AUB GROUP LIMITED - Interim / Quarterly Report 2021

==> picture [50 x 50] intentionally omitted <==

==> picture [328 x 119] intentionally omitted <==

23 February 2021

The Manager Market Announcements Office Australian Securities Exchange Ltd Level 6, Exchange Centre 20 Bridge Street Sydney NSW 2000

FOR RELEASE TO THE MARKET

Half Year FY2021 Results - Announcement and Investor Presentation

Please find attached for immediate release in relation to AUB Group Limited ( ASX: AUB ) the following documents:

1H21 Performance Overview; and
1H21 Results Investor Presentation.

ENDS

This release has been authorised by the AUB Board.

For further information, contact David Franks, Joint Company Secretary, on +61 2 8098 1169 or [email protected].

About AUB Group

AUB Group Limited is Australasia’s largest equity-based insurance broker network driving approximately A$3.6 billion GWP, servicing 700,000 clients and over one million policies across more than 450 locations.

==> picture [596 x 84] intentionally omitted <==

==> picture [134 x 50] intentionally omitted <==

==> picture [224 x 113] intentionally omitted <==

1H21 Performance Overview

A record 1H21 result that positions AUB Group for another strong year

Summary

Underlying NPAT[1] $30.7mn (1HFY20: $21.3mn) up 44.2%.
Underlying earnings per share 41.47 cents up 43.2%.
Mixture of underlying organic and acquisition driven growth primarily in Australian Broking.
Reported Net Profit After Tax $24mn (1HFY20: $16.6mn), up 44.5%.
Fully franked interim dividend of 16.0 cents per share (1HFY20: 14.5 cps), an increase of 10.3%. Dividend Reinvestment Plan (DRP) remains activated.
Excellent results in Australian Broking are a result of recent initiatives that will continue to drive sustainable improvement in revenue and underlying cost drivers.
Accelerating growth in BizCover together with strong progress against FY21 Execution Priorities.
Sale of Altius agreed, completing exit from Health & Rehabilitation Services.
Continued focus to deliver on growth ambitions – Upgraded FY21 Underlying NPAT guidance of $63.0mn - $65.0mn, representing 17.9% - 21.7% growth on FY20.

AUB Group Limited (ASX:AUB) has reported a 44.2% increase in Underlying Net Profit After Tax (Underlying NPAT[1] ), to $30.7mn (1HFY20: $21.3mn). On an Underlying basis, earnings per share has increased to 41.47 cents per share, up 43.2% over the prior comparative period.

Reported Net Profit After Tax (Reported NPAT) attributable to ordinary shareholders of the parent increased 44.5% to $24mn (1HFY20: $16.6mn). The increased Reported NPAT was due to a mixture of strong underlying organic and acquisition driven growth primarily in the Australian Broking division.

AUB Group CEO and Managing Director, Michael Emmett, said: “I’m pleased to report very strong results for the Group. I’d like to thank our brokers and staff who have pulled together despite facing tremendous adversity and difficulty to help us deliver an extraordinary financial result. I’d also like to acknowledge our clients whose resilience in the face of the pandemic and their continuing confidence in our services and advice is critical to our business.

1H21 was an important period for the group during which we were able to demonstrate the benefit of our investment in BizCover, grow broking revenue and improve broking profits across our existing network, agree the sale of Altius to finalise our exit from Health and Rehabilitation Services, strongly progress the implementation of

1 Underlying Net Profit After Tax excluding adjustments to carrying values of associates, profit on sale and deconsolidation of controlled entities, contingent consideration adjustments, acquisition costs, impairment charges, and amortisation of intangibles. Performance measure used by management and the Board to assess underlying business performance.

==> picture [595 x 84] intentionally omitted <==

==> picture [134 x 50] intentionally omitted <==

==> picture [224 x 113] intentionally omitted <==

our two key technology platforms, make further strategic investments including in 360 Underwriting and Experien and to continue our strategy to consolidate and scale existing businesses.

These strategic initiatives leave us poised for strong, continued growth in the second half and in FY22, enabling us to upgrade our full year profit guidance. We now expect to achieve between $63mn and $65mn of Underlying Net Profit after Tax representing growth on FY20 of between 17.9% and 21.7%.”

Highlights by operating division

Australian Broking

Underlying pre-tax profit for the half year increased by 60.1% to $39.3mn (1H20:$24.6mn). This increase driven by both organic and acquisition related growth as follows:
Organic profit growth was assisted by:
- Increased Commercial lines insurance premiums averaging 7.4% over the period
- Ongoing cost reductions due to network rationalisation
Acquisition related profit growth included strong contributions as a result of investments in BizCover (1 February 2020) and Experien (1 August 2020).
EBIT margin 32.9% up 740bps from 1H20.

New Zealand

Underlying pre-tax profit for the half year increased by 5.9% to $5.2mn.
Continued flat premium rates were observed.
NZbrokers continues to perform well with growth in members and continually enhanced membership proposition including in the technology space.

Australian Agencies

Underlying pre-tax profit for the half year decreased by 4.8% to $5.3mn.
COVID-19 impacted clients in the Hospitality, Bus and Coach and Film & Entertainment industries during a transitional year.
The restructuring of Australian Agencies into General Commercial Underwriting, Specialty, and Strata has commenced, complemented by the investment in 360 Underwriting Solutions in December 2020, which accelerates AUB Group’s scale in Agencies.

Health & Rehabilitation

Pre-tax profits increased by $1.0mn or 58.4% to $2.8mn for the half year, primarily due Altius Group’s increased revenue and reduced costs.
On 20 January 2021, AUB Group Limited entered into an arrangement to dispose of its entire interest in Altius Group for cash proceeds of approximately $57mn. The transaction is expected to be completed by April 2021, and on completion Altius will cease to be a controlled entity of the Group. The sale is expected to result in a post‐tax profit on disposal of $10mn after expensing $5.4mn related to the increased value of a put and call option in favour of an existing Altius minority shareholder at 31 December 2020. Neither of these amounts will be reflected in Underlying Net Profit After Tax.

==> picture [595 x 84] intentionally omitted <==

==> picture [134 x 50] intentionally omitted <==

==> picture [224 x 113] intentionally omitted <==

Capital Management

Look through gearing[2] has decreased to 34.0% at 31 December 2020 (30 June 2020: 34.2%).
AUB Group has undrawn facilities of $17.8mn at 31 December 2020 (30 June 2020: $58.0mn).

Dividends

The Board has determined a fully franked interim dividend of 16.0 cents per share (1HFY20: 14.5 cps), a 10.3% increase.
The interim dividend is payable on 8 April 2021 to shareholders on the register at 5:00pm on 5 March 2021 (record date).
The Dividend Reinvestment Plan (DRP) arrangements remain activated for the interim dividend.

FY21 Outlook and Guidance Upgrade

The AUB Group expects to deliver a FY21 Underlying NPAT of $63.0mn - $65.0mn, representing growth of 17.9% - 21.7% over FY20.
In estimating FY21 Underlying NPAT, the Group has assumed the following:
Underlying NPAT guidance upgrade driven mainly by 1H21 outperformance.
Premium rates for Australia are expected to increase in the range of 5% to 6%;
Continued small bolt-on acquisitions and shareholding changes in existing network members are included in the outlook;
Guidance excludes the impact of major acquisitions. If these were to occur, the Group would provide updated guidance at that stage;
The seasonally important Australian Broking June renewal cycle to perform in line with historical performance.

==> picture [595 x 84] intentionally omitted <==

2 Debt/ (Debt plus Equity).Includes AUB’s percentage share of associates total debt .

==> picture [134 x 50] intentionally omitted <==

==> picture [224 x 113] intentionally omitted <==

AUB 1H21 PRESENTATION OF FINANCIAL RESULTS TABLES

Table 1 Financial Results Summary

Table 1 Financial Results Summary
FINANCIAL RESULTS SUMMARY	1H21	1H20	Variance
	$ 000	$ 000	%
Revenue from ordinary activities1	167,990	162,899	3.1%
Underlying NPAT2	30,747	21,327	44.2%
Profit before tax	36,889	25,961	42.1%
Net profit after tax (before non-controlling interests)	29,254	18,921	54.6%
Net profit attributable to members (Reported NPAT)	23,981	16,596	44.5%
Reported earnings per share (cents)	32.35	22.50	43.8%
Underlying earnings per share (cents)2	41.47	28.96	43.2%
Dividend per share ( cents)	16.0	14.5	10.3%

1 Revenue from ordinary activities includes the Group’s share of net profit after tax from associates which are companies and the Group’s share of net profits before tax from associates which are unit trusts.

2 Underlying NPAT represents the underlying profitability of the business used by management and the board to assess performance of the business. Further details are provided in Table 2. Underlying earnings per share is earnings per share calculated with reference to Underlying NPAT.

