Heartland 2020 Annual Shareholder Meeting

NZX/ASX Release

Heartland 2020 Annual Shareholder Meeting

30 November 2020

The Annual Shareholder Meeting of Heartland Group Holdings Limited (NZX/ASX: HGH) (Heartland)
will be held today online at www.virtualmeeting.co.nz/hgh20 and in person at Eden Park, Reimers
Avenue, Kingsland, Auckland, commencing at 2pm (New Zealand time).

Shareholders joining online will require their shareholder number for verification purposes. For
more information about joining the online meeting, please view the attached Virtual Annual
Meeting Online Guide.

Please find attached the following documents relating to the meeting:
1. Annual Meeting Presentation
2. Chairman’s Address
3. Chief Executive officer’s Address
4. Group Chief of Staff’s Address
5. Virtual Annual Meeting Online Guide.

The webcast will be available on Heartland’s website within 24 hours of the live event conclusion:
shareholders.heartland.co.nz.

- Ends -

For further information, please contact the person(s) who authorised this announcement:

Nicola Foley
Head of Communications
M: 027 345 6809
E: nicola.foley@heartland.co.nz

Address:
Level 3, Heartland House
35 Teed Street
Newmarket, Auckland
New Zealand

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30 November 2020
2020 Annual Meeting

2
Agenda
•Welcome and formalities
•Chair’s address
•Chief Executive Officer’s address
•Group Chief of Staff’s address
•RangatahiAdvisory Board presentation
•Shareholder discussion
•Voting and conduct of poll
•Other business

Board of Directors
3
Heartland Group Board
•Geoff RickettsChair and Independent Non-Executive Director
•Jeff GreensladeExecutive Director and Chief Executive Officer
•Ellie ComerfordIndependent Non-Executive Director
•Sir Chris MaceIndependent Non-Executive Director
•Greg TomlinsonDeputy Chair and Non-Executive Director
Heartland Bank Board
•Bruce IrvineChair and Independent Non-Executive Director
•Jeff GreensladeNon-Independent Director
•Ellie ComerfordIndependent Non-Executive Director
•John HarveyIndependent Non-Executive Director
•Kate MorrisonIndependent Non-Executive Director
•Geoff RickettsIndependent Non-Executive Director
•Shelley RuhaIndependent Non-Executive Director

Strategic Management Group
4
•Jeff GreensladeCEO, Heartland Group Holdings
•Chris Flood CEO, Heartland Bank
•Keira BillotChief People & Culture Officer
•Laura ByrneGroup Chief of Staff
•Andrew DixsonChief Financial Officer
•Michael DrummChief Legal & Bank Risk Officer
•Grant KembleGroup Chief Risk Officer
•Sarah SmithChief Technology Officer
•Lydia ZulkifliChief Digital Officer

Other Formalities
5
•Proxies and postal votes received
•Meeting procedures
•Voting procedures and declaration of poll
•Notice of meeting
•Minutes of last Annual Meeting

Chair’s Address
Geoff Ricketts

The Year in Review
Grew finance receivables
by 4.9%to $4.6 billion
Launched digital platform
for residential mortgages
Establishedlong-term
funding structure for
Australian business
Awarded Canstar’s2020
Savings Bank of the Year
for third year in a row
Significant progress
made on Heartland’s
sustainability journey
New products to support
customers affected by
COVID-19
7

Credit Rating
Heartland Group Holdings Limited
BBB
(outlook stable)
Heartland Bank Limited
BBB
(outlook stable)
Heartland Australia Group Pty Limited
BBB-
(outlook stable)
“Heartland Bank
remains one of only
two Australasian
banks to have no
reduction or adverse
change to its rating or
outlook despite the
economic impacts of
COVID-19.”
8

Dividends
•Final dividend of 2.5 cents per share
•Total dividend for FY20 of 7.0 cents
per share
•RBNZ restriction on distributions by
banks will remain in place until at least
31 March 2021
•FY21 interim dividend
3.5 3.5 3.5
4.5
5.5 5.5
6.5
2.5
FY17FY18FY19FY20
Dividend per share (cps)
Interim dividendFinal dividend
9

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
•Complaintspolicy and processes streamlined
•Customer feedback channels enhanced

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, Heartland.
11

FY2021 Outlook and Conclusion
Expect strong growth to
continue across the
business
NPAT for FY2021 in the
range of $83 million to
$85 million
Supporting our
customers through any
future COVID-19 related
uncertainties
12

