AUSTRALIAN UNITY LIMITED — Investor Presentation 2021

Sep 6, 2021

==> picture [528 x 73] intentionally omitted <==

ASX Announcement

7 September 2021

Australian Unity Limited – Full Year Investor Update

Please find attached Australian Unity Limited’s Investor Update relating to the financial results for the year ended 30 June 2021.

-end-

This announcement has been authorised for distribution to the ASX by:

The Board of Australian Unity Limited

T: + 61 3 8682 6819

If securityholders or other interested parties require further information please contact:

Michael Moore

ASX code: AYU

Securities on Issue: AYUPA – 1,200,000 AYUHC – 1,150,192 AYUHD – 2,070,000

General Manager – Public Affairs & Communications

T: 1300 408 776

E: media@australianunity.com.au

Issuer: Australian Unity Limited ACN 087 648 888

Enquiries: Australian Unity Registry 1300 554 474

Contact details: Australian Unity Limited 271 Spring Street Melbourne VIC 3000 Tel: 13 29 39

The listing of Australian Unity Securities on the ASX does not affect Australian Unity Limited’s status as a mutual organisation

Australian Unity Limited Investor update

==> picture [234 x 64] intentionally omitted <==

==> picture [191 x 121] intentionally omitted <==

==> picture [359 x 24] intentionally omitted <==

Financial results for the year ended 30 June 2021

==> picture [292 x 261] intentionally omitted <==

==> picture [219 x 54] intentionally omitted <==

Australian Unity Limited is pleased to invite you to our investor presentation teleconference for the year ended 30 June 2021

==> picture [247 x 23] intentionally omitted <==

Date

Wednesday 8 September 2021

Time

9:30am to 10:30am AEST

To access the teleconference participants must register in advance via the link below:

https://apac.directeventreg.com/registration/event/9864689

If you are unable to attend, you are welcome to email any queries you may have to:

tisteer@australianunity.com.au

Once registered, each participant will be provided with dial in numbers, an event passcode and a participant PIN.

Please dial in 10 minutes prior to the scheduled start of the event.

We will endeavour to respond to your queries by email or during the teleconference.

2

AUL FY21 Investor presentation

Important information

This notice relates to all information provided as a part of this presentation including, without limitation, these slides, associated presentations and any oral presentations by the representatives of Australian Unity Limited ACN 087 648 888 ( AUL ) or its officers, directors, employees, agents, advisers or consultants made in connection with or arising out of this presentation ( Information ).

==> picture [219 x 54] intentionally omitted <==

To the maximum extent permitted by law, AUL, its related bodies corporate and each of its respective officers, directors, employees, agents, advisers or consultants accept no responsibility for the Information including, but not limited to, forward looking information or projections and disclaim any and all liability whatsoever for any loss or damage, however so arising, from any use or reliance on the Information.

This presentation has been prepared by AUL.

The Information is intended for discussion purposes only and for no other purpose. The Information is provided to parties on the basis that they are persons to whom an invitation or offer of securities would not require disclosure under section 708 of the Corporations Act 2001 (Cth).

The Information is not financial product advice and reliance should not be placed on the Information or opinions contained therein.

The Information does not take into consideration the investment objectives, financial situation or particular needs of any particular investor.

AUL makes no representation or warranty, express or implied, as to the fairness, accuracy, completeness, correctness or reliability of the statements, estimates, opinions, conclusions and other information contained in the Information.

The Information is not and does not form an offer, or part of an offer or invitation, to subscribe for or purchase securities. Investors must make their own independent assessment of AUL and its related entities and undertake such additional enquiries as they deem necessary or appropriate for their own investment purposes. Past performance is no indication or guarantee of future performance.

You should be aware that any forecast, projection or other forward looking statement in the Information is subject to inherent risks, uncertainties and factors beyond AUL’s control. Those risks and uncertainties include factors and risks specific to the business of AUL and its related entities as well as general economic conditions and may cause actual results, performance or achievements to be materially different from those expressed or implied by those statements.

