Heartland Group Holdings Ltd. · NZX:HGH
Heartland — Investor Presentation (November 2017)
15 slides from Heartland's investor presentation, Nov 9, 2017
Slide 1: Rights Offer
HEARTLAND BANK Rights Offer 9 November 2017
Slide 2: Important notice
Important notice The information in this document and any information provided during any presentation of this document (collectively, Information) has been compiled solely to provide interested parties with further information about a pro rata renounceable rights issue of New Shares in Heartland un
Slide 3: About Heartland
About Heartland Listed Bank Listed on the NZX Main Board in February 2011 and registered as a bank in New Zealand in December 2012 Strategy Heartland’s focus is on banking products to under-served markets, coupled with distribution channels that extend its customer reach and provide a frictionless c
Slide 4: Key markets
Key markets HOUSEHOLD BUSINESS RURAL MOTOR VEHICLE PERSONAL LOANS REVERSE LOANS MORTGAGES Key products and Motor vehicle Personal loans Reverse mortgages Business loans for Livestock finance distribution finance through available through available through small businesses available through channels
Slide 5: Continued strong growth in Q1 FY2018
Continued strong growth in Q1 FY2018 Strong profitability Net profit after tax of $16.0m, up 12% on previous corresponding period achieved Growth in finance 16% annualised growth (4% for the 3 month period) in finance receivables receivables Net interest margin Net interest margin of 4.49% maintaine
Slide 6: Profitability
Profitability Net profit after tax of $16.0m for Heartland has maintained strong Q1 FY2018, up 12% on the previous growth in net profit after tax for corresponding period FY2014 – FY2017 18.0 80.0 16.0 16.0 70.0 65.0 - 68.0 14.3 14.0 60.8 60.0 11.8 54.2 12.0 11.0 50.0 48.2 NPAT ($m) NPAT ($m) 10.0 4
Slide 7: Finance receivables
Finance receivables 16% annualised growth in finance receivables in Q1 FY2018 4,000 3,684 Annual growth in 3,546 finance receivables 3,500 685 30-Sep-2017 3,099 675 16% (annualised) 3,000 2,844 552 Finance receivables (NZ$m) 2,575 30-Jun-2017 14% 488 2,500 1,038 410 995 30-Jun-2016 9% 899 2,000 792
Slide 8: Net interest margin and impairments
Net interest margin and impairments Strong net interest margin Impairment ratios maintained 5.00% 4.50% 2.5% 4.34% 4.46% 4.49% 4.00% 2.0% 3.00% 1.5% 2.00% 1.0% 1.00% 0.5% 0.00% 0.0% Jun-15 Jun-16 Jun-17 Sep-17 Jun 15 Jun 16 Jun 17 Sep 17 Heartland Banking sector average Net impaired loans ratio Impa
Slide 9: Shareholder returns
Shareholder returns 3 year total shareholder return Total dividend for 2017 of 9.0 300 cents per share Share Price / Index Value (Rebased to 100) Heartland TSR: 112% 250 6 200 5 150 4 cents NZX50 TSR: 47% 3 100 2 50 1 0 0 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 2014 2015 2016 2017 Heartland TSR NZ
Slide 10: Strategic focus
Strategic focus Heartland continues to execute its strategy in New Zealand and Australia Right place, right time Identifying customer intent Digital, intermediated and direct channels Utilisation of data insights to accurately identify utilised to ensure we are in easy reach for our customer intent,
Slide 11: Rights Offer
Rights Offer
Slide 12: The Offer
The Offer 1 for 15 rights offer to Heartland will use the proceeds to support continued growth in its loan portfolio and maintain a strong balance sheet raise up to ~$59m Offer price of $1.70 per Represents a 10.1% discount to the closing price on 8 November 2017 of $1.89 and a 9.5% discount to the
Slide 13: Capital ratio
Capital ratio Immediate impact of the equity raise is an increase in Heartland’s total capital ratio to ~14.5%* (pro forma based on 30 September 2017) against the regulatory minimum of 10.5% 16.0% 1.5% 0.4% 0.5% 0.5% 14.0% 12.0% 10.0% Capital Ratio Regulatory minimum = 10.5% 8.0% 14.5% 13.6% 13.0% 6
Slide 14: Key dates
Key dates 9 November 2017, Offer announcement 17 November 2017, Record date for determining entitlement to Rights 22 November 2017, Offer document and Entitlement and Acceptance Forms sent to shareholders 8 December 2017, Closing date 12 December 2017, Shortfall Bookbuild 14 December 2017, Allotment
Slide 15: Key contacts
Key contacts Jeff Greenslade David Mackrell Chief Executive Officer Chief Financial Officer (09) 927 9149 (09) 927 9561 | Page 15
Heartland Group Holdings — Investor Presentation (November 2017) on 6ix