CEO’s Address
Jeff Greenslade

14
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 provide customers with
flexibility to manage the term of loans to match cashflows
•As at 18 November 2020, 98.6%of Consumer loans and
99.6%of SME and Business loans are on usual (or pre-
COVID) repayment schedules or have taken up Heartland
Extend

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 facial recognition (biometrics) and electronic
document signature (DocuSign) innovations provide end-
to-end contactless onboarding and fulfilment
•Increased investment will continue be undertaken in
technology to expand digital capability
15

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 Relationship Lending as well as
Open for Business and Harmoney have offset growth in core areas (Business Intermediated,
Motor, Reverse Mortgages NZ and Reverse Mortgages Australia)
•Economic overlay taken in FY20 has not been utilised
•Impairments to date much lower than anticipated
•Reassessment of fair value of equity investment in Harmoney may impact FY21 NPAT guidance
range
16

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 based on the Open for Business platform)
–Australia Reverse Mortgages
•Considering structuring Heartland Bank’s motor finance business as a separate wholly-owned
subsidiary
•No conclusions have been reached and the Board continues to consider these matters
17

Chief of Staff’s Address
Laura Byrne

Sustainability at Heartland
Social Equity
Caring for our people,
customers and communities
Environmental
Conservation
Acting as a kaitiaki of our
natural environment
Economic Prosperity
Creating sustainable
economic outcomes for
our stakeholders
19

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
–Reducing paper based communications to customers
–Encouraging greater adoption of video conferencing to reduce business travel
•Considering our wider environmental impact of our products and services
20

Social Equity –Our People
Heartland Bank became an
accredited Living Wage employer
50 Māori and Pasifika students
participated in the Manawa
Akointernship
Excellent progress made towards
achieving gender balance
Creation of RangatahiAdvisory
Board to diversify perspectives
and provide unique insights
Recognition payments made
to over 90%of employees
Partnered with Indigenous
Growth to provide leadership
development programme for
cohort of Māori employees
21

RangatahiAdvisory Board
22
Karem Ortiz
Creative Lead
Aleisha Langdale
Digital Projects Manager
Jess Tomlinson
Communications Executive
Brody Sumner
Sales Support Executive
Qiays Longman
Customer Compliance
Team Leader
Te Whaiora Te Maapi Pene
Operations Analyst
Harsha Dahya
Account Manager (Motor)
Shreyansh Patni
Integration Developer
Paul Koraua
Project Co-ordinator
Kevin Min
Relationship Manager
Kate Manihera
People, Culture &
Communications Coordinator
Natasha Abeysundara
Corporate Finance Analyst
Monica Iakopo
Internal Auditor
Ian Hedley-Wakefield
Operations Risk Manager
William Orr
Relationship Manager
Veronica Franklin
Corporate Finance Analyst

Shareholder
Discussion
23

Voting
24

Thank you
25

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1

Heartland Annual Meeting 2020
Chair’s Address
1. Introduction
It is approximately a year since our last Annual Meeting and the ensuing year has presented us
with unprecedented challenges. The global, economic and social impacts have been profound.
From Heartland’s perspective, our priorities are to continue supporting our customers and
ensuring the health and wellbeing of our employees. I am proud of the manner in which
management and the board have responded to such challenges, in mitigating the impacts on the
business and planning for the future.
Fortunately we entered into the COVID-19 lockdown in a strong financial position and I am pleased
to report that Heartland achieved a net profit after tax (NPAT) of $72.0 million for the financial
year ended 30 June 2020. This NPAT is after allowing for an economic overlay of $9.6 million pre-
tax, which Heartland applied to its potential credit losses in response to the ongoing uncertainties
relating to the COVID-19 pandemic. The adjusted NPAT, which excludes this economic overlay, is
$78.9 million. Overall this was a solid result, reflecting the strength of our businesses.
2. The Year in Review
Heartland grew its finance receivables by 4.9% to $4.6 billion during the year as a result of strong
performance across Reverse Mortgages, Business Intermediated, Motor, Open for Business and
Harmoney.
We also achieved a number of key strategic milestones including the launch of Heartland Bank
Limited’s (Heartland Bank’s) digital platform for residential mortgages, the establishment of a
‘first of its kind’ long term funding structure to support the growth of Heartland’s Australian
business, and the launch of new products to support our customers who were affected by COVID-
19. COVID-19 has reinforced our strategy of transforming our business through digitisation.
Heartland Bank was once again named Canstar’s “2020 Bank of the Year – Savings” for the third
consecutive year and its Reverse Mortgage product was awarded the “Consumer Trusted”
accreditation for the fourth year in a row.

