Slide 1: 1H22 Results
2022 Steadfast Group 1H22 Results Investor Presentation 22 February
Slide 2: Table of Contents
Table of Contents 1H22 Results Investor 03 1H22 Highlights Presentation 11 1H22 Financial Summary 20 Appendices 2
Slide 3: 1H22 Highlights
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Slide 4: Increase in underlying NPAT of 26.4%
Steadfast Group Increase in underlying NPAT of 26.4% Statutory earnings1 Underlying earnings 1 NPAT of $104.9m v $73.4m in 1H21 EBITA +22.7% to $153.9m NPAT +26.4% to $76.3m Broker and underwriting agency growth NPATA2 +25.4% to $93.6m Equity brokers (including network) underlying EBITA +1
Slide 5: 1H22 operating update
Steadfast Group 1H22 operating update Acquisitions • Completed EPS accretive acquisitions (including Coverforce) for a cost of $507m net of step downs • Coverforce, completed in late August, is performing in line with expectations • Continue to deliver on our Trapped Capital Project1, with: ⁻ 18 com
Slide 6: Steadfast broking
Steadfast broking Sustained growth and further network acquisitions Financial highlights 1H22 vs 1H21 Steadfast Network GWP +15.6% to $5.2 billion driven by: GWP of $5.2bn vs $4.5bn 8.3% organic growth for the period +8.3% organic growth Price increases across all lines +3.5% AR network Netw
Slide 7: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies Sustained growth driven by price and volume Financial highlights 1H22 vs 1H21 Steadfast Underwriting Agencies GWP +16.3% to $852 million Driven by price and volume uplift GWP of $852m vs $733m Property line pricing remains strong +14.5% organic growth Capacity
Slide 8: Our insurTech
Our insurTech Continued broker take up of our technology platforms $458m Steadfast Client Trading Platform (SCTP) GWP transacted through SCTP in 1H22 Steadfast remains focused on improving SCTP by adding more product lines, new insurers and the expansion of auto-rating capabilities. Latest develop
Slide 9: Interim dividend up 18.2%
Interim dividend up 18.2% Interim 1H22 dividend Interim 1H22 dividend of 5.2 cps (fully franked), up from 4.4 cps in 1H21, +18.2% 10.0 Dividend Reinvestment Plan (DRP) to apply to interim 1H22 dividend 9.0 The DRP will operate by the on-market purchase of shares. 8.0 No discount will apply.
Slide 10: FY22 guidance
FY22 guidance FY22 guidance upgraded Upgraded FY22 Guidance Key assumptions: Original FY22 Guidance Range1 Range1 Strategic partners continue moderate premium price increases Underlying EBITA $320 million - $330 million $330 million - $340 million Total acquisition EBITA targets being achieved
Slide 11: 1H22 Financial Summary
1H22 Financial Summary 11
Slide 12: Reconciliation of statutory NPAT to underlying NPAT
Reconciliation of statutory NPAT to underlying NPAT Statutory vs Statutory vs 6 months to 31 December underlying underlying $ million reconciliation 1H22 reconciliation 1H21 Statutory net profit after tax (NPAT) 104.9 73.4 Adjusted for non-trading items (net of tax and non-controlling interest): Net
Slide 13: Group financial performance
Group financial performance Strong underlying earnings growth Underlying earnings 6 months to 31 December Underlying Underlying Period-on-period $ million 1H221 1H211 growth % Revenue ($m) 520.9 437.8 19.0% EBITA ($m) 153.9 125.4 22.7% NPAT ($m) 76.3 60.4 26.4% Diluted EPS2 (NPAT) (cents) 8.41 6.98
Slide 14: Drivers of 22.7% growth in underlying EBITA
Drivers of 22.7% growth in underlying EBITA1 Organic and acquisition growth Organic Growth:10.5% Technology Investment:-0.4% Acquisition Growth:12.6% $160.0m $1.8m / 1.5% $28.5m / 22.7% $13.9m / 11.1% $150.0m $2.8m / 2.2% $0.0m / 0.0% -$0.4m/-0.4% $140.0m $10.4m / 8.3% $130.0m $153.9m $120.0m $125.4
Slide 15: Steadfast broking
Steadfast broking Organic and acquisition growth Equity brokers and network - consolidated & equity accounted (assuming 100% ownership) 6 months to 31 December Underlying Underlying Period-on-period Organic Growth from $ million 1H22 1H21 growth % growth % acquisitions % Net revenue 335.6 285.3 17.6
Slide 16: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies Organic growth driven by price and volume Steadfast Underwriting Agencies – consolidated & equity accounted (assuming 100% ownership) 6 months to 31 December Underlying Underlying Period-on-period Organic Growth from $ million 1H221 1H211 growth % growth % acquisition
