#1Australian Unity Limited Investor update Financial results for the full-year ended 30 June 2023 Australian Unity Real Wellbeing#2Australian Unity Real Wellbeing Australian Unity Limited is pleased to invite you to our investor presentation teleconference for the full-year ended 30 June 2023 If you are unable to attend, you are welcome to email any queries you may have to Malin Eek: [email protected] We will endeavour to respond to your queries by email or during the teleconference Date Thursday 31 August 2023 Time 9:30am to 10:30am AEST To access the teleconference participants must register in advance via the link below: https://registrations.events/signup/ID81264 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 AUL FY2023 Investor presentation 2#3Important information Australian Unity Real Wellbeing 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). 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. AUL FY2023 Investor presentation 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. 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. 3#4AUL FY2023 Investor presentation Australian Unity acknowledges the Traditional Owners of the lands and waters within Australia and recognises the important connection to Country that Aboriginal and Torres Strait Islander peoples have. 4#5Agenda and presenters 1. Overview and Group highlights Australian Unity Real Wellbeing 2. Business results 3. Summary and outlook Rohan Mead Group Managing Director and CEO AUL FY2023 Investor presentation Prue Bowden Chief Executive Officer - Home Health Darren Mann Group Executive Finance & Strategy and Chief Financial Officer 5#6Overview and Group highlights AUL FY2023 Investor presentation Australian Unity Real Wellbeing 6#7. Overview of Australian Unity Mutual wellbeing company with a commitment to members, customers and community Australian Unity Real Wellbeing Established in 1840, a member-owned company with more than 370,000 members and more than 7,500 employees Diversified but thematically-linked portfolio of health, wealth and care businesses that provides member, customer and community value that supports personal and community wellbeing AUL FY2023 Investor presentation Figures at 30 June 2023, unless otherwise noted 7#8FY2023 operational review Advancing strategic ambitions . • • • . • Australian Unity Real Wellbeing Further progressed strategy of building a commercially sustainable portfolio of businesses with the reshaping of the Independent & Assisted Living platform into two new areas, Home Health and Specialist Care Profit after tax was $56.8m (2022: $45.7m). The FY2023 year included a $17.8m pre-tax profit on the disposal of the Group's dental activities, while the prior year included $39.4m of pre-tax business combination uplifts arising from the acquisition of Greengate Partnership Pty Ltd and obtaining a controlling interest in the Platypus Asset Management business. Home Health operating model developed encouragingly, improving its patient and outcome-focused healthcare services Results in the Retail and Specialist Care platforms improved over the financial year, while those of the W&CM platform were impacted by investment and real estate market volatility and relative performance by the prior year business combination uplifts Following a review of our aged care operations in light of broad challenges facing the sector, the Group confirmed in June 2023 that it would continue its involvement in this sector Continued to advance social infrastructure agenda, which included the further growth of funds invested in critical social infrastructure, such as healthcare and aged care facilities, disability accommodation and childcare The Board has determined a final fully franked dividend of $2.5068 per mutual capital instrument to be paid on 16 October 20231 AUL FY2023 Investor presentation 1The financial effect of this dividend has not been brought to account in the financial statements for the year ended 30 June 2023 and will be recognised in subsequent financial reports. 