2

We also made significant progress on our sustainability journey which Laura Byrne, our Group
Chief of Staff, will present to you shortly.
Credit Rating
During the 2020 financial year, and more recently in October 2020, Heartland’s rating agency Fitch
affirmed the credit ratings for Heartland and Heartland Bank at ‘BBB’ and Heartland Australia at
‘BBB-’, with the outlook remaining stable for all three companies. Heartland Bank remains one of
only two Australasian banks to have no reduction or adverse change to its rating or outlook since
January 2020 despite the economic impacts of COVID-19.
Dividends
Heartland paid a fully imputed final dividend of 2.5 cents per share on 9 October 2020. Together
with the interim dividend of 4.5 cents per share, the total dividend for the year was 7.0 cents per
share. This compares to 10.0 cents per share in FY19. The reduction was not reflective of
performance, but of caution given at that time the uncertainties concerning COVID-19. At the
same time, the Reserve Bank of New Zealand (RBNZ) imposed a restriction on bank dividends.
On 11 November, the RBNZ announced that the restriction on banks paying dividends will
continue until at least 31 March 2021 “to support the stability of the financial system”. This
restriction only applies to distributions from Heartland Bank and does not apply to Heartland’s
Australian operations. This year, those Australian operations enabled Heartland to distribute a
final dividend to shareholders. While the RBNZ restrictions limit the distribution of bank
dividends, shareholders can take comfort in the fact that retained earnings continue to
accumulate.
The Group remains capable of declaring an interim dividend at half year in line with previous
‘usual’ dividends, should performance and conditions be supportive. Once the RBNZ restrictions
are removed, subject to the usual prudential considerations, a return to historical pay-out ratios
is expected.
3. Conduct and Culture
Ensuring our conduct and culture drives fair outcomes for our customers is a core focus in
everything we do at Heartland. This is reflected in one of our values, ‘mahi tika’, or ‘do the right
thing’.

3

The Financial Markets Authority and RBNZ completed their review of conduct and culture in New
Zealand retail banks in November 2018. Their findings focused on the industry as a whole and
they found no evidence of widespread misconduct. Each bank received recommendations specific
to them, and for Heartland, these recommendations formed the basis of our Conduct and Culture
Work Plan.
During the year, we made significant progress towards completing our Conduct and Culture Work
Plan. This included the development of a new policy, training and resources to help our employees
identify and support vulnerable customers. We also implemented a formal Responsible Lending
Policy, bringing together our responsible lending principles for use by our credit team, sales teams
and intermediaries.
Heartland’s Code of Conduct was refreshed to provide a more useful framework for our people
and intermediaries to make good decisions, and we enhanced our employee training to ensure
integration of good conduct and culture across all content. We also streamlined our complaints
policy and processes and enhanced our customer feedback channels.
4. Supporting our Communities
Heartland is in a privileged position to make a positive contribution to the communities in which
it operates. We do this through the Heartland Trust which is an independent registered charitable
trust that is closely supported by Heartland. During the year, the Heartland Trust made grants
totalling $452,000 to support our communities, including in the areas of education, sport and
financial literacy.
The Heartland Trust continues to be a proud sponsor of the InZone Education Foundation, a
registered charitable trust that aims to enhance the educational outcomes of Māori and Pasifika
youth. A number of InZone students have participated in our Manawa Ako internship programme
and are now working in permanent roles at Heartland or have continued on to tertiary education.
This year, the Heartland Trust also provided funding and support to the Kupe Leadership
Scholarship, a programme which aims to develop future leaders who are committed to New
Zealand and to creating a successful future for our country. The Kupe Leadership Scholarship,
which is administered by the University of Auckland, provides scholars with financial support, a
personal mentor and participation in a leadership programme.