AUL FY21 Investor presentation

3

==> picture [219 x 54] intentionally omitted <==

1. Overview and Group highlights

2. Business results

3. Summary and outlook

==> picture [186 x 188] intentionally omitted <==

Rohan Mead

Group Managing Director and CEO

==> picture [186 x 188] intentionally omitted <==

Darren Mann

Group Executive Finance & Strategy and Chief Financial Officer

==> picture [184 x 188] intentionally omitted <==

Beverly Smith

Executive General Manager Residential Communities, Independent & Assisted Living

AUL FY21 Investor presentation

4

==> picture [219 x 54] intentionally omitted <==

==> picture [331 x 321] intentionally omitted <==

Overview and Group highlights

AUL FY21 Investor presentation

5

Overview of Australian Unity

==> picture [219 x 54] intentionally omitted <==

Mutual with a commitment to members, customers and community

==> picture [301 x 15] intentionally omitted <==

• Established in 1840, a member-owned company with 400,000 members and more than 700,000 customers

• Diversified but thematically-linked portfolio of health, wealth and care businesses that provides member, customer and community value and is supportive of personal and community wellbeing

AUL FY21 Investor presentation

6

People & safety

==> picture [219 x 54] intentionally omitted <==

We know that supporting the real wellbeing of our people means they can better support our members and customers.

==> picture [416 x 14] intentionally omitted <==

Safety

• Strong incident reporting culture with a significant improvement in incidents reported compared to same time last year. This contributed to improved return to work rates

• Commenced Self Insurance license in NSW on 1 July 2020 supporting human centred care and support for injured workers resulting in a material reduction in ‘lost days’ due to injury

Wellbeing

• 90% of eligible employees took two days' paid wellbeing leave (>4,300 days)which supported their wellbeing in a way that mattered most to them

• Launched our ‘Your Wellbeing Matters’ program to provide a range of wellbeing support, including webinar sessions about self care, wellness activities and remote working assessments

The COVID-19 pandemic contributed to proactive management of new and emerging risks, particularly in the areas of wellbeing, remote working and COVID-19 safe work plans across all business operations.

Continued to deliver key initiatives under our Safer Me program aimed at maturing our safety culture; implementing an online and mobile accessible safety portal ‘Donesafe’, developing a comprehensive safe work system, proactively managing hazards, reducing injuries, supporting injured employees back to work and differentiating Australian Unity as a great place to work.

• The October 2020 employee People Pulse survey saw 72% of employees rate wellbeing as the number one activity the company is doing well. Group eNPS[1] increased by 7 points

• Launched additional mental health supports to employees through Remedy MindStep® and Healing Minds

7

1Employee net promoter score

FY2021 Strategic priorities

==> picture [219 x 54] intentionally omitted <==

==> picture [681 x 363] intentionally omitted <==

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

Sustain
momentum for
Deliver health &
Implement Herston Quarter human
PHI strategy STARS [1] services
Mobilise
Generate cash portfolio
Manage for
earnings capability &
financial
seize
safety
opportunities
----- End of picture text -----

1Surgical, Treatment and Rehabilitation Service (STARS) public hospital at the Herston Quarter health precinct.

8

AUL FY21 Investor presentation

FY2021 Operational review

==> picture [219 x 54] intentionally omitted <==

Advancing strategic ambitions

• Further progressed strategy of building a commercially sustainable portfolio of businesses that provides member, customer and community value and fosters personal and community wellbeing

• Delivered a sound financial result despite COVID-19 adverse impacts and challenges

• Continued positive impact of improvements in the Home Care Services business; developing improved and sustainable patient and outcomefocused healthcare services; ongoing advancement of the social infrastructure agenda, including the major milestone of practical completion and commercial acceptance of the Surgical, Treatment and Rehabilitation Service (STARS) public hospital at the $1.1 billion Herston Quarter health precinct in Brisbane

• Undertook Australia’s first Mutual Capital Instrument (MCI) issue, raising $120 million

• The Board has determined a final fully franked dividend of $2.5068 per mutual capital instrument to be paid on 15 October 2021[1]

• Retired remaining $71.3 million of Series B Australian Unity Bonds when they matured in December 2020

COVID-19

• Continued impact of COVID-19 included the implementation of extraordinary measures to seek to protect aged care residents, home care customers and the employees who support them; the provision of hardship relief for health insurance and banking customers; and the effect of tightened economic circumstances

• Responded by maintaining, and where possible improving, levels of service and responsiveness to the needs of members and customers, while pursuing efficiency measures to mitigate risks and curtail expenditures. Also focused on the welfare and impact on employees. In line with claims savings due to the impact of the pandemic, further premium relief of approximately $6 million will be delivered in the 2022 financial year

• Group’s overall results affected—with impacts including the deferment of private health insurance premium increases; client cancellations and interruptions to regular home care, disability, dental and health care servicing; some additional government funding receipts; reduced lending and property services activity fees; increased cost of additional personal protective equipment (PPE) and related consumables and cost containment undertaken in response to these pandemic effects

• 1The financial effect of this dividend has not been brought to account in the financial statements for the full year ended 30 June 2021 and will be recognised in subsequent financial reports.

