Heartland Group Holdings Ltd. · NZX:HGH
Heartland — Shareholder Meeting (October 2024)
31 slides from Heartland's shareholder meeting presentation, Oct 30, 2024
Slide 1: Annual General Meeting 2024
Annual General Meeting 2024 30 October 2024
Slide 2: Agenda
AGENDA 01 Welcome and formalities 02 Chair’s Address 03 Heartland Group CEO’s Address 04 Heartland Bank New Zealand CEO’s Address 05 Heartland Bank Australia CEO’s Address 06 Shareholder discussion 07 Voting and conduct of poll 08 Other business 2 2
Slide 3: 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 3
Slide 4: Voting and Asking Questions
VOTING AND ASKING QUESTIONS Voting Card Question box 4
Slide 5: Chair's Address
Greg Tomlinson, Chair, Heartland Group 02 | CHAIR’S ADDRESS 5
Slide 6: The Year in Review
THE YEAR IN REVIEW Reported Underlying FY2024 FY2023 Movement FY2024 FY2023 Movement NII $277.6m $282.0m ($4.3m) (1.5%) $277.8m $283.9m ($6.1m) (2.1%) OOI1 $12.7m $3.3m $9.4m 282.0% $20.2m $16.9m $3.4m 19.9% NOI $290.4m $285.3m $5.0m 1.8% $298.0m $300.7m ($2.7m) (0.9%) OPEX $139.4m $128.
Slide 7: Shareholder Return
SHAREHOLDER RETURN Dividends (cps) $210m Raised $210m in April 2024 to fund the acquisition, with strong investor support. 7.0 cps Final dividend of 3.0 cps, bringing the total dividend for FY2024 to 7.0 cps. 2.5 7 5.5 6 3 55% 5.5 5.5 4.5 4 4 The full year payout ratio. FY2020 FY2021 FY2022 FY2023 F
Slide 8: Outlook
OUTLOOK Transforming the business to deliver growth and enhanced shareholder return. • Heartland’s role as a parent company will be focused on improving shareholder return. • In New Zealand, Heartland Bank’s FY2025 focus is on simplification and efficiency. • In Australia, Heartland Bank Australia h
Slide 9: Board of Directors
BOARD OF DIRECTORS HEARTLAND GROUP HEARTLAND BANK NEW ZEALAND HEARTLAND BANK AUSTRALIA Chair & Non-Independent Chair & Independent Geoff Chair & Independent Greg Tomlinson Bruce Irvine Non-Executive Director Non-Executive Director Summerhayes Non-Executive Director Independent Non-Independent Indepe
Slide 10: Management
MANAGEMENT HEARTLAND GROUP HEARTLAND BANK NEW ZEALAND HEARTLAND BANK AUSTRALIA Chief Executive Officer Chief Executive Officer Chief Executive Officer Andrew Dixson Joined in 2010 Leanne Lazarus Joined in 2022 Michelle Winzer Joined in 2024 Deputy Chief Executive Officer Chief Risk Officer Chief Ris
Slide 11: Heartland Group CEO's Address
Andrew Dixson, Chief Executive Officer, Heartland Group 03 | HEARTLAND GROUP CEO’S ADDRESS 11
Slide 12: Heartland Group Corporate Structure
HEARTLAND GROUP CORPORATE STRUCTURE Heartland’s focus as the Heartland Group (NZX/ASX: HGH) listed parent company: NZ company NZ Banking • broader group strategy AU company Heartland Bank Group • corporate finance Heartland Bank Australia • investor relations (previously Challenger Bank) • capital a
Slide 13: Non-Strategic Assets
NON-STRATEGIC ASSETS Non-Strategic Assets includes assets that earn little or no income or are returning less than Heartland’s cost of capital.1 • Non-Strategic Assets will be managed and reported separately in FY2025 for greater transparency and focused resolution strategies. • Heartland intends to
Slide 14: FY2028 Growth Ambitions
FY2028 GROWTH AMBITIONS FY2028 ambitions are driven by modest Receivables growth, NIM expansion, cost savings from automation, and an improvement in impairments. Financial metric FY2024 FY2028 ambition Commentary • Assumes modest Receivables growth below Heartland’s track record of 11.8% over the la
Slide 15: Heartland Bank NZ CEO's Address
Leanne Lazarus, Chief Executive Officer, Heartland Bank New Zealand 04 | HEARTLAND BANK NZ CEO’S ADDRESS 15