==> picture [595 x 84] intentionally omitted <==

==> picture [134 x 50] intentionally omitted <==

==> picture [224 x 113] intentionally omitted <==

Table 2 Reconciliation of Underlying NPAT to Reported NPAT[1 ]

The reported profits of the business include non-operational items, such as profits and losses on sale of equity interests, fair value adjustments to carrying values on ownership changes, changes to estimates or payments of deferred contingent consideration amounts, impairment adjustments, amortisation of intangible assets and material acquisition costs. These profits or losses are not part of the regular trading activities and can distort the underlying performance of the business. These items have been eliminated to provide a clear representation of the underlying trading performance. This measure, labelled Underlying NPAT, is used by management and the board to assess operational performance, and is reconciled below.

board to assess operational performance, and is reconciled below.	board to assess operational performance, and is reconciled below.
RECONCILIATION OF REPORTED NPAT TO UNDERLYING NPAT 1		1H21 $'000	1H20 $'000	Var %
Net	Profit after tax attributable to equity holders of the parent	23,981	16,596	44.5%
Add	back non controlling interest as per financial statements	5,273	2,325
Add	back tax expense as per financial statements	7,635	7,040
Profit before income tax as per financial statements		36,889	25,961	42.1%
Add	back/(less):
-	Add back associate share of taxes	7,509	4,338
-	Amortisation of broking registers8	8,505	4,894
-	Interest Unwind on put option liability5	98	187
-	Adjustments to carrying value2,3,7	1,207	4,476
-	Profit from sale or dilution of interests in associates, controlled entities and broking portfolios 4,6	(1,046)	(2,531)
-	Impairment of the Right of Use Asset and Onerous Lease Expense	592	0
-	Group share of associate profit from sale or dilution of interests in associates, controlled entities and broking
	portfolios4,6	913	(609)
-	Legal, due diligence and facility costs	763	1,254
-	Non-Controlling Interests pre-tax on underlying results	(10,612)	(7,178)
Underlying Net Profit Before Tax		44,818	30,792	45.6%
-	Tax effects of the above items	(14,071)	(9,465)
Underlying Net Profit After Tax		30,747	21,327	44.2%

1 The financial information in this table has been derived from the financial statements which were reviewed by AUB Group auditors. The underlying NPAT is non-IFRS financial information and as such has not been audited in accordance with Australian Accounting Standards.

2 The Group’s acquisition policy is to defer a component of the purchase price, which is determined by future financial results. An estimate of the contingent consideration is made at the time of acquisition and is reviewed and varied at balance date if estimates change, or payments are made. This adjustment can be a loss (if increased) or a profit (if reduced). Where an estimate or payment is reduced, an offsetting adjustment (impairment) may be made to the carrying value.
3 Where the carrying value of a controlled entity or associate exceeds the fair value an impairment expense is recognised during the period.

4 Gain/loss on deconsolidation are excluded from Underlying NPAT. Such adjustments will only occur in future if further sales of this type are made.

5 Interest expense on movement in value of the put option liability.
6 Broking portfolios may be sold from time to time and any gains/loss from sale are excluded from Underlying NPAT.
7 The adjustments to carrying values of associates or controlled entities arise where the Group increases its equity in associates whereupon they became controlled entities or decreases its equity in a controlled entity and it becomes an associate (deconsolidated). As required by accounting standards the carrying values for the existing investments have been adjusted to fair value and the increase included in net profit. Such adjustments will only occur in future if further acquisitions or sales of this type are made.
8 Amortisation expense is a non-cash item.

==> picture [595 x 84] intentionally omitted <==

==> picture [134 x 50] intentionally omitted <==

==> picture [224 x 113] intentionally omitted <==

Table 3 Management Presentation of Results

A number of the businesses in the AUB Group are associates and are not consolidated in the financial statements. In order to give a more comprehensive view of performance, the following table aggregates 100% of these businesses’ revenues and expenses with those of the consolidated businesses before deducting outside shareholder interests. This provides a view as to the growth in the network without potential distortion from shareholding changes that may move entities from consolidated to associates or vice versa. The following analysis is presented on an Underlying NPAT basis. A reconciliation of this data to the operating segments per the financial statements is included in the Director’s Report.

Managem ent Presentation of Results	1H21	1H20	Variance	Variance
	$000	$000	$	%
Australian Broking revenue	233,407	187,952	45,455	24.2%
Australian Brokingexpenses	(156,676)	(140,036)	(16,640)	11.9%
EBIT - Australian Broking	76,731	47,916	28,815	60.1%
New Zealand revenue	27,288	27,428	(140)	-0.5%
New Zealand expenses	(19,106)	(19,097)	(9)	0.0%
EBIT - New Zealand	8,182	8,331	(149)	-1.8%
Australian Agencies revenue	29,287	29,153	134	0.5%
Australian Agencies expenses	(20,883)	(21,059)	176	-0.8%
EBIT - Australian Agencies	8,404	8,094	310	3.8%
Health & Rehabilitation revenue	20,944	27,533	(6,589)	-23.9%
Health & Rehabilitation expenses	(16,951)	(24,178)	7,227	-29.9%
EBIT - Health & Rehabiliation	3,993	3,355	638	19.0%
Total revenue - operating entities	310,926	272,066	38,860	14.3%
Total expenses - operatingentities	(213,616)	(204,370)	(9,246)	4.5%
EBIT - operatingentities	97,310	67,696	29,614	43.7%
Corporate revenue	2,138	2,457	(319)	-13.0%
Corporate expenses	(7,407)	(7,043)	(364)	5.2%
EBIT - Corporate	(5,269)	(4,586)	(683)	14.9%
Total - Group revenue	313,064	274,523	38,541	14.0%
Total - Groupexpenses	(221,023)	(211,413)	(9,610)	4.5%
Tota - EBIT before NCI	92,041	63,110	28,931	45.8%
Interest expense - Operating entities	(3,609)	(5,859)	2,250	-38.4%
Interest expense - Corporate	(2,542)	(1,429)	(1,113)	77.9%
Total - Interest expense	(6,151)	(7,288)	1,137	-15.6%
Profit before NCI	85,890	55,822	30,068	53.9%
Non - ControllingInterest(NCI)	(41,072)	(25,030)	(16,042)	64.1%
Underlying Net profit before tax	44,818	30,792	14,026	45.6%
Income tax expense	(14,071)	(9,465)	(4,606)	48.7%
Underlying NPAT	30,747	21,327	9,420	44.2%

This release contains “forward-looking” statements. Forward-looking statements can generally be identified by the use of forward-looking words such as “anticipated”, “expected”, “projections”, “guidance, “forecast”, “estimates”, “could”, “may”, “target”, “consider”, “will” and other similar expressions. Forward looking statements, opinion and estimates are based on assumptions and contingencies which are subject to certain risks, uncertainties and change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, there can be no assurance that actual outcomes will not differ materially from these statements. To the fullest extent permitted by law, AUB Group Limited and its directors, officers, employees, advisers, agents and intermediaries do not warrant that these forward looking statements relating to future matters will occur and disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions.

==> picture [595 x 84] intentionally omitted <==

==> picture [960 x 119] intentionally omitted <==

1H21 Results Investor Presentation 23 February 2021 Mike Emmett CEO and Managing Director Mark Shanahan CFO

==> picture [132 x 49] intentionally omitted <==

KEY MESSAGES

==> picture [168 x 119] intentionally omitted <==

==> picture [876 x 367] intentionally omitted <==

----- Start of picture text -----

1 2 3 4 5 6
Very strong Strong Ongoing Underwriting Strategic Exit Upgrade to
1H21 result, progress with growth in Agencies from Health & profit guidance
underlying Execution BizCover, restructured, Rehabilitation, reflecting
NPAT growth Priorities leading acquired 360 sale of Altius execution of
of 44.2% from Insurtech with Underwriting agreed growth
1H20 strong unit to accelerate strategies
economics outcomes
 Underlying NPAT  Technology  29% revenue and  Underwriting  Strong price  Upgraded FY21
of $30.7mn rollout underway 67% profit growth agencies re- outcome realised Underlying NPAT
 Austbrokers  Brokerage since investment organised into 3 including $10m guidance of
growth initiatives consolidation  Potential Growth subdivisions post-tax profit on $63.0mn -
delivering progressing well Drivers include  360 Underwriting disposal $65.0mn (17.9% -
strongly  Cost reduction expansion into the key lever to  Enables improved 21.7% growth on
ahead of plan new geographies, drive focus on core PY)
 Experien adjacent products outperformance Broking and  Previous
acquisition and segments for ‘General Agency guidance
Commercial’ businesses $60.0mn -
$62.0mn
----- End of picture text -----

==> picture [168 x 119] intentionally omitted <==

FINANCIAL HIGHLIGHTS 1H21

Underlying NPAT growth and EBIT Margin expansion underpinned by strong revenue growth