8#9• FY2023 operational review cont. Market impacts • • . Australian Unity Real Wellbeing Markedly different operating environment compared to the prior year, following the unwinding of most of the COVID-19 pandemic restrictions Economy, businesses and communities faced the post-pandemic impact of significant investment market disruption and volatility, increasing inflation, rapidly increasing interest rates and policy interventions in industry settings Impact of the COVID-19 pandemic continued to be felt in many ways across the Group's businesses. We continued to respond to these conditions by maintaining, and where possible improving, levels of service and responsiveness to the needs and wellbeing of members, customers and employees, while pursuing efficiency measures to mitigate risks and curtail expenditures Australian Unity remains positive about its capacity to respond to these challenges, including those posed by higher inflation, and looks to seize the opportunities arising from the external environment of uncertainty and market disruption Announced the deferral of the implementation of the 2023 premium increase for private health insurance (PHI) policyholders from 1 April 2023 to 1 November 2023 In addition, announced with these full-year accounts that it plans a further deferral of the 2023 premium increase until 1 April 2024 This deferral adds to the package of financial support and relief measures previously provided to support PHI policyholders through the pandemic and is in recognition of the impact of restrictions on access to some healthcare services, and will bring the total support measures to some $98m Further consumer support measures for eligible PHI policyholders will be considered by the board AUL FY2023 Investor presentation Figures at 30 June 2023, unless otherwise noted 9#10FY2023 priorities Realise the value of the social enterprise Create the building blocks to form deeper relationships with members, based on improving wellbeing outcomes and superior interaction with the Group 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 AUL FY2023 Investor presentation Realise the value of the social enterprise Build social infrastructure reach Generate Accelerate momentum in health & human services cash earnings Australian Unity Real Wellbeing Build social infrastructure reach Continuing to realise and extend our presence within the social infrastructure realm Generate cash earnings Focus will remain on maximising the sustainable, repeatable cash earnings of the Group 10#11Community & Social Value Framework Australian Unity Real Wellbeing • A research based approach to wellbeing We were Australia's first member- owned wellbeing company, formed over 180 years ago We have partnered with Deakin University for more than 20 years to develop the Australian Unity Wellbeing Index Positive social impact is part of our DNA-the development of our Community & Social Value (CSV) framework strengthens our commitment and accountability in delivering Real Wellbeing • • SVA Consulting Expert methodology advisor A best in class partnership with Social Ventures Australia has ensured a robust CSV measurement system design and bespoke application Our methodology relies on a strong set of principles based on the accepted Social Return on Investment methodology Consistent innovation and updates of our methodology based on the latest information available ensures we are current, relevant and working with the best data available Robust framework and governance Our framework focuses on outcomes, not inputs The methodology considers impacts to individuals, the community around them as well as to the overall system We utilise a robust discounting methodology to ensure we do not overclaim social value Ongoing review each year ensures we are continuously improving The Board engaged PwC to provide independent limited assurance on the social impact value created by Australian Unity, (estimated using our CSV framework) • How we use the CSV framework Our framework is mandated and utilised in decision making Inform investment and business decisions to create a purpose- driven, sustainable and impactful portfolio Secure and raise capital funding and investment from like-minded investors Enable ongoing reporting of impact performance for accountability and transparency Create a positive place to work where our people feel empowered to create impact in their roles AUL FY2023 Investor presentation 11#12Community & social value FY23 SVA Consulting $1.76b in total community and social value for FY23 FY23 FY22 Priority outcomes ($m) ($m) ifelong wellness Better access to healthcare 802 699 $802m Better access Improved health outcomes 180 221 to healthcare Building financial resilience 188 184 Opportunities through 46 53 employment Leading social innovation 223 122 Supporting living in place 317 353 Total 