Australian Unity Ltd · ASX:AYUPA
Australian Unity — Debt Investor Presentation (September 2019)
37 slides from Australian Unity's debt investor presentation, September 2019
Slide 1: Australian Unity Limited Investor presentation
Australian Unity Limited Investor presentation Series C Australian Unity Bonds – Tranche 1 and Series D Australian Unity Bonds – Tranche 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer The information contained in this document has been prepared by Australian Unity Limited ABN 23 087 648 888 (“Company”) in connection with a proposed offer of Series C Australian Unity Bonds – Tranche 1 and Series D Australian Unity Bonds – Tranche 1 (“Offer” and “Bon
Slide 3: Table of contents
Table of contents Section 1 Overview of the Offer Page 4 Section 2 Overview of Australian Unity Page 7 Section 3 Financial information Page 11 Section 4 Key risks Page 20 Section 5 Offer summary Page 24 3
Slide 4: Section 1: Overview of the Offer
Section 1 Overview of the Offer
Slide 5: Overview of the Offer
Overview of the Offer Issuer • Australian Unity Limited ABN 23 087 648 888 (“Australian Unity”) - A national health, wealth and living organisation providing services to more than 700,000 Australians - Owned by and run for the benefit of approximately 270,000 members Overview • The offer comprises t
Slide 6: Overview of the Offer
Overview of the Offer Interest Rate • Floating Interest Rate • The Interest Rate for each Series of Bonds is the sum of the Market Rate plus the Margin for that Series of Bonds Margin • Series C Australian Unity Bonds: the Margin is expected to be in the range of 2.00 percent to 2.20 percent per ann
Slide 7: Section 2: Overview of Australian Unity
Section 2 Overview of Australian Unity
Slide 8: Overview of Australian Unity
Overview of Australian Unity Established in 1840—one of Australia’s first member-owned wellbeing companies Around 270,000 members; more than 700,000 customers Mutual with growing Profits reinvested into programs and services that benefit members and customers, and community impact create commu
Slide 9: Australian Unity portfolio
Australian Unity portfolio Australian Unity has a stated purpose of existing to help people thrive, by building a commercial and sustainable portfolio of businesses that foster individual and community wellbeing The Australian Unity Group portfolio is made up of many interconnected businesses he
Slide 10: Solid progress on the year's priorities
Solid progress on the year’s priorities Development pipeline for HDS progress Transformation retirement communities PHI focus Herston execution Balance sheet 10
Slide 11: Section 3: Financial information
Section 3 Financial information
Slide 12: Solid performance against broad ambitions
Solid performance against broad ambitions Considerable investment in human services operations, including a significant improvement in the Home & Disability Services (“HDS”) business; successful navigation of an uncertain regulatory period for the health insurance business; and progressed person-c
Slide 13: FY19 key metrics
FY19 key metrics Profit after income tax1 ($m) Profit after income tax from continuing 60.0 operations2 ($m) 53.0 60.0 51.5 53.0 50.0 46.8 50.0 40.0 37.7 40.0 34.6 35.6 34.6 35.6 29.6 30.0 29.6 30.0 20.0 20.0 10.0 0.0 10.0 (10.0) 0.0 (20.0) (15.3) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2014 FY2
Slide 14: FY19 segment earnings growth
FY19 segment earnings growth Adjusted EBITDA ($m) FY2018 FY2019 80.0 74.4 70.0 64.6 60.0 50.5 48.2 50.0 40.0 36.9 30.0 20.0 10.0 0.0 (10.0) (3.3) Retail Wealth & Capital Markets Independent & Assisted Living 14
Slide 15: Rationale for issuing Bonds
Rationale for issuing Bonds Improve and lengthen debt maturity profile The issue of Bonds and cancellation of AYUHB which participate in the Reinvestment Offer will have the effect of lengthening and diversifying the debt maturity profile of the Australian Unity Group The resulting debt maturity
Slide 16: Relevant financial ratios
Relevant financial ratios The table below sets out certain key financial ratios that Australian Unity considers relevant to its financial position. These ratios differ to those described in regulation 6D.2.06 of the Corporations Regulations Financial ratio1 FY17 FY18 FY19 Covenant Gearing Ratio =
Slide 17: IAL highlights
IAL highlights* Home & Disability Residential Development Remedy Healthcare Dental Services Communities Construction commenced, Grew revenue by 1.2% to Six dental clinics Revenue growth of 13.3% Owns and operates 20 progressed or completed $25.9 million, driven operating in Victoria to $30
Slide 18: Retail highlights
Retail highlights* Health insurance Banking Delivered lowest average premium Big Sky Building Society Limited increase to members in 18 years, renamed Australian Unity Bank Limited approximately in line with industry Total assets increased by $108.6 million average to $886.0 million (2018: $77
Slide 19: Wealth & Capital Markets highlights
Wealth & Capital Markets highlights* Property Life & Super Investments Advice Trustees Assets under Assets under management Funds under management New leadership team Continued implementation management increased to and administration of $2.3 (FUM) of $6.0 billion established, with a focus
Slide 20: Section 4: Key risks
Australian Unity Section:4 Key risks
Slide 21: Key risks
Key risks A detailed outline of risks relating to the Bonds and Australian Unity Group’s business is contained in Section 4 of the Base Prospectus and Section 3 of the Offer Specific Prospectus. All potential investors should read both the Base Prospectus and the Offer Specific Prospectus in full be
Slide 22: Key risks
Key risks A detailed outline of risks relating to the Bonds and Australian Unity Group’s business is contained in Section 4 of the Base Prospectus and Section 3 of the Offer Specific Prospectus. All potential investors should read both the Base Prospectus and the Offer Specific Prospectus in full be
Slide 23: Key risks
Key risks A detailed outline of risks relating to the Bonds and Australian Unity Group’s business is contained in Section 4 of the Base Prospectus and Section 3 of the Offer Specific Prospectus. All potential investors should read both the Base Prospectus and the Offer Specific Prospectus in full be
Slide 24: Section 5: Offer summary
Australian Unity Section:5 Offer summary
Slide 25: Key terms and conditions
Key terms and conditions1 Issuer • Australian Unity Limited ABN 23 087 648 888 (“Australian Unity”) Series / Tranche • Series C Australian Unity Bonds – Tranche 1 • Series D Australian Unity Bonds – Tranche 1 Bonds • Interest paying, unsubordinated and unsecured debt obligations, issued by Australia
Slide 26: Key terms and conditions (cont.)