	1H21 1H20 Movement
Underlying Revenue1	$310.9mn $272.1mn 14.3%
Underlying Expenses1	$213.6mn $204.4mn 4.5%
Underlying EBIT Margin1	31.3% 24.9% 640bps
Underlying NPAT2	$30.7mn $21.3mn 44.2%
Underlying Earnings per Share3	41.47 cents 28.96 cents 43.2%
Dividend per Share(interim)	16.0 cents 14.5 cents 10.3%

1. Underlying Results: In order to give a more comprehensive view of performance, figures include results from ‘associates’ (not consolidated in the financial statements) at an aggregate 100% of all business revenues, expenses and profits with those of the consolidated businesses before deducting outside shareholder interests. Excludes AUB Group Corporate Revenue and Expenses

2. Underlying NPAT is used by management and the board to assess operational performance and excludes non-operational items, such as profits and losses on sale of equity interests, fair value adjustments to carrying values on ownership changes, changes to estimates or payments of deferred contingent consideration amounts, impairment adjustments and amortisation of intangible assets

3. Underlying EPS calculation = (Underlying NPAT) / (weighted average number of shares)

1H21 FINANCIAL PERFORMANCE: DIVISIONAL

Excellent results in Australian Broking with a 740bps improvement in margins as benefits of strategic initiatives begin to be realised

==> picture [168 x 119] intentionally omitted <==

Vs. 1H20 comparative period	AUSTRALIAN BROKING2	NEW ZEALAND	AUSTRALIAN AGENCIES4	HEALTH AND REHABILITATION (Strategic exit)	OPERATING BUSINESSES3
Underlying1,3 Revenue	$233.4mn	$27.3mn	$29.3mn 0.5 %	$20.9mn	$310.9mn
	24.2 %	(0.5 %)		(23.9 %)	14.3 %
Underlying1,3 EBIT Margin	32.9 %	30.0 % (40bps)	28.7 %	19.1 %	31.3 %
	740bps		90bps	690bps	640bps
PBT attributable to equity holders of parent company_1,3_	$39.3mn	$5.2mn	$5.3mn	$2.8mn	$52.6mn
	60.1 %	5.9 %	(4.8 %)	58.4 %	43.0 %

2. Includes benefits of acquisitions mainly 40% of BizCover effective 1 February 2020 and 73% of Experien effective 1 August 2020

3. Excludes AUB Group Corporate Revenue & Expenses

4. 360 Underwriting results are included within Australian Agencies from 1 December 2020

AUSTRALIAN BROKING: REAPING REWARDS The performance in Australian Broking is a result of recent initiatives that will continue to drive sustainable improvement in revenue and underlying cost drivers

==> picture [168 x 119] intentionally omitted <==


	Austbrokers Revenue and Expense “Jaws”: Calendar					Year	18 - 20				CY18 to CY20
										Revenue1	Revenue Growth
											20.2 %
CY18 28.4% EBIT Margin				*…expanding the jaws to* *sustainably deliver long-term* *margin growth* CY19 28.0% EBIT Margin					*EBIT*	CY20 Expenses1 32.7% EBIT Margin	Expense Growth 13.0 % EBIT Growth 38.2 % EBIT Margin Growth 430 bps


	Area of Focus	Grow Revenue	Optimise Expense	Q1FY20		Q2FY20		Q3FY20		Q4FY20 Q1FY21	Q2FY21
	Strategic high-performing				Acquired Bestmark			Acquired BizCover		Acquired Experien	Partnership with KPG
	acquisitions							Multiple partner-level M&A bolt-ons
	Improve insurance commercials									Renegotiated major insurer agreements
								Jan’20: Austbrokers		Sep’20:
	Create specialty segments to drive new growth							Corporate and Austbrokers Hospitality		CityCover, Comsure, Bestmark Merger
	Technology								Launched ExpressCover Sentinel roll-out and ExpressCover expansion
	Consolidate and scale							Feb’20: Central Coast to		July’20: InterRISK SME to Dec’20: Austbrokers HCI		to
	underperforming portfolio							Markey		MGA	MGA
	Streamline costs			Streamlined Head-office			costs resulting in reduced partner recharges			Continued cost reduction

==> picture [168 x 119] intentionally omitted <==

==> picture [88 x 22] intentionally omitted <==

EXCEPTIONAL PERFORMANCE

Strong growth trajectory: 29% revenue & 67% profit growth since investment with significant potential for further growth via expansion into growth markets

==> picture [454 x 374] intentionally omitted <==

----- Start of picture text -----

Since AUB Group’s investment in Feb’20 (excludes JobKeeper)
Cumulative Revenue  1H21 AUB PBT share
2 9% $4.3mn, less $1.2mn
Interest expense [1] , net PBT
share $3.1mn
 Profit growth outpacing
revenue growth due to
operating leverage and
scalability of the platform
 Revenue growth outpacing
Cumulative PBT market benchmarks.
6 7%
 Exceptional customer NPS
scores
Prior Year 2019 Current Year 2020
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
----- End of picture text -----

New Growth Opportunities

Geographic footprint Customer segment expansion

NZ is priority focus – large parallel market and significant opportunity to grow at pace

==> picture [44 x 105] intentionally omitted <==

Target SME customers in their personal capacity for personal insurance such as Householders, Motor-Private and Landlords

Product offering scope Insurer partnerships Channel penetration

==> picture [44 x 44] intentionally omitted <==

New products that expand on existing SME commercial proposition e.g. MotorCommercial, and new domestic offerings

==> picture [44 x 44] intentionally omitted <==

Expanding insurer suite as market penetration gains traction

==> picture [44 x 43] intentionally omitted <==

Continue leveraging omni-channel by expanding offering to digital e-commerce players, brokers and insurers

1. Represents the Corporate Head Office interest paid on borrowings to fund the 40% share of BizCover since AUB Group’s investment on 1 February 2020

==> picture [88 x 22] intentionally omitted <==

VISION: TO BE THE WAY SMEs INSURE THEIR BUSINESS MISSION: TAKE THE HASSLE OUT OF BUSINESS INSURANCE

Leading full lifecycle SME insurance platform in AU and NZ – operates across entire value 1 chain, no underwriting risk 2 Massive addressable market, strong growth tailwinds in the Direct SME space Purpose-built proprietary platform, highly automated processes maximise scale and 3 transferability across markets Integration with leading global and domestic insurers developed over a decade of 4 investment in: technology, underwriting redesign and user experience Client focused design and service mindset enables brilliant customer journeys – market 5 leading NPS scores

Underpinned by data analytics capabilities with structured insight into client purchasing, 6 retention, claims and service experience

==> picture [168 x 119] intentionally omitted <==

Lifetime Value/Customer Acquisition Cost >3 Client growth[2] 28% NPS Score +71

Over a decade of investment to create a highly scalable marketleading platform and business model

1. Growth since AUB Group’s investments on 1 February 2020

2. FY20 vs FY19

ESTABLISHED IN SME INSURANCE MARKET Positioned for ongoing growth – multi-channel presence underpinned by a comprehensive offering

==> picture [168 x 119] intentionally omitted <==

==> picture [878 x 371] intentionally omitted <==

----- Start of picture text -----

BizCover
Multi-channel market penetration leverages market leading platform while investment in brand drives operational leverage
BizCover Direct White-label BizCover for Brokers ExpressCover
Multi-product offerings across all major Commercial insurance risks provide comprehensive SME insurance offerings
Business Pack Management Liability
 Business Interruption Professional Indemnity Public Liability (D&O) Households
 Employee fraud & dishonesty
 Tax Audit Motor – Private and
 Commercial Property Personal Accident Cyber Liability Commercial Landlords
Available To-be-launched in 2021
Partnerships with leading global and domestic insurers deliver on shared objectives of efficiency and client satisfaction
Channel
Products
Insurer
----- End of picture text -----

REINVIGORATING THE AGENCIES DIVISION

Restructure will deliver growth while acquisition of 360 Underwriting will accelerate outcomes and unlock synergy benefits

==> picture [168 x 119] intentionally omitted <==

Austagencies (Underwriting Agencies) General Commercial Specialty Strata Underwriting 14 Agencies 13 Agencies 3 Agencies ~270mn ~112mn ~82mn General insurance products Specialty products, industry Provides scale to Strata operating primarily under expertise driven operating portfolio products and the 360 Underwriting under the SURA brand offerings Solutions brand

==> picture [71 x 38] intentionally omitted <==

==> picture [111 x 24] intentionally omitted <==

Restructure of Austagencies aligns capabilities to better support Austbrokers and other broking clients
Acquisition of 360 Underwriting Solutions in December 2020 will accelerate growth:
360 is an established partner of Austbrokers with ten agencies and total GWP of $170mn
Four existing Austagencies incorporated with 360 adding GWP of $100mn
Marginally accretive to EPS in H2, increased benefits in FY22
The strategic focus of the division shifts to:
Maximising binder utility and expanding binder capacity for growth

o Optimising underlying cost base

o Better leveraging scale and expertise

==> picture [168 x 119] intentionally omitted <==

EXIT FROM HEALTH & REHABILITATION ON TRACK S ale of Altius completes exit from non-core division enabling increased focus on Broking & Agencies