1,756 1,632 AUL FY2023 Investor presentation $317m Supporting living in place $540m $982m $234m Australian Unity Real Wellbeing Strong communities $223m Leading social innovation $180m Improved health outcomes $188m Building financial resilience empowerment Economic $46m Social and economic opportunities through employment 12#13Community & social value - value bridge ($m) Australian Unity Real Wellbeing 178 215 1,632 FY22 CSV Increase Driven by AU outcomes and inflation Increase Due to revision of outcomes and methodology % change +13.2% +10.9% Note: Totals may not correspond to sum of separate figures due to rounding. AUL FY2023 Investor presentation 1,756 -263 -6 Decrease Due to revision of financial proxies (16.1%) Decrease Due to revision of discount rates FY23 CSV (0.4%) +7.6% 13#14Community & social value by platform ($m) 800 700 600 500 400 300 200 100 Notes: • • Decrease in Home Health driven by revision of methodology and financial proxies (~$114m decrease) Retail uplift driven by PHI deep dive (~$200m) • WCM uplift driven by increased investment into social infrastructure across Property HPT and SDA Australian Unity Real Wellbeing 0 Home Health Retail Specialist Care Wealth & Capital Markets FY21 ■FY22 FY23 AUL FY2023 Investor presentation 14#15FY2023 financial summary Australian Unity Real Wellbeing Key financial statistics Revenue and other income ($m) Corporate entity income ($m) FY2023 FY2022 Change 1,858.2 1,361.3 496.9 1,597.2 1,533.1 64.1 Investment earnings ($m) 60.2 10.0 50.2 Benefit funds income ($m) 200.8 (181.8) 382.6 Total expenses, excluding financing costs ($m) 1,709.5 1,356.8 (352.8) Corporate entity expenses ($m) 1,542.9 1,473.8 (69.1) Benefit funds expenses ($m) 166.7 (117.0) (283.7) Operating earnings ($m) 76.6 48.5 28.1 56.8 45.7 11.1 Profit after tax¹ ($m) Total MCI dividend in relation to the financial year² ($m) Payout ratio (total MCI dividend in relation to the financial year / profit after tax)³ (%) 17.2 30 17.2 38 1 FY2022 included a $20.3m before tax revaluation of the investment in the Platypus Asset Management business on the Group's acquisition of a controlling interest and a $19.1m business combination gain on the acquisition of Greengate Partnership Pty Ltd. 2 FY2023 consists of actual dividends paid in April 2023 and dividend determined to be paid in October 2023. The financial effect of the dividend determined to be paid in October 2023 has not been brought to account in the financial statements for the full-year ended 30 June 2023 and will be recognised in subsequent financial reports. For FY2022, total MCI dividend consists of actual MCI dividend paid in April 2022 and October 2022. 3 Total MCI dividend consists of actual MCI dividend paid in April 2023 and dividend determined to be paid in October 2023. For FY2022, total MCI dividend consists of actual MCI dividend paid in April 2022 and October 2022. Profit after tax relates to the financial years of 2022 and 2023. 15#16FY2023 key metrics 60 60 50 50 40 30 20 10 Profit after income tax ($m) 56.8 I. ill 50.3 9.1 32.9 45.7 0 FY2019 FY2020 FY2021 FY2022 ¹ 1 1 FY2023 Australian Unity Real Wellbeing 1 The FY2023 year included a $17.8m pre-tax profit on the disposal of the Group's dental activities while the prior year included $39.4m of before tax business combination uplifts arising from the acquisition of Greengate Partnership Pty Ltd and obtaining a controlling interest in the Platypus Asset Management business. AUL FY2023 Investor presentation 16#17FY2023 segment earnings Adjusted EBITDA12 ($m) Australian Unity Real Wellbeing 140.0 120.0 100.0 80.0 60.0 45.4 40.0 33.1 20.0 94.9 0.0 Home Health Retail 130.6 FY2022 ■FY2023 65.6 56.9 38.7 15.5 Specialist Care Wealth & Capital Markets 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 In FY2022, adjusted EBITDA of Specialist Care included a $19.1m gain related to a business combination uplift arising from the acquisition of Greengate Partnership Pty Ltd. Also, adjusted EBITDA of Wealth & Capital Markets for FY2022 included a revaluation gain of $20.3m arising from a business combination revaluation AUL FY2023 Investor presentation 17#18Building balance sheet flexibility and resilience 400 350 300 250 200 150 18 100 91 115 50 5 33 35 Australian Unity Real Wellbeing 30 June 2022 ($m) 30 June 2023 ($m) ■Series D AUL Bonds 400 ■Mutual Capital Instruments 350 Repaid Revolving Loan 300 Undrawn Revolving Loan 250 Other external loans 200 