Slide 17: Strong conversion of profits to cash
Strong conversion of profits to cash 1H22 cash flow statement 1H22 1H21 Cash flow summary¹ 1H22 1H21 Adjusted net cash from operating activities $106.1m $86.0m Statutory operating cash flow² $113.8m $92.8m Cash used for dividends, net of DRP ($57.1m) ($34.6m) Less lease obligation payments ($7.7m) (
Slide 18: Long term debt facility extended
Long term debt facility extended Balance sheet 31 December 2021 $ million 31 Dec 21 30 Jun 21 Corporate debt facilities (excludes premium funding) $ million Maturity Total Cash and cash equivalents 221 231 Facility A – Revolving Nov 2024 320 Cash held on trust 653 506 Facility B – Term Nov 2024 140
Slide 19: Questions
Questions 19
Slide 20: Appendices
Appendices Steadfast Group (slide 21) Steadfast Network (slide 26) Steadfast Underwriting Agencies (slide 34) Our InsurTech (slide 36) 1H22 detailed financials (slide 40) 20
Slide 21: Steadfast Group
Steadfast Group 21
Slide 22: Our track record since listing on ASX
Our track record since listing on ASX Steadfast Group 1 Steadfast Network GWP ($bn) Steadfast Underwriting Agencies GWP ($m) Underlying EBITA ($m) 10 1,500 280 240 8 1,000 200 6 160 120 4 500 80 2 40 0 0 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 1H22 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY211H22 FY14
Slide 23: Three business units focused on the intermediated general insurance market
Three business units focused on the intermediated general insurance market Steadfast Group Steadfast Group (listed on ASX) Steadfast Network Steadfast Underwriting Agencies Complementary Businesses 434 general insurance brokers 27 underwriting agencies 9 businesses supporting the Steadfast Network a
Slide 24: Size and scale
Size and scale Steadfast Group Largest general insurance broker network in Australasia Largest group of underwriting agencies in Australasia $10.5 billion 434 $1.6 billion 27 Annual GWP1 Steadfast Network brokers Underwriting agencies Annual GWP1 Steadfast Network collects professional services and
Slide 25: Our market
Our market $29 billion of intermediated general insurance GWP written in FY21 Australian market – gross written premium1 Steadfast Group is focused on the intermediated $29bn general insurance market, Intermediated market with a primary focus on SME Steadfast Network brokers CY21 $10.5bn Intermediat
Slide 26: Steadfast Network
Steadfast Network 26
Slide 27: Largest general insurance broker Network in Australasia
Largest general insurance broker Network in Australasia Steadfast Network Steadfast Network Strategy Steadfast Network $10.5bn The Steadfast Network has 434 general Exclusive to Steadfast Network brokers Be the best solution for our clients’ needs insurance brokers in Australia, New Zealand Oper
Slide 28: Steadfast Network brokers have joined the Steadfast Network since IPO
Steadfast Network 276 brokers have joined the Steadfast Network since IPO Number of Steadfast Network brokers 600 19 103 550 77 500 31 13 2 434 450 31 118 400 350 300 276 250 200 August New brokers Allied NZ Insight IBNA Singapore Merged Sold externally Leavers December 2013 2021 (IPO) In 1H22, 6
Slide 29: International footprint
Steadfast Network Worldwide broker offices (excluding unisonSteadfast) 1 United Kingdom 43 Asia 13 389 Northern Territory 206 Queensland 116 Western Australia South Australia 530 New South Wales 138 22 North Island 520 Australian Capital Territory Victoria 2,043 broker offices 34 across Australia, 3
Slide 30: Australia – resilient SME client base
Steadfast Network Australia – resilient SME client base 1 GWP mix Diversified by product line Diversified by geography Diversified by insurer 2% 13% 5% 29% 14% 37% Business pack 18% QBE 17% Micro (Policy size <$650) VIC 36% Retail 13% Small Enterprise (Policy size $650 - $5,000) CGU 13% NSW 25% Comm
Slide 31: Increasing Steadfast Group’s share of growing Network GWP
Increasing Steadfast Group’s share of growing Network GWP Steadfast Network Since IPO, Steadfast has successfully implemented the dual strategies of growing our Network as well as increasing equity stakes in the network Trapped Capital Project will continue to increase Steadfast’s equity holding
Slide 32: International footprint