Transaction Overview	Transaction Overview
Cash proceeds from sale (net of tax, transaction and other relevant costs)	$57mn
Expected Completion	April 2021
Post-tax profit on disposal (excluded from UNPAT)	$10mn
Financial Impacts
2H21 share of profits – impact on guidance	Included in Market Guidance

AUB Group agreed on 20 January 2021 to sell its shareholding in Altius Group Holdings to The Riverside Company
Implications of the sale on UNPAT Guidance for FY21 already factored into forecasts
With both Allied Health (April 2020) and Altius sold, the Health and Rehab division will be discontinued by April 2021
Proceeds from the sale of Altius will be used to reduce AUB Group corporate borrowings and provide headroom for future M&A and strategic investments

1H21 FINANCIAL PERFORMANCE: OVERVIEW UNPAT growth in 1H21 underpinned by strong organic growth complemented by healthy profits from acquisitions

==> picture [168 x 119] intentionally omitted <==

1H20 to 1H21 Underlying NPAT[1] Breakdown ($mns)

1H17 to 1H21 Underlying NPAT[1] Growth vs Prior Comparative Periods (%)

==> picture [494 x 263] intentionally omitted <==

----- Start of picture text -----

44.2%
36.2%
30.7
1.1 29.0 1.7
4.0 (5.2%) 8.0%
18.8%
4.8  Procare: $0.8mn
21.3  BizCover:
$0.3mn
22.5%  BizCover, acquired in  Other
February, contributing Austbrokers:
$2.7mn (excl JobKeeper) $0.6mn
 Experien, acquired in  5% from
August contributing controlled
$0.8mn entities
1H20 Organic Acquisition Financing costs 1H21 excl. JobKeeper [5] 1H21
Growth [2] Growth [3] of Acquisitions [4] JobKeeper
----- End of picture text -----

==> picture [35 x 10] intentionally omitted <==

----- Start of picture text -----

44.2%
----- End of picture text -----

==> picture [302 x 210] intentionally omitted <==

----- Start of picture text -----

25.3%
15.1%
12.7%
1.8%
1H17 1H18 1H19 1H20 1H21
----- End of picture text -----

1. Underlying NPAT is used by management and the board to assess operational performance and excludes non-operational items, such as profits and losses on sale of equity interests, fair value adjustments to carrying values on ownership changes, changes to estimates or payments of deferred contingent consideration amounts, impairment adjustments and amortisation of intangible assets

2. Organic growth excludes acquisitions growth, financing costs of acquisitions, and JobKeeper receipts

3. Acquisition growth includes the net effect of acquisitions, divestments, bolt-ons and increased equity stakes in 1H21 vs 1H20

4. Represents the interest paid on borrowings to fund acquisitions and interest received on proceeds from divestments

5. 1H21 JobKeeper receipts excluded from the calculation of Staff and Executive Bonuses. Immaterial JobKeeper receipts to be received in 2H21

AUB CORPORATE CASHFLOW OVERVIEW

Operating cash generated of $33.5mn (excluding impact of Altius sale)

==> picture [168 x 119] intentionally omitted <==

AUB Corporate Entity Cash Movement ($mns)

==> picture [875 x 316] intentionally omitted <==

----- Start of picture text -----

Operating cash generated of
$33.5mn [3]
40.0
61.7
11.1
44.6
25.8
24.6
13.0
FY21 Opening Dividend Received Net Corporate Expenses Increased Borrowings [2] Acquisitions net Dividend Paid 1H21 Closing
Cash Balance [1] of Disposals Cash Balance
Head Entity Cash and Debt
Covenants Limit at 31 Dec-20 Actual at 31 Dec-20
Headroom at 31 Dec-20
Gearing Ratio ≤ 45.0% 34.0%
$30mn
Leverage Ratio ≤ 3.00:1 2.30:1
----- End of picture text -----

1. FY21 Opening Cash balance net of FY20 interim dividend payment of $10.3mn. Paid in 1H21

2. Net of 1H21 acquisitions and disposal

3. Excludes impact of Altius sale

==> picture [168 x 119] intentionally omitted <==

SHAREHOLDER RETURNS

Strong uplift of 43.2% in underlying EPS underpinned by excellent organic and acquisition growth

==> picture [894 x 384] intentionally omitted <==

----- Start of picture text -----

Underlying Earnings Per Share [1] (Cents per share)
43.2%
12.0%
0.2%
41.47
28.96
25.80 25.86
1H18 1H19 1H20 1H21
Dividend Per Share (Cents)
35.5
32.0 32.5 10.3%
7.4%
13.5 13.5 14.5 16.0
FY18 FY19 FY20 1H21
Final Dividend Interim Dividend
----- End of picture text -----

1. 1HY18 EPS includes a TERP adjustment of 98.6%. Underlying EPS calculation = (Underlying NPAT) / (weighted average number of shares)

FY21 GUIDANCE: UPGRADE Guidance: Underlying NPAT for FY21 in the range of $63.0mn - $65.0mn, representing growth of 17.9% - 21.7% over FY20

==> picture [168 x 119] intentionally omitted <==

FY21 Underlying NPAT[1] by Half ($mns)

==> picture [459 x 159] intentionally omitted <==

----- Start of picture text -----

63.0 - 65.0
26.0 – 28.0 3.4
2.9
30.7
1H21 Organic Premium Rates Acquisitions [2] FY21 Guidance
----- End of picture text -----

==> picture [376 x 15] intentionally omitted <==

----- Start of picture text -----

FY21 Guidance restatements – Underlying NPAT [1] ($mns)
----- End of picture text -----

==> picture [480 x 140] intentionally omitted <==

----- Start of picture text -----

63.0 – 65.0
60.0 – 62.0
58.5 – 61.0
17.9% - 21.7%
53.4
FY20 Aug-20 Nov-20 Feb-21
----- End of picture text -----

Guidance upgrade driven largely by 1H21 outperformance, previous 2H21 forecast maintained given potential headwinds post government stimulus roll-off in April 2021
Outlook assumes premium rate rises for Australia in the range of 5% to 6%
Currently anticipated small bolt-on acquisitions and shareholding changes in network members are included in forecasts
Estimates exclude the impact of major acquisitions - if these occur, the Group will provide updated guidance
Broking renewals in March and June are assumed to perform in line with historical performance

…we exited 1H21 with strong momentum and are seeing evidence of this continuing in 2H21

2. Acquisitions includes the net effect of acquisitions, bolt-ons and increased equity stakes in 2H21 vs 2H20. Excludes divestments

==> picture [960 x 119] intentionally omitted <==

==> picture [132 x 49] intentionally omitted <==

1H21 INVESTOR PRESENTATION

17 29 37 Appendices

==> picture [168 x 119] intentionally omitted <==

A. 1H21 Financial Results Detail B. AUB Group Portfolio Overview C. AUB Group Business Overview

==> picture [960 x 119] intentionally omitted <==

==> picture [132 x 49] intentionally omitted <==

1H21 Divisional Performance Breakdown

==> picture [168 x 119] intentionally omitted <==

1H20 to 1H21 Underlying NPAT[1] ($mns)

==> picture [839 x 281] intentionally omitted <==

----- Start of picture text -----

44.2%
1.0
0.3 0.3 1.8
4.6
30.7
14.8
21.3
Pre-Tax
1H20 Australian Broking New Zealand Australian Agencies Health and Net Corporate result [2] Tax 1H21
Rehabilitation
----- End of picture text -----

2. Net Corporate result includes corporate income and interest expense

Australian Broking


Profit contribution to AUB Group – Pre-tax ($mns)	1H21	1H20	Movement ($)	Movement (%)
Commission and fee income (net) Premium Funding	201.4 17.7	163.3 17.3	38.1 0.4	23.3% 2.3%
Interest	1.3	3.0	(1.7)	(56.7%)
Other Income Total Underlying Revenue_1_	13.0 233.4	4.4 188.0	8.6 45.4	195.5% 24.2%
Underlying Expenses_1_ UnderlyingEBIT_1_ Profit before tax & non-controlling interests (PBT&NCI) Net profit before tax attributable to equity holders ofparent entity	(156.7) 76.7 75.2 39.3	(140.0) 47.9 44.9 24.6	(16.6) 28.8 30.2 14.8	11.9% 60.1% 67.3% 60.1%
Underlying EBIT margin	32.9%	25.5%	n/a	740bps

==> picture [168 x 119] intentionally omitted <==

60.1% increase in pre-tax profit contribution from Australian Broking to $39.3mn (1H20: $24.6mn), underpinned by excellent organic and acquisition growth
Organic growth assisted by:
increased Commercial Lines premiums averaging 7.4% over the period
ongoing cost reductions due to network rationalisations
Acquisition related profit growth included strong contributions as a result of investments in BizCover (1 February 2020) and Experien (1 August 2020)
EBIT margin 32.9% up 740bps from 1H20

