AUB Group Limited Annual Report 2023

CEO’S MESSAGE (CONTINUED) TYSERS UPDATE In FY23, we completed our acquisition of Tysers. During the nine-month period of ownership, the business delivered an EBIT margin of 26.1% which compares favorably with the ~20% normalised margin we announced as part of the acquisition in May 2022. At the time of acquisition, we also communicated overall cost and revenue run-rate synergy targets of $25mn per annum. In FY23, we have made strong progress in implementing the planned cost reduction initiatives and achieved $2.9mn of in-year savings with these expected to deliver annual run-rate savings of $7.6mn. Various additional cost actions have been identified for implementation that will deliver the balance of the $15mn cost target on a run-rate basis during FY24. We also committed to a synergy target of $10mn from increased income arising largely from the placement of individual risks and binders by members of the AUB network. Already during the latter stages of FY23, Tysers earned $0.4mn income from AUB brokers’ client risk placements while a focus by AUB has resulted in incremental income of $2.6mn earned from a more disciplined approach to investment. OUTLOOK In FY24, we forecast underlying net profit after tax to be in the range of $154mn to $164mn, representing growth of 19.3% to 27% on FY23. The profit contribution from acquisition activity of 3.9% reflects only those M&A activities that are known and of a very high certainty. The Group continued to expand margins across all divisions in FY23. The strong momentum and good progress made over the past few years has enabled us to upgrade the medium-term margin targets for four of the five divisions with Australian Broking, New Zealand and Tysers targets increasing by 2% and BizCover increasing the target by 10% to 50%. The target for Agencies is unchanged.

ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) AUB Group’s business model entails distributed ownership and partnership with hundreds of operating shareholders who take individual ownership in supporting the ESG goals that are specific and relevant to the communities in which they operate. The model works well because we allow for differences in culture, processes, work styles and ambitions in each of these businesses. Gender diversity in most businesses and at most levels is excellent however we need to improve significantly at senior levels. Our teams across our businesses and geographies are passionate about workplace giving and supporting those in need. The Group has adopted corporate platforms such as the Do Good Be Better donation matching and volunteering programme for Head Office and Agency staff. In parallel, every one of our businesses has an active involvement in charitable giving and a focus on diversity and equality in each workplace. We are pleased to be once again accredited as a Great Place to Work. With regards to the Environment, we identified and implemented actions to reduce our carbon impacts from air travel by implementing a validated and audited carbon offset partner for all flights, transitioned our Corporate Head Office energy consumption to renewable sources and rolled out new workplace technologies, including energy-efficient wide-screen monitors that reduce the need for printing. We are also commencing a programme to work with each of our teams to identify ways for them to transition to renewable energy sources for their homes, with company assistance offered as a way to afford the transition. In FY23, we were pleased to maintain our AA rating of our ESG initiatives from MSCI. CONCLUSION FY23 was a busy year with multiple imperatives, and our progress and performance is a testament to the AUB team’s ability to manage a complex portfolio of initiatives and deliver strongly against our priorities. I want to thank our clients who trust us with their business critical risks; grateful to our teams who go above and beyond to deliver for our clients; and acknowledge our people for their commitment to the success of the Group. Given our foundations, I am confident that AUB is well placed for

continued out-performance in future years. I look forward to updating you on our progress.

Michael Emmett Chief Executive Officer and Managing Director

AUB GROUP ANNUAL REPORT 2023

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