9

AUL FY21 Investor presentation

Measuring Community & Social Value

==> picture [219 x 54] intentionally omitted <==

Priority outcomes

Impact report

• Australian Unity will publish its inaugural impact report in October 2021

• The report will detail our Environmental, Social & Governance (ESG) risks and impact

==> picture [112 x 113] intentionally omitted <==

Lifelong wellness

1. Better access to healthcare

2. Improved health outcomes

3. It will include measurement of the value created under our Community & Social Value (CSV) outcomes framework

4. The process to calculate value is underway with Social Ventures Australia

5. We have focused our strategy and reporting on six priority outcomes

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

Economic empowerment

1. Building financial resilience

2. Opportunities through employment

==> picture [112 x 112] intentionally omitted <==

Strong communities

1. Leading social innovation

2. Supporting living in place

10

AUL FY21 Investor presentation

FY2021 financial summary

==> picture [219 x 54] intentionally omitted <==

Key financial statistics	FY2021	FY20201	Change
Revenue and other income ($m)	1,706.1	1,400.9	305.2
Total expenses, excluding financing costs ($m)	1,586.6	1,378.4	208.2
Profit after tax ($m)	32.9	9.1	23.8
Operating earnings ($m)	52.1	30.3	21.8
Total MCI dividend in relation to FY21 ($m)2	4.8
Payout ratio in relation to FY21 (total MCI dividend / profit after tax) (%)	14.7%

1 Comparative information has been restated following adjustments made to prior year financial statements. Further information about the nature and impact of the restatement is included in the 2021 Annual Report at Note 21(c).

2 Consists of actual MCI dividend paid in April 2021 and dividend determined to be paid in October 2021. The financial effect of the dividend determined to be paid in October 2021 has not been brought to account in the financial statements for the full year ended 30 June 2021 and will be recognised in subsequent financial reports.

11

AUL FY21 Investor presentation

FY2021 key metrics

==> picture [219 x 54] intentionally omitted <==

Profit after income tax[1 2] ($m)

==> picture [646 x 277] intentionally omitted <==

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

60.0
50.0
40.0
30.0
50.3
48.8
45.1
20.0
32.9
10.0
9.1
0.0
FY2017 FY2018 FY2019 FY2020 FY2021
----- End of picture text -----

1 Included in the FY2018 result was a profit from discontinued operations of $66.9m from the divestment of the Group’s corporate health insurance subsidiary, Grand United Corporate Health Limited (GUCH) completed 31 October 2017.

2 Comparative information has been restated following adjustments made to prior year financial statements. Further information about the nature and impact of the restatement is included in the 2021 Annual Report at Note 21(c).

12

AUL FY21 Investor presentation

FY2021 segment earnings growth

==> picture [219 x 54] intentionally omitted <==

==> picture [147 x 41] intentionally omitted <==

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

1
Adjusted EBITDA ($m)
FY2020 FY2021
----- End of picture text -----

==> picture [594 x 199] intentionally omitted <==

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

90.0
81.8
80.0
71.1
70.0
61.2
57.4
60.0
50.0
40.0
32.8
27.3
30.0
20.0
10.0
0.0
2
Independent & Assisted Living Retail Wealth & Capital Markets
----- End of picture text -----

1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of its business segments. This measurement basis excludes the effects of tax, depreciation and amortisation, interest expense and investment income. It also excludes material non-recurring expenditure and shared services costs. 2 Comparative information has been restated following adjustments made to prior year financial statements. Further information about the nature and impact of the restatement is included in the 2021 Annual Report at Note 21(c).

13

AUL FY21 Investor presentation

Building balance sheet flexibility and resilience

==> picture [452 x 233] intentionally omitted <==

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

250 30 June 2020 maturity profile [1] ($m)
200
Orange indicates
issuances and
150 25
facilities
20 18 refinanced/redeemed
100 207 and blue indicates
71 new issuances /
115
50 facilities during the
38 period
-
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
Series C AUL Bonds Series D AUL Bonds
Retirement Village Investment Notes 2 Other external loans
Herston Development Loans (Refinanced) Series B AUL Bonds (Redeemed)
Retirement Village Investment Notes (Refinanced) Undrawn Revolving Loan (Refinanced)
Retirement Village Investment Notes (New) Drawn Revolving Loan (New)
Undrawn Revolving Loan (New) Mutual Capital Instruments (New)
Drawn Development Loans (New) Undrawn Development Loans (New)
----- End of picture text -----

30 June 2021 maturity profile[1] ($m)

==> picture [427 x 145] intentionally omitted <==

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

250
200
150 35
18
100 76 207
50 24 115 120
25
33
16
-
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 Perpetual
----- End of picture text -----

