Heartland Group Holdings Ltd. · NZX:HGH
Heartland — Shareholder Meeting (November 2023)
24 slides from Heartland's shareholder meeting presentation, Nov 9, 2023
Slide 1: Annual General Meeting 2023
Annual General Meeting 2023 9 November 2023
Slide 2: Agenda
Agenda 01 Welcome and formalities 02 Chair’s address 03 Chief Executive Officer’s address 04 Shareholder discussion 05 Voting and conduct of poll 06 Other business 2 2
Slide 3: Board of Directors
Board of Directors 01 Heartland Group Board Gregory Tomlinson Jeff Greenslade Ellen Comerford Kathryn Mitchell Geoff Summerhayes (Chair) CEO & Independent Independent Independent Non-Executive Director Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Heartland
Slide 4: Management team
Management team 01 Jeff Greenslade Chris Flood Leanne Lazarus Andrew Dixson Michael Drumm Group CEO Deputy Group CEO Heartland Bank CEO Group Chief Financial Heartland Bank Chief Officer Compliance & Sustainability Officer Phoebe Gibbons Aleisha Langdale Doug Snell Lana West Andy Wood Group General
Slide 5: Other formalities
Other formalities 01 • Proxies and postal votes received • Meeting procedures • Voting procedures and declaration of poll • Notice of meeting • Minutes of last Annual Meeting 5
Slide 6: Voting and asking questions
Voting and asking questions 01 Voting Card Question box 6
Slide 7: Other formalities
Other formalities 01 • Proxies and postal votes received • Meeting procedures • Voting procedures and declaration of poll • Notice of meeting • Minutes of last Annual Meeting 7
Slide 8: Chair’s address
02 Chair’s address Greg Tomlinson Chair of the Board 8
Slide 9: The year in review
The year in review 02 95.9m 10.4% NET PROFIT RETURN AFTER TAX ON EQUITY FY23 FY23 underlying net profit after tax $110.2m underlying return on equity 11.9% FY22 95.1m underlying net profit after tax $96.1m FY22 12.1% underlying return on equity 12.6% 10.1 3.97% GROSS FINANCE NET INTEREST RECEIVABLES
Slide 10: The year in review (cont.)
The year in review (cont.) 02 Australian Reverse Mortgages Signed a share purchase increased market share to agreement for the acquisition of 39.9%.1 Challenger Bank in Australia in October 2022.2 Awarded Canstar NZ’s 65% increase in Heartland Outstanding Value Home Lender Mobile App users. and Savi
Slide 11: Sustainability: Environment
Sustainability 02 Environment • Support the just transition to a net-zero economy. Unaudited operational GHG emissions for FY2023 saw a 17% reduction on the FY2019 base year. Environment risk screening tool used to understand the sustainability of larger business and rural borrowers. Increased lendi
Slide 12: Sustainability: People
Sustainability 02 People • Create a pathway and place for Heartland’s people to grow, thrive and be empowered to achieve Heartland’s goals as one team. • Care for the communities Heartland operates in. • Care for Heartland’s customers. FY23 was Heartland’s second year of reporting pay gap informatio
Slide 13: Sustainability: Financial wellbeing
Sustainability 02 Financial wellbeing • Support the financial wellbeing of Heartland’s customers and communities. Continued to offer Heartland Extend to consumer customers. More than 48,000 people in NZ and AU have been supported to live a more comfortable retirement with a reverse mortgage. Extende
Slide 14: Shareholder return
Shareholder return 02 11.5 Final dividend of 6.0 cents per share (cps), bringing the total dividend for FY23 to 11.5 cps. cents per share Dividends (cps) 85% The full year payout ratio of 85% compares 5.5 6 to the average over the 7 6.5 last three years of 76%. 2.5 4.5 5.5 5.5 3.5 4 $ 514m Heartland
Slide 15: Outlook
Outlook 02 • The Board is confident in FY2024 NPAT Heartland’s ability to generate strong growth and • Heartland expects NPAT for FY2024 to be profitability as it continues within the guidance range of to deliver against its strategy to provide best or $116m to $122m only products through Excluding
Slide 16: Chief Executive Officer’s Address
03 Chief Executive Officer’s Address Jeff Greenslade Chief Executive Officer 16
Slide 17: Business as Usual Growth
Business as Usual Growth 03 ↗ $625m (10.1%) NZ AU Household Business Rural 8 ↗ $374m (15.3%) ↘ $31m (2.2%) ↗ $11m (1.7%) 2.1% 264 (27) 38 (30) 49 - (24) (18) (17) 9 20 (9.9%) 20.7% 187 (8.2%) 7.8% (27.3%) 13.4% (17.1%) 11.2% (3.9%) 11.6% 6,821 167 13.5% 23.2% 6,196 Jun-22 Reverse Motor Personal Home
Slide 18: Frictionless Service at the Lowest Cost
Frictionless Strategic Service at the Lowest Cost update 03 Ambition to achieve an FY23 underlying CTI ratio of 42% underlying CTI ratio of less is more comparable to average CTI than 35% by 2028. ratio of major Australian banks.1 (18) Key digitalisation initiatives: • reducing customer inbound call
Slide 19: Expansion in Australia
Expansion in Australia 03 Becoming a bank in Australia • Significant progress made towards the completion of the acquisition of Challenger Bank, subject to approval from APRA and the RBNZ. • Heartland is hopeful of receiving in principle approvals prior to Christmas, or if not, early in 2024, to be
Slide 20: Outlook
Outlook 03 High interest rates Greater Pipelines in Motor Commitment to impacting on borrower competition for Finance are strong. good customer demand and credit deposits due to Reverse Mortgage outcomes, quality. major banks and Asset Finance proactive portfolio refinancing the growth has continued
Slide 21: Shareholder discussion
04 Shareholder discussion
Slide 22: Voting
05 Voting
Slide 23: Other business
06 Other business
Slide 24: Thank you
Thank you Investor & media relations Investor information Nicola Foley For more information Group Head of Communications heartlandgroup.info/investor-information +64 27 345 6809 nicola.foley@heartland.co.nz
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