Heartland Group Holdings Ltd. · NZX:HGH
Heartland — Shareholder Meeting (2018)
26 slides from Heartland's shareholder meeting presentation, 2018
Slide 1: 2018 Annual Meeting
2018 Annual Meeting Photo credit: Chris Williams
Slide 2: Agenda
Agenda • Welcome and formalities • Chair’s address • Chief Executive Officer’s report • Shareholder discussion • Voting and conduct of poll • Other business 2018 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 People & Culture Officer Grant Kemble Chief Risk Officer David Mackrell Chief Financial Officer Rochelle Moloney Chief Marketing & Communications Officer Sarah Smith Chief
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 2018 Annual Meeting | Page 5
Slide 6: Chair's Address
Chair’s Address Geoff Ricketts Photo credit: Chris Williams
Slide 7: Financial overview
Financial overview Our strategy is delivering results • Net profit after tax of $67.5m, up 11%. • Growth in net finance receivable assets of 12%. 2018 Annual Meeting | Page 7
Slide 8: Socially responsible products and regulatory update
Socially responsible products and regulatory update • Part of striving for excellence is aligning everything we do with our values of integrity, respect and professionalism • Continued open and honest relationships with the Reserve Bank of New Zealand and Financial Markets Authority • Conduct driven
Slide 9: 2018 in review and dividends
2018 in review and dividends • Strong growth across the business • Focus on areas core to future growth – particularly reverse mortgages, motor, small business loans • Stronger technological platform for growth • Fully-imputed final dividend of 5.5 cents per share • Paid on Friday 21 September 2018
Slide 10: Community sponsorship
Community sponsorship 2018 Annual Meeting | Page 10
Slide 11: Corporate restructure
Corporate restructure • A more suitable platform for future growth • More flexibility to take advantage of growth opportunities in NZ & AU • Remove constraints on the growth and funding capabilities currently arising from Reserve Bank regulation • For the Australian reverse mortgage business, the re
Slide 12: Corporate restructure (continued)
Corporate restructure (continued) • Shareholders will receive the same number of shares in Heartland Group Holdings Limited as they hold in Heartland Bank Limited on the record date • 9 current directors of Heartland Bank will sit one or more of the boards of Heartland Group Holdings, Heartland Bank
Slide 13: CEO Address
CEO Address Jeff Greenslade Photo credit: Chris Williams
Slide 14: Asset growth driving profitability
Asset growth driving profitability Net operating income Net profit after tax Net finance receivables 12 months to 30 June 2018 12 months to 30 June 2018 As at 30 June 2018 $196.8m $67.5m $4.0bn 15% from FY2017 11% from FY2017 12% from FY2017 • 12% growth in net finance receivables from 30 June 2017
Slide 15: Change in profitability
Change in profitability • One-off other income includes gain on sale of property ($4.8m) and gain on sale of invoice finance business ($0.6m). • One-off operating expenses includes new system implementation expenses ($0.5m), legacy systems costs ($0.3m) and expenses in relation to the proposed corpo
Slide 16: Significant growth in reverse mortgages and motor
Significant growth in reverse mortgages and motor 2018 Annual Meeting | Page 16
Slide 17: Strategy is to be "best or only"
Strategy is to be “best or only” • Core focus on markets where we have the best product or the only product (eg. reverse mortgages, small business lending, motor vehicle finance) • Offer high value returns • Acceptable risk outcomes • More remote from big bank competition • Expand reach through digi
Slide 18: NZ's largest platform for small business lending
NZ’s largest platform for small business lending • Asset growth of 98% in FY18 for Open for Business • Scalability and distribution channels solved through use of digital platform • Confident in the technology and risk experience over last two years • New marketing campaign launched this week 2018 A
Slide 19: Deposits & Heartland Mobile App
Deposits & Heartland Mobile App • $308m of new deposit growth in FY18 • Awarded Bank of the Year – Savings from CANSTAR, providing strongest combination of savings products and services to our customers • Heartland Mobile App launched June 2018 • App gives deposit customers better control over savin
Slide 20: Reverse Mortgages Australia
Reverse Mortgages Australia • Asset growth of 31% achieved in FY18 • Continuing to broaden intermediary network of brokers • Awarded Best Mortgage Provider from CANSTAR and Best Reverse Mortgage from Money Magazine for last three consecutive years Research suggests • ASIC review highlighted growing
Slide 21: Our People, Culture and Community
Our People, Culture and Community • Our vision is to promote diversity of thought and for Heartland to be an accepting and welcoming work environment • Aiming to become an employer of choice for Maori • Initiatives underway to ensure strong pipeline of future female leaders • Recognise the need to m
Slide 22: Outlook for FY19
Outlook for FY19 • Expect underlying asset growth to continue, especially reverse mortgages, motor vehicle finance and small business lending • Shifting to a range of digital platforms • Expanding our reach through digital and intermediary channels • Exploring opportunities for growth in Australia 2
Slide 23: Shareholder discussion
Shareholder discussion Photo credit: Chris Williams
Slide 24: Voting
Voting Photo credit: Chris Williams
Slide 25: 2018 Annual Meeting | Page 25
oe ty £ usiness € Loans 2 Fiwiedenforbusiness.co.nz Lending criteria, fees and charges apply. Unsecured business loans up to $75,000. Partially secured business loans up to $250,000. HEARTLAND BANK
Slide 26: 2018 Annual Meeting
2018 Annual Meeting Photo credit: Chris Williams
Heartland Group Holdings — Shareholder Meeting (2018) on 6ix