==> picture [219 x 54] intentionally omitted <==

Continued to build flexibility into the balance sheet, positioning for strategic opportunities to be realised. Key activities during FY2021 included:

• extension of existing corporate bank facility

• execution of a further $120m of corporate bank facilities and $35m of on balance sheet development debt

• issuance of an additional $33.2m in Retirement Village Investment Notes

• redemption of AUL’s remaining $71.3m Series B Bonds

• Australia’s first issuance of Mutual Capital Instruments raising a total of $120m

Activity post 30 June 2021:

• Acquisition of Greengate residential communities portfolio

• AUHPT Premium Cash Offer

• $25m additional group bank debt raised

1 Funding maturity profile shows consolidated interest bearing liabilities as at 30 June 2020 and 30 June 2021 that contribute to the Covenant Gearing Ratio debt (excluding Authorised Deposit-Taking Institution (ADI) borrowings) and Australian Unity Limited’s Mutual Capital Instruments, which contribute towards gearing ratio equity.

• 2 Loan facilities from a related entity for the development of the Herston Quarter health precinct in Brisbane, Queensland.

14

Gearing analysis and interest cover

==> picture [219 x 54] intentionally omitted <==

Covenant gearing ratio[1]

==> picture [302 x 254] intentionally omitted <==

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

60% 600
50% 500
40% 400
30% 300
20% 200
10% 100
0% 0
Debt Capacity to covenant limit ($m) (RHS)
Bonds Gearing Ratio (LHS)
Bonds Covenant maximum (LHS)
----- End of picture text -----

Interest cover ratio[1,2]

==> picture [290 x 228] intentionally omitted <==

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

10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Interest cover ratio
Interest cover ratio (excluding AASB16 impact)
----- End of picture text -----

Ratios at 30 June 2021

• Covenant gearing ratio 29% based on covenant gearing calculations. The AUL MCI issuance contributes towards equity in the calculation, increasing debt capacity under the covenant.

• • Interest cover ratio 3.18 times, including the impact of AASB16 Leasing. Excluding the impact of AASB16 the interest cover ratio is 4.84 times.

1 Comparative information for June 2020 has been restated following adjustments made to prior year financial statements. 2 Interest cover ratio is not a debt covenant and is included for illustrative purposes, the value is calculated on a rolling 12-month basis.

15

AUL FY21 Investor presentation

Evolution of funding over a decade

==> picture [219 x 54] intentionally omitted <==

Bank Debt

The group’s funding sources have continued to evolve since the issue of Australian Unity Limited’s first listed debt in FY2011.

• support from the banking group remains strong

• increase to corporate liquidity facilities

==> picture [401 x 352] intentionally omitted <==

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


Cost of external 8.6% 3.6% •
debt and equity
1,400
Bank Debt
1,200
Development Loans •
Corporate Bank Debt
1,000 •
Debt Capital Markets
RVINs
800
Corporate Bonds /
Notes
600 •
Subordinated Debt
•
400 Equity
MCI
Members Funds
200
0 •
30-Jun-11 30-Jun-21
Millions
----- End of picture text -----

• continued utilisation of development loans, at reduced all-in rates

Debt Capital Markets

• increase in listed AUL debt from $120 million to $322 million

• decrease in AUL listed debt margin from 3.55% to 2.10% while increasing tenor from 5 to an average of 6.3 years

Equity

• approximate $360m increase in Members’ Funds at CAGR of 6.8%

• issued Australia’s first Mutual Capital Instrument

• 120 contributing $120m to group equity. Instruments are traded on the ASX and have annual dividend of 5% plus franking credits

Funds

• total funds managed by the Group increased from $11.9 billion to $27.9 billion

16

AUL FY21 Investor presentation

==> picture [219 x 54] intentionally omitted <==

Independent & Assisted Living

==> picture [309 x 321] intentionally omitted <==

17

AUL FY21 Investor presentation

Independent & Assisted Living (IAL)

==> picture [219 x 54] intentionally omitted <==

==> picture [158 x 245] intentionally omitted <==

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

1
Adjusted EBITDA ($m)
FY2020 FY2021
71.1
57.4
Independent & Assisted Living
Segment Revenue ($m)1
FY2020 FY2021
520.6
484.6
----- End of picture text -----

• Improved operating model driving customer-centred continuum of care across the home care, residential care and Remedy Healthcare businesses

• Total segment revenue increase of 7.4% to $520.6m compared to prior corresponding period (PCP)—despite significant disruption as a result of the COVID-19 pandemic

