AUB Group Limited Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

19 FINANCIAL INSTRUMENTS (CONTINUED) e) Capital Management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders and to maintain an optimum capital structure. In order to maintain or adjust the capital structure or in response to changes in economic conditions and the requirements of the financial covenants, the Group may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to reduce debt if required. The Group monitors capital using the leverage ratio. Leverage is calculated as Net Debt divided by Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), as defined below. – Net Debt contains the Group’s interest-bearing loans and borrowings, other debt (including guarantees), the Group’s contingent consideration*, the Group’s share of borrowings and contingent consideration in relation to associates less uncommitted cash and cash equivalents**. – EBITDA includes the Group’s share of associate EBITDA plus an annualised EBITDA of entities acquired during the period plus any pro forma cost synergies achieved during the period in relation to entities acquired less contribution of EBITDA for any entities disposed during the period. The leverage ratios at 30 June were as follows:

2023 $’000

2022 $’000

Leverage ratio Interest-bearing loans and borrowings

584,230

47,802 19,231 17,576

Debt like items

16,552

Contingent consideration

193,060

Interest bearing loans, borrowings & contingent consideration payable - associates (AUB Group share)

25,522

31,063

Contingent consideration payable for obligors* Uncommitted cash and cash equivalents**

(192,859) (152,870) 473,636

–

(196,550) (80,879)

Total Net Debt

EBITDA- controlled entities Normalisation due to M&A

164,500 50,469

84,195

–

EBITDA- associates (AUB Group share)

61,571

62,450 146,645

Total Normalised EBITDA

276,540

Leverage Ratio - Net Debt/EBITDA

1.71

(0.55)

* Contingent consideration excludes contingent consideration recognised by wholly owned Group entities. ** Uncommitted cash and cash equivalents excludes trust cash accounts, and restricted cash such as to meet regulatory obligations.

AUB GROUP ANNUAL REPORT 2023

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