Key terms and conditions (cont.) 1 Interest Payment Dates • The first Interest Payment Date will be 14 January 2020. Interest will be paid quarterly in arrears on the following dates for each year as well as on the Maturity Date, or any earlier Redemption Date: - 14 January - 14 April - 14 July - 14
Slide 27: Key terms and conditions (cont.)
Key terms and conditions (cont.) 1 Not deposit • The payment obligations of the Issuer under the Bonds are not guaranteed or insured by any Subsidiary of Australian liabilities, Unity, any government, government agency, or compensation scheme of Australia or any other jurisdiction, or any other prot
Slide 28: Key terms and conditions (cont.)
Key terms and conditions (cont.) 1 Ranking on winding-up • A Holder’s claim will rank equally with holders of other Series of Bonds and equally with claims of all other unsubordinated and unsecured creditors (other than any obligations preferred by mandatory provisions of applicable law, including e
Slide 29: Comparison of AYUHB and Bonds
Comparison of AYUHB and Bonds 1 Feature AYUHB2 Bonds Issuer • Australian Unity Limited • Australian Unity Limited Guarantor • None • None Legal form • Unsecured debt obligations • Unsecured debt obligations Issue Price • $100 per AYUHB • $100 per Bond Term • 5 years • Series C Australian Unity Bonds
Slide 30: Comparison of AYUHB and Bonds (cont.)
Comparison of AYUHB and Bonds (cont.)1 Feature AYUHB2 Bonds Gearing covenant • 50% • 50% (but there are differences in the basis of computation of the covenant) Negative pledge • Yes, but it only applies to similar capital markets • Yes, but it only applies to similar capital markets indebtedness an
Slide 31: Ranking of Bonds
Ranking of Bonds 1 Amount drawn as at 30 June 2019, Type of instrument Existing debt obligations and equity adjusted for the amount to be raised under the Offer ($250m)2 Higher ranking Secured debt None None Unsubordinated unsecured debt Bank debt and Series B Australian $0.0m / $125.0m / $62.5m / $
Slide 32: Reinvestment Offer for Eligible AYUHB Holders
Reinvestment Offer for Eligible AYUHB Holders1 What is the Reinvestment • Under the Reinvestment Offer, Eligible AYUHB Holders can apply to have some or all of their AYUHB Offer purchased by Australian Unity with a portion of the proceeds received applied directly to the subscription of an equivalen
Slide 33: Reinvestment Offer for Eligible AYUHB holders
Reinvestment Offer for Eligible AYUHB holders1 Eligibility to participate in • You are an “Eligible AYUHB Holder” and eligible to participate in the Reinvestment Offer if: the Reinvestment Offer - you were a registered holder of AYUHB as at 7:00pm on 5 September 2019 (the “Reinvestment Record Date”)
Slide 34: Key dates for the Offer
Key dates for the Offer Record date for determining Eligible Members 16 August 2019 Record date for determining Eligible AYUHB Holders (7.00pm) 5 September 2019 Lodgement of Base Prospectus and Offer Specific Prospectus with ASIC 9 September 2019 Bookbuilds to determine Margins and Allocations to Sy
Slide 35: Key dates for the Bonds
Key dates for the Bonds Key dates for Series C Australian Unity Bonds – Tranche 1 First Interest Payment Date1 14 January 2020 Tenor Approximately 5 years Maturity Date 15 December 2024 Key dates for Series D Australian Unity Bonds – Tranche 1 First Interest Payment Date1 14 January 2020 Tenor Appro
Slide 36: Key contacts
Key contacts Name Title Phone Email Australian Unity Limited Esther Kerr-Smith Group Executive, Finance & Strategy +61 3 8682 6609 ekerr-smith@australianunity.com.au Adam Vise Group Treasurer +61 3 8682 6821 avise@australianunity.com.au Tim Steer Assistant Group Treasurer +61 3 8682 6022 tisteer@aus
Slide 37: Australian]
Ky Australian] Health | Wealth | Living
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