 = Strong result of 54.0% incre
Slide 23: Wealth & Capital Markets highlights
ae a oe 23 Wealth & Capital Markets highlights* Advice New management team established, with a focus on positioning the business for growth, achieving increased operating scale and delivering longer term strategic priorities Minor increase in adviser numbers to 173 GO June 2018: 172) Recruitment of
Slide 24: W&CM outlook
Australian W&CM outlook Unity = Period ahead should yield opportunities for the platform to offer customers valuable investment and financial opportunities, and to deliver important benefits to many areas of the community = The Herston Quarter project continues to be a key focus as it embodies one e
Slide 25: Royal Commission into Aged Care Quality and Safety
Royal Commission into Aged Care Quality Austrglion > and Safety . Royal Commission into Aged Care Quality and Safety was announced in September 2018 and commenced public hearings in the week of 11 February 2019 . As both an aged care provider and an organisation committed to advocating on behalf of
Slide 26: Customer-focused business shaped for future growth
Customer-focused business shaped for Aust future growth = Purposefully addressing social infrastructure challenges with some of the most significant projects in the more than 175-year history of the Group, including new retirement community facilities and locations, and the Herston Quarter redevelop
Slide 27: Australian
Australian Health | Wealth | Living