4

Bringing together our focus on financial literacy and te reo Māori, the Heartland Trust also
provided a grant to MoneyTime. MoneyTime is an online financial literacy programme designed
for students aged 10 to 14 years in order to provide them with the skills and knowledge they need
to become financially independent. The grant was provided to MoneyTime to assist with the
design and creation of a te reo Māori version of its programme.
The Heartland Trust also continued its support of the Auckland Reader’s & Writer’s Festival, the
Auckland City Mission, the Special Children’s Christmas Party and a number of women’s 1
st
XV
rugby teams.
5. Outlook
The Board is confident in Heartland’s ability to continue achieving strong growth and profitability,
while continuing to support our customers through any future COVID-19 related uncertainties.
Heartland expects its NPAT for the year ending 30 June 2021 to be in the range of $83 million to
$85 million.
6. Conclusion
I wish to conclude my address this afternoon by expressing my thanks and gratitude to my fellow
directors for their wise counsel and support.
Thank you to Jeff Greenslade, Chris Flood and the Executive team who continue to provide strong
leadership for Heartland through their diverse set of skills.
Heartland’s response to the COVID-19 pandemic highlighted the resilience of both our employees
and our organisation. The efforts of our Heartland people were exceptional and on behalf of the
Board and Executive team, I wish to thank them for their hard work, adaptability and compassion
for our customers during the year.
Last but not least, I would like to thank you, our shareholders and customers, for supporting
Heartland. We appreciate the confidence you place in us and we look forward to continuing the
delivery of strong shareholder returns.
Thank you.

I will now ask Jeff Greenslade to address you.

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Heartland Annual Meeting 2020
Group Chief Executive Officer’s Report
1. Introduction
E ngā mana, e ngā reo, e ngā rau rangatira, tēnā koutou katoa.
Greetings to all of you, all voices, all authorities and leaders.
E ngā tangata whenua o Tāmaki-makau-rau, kei te mihi, kei te mihi.
To the many iwi of the Auckland area, I acknowledge you as tangata whenua.
Ki a koutou katoa kua hui mai nei i tēnei rā, tēnā tātou katoa.
To everyone joining us today, thank you.

The Coronavirus pandemic has, as you would expect, over-shadowed the last financial year.
It continues to present challenges.
However, I am proud to report we continue to meet that challenge and at the same time,
achieved a number of important milestones.
And in my address, I first wish to describe our COVID-19 response to you, then update you on
progress in our digital strategy, before moving on to provide an update on financial
performance and, finally, outline some key strategic matters.
2. COVID-19 Response
As an ‘essential service’, Heartland continued to operate during the COVID-19 lockdown
period at alert levels 3 and 4 to support our customers. Our initial response focused on
proactively contacting our Consumer, small-to-medium enterprise (SME) and larger business
customers to offer support. Alongside this, we made the logistics possible for all staff to
work from home.
Support options offered to customers included payment holidays ranging from one to three
months, reduced principal and interest only payments. We built a new website functionality
to enable customers to easily contact us remotely and request support online.
Consumer customers, representing $143 million of loans, took up the various offers of
support, as did SME and Business customers, representing $510 million of loans. 98.6% of
Consumer loans and 99.6% of SME and Business loans have now returned to their pre-

2

COVID-19 payment schedules or have taken up a new product, Heartland Extend, which
provides flexibility to manage the term of loans to match cashflows. This is a product that
aligns debt servicing with commercial realities, and is available in a ‘business-as-usual’
context to both existing and non-customers.
The resilience of the economy has defied expectations and the same is true of our customer
base, reflecting the effectiveness of the support measures provided by government –
particularly the IRD loan to small businesses, but also the resilience within Heartland’s
portfolio. While this crisis has not been as bad as initially feared, we remain prepared for
the possibility of any deterioration. An economic overlay of $9.6 million has been taken and
remains available should it be needed. This is an added buffer on existing general provisions
which together amounts to $62.7 million of provisions to cover any losses that may arise
from whatever cause.
3. Digital Update
The Heartland Group is, in essence, a Financial Technology business with a bank. Digitalisation
is at the core of everything we do.
Digitalisation is primarily dedicated to making our products and services accessible on a
smartphone.
The smartphone is increasingly the preferred channel for all demographics – whether for
communication, entertainment, information or for commercial and financial services.
Also, through the advent of Application Programming Interface or “API” technology, it has
become a much cheaper medium for electronic interactions. This makes the cost of acquiring,
on-boarding and processing new customers very low. This has the potential to reduce ongoing
or marginal costs. As a consequence, areas where previously we had no competitive
advantage such as Residential Mortgages, are now open to us. Through a digital platform,
Heartland is now able to offer market-leading rates – 1.99% p.a. for one year and a 2.50% p.a.
floating rate.
We can provide simple applications to customers that can be completed within minutes online
and receive an automatic response.

