Heartland Group Holdings Ltd. · NZX:HGH
Heartland — Shareholder Meeting (November 2017)
20 slides from Heartland's shareholder meeting presentation, Nov 21, 2017
Slide 1: Annual Meeting
Annual Meeting 21 November 2017
Slide 2: Agenda
Agenda • Welcome and formalities • Chair’s address • Chief Executive Officer’s report • Shareholder discussion • Voting and conduct of poll • Other business 2017 Annual Meeting | Page 2
Slide 3: Board of Directors
Board of Directors Geoff Ricketts Chair and Independent Non-Executive Director Bruce Irvine Deputy Chair and Independent Non-Executive Director Jeff Greenslade Executive Director and Chief Executive Officer Ellie Comerford Independent Non-Executive Director John Harvey Independent Non-Executive Dire
Slide 4: Strategic Management Group
Strategic Management Group Jeff Greenslade Chief Executive Officer Chris Flood Deputy Chief Executive Officer Laura Byrne Chief Operating Officer Richard Lorraway Chief Risk Officer David Mackrell Chief Financial Officer Sarah Mannion Head of People & Culture Sarah Smith Head of Business Enablement
Slide 5: 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 2017 Annual Meeting | Page 5
Slide 6: Chair's Address
Chair’s Address 2017 Annual Meeting | Page 6
Slide 7: Another successful year for Heartland
Another successful year for Heartland • Net profit after tax of $60.8m, up 12% • Return on equity of 11.6%, up from 11.1% • Key strategic milestones met • ‘BBB’ credit rating affirmed 2017 Annual Meeting | Page 7
Slide 8: Delivering shareholder value
Delivering shareholder value • Total dividend declared of 9.0 cents per share, up 6% • TSR* for FY17 was 60.9% • TSR* over the last 5 years has averaged 38.3% *Total shareholder return (TSR) means share price appreciation plus dividends received and has been calculated including the benefit of imput
Slide 9: FY18 Performance and Forecast
FY18 Performance and Forecast • For the three months to 30 September 2017: • Net profit after tax of $16m, up 12% on previous corresponding period • 16% annualised growth (4% for the 3 month period) in net finance receivables • Pleased to reaffirm expected net profit after tax for FY18 to be in the
Slide 10: Pro Rata Rights Issue
Pro Rata Rights Issue Heartland is seeking to raise up to approximately $59 million of new equity to support continued growth in its loan portfolio and maintain a strong balance sheet. • 1 for 15 pro rata rights issue • Issue price of $1.70 per share, being a 10.1% discount to the closing price on 8
Slide 11: Heartland in the community
Heartland in the community 2017 Annual Meeting | Page 11
Slide 12: CEO's Report
CEO’s Report 2017 Annual Meeting | Page 12
Slide 13: Growth Across All Divisions
Growth Across All Divisions Note: These figures exclude $36m of residential mortgage lending 2017 Annual Meeting | Page 13
Slide 14: Funding
Funding • Growth in retail deposits of 13% • Deposits remain the primary source of funding • $150m retail bond issue completed in September 2017 2017 Annual Meeting | Page 14
Slide 15: FY18 Outlook
FY18 Outlook • Expect asset growth to continue for FY18 • Some signs of competitive activity in deposits • Industry moving off historically low levels of impairments 2017 Annual Meeting | Page 15
Slide 16: Strategy
Strategy • Offer “best or only” products in the markets in which we operate through superior product features and a frictionless customer on-boarding experience • Growth through digital distribution channels and intermediaries / partnerships • Digital platforms launched including for SME working cap
Slide 17: Diversity quote
“Diversity means having the broadest range of perspectives, the widest access to talent and a rich diversity of thought.” 2017 Annual Meeting | Page 17
Slide 18: Shareholder Discussion
Shareholder Discussion 2017 Annual Meeting | Page 18
Slide 19: Voting
Voting 2017 Annual Meeting | Page 19
Slide 20: Annual Meeting
Annual Meeting 21 November 2017
Heartland Group Holdings — Shareholder Meeting (November 2017) on 6ix