Steadfast Group Limited · ASX:SDF

Steadfast — FY2024 Earnings Presentation

50 slides from Steadfast's earnings presentation, Aug 28, 2024

1. Slide 1: FY24 Results Investor Presentation

   Steadfast Group FY24 Results Investor Presentation 28 August 2024

2. Slide 2: Contents

   Contents FY24 Results Investor Presentation 04 FY24 Highlights 15 FY25 Guidance 17 FY24 Financial Summary 25 Appendices 2 Copyright © 2023

3. Slide 3: Continued strong track record since listing on ASX

   Continued strong track record since listing on ASX Steadfast Group 1 Steadfast Network GWP ($b) Steadfast Underwriting Agencies GWP ($b) Underlying EBITA ($m) 2.5 600 14 500 12 2.0 400 10 1.5 300 8 6 1.0 200 4 100 0.5 2 0 0.0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 0 2 FY14 FY15 FY16

4. Slide 4: FY24 Highlights

   : - f a | } Y FY24 Highlights

5. Slide 5: Steadfast Group FY24 highlights

   Steadfast Group Increase in underlying EBITA of 22.7% pcp and underlying NPAT of 21.8% Broker and underwriting agency growth Statutory earnings1 • Steadfast broking’s aggregate underlying EBITA +19.6% (refer slide 21) • NPAT of $228.0m (FY23 $189.2 m) (refer slide 19) • Steadfast Underwriting Agenci

6. Slide 6: Targeting $300m of acquisitions in FY25

   Steadfast Group Targeting $300m of acquisitions in FY25 (funded by debt and free cash flow) FY24 acquisitions Annualised Acquisition EBITA cost Sure Insurance acquisition (initial payment) $14.4m $148.8m $457.8m total FY24 47 completed other acquisitions $31.5m $309.0m acquisitions Current pipeline

7. Slide 7: Steadfast's acquisition track record

   Steadfast’s acquisition track record Steadfast has a proven track record of successfully completing earnings accretive acquisitions  Steadfast’s FY25 guidance includes completing $300m of acquisitions Net acquisition spend ($m) 700 600 500 400 300 200 100 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 F

8. Slide 8: Increasing Steadfast Group's share of growing Network GWP

   Increasing Steadfast Group’s share of growing Network GWP Steadfast Australasian Networks • Since IPO, Steadfast has successfully implemented the dual strategies of growing our Networks as well as increasing equity stakes in the Networks • Trapped Capital Project will continue to increase Steadfast’

9. Slide 9: Steadfast broking – Australasian Networks

   Steadfast broking – Australasian Networks Sustained growth and further broker acquisitions Financial highlights – FY24 • Steadfast Australasian Networks GWP +12.1% to $13.0b is FY24 vs FY23 driven by 9.9% organic growth for the period: ꟷ Price increases by insurers across all non-statutory lines GWP

10. Slide 10: Steadfast Underwriting Agencies

    Steadfast Underwriting Agencies Sustained growth driven by price and volume Financial highlights – FY24 • Steadfast Underwriting Agencies GWP +13.4% to $2.3b FY24 vs FY23 ꟷ Driven by price and volume uplift ꟷ Property pricing remains strong • Opportunities for agencies as insurers are repositioning

11. Slide 11: Our insurTech

    Our insurTech Continued Network broker take-up of our $1.4b GWP transacted through SCTP in FY24 technology platforms and more insurers seeking a digital platform to transact +20% FY24 growth in GWP transacted through SCTP Steadfast Client Trading Platform (SCTP) • SCTP delivers what the consumer nee

12. Slide 12: FY24 operating update

    FY24 operating update Insurance and reinsurance markets • Insurer discipline is expected to remain as loss ratios are still not adequate and insurers will have to continue to increase rates over many of their product lines. • 30 June renewals were mostly aligned to inflation and rectification of poo

13. Slide 13: FY24 operating update

    FY24 operating update Environmental, Social and Governance • The Group-wide employee engagement score was 77% this year. We continue to focus on a culture grounded in integrity, accountability and leadership development that ensures Steadfast is a first-choice employer. Our women in leadership roles

14. Slide 14: Final dividend up 15.0% to 10.35 cps

    Final dividend up 15.0% to 10.35 cps Final FY24 dividend Underlying diluted EPS (NPAT) (cents per share) 24 • Final FY24 dividend of 10.35 cps (fully franked), 22 up from 9.0 cps in FY23, +15.0% 20 18 • Dividend Reinvestment Plan (DRP) to apply to final FY24 16 dividend 14 ꟷ The DRP will operate by

15. Slide 15: FY25 Guidance

    FY25 Guidance 15

16. Slide 16: FY25 guidance

    FY25 guidance Steadfast FY25 guidance FY25 guidance range  The guidance is subject to: ⁻ Insurance premium increases of 7% – 9% by insurer Underlying EBITA $590m - $600m partners Underlying NPAT $290m - $300m ⁻ $300m of acquisitions throughout FY25 Underlying diluted EPS (NPAT)1 growth 12% - 16% ⁻

