Heartland Group Holdings Ltd. · NZX:HGH
Heartland — Shareholder Meeting (November 2020)
25 slides from Heartland's shareholder meeting presentation, Nov 30, 2020
Slide 1: 2020 Annual Meeting
2020 Annual Meeting 30 November 2020
Slide 2: Agenda
Agenda • Welcome and formalities • Chair’s address • Chief Executive Officer’s address • Group Chief of Staff’s address • Rangatahi Advisory Board presentation • Shareholder discussion • Voting and conduct of poll • Other business 2
Slide 3: Board of Directors
Board of Directors Heartland Group Board • Geoff Ricketts Chair and Independent Non-Executive Director • Jeff Greenslade Executive Director and Chief Executive Officer • Ellie Comerford Independent Non-Executive Director • Sir Chris Mace Independent Non-Executive Director • Greg Tomlinson Deputy Cha
Slide 4: Strategic Management Group
Strategic Management Group • Jeff Greenslade CEO, Heartland Group Holdings • Chris Flood CEO, Heartland Bank • Keira Billot Chief People & Culture Officer • Laura Byrne Group Chief of Staff • Andrew Dixson Chief Financial Officer • Michael Drumm Chief Legal & Bank Risk Officer • Grant Kemble Group C
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 5
Slide 6: Chair's Address
Chair’s Address Geoff Ricketts
Slide 7: The Year in Review
The Year in Review Grew finance receivables Launched digital platform Established long-term by 4.9% to $4.6 billion for residential mortgages funding structure for Australian business New products to support Awarded Canstar’s 2020 Significant progress customers affected by Savings Bank of the Year m
Slide 8: Credit Rating
Credit Rating Heartland Group Holdings Limited “Heartland Bank BBB remains one of only (outlook stable) two Australasian banks to have no Heartland Bank Limited reduction or adverse BBB change to its rating or (outlook stable) outlook despite the Heartland Australia Group Pty Limited economic impact
Slide 9: Dividends
Dividends • Final dividend of 2.5 cents per share Dividend per share (cps) • Total dividend for FY20 of 7.0 cents per share 6.5 5.5 5.5 • RBNZ restriction on distributions by 2.5 banks will remain in place until at least 31 March 2021 3.5 3.5 3.5 4.5 • FY21 interim dividend FY17 FY18 FY19 FY20 Inter
Slide 10: Conduct and Culture
Conduct and Culture • Policy, tools and training introduced to help identify and support vulnerable customers • Formal responsible lending policy implemented • Code of Conduct for employees and intermediaries refreshed • Complaints policy and processes streamlined • Customer feedback channels enhanc
Slide 11: Supporting our Communities
Supporting our Communities “During the year, the Heartland Trust made grants totalling $452k to support our communities including in the areas of education, sport and financial literacy.” The Heartland Trust is a registered charitable trust which is independent from, but closely supported by, Heartl
Slide 12: FY2021 Outlook and Conclusion
FY2021 Outlook and Conclusion Expect strong growth to Supporting our NPAT for FY2021 in the continue across the customers through any range of $83 million to business future COVID-19 related $85 million uncertainties 12
Slide 13: CEO's Address
CEO’s Address Jeff Greenslade
Slide 14: COVID-19 Response
COVID-19 Response • Proactively contacted customers to determine support required – particularly consumer, SME and larger business customers • Support options offered to customers included payment holidays (1-3 months), reduced principal and interest only payments • Established Heartland Extend to p
Slide 15: Digital Update
Digital Update • Heartland Group is, in essence, a Financial Technology business with a bank • Digitalisation at the core of everything we do – making our products and services accessible on a smart-phone • New digital platforms for Residential Mortgages, Sheep & Beef Loans and Motor Loans • Digital
Slide 16: YTD Financial Performance
YTD Financial Performance for the four months ended 31 October 2020 • Net profit after tax $29.9 million vs. full year guidance $83 million to $85 million • Net interest margin and cost to income ratio in line with expectations • Overall balance sheet growth flat – repayments in non-core Relationshi
Slide 17: Strategic Developments
Strategic Developments • The Board has asked management to identify means of optimising value within the Group • Review is on-going but the preliminary picture emerging is that the Group can be seen as comprising four distinct businesses: – New Zealand Banking – Motor Finance; – FinTech (primarily b
Slide 18: Chief of Staff's Address
Chief of Staff’s Address Laura Byrne
Slide 19: Sustainability at Heartland
Sustainability at Heartland Social Equity Environmental Economic Prosperity Caring for our people, Conservation Creating sustainable customers and communities Acting as a kaitiaki of our economic outcomes for natural environment our stakeholders 19
Slide 20: Environmental Conservation
Environmental Conservation • Joined Climate Leaders Coalition in 2018 • Now measuring our greenhouse gas (GHG) emissions • Formulation of GHG emissions reduction target underway • Reduction initiatives underway include: – Transitioning vehicle fleet to electric or plug-in hybrid electric vehicles –
Slide 21: Social Equity – Our People
Social Equity – Our People Heartland Bank became an Recognition payments made 50 Māori and Pasifika students accredited Living Wage employer to over 90% of employees participated in the Manawa Ako internship Partnered with Indigenous Excellent progress made towards Creation of Rangatahi Advisory Gro
Slide 22: Rangatahi Advisory Board
Rangatahi Advisory Board Aleisha Langdale Brody Sumner Harsha Dahya Ian Hedley-Wakefield Jess Tomlinson Karem Ortiz Digital Projects Manager Sales Support Executive Account Manager (Motor) Operations Risk Manager Communications Executive Creative Lead Kate Manihera Kevin Min Monica Iakopo Natasha Ab
Slide 23: Shareholder Discussion
Shareholder Discussion HEARTLAND 23
Slide 24: Voting
Voting HEARTLAND 24
Slide 25: Thank you
Thank you HEARTLAND
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