1H20 to 1H21 AUB Share PBT ($mns)[2]

PBT attributable to parent equity holders[2] ($mns)

==> picture [922 x 145] intentionally omitted <==

----- Start of picture text -----

60.1% 60.1%
39.3 39.3
2.4
0.8
5.7
24.6
 BizCover, acquired 19.1 21.8
7.4 in February,  Procare: $1.2mn
24.6 contributing $3.9mn  BizCover: $0.4mn
(excl JobKeeper)  Other
 Experien, acquired Austbrokers:
in August $0.8mn
contributing $1.2mn
1H20 Organic Growth [3] Acquisition Growth [4] Techology JobKeeper [6] 1H21 1H18 1H19 1H20 1H21
Investment [5]
----- End of picture text -----

1. In order to give a more comprehensive view of performance, figures include results from ‘associates’ (not consolidated in the financial statements) at an aggregate 100% of all business revenues, expenses and profits with those of the consolidated businesses before deducting outside shareholder interests. 2. Net profit before tax attributable to equity holders of parent entity

3. Organic growth attributable to equity holders of parent entity excludes Acquisitions growth, Technology investment and JobKeeper receipts

4. Acquisition growth includes the net effect of acquisitions, divestments, bolt-ons and increased equity stakes in 1H21 vs 1H20. Financing costs of Acquisitions are currently being held in Corporate Head Office

5. Technology Investment includes Austbrokers Express Cover

6. JobKeeper receipts excluded from the calculation of Staff and Executive Bonuses

New Zealand

New Zealand

Profit contribution to AUB Group – Pre-tax ($mns)	1H21	1H20	Movement ($)	Movement (%)
Commission and fee income (net) Premium Funding Interest	25.1 1.9 0.1	24.8 2.0 0.3	0.3 (0.1) (0.2)	1.2% (5.3%) (66.7%)
Other Income	0.2	0.3	(0.1)	(33.3%)
Total Underlying Revenue_1_	27.3	27.4	(0.1)	(0.5%)
Underlying Expenses_1_	(19.1)	(19.1)	(0.0)	0.0%
UnderlyingEBIT_1_	8.2	8.3	(0.1)	(1.8%)
Profit before tax & non-controlling interests (PBT&NCI)	7.1	6.6	0.4	6.8%
Net profit before tax attributable to equity holders ofparent entity	5.2	4.9	0.3	5.9%
Underlying EBIT margin	30.0%	30.4%	n/a	(40bps)

==> picture [168 x 119] intentionally omitted <==

Pre-tax profit contribution $5.2mn, an increase of 5.9% on 1H20
Flat premium rates observed towards the end of 1H21
NZbrokers continues to perform well with growth in members and continually enhanced membership proposition including in the technology space

1H20 to 1H21 AUB Share PBT ($mns)[2]

PBT attributable to parent equity holders[2] ($mns)

==> picture [895 x 139] intentionally omitted <==

----- Start of picture text -----

5.9% 5.9%
5.2 5.2
4.9 4.9
0.0 0.3
3.2
2.8
1H20 Organic Growth [3] Acquisition Growth [4] 1H21 1H18 1H19 1H20 1H21
----- End of picture text -----

2. Net profit before tax attributable to equity holders of parent entity

3. Organic growth attributable to equity holders of parent entity excludes Acquisitions growth

4. Acquisition growth includes the net effect of acquisitions, divestments, bolt-ons and increased equity stakes in 1H21 vs 1H20

Australian Agencies

Profit contribution to AUB Group – Pre- tax ($mns) Commission and fee income (net) Interest Other income Total Underlying Revenue1 Underlying Expenses1 UnderlyingEBIT1	1H21 1H20 Movement ($) Movement (%) 28.1 28.4 (0.3) (1.1%) 0.2 0.4 (0.2) (50.0%) 1.0 0.4 0.6 150.0% 29.3 29.2 0.1 0.5% (20.9) (21.1) 0.2 (0.8%) 8.4 8.1 0.3 3.8% 7.5 7.1 0.3 4.8% 5.3 5.5 (0.3) (4.8%) 28.7% 27.8% n/a 90bps
Profit before tax & non-controlling interests (PBT&NCI) Net profit before tax attributable to equity holders of parent entity
Underlying EBIT Margin

==> picture [168 x 119] intentionally omitted <==

4.8% decrease in pre-tax profit contribution from Australian Agencies to $5.3mn (1H20: $5.5mn)
COVID-19 impacted our clients in the Hospitality, Bus and Coach and Film & Entertainment industries during a transitional year
The restructuring of Australian Agencies into General Commercial Underwriting, SURA Specialty and Strata Agencies has commenced, complemented by the investment in 360 Underwriting Solutions in December 2020, which accelerates AUB Group’s scale in Agencies

1H20 to 1H21 AUB Share PBT ($mns)[2]

PBT attributable to parent equity holders[2] ($mns)

==> picture [874 x 137] intentionally omitted <==

----- Start of picture text -----

-4.8% -4.8%
5.5 5.5
0.1 0.1 5.3 5.1 5.3
4.6
1H20 Organic Growth [3] Acquisition Growth [4] 1H21 1H18 1H19 1H20 1H21
----- End of picture text -----

2. Net profit before tax attributable to equity holders of parent entity

3. Organic growth attributable to equity holders of parent entity excludes Acquisitions growth

4. Acquisition growth includes the net effect of acquisitions, divestments and increased equity stakes in 1H21 vs 1H20

Health and Rehabilitation



Profit contribution to AUB Group – Pre- tax ($mns)3	1H21	1H20	Movement ($)	Movement (%)

Underlying Revenue1	20.9	27.5	(6.6)	(23.9%)
Underlying Expenses1	(17.0)	(24.2)	7.2	(29.9%)
Underlying EBIT1 Profit before tax & non-controlling interests (PBT&NCI)	4.0 4.0	3.4 3.2	0.6 0.8	19.0% 26.4%
Net profit before tax attributable to equity holders ofparent entity	2.8	1.8	1.0	58.4%
Underlying EBIT margin	19.1%	12.2%	n/a	690bps

==> picture [168 x 119] intentionally omitted <==

58.4% increase in pre-tax profit from Health and Rehabilitation to $2.8mn (1H20: $1.8mn)
The improved performance was the result of increased revenue and reduced costs in Altius Group
On 20 January 2021, AUB Group entered into an agreement to dispose its interest in Altius Group for cash proceeds of approximately $57mn. The transaction is expected to complete by April 2021. The ‐
sale will result in a post tax profit on disposal of $10mn – this will not be reflected in Underlying Net Profit After Tax

1H20 to 1H21 AUB Share PBT ($mns)[2,3]

PBT attributable to parent equity holders[2,3] ($mns)

==> picture [884 x 151] intentionally omitted <==

----- Start of picture text -----

3.4
58.4% 58.4%
2.8 2.8
0.1
1.1
1.8 1.8
0.8
1H20 Organic growth [4] Acquisition growth [5] 1H21 1H18 1H19 1H20 1H21
----- End of picture text -----

2. Net profit before tax attributable to equity holders of parent entity

3. Allied Health sold 1 April 2020

4. Organic growth attributable to equity holders of parent entity excludes Acquisitions growth

5. Acquisition growth includes the net effect of acquisitions, divestments and increased equity stakes in 1H21 vs 1H20

Strong Balance Sheet and Capital Position

Consolidated Balance Sheet Overview ($mns)	1H21	FY20	Movement
Cash – Corporate	13.0	36.1	(23.1)
Cash – Consolidated	66.3	84.4	(18.1)
Cash – Trust (Consolidated)	159.8	158.8	1.0
Interest-bearing loans and borrowings – Corporate	232.2	192.0	40.2
Interest-bearing loans and borrowings – Consolidated	263.0	231.8	31.2
Investment in Associates	267.3	271.0	(3.7)
Intangible assets and goodwill	510.7	385.5	125.2
Total Assets	1,115.3	1,022.0	93.3
Total Liabilities	560.0	530.0	30.0
Total Equity	555.3	492.0	63.3

==> picture [168 x 119] intentionally omitted <==

The business continues to be strongly cash-generative. Cash generated from operations, together with Corporate debt facilities have been invested in quality growth assets
Intangible assets and goodwill increased due to 360 and Experien acquisitions

1. Gearing ratio = Debt / (Debt + Equity). Includes AUB Group’s percentage share of associates total debt. Gearing ratio covenant 45%

2. Leverage ratio = Debt / (EBITDA at Group + EBITDA of Associates AUB Group's share). Debt includes share of associates. Leverage ratio maximum 3.0:1

AUB Group Debt

Total AUB Group Debt on a look-through basis[1] ($mns)