17. Slide 17: FY24 Financial Summary

    FY24 Financial Summary 17

18. Slide 18: Group financial performance

    Group financial performance Strong underlying earnings growth Underlying earnings 12 months to 30 June Underlying Underlying Period-on-period $ million FY241 FY231 growth % Revenue ($m) 1,676.2 1,409.5 18.9% EBITA ($m) 528.5 430.7 22.7% NPAT ($m) 252.2 207.0 21.8% Diluted EPS2 (NPAT) (cents) 23.4 20

19. Slide 19: Reconciliation of statutory NPAT to underlying NPAT

    Reconciliation of statutory NPAT to underlying NPAT 12 months to 30 June $ million FY24 FY23 Statutory NPAT attributable to owners of Steadfast Group Limited 228.0 189.2 Adjustments for non-trading items (net of tax and non-controlling interests): Deferred/contingent consideration expense (where act

20. Slide 20: Drivers of 22.7% growth in underlying EBITA

    Drivers of 22.7% growth in underlying EBITA Organic and acquisition growth Organic Growth: $53.9m /12.5% Acquisition Growth: $43.9m /10.2% 570.0 $42.5m / 9.9% $1.4m / 0.3% $97.8m / 22.7% 520.0 $53.1m / 12.3% $0.9m / 0.2% 470.0 420.0 370.0 320.0 $528.5m 270.0 $430.7m 220.0 170.0 120.0 FY23 EBITA Orga

21. Slide 21: Steadfast broking

    Steadfast broking Organic and acquisition growth Equity brokers and broking networks - consolidated & equity accounted (assuming 100% ownership) 12 months to 30 June 2024 Underlying Underlying Period-on-period Organic Growth from $ million FY24 FY23 growth % growth % acquisitions % Net revenue 1,071

22. Slide 22: Steadfast Underwriting Agencies

    Steadfast Underwriting Agencies Organic growth driven by price and volume Steadfast Underwriting Agencies – consolidated & equity accounted (assuming 100% ownership) 12 months to 30 June 2024 Underlying Underlying Period-on-period Organic Growth from $ million FY241 FY231 growth % growth % acquisiti

23. Slide 23: Strong conversion of profits to cash

    Strong conversion of profits to cash FY24 cash flow statement Cash flow summary¹ $ million FY24 FY23 Pre-tax cash flow from operating activities before $460.1 $423.8 Free cash flow of $124.2 million lease obligation payment Less lease obligation payments ($22.6) ($18.5) Pre-tax cash flow from operat

24. Slide 24: Conservatively geared balance sheet

    Conservatively geared balance sheet Statutory balance sheet $ million 30 Jun 24 30 Jun 23 Corporate debt facility (excludes premium funding) increased and extended August 2023 as follows: Cash and cash equivalents 300 259 $ million Maturity Total Cash held on trust 1,026 879 Revolving Aug 2026 385 P

25. Slide 25: Appendices

    Appendices Steadfast Group (slide 26) Steadfast Networks (slide 30) Steadfast Underwriting Agencies (slide 37) Our insurTech (slide 39) 25 FY24 detailed financials (slide 43)

26. Slide 26: Steadfast Group

    Steadfast Group 26

27. Slide 27: Business units focused on the intermediated general insurance market

    Business units focused on the intermediated general insurance market Steadfast Group as at 30 June 2024 Steadfast Group (listed on ASX) Steadfast Australasian Broker Steadfast International Steadfast Underwriting Agencies Complementary Businesses Networks businesses 418 general insurance brokers wit

28. Slide 28: Size and scale

    Size and scale Steadfast Group as at 30 June 2024 General insurance broker networks in Australasia Largest group of underwriting agencies in Australasia $13.0 b 418 $2.3 b 29 Annual GWP1 Steadfast Network brokers Annual GWP1 Underwriting agencies Steadfast Networks collects professional services and

29. Slide 29: Industry overview and market opportunity

    Industry overview and market opportunity $40b of intermediated Australian general insurance GWP written in CY23 Strong growth in CAGR profiles across the intermediated market and Steadfast Network’s share of the Australian intermediated general Steadfast’s network market share ($b) insurance market

30. Slide 30: Steadfast Networks

    Steadfast Networks 30

31. Slide 31: General insurance broker networks operating in Australasia

    General insurance broker networks operating in Australasia Steadfast Australasian Networks Steadfast Networks Strategy Steadfast Australasian Networks $13.0b The Steadfast Networks have 418 general Exclusive to Steadfast Network brokers  Be the best solution for our clients’ needs insurance brokers

32. Slide 32: Steadfast Australasian Networks

    Steadfast Australasian Networks 337 brokers have joined Steadfast’s Australasian Networks since IPO Number of Steadfast Network brokers1 650 29 77 152 600 550 31 500 31 22 169 19 450 2 418 400 350 300 276 250 200 August New brokers Allied NZ Insight IBNA Singapore Merged Sold Leavers PSC (AU & June

