Heartland Group Holdings Ltd. · NZX:HGH
Heartland — Shareholder Meeting (2022)
24 slides from Heartland's shareholder meeting presentation, 2022
Slide 1: Hui Ā-tau Annual Meeting 2022
Hui Ā-tau Annual Meeting 2022
Slide 2: Agenda
Agenda • Welcome and formalities • Chair’s address • Chief Executive Officer’s address • Shareholder discussion • Voting and conduct of poll • Other business 1
Slide 3: Board of directors – Heartland Group board
Board of directors Heartland Group board Geoffrey Ricketts (Chair) Gregory Tomlinson Jeff Greenslade Independent (Deputy Chair) CEO & Non-Executive Director Non-Executive Director Executive Director Ellen Comerford Kathryn Mitchell Geoff Summerhayes Independent Independent Independent Non-Executive
Slide 4: Board of directors – Heartland Bank board
Board of directors Heartland Bank board Bruce Irvine (Chair) Jeff Greenslade Edward John Harvey Independent Executive Director Independent Non-Executive Director Non-Executive Director Kathryn Mitchell Geoffrey Ricketts Shelley Ruha Simon Tyler* Non-Independent Non-Independent Independent Independen
Slide 5: Strategic Communication & Execution Committee
Strategic Communication & Execution Committee Jeff Greenslade Chris Flood Leanne Lazarus Andrew Dixson Michael Drumm Monique Forbes Group CEO Deputy Group CEO Heartland Bank CEO Chief Financial Officer Group Chief Group Chief Operating Officer Marketing Officer Mike Grenfell Aleisha Langdale Doug Sn
Slide 6: Other formalities
Other formalities • Proxies and postal votes received • Meeting procedures • Voting procedures and declaration of poll • Notice of meeting • Minutes of last Annual Meeting 6
Slide 7: Voting and asking questions
Voting and asking questions Voting Card Question box 7
Slide 8: Chair’s address
Chair’s address Geoff Ricketts | Chairman of the board 8
Slide 9: The year in review
The year in review NPAT of $95.1 million. Underlying return on equity Underlying NPAT of $96.1 million (up $8.2 million). up 59 bps to 12.6%. Gross finance receivables Underlying net interest margin of 4.16%, up 15.3% to $6.2 billion. consistently higher than banking peers.1 1 KPMG FIPS Report June
Slide 10: The year in review continued
The year in review continued Ongoing digital developments, Acquisition of StockCo including for Australian Reverse Australia in May 2022. Mortgage customers. Progress made against 120% increase in sustainability framework. Heartland Mobile App users. 10
Slide 11: Equity raise
Equity raise $200 million equity raise $130 million fully underwritten placement. announced on 23 August 2022 Up to $70 million non-underwritten share purchase plan. $198.6 million raised $130 million Placement was fully subscribed. $68.6 million raised through SPP. Proceeds used to repay A$158 mill
Slide 12: Sustainability
Sustainability Environmental Conservation Social equity Economic prosperity 31% absolute reduction in Implemented processes and Heartland Bank named Canstar’s Greenhouse Gas emissions controls to prevent any connection 2022 Bank of the Year – Savings (21% adjusted for COVID-19) to modern day slavery
Slide 13: Shareholder return
Shareholder return • Final dividend of 5.5 cents Dividend per share (cps) per share. • Total dividend for FY2022 of 11.0 cents per share 7.0 5.5 6.5 • Full year payout ratio of 68%, 2.5 consistent with three-year average. 5.5 4.5 • Five year total shareholder return 4.0 3.5 (TSR) of 66.9%, compared
Slide 14: Outlook
Outlook • The Board is confident in Heartland’s ability to generate strong growth and profitability as it continues to deliver against its best or only strategy. • $9.6 million COVID-19 Overlay taken in FY20 released in full. • $8.0 million Economic Overlay created to provide more resilience in area
Slide 15: CEO’s address
CEO’s address Jeff Greenslade 15
Slide 16: Strategic focus
Strategic focus Four pillars underpin Heartland’s best or only strategy: 1. 2. 3. 4. Business as Frictionless Service Expansion in Acquisitions Usual Growth at the Lowest Cost Australia 16
Slide 17: Business as Usual Growth
Business as Usual Growth 1 All lending portfolio figures are as at 30 June 2022 and exclude FX impact. 2 Previously referred to as Business Intermediated. 3 Business includes floorplan lending to vehicle retailers and wholesale facilities to other lenders. The portfolio includes what was previously
Slide 18: Frictionless Service at the Lowest Cost
Frictionless Service at the Lowest Cost Ka whawhai tonu mātou. The path to delivering frictionless service is a never-ending journey. • Self-service capability has been delivered, with more in development. • Self-service removes telephone wait times and other forms of customer friction while creatin
Slide 19: Expansion in Australia and Acquisitions
Expansion in Australia and Acquisitions • Australian Reverse Mortgages now over A$1 billion. • The acquisition of StockCo Australia in May 2022 extends Heartland’s best or only strategy into the livestock finance market. Challenger Bank • In October 2022, Heartland entered into an agreement for the
Slide 20: Closing remarks
Closing remarks He manawa whenua, he manawa tangata, Ko Heartland tēnei. This is our Heartland. 20
Slide 21: Shareholder discussion
Shareholder discussion 21
Slide 22: Voting
Voting 22
Slide 23: Other business
Other business 23
Slide 24: Thank you
Thank you For further information, please see shareholders.heartland.co.nz
Heartland Group Holdings — Shareholder Meeting (2022) on 6ix