Australian Unity Ltd · ASX:AYUPA
Australian Unity — Debt Investor Presentation (November 2015)
35 slides from Australian Unity's debt investor presentation, November 2015
Slide 1: Investor presentation – Series B Australian Unity Bonds – Tranche 1
AUSTRALIAN UNITY LIMITED Investor presentation – Series B Australian Unity Bonds – Tranche 1
Slide 2: Important notice and disclaimer
Important notice and disclaimer The information contained in this document (Information) has been prepared by Australian Unity Limited ABN 23 087 648 888 (Company) in connection with a proposed offer of Series B Australian Unity Bonds – Tranch 1 (“Offer” and “Bonds”) . The Offer is being made under
Slide 3: Table of contents
Table of contents Section 1 Overview of the Offer Section 2 Overview of Australian Unity Section 3 Financial Information Section 4 Key Risks Section 5 Offer Summary Section 6 Appendix
Slide 4: Section 1: Overview of the Offer
Section 1 Overview of the Offer
Slide 5: Overview of the offer
Overview of the offer Australian Unity Limited ABN 23 087 648 888 (“Australian Unity”) • - A national healthcare, financial services and retirement living organisation providing services to ~850,000 Issuer customers - Owned by and run for the benefit of ~300,000 members • Series B Australian Unity B
Slide 6: Section 2: Overview of Australian Unity
Section 2 Overview of Australian Unity
Slide 7: Overview of Australian Unity
Overview of Australian Unity 175 year history and established listed bond issuer ESTABLISHED Trusted to provide healthcare, financial and retirement living services to ~850,000 customers AND TRUSTED Owned by and run for the benefit of ~300,000 members MUTUAL Profits reinvested for the wellbe
Slide 8: Our 175 year history
Our 175 year history 1870 1993 2015 Manchester Unity 1929 Australian Unity Australian granted Crown land Unemployed Grand 2008 formed from Australian Unity Unity to establish homes for United members aged and contribution fund merger of launches Remedy successful Manchester Unity Healthcare disadvan
Slide 9: Australian Unity at a glance
Australian Unity at a glance Creating community value | 8
Slide 10: Diverse portfolio
Diverse portfolio Our strategy is to build a leading, commercial, sustainable, portfolio of businesses that foster wellbeing The Australian Unity Group has a uniquely diversified portfolio across four principal business areas: Personal Financial Healthcare Retirement Living Investments Services
Slide 11: Section 3: Financial information
Section 3 Financial information
Slide 12: Australian Unity 2015 financial highlights
Australian Unity 2015 financial highlights Track record of year-on-year revenue growth since 2011, underpinning strong profitability and increasing members’ funds Revenue and other income $m Operating earnings1 $m CAGR CAGR 1,400 8.1% 45 9.1% 1,200 40 1,000 35 30 800 25 600 20 400 15 10 200 5 0 0
Slide 13: Australian Unity 2015 business highlights
Australian Unity 2015 business highlights Health claims $m Funds under advice $b 800.0 7.0 700.0 6.0 600.0 5.0 500.0 4.0 400.0 3.0 300.0 200.0 2.0 100.0 1.0 0.0 0.0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Retirement units and Funds under management $b aged care beds 14.0 3,000.0 12.0 2,500
Slide 14: Home Care NSW acquisition
Home Care NSW acquisition On 28 August 2015, Australian Unity announced the execution of an agreement to transfer the Home Care NSW as a discreet entity to become part of the Australian Unity Group. Home Care NSW provides in-home care services to ~50,000 clients across NSW and has ~4,000 employees a
Slide 15: Rationale for Issuing the Bonds
Rationale for Issuing the Bonds Improved debt maturity profile – The issue of the Bonds and the cancellation of the 2011 Notes under the Reinvestment offer will have the effect of lengthening the debt maturity profile of the Australian Unity Group. – The resulting debt maturity profile may reduce Au
Slide 16: Key financial ratios
Key financial ratios The table below sets out certain key financial ratios that are relevant to understanding Australian Unity’s financial position. These ratios differ to those described in regulation 6D.2.06 of the Corporations Regulations. Financial ratio FY13 FY14 FY15 Gearing Ratio Debt Coven
Slide 17: Business segment highlights: Healthcare
Business segment highlights Healthcare Combines the provision of health insurance with the delivery of healthcare services, including dental services, hospital in the home, rehabilitation in the home, chronic disease management, integrated care and other preventative health services 225,000 Up 3.9
Slide 18: Business segment highlights: Retirement Living
Business segment highlights Retirement Living The Australian Unity Group’s Retirement Living business is an established operator of retirement communities, residential aged care and home care services. 19 >97 percent Up Victoria Grange – retirement Occupancy rates in >75.0 Finalist in the 2015 com