==> picture [506 x 156] intentionally omitted <==

----- Start of picture text -----

286.6
255.2 40.2 (7.2) (1.6) 18.4
20.0 36.0
43.2
232.2
192.0
Total AUB Group Corporate Debt [2] Consolidated Entity Associates Total AUB Group Debt
Debt 30 June 2020 31 December 2020 [6]
Associates Debt (look through) Consolidated Entities Debt (look through) Corporate Debt
----- End of picture text -----

AUB Group Leverage Ratio[3]

==> picture [524 x 127] intentionally omitted <==

----- Start of picture text -----

2.47
2.30
Average 1.98
7
1.79 1.80
7
1.53
FY17 FY18 FY19 FY20 1H21
----- End of picture text -----

==> picture [168 x 119] intentionally omitted <==

==> picture [228 x 133] intentionally omitted <==

----- Start of picture text -----

34.0%
1H21 AUB Group Gearing
Ratio [4]
(FY20 34.2%)
----- End of picture text -----

==> picture [229 x 133] intentionally omitted <==

----- Start of picture text -----

15.4:1
1H21 AUB Group Interest
Cover Ratio [5]
(FY20 12.4:1)
----- End of picture text -----

1. Look through basis = 100% consolidated debt + AUB share of Associates debt

==> picture [23 x 23] intentionally omitted <==

----- Start of picture text -----

24
----- End of picture text -----

2. Corporate debt includes borrowings, repayments and translation differences

3. Leverage ratio = Debt / (EBITDA at Group + EBITDA of Associates AUB Group's share). Debt includes share of associates. Leverage ratio maximum 3.0:1.

4. Gearing ratio = Debt / (Debt + Equity). Includes AUB Group’s percentage share of associates total debt. Gearing ratio maximum 45%

5. Interest Cover ratio = (Look through debt / debt + equity) / (Group interest expense plus share of associates interest expense). Debt includes share of associates. Interest Cover ratio minimum 4.0:1

6. Includes contingent considerations payables as shown on Note 6 of the Financial Statements

A1.0 Reconciliation of Reporting NPAT to Underlying NPAT[1]

==> picture [168 x 119] intentionally omitted <==

	1H21 ($000)	1H20 ($000)	Movement (%)
Net Profit after tax attributable to equity holders of the parent	23,981	16,596	44.5%
Add back noncontrollinginterest as per financialstatements	5,273	2,325
Add backtaxexpense as per financialstatements	7,635	7,040
Profit beforeincome tax	36,889	25,961	42.1%
Add back/(less):
Add backassociate share oftaxes	7,509	4,338
Amortisationofbrokingregisters8	8,505	4,894
Interest Unwind onput option liability5	98	187
Adjustments to carrying value2,3,7	1,207	4,476
Profit from sale or dilution of interests in associates, controlled entities and broking portfolios4,6	(1,046)	(2,531)
Impairment of the Right of Use Asset and Onerous Lease Expense	592	-
Group share of associateprofit from sale or dilution of interests in associates, controlled entities and broking portfolios4,6	913	(609)
Legal, due diligence and facilitycosts	763	1,254
Non-ControllingInterests pre-taxonunderlyingresults	(10,612)	(7,178)
UnderlyingNet Profit Before Tax	44,818	30,792	45.6%
Taxeffects of the above items	(14,071)	(9,465)
Underlying Net Profit After Tax	30,747	21,327	44.2%

1. The financial information in this table has been derived from the audited financial statements. The Underlying NPAT is non-IFRS financial information and as such has not been audited in accordance with Australian Accounting Standards

2. The Group’s acquisition policy is to defer a component of the purchase price, which is determined by future financial results. An estimate of the contingent consideration is made at the time of acquisition and is reviewed and varied at balance date if estimates change, or payments are made. This adjustment can be a loss (if increased) or a profit (if reduced). Where an estimate or payment is reduced, an offsetting adjustment (impairment) may be made to the carrying value

3. Where the carrying value of a controlled entity exceeds the fair value an impairment expense is recognised during the period

4. Gain/loss on deconsolidation are excluded from Underlying NPAT. Such adjustments will only occur in future if further sales of this type are made

5. Interest expense on movement in value of the put option liability

6. Broking portfolios may be sold from time to time and any gains/loss from sale are excluded from Underlying NPAT

7. The adjustments to carrying values of associates or controlled entities arise where the Group increases its equity in associates whereupon they became controlled entities or decreases its equity in a controlled entity and it becomes an associate (deconsolidated). As required by accounting standards the carrying values for the existing investments have been adjusted to fair value and the increase included in net profit. Such adjustments will only occur in future if further acquisitions or sales of this type are made

8. Amortisation expense is a non-cash item

==> picture [168 x 119] intentionally omitted <==

A2.1 Management Presentation of Results[1]

	1H21 ($’000)	1H20 ($’000)	Movement ($’000)	Movement (%)
Australian Brokingrevenue	233,407	187,952	45,455	24.2%
Australian Broking expenses	(156,676)	(140,036)	(16,640)	11.9%
EBIT - Australian Broking	76,731	47,916	28,815	60.1%
New Zealandrevenue	27,288	27,428	(140)	(0.5%)
New Zealand expenses	(19,106)	(19,097)	(9)	0.0%
EBIT - New Zealand	8,182	8,331	(149)	(1.8%)
Australian Agenciesrevenue	29,287	29,153	134	0.5%
Australian Agencies expenses	(20,883)	(21,059)	176	(0.8%)
EBIT - Australian Agencies	8,404	8,094	310	3.8%
Health & Rehabilitation revenue	20,944	27,533	(6,589)	(23.9%)
Health & Rehabilitation expenses	(16,951)	(24,178)	7,227	(29.9%)
EBIT - Health & Rehabilitation	3,993	3,355	638	19.0%
Total revenue - operatingentities	310,926	272,066	38,860	14.3%
Total expenses - operatingentities	(213,616)	(204,370)	(9,246)	4.5%
EBIT - operating entities	97,310	67,696	29,614	43.7%
Corporate revenue	2,138	2,457	(319)	(13.0%)
Corporate expenses	(7,407)	(7,043)	(364)	5.2%
EBIT - Corporate	(5,269)	(4,586)	(683)	14.9%
Total - Grouprevenue	313,064	274,523	38,541	14.0%
Total - Groupexpenses	(221,023)	(211,413)	(9,610)	4.5%
Total - EBIT before NCI	92,041	63,110	28,931	45.8%
Interest expense - Operatingentities	(3,609)	(5,859)	2,250	(38.4%)
Interest expense-Corporate	(2,542)	(1,429)	(1,113)	77.9%
Total - Interest expense2	(6,151)	(7,288)	1,137	(15.6%)
Profit before NCI	85,890	55,822	30,068	53.9%
Non -ControllingInterest (NCI)	(41,072)	(25,030)	(16,042)	64.1%
Underlying Net profit before tax	44,818	30,792	14,026	45.6%
Income taxexpense	(14,071)	(9,465)	(4,606)	48.7%
Underlying NPAT	30,747	21,327	9,420	44.2%

26 1. The financials in this table show a management view of the underlying performance of all investments, regardless of ownership level. Revenue and expenses includes all revenue and expenses of the underlying businesses, before considering non-controlling interests. This information is used by management and the board to review business performance

2. 1H20 Includes the interest unwind on adoption of AASB16 Lease liabilities. This was re-aligned in FY20 and 1H21

==> picture [168 x 119] intentionally omitted <==

A2.2 Management Presentation of Results[1]

	1H21 ($’000)	1H20 ($’000)	Movement ($’000)	Movement (%)
Australian Brokingrevenue	233,407	187,952	45,455	24.2%
Australian Broking expenses	(158,247)	(143,033)	(15,214)	10.6%
Net profit- Australian Broking	75,160	44,919	30,241	67.3%
Profit attributable to otherequityinterests	(35,846)	(20,363)	(15,483)	76.0%
Australian Broking net profit	39,314	24,556	14,758	60.1%
New Zealandrevenue	27,288	27,428	(140)	(0.5%)
New Zealand expenses	(20,203)	(20,792)	589	(2.8%)
Net profit- New Zealand	7,085	6,636	449	6.8%
Profit attributable to otherequityinterests	(1,846)	(1,690)	(156)	9.2%
New Zealand net profit	5,239	4,946	293	5.9%
Australian Agenciesrevenue	29,287	29,153	134	0.5%
Australian Agencies expenses	(21,821)	(22,028)	207	(0.9%)
Net profit- Agencies	7,466	7,125	341	4.8%
Profit attributable to otherequityinterests	(2,203)	(1,596)	(607)	38.0%
Australian Agencies net profit	5,263	5,529	(266)	(4.8%)
Health&Rehabilitation revenue	20,944	27,533	(6,589)	(23.9%)
Health&Rehabilitationexpenses	(16,954)	(24,376)	7,422	(30.4%)
Net profit- Health&Rehabilitation	3,990	3,157	833	26.4%
Profit attributable to otherequityinterests	(1,177)	(1,381)	204	(14.8%)
Health & Rehabilitation net profit	2,813	1,776	1,037	58.4%
Net profit before corporate income / expenses	52,629	36,807	15,822	43.0%
Corporate expenses	(7,403)	(7,042)	(361)	5.1%
Acquisitionexpenses	(4)	-	(4)	-
Corporatefinance costs	(2,542)	(1,430)	(1,112)	77.8%
Corporateincome	2,138	2,457	(319)	(13.0%)
Net corporate result	(7,811)	(6,015)	(1,796)	29.9%
Net profit before tax	44,818	30,792	14,026	45.6%
Income taxexpense	(14,071)	(9,465)	(4,606)	48.7%
Underlying NPAT	30,747	21,327	9,420	44.2%

