AUB : Half Year Results - Announcement and Investor Presentation

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profitability of Bizcover. In parallel, the Group maintained its ongoing focus on M&A with the

acquisitions of Vaughan & Monaghan by Finsura, GibbsCorp by SRG, an investment in iaAnyware, and

Anchorage Marine within Agencies. We also launched 2 new agencies: Bloodstock Insurance Australia

within Specialty, and 360 Landlords within General Commercial.

The turn-around in Agencies is building momentum with underlying revenue increasing by 58.2%

which together with a 520bps improvement in underlying margin, delivered an underlying Profit

Before Tax uplift of 82.9%. Austbrokers continues to benefit from recent strategic investments to

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deliver 8.8% in growth in underlying revenue and a 40bps margin improvement. New Zealand broking

improved margins by 170bps, excluding the impact of the technology investment - an important lever

for future growth and additive to our market-leading proposition. BizCover continued to deliver

superior growth rates (24.2% uplift in underlying revenue) and improve profitability with margins

expanding by 100bps to deliver a 26.7% growth in PBT.

We've seen evidence of the momentum continuing into 2H22 and through the disciplined execution

and the efforts of our brokers, we will continue to deliver services to best support our clients and

realise the ambitions of our shareholders. As a result, the Group is updating full-year FY22 guidance,

we now anticipate Underlying Net Profit after Tax of between $72mn and $74mn (previously $70mn

and $73mn), representing growth on continuing operations of 19.0% to 22.3%."

Highlights by operating division

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Australian Broking1



Underlying pre-tax profit for the half year increased by 9.5% to $38.3mn (1HFY21: $35.0mn). Excluding

$2.1mn non-recurring JobKeeper receipts in the prior period, the Underlying pre-tax profit for the half year

increased by 16.6%. This increase was predominantly driven by organic profit growth which included:

o Increased Commercial lines insurance premiums of 9% over the period

o Ongoing cost reductions due to network rationalisations

o Partially offset by wage cost inflation

 Acquisition related profit growth included the investments in iaAnyware (1 October 2021), Vaughan &

Monaghan (1 October 2021).

 EBIT Margin 31.1% up 40bps from 1HFY21 after excluding non-recurring JobKeeper receipts.

BizCover

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

Underlying pre-tax profit for the half year increased by 13.6% to $4.9mn (1HFY21: $4.3mn). Excluding

$0.4mn non-recurring JobKeeper receipts in the prior period, the Underlying pre-tax profit for the half year

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 AUB Group expects to deliver FY22 Underlying NPAT in the range of $72.0mn - $74.0mn, representing 19.0%

- 22.3% growth over FY21 continuing operations1

 In estimating FY22 Underlying NPAT, the Group has assumed the following:

o Premium rates for Australia are expected to increase in the range of 7% to 9%;

o Continued small bolt-on acquisitions and shareholding changes in existing network members are

included in the outlook;

o Guidance excludes the impact of major acquisitions. If these were to occur, the Group would provide

updated guidance at that stage;

o The seasonally important Australian Broking March and June renewal cycle to perform in line with

historical performance;

o COVID-19 impacts to be muted and in-line with those experienced in FY21.

1 FY21 Underlying NPAT from continuing operations of $60.5mn UNPAT excludes FY21 JobKeeper receipts $1.8mn UNPAT and FY21 profits from Altius (sold) $3.0mn UNPAT

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