Slide 19: Business segment highlights: Investments
Business segment highlights Investments Aims to enhance financial wellbeing through the provision of a broad range of products for borrowing and lending, personal investment, superannuation, retirement and life events, to individuals, financial advisers and institutions. $7.3 billion Waurn Ponds U
Slide 20: Business segment highlights: Personal Financial Services
Business segment highlights Personal Financial Services Australian Unity provides professional strategic fee-for-service advice to help its clients improve their current financial position and ultimately achieve their long term lifestyle goals. $766 million 183 Up 37.0 Flinders Australia loans und
Slide 21: Section 4: Key risks
Australian Uni Key risks
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 (continued)
Key risks (continued) Main Risks associated with the Bonds include (continued): Holders may only collectively request early Redemption following a Change of Control Event Holders of the Bonds have the option to require Australian Unity to Redeem their Bonds prior to the Maturity Date upon the occurr
Slide 24: Key risks (continued)
Key risks (continued) Risks associated with the Australian Unity Group business include: Financial Indebtedness and other investments Australian Unity may make additional investments through the acquisition of debt or equity instruments in listed and unlisted entities. This is because Australian Uni
Slide 25: Key risks (continued)
Key risks (continued) Risks associated with the Australian Unity Group business include (continued): Retirement Communities The Australian Unity Group will derive development revenue from the sale of retirement village units. The Australian Unity Group’s financial performance may be adversely affect
Slide 26: Section 5: Offer summary
Australian Uni Offer summary
Slide 27: Key terms and conditions
Key terms and conditions Issuer Australian Unity Limited ABN 23 087 648 888 (“Australian Unity”) Series Series B – Tranche 1 Series B Australian Unity Interest paying, unsubordinated and unsecured debt obligations, issued by Australian Unity Bonds – Tranche 1 Each Bond is issued on and subject to th
Slide 28: Key terms and conditions
Key terms and conditions While any Bonds remain outstanding, the Issuer will ensure that, on each 30 June and 31 December occurring after the Issue Date, Covenant gearing ratio the Covenant Gearing Ratio is not greater than 50 percent Australian Unity will not secure any “Relevant Indebtedness” with
Slide 29: Comparison of 2011 Notes and Bonds
Comparison of 2011 Notes and Bonds Feature 2011 Notes Bonds Issuer • Australian Unity Limited • Australian Unity Limited Guarantor • None • None Legal form • Unsecured debt obligations • Unsecured debt obligations Issue Price • $100 per 2011 Note • $100 per the Bonds Term • 5 years • 5 years Early r
Slide 30: Ranking of Australian Unity Bonds
Ranking of Australian Unity Bonds Illustration of ranking upon winding up of Australian Unity Amount drawn as at 30 June 2015, adjusted for the amount to Type of instrument Existing debt obligations and equity be raised under the Offer ($200m)* None (except for the 2011 Notes which will Higher ranki
Slide 31: Reinvestment offer for Eligible holders of the 2011 Notes
Reinvestment offer for Eligible holders of the 2011 Notes What is the The Reinvestment Offer is not a simple rollover into a similar investment. 2011 Notes and the Bonds, while having a number of similar Reinvestment Offer? features, have different benefits and risks, which must be evaluated indepen
Slide 32: Key dates for the Offer
Key dates for the Offer Reinvestment Record date for determining eligible Australian Unity Noteholders (7.00pm Sydney time) 5 November 2015 Lodgement of the Offer Specific prospectus with ASIC 9 November 2015 Bookbuild to determine Margin and Allocations to Syndicate Brokers and Institutional Invest
Slide 33: Key contacts
Key contacts Name Title Phone Email Australian Unity Limited Kevin McCoy Chief Financial Officer +61 3 8682 6010 kmccoy@australianunity.com.au Darren Mann Group Treasurer +61 3 8682 6039 dmann@australianunity.com.au Poh Poh Chin Assistant Group Treasurer +61 3 8682 6029 pchin@australianunity.com.au
Slide 34: Section 6: Appendix
Australian Uni Appendix
Slide 35: Undertakings comparison of 2011 Notes and Bonds
Undertakings comparison of 2011 Notes and Bonds 2011 Notes Bonds So long as any Bonds of a Series are outstanding, Australian Unity will ensure that, on each 30 June and 31 December, the Covenant Gearing Ratio is not greater than 50 percent. While any of the 2011 Notes remain outstanding, the Issuer
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