• Adjusted EBITDA of $71.1m represented an increase of 23.9%, or $13.7m on the PCP

==> picture [95 x 65] intentionally omitted <==

Independent & Assisted Living

1 Comparative information has been restated following adjustments made to prior year financial statements.

Figures at 30 June 2021, unless otherwise noted

18

AUL FY21 Investor presentation

IAL highlights

Home Care Services Residential (HCS) Communities

Remedy Healthcare

==> picture [135 x 14] intentionally omitted <==

==> picture [126 x 16] intentionally omitted <==

==> picture [125 x 13] intentionally omitted <==

• EBITDA increase of $10.7m[1] to $29.4m from improvement initiatives and significantly reduced non care worker travel, offsetting cost increases associated with COVID-19 related Personal Protective Equipment (PPE)

• •

• Owned and operated 21 Increased revenue by retirement communities 44.2% to $41.0m, driven across Victoria and predominantly by Allied NSW, comprising 2,496 Health Services (30 June independent living units 2020: $28.4m) (30 June 2020: 2,496) •

• Delivered 410,000+

  • episodes of care across 14 treatment programs

• Occupancy levels across portfolio’s mature retirement villages remained high at over 94%

• Despite COVID-19, delivered more than 6,900 ‘hospital substitution’ programs—an increase of 53.1% on the PCP

• Approx. 3m hours of care delivered to 38,000+ customers by 3,021 care workers

• Owns and operates seven aged care facilities in Victoria and NSW, incorporating 786 aged care beds (30 June 2020: 786)

• Total Home Care Packages (HCP) under management reached 8,824, an increase of 1,850 on the prior year

• Mature aged care portfolio continued to achieve top-quartile occupancy at above 95%

• Aboriginal Home Care business unit delivered approx. 240,000 hours of care to 2,400+ clients by 196 care workers

• Restricted and contained any COVID-19 outbreaks in facilities

==> picture [219 x 54] intentionally omitted <==

Development pipeline

Dental

==> picture [119 x 15] intentionally omitted <==

==> picture [125 x 16] intentionally omitted <==

• Six dental clinics • Continued to progress operating in Victoria development pipeline

• • including the Industry significantly redevelopment of the

• impacted by COVID-19 120 bed Walmsley

• restrictions, forcing clinics to cease Residential Aged Care Facility in Kilsyth,

• operating for an Victoria, and a vertically

• extended period, integrated residential

• except for permitted aged care and assisted

• emergency dental treatment living development in South Melbourne,

• • Patient visits declined Victoria comprising 84

• by 8.3% to 41,187 due aged care beds and 71

• to Victorian assisted living

• government apartments

• restrictions on nonprogrammed to be

• essential dental completed mid-late

• services (30 June 2022 2020: 44,915)

1 Comparative information has been restated following adjustments made to prior year financial statements.

Figures at 30 June 2021, unless otherwise noted

19

AUL FY21 Investor presentation

IAL outlook

==> picture [219 x 54] intentionally omitted <==

• Continue to orientate the business around the needs of customers and key stakeholders in their health and wellbeing—families, primary carers, communities and government agencies

• Continue HCS strong results through growth in HCPs, increased service hours per customer, safety management, ongoing cost saving initiatives as well as growth in its frontline workforce to meet ongoing increases in customer demand

• Pandemic is expected to continue to present significant ongoing challenges and disruption throughout the next financial year. Notwithstanding, the business is well positioned and has proven its ability to continue to deliver essential services to its customers and keep them safe

20

IAL focus on scale

==> picture [219 x 54] intentionally omitted <==

Focus on scale in co-located retirement and aged care precincts: 30% ILU increase, 130% RAC bed increase delivered or underway since FY2019

• Australian Unity is delivering diversified expansion through:

• Greenfield/Precinct Development: The Grace RV, Drummond Place RV, Racecourse and Sienna Grange RACF, Auchenflower precinct, Lane Cove precinct

• Asset Redevelopment/Repurposing: 114 Albert Rd RACF & ALA, Walmsley RACF

• Targeted Acquisition: Hunters Hill RV, Greengate precincts

• During this period Australian Unity has made a gross investment of over $700m ¹ in these growth initiatives

Portfolio growth since 2018/19

==> picture [23 x 9] intentionally omitted <==

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

2,990
----- End of picture text -----

==> picture [278 x 119] intentionally omitted <==

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

410
295
1,369
2,285 553
225
591
RV/AL Units RAC Beds
----- End of picture text -----