3

Just a year ago, this was beyond contemplation. However, new, low cost technology is
available to disrupt main banks in a way that is aligned with customer behaviours and meets
their preferences.
We are facing a world where there is greater choice and where customers want what they
want quickly and with minimal fuss.
During the course of the year, we extended our digital reach to more customers, in addition
to Residential Mortgages, we also launched digital platforms for Sheep & Beef Loans, and
Motor Loans alongside our existing Business and Deposit digital platforms.
The Deposit platform in particular worked well during the lockdowns, enabling customers to
access Heartland’s products and services despite the alert level restrictions on in-person
interactions. Facial recognition (biometrics) and electronic document signature (DocuSign)
innovations provide customers with end-to-end contactless on-boarding and fulfilment. In
addition, at the height of alert level 3 and 4 lockdowns, motor vehicle dealers were able to
progress vehicle loan applications using product channel biometrics. Heartland’s online
application process for Reverse Mortgages also enabled Australian retirees to apply for a
Reverse Mortgage online from the safety of their own homes during the Victorian lockdown.
Increased investment will continue to be undertaken in technology to expand digital capability
to meet Heartland’s growth aspirations and the needs of customers in both New Zealand and
Australia – particularly in a post-COVID-19 world where the ability to interact online and
remotely is of even greater importance.
4. FY21 Financial Update
Given the current uncertainties, we have decided to give shareholders an update on financial
performance. This is not our usual practice but in the interests of transparency in
unprecedented circumstances, we considered it appropriate to do so.
As at the end of October, which is the first four months of FY21, NPAT is tracking at $29.9
million (versus full year guidance of $83 million - $85 million).
Margin and Costs have been maintained, with NIM and Cost Income Ratio both in line with
expectations.
Overall balance sheet growth has been flat. Repayments from non-core area of Relationship
Lending, Open for Business (O4B) and Harmoney have offset growth in core areas of Business

4

Intermediated (up 13% per annum); Motor is up 11.5% per annum; Reverse Mortgages are up
4.4% and 11% respectively per annum in New Zealand and Australia (excluding the FX impact).
Lower interest rates and customers utilising the government’s packages appear to have
contributed to the level of repayments. Livestock is also down due to seasonality reasons.
Impairments to date have been much lower than anticipated, tracking well below budget.
This reflects releases due to repayments, but also an improving profile and reduction in non-
performing loans.
The economic overlay we took in FY20 of $9.6 million pre-tax has not been utilised.
Some commentators maintain that the economic ramifications of the pandemic are yet to be
fully felt, and due to this remaining uncertainty, and despite running ahead of the forecast run
rate, we don’t propose currently to change the current NPAT guidance of $83 million to $85
million for FY21.
More recently, Harmoney successfully concluded an Initial Public Offering (IPO) in Australia.
The listing and subsequent trading prices are at a material premium to the book value of our
holding. Heartland will re-assess the fair value of its equity investment in Harmoney as part
of the preparation of its financial results for the half year. If so, this may impact on guidance
range.
5. Strategic Developments
In the FY20 results announcement, we advised that the Board had asked Management to
identify means of optimising value within the Group.
The review is ongoing but the preliminary picture emerging is that the Group could be seen
as comprising four distinct businesses:
1. New Zealand Banking;
2. Motor Finance;
3. FinTech (primarily based on the Open for Business Platform); and
4. Australia Reverse Mortgages.

5

Further that:
• each business unit had both differing return profiles and growth opportunities;
• three of the four component parts are not typically found within a traditional bank
structure;
• the Group is regarded by the market as a bank, and benchmarked against a group of
Australasian peers including the major banks;
• Heartland performs well in a relative sense across each business in terms of operating
metrics;
• each business has material opportunities to scale, and Heartland, at times, is possibly
discounted because of its size. The Group has been successful previously scaling
businesses, and should continue to pursue its long term strategy to acquire scale both
organically and inorganically.
• Finally, the possibility of structuring the Bank’s Motor business as a separate entity
under the Bank may assist in highlighting any intrinsic value which may not be reflected
in current bank-based benchmarking. This may also provide flexibility and efficiency in
terms of access to, and cost of, capital.
No conclusions have been reached and the Board continues to consider these matters.
6. Conclusion
Finally, I would like to thank the people of Heartland for their exceptional efforts, in what I’m
sure you will all agree has been an extraordinary year.
He manawa whenua, he manawa tangata, Ko Heartland tēnei.
This is our Heartland.
Thank you also to our shareholders.
Tēnā koutou katoa.
Thank you all.
I will now hand you over to Laura Byrne, our Group Chief of Staff, to provide an update on
Heartland’s sustainability initiatives.

