AUB Group Limited Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

18 FINANCIAL LIABILITIES (CONTINUED)

Ageing is presented below:

As at 30 June 2023

Later than 1 year and not later than 5 years $’000

6 months to no later than 1 year $’000

Later than 5 years/ No maturity $’000

Due not later than 6 months $’000

Total $’000

Contingent or deferred consideration payables

26,790

–

166,270

– 193,060

Financial Liability at amortised cost

–

4,639

– 54,058

58,697 10,540 11,781 274,078

Actuarial Liability

743

743

9,054 8,558

– –

Put Options

3,223

–

Total Financial Liabilities

30,756

5,382

183,882

54,058

As at 30 June 2022

Later than 1 year and not later than 5 years $’000

6 months to no later than 1 year $’000

Later than 5 years/ No maturity $’000

Due not later than 6 months $’000

Total $’000

Contingent or deferred consideration payables

8,352 9,624

– – – –

9,224

–

17,576 59,863

Financial Liability at amortised cost

–

50,239

Actuarial Liability

– –

5,252 8,161

– –

5,252 8,161

Put Options

Total Financial Liabilities

17,976

– 22,637

50,239

90,852

19 FINANCIAL INSTRUMENTS Financial risk management objectives and policies The Group’s principal financial instruments comprise receivables, loans, cash and short-term deposits, payables, lease liabilities, overdrafts, interest bearing loans and borrowings, bank overdrafts and derivatives. The Group manages its exposure to key financial risks, including interest rate and foreign currency risk in accordance with the Group’s financial risk management policy. The objective of the policy is to support the delivery of the Group’s financial targets whilst protecting future financial security. AUB has entered into forward contracts to manage the foreign currency risk associated with multi-currency cash flows generated by Tysers. AUB has designated these instruments in hedge relationships. The Board reviews and agrees policies for managing each of these risks as summarised below. Primary responsibility for identification and control of financial risks rests with the Board Audit and Risk Management Committee, supported by a Management Committee, under the authority of the Board. The Board reviews and agrees policies for managing each of the risks identified below.

Risk exposures and Responses a) Credit Risk Refer to Note 10 Cash and Cash Equivalents and Note 11 Trade and Other Receivables. b) Liquidity Risk

The Company’s objective is to maintain adequate cash to ensure continuity of funding and flexibility in its day-to-day operations. The Company reviews its cash flows weekly and models expected cash flows for the following 12 to 24 months (updated monthly) to ensure that any stress on liquidity is detected, monitored and managed, before risks arise. To monitor existing financial assets and liabilities as well as enable an effective control of future risks, the Group has established comprehensive risk reporting that reflects expectations of management of expected settlement of financial assets and liabilities. The Group’s main borrowing facilities are provided by a syndicated facility as outlined in Note 17, although some controlled entities have arranged borrowing facilities with other banks. The Company considers the maturity of its financial assets and projected cash flows from operations to monitor liquidity risk. Liquidity risk arises in the event that the financial assets/liabilities are not able to be realised/settled for the amounts disclosed in the accounts on a timely basis.

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