RV/AL Units

Trading up/developing Acquisitions Underlying portfolio 2018/19

• The Greengate acquisition, completed 7 July 2021, delivers immediate scale – 253 ILU and 225 RAC beds – and is uniquely optimised to our strategic criteria:

• Fully contemporary – opened 2015-2018

• Purpose-built, integrated RV and RAC

• Metro Sydney and Metro Brisbane

• High occupancy, strong performing sites

• High RAD payers and residential standard

  • Adaptable for ‘small household’

==> picture [285 x 152] intentionally omitted <==

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

Expanding our eastern seaboard footprint
QLD
303 units
7%
VIC VIC
NSW NSW
1,337 units 1,908 units
1,539 units 46% 2,148 units 44%
54% 49%
----- End of picture text -----

21

AUL FY21 Investor presentation

¹ Financed via group capital and retained profits, development capital and resident funding

‘Small household’ model

==> picture [219 x 54] intentionally omitted <==

We are one of Australia’s leading ‘small household’ aged care providers with ten years’ experience in the design, build and operation of this model

• The Aged Care Royal Commission (Feb 2021) recommended the ‘small household’ model as the best and most appropriate residential aged care accommodation for older people

• Recommendation 45: Improving the design of aged care accommodation by publishing a comprehensive set of National Aged Care Design Principles and Guidelines which embody ‘small household’ models

• Recommendation 46: Capital grants for ‘small household’ models of accommodation from Jan-22; increased to $1b p.a. by 2023-24, indexed for inflation thereafter

• Recommendation 142 : To the extent RADs are phased out post-2025, the subsequent regime will be designed to assist/incentivise ‘small household’ providers

• We are uniquely positioned to deliver this model which we call Better Together®

• Sector leading inhouse architects and designers of ‘small household’ models of accommodation for assisted living, aged care and dementia

• Refined ‘small household’ operating model including dedicated household rosters, continuity and consistency of staffing with 73% on permanent contracts, already delivering new requirement of an average exceeding 200 minutes of care staff time per resident per day portfolio-wide

• Healthy Ageing Precincts comprising co-located retirement and aged care offers customers a continuum of care and accommodation options to enable ageing in place. High levels of customer engagement and advocacy with ~96% occupancy (StewartBrown industry average of 92.5% for mature homes)

22

AUL FY21 Investor presentation

Delivering C&SV in Residential Communities

==> picture [219 x 54] intentionally omitted <==

==> picture [112 x 113] intentionally omitted <==

Lifelong wellness

• Better access to healthcare

• Improved health outcomes

• Enabling the population to age well by investing in the design, development and operations of co-located retirement and small household aged care communities for over a decade

• 82% of our Aged Care customers are Better Together® residents. Research[1] has shown this model can improve the quality of life for residents and improved clinical outcomes

==> picture [112 x 113] intentionally omitted <==

Economic empowerment

• Building financial resilience

• Opportunities through employment

• Targeting 85% permanent employment, consistent rosters, and ongoing professional development

• Accommodation pricing below median house price to support equity release options

==> picture [112 x 113] intentionally omitted <==

Strong communities

• Leading social innovation

• Supporting living in place

• Social model of ageing-in-place comprising households filled with 100% of residents living in high quality facilities with natural light, views of nature, fresh air, community connection and meaningful engagement

1 Dyer S et al. Clustered domestic model of residential care is associated with better consumer rated quality of care. International Journal for Quality in Health Care , 2018, 1–7

23

AUL FY21 Investor presentation

==> picture [219 x 54] intentionally omitted <==

Retail

==> picture [310 x 322] intentionally omitted <==

24

AUL FY21 Investor presentation

Retail

Adjusted EBITDA ($m) FY2020 FY2021 81.8 61.2 Retail Segment Revenue ($m) FY2020 FY2021 709.5 704.6 Retail

Segment Revenue ($m)

==> picture [219 x 54] intentionally omitted <==

• Delivered a strong financial result despite the significant challenges and disruption presented by the COVID-19 pandemic

• Adjusted EBITDA of $81.8 million—33.6% higher than the PCP

• While revenue marginally decreased, saw growth in the number of private health insurance (PHI) policyholders of 1.7% (excluding overseas visitor cover policyholders), postponed the April 2020 premium increase to October 2020 and April 2021 premium increase was the lowest premium rate increase in 20 years

• $18m of COVID-19 support measures, with a further ~$6m in premium relief in FY22

• Lower claims expenses incurred (with COVID-19 related claims catch-up slower than expected) resulting in deferred claims liability increasing from $37.6m to $51.3m

• Total operating expenses down 3.9% to $622.8m

Figures at 30 June 2021, unless otherwise noted

25

AUL FY21 Investor presentation

Retail highlights

Australian Unity Health Limited Private health insurance (PHI)