350 ■Repaid Development Loan 350 6 Undrawn Development Loan 150 18 207 Undrawn Revolving Loan (New) 100 207 100 Drawn Development Loan 5 сл 115 50 8 ■Retirement Village Investment Notes 33 35 0 Perpetual ■Series C AUL Bonds FY2023 FY2024 FY2025 FY2026 FY2027 Perpetual FY2023 FY2024 FY2025 FY2026 FY2027 Continued to build flexibility into the balance sheet, positioning for strategic opportunities to be realised. Key activities during FY2023 included: • Refinancing of $100m of corporate bank facilities for 3.25 years, increasing the tenor of the debt portfolio . . Walmsley RAC centre successfully reached practical completion in FY23 and has recorded a strong first half year operationally, repaying a total of $16m. Repayment of $9m corporate bank facility As of June 2023, the Group has $135m of undrawn committed debt facilities, $124m of cash and one significant maturity in 20252 On 28 August Australian Unity Limited and Westpac Banking Corporation entered into a sustainability linked loan for $50m for 3 years, that is linked to the delivery of CSV, such that the interest rate is adjusted by discounts or penalties depending on the Group's achievement of growth in our community and social value measurement. 1 Funding maturity profile shows consolidated interest bearing liabilities as at 30 June 2022 and 30 June 2023 that contribute to the Covenant Gearing Ratio debt (excluding Authorised Deposit-Taking Institution (ADI) borrowings) and Australian Unity Limited's Mutual Capital Instruments, which contribute towards gearing ratio equity. 2 Australian Unity is giving consideration to an offer of Simple Corporate Bonds, including a potential offer to holders of Australian Unity Bonds Series C (ASX: AYUHC) to roll their investment into a new instrument. Net proceeds of such an issue would be used for general corporate purposes including the repayment of debt. No decision has been made to proceed with any offer, and any offer would be subject to appropriate market conditions being maintained. Any offer would be made under a 2-part' Simple Corporate Bonds prospectus and if any transaction were to proceed, investors wishing to participate would need to apply using an application form accompanying the prospectus. 18#19Gearing analysis and interest cover Gearing Ratio Covenant gearing ratio 8.00 60.00% 900 800 50.00% 700 40.00% 600 500 30.00% 400 20.00% 300 Debt Capacity ($m) 7.00 6.00 200 10.00% 5.00 4.00 3.00 2.00 1.00 100 0.00% 0 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Debt Capacity to covenant limit ($m) (RHS) Bonds Covenant Gearing Ratio (LHS) Bonds Covenant Gearing Ratio Maximum (LHS) Interest cover ratio¹ Dec-19 Jun-20 Dec-20 Jun-21 Interest cover ratio Australian Unity Real Wellbeing Dec-21 Jun-22 Dec-22 Interest cover ratio (excluding AASB16 impact) Jun-23 Ratios at 30 June 2023 Bonds covenant gearing ratio 25% based on covenant gearing calculations. The AUL MCI issuance contributes towards equity in the calculation, increasing debt capacity under the covenant. • Interest cover ratio 3.53 times, including the impact of AASB16 Leasing. Excluding the impact of AASB16 the interest cover ratio is 7.99 times. AUL FY2023 Investor presentation 1 Interest cover ratio is not a debt covenant and is included for illustrative purposes, the value is calculated on a rolling 12-month basis. 19#20Home Health AUL FY2023 Investor presentation Australian Unity Real Wellbeing 20 20#21Home Health Australian Unity Real Wellbeing Adjusted EBITDA ($m) ■FY2022 FY2023 33.1 45.4 Provides a range of home and clinical care services across both community and virtual settings-designed to meet the ongoing health and wellbeing needs of our customers and support them to live in their preferred setting for longer • Solid financial gain in first year of operation Total segment revenue of $424.0m for the year, represented an increase of 11.7% compared to the prior corresponding period (PCP) Home Health Segment Revenue ($m) ■FY2022 FY2023 424.0 379.7 Home Health AUL FY2023 Investor presentation • Adjusted EBITDA of $45.4m represented an increase of $12.3m or 36.8% on the PCP Figures at 30 June 2023, unless otherwise noted 21 21#22Societal needs leading Home Health transformation Australian Unity Real Wellbeing Ageing population Chronic disease management Mental health AUL FY2023 Investor presentation Models of care innovation 22 22#23Foundations of Home Health Australian Unity Real Wellbeing Brains of a large-scale