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1

Heartland Annual Meeting 2020
Group Chief of Staff Speech

Tēnā koutou kātoa, kua hui mai nei i tēnei rā.
Ko Laura Byrne ahau, nō Tāmaki Makaurau ahau.
I am Laura Byrne and I’m the Group Chief of Staff at Heartland. I’ve just celebrated my seventh year
as part of the Heartland whānau, and during my tenure, I’ve held a variety of roles, first joining as
General Counsel in 2013. I now have the pleasure of leading a number of our back office teams as
well as responsibility for various strategic projects across the group.
Furthering Heartland’s sustainability goals is one of my key areas of focus.
We believe that New Zealand’s financial system should serve the long term needs of society, the
environment and the economy. We are privileged to be the guardian of your - our shareholders’ -
funds. For us, sustainability means ensuring that the business you invest in is both profitable in the
short term but also can continue for generations to come
And so:
• Social Equity;
• Environmental Conservation; and
• Economic Prosperity,
are the three pillars of Heartland’s sustainability framework.
The framework operates to ensure we are meeting the increasing community expectations of
businesses and maintaining our social licence to operate.
Today I wish to share with you some of the initiatives we have underway, particularly in relation to
acting as a kaitiaki of our environment, and also the work we are doing to create an internal culture
of inclusivity and equal opportunity at Heartland.
Heartland is proud to be a member of the Climate Leaders Coalition, a group of organisations who
have joined together to promote business leadership and collective action on the issue of climate
change.

2

Since joining the coalition, we have started to measure our greenhouse gas emissions, with our
baseline year being 2019. Through this process, we discovered that our biggest emission sources are
our vehicle fleet, air travel, waste to landfill and electricity usage.
Work is underway to set a reduction target that we will work towards over the next five years.
Some of the initiatives we already have underway to reduce our emissions include transitioning our
fleet to electric or plug-in hybrid electric vehicles, reducing our paper-based communications and
encouraging greater adoption of video conferencing to reduce business travel.
While the environmental impact of our operations is important, our potential to make a positive
impact extends into our products and services and how we can encourage and support New Zealand
to transition to a low carbon economy. So, alongside reducing the environmental impact of our
operations we are actively looking at the wider environmental impact we can have.
Turning now to the work we are doing for our people to create a work environment that is fair,
inclusive and supports the wellbeing of our employees.
This year we were proud to become a Living Wage Employer, being one of only a small number of
NZX-listed companies to do so. The Living Wage concept refers to the hourly wage a worker needs to
pay for the necessities of life and to participate as an active member of their community. As a Living
Wage Employer, we have committed to paying all of our employees at least the current Living Wage,
15% more than the minimum wage.
We also recognised the efforts of our people in achieving our financial results by awarding recognition
payments to over 90% of our employees, including special awards to those who had made a significant
contribution to Heartland’s internal culture during the year
A key area of focus for Heartland is to be an employer of choice for Māori. Māori are under-
represented in the financial sector. We want to have a positive impact on the quality and access to
financial services for Māori, and we are genuinely committed to improving the way we serve and
engage with Māori.
This year will be the fourth consecutive year of our Manawa Ako internship programme which we
established in 2017 to provide opportunities for the next generation of Māori and Pasifika to
experience working in the financial sector and a corporate environment.