==> picture [254 x 14] intentionally omitted <==

• Growth in PHI policyholders, up 1.7% to 174,827

• Deferred Claims Liability* (DCL) increased from $37.6m to $51.3m principally due to restrictions on elective surgery and ancillary services in

• PHI policy sales up 35.8% and attrition down 21.1%

• Overseas visitor cover impacted by government border closures, with policyholders decreasing 33.6%

• Victoria

• Delayed April 2020 premium rate increase to October 2020

• April 2021 lowest average AUHL increase in 20 years (average increase of 1.99%—below sector average of 2.74%)

• Continued momentum in digitisation to support direct sales and customer self service

Deferred Claims Liability	$m
DCL as at 30 June 2021	51.3
Increase in provision during the period	27.5
Unwind of provision during the period	(14.3)
Movement in other components	0.5
DCL as at 30 June 2020	37.6

• The Deferred Claims Liability is an additional provision held as a result of surgeries and other health services being restricted during the COVID-19 measures

==> picture [219 x 54] intentionally omitted <==

Australian Unity Bank Limited

==> picture [254 x 14] intentionally omitted <==

• ~26,000 customers, with total assets growing by $16.9m to $1.15b (30 June 2020: $1.13b)

• Expected Credit Loss provision on loans decreased by $3.1m to $13.3m (30 June 2020: $16.4m)

• Average loan book of $915.9m was $67.7m, or 8.0% above the previous year

• Continued focus on delivering quality products and services, with emphasis on digital delivery

• Despite COVID-19 challenges, Gross Loan Portfolio decreased marginally by $9.6m to $918.7m (30 June 2020: $928.1m)

• Implemented the Kookaburra Securitisation Program, a self-securitisation structure acting as a contingent liquidity support capability with 94% of notes rated as ‘AAA’ and providing further access to the RBA’s Term Funding Facility

• Issuer Credit Rating by Standard & Poor's remained stable at 'BBB+'

Figures at 30 June 2021, unless otherwise noted

26

AUL FY21 Investor presentation

Retail outlook

==> picture [219 x 54] intentionally omitted <==

==> picture [279 x 437] intentionally omitted <==

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

•
•
•
•
•
----- End of picture text -----

• Outlook remains cautiously positive, notwithstanding known impacts and ongoing uncertainties flowing from COVID-19 on healthcare and the economy

• Anticipate that most health insurance claims deferred due to restrictions on healthcare services during the pandemic will catch up

• Securitisation program introduced in the year under review will support the bank’s growth agenda and allow the bank to continue to grow at above sector rates

• The extension of the banking business's funding sources through securitisation, expansion of its distribution footprint and strengthened general insurance offering together with an improved health insurance customer value proposition are all key elements to Retail’s business development strategy

• Focusing on developing packages of banking and insurance products; innovative solutions to tackling health and housing affordability; and customer-centered digital platforms that assist the coordination of essential financial and health insurance related services

27

==> picture [219 x 54] intentionally omitted <==

Wealth & Capital Markets

==> picture [309 x 321] intentionally omitted <==

28

AUL FY21 Investor presentation

Wealth & Capital Markets (W&CM)

==> picture [219 x 54] intentionally omitted <==

==> picture [122 x 14] intentionally omitted <==

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

Adjusted EBITDA ($m)
----- End of picture text -----

==> picture [157 x 274] intentionally omitted <==

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

FY2020 FY2021
32.8
27.3
Wealth & Capital Markets
Segment Revenue ($m)
FY2020 FY2021
221.1
170.5
----- End of picture text -----

• 29.7% increase in total segment revenue to $221.1m, reflecting the ongoing impact of the pandemic in suppressing growth across most business lines, offset by a positive performance in the Property business, and higher revenues from recoverable development costs on the Herston Quarter project

• Adjusted EBITDA decreased by 16.8% to $27.3m

• Aggregate value of assets under management and administration of $27.89b (2020: $22.94b)

Wealth & Capital Markets

Figures at 30 June 2021, unless otherwise noted

29

AUL FY21 Investor presentation

W&CM highlights

==> picture [219 x 54] intentionally omitted <==

Life & Super Advice Trustees

• Investments Property Life & Super

• • FUMA of $10.46b • Assets under management • Funds under management (2020: $8.22b), with increased to $4.10b (2020: and administration of $2.51b positive net flows from $3.52b) (2020: $2.27b) retail, middle and • Multi-year development pipeline • Sales reached $207.4m institutional markets and at $1.25b (2020: $1.29b) (2020: $217.5m)—a