logistics company Heart of a quality healthcare company AUL FY2023 Investor presentation S 23#24Home Health highlights Australian Unity Real Wellbeing • . . Home Health saw more than 178 million safe minutes of care delivered to our customers by 3,259 healthcare workers across community and virtual care services Despite the shortage of front line workforce experienced across the care sector, Home Health achieved healthcare employee growth against the industry trend. After a net decline of 224 workers in the prior year, 345 net new employees joined the business in the year under review Total Home Care Packages under management grew by 7.4% to 10,785 (2022: 10,043) More than 64,000 hours of allied health services were delivered to home care clients of Australian Unity, an increase of 14.3% (2022: 56,306) Aboriginal Home Care business delivered approximately 13.2 million safe minutes of care to customers Delivered 6,973 'hospital substitution' programs in the period, an increase of 14.8% (2022: 6,074) First full year of operations for the Beyond Blue support service delivered approx. 206,000 interactions, providing often critical mental health interventions to users of the service Ramsay Connect—the joint venture with Ramsay Healthcare-increased patient numbers in community care hospital substitution and rehabilitation programs by 20.0% AUL FY2023 Investor presentation Figures at 30 June 2023, unless otherwise noted 24#25Home Health outlook Australian Unity Real Wellbeing • Remains focused on becoming an integrated healthcare company delivering services across community and virtual settings Continues to leverage the competitive advantage of being a full service provider with the ability to deliver care across clinical and non clinical services, along with a focus on strategic partnerships, to accelerate growth in safe minutes of care Workforce growth and transformation of business operations—including a material investment in technology—will continue to be key priority areas, supporting the business to be well positioned to meet the evolving needs and growing demand for services from our customers, along with the broader sector reform likely to accompany the introduction of Support at Home in July 2025 Following the Fair Work Commission decision, from 1 July 2023 the cost base of the Home Health business materially increased, reflecting the decision to increase the wages of care workers by 15%. The Home Health business has subsequently reviewed and amended pricing, which together with proposed government funding, will allow the business to manage the increased costs Figures at 30 June 2023, unless otherwise noted 25 45#26Retail AUL FY2023 Investor presentation Australian Unity Real Wellbeing 46 26#27Retail Australian Unity Real Wellbeing Adjusted EBITDA ($m) ■FY2022 94.9 ■FY2023 Retail 130.6 Segment Revenue ($m) ■FY2022 FY2023 Brings together private health insurance and the banking businesses and seeks to provide packages and solutions that contribute to solving affordability challenges and meet the contemporary needs of Australians Delivered a strong result for the year, with an adjusted EBITDA of $130.6m-37.6% higher than the PCP Revenue of $746.0m represented a 4.2% increase on the PCP Total operating expenses were $615.4m-$5.7m or 0.9% lower than the PCP. This decrease reflected a $45.0m reduction in health insurance claims net of risk equalisation, $22.1m increase in banking interest expense, which was related to the increase in interest rates, and a $17.2m increase in other operating expenses across the Retail platform 746.0 716.1 Retail AUL FY2023 Investor presentation Figures at 30 June 2023, unless otherwise noted 27#28Retail highlights Australian Unity Health Limited Private health insurance (PHI) Australian Unity Bank Limited Australian Unity Real Wellbeing • • • • PHI policyholders decreased by 3.6% to 162,294 (2022: 168,317) Overseas visitor cover policyholders increased by 20.9% to 3,915 (2022: 3,238) The Federal Minister for Health and Aged Care approved Australian Unity Health Limited's (AUHL) 2023 Premium Round submission, with an average increase of 3.76%. AUHL deferred this premium increase from 1 April 2023 to 1 November 2023, in light of lower claims experience A further deferral of the 2023 premium increase until 1 April 2024 is announced Experienced some operational systems and technology issues in second half of the year that unfortunately impacted the