33. Slide 33: Steadfast Australasian Broker Networks

    Steadfast Australasian Broker Networks Worldwide office network (excluding UnisonSteadfast and ISU Steadfast) 1,941 broker offices across Australia, 55 New Zealand and Asia Asia 12 400 Northern Territory 180 Queensland 104 Western Australia South Australia 500 New South Wales 22 133 Australian North

34. Slide 34: Steadfast Australian Network

    Steadfast Australian Network Australia – resilient SME client base 1 GWP mix Diversified by product line Diversified by geography Diversified by insurer Micro (Policy size <$650) 1% Small Enterprise (Policy size $650 - $5,000) 24% Business pack 16% QBE 16% VIC 33% Small Enterprise (Policy size $5,00

35. Slide 35: International footprint

    International footprint Steadfast Network model replication 1. New Zealand • 69 brokers in the Network • Steadfast Underwriting Agencies building market presence utilising • NZ$875m of GWP in FY24 Network distribution • Strong buy-in from insurer partners • SCTP introduced 3 2. Asia  Targeted Singa

36. Slide 36: International footprint

    International footprint UnisonSteadfast • Steadfast Group has an equity ownership stake of 60% in UnisonSteadfast ꟷ One of the world’s largest global general insurance broker networks, offering multi-jurisdictional coverage 700+ Referrals between the Steadfast ꟷ Supervisory board contains three Stea

37. Slide 37: Steadfast Underwriting Agencies

    Steadfast Underwriting 37 Agencies

38. Slide 38: Steadfast Underwriting Agencies

    Steadfast Underwriting Agencies Steadfast underwriting agency offering spans across 29 agencies, providing over 100 niche products Solutions for novated Complete farm package Caravans, campervans, Commercial and Accident and health Residential and commercial lease, motor fleet and cabins, trailers a

39. Slide 39: Our insurTech

    Our insurTech 39

40. Slide 40: Steadfast Client Trading Platform – benefits for clients, brokers and insurers

    Our insurTech Steadfast Client Trading Platform – benefits for clients, brokers and insurers  Market-leading technology – exclusive to Steadfast Network brokers, clients and participating insurers  Benefits for clients: ꟷ Genuine contestable marketplace generating improved pricing, competition and

41. Slide 41: Insurer and underwriting agency partners on the SCTP

    41 Our insurTech Insurer and underwriting agency partners on the SCTP Allianz @ (ccu} CHUBB Hollard. 8 vero Business pack ee @zvricH Qin Professional a risks blpete (cou) PROCOVER vero Ove hutch Liability [eater CHUBB MA miramar Commercial . ® ) property & ISR (ecu) AA miramar OBE vero!’ @zvricu Com

42. Slide 42: Steadfast Technologies

    Our insurTech Steadfast Technologies Steadfast Client Trading Platform SCTP is a digital marketplace which provides Steadfast Network insurance brokers INSIGHT is an insurance broking platform with a powerful search engine which with access to a variety of insurance products based on a single agreed

43. Slide 43: FY24 detailed financials

    FY24 detailed financials

44. Slide 44: Reconciliation of statutory to underlying earnings

    FY24 detailed financials Reconciliation of statutory to underlying earnings 12 months ended 30 June 2024 Total statutory Reclassifications Non-trading items Total underlying $ million Net fee and commissions income 1,200.8 203.4 1.3 1,405.5 Premium funding interest income 114.9 - - 114.9 Share of pr

45. Slide 45: Statement of underlying income

    FY24 detailed financials Statement of underlying income 6 months ended 31 December 2023 Underlying Underlying Period-on-period Organic Acquisitions & $ million FY24 FY23 growth % growth %2 hubbing growth %3 Fees and commissions1 1,405.5 1,211.6 16.0% 7.4% 8.6% Interest Income 49.4 23.4 111.1% 101.5%

46. Slide 46: Statement of income (underlying)

    FY24 detailed financials Statement of income (underlying) Underlying Underlying Underlying Underlying Underlying Underlying $ million 2H24 1H24 2H23 1H23 2H22 1H22 Fees and commissions¹ 744.4 661.1 638.1 573.5 540.7 452.9 Interest Income 25.6 23.8 14.8 8.6 2.2 1.7 Other revenue 115.8 105.5 93.8 80.7

47. Slide 47: Statutory cash flow statement

    FY24 detailed financials Statutory cash flow statement $ million FY24 FY23 $124.2m free cash flow in FY24 $ million Cash flows from operating activities Cash from operations 1 460.1 Net cash from operating activities before customer 314.9 318.2 Less lease obligation payments (22.6) trust account and

48. Slide 48: Important notice

    Important notice This presentation has been prepared by Steadfast Group Limited (“Steadfast”). This presentation contains information in summary form which is current as at 28 August 2024. This presentation is not a recommendation or advice in relation to Steadfast or any product or service offered

49. Slide 49: Questions

    Questions 49

50. Slide 50: Steadfast

    <> Steadfast THE STRENGTH YOU NEED

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