AUB Group Limited Annual Report 2023

DIRECTORS’ REPORT YEAR ENDED 30 JUNE 2023

REMUNERATION & PEOPLE COMMITTEE CHAIR’S LETTER

Dear Shareholders On behalf of the Board of AUB Group Limited (AUB Group), I am pleased to present our Remuneration Report for the financial year ended 30 June 2023. The purpose of this report is to describe AUB Group’s remuneration strategy and framework for its Key Management Personnel (KMP), in particular the links between AUB Group’s executive remuneration framework and business strategy, performance and reward.

Key financial highlights for FY23 Key FY23 financial highlights include:

– Underlying revenue of $1,111.4m, representing growth of 61.2% from FY22; – Underlying NPAT of $129.11m, representing growth of 74.42% from FY22; and – Underlying earnings per share of 129.32 cents, an uplift of 33.73% in comparison to FY22.

Changes to remuneration and key governance measures The Board continually monitors AUB Group’s incentive scheme frameworks to ensure they appropriately reflect AUB Group’s profile, are effective in driving business strategy and financial performance to create sustainable shareholder value and continue to reflect our ‘pay for performance’ philosophy. During the course of FY23, the Board undertook a review of our Long Term Incentive (LTI) Plan framework, in conjunction with external stakeholder feedback. Key changes and remuneration governance measures arising from that review included the following in respect of FY23 LTI awards: – The addition of a new Return on Invested Capital (ROIC) performance measure; – An increase in EPS hurdles; – The introduction of a one year holding lock in relation to Performance Share Rights (PSRs) that vest and convert into Shares under the LTI Plan; and – PSRs awarded at share price face value with vested PSRs receiving a cash equivalent of dividends awarded during the performance period. It was pleasing to receive overwhelming shareholder support for these changes to the LTI Plan, with 99.8% of shareholders voting in favour at the Extraordinary General Meeting (EGM) in March 2023. Furthermore, a minimum shareholding policy for both Non-Executive Directors and Group Executives has been introduced to provide strong ongoing alignment between Non-Executive Directors, Group Executives and shareholders. The Board continued to align our risk, remuneration and consequences management framework, with the Remuneration & People Committee and Board Audit & Risk Committee meeting concurrently to consider if there were risk-based or other adjustments that may warrant consideration in the Board’s determination of remuneration outcomes. The Committees observed management’s continued progress in integrating and embedding effective risk management throughout the organisation to support achievement of business priorities and fulfill corporate governance objectives. The Board is pleased to confirm that no risk-based or other adjustments to remuneration were recommended by the Committees as a result of their review of risks and behaviours. The Board believes that these changes further enhance AUB Group’s remuneration framework and people strategy, and that AUB Group continues to provide clear and transparent disclosure.

AUB GROUP ANNUAL REPORT 2023

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