Heartland Group Holdings Ltd. · NZX:HGH
Heartland — ASX CEO Connect June 2023
19 slides from Heartland's conference presentation, Jun 20, 2023
Slide 1: Heartland ASX CEO Connect presentation
NZX/ASX release 20 June 2023 Heartland ASX CEO Connect presentation Heartland Group Holdings Limited’s (Heartland) (NZX/ASX: HGH) Chief Executive Officer, Jeff Greenslade, will give the attached presentation to the ASX CEO Connect event today, Tuesday 20 June 2023. Heartland’s presentation is schedu
Slide 2: Heartland Group Holdings Limited CEO Connect
For personal use only Heartland Group Holdings Limited (ASX: HGH) CEO Connect 20 Page June 2023 1
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Heartland Group Holdings Limited (NZX/ASX: HGH) (the Company or Heartland) for the purpose of a management presentation. For personal use only Information Because Heartland complies with accounting standards, investors know that date of this presenta
Slide 4: Contents
Contents For personal use only 01 About Heartland Page 4 02 Investment proposition Page 10 03 Outlook Page 15 04 Appendix Page 18 Page 3
Slide 5: About Heartland
For personal use only About Heartland Page 4
Slide 6: A specialist financial services group with best or only products
For personal use only • Heartland is an Australasian financial services group, listed on the NZX Main Board and the ASX A specialist financial services under a Foreign Exempt Listing (NZX/ASX: HGH). • Market cap in excess of NZ$1bn. group with “best or only” • “Best or only” product strategy with a
Slide 7: More than 145 years of doing things differently
More than 145 years of doing things differently Heartland’s origins date back to 1875 where it started as a small building society in New Zealand. In 2011, following the wake of the Global Financial Crisis, that building society merged with several other Kiwi financial institutions to become Heartla
Slide 8: Best or only finance
Best or only finance Rather than do what's been done, Heartland focuses on providing products that are the best or only of their kind, through scalable digital platforms. This is underpinned by the following four strategic pillars. For personal use only BUSINESS AS USUAL GROWTH RECOGNISED AND MARKET
Slide 9: Heartland's current businesses
Heartland’s current businesses Loans to assist customers to purchase a motor vehicle or boat, secured Loan book by geography (Dec-22) NOI by geography (1H23)5 Motor Finance over the relevant asset. For personal use only Reverse Mortgages Enable older home-owners to release some of the equity in thei
Slide 10: 1H2023 financial highlights
1H2023 financial highlights REPORTED UNDERLYING Financial Net interest income $138.9m 12.1% vs 1H2022 $140.8m 13.6% vs 1H2022 performance For personal use only Operating expenses $63.4m 10.8% vs 1H2022 $63.9m 13.3% vs 1H2022 NPAT1 $48.7m 2.4% vs 1H2022 $54.7m 16.2% vs 1H2022 29 bps vs
Slide 11: Investment proposition
For personal use only Investment proposition Page 10
Slide 12: Positioned to benefit from structural tailwinds
Positioned to benefit from structural tailwinds Strong structural tailwinds are supporting Heartland’s target growth sectors in Australia.1 REVERSE MORTGAGES LIVESTOCK FINANCE MOTOR FINANCE For personal use only Addressable market estimated to be AU$10-15bn.2 Addressable market estimated to be AU$7b
Slide 13: Outsized organic growth opportunity once banking licence acquired
Outsized organic growth opportunity once banking licence acquired 1 The acquisition of Challenger Bank will provide Heartland a significant opportunity to leverage extensive For personal use only operational experience in New Zealand to drive expansion and sustainable growth in Australia. Subject to
Slide 14: Efficiency through automation
Efficiency through automation For personal use only Through technology, Heartland has replicated the scale of big banks, as evidenced by the CTI ratio – with a determination to reducing CTI ratio further through ongoing automation and digitalisation. AUTOMATION AND DIGITALISATION INITIATIVES • Shift
Slide 15: Large inorganic growth opportunity
Large inorganic growth opportunity Heartland’s strong track record of successful M&A will be leveraged to actively pursue further inorganic growth opportunities. For personal use only STRONG TRACK RECORD OF M&A SIGNIFICANT INORGANIC GROWTH OPPORTUNITIES Acquisitions will be explored where there is a
Slide 16: Outlook
For personal use only Outlook Page 15
Slide 17: Outlook
Outlook Heartland has growth ambitions in New Zealand and Australia with a view to facilitating cost efficiency and ROE expansion. For personal use only BUSINESS AS USUAL GROWTH • Heartland Bank is focused on growing higher quality portfolio, in particular, Online Home Loans, Reverse Mortgages and L
Slide 18: Thank you
For personal use only Thank you Investor enquiries: Nicola Foley Group Head of Communications nicola.foley@heartland.co.nz heartlandgroup.info Page 17
Slide 19: Appendix: Shareholder return
Appendix: Shareholder return • Underlying return on equity (ROE) 12.1% (down 7 bps vs 1H2022).1 • Dividend yield of 8.7%2 (1H2022: 7.4%3). For personal use only • Earnings per share (EPS) of 7.3 cps, down 0.8 cps compared with 1H2022. • Heartland’s Dividend Reinvestment Plan (DRP) applied to the int