1. The financials in this table show a management view of the underlying performance of all investments, after adjusting for non-controlling interests. This information is used by management and the board to review business performance

A3.0 Consolidated Cash flow Statement

==> picture [168 x 119] intentionally omitted <==

	1H21 ($’000)	1H20 ($’000)
Cash flows from operations	50,643	32,861

Cash flows from investing activities
Acquisitions	(35,324)	(8,929)
Net Salesproceeds(net of cash reduced on deconsolidation)	2,395	3,184
Plant equipment / Other	(1,895)	(1,421)
Payments for deferred settlements	(1,407)	(2,251)
	(36,231)	(9,417)
Cash flows from financing activities
Dividends	(40,610)	(25,244)
Proceeds from share capital & DRP	-	-
Net borrowings	30,979	(14,889)
Repayment of lease liabilities	(4,602)	(3,545)
	(14,233)	(43,678)
Net decrease in broker trust account cash	(17,323)	(15,176)
Net increase/(decrease) in cash	(17,144)	(35,410)
Cash and cash equivalents at beginningof theperiod	243,151	219,997
Impact as a result of foreign exchange	143	190
Total cash	226,150	184,777

==> picture [960 x 119] intentionally omitted <==

==> picture [132 x 49] intentionally omitted <==

Market Sizing and AUB Group Share

Australian Insurance Market

==> picture [284 x 295] intentionally omitted <==

----- Start of picture text -----

27%
Total 2020
Premium
$92bn 46%
27%
General Insurance Life Insurance Health Insurance
----- End of picture text -----

==> picture [168 x 119] intentionally omitted <==

==> picture [193 x 269] intentionally omitted <==

----- Start of picture text -----

~
11%
AUB Share of the
Intermediated GI Market
~
22%
AUB Share of the GI SME
Segment
----- End of picture text -----

Data sources: APRA Quarterly General Insurance Performance Statistics (March 2020), APRA Intermediated General Insurance Performance Statistics (December 2019), AIMS Broker view (August 2019) and McKinsey & Company (October 2017)

Insurance Portfolio – Premium and Size

==> picture [168 x 119] intentionally omitted <==

==> picture [783 x 346] intentionally omitted <==

----- Start of picture text -----

Annual Premium [1] ($bns)
3.4
3.2
~$3.6bn [2]
Premium under
2.8
influence across
the AUB
1.8 network
1.8
2H 1.5
1.8
~1.4mn
Australian Broking Policies written
within the AUB
1.8
1.6 network (FY20)
1.4
1H 1.3
FY18 FY19 FY20 FY21
----- End of picture text -----

1. Total includes premium and commission from AUB Network brokers, Agencies GWP, excluding fees, levies and taxes

2. Updated to include 360 Underwriting Solutions – Annual GWP of $170mn

Stable and Predictable Operational Drivers

==> picture [473 x 285] intentionally omitted <==

----- Start of picture text -----

~$3.6bn [1]
Premium under
influence across
the AUB
network
~9%
increase in average premium
per client CAGR over the last
3 years [2]
~1.4m
…supported by a small but
Policies written consistent increase in average
within the AUB policies per client
network (FY20)
----- End of picture text -----

==> picture [42 x 75] intentionally omitted <==

==> picture [168 x 119] intentionally omitted <==

==> picture [275 x 273] intentionally omitted <==

----- Start of picture text -----

89%
1H21 Premium
Retention [3]
(excl. rate increases)
(1H20: 89%)
----- End of picture text -----

1. Updated to include 360 Underwriting Solutions – Annual GWP of $170mn

2. Analysis is based on available data from key Australian Broking businesses as at 30 June 2020

3. Premium retention is based on individual clients, regardless of policy size

Diversified Australian Broking Portfolio Mix[1]

==> picture [168 x 119] intentionally omitted <==

==> picture [872 x 334] intentionally omitted <==

----- Start of picture text -----

Client Segment Mix Product Line Mix Geography Mix Insurer Mix
Corporate Business PI NSW WA NT Allianz National Transport Insurance
26% 19% 6% 38% 12% 2% 12% 3%
Medium Enterprise Liability Motor - Fleet VIC SA TAS QBE SURA
25% 11% 5% 20% 9% 1% 12% 3%
Small Enterprise Personal Farm QLD ACT CGU AIG
43% 11% 4% 15% 3% 8% 2%
Personal ISR Other Chubb 360
6% 11% 21% 6% 2%
Motor - Commercial VERO Global Transport & Automotive Insurance
6% 5% 2%
o Retail = Retail / Personal Lines clients
o Small Enterprise = Client account size <50k Workers Comp Millenium SwissRe
o Medium Enterprise = Client account size 50k-250k 6% 4% 2%
o Corporate = Client account size 250k+
Zurich Other
4% 35%
----- End of picture text -----

~ 11% AUB Share of the Intermediated GI Market

~22% AUB Share of the GI SME Segment

1. Portfolio mix is based on available data from key Australian Broking businesses as at 30 June 2020

Group Insurance Portfolio Mix: Product and Insurer

==> picture [168 x 119] intentionally omitted <==

Portfolio Mix – Premium by Product / Risk Line

Portfolio Mix – Premium by Insurer

==> picture [216 x 309] intentionally omitted <==

----- Start of picture text -----

19%
24%
11%
4%
4%
4%
8%
4%
4%
8%
5%
5%
Business Workers Comp
Liability Motor - Private
Motor - Commercial Farm
Householders Property
ISR Motor - Fleet
PI Other
----- End of picture text -----

==> picture [229 x 296] intentionally omitted <==

----- Start of picture text -----

11%
32% 10%
8%
2%
2% 8%
2%
3%
7%
4%
5% 6%
QBE CGU Ando
Allianz Millenium AIG
VERO Lloyd’s Other
Chubb Zurich
IAG National Transport Insurance
----- End of picture text -----

Portfolio mix is based on available data from key Australian Broking, New Zealand and Australian Agencies businesses as at 30 June 2020

Insurance Portfolio Mix: Category and Geography

==> picture [168 x 119] intentionally omitted <==

==> picture [823 x 328] intentionally omitted <==

----- Start of picture text -----

Portfolio Mix – by Category (%) Portfolio Mix – by Geography (%)
12%
13%
NT
2% QLD
12%
WA
8%
NSW
SA 29%
8% ACT
2%
87% 88%
VIC
15%
Commercial Lines Personal Lines NZ
TAS
23%
1%
----- End of picture text -----

Portfolio mix is based on available data from key Australian Broking, New Zealand and Australian Agency businesses

Insurance Operations: Reach and Scale

==> picture [168 x 119] intentionally omitted <==

==> picture [838 x 350] intentionally omitted <==

----- Start of picture text -----

~11%
>450 NT
AUB Share of the
5 locations QLD
locations 13% 75 locations Intermediated GI
Market (AU)
WA
29 locations
SA NSW
29 locations 139 locations
ACT ~22%
>3,000 8 locations
AUB Share of the GI
staff 87% VIC SME Segment (AU)
54 locations
TAS NZ
5 locations 151 locations
----- End of picture text -----

Data sources for market sizing and share calculations: APRA Quarterly General Insurance Performance Statistics (March 2020, APRA Intermediated General Insurance Performance Statistics (December 2019), AIMS Broker view (August 2019) and McKinsey & Company (October 2017)

==> picture [960 x 119] intentionally omitted <==

==> picture [132 x 49] intentionally omitted <==

AUB Group – An Overview[1]

64 broking partner businesses.
AUSTRALIAN  Established complementary capabilities in Life Insurance Broking, Premium Funding, Claims
BROKING Management, Legal Services, Loss Adjustment, and Investigations.
9 partner businesses including 7 major broker partners, an underwriting agency, and the largest
NEW ZEALAND broking management group in NZ, with presence in 151 locations.
AUSTRALIAN  Design, distribute and manage specific niche insurance products and portfolios via 19 agencies
AGENCIES[2] on behalf of locally licensed insurers and Lloyd’s.
Delivering to our partners’ product, capacity, technology and claims needs through AMS.
GROUP SERVICES
Provision of partner services through AMS Finance and Accounting.
HEALTH AND  Adjacent market equity investments in businesses
REHABILITATION with capabilities in health and rehabilitation services.

