Heartland Group (HGH) investor relations material

Opening remarks and agenda

• Quorum confirmed; 833 proxies and postal votes representing 383 million shares, or 41% of issued shares, were accepted.

• Chair described FY2026 as a year of sustained effort and meaningful progress; agenda covered leadership addresses, FY2026 performance, FY2027 priorities, shareholder discussion and voting.

Financial performance review

• FY2026 reported NPAT was $93.2m and underlying NPAT $90.4m; reported ROE rose to 7.3% from 3.2%, underlying ROE was 7.1%, average NIM increased to 3.95% from 3.61%, and impairment expense ratio fell to 0.45% from 1.00%.

• NZ bank NPAT was $49.8m; Reverse Mortgage and Rural receivables grew 16.8% and 10.8%, respectively, and NPL ratio improved to 1.92% at 30 June 2026.

• Australian lending grew 16.4% to A$2.64bn and NPAT rose 58.2% to A$43m; Reverse Mortgage portfolio grew 19.7% to A$2.37bn in FY2026.

• FY2027 reported guidance: NPAT >$102m, ROE ≥7.5%, average NIM >3.88%, OPEX <$212m, CTI ratio <55.7%, and impairment expense ratio <0.32%; September-quarter ROE was 7.6%, NIM 3.92% and CTI 54.7%.

Board and executive committee updates

• Greg Tomlinson stood for re-election as a non-independent director; the board and both bank boards supported his re-election.

• Establishment Panel endorsed Leanne Lazarus as CEO designate of the proposed merged bank; appointments remain subject to transaction completion and Reserve Bank non-objection.

• Proposed merged-bank board comprises existing NZ bank directors and two existing TSB directors, who currently serve on the Establishment Panel.