3

Since its inception, 50 interns have participated in the Manawa Ako programme, and almost 20 of
these interns have continued in employment with Heartland. Our Manawa Ako internship saw us
being recognised as a finalist for the 2020 Diversity Awards NZ.
As part of our proactive approach to career progression for Māori, we have a cohort of Heartlanders
currently participating in a cadetship programme in partnership with Indigenous Growth and
supported by Te Puni Kōkiri. The purpose of the cadetship is to enable our promising and established
indigenous leaders to take up leadership opportunities.
Over the past five years, we’ve made great strides in addressing the gender balance at Heartland. Our
Strategic Management Group is currently made up of four females and five males. Across our key
leadership roles, 46% are held by females and 54% by males. This is a result of a number of initiatives
we have in place to ensure proactive in-role development of females at Heartland together with a
focus on recruiting and promoting more women into senior roles.
Almost half of Heartland’s workforce is aged 35 and under. This insight was the genesis for the
creation of Heartland’s Rangatahi Advisory Board, a group of employees aged 35 and under with the
main purpose being to diversify the perspectives of the Strategic Management Group and the Board
by providing unique millennial and Generation Z insights on our people, customers and strategic
initiatives.
They are not the voice of the future business, they are the voice of today’s business, and it should
come as no surprise to any of us that the Rangatahi Advisory Board are passionate about social,
environmental and economic sustainability. The current members of our Rangatahi Advisory Board
are joining us today to share with you one of the key initiatives they have created, being a financial
literacy programme aimed at school leavers aged 16 to 18. It is my pleasure to hand you over to our
Rangatahi Advisory Board to take you through their presentation.

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Virtual Annual
General Meeting
Online Guide
Part of Link Group | Corporate Markets

2 • Link Market Services Virtual Annual General Meeting Online Guide
Step 1
Open your web browser and
go to virtualmeeting.co.nz and
select the relevant meeting.
Virtual Annual General Meeting
Online Guide
Before you begin
Ensure your browser is compatible.
You can easily check your current
browser by going to the website:
whatismybrowser.com
Supported browsers are:
• Chrome – Version 44 & 45
• Firefox – 40.0.2 and after
• Safari – OS X v10.9 “Mavericks”
& OS X v10.10 “Yosemite”
• Internet Explorer 9 and up (please note
Internet Explorer 8 is not supported)
The virtual meeting is viewable from desktops
and laptops. To attend and vote at the virtual
annual general meeting you must have:
• NZX registered holders: Shareholder
number  and authorisation code (FIN)
• ASX registered holders: Shareholder
number and postcode
If you are an appointed proxy you will need
your proxy number which will be provided
by Link Market Services prior to the
meeting. Please make sure you have this
information before proceeding.
Step 2
Login to the portal using your full name, email
address, and company name (if applicable).
Please read and accept the terms and conditions
before clicking on the blue ‘Register and Watch
Annual General Meeting’ button. Once you have
logged in you will see:
• On the left – a live video webcast of the Annual
General Meeting
• On the right – the presentation slides that will be
addressed during the Annual General Meeting.
Note: After you have logged in we recommend that
you keep your browser open for the duration of the
meeting. If you close your browser, your session will
expire. If you attempt to log in again, you will be sent a
recovery link via email for security purposes.

Link Market Services Virtual Annual General Meeting Online Guide • 3
Navigating
At the bottom of the webpage
under the webcast and
presentation there are three
boxes. Refer to each section
below for operating instructions.
1
Get a voting card
2
Ask a Question
3
Downloads
1. Get a voting card
To register to vote - click on the ‘Get a voting
card’ box at the top of the webpage or below
the videos.

This will bring up a box which looks like this.
If you are an individual or joint Shareholder you will
need to register and provide validation by entering your
details in the top section:
• NZX registered holders: Shareholder number and
authorization code (FIN)
• ASX registered holders: Shareholder number and
postcode
If you are an appointed Proxy, please enter the Proxy
Number issued to you by Link Market Services in the
PROXY DETAILS section. Once you have entered your
appropriate details click the blue ‘SUBMIT DETAILS
AND VOTE’ button.
Once you have registered, your voting card will
appear with all of the resolutions to be voted on by
Shareholders at the Annual General Meeting (as set
out in the Notice of Meeting). You may need to use the
scroll bar on the right hand side of the voting card to
scroll up or down to view all resolutions.
Shareholders and proxies can either submit a Full Vote
or a Partial Vote. You can move between the two tabs
by clicking on ‘Full Vote’ or ‘Partial Vote’ at the top of
the voting card.