Slide 16: FY2024 Summary
FY2024 SUMMARY 20.2 % Overall growth driven by growth in Reverse Mortgages of 20.2%. 3.8 % Motor Finance saw 3.8% growth in a market where total new and used car sales by dealers in NZ were down 12.7%.1 8% Asset Finance saw 8% growth despite high interest rates and difficult trading conditions. • Co
Slide 17: New Zealand FY2025 Focus
NEW ZEALAND FY2025 FOCUS Heartland Bank New Zealand aims to simplify the business, expand its margin and reduce costs to deliver better returns. These key strategic priorities will drive a strong contribution to the Group’s FY2028 ambitions. SIMPLIFICATION AND MARGIN COST BETTER RETURNS EXPANSION RE
Slide 18: Heartland Bank AU CEO's Address
Michelle Winzer, Chief Executive Officer, Heartland Bank Australia 05 | HEARTLAND BANK AU CEO’S ADDRESS 18
Slide 19: Establishing a Specialist Australian Bank
ESTABLISHING A SPECIALIST AUSTRALIAN BANK Heartland Bank Australia is well positioned for sustainable growth beyond FY2025 through its focus on business growth, operational efficiency and service excellence. OPERATIONAL EFFICIENCY & SERVICE EXCELLENCE Funding mix • Establish a strong leadership team
Slide 20: Business Growth
BUSINESS GROWTH Continue to focus on expansion within deposits and existing specialist lending portfolios. DEPOSITS LIVESTOCK FINANCE REVERSE MORTGAGES • Challenger Bank’s pre-acquisition deposit raising • Execute on Livestock Finance product development • Leverage the strong ongoing demographic dem
Slide 21: Shareholder Discussion
06 | SHAREHOLDER DISCUSSION 21
Slide 22: Voting and Conduct of Poll
07 | VOTING AND CONDUCT OF POLL 22
Slide 23: Resolution 1: Re-election of Kate Mitchell
RESOLUTION 1: RE-ELECTION OF KATE MITCHELL That Kate Mitchell who retires and is eligible for re-election, be re-elected as a director of Heartland Group. 23
Slide 24: Resolution 2: Election of John Harvey
RESOLUTION 2: ELECTION OF JOHN HARVEY That John Harvey who retires and is eligible for election, be elected as a director of Heartland Group. 24
Slide 25: Resolution 3: Election of Simon Beckett
RESOLUTION 3: ELECTION OF SIMON BECKETT That Simon Beckett who retires and is eligible for election, be elected as a director of Heartland Group. 25
Slide 26: Resolution 4: Election of Rob Bell
RESOLUTION 4: ELECTION OF ROB BELL That Rob Bell who retires and is eligible for election, be elected as a director of Heartland Group. 26
Slide 27: Resolution 5: Ratification of Placement
RESOLUTION 5: RATIFICATION OF PLACEMENT That the shareholders of Heartland approve and ratify for all purposes, including NZX Listing Rule 4.5.1 (c) the previous issue of 106,021,860 fully paid ordinary shares in Heartland on 15 April 2024 in accordance with NZX Listing Rule 4.5.1 comprising (a) the
Slide 28: Resolution 6: Auditor's Remuneration
RESOLUTION 6: AUDITOR’S REMUNERATION That the Board be authorised to fix the remuneration of Heartland’s auditor, PwC, for the financial year ending 30 June 2025. 28
Slide 29: Other Business
08 | OTHER BUSINESS 29
Slide 30: Thank You
THANK YOU Investor & media relations Nicola Foley Group Head of Communications +64 27 345 6809 nicola.foley@heartland.co.nz Investor information For more information, go to heartlandgroup.info/investor-information
Slide 31: Glossary
GLOSSARY ADI Authorised deposit-taking institution Heartland, Heartland Group Heartland Group Holdings Limited or the Company Heartland Bank, Heartland APRA Australian Prudential Regulation Authority Heartland Bank Limited Bank New Zealand bps Basis points Heartland Bank Australia Heartland Bank Aus
Heartland Group Holdings — Shareholder Meeting (October 2024) on 6ix