Heartland Group (HGH) investor relations material

Opening remarks and agenda

• The meeting opened with a welcome, safety instructions, and an overview of the agenda, including introductions of directors and CEOs, performance reviews, and Q&A sessions.

• The agenda featured addresses from the Chair, Group CEO, and CEOs of Heartland Bank NZ and Australia, followed by shareholder discussion and voting.

• Formalities included proxies, postal votes, meeting procedures, and minutes of the last AGM.

Financial performance review

• Net profit after tax for FY25 was NZD 38.8 million, with underlying NPAT at NZD 46.9 million, meeting guidance but below historical levels; underlying NPAT is targeted at NZD 85 million for FY26.

• Receivables grew from NZD 1.7 billion in FY11 to NZD 7.2 billion in FY25.

• Return on equity rebounded to 6% in H2 FY25 and 7.6% in Q1 FY26; NIM restored to near-historic levels, and cost-to-income ratio improved with a target of <53.5% for FY26.

• Impairment expenses rose in H1 FY25 due to economic conditions and portfolio repositioning, but asset quality and collections improved, with recovery efforts outperforming expectations.

• Reverse mortgages and rural finance showed strong growth, while motor finance and asset finance were impacted by subdued markets; AU bank achieved record growth in Reverse Mortgages and Livestock Finance.

Board and executive committee updates

• Several new appointments were made, including Andrew Dixon as CEO and non-independent director, and Michael Jonas as Chief Strategy Officer.

• Leadership changes included new roles for Chief Commercial Officer, Chief Auto and Asset Finance Officer, and Chief Digital Transformation Officer.

• Board and management teams for both Heartland Group and its banks were introduced, highlighting recent appointments and leadership structure.