• strong investment performance across key • Lending and debt facilities on significant outcome in an behalf of investors of $1.57b extremely low interest rate

• product areas environment and during the

• • Launched Future of (2020: $1.37b) pandemic Healthcare Fund and • Achieved major milestone at • Continued growth in the grew the Green Bond $1.1b Herston Quarter precinct, direct-to-consumer market,

• Fund to $178.0m with practical completion and with the 10Invest Investment

• • Group’s investment commercial acceptance of the Bond and launched the coSurgical, Treatment and

• portfolio of $937.0m branded Platinum Rehabilitation Service (STARS)

• (2020: $811.7m), Investment Bond with public hospital

• including capital stable Platinum Asset Management and highly liquid • Healthcare Property Trust (HPT) • Continued leading position in insurance reserves increased FUM to $2.64b pre-paid funeral market with

• • Weighted average (2020: $2.20b) and posted a FUM of $714.2m total return of 28.1% (wholesale

• investment returns of the (2020: $736.2m) across units) for the year

• Group’s investment 90,000+ clients portfolio of 1.8% for the • NorthWest/GIC consortium year reflected resilient withdrew proposal to acquire performance across a 100% of HPT units diverse array of • Specialist Disability investment activities in a Accommodation Fund settled challenging environment 31 dwellings and has 8 parcels of land for development, with a combined value of completed and dwellings committed or under construction totalling $118.1m

==> picture [118 x 14] intentionally omitted <==

==> picture [118 x 15] intentionally omitted <==

• 171 advisers (2020: 176)

  • Established pipeline of estates, trusts and protected persons opportunities enabled continued inflows of new clients and associated revenue—with a notable uplift in this pipeline in the second half of the year

• FUA growth to $9.36b

• (2020: $2.27b) (2020: $7.14b), and

• • Sales reached $207.4m personal life insurance (2020: $217.5m)—a premiums in-force up to significant outcome in an $74.6m (2020: $69.0m) extremely low interest rate • Revenue increased environment and during the 8.4% to $65.4m (2020: pandemic

• Revenue increased 8.4% to $65.4m (2020: $60.4m)

• Funds under management grew by 6.5%

• Separately managed (SMA) investment accounts constructed by the Advice business grew in FUM to $716.5m (2020: $391.8m)

  • Increased size of will bank nationally, with a healthy percentage of executor, trustee and enduring power of attorney appointments in estate plans written enhancing its latent value

• Continued leading position in pre-paid funeral market with FUM of $714.2m (2020: $736.2m) across 90,000+ clients

• AUL FY21 Investor presentation • Diversified Property Fund posted a return of 19.6%

Figures at 30 June 2021, unless otherwise noted

30

W&CM outlook

==> picture [219 x 54] intentionally omitted <==

==> picture [279 x 437] intentionally omitted <==

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

•
•
•
•
----- End of picture text -----

• Period ahead should continue to provide opportunities to offer customers valuable investment opportunities and to deliver increased community and social value

• Expansion of funding to the childcare property sector is an example of the value that Australian Unity can bring to supporting Australian families

• Opportunities are being actively pursued to further the Group’s ambitions in becoming a significant force in health and wellbeing precincts, building on the experience at Herston Quarter

• Well positioned to benefit from collective impact of the rising need for better-planned wealth accumulation, challenges and opportunities presented by an ageing population, the changing regulatory landscape and community expectations

31

10 year growth strategy

==> picture [219 x 54] intentionally omitted <==

==> picture [401 x 246] intentionally omitted <==

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

Financial Members Employees
Combination of organic Focus on building Growth driven on level of
and inorganic growth, relationship with members portfolio growth in Human
targeting $100m NPAT to drive product uptake, as Services businesses
well as attracting new
members
Reach
Important element of being a socially focused mutual
----- End of picture text -----

32

AUL FY21 Investor presentation

FY2022 priorities

==> picture [219 x 54] intentionally omitted <==

Realise the value of the modern mutual

Create the building blocks to form deeper relationships with members, based on improving wellbeing outcomes and superior interaction with the Group

Build social infrastructure reach

Continuing to realise and extend our presence within the Social Infrastructure realm

Accelerate momentum in health and human services

Continuation of the program of work already underway to leverage the opportunities across the Continuum of Care, including those anticipated from the Royal Commission

Generate cash earnings

Focus will remain on maximising the sustainable, repeatable cash earnings of the group

33

AUL FY21 Investor presentation

==> picture [219 x 54] intentionally omitted <==

==> picture [481 x 157] intentionally omitted <==

34