fund's ability to process members' claims in a timely manner. We apologise to these customers for this negative experience, which has since been remedied and we have now achieved operational improvements The PHI Deferred Claims Liability1 relating to claims deferred due to COVID-19 government restrictions on some private healthcare services was reduced from $71.0m at 30 June 2022 to nil at 30 June 2023, with no remaining expectation of material claims catch-up • • Deferred Claims Liability $m • DCL as at 30 June 2022 71.0 . Unwind of provision during the period (70.2) Movement in other components (0.8) DCL as at 31 June 2023 1 The Deferred Claims Liability was an additional provision held as a result of surgeries and other health services being restricted during COVID-19 Approximately 26,000 customers, with total assets growing by $58.2m to $1,394.4m (2022: $1,336.1m) New lending growth along with increases in Reserve Bank of Australia (RBA) cash rates led to a 11.4% increase in net interest income Average gross loan book of $1,140.7m grew 18.3% compared to PCP. A decline in house prices, higher cost of living inflation and higher cash rate led the increase in Expected Credit Loss provision on loans by $0.7m to $9.1m (2022: $8.4m) Achieved lending growth with $254.1m of loans funded Gross Loan Portfolio increased by $41.9m or 3.8% to $1,156.4m (2022: $1,114.5m) Operated Kookaburra Securitisation Program at $225.0m. This is a self- securitisation structure acting as a contingent liquidity support capability for the bank with 94.9% of notes rated as 'AAA' and currently providing access to the RBA's Term Funding Facility Issuer Credit Rating by S&P Global remained stable at 'BBB+' AUL FY2023 Investor presentation Figures at 30 June 2023, unless otherwise noted 28#29Retail outlook Australian Unity Real Wellbeing Cautiously positive outlook, notwithstanding the continued uncertainties flowing from COVID-19 Anticipated that PHI claims will return to close to normal levels and bank credit growth is likely to be impacted over the coming year due to macro economic factors such as increased inflation and higher interest rates Will leverage and optimise foundations for the delivery of customer growth and member value Continues to pursue several opportunities arising from the health insurance and banking adjacencies, including packages of banking and insurance products; innovative solutions to tackling health and housing affordability; and customer-centred digital platforms that assist the co-ordination of essential financial and health insurance related services Figures at 30 June 2023, unless otherwise noted 29 29#30Specialist Care AUL FY2023 Investor presentation Australian Unity Real Wellbeing 30#31Specialist Care Australian Unity Real Wellbeing Adjusted EBITDA ($m) ■FY2022 FY2023 65.6 56.9 Specialist Care Segment Revenue ($m) FY2022 FY2023 229.4 255.5 1 • Provides retirement living and aged care. Also provided disability services for the first half of the financial year and direct health services through dental clinics until the end of the financial year Total segment revenue of $255.5m, representing an increase of 11.4% on the PCP (2022: $229.4m) Adjusted EBITDA of $56.9m represented a decrease of 13.2% or $8.6m Previous year included a $19.1m gain related to a business combination uplift arising from the acquisition of Greengate Partnership Pty Ltd-three established integrated retirement and aged care communities in Sydney and Brisbane Adjusting for this one-off gain, underlying adjusted EBITDA increased by 22.6% or $10.4m Divested the Disability Services business, with the transition of customers and care workers to another dedicated disability services provider on 12 December 2022 Specialist Care AUL FY2023 Investor presentation 1 Adjusted EBITDA for FY2022 included a $19.1m gain related to a business combination uplift arising from the acquisition of Greengate Partnership Pty Ltd Figures at 30 June 2023, unless otherwise noted 31#32Specialist Care highlights Residential Communities Dental Development Australian Unity Real Wellbeing • . • Opened the Walmsley Residential Aged Care Facility in Kilsyth, Victoria and The Alba in South Melbourne, Victoria, completing two of its largest seniors living precincts to date Owns and operates 11 integrated retirement villages and residential aged care precincts (2022: 9) and 12 standalone retirement villages (2022:13) across New South Wales (NSW), Victoria and Queensland Comprises 2,724 independent living units (ILUs) and 1,215 aged care beds (2022: 2,664 ILUS and 1,007 aged care beds) Business record of over $172.2m in resale settlements exceeded prior year's total by some 14% Occupancy levels of mature retirement villages increased to 94.7%, while the mature residential aged care portfolio strengthened occupancy during the course of the year to end at over 97% Following a review of our aged care operations in light of broad challenges facing the sector, the Group confirmed in June 2023 that it would continue its involvement in this sector. There are no changes planned for day-to-day operations • • Operated five dental clinics, located in Melbourne CBD (Spring Street), Hughesdale, Moonee Ponds, Rowville and Box Hill Patient visits increased by 11.9% to 51,935 (2022: 46,426) On 30 June 2023, these dental clinics became part of National Dental Care (NDC). Under this arrangement Australian Unity health insurance members will have access to NDC's extensive national network of dental clinics Working closely with the Wealth & Capital Markets (W&CM) platform, the business continued to progress its development pipeline of its signature Better TogetherⓇ small household aged care model AUL FY2023 Investor presentation Figures at 30 June 2023, unless otherwise noted 32 32#33Specialist Care outlook Australian Unity Real Wellbeing Following the divestment of the Disability Services and Dental businesses during the 2023 financial year and the transition of the Retirement Communities operations to the W&CM platform effective from 1 July 2023, the focus of the Specialist Care platform in the year ahead will be on optimising outcomes for residential aged care In this regard, the second half of the financial year saw much-improved performance, with more efficient cost management, particularly in relation to the use of external agency workforce and occupancy increasing to market leading levels Cautiously confident of maintaining this positive trajectory in the year ahead while continuing to adapt to ongoing changes in the funding and regulatory landscape affecting the entire sector Figures at 30 June 2023, unless otherwise noted 33 33#34Wealth & Capital Markets AUL FY2023 Investor presentation Australian Unity Real Wellbeing 34#35Wealth & Capital Markets (W&CM) Australian Unity Real Wellbeing Adjusted EBITDA ($m) ■FY2022 ■FY2023 38.7 15.5 1 Wealth & Capital Markets Segment Revenue ($m) ■FY2022 ■FY2023 205.4 207.4 Wealth & Capital Markets • Comprises funds management, social infrastructure, life & super, advice and trustee services Recorded a modest increase in total segment revenue compared to PCP, reflecting improvement in funds under management Adjusted EBITDA reduced by 59.9% compared to the PCP Previous year included a $20.3m gain related to the revaluation of the platform's investment in the Platypus Asset Management business on acquisition of a controlling interest ⚫ Adjusting for this one-off gain, underlying adjusted EBITDA reduced by $2.9m or 15.6% from prior year due to an increase in operating expenses reflecting further investment in the target operating model under the platform strategy Aggregate value of assets under management and administration (AUMA), excluding cross-investments (investments by Australian Unity funds in other funds managed or operated by Australian Unity or our associates) increased by 12.0% to $31.92b (2022: $28.50b) • Reorganisation of the Funds Management and Social Infrastructure businesses and restructure of platform target operating model 1 Adjusted EBITDA of W&CM for FY2022 included a revaluation gain of $20.3m arising from a business combination revaluation AUL FY2023 Investor presentation Figures at 30 June 2023, unless otherwise noted 55 35#36W&CM highlights Funds Management Social infrastructure Life & Super Advice Australian Unity Real Wellbeing Trustees • • • • • • Funds under management and advice (FUMA) of $14.73b (2022: $9.90b) largely resulted from bringing $5.70b of FUMA relating to the Diversified Property Fund, Australian Unity Office Fund, Property Income Fund, Healthcare Property Trust and Select Income Fund into the business Multi-year development pipeline stood at $483.3m (2022: $1.10b) with lending and debt facilities on behalf of investors at $2.14b (2022: $1.86b) Platypus Asset Management's FUMA decreased to $4.16b (2022: $4.33b) Healthcare Property Trust (AUHPT) reached $3.97b