==> picture [168 x 119] intentionally omitted <==

$3.6BN+ GWP[2]

17

STRATEGIC INSURANCE PARTNERSHIPS

INSURANCE BROKING OF $3.0BN VIA EQUITY AND NETWORK PARTNERS | SPECIALIST AGENCIES $545MN

~700K ~1.4MN >450 CLIENTS POLICIES LOCATIONS

34YRS OF ACTIVE PARTNERSHIP EXPERIENCE

==> picture [238 x 172] intentionally omitted <==

----- Start of picture text -----

LARGEST EQUITY BASED
BROKING GROUP IN
AUSTRALASIA
----- End of picture text -----

3,000 STAFF

Helping our clients to safeguard a stronger, protected future…

All data as at 30 June 2020 except where indicated
Updated to include 360 Underwriting Solutions - Annual GWP of $170mn

Our Board of Directors

David Clarke

Non-Executive Chair, Chair of the Nominations Committee

==> picture [124 x 123] intentionally omitted <==

40 years experience in investment banking, funds management, property and retail banking
Chair of Charter Hall Group, Resolution Life Australia and Fisher Funds Management Limited
Former CEO of Investec Bank, Allco Finance Group and MLC Limited
Former director of AMP Limited and Westpac's Wealth Management Business, BT Financial Group

Robin Low

Non-Executive Director, Chair of the Audit & Risk Committee

==> picture [124 x 124] intentionally omitted <==

Former PwC partner with over 30 years experience in financial services
Director of Appen, IPH, Marley Spoon, The Australian Reinsurance Pool Corporation, Gordian Runoff, Guide Dogs NSW/ACT, Sax Institute, Public Education Foundation and Primary Ethics
Former Deputy Chair of the Auditing and Assurance Standards Board

==> picture [168 x 119] intentionally omitted <==

Cath Rogers

Non-Executive Director

==> picture [124 x 124] intentionally omitted <==

Previously held senior roles in leading investment and financial services organisations in Sydney and overseas including AirTree Ventures, Anchorage Capital Partners, Masdar Capital and Credit Suisse
Director of Digital Wallet (Beem It)
Director and co-founder of Digital Receipt Exchange Limited
Former Director of McGrath Limited and Heart Research Institute
Former director of CSG Limited

Mike Emmett CEO & Managing Director

==> picture [124 x 124] intentionally omitted <==

Previously held senior roles in Australia as Group CEO for Cover-More, previously an ASX-listed global travel insurer and now part of the Zurich Group, at QBE as Group Executive, Operations and at EY leading the Financial Services Advisory business.
International roles include leading Insurance and Banking consulting teams at IBM, Accenture and PwC in London and South Africa
Mike is also currently a Non-Executive Director of 1stGroup (ASX:1ST) and the Gold Coast Suns FC

Ray Carless

Non-Executive Director

==> picture [124 x 123] intentionally omitted <==

Over 40 years’ experience in the insurance industry experience based in Australia, but with management responsibilities throughout the Pacific rim
Former Managing Director of reinsurance brokers Benfield Greig in Australia, involved in the Australian insurance industry

Paul Lahiff

Non-Executive Director, Chair of the Remuneration & People Committee

==> picture [124 x 123] intentionally omitted <==

Former Managing Director of Mortgage Choice, Executive Director of Heritage Bank and Permanent Trustee and held senior roles in Westpac in Sydney and London.
Director of NESS Super, Sezzle Ltd, 86400 Holdings
Member of the Enterprise Ireland Business Advisory Panel

Notice

==> picture [168 x 119] intentionally omitted <==

SUMMARY INFORMATION

This document has been prepared by AUB Group Limited (ABN 60 000 000 715) (AUB). It is a presentation of general background information about AUB’s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete. It is to be read in conjunction with AUB’s other announcements released to ASX (available at www.asx.com.au). It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with professional advice, when deciding if an investment is appropriate.

TERMINOLOGY

This presentation uses Underlying NPAT to present a clear view of the underlying profit from operations. Underlying NPAT comprises consolidated profit after tax adjusted for value adjustments for the carrying value of associates, after tax profits on the sale of portfolios, interests in associates and controlled entities, contingent consideration adjustments, and income tax credits arising from the recognition of deferred tax assets. It is used consistently and without bias year on year for comparability. A reconciliation to statutory profit is provided in the appendix to this Presentation.

FORWARD LOOKING STATEMENTS

This document contains certain “forward-looking statements”. The words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Due care and attention has been used in the preparation of forecast information. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of AUB, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that the actual outcomes will not differ materially from these statements. Neither AUB nor any other person gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. Except as required by applicable law or the ASX Listing Rules, AUB disclaims any obligation or undertaking to publicly update any forward looking statements, whether as a result of new information or future events.

Statements about past performance are not necessarily indicative of future performance.

NOT AN OFFER

This document does not constitute an offer, invitation, solicitation, recommendation, advice or recommendation with respect to issue, purchase, or sale of any shares or other financial products in AUB. This document does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to any “US person” (as defined in Regulation S under the US Securities Act of 1933, as amended (Securities Act) (US Person)). Securities may not be offered or sold in the United States or to US Persons absent registration or an exemption from registration. AUB shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or jurisdiction of the United States.

AI assistant

AUB GROUP LIMITED — Interim / Quarterly Report 2021

64456_rns_2021-02-22_45729244-3121-4446-90d0-406bd957d82b.pdf

FOR RELEASE TO THE MARKET

Half Year FY2021 Results - Announcement and Investor Presentation

ENDS

About AUB Group

1H21 Performance Overview

Summary

Highlights by operating division

Australian Broking

New Zealand

Australian Agencies

Health & Rehabilitation

Capital Management

Dividends

FY21 Outlook and Guidance Upgrade

AUB 1H21 PRESENTATION OF FINANCIAL RESULTS TABLES

Table 1 Financial Results Summary

Table 2 Reconciliation of Underlying NPAT to Reported NPAT[1 ]

Table 3 Management Presentation of Results

KEY MESSAGES

FINANCIAL HIGHLIGHTS 1H21

1H21 FINANCIAL PERFORMANCE: DIVISIONAL

EXCEPTIONAL PERFORMANCE

VISION: TO BE THE WAY SMEs INSURE THEIR BUSINESS MISSION: TAKE THE HASSLE OUT OF BUSINESS INSURANCE

REINVIGORATING THE AGENCIES DIVISION

EXIT FROM HEALTH & REHABILITATION ON TRACK S ale of Altius completes exit from non-core division enabling increased focus on Broking & Agencies

1H20 to 1H21 Underlying NPAT[1] Breakdown ($mns)

AUB CORPORATE CASHFLOW OVERVIEW

Operating cash generated of $33.5mn (excluding impact of Altius sale)

AUB Corporate Entity Cash Movement ($mns)

SHAREHOLDER RETURNS

FY21 Underlying NPAT[1] by Half ($mns)

1H21 INVESTOR PRESENTATION

1H21 Divisional Performance Breakdown

1H20 to 1H21 Underlying NPAT[1] ($mns)

Australian Broking

1H20 to 1H21 AUB Share PBT ($mns)[2]

PBT attributable to parent equity holders[2] ($mns)

New Zealand

1H20 to 1H21 AUB Share PBT ($mns)[2]

PBT attributable to parent equity holders[2] ($mns)

Australian Agencies

1H20 to 1H21 AUB Share PBT ($mns)[2]

PBT attributable to parent equity holders[2] ($mns)

Health and Rehabilitation

1H20 to 1H21 AUB Share PBT ($mns)[2,3]

PBT attributable to parent equity holders[2,3] ($mns)

Strong Balance Sheet and Capital Position

AUB Group Debt

Total AUB Group Debt on a look-through basis[1] ($mns)

AUB Group Leverage Ratio[3]

A1.0 Reconciliation of Reporting NPAT to Underlying NPAT[1]

A2.1 Management Presentation of Results[1]

A2.2 Management Presentation of Results[1]

A3.0 Consolidated Cash flow Statement

Market Sizing and AUB Group Share

Australian Insurance Market

Insurance Portfolio – Premium and Size

Stable and Predictable Operational Drivers

Diversified Australian Broking Portfolio Mix[1]

Group Insurance Portfolio Mix: Product and Insurer

Portfolio Mix – Premium by Product / Risk Line

Portfolio Mix – Premium by Insurer

Insurance Portfolio Mix: Category and Geography

Insurance Operations: Reach and Scale

AUB Group – An Overview[1]

17

Our Board of Directors

David Clarke

Robin Low

Cath Rogers

Ray Carless

Paul Lahiff

Notice

SUMMARY INFORMATION

TERMINOLOGY

FORWARD LOOKING STATEMENTS

NOT AN OFFER

AUB GROUP LIMITED Interim / Quarterly Report 2021