4 • Link Market Services Virtual Annual General Meeting Online Guide
Full Votes
To submit a full vote on a resolution ensure you are in
the ‘Full Vote’ tab. Place your vote by clicking on the
‘For’, ‘Against’, or ‘Abstain’ voting buttons.
Partial Votes
To submit a partial vote on a resolution ensure you are
in the ‘Partial Vote’ tab. You can enter the number of
votes you would like to vote (for any or all) resolution/s.
The total amount of votes that you are entitled to vote
for will be listed under each resolution. When you enter
the number of votes in a certain box it will automatically
tally how many votes you have left.
Note: If you are submitting a partial vote and do not use all of
your entitled votes, the un-voted portion will be submitted as No
Instruction and therefore will not be counted.
Once you have finished voting on the resolutions scroll
down to the bottom of the box and click the blue ‘Cast
Vote’ or ‘Cast Partial Vote’ button.
Note: You are able to close your voting card during
the meeting without submitting your vote at any time
while voting remains open. Any votes you have already
made will be saved for the next time you open up the
voting card. The voting card will appear on the bottom
left corner of the webpage. The message ‘Not yet
submitted’ will appear at the bottom of the page.
You can edit your voting card at any point while voting
is open by clicking on ‘Edit Card’. This will reopen the
voting card with any previous votes made.
If at any point you have submitted your voting card
and wish to make a change while voting is still open
you can do so by clicking the ‘Edit Card’ button
and making the required change. Once you have
completed your card select the blue ‘Cast Vote’ or
‘Cast Partial Vote’ button.
The voting card remains editable until the voting
is closed at the conclusion of the Annual General
Meeting. Once voting has been closed all voting cards,
submitted and un-submitted, will automatically be
submitted and cannot be changed.
At the conclusion of the Annual General Meeting a red
bar with a countdown timer will appear at the top of
the Webcast and Slide windows advising the remaining
voting time available to shareholders. Please make any
changes required to your voting cards at this point and
submit your voting cards.
If an additional resolution is proposed during the
meeting, there will be a short delay while the resolution
is added to the voting card. Once the resolution has
been added you will be notified by the Chairman during
the meeting. In order to vote on the extra resolution
you will need to reopen your voting card to cast your
vote by clicking the ‘Edit Card’ button.
Note: Registration for the Annual General Meeting and voting opens
one hour before the meeting begins.
Virtual Annual General Meeting
Online Guide continued

Link Market Services Virtual Annual General Meeting Online Guide • 5
2. How to ask a question
Note: Only shareholders are eligible to ask questions.
You will only be able to ask a question after
you have registered to vote. If you would
like to ask a question, click on the ‘Ask a
Question’ box either at the top or bottom
of the webpage.
The ‘Ask a Question’ box will then pop up with two
sections for completion.
In the ‘Regarding’ section click on the drop down
arrow and select one of the following categories:
• General Business
• Resolution 1
• Resolution 2
• Resolution 3
• Resolution 4
• Resolution 5
• Resolution 6
After you have selected your question category, click in
the ‘Question’ section and type your question.
When you are ready to submit your question - click
the blue ‘Submit Question’ button. This will send the
question to the Management/Board.
Note that not all questions are guaranteed to be
answered during the Annual General Meeting, but we
will do our best to address your concerns.
Once you have asked a question a ‘View Questions’
box will appear.
At any point you can click on ‘View Questions’ and
see all the questions you have submitted. Only you can
see the questions you have asked.
Note: You can submit your questions by this method
one hour before the meeting begins, if you have
registered to vote. You can continue to submit
questions up until the close of voting.
If your question has been answered and you would
like to exercise your right of reply, you can do so by
submitting another question.

3. Downloads
If you would like to see the Notice of Annual
General Meeting or the Annual Report you
can do so here.
A
B
• To download the Notice of Meeting – click A
• To download the Annual Report – click B
When you click on these links the file will open in
another tab in your browser.
Voting closing
Voting will close 5 minutes after the close of
the Annual General Meeting.
At the conclusion of the Annual General Meeting a red
bar with a countdown timer will appear at the top of
the Webcast and Slide screens advising the remaining
voting time. If you have not yet submitted your vote at
this point, you will be required to do so now.
At the close of the meeting any votes you have placed
will automatically be submitted.
Virtual Annual General Meeting
Online Guide continued
1261.0 07/16 ISS1
Contact us
Australia
T +61 2 8280 7100
E info@linkmarketservices.com.au
New Zealand
T +64 9 375 5998
E enquiries@linkmarketservices.co.nz
United Arab Emirates
T +27 72 6299034
E paular@linkmarketservices.co.za