in gross asset value (2022: $3.33b) Altius Asset Management's FUM stood at $1.74b (2022: $1.89b) Acorn Capital's (a joint venture) FUM grew to $589.5m (2022: $492.8m) The Australian Unity Select Income Fund reached $458.1m in FUM (2022: $305.8m) The Australian Unity Property Income Fund saw a decrease in FUM to $293.1m (2022: $360.0m) Assets under management on behalf the Group, including the Group's prudentially regulated entities and strategic assets, decreased to $0.99b (2022: $1.06b) AUL FY2023 Investor presentation Assets under management were $407.0m (2022: $4.92b) resulting from transferring $5.70b of FUMA to Funds Management Multi-year development pipeline stood at $676.8m (2022: $205.5m) Lending and debt facilities on behalf of investors were $213.6m (2022: $191.7m) Continued delivery of multi-year Herston Quarter health precinct in Brisbane with significant in-ground services work completed The Childcare Property Fund's total assets reached $80.2m and returned 8.1% The Specialist Disability Accommodation Fund's total assets reached $124.1m and returned 9.0% The Australian Unity Future of Healthcare Fund's FUM increased to $62.7m (2022: $48.8m) and returned 19.9% Completed redevelopment of Walmsley Residential Aged Care Facility and The Alba • • FUMA of $2.44b (2022: $2.30b) Gross inflows reached $221.4m (2022: $234.8m), a 5.7% decrease on PCP 10Invest Investment Bond achieved $98.3m of FUM (2022: $78.4m) Funeral Plan Management's funeral FUM was $589.8m (2022: $624.5m) across 90,000+ clients • . • Contributed to Federal government's Quality of Advice Review, a review of measures to improve access to high quality financial advice Grew number of advised clients across employed and self-employed businesses to 31,000+ clients (2022: 26,000) Funds under advice grew to $11.16b (2022: $9.99b) Personal life insurance premiums in- force increased to $112.7m (2022: $77.0m) Separately managed investment accounts (SMA) grew in FUM to $968.4m (2022: $798.7m) Growth in FUM of 17.1% to $0.48b Increase in new client inflows of 49.1% and a resulting 12.3% increase in revenue across traditional trustee services Figures at 30 June 2023, unless otherwise noted 36#37W&CM highlights subsequent to end of FY2023 Australian Unity Real Wellbeing • On 7 July 2023, Australian Unity Property Limited (AUPL), a wholly owned subsidiary of the Company and the responsible entity of Australian Unity Diversified Property Fund (AUDPF), announced it had entered into a Merger Implementation Deed with Cromwell Funds Management Limited, as the responsible entity of the Cromwell Direct Property Fund (CDPF), to merge AUDPF and CDPF via a trust scheme to create an unlisted merged fund At the same time, the Company entered into a share sale agreement with Cromwell Corporation Limited (CCL) pursuant to which CCL has agreed to acquire all of the issued shares in AUPL in connection with the proposed merger As announced to the market on 24 July 2023, the Group entered into an agreement to acquire all the shares of friendly society IOOF Ltd and its ~ $1.1 billion investment bond business from the Insignia Financial group. This acquisition is in line with the Group's strategic priority to provide innovative products and services and will further strengthen our position as the market leader in investment bonds Figures at 30 June 2023, unless otherwise noted 37#38W&CM outlook Australian Unity Real Wellbeing Continues to seek to deliver differentiated products and services designed to support and improve the financial wellbeing and economic empowerment of customers, addressing an important community need • From 1 July 2023 the retirement villages business will be supported by W&CM's Social Infrastructure business, leveraging the strong property and social infrastructure base and continuing to grow its social purpose focus Remains well positioned to benefit from: the collective impact of the rising need for better-planned wealth accumulation; the challenges and opportunities presented by Australia's ageing population; • the changing regulatory landscape; and . increasing community expectations in these areas Figures at 30 June 2023, unless otherwise noted 88 38#3910-year growth strategy Growth areas Realise the value of the social enterprise Accelerate momentum in health & human services Build social infrastructure reach AUL FY2023 Investor presentation Australian Unity Real Wellbeing 1 39#40Australian Unity Real Wellbeing