Australian Unity Ltd · ASX:AYUPA
Australian Unity — HY2023 Earnings Presentation
31 slides from Australian Unity's earnings presentation, Feb 28, 2023
Slide 1: ASX Announcement
ASX Announcement 28 February 2023 Australian Unity Limited – Half-Year Investor Update Please find attached Australian Unity Limited’s Investor Update relating to the financial results for the half-year ended 31 December 2022. -end- This announcement has been authorised for distribution to the ASX b
Slide 2: Investor update
Australian Unity Limited Investor update Financial results for the half-year ended 31 December 2022
Slide 3: Investor presentation teleconference invitation
Australian Unity Limited is pleased to invite Date Thursday 2 March 2023 you to our investor presentation teleconference for the half-year ended 31 December 2022 Time 9:30am to 10:30am AEDT To access the teleconference participants must register in advance via the link below: https://registrations.e
Slide 4: Important information
Important information This notice relates to all information provided as a part of this presentation To the maximum extent permitted by law, AUL, its related bodies corporate including, without limitation, these slides, associated presentations and and each of its respective officers, directors, emp
Slide 5: Acknowledgement of Traditional Owners
Australian Unity acknowledges the Traditional Owners of the lands and waters within Australia and recognises the important connection to Country that Aboriginal and Torres Strait Islander peoples have. AUL HY2023 Investor presentation 4
Slide 6: Agenda and presenters
Agenda and presenters 1. Overview and Group highlights 2. Business results 3. Summary and outlook Rohan Mead Christine Yates Darren Mann Group Managing Director and CEO Chief Executive Officer – Retail Group Executive Finance & Strategy and Chief Financial Officer AUL HY2023 Investor presentation 5
Slide 7: Overview and Group highlights
Overview and Group highlights AUL HY2023 Investor presentation 6
Slide 8: Overview of Australian Unity
Overview of Australian Unity Mutual wellbeing company with a commitment to members, customers and community • Established in 1840, a member-owned company with more than 380,000 members and more than 650,000 customers • Diversified but thematically-linked portfolio of health, wealth and care business
Slide 9: HY2023 operational review
HY2023 operational review Advancing strategic ambitions • Further progressed strategy of building a commercially sustainable portfolio of businesses that provides member, customer and community value that supports personal and community wellbeing • Delivered a sound financial result despite market d
Slide 10: HY2023 operational review cont.
HY2023 operational review cont. COVID-19 support measures • Impact of the COVID-19 pandemic continued to be felt across the Group’s businesses despite a general return to a more normal operating environment, following the unwinding of most of the COVID-19 pandemic restrictions • Responded throughout
Slide 11: FY2023 priorities
FY2023 priorities Realise the value of the modern mutual Build social infrastructure reach Create the building blocks to form deeper Continuing to realise and extend our relationships with members, based on presence within the Social improving wellbeing outcomes and superior Infrastructure realm int
Slide 12: Community & Social Value
Community & Social Value Australian Unity delivered $1.63b in total community and social value for FY22. $353m Supporting living The uplift from $1.25b in Community & Social Value in place in FY21 can be attributed to steady growth across our businesses. For FY23 our focus has remained on further em
Slide 13: HY2023 financial summary
HY2023 financial summary Key financial statistics HY2023 HY2022 Change Revenue and other income ($m) 855.2 835.0 20.2 Corporate entity income ($m) 774.1 753.6 20.5 Investment earnings ($m) 17.1 4.9 12.3 Benefit funds income ($m) 64.0 76.5 (12.6) Total expenses, excluding financing costs ($m) 806.5 7
Slide 14: HY2023 key metrics
HY2023 key metrics Profit after income tax ($m) 60 HY 50 40 30 38.4 30.2 20 26.7 10 2.1 15.5 14.2 11.9 7.0 6.2 0 1 1 FY2019 FY2020 FY2021 FY2022 HY2023 1 Comparative information has been restated following adjustments made to prior year financial statements. Further information about the nature and
Slide 15: HY2023 segment earnings growth