International footprint Steadfast Network model replication 1. New Zealand 54 brokers in the Network Steadfast Underwriting Agencies building market presence utilising NZ$603m of gross written premium Network distribution in CY21 Strong buy-in from insurer Three equity broker investments p
Slide 33: International footprint
International footprint unisonSteadfast Steadfast Group owns a 60% equity stake in unisonSteadfast One of the world’s largest global general insurance broker networks, offering multi-jurisdictional coverage 600+ Referrals between the Steadfast Network and unisonSteadfast Supervisory board cont
Slide 34: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies 34
Slide 35: Steadfast Underwriting Agencies
Steadfast Underwriting Agencies 27 agencies, over 100 niche products Complete farm package Caravans, campervans, Commercial and Accident and health Residential and commercial Marine hull and other cabins, trailers and horse residential strata strata marine industry floats Specialised and exotic Heav
Slide 36: Our insurTech
Our insurTech 36
Slide 37: Our insurTech
Our insurTech Steadfast Client Trading Platform (SCTP) – benefits for clients, brokers and insurers Market-leading technology – exclusive to Steadfast Network brokers, clients and participating insurers Benefits for clients: Genuine contestable marketplace generating improved pricing, competit
Slide 38: Our insurTech
Our insurTech Insurer and underwriting agency partners on the SCTP Commercial property Domestic home, Business pack Professional risks Liability Commercial motor Strata & ISR motor & landlords CY22 CY22 CY22 CY22 Key: indicates new insurers joining SCTP product lines 38
Slide 39: Our insurTech
Our insurTech Steadfast Technologies Steadfast Client Trading Platform (SCTP) The Steadfast Client Trading Platform is a digital INSIGHT is an insurance broking platform with a UnderwriterCentral is a cloud-based agency marketplace which provides Steadfast Network insurance powerful search engine wh
Slide 40: 1H22 Detailed Financials
1H22 Detailed Financials
Slide 41: 1H22 detailed financials
1H22 detailed financials Reconciliation of statutory to underlying earnings 6 months ended 31 December 2021 Total statutory Reclassifications Non-trading items Total underlying $ million Net fee and commissions income 367.2 85.7 - 452.9 Premium funding interest income 38.3 (38.3) - - Share of profit
Slide 42: 1H22 detailed financials
1H22 detailed financials Statement of underlying income (IFRS view) 6 months ended 31 December 2021 Underlying Underlying Period-on-period Organic Acquisitions & $ million 1H22 1H21 growth % growth %2 hubbing growth %3 Fees and commissions1 452.9 381.5 18.7% 9.7% 9.0% Other revenue 68.0 56.3 20.8% 1
Slide 43: 1H22 detailed financials
1H22 detailed financials Statement of income (underlying IFRS view) Underlying Underlying Underlying Underlying Underlying Underlying $ million 1H22 2H21 1H21 2H20 1H20 2H19 Fees and commissions¹, 2 452.9 410.4 381.5 357.4 349.5 328.9 Other revenue 68.0 51.7 56.3 58.1 61.3 38.5 Revenue – Consolidate
Slide 44: 1H22 detailed financials
1H22 detailed financials Statutory cash flow statement $ million 1H22 1H21 $49.0m free cash flow in 1H22 Cash flows from operating activities Cash from operations1 $113.8m Net cash from operating activities before customer Less lease obligation payments ($7.7m) 113.8 92.8 trust account and premium f
Slide 45: Australian General Insurance Statistics
Australian General Insurance Statistics1 Premiums and claims by class of business Houseowners/householders Domestic motor vehicle CTP motor vehicle Premiums and claims by class of business Year End Year End Year End Year End Year End Year End Sept 2020 Sept 2021 Sept 2020 Sept 2021 Sept 2020 Sept 20
Slide 46: Australian General Insurance Statistics
Australian General Insurance Statistics1 Premiums and claims by class of business Commercial motor vehicle Fire and ISR Public and product liability Professional indemnity Premiums and claims by class of business Year End Year End Year End Year End Year End Year End Year End Year End Sept 2020 Sept
Slide 47: Important notice
Important notice This presentation has been prepared by Steadfast Group Limited (“Steadfast”). This presentation contains information in summary form which is current as at 22 February 2022. This presentation is not a recommendation or advice in relation to Steadfast or any product or service offere
Slide 48: Steadfast
<gt; Steadfast THE STRENGTH YOU NEED