HY2023 segment earnings growth Adjusted EBITDA1,2 ($m) HY22 HY23 70.0 65.6 60.0 50.0 40.1 40.0 36.5 30.1 30.0 27.5 20.0 10.0 3.4 0.0 Independent & Assisted Living Retail Wealth & Capital Markets 1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its business segm
Slide 16: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience 400 30 June 2022 ($m) 1 350 Series D AUL Bonds Mutual Capital Instruments Undrawn Revolving Loan Other external loans 300 Undrawn Development Loan Undrawn Revolving Loan (New) Drawn Development Loan Repaid Revolving Loan Continued to build flexibilit
Slide 17: Gearing analysis and interest cover
Gearing analysis and interest cover Covenant gearing ratio Interest cover ratio1 7.00 60.0% 800 700 6.00 50.0% Debt Capacity ($m) 600 5.00 40.0% Gearing Ratio 500 4.00 30.0% 400 3.00 300 20.0% 2.00 200 10.0% 1.00 100 0.0% 0 - Jun 19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Dec-19 Jun-20 Dec-
Slide 18: Independent & Assisted Living
Independent & Assisted Living AUL HY2023 Investor presentation 17
Slide 19: Independent & Assisted Living (IAL)
Independent & Assisted Living (IAL) • Total segment revenue increase of 9.3% to $318.3m compared to the PCP—despite continuing disruption as a result of the COVID-19 pandemic Adjusted EBITDA ($m) • Adjusted EBITDA of $36.5m represented an increase of $9.0m or 32.9% on the PCP HY22 HY23 36.5 • Home C
Slide 20: IAL highlights
IAL highlights Health Services Home Care Services (HCS) Residential Communities (Remedy Healthcare & Dental) Developments • Adjusted EBITDA of $18.4m—an increase • Operated 11 integrated retirement villages • Remedy Healthcare increased revenue by • Continued to work closely with of 59.2% on the PCP
Slide 21: IAL outlook
IAL outlook • IAL businesses remain focused on the health and wellbeing needs of customers and key stakeholders— families, primary carers, communities and government agencies • Workforce growth and transformation of business operations will continue to be key focus areas throughout the remainder of
Slide 22: Retail
Retail AUL HY2023 Investor presentation 21
Slide 23: Retail
Retail • Delivered a strong result for the half-year, with an adjusted EBITDA of $65.6m—63.6% higher than the PCP • Overall revenue of $372.9m represented a 4.9% increase on the PCP driven by 2.0% increase in private health Adjusted EBITDA ($m) insurance revenue and 73.6% increase in banking revenue
Slide 24: Retail highlights
Retail highlights Australian Unity Health Limited Australian Unity Bank Limited Private health insurance (PHI) • PHI policyholders decreased by 1.9% to • Deferred Claims Liability1 (DCL) decreased 165,053 by $30.3m to $40.7m at 31 December 2022 • More than 26,000 customers, with total assets growing
Slide 25: Retail outlook
Retail outlook • Outlook is cautiously positive, notwithstanding the continued uncertainties as health insurance claims normalise and bank credit growth slows in response to higher interest rates • Has established a solid foundation for the delivery of customer growth and member value. The platform
Slide 26: Wealth & Capital Markets
Wealth & Capital Markets AUL HY2023 Investor presentation 25
Slide 27: Wealth & Capital Markets (W&CM)
Wealth & Capital Markets (W&CM) • Total segment revenue decreased by 5.1% compared to PCP reflecting the timing of project-based property Adjusted EBITDA services income and continued impacts from the global pandemic and investment market downturn. In the ($m) 1 first half of the 2022 financial year
Slide 28: W&CM highlights
W&CM highlights Funds Management Life & Super Advice Trustees Social infrastructure • FUMA of $10.84b (30 June 2022: $9.90b), • Property assets under management increased to • FUMA of $2.34b (30 June 2021: • Total number of advisers • The growth of the Trustees with positive net flows across all $5.
Slide 29: W&CM outlook
W&CM outlook • Period ahead should continue to provide opportunities for the platform to offer customers valuable investment opportunities, and to deliver increased community and social value • Remains well positioned to benefit from: • the collective impact of the rising need for better-planned wea
Slide 30: 10-year growth strategy
10-year growth strategy Growth areas Realise the value Accelerate Build social of the modern momentum in infrastructure mutual health & human reach services AUL HY2023 Investor presentation 29 29 29
Slide 31: